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Some
of the almost 10,000 members of the National Education Association
(NEA) attending the teachers union’s annual conference this week in the
nation’s capital spoke out on the issues they hope their lobbyists will
fight for during next year’s legislative session, including the
establishment of a peace academy, in-state college tuition and a path
to citizenship for illegal immigrants who graduate from high school.

Susie
Jablinske, a first grade teacher at Central Elementary School in
Edgewater, Md., said children who are in the country illegally should
have the same educational rights as American children.

She
proposed that the NEA add the following words to its resolution to
develop programs to help minority students become college graduates,
regardless of immigration status: “Access to higher education and
in-state tuition, regardless of immigration status, as well as paths to
legalization to undocumented high school graduates,” Jablinske proposed.

She said as many as 65,000 graduates from U.S. public high schools are “undocumented,” even if they don’t know it.

“Many
of them actually didn’t even know they were undocumented until they
started applying for a driver’s license or financial aid for college,”
she said.

Outgoing NEA President Reg Weaver, in an interview with The Hill
newspaper in February, said that the NEA - with a membership of 3.2
million - plans to spend $40-$50 million to help get candidates who
will help advance its agenda in the 2008 election, including the
union’s endorsement and support for Democratic candidate Barack Obama.

“We
plan to be very aggressive,” Weaver said in the interview, citing at
least 25 House and nine Senate races around the country the NEA
supports.

“We also knew that our commitment to public education
would require us to employ new strategies in the political arena,”
Weaver said in his keynote address at the start of the NEA
Representative Assembly of delegates on Thursday.

“So we had
the courage to create a campaigns and elections department, which
helped us win important battles last year in states like Utah,
Kentucky, Virginia, Washington state and others,” he added.

Members
who spoke at a legislative hearing on Wednesday told lobbyists what
they hoped would be priorities in the 111th Congress, including the
creation of a federal post-secondary institute devoted to peace.

Ken
Curtis, a retired teacher from Missouri, said he wanted to amend the
NEA’s “Good Public Policy” legislative platform to include a “peace”
academy that would hold the same status as its military counterparts,
including offering degree programs.

“I’ve had the good fortune
in the last four or five years to visit a number of countries, and I’m
disturbed about the image the United States has in terms of being an
advocate of peace,” Curtis said. “We have somehow developed a
reputation that we are not a peace-loving country, and I think that
this would be a step in the right direction.”

Curtis said a peace academy would send the right message to the world.

“Look,
we’re in favor of establishing a peaceful community worldwide, and
we’re trying to do that right here in the United States,” he said.

The
session’s moderator agreed it would be a step in the right direction,
but that it would most likely take “a new attitude at 1600 Pennsylvania
Avenue” to take that step.

Delegates at the conference elected
officers and updated its core mission statement, or Resolutions, on a
wide range of educational and other issues, including human rights - a
topic addressed by one of the delegates at the legislative session in
another proposed amendment of the “Good Public Policy” section of NEA
Resolutions.

“The NEA opposes torture and other cruel, inhuman,
or degrading treatment or punishment of persons in the custody or under
the physical control of the United States government, regardless of
nationality or physical location,” the delegate said.

A 45-page report detailing the NEA’s vision for the future of public education also was unveiled at the conference.

“Great
Public Schools for Every Student by 2020; Achieving a New Balance in
the Federal Role to Transform America’s Public Schools,” spells out
that vision, including a condemnation of the No Child Left Behind
policy, a cornerstone of the Bush administration.

In the
introduction to the report, William Blakely, chairman of the board of
the Council on Legal Education Opportunity or CLEO, offered advice to
the winner of the 2008 presidential election.

“The National
Education Association has taken a bold step and articulated a brave
vision for redefining the federal role in education for the next
president of the United States,” Blakely said.

“(The report)
challenges the nation by outlining a vision for educating America’s
children and assuring the nation will provide ‘liberty and justice’ for
all. Our next president would do well to heed the words and wisdom
reflected in this important document,” he added.

n a
brazen attempt to stifle free speech in the West, a Jordanian court
recently summoned twelve European citizens to answer criminal charges
of blasphemy and inciting hatred.

