Kuwait

Global Leaders Rattle Their Sabers As The World Marches Toward War

The World Marches Toward War - Public DomainIran just conducted another provocative missile test, more U.S. troops are being sent to the Middle East, it was just announced that the U.S. military will be sending B-1 and B-52 bombers to South Korea in response to North Korea firing four missiles into the seas near Japan, and China is absolutely livid that a U.S. carrier group just sailed through contested waters in the South China Sea.  We have entered a season where leaders all over the globe feel a need to rattle their sabers, and many fear that this could be leading us to war.  In particular, Donald Trump is going to be under the microscope in the days ahead as other world leaders test his resolve.  Will Trump be able to show that he is tough without going over the edge and starting an actual conflict?

The Iranians made global headlines on Thursday when they conducted yet another ballistic missile test despite being warned by Trump on numerous occasions…

As tensions between the U.S. and Iran continue to mount, the semi-official news agency Tasnim is reporting that Iran’s Revolutionary Guard has successfully conducted yet another ballistic missile test, this time from a navy vessel.  Called the Hormuz 2, these latest missiles are designed to destroy moving targets at sea at ranges up to 300 km (180 miles).

Reports on the latest test quotes Amir Ali Hajizadeh, commander of the IRGC’s Aerospace Force, who confirmed that “the naval ballistic missile called Hormuz 2 successfully destroyed a target which was 250 km away.”

The missile test is the latest event in a long-running rivalry between Iran and the United States in and around the Strait of Hormuz, which guards the entrance to the Gulf. About 20% of the world’s oil passes through the waterway, which is less than 40 km wide at its narrowest point.

So how will Trump respond to this provocation?

Will he escalate the situation?  If he does nothing he will look weak, but if he goes too far he could risk open conflict.

Elsewhere in the Middle East, things are already escalating.  It is being reported that “several hundred Marines” are on the ground in Syria to support an assault on the city of Raqqa, and another 1,000 troops could be sent to Kuwait to join the fight against ISIS any day now.  The following comes from Zero Hedge…

While the Trump administration waits to decide if it will send 1,000 troops to Kuwait to fight ISIS, overnight the Washington Post reported that the US has sent several hundred Marines to Syria to support an allied local force aiming to capture the Islamic State stronghold of Raqqa. Defence officials said they would establish an outpost from which they could fire artillery at IS positions some 32km (20 miles) away. US special forces are already on the ground, “advising” the Kurdish-led Syrian Democratic Forces (SDF) alliance according to the BBC.

The defence officials told the Washington Post that the Marines were from the San Diego-based 11th Marine Expeditionary Unit, and that they had flown to northern Syria via Djibouti and Kuwait. They are to set up an artillery battery that could fire powerful 155mm shells from M777 howitzers, the officials said. Another marine expeditionary unit carried out a similar mission at the start of the Iraqi government’s operation to recapture the city of Mosul from IS last year.

Meanwhile, China is spitting mad for several reasons.  For one, the Chinese are absolutely furious that South Korea has allowed the U.S. to deploy the THAAD missile defense system on their soil…

China is lashing out at South Korea and Washington for the deployment of a powerful missile defense system known as the Terminal High Altitude Area Defense system, or THAAD, deposited at the Osan Air Base in South Korea on Monday evening.

The deployment of THAAD follows several ballistic missile tests by North Korea in recent months, including the launch of four missiles on Monday, three of which landed in the sea off the coast of Japan. Though THAAD would help South Korea protect itself from a North Korean missile attack, China is vocally protesting the deployment of the system, claiming it upsets the “strategic equilibrium” in the region because its radar will allow the United States to detect and track missiles launched from China.

Of course the U.S. needed to do something, because the North Koreans keep rattling their sabers by firing off more ballistic missiles toward Japan.

But it is one thing to deploy a missile defense system, and it is another thing entirely to fly strategic nuclear bombers into the region.

So if the Chinese were upset when THAAD was deployed, how will they feel when B-1 and B-52 bombers start showing up in South Korea?…

Earlier this week, trigger-happy Kim pushed his luck once more when he fired off four ballistic missiles into the seas near Japan.

