DEFCON 2: TRR Moves Closer To A "War Footing" On Iran Concerns - Buying Oils

report
28th June 2010
This issue:
DEFCON 2: TRR moves closer to a “war
footing” on Iran concerns – buying Oils
Buying Oils and Rare Earths
Gold and the Euro - rumblings

of economic discontent
Feedback from the secretive

Bilderberg & Trilateral
Commission meetings
DEFCON 2 = a further increase in force readiness to just
Why we shouldn’t be surprised below maximum readiness.
that Obama has failed to live up I remain overwhelmingly invested in precious metal
to all the hope
stocks but have cleared out my other exposure (mainly
technology) and put the balance in:
Arch Crawford’s warning of a
rare planetary alignment BB Oils: Statoil - the Norwegian major. I already had a small
position in Desire Petroleum, which is basically a “long
Decoding Stanley Kubrick’s Eyes shot” on oil exploration off the Falkland Islands; and
Wide Shut
BB Rare Earths - Ucore Uranium (US – a dual play with
uranium, obviously) and Lynas Corporation (Australia).
The former is defensive, i.e. it represents insurance

against the possibility of a disruption to world oil supply in
FREE Martin Armstrong the coming months resulting from a US military strike on
Iran (and knock-on effect on oils flows through the Straits
Imprisoned for financial analysis of Hormuz). The latter is offensive – rare earth stocks
have seen substantial corrections since the strong run up
last year, rare earths are used in a multitude of “green”
technology applications and supply from China (over 90%
of global supply) is gradually being restricted.
Buying oil exposure

In brief, I’m taking out some “insurance” in the oil sector because:
BB The feedback from the recent Bilderberg meeting outside

Barcelona was that “They’re tilting heavily towards green
lighting a US attack on Iran”. This is a significant change from
previous meetings when there was strong opposition to such
Contact/additions to distribution:
action;
Paul Mylchreest
paul@thunderroadreport.com
BB UN sanctions against Iran are being stepped up and the US/Israel are expressing concern at the ongoing
development of Iran’s nuclear programme even though Iran’s recent uranium deal with Turkey and Brazil
went a long way towards meeting their previous demands;
BB Participants at the recent Trilateral Commission and Bilderberg meetings were disheartened. The little
“new world order” project is behind schedule, debt problems risk tearing their Eurozone project apart
(and eventually the US financial system) and the “peasants” are fed up with being saddled with trillions
in bailouts. Crises provide opportunities for change (the change they believe in) to these people;
BB It is hard to imagine in what circumstances public opinion in the western world would tolerate an attack
on Iran. There would probably need to be a convenient excuse. We need to be vigilant, therefore,
regarding “false flag” incidents, etc. I’ve also said before, that (sadly) further attacks on the US and
UK seem almost inevitable given the policy and heavy loss of civilian life in Afghanistan, Iraq and now
Pakistan;
BB It seems to me that the WIN WIN scenario for the “powers that be” would be regime change in Iran AND
a dose of inflation which can’t be pinned directly on their reckless monetary policies and obscene debt
creation. With comfortable levels of inventory and spare capacity in Saudi Arabia, I would currently be
short-term bearish on the oil price. However, a big surge in the oil price might be the best method to
ignite an inflationary surge, hence I’m happy to hold insurance in this sector just in case.
BB Iran has pledged to disrupt oil flows through the Straits of Hormuz if it is attacked. The daily flow of oil
through this “choke point” is 16.5-17.0m bpd – or about 40% of all seaborne traded oil); and
BB I’m not saying that the following is necessarily connected to the discussion above and I could write
books on what I DON’T know about astrology. However, the successful “astro-technical” analyst, Arch
Crawford, has been warning about a very rare astrological event, a “Cardinal Cross”, which takes place
“on or about July 30 – August 1” in 2010. I checked this out on astrology websites, which confirm it. It
seems to imply some kind of world event or extreme tension – although whether that will necessarily
impact markets is another matter.
I’m staying calm and this is not meant to be alarmist, just sensible in the circumstances. I’ve learnt how
costly not paying attention to feedback from the Bilderberg meetings can be in years gone by. But Arch
Crawford’s work also adds another, albeit indefinable, dimension to risk in the near term. We all insure our
homes/cars, etc, and I suppose a portfolio of gold, silver and oil exposure (with a bit of rare earths) could
be considered nearly 100% insurance - I’m happy to run with it for now.
In terms of oil stocks, I’ve bought the Norwegian oil major, Statoil. What I like about Statoil is that it has
the highest gearing to a rising oil price of the European oil majors IF there is a sudden rise in the oil price.
Critics of Statoil have argued that there is “reinvestment risk” as the company tries to broaden its resource
base outside the Norwegian Continental Shelf (NCS). There is also scepticism about the company’s ability
to maintain NCS production at around 1.45m bpd (out of a group total of 1.96m bpd). These concerns will,
at least temporarily, take on less relevance in the event of disruption to supplies from the Middle East.
Furthermore, only 2% of Statoil’s 2009 production came from the Gulf of Mexico, 0.3% from Iran and
it has no other production in the Middle East. In valuation terms, Statoil is trading on a 5% yield with a
below sector average 2010 EV/EBIDA of 4.1x (recent Nomura estimate) despite its sector leading return
on invested capital.
Buying rare earths exposure

I missed the original run up in rare earth stocks during March to October in 2009, but the sharp correction
looks like a good opportunity to me. For example, here is the chart of Lynas Corporation, the most advanced
of the quoted rare earth development companies.
© Thunder Road Report - 28 June 2010 2

Lynas Corporation - share price 12 mths
Source: Yahoo Finance
Wikipedia defines rare earth elements/metals as:
“seventeen chemical elements in the periodic table, namely scandium, yttrium, and the fifteen lanthanides.
Scandium and yttrium are considered rare earths since they tend to occur in the same ore deposits as the
lanthanides and exhibit similar chemical properties.”
The fifteen lanthanides are lanthanum, neodymium, praseodymium, promethium, samarium, europium,
gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium and lutetium. They have unique
magnetic, chemical, catalytic, electrical and luminescent qualities. Rare earths are mainly used in high
tech applications, such as advanced batteries, super magnets, lighting and optics components and
superconductors. These are used in mobile phones, flat screen TVs, medical imaging, hybrid cars, wind
turbines, solar technology, computer disk drives, energy efficient light bulbs lasers, smart bombs, optical
fibres, etc. While generally used in small quantities (although a Toyota Prius is reported to require 65
pounds of rare earths), there is very limited ability for substitution.
Lynas Corporation’s website has a great presentation covering the basics of the rare earths industry. Below
I’ve summarised two charts on forecast 2010 global demand of 134,000 tonnes of rare earth oxides by
application and region:
Demand for rare earths in 2010
End uses % of demand Use by region % of demand

Magnets 24% China 54%
Battery 12% Japan 24%
FCC 16% Europe 10%
Polishing 15% US 8%
Metallurgy 9% Rest of Asia 4%
Glass additives 8%
Auto catalysts 7%
Phosphors 6%
Other 3%
Total 100% Total 100%
Source: Lynas
Supply this year is slated at 125,000 tonnes globally, which would lead to a 9,000 tonne deficit.

The highest profile supporter of the investment case for rare earth stocks is James Dines, who justifiably
calls himself the “original rare earth bug”. In May 2009, Dines called for a “Super major bull market in rare
earths. If you haven’t heard of him, Dines has been publishing the “The Dines Letter” for about 40 years. He
was fired from A.M. Kidder in the late-1960s for predicting that the gold price would rise from its fixed level
of US$35/oz to US$400/oz. Obviously, it turned out that he was far too conservative as the price reached
its former all-time high of US$850/oz in January 1980.
For those unfamiliar with rare earths, there are several key things you need to know:
BB China accounts for more than 90% of global rare earths production, much of it from deposits at Bayan
Obo in the autonomous region of Inner Mongolia. There is also significant illegal mining in Southern
China from small ionic clay deposits;
BB China’s Ministry of Land and Resources has been limiting production and exports of rare earths since
2004. Annualising 1H10 export quotas, would lead to an FY10 export quota of 44,564 tonnes, a 9.3%
reduction on 2009. China is also building stock piles to support prices and protect its rare earth resources
from being exploited too rapidly and cheaply. Furthermore, there is much debate regarding the policy of
Chinese Ministry of Industry and Information Technology and whether the export of some “heavy” rare
earths, dysprosium, terbium, thulium, lutetium and yttrium, will be prohibited after 2015
BB In 2009, China attempted to acquire stakes in two Australian rare earth exploration companies, Arafura,
in which it succeeded in buying 25% and Lynas, were it was unsuccessful in buying more than 50% and
had to walk away empty handed. Posco and Korea Resources recently bought a 60% stake in a small
Inner Mongolian company, Yongxin Rare Earth Metal Co, which will allow them to buy rare earth export
quotas. The competition for rare earth assets is heating up.
BB Rare earths are strategically important for the US military being used in unmanned drones, smart bombs,
cruise missiles, night vision and many general electronic and communication technologies. In April 2010,
the US Government Accountability Office (GAO) sent a report to the US Committee on Armed Services
highlighting that the US is dependent on China for rare earths, has no manufacturing facilities to refine
oxides into metals and that shortages of lanthanum, cerium, europium, and gadolinium have already
caused weapon system production delays. US Department of Defense is investigating “vulnerabilities”
and will produce its own report by September 2010.
Looking ahead, the Lynas presentation forecasts global demand will reach 182,000 tonnes by 2014,
implying a CAGR of 8.0% p.a. during 2010-14. Other sources claim demand will be 190,000-205,000
tonnes. If we add up supply from existing mines, Lynas’s 22,000 tonnes p.a. Mount Weld project (start up
2011) and 20,000 tonnes p.a. from the Mountain Pass project (start up 2012), global supply would still
only reach 155,000-175,000 tonnes by 2014 – the range depending on the level of illegal Chinese supply
from ionic clay regions which the Chinese authorities are slowly shutting down for environmental reasons.
This source of supply is also skewed more towards the “heavier” rare earths which command the highest
prices. Production from Alkane Resources’ Dubbo Zirconia project (2,500 tonnes p.a.) and Arafura’s Nolans
Bore deposit (up to 20,000 tonnes p.a.) could be onstream during 2013/14 but is not certain. As far as I
can tell, no other projects are currently expected to come into production before the end of 2014 – so there
is a good chance that the market will remain tight. In addition, there is speculation that the US, Japan and
Germany, like China, will also begin to stockpile rare earths for military (US) and automotive reasons.
The next chart shows the trend in prices for eight rare earth oxides since 2007. These are quoted in US$/
kg FOB China. The chart also shows the proportion of the expected output of Lynas’s Mount Weld deposit
by each of these rare earths when it comes onstream:

Rare earth prices 2007-10 (US$/kg)
Rare earth oxide Mount Weld 2007 2008 2009 1Q10 21/6/10
Lanthanum oxide 25.5% 3.44 8.71 4.88 6.08 8.10
Cerium oxide 46.7% 3.04 4.56 3.88 4.46 7.00
Neodymium oxide 18.5% 30.24 31.90 19.12 27.56 34.50
Praseodymium oxide 5.3% 29.05 29.48 18.03 26.13 34.50
Samarium oxide 2.3% 3.60 5.20 3.40 3.40 3.40
Dysprosium oxide 0.1% 89.10 118.49 115.67 156.50 210.00
Europium oxide 0.4% 323.90 481.92 492.92 512.40 520.00
Terbium oxide 0.1% 590.40 720.77 361.67 478.90 506.00
Avge Mount Weld price 11.59 14.87 10.32 13.13 16.72
Source: Lynas Corporation
The three key points to note are:
BB The majority of rare earth prices, with the exceptions of dysprosium and europium, collapsed in 2009;
BB Prices have generally been rising during late-2009 and the first half of 2010; and
BB All rare earths are not created equal, i.e. the prices of dysprosium, europium and terbium oxides are
many multiples of the prices of the others.
On the PBS Newshour on 14 June 2010, Jack Lifton, a high profile consultant on the rare earths industry,
was asked:
“Some people have said that we could be facing a rare earth crisis in the next two or three years, you’re
saying it could be right now?”
He confirmed this:
“I’m saying it is right now. There are a lot of my colleagues are saying ‘No, no, it’s in the future’, well no it
isn’t because developing mines takes years and years. The crisis is NOW!” (his emphasis)
Then in Obama’s address recent TV address about the BP disaster, he was ranting on about developing
clean energy:
“The transition to clean energy has the potential to grow our economy and create millions of good, middle-
class jobs - but only if we accelerate that transition. And only if we rally together and act as one nation -
workers and entrepreneurs; scientists and citizens; the public and private sectors. Some believe we can’t
afford those costs right now. I say we can’t afford not to change how we produce and use energy - because
the long-term costs to our economy, our national security, and our environment are far greater.”
Perhaps somebody should mention to Obama the importance of rare earths for his grandiose vision. Here
is another good comment from Lifton on the conundrum of using rare earths in driving the move to “clean
energy”:
“You want to go on the path to a green future? That path starts in a mine. The first step in the supply chain
for a green world is the mine. And people who have knee-jerk reactions, “Mining is evil, mining is bad
mining is dirty’, then forget green. Your world will be black!”
I have bought shares in two rare earth plays:
BB Ucore Uranium has a fully diluted market cap of only c.US$22m and is really an “option” on heavy rare
earths (and uranium co-product). Indeed, it should problem rename its Ucore Rare Earths to attract
more investor interest. Its core asset, the 100%-owned Bokan Mountin deposit in Alaska, has a heavy/
light rare earth ratio of about 50%. This compares with c.5% at Mount Weld and 9% at Mountain Pass
in Wyoming, with the latter expected to be the first domestic US project to begin production in 2012.