Among those sought by the court is Geert Wilders, the Dutch liberal politician who made the anti-Islamist film, Fitna.
Released last March, the Dutch MP’s production caused an uproar in
Islamic countries, since it equated Islam with violence. Now a Middle
Eastern court would like to prosecute Wilders for the “crime.”
(Ironically, a Dutch court dropped charges against him for inciting
hatred against Muslims with his film the day before the Jordanian court
issued its subpoena.)

The Jordanian court’s move is only the most ambitious attempt to
silence debate about Islam. Until now, the preferred strategy has been
to file civil lawsuits in western courts to intimidate critics. The
latest version of what may be called the legal jihad is even more disturbing.

In one subpoena, issued in early June, the Jordanian court ordered
ten Danish newspaper editors to travel to Jordan for the “crime” of
having republished the “Mohammad cartoons” last February. The cartoons,
first published in 2005, were also greeted with disturbances in Muslim
lands. Seventeen Danish newspapers republished the controversial
cartoons as a response to the discovery of an Islamist plot to murder
Kurt Westergaard. Westergaard, a caricaturist, drew the most famous of
those cartoons in the form of Mohammad wearing a bomb-shaped turban,
for which he is also included in the summons.

This new campaign of intimidation against the West is being mounted
by a Jordanian organization calling itself “Messenger of Allah Unite
Us”, which is made up of “… media outlets, professional associations,
parliamentarians and thousands of volunteers.” This organization,
according to one account, arose as a “civilized response” to the
Mohammad cartoons’ republication in 17 Danish papers last winter, after
which it took the matter to a Jordanian court and successfully had
charges pressed against the Danes, and later against Wilders.

The subpoenas will be sent to the twelve Europeans through their
embassies in Jordan. If they do not appear within 15 days, the
Messenger of Allah group says it will seek international arrest
warrants through Interpol.

But while Denmark and Holland will not forcibly send innocent
citizens to Jordan, this new, “legal jihad” tactic of criminalizing
those believed to have insulted Islam constitutes a threat on an
unprecedented level against freedom.

Citizens of western countries who criticize Islam, and are even
willing to face lawsuits in civil courts their own countries for doing
so, may now exercise restraint if they risk facing criminal charges in
a Muslim country. Especially if the charge is blasphemy and it is being
tried by a sharia court, which can impose a death sentence (The Danes
and Wilders, a Jordanian lawyer said, are facing a maximum of three
years in jail).

As well, critics of Islam who have outstanding warrants against them
from courts in Muslim countries will have their freedom of movement
restricted, since travel abroad will now be problematic. Wilders
expressed this sentiment, saying he will be careful when he travels
now. Such targeted individuals, like Wilders, will obviously have
reservations travelling to a third country where Jordan could file an
extradition application or may already have an extradition treaty in
place.

But what is most disturbing is that an Islamic country would dare
subpoena citizens of another state for an action not committed within
its borders but in a land where no laws were broken. Besides being
meant as a weapon of intimidation, this tactic also represents a
frightening extension of Islamic law into the heart of western
countries.

But perhaps most ominously, this incredibly brazen measure shows
that even a small Islamic country like Jordan has no fear of Europe.
And, indeed, no retaliatory response met the Jordanian court’s action
against European citizens.

Europe’s appeasement is also evident in the second part of Messenger
For Allah group’s anti-blasphemy campaign. This part calls for a
commercial boycott of all Danish and Dutch products in Jordan and of
anything associated with the two countries, such as airlines and
shipping companies. The boycott campaign actually began late last
February but was suspended due to the losses Jordanian importers were
incurring that had large stocks of unsold Danish and Dutch products.

The boycott, however, was resumed June 10. One million posters
containing the logos of banned Dutch and Danish products will
eventually hang in Jordanian businesses under the title “Living Without
It.” The boycott will also be spread by television and radio ads,
t-shirts, and bumper stickers.

