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
Tag Archive for global economic collapse
Over the last two weeks, major movements have been taking place economically across the globe. These events are moving international markets into “correction” territory, but cumulatively, could quickly spiral into a global meltdown of markets. Although, the US hasn’t reached critical mass and may actually experience a short term strengthening of markets as international markets flee to the US for safety; the signs of a major crash are now flashing red. What should you look for and what can you do?
Four major places to watch right now are Greece/European Union (EU), China, oil, and bonds. Greece has the potential to start a ripple effect against austerity across the EU triggering a banking run, panic, and global losses. This could unhinge the massive derivatives market and alone cause a global economic collapse. China is so big now that the recent losses in their market will spread globally this week if the losses are not stabilized. Any major downturn in China’s economy will further increase the already saturated oil market driving the price per barrel even lower. If oil continues to drop and stay low, US oil producing states will feel this the hardest, which will sharply increase US unemployment numbers. The loss of high paying jobs will throw even the totally fudged US financial numbers clearly back into recession territory and drag the world back down with it. Finally, the bond market has seen a liquidity crunch that likely will only get worse. If governments can’t manage to keep their bond yields low, the already massive debt loads (and payments on interest) these nations are carrying will explode and force them into financial crises far worse than anything Greece is facing.
Presently, the situation in Greece is very serious. Read more