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For months I’ve talked about the incessant push for a hot war. More times than not, my in box would fill up with people suggesting I was nuts, I was paranoid, there’s never going to be war, etc. etc.
Over the past week…nothing. Not a peep. Crickets chirping in the night. I guess maybe watching those missiles taking off from Destroyers in the Mediterranean, at least got them thinking that maybe, just maybe “some involvement” in “some war” could actually be real. Ya think?
So let’s first ask the simple question. Why on earth would the US want a real war? Well there’s several reasons actually, but the most significant of them is this… the old gal is going down in flames. Economically and morally we are bankrupt. When a nation, any nation, is drowning in debt, and its leadership has the morals of Rome’s own Caligula, they try and reignite the old glory years with wars. Always have, always will.
But our situation today is somewhat different than things were say 100 years ago. Back then, the closest thing to a global reserve currency was the British pound. That all changed after world war II and the Bretton Woods agreement. The Bretton Woods Conference, formally known as the United Nations Monetary and Financial Conference, was the gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire, to regulate the international monetary and financial order after the conclusion of World War II.
The world would use dollars as a reserve since the US was realistically the last standing nation of any influence that hadn’t gotten destroyed in the war.
By the time the late 60’s arrived, and Global leaders saw the US trying to support both social programs at home, while supposedly fighting communism abroad, they figured they couldn’t afford to do both. So, they didn’t really want all those “dollars” they had amassed since they feared inflation would rob them of value. Thus, they started exchanging paper dollars for physical gold. By the early 70’s, it was a waterfall. France was coming to the gold exchange window almost daily.
Nixon watched as the US gold horde was being dwindled daily, in return for what he knew was just fiat dollars. And thus…he “defaulted” on the world. When Nixon shut the gold window down, he screwed every nation that held dollars. Why? Because it was implicitly expressed that Governments; sovereigns had the right to exchange paper dollars for gold.
The minute he did that, nation upon nation said “But what are these dollars backed by?” Nothing. Hope. Dreams. And the ability to keep raising taxes on the poor American middle class.
Since that day, the value of the US dollar has declined. According to the United States Treasury itself, the dollar has lost 95% of its value. Obviously, nations didn’t want to hold all these dollars backed by nothing, knowing the US would print more and more of them, and found ways to exchange them for other valuables. Well that caused all manner of issues. Dollars were flooding back to the US. Dollars we didn’t want, so as to not spark inflation problems. Well, we got them. Lots of them. ( and the inflation)
The next brilliant idea to keep dollars in circulation around the globe, was to create OPEC, and then sign a blood treaty that if oil is sold ONLY IN DOLLARS, we would be the big brother protectors of the Saudi nations. Thus the “petro-dollar” was created. Since every nation on earth needs oil…and oil could only be had using dollars… they were still forced to hold reserves of dollars, despite not being backed by anything and losing value quickly.
As you can imagine, the world hated this set up. But they didn’t have any way to get around it. No one else had any real power, no one matched our economy. Anyone that tried to get around using other currencies tended to wake up dead. The US controlled the “SWIFT” system of money exchange around the world. Protest too much and they’d shut your country off. It was extortion 101.
But time marches on and things change. China continued to grow and grow. Russia went through its economic crash and wiped its slate clean. Other resource nations were becoming stronger. America’s ability to continue to force the world into using dollars has been getting weaker for over 40 years. Then over the last ten years, things sped up. The BRICS nations sort of held hands and said “We have to get beyond the ability of the US to cripple us at any moment with sanctions, and shutting off our ability to trade with each other”
Don’t you think they’ve noticed the pattern? If your nation didn’t have what we call a Rothschild based central bank… you would get attacked. The centuries old banking system, is the economic warfare unit of the world. If you have a Rothschild based central bank, you’re usually forced into loans you didn’t need at rates you can’t pay and then they’d just take your resources in exchange. If you don’t, you’re generally bombed into the stone age.
Therein lies one of the biggest reasons for all the nation toppling and sabre rattling we see today. The US is watching Russia and China set up foreign exchange banks utilizing Rubles and Yuans, and excluding the dollar. They’re watching the re-establishment of the old “silk road” of trade, and it scares the hell out of them. Any nation that doesn’t have a Rothschild central bank…is instantly on our hit list.
Libya wanted gold dinars for their oil, not dollars. He was overthrown and killed, his beautiful nation turned into a cess pool. Saddam was a bad guy, but kept the peace between most of the tribes. When he stopped taking dollars, he was overthrown. Guess who else has No Rothschild banks, likes Euro’s /Yuans and gold, and doesn’t want foreign nations installing nat-gas piplelines across his territories? Why… that would be Mr. Assad.
The US knows that the days of a US led global Reserve currency is dated. It is going to end. When it does, a lot of the “power” we had to push nations around goes away. It is my guess that they know that in the somewhat near future, military power is the only way they can control another nation, NOT via economic extortion. I think they’re trying to get all they can, while they can.
So, the game plan is and has been since the mid 90’s, to topple foreign governments, and install very US friendly leaders. Leaders that they know they can count on when the day comes where we can’t just “throw a switch” and shut them off from commerce. Leaders who will be glad to exchange bribe money in return for us raping their resources.