Dutch and Danish companies were instructed they could get their
products off the boycott list if they, essentially, betrayed their
nations’ values and their countrymen. The affected companies, according
to The Jordan Times, were told to denounce the Dutch film and the
Danish cartoons in the media both in Jordan and in at least one
publication in their own country, support the Jordanian legal action
taken against Wilders and the Danish newspaper people as well as the
creation of an international anti-blasphemy law.

Several companies have already complied. When informed of the
stipulation that requires a denunciation be published in a Dutch
newspaper, a spokesman for a Dutch food company that exports to Jordan
said his company “…would print it if needed.”

But such groveling will only buy these companies a little time, as
another Dutch company discovered. It had immediately distanced itself
from Wilders and Fitna after the film’s release last March but still
had products placed on the boycott posters.

The Dutch government did not fare much better in its appeasement
efforts. One Dutch embassy official in Jordan said he was surprised his
country was included in the boycott in the first place since his
government had already printed statements in the Jordanian press
distancing itself from Wilders’ film.

And, naturally, the Jordanian blackmailers’ demands have not
stopped. Only last week, Dutch and Danish companies were told to put
the boycott posters up in their own countries if they did not want
their products blacklisted.

Perhaps to further intimidate Holland’s and Denmark’s populations,
the Jordanians are also claiming their boycott campaign is causing
these countries huge financial losses of over four billion Euros in
four months. A Danish official, however, says that is ridiculous since
his country only exported about $50 million worth of goods to Jordan in
2007.

The overall goal of the Messenger of Allah group’s legal and
commercial campaign against the two European states, it says, is the
enactment of “a universal law that prohibits the defamation of any
prophet or religion”, especially of the Prophet Mohammad. Islamic
countries are already pushing for such a law at the United Nations.

“The boycott is a means but not an end,” said Zakaria Sheikh, a
spokesperson for Messenger of Allah Unite Us. “We are not aiming at
collective punishment, but when the Danish and Dutch people put
pressure on their governments to support the creation of an
international law, we are achieving our goal.”

Well, there you have it. The Muslim organization wants Denmark and
Holland not just to muzzle themselves but to help it muzzle the rest of
the world as well.

But just the opposite should occur. All western countries should
help put a muzzle on Jordan’s ridiculous campaign to squelch free
speech, meddle in the internal affairs of two sovereign, western states
and intimidate their citizens. In terms of financial measures, Denmark,
showing its usual mettle, has already led the way when it told the
Sudan it would have to repay a $500 million debt the Scandinavian
country was considering cancelling, if it joined the boycott.

It should also be pointed out in the West that Jordan, which is
demanding respect for its religion, does not respect other religions
equally. While the practice of other faiths is not forbidden in the
Middle Eastern country, none are allowed to proselytize, and converts
from Islam to other religions are prosecuted by Jordanian sharia
courts.

Moreover, the Jordanians should be told that if they want to
extradite inciters of hatred to their courts, then citizens of their
country, and of other Islamic countries for that matter, who have
advocated killing Jews and other the infidels will be extradited to
face western courts. In the end, if legal jihad is not recognized as
the danger to the West that it is, and vigorously opposed, it will wind
up punishing more than just two small European countries.


Porton Down

LONDON – The British intelligence service MI5 has redrawn its electronic map of Britain’s “hot spots” terrorist targets – to include provincial university towns, colleges and picturesque villages close to high-security installations. Among these are the Government Communications Center in the rolling hills of the Cotswolds and Porton Down, the top-secret Chemical/Biological Defense Establishment, alongside the traditional English countryside of small towns, villages and farms, according to a report in Joseph Farah’s G2 Bulletin.

The Security Service fears such peaceful locations could serve as cover for target recognition by al-Qaida associated groups.

Already MI5 confirmed it has more than 2,000 suspects under surveillance. But they mostly are in London and other major cities. Now the fear is that terrorists have moved out into the countryside, posing as tourists or students to look for suitable targets.

“While it would be virtually impossible for them to penetrate high security establishments like GCHQ or Porton Down, to carry out a terrorist outrage in their vicinity would still cause havoc,” an MI5 source said.

The warning follows the attempted attack on a shopping center restaurant in Exeter and the discovery in Bristol of a bomb factory in the city’s suburbs.

