Because the mainstream media is devoting almost all of their time and energy to covering the Trump and Clinton campaigns, most Americans don’t realize that the Obama administration is bringing us perilously close to war with Russia. On Friday, Barack Obama is going to sit down with his foreign policy team and discuss “military options” in Syria. As you will see below, the options under consideration include direct strikes “on Syrian military bases”. Russia has already pledged to respond militarily to any direct strikes on Syrian forces, and so the decisions that Barack Obama makes regarding Syria on Friday could literally be the spark that sets off World War 3.
The daily drama surrounding Trump and Clinton is far less important than a potential war with Russia. This should be front page news all over the country, but unfortunately most of the big news organizations are giving it very little coverage. The following is an excerpt from an extremely important Reuters report that so far is not receiving nearly enough attention…
U.S. President Barack Obama and his top foreign policy advisers are expected to meet on Friday to consider their military and other options in Syria as Syrian and Russian aircraft continue to pummel Aleppo and other targets, U.S. officials said.
Some top officials argue the United States must act more forcefully in Syria or risk losing what influence it still has over moderate rebels and its Arab, Kurdish and Turkish allies in the fight against Islamic State, the officials told Reuters.
One set of options includes direct U.S. military action such as air strikes on Syrian military bases, munitions depots or radar and anti-aircraft bases, said one official who spoke on condition of anonymity to discuss internal deliberations.
If Barack Obama decides to directly hit the Syrian military, that will be crossing a “red line” that Russia has already established.
And unlike Obama, Russia actually takes their red lines deadly seriously.
Russia’s Defense Ministry has cautioned the US-led coalition of carrying out airstrikes on Syrian army positions, adding in Syria there are numerous S-300 and S-400 air defense systems up and running.
Russia currently has S-400 and S-300 air-defense systems deployed to protect its troops stationed at the Tartus naval supply base and the Khmeimim airbase. The radius of the weapons reach may be “a surprise” to all unidentified flying objects, Russian Defense Ministry spokesperson General Igor Konashenkov said.
According to the Russian Defense Ministry, any airstrike or missile hitting targets in territory controlled by the Syrian government would put Russian personnel in danger.
If the Obama administration is insane enough to start ordering airstrikes against Syrian positions, let us hope and pray that the Russians are willing to back down and show restraint.
Because if Russian S-300 and S-400 air defense systems start shooting down U.S. military aircraft, that could set off a chain of events that may be unstoppable.
And right now the Russians are taking the threat of war with the U.S. very seriously. For example, the Kremlin has ordered all top officials to return to Russia as soon as possible…
Russian citizens have reacted with fear over reports Moscow has ordered officials to fly home all relatives living abroad – with some residents claiming it is ‘another step towards war‘.
The Kremlin is said to have told high ranking officials to bring their loved ones back to the ‘Motherland’ immediately – with any who disobey being overlooked for promotion.
It comes against a backdrop of rapidly deteriorating relations with the West over Russia’s role in the Syria conflict and just days after Putin moved nuclear-ready missiles closer to the border with Poland.
In addition, the Russians recently concluded an unprecedented “civil defense drill” that involved 40 million people.
Here in the United States, we never have those kinds of drills and there isn’t even anywhere for the general population to go in the event of a nuclear war.
If and when the missiles start falling, the only thing that will be left to do is to say our prayers and kiss our family members goodbye.
Over in Russia, there is a tremendous amount of interest in the U.S. election right now, because it is widely believed that Donald Trump could dramatically improve relations between the United States and Russia.
But if Hillary Clinton gets elected, many top Russian officials believe that will make the possibility of nuclear war much more likely. For instance, just consider what Vladimir Zhirinovsky told Reuters earlier this week…
Vladimir Zhirinovsky, a flamboyant veteran lawmaker known for his fiery rhetoric, told Reuters in an interview that Trump was the only person able to de-escalate dangerous tensions between Moscow and Washington.
By contrast, Trump’s Democratic rival Hillary Clinton could spark World War Three, said Zhirinovsky, who received a top state award from Putin after his pro-Kremlin Liberal Democratic Party of Russia (LDPR) came third in Russia’s parliamentary election last month.
And anyone that watched the second debate between Hillary Clinton and Donald Trump got to see the intense disdain that Clinton has for Russia.
Hillary believes that the Russians are trying very hard to keep her out of office, and she tends to take any threats to her political career very, very personally. The thought of her having her finger on the nuclear trigger is beyond terrifying.
And I am certainly not alone in this opinion. Even presidential candidate Jill Stein believes that nuclear war with Russia will be much more likely if Clinton is elected…
“It is now Hillary Clinton that wants to start an air war with Russia over Syria by calling for a no-fly zone,” Stein said. “We have 2000 nuclear missiles on hair-trigger alert. They are saying we are closer to a nuclear war than we have ever been. Under Hillary Clinton, we could slide into nuclear war very quickly from her declared policy in Syria.
“I sure won’t sleep well at night if Donald Trump is elected, but I sure won’t sleep well at night if Hillary Clinton elected. We have another choice other than these two candidates who are both promoting lethal policies,” she continued. “On the issue of war and nuclear weapons, it is actually Hillary’s policies which are much scarier than Donald Trump who does not want to go to war with Russia. He wants to seek modes of working together, which is the route that we need to follow not to go into confrontation and nuclear war with Russia.”
