The Economic Collapse

When we were told that the ceasefire extension with Iran would include “the toll-free opening of the Strait of Hormuz”, I didn’t realize that this was only for a period of 60 days. As you will see below, once the 60 days are over the Iranians will be allowed to charge vessels for passing through the Strait of Hormuz on a permanent basis. Any vessels that attempt to pass through the Strait without permission will be subject to attack by the Iranian military. In other words, the nightmare scenario that we have been enduring for the past several months will be institutionalized. I am shocked that U.S. negotiators would actually agree to this. With the Iranians in control, I seriously doubt that the flow of oil and natural gas out of the region will return to pre-war levels any time soon, and any oil and natural gas that does get exported will cost quite a bit more thanks to the protection racket that the Iranians will be running. (Read More...)

A very intense El Niño has formed in the equatorial waters of the Pacific Ocean much earlier than originally anticipated, and we are being warned that it could cause trillions of dollars of damage to the global economy. Considering everything else that is going on in our world right now, that is really bad news. It is being projected that the El Niño that has developed in the southern Pacific is likely to rapidly transform into a “Super El Niño” of frightening strength. At the same time, a “9,000-mile marine heatwave” has developed in the northern Pacific. Many believe that these two marine heatwaves will combine to form a “Godzilla El Niño” which will be unlike anything we have ever experienced before. (Read More...)

We have been warned for a long time that a nightmarish global food crisis was coming. We are facing an unprecedented fertilizer shortage, extremely high diesel prices and long-term droughts in many of the most important food producing regions of the world, and now a “Super El Niño” is in the forecast. So a lot of experts have been projecting that we would experience a very serious global food crisis beginning in the second half of this year, but the truth is that it is already here. (Read More...)

Now that the war with the Iranians appears to be fully back on, there will be no turning back now. President Trump just told reporters in the White House that “we’re going to be attacking them and attacking them very hard”, and so it should now be apparent to everyone that there isn’t going to be any sort of a “deal” any time soon. What this means is that we are headed for a historic energy squeeze of unprecedented magnitude. (Read More...)

Did you know that the purchasing power of the U.S. dollar has fallen by more than 97 percent since 1913? Sadly, as you will see below, the decline in the purchasing power of our currency appears to have greatly accelerated in recent years. Thanks to the rising cost of living, most Americans have lost faith in the American Dream. In fact, a new survey that was just released discovered that 51 percent of us believe that the American Dream is now out of reach for most people… (Read More...)

No matter how bad things get, some skeptics will simply never admit that what we are experiencing is unusual. We live at a time of seemingly endless wars, growing global hunger, alarming outbreaks of disease and constant natural disasters, but they just keep telling us that everything is fine. Russia and Ukraine are absolutely pummeling one another, Iran and Israel are firing ballistic missiles at each other, and we are facing severe shortages of oil and natural gas in the months ahead. Meanwhile, global food production will be way down this year thanks to a historic fertilizer crisis, unprecedented drought and a “Godzilla El Niño” that is on the way. I just don’t understand how some people can be so cavalier about all of this. (Read More...)

Gigantic underground aquifers are being rapidly depleted all over the world, and once that water is gone it will take a very long time for it to come back. In fact, in some areas of the United States the recharge rate is less than an inch per year. That is a major problem, because more than half of the water that U.S. farmers use for irrigation comes from underground aquifers. What in the world are our farmers going to do once that water is gone? (Read More...)

Without sufficient quantities of oil, the global economy will not be able to operate normally. So the fact that the global economy is running a massive “oil deficit” right now should deeply alarm all of us. Even since the war with Iran began, the world has been consuming far more oil than it has been producing. We have been running down commercial oil inventories and strategic oil reserves all over the planet, and now those supplies are starting to run dry. In the not too distant future, global demand for oil will substantially exceed what is available, and that will mean much higher prices and very painful shortages. Asia will be hit the hardest because they are more dependent on oil from the Middle East than anyone else, but we will certainly feel this crisis very keenly as well. (Read More...)