Indeed, exploration conducted so far suggests that 36% of the deposit consists of dysprosium and
terbium, which have key military applications, and could suffer from a Chinese export ban post-2015.
BB Lynas Corporation – the first phase of the Mount Weld project (11,000 tonnes of rare earth oxides) is
due onstream in approximately six months and should benefit from what is currently a very favourable
pricing environment. Phase two, with an additional 11,000 tonnes, is due onstream in 2013.The company
is developing an integrated model which will enable it to undertake the complex processing steps from
concentration of the ore at Mount Weld through to the final product from a facility under construction
in Malaysia. It has already negotiated four supply contracts and signed two additional letters of intent.
Indeed, around 70% of phase one production and 25% of phase two is already presold for five years.
Gold and the Euro – rumblings of economic discontent

In the last Thunder Road Report from 4 May 2010, I commented how the “Pi date” in Martin Armstrong’s
model (16 April 2010, i.e. 2007.15 + 3.14 years) coincided precisely with the announcement of the Goldman
Sachs fraud investigation. With hindsight, the Pi date also coincided closely with:
BB The BP Deepwater Horizon oil disaster (20 April 2010);
BB Recent peak of 1,217 in the S&P500 (23 April 2010);
BB The “Flash Crash” when the Dow Jones fell 998 points in minutes (6 May 2010);
BB European US$1 trn bailout (10 May 2010); and
BB The attack by Israel on the aid flotilla destined for Gaza (31 May 2010)
As my former colleague at JPM, Sumer D., said to me over lunch:
“Armstrong is THE MAN”
Martin sounded a warning that the flash crash in early May was a “waterfall event” and not the result of a
“fat finger”.
“This was a classic WATERFALL that emerges in times of a collapse in Public Confidence. As I put out in
a quick report on May 6th, this was an event driven by Greece no matter what any says…this pattern is
showing up far more frequently on the various levels of price activity and this in itself is a real warning of
what is to come…and just as people panic intraday, this is how they will act on the monthly level that is on
the horizon.”
He nails what is happening on the global movement of capital as it seeks security:
“What is taking place is that capital is moving faster and faster in this global economy. VELOCITY is
increasing and eliminating the ability of nations to even control their money supply. The driving force
behind this is CONFIDENCE and that is the key to everything. It is the key that will wipe out the plans of all
Western governments and is going to force a complete restructuring worldwide.”
I agree with Martin’s comment – the flash crash was an omen and so is the gold price making new all-
time highs. Did you see it too? It was Monday morning, 10 May 2010, when (in my opinion) gold briefly
started to trade as a currency once again. Gold and the US dollar surged simultaneously – a rare event. The
catalyst was the announcement of the massive US$962bn European bailout and ECB quantitative easing
programme. From just under US$1,185/oz after the London open, the gold price surged to its then all-time
high of US$1,250/oz four days later.

Gold price - 1 year (US$/oz)
Source: timingcharts.com
There were widespread reports of bullion dealers in Germany being overwhelmed by demand. In Austria,
Muenze Oesterreich which produces the Austrian Philharmonic gold coins, sold more in the two weeks to
12 May 2010 than in the whole of the first quarter of this year. In Greece, there were reports that gold was
being sold by “street vendors” outside the Athens Stock Exchange at prices above US$1,700/oz.
A surging gold price is a vote of no confidence against governments and their fiat/paper currencies – so the
“Gold cartel” was sent into action to dampen down the enthusiasm and shake out the weak hands…oh and
get the gold price down below $,1200/oz in the run up to option expiry on 25 May 2010 (there were huge
long positions around this strike). With option expiry out of the way, gold bounced back to a new all-time
high before the price was bombed again.
Here are a couple of recent comments sent to the Chairman of the Gold Anti-Trust Action Committee
(GATA), Bill Murphy. This one from “TW”:
“I have just attended a dinner at which Paul Volcker was speaking and I managed to get his attention to ask
his views on gold. Having been very chatty he immediately clamed up and said “No comment”. He then asked
me whether I was long gold and when I said I was he said ‘Gold is the enemy’ and turned away. It was a very
defensive response and one which I thought was rather bullish. Keep up the good work; we are slowly winning.”
It doesn’t get much clearer than that, does it? And this from “Andy”:
“Gold is the only asset on earth that IMMEDIATELY collapses the second it has a major technical breakout.”
However, let’s put things into a longer-term perspective. This is Jim Sinclair’s prescient comment from a
several years ago:
“gold migrates from a commodity form, to a barometer, to a currency, to an international balance sheet
form.”
He went on to explain:
“When the gold price bottomed, that was the commodity value of gold, related to the industry’s cost curve.
Gold will move out of that, as it has now, into a form of a barometer. A barometer measures the level of
anxiety…Gold becomes a currency when the appreciation of gold in percentage terms is greater than the
appreciation in the strongest currency at the time. Clearly then, gold has been elected the currency of

choice…The maximum value category in gold, in which gold gets fully priced, is when it attempts to balance
the balance sheet of the United States.”
As this process plays out, you can bank on disinformation peddled by the mainstream media along the way.
In this case, we have some atrocious journalism from the Lex Column in the Financial Times on 16 June
2010. Here is an amusing bit which betrays a complete lack of historic knowledge:
“It is debatable whether profligate governments and easy money justify gold as a financial investment, but
the notion that one can only trust tangible gold is more than a bit ridiculous.”
For starters, the Lex writer would benefit from studying:
BB The debasement of Roman coinage from 100% silver and gold to coinage which was merely coated in
precious metals; and
BB The recent history of fiat currency. Forget the Reichsmark, Argentina and Zimbabwe for a minute and
focus on the world’s reserve currency, such as it is. Since the creation of the Federal Reserve in 1913, the
purchasing power of the US dollar has diminished by over 95% according to the Federal Reserve Bank of
Minneapolis’s own website – and that’s using the official inflation numbers which (thanks to shadowstats.
com) we all know are rubbish.
This is “Carry on Financial Journalism” stuff. Continuing from the same piece in Lex:
“So is the notion of a gold shortage. More than any other commodity, the amount of gold above ground far
exceeds actual consumption. History has shown that, even during war, hyperinflation or famine, someone
will always sell or barter their gold.”
There are two points which the FT journalist has overlooked. Firstly, “Gresham’s Law” that “bad money
drives out good” - in this case physical gold is being hoarded and will not come back into circulation until
gold is trading at a much higher price relative to fiat. Secondly, that due to the LBMA’s use of unallocated
gold account and the explosion in gold derivatives, the gold market has become a fractional reserve system
and the fraction is getting smaller as more and more people realise this and Gresham’s Law kicks in.
There was more:
“And suggestions that governments…are engaged in a conspiracy to distort gold reserves, are outright
paranoid.”
It is a fact that governments distort gold reserves. China didn’t announce until April 2009 that it had bought
454 tonnes of gold since 2003 (which took its reserves to 1,054 tonnes). Only four days later on the 20
June 2010, the FT itself reported:
“the revelation that Saudi Arabia, the world’s largest oil exporter, is sitting on more than twice as much
gold as previously thought”
Great stuff from the “Carry On” team at the Lex Column. We should also not forget that central banks
routinely lend gold into the market but never disclose this in their annual accounts. The Federal Reserve has
admitted to making “gold swaps” but doesn’t change its reported gold holdings which, incidentally, haven’t
been audited properly since Eisenhower was President in the 1950s.
The last bit from Lex is pure propaganda exposing the Achilles’ Heel of the politicans and central bankers,
i.e. direct ownership of physical bullion:
“Part of gold’s historical appeal was its portability and immutability. But insisting on direct ownership only
makes investing in it unnecessarily cumbersome and expensive. The only people who profit are miners,
promoters and vault manufacturers, not the fearful goldbugs themselves.”

So you own an asset, it’s price goes up…let’s say from US$250/oz to US$1,200/oz in gold’s case, or from
anywhere in between, and you don’t make any money? That’s a new one – it seems like the FT has some
kind of reverse accounting system. If memory serves me correctly, Martin Taylor went from Lex writer at
the FT to CEO of Barclays Bank (via Courtaulds Textiles) and then Secretary General of Bilderberg.
Like a pearl in a rotting oyster, however, FT journalist (and former China bureau chief), Richard McGregor,
has written an intriguing book, “The Party – The Secret World of China’s Communist Rulers”.
Source: Amazon
In the financial markets, we are constantly discussing the impact of China – in commodity markets, gold,
US Treasuries and its overall impact on world economic growth, etc. However, few of us have a good
understanding of how China really “works”.
McGregor’s coverage is broad, including interaction between the Party and the business community, the rise
and fall of different factions (like the “Shanghai Gang” and Hu Jintao), corruption, the cover up of 30-40
million deaths under Mao and what could derail the Party and the Chinese economy.
I also like the anecdotes – for instance, how the totalitarian system has softened (a little) since the days
of Mao Zedong when “terror was not just a side effect of the system. Terror was the system”. When
dealing with anti-Japanese riots which broke out across China in 2005, the Party took over the mobile
telecommunications networks and flooded the system with messages like this one in Beijing:
“The Beijing Public Security Bureau would like to remind you of the following; don’t believe rumours, don’t
spread rumours, express your patriotic fervour in rational ways. Don’t participate in illegal demonstrations.
Wangtong Telecommunications wishes you a happy Labour Day.”
McGregor describes how the Party has a “human resources arm” which handles all of the key appointments
in the public and private sectors. He asks us to imagine a similar department in the US which would:
“oversee the appointment of the entire U.S. cabinet, state governors and their deputies, the mayors of major
cities, the heads of all federal regulatory commissions, the chief executives of GE, Exxon-Mobil, Wal-Mart and
about fifty of the remaining largest U.S. companies, the justices of the Supreme Court, the editors of the New
York Times, the Wall Street Journal and the Washington Post, the bosses of the TV networks and cable stations,
the presidents of Yale and Harvard and other big universities, and the heads of think-tanks like the Brookings
Institute and the Heritage Foundation. Not only that, the vetting process would take place behind closed
doors, and the appointments announced without any accompanying explanations why they had been made.”

