Iraq

As reported over the weekend, late on Friday French forces launched a military campaign, consisting primarily of airforce incursions, designed to crush the "Islamic extremists" in the country in order to protect "European interests" (it is unclear what these may be). Parallel with this came the first humiliation for French military forces as a French helicopter pilot was killed nearly at the same time as the offensive was launched. But even more embarrassing was the bungled attempt to rescue a hostage in Somalia, in which the hostage is said to have died (by France at least, not his captors), while at least one French commando is also reported to have been left behind. Moments ago, AP reported on the latest French military developments in Mali, which confirm that when it comes to the words "French military" and "success" will hardly ever be seen side by side. To wit: "Despite intensive aerial bombardments by French warplanes, Islamist insurgents grabbed more territory in Mali on Monday and got much closer to the capital, French and Malian authorities said. In the latest setback, the al-Qaida-linked extremists overran the garrison village of Diabaly in central Mali, France's defense minister said in Paris. Jean-Yves Le Drian said Monday the rebels "took Diabaly after fierce fighting and resistance from the Malian army that couldn't hold them back." In other words, "before France sent its forces in on Friday, the closest known spot the Islamists were to the capital was 680 kilometers (420 miles) away"... while "by now sweeping in from the west, they are now only 400 kilometers (250 miles) from Mali's capital, Bamako, in southern Mali." Yet another French military campaign stupendously executed.

The CIA Is Taking Over the Dirty Work in Fighting America’s Wars

Something is going on that reeks of the dreaded phrase, “this time, it’s different”: secret discussions in Germany.

In part one of this two part series – Hey You – we examined how an invisible government of wealthy, power hungry men have utilized the propaganda techniques of Edward Bernays and lured the American people into a narcissistic, techno-gadget, debt based servitude. Over the last one hundred years they have created a totalitarian state built upon egotism, material goods, and fulfilling our desires through Wall Street peddled debt and mass consumerism. It has been an incredibly effective form of control that has convinced the masses to love their servitude. The lyrics to Pink Floyd's 'Mother' had both a literal and figurative meaning for Roger Waters. Having seen his Wall Tour performance this past summer at Citizens Bank Park with a diverse crowd of 40,000, ranging in age from senior citizens to teenagers, it seems this song has gained new meaning. He sang a duet with himself from 1980 projected on the Wall and when he sang the lyric, “Mother, should I trust the government?” the entire stadium responded in unison – NO!!! This revealed a truth that is not permitted to be discussed by the corporate mainstream media acting as a mouthpiece for the ruling class. A growing legion of citizens in this country does not trust the government. This is very perceptive on their part.

Even if the US economy really takes off in 2013, don`t look for oil and gasoline demand to overtake supply in the equation.

Despite the fact that myself and everyone else acting like they know what lays ahead are proven wrong time and time again, we continue to make predictions about the future. It makes us feel like we have some control, when we don’t. The world is too complex, too big, too corrupt, too lost in theories and delusions, and too dependent upon too many leaders with too few brains to be able to predict what will happen next. This is the time of year when all the “experts” will be making their 2013 predictions - but few will address where they were wrong in previous predictions. I’m more interested in why I was wrong. It seems I always underestimate the ability of sociopathic central bankers and their willingness to destroy the lives of hundreds of millions to benefit their oligarch masters. I always underestimate the rampant corruption that permeates Washington DC and the executive suites in mega-corporations across the land. And I always overestimate the intelligence, civic mindedness, and ability to understand math of the ignorant masses that pass for citizens in this country. It seems that issuing trillions of new debt to pay off trillions of bad debt, government sanctioned accounting fraud, mainstream media propaganda, government data manipulation and a populace blinded by mass delusion can stave off the inevitable consequences of an unsustainable economic system. Will 2013 be the year it all collapses in a flaming heap of rubble? I don’t know. Maybe you should ask an “expert”.

Enjoy your job in North Dakota while you can as in four years, those shale oil projects are no longer sustainable.

If you share our sense of outrage at the way wounded veterans are treated by Delta Airlines and other commercial carriers, then please get involved.  Merry Christmas

Iraq quadrupled its gold holdings to 31.07 tonnes over the course of three months between August and October, data from the International Monetary Fund showed on yesterday. The IMF's monthly statistics report showed the country's holdings increased by some 23.9 tonnes in August to 29.7 tonnes. That was followed by a 2.3-tonne rise in September to 32.09 tonnes and then a cut of 1.02 tonnes in October to 31.07 tonnes.  There was no data for November. It is Iraq's first major move in years to bolster its gold reserves. More recently, Brazil raised its gold holdings by 14.68 tonnes, or 28 percent, in November, bringing its bullion reserves to 67.19 tonnes. The addition comes on the heels of an even bigger increase in October when the South American country added 17.17 tonnes to its reserves. In September, it  increased holdings by 2 tonnes. Meanwhile Turkey cut its gold holdings last month by 5.84 tonnes to 314 tonnes from October. The country allows commercial banks to use gold as collateral for loans, and changes to its balance sheet are often connected to such activity.

