As you probably know, a chemical weapons attack occurred within Syria last week. Who did it? Why? What does it mean for the Assad regime? How involved will the U.S. become and will Russia step in? All good questions and ones, that we will probably get many answers to over the next week or maybe even less. From the reports that I’ve read, it looks like the decision to go forward with this war has already been made.
I usually try to break things down to their most basic pieces and then look at it from a distance to get the big picture. What I see here boils down to one thing, “the Petro dollar.” Actually this is two separate things. First and I do not believe foremost is that the West would like a gas pipeline to go through Syria. Syria does not want it nor does Russia as this gas from Qatar will compete with Russian gas supplies. Secondly, our economy is collapsing and the Federal Reserve needs to create more debt to reflate again. War has always been used as a tool to restart economies and I am sure that this is exactly the current thinking.
There is one more possibility here and I hesitate to even mention because the ramifications are so horrific. It is possible that we are so far offside financially that we will use this to “kick the table over.” Surely those in Washington have seen the Russian military buildup. Why if this was only about a pipeline, would we risk a World War? Surely our military cannot be thinking that Syria will go down like Iraq did if the Russians are backing them from day 1.
Please don’t consider me unpatriotic with the thought process I am about to write. I am a blood red American Patriot and I guess in the minority of those who believe unequivocally in The Constitution. That said, will Congress even get a chance to vote as to whether we go to war or not? Isn’t that the way it is supposed to be? What if not just the Russians come to Syria’s side, what if the Chinese do also? What happens if the first day or a few days does not go as planned? What if we had an aircraft carrier crippled or sunk? Or a couple of destroyers? Can we really afford a war? Now?
As for the last question, obviously the answer is no, we run huge deficits already, another war cannot be paid for from current receipts. I might also add that this is not to end up being a cake walk; the dollar will NOT receive its historic “flight to safety” bid. In fact, I would imagine that even 1 bad day might cause massive selling of dollars and treasuries. Going one step further, the Chinese would not even need to send any hardware or men to cripple our efforts. They could merely decide to sell $5 billion worth of Treasury securities every single hour 24 hours a day for just one week. This would equal some $700 billion which could be followed up by doubling this amount the second week if it didn’t collapse our financial system. There would be no need to sell the remainder as the markets would already be closed and interest rates would be well north of 10% or even multiples of this.
I am going to tell you that both the Russians and Chinese are well aware of our “fractional reserve” systems in both banking and with gold. This military action if it does occur within the next week or two tells me that in fact a deal HAS already been made by the G-20 to usurp the dollar as the reserve currency and is planned for announcement in Sept…This very well may be our “response.”
Whatever the case, I put forth a lot of speculation here and of course it is just an opinion but there are many dots that seem to connect easily. I would urge anyone and everyone to prepare for a different world where “everyday goods” become very difficult to obtain if not impossible. This is what happens in real war and if the Russians become involved then “real” may be an understatement. Needless to say, the price of gold could go to ANY level if it is even available for purchase.