I wrote Mission “UN” Accomplished on Monday and talked about how Iraq has not been put to bed and in fact has become an even bigger problem than it has been. Whether officially admitted or not, Iraq’s oil was the reason we were there in the first place. It was viewed as a source that we could both control and profit from. Unfortunately, this will most likely destabilize the entire region and create a brand new and much higher price range for oil. This is happening at a very bad time both economically and financially. The world’s economy is slowing demonstrably and the financial system is showing cracks, higher oil prices will only exacerbate the weaknesses.
The recent “find” in China that collateral either never was or has disappeared is now spreading to other ports and many more institutions. Even if the economy was strong which it is not, the fact that collateral is gone or never was will be devastating to the financial sector both in China and with financial institutions far away.
The recent “collateral” problem will surely spread to other markets as well, not just base metals. The one particular market where this is important is gold. “We” have argued for years that it just wasn’t there, it couldn’t be. “It couldn’t be” because more has been claimed than we knew existed. This is also the case for silver. Eric Sprott has argued that many “claimed” inventories cannot exist all at once as the total adds up to more than has been mined. This is the root of it, let me explain.
The world has existed on the words “trust me.” The world has followed what the U.S. ordered for many many years whether they liked it or not. After 1971 we were able to turn the worlds’ eyes away from our gold reserves by creating the artificial demand of the petrodollar. Now, oil is on the verge of trading and settling in many different currencies and the demand for dollars is about to dry up. This situation alone has been reason for the U.S. to go to war or depose rulers in the past. Now we have a situation where many nations all at once will shun the dollar, were Saudi Arabia to do this publicly I believe the dollar will drop 5-10% in purchasing power within a week’s time. They are probably already accepting non dollars privately.
Now we have the recent revelation that “collateral” does not exist, the result is that everyone will be scrambling for verification of collateral. This will be like a witch hunt and long standing agreements, friendships, cooperatives and even as big as treaties will be broken. Then, we must of course add religion into the mix.
This is how I see it. We are headed toward a global “shooting war.” WWIII in my opinion had already started and has been waged through the financial, technological and political markets. The financial markets have been held together by derivatives to show a placid picture; vanished collateral will upset the order further.
Because the “old world order” seems to be collapsing, a new world order will arise. There is no telling how this may shake out and who the ultimate partnership may be. We look now and see Russia and China partnering and isolating the U.S. The question remains, who is going to stand with the U.S.? Saudi Arabia and their oil? Europe who needs and receives energy from Russia (which is in the process of not arriving)? South American countries that have had the screws put to them by Wall St. for over 50 years? African nations whom we have ignored (while China has courted them)? I am not even sure that we could count Israel in our corner the way we have treated them over the last 5 years. Who? Who will stand with the U.S. while the new “teams” are being chosen?
I am truly fearful that lunatics who have been running the show finally realize that “the show is over.” I am afraid that triggers will be pulled and used as “blame.” Blame (cover) for an economy and financial system that is imploding behind the scenes. I am afraid that the powers that be will try to “cover” the reality that the Ponzi scheme is ending and will point to war as the reason …it all went south.
Many wars in years gone by were initiated because of poor economies and used to boost growth. The New York Times (shame on them) wrote this past weekend that the global economy is weak because there are not enough wars. The problem is that in today’s world, man has the ability to destroy the playing table. Paul Craig Roberts wrote 2 weeks ago that he believes the U.S. is planning a first strike and now believes that nuclear war can be won. He believes that Russia and China know that this strategy is in the works and may be forced to preempt our first strike. His thoughts may be found here.
Unfortunately, we have arrived at a point where the reality of bankruptcy is now about to be revealed by the lack of collateral. We are about to find out how fraudulent the world is and has been for at least 10 (maybe 101 since 1913) years. The danger is that those who committed the fraud decide to kick the table over in desperation. As the saying goes, desperate people do desperate things; the problem now is that Russia and China know this. I hope that Mr. Roberts is wrong but I am afraid that he is not.
All you need to do is look around for yourself. No, the mainstream media will not tell you about it even if they do scratch the surface for appearances. Iraq and the entire Middle East is a slow motion train wreck that is about to fast forward. Russia has shut off gas supplies to the Ukraine and the Ukraine retaliates by preventing Russian gas through to Europe. China hacks the U.S.; the U.S. hacks China and then puts Chinese officers on their most wanted list. These are all “declarations of war,” what do you think will happen when someone finds out that their “collateral” (gold) is missing?
“I hope that Mr. Roberts is wrong but I am afraid that he is not.”
I feel the same way, Bill. The article Roberts wrote yesterday is really scary. It’s entitled “Washington is Beating the War Drums.”
I can see Obama giving someone he doesn’t like a whack with his man-purse but going to war? I don’t think that he has anywhere near the stones for that. I CAN see him blundering into one out of sheer incompetence, however. Heck, guys, he couldn’t even hold onto Iraq for heaven’s sake.
The crooks on Wall Street and in Congress have lied and stole every thing they could.