The irony is, as I show later in this report, the situation in the US is no different – just more subtle.
A curious quote from David Rockefeller:
“Whatever the price of the Chinese Revolution, it has obviously succeeded not only in producing more
efficient and dedicated administration, but also in fostering high morale and community of purpose. The
social experiment in China under Chairman Mao’s leadership is one of the most important and successful
in human history.”
Full marks to Richard McGregor, however, and perhaps some journalists will belatedly take up the baton
and REALLY discuss:
- How power is exercised in the western world;
- How financial markets, especially gold and silver, are routinely manipulated by the US authorities; and
- Why solving a debt crisis with MORE and MORE and MORE debt is completely insane.
Martin Armstrong wrote earlier this month:
“I spent my life building a model that I hoped would have prevented the very s*** we are going through
now. But the SEC and CFTC are no different from Communist Russia who silenced Kondratieff because they
did not like what he had to say. Our greatest problem is that government wants all opposition silenced…
They ensure we will collapse completely in confusion. We cannot force the FREE MARKETS to do what
economically is unsustainable. That is precisely WHY communism failed…The state owned all property and
man was thus driven back into the Stone Age and even held much like domesticated cattle. Politicians
simply threw in the food, kept the gates locked, and bred us no different from slaves…FREE MARKETS also
implies FREEDOM of the very people themselves to plan their FUTURE.”
Martin sent the Chairman (Bill Murphy) and Secretary/Treasurer (Chris Powell) of GATA, which has led the
fight to expose the suppression of gold and silver prices, a letter last week:
“How’s it going guys? It has been a long time. I hear you still do seminars. I’m still fighting. But this
process is so slow, I’ll be out in March. Gold looks good. Once it gets above $1300, finding support at
that level will start the bull market spike. I’ve been writing … mainly to keep myself active and to piss off
the government and bankers.
All the best
Marty”
Bill Murphy noted that Chris Powell:
“attempted to visit Martin Armstrong a long time ago in a New York Prison, but was denied.”
But I have to disagree with Bill on this:
“At one point MA was considered a guru…”
Martin Armstrong’s track record proves that he is the greatest financial forecaster ever to walk the planet.
His nemesis, the US Federal Government, is manifestly insolvent (along with an increasing number of US
states), so how fortunate it is that oil, other commodities and the majority of the world’s liabilities are
priced in dollars. The trillion plus deficits continue to pile up without check while the world’s attention is
distracted by Europe. I was saying in the last Thunder Road that tragedy and comedy have been added
to the normal dualism of fear and greed in the financial markets. So far, the comedy awards go to senior
European officials. This was ECB Governing Council Member, Ewald Nowotny before the Greek bailout:
“Greece, being a Euro country, is under the regime of Euro regulations, and so the main policy approach is
of course that they have to solve the problems themselves…So the ECB as such cannot intervene.”
And this classic from Trichet when asked about the ECB buying Eurozone bonds the day before rumours of
the impending QE programme hit the wires and only three days before it was announced:

“I would say we did not discuss this option.”
After the Eurozone bailout, the elegant, but staggeringly misguided, French Finance Minister, Christine
Lagarde argued:
“The message has gotten through: the Euro zone will defend its money”
With more debt, Mme Lagarde? The Euro zone is destroying the value of its money in a reckless attempt
to save a flawed system.
Nicolas Sarkozy weighed in (as best he could) with the threat to:
“confront speculators mercilessly.”
And that they would soon:
“know once and for all what lies in store for them”
There is an expression in Britain which may not have crossed the Atlantic yet (except in the lyrics of a
Robbie Williams song):
“Come and have a go if you think you’re hard enough”
It’s used to incite confrontation and can be dangerous unless you are supremely confident of your own
position. Perhaps Mme Lagarde and Mr Sarkozy should take note and read up on the collapse of the London
Gold Pool in 1968 when Fed Chairman Bill Martin vowed to continue selling gold “down to the last ingot”
to defend the dollar’s value – only to throw in the towel four days later. And let’s not forget Britain’s own
Norman Lamont being taken to the cleaners by Soros and his pals.
But if the roughly one trillion dollars of money created out of nothing more than key strokes doesn’t do the
trick, there’s plenty more to where that came from according to the EU’s new President:
“June 10 (Bloomberg) - European Union President Herman Van Rompuy said the 750 billion-euro ($905
billion) rescue package would be expanded if it doesn’t quell the debt crisis, becoming the first EU leader
to float the idea of a larger fund. ‘Currently there isn’t even the hint of a request to put this rescue plan
into practice,’ Van Rompuy told Belgium’s Trends magazine. ‘And if the plan were to prove insufficient, my
answer is simple: in this case, we’ll do more’.”
Genius. Just in case you missed UKIP (United Kingdom Independence Party) MEP Nigel Farage take Von
Rompuy apart in the European Parliament. While he shouldn’t have insulted him (maybe), it’s hard to
disagree with any of his points:
“We were told that when we had a president, we’d see a giant global political figure, a man who would be
the political leader for 500 million people…Well, I’m afraid what we got was you…I don’t want to be rude
but, really, you have the charisma of a damp rag and the appearance of a low-grade bank clerk and the
question I want to ask is: ‘Who are you?’ I’d never heard of you. Nobody in Europe had ever heard of you.
I would like to ask you president, who voted for you? And what mechanism do the people of Europe have
to remove you? Is this European democracy? I sense, though, that you are capable and competent and
dangerous. I have no doubt that it is your intention to be the quiet assassin of European democracy and
of the European nation states. You appear to have a loathing for the very concept and existence of nation
states. Perhaps that is, of course, because you come from Belgium which, of course, is pretty much a non-
country.”
A “low-grade bank clerk” with little understanding of a need to maintain confidence in the purchasing power
of a currency.
The Eurozone countries messed up – they didn’t adhere to the rules on debt and deficits. It seems obvious
that the solution for the Greek problem is for the country to withdraw from the Euro, restructure its debt
and re-establish its fiscal credibility, be re-admitted a few years down the line. The same is true for Spain
and Portugal and possibly Ireland and Italy. But here we get to the crux of the matter - irrational belief in

an economic “free lunch” from limitless money creation AND the headlong dash for their own little world
government – of which the regionalisation of Europe was a first step and Bilderberg was planning all along
as Etienne D’Avignon has boasted.
“This REGIONALIZATION (my emphasis) is in keeping with the Trilateral (Commission) Plan which calls
for a gradual convergence of East and West, ultimately leading toward the goal of one world government.
National sovereignty is no longer a viable concept.”
Zbignew Brzezinski, former National Security Advisor to Jimmy Carter
Which can be thought of in terms of the following anonymous quote:
“When they are used to coming every day, you put a fence down one side of the place. When they get used
to the fence, they begin to eat the corn again and you put up another side of the fence. They get used to
that and start to eat again. You continue until you have all four sides of the fence up with a gate in the last
side. The pigs, which are now used to the free corn, start to come through the gate to eat, you slam the
gate on them and catch the whole herd. Suddenly the wild pigs have lost their freedom. They run around
and around inside the fence, but they are caught. Soon they go back to eating the free corn. They are so
used to it, they have forgotten how to forage in the woods by themselves.”
The stepping stone of regionalisation has obviously hit a bit of a snag with the debt crises in Greece and
the other Club Med nations. Chucking out the weaker members at this point would put the plan into reverse
and threaten the whole process. Alternatively, they could go “all in” and go for total financial and political
integration by creating a federal Europe in one gigantic step. As things stand, there’s no way the German
people (and probably others) are going to accept this – unless they can be softened up via a MAJOR crisis.
Then the classic modus operandi of the global socio-fascists could kick in, i.e. PROBLEM (big new crisis),
REACTION (the people say “Please DO something”), SOLUTION (pre-determined plan is activated).
Feedback from the secretive Trilateral Commission and Bilderberg meetings

Talking of world government, two interlocking factions of the shadow structure held their annual meetings
recently, the Trilateral Commission and Bilderberg. As I’ve said before in Thunder Road, it’s worth getting
an idea of what’s being discussed at these meetings since they occasionally turn up critical information for
investors. In this regard, we are heavily reliant on the inside sources of Jim Tucker of the American Free
Press and Daniel Estulin. I’ve learned to ignore their feedback to my cost – for example the buy oil message
Jim Tucker gave in 2005 and the sell oil signal in 2008. Here are his quotes from the Bilderberg meetings
in those years:
“25 May 2005, Rottach-Eggern in Germany: Will the price of oil reach $150 a barrel in two years? Henry
Kissinger made this prediction to Richard Holbrooke, according to two friendly sources inside the secret
Bilderberg meeting. ‘It should not be long,’ Kissinger told Holbrooke, vice chairman of Perseus LLC and
longtime Bilderberg luminary. Kissinger said the demand for oil has far exceeded the supply. Oil, and who
gets it, is part of the bitter Bilderberg dispute over Middle East policy. One source said James Baker had
made the same pre-diction while representing the Carlyle Group at an earlier business conference, saying
‘look for $150 a barrel’.”
“5-8 June 2008, Chantilly, Washington D.C: Bilderberg intensely discussed an issue crucial to all inhabitants
on Earth: Is it time to end the spiraling price of oil? Bilderberg started it and Bilderberg can end it. In 2005,
when oil cost $40 a barrel, Bilderberg called for the price to gradually rise to $150 (AFP, May 25, 2005).
Other major topics included: Would the United States get help from Europe if it attacks Iran? How should
Bilderberg deal with the Ron Paul Revolution? This is related to the problems of gaining approval of ‘free’
trade agreements to establish an ‘American Union’ throughout the Western Hemisphere because of Paul’s
“nationalism,” an obscene word in the Bilderberg dictionary. If Bilderberg halts the rise in oil prices, it will be
for selfish reasons of profit, not tender concern for one billion people - one-seventh of the Earth’s population
- left starving by soaring oil prices. ‘Are we reaching the point of diminishing returns?’ a speaker asked.

‘People who switch from gas hogs to fuel-efficient, small cars are not going to do an instant about-face.
And those who convert to public transportation, many of them, are going to stick with the train or bus. We
have seen many middle-class families, who grudgingly accepted $3 a gallon, choose to stay home instead
of driving to the beaches or mountains. They’re calling them ‘staycations.’ We all take the long view of
history. Will forcing gasoline prices even higher increase profits in the long term? Ford has already shut
down production of big cars and has many SUV types it can’t give away. Ford will not retool ‘overnight’.
One pointed out that Europeans have long paid much more for gasoline, up to $10 a gallon. ‘But we’re
dealing with Americans here and they’re not only our largest consumer, but a different breed of cat in many
ways’, the speaker responded to light laughter. There was more nattering but no direct dissent from his
argument, offering hope that Bilderberg will act to prevent a bad situation from getting worse.”
Fast forwarding to 2010 and the first of the two secretive meetings was the Trilateral Commission which
took place in Dublin at the Four Seasons hotel during May 7-10.
On this year’s guest list, posted on the American Free Press website were the following (and remember that
these meetings are FORUMS with a small number of key power brokers at the CORE of these gatherings
who operate higher up the pyramid):
David Rockefeller – Founder, former Ch’man CFR and Steering Committee Bilderberg,
Grigory Ysvlinsky – Chairman of the Russian Democratic Party
Jacob Frenkel – Vice Chairman AIG, Chairman & CEO Group of Thirty
Morris Chang – Chairman of Taiwan Semiconductor
Sir Deryck Maughan – KKR
John Manley – President & CEO of Canadian Council of CEOs, former Finance Minister
Henry Kissinger – Chairman of Kissinger Associates, former US Secretary of State
John J. Hamre – President Center for Strategic and International Studies
Richard Haas – President Council on Foreign Relations
Stanley Fischer – Governor of the Bank of Israel
Martin S. Feldstein – US President’s Economic Recovery Advisory Board
William Dudley – President and CEO of Federal Reserve Bank of New York
E. Gerald Corrigan – Managing Director Goldman Sachs, former President FRBNY
David Brooks – New York Times
Alan R. Batkin – Vice Chairman Eton Park Capital
Lord Mandelson – former Secretary of State for Business, Enterprise & Regulatory Reform
Alexander Wilmot-Sitwell, Co-CEO UBS Investment Bank London
Loukas Tsoualis – Special Adviser to President of European Commission
Miihai Tanasescu – Member of the Executive Board IMF
Peter Sutherland – Chairman Goldman Sachs International, former Chairman BP
Peter Straarup – Chiarman Danske Bank
Henning Schulte-Noelle – Chairman Allianz
Dieter Rampl – Chiarman IniCredit Group

Lucas Papademos – VP European Central Bank
Ewald Nowotny – Governor of the Austrian National Bank
Ulrich Lehner – Chairman Deutsche Telekom
Mark Moody-Stewart – former Chiarman of Royal Dutch Shell and Anglo American
Arapd Kovacs – President State Audit Office of Hungary
Mugur Isarescu – Governor National Bank of Romania
Nigel Higgins – CEO The Rothschild Group
General The Lord Guthrie – Director N.M. Rothschild & Sons
Stephen Green – Group Chairman HSBC
Guy Elliott – Finance Director Rio Tinto
Caroline Daniel – Financial Times
Klaus-Dieter Frankenberger – Frankfurter Allgemeine Zeitung
Alfonso Cortina – Vice Chairman Rothschild Europe
Iain Conn – Managing Director Refining & Marketing BP
I hope you noticed the journalists from the Financial Times, New York Times and Germany’s FAZ on the
guest list. What happened to the reports from these journalists on this gathering? Oh, “Chatham House
rules”….do me a favour.
This is a quote from John F. Kennedy:
“The very word ‘secrecy’ is repugnant in a free and open society; and we are as a people inherently and
historically opposed to secret societies, to secret oaths, and to secret proceedings.”
There was an amusing moment when David Rockefeller arrived at the Four Seasons and was heckled in
thick Irish accents as he walked from his limousine into the hotel.
“Rockefeller we know what you’re doing. We know what you’re doing to the world. Rockefeller your new
world order will never come in. You’re running out of time.”
And:
“You’re not going to stop the Irish, Rockefeller…you scumbag!”
Source: Sovereign Independent
Don’t you just love the Irish, especially (and you can see this on video on the www.wearechange.ie website)
when Rockefeller turns around stony faced after We Are Change’s Rory calls him a “scumbag”. Go on, my
son! Probably scared the “b’Jesus” out of Rockefeller since he’s used to everybody bowing and scraping.

