Archive for Economy

Will Negative Oil Prices Finally End the Petrodollar… and America as We Know It?

Image Source: https://www.sbcgold.com/blog/will-petrodollar-collapse/

Yesterday, the “impossible” happened.  Oil traded below $0.  In fact, not by a little, but by up to $40 dollars.  Not only is oil now cheaper than water, but it is so cheap, producers are having to pay people to take it.  The energy markets are imploding.  Obviously, this isn’t a sustainable situation and horrific for anyone invested in the energy market.  However, while all the talking heads are focused on the immediate problems this creates, a far bigger financial storm is brewing that no one in the mainstream media (MSM) dares to discuss. This financial storm has a very real potential of spiraling out of control and destroying the reserve status of the U.S. Dollar by disrupting, if not destroying, the Petrodollar.  The impact would not be some distant crisis in the Middle East, but would be the destruction of the standard of living every America has come to know and expect.

Many have heard the term “Petrodollar,” but few understand what it represents and how critical it is to America’s global dominance.  Here are two links to help: https://internationalman.com/articles/timing-the-collapse-ron-paul-says-watch-the-petrodollar/; https://www.investopedia.com/terms/p/petrodollars.asp The very simplified explanation is that almost all commodities (wheat, hogs, gold, oil, etc.) are traded and settled globally in U.S. Dollars.  This represents the broader application of the term Petrodollar, which was originally used to denote just the purchase of oil.  This means countries must purchase dollars to trade.  This arrangement is critical for the United States and came out of the post-World War II Bretton Woods financial agreement that established the U.S. Dollar as the world’s reserve currency.  At the time, the U.S. controlled most of the gold in the world and the dollar was backed by gold and redeemable for gold.  During the Nixon era, the U.S. announced it no longer would back its dollars with gold, which significantly decreased demand for dollars. To protect the dollar’s reserve status post-Gold Standard, the Petrodollar system was established. The system created a reliable buyer of our debt by Middle Eastern oil producers.  Since then, the U.S. has allowed the dollar’s value to float in order to finance trillions of dollars in subsequent debt spending.  This has led to a steady devaluation of the dollar.  In spite of this, the dollar is still the best bet in town and countries continue to use it as the primary means of settling trade and storing wealth. The Petrodollar arrangement, in effect, has allowed the U.S. to create and spend enormous sums of money without massive inflation since there has been a large and reliable source of buyers for our debt in the form of U.S. Treasury Bonds and users of the U.S. Dollar for trade.  Note that treasury bonds are the biggest category of U.S. debt and are backed by the U.S. government’s ability to tax in order to pay back the debt issued through the bonds.  Up until now, this has generally worked since the demand for dollars has counterbalanced the supply of dollars, which has maintained a reasonable stasis in currency value.  However, we have just experienced the most destabilizing impact in modern history on this relationship.

Specific to the Petrodollar, the U.S. has had a longstanding deal with the major Middle Eastern oil producers to buy their oil in dollars in exchange for them to use our dollars to buy massive amounts of our treasury bonds (our debt).  To maintain this relationship, we have “looked the other way” and provided significant political and military protection to these countries; despite the fact they are brutal totalitarian monarchies and about as un-American as it gets.  Now, as oil demand continues to plummet and global commerce vapor locks, much as predicted in previous articles, this is creating a situation where no one has the ability to buy our treasury bonds (our debt). Simultaneously, the use of U.S. Dollars drops off a cliff.  Compounding that situation is the need for nations holding our treasury bonds (our debt) to cash out their holdings to finance covering the cost of their economic losses incurred as the pandemic spreads across the globe.  This is occurring just as the U.S. is creating massive amounts of additional dollars (more debt), which it needs to sell in the form of treasury bonds to finance its domestic bailouts.  This is creating a perfect storm.

Remember, the purchase of our debt by Middle Eastern oil producers has been a critical cornerstone of the dollar’s survival since the currency was removed from the Gold Standard.  Ultimately, there are only two ways this debt is paid for.  It is either paid back by higher taxes or by creating more money and additional debt, which causes inflation and then hyperinflation if no one is able or willing to buy the debt.  The latter appears to be what is developing as the big buying oil producers go broke and no politician in Washington is ready to roll out a huge tax hike on Americans.  Historically, when presented with this situation, governments have opted for printing cash and obliterating the value of their currency.  This has always led to a currency crisis. Once the stability of a currency is in question, people abandon its use. For the U.S. Dollar, this would mean its use as a reserve currency would end or be heavily diminished. This is why the crisis could be catastrophic and no one from the MSM is willing to touch the subject. 

Make no mistake, we are still early in this crisis.  The global impacts are only just beginning to be felt and much is still unknown.  The crisis this pandemic has initiated (I say initiated since the U.S. economy was already in a massive bubble and primed to collapse) will persist for months and years, not weeks.  The economic consequences may well last decades and lead to a total reset.  In addition, few have attempted to recognize the grim reality for what it is and think through the catastrophic consequences of how the collapse of the Petrodollar could play out.  The dominoes have begun to fall and where they lead is truly scary.