Both cities have a large university population whose students include a substantial number of Muslims and members of Islamic societies.

“Our concern is that those societies are promoting al-Qaida. Until recently the country areas have been near empty when we assessed hot spots. Now we have set up counter-terrorism units across not only the West Country, but also in Leeds, Birmingham and Manchester. All have campuses which now need to be more closely watched,” the source said.

The new hot spots have increased the number to more than 100 areas of the country.

The West Country – where the Ministry of Defense has a number of high-security establishments – had until now only been considered “a low risk.”

But the attempt by Nicky Reilly, a 22-year-old mentally disturbed Muslim convert, to blow himself up in an Exeter restaurant has stunned counter-intelligence officers.

Another convert, Andrew Ibrahim, a 19-year-old former drug addict, was discovered in an MI5-led raid to have turned his home into a bomb-making factory in a Bristol suburb.

MI5 have now begun a hunt through provincial university files to check on the backgrounds of students who have contacts with Islamic organizations.

Whenever the media takes note of the antics of Norman Finkelstein, the former DePaul University professor and anti-Israel activist, a flood of disinformation seems bound to follow. Finkelstein’s arrest in Israel last week was no exception.

The facts of the case are clear. Finkelstein had attempted to enter Israel last Thursday to travel into the West Bank. There he would likely have lent support to Palestinian extremists. Unquestionably, he would have caused trouble. And while Israel generally does not prevent foreign trouble makers from entering the country (a highly naive and short-sighted policy), it made an exception this time: Finkelstein was detained at the Tel Aviv airport upon landing, kept under watch for a few hours, and eventually deported to Amsterdam.

The deportation served as a siren call for all Israel’s critics, both foreign and domestic, to protest this alleged “suppression of academic freedom of an academic critic of Israel.” The leftist web sites and the liberal media were immediately filled with reports of how “Professor Finkelstein” was kicked out of Israel for, supposedly, having anti-Israel opinions.

Finkelstein’s supporters, like Peter Kirstein of St. Xavier University, cried “outrage” at Finkelstein’s eviction. Israel’s far-Left also got into the fray. Finkelstein’s own web site broadcast his martyrdom in lurid terms.

As usual when Finkelstein is involved, the facts all got lost along the way.

First, Finkelstein is no “professor.” In fact, he never was an academic in any meaningful sense of the word. Finkelstein is a crackpot and an open admirer of Holocaust denier David Irving. Finkelstein claims that all Holocaust survivors are liars, hoaxsters, and thieves, extorting Germany. Finkelstein was fired last year from DePaul University in Chicago because he had no academic publications or achievements at all; he has yet to publish his first academic paper. He is regarded to be a Holocaust denier by the Anti-Defamation League, the Simon Wiesenthal Center and others. For all the whining of his supporters that in DePaul he fell victim to “outside interference” when he was denied tenure, the fact is that most of the outside interference there was actually in Finkelstein’s favor.

Second, Finkelstein was not denied entry into Israel because he holds anti-Israel opinions. Anti-Israel leftists come in and out of Israel all the time. For instance, the Jewish state has long put up with the International Solidarity Movement (ISM), whose members enter Israel to engage in violent hooliganism and to assist Palestinian terrorism, sometimes assaulting Israeli police and soldiers in the process.

Some of Israel’s own tenured professors, moreover, are even more extreme and anti-Israel than Finkelstein himself. As is clear from any fair-minded reading of Israeli media reports, Finkelstein was denied entry into Israel because he has spent the past few years serving as an all-but-official spokesperson for the Hezbollah terror group and was suspected of wanting to enter Israel for purposes of espionage and activities on its behalf.

Third, entry into Israel is not a universal entitlement. According to the official Israeli statement as reported in Haaretz, Israeli intelligence said Finkelstein “is not permitted to enter Israel because of suspicions involving hostile elements in Lebanon,” and because he “did not give a full accounting to interrogators with regard to these suspicions.” The last point is especially critical. While still in Israeli captivity, Finkelstein adamantly refused to answer questions about what he was planning to be doing while in the country, as well as who was paying for his trip. Given his refusal to cooperate, it’s difficult to see that Israeli authorities had any alternative but to deport him.

