Curried Wealth Building
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June 19, 2011
Issue 152  -  Robbery!
The distribution of wealth throughout the world is continuing to be concentrated into fewer and fewer hands.  This, when it happened in the past, has eventually led to revolt.  The wealthy have a duty to ensure that things don't get too out of hand.  Unfortunately, as a graph I showed recently displayed, it's getting worse.  The more top heavy things get, the more restless the natives get, so to speak.  Of course once people get rich, they often get greedier and greedier.  I believe that is what's happening here:

Report: $6B missing in Iraq may have been stolen

Read more:

The man Congress put in charge of auditing the billions of dollars dumped on Iraq after Saddam Hussein was toppled has told the Los Angels Times he can't rule out the possibility that $6.6 billion in cash sent from the U.S. was stolen.

Special inspector general for Iraq reconstruction Stuart Bowen told the Times the missing money may represent "the largest theft of funds in national history."

It was not, it is crucial to note here, U.S. tax-payer dollars which have gone missing in Iraq. The money came from a special fund set up by the Federal Reserve Bank of New York with Iraq's own money -- funds which were withheld from the nation during a decade of harsh economic sanctions under Saddam.

Now, and here's the real kicker, Iraq wants it's money back. The Los Angeles Times says some officials in Baghdad have threatened to take the U.S. government to court to reclaim the missing loot. The last known holder of the funds, before they mysteriously disappeared into the dusty oblivion of post-war Iraq, was the U.S. government.

"Congress is not looking forward to having to spend billions of our money to make up for billions of their money that we can't account for, and can't seem to find," Rep. Henry A. Waxman (D-Calif.) told the Times. Waxman was head of the House Government Reform Committee which held hearings on U.S. waste, fraud and abuse in Iraq about six years ago.

Bowen has been a harsh critic of the way the U.S. government spent money in Iraq following the ouster of Saddam.

Speaking to CBS News correspondent Lara Logan in July 2009, he warned that "billions of dollars were wasted in the Iraqi reconstruction enterprise," and said a whole new approach was needed in Afghanistan.

Waste, fraud plague Iraq reconstruction

As for the missing $6.6 billion, Bowen did not tell the Times whom he believed might have made off with the tremendous sum of neatly packaged blocks of $100 dollar bills.

For almost a decade, when audits and reports surfaced about money being misspent or wasted in post-war Iraq, the finger has generally been pointed first at the generic "corrupt Iraqi officials," of which there are no-doubt many. But as the Times points out in its report Tuesday, "some U.S. contractors were accused of siphoning off tens of millions in kickbacks and graft during the post-invasion period."

The money in question was literally air-lifted into Iraq by the George W. Bush administration, which flew it into Baghdad aboard C-130 military cargo planes. Bush White House officials were worried in the immediate aftermath of Saddam's fall that Iraqis would revolt if salaries weren't paid and services deteriorated. In total, the Times says $12 billion in cash was flown into Iraq in 21 separate C-130 flights by May 2004.

Read more:
Just where did $6.6 billion dollars go?  Here is a million dollars in 100 dollar bills:
Now that doesn't seem too hard to make off with, right?  How about 6,600 of these briefcases?  Are we to believe that 6,600 of these cases could just disappear?  This would fill a room that was 8 feet high, 33 feet long and 25 feet wide. No one knows where that much money went?  We are the victim of a theft, and it's not from the supposed bad guys.  It's by the powers that be and their minions who continue to gut the middle class in this country.  Cue the spin to help cover things up:

The U.S. watchdog on Iraq reconstruction is disputing a report quoting him suggesting that $6.6 billion in Iraqi oil money entrusted to U.S. hands may have been stolen. 

The charge, if true, would make the theft of funds the largest in U.S. history, and has already angered Iraqis reportedly debating whether to sue over the missing funds. 

The Pentagon refuses to endorse the charge that the disappearing dollars were stolen -- either by greedy U.S. contractors or others involved in its movement from U.S. holdings to Iraq. And now, Special Inspector General for Iraq Reconstruction Stuart Bowen said he never said that $6.6 billion in missing money was swiped. 

"What we concluded in our previous audits is that it's been virtually impossible to account for what happened to that money," Bowen told Fox News in a telephone interview Monday, adding that criminal cases have led to the convictions of people who have stolen money from a special fund set up by the U.N. Security Council.

But Bowen said he did not mean to imply anything more when he answered a Los Angeles Times reporter's question about whether it would be serious if billions of dollars was stolen from the Development Fund for Iraq. 

"I said, yes, it would be a very significant serious crime," he said. "So yes, the reporter was correct that some of it, and perhaps a lot of it, has been stolen. But we don't have a factual basis to reach that conclusion. What we said over and over again is that the lack of controls created vulnerabilities to fraud, waste and abuse."

