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U.S. Senator DeMint: 94% of bills passed secretly with no debate, no vote
(Must View)
(This is from Robert, thanks for sharing this with us!)

Senator Jim DeMint discusses secret bills/secret holes. 94% of the bills are passed without debate, without amendments, without reading, without online disclosures, and often without cost estimate from the Congressional Budget Office (CBO).

I may not be the sharpest pencil in the box, but that sounds like we are living in a full blown communist dictatorship, American style. Granted a somewhat benign dictatorship, as the government has yet to attempt to round up dissidents en- masse and place them into gulags, but a communist dictatorship none the less.

The expulsion and herding of impoverished Mexicans into the U.S. in order to create a intractable social, economic and racial problem that distracts the target population, in this case the established multi-generational citizens, divides them along political and ideological lines, and mitigates and/or disrupts any potential political opposition to the establishment of a communist dictatorship.

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America’s Complicity in Evil
by Paul Craig Roberts , June 03, 2010

As I write at 5pm on Monday, May 31, all day has passed since the early morning reports of the Israeli commando attack on the unarmed ships carrying humanitarian aid to Gaza, and there has been no response from President Obama except to say that he needed to learn "all the facts about this morning’s tragic events" and that Israeli prime minister Netanyahu had canceled his plans to meet with him at the White House.

Thus has Obama made America complicit once again in Israel’s barbaric war crimes.

Just as the US Congress voted to deep-six Judge Goldstone’s report on Israel’s war crimes committed in Israel’s January 2009 invasion of Gaza, Obama has deep-sixed Israel’s latest act of barbarism by pretending that he doesn’t know what has happened.

No one in the world will believe that Israel attacked ships in international waters carrying Israeli citizens, a Nobel Laureate, elected politicians, and noted humanitarians bringing medicines and building materials to Palestinians in Gaza, who have been living in the rubble of their homes without repairs or medicines since January 2009, without first clearing the crime with its American protector. Without America’s protection, Israel, a totally artificial state, could not exist.

No one in the world will believe that America’s spy apparatus did not detect the movement of the Israeli attack force toward the aid ships in international waters in an act of piracy, killing 20, wounding 50, and kidnapping the rest.

Obama’s pretense at ignorance confirms his complicity.

Once again, the US government has permitted the Israeli state to murder good people known for their moral conscience. The Israeli state has declared that anyone with a moral conscience is an enemy of Israel, and every American president except Eisenhower and Carter has agreed.

Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University. He was awarded the Legion of Honor by French President Francois Mitterrand.

Obama’s 12-hour silence in the face of extreme barbarity is his signal to the controlled corporate media to remain on the sidelines until Israeli propaganda sets the story.

The Israeli story, preposterous as always, is that the humanitarians on one of the ships took two pistols from Israeli commandos, highly trained troops armed with automatic weapons, and fired on the attack force. The Israeli government claims that the commandos’ response (70 casualties at last reporting) was justified self-defense. Israel was innocent. Israel did not do anything except drop commandos aboard from helicopters in order to intercept an arms shipment to Gazans being brought in by ships manned by terrorists.

Many Christian evangelicals, brainwashed by their pastors that it is God’s will for Americans to protect Israel, will believe the Israeli story, especially when it is unlikely they will ever hear any other. Conservative Americans, especially on Memorial Day when they are celebrating feats of American arms, will admire Israel for its toughness.

Here in north Georgia, where I am at the moment, I have heard several say, admiringly, "Them Israelis, they don’t put up with nuthin’."

Conservative Americans want the US to be like Israel. They do not understand why the US doesn’t stop pissing around after nine years and just go ahead and defeat the Taliban in Afghanistan. They don’t understand why the US didn’t defeat whoever was opposing American forces in Iraq. Conservatives are incensed that America had to "win" the war by buying off the Iraqis and putting them on the US payroll.

Israel murders people and then blames its victims. This appeals to American conservatives, who want the US to do the same.