And the ironic thing is that Hillary Clinton actually played a key role in starting the civil war in Syria when she was Secretary of State in 2011. At the time, the “Arab Spring” was sweeping across the Middle East, and the Obama administration, Saudi Arabia and Turkey decided that it would be a wonderful time to try to overthrow the Assad regime in Syria and make Syria a full-blown Sunni puppet state. So they helped organize protests, they armed and funded the rebels, and the rest is history.
Now the civil war that Hillary Clinton played such a key role in starting has brought us to the brink of World War 3 with Russia.
So we definitely don’t want to tangle with the Russians, because there is a very good chance that we would come out on the losing end.
But whether we would win or we would lose, there is absolutely no reason to go to war with Russia in the first place. Barack Obama has got to be absolutely insane to even consider getting us into a direct military conflict with the Russians, and let us hope that he backs off while there is still time to do so.
The drumbeats of war are growing louder. Fighting in eastern Ukraine between separatists and pro-government forces has risen to an intensity not seen in well over a year, and the Russians claim that they recently foiled a “Ukrainian plot” to conduct terror attacks in Crimea. As tensions in the region have increased, the Russians have used the cover of “military drills” to move massive amounts of troops and military equipment up to the border with Ukraine. This is something that I wrote about a couple of weeks ago, but things have intensified since then, and a huge military exercise is planned for September. Needless to say, the Ukrainians are quite alarmed by this, and Ukrainian President Petro Poroshenko is warning that a full scale mobilization of the Ukrainian military may be needed. If something is going to happen, it is likely to happen soon. As you will see below, once we get into October it will become much less likely that we would see a Russian invasion of Ukraine.
Ukraine is holding a major military parade in Kiev today to mark its 25th anniversary as an independent state. But, at a time that should otherwise be a moment of national celebration, a serious crisis with Moscow is flaring up. So serious, in fact, that on Tuesday the Russian President Vladimir Putin, German Chancellor Angela Merkel and French President Francois Hollande were forced to hold a three-way phone call to try to de-escalate the situation.
Ukrainian President Petro Poroshenko has even warned that there is growing risk of a “full scale Russian invasion along all fronts,” ratcheting up what is already the bloodiest European conflict since the wars over the former Yugoslavia in the 1990s.
And the truth is that Ukrainian President Petro Poroshenko has some very good reasons to be concerned. As the Washington Post has pointed out, the Russians have used military exercises as an excuse to stage forces for military action in the past…
As violence in the east heats up, Ukrainian officials have suggested that Russia may use the upcoming military drills, called Kavkaz (Caucasus) 2016, as cover for military action against Ukraine. The drills are the first to integrate the Crimean Peninsula, which was annexed by Russia in 2014, into the country’s military planning, and thousands of Russian troops will be brought in for air, land and sea exercises.
Ukrainian government analysts have recalled that exercises served as staging grounds for troop incursions in 2014, as did Russian military exercises held shortly before the Georgian war of 2008. Ukraine’s ambassador to the United Nations suggested that Russia may have “bad intentions,” while the West has also said it would like observers to be present.
If there is going to be a Russian invasion of Ukraine in September, Kavkaz 2016 will likely be used as cover for invasion preparations. It is a yearly exercise, but in 2016 it looks like it will be much bigger than ever before, and some analysts have pointed out that the Russians have not conducted a mobilization on this scale since the invasion of Czechoslovakia in 1968. Here is more on Kavkaz 2016 from the Daily Signal…
In September, Russia has plans for a large-scale strategic military exercise called Kavkaz-2016. The exercise, which is an annual event, will include units deployed near the borders of Ukraine, Georgia, and Azerbaijan—including two Russian military districts in the Southern and Northern Caucasus, the Russian Black Sea Fleet (headquartered in occupied Crimea), and the Caspian Flotilla.
It is not immediately clear the exact size of this year’s exercise, but last year it comprised 95,000 troops, 7,000 vehicles, and 150 aircraft, according to a report by IHS Markit, a U.K.-based intelligence and analysis firm.
If the Russians are going to do something, they need to do it soon, because the weather turns very bad during the month of October. Here is one how one analyst assessed the situation…
“But will there be a war – we’ll see, no much time for guessing left… In this situation, the main thing for Russia is to achieve strategic and tactical surprise. And if she does not start now – then it will be too late. One would need to turn off full-scale operations in October because of the rains and the next draft to Russian army (it would mean the demobilization of current wave of conscripts and training the new ones – UT).”
A Russian invasion of Ukraine would mean that Russian relations with the U.S. and with Europe would immediately plunge to Cold War levels. Of course some would argue that we are already there. In any event, a Russian invasion would force the U.S. and NATO to make some very uncomfortable decisions.
Would the U.S. and NATO just stand by and do nothing while Ukraine is overrun by the Russians?
But if the U.S. and NATO responded with military force, that would risk a full scale nuclear confrontation with Russia.
Right now, a war with Russia is about the last thing that most Americans are thinking about, but the truth is that we are not that far away from such a scenario.
Recently, I grabbed a taxi in Moscow. When the driver asked me where I was from, I told him the United States. “I went there once,” he said, “to Chicago. I really liked it.”
“But tell me something,” he added. “When are we going to war?”
The question, put so starkly, so honestly, shocked me. “Well, I hope never,” I replied. “No one wants war.”
At the office, I ask a Russian employee about the mood in his working class Moscow neighborhood. The old people are buying salt, matches and gretchka [buckwheat], he tells me—the time-worn refuge for Russians stocking up on essentials in case of war.