So, what could this domino effect look like?  At minimum, the major oil producing countries in the Middle East are facing a legitimate crisis that is likely to topple some, if not most, of their monarchies if the depressed oil prices persist another six to twelve months.  Remember, these dictatorships have used their oil revenue to maintain power through brutal oppression and paying off their populations by generous welfare systems.  Without oil money, these hated regimes will fall and fall fast, which is one of the few silver linings of this unholy alliance with dictatorships.  With them will fall the Petrodollar.  Without the Petrodollar system, the U.S. will be facing staggering levels of inflation and the dollar’s status as the reserve currency will not only be jeopardized, but most likely lost.  This leads to even higher levels of inflation and a rapid collapse in the standard of living.  At this point, the U.S. government will be incapable of funding social welfare programs and sustaining the massive bureaucracy it created.  This leads to an endgame reset with social unrest and political upheaval.  Let’s hope this chain of events can be stopped, but the reality is at best, with close to $30 trillion in rapidly growing debt, the crisis can be only temporarily interrupted and delayed.  The endgame is now set.

Note: I am far from the first to point out the issues with the Petrodollar or suggest the system is or will collapse. However, I believe that unlike previously, we are in a situation where the reality is more likely than ever before. See: https://peakoil.com/business/the-coming-collapse-of-the-petrodollar-system; https://www.sovereignman.com/podcast/the-petrodollar-is-collapsing-and-its-one-of-the-biggest-opportunities-in-the-world-right-now-14975/; https://www.sovereignman.com/trends/the-last-time-this-happened-the-us-went-to-war-to-defend-its-interests-14979/; https://nationalinterest.org/feature/the-end-the-petrodollar-25002

By Guiles Hendrick

April 19, 2020

Absurdities of the Coronavirus Lockdown

Today is simply venting about the absurdities I have witnessed over the course of the last few months.  Feel free to comment and add to what amounts to a lengthy and admittedly far from comprehensive list.  I could care less if you agree or disagree.  This is simply an exercise in mental health. 

To start my list, I am tired of the idiotic retort of “the coronavirus is not really bad because (fill in the blank) kills (fill in the blank) people each year.”  This comparison logic is void of any understanding of the logarithmic spread of a contagious disease.  A fair analogy of this logic would be an officer on the first day of World War I and telling his soldiers that it’s absurd to worry about this new device called a machine gun because only a few people have been killed by them.  How about this instead?  In a matter of just a few months, the COVID-19 has wiped out more Americans than all of America’s senseless wars in the last forty years?  These are thousands of people that would be upright and walking and talking had a very nasty virus not hopped from China to the United States.  All deadly diseases start by killing a single person.  The point isn’t that only a single person has died; it’s how many people could die if it isn’t prevented. 

I am tired of talking about “peak” infections.  Does it really matter if 977 people die instead of 983?  Can we agree that its horrible either way?  As long as we have the virus in our communities it will rapidly spread.  Remember we started with zero infections and within weeks, absent social distancing, we had thousands of infections.  As such, I am curious how it is okay to start with, say 1,300 infections, and think that the result will be any different.

I am tired of people who can’t “deal” with reality.  Get over it snowflakes and toughen up.  Newsflash, you don’t have a right to the world being perfect.  You wanted to socialize everything else, so why not risk and hardship?  After all, that is the result of socialist policies so take good notes.  No matter how much you deny reality, you are not immune from the consequences of your denial.  In fact, it’s healthy your normalcy bias was shattered.  Look at it as being cured of a state of chronic mental illness for free.  Oh, and yes, it is possible you are faced with nothing but bad options.  A statement comes to mind that many grunts can appreciate, “welcome to the suck.” 

I am tired of the Left race baiting and trying to politicize the suffering during this pandemic.  The disease is not racist contrary to the absurd proclamations from these divisive subversives openly operating in the United States.  The disease kills irrespective of race, gender, or class much to the chagrin of these radicals.  Further, whether they like it or not, it kills unhealthy people at much higher rates.  I hope this wasn’t a big surprise.  In particular, if you are obese, chances are you have a pre-existing condition that will be exasperated by this disease whether you are a fat white person that smokes in Appalachia or a fat black person that smokes in the inner-city.  If you don’t like it, I would recommend accepting some responsibility and living a healthier lifestyle. 

I am tired of over-zealous police acting as if they are Gestapo agents demanding “your papers.”  “Voluntary” recommendations should be the operative term.  Going about your life…as in traveling, recreating, eating, working, visiting, etc. is not a crime.  Only in the worst of authoritarian regimes would a human be stripped of what amounts to one of the most basic human rights…the right to pursue the means of subsistence.  How exactly is jailing a person for walking down the street helping to prevent disease spread?   Our bureaucrats do not understand the most basic relationships between cause and effect.  These newly imprisoned people not only present a serious risk of bringing the disease into to the isolated prison population, but also acquiring it and then being released soon thereafter and spreading it back to the public.  Ironically, the unnecessary contact exposes our police and judicial officials to a far greater risk of infection, which may be a form of poetic justice.  The mounting number of government abuses from fines to outright imprisonment of citizens is intolerable. 

I am tired of neighbors ratting out each other as if they are informants for the East German Stasi.  I am all for outing these loyalists to the Crown.  What kind of self-respecting American calls the police on their neighbor for cooking out or playing catch in their own backyard?  Further, how stupid are these people?  Do they not know even the most basic facts about viral spread?  This is chilling.  Please do everything you can to shame these “Karens” into a bit more old fashion anti-establishment American rebellion for the good of everyone.