It is likely that Americans will accept Israeli propagandist Mark Regev’s story that Israelis were met by deadly fire when they tried to intercept an arms shipment to Palestinian terrorists from IHH, a radical Turkish Islamist organization hiding under the cover of humanitarian aid. This explanation is crafted to allow Americans to sink back into their stupor.

Americans will never hear from the US media that Turkey’s prime minister Erdogan declared that the aid ships were carefully inspected before departure from Turkey and that there were no terrorists or arms aboard:

"I want to say to the world, to the heads of state and the governments, that these boats that left from Turkey and other countries were checked in a strict way under the framework of the rules of international navigation and were only loaded with humanitarian aid."

Turkey is a US ally, a member of NATO. Turkey’s cooperation is important to American’s plan for world hegemony. Turkey now realizes that the Israeli state is comprised of total evil. Erdogan must wonder about the morality of Israel’s American protector. According to a report in Antiwar.com, the Turkish government declared that "future aid ships will be dispatched with a military escort so as to prevent future Israeli attacks."

Will the CIA assassinate Erdogan or pay the Turkish military to overthrow him?

Murat Mercan, head of Turkey’s foreign relations committee, said that Israel’s claim that there were terrorists aboard the aid ships was Israel’s way of covering up its crime. Mercan declared:

"Any allegation that the members of this ship is attached to al-Qaeda is a big lie because there are Israeli civilians, Israeli authorities, Israeli parliamentarians on board the ship."

The criminal Israeli state does not deny its act of piracy. Israeli military spokeswoman Avital Leibovich confirmed that the attack took place in international waters: "This happened in waters outside of Israeli territory, but we have the right to defend ourselves."

Americans, and their Western European puppet states and the puppet state in Canada, will be persuaded by the servile media to buy the story fabricated by Israeli propaganda that the humanitarian aid ships were manned by terrorists bringing weapons to the Palestinians in Gaza, and that the terrorists posing as humanitarians attacked the force of Israeli commandos with two pistols, clubs, and knives.

The ignorant Americans will swallow this story without a hiccup.

Videos below related to article above:

Obama Helps Obstruct Israel Investigation (Article)

US Citizen Executed In Israeli Flotilla Raid?

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Long Gun Registration One Step Closer to Law
(Thanks to Ben for sharing this info with us.)

Another blatant attack on the self-defense rights

Long Gun Registration One Step Closer to Law On Thursday, June 3, the California Assembly passed Assembly Bill 1810 and Assembly Bill 2223. Both bills now join Assembly Bill 1934 in the Senate. AB1810 would establish a registration system, similar to the one currently in place for handguns, for all newly-acquired long guns. AB2223 would outlaw the use of lead shot when shooting or hunting in state-run wildlife management areas. Simply put, AB1934 is a blatant attack on the self-defense rights of law-abiding Californians and would outlaw he open carrying of a handgun for self-defense. These bills are very serious threats to the rights of California's law-abiding gun owners and must be defeated. Please contact your State Senator NOW and urge them to oppose AB1810, AB2223, and AB1934. Contact information can be found by clicking here .

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Wayne Madsen: Japan real target of Korea attack

Was the destruction of the South Korean warship Cheonan a provocation? Can it be compared to the Gulf of Tonkin? RT contributor Wayne Madsen says that the sinking of the warship was really intended to convince Japan not to move US forces off Okinawa as well as divert the attention of Americans from the dire economic situation at home.

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The "Vaccine Shock" of the Year
Dr. Mercola

Barbara Loe Fisher is the founder of the National Vaccine Information Center, www.NVIC.org, which is, unquestionably, the best resource for vaccine safety and efficacy information on the Internet.

If you need to make a decision about whether or not the risk benefit ratio of a specific vaccine is appropriate for you or someone in your family, this is the go to site you need to review before you make your decision. It will provide you with loads of objective unbiased information that you simply will not get from the media, the CDC or your doctor.

In this interview, we discuss her participation in the May 7th FDA Vaccine Advisory committee, which focused on the rotavirus vaccine and the newfound issues of broad contamination with two different types of pig viruses.