In the past two months, I’ve traveled to the Baltic region, to Georgia, and to Russia. Talk of war is everywhere.
Most Americans don’t realize that Russians already view the United States more negatively than they did even during the height of the Cold War. On Russian television they openly talk about the inevitability of a war between the United States and Russia, and the Russian military has feverishly been preparing for such a future conflict.
If we can get to October, we can probably breathe a bit of a sigh of relief because the Russians are not likely to conduct an invasion once the weather turns bad.
But for now there are very good reasons to be concerned, and we shall see what happens over the coming weeks…
The invasion of Syria that so many people have been warning about is now happening. On Wednesday, Turkish tanks rolled across the Syrian border, and they were accompanied by radical Islamic Syrian rebels that want to ultimately overthrow the Assad regime. This invasion was conducted under the code name “Euphrates Shield”, and it was supported by airstrikes from A-10s and F-16s that are part of the U.S.-led coalition that has been conducting airstrikes against ISIS targets in the region. The mainstream media in the United States has been very quiet about this escalation of the conflict in Syria, but things are much different in the rest of the world. For example, a major Israeli news source announced the attack this way: “Turkey invades Syria“. And without a doubt, that is precisely what is taking place. The Syrian government denounced this move by Turkey as a “blatant breach to its sovereignty”, and the Russians are deeply alarmed. The farther Turkish forces push into northern Syria, the more likely they will be to encounter Syrian or Russian forces, and one bad move could result in the outbreak of World War 3 in the Middle East.
The fact that the U.S. media is treating this invasion of Syria as if it is of little importance is deeply disturbing. These days, the big news channels are obsessed with feeding us propaganda about how “healthy” Hillary Clinton is, or about how “racist” Donald Trump is, and they spend exceedingly little time on the things that really matter all over the globe.
Fortunately, it is not the same way around much of the rest of the planet. Here is an excerpt from a British news source about the Turkish attack…
It is hard to anticipate whether Turkey’s unprecedented military incursion into Syria this week will change the dynamics of the multiple wars that have ravaged the region and put civilians through hell. If things already seemed complicated in the Middle East, they may have just become even more so. What started on Wednesday ranks as the largest Turkish military operation inside Syrian territory since the civil war began five years ago. A dozen tanks, reportedly followed by a bus transporting Syrian rebels, rolled into northern Syria to drive Islamic State forces from the town of Jarablus, one of their last footholds on the Turkish-Syrian border. Today Turkey sent more tanks in and told the YPG Kurdish armed group it had one week to retreat from the border areas.
We are being told that the primary purpose of this Turkish invasion is “to fight ISIS”, but that is just for western consumption. The truth is that Turkey has actually been supporting ISIS and other terror groups in Syria for a very long time. In fact, it has been heavily documented that ISIS sold hundreds of millions of dollars worth of stolen oil through Turkey until the Russians put a stop to it.
No, the real motivation for this assault is to stop the advance of Kurdish forces. Turkish Foreign Minister Mevlut Cavusoglu recently promised that Turkey would “do what is necessary” to keep Kurdish fighters east of the Euphrates River, and even President Erdogan is admitting that the Kurds are primary targets in this operation…
“(Wednesday’s operation) started in the north of Syria against terror groups which constantly threaten our country, like (ISIS) and the PYD,” Erdogan said, referring to a Syrian Kurdish opposition political party.
And U.S. officials know exactly what Erdogan is doing. Just check out what one of them told CNN…
Another senior US official told CNN’s Barbara Starr the US assessment is that Turkey’s cross-border action is largely about trying to stop Kurdish action. “The Turks never cared about Jarablus until the Kurds wanted to get there,” the official said.
So now the Turks have declared open season on the Kurds in northern Syria, and the Syrian Kurds are treating this move as “a declaration of war”…
Spokesman for the YPG Kurdish militia, Redur Xelil, called Turkey’s move “blatant aggression in Syrian internal affairs.” Aldar Xelil, another influential Kurdish politician, accused Turkey of initiating an occupation of Syria, saying the operation amounted to “a declaration of war” on the autonomous administration set up by Kurdish groups in northern Syria in 2011.
According to the Turkish government, Operation Euphrates Shield will “create a safe zone” that will be 90 kilometers long and 40 kilometers wide that stretches roughly from the town of Jarablus to the town of Marea.
That is a massive amount of territory, and this basically shows that the Turks plan to set up shop there permanently.
President Erdogan and his supporters have always dreamed of recreating the old Ottoman Empire, and they already have military forces occupying portions of northern Iraq. This move into northern Syria is yet another bold move in the direction of their ultimate goal.
But will the Russians just stand by and allow the Turks to do whatever they want?
Russian President Vladimir Putin ordered snap military drills as German Chancellor Angela Merkel accused him of breaking international law in Ukraine and said NATO will defend member states against attack.
Combat readiness exercises are taking place “to defend the interests of the Russian Federation amid increasing threats to its security,” Defense Minister Sergei Shoigu said Thursday in a statement on the ministry’s website. Troops in Russia’s southern, central and western military districts, naval deployments in the Black Sea and Caspian Sea, and airborne forces are involved, he said.
The Russians don’t want to fight Turkish forces in Syria, but as they have shown in Crimea, in Ukraine and elsewhere, they are definitely not afraid to take military action when their interests require it.