I am tired of releasing prison populations into unprepared communities.  Don’t get me wrong, I believe many thousands of people are unjustly imprisoned every year and many never should have been jailed.  I am not debating that point.  What is of concern is that thousands of convicted criminals are suddenly being released from jail with no money, no job, no place to stay and no hope of finding any of the aforementioned necessities under the current circumstances.  A thinking person would recognize this is rather destabilizing and could quickly lead to a spike in crime for any community victimized by a sudden dumping of inmates in their backyard. 

I am tired of people that have spent their entire lives supporting anti-gun measures suddenly racing out to buy a gun.  If you don’t own a gun yet, you should be prevented from purchasing a firearm until this crisis has passed.  The only background check should be to see if you have previously purchased a gun and are in good standing with the Second Amendment.  For once, the anti-gun advocates should have to suffer the consequences for blindly stating their entire lives that there is no reason for a person to own a gun.  Further, these people truly don’t know what in the hell they are doing with a firearm and epitomize everything they feared about reckless gun owners.  Now that these hypocrites are forced to admit that security could quickly deteriorate and the government cannot protect them, we shouldn’t let them off the hook before their lesson is learned. 

I am tired of the term “worker” as if we are some type of Bolshevik slaves.  Terms like citizens, employees, managers, business owners, or even a generic statement like people recently unemployed would be fitting, but President Trump unthinkingly taking his talking points from Bernie Sanders is a bridge too far.  Workers of the world unite!

I am tired of how people reflexively turn to the government for an immediate “fix” even though the government’s failures are to blame for the spread of the virus within the United States.  Why would anyone expect the organization most responsible for this colossal failure to have the solution?  Do people not realize hundreds of billions of dollars and entire organizations within  the Departments of Defense and Homeland Security (FEMA) as well as our intelligence agencies and the Centers for Disease Control and Prevention are specifically tasked with preparedness, early warning, defense, resilience, and recovery in the event of a biological threat?  Further, where are all the open borders activists and globalists demanding we produce everything cheaply overseas?  At what point will these organizations and their leadership be held to account?  At minimum, considering the time and money spent over the decades, the government should have stockpiled personal protective equipment for healthcare providers and the population.  It is simply inexcusable that our nation was caught unprepared and by surprise considering the massive amount of money dedicated to intelligence.  This failure is on par with Pearl Harbor.

I am tired of global corporations and financial institutions that made reckless risk decisions getting trillion dollar bailouts.  These corporate executives are making millions running unprofitable failing companies, but the taxpayers get what?  A bill?  Hell, we don’t even get stock options in these lousy companies.  Let them fail.  Instead of stock buybacks, perhaps they should have built some savings.  How is it that Joe the Plumber is responsible for bailing out a company like Boeing, which was failing long before any pandemic?  Boeing has horrible management made up of former career bureaucrats, quality control levels so poor they are producing aircraft with debris in fuel tanks, and have been producing aircraft more unsafe than jets designed decades ago while charging astronomical prices.  The company should fail or have to radically clean up its act.  Nonetheless, somehow their gross mismanagement is the problem of the taxpayer through a system of cronyism and socialist government policies.  This cannot end well. 

I am tired of hearing how we have the “best economy in history” even though that statement is based on incredibly manipulated numbers and what amounts to complete revisionist history.  We have known for years that we have been living in one of the biggest bubbles ever created.  The financial markets have soared to record highs as a result of manipulation by the Federal Reserve, but are underpinned by nothing.  Anyone with sense knew this bubble would burst sooner or later.  The only question was what would pop the bubble.  Admittedly, this is the subject of an entire dissertation so I will leave it at this.  If it truly was the best economy in history, why did it collapse in a week and if it didn’t, why did it need (as of this week) six trillion in tax dollars to bail it out?    

I am tired of how our government conspires with the Federal Reserve to conjure trillions of dollars out of thin air and then pretends that there are no negative consequences.  Are Americans really so naïve as to believe the middle class isn’t going to get stuck with the bill?  The poor can’t pay and the rich don’t pay.  Put another way, I will be happy to give a two thousand dollar check to any sucker willing to give me ten thousand dollars in “taxes” to pay for me giving them the two thousand dollars.  This is literally what the government is doing to “help” and it appears Americans are truly dumb enough to think this is beneficial. 

Finally, I am tired of people’s apathy and immediate acquiescence to even the most draconian government dictates.  Do we honestly think Google has our best interests in mind volunteering to help track us for the government? This sounds an awful lot like what China does to control its population. For once, many of the “workers” don’t have to be at work.  There is no excuse why we all shouldn’t be marching on our state capitals demanding our Rights instead of sheepishly ignoring the draconian precedents being set daily.  It’s true; no good crisis should go to waste.  However, rather than allowing us to be manipulated by fear into giving up more Rights, let’s use this chance to take back the ones we have lost. 

By Guiles Hendrik

April 11, 2020

Game over in Syria or a new crisis around the corner?

