It appears that Blythe fat fingered silver in the wrong direction this morning.

We can’t remember the last time we saw a dollar vertical move in silver outside of a QE announcement.

Gold bounced as well, but has since lost most of its gains, while silver continues to resiliantly hang on in the upper $41′s.

James Turk interviews Matterhorn Asset Management’s Egon Von Greyerz (one of the most brilliant minds in precious metals today) on the importance of owning physical gold (and silver of course) OUTSIDE the banking system.


If you don’t hold it, you don’t own it!

Three key metrics which strongly suggest that silver remains far from a bubble if not undervalued. The first is silver’s real price today adjusted for the inflation of the last 31 years. Silver’s real high in 1980 was $130 per ounce – more than double the price today (see chart above). The second is the gold silver ratio which has averaged 15 to 1 throughout history due to geology and the fact that there are 15 parts of silver to every 1 part of gold in the earth’s crust. The third metric is comparing silver’s current bull market to that of the 1970’s. Silver has risen by a factor of 10 in the last 9 years – from near $4 in 2001 to over $41 today. In its bull market from 1971 to 1980, silver rose by over 3,199% or by a factor of more than 32 in just 9 years culminating in the blow off top in 1979. Today, the physical supply of silver bullion is much less than in the 1970’s. Also there is the ‘Asian factor’ and 3 billion people with growing incomes, many of whom see silver as a store of value against currency depreciation. Demand for silver in Asia has been increasing and in China alone silver demand is increasing from a near zero base. The demand was not present in the 1970’s.

From Goldcore:

Gold and silver have fallen after yesterday’s gains due to the very poor consumer confidence data and Federal Reserve murmurings of further monetary easing. Gold is trading at USD 1,792.50, EUR 1,245.10, GBP 1,098.30, CHF 1,471.50 and JPY 137,624 per ounce. While silver is trading at USD 41.21, EUR 28.53 , GBP 25.31, CHF 33.33 and JPY 3,155 per ounce.

Silver Spot $/oz – G1 Daily 8/31/09-8/31/11, Bloomberg Finance
Gold’s London AM fix this morning was USD 1,826.00, EUR 1,264.19, GBP 1,121.14 per ounce. Gold fix was higher than yesterday’s AM Fix which was USD 1,791.00, EUR 1,243.49, GBP 1,097.56 per ounce.
Gold remains less than 5% from its record nominal high of $1,913.50 per ounce while silver remains nearly 20% below its record nominal high just below $50/oz.
Gold has stolen the limelight from silver in recent weeks with gold reaching a series of new record nominal highs.
But silver has been quietly consolidating after the sharp falls seen at the end of April and in early May when many claimed the silver ‘bubble’ had burst.
Media coverage of silver remains nearly nonexistent which is bullish from a contrarian perspective.
Technically silver is looking better by the day and is now trading not far above its 50 and 100 day moving averages (see chart above).
Today the 50 day moving average is trading at $38.70/oz and the 100 day moving average is trading at $38.74/oz. The 50 DMA is rising after recent price gains and looks set to cross the 100 DMA in the coming days. This will be a bullish technical signal.
Silver’s sell off was very sharp but volatility and a correction was expected and warned of once silver reached the nominal inflation adjusted high of $50 per ounce.
Value buyers continue to accumulate silver bullion. Jim Rogers, one of the most prescient investors of recent times and who arguably has a better track record than Soros in recent years, remains bullish on gold and particularly silver.
A tiny minority of retail investors has begun to look at silver, but it remains largely the preserve of the smart money, a very small amount of people in the United States and Europe concerns about currency devaluation and store of value buyers in Asia.
There are many factors that strongly suggest that silver remains a prudent buy and diversification today.
But there are three key metrics which strongly suggest that silver remains far from a bubble if not undervalued.

The first is silver’s real price today adjusted for the inflation of the last 31 years. Silver’s real high in 1980 was $130 per ounce – more than double the price today (see chart above).
The second is the gold silver ratio which has averaged 15 to 1 throughout history due to geology and the fact that there are 15 parts of silver to every 1 part of gold in the earth’s crust.

Gold Silver Ratio – 40 Year (Quarterly)
Silver, unlike gold, is an industrial metal and a very significant amount of all the silver that has even been mined has been consumed, like oil, since the dawn of the industrial revolution in the 19th century.
Most analysts with a long term view believe that the ratio is likely to revert to the mean of 15 to 1 in the coming years.
The third metric is comparing silver’s current bull market to that of the 1970s.
Silver has risen by a factor of 10 in the last 9 years – from near $4 in 2001 to over $41 today.
In its bull market from 1971 to 1980, silver rose by over 3,199% or by a factor of more than 32 in just 9 years culminating in the blow off top in 1979.