“There was Slugger O’Toole who was drunk as a rule
And Fighting Bill Tracy from Dover
And yer man Mick McCann, from the banks of the Bann
Was the skipper of the Irish Rover”
From Jim Tucker’s report on the meeting:
“Never have the illustrious members of the TC been so depressed. ‘It gets worse every year, not better,’ on
said. ‘Why do we even bother to meet anymore?’ ‘We can’t simply give up and quit,’ another responded.
‘Bilderberg expects us to have a plan outlined’. Much of distress is due to the failure to establish a world
government…TC boys are upset they are unable to exploit the economic crisis they helped generate by
creating a world ‘treasury department’ under the UN. They blame ‘rising nationalism’ and ask ‘how those
people knew about this (the meeting)?’ according to witnesses inside the TC hotel.”
What was interesting about this meeting is that two members of “We are Change Ireland”, Alan Keenan and
Neil Foster, posed as students and got speaking to a Russian attendee, believed to be Mikhail Slobodovsici,
and recorded the conversation. When asked whether the people inside are talking about business, he
replies that they are discussing:
“the future of the world”
After confirming that he was an adviser to two former Russian Prime Ministers, here are some of the sound
bites from the conversation:
“We make the roadmap for what we do with the European crisis, proliferation of nuclear weapons…They’re
just discussing the problems we face…and solutions, then they go back to different countries and start to
move in the direction they decided…For Europe, what we do with the crisis of Greece, how we manage
Greece and what we shall do for other countries…we don’t want other countries to get in the same mess.”
Using a tactic commonly known as “leading the witness”, one of the WAC guys suggests a global currency
“might help” and Slobodovsici replies:
“To have a global currency, you have to have a global central bank and to have a global central bank you
need a global government and you can imagine the United States, Iran and Saudi Arabia having the same
government…so it’s a nice future but not possible YET” (my emphasis).
Of course, the removal of the small problem of Iran would help their plan? With this in mind, let’s move on
to this year’s Bilderberg meeting which took place at the Dolce Hotel in Sitges outside Barcelona earlier this
month. Here’s some of the “dignitaries” arriving. This one is too embarrassed to show her face:
Source: publicintelligence.net

Henry Kissinger arriving And Paul Volcker
Source: Quierosaber
Below is a smattering of the reported attendees from the list published by the American Free Press. I doubt
that many people would know Etienne D’Avignon from a bar of soap, but he’s a big china (plate - mate) of
Kissinger’s.
Etienne Davignon Honorary Chairman and Vice Chairman Suez Tractebel
Marcus Agius Chairman Barclay Bank
Josef Ackermann Chairman of the Management Board, Deutsche Bank
Franco Bernabe CEO Telecom Italia
Ana Botin Executive Chairman Banesto
Martin Feldstein Professor of Economics Harvard University
Bill Gates Chairman Microsoft
Donald Graham Chairman and CEO Washington Post
Richard Holbrooke Special Representative for Afghanistan and Pakistan
Jan Hommen Chairman ING Group
Lord Kerr of Kinlochard Vice Chairman Royal Dutch Shell, Adviser to RIIA
Henry Kissinger Chairman Kissinger Associates
Henry Kravis Founding Partner Kohlberg Kravis Roberts
Leon Gross Secretary General, Office of the Prime Minister
Peter Loescher Chairman Siemens
John Micklethwait Editor-in-Chief, The Economist
Thierry de Montbrial French Institute for International Relations
Juan Maria Nin Genova President and CEO La Caixa
Poul Nyrup Rasmussen Former Prime Minister of Denmark
Jorma Ollila Chairman Royal Dutch Shell
Peter R. Orszag Director US Office of Management and Budget
George Papaconstantinou Minister of Finance, Greece

Richard Perle American Enterprise Institute for Public Policy Research
Queen Beatrix Queen of the Netherlands
Matlas Rodriguez Inciarte Executive Vice Chairman Grupo Santander
Robert Rubin Co-Chairman Council on Foreign Relations
Suzan Sabanci Dincer Chairman Akbank, Advisor to RIIA
Paolo Scaroni CEO Eni
Eric Schmidt Chairman and CEO Google
Rudolf Scholten Board Member Oesterreichische Kontrollbank
Josette Sheeran Executive Director United Nations World Food Program
Javier Solana Madariaga Former Sec-General Council of the European Union
James B. Steinberg US Deputy Secretary of State
Larry Summers Director National Economic Council
Peter Sutherland Chairman Goldman Sachs Intl. and former BP Chairman
Fernando T. dos Santos Portuguese Minister of State and Finance
Gertrude Tumpel-Gugerell Member of Executive Board, European Central Bank
Paul Volcker Chairman US Economic Advisory Board
Peter Voser CEO Royal Dutch Shell
Jacob Wallenberg Chairman Investor AB
Jose Zapatero Prime Minister of Spain
Robert Zoellick President World Bank
According to the documents which Daniel Estulin obtained from his sources inside the group, the main
issues discussed in the formal sessions this year were:
1. Will the Euro Survive?

2. Development in Europe: Europe’s Exit Strategy...On Hold?
3. Do We Have Institutions to Deal With the World Economy?
4. Greece: Lessons and Forward-looking Strategies
5. NATO and Afghanistan: The Practical Agenda for the Alliance
6. Iran and Russia: Economic and Financial Threats to the Alliance
7. The Consequences of War Against Terrorism
8. The Influence of Domestic Issues on American Foreign Policy
9.The Outlook for Japan’s Economy
10. The Future of the U.S. Dollar: Alternative Scenarios
Alex Jones interviewed Jim Tucker from Sitges on his radio show introducing him as:
“The Grandaddy of exposing the Bilderberg Group and he’s got to be proud of himself – thirty three or thirty
four years covering it, going to every conference, being shot at in Portugal, being harassed, being arrested,
being detained - going from the New York Times and Time Magazine, just ten years ago, saying he was a
nut and it didn’t exist…It is now mainstream news and he’s got moles inside and he’s there on the ground.”
Jim Tucker began with an interesting quote from a Bilderberg source:
“Many important people are not attending this year. We are found out and get in trouble at home. Our
constituencies are embarrassed when constituents call and say ‘What are you doing with these monsters?’.”

The feedback on the Euro was as follows:
“They are determined to save the Euro and they’re nervous about the economic crisis. The Euro is part
of their world government program. They’re very discouraged, they’re very downbeat that they are so
far behind. In the 1990s, Bilderberg was absolutely confident they would have an American Union, the
European Union and an Asia Pacific Union well underway.”
No surprise there, they’ll try to save the system, but the news on Iran raised an eyebrow:
“Bilderberg is not 100% in favour of US airstrikes on Iran, but many of them (the attendees) are…leaning
towards war…Some in Europe saying ‘We shouldn’t do it’ but most of them are in favour of American
airstrikes against Iran.”
Alex Jones asked:
“You are saying they are moving towards green lighting, or has it been green lighted?”
And Jim Tucker clarified:
“They’re tilting heavily towards green lighting a US attack on Iran. They are not 100% in agreement, but
the majority of Bilderberg favour US airstrikes on Iran.”
This is potentially very significant and certainly a marked change from the debate on Iran at the 2008
Bilderberg meeting. Here are Jim Tucker’s comments from two years ago:
“Most European and some U.S. Bilderberg boys expressed hope that President Bush will not attack Iran
during his final months in office, although the administration’s propaganda machine is trying to condition
the public mind to accept another war. Defense Secretary Robert Gates was not on Bilderberg’s official list of
participants, but he was positively identified arriving on Friday, June 6. Gates gave the usual pitch about Iran
having a nuclear potential and being a ‘threat’ to all mankind. Gates noted that Shaul Mofaz, Israel’s former
defense minister and a candidate for the job of prime minister, told the Hebrew-language newspaper Yediot
Ahronot that Israel will attack Iran if Tehran did not abandon its nuclear weapons program. ‘Attacking Iran,
in order to stop its nuclear plans, will be unavoidable,’ Mofawz said. Secretary of State Condoleezza Rice also
asked for an ‘understanding’ of why Bush ‘can’t take anything (war) off the table when dealing with Iran.’
The Europeans were polite but firmly opposed an invasion. Wage a war for Israel? Can’t we care even a
little bit about the plight of Palestinians in the occupied lands (referring to the wanton killings of children
and civilian women and men)? Where does Iran keep nuclear weapons, in Saddam Hussein’s tomb? Gates
and Miss Rice were told the United States would ‘fly solo’ in attacking Iran and there would be no help from
NATO or European countries. At that same time, Iraq and Iran were having friendly talks on the subject of
mutual security.”
A US attack on Iran is by no means certain, but the likelihood of it occurring has clearly increased. Back to
the 2010 meeting and here’s more from Jim Tucker about plans for the US:
“The United States must be (and he quotes) ‘European-ized’ which means welfare, health rationing, as
they do in Canada and the European Union where you pay well over 50% of your income in taxes to their
national government…It would be a horrible thing to happen to this country, the European style of total
socialism.”
Then on climate change:
“They are still persisting with climate change, as futile as that might be. As you know, the real scientific
data demonstrates, we’re talking about climatologists, experts in the field…”
Alex Jones interrupted Tucker:
“They got caught in ‘Climategate’, they know it’s a fraud, it’s about taking over resources.”

Then Alex Jones went on to discuss the presence of Microsoft Chairman, Bill Gates, at the meeting:
“Spanish newspaper caught up with him, basically trying to sneak in claiming he was in Barcelona for
something else. Then he said he’s there to push climate taxes.”
Tucker responded:
“Yes he is…Definitely they’re going to push climate change even though they’re so far behind on that with
the scientists letters proving this whole thing is a fraud. In fact, one Bilderberg guy said ‘On climate change,
we’re about whipped’.”
So climate change and clean energy will continue to be pushed aggressively – good news for rare earth
deposits in the western world then!
Here is my message to Bilderberg - your way isn’t working:
Source: Kevin Carter’s famous 1993 photograph from the Sudan
Why we shouldn’t we be surprised that Obama has failed to live up to the hope?
At this point, it is worth just stepping back and considering the Obama Presidency so far. In the run up to
his inauguration, there was “Obama-mania” as not just the American people, but people all over the world,
had the audacity to hope (!) that he was going to be some kind of cross between John F. Kennedy and
Martin Luther King.
In the very first Thunder Road Report in January 2009, I said that I wanted to believe in Obama:
“I admit to being caught up in the hope that Obama’s election seems to promise. The over-the-top adulation
from around the world is probably a reflection of how badly people feel let down by politicians for decades
now.”
But remembering the hope and subsequent disappointment in the leadership of warmongering Tony Blair
in Britain, I wondered whether:
“there were any warning signs that an Obama Administration might not live up to such enormous hope. It
made me reflect on the background of some of the people close to Obama and whether he represents the
softer face of the same old ‘gang’ that has had such a tight grip on the US, to its detriment, for so long.”
One stuck out straight away as I said back then:
“The first warning sign for me came before the election when he chose (or was chosen by) Zbigniew
Brzezinski to be his foreign policy adviser on his campaign team.”