And if Russia and Turkey do start fighting, that would threaten to drag the rest of NATO (including the United States) into the conflict.
Turkey has been chomping at the bit to start grabbing chunks of territory in northern Syria for quite some time now, but this invasion is going to turn out to be a tragic mistake.
President Erdogan has definitely overplayed his hand this time, and let us just hope that it doesn’t result in World War 3 erupting in the Middle East.
Did you know that our planet will be hit by more than 100,000 earthquakes of magnitude 3.0 or greater this year alone? Earlier today, I came across a report that contained this amazing fact, but it was so incredible that I felt that I had to go and verify it myself. So I went to the official USGS website, and I found out that this is actually true. Overall, there are about half a million earthquakes around the globe each year, but it is only when a quake is of about magnitude 3.0 or greater that humans actually feel them. As the very large earthquakes in Italy and Myanmar within the last 24 hours have demonstrated, the shaking of our planet is getting worse, and this is something that I have written about over and over again. So why is this happening? Why does the crust of our planet seemingly become more and more unstable with each passing year?
We need to start addressing those questions, because there aren’t too many things that can do more damage to a community than a major earthquake. Very early Wednesday morning, a magnitude 6.2 earthquake struck central Italy. It is being reported that it sounded “like a bomb” went off, and it looks like this is going to end up being the worst natural disaster to hit Italy in many years.
This earthquake rattled buildings in Rome, it could be felt in Naples to the south, and it is even being claimed that it could be felt all the way up in Bologna in the north.
The epicenter of the quake was a charming little Italian town known as Amatrice. According to Mayor Sergio Pirozzi, “the town is no more” at this point. You can see some amazing photographs of the destruction for yourself right here. Homes, churches and businesses collapsed in heaps of rubble, and at this moment rescuers are engaged in a frantic race against time to pull survivors from the wreckage…
Rescue teams using bulldozers, and aided by townspeople with their bare hands, were still poring through the piles of rock, metal and wood late Wednesday looking for possible survivors. Police near the town of Ascoli said they could hear cries for help from under the rubble but lacked the heavy equipment to move the rocks, according the RAI radio.
“We need chain saws, shears to cut iron bars, and jacks to remove beams: everything, we need everything,” civil protection worker Andrea Gentili told the Associated Press.
So far, the death toll stands at 159 people, but that number is going to go way up as more bodies are discovered. The following was reported by Reuters…
One hotel that collapsed in the small town of Amatrice probably had about 70 guests, and only seven bodies had so far been recovered, said the mayor of the town that was one of the worst hit by the quake.
But as destructive as the Italian quake was, it wasn’t even the largest earthquake on the globe on Wednesday. A huge magnitude 6.8 earthquake struck Myanmar, but because that earthquake was much deeper it didn’t do the same level of damage as the quake in Italy did…
A powerful earthquake shook Myanmar on Wednesday, killing at least three people and damaging nearly a hundred ancient Buddhist pagodas in the former capital of Bagan, a major tourist site, officials said.
The U.S. Geological Survey said the magnitude 6.8 quake was centered about 25 kilometers (15 miles) west of Chauk, a town south of Bagan. It was located fairly far below the Earth’s surface at a depth of about 84 kilometers (52 miles), it said.
Sadly, most Americans couldn’t care less about what goes on in places like Italy or Myanmar. I know that may sound terrible, but it is true.
However, Americans should care, because this global rise in earthquake activity is affecting us as well. In fact, the USGS now says that human activity may at least be partially to blame for the “dramatic increase in seismicity” that we have been witnessing in the United States in recent years…
On Monday, for the first time, the U.S. Geological Survey has released an analysis of the magnitude of “human-induced” earthquakes. That such a thing as human-induced earthquakes can exist is scary enough, but the “dramatic increase in seismicity” in places such as Oklahoma has forced the USGS to consider the threat more broadly.
“By including human-induced events, our assessment of earthquake hazards has significantly increased in parts of the U.S.,” said Mark Petersen, chief of the USGS National Seismic Hazard Mapping Project, in a statement. “This research also shows that much more of the nation faces a significant chance of having damaging earthquakes over the next year, whether natural or human-induced.”
And I wanted to note that there was a magnitude 3.9 earthquake in Colorado on Tuesday. We have started to see sizable earthquakes in many portions of the country where they are not expected, and this is going to continue to get worse as the shaking of our planet intensifies.
There is one more thing that I wanted to share with you all today. I don’t know if this is related to anything, but a blood red moon was photographed directly behind the new World Trade Center tower last night. To some people this is just a meaningless coincidence, but there are others that consider it to be a very ominous sign.
This summer, things have been relatively calm and peaceful in America. Donald Trump and Hillary Clinton have dominated the headlines, but other than the election there really hasn’t been a major crisis that has grabbed the attention of the nation.
But of course all of that could change in a moment. Despite all of our advanced technology, the truth is that we are still virtually defenseless against a major natural disaster.
Why are millions upon millions of dead sea creatures suddenly washing up on beaches all over the world? It is certainly not unusual for fish and other inhabitants of our oceans to die. This happens all the time. But over the past month we have seen a series of extremely alarming mass death incidents all over the planet. As you will see below, many of these mass death incidents have involved more than 30 tons of fish. In places such as Chile and Vietnam, it has already gotten to the level where it has started to become a major national crisis. People see their coastlines absolutely buried in dead sea creatures, and they are starting to freak out.