Today, the physical supply of silver bullion is much less than in the 1970s. Also there is the ‘Asian factor’ and 3 billion people with growing incomes, many of whom see silver as a store of value against currency depreciation.
Demand for silver in Asia has been increasing and in China alone silver demand is increasing from a near zero base. The demand was not present in the 1970s.
Were silver to replicate the performance of the 1970s it would have to rise 32 times or to $130/oz (32 X $4.05).
Interestingly, $130/oz is also silver’s real high from 1980.
Our long held belief that silver could reach the real high, inflation adjusted, of $130/oz remains. However price forecasts should always be taken with a pinch of salt and silver’s value is as financial insurance and a store of wealth that cannot be debased.
For the latest news and commentary on financial markets and gold please follow us on Twitter

SILVER 
Silver is trading at $41.31/oz, €28.60/oz and £25.34/oz.
PLATINUM GROUP METALS
Platinum is trading at $1,848.75/oz, palladium at $779/oz and rhodium at $1,800/oz.

NEWS
(Gallup)
Americans Choose Gold as the Best Long-Term Investment
(Reuters)
Gold edges down; eyes on Fed cues on stimulus
(Bloomberg)
Gold May Drop as Rally on Federal Reserve Minutes Prompts Investor Selling
(CNBC)
Italian Town Mints Own Money to Fight Austerity
COMMENTARY
(Forbes)
U.S. Elites Begin To Confront The Paper Dollar
(Money Morning)
Why Gold Will Replace U.S. Treasuries as the World’s Last Risk-Free Investment
(Business Insider)
Gerald Celente Disses Roubini After Moving 100% Into Gold
(GoldSeek)
Can we Trust Government Statistics on the Economy?
(Speculative-Investor)
Steve Saville – Gold: The Big Picture
(The Standard)
China punters sway gold market
(Wall Street Journal)
Gold’s Just Going to Run on Ahead and Price in QE3 for You

Slightly off topic of precious metals, we are happy to report that the US Appeals Court has found that cops arresting citizens for peacefully videotaping their actions is a clear violation of 1st and 4th amendment rights.

Michael Sedergren of MA was arrested and charged with criminal wiretapping, disturbing the peace, and aiding the escape of a prisoner after he used his cell phone to record several Massachusetts cops assaulting (literally punching) a young man they were arresting.
After the bogus charges were eventually dropped by the Boston DA, Sedergren filed lawsuits against the cops and the City of Boston for violating his 1st and 4th amendment rights.
The district court sided with Sedergren, the officers then subsequently appealed citing immunity, and Friday a US Appeals Court has validated the district court decision, stating that:

In our society, police officers are expected to endure significant burdens caused by citizens’ exercise of their First Amendment rights. See City of Houston v. Hill, 482 U.S. 451, 461 (1987) (“[T]he First Amendment protects a significant amount of verbal criticism and challenge directed at police officers.”). Indeed, “[t]he freedom of individuals verbally to oppose or challenge police action without thereby risking arrest is one of the principal characteristics by which we distinguish a free nation from a police state.” Id. at 462-63. The same restraint demanded of law enforcement officers in the face of “provocative and challenging” speech, id. at 461 (quoting Terminiello v. Chicago, 337 U.S. 1, 4 (1949)), must be expected when they are merely the subject of videotaping that memorializes, without impairing, their work in public spaces.

Perhaps cops will soon think twice before arresting those videotaping their actions.

Please see the entire decision below, as the case is crucial for the continuing freedoms enjoyed under our Bill of Rights.

10-1764P-01A

Three large silver inventory movements to report from Monday’s COMEX warehouse action, all in the eligible category.

COMEX WAREHOUSE SILVER INVENTORY REPORT 8/30/2011

*Brink’s had a large withdrawal of 584,750 ounces out of eligible vaults

*No Changes for Delaware Depository, JP Morgan, or HSBC

*Scotia Mocotta received a large deposit of 596,377 ounces into eligible vaults
*Scotia Mocotta also had a withdrawal of 41,008 ounces out of eligible vaults

*TOTAL REGISTERED COMEX Silver remained unchanged at 32,146,141 ounces
*TOTAL ELIGIBLE COMEX Silver declined a net 29,381 ounces to 74,745,273 ounces
*TOTAL COMEX Silver Inventories declined to 104,891,414 ounces.