Zbigniew Brzezinski was also an advisor to John F. Kennedy, Lyndon Johnson and, in a brief across the
(illusory) political divide, George H.W. Bush. Funnily enough, his son worked on John McCain’s campaign
team. However, let’s go back to 1973 and the Trilateral Commission was set up in July that year by Zbigniew
Brzezinski at the behest of David Rockefeller. Only three years earlier, Brzezinski had written the book
“Between Two Ages – America’s Role in Technetronic Era” (i.e. technology and electronics).
Brzezinki’s 1970 book was prophetic in terms of his vision of the internet:
“The creation of the global information grid, facilitating almost continuous intellectual interaction and the
pooling of knowledge, will further enhance the trend towards international professional elites and the
pooling of knowledge and toward the emergence of a common scientific language (in effect the functional
equivalent of Latin).”
But was also very sinister:
“it may be possible – and tempting – to exploit for strategic political purposes the fruits of research on the
brain and human behaviour. Gordon J.F. MacDonald, a geophysicist specializing in problems of warfare, has
written that accurately timed, artificially excited electronic strokes ‘could lead to a pattern of oscillations
that produce relatively high power levels over certain regions of the earth…In this way, one could develop
a system that would seriously impair the brain performance of very large populations in selected regions
over an extended period…’ Such technology will be available primarily, and to begin with EXCLUSIVELY (my
emphasis) to the most advanced nations.”
Here is another gem:
“Life seems to lack cohesion as environment rapidly alters and human beings become increasingly
manipulable and malleable”
And another:
“In the technetronic society, the trend seems to be towards aggregating the individual support of millions
of unorganized citizens, who are easily within reach of magnetic and attractive personalities, and effectively
exploiting the latest communication techniques to manipulate the emotions and control reason.”
Former Sanford Bernstein strategist and now portfolio manager, Michael Krieger, quoted part of the following
passage in a recent report – this is Brzezinski musing about the chance of “The End of Liberal Democracy”:
“the gradual appearance of a more controlled and directed society. Such a society would be dominated by
an elite whose claim to political power would rest on allegedly superior scientific knowhow. Unhindered by
the restraints of traditional liberal values, this elite would not hesitate to achieve its political ends by using
the latest modern techniques for influencing public behaviour and keeping society under close surveillance
and control.”
I hope your reaction is similar to mine, but here is what Barrack Obama thinks of Zbigniew Brzezinski –
from a speech in Iowa during his presidential campaign:
“I can’t say enough about his contribution to our country. He is one of our most outstanding scholars and
one of our most outstanding thinkers. He has proved to be an outstanding friend and somebody who I’ve
learned an immense amount from. For him to support me in this campaign and then be willing to come out
here to Iowa is a testimony to his generosity. So everybody, please give Doctor Brzezinski another round
of applause.”
We can make our own minds up.
While the Trilateral Commission is an international organization, the domestic US piece in the globalist jigsaw
is the Council on Foreign Relations. The CFR’s origins date back to the end of World War 1 when President
Woodrow Wilson wanted advice on policy following the defeat of Germany. It is also intimately connected to
the Rockefeller family. John D. Rockefeller Jr. of Standard Oil, the precursor to today’s ExxonMobil, Chevron
Texaco, etc, donated the money for its first headquarters at East 65th Street in Manhattan. The widow of

another Standard Oil executive donated a building at 68th and Park Avenue to the organization in 1944,
which remains its headquarters today.
In 1975, former CFR member for 16 years, Chester Ward, and Phyllis Schlafy published the book “Kissinger
of the Couch”. This is from page 151:
“Once the ruling members of the CFR have decided that a the US government should espouse a particular
policy, the very substantial research facilities of the CFR are put to work to develop arguments, intellectual
and emotional, to support the policy and to confound, discredit, intellectually and politically, any opposition.
The most articulate theoreticians and ideologists prepare related articles, aided by the research, to sell the
new policy and to make it appear inevitable and irresistible.”
They described the goal of the CFR as the:
“submergence of US sovereignty and national independence into an all-powerful one-world government…

this lust to surrender the sovereignty and independence of the United States is pervasive throughout most
of the membership.”
David Rockefeller was the Chairman of the CFR from 1970-85 and, as with the TLC, remains Honorary
Chairman. Brzezinski is also a past member of the CFR and, as outlined above, is usually the “Rockefeller’s
man” on the left hand side of the (illusory) political divide in the US. On the right hand side, we have Henry
Kissinger.
Kissinger was a Study Director at the CFR during 1955-56 before moving to…the Rockefeller Brothers Fund
as Director of its Special Studies Project – that link again. He then became the advisor (some say protégé)
to Governor of New York and Republican nominee, Nelson Rockefeller, from 1960-68. The elder brother of
David Rockefeller, Nelson Rockefeller wrote the “The Future of Federalism” in 1962 in which he argued that
while there is:
“a fever of nationalism…(but) the nation state is becoming less and less competent to perform its international
political tasks…These are some of the reasons pressing us to lead vigorously toward the true building of
new world order…Sooner perhaps than we realize…there will evolve the bases for a federal structure of the
free world.”
Here is Wikipedia regarding Nelson Rockefeller’s role in creating the United Nations:
“The United Nations headquarters complex was constructed in New York City in 1949 and 1950 beside the
East River, on 17 acres of land purchased from the foremost real estate developer of the time, William
Zeckeddorf. Nelson Rockefeller arranged this purchase, after an initial offer to locate it on the Rockefeller
family estate of Kykuit was rejected as being too isolated from Manhattan. The $8.5m purchase was then
funded by his father, John D. Rockefeller Jr., who donated it to the City. The lead architect for the building
was the real estate firm of Wallace Harrison, the personal architectural adviser for the family.”
Back to Kissinger and he was made Secretary of State during the Nixon Administration and continued under
Gerald Ford. During the George W. Bush years of 2000-08, Kissinger was the “most frequent visitor” to
the White House. During the Obama-McCain race for the Presidency, Kissinger campaigned for the latter
saying:
“I have not this actively participated in political campaigns before and it shows the importance I attach to
(the) election of Senator McCain.”
Even though Kissinger was nominally McCain’s man, Obama was enlisting Kissinger’s help even before he
took office. This is from the Daily Telegraph on 5 February 2009:
“The Daily Telegraph has learned that the 85-year-old former US secretary of state met President Dmitry
Medvedev for secret negotiations in December. According to Western diplomats, during two days of talks
the octogenarian courted Russian officials to win their support for Mr Obama’s initiative, which could see
Russia and the United States each slashing their nuclear warheads to 1,000 warheads. The decision to send

Mr Kissinger to Moscow, taken by Mr Obama when he was still president-elect, is part of a plan to overcome
probable Republican objections in Congress.”
Right! Obama is just a front man, a salesman if you like. Here is an even more intriguing comment from
Barack Obama’s National Security Advisor (and Trilateral Commission member), James L. Jones, who said
in a speech at the 45th Munich Conference on Security Policy on 8 February 2009:
“As the most recent National Security Adviser of the United States, I take my daily orders from Dr Kissinger,
filtered down through Brent Scowcroft and Sandy Berger.”
Unbelievable. Brent Scowcroft was National Security Advisor to Gerald Ford and the first Bush. Before
serving as Chairman of the President’s Foreign Intelligence Advisory Board under George W. Bush, he was
Vice Chairman of Kissinger Associates. He is also a member of both the Trilateral Commission and the CFR.
Back in 2005, in an interview on PBS, Kissinger outlined the economic consequences of the one world
government/new world order/globalization project.
“I want to make one point about globalization. It’s always discussed in economic terms that everybody is
better off, but that is only partially true. Everybody is better off on the average. But in some countries,
or in some regions, people lose their jobs, major adjustments have to be made. That’s the engine for
globalisation.”
It’s fairly easy to work out who comes off badly in this process – the middle class in the developed world
– they get crushed and most of them (us) still don’t have a clue. I should say here that I don’t have a
problem with globalization, or eventually a world government, I just have a problem with the people who
are in control of this process and want to exploit it for their own ends (leaving the rest of us in servitude).
Here is Mr Kissinger again:
“It cannot happen without U.S. participation, as we are the most significant single component. Yes, there
will be a New World Order, and it will force the United States to change its perceptions.”
Exactly - downwards except for the top 1% of US citizens.
Let’s look at some of the other members of the Obama team, starting with Paul Volcker, who heads up the
“President’s Economic Recovery Advisory Board”. Volcker began his career at the Federal Reserve Bank of
New York in 1952 and later had two stints at Chase Manhattan during 1957-62 and 1965-69. Chase was a
Rockefeller bank before it merged with J.P. Morgan. It became the largest US bank in 1930 when it acquired
the Equitable Trust Company of New York, the largest shareholder of which was John D. Rockefeller, in
1930. According to Wikipedia:
“Chase was primarily a wholesale bank, dealing with other prominent financial institutions and major
corporate clients, such as General Electric, which had, through its RCA affiliate, leased prominent space
and become a crucial first tenant of Rockefeller Center, rescuing that major project in 1930. The bank also
is closely associated with and has financed the oil industry, having longstanding connections with its board
of directors to the successor companies of Standard Oil, especially ExxonMobil, which are also Rockefeller
holdings.”
David Rockefeller joined Chase Manhattan in 1946 and was Chairman and CEO from 1969-80 before
relinquishing the Chairmanship in 1981. Along with David Rockefeller, Paul Volcker is Honorary Chairman of
the TLC and was its Chairman during 1999-2001. Wikipedia describes Volcker as:
“…having (a) long association with the Rockefeller family, not only with his positions at Chase Bank and
the Trilateral Commission, but also through membership of the Trust Committee of Rockefeller Group, Inc.
(RGI), which he joined in 1987.”
Moving on to the lightweight Treasury Secretary, Tim Geithner – the word which comes to mind is “grommed”.
His first job was at Kissinger Associates where he worked from 1985-88 in Washington D.C. In 2002,
Geithner briefly worked for the Council on Foreign Relations as a Senior Fellow in its International Economic

Department. Having been made President of the New York Fed in 2003, he became a member of the Group
of Thirty – a “Washington-based financial advisory body – in 2006. The Group of Thirty was set up by British
financier Geoffrey Bell in 1978 at the invitation of representatives of the Rockefeller Foundation. Current
members of the G30 include Paul Volcker, Jean Claude Trichet and fellow Bilderberger/Trilateralist and
former director of the CFR, E. Gerald Corrigan.
This isn’t democracy, this is a GANG - the “Rockefeller Faction” - which has both sides of the political divide
covered. There’s David Rockefeller, Brzezinksi, Kissinger, Volcker, Rubin (Co-Chairman of the CFR – and
according to Wikipedia “also one of Obama’s economic advisors”) and a handful of others - then come the
underlings like Obama – and we’re all meant to believe he’s the “Commander in Chief”.
Noreena Hertz in her book, “The Debt Threat and Why We Must Defuse It”, related an insightful story about
“U2” frontman, “Bono” when he tried to get support for Third World debt relief in 1999:
“Who’s the Elvis here?” asked the rock star impatiently. The question reverberated through Leslie Gelb’s
book-filled office in the beaux arts brownstone that houses the Council on Foreign Relations. The exasperated
tone came from a man accustomed to addressing stadiums filled with fans hanging on his every word and
syllable, but it was far from an arrogant question. Gelb had just finished his tutorial on the American power
structure by laying out the great chain of influence -- from David Rockefeller to UN ambassador Richard
Holbrooke to U.S. treasury secretary Robert Rubin to former chairman of the Fed Paul Volcker to a number
of key Republicans -- that led from Wall Street to Washington and back again. Which only served to remind
Bono that he was aiming to play in a very different league.”
I’m reminded of Giovanni de Medici who founded the Florentine Medici banking dynasty, which was the
richest in the world in medieval times. He is reported to have told his son:
“Always keep out of the public eye”
Wikipedia says of Giovanni’s son and heir, Cosimo Medici:
“His power over Florence stemmed from his wealth, which he used to control votes. As Florence was proud
of its ‘democracy’’, he pretended to have little political ambition, and did not often hold public office. Aeneas
Sylvius, Bishop of Siena and later Pope Pius II, said: “Political questions are settled in (Cosimo’s) house.
The man he chooses holds office...He it is who decides peace and war...He is king in all but name.’
You can continue connecting the dots. Let’s consider E. Gerald Corrigan, who attended this year’s Trilateral
Commission meeting and who was mentioned above as a member of the G30. Corrigan was mentored
by Paul Volcker after joining the New York Federal Reserve in 1976, later becoming its President, just like
Geithner. It was Corrigan who dealt with the collapse of Drysdale Government Securities in 1982 when it
threatened to bring down a major money center bank…namely Chase Manhattan! Chase’s stock plummeted
until Corrigan arranged Fed loans of cash and collateral. In 1992, Corrigan was made co-chair of the
“Russia-US Forum” of which David Rockefeller was a director. He was director of the CFR from 1993-95.
After his sudden and unexpected resignation from the Fed in 1993, Corrigan joined Goldman Sachs. In
1999, Corrigan was appointed the Chairman of the Counterparty Risk Management Policy Group (CRMPG).
GATA has some choice things to say about this organization and its activities in the gold and silver markets.
In 2005, the CRMPG published a report “Toward Greater Financial Stability: Private Sector Perspective”. Got
that one wrong then didn’t they!
I could go on. It’s not a theory, it’s frighteningly obvious how political and financial power has been
monopolized in the US.
Looking back, the failure of the Obama Administration to live up to expectations began from his third day as
President. He described the Guatanamo Bay detention camp as a “sad chapter in American history” during
his campaign. On 23 January 2009, he signed an executive order stating the detention camp would be
closed by the end of the year. That still hasn’t happened. As President- elect, he promised troop withdrawal
from Iraq in December 2008:

“I said that I would remove our combat troops from Iraq in 16 months, with the understanding that it might
be necessary — likely to be necessary — to maintain a residual force to provide potential training, logistical
support, to protect our civilians in Iraq,”
The best case scenario now seems to be a reduction from 92,000 to 50,000 by the end of this Summer with
no sign of the latter having any chance of leaving for the foreseeable future. There are currently no less
than 75 major US military bases in the country.
The situation in Afghanistan seems to be going from bad to worse with Obama sacking the commander of
US troops, General Stanley McChrystal, last week. US troop levels in Afghanistan are still rising and the
Summer 2011 target for starting the withdrawal looks extremely optimistic. Even Britain is only hopeful
that it will be able to withdraw its troops by 2015. The word “quagmire” comes to mind.
The conflict in Afghanistan has been escalated into Pakistan with the result that it is increasingly being called
the “Afpak war”. The former adviser on counter-insurgency to General David Petraeus, David Kilcullen, was
interviewed by the FT and had this to say about US drone strikes last month:
“They have an undeniable benefit, because we have disrupted AQ [Al Qaeda] operations and damaged AQ
cells in Pakistan. But they have a negative strategic effect in that they incite Punjabi militancy, which is the
biggest problem in Pakistani right now”. Mr Kilcullen said the hit rate on drone attacks was ‘unacceptably
low’. He said the US had killed 14 mid-level or lower level al-Qaeda leaders since 2006 but the strikes had
killed 700 civilians. ‘That’s a hit rate of two per cent on 98 per cent collateral. It’s not moral’.”
In its article “The Audacity of Hoax”, the Huffington Post noted:
“Habeas Corpus Rights: The Obama administration claimed that those that are detained in the Bagram
Air Force base in Afghanistan have no habeas corpus rights, and on Friday May 21, 2010, a Circuit Court in
Washington, DC, agreed. So, what is the difference between Obama and George W. Bush, other than the
former’s hypocrisy? This is the same man who had argued against the same claim by his predecessor. All
Obama has done is transferring Bush’s policy from Guantanamo to Bagram. As Tina Foster, a lawyer for the
detainees, said, ‘The thing that is most disappointing for those of us who have been in the fight for this long
is all of the people (Obama and his team) who used to be opposed to the idea of unlimited executive power
during the Bush administration but now seem to have embraced it during this administration.”
And:
“Assassinating US Citizens: On January 27, 2010, Dana Priest of the Washington Post reported that
Obama had continued George W. Bush’s policy of having the Joint Chiefs of Staff compile “hit lists” of
American citizens. Priest suggested that the American-born Islamic cleric Anwar al-Awlaki was on that list.
Glenn Greenwald of Salon had reported the same about the same time. A week later, Dennis Blair, then
Director of National Intelligence, acknowledged in a testimony before the Congress that the administration
reserved the “right” to carry out such assassinations. Then, on April 7 the New York Times reported that
the Obama administration had authorized the CIA to kill al-Alwaki no matter where he is found or how far
he is from a battlefield. Do not get me wrong. I am all for capturing al-Awlaki, bringing him to the U.S.,
putting him on trial according to the due process of law and, if convicted, punishing him. But, assassinating
an American citizen in a foreign land, even if he is far from a battlefield, is beyond the pale.”
I’m also concerned that in recent months the US has expanded covert military action in Iran and other
countries in and around the Middle East. It seems to be an open question as to whether this is a prelude to
US military action against Iran as the New York Times reported on 24 May 2010:
“The top American commander in the Middle East has ordered a broad expansion of clandestine military
activity in an effort to disrupt militant groups or counter threats in Iran, Saudi Arabia, Somalia and other
countries in the region...The secret directive, signed in September by Gen. David H. Petraeus, authorizes
the sending of American Special Operations troops to both friendly and hostile nations in the Middle East,
Central Asia and the Horn of Africa to gather intelligence and build ties with local forces. Officials said

the order also permits reconnaissance that could pave the way for possible military strikes in Iran if
tensions over its nuclear ambitions escalate…The document, a copy of which was viewed by The New York
Times, provides few details about continuing missions or intelligence-gathering operations…The seven-
page directive appears to authorize specific operations in Iran, most likely to gather intelligence about the
country’s nuclear program or identify dissident groups that might be useful for a future military offensive.
The Obama administration insists that for the moment, it is committed to penalizing Iran for its nuclear
activities only with diplomatic and economic sanctions. Nevertheless, the Pentagon has to draw up detailed
war plans to be prepared in advance, in the event that President Obama ever authorizes a strike. “The
Defense Department can’t be caught flat-footed,” said one Pentagon official with knowledge of General
Petraeus’s order.”
We know from Jim Tucker’s feedback from Bilderberg that the chance of a military strike against Iran has
increased. We also know that arch-strategist, Henry Kissinger, sees the Obama Presidency as a “great
opportunity” to advance the new world order - on CNBC on 25 January 2009, Mark Haynes and Erin Burnett
interviewed Kissinger on the floor of the NYSE just before the Obama inauguration. He was asked what will
define the Obama Admisinstration:
“He can give a new impetus to American foreign policy, partly because the reception of him is so extraordinary
around the world. His plan will be to develop an overall strategy for America in this period when really a
new world order can be created. It’s a great opportunity.”
It’s fairly obvious that the majority of the American people, and just about every other nation in the world
(with one possible exception) will be against a military strike on Iran. The point being that if one is to take
place, there might be the requirement for a very good EXCUSE. One remembers the comment from the
report of the neoconservative Project for the New American Century (PNAC) “think tank” back in 2000
which advocated regime change in Iraq due to Saddam Hussein’s stockpile of weapons of mass destruction
– ho, ho, ho. This turned out to be a prophetic quote:
“Further, the process of transformation, even if it brings revolutionary change, is likely to be a long one,
absent some catastrophic and catalyzing event––like a new Pearl Harbor”
Since a 12-year old with a laptop and an internet connection could drive a coach and horses through the
official version of 9/11, we need to be very vigilant in the coming months for “false flag” incidents or events
which are “allowed” to happen. Comments like these given cause for concern:
David Rockefeller at the UN Ambassadors’ dinner in September 1994:
“This present window of opportunity, during which a truly peaceful and interdependent world order might
be built, will not be open for too long…We are on the verge of a global transformation. All we need is the
right major crisis and the nations will accept the New World Order.”
And Zbigniew Brzezinski from his book, “The Grand Chessboard”:
“Never before has a populist democracy attained international supremacy. But the pursuit of power is not
a goal that commands popular passion, except in conditions of a sudden threat or challenge to the public’s
sense of domestic well being.”
Remember the modus operandi - PROBLEM, REACTION, SOLUTION
And wouldn’t you know it? After nine years of “searching” using satellites which can read a postage stamp
from a geo-stationary orbit and highly trained special forces, the world’s most wanted man, Osama bin
Laden, has suddenly turned up….you’ll never guess where…in Iran…and he’s been there for ages. From wire
service report on 8 June 2010:
“Osama bin Laden’s hiding place was pinned down for the first time Monday, June 7, by the Kuwaiti
Al-Siyassa Monday, as the mountainous town of Savzevar in the northeastern Iranian province of
Khorasan, 220 km west of Mashhad. He is said to have lived there under Tehran’s protection for

the last five years, along with Ayman Al-Zawahiri and five other high-ranking al Qaeda leaders.”
How convenient and coinciding precisely with the end of this year’s Bilberberg meeting. It’s almost uncanny.
Just in case the US does launch a military strike on Iran, let’s just remind ourselves of the strategic
importance of the Straits of Hormuz. This from the US Energy Information Administration:
“Located between Oman and Iran, the Strait of Hormuz connects the Persian Gulf with the Gulf of Oman
and the Arabian Sea. Hormuz is the world’s most important oil chokepoint due to its daily oil flow of 16.5-
17 million barrels (first half 2008E), which is roughly 40 percent of all seaborne traded oil (or 20 percent
of oil traded worldwide)… At its narrowest point the Strait is 21 miles wide, and the shipping lanes consist
of two-mile wide channels for inbound and outbound tanker traffic, as well as a two-mile wide buffer zone.
The majority of oil exported through the Strait of Hormuz travels to Asia, the United States and Western
Europe. Currently, three-quarters of all Japan’s oil needs pass through this Strait. On average, 15 crude oil
tankers passed through the Strait of Hormuz daily in 2007, along with tankers carrying other petroleum
products and liquefied natural gas (LNG).”
Source: Wikipedia
Here are a couple of comments from Iranian officials about what they would do in the event of an attack.
From August 2008:
“The Revolutionary Guard commander, Mohammad Ali Jafari, spoke to Iranian reporters after testing a new
antiship missile that he said could sink “enemy ships” at a range of more than 200 miles. He said shutting
down the Strait of Hormuz would be easy.
‘Enemies know that we are easily able to block the Strait of Hormuz for an unlimited period,’ Iran’s official
news service, the Islamic Republic News Agency, quoted Major General Jafari as saying. A spokesman
yesterday for Central Command, the battle space that includes the Strait of Hormuz, said the American
military doubted the Iranians had the antiship missile they claimed to have tested. ‘We do not assess the
Iranians to have any new capabilities as mentioned by their Revolutionary Guard commander,’ Lieutenant
Commander Bill Speaks said.
And from a Reuters report on 27 April 2010:
“If America goes lunatic, the children of the nation in the Islamic Republic’s armed forces would choke
the West’s throat at the Strait of Hormuz,’ Mohammad-Nabi Habibi, secretary-general of the conservative
Islamic Coalition Party, was quoted as saying by the semi-official Fars News Agency. A former CIA Middle
East analyst and a scholar at the Brookings Institution, Kenneth Pollack, said he believed that Iran’s threats
to close the Strait of Hormuz were ‘hollow’. ‘In a no-holds-barred fight with the United States Navy and Air
Force, Iran might be able to inflict some painful losses, but its doom would be certain.’ Mr. Pollack added:
‘In the interim, Iran might be able to frighten commercial traffic away from the straits for a matter of days

or even a few weeks. It might also take down an American warship or two. However, neither would be likely
to have a lasting impact on global oil supplies or the overall military balance. And in the end, Iran’s military
capacities would be crippled.’ A recent study by a fellow at Harvard’s Olin Institute for Strategic Studies,
Caitlin Talmadge, warned that Iran could use mines as well as missiles to block the strait, and that ‘it could
take many weeks, even months, to restore the full flow of commerce, and more time still for the oil markets
to be convinced that stability had returned’.”
In an interview, Dr Mohamed ElBaradei, who was Director General of the International Atomic Energy
Agency from 1997-2009, was asked whether he thought that Iran was “playing for time” and not seeking
negotiations? He commented:
“We lost six years of failed policy frankly vis-à-vis Iran. And it’s about time now to understand that the
Iranian issue is not going to be resolved except, until and unless we sit with the Iranians and try to find a
fair and equitable solution.”
He also went on to completely rule out the risk that Iran will have access to a nuclear weapon any time
soon:
“there is absolutely no imminent threat that Iran is going to develop the bomb tomorrow from the material
that they have in Iran…There is a fear about Iran’s future intentions, which as I said can only be resolved
through negotiations and trust, but nobody is suggesting that Iran is on the brink of developing nuclear
weapons.”
Arch Crawford’s warning about a rare astrological alignment this Summer

