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Yesterday I featured a discussion of the oil “volcano” by Rick Ackerman.  I received quite a few positive comments on Ackerman’s article, so today I have decided to add a few more bombshells on the topic that were dropped by Jim Willie.  You really do want to read this.  If you think you understand what is happening before – well, you don’t – but Willie’s article will set you straight.  I think this topic is so important, I am inserting it at the beginning of the Daily, before any commentary on precious metals.  Anyway, there is not much to say about gold and silver other than they are forming a strong base and trading in a rather narrow range.  This may continue until the fourth quarter when all Hell should break lose.

A thorough discussion on BP and the oil catastrophe
By Jim Willie (www.goldenjackass.com)


A personal and investment friend is Tom U from Atlanta Georgia. He makes the case that the entire motive of British Petroleum is not to stop the leak but instead to capture the flow. Notice the final comment that confirms the Oil Volcano is in danger of growing, or connecting a second oil fissure to produce a gigantic new Oil Volcano. Tom U wrote, “I spent 30 years solving disaster problems, World Trade Center Cleanup in 1993, MGM Grand Hotel fire in 1980, Power Plants in Tel Aviv, and other sites around the world. The oil leak could have been cut 95% on the first day. As you might know, they have been monkeying around trying to cap the pipe. For what reason? So they can RETRIEVE the oil as opposed to stopping the leak. Remember, the pipe is 21 inches in diameter and one inch thick. This pipe was instantly severed by one of the two 48 thousand pound cutters. If their aim had been to simply cut the majority of  oil leaking and save the ecosystem, they could have simply created a crimping adapter for the most powerful cutters on earth. Instead they cut the pipe in order to make sure they can retrieve the oil so as to cut the cost of their liability damages. They could have simply crimped the pipe as easily as they cut it. We did it many times on broken water mains and leaking power pressure lines… Also, we used to sandblast hardened steel at about 1500 psi and could destroy it if we wanted to with ambient temp. At that depth and temperature at about 400 degrees, just tack on about 70,000 psi and that backs up what you are saying about the mouth expanding to seek another big leaking plume. It is getting worse by the minute.” THE MOTIVE IS NOT TO STOP THE OIL FLOW. Their goal at BP is to capture the oil flow, and to tolerate the risk of grandiose grotesque gargantuan ecological damage, the worst in human history. Regardless of ongoing haphazard efforts, the natural geological forces are working to join a second nearby fissure, and possibly create a gigantic Oil Volcano a few miles (kilometers) in diameter!!!

THE GULF OF MEXICO OIL SPILL PROBLEM HAS TWO NEW THREATS, EXTENSIONS OF HUMAN STUPIDITY OR RECKLESSNESS OR BOTH. ANOTHER OIL VOLCANO LEAK LIES 5 TO 6 MILES AWAY. THE TOXIC CHEMICAL DISPERSANT USED BY BRITISH PETROLEUM COULD BECOME ACID RAIN OVER ALL THE EASTERN NORTH AMERICA REGION. THE TOXIC RAIN COULD KILL LIFE FORMS AT THE GROUND LEVEL OF THE ECOSYSTEM, AND WORK UPWARD.

The real nightmare could be the incredibly toxic dispersant that BP has been using in the Gulf of Mexico. Even the Russian Govt has entered the fray, indicative of the global impact potential. Their nation possesses entire time zones of open forests. The Russian Ministry of Natural Resources prepared a investigative report for Russian President Medvedev. In it, they warn that the BP oil leak in the Gulf of Mexico is about to become the worst environmental catastrophe in all of human history. The Russian scientists who compiled the report claim that usage of millions of gallons of the chemical dispersal agent known as Corexit 9500 by British Petroleum may cause an environmental nightmare of unprecedented magnitude. This dispersal agent being pumped in large continuous volume in the leak zone, at a water depth of more than one mile, is four times more toxic than oil.  It is actually one of the most toxic dispersal agents ever created. The millions of gallons of crude oil mixed with the dispersal agent will spread death and destruction wherever the water is carried.

The European Union Times explained in precise terms the potential impact for the eastern half of North America. They wrote, “A greater danger involving Corexit 9500, and as outlined by Russian scientists in this report, is that with its 2.61 part per million toxicity level, and when combined with the heating Gulf of Mexico waters, its molecules will be able to ‘phase transition’ from their present liquid to a gaseous state allowing them to be absorbed into clouds and allowing their release as ‘toxic rain’ upon all of Eastern North America. Even worse, should a Katrina like tropical hurricane form in the Gulf of Mexico while tens of millions of gallons of Corexit 9500 are sitting on, or near, its surface the resulting toxic rain falling upon the North American continent could theoretically destroy all microbial life to any depth it reaches resulting in an ‘unimaginable environmental catastrophe’ that destroys all life forms from the bottom of the evolutionary chart to the top.” See the Before It’s News article (CLICK HERE) and the Atomic News Review (CLICK HERE). Crude oil evaporates at a very quick rate, entering the atmosphere. It is toxic. The Corexit dispersant is four times more toxic. This time, the oil will contain the toxic dispersant, both of which will enter the rainwater cycle system. Gasoline evaporates even faster, by the way, a very unstable compound. Acid rain is a known killer of forests. This BP toxic rain could be worse, whose toxic clouds envelop segments of forests and kill the trees.