Compared to other countries, Chile is almost all coast, and that geographical fluke means that the country is known for its beautiful beaches. But that reputation may be on the wane thanks to a new sight on Chilean shores: dead animals. Lots of them. Heaps of them, in fact. As Giovanna Fleitas reports for the Agence France-Presse, the South American country’s beaches are covered with piles of dead sea creatures—and scientists are trying to figure out why.
Tales of dead animals washing up on shore are relatively common; after all, the ocean has a weird way of depositing its dead on shore. But Chile’s problem is getting slightly out of hand. As Fleitas writes, recent months have not been kind to the Chilean coast, which has played host to washed-up carcasses of over 300 whales, 8,000 tons of sardines, and nearly 12 percent of the country’s annual salmon catch, to name a few.
Authorities in Chile are scrambling to come up with a reason for why this is happening, but nobody appears to be quite sure what is causing this tsunami of death.
More than 200 tons of dead fish were removed from the Furnas Lake on Sunday (1st) in Alfenas (MG). According to the Military Police of the Environment, both fish raised in ponds, networks and those who are released, all of the tilapia species in the lake were affected. The damage to the psicultores is estimated at around R $ 900 thousand.
I could go on and on all day with examples such as these.
Could it be possible that these mass deaths are somehow related to the alarming earth changes that we see happening all around us?
Without a doubt, we have seen a dramatic rise in seismic activity during the early portions of 2016. There has been a series of very destructive earthquakes around the world in recent months, and once dormant volcanoes are coming to life all over the globe with distressing regularity.
Of course humanity has done much to destroy the planet as well, and we continue to deal with the aftermath of the Fukushima nuclear disaster. I do think that it is very interesting to note that most of these mass fish deaths have happened in nations that border the Pacific Ocean.
I am certainly not claiming to have an answer for why so many fish are dying. All I know is that millions upon millions of dead fish are washing up on shores all over the globe, and people are really starting to freak out about this.
We live in a world that is becoming increasingly unstable, and major disasters seem to be getting more frequent and more intense. Just look at what is happening up in Alberta right now.
I believe that we are entering the “perfect storm” that myself and so many others have been warning about for so long.
Or could it be possible that I am just being overly dramatic?
Please feel free to tell us what you think by posting a comment below…
Exports fell precipitously during the last two recessions, and now it is happening again. So how in the world can anyone make the claim that the U.S. economy is in good shape? On my website I have been repeatedly pointing out the parallels between the last two major economic downturns and the current crisis, and I am going to discuss another one today. Since peaking in late 2014, U.S. exports have been steadily declining, and this is something that we never see outside of a major recession. On the chart that I have shared below, the shaded gray bars represent the last two recessions, and you can see that exports of goods and services plunged dramatically in both instances…
The U.S. trade deficit widened more than expected in January as a strong dollar and weak global demand helped to push exports to a more than 5-1/2-year low, suggesting trade will continue to weigh on economic growth in the first quarter.
The Commerce Department said on Friday the trade gap increased 2.2 percent to $45.7 billion. December’s trade deficit was revised up to $44.7 billion from the previously reported $43.4 billion. Exports have declined for four straight months.
Because our exports are falling faster than our imports, our trade deficit is blowing out once again. Every year we buy hundreds of billions of dollars more from the rest of the world than they buy from us, and this is systematically wrecking our economy. Over the past several decades, we have lost tens of thousands of manufacturing facilities, millions of good paying manufacturing jobs, and major exporting nations such as China have become exceedingly wealthy at our expense.
We are being absolutely killed on trade, and yet very few of our politicians ever want to talk about this.
A brand new study that was recently discussed in the New York Times is bringing some renewed attention to these problems. It turns out that the promised “benefits” of merging the U.S. economy into the global economic system simply have not materialized…
In a recent study, three economists — David Autor at the Massachusetts Institute of Technology, David Dorn at the University of Zurich and Gordon Hanson at the University of California, San Diego — raised a profound challenge to all of us brought up to believe that economies quickly recover from trade shocks. In theory, a developed industrial country like the United States adjusts to import competition by moving workers into more advanced industries that can successfully compete in global markets.
They examined the experience of American workers after China erupted onto world markets some two decades ago. The presumed adjustment, they concluded, never happened. Or at least hasn’t happened yet. Wages remain low and unemployment high in the most affected local job markets. Nationally, there is no sign of offsetting job gains elsewhere in the economy. What’s more, they found that sagging wages in local labor markets exposed to Chinese competition reduced earnings by $213 per adult per year.
Another study conducted by some of the same researchers discovered that 2.4 million American jobs were lost between 1999 and 2011 due to rising Chinese imports.
The China Containerized Freight Index (CCFI), published weekly, tracks contractual and spot-market rates for shipping containers from major ports in China to 14 regions around the world. Unlike most Chinese government data, this index reflects the unvarnished reality of the shipping industry in a languishing global economy. For the latest reporting week, the index dropped 4.1% to 705.6, its lowest level ever.
How many numbers like this do we have to get before we will all finally admit that we are in the midst of a major global economic meltdown?
Here in the United States, the recent rally in the stock market has most people feeling pretty good about things these days. But the truth is that there are ups and downs during any financial crisis, and this recent rally is putting the finishing touches on a very dangerous leaning “W” pattern that could signal a big dive ahead.