This meeting produced amazing revelations that have profound and important implications for the whole concept of vaccination and vaccine safety that you need to know about.

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Ten Things You Need (But Don't Want) To Know About the BP Oil Spill

by Daniela Perdomo
globalresearch

How the owner of the exploded oil rig has made $270 million off the disaster, and nine other shocking, depressing facts about the oil spill.

It's been 37 days since BP's offshore oil rig, Deepwater

Horizon, exploded in the Gulf of Mexico. Since then, crude oil has been hemorrhaging into ocean waters and wreaking unknown havoc on our ecosystem -- unknown because there is no accurate estimate of how many barrels of oil are contaminating the Gulf. 

Though BP officially admits to only a few thousand barrels spilled each day, expert estimates peg the damage at 60,000 barrels or over 2.5 million gallons daily. (Perhaps we'd know more if BP hadn't barred independent engineers from inspecting the breach.) Measures to quell the gusher have proved lackluster at best, and unlike the country's last big oil spill -- Exxon-Valdez in 1989 -- the oil is coming from the ground, not a tanker, so we have no idea how much more oil could continue to pollute the Gulf's waters.

The Deepwater Horizon disaster reminds us what can happen -- and will continue to happen -- when corporate malfeasance and neglect meet governmental regulatory failure. 

The corporate media is tracking the disaster with front-page articles and nightly news headlines every day (if it bleeds, or spills, it leads!), but the under-reported aspects to this nightmarish tale paint the most chilling picture of the actors and actions behind the catastrophe. In no particular order, here are 10 things about the BP spill you may not know and may not want to know -- but you should.

1. Oil rig owner has made $270 million off the oil leak

Transocean Ltd., the owner of the Deepwater Horizon rig leased by BP, has been flying under the radar in the mainstream blame game. The world's largest offshore drilling contractor, the company is conveniently headquartered in corporate-friendly Switzerland, and it's no stranger to oil disasters. In 1979, an oil well it was drilling in the very same Gulf of Mexico ignited, sending the drill platform into the sea and causing one of the largest oil spills by the time it was capped... nine months later.

This experience undoubtedly influenced Transocean's decision to insure theDeepwater Horizon rig for about twice what it was worth. In a conference call to analysts earlier this month, Transocean reported making a $270 million profit from insurance payouts after the disaster. It's not hard to bet on failure when you know it's somewhat assured.

2. BP has a terrible safety record

BP has a long record of oil-related disasters in the United States. In 2005, BP's Texas City refineryexploded, killing 15 workers and injuring another 170. The next year, one of its Alaska pipelines leaked 200,000 gallons of crude oil. According to Public Citizen, BP has paid $550 million in fines. BP seems to particularly enjoy violating the Clean Air and Clean Water Acts, and has paid the two largest fines in the Occupational Safety and Health Administration's history. (Is it any surprise that BP played a central, though greatly under-reported, role in the failure to contain the Exxon-Valdez spill years earlier?)

With Deepwater Horizon, BP didn't break its dismal trend. In addition to choosing a cheaper -- and less safe -- casing to outfit the well that eventually burst, the company chose not to equip Deepwater Horizon with an acoustic trigger, a last-resort option that could have shut down the well even if it was damaged badly, and which is required in most developed countries that allow offshore drilling. In fact, BP employs these devices in its rigs located near England, but because the United States recommends rather than requires them, BP had no incentive to buy one -- even though they only cost $500,000. 

SeizeBP.org estimates that BP makes $500,000 in under eight minutes.

3. Oil spills are just a cost of doing business for BP

According to the Harte Research Institute for Gulf of Mexico Studies, approximately $1.6 billion in annual economic activity and services are at risk as a result of the Deepwater Horizon disaster. Compare this number -- which doesn't include the immeasurable environmental damages -- to the current cap on BP's liability for economic damages like lost wages and tourist dollars, which is $75 million. And compare that further to the first-quarter profits BP posted just one week after the explosion: $6 billion.