That’s not how Finkelstein sees it, of course. Moments after arriving in Amsterdam, Finkelstein sent out the following message to his fans (spelling and grammar uncorrected):

“Before rumors report my premature death, I was kept in a holding cell for 24 hours and then deported to Amsterdam. It wasn’t a Belgian bed and breakfast but it wasn’t Auschwitz either (although after six hours of abusive treatement (sic) I did call them “f**king Jewish Nazis,” not taken well). It seems that to see Musa and his family again, I’ll have to wait until the end of the occupation. I have been been (sic) banned for “at least 10 years.” Another incentive to work towards ending the occupation.”

Facts notwithstanding, some on the hard-Left were prepared to see Finkelstein as the victim. The so-called “Association for Civil Rights in Israel” or ACRI took the lead in this regard. The ACRI quickly dispatched once of its leaders, a lawyer named Michael Sfard, to serve as attorney for Finkelstein while he was being held at the airport. Sfard was then cited in the media as saying, “A country that starts to fear what its harshest critics write about it is a country that is already behaving in a manner reminiscent of the darkest days of the communist regime.”

But Finkelstein is not a substantive “critic” of Israel. By his own admission, he is a supporter of a terrorist group – Hezbollah – that explicitly seeks Israel’s destruction. Contrary to the amen corner loudly commiserating with this disgraced academic, Finkelstein is not a victim of Israeli censorship, but of his own extremism.

In the early 1980s, the Ohio Division of Travel and Tourism announced a new state tourism slogan: “Ohio, the Heart of It All”. This slogan takes on several new layers of meaning now that international hate sheikh Khalid Yasin has decided to continue his “Islamic Hatred in the Heartland” tour by spending this week delivering his message of hatred, bigotry and violence in mosques all around Central Ohio.

Two weeks ago I reported here that Yasin would be appearing at Sinclair Community College in Dayton, “Islamic Hatred in the Heartland”, sponsored by a local mosque, Masjid at-Taqwa. Pendra Lee Snyder has followed-up on that story by providing a first-hand account of Yasin’s appearance in Dayton, and how Masjid at-Taqwa prevented her from recording his hate-filled comments. Our reporting here at FrontPage even prompted Dayton NBC affiliate WDTN to cover and question Yasin’s visit. And last week John Perazzo exposed how Yasin was the featured speaker at events in April sponsored by the Muslim Student Association at several college campuses.

So it was quite a surprise Saturday morning when the Islamic community in Columbus was informed that Yasin would be touring our city for the next week, paying visits to at least four different mosques affiliated with the Islamic Society of Great Columbus (the local chapter of the Islamic Society of North America) and putting in an appearance on Thursday at The Ohio State University.

Event organizers had presumably delayed announcing Khalid Yasin’s visit until the day of his first appearance to prevent the negative media attention he received in Dayton as a result of the coverage here at FrontPage and JihadWatch.

There is good cause why Yasin’s local supporters don’t want to raise the attention of the Central Ohio community, for fear of them learning about Yasin’s extensive extremist statements reported by the international media.

For example:

* Yasin says that the US government was behind the 9/11 attacks. (“Khalid Yasin: The New Voice of Islam?” Sunday [Australia], October 9, 2005)
* Yasin claims that AIDS was invented at a US government lab and spread by Western governments through UN agencies and Christian missionaries. (“Khalid Yasin: The New Voice of Islam?” Sunday, October 9, 2005)
* Yasin advocates for the death penalty for homosexuality. (“Home Grown”, Sixty Minutes, Channel Nine [Australia], July 24, 2005)
* Yasin justified the terrorist bombings in Bali because of years of alleged Western oppression. (“Khalid Yasin: The New Voice of Islam?” Sunday, October 9, 2005)
* Yasin says that the Quran permits wife-beating and that equal rights for women is a “delusion” and “foolishness”. (cited in “Undercover Mosque”, Dispatches, Channel 4 [UK], January 15, 2007)
* Yasin openly derides the beliefs of Christians and Jews as “filth”. (cited in “Undercover Mosque”, Dispatches, Channel 4 [UK], January 15, 2007)
* Yasin says that Muslims cannot have non-Muslim friends. (“Home Grown”, Sixty Minutes, Channel 9 [Australia], July 24, 2005)
* Yasin rejects any separation between Islam and the state and openly advocates for the reestablishment of the caliphate. (Sunday Nights with John Cleary, Australian Broadcasting Corporation, September 7, 2003; “Khalid Yasin in conversation”, The Religion Report, Australian Broadcasting Corporation National Radio, September 10, 2003)
* Yasin visited Jemaah Islamiah terrorist leader Abu Bakar Bashir in prison, who ordered the Bali bombings. (“Koranic TV next step for radial sheikh”, Sydney Morning Herald, August 20, 2005)
* Yasin has lectured with Hizb-ut-Tahrir hatemonger Omar Bakri Mohammed, who was banned from the UK in 2006.
* Yasin was in Saudi Arabia on 9/11 soliciting support from the Al-Qaeda front Al-Haramain Foundation, which was designated a terrorist organization in 2004 by the US government, to help finance his Islamic Broadcasting Company.

It’s not as if Central Ohio is facing some shortage of catalysts for Islamic radicalization.

In fact, one of the mosques Yasin will be visiting three times this week, Masjid Omar Ibn El Khattab, just north of the Ohio State campus, is derisively known in the area as “Masjid Al-Qaeda”, as it was the home of the largest known Al-Qaeda cell in the United States since 9/11. Two members of the cell, Iyman Faris and Nuraddin Abdi, have already been convicted of support for terrorism (Faris, in fact, was in direct communication with Al-Qaeda operations chief Khalid Sheikh Mohammad), and a third, Christopher Paul, who was the mosque’s martial arts instructor, has been charged and will be coming to trial on terrorism support charges soon. Other cell members have fled the country and/or been deported, and as many as 10 individuals were known to be involved in the Columbus Al-Qaeda cell.

And as readers might recall from my “Hometown Jihad” series, international HAMAS/Muslim Brotherhood cleric Salah Sultan was living and operating in my own hometown of Hilliard, Ohio until he fled the country last year after having his US citizenship application rejected (due in no small measure to our own efforts). CBN terrorism correspondent Erick Stakelbeck reported from Columbus last year on the network of Islamic extremists tied to international terrorist groups that had taken root in Central Ohio (“Jihad in Central Ohio”) – a network in which my neighbor Salah Sultan played a leading role.

Recently, I revealed how a designated terrorist organization had been funding events for the Ohio State Muslim Student Association – the very same group that ran the MSA News list that had served as Osama bin Laden’s media front and a public relations outlet for virtually every Islamic terrorist organization in the world before 9/11.

With this in mind, it’s no surprise that Khalid Yasin has chosen Columbus as the next stop in his “Islamic Hatred in the Heartland” tour. Our city has proved to be fertile ground for Islamic radicalism, and Yasin’s local sponsors no doubt hope to bring in a veritable harvest of hate with his multiple appearances this week. The effects of Khalid Yasin’s tour of Central Ohio will no doubt continue to reverberate through the community for months and years to come.

Those outside our area, however, should not content themselves that such an event could never happen in their own city. Who knows? As Dayton and Columbus have already found out, Khalid Yasin’s next stop on his “Islamic Hatred in the Heartland” tour could be your own hometown.

Iran’s nuke plans spark race
13 Mideast states working on their own agendas


LONDON — Agents with Britain’s MI6 intelligence agency who are based in the Middle East have established that 13 countries in the region have drawn up new plans — or reviewed previous ones — to build nuclear stations following in the path of Iran’s push for an enriched uranium program capable of producing nuclear weapons.

“It is clear that those countries are motivated by what Tehran is doing to enter into the nuclear weapons club,” states an MI6 report.

And the International Institute for Strategic Studies, IISS, confirming MI6’s findings, said the other nations “have embarked on their programs in order to give them each the option of building a nuclear bomb in the future.”