Again, for those new to the silver/gold market wondering about the difference between eligible and registered categories, please see The Doc’s explanation here.

Stewart Thomson discusses the head and shoulders chart formation being painted in the gold charts by the cartel (As also discussed recently at TFMetals), and gives excellent advice that can be used for both silver and gold.
Stop attempting to trade your physical positions by “timing” gold and silver corrections.
This is an act of absolute stupidity.  Use corrections to ACCUMULATE ADDITIONAL gold and silver.

This crisis can only be ended by a massive revaluation of gold, either directly, or through money printing as the official policy of the US Treasury & Federal Reserve. The bottom line is that the crisis can’t be solved, but it can be ended. It ends with the marking to market of the real balance sheet of the world, which means the average person is marked to extreme poverty.


Selling what gold you have now, in size, to “get it cheaper”, demonstrates a complete lack of understanding of what gold is, what this crisis is, and is an act of absolute stupidity.


Similar actions have brought nothing but overall harm from $250-$1900, and they will bring exponentially greater harm going forwards, with “breadline time” now on the table as the real downside risk for the world’s flip traders who insist on engaging in dollar-obsessed market action.


Now is a time to trade less, appreciate more, and embrace all gold sales. Don’t predict a gold sale. Appreciate it when it happens.
Click here for more:

Back in March when NATO first initiated a “No Fly Zone” invasion of Libya, we speculated whether the REAL purpose of the invasion was GOLD, rather than oil.
Five months later, it appears that speculation couldn’t have been more correct, as RT reports that Gaddafi was in the process of creating a GOLD DINAR currency for the MENA countries to trade for oil rather than US dollars when NATO began its invasion.

Can’t be having all of the Middle East/ North Africa trading their oil for real money now, can we?

We wonder how much longer until NATO will deem a regime change necessary on Jim Sinclair’s Connecticut farm.

BrotherJohnF analyzes silver’s long term chart in his latest, and looks for silver to break out of its long term wedge formation to the upside (potentially forming a large cup and handle).

Chicago Fed President Evans was just interviewed by CNBC’s Steve Liesman, and proceeded to demand additional Quantitative Easing, specifically stating that we “still need to do more on monetary policy” and that there is “room for accommodation“. 

Gold and silver heard the message loud and clear, vaulting $40 and nearly $1 almost instantly.

VANCOUVER, BRITISH COLUMBIA–(Marketwire -08/26/11)- Pan American Silver Corp.   (TSX: PAA.TO – News)(NASDAQ: PAAS – News) (“Pan American” or the “Company”) today announced that the Toronto Stock Exchange (the “TSX”) has accepted the Company’s notice of its intention to make a normal course issuer bid (the “Bid”) to purchase up to 5,395,540 of its common shares, representing up to 5% of Pan American’s issued and outstanding shares as of August 24, 2011.   Purchases pursuant to the bid will be made on the open market through the facilities of the TSX and the Nasdaq Global Select Market (“NASDAQ”).   The period of the Bid will begin on September 1, 2011 and will continue until August 31, 2012 or an earlier date should the Company complete its purchases.
Pan American will pay the market price at the time of acquisition of any common shares in accordance with the rules and policies of the TSX and NASDAQ and applicable securities laws.   All common shares acquired by the Company under the Bid will be cancelled and purchases will be funded out of Pan American’s working capital.   Although the Company has a present intention to acquire its common shares pursuant to the Bid, it is not obligated to make any purchases.   Pan American has not acquired any of its own common shares within the past 12 months.
As at August 24, 2011, the number of Pan American’s issued and outstanding common shares totaled 107,910,802.   In accordance with the rules of the TSX, the maximum daily purchases on the TSX under this normal course issuer bid will be 77,639 common shares, which is 25% of the average daily traded volume for the Company’s common shares on the TSX for the six months ended July 31, 2011.   In accordance with the rules of NASDAQ, the maximum daily purchases on NASDAQ under this normal course issuer bid will be 25% of the average daily traded volume for the Company’s common shares in the four weeks preceding the day on which the purchases are to be made.
Pan American is undertaking the Bid because, in the opinion of its board of directors, the market price of its common shares, from time to time, may not fully reflect the underlying value of its mining operations, properties and future growth prospects.   The Company believes that in such circumstances, the outstanding common shares represent an appealing investment for Pan American since a portion of the Company’s excess cash generated on an annual basis can be invested for an attractive risk adjusted return on capital through the Bid.
A copy of the Company’s notice of its intention to make a normal course issuer bid filed with the TSX can be obtained from the Corporate Secretary of Pan American without charge.
About Pan American
Pan American’s mission is to be the world’s largest low-cost primary silver mining company by increasing its low-cost silver production and silver reserves.   The Company has seven operating mines in Mexico, Peru, Argentina and Bolivia.   Pan American also owns the Navidad silver development project in Chubut, Argentina and is the operator of the La Preciosa development project in Durango, Mexico.