BP's chief executive, Tony Hayward, has solemnly promised that the company will cover more than the required $75 million. On May 10, BP announced it had already spent $350 million. How fantastically generous of a company valued at $152.6 billion, and which makes $93 million each day.

The reality of the matter is that BP will not be deterred by the liability cap and pity payments doled out to a handful of victims of this disaster because they pale in comparison to its ghastly profits. Indeed, oil spills are just a cost of doing business for BP.

This is especially evident in a recent Citigroup analyst report prepared for BP investors: "Reaction to the Gulf of Mexico oil leak is a buying opportunity."

4. The Interior Department was at best, neglectful, and at worst, complicit

It's no surprise BP is always looking out for its bottom line -- but it's at least slightly more surprising that the Interior Department, the executive department charged with regulating the oil industry, has done such a shoddy job of preventing this from happening.

Ten years ago, there were already warnings that the backup systems on oil rigs that failed on Deepwater Horizon would be a problem. The Interior Department issued a "safety alert" but then left it up to oil companies to decide what kind of backup system to use. And in 2007, a government regulator from the same department downplayed the chances and impact of a spill like the one that occurred last month: "[B]lowouts are rare events and of short duration, potential impact to marine water quality are not expected to be significant."

The Interior Department's Louisiana branch may have been particularly confused because it appears it was closely fraternizing with the oil industry. The Minerals Management Service, the agency within the department that oversees offshore drilling, routinely accepted gifts from oil companies and even considered itself a part of the oil industry, rather than part of a governmental regulatory agency. Flying on oil executives' private planes was not rare for MMS inspectors in Louisiana, a federal report released Tuesday says. "Skeet-shooting contests, hunting and fishing trips, golf tournaments, crawfish boils, and Christmas parties" were also common.

Is it any wonder that Deepwater Horizon was given a regulatory exclusion by MMS?

It gets worse. Since April 20, when the Deepwater Horizon oil rig exploded, the Interior Department has approved 27 new permits for offshore drilling sites. Here's the kicker: Two of these permits are for BP. 

But it gets better still: 26 of the 27 new drilling sites have been granted regulatory exemptions, including those issued to BP.

5. Clean-up prospects are dismal

The media makes a lot of noise about all the different methods BP is using to clean up the oil spill. Massive steel containment domes were popular a few weeks ago. Now everyone is touting the "top kill" method, which involves injecting heavy drilling fluids into the damaged well. 

But here's the reality. Even if BP eventually finds a method that works, experts say the best cleanup scenario is to recover 20 percent of the spilled oil. And let's be realistic: only 8 percent of the crude oil deposited in the ocean and coastlines off Alaska was recovered in the Exxon-Valdez cleanup.

Millions of gallons of oil will remain in the ocean, ravaging the underwater ecosystem, and 100 miles of Louisiana coastline will never be the same.

6. BP has no real cleanup plan

Perhaps because it knows the possibility of remedying the situation is practically impossible, BP has made publicly available its laughable "Oil Spill Response Plan" which is, in fact, no plan at all.

Most emblematic of this farcical plan, BP mentions protecting Arctic wildlife like sea lions, otters and walruses (perhaps executives simply lifted the language from Exxon's plan for its oil spill off the coast of Alaska?). The plan does not include any disease-preventing measures, oceanic or meteorological data, and is comprised mostly of phone numbers and blank forms. Most importantly, it includes no directions for how to deal with a deep-water explosion such as the one that took place last month.

The whole thing totals 600 pages -- a waste of paper that only adds insult to the environmental injury BP is inflicting upon the world with Deepwater Horizon.

7. Both Transocean and BP are trying to take away survivors' right to sue

With each hour, the economic damage caused by Deepwater Horizon continues to grow. And BP knows this.

So while it outwardly is putting on a nice face, even pledging $500 million to assess the impacts of the spill, it has all the while been trying to ensure that it won't be held liable for those same impacts.