They know they can’t win a war against Russia, especially now that they’re best bud’s with China. But they feel they can “push them back”, keep them inside their own borders. They figure if they seal Russia inside itself, they can continue to rape the Balkans, Ukraine, and the Middle East.
But worse, maybe much worse, is that they feel if they can spark a hot war with Russia, they’ll get more defense spending, and the whole military/industrial complex will be flush with even more dollars. They “figure” that it won’t go nuclear because there’d be no winners. Well that theory is being challenged now too. In about 2009, the think tanks started coming up with the idea that if we got our defensive missiles in tight to Russia, we could launch a nuke strike on them AND…. Shoot down their retaliatory nuke launches before they got to their targets.
That’s dangerous thinking folks and I have to pray we never “test the system”. Over in N.Korea, there’s little doubt that “something” is going to happen there, and my guess is that we’re going to go in and take out their leadership. I think the reason that 150K Chinese are lined up on the border with N. Korea is because when the US does make its move, the Chinese will then advance, hoping to install their own puppet leader. I don’t think the US wants to try and redevelop N. Korea, they just want Kim out of there, and let the Chinese mop up the mess.
Until the great monetary reset happens, and it will… we’re going to continue to see this late stage push to get all we can. They’re going to try and lock down resources, gas, oil, copper, rare earths. Because after the reset…a lot will change, especially economic extortions. So to those who’ve called me nuts for suggesting we want and very well might get war… once you understand the grand scheme, it all becomes easier to see. I pray for peace and prep for the worst. Not a bad plan.
Monday the market showed its volatile side. After opening sort of flat, they went to work pushing things higher. By about 10:45 we had the DOW up over 65 and the S&P up 9. Things were going along well. Then….down we went, at one point the DOW was red by over 40 points. What was that about? Confirmed reports that China had sent 150K troops to its border with N. Korea.
But the plunge patrol got in gear and sure enough when the bell rang to close the day, we had made it to green on the S&P and the DOW…by a point.
With such a nice “save” you’d have thought they’d come in on Tuesday and tack on some points. Well it didn’t work that way. We opened sour and at one point we had the DOW down 120 points, the S&P down 15. Both indexes had LOST their respective 50 day moving averages and things didn’t look good. But bless their little hearts, they stopped the slide, and back up we went. When Tuesday ended, we were red by 6 little DOW points and 3 on the S&P. Amazing.
Today wasn’t so amazing. We opened slightly red and fell from there, soon down 85 DOW points and almost 10 on the S&P. That meant that once again we were under the 50 days. For a while between 1 and 2 pm, they started the climb higher and soon we were only down about 35 DOW points. But, it couldn’t hold and we ended the day with the DOW off 59, and the S&P off 8.
I think one of the biggest reasons that the “bounce” failed is because Rex Tillerson had met with Russian prime minister Lavrov and Putin himself and when they came out of the meeting you could tell it did NOT go well. Tillerson’s stating that he’s absolutely sure Assad chemical’d his own people and the Russians were saying, we’ve heard that before with Weapons of mass destruction in Iraq, and Gadhafi in Libya, Where’s the proof of this? It was not a pleasant press conference and both men looked irritated.
I was hoping that we were indeed going to kiss and make up, but no…as they said themselves, relations are at the lowest level since the cold war, or even worse.
The market has been trying to ignore the Middle East and the N. Korean mess, and even the US/Russian chest bumping. But I think that press conference bugged them a bit. It should. Tensions are very high.
But I think that in the short term the big deciding factor is going to be JP Morgan and Wells Fargo. Both release earnings ahead of the bell and if the market thinks they came up shy… we could be in for a correction. We have already closed under the 50 day moving averages for the first time since the election, and if the banks aren’t strong…we’re going down.
Of course if they have tarted up their releases into works of spectacular fiction and the market thinks they’re great, we could just as easily put in a 200 point up day. Yes, I think tomorrow is that important. NOTE>>> the market is closed Friday for Good Friday, don’t forget, and while I’m on it, let me wish you all a great Holiday. It’s a very special time for an awful lot of the worlds citizens.
Take care all, and during this Holiday season, deep in spirit…pray that calmer heads prevail.
On Friday we got the non farm payroll report, and boy…if the powers that be ever wanted to paint something to look perfect, this was their Rembrandt moment. Not only did the headline number beat the estimates of a gain of 235K by coming in at 257K; they went back and did some of the most aggressive “revisions” to prior reports that I’ve ever seen.
Let me paint the picture for you. According to our Government bean counters the last few reports have shown the most job gains in 17 years. They say that wage growth was the best since 2008, as they told us wages grew by 0.5%. The BLS did revisions to the entire year of 2014, and remember the “polar vortex” last January? They said at the time we only got 144K jobs. Now they say that looking back, it was really 247K. But that was nothing compared to what they did to November. Now they say November posted a gain of 465K jobs. That’s the most monthly gains since the tech bubble boom of the late 90’s. A time when there really were jobs galore.