Contacts:

Pan American Silver Corp.

Kettina Cordero

Coordinator, Investor Relations

(604) 684-1175

(604) 684-0147 (FAX)

info@panamericansilver.com

www.panamericansilver.com

Silvercorp Metals Inc.: Update on Normal Course Issuer Bid

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Aug. 26, 2011) - Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) (“Silvercorp” or the “Company”) announces that to date, pursuant to its normal course issuer bid (“NCIB”) announced on June 17, 2011, it has acquired a total of 1,624,233 of its common shares at an average price of CDN$8.18.
The Company is purchasing its own shares because it believes that prevailing market conditions have resulted in Silvercorp’s shares being undervalued relative to the immediate and long term value of Silvercorp’s portfolio of producing and development properties in China and Canada. The Company notes that the short interest position in its common shares has climbed from 3.6 million as of July 29, 2011 settlement date to 9.6 million as of August 15, 2011 settlement date, the most recent date for which short interest data is known by the Company. Under the existing NCIB the Company intends to acquire up to 10 million common shares. All common shares purchased under the NCIB will be cancelled.
About Silvercorp Metals Inc.
Silvercorp Metals Inc. is engaged in the acquisition, exploration, development and mining of high-grade silver-related mineral properties in China and Canada. Silvercorp is the largest primary silver producer in China through the operation of the four silver-lead-zinc mines at the Ying Mining Camp in the Henan Province of China. The Company is developing its GC silver-lead-zinc mine in the Guangdong Province and recently acquired the BYP gold-lead-zinc mine in Hunan province. In Canada, Silvercorp is preparing to apply for a Small Mine Permit for the Silvertip high grade silver-lead-zinc mine project in northern British Columbia to provide a further platform for growth and geographic diversification. The Company’s shares are traded on the New York Stock Exchange and Toronto Stock Exchange and are included as a component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.
FOR FURTHER INFORMATION PLEASE CONTACT:

Rui Feng

Silvercorp Metals Inc.

Chairman/CEO

(604) 669-9397 or Toll Free: 1-888-224-1881

OR

Lorne Waldman

Silvercorp Metals Inc.

Corporate Secretary

(604) 669-9397 or Toll Free: 1-888-224-1881

(604) 669-9387 (FAX)

info@silvercorp.ca

www.silvercorp.ca

The United States M2 money supply accelerated 2.2% in July from the prior month, the fastest pace in 52 years, and grew 8.2% yoy, the highest reading in 23 months. The correlation between total U.S. M2 and gold has held above 0.90  since November 2004, as currency debasement creates safe haven buying for the precious metal.
At the moment Asians seem more worried regarding inflation but this sort of money supply growth is likely to lead to inflation in the U.S and much of the western world.

From Goldcore:
Gold is higher against most currencies and especially the euro. Gold is trading at USD 1,792.50, EUR 1,245.10, GBP 1,098.30, CHF 1,471.50 and JPY 137,624 per ounce.
Gold’s London AM fix this morning was USD 1,791.00, EUR 1,243.49, GBP 1,097.56 per ounce. Gold fixed marginally higher than last Friday’s AM Fix which was at USD 1,787.00, EUR 1237.10, GBP 1,094.17 per ounce which suggests physical demand is supportive at the $1,800 level.

Cross Currency Table
Asian equities rose again today but China’s stock markets were again lower on concerns about the Chinese and global economy. Initial gains in Europe have turned to weakness but the FTSE is higher as it plays catch up after being closed yesterday.
The mooted German proposal to use periphery nations’ gold reserves as collateral was back on the agenda in Germany yesterday.
The Irish Times reports that in an interview with Der Spiegel in Berlin, influential senior minister Dr. Von der Leyen called for a guarantee system to secure loans issued until the permanent rescue fund ESM, with its inbuilt guarantee mechanisms, comes into effect in 2013. “The task of my generation is to create a united Europe. The problem is that, after the introduction of the euro, we simply stood still,” she said.
“For the labour minister, an ad-hoc collateral system on gold reserves or state assets would discipline national governments and prevent the current bailout regime going the way of the stability pact.”