LMS has extensively covered the conflict in Syria where we have witnessed the great game of global elites jockeying for control.  This relatively small patch of land has been victimized by proxy war, state-sponsored terrorism, false-flag chemical attacks, and even brought the US the closest it has been to nuclear war with Russia since the Cuban Missile Crisis, yet few Americans have cared to pay even the slightest attention.  After all, didn’t we “defeat” ISIS and all is well?  The truth is this may be the calm before the storm and a new far bigger conflict is right around the corner.    Read more

Are You Ready to Pay $8.00 per Gallon for Gas

If you have filled up lately, you have noticed that gas prices have been steadily inching higher.  Enjoy these prices while they last because chaos is again on the horizon.  Those of you cheering America’s never ending wars in the Middle East should take heed.  If Israeli Prime Minister Benjamin Netanyahu gets his wish for a war between the US and Iran, we very well could be looking at fuel prices spiking north of $8.00 per gallon, which under even the best scenarios will collapse the US economy.  The implications of this alone should cause any thinking man to reconsider how “necessary” a war with Iran is and how much it will actually cost America to “win.”  I strongly urge anyone that will listen to take a step back and work hard to prevent the US from getting sucked into another conflict in the Middle East. Read more

Shia Militias Preparing to Unleash Attacks against US

Photo Wikimedia Commons

Members of Iran’s Islamic Revolutionary Guard Corps
Photo: Wikimedia Commons

Events in the Middle East have progressed as LMS predicted and are now transitioning to the next stage of war.  This is scary and you need to pay attention.  Specifically, the proxy war being fought in Syria against ISIS is coming to a conclusion.  However, this by no means peace will soon return to Syria.  In fact, it may prove to be quite the opposite.  After all, once the “proxy” is removed from a war, you just have a “war.”  The end of the ISIS is our enemy “consensus” leaves major state militaries standing around pointing guns at each other trying to decide who to attack next.  As long time subscribers of LMS know, this is a pivotal culminating point for events in the Middle East that I have extensively written and forewarned about.  With the collapse of the conventional military forces of ISIS, the United States is now forced to find a new justification for its illegal occupation of Syria.  Further, as Syria consolidates its gains and Iran strengthens its presence in the region, some of the main sponsors of ISIS such as Saudi Arabia and Israel are in full fledge panic.  As a result, they are in desperate need of a pretext to “justify” removing Iranian influence in the region.  This pretext will be created if it cannot be found.  “Conveniently,” President Trump’s announcement to recognize Jerusalem as the capital of Israel and relocate the US Embassy is just such an artificial catalyst to provoke Shia attacks against American interests, which will then be used to justify a broader war against Iran.  Make no mistake; the announcement will not go unanswered by the Islamic World and the Deep State is counting on it.   Read more

Is the Middle East about to Break Out in a Major Saudi-Iranian War?

The last week has witnessed some unprecedented changes across the Middle East.  These events have moved the entire region closer to a major Sunni-Shia conflict.  As such, it is important to review what has occurred and assess if this will lead to a major war.  If so, it will have major strategic implications for the US so are you prepared? Read more

EXCLUSIVE – Michael Savage Scolds Trump, Blasts Boston Leftists: ‘Trump Has Buckled to the Mob’

Author and radio host Michael Savage scolded President Trump and left-wing “Antifa” protesters in an exclusive interview with Breitbart News Sunday  — accusing President Trump of having “buckled to the mob” in Boston and warning that if Trump keeps kowtowing to Antifa and other leftist groups, “it’s all over.”

http://www.breitbart.com/big-government/2017/08/21/exclusive-savage-trump-buckled-mob/

 

The Syrian Civil War and the Downfall of the Trump Administration

Here is a free piece of political advice.  When your enemies begin condoning your actions, you should be very worried.  President Trump has for the first time enjoyed what he believes to be the “support” and approval of the Establishment after launching a cruise missile attack against a Syrian air base.  However, he would be a fool to think they are cheering on his actions because they support his policy.  In fact, the Establishment is really laughing as they lead him by his ego down the path to destruction in Syria.  As I have repeatedly warned, the Syrian Civil War is a trap and will not just take down the Trump Administration, but will bring down the United States if it becomes entangled in the conflict. Read more

Prepper Update of World Events for Week of October 10, 2016

The following summary of recent world events is decidedly negative.  This is not due to overt pessimism as much as the facts are just plain bad.  In fact, I didn’t even include events like the effects of Hurricane Mathew, the attack on our warship off the coast of Yemen, and the assassination of more police around the US.  The world is not getting any safer and indicators are all pointing to things worsening as we move into late fall and winter.  The following are major events you should be taking note of with short comments.