Bowen did not say where the Los Angeles Times derived the $6.6 billion figure in question, a figure that he didn't use.

After the U.S.-led invasion of Iraq in 2003, the Bush administration airlifted to Baghdad a total of $12 billion that was carried by tractor-trailer trucks from the Federal Reserve currency repository in New Jersey to Andrews Air Force Base in Maryland for reconstruction of the country.

Bowen said most of the money was deposited in Iraq's central bank for distribution to Iraqi ministries and contractors, but he doesn't know how much. 

"Iraq could have it all," he said. "They probably do have most of it."

The Pentagon has been unable to properly account for the $2.8 billion that it controlled under the Commander's Emergency Response Program, which allowed military commanders to spend money for  reconstruction projects. Bowen said the Pentagon's comptroller asked him last year to help audit the flow of money. 

"More important, we're trying to work with the Iraq government to find out what happened to the rest of the money," Bowen said.

Bowen emphasized that the missing money is not U.S. taxpayer funds. The revenues in the DFI come from among other sources -- Iraq's oil and gas exports, as well as frozen Iraqi assets and surplus funds from the now-defunct, Saddam Hussein-era oil-for-food program.

But previous audits have shown the Defense Department didn't do a good job of tracking the money and Iraqi officials told The Los Angeles Times that under a 2004 legal agreement, Washington is responsible for the missing funds.

Iraq's chief auditor and president of the Iraqi Board of Supreme Audit has warned Washington that Baghdad will sue if necessary to recoup the money.

"Clearly, Iraq has an interest in looking after its assets and protecting them," the newspaper quoted Iraqi Ambassador to the United States Samir Sumaidaie saying.

Bowen said the U.S. needs Iraq's assistance to obtain the bank data regarding the disbursal of the funds so that his office can close the books on jurisdiction over DFI by the end of the summer since it's been years since the U.S. has had control over it.

"We're going to account for it as best we can," he said.

Now if you actually read this article instead of just the DECEPTIVE headline, you will find that the money is unaccounted for.  It's gone!  This is a very key tool in the elites bag, headlines.  In our MTV society, there is a need for the quick hit and fast facts.  Headlines are used to drive consensus.  Most people don't read whole articles.  If a person glimpsed only the headline, one would think that we have the money or are just not sure where it is.  Not true.  The money has been stolen.  I imagine weeks from now we'll hear about confirmation that the money is gone.  This will be buried on page D34.
The whole system is now set up for theft and exploitation.  But how about those Tea Paritiers?  As I have predicted before, they won't be able to change much and it seems they are coming over to the majority's (read crooks) way of thinking:

House GOP retreating from borrowing freeze

Republicans say they want cuts to accompany higher debt limit

Posted: June 18, 2011
10:45 pm Eastern

By Bob Unruh
© 2011 WND

House Republicans appear to be retreating from the idea of an absolute cap on government borrowing, which could be obtained by simply doing nothing regarding the nation's statutory borrowing limit of about $14.3 trillion. But it's clear that the Obama spending plan remains a target for them as they try to address the government's massive spending.

While 34 members of the House GOP said in a new WND survey that they like the idea of simply freezing the nation's debt ceiling and cutting spending until the government complies, there were another 171 who said they could support an increase in the debt ceiling as long as there are significant new restrictions on spending.

Those include such proposals as a balanced budget amendment that would forbid future deficit spending, massive spending cuts and other fiscal reforms.

The same survey two months ago revealed that about 100 of the Republican representatives, who hold the majority in the House with 240 seats, were in favor of an absolute cap.

Well, well, well, if that doesn't make for a giant contradiction.  These "new" Republicans were going to turn the town upside down and get the fiscal house back in order, weren't they?  Guess they've now bought into Obama's definition of "change,"  more of the same.  If you assume that the "elected" officials have all the power, you are doomed to wrong decisions.  The moneychangers run all.  The congressmen can do some things, but typically it turns out with crazy results like this from California: 
$200,000 a year for a lifeguard?  $108,000 retirement, at age 51!  What is going on?  Evidently this isn't an isolated case.  Up and down the California coast this seems to be an average pay scale...for lifeguards!  The formula for calculating their retirement can supply 90% of what they full health care!  I've always wondered where the guy who wrote this book lived:
The system is completely broken with not many options for repair.  Drastic cuts in ALL government are required to right the ship, but that just isn't in the cards.  Until tax payers start voting for candidates other than the Reds and the Blues, it will just be more of the same. 
Of course gold and silver are your life boats and I hope you are loading up as the powers that be are starting to close the doors to precious metal ownership:  (zerohedge)
Trading Of Over The Counter Gold And Silver To Be Illegal Beginning July 15
From: <>
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading
To: xxx

Important Account Notice Re: Metals Trading

We wanted to make you aware of some upcoming changes to’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011.

