Infinite Unknown

Nuclear bombs in Asia at the time of the Taiwan Strait crisis are listed (red box) in this Strategic Air Command document obtained under the Freedom of Information Act (FOIA).

Thanks to the efforts of Bill Burr at the National Security Archive, some of the veil covering U.S. nuclear war planning against China in the 1958 Taiwan Strait crisis now has been lifted by a declassified military study.

It shows that on the day after the Chinese began shelling the Quemoy islands on August 23, 1958, U.S. Air Force Headquarters apparently assured Pacific Air Forces “that, assuming presidential approval, any Communist assault upon the offshore islands would trigger immediate nuclear retaliation.” Yet President Dwight D. Eisenhower fortunately rejected the use of nuclear weapons immediately, even if China invaded the islands, and emphasized that under no circumstances would these weapons be used without his approval.

Caution against nuclear use didn’t mean not planning for it, however, and in the years after the Taiwan Strait crisis an enormous nuclear build-up occurred in the Far East. The numbers started to decline in the 1970s, and for a period during the 1980s and first half of the 1990s, nuclear planning against China was reduced to reserve force contingencies. In the past decade, however, China has again become a focus for U.S. nuclear strike planning.

The Available Nuclear Bombs

Shortly after the Chinese shelling of Quemoy began, General Nathan Twining, the Chairman of the Joint Chiefs of Staff, explained during a meeting with President Eisenhower’s cabinet that U.S. aircraft at the outset would drop 10-15 kilotons nuclear bombs on selected fields in the vicinity of Amoy (Xiamen). The Pacific Air Forces drew up a contingency plan based on the assumption that the United States would carry out the nuclear strikes necessary to defeat the attacking Chinese forces.

At that time, the Matador nuclear cruise missile was already deployed in Taiwan. The missile could deliver a 20 kt W5 warhead to a range of about 965 km (600 miles). From Taiwan, the Matador could potentially have hit Chinese troop concentrations around Amoy, but General Twining apparently favored bombs. Nuclear bombs, however, did not arrive in Taiwan until January 1960, but a declassified document previously released to me under FOIA shows they were available on Guam and Okinawa. The bombs included three types – Mk-6 (only Guam), Mk-36 Mod 1, and Mk-39 Mod 0 – with yields ranging from 8 kilotons to 10 megatons (see Table 1).

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The Mk-6 was a tactical bomb that could be delivered in a ground or airburst mode by a variety of Air Force and Navy aircraft and probably would have been the weapon of choice for the Taiwan scenario. The Mk-36 and Mk-39 were both strategic megaton weapons more suited for use against large area targets such as cities or to “dig up” underground facilities.

In mid-August, five Strategic Air Command B-47 bombers on Guam were put on alert to conduct nuclear strikes against airfields on the Chinese mainland if necessary. Such attacks would be necessary, General Twining said, if initial nuclear strikes against troop concentrations failed to cause China to lift their blockade of Quemoy. Continue reading »

Tags: China, crisis, Dwight D. Eisenhower, NSA, nuclear, nuclear bombs, Taiwan, U.S., War

The global free market for food and energy is facing its biggest threat in decades as a host of countries push through draconian measures to hold down prices, raising fears of a new “resource nationalism” that could endanger world food security.

Somali’s demonstrate against high food prices in the capital Mogadishu. At least two people were killed in clashes

India shocked the markets yesterday by suspending trading in futures contracts for a range of farm products in a bid to clamp down on alleged speculators and curb inflation, now running at 7.6pc.

The country’s Forward Markets Commission said contracts for soybean oil, chana (chickpeas), potatoes, and rubber had been banned for four months, even though a report by the Indian parliament last month concluded that soaring food costs had almost nothing to do with the futures contracts. Traders in Mumbai slammed the ban as an act of brazen political populism.

The move has been seen as a concession to India’s Communist MPs - key allies of premier Manmohan Singh - who want a full-fledged ban on futures trading in sugar, cooking oil, and grains.

As food and fuel riots spread across the world, a string of governments have resorted to steps that menace the free flow of food and key commodities. Argentina has banned beef exports, while Egypt and India have stopped shipments of rice.

Kazakhstan has prohibited wheat exports. Russia has slapped a 40pc export duty on shipments, and Pakistan a 35pc duty.

China, Cambodia, Malaysia, Philipines, Sri Lanka, and Vietnam have all imposed export controls or forms of rationing to ease the crisis.

UN Secretary-General Ban Ki-moon has warned that this lurch towards national controls is becoming a threat to the open global system we all take for granted. “If not handled properly, this crisis could result in a cascade of others and affect political security around the world,” he said.