  • Situation in Syria: Syrian government forces backed by Iran and Russia continue to pound Aleppo and are nearing a strategic breakthrough.  All actors in Syria recognize that if Assad is able to recapture Aleppo from the Islamic extremists it will be the beginning of the end for Washington’s terrorist proxies in Syria.  As such, there is panic from Doha to Washington.  The terrorist coalition knows that it is now or never for major intervention, which may force the White House to order direct strikes against the Syrian regime, which undoubtedly will be countered by Russian retaliation.  This creates the potential for a rapid outbreak of a major regional war that could go global.  We have effectively arrived at the point I have repeatedly forecasted would occur in Syria where either Moscow or Washington accepts a massive strategic policy defeat or there is a major war…perhaps both.  This is inescapable at this point.  The best case scenario is if the US backs out by aligning with Russia to defeat ISIL and negotiate a peace deal that leaves the regime in place for now.  This is highly unlikely and if Hillary Clinton is elected, all but impossible.
    • I am forecasting that the US will continue to spread false anti-Assad and anti-Russian propaganda to drum up war sentiment in the US to prepare the public for the announcement airstrikes against Syrian military positions.  If the neo-cons within the establishment get their way the air strikes will happen, but there will be an immediate cost to US forces.  Russia will defend its positions on the ground and engage any US forces that directly threaten Russian lives and interests.  In this event, it is possible we will witness the first combat losses of US Fifth Generation Fighters, which Washington is rightfully terrified will occur.  The loss of these jets will show everyone how much superiority the US has lost against countries like China under Obama.  This will jeopardize the multi-billion dollar acquisition program that has been riddled with corruption, failures, and delays.  As such, it is far more likely Washington will lead with cruise missile and drone strikes that are easier to deny and hide if they fail to achieve their objectives, but are also much less likely to achieve decisive results.

Read more

News You Need to Get: April 7, 2016

I am not a huge fan of the major news consolidators because they tend to mask important content with frivolous content of dubious accuracy and reliability.  Further, you tend to get a lot of repetitive reporting of the same “news.”  However, having a list of targeted news articles of substance is very valuable.  As such, on a semi-regular basis, I will continue putting together a list of important links to articles and information that went under reported in the American media.  They will cover a range of topics, but will all deal with critical issues that are going to shape events in each of our lives.

 

http://www.dailymails.xyz/wires/afp/article-3396210/Israel-gets-fifth-German-submarine.html

Israel on Tuesday took delivery of its fifth German-built submarine, an advanced Dolphin-class vessel said to be capable of remaining submerged for up to a week.

Speaking at an official welcome ceremony at the northern port city of Haifa, Prime Minister Benjamin Netanyahu said the undersea fleet allows Israel “to deter enemies who seek to destroy us.”

“They should know that Israel can strike very hard indeed at anyone who tries to harm it,” he said.

 

http://www.bloomberg.com/features/2016-how-to-hack-an-election/

On the question of whether the U.S. presidential campaign is being tampered with, he is unequivocal. “I’m 100 percent sure it is,” he says.

 

http://www.amazon.com/The-New-Confessions-Economic-Hit/dp/1626566747
“Mr. Perkins’s core message is that American corporations and government agencies employ two types of operatives: ‘economic hit men,’ who bribe emerging economies, and ‘jackals,’ who may be used to overthrow or even murder heads of state in Latin America and the Middle East to serve the greater cause of American empire. . . . [This} book seems to have tapped into a larger vein of discontent and mistrust that Americans feel toward the ties that bind together corporations, large lending institutions and the government — a nexus that Mr. Perkins and others call the ‘corporatocracy.’”
—The New York Times

 

http://www.nytimes.com/2016/02/23/science/scientists-ponder-the-prospect-of-contagious-cancer.html?em_pos=small&nl_art=6&te=1&_r=0

While there is no sign of an imminent threat, several recent papers suggest that the eventual emergence of a contagious human cancer is in the realm of medical possibility. This would not be a disease, like cervical cancer, that is set off by the spread of viruses, but rather one in which cancer cells actually travel from one person to another and thrive in their new location.

 

https://theintercept.com/drone-papers/

The Intercept has obtained a cache of secret documents detailing the inner workings of the U.S. military’s assassination program in Afghanistan, Yemen, and Somalia. The documents, provided by a whistleblower, offer an unprecedented glimpse into Obama’s drone wars.

 

http://kurdishdailynews.org/2016/02/18/kurds-warn-turkey-of-big-war-with-russia-if-troops-enter-syria/

Russia has promised to protect Kurdish fighters in Syria in case of a ground offensive by Turkey, a move that would lead to a “big war,” the Syrian group’s envoy to Moscow said in an interview on Wednesday.

“We take this threat very seriously because the ruling party in Turkey is a party of war,” Rodi Osman, head of the Syrian Kurds’ newly-opened representative office said in Kurdish via a Russian interpreter. “Russia will respond if there is an invasion. This isn’t only about the Kurds, they will defend the territorial sovereignty of Syria.”

 

http://m.ibtimes.com/russia-conducts-military-exercises-armenia-base-latest-combat-readiness-drill-1997545

“We are concerned by the size, sale and frequency of Russia’s snap exercises,” a NATO official told CNN in May. “Three of them have included over 80,000 troops. Some of them have been used to deploy troops to annex Crimea, mass forces on Ukraine’s border and support the [pro-Moscow rebels in Ukraine].”

 

http://www.independent.co.uk/news/world/europe/imf-predicts-greek-default-will-coincide-with-eu-referendum-claims-wikileaks-a6964676.html

The International Monetary Fund anticipates a possible Greek default on its bailout will coincide with the UK’s referendum on Europe, according to a leaked transcript.

 

http://www.globalsecurity.org/wmd/library/news/japan/2016/japan-160403-presstv01.htm

A Japanese submarine, along with two guided-missile destroyers, has docked at a Philippine port near the South China Sea, where there is a territorial dispute with China.

 

https://www.rt.com/news/338831-montreal-police-brutality-protest/

A demonstration against police brutality in Montreal, Canada, led to cars being set alight in the streets and a police station being attacked. The protest was sparked by the death of a black man who was killed by a police rubber bullet last month.