In conjunction with this new regulation, must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET.

We encourage you to wind down your trading activity in these products over the next month in anticipation of the new rule, as any open XAU or XAG positions that remain open prior to July 15, 2011 at approximately 5:00 pm ET will be automatically liquidated.

We sincerely regret any inconvenience complying with the new U.S. regulation may cause you. Should you have any questions, please feel free to contact our customer service team.

The Team at   
This was the result of the Dodd Frank bill and it's not good for the little guy.  To trade gold or silver on the Forex now requires you to be an accredited investor (i.e. millionaire or a California lifeguard) or wanting to taking delivery in 28 days or less.  On most exchanges this will be almost impossible thereby locking out the little guy.  This is just the first step in the efforts of the elites to stop you from acquiring real money.   Physical metals have no counterparty risk or liabilities and are the ONLY true form of insurance.  Make sure you have acquired yours before the door is shut completely. 
GORO  (closed $22.10, down $2.10, average price paid $6)
GORO continued its downtrend.  I am more convinced than last week of the operation in place to drive the price down.  Whether this was to accumulate cheaper shares or to profit from shorting the shares will be better known this week.  Tuesday will be the annual shareholders meeting and I will be attending.  I will use this to gauge the behavior of the board and whether there is trouble or things are moving forward.   I expect news before the meeting as that has been their modus operandi the past few years.  If this news is great, the stock should move higher and the operation was to accumulate, if the news is average or nonexistent, than the shares will probably continue lower.  Will update next week with a report. 
Mexus Gold  (closed $.204, up $.014, average price paid, $.22) 
Mexus had news this week:
Mexus Gold US Eight Brothers and Cable Update

CARSON CITY, Nev., June 13, 2011 (GLOBE NEWSWIRE) -- Mexus Gold US (OTCBB:MXSG - News) is a company engaged in the evaluation, acquisitions, exploration and development of mining properties and conducts salvage operations for the recovery of precious metals. Mexus Gold Is please to provide the following updates on the following projects to our shareholders.

Eight Brothers Mine - Ocho Hermanos

The company has completed and tested our new automated sulfite ore processor for its high grade sulfite silver ore. Mexus has been working on this new equipment since March 2011, the latest tests of June 10, 2011 shows that it works very well. President Paul Thompson goes on to say, "Mexus is going ahead with a patent on this equipment as of June 10, 2011. This processor (Mexus Silver 1200) and its support equipment is completed and awaiting importation into Mexico."

Submarine cable recovery update

Mexus moving forward on the Submarine cable recovery; Mexus has ordered from Seatronics of Houston, TX a deep water magnetometer which we are expecting delivery on June 16, 2011. This new magnetometer is capable of surveying at a depth of 3000 feet, although Mexus will be using it at approximately 1000 feet. In preparation for its arrival, Mexus has built a custom hydraulic retriever capable of working at this depth. President Paul Thompson goes on to say, "This new equipment will first be used in Washington State waters where Mexus' cable crew has located and identified a section of its submarine cable. Mexus will be working for a short time in Washington waters before heading back to Alaska waters."

For a peewee operation these guys have a lot going on.  Their mine in northern Mexico is just about ready to get rolling as Paul, the president, has invented ANOTHER machine to make the separation of the ore much easier.  He already holds several patents for other inventions.  The cable retrieval is nearly ready to commence.  The plan is to pull roughly 500,000 pounds of cable in Washington, offload for processing, and then head north.  This cable should be worth roughly $2,000,000 and Mexus should be able to clear at least half of the that.  Oh, did I mention it would only take a week to collect that much?   If they can demonstrate that much production, there is no way the stock stays at current levels.  A $30 million company making $1,000,000 in a week?  I don't think so....
Still an excellent buying opportunity at anywhere under $.35 a share.  As I was finishing this up, it looks like the Mexus tug, the Caleb, is on the move in Washington (thanks Jim).  If you want to follow the boat yourself, go to and put the boat's name in the search box. 
Alexco Resource Corporation -  AXU  (closed $6.77, down .55, recommended at $7.90)
If this hits $6.50, that would be an outstanding entry point.  Of course it could go lower, but you will be getting a great stock at a great price which should payoff handsomely in the future. 
Stocks    (Current status, out, sold on March 18)
Holding off my buy back until a losing week.  Unfortunately, this was an up week.  Still planning to buy back 20% on a downturn.  My plan would increase the long position as the stock market falls.  Were a crash to occur, I would significantly increase my long position.
Physical Gold  (Closed $1,540,  up $8,  average price paid $395)
Physical Silver  (Closed $35.90,  down $.30,  average price paid $5.31) 
This week's video is a hoot.  Have a great week!