June 27, 2004
Jim Sinclair
The Plame situation, which is now coming to a head, is potentially the most serious fundamental market development in decades.
First of all, please understand that I do not speculate when I discuss fundamental situations with anyone. I know about what I speak or I keep silent.
What I am about to tell you is not hearsay, it is fact. The only other item equal to the $342 gold call that I almost begged you to do was to read the book “One Point Safe” by Leslie and Andrew Cockburn. I told you that the facts contained in this book were absolutely correct.
The CIA initiative that was the basis of the fact train concerning the determined effort to undo the open market for Weapons of Mass Destruction in the 90s in Austria is the initiative that was destroyed by the outing of Valerie Plame as an NOC-CIA operative.
I would prefer to think that neither the present administration - if they were involved - nor Novak knew what they were doing when they did it. I would also prefer to think that whoever outed Valerie Plame acted on emotion rather than considered forethought.
If indeed that wasn’t the case and the act was meant to be harmful, not only has this crime violated the Intelligence Identities Protection Act, it is in fact an act of treason by all involved. That is the law.
The cover company that Valerie Plame was connected with was Brewster-Jennings & Associates which has offices in Saudi Arabia, Boston and Washington DC. Their activities were not limited to those areas only but extended into the following countries
1. China
2. Iran
3. Iraq
4. Libya
5. North Korea
6. Pakistan
7. Russia
8. Syria
What occurred in their 23 years of work in these countries was compromised by the Novak article and whoever transmitted the name of the CIA-NOC to Mr. Novak.
This is so serious that in my opinion no mole, double agent or traitor in the entire history of the US has ever done the degree of damage that the Novak article did. It took apart so many operations and CIA-NOC operatives that its ultimate impact is probably incalculable.
When a man like Jim Pavitt retires within the same timeframe as Tenet, it has to be in total disgust as Mr. Pavitt was Plame’s mentor and boss - and infinitely qualified to be so.
Jim Pavitt has the qualities to lead this country because of his genius and the fact his heroism is unassailable. He is also a man who has the charisma and stage presence of the most famous men in US history.
This outing destroyed 23 years of Pavitt's work more effectively than any traitors could possibly have done. Effectively, this event has rendered the USA blind at the most inopportune time as Iran moves to control the Middle East via the takeover of its former enemy, Iraq, and that country’s ascendancy as a nuclear power.
Mr. Novak’s article has gouged out the eyes of this country, IMO. We are blinded. I don’t see how the outing added to the article or why it had to be used.
The legal theory that protects reporters is “Freedom of Speech” which flows into “Freedom of the Press.” However, US Supreme Court decisions have in constitutional matters dealing with freedom of speech held that the Constitution may not protect the citizen that yells, “Fire in a Theater” without any justifiable purpose.
This all boils down to one singular question and that is has the present administration and its financial king making backers become irreconcilably estranged? For if they have - as was the case between finance and President Nixon - we are on the threshold of a Watergate situation that might well be a hundred times worse.
We are certainly going to find out quite soon because when the Grand Jury investigation gets down to the President of the USA and he is represented by an private attorney, Mr. James Sharp, a criminal defense attorney, the decision in the form of an indictment of someone could be forthcoming very soon.
What this has to do with markets is quite simple. Should any administration become involved in defending itself because key members divulged state secrets that inflicted dire injuries, the consequences will cause the administration to totally lose focus on the matters at hand.
Since reputation of management has a significant influence on the common shares of any company, one can expect extreme pressure on the US dollar, the common share of USA Inc.
Since the people who have access to the highly secretive NOC list would include the President, the Secretary of Defense and the Secretary of State, one might question the immediate conclusion that in fact Mr. Novak’s source was the White House.
This information is not something an assistant to any of the above would be privileged to know or any member of the legislature for that matter no matter what Intel or National Defense Committee they saton. This is not something the National Security Agency would have access to either. The NOC list, the names and code names of the NOC-CIA agents, represents the greatest secret that the United States of America holds. Yes, it is that serious.
Benedict Arnold never committed such an act. The act of revealing this to an assistant is an outing in itself, IMO.
We will know shortly if something greater than Watergate is upon us. With the US dollar in such a fundamentally and technically weak position - sitting just over a “make it or break it” neckline - a new and infinitely more serious Watergate would affect the market violently and for years to come.
So get real and be prepared.
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