 

https://www.rt.com/news/338833-chemical-gas-aleppo-shelling/

A neighborhood in the Syrian city of Aleppo, which is held by Kurdish YPG militias, has been shelled with chemical agents from territory held by Islamist and FSA factions, a local journalist on the ground has told to RT.

“The attack was carried out between 11.30 and 12.00 local time. The gas that was used in this attack, caused choking and malaise among those affected. This indicates that the poisoning substances were used in the attack,” journalist Nawrouz Uthman reports.

Uthman adds that 23 people were killed and over 100 injured in Thursday’s attack.

 

 

A Government of the Bureaucrats for the Globalists against the People

Anyone that stayed awake through their civics class will recognize the spin on this article’s title. No more do we have a government that is made up of the people, which serves the people’s best interests. No, today we have a government made up of career bureaucrats and a dynastically perpetuated political class that live extremely well on the ever increasing percentage of income the government extorts through force in the name of taxation from the dwindling few Americans still working. Further, this government is so far removed from the people, it neither has any idea what the daily life and struggles of the average citizen look like nor cares. They only answer to the globalists and the big banks. Anyone that points this out as something undesirable and organizes others to return to a representative system where the rule of law matters is considered a threat to their power monopoly. In fact, it has gotten so bad that the Orwellian Thought Police routinely label these law abiding patriots as terrorists and the “biggest” threat to the US. Step out of line and do something “revolutionary” like discuss your Christian beliefs or how you believe our system of taxation is nothing more than theft to benefit government cronies and you will find yourself “watchlisted” and labeled a terrorist. Ladies and gentlemen, this is truly perverse logic being peddled by “our” government. “Our” government has lost its way so badly it now considers the very people it draws its power and legitimacy from its number one enemy. The thought police appear under names such as the military, NSA, FBI, TSA, Department of Education, Department of Homeland Security, and the Environmental Protection Agency. In fact, nearly every government agency today has become synonymous with Orwellian acts against the people and this should scare you to action. We must turn the tide against the criminalizing of free thought, dissent, and our national sovereignty or the Republic this nation was will be lost forever. Read more

What today’s market collapse means for the future

Black Friday hit world stock markets causing almost three trillion dollars in losses. As I predicted, this summer’s crash initiated a far larger crash cycle that is now returning with a fury.  The Chinese contagion that was said to be “contained” by our leaders is anything but contained.  It is now clear China’s economic crash wasn’t averted; it was just temporarily masked and delayed.  Further, oil prices continue their steep decline and now are under 30 dollars a barrel.  Also, 2015’s economic numbers are in and 2015 was the year global economies fell back into chaos.  With compounding bad economic news in all markets globally, what can we expect going forward?

I have for years told advocates of energy independence that it isn’t $200 dollars a barrel for oil that I fear, but rather $20 a barrel. Most “experts” thought that by reducing our reliance on Middle Eastern oil supplies, we would somehow achieve greater stability.  I correctly warned that if you want to see real chaos, drop the oil prices to $37 or below.  Well, today, oil prices broke below the key technical floor of $30 per barrel and barring any intervention by Saudi Arabia to reduce oil production, we are going to soon test the $20 mark.  Even before hitting the $37 mark, it was clear stability in the Middle East had gone from really bad to near worst case scenario.  At the $20 per barrel mark something must break.  Whether Saudi Arabia takes and knee and gives into OPEC pressure to cut production or a war breaks out, no oil producing country can continue to endure this price point much longer.  This downward spiral in the oil market will only add to the vast problems in the Middle East and before the region rebalances, it is very likely more countries will collapse.  With near certainty, the old geographic boundaries of the Middle East will be completely redrawn and it is increasingly likely we are seeing the first waves of what will eventually turn into a major collapse of Saudi Arabia.  Read more

Buying Gold for Bartering and Prepping— Why is it Important to Have Precious Metals for Trade

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A common question asked by people preparing for a disaster situation in the future is whether they need to stock up on precious metals like gold and silver. These are supposed to help in trade and barter when something bad does happen. Gold has been used for centuries as a way to trade for other goods and services.

Whenever an economy collapses, people turn to precious metals for something solid in their lives (no pun intended). If you want to buy gold reviews are generally on the positive side. However, the metal is heavy. This can’t be denied. Is a stockpile of heavy gold the best way to prepare?

It is a good idea but…

Of course, a small amount of gold in your preparation kit is a very good idea. We say a small amount because the metal is both heavy and expensive. This means that having a large amount of the item in your bag is not a practical choice. For an idea of just how heavy the metal is, imagine a block that is just one cubic foot in volume. The weight of a block of this volume would be about 500 kilograms, which is over 1200lbs!

While it is a lovely thing to have in large amounts when the world falls apart, it is best not to keep it as an emergency item in your bugout bag. Instead, having a store of gold at your emergency shelter or bunker is a good way to make sure you have a base of operations as well as a stable form of currency to trade with when it is necessary to resupply on your essentials like food, water and weapons.