If any one thinks the gold, which is the most valuable asset of all, is still safely tucked away in the vaults is still there, they should check theirself into the nut house.
As i wrote in a email to you today about what i did.I think you cleared up a lot of what i spoke.This might be a good time to get out of Dodge.I think they have more horses here than people.The door will be open.
yes Tom, got it.
Hi Bill, As always another great read. I wanted to share with you an article from an alternative news site.
Would love to hear your thoughts, and anyone else who might be interested in commenting. The reader comments are very telling, I think the only ones who don’t realize we are in serious trouble here is our government.
Fourth Turning Accelerating
By Jim Quinn
The Burning Platform
June 18, 2014
“In retrospect, the spark might seem as ominous as a financial crash, as ordinary as a national election, or as trivial as a Tea Party. The catalyst will unfold according to a basic Crisis dynamic that underlies all of these scenarios: An initial spark will trigger a chain reaction of unyielding responses and further emergencies. The core elements of these scenarios (debt, civic decay, global disorder) will matter more than the details, which the catalyst will juxtapose and connect in some unknowable way. If foreign societies are also entering a Fourth Turning, this could accelerate the chain reaction. At home and abroad, these events will reflect the tearing of the civic fabric at points of extreme vulnerability –problem areas where America will have neglected, denied, or delayed needed action.” – The Fourth Turning – Strauss & Howe – 1997
I particularly like the idea of the commenter below.
I like to hang a flag on my porch on patriotic holidays. I think this year I’m going to hang it upside down.
Admin thanks for a good overview on the progress of the turning.
16th June 2014 at 4:05 pm
“I like to hang a flag on my porch on patriotic holidays. I think this year I’m going to hang it upside down.”
May I suggest Gayle (only because I know you know how important words are) that instead of “I think this year I’m going to..” which connotes “..mm, maybe I will, I’m thinking about it”; that you word it in your mind as “This year I AM going to..” which is a statement of commitment to displaying a patriotic symbol in a state of distress. I’m glad you brought the idea up because:
What an excellent way of letting TPTB know that “We the People” are soooo on to Them, but Gayle doing it will only have meaning for her. Imagine thousands and thousands of Americans doing the same thing this July 4th. This idea could gain a lot of ground if the truth-telling websites mentioned would plant the seed in their readers’ minds. Let’s call it “Flipping Bernays’ Propaganda On It’s Head.”
And it can begin here….like with The Burning Platform.
Zero Hedge, Mike Krieger’s Liberty Blitzkrieg, Mike Shedlock, John Rubino’s Dollar Collapse, Jim Kunstler, John Hussman, Jesse’s Cafe Americain, Charles Hugh Smith, Karl Denninger…..what say you?
Year ago my parents put a friggin 30 foot flag pole in the backyard which faces the 6th green. On July 4th I WILL take the flag my mother was given by the Navy (served in the 40′s) when he died in 1999, and I WILL hang it upside down…..once I figure out how to work the ropes to get it up there.
It will probably f-up some of the golfers’s games when they see it. GOOD!
still a teeny tiny minority.
I guess the next article should be “Everything America touches goes up in smoke”. The bully is about to get an ass whooping and it will not be an easy fight. Failed policies always leads to war and bloodshed. No one on the top cares because they are not going to fight any of the battles. It is the people who suffer. Look at what ISIS is doing in Iraq, driving along the roads with civilians and shooting them off the roads. Same thing in Ukraine with people being killed by the bought and paid for war criminals leading this country money. Trust has been long gone, it is only the people who still think trust exists. It is better to spend your money to live now because you don’t know if you will tomorrow. Just save some gold and silver in case but enjoy the comfort we have now while it still here.
yes, enjoy “it” while still “normal”.
Another fine article, Bill.
However, my understanding is that Dr Roberts does not believe that a nuclear war can be won. The reason being the devastation that’s caused as regards nuclear winters. In other words, the human race cannot survive such a cataclysm – certainly not in its current form. The problem is when you have warmongers/neocons who passionately albeit psychotically believe that there is no point in having nuclear weapons unless these weapons are ACTUALLY used!
Hence (as suggested), Russia and China MAY be forced to launch a pre-emptive strike, even if, in the long run, there are no real winners.
I don’t know if you know this, but there’s an intelligence insider (goes by the name of W) who says something big is going to happen re silver come July. He has decoded messages in the silver markets (has a long track record, and not just silver markets) which pinpoint this. Apparently, this is how the wealthiest families on the planet communicate with each other.
The first one he decoded, on the day before he decoded it, the abolition of the Silver Fix was announced on the VERY NEXT DAY! Other intelligence insiders also point to July as being some sort of catalyst.
This of course remains to be seen. Either way, my gut and all I’ve read is telling me that if you haven’t got silver, if you haven’t put enough away, you’ll have a hard time getting your hands on any. Especially at these throw-away prices.
Thanks for the no-nonsense articles. Simple, straightforward and brilliant.