A new report by UBS says the scramble for scarce raw materials is turning ever more political, with ominous implications for ill-endowed societies that rely on imports.

“The bottom line is that countries with resources, particularly in food and energy are becoming more protective of these resources,” it said.

(I know I am repeating myself and I know that many are already well prepared. This is for the ones that are not:
Store food and water “NOW”. Do this in a relaxed manner because your brain shuts down when you are under stress and in survival mode. - The Infinite Unknown)

Continue reading »

Tags: Argentina, Ban Ki-moon, Cambodia, China, Commodities, copper, crisis, energy, famine, Food, Food Crisis, Food Prices, Food Riots, Government, Grain, hedge funds, India, Inflation, Malaysia, Mexico, Middle East, Oil, Oil Futures, Philipines, Russia, soybeans, Sri Lanka, U.N., U.S., UBS, Vietnam, Wall Street Journal, wheat

BASEL, Switzerland, April 29 (Reuters) - Stagflation is an increasingly plausible prospect in the United States and weak economic growth could last well into 2009, if not longer, the head of the Bank for International Settlements says.

That does not herald a rerun of the economic stagnation and rampant inflation that ran riot during the 1970s when oil prices last soared to unprecedented levels, Malcolm Knight, BIS general manager, said in an interview.

But it does cast some doubt on the White House’s thesis that the economy will rebound in the second half of 2008 in response to the tens of billions of dollars of tax rebates the government will be delivering to U.S. households in the coming weeks.

“I see a certain amount of scope for stagflation in a number of economies and that usually tends to result in subpar economic growth performance for an extended period of time, which could go well into 2009 or even longer,” said Knight, a Canadian who worked for more than 20 years at the International Monetary Fund.

“I think the U.S. economy is likely to experience weakness this year and in much of 2009,” said Knight, speaking to Reuters at BIS headquarters in Basel, Switzerland.

“Stagflation is a definite risk.” Continue reading »

Tags: Bank for International Settlements, BIS, crisis, financial system, Henry Paulson, Inflation, Mortgages, Recession, Stagflation, Treasury, U.S.

WASHINGTON—Studies indicate that credit card defaults and related write-offs increased drastically since 2006. Today, lenders write off 33 percent more in credit card debt than they did two years ago.

Statistics show that about 35 percent of all credit card holders are already exhibiting signs of possible default. Late credit card payments result in fees many consumers can’t afford.

Credit card debt accelerated to unprecedented heights since bank loans began to dry up due to mortgage defaults. Total U.S. credit card debt reached almost $800 billion in November 2007, up from around $680 billion in March of last year, according to the latest available government statistics.

In the aftermath of the U.S. mortgage crisis, the credit card bubble may be next to burst. In the past few years, banks have aggressively marketed credit card ownership and usage to consumers with limited income and low credit scores. Credit card standards remain lax, while loan standards have tightened to a degree. Continue reading »

Tags: Credit Card, Credit Crisis, crisis, debt, default, Fed, Mortgages, U.S.

Food riots have broken out across the globe destabilizing large parts of the developing world. China is experiencing double-digit inflation. Indonesia, Vietnam and India have imposed controls over rice exports. Wheat, corn and soy beans are at record highs and threatening to go higher still. Commodities are up across the board. The World Food Program is warning of widespread famine if the West doesn’t provide emergency humanitarian relief. The situation is dire. Venezuelan President Hugo Chavez summed it up like this, “It is a massacre of the world’s poor. The problem is not the production of food. It is the economic, social and political model of the world. The capitalist model is in crisis.”

Right on, Hugo. There is no shortage of food (This is disinformation - The Infinite Unknown); it’s just the prices that are making food unaffordable. Bernanke’s “weak dollar” policy has ignited a wave of speculation in commodities which is pushing prices into the stratosphere. The UN is calling the global food crisis a “silent tsunami”, but its more like a flood; the world is awash in increasingly worthless dollars that are making food and raw materials more expensive. Foreign central banks and investors presently hold $6 trillion in dollars and dollar-backed assets, so when the dollar starts to slide, the pain radiates through entire economies. This is especially true in countries where the currency is pegged to the dollar. That’s why most of the Gulf States are experiencing runaway inflation. Continue reading »

Tags: Ben Bernanke, Bush administration, CFTC, China, Commodities, crisis, Dollar, Enron, Financial Tsunami, Food Prices, Food Riots, Futures, Hugo Chavez, India, Indonesia, Inflation, Oil, rice, rice exports, Speculators, tsunami, U.N., Vietnam, Wall Street

Jean-Claude Juncker, the EU’s ‘Mr Euro’, has given the clearest warning to date that the world authorities may take action to halt the collapse of the dollar and undercut commodity speculation by hedge funds.