Just after the Deepwater explosion, surviving employees were held in solitary confinement, while Transocean flacks made them waive their rights to sue. BP then did the same with fishermen it contracted to help clean up the spill though the company now says that was nothing more than a legal mix-up.

If there's anything to learn from this disaster, it's that companies like BP don't make mistakes at the expense of others. They are exceedingly deliberate.

8. BP bets on risk to employees to save money -- and doesn't care if they get sick

When BP unleashed its "Beyond Petroleum" re-branding/greenwashing campaign, the snazzy ads featured smiley oil rig workers. But the truth of the matter is that BP consistently and knowingly puts its employees at risk.

An internal BP document shows that just before the prior fatal disaster -- the 2005 Texas City explosion that killed 15 workers and injured 170 -- when BP had to choose between cost-savings and greater safety, it went with its bottom line.

BP Risk Management memo showed that although steel trailers would be safer in the case of an explosion, the company went with less expensive options that offered protection but were not "blast resistant." In the Texas City blast, all of the fatalities and most of the injuries occurred in or around these trailers.

Although BP has responded to this memo by saying the company culture has changed since Texas City, 11 people died on the Deepwater Horizon when it blew up. Perhaps a similar memo went out regarding safety and cost-cutting measures?

Reports this week stated that fishermen hired by BP for oil cleanup weren't provided protective equipment and have now fallen ill. Hopefully they didn't sign waivers.

9. Environmental damage could even include a climatological catastrophe

It's hard to know where to start discussing the environmental damage caused byDeepwater Horizon. Each day will give us a clearer picture of the short-term ecological destruction, but environmental experts believe the damage to the Gulf of Mexico will be long-term.

In the short-term, environmentalists are up in arms about the dispersants being used to clean up the oil slick in the Gulf. Apparently, the types BP is using aren't all that effective in dispersing oil, and are pretty high in toxicity to marine fauna such as fish and shrimp. The fear is that what BP may be using to clean up the mess could, in the long-term, make it worse.

On the longer-term side of things, there are signs that this largest oil drilling catastrophe could also become the worst natural gas and climate disaster. The explosion has released tremendous amounts of methane from deep in the ocean, and research shows that methane, when mixed with air, is the most powerful (read: terrible) greenhouse gas -- 26 times worse than carbon-dioxide.

Our warming planet just got a lot hotter.

10. No one knows what to do and it will happen again

The very worst part about the Deepwater Horizon calamity is that nobody knows what to do. We don't know how bad it really is because we can't measure what's going on. We don't know how to stop it -- and once we do, we won't know how to clean it up. 

BP is at the helm of the recovery process, but given its corporate track record, its efforts will only go so far -- it has a board of directors and shareholders to answer to, after all. The U.S. government, the only other entity that could take over is currently content to let BP hack away at the problem. Why? Because it probably has no idea what to do either.

Here's the reality of the matter -- for as long as offshore drilling is legal, oil spills will happen. Coastlines will be decimated, oceans destroyed, economies ruined, lives lost. Oil companies have little to no incentive to prevent such disasters from happening, and they use their money to buy government regulators' integrity.

Deepwater Horizon is not an anomaly -- it's the norm.

Daniela Perdomo is a staff writer and editor at AlterNet. Follow Daniela on Twitter. Write her at danielaalternet [at] gmail [dot] com.

BP isnt the only one... watch this video!

The Case Against Shell: 'The Hanging of Ken Saro-Wiwa Showed the True Cost of Oil'

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Where White Man Went Wrong

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Raid at Eagle Rock; Two campers arrested, camp destroyed
Republic Of Lakotah

Dozens of heavily armed Police and State Troopers have raided the peaceful defenders camp at Eagle Rock in Michigan’s Upper Peninsula; “crushing” the month-long effort to protect the sacred site from a controversial sulfide mine. Greg Peterson Reports.

