The Economic Collapse

Now we are going to get to see what really happens to the global economy when the Strait of Hormuz is completely closed for an extended period of time. Before the war, approximately 45 percent of all Asian oil imports traveled through the Strait of Hormuz. The Chinese normally get more oil from the Middle East than anyone else, and the amount of crude oil that they have been importing has collapsed. That is not sustainable for the Chinese, and they are getting very angry. At the same time, relentless drone attacks on Russia’s energy infrastructure have forced the Russians to buy gasoline from India. If the Strait of Hormuz remains completely closed for months, global energy supplies will get extremely tight and the price of oil will go into unprecedented territory. (Read More...)

There will be no negotiations over the Strait of Hormuz. There will only be fighting. The U.S. and Iran will now engage in an all-out war for control of the Strait of Hormuz, and the consequences will be felt by every man, woman and child on the entire planet. Traffic through the Strait will be paralyzed for the foreseeable future, and there will be a severe worldwide energy supply crunch as a result. Since neither side intends to surrender, the only way that the crisis ends is for one side to achieve military victory. The U.S. military cannot take out the Iranian missiles and drones that are threatening commercial traffic through the Strait from the air. If that was possible, it would have been done already. To fully eliminate the threat of Iranian missiles and drones, it would require either boots on the ground or nuclear war, and both of those options are unthinkable. So unless a negotiated solution somehow materializes out of thin air, we have got a giant mess on our hands that has no easy solution. (Read More...)

We knew that this wasn’t over. The ill-fated “Memorandum of Understanding” may have delayed the inevitable, but now the ceasefire is dead and fighting is raging throughout the Middle East all over again. Sadly, we shall soon see just how far both sides are willing to escalate matters. In my opinion, we are going to witness some absolutely shocking escalations in the months ahead. None of the parties involved in this war have any intention of backing down, and I am convinced that some very shocking “surprises” are ahead. (Read More...)

A lot can happen in 48 hours. Just two days ago, things were relatively calm in the Middle East and global financial markets were humming along. But now everything has changed. Just like that, the ceasefire is over, the price of oil is soaring and stock prices are plummeting. It appears that all-out war in the Middle East is the scenario that we are now facing, and that has all sorts of crazy implications. I cannot even begin to describe how serious this is. The possibility of a peace agreement kept both sides from really pushing things over the edge for a long time. Now that there is no longer any hope for peace, events could spiral out of control very quickly. (Read More...)

Those that boldly proclaimed that the global energy crisis was over have been proven dead wrong. Within the past 24 hours, the Iranians have attacked numerous commercial vessels that were attempting to travel through the Strait of Hormuz. The Iranians have told the world over and over again that traffic through the Strait of Hormuz will never go back to the way that it was before the war, and they mean it. Any commercial vessels that want to go through the Strait must get permission from Iran and they must travel a very specific route that has been authorized by the Iranians. Any vessels that do not meet those requirements are subject to attack. (Read More...)

Global weather patterns have begun to resemble a Hollywood disaster movie, and the mainstream media is starting to admit what many of us have known all along. Thanks to the “Super El Niño” that is now upon us, the second half of this year is going to be really crazy. Europe was just hit by the worst heatwave that it has ever experienced. Throughout all of last week, I was writing about the “mega heat dome” that brought unprecedented temperatures to many areas of the east coast. As I write this article, an absolutely colossal storm is causing apocalyptic damage in the Pacific Ocean, and a severe lack of rainfall threatens to cause a horrifying shortage of rice in India. It is often the case that the mainstream media needlessly freaks out about things, but in this case they are right on target. (Read More...)

Did you know that the number of Americans that are out of work right now is far higher than it was at any point during the Great Recession? I know that sounds crazy, but I will prove it to you in this article. A whopping 111 million Americans do not have a job, and we are spending more than a trillion dollars a year on the social safety net that supports them. Of course we cannot afford to do this, because the national debt has already reached 39 trillion dollars and it is growing at an astounding rate. If we do not fix our economy, disaster is inevitable. (Read More...)

It is supposed to be hot on the 4th of July, but it isn’t supposed to be this hot. Temperatures will be 20 to 30 degrees above average in much of the eastern half of the country. I warned a few days ago that we were going to experience a “4th of July furnace”, and meteorologists are telling us that hundreds of new records could be established. Unfortunately, this entire summer is going to be extremely hot. The “Godzilla El Niño” that has now begun is going to mean the we will experience unusually hot weather, epic storms and severe droughts in key agricultural areas throughout the second half of this year. And that is really bad news, because it is being projected that the amount of wheat produced in the U.S. this year will be the lowest since 1877. (Read More...)