Fastest Money Supply Growth in 52 Years Supports Gold’s Surge 
The United States M2 money supply accelerated 2.2% in July from the prior month, the fastest pace in 52 years, and grew 8.2% yoy, the highest reading in 23 months. The correlation between total U.S. M2 and gold has held above 0.90  since November 2004, as currency debasement creates safe haven buying for the precious metal.
At the moment Asians seem more worried regarding inflation but this sort of money supply growth is likely to lead to inflation in the U.S and much of the western world.
Premiums for physical bullion in Asia remain high showing continuing strong demand.
Indian premiums were strong again yesterday as were those in Vietnam and Shanghai.
Reuters reports that Hong Kong dealers quoted premiums for gold bars as high as $1.50 an ounce to spot London prices, from $1.20 last week. Bullion markets were closed in Singapore, Indonesia and Malaysia for the Muslim Eid al-Fitr festival.
Physical dealers in Tokyo saw selling from local investors, but they also noted buying interest from China, where demand for jewelry increases during the mid-autumn festival in September.
Journalist John Brimelow, who publishes the JBGJ, reports in Lemetropolecafe.com that according to the Shanghai Gold Exchange website a “substantial proportion” of the trade there is for delivery.  “This is not just a paper phenomenon.”
Brimelow said that “bearing in mind the huge gold importing by China in the latter part of last year, in JBGJ’s opinion this is currently the key issue in the gold market.”
The UBS daily note reports that “the mood among gold investors appears to be to buy the dip rather than chase the market, which is understandable given last week’s volatility.”
UBS conclude that the “violent sell-off hasn’t done any lasting damage to gold, and the reasons investors bought gold in recent months remain valid. Our one-month forecast of $1950 remains in place.”
UBS three month price view is $2,100 per ounce.
Very significant demand being seen for bullion internationally and especially in Asia means that gold’s correction is likely to again be of short duration. Indeed, the scale of demand suggests that gold may not need a long period of consolidation and could again surprise to the upside.
Non gold experts, many in the financial services industry, continue to warn of a bubble. Their analysis is extremely simplistic and almost exclusively based on recent price action.
However, the majority of those in the industry and the majority of gold market analysts remain bullish.
Throughout August, prior to the recent record nominal high and subsequent selloff, many banks raised their forecasts for the year.
SocGen raised its average gold price forecast to $1,950 an ounce for the fourth quarter of 2011 and to an average of $2,275 per ounce in 2012.
Bank of America-Merrill Lynch said in a research note it was revising its 12-month gold target to $2,000 an ounce.
JPMorgan said that gold could reach over $2,500 per ounce prior to year end.
The recent sell off has not seen banks and analysts revise down their price forecasts.
GoldCore has said since 2003 that the real high of $2,500 per ounce (inflation adjusted and based on CPI) would likely have to be reached prior to gold being a bubble.
Those informed about the gold market know that absolutely nothing has changed about the supply and demand dynamics driving the gold market.
For the latest news and commentary on financial markets and gold please follow us on Twitter.

SILVER 
Silver is trading at $40.90/oz, €28.38/oz and £25.05/oz.
PLATINUM GROUP METALS 
Platinum is trading at $1,829.50/oz, palladium at $762/oz and rhodium at $1,800/oz.

NEWS
(Wall Street Journal)
Gold buoyed by uncertainty ahead of Fed minutes
(Reuters)
Gold inches up after 2-percent fall‎
(San Francisco Chronicle)
Gold Rebounds as Steep Declines Seen as Excessive Amid Debt Woes
(Bloomberg)
Gold Sales in India May Increase 25% During Festival Season, Jeweler Says
(Reuters)
India gold seen gaining on bargain buying
COMMENTARY
(CNBC)
Gold 2011 – Special Report – Asian Consumers Driving Demand For Gold
(Resource Investor)
Gold, Politics, and Venezuela
(GoldSeek)
The Many Collapses of Keynesianism
(ZeroHedge)
Compare And Contrast To The Great Depression: In Three Parts
(The Guardian)
Currency war feared if nations move to defend industry

The FDIC has rejected the Bank of America settlement regarding mortgage bonds.

Que the resumption of BAC bankruptcy fears/ rumors.

Please pass the popcorn Sterling!

FDIC BOA Petition

We have several large inventory movements to report from Friday’s COMEX warehouse inventory data, including a massive 1.4 Million ounce REGISTERED silver withdrawal from the Brink’s vault!
For those wondering the difference between registered and eligible COMEX silver inventories, The Doc attempted to explain the differences here over the weekend.