Arch Crawford is a fascinating financial commentator who relies on technical analysis and planetary cycles.
Now I could write books on what I don’t know about astrology, but what’s interesting about Mr Crawford is
that he has won awards for successful market timing and has predicted all four of the crashes during his
career – and two which didn’t happen! In an interview with Seeking Alpha blogger, Hewitt Heiserman, he
explained how he first got interested in the subject:
“I read about it on the front page of the Wall Street Journal in 1963, while a technical market analyst at
Merrill Lynch. I was the first assistant to the legendary Robert Farrell, who was repeatedly voted best on
the Street by his peers in the annual Institutional Investor magazine poll. My curiosity piqued, I looked into
this subject and found that difficult alignments correlated with difficult markets. The correlation was too
well-defined to be chance.”
It’s worth reading the interview just to see how scarily correct many of his predictions have been. In the
latest “Crawford Perspectives” report, he comments:
“The Cardinal Climax of planetary energies maximizes on or about July 30- August 1. It will mark important
world events.”
He’s been highlighting this alignment for more than a year – here is a snippet from an interview on
Commodity Watch Radio back in May 2009:
“The really bad time that I see for markets, and people and the earth in general is the following Summer
in 2010 – some of the most massive, powerful planetary alignments that I’ve seen.”
“What type of planetary cycles are these? What is the alignment?”
“Mars is conjunct Saturn at zero Libra, opposing Uranus at zero Aries and Jupiter is there at 3 Aries exactly
squaring Pluto at 3 Capricorn. In other words it’s a massive “T” square involving five planets, five major
power planets They’re at zero degrees of the cardinal signs which means they’ll affect the whole earth.”
“I’m inferring some kind of war or something from what you’re saying there?”
“It will be massive, yes. I doubt that it will be isolated, it will be a world incident.”

Given my ignorance of the subject, the first thing I did was to verify that Arch Crawford’s claim that this is
a rare and significant planetary alignment was correct. It is. Here is Wikipedia on the subject:
“In astrology, a grand cross is said to occur when four planets are all separated from each other by square
aspects (90 degrees apart). A grand cross can also be viewed as two oppositions (180 degrees apart)
separated from each other by a square. In a grand cross, there is one planet in each astrological element
(fire, earth, air and water) but all the planets are in signs of the same modality or quality. Because all the
aspects in a grand cross are considered difficult aspects, the grand cross is seen as a source of extreme
tension… A cardinal grand cross is said to cause a particular difficulty in accomplishing goals because the
individual wants to accomplish everything at the same time: usually he/she ends up accomplishing very
little if anything. One particular example of a cardinal grand cross will occur in summer 2010 when Pluto,
Uranus and Jupiter and Saturn and Mars will be at 0-3° Capricorn, Aries and Libra, respectively, while inner
planets transit at 0-3° Cancer. This is assumed by astrologers studying mundane astrology that it shall be
a time with many great challenges and dramatic changes. This aspect resembles another grand cross that
occurred during the 1930s.”
An interesting point at the end! Back to the interview with Arch Crawford:
“Is there a chance you could be wrong?”
“Well it’s the most cataclysmic looking planetary alignment and my experience is that most of them have
had some kind of major effect on the earth. They haven’t all affected the stock market, however, and that’s
been some of my major errors where there was a pretty bad alignment, like the Challenger (space shuttle)
exploded with the astronauts on it, or Chernobyl blew up, and neither of those had much effect on the stock
market.”
It also seems that destabilizing influences, in one sense anyway, began in late-2008 – Pluto is (I’ve been
reading up on the subject!) the planet dramatic transformation. This is from starseeker.com:
“With Pluto entering Capricorn as of November 28th, 2008, we have also seen integrity issues of world
leaders, our own Federal Government leaders, as well as local governments, ponzi schemes unveiled and
corporate CEO accountability. Pluto will be in Capricorn until January 21, 2024. Expect more scandals and
unearthing of that which has been hidden from view for decades. Issues of integrity re: our governments,
and all the traditional institutions (education, law, medicine, science) will be transformed by 2024.”
Despite my scepticism, I think this is interesting – the “Tea Party Movement” in the US, for example,
emerged in February 2009. We’ve obviously seen the protests in Greece, etc. This is from mothersky.com:
“Governments, corporations and all other patriarchal hierarchies will be assiduously screened by Pluto to
ascertain their viability…The whole notion of federalism may be shaken to its very core…All Pluto wants to
do is to rid the global organism of toxins in a certain arena so that the world body as a whole can survive.”
I can think of plenty of “toxins” and continuing from the same source:
“The squaring off between common knowledge, i.e. that of The People (Uranus) and the clandestine
knowledge held by power elite groups (Pluto) will be a running theme during the peak oil period.”
This is also thought provoking from “World of wisdom.com”:
“Pluto in Capricorn is a 16 year period where government consolidates autocratic power in the name of
security. The fuel that will give governments a mandate to do this is anxiety and terror. This is why the
long and drawn-out Uranus in Aries square to Pluto from 2011 to 2115 is so potentially dangerous. People
who value their independence will rebel against this surveillance and control… When Pluto transits a sign it
leaves a swathe of destruction, but what is destroyed has often outlived its relevance. Big business elites
will not survive the Pluto transit, but will in turn be transformed. The invasive hand of government will not
be allowed to stifle individuals, or to reduce those who do not have the privilege of power to slaves in the
hierarchy. By the time Pluto enters Aquarius – in 2023 – humanitarian concerns will sweep away autocracy.”

And from About.com:
“Capricorn deals with power hierarchies… The scourge of unregulated corporate power goes to the extreme,
and Pluto’s lessons on this are designed to be undeniable. This transit enables us to see the dark truths
about corporate greed, and the destructive force that puts profit before people (and in fact, all life on Earth).
Finally from astrologyforthesoul.com before you start thinking I’ve lost my marbles:
“Throughout history, when Saturn, Pluto, and Uranus form hard alignments(1) such as a T-Square, a time
of socio-economic and political destabilization, tension, and contraction arise. Any hard alignment involving
these planets suggests a period of stress where growth and evolution is demanded yet hard to achieve. On
one hand, the alignment represents a stalemate between opposing forces, and, on the other, the alignment
represents a time where pressure, hardship, and frustration ultimately give birth to something radically
new. Out of this alignment arises a new order, where the old order disintegrates and gives rise to new
social, economic, and political visions and movements.”
Checking Martin Armstrong’s model, I can’t see anything that looks particularly worrying from my
spreadsheet of his “Economic Confidence Model” – although mine is a VERY pale shade of the one he was
working with before he was falsely imprisoned. However, in Martin’s latest report from Fort Dix prison, he
uses technical analysis and concludes that for the Dow Jones:
“the big TURNING POINT will be August…A key week appears to be the week of August 2nd.”
That said, three of Stephen Puetz’s short-term cycles peak on 7 August 2010 – the 258.11 day cycle, 86.04
day cycle and the very short-term 28.68 day cycle – you may or may not remember I wrote about Stephen
Puetz’s work and his book “The Unified Cycle Theory” last year.
While Martin Armstrong has his core 8.6 year Economic Confidence Model, Stephen Puetz has a 6.36 year
economic fluctuation/recession cycle. While they might seem very different at first sight, there is some
similarity at their core. Before looking into them in more detail, it’s worth just noting when each of them
predicted the peak in the current economic cycle:
BB Armstrong’s 8.6 year cycle peaked on 27 February 2007; and
BB Puetz’s 6.36 year cycle peaked on 24 January 2007.
So they predicted a peak in the cycle within a month of each other. The emergence of the sub-prime crisis
arguably surfaced with the announcement by HSBC on 7 February 2007, i.e. slap bang between the two, of
an earnings shortfall in its US subsidiary due to rising delinquency trends in sub-prime mortgages. Looking
at Armstrong and Puetz’s cycles in a little more detail:
- Armstrong’s 8.6 year cycle is composed of 4 x 2.15 year cycles, Puetz’s 6.36 year cycle is composed of
3 x 2.12 year cycles, i.e. they identify a shorter term “building block cycle”, if you like (my term), which is
only 1.4% different in both cases.
There is fascinating stuff in Puetz’s book on how geomagnetic changes influence behaviour and financial
markets. I noted in a previous Thunder Road how several financial panics have corresponded with peaks
in sunspot activity. Maybe the “astro-technical” analysis of Arch Crawford has some overlap with Stephen
Puetz’s work.
Decoding Stanley Kubrick’s Eyes Wide Shut

The movie was directed, produced and co-written by Stanley Kubrick. It was released 12 years after his
previous film, Full Metal Jacket, and was Kubrick’s last film before he died in 1999. What is fascinating about
a number of Kubrick films, certainly three of them and possibly more, is that the film you are watching is
not the only story he is telling – there is ANOTHER STORY being told in parallel. The “hidden” story is being
told in a variety of subtle ways – everything from clues in the dialogue, street signs, shop names, interior

decorations, books on shelves, costumes, clever use of cinematography, the characters’ names…in fact
you name it! He reportedly filmed the same scene in Eyes Wide Shut, with Tom Cruise walking through a
doorway, more than 70 times until he was satisfied. The attention to detail is incredible.
Source: Amazon
Let’s take “2001: A Space Odyssey”, for example, and I’m not aware that anyone else (apart from any of
Kubrick’s insiders, if they exist) has noticed this. Anyway, there’s a bit where Dr Heywood R. Floyd stops
off at Space Station V on his way to Clavius, the US base on the moon, where the mysterious monolith has
been found. Floyd stops to chat with a group of Russian scientists and is asked to “clear up the great big
mystery” about what is really happening on Clavius. Floyd initially denies any knowledge that something
unusual is going on. When pressed about the “very reliable intelligence reports that quite a serious epidemic
has broken out at Clavius”, he apologises and explains that he is “not at liberty to discuss this”.
When Floyd gets to Clavius, he attends a meeting in which there are TWELVE ATTENDEES including himself.
Floyd congratulates them on their discovery which “may well prove to be among the most significant in the
history of science”. Floyd then discusses the “cover story”, i.e. creating the impression that an epidemic had
broken out on the base. Then he gets to the crux of why the powers that be deem it necessary to mislead
the public about the discovery of an alien artefact:
“Now I’m sure you’re all aware of the extremely grave potential for cultural shock and social disorientation
contained in this present situation if the facts were prematurely and suddenly made public without adequate
preparation and CONDITIONING.” (my emphasis).
What I’m certain that Kubrick is alluding to here is the “Majestic” organisation which is believed to have
been set up after the Roswell crash. This group is often known as “Majestic 12” or “MJ-12” after the number
of participants. In the affidavits on his Eagles Disobey website, the scientist, Dr. Dan Burisch, claims that he
was a member of MJ-12 when it was replaced in 2005 - and that other members included Henry Kissinger,
Zbigniew Brzezinski, Dick Cheney and Alan Greenspan. You can see interviews with Dan Burisch on the
Project Camelot website and see you what you think..
Back to Stanley Kubrick and Martin Scorcese implied that there might be more to Kubrick’s films than
initially meets the eye when he wrote:
“When Eyes Wide Shut came out a few months after Stanley Kubrick’s death in 1999, it was severely
misunderstood, which came as no surprise. If you go back and look at the contemporary reactions to any
Kubrick picture (except the earliest ones), you’ll see that all his films were initially misunderstood. Then,