• New Calls for Gun Limits (WSJ)
• Funerals begin for Newtown victims as schools confront tragedy (Reuters)
• Introducing The Stock Trader of the Future (WSJ)
• Feds knocking on 72 Cummings Ave door any minute now? SAC E-Mails Show Steve Cohen Consulted on Key Dell Trade (BBG)
• China Signals Tolerance of Slower Growth After Meeting (BBG)
• Huge mandate for Japan's LDP may be less than meets the eye (Reuters)
• UBS Said to Face $1.6 Billion Libor Penalty This Week (BBG) - shareholders pay, and nobody goest to jail
• Treasury Plan Would Cut Rates on Some Mortgages in Bonds (BBG)
• Egypt opposition calls for protests against basic law (Reuters)
• Euro Crisis Will Linger, Merkel Tells Summit (WSJ)
• Economic slowdown throughout euro zone a worry for ECB: Liikanen (Reuters)

Even as the Nobel peace prize award-winning administration has been vocally partially withdrawing, but never fully, US troops from various middle eastern nations over the past several years, it appears that it has decided to open up a brand new military front, and position US soldiers in yet another hotspot, which is sure to escalate in the future, namely Syria, where yesterday, quietly in the media blanket coverage of the Newtown tragedy, the Pentagon said that some 400 US troops and several Patriot missile batteries would be stationed as part of a NATO force to protect Turkey from "potential Syrian missile attack." As the AP reports, "Defense Secretary Leon Panetta signed a deployment order en route to Turkey from Afghanistan calling for 400 U.S. soldiers to operate two batteries of Patriots at undisclosed locations in Turkey, Pentagon press secretary George Little told reporters flying with Panetta." As is well known to those who follow the local conflict, the traditional narrative is that the US is supporting the oppressed Syrian rebellion, which has been fighting the Assad regime as glorious guerrilla freedom fighters. What is less known is that parts if not all of the Syrian rebellion have an "explicit stamp of approval" from Al Qaeda, the same Al Qaeda, which when useful, is carted out to justify US foreign, and at times very domestic, interventions, and the trampling of all civil liberties (see U.S. Terrorism Agency to Tap a Vast Database of Citizens) , in various other parts of the world.

Average Fox News Viewer is 65 … Other Corporate News Networks Aren’t Far Behind

In a sharp turn around from the open, Italian and Spanish 10yr government bond yield spreads over German bunds trade approx. 10bps tighter on the day, this follows several market events this morning that have lifted sentiment. Firstly from a fixed income perspective, both Spain and Greece managed to sell more in their respective t-bill auctions than analysts were expecting and thus has eased concerns ahead of longer dated issuance from Spain this Thursday. In terms of other trigger points for today's risk on tone the December headline reading in the German ZEW survey was positive for the first time since May 2012 coming in at an impressive 6.9 M/M from previous -15.7 with the ZEW economists adding that Germany will not face a recession. Finally, reports overnight have suggested that Italian PM Monti could be wooed by Centrist groups which means that if he wanted too the technocrat PM could stand for elections next year albeit under a different ticket. As such yesterday's concerns over the Italian political scene have abated and the FTSE MIB and the IBEX 35 are out performing the core EU bourses. Looking ahead highlights from the US include trade balance, wholesale inventories and a USD 32bln 3yr note auction, however, volumes and price action may remain light ahead of the key FOMC decision on Wednesday.

The 8 day mini war between Israel and Gaza has come and gone and any attempts at provoking a wider regional conflict, one involving Iran (if indeed this was the intention), have failed. Which means the fallback plan - Syria - is back in play. And sure enough, as both the most recent naval map update, which shows a US aircraft carrier and a big deck amphibious warfare ship, both of which house thousands of troops and numerous offensive aircraft, and an RT news flash, indicating that thousands of troops have amassed near the Syrian shore confirm, the time for a US invasion may be near. The alibi? "Chemical weapons" of mass or non-mass destruction. In other words the Iraq playbook all over again.