The bull market from early 2009 into May 2015 looks just like every bubble in history, and I’m getting one sign after the next that we did indeed peak last May. The dominant pattern in the stock market is the “rounded top” pattern:
After trading in a steep, bubble-like channel from late 2011 into late 2014, with only 10% maximum volatility top to bottom, the market finally lost its momentum… just as the Fed finished tapering its QE. That’s because the Fed was the primary driver in this stock bubble in the first place!
Now is not the time to relax at all.
In fact, now is the time to sound the alarm louder than ever.
That is one reason why my wife and I have started up a new television program. It will be airing on Christian television, but it will also be available on YouTube as well…
As I have said before, 2016 is the year when everything changes.
So don’t be fooled just because the stock market had a couple of good weeks. The truth is that global economic activity is slowing down significantly, geopolitical instability continues to get even worse, and this political season has caused very deep, simmering tensions in the United States to rise to the surface.
Let us hope that we have a few more weeks of relative stability like we are currently experiencing so that we can have more time to get prepared, but I certainly wouldn’t count on it.
I am mourning for America, because she is dying. I am mourning for a nation that once knew such greatness but that has now fallen to depths that were once unimaginable. I am mourning for the death and destruction that are coming, and I am mourning for a future that our children and our grandchildren will never get to see. I am mourning for a nation that has refused to listen to the warnings and that now stands on the precipice of judgment. I am mourning for games that will never be played, for books that will never be finished, for family vacations that will never get to happen and for memories that will never be made. I am mourning for the economic depression that is coming, for the horror and suffering that friends and family will endure, and for the coming death of the country where I drew my first breath.
To many, these words will seem “over the top” and overly dramatic. After all, despite the thousands of problems facing this nation, things still seem very “normal” at this moment. Well, if you don’t “get” what I am saying right now, just bookmark this page and come back to it later. Eventually it will make sense to you.
Last week, I was invited to be a guest on a major television show that is beamed into the homes of millions of people in the United States and Canada. If you get a chance to view the shows that are being aired this week, you will notice that I wore all black.
I wasn’t just making a fashion statement. I was doing it because I am in mourning for America. Unlike so many that talk about the horrible things that are ahead for this country, I actually love the United States. I truly wish that this nation had become everything that it could have become. I love the part of the country where I currently live, I love the amazing people that I am constantly meeting, and I love the things that I have been able to experience just because I am an American.
Unfortunately, everything is about to change.
There are many out there that believe that America is still a great nation. Well, great nations do not murder tens of millions of their own children. As Dr. Chuck Missler has pointed out, the most dangerous place to be in America today is in a mother’s womb.
Since Roe v. Wade was decided in 1973, more than 56 million babies have been purposely destroyed in this country.
What does a nation that has murdered 56 million of its own children deserve?
I believe that we have just come out of a season of time when America has been shown exactly why it is about to be judged.
It is no accident that the undercover Planned Parenthood videos were released when they were. Now the entire world knows that we slaughter our babies, harvest their organs and sell them off to the highest bidder.
So what has the response of the American people been to the revelation of this great evil?
Yes, a small minority of Americans have gotten upset, but most people have been completely unmoved by this news.
Our government gives Planned Parenthood hundreds of millions of dollars each year, and that isn’t going to change. Planned Parenthood is just going to keep doing what they do, and the American people are just going to go back to ignoring the unprecedented holocaust that is happening behind closed doors all over the nation.
This past summer we also witnessed what I believe is the perfect bookend for the Roe v. Wade Supreme Court decision of 1973. The institution of marriage was permanently altered in all 50 states, and most of the nation greatly rejoiced.
The White House was lit up with rainbow colors to honor what the Supreme Court did. The rainbow is a symbol of God’s covenant with Noah, and in the book of Revelation there is a rainbow around the throne of God. They have taken this symbol that belongs to God, and they are using it as a symbol of their defiance.
Of course these things that I have just mentioned are just the tip of the iceberg. The truth is that evil is growing in this nation in thousands of different ways. Every year there are 20 million new cases of sexually transmitted disease in the United States, we have the highest divorce rate in the entire industrialized world, and nearly one out of every five American women say that they have been raped at some point in their lives. In the United States today, there are 60 million people that abuse alcohol and there are 22 million people that use illegal drugs. America produces more pornography than the rest of the world combined, and surveys have found that Christian men use it at just about the same rate as everyone else.
I will not be publishing an article tomorrow. In a few hours, Yom Kippur will begin where I live. It is the most solemn of all the holidays described in the Bible, and it is a time of repentance. I will be praying for myself, my family, my community and my nation.
If America had repented as a nation and had turned from her wicked ways, we would not have to go through the things that we are about to go through.
I believe that the time of grace that the United States has been given to repent is ending.
I know that this is very different from my usual format. Is it okay if I just share what is on my heart from time to time? On Thursday I will get back to sharing the facts, figures and hard information that you all have come to expect from me. But today when I woke up I just felt that I should share these things with you.
Very shortly, things are going to start changing in a major way.
America is dying, and the hardest times that any of us have ever seen are right in front of us.