after five or ten years came the realization that 2001, or Barry Lyndon or The Shining was like nothing else
before or since.”
Whether Scorcese really “gets” 2001 or Eyes Wide Shut, I don’t know, but a person who does is “Kentroversry”
of “The Kentroversry Papers” blog. He wrote:
“I have shown EWS to various people in my life, and each and every one of them was left scratching their
heads, that is, until I explained the symbolism behind the film. Once this symbolism is understood, only
then does the film begin to make sense.”
In brief, what Kentroversry explains that in Eyes Wide Shut the story behind the story being told by Kubrick
is about VERY powerful people and the occult. If you’ve not seen it, the movie takes place in New York
City (mainly) and just outside it (when Tom Cruise journeys out to the home of a very powerful person).
However, Kubrick shot most of the New York street scenes in specially created sets at Pinewood Studios in
the UK.
Once I knew what to look for, I went back and watched Eyes Wide Shut again and found more examples
which support Kentroversy’s thesis. Here are some of them:
In the opening scene, Nicole Kidman gets undressed directly beneath the pointed arch formed by the red
curtains in her dressing room – symbolising that some very old knowledge is going to be revealed. The
use of the pointed arch in western architecture is believed to have been brought back from the Middle
East during the Crusades. This saw the coming together of eastern and western religious traditions in a
spirituality and philosophy that was viewed as heretical by the traditional Roman Catholic church. In the
corner of the dressing room are two tennis rackets. Most historians believe that tennis originated in France
in the 12th century. I think this is also a reference to the incorporation of the pointed arch in the great
Gothic cathedrals of France which were built at this time. If you consider the colours in this scene, they are
red (the curtains), white (the walls, the blinds, the carpet and Ms Kidman’s skin) and black (Ms. Kidman’s
dress and shoes). These are occult colours which, in the order of black to white to red, symbolise alchemical
transformation (as mentioned in a previous TRR about the Lady Gaga video for “Bad Romance”). You can
also see that there are four pillars, two pairs of two columns on each side of the dressing room. I think
these are the “four pillars of gnosis” – art, philosophy, science and religion/mysticism. Carl Gustav Jung
believed that medieval alchemy was the link back to the gnostics of early Christianity (wiped out by the
Church) and ancient times.
This one came to me in a blinding flash one morning last week. Ms. Kidman (whose character is called
“Alice”) is washing her hands in the bathroom and checking her appearance one last time in the mirror
before leaving for the party (i.e. before she goes “through the looking glass”). She asks Cruise:
“Did you give Roz the phone and pager numbers?”
Who replies:
“Yeah, I put it on the fridge, let’s go huh?”
Despite his wife’s comment, Cruise asks Kidman fifteen seconds later as they walk through the hallway
of their apartment towards the living room:
“What’s the name of the babysitter?”
She almost whispers
“Roz.”
And on entering the living room she addresses Roz:
“Okay Roz, we’re going now.”

That’s a lot of “Roz’s” in about 20 seconds. What Kubrick is saying here is that Roz is looking after Cruise
and Kidman’s child….get it? Roz and child = Roz child = Rothschild. Despite fading into the background,
Kubrick seems to be implying that this banking family is still very powerful.
When Cruise and Kidman arrive at the New York mansion for the party, they are greeted by the hosts, Victor
Ziegler and his wife. Ziegler is extremely wealthy and Cruise/Kidman are only invited because Cruise is
Ziegler’s doctor. They quickly realise that they don’t know anybody else. If you look behind the two couples
greeting each other, you can see an entire wall covered with white lights stretching up the staircase. The
ball room is also full of white lights. I think the reference that Kubrick is making here is to Alice Bailey’s
“thousand points of light” in her book, “The Externalization of the Hierarchy”.
“The new group of world servers believes that (through the agency of goodwill) the new world order can
be established on earth”
With this knowledge, it is fascinating to review the speeches of former President George H.W. Bush. This is
from the Republican National Convention on 18 August 1988 (the “no new taxes” speech):
“This is America: the Knights of Columbus, the Grange, Hadassah, the Disabled American Veterans, the
Order of Ahepa, the Business and Professional Women of America, the union hall, the Bible study group,
LULAC, ‘Holy Name’ - a brilliant diversity spread like stars, like a thousand points of light in a broad and
peaceful sky…The fact is prosperity has a purpose. It is to allow us to pursue ‘the better angels’, to give us
time to think and grow… I will keep America moving forward, always forward - for a better America, for an
endless enduring dream and a thousand points of light.”
Besides the TWO occult references to a “thousand points of light”, the obvious question is who are “the
better angels”? Different people have different views, could it even be the “fallen angel”, Lucifer (the “light-
bearer”), or a different one? Ironically, Alice Bailey formed the Lucifer Publishing Company in 1920, which
was changed to the Lucis Trust two years later. This is from Wikipedia:
“The World Goodwill group, founded in 1932, is particularly important among Lucis Trust’s activities, as it
has been recognized by the United Nations as a Non-Governmental Organization (NGO), and is represented
at regular briefing sessions at the United Nations in New York and Geneva. Lucis Trust is therefore a
member of the United Nations Economic and Social Council.”
From H.W. Bush’s inaugural address 20 January 1989:
“I have spoken of a Thousand Points of Light, of all the community organizations that are spread like stars
throughout the Nation, doing good.”
This is from an address to the nation about the invasion of Iraq on 16 January 1991:
“This is an historic moment. We have in this past year made great progress in ending the long era of conflict
and cold war. We have before us the opportunity to forge for ourselves and for future generations a new
world order—a world where the rule of law, not the law of the jungle, governs the conduct of nations. When
we are successful—and we will be—we have a real chance at this new world order, an order in which a
credible United Nations can use its peacekeeping role to fulfill the promise and vision of the UN’s founders.”
This is from a speech to a Joint Session of Congress on 6 March 1991:
“Now, we can see a new world coming into view…Tonight, as our troops begin to come home, let us
recognize that the hard work of freedom still calls us forward. We’ve learned the hard lessons of history.
The victory over Iraq was not waged as ‘a war to end all wars’. Even the new world order cannot guarantee
an era of perpetual peace. But enduring peace must be our mission. Our success in the Gulf will shape not
only the new world order we seek but our mission here at home.”
- After literally being unmasked as an impostor at the (how shall we describe it?), ritualistic masked
ball, Cruise drives back to the mansion where it took place the next day. While on the freeway, he drives
underneath a road sign with “Glen Cove Road North – Glen Cove 2/10 Mile”. Glen Cove is in Nassau

County, New York, on the northern shore of Long Island. Glen Cove is famous for being home to wealthy
bankers and industrialists like J.P. Morgan and Charles Pratt, whose large oil refining business became part
of Standard Oil. And, coincidently I’m sure (!), the 1990 Bilderberg meeting was held at the Glen Cove
Mansion Hotel from 11-13 May that year.
Cruise gets out of his car and walks up to the gates. With the sinister music kicking in, he looks up and
watches a surveillance camera pan around until it locks on to him. By now, the viewer is watching the scene
from behind the heavy iron gates of the mansion. Cruise (like the rest of us) might be on the outside of
those gates, but Kubrick is scolding us for being the prisoners of some of the people who live inside these
enormous mansions. How cheery. An elderly white gentleman (probably a butler) drives up in a Rolls Royce
and passes an envelope through the gates to Cruise before driving off. The message is typed on plain white
paper:
“Give up your enquiries which are completely useless, and consider these words a second warning. We
hope, for your own good, that this will be sufficient.”
A bit later in the movie, Cruise is given a dressing down by Victor Ziegler, the host of the drinks party which
he and Kidman attended at the beginning of the movie. Ziegler confesses that he was at the masked ball
and knows what’s happened since.
“Listen Bill, I don’t think you realize what kind of trouble you were in last night. Who do you think those
people were? Those were not just ordinary people. If I told you their names, I’m not going to tell you their
names, but if I did, I don’t think you’d sleep so well.”
The author, Jay Weidner, argues that Eyes Wide Shut is really a flawed masterpiece because, in his view,
some parts were cut out in the period between Kubrick’s death and the film’s release:
“There are incredible continuity breaks at certain points in ‘Eyes Wide Shut,’ which are impossible for a
man of Stanley Kubrick’s discipline to have allowed. I can’t really tell you what happened in between these
continuity errors, but there is something cut out. That happens several times in the movie. From those
continuity error breaks we can tell that something has changed. It’s not left the way Stanley would have
wanted it, but I can’t go beyond that because Warner Brothers won’t release the director’s cut, the final cut
by Kubrick, which I think he deserves. I mean, my goodness, it’s his last film. They release Ridley Scott’s
director cuts; they release Steven Spielberg’s director cuts. Why can’t they release the director’s cut of
“Eyes Wide Shut”? But they’re not, and we can’t hope for that anymore.”

Author: I started work the month before the stock market crash in 1987. I’ve worked mainly as an analyst
covering the Metals & Mining, Oil & Gas and Chemicals industries for a number of brokers and banks
including S.G. Warburg (now UBS), Credit Lyonnais, JP Morgan Chase, Schroders (became Citibank) and,
latterly, at the soon to be mighty Redburn Partners.
Disclaimer: The views expressed in this report are my own and are for information only. It is not intended
as an offer, invitation, or solicitation to buy or sell any of the securities or assets described herein. I do not
accept any liability whatsoever for any direct or consequential loss arising from the use of this document or
its contents. Please consult a qualified financial advisor before making investments. The information in this
report is believed to be reliable , but I do not make any representations as to its accuracy or completeness.
I may have long or short positions in companies mentioned in this report.

DEFCON 2: TRR Moves Closer To A "War Footing" On Iran Concerns - Buying Oils

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report

28th June 2010

Gold and the Euro - rumblings

Feedback from the secretive

The former is defensive, i.e. it represents insurance

Buying oil exposure

BB The feedback from the recent Bilderberg meeting outside

Buying rare earths exposure

© Thunder Road Report - 28 June 2010 2

Source: Yahoo Finance

Wikipedia defines rare earth elements/metals as:

Demand for rare earths in 2010

End uses % of demand Use by region % of demand

© Thunder Road Report - 28 June 2010 3

© Thunder Road Report - 28 June 2010 4

Source: Lynas Corporation

The three key points to note are:

I have bought shares in two rare earth plays:

© Thunder Road Report - 28 June 2010 5

Gold and the Euro – rumblings of economic discontent

BB The BP Deepwater Horizon oil disaster (20 April 2010);

BB Recent peak of 1,217 in the S&P500 (23 April 2010);

BB European US$1 trn bailout (10 May 2010); and

As my former colleague at JPM, Sumer D., said to me over lunch:

“Armstrong is THE MAN”

He nails what is happening on the global movement of capital as it seeks security:

© Thunder Road Report - 28 June 2010 6

© Thunder Road Report - 28 June 2010 7

For starters, the Lex writer would benefit from studying:

There was more:

© Thunder Road Report - 28 June 2010 8

© Thunder Road Report - 28 June 2010 9

A curious quote from David Rockefeller:

- How power is exercised in the western world;

Martin Armstrong wrote earlier this month:

Bill Murphy noted that Chris Powell:

But I have to disagree with Bill on this:

“At one point MA was considered a guru…”

© Thunder Road Report - 28 June 2010 10

“confront speculators mercilessly.”

And that they would soon:

“Come and have a go if you think you’re hard enough”

© Thunder Road Report - 28 June 2010 11

Zbignew Brzezinski, former National Security Advisor to Jimmy Carter

Which can be thought of in terms of the following anonymous quote:

Feedback from the secretive Trilateral Commission and Bilderberg meetings

© Thunder Road Report - 28 June 2010 12

Grigory Ysvlinsky – Chairman of the Russian Democratic Party

Morris Chang – Chairman of Taiwan Semiconductor

Sir Deryck Maughan – KKR

Henry Kissinger – Chairman of Kissinger Associates, former US Secretary of State

John J. Hamre – President Center for Strategic and International Studies

Richard Haas – President Council on Foreign Relations

Stanley Fischer – Governor of the Bank of Israel

Martin S. Feldstein – US President’s Economic Recovery Advisory Board

E. Gerald Corrigan – Managing Director Goldman Sachs, former President FRBNY

David Brooks – New York Times

Alan R. Batkin – Vice Chairman Eton Park Capital

Alexander Wilmot-Sitwell, Co-CEO UBS Investment Bank London

Loukas Tsoualis – Special Adviser to President of European Commission

Miihai Tanasescu – Member of the Executive Board IMF

Peter Sutherland – Chairman Goldman Sachs International, former Chairman BP