BIG BAY, Mich. – The defenders of sacred Eagle Rock sat in a circle and wept as they were surrounded by dozens of heavily armed state and local police officers who raided the Eagle Rock encampment the morning of May 27 arresting two campers at the request of Kennecott Eagle Minerals, who wasted no time destroying the month-old camp to make way for their nickel and copper mine.

Witnesses say there were about six people at Eagle Rock when police moved in including four campers who had spent the night and two supporters who arrived with a warning the raid was imminent. Armed with high-powered rifles, Michigan State Police and mine security could be seen atop Eagle Rock scanning the vast Yellow Dog Plains with binoculars apparently looking for trespassers.

Two handcuffed campers, who refused to leave when ordered by police, were taken away by sheriff’s deputies and driven nearly one hour to the Marquette County Jail and were released on bond. Arrested were Keweenaw Bay Indian Community members Chris Chosa, 28, and Charlotte Loonsfoot, 37, both of Baraga, Mich.

Loonsfoot was one of three women who set up the encampment April 23 protesting the arrest three days earlier of environmentalist Cynthia Pryor and hoping to protect Eagle Rock from the Eagle Project nickel and copper mine. Despite federal treaties that allow Ojibwa to hunt, fish and gather on the Yellow Dog Plains, the state of Michigan leased the land to Kennecott to open a sulfide mine. The mine portal is planned near the front of Eagle Rock and the tunnel will travel underneath the rock.

“Today, we got a message in camp that police were on their way,” said non-Native camper Catherine Parker of the warning from two members of the Yellow Dog Watershed Preserve who arrived shortly before police. “Charlotte and Chris had no intention of leaving voluntarily.”

Parker said the Eagle Rock defenders wept for the land as they sat in a circle.

“There were a lot of tears and passionate remarks because the people have come to care a lot about each other out here,” said Parker of Marquette, Mich. “We have all been working together, Native Americans and whites to protect something that is tremendously important to us.”

After police arrived, “we stayed as long as we could, we kept asking to stay with our friends (Chosa and Loonsfoot),” said Parker, wiping away a tear. “We sat down with them repeatedly, we were pushed verbally numerous times by law enforcement.”

“It’s breaking my heart,” said a crying Parker as she witnessed heavy equipment roaring up the entrance to Eagle Rock. “This mine is not going to perform (safely) as they say it will. What is going to happen if the mine collapses into the Trout Salmon River?”

Police from several agencies “literally surrounded us in a big circle,” said Kalvin Hartwig, a member of the Sault Ste. Marie Tribe of Chippewa who spent the night of May 26 at Eagle Rock but was not arrested after agreeing to leave the property with his car.

When police arrived, “three of us and two visitors were down by the sacred fire and another one of our campers (Charlotte Loonsfoot) was up on the hill fasting,” Hartwig said. “I think this whole situation is pretty sad.

“The water and this land is at-risk. These people (Kennecott) are here illegally about to destroy it.”

According to the Save The Wild UP Web site, about 20 police cars were sent and warned to expect a riot that never occurred. Many supporters and the media rushed to the scene after hearing the Powell Township emergency personnel dispatched with instructions to stage at the main entrance to the mine including an ambulance and fire trucks. No injuries were reported.

Atop a pole at the entrance to the camp, a lone eagle feather fluttered in the dusty wind as heavy equipment moved in. Mine officials doused the grandfather fire, uprooted the Eagle Rock Community Garden, removed two flags from atop Eagle Rock and bulldozed the camp.

Deputies blocked the dusty, remote, seasonal Triple A Road at the mine entrance but allowed the media and campers to walk the three-quarters of a mile to the former entrance to the camp that was blocked by heavy machinery as mine employees erected a metal cyclone fence. The media was not allowed to see the remains of the encampment.

“They are putting up a fence and they are wrecking our garden we planted,” said Gabriel Caplett, who has posted daily updates about the campers activities on the Stand for the Land Blog and has written countless stories about the fight to stop the mine since it was announced in 2004. “They are putting out the sacred fire” that has burned since the first night.