The death of the dollar is coming, and it will probably be China that pulls the trigger. What you are about to read is understood by only a very small fraction of all Americans. Right now, the U.S. dollar is the de facto reserve currency of the planet. Most global trade is conducted in U.S. dollars, and almost all oil is sold for U.S. dollars. More than 60 percent of all global foreign exchange reserves are held in U.S. dollars, and far more U.S. dollars are actually used outside of the United States than inside of it. As will be described below, this has given the United States some tremendous economic advantages, and most Americans have no idea how much their current standard of living depends on the dollar remaining the reserve currency of the world. Unfortunately, thanks to reckless money printing by the Federal Reserve and the reckless accumulation of debt by the federal government, the status of the dollar as the reserve currency of the world is now in great jeopardy.
As I mentioned above, nations all over the globe use U.S. dollars to trade with one another. This has created tremendous demand for U.S. dollars and has kept the value of the dollar up. It also means that Americans can import things that they need much more inexpensively than they otherwise would be able to.
The largest exporting nations such as Saudi Arabia (oil) and China (cheap plastic trinkets at Wal-Mart) end up with massive piles of U.S. dollars…
Instead of just sitting on all of that cash, these exporting nations often reinvest much of that cash into low risk securities that can be rapidly turned back into dollars if necessary. For a very long time, U.S. Treasury bonds have been considered to be the perfect way to do this. This has created tremendous demand for U.S. government debt and has helped keep interest rates super low. So every year, massive amounts of money that gets sent out of the country ends up being loaned back to the U.S. Treasury at super low interest rates…
And it has been a very good thing for the U.S. economy that the federal government has been able to borrow money so cheaply, because the interest rate on 10 year U.S. Treasuries affects thousands upon thousands of other interest rates throughout our financial system. For example, as the rate on 10 year U.S. Treasuries has risen in recent months, so have the rates on U.S. home mortgages.
Our entire way of life in the United States depends upon this game continuing. We must have the rest of the world use our currency and loan it back to us at ultra low interest rates. At this point we have painted ourselves into a corner by accumulating so much debt. We simply cannot afford to have rates rise significantly.
For example, if the average rate of interest on U.S. government debt rose to just 6 percent (and it has been much higher than that at various times in the past), we would be paying more than a trillion dollars a year just in interest on the national debt.
But it wouldn’t be just the federal government that would suffer. Just consider what higher rates would do to the real estate market.
About a year ago, the rate on 30 year mortgages was sitting at 3.31 percent. The monthly payment on a 30 year, $300,000 mortgage at that rate is $1315.52.
If the 30 year rate rises to 8 percent, the monthly payment on a 30 year, $300,000 mortgage would be $2201.29.
Does 8 percent sound crazy to you?
It shouldn’t. 8 percent was considered to be normal back in the year 2000.
Are you starting to get the picture?
We need other countries to use our dollars and buy our debt so that we can have super low interest rates and so that we can afford to buy lots of cheap stuff from them.
Unfortunately, the truly bizarre behavior of the Federal Reserve and the U.S. government over the past several years is causing the rest of the world to lose faith in our currency. In particular, China is leading the call for a “de-Americanized” world. The following is from a recent article posted on the website of France 24…
For decades the US has benefited to the tune of trillions of dollars-worth of free credit from the greenback’s role as the default global reserve unit.
But as the global economy trembled before the prospect of a US default last month, only averted when Washington reached a deal to raise its debt ceiling, China’s official Xinhua news agency called for a “de-Americanised” world.
It also urged the creation of a “new international reserve currency… to replace the dominant US dollar”.
So why should the rest of the planet listen to China?
Well, China now accounts for more global trade than anyone else does, including the United States.
At this point, China is even importing more oil from Saudi Arabia than the United States is.
China now has an enormous amount of economic power globally, and the Chinese want the rest of the planet to start using less U.S. dollars and to start using more of their own currency. The following is from a recent article in the Vancouver Sun…
Three years after China allowed the yuan to start trading in Hong Kong’s offshore market, banks and investors around the world are positioning themselves to get involved in what Nomura Holdings Inc. calls the biggest revolution in the $5.3 trillion currency market since the creation of the euro in 1999.
And over the past few years we have seen the global use of the yuan rise dramatically…
International use of the yuan is increasing as the world’s second-largest economy opens up its capital markets. In the first nine months of this year, about 17 percent of China’s global trade was settled in the currency, compared with less than one percent in 2009, according to Deutsche Bank AG.
Of course the U.S. dollar is still king for now, but thanks to a whole host of recent international currency agreements this status is slipping. For example, China just recently signed a major currency agreement with the European Central Bank…
The swap deal will allow more trade and investment between the regions to be conducted in euros and yuan, without having to convert into another currency such as the U.S. dollar first, said Kathleen Brooks, a research director at FOREX.com.
“It’s a way of promoting European and Chinese trade, but not doing it with the U.S. dollar,” said Brooks. “It’s a bit like cutting out the middleman, all of a sudden there’s potentially no U.S. dollar risk.”
And as I have written about previously, we have seen a bunch of other similar agreements being signed all over the planet in recent years…
There are four “too big to fail” banks in the United States that each have more than 40 trillion dollars worth of total exposure to derivatives. The largest chunk of those derivatives is made up of interest rate derivatives. In case you were wondering , those four banks are JPMorgan Chase, Citibank, Bank of America and Goldman Sachs.
A huge upward surge in interest rates would absolutely devastate those banks and cause a financial crisis that would make 2008 look like a Sunday picnic.
Right now, the leader in global trade seems content to use U.S. dollars for most of their international transactions. China also seems content to hold more than a trillion dollars of U.S. government debt.
If that suddenly changes someday, the consequences for the U.S. economy will be absolutely catastrophic and every single American will feel the pain.