COMEX WAREHOUSE SILVER INVENTORY REPORT 8/29/2011

*Brink’s had a massive withdrawal of 1,382,612 ounces out of REGISTERED vaults
*Brink’s had another large withdrawal of 600,934 ounces out of Eligible vaults

*The Delaware Depository had a small withdrawal of 2,814 ounces out of eligible vaults
*The Delaware Depository also reported an adjustment of 2 (yes, you read that right, TWO) ounces into eligible vaults)

*NO CHANGES FOR JPM OR HSBC.
Yawn.

*Scotia Mocotta had a large deposit of 1,581,998 ounces into eligible vaults

*TOTAL REGISTERED COMEX Silver Inventory declined by 1,382,612 ounces to 32,146,141 ounces
*TOTAL ELIGIBLE COMEX Silver Inventory increased a net 978,252 ounces to 72,774,654 ounces
*TOTAL COMEX SILVER INVENTORY declined to 104,920,795 ounces

Ron Paul has issued an editorial on his blog discussing the NATO Libya invasion over oil (we believe it is also about Libyan gold) and whether Syria is next.

Americans may be tempted to celebrate the apparent victory of US and NATO backed rebels in Libya, since it seems the Gaddafi regime is overthrown. But I believe any enthusiasm for our Libyan misadventure is premature.
The Obama administration attacked Libya without a constitutional declaration of war, without congressional authorization, without meaningful consultation with Congress — and without a dollar being authorized from the House or Senate.  It was a war started by a president who turned to the United Nations for its authority and ignored the authority of the US Congress.

From Ron Paul:

Even as a major hurricane hit America’s eastern seaboard, the administration is determined to expand the war in Libya while threatening the regime in Syria.  Is there any limit to government’s appetite to create more problems for our nation and economy?
Americans may be tempted to celebrate the apparent victory of US and NATO backed rebels in Libya, since it seems the Gaddafi regime is overthrown. But I believe any enthusiasm for our Libyan misadventure is premature.
The Obama administration attacked Libya without a constitutional declaration of war, without congressional authorization, without meaningful consultation with Congress — and without a dollar being authorized from the House or Senate.  It was a war started by a president who turned to the United Nations for its authority and ignored the authority of the US Congress.
Are we better off as a nation by ignoring and debasing our Constitution?  Are we better off having spent more than a billion dollars attacking a country thousands of miles away that had not threatened us?  Are we more financially sound having expanded the empire to include yet another protectorate and probable long-term military occupation?  Are we more admired throughout the world for getting involved in yet another war?
Still, many will claim that getting rid of Libyan ruler Gaddafi was worth it. They will say that the ends justify the means. As the civilian toll from NATO bombs adds up in a war started under the guise of protecting a civilian population, even the initial argument for intervention is ridiculous. We should not forget that there were no massacres taking place in Libya before the NATO attack. The attack was a dubbed a preventative humanitarian intervention.  But as soon as NATO planes started bombing, civilians started dying.
Gaddafi may well have been a tyrant, but as such he was no worse than many others that we support and count as allies. Disturbingly, we see a pattern of relatively secular leaders in the Arab world being targeted for regime change with the resulting power vacuum being filled by much more radical elements.  Iraq, post-Saddam, is certainly far closer to Iran than before the US invasion.  Will Libya be any different?
We already see grisly reprisals from the US-backed rebels against their political opponents.  There are disturbing scenes of looting and lawlessness on the part of the rebels.  We know that some rebel factions appear to be allied with Islamic extremists and others seem to have ties to the CIA.  They also appear to have a penchant for killing each other as well as supporters of the previous regime.  The tribal structure of Libyan society all but ensures that an ongoing civil war is on the agenda rather than the Swiss-style democracy that some intervention advocates suggest is around the corner.
What is next after such a victory?  With the big Western scramble to grab Libya’s oil reserves amid domestic political chaos and violence, does anyone doubt that NATO ground troops are not being prepared for yet another occupation?
Neo-conservatives continue to dominate our foreign policy, regardless of the administration in power.  They do not care that we are bankrupt, as they are too blinded by their desire for empire and their affection for the entangling alliances we have been rightly counseled to avoid. They have set their sights next on Syria, where the US moves steadily toward intervention in another domestic conflict that has nothing to do with the US.  Already the US president has called for “regime change” in Syria, while adding new sanctions against the Syrian regime.  Are US bombers far behind?