There was no word on what happened to the tents and a large cache of food and other supplies donated by supporters. About 10 campers spent the night of May 25 at Eagle Rock, but several left to prepare for activities planned at the rock for Memorial Day weekend.

Two non-Native campers, not present for the raid, broke into tears while walking to Eagle Rock.

“It’s heartbreaking, it’s really disconcerting to feel the rights of the corporations have been put above and beyond the rights of the people,” said Amy Conover of Marquette, Mich. When politicians “get into power they don’t act on behalf of the people, they act on behalf of the money.”

A Detroit native attending nursing school in Marquette said she “can’t understand how hardened the hearts have become of the people who are doing this.”

“To not feel how wrong it actually is – is a very scary thing,” said Laura Nagle. “The police officer said this is a ‘bummer’ this was happening, it is not a bummer, it is a catastrophe, a tragedy and a misfortune for us all. This can still be stopped.”

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The Million Dollar Question

(From Brasscheck)

Bye Bye Euro

The US dollar is next (but not quite yet)

The economy is getting better, right?

Here are some numbers presented humorously - but accurately.

In two minutes, you'll know more about what's really going on than from reading every issue of the Wall Street Journal from cover to cover.

Do know that Rupert Murdoch owns the Wall Street Journal now in addition to owning Fox News?

We all need to get our financial news elsewhere.

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Iran To Dump 45 Billion Euros For Gold Bullion & Dollars

by Paul Joseph Watson
Prison Planet.com
Wednesday, June 2, 2010

The Central Bank of Iran is set to dump a whopping 45 billion euros in exchange for gold bullion and dollars as Gulf states also prepare to flee from the ailing single currency amidst debt turmoil in Europe that threatens to disintegrate the entire region.

According to the Iranian state website Press TV, Iran’s central bank has already begun converting its euro reserves into gold and dollars as a response to the “downward spiral” of the euro, in the first of a three phase movement to flee from the currency.

The report also claims that Gulf states are also beginning to switch their euro reserves into dollars and gold as some forecast the single currency could sink to parity with the U.S. dollar by next year.

“The new decision comes as the financial crisis that began in the US about two years ago resulted in the sharp devaluation of the dollar, pushing the Iranian government to order the replacement of the greenback with the euro in the country’s foreign exchange accounts,” adds the report.

This is all a far cry from the days when businesses in New York accepted payments in euros as the currency reigned supreme over the beaten up U.S. dollar.

The European Central Bank has blatantly been manipulating currency markets over recent days in an effort to rescue the euro, which has been in free fall.

Sinking to as low as $1.2111 yesterday, the euro staged a rapid and dramatic recovery against the dollar, soaring back to 1.2339, an intraday move of 250 pips and a transparent intervention that had “all the grace of a drunk Keynesian at an Austrian economists meeting,” reports Zero Hedge.

But while central bank interventions would in the past keep a currency buoyant for days or weeks, the euro immediately slipped down again, indicating a clear crisis of confidence and a currency in terminal decline.

Gold has hit record highs against all major currencies in the last few months as it remains the only true store of wealth in times of economic chaos and depreciating fiat money.

Demand for the precious metal is once again hitting fever pitch as the U.S. Mint announces that it has sold 190,000 1-ounce American Eagle gold coins in May, the largest amount in a single month for over 11 years.

Buyers in Europe are also desperately scrambling to purchase the scant amounts of gold available, with the Greek Central Bank now selling one ounce coins at the equivalent of $1,700 dollars, nearly $500 dollars above spot price.

“As long as governments continue to struggle with spiraling debts and are forced to crank up the printing presses, gold will continue to outperform currencies, a situation which is unlikely to change any time soon,” we wrote on April 30.

Now gold bulls like Peter Schiff are predicting the incredible – that gold could soar to around $10,000 an ounce as a consequence of a dramatic fall in supply due to significantly less gold mining. Gold companies now have to drill as much as 2.3 miles to get to the yellow metal in places like South Africa, whereas central banks merely need to press a button to increase the supply of depreciating fiat money.

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