The standard of living that all of us are enjoying today depends largely upon China. They can bring down the hammer at any moment and they know it.
You can see it coming, can’t you? The yield on 10 year U.S. Treasuries is skyrocketing, the S&P 500 has been down for 9 of the last 11 trading days and troubling economic news is pouring in from all over the planet. The much anticipated “financial correction” is rapidly approaching, and investors are starting to race for the exits. We have not seen so many financial trouble signs all come together at one time like this since just prior to the last major financial crisis. It is almost as if a “perfect storm” is brewing, and a lot of the “smart money” has already gotten out of stocks and bonds. Could it be possible that we are heading toward another nightmarish financial crisis? Could we see a repeat of 2008 or potentially even something worse? Of course a lot of people believe that we will never see another major financial crisis like we experienced in 2008 ever again. A lot of people think that this type of “doom and gloom” talk is foolish. It is those kinds of people that did not see the last financial crash coming and that are choosing not to prepare for the next one even though the warning signs are exceedingly clear. Let us hope for the best, but let us also prepare for the worst, and right now things do not look good at all. The following are 18 signs that global financial markets are entering a horrifying death spiral…
#1 The yield on 10 year U.S. Treasuries has risen for 5 of the past 6 days, and it briefly touched the 2.90% level on Monday.
#2 Rapidly rising interest rates are spooking investors and causing them to pull money out of bonds at a very rapid pace…
Investors have yanked nearly $20 billion from bond mutual funds and exchange traded funds so far in August. That’s the fourth highest pullback ever, according to TrimTabs data. In June, investors took out $69.1 billion — the highest on record.
China and Japan led an exodus from U.S. Treasuries in June after the first signals the U.S. central bank was preparing to wind back its stimulus, with data showing they accounted for almost all of a record $40.8 billion of net foreign selling of Treasuries.
The sales were part of $66.9 billion of net sales by foreigners of long-term U.S. securities in June, a fifth straight month of outflows and the largest since August 2007, U.S. Treasury Department data showed on Thursday.
China, the largest foreign creditor, reduced its Treasury holdings to $1.2758 trillion, and Japan trimmed its holdings for a third straight month to $1.0834 trillion. Combined, they accounted for about $40 billion in net Treasury outflows.
• The $18 billion iShares iBoxx $ Investment Grade Corporate Bond fund (ticker: LQD) has fallen 7.94% since May 2, according to S&P Capital IQ. That’s including reinvested interest from the fund’s bond holdings.
• The 3.7 billion iShares Barclays 20+ Year Treasury Bond (TLT) has plunged 15.9% the same period. Longer-term bonds typically get hit harder when rates rise than shorter-term bonds. For example, the iShares Barclays 3-7 Year Treasury Bond fund (IEI) has fallen 3.2% since May 2.
• PowerShares Emerging Markets Sovereign Debt (PCY), which invests in government bonds issued in developing countries, has fallen 12.7%. The fund has $1.8 billion in assets.
#10 According to a shocking new report, Fannie Mae and Freddie Mac are masking “billions of dollars” in losses. Will they need to be bailed out again just like they were during the last financial crisis?
#11 Wal-Mart reported very disappointing sales numbers for the second quarter. Sales at stores open at least a year were down 0.3%. This is a continuation of a trend that has been building for years.
#12 U.S. consumer bankruptcies just experienced their largest quarterly increase in three years.
#14 The massive civil unrest in Egypt threatens to disrupt the steady flow of oil out of the Middle East…
After last week’s bloody crackdown by the Egyptian army, fears of a disruption of oil supplies to the West have boosted the oil price. Brent crude prices were propelled to a four-month high of $111.23 on Thursday. If the turmoil gets worse – or unrest spreads to other countries – the risk premium currently factored into the price of crude is likely to increase further.
#16 The Japanese national debt recently crossed the quadrillion yen mark, and many are expecting the Japanese financial system to start melting down at any time.
#17 In Indonesia, the stock market is “cratering“.
#18 In India, the yield on their 10 year government bonds has skyrocketed from 7.1 percent in May to 9.25 percent now.
As the coming months unfold, keep a close eye on the “too big to fail” banks both in Europe and in the United States. When the next great financial crisis strikes, they will play a starring role once again. They have been incredibly reckless, and as James Rickards told Greg Hunter during an interview the other day, we are in much worse shape to deal with a major banking crisis than we were back in 2008…
What’s going to cause the next crisis? Rickards says, “The problem in 2008 was too-big-to-fail banks. Well, those banks are now bigger. Their derivative books are bigger. In other words, everything that was wrong in 2008 is worse today.” Rickards goes on to warn, “The last time, in 2008 when the crisis started, the Fed’s balance sheet was $800 billion. Today, the Fed’s balance sheet is $3.3 trillion and increasing at $1 trillion a year.” Rickards contends, “You’re going to have a banking crisis worse than the last one because the banking system is bigger without the resources because the Fed is tapped out.” As far as the Fed ending the money printing, Rickards predicts, “My view is they won’t. The economy is fundamentally weak. We have 50 million on food stamps, 24 million unemployed and 11 million on disability, and all these numbers are going up.”
We never even came close to recovering from the last financial crisis and the last recession.
Now the next major wave of the economic collapse is coming up quickly.
I hope that you are taking this time to prepare for the approaching storm, because it is going to be very painful.