Jean-Claude Juncker, who is calling for Washington to
take steps to halt the slide of the dollar

Momentum traders have blithely ignored last week’s accord by the G7 powers, which described “sharp fluctuations in major currencies” as a threat to economic and financial stability. The euro has surged to fresh records this week, touching $1.5982 against the dollar and £0.8098 against sterling yesterday.

“I don’t have the impression that financial markets and other actors have correctly and entirely understood the message of the G7 meeting,” he said.

Mr Juncker, who doubles as Luxembourg premier and chair of eurozone financiers, told the Luxembourg press that he had been invited to the White House last week just before the G7 at the urgent request of President George Bush. The two leaders discussed the dangers of rising “protectionism” in Europe. Mr Juncker warned that matters could get out of hand unless America took steps to halt the slide in the dollar. Continue reading »

Tags: Airbus, Barclays Capital, central bank, China, collapse, commodity, crisis, Dollar, EADS, ECB, economic, EU, euro, European Central Bank, FDI, Federal Reserve, financial, France, Futures, G7, GDP, George Soros, Germany, Gold, hedge funds, Holland, Ireland, Italy, Jean-Claude Juncker, Luxembourg, Nicolas Sarkozy, Oil, President George Bush, Saudi Arabia, Silver, Silvio Berlusconi, slide, Spain, stability, traders, world authorities

There has been a lot of talk in the news recently about the Federal Reserve and the actions it has taken over the past few months. Many media pundits have been bending over backwards to praise the Fed for supposedly restoring stability to the market. This interpretation of the Fed’s actions couldn’t be further from the truth.

The current market crisis began because of Federal Reserve monetary policy during the early 2000s in which the Fed lowered the interest rate to a below-market rate. The artificially low rates led to overinvestment in housing and other malinvestments. When the first indications of market trouble began back in August of 2007, instead of holding back and allowing bad decision-makers to suffer the consequences of their actions, the Federal Reserve took aggressive, inflationary action to ensure that large Wall Street firms would not lose money. It began by lowering the discount rates, the rates of interest charged to banks who borrow directly from the Fed, and lengthening the terms of such loans. This eliminated much of the stigma from discount window borrowing and enabled troubled banks to come to the Fed directly for funding, pay only a slightly higher interest rate but also secure these loans for a period longer than just overnight. Continue reading »

Tags: Bailing, banks, bubble, Commodities, Congressman Ron Paul, crisis, Fed, Federal Reserve, investment, monetary policy, Primary Dealer Credit Facility, Ron Paul, taxpayers, Term Auction Facility, Term Securities Lending Facility, Treasury Department, Wall Street

A foreclosure sign in Florida. Photograph: Joe Raedle/Getty Images

America’s mortgage crisis has spiralled into “the largest financial shock since the Great Depression” and there is now a one-in-four chance of a full-blown global recession over the next 12 months, the International Monetary Fund warned today. Continue reading »

Tags: Bank of England, Bear Stearns, crisis, Federal Reserve, finance ministers, financial, financial crisis, G7, GDP, George Bush, global, Great Depression, IMF, Recession, shock, U.S.

See Maude Barlow’s latest book:

Blue Covenant: The Global Water Crisis and the Coming Battle for the Right to Water

Tags: Battle, Blue Covenant, climate change, crisis, desert, desertification, earth changes, global, Global Warming, Right, The Corporation, the man who fell to earth, water

Al Gore at the UN climate change conference in Bali in 2007.
Photograph: Jewel Samad/AFP/Getty images

· Huge drive for Congress action on global warming
· $300m TV campaign will focus on job opportunities

Al Gore yesterday launched a drive to mobilise 10 million volunteers to force politicians to act on climate change - twice as many as the number who marched against the Vietnam war or in support of civil rights during the heyday of US activism in the 1960s.

During the next three years, his Alliance for Climate Protection plans to spend $300m (about £150m) on television advertising and online organising to make global warming among the most urgent issues for elected American leaders.

The wecansolveit.org initiative aims to build up pressure on the next US president to support stringent mandatory emissions controls when they come before Congress, and take a leadership role at the renegotiation of the Kyoto treaty. Continue reading »

Tags: Al Gore, Alliance for Climate Protection, An Inconvenient Truth, Bali, Barack Obama, campaign, climate, climate change, climate change conference, Congress, crisis, Greenpeace, Hillary Clinton, John McCain, Nobel peace prize, United Nations Fund, wecansolveit.org