THE OIL VOLCANO POTENTIAL IN THE GULF OF MEXICO MIGHT SOON EXPAND INTO A MAJOR EVENT. REPORTS ARE CONFIRMED THAT STRUCTURAL DAMAGE HAS OCCURRED TO THE DEEP CASING 1000 FEET BELOW THE SEA FLOOR, WHICH PREVENTS CAPPING EFFORTS. EVIDENCE OF SEABED LEAKAGE AROUND THE DEEPWATER HORIZON SITE HAVE BEEN REPORTED. FURTHERMORE, ANOTHER LEAK APPEARS VISIBLE NEARBY.

Numerous reports come that major structural damage has been done to the deep casing 1000 feet below the ocean floor (NOT SURFACE), much farther below the actual visible leak shown endlessly on television. The breakdown of the hole casing means the oil rupture is more like an expanding volcano with the ground breaking down nearby. The Washington Post, Bloomberg, Wall Street Journal, and the Canadian press have reported on the expanded structural damage, and the impossible solution by conventional means to cap the leak. A disk within the bore hole has been malfunctioning, that prevents solid matter to seal the flow. Sources at two companies involved with the well said that BP also discovered new damage inside the well below the seafloor and that, as a result, some of the drilling mud that was successfully forced into the well was going off to the side into rock formations. Thus the failure of the Top Kill effort. Leakage of oil has come up through the seabed, the vast gulf floor. That indicates the Oil Volcano is spreading, and might soon suffer a grandiose eruption in a major event. A BP official spoke on the condition of anonymity, saying “We discovered things that were broken in the sub-surface. [Some drilling mud was escaping] out to the side, into the formation.” The structural damage means any attempt to intersect the hole source is likely impossible. Foremost expert Robert Bea, a University of California Berkeley engineering professor, believes that all efforts therefore to jam the hole and set a concrete plug would be greatly hampered. Bea is an expert in offshore drilling and a high level US Govt adviser on disaster management. The conclusion is simple. Without unconventional action, the major leak will continue for at least two years, maybe more. See the Washington Blog account (CLICK HERE). The combination of heat, pressure, particle flow, and acids are working in a powerful manner to create a gigantic Oil Volcano event. If it occurs, massive volcano plumes possibly with lava might erupt in the Gulf of Mexico above the water surface, viewable from the coast.

Matt Simmons is a renowned petroleum expert. On national television he recently claimed that “There is another leak, much bigger, 5 to 6 miles away” from the Deepwater Horizon site where the leaking riser and blowout preventer are located. Such an extraordinary statement by a respected industry expert on Peak Oil is highly significant. So the volume of oil in Gulf waters might continue and amplify, and accelerate further. See the YouTube video by Simmons (CLICK HERE).

It is called Platform #23051 in the Gulf of Mexico. The satellite analysis blog called SkyTruth has identified what appears to be another oil discharge coming from a rig located only a few miles from the Mississippi Delta. SkyTruth may have discovered a second smaller but persistent leak or oily discharge, one unrelated to the present Deepwater Horizon oil torrent promoted by British Petroleum. See the oil spew located near the platform location on multiple satellite images taken since April 25th, including the Envisat ASAR radar image. According to MMS data, the platform is located at 28.938022 degrees North latitude, 88.970963 degrees West longitude, translated to mean 12 miles east-southeast of the tip of the South Pass outlet channel of the Mississippi River. See the Sky Truth photos and descriptions (CLICK HERE).

DEBATE HAS BEGUN OVER A SOLUTION TO THE OIL SPILL, GIVEN THE LACK OF PROGRESS TO DATE. A PROPOSED SOLUTION OF A SMALL NUCLEAR BOMB DEVICE IS BEING CIRCULATED. CONTINGENCY PLANS ARE BEING DEVISED BY THE US GOVT. SUCH USAGE HAS PRECEDENT BY THE SOVIET UNION OVER 40 YEARS AGO. NO PAST EXAMPLE FOR UNDERSEA DETONATION EXISTS THOUGH.

As the ecological and economic damage spreads like wildfire, some scientists suggest the last resort, use a nuclear bomb to stop the leak in the BP oil spill. During the 1960 and 1970 decades, the Soviet Union successfully used nuclear devices to plug four leaking wells. Nuclear expert Christopher Brown explained how the bomb could be detonated underground in a separate well beneath the ocean floor. Extreme heat produced by the explosion would melt the well and surrounding rock, resulting to form a ‘Glassy Plug’ that would seal the leak. The Soviet Union tried the method to capped four gas wells in 1966, 1968, and twice in 1972. However, all applications although successful were conducted on inland sites. No underwater applications have ever been attempted. Nuclear fallout from radiation could cause other environmental hazards, like killing marine life anyway. Some experts claim that conventional bomb explosions, unlike the nuclear type, might open up new fissures that could make the leak unstoppable and much worse. The nuclear solution idea was rejected by White House, calling it crazy in their words. See the Hovied article (CLICK HERE). My source within the US Military and the US Dept Homeland Security tells me that contingency plans for a nuclear device used at the Deepwater Horizon site are being made right here and right now, as an emergency response. Check out the cartoon whose truth runs parallel, as both oil and debt pollute the United States as a nation.