Types of gold

Bars – These are one of the heaviest types out there. A single bar can weigh about 27 pounds. It is also incredibly expensive. In fact, you could buy and build a great defensive shelter for the cost of a couple of these bars. Having big bars is definitely not one of the best ways to be prepared for post-collapse trade. The thing you have to remember is that nobody is going to have change for the big bars. After all, it is a survival situation, not the Federal Reserve.

Gold powder – This is definitely one of the better ways in which to have gold for bartering. It is an easy way to measure nearly exact values for trading with. However, it can be hard to find unless you spend a week filing bars of gold down into powder. It is also really easy to misplace and get blown away in the wind. Even without currency, a loss of gold powder is going to hurt you to no end.

There are so many more options that you can choose from when you are considering buying gold in preparation for a survival situation. The best advice that you can follow is to think practically before you leap into a purchase. The last thing you need is to be lugging around a survival bag that weighs more than you do while trying to escape from the hordes of zombies out for your blood. Consider all the types of gold that are up for grabs with a rational mind. In addition, make sure you think about the importance of gold compared to essentials for survival. With the right thought processes and the motivation to be prepared, you are sure to be game for anything that comes your way. Good luck, trade wisely, and stay alive.

Food Prices Spike in Canada as their Dollar Weakens

Think cheap oil is good for the economy? Not when it is caused by low demand from economies in free fall. This may come as a surprise to some Americans currently enjoying the price of much cheaper gas, but if you are a Canadian, you are suffering as your currency is rapidly losing its value. The Canadian lesson should serve as a reminder that this can and will happen even in First World countries.

How would it affect you to see your grocery bills increase by 5%, then 10%, then 30%, then even higher? Canadians are suffering this reality today. Prices of food items increased as much as 38% in 2015. (See: http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/econ155b-eng.htm) However, this is using the government’s averaged figures and totally discounts areas in Canada where prices have spiked far higher. What is worse, 2016 is already on track to see even higher price spikes and Canadians literally unable to afford even the basic food staples. Soon Canada could be experiencing a true food emergency. Read more

Russian stock crash increases risk of war in the Middle East

Last week, I warned that Russia has become the country with the ability to push the Middle East into a major war.  In particular, Russia cannot and will not tolerate Saudi Arabia artificially depressing the price of oil indefinitely.  Low oil prices have been very damaging for Russia’s economy.  Zero Hedge today reported this morning:

Down over 5%, Russia’s RTS Index has plunged to its weakest level since Dec 2014 and the peak of its existential crisis mid-Ukraine/currency-crisis/oil-collapse. This is Russia’s biggest one-day drop since April 2015. The Ruble continues to tumble (despite CNH strength) as oil pushes to new cycle lows…

Even though the US shale oil market has also been hit badly by the drop in oil prices, Moscow see’s Saudi Arabia’s actions as a direct attack on Russia for backing Syria’s President Assad against Saudi Arabia’s wishes.  I have never met Prime Minister Putin in person, but I am willing to bet he is not a man that takes threats lightly or is going to cower to Saudi Arabia.  Putin cares deeply about Russia and his people, but he also cares about his profit margins like any good businessman.  As such, he must take action to engineer a return of oil prices to a sustainable level.  Putin is a professional and will exhaust diplomatic means; however, if they should fail and Russia is pushed into a corner, Russia will undertake covert actions to engineer the price rebound and I can’t say I blame them at all.

If the price depression continues, Moscow will act in a way that precipitates a rapid rebound of oil prices.  Read more

Russia sets chessboard for major Middle East war and transition to global dominance with one apocalyptic move

The United States has enjoyed the preeminent position globally as well as the Middle East for the last half a century. Like all empires, the sun has risen and now may be setting on the American century.  This is due in no small part to atrocious leadership and imbecilic foreign policy controlled by ideologues and special interests.  In particular, the US has lost significant influence in the Middle East over the last decade by turning allies into enemies and sovereign nations into hostile failed states.  In the process, the US created leadership vacuums that it was unable or unwilling to fill.  In those voids reentered old actors with Russia leading the way.  With Russia now firmly retrenched in the Middle East, the US can no longer afford to continue with business as usual.  The US must reevaluate its entire foreign policy positions and design a new grand strategy recognizing Russia is no longer a spoiler, but the kingmaker in the Middle East.  Russia has set the chessboard in the Middle East to achieve global dominance in one apocalyptic move.  As such, if there is to be war or peace, analysts should be looking toward Russia. Read more

A Message to the Members of the US Military

Instead of exposing lies and treason within the top tiers of government, today, I am going to simply make a plea to the service members of the US armed forces and those thinking about joining. The message is simple.  If you aren’t in, don’t join.  If you are currently in the service, do what you have to do to survive, bring your troops home safely, and get out.  The missions are garbage, the wars are lies, and you are serving the special interests of the elite, not your nation.  Don’t be a fool and buy into the propaganda.  Contrary to your leadership that sold you out long ago, I actually care about your well-being and the future of this nation.  If I can wake even one person up and save them from being killed or heinously wounded in another unnecessary war, this post was worth infinitely more than the time it took to compose.