IISS chief executive John Chapman said: “Iran’s program has built on regional rivalry, security concerns and sheer one-upmanship.

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“These issues have contributed to a regional surge to obtain nuclear energy. The urgent question for Britain, the United States and other countries with interests in the region is how to confine the expansion to purely nuclear civilian programs. That is exactly what Iran claims it was doing. We have established the truth is otherwise.”

By continuing to create enriched uranium suitable to be weaponized for its latest ballistic missile, the Shahab-3, Iran already has established itself as not only a threat to Israel, but to Turkey, a NATO nation; Egypt, with its pro-West government; Jordan, also pro-West; and the United Arab Republics. These are all nations where the West has strategic interests.

With its 900-mile range, the Shahab-3 could deliver nuclear warheads to any of these countries.

“It is that growing fear which has triggered the drive in these countries to create its own nuclear shield,” states the MI6 report.

John Chapman believes Tehran is “racing to be the first nation in the region to have a full nuclear weapons capability, possibly by 2010. In turn the Sunni monarchs of the Gulf are increasingly worried, not least because Tehran is stirring deep unrest among their own Shia populations.”

Saudi Arabia, the leading Sunni power in the region, has publicly expressed its fears about a nuclear-armed Iran. MI6 agents have established that for some time Pakistan’s nuclear scientists have provided expert help to the Saudi government to develop its nuclear capability.

HYPERINFLATION

Overview

The U.S. economy is in an intensifying inflationary recession that eventually will evolve into a hyperinflationary great depression. Hyperinflation could be experienced as early as 2010, if not before, and likely no more than a decade down the road. The U.S. government and Federal Reserve already have committed the system to this course through the easy politics of a bottomless pocketbook, the servicing of big-moneyed special interests, and gross mismanagement.

The U.S. has no way of avoiding a financial Armageddon. Bankrupt sovereign states most commonly use the currency printing press as a solution to not having enough money to cover their obligations. The alternative would be for the U.S. to renege on its existing debt and obligations, a solution for modern sovereign states rarely seen outside of governments overthrown in revolution, and a solution with no happier ending than simply printing the needed money. With the creation of massive amounts of new fiat (not backed by gold) dollars will come the eventual complete collapse of the value of the U.S. dollar and related dollar-denominated paper assets.

What lies ahead will be extremely difficult and unhappy times for many. Ralph T. Foster, in his “Fiat Paper Money” (see recommended further reading at the end of this issue), closes his book’s preface with a particularly poignant quote from a 1993 interview of Friedrich Kessler, a law professor at Harvard and University of California Berkeley, who experienced the Weimar Republic hyperinflation:

“It was horrible. Horrible! Like lightning it struck. No one was prepared. You cannot imagine the rapidity with which the whole thing happened. The shelves in the grocery stores were empty. You could buy nothing with your paper money.”

This Special Report updates and expands upon the three-part Hyperinflation Series that began with the December 2006 SGS Newsletter, exploring: (1) the causes and background of the evolving hyperinflation and great depression; (2) why circumstances will differ from the deflationary Great Depression of the 1930s; (3) implications for politics and the financial markets; (4) considerations for individuals and businesses.

The broad outlook has not changed during the last year. More generally, though, developments in the economy and the financial markets have been in line with projections and have tended to confirm the unfolding disaster. Specifically, the current inflationary recession has gained much broader recognition, while the still-unfolding banking solvency crisis has confirmed the Fed’s and the U.S. government’s willingness to spend whatever money they have to create in order to keep the financial system from imploding. While the dollar has taken a heavy hit — down roughly 20% against key currencies from last year — selling of the U.S. currency still has been far short of the outright dollar dumping that eventually will lead to flight to safety outside of the U.S. dollar. That event is important to the shorter-term timing of the pending hyperinflation.

Regular readers may recognize text from last year’s Series, as well as material from various SGS newsletters, but such is the nature of revisions to prior material. Points that may be repeated from earlier newsletters are done so in sequence to help build the arguments explaining the unfolding crisis. Great thanks are extended to the numerous subscribers who offered ideas, questions and materials that have been incorporated in this report.

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