The issue of service in today’s military was directly put to me by a mother who asked whether I thought her son should enlist in the Marines. Knowing this lady and her son, I thought long and hard before answering her with a definitive, “No.”  The lady knew that I had spent many years in the military in both the enlisted and officer ranks and had served in combat in both Iraq and Afghanistan so seemed taken aback by my blunt answer.  Clearly surprised, she asked what my rationale was for saying it was a bad idea.  I told her the military was bad enough while I was in the service, but the waste and abuse of the lives of our service members is now at the worst levels since Vietnam.  Our troops are simply cannon fodder for wars the US not only has engineered, but has no intention of decisively ending.  Granted, the equipment and training the military provides is better than it ever has been, but our senior leadership is the worst I have ever seen, there is no will or strategy to win, and our troops are being left for dead in places like Afghanistan for political expedience.  Further, all of our efforts, as honorable as they were, were completely in vain in Iraq and Afghanistan because of the massive dereliction in our leadership.  If our leadership and all of NATO couldn’t even handle the Taliban, what does your survivability look like in the military when the elites pick the next fight with an actual competent enemy like Russia or China?  Until the US military purges its general staff and the country elects a competent Commander-in-Chief, run for the door.

Just today in Afghanistan we lost another American serving with a special operations unit. This makes me sick to my stomach with sadness.  Dropping all of the patriotic propaganda, what did that operator give his life for?  How is the loss even remotely justifiable?  Read more

America is fed up with Obama’s lies: America puts boots on ground in Syria as predicted by LMS

It should come as no shock to our readers that the Third Iraq War President Obama initiated has already faltered.  As predicted, the strategy (or lack thereof see: http://www.blackboxwire.com/2014/10/11/islamic-extremism-and-what-lies-ahead-part-ii-the-war-on-isis-and-syria/) did not achieve the desired results so now the Department of Defense (DoD), no doubt testing the waters for the White House, is requesting boots on the ground.  As we warned, mission creep is a dangerous thing and would plague this operation.  What started with just a handful of “advisors,” grew into airstrikes in Iraq and then Syria, then over a thousand troops “on the ground,” and now US troop levels in Iraq will soon reach 3,000.  When this new batch of advisors fails to stop the growth of ISIL, expect Obama to retract another “promise” and have “no choice,” but to commit US combat personnel to the fight in Iraq.  Soon, just like in Vietnam, Obama will be steadily sucked into another full blown war in Iraq that the US will neither win nor be able to afford.

This introductory paragraph could have been snatched from today’s headlines detailing how President Obama walked back his repeated promises not to put American “boots on the ground” in Iraq. However, it is a verbatim cut and paste from an article I wrote just over a year ago predicting EXACTLY what is occurring.  See: http://www.lastminutesurvival.com/2014/11/18/update-on-the-third-iraq-war-against-isilisisisaqsyriaetc/#more-768  Not so ironically, you didn’t hear the radio and talk show hosts and other “enlightened” pundits detailing this foreseeable reality a year ago because they are hacks.  However, today the airwaves have been alive with people taking notice.  Savage, Hannity, Beck, Wilkow, O’Reilly, etc. all have been detailing how the President lied and how the strategy they supported to bomb ISIL has not worked.  I say better late than never to the party, but American’s need to wake up now. Read more

Russian transfer of S-300 Air Defense System may force Israeli to initiate war with Iran before winter

Over two decades ago, I began warning that United States’ policies in the Middle East could set the US and world on a trajectory for a major war. Unfortunately, every major policy decision the US has made has exclusively served the interests of the global elite to the detriment of humanity. The trajectory set by these policy decisions has moved the world closer and closer to a full blown world war. More recently, I have warned that the Obama Administration was walking a dangerous foreign policy line in the Middle East that if mismanaged, could lead to horrific consequences. Today, it is become blatantly clear to all but the most ideologically blinded that Obama and his amateur staff have chosen incorrectly and created a perfect storm in the Middle East that will likely lead to a full scale regional war. The culmination of these decisions, no matter their motivation, has set the stage for a showdown between Israel and Iran that is now most likely irreversible. This showdown is what I have previously described as the worst case scenario that must be avoided at all costs. The consequences of which will be catastrophic for not just the Middle East, but the US and the rest of the world. As recently as August, news broke that could finally force Israel into unilateral action against Iran, which will pull the entire region and the US into war, collapse the already sick global economy, and usher in the New World Order.

The event I am speaking of is the Russian announcement that it will move forward with the transfer of S-300 Air Defense Systems to Iran. These sophisticated air defense systems are capable of detecting and successfully interdicting aircraft flown by the Israeli Air Force (IAF) as well as ballistic missiles, drones, and cruise missiles. The potency of this air defense system will alternate the current military balance of the region and has Israel on edge. Read more

Danger Alerts: Risk of war with China and North Korea dramatically increasing

Historically, North Korean threats were nothing more than sabre rattling akin to a young child acting out for attention. However, North Korea today is more unstable than ever. Its people are starving, its economy is virtually non-existent, and it now has nuclear weapons (thanks to the last 3 US Presidents). Worse yet, Kim Jong Un, the nutcase boy “leader” that makes Caligula look like a decent guy, has his finger on the trigger ready to initiate a major war. So what makes this escalation by North Korea something we should take more serious than the countless previous flare-ups on the peninsula? In short, North Korea isn’t the issue, but its puppet master China is the game changer. China is in trouble and could use this latest escalation to turn the skirmish into a hot war. The probability of this is higher than it has been in since the end of the Cold War and it is making analysts take the threats far more seriously. Read more