Now US military chiefs are reportedly planning to fly in B-1 and B-52 bombers – built to carry nuclear bombs – to show America has had enough.

South Korea and the US have also started their annual Foal Eagle military exercise sending a strong warning to North Korea over its actions.

A military official said 300,000 South Korean troops and 15,000 US personnel are taking part in the operation.

The Trump administration has openly stated that all options “are on the table” when it comes to North Korea, and that includes a military strike.

It has been more than 60 years since the Korean War ended, but many are concerned that we may be closer to a new Korean War than we have been at any point since that time.

And of course our relationship with China is tumbling precariously downhill as well.  Another reason why the Chinese are extremely upset with the Trump administration is because a U.S. Navy carrier battle group led by the USS Carl Vinson sailed past islands that China claims in the South China Sea just a few weeks ago.

In China, the media openly talks about the possibility of war with the United States over the South China Sea.  Most Americans are not even aware that the South China Sea is a very serious international issue, but over in China this is a major focus.

And the U.S. military has recently made several other moves in the region that have angered the Chinese…

Also in February, the U.S. sent a dozen F-22 Raptor stealth fighters to Tindal AB in northern Australia, the closest Australian military airbase to China, for coalition training and exercises. It’s the first deployment of that many F-22s in the Pacific.

And if that didn’t get the attention of the Chinese government, the U.S. just tested four Trident II submarine-launched ballistic missiles during a nuclear war exercise, sending the simulated weapons 4,200 miles from the coast of California into the mid-Pacific. It’s the first time in three years the U.S. has conducted tests in the Pacific, and the first four-missile salvo since the end of the Cold War.

I can understand the need to look tough, but eventually somebody is going to go too far.

If you are familiar with my work, then you know that I believe that war is coming.  Things in the Middle East continue to escalate, and it is only a matter of time before a great war erupts between Israel and her neighbors.  Meanwhile, U.S. relations with both Russia and China continue to deteriorate, and this is something that I have been warning about for a very long time.

We should hope for peace, but we should also not be blind to the signs of war that are starting to emerge all over the planet.  Relatively few people anticipated the outbreak of World War I and World War II in advance, and I have a feeling that the same thing will be true for World War III.

World War 3 Could Start This Month: 350,000 Soldiers In Saudi Arabia Stand Ready To Invade Syria

War Soldiers - Public Domain350,000 soldiers, 20,000 tanks, 2,450 warplanes and 460 military helicopters are massing in northern Saudi Arabia for a military exercise that is being called “Northern Thunder”.  According to the official announcement, forces are being contributed by Saudi Arabia, the United Arab Emirates, Egypt, Jordan, Bahrain, Sudan, Kuwait, Morocco, Pakistan, Tunisia, Oman, Qatar, Malaysia and several other nations.  This exercise will reportedly last for 18 days, and during that time the airspace over northern Saudi Arabia will be closed to air traffic.  This will be the largest military exercise in the history of the region, and it comes amid rumors that Saudi Arabia and Turkey are preparing for a massive ground invasion of Syria.

If you were going to gather forces for an invasion, this is precisely how you would do it.  Governments never come out and publicly admit that forces are moving into position for an invasion ahead of time, so “military exercises” are a common excuse that gets used for this sort of thing.

If these exercises are actually being used as an excuse to mass forces near the northern Saudi border, then we should expect an invasion to begin within the next couple of weeks.  If it happens, we should expect to see the Saudi coalition storm through western Iraq and into Syria from the south, and it is likely that Turkey will come in from the north.

The goal would be to take out the Assad regime before Russia, Iran and Hezbollah could react.  For the past couple of years, Saudi Arabia, Turkey and their allies have been funding the Sunni insurgency in Syria, and they were counting on those insurgents to be able to take down the Assad regime by themselves.

You see, the truth is that ISIS was never supposed to lose in Syria.  Saudi Arabia and her allies have been funneling massive amounts of money to ISIS, and hundreds of millions of dollars of ISIS oil has been shipped into Turkey where it is sold to the rest of the world.

The major Sunni nations wanted ISIS and the other Sunni insurgent groups to take down Assad.  In the aftermath, Saudi Arabia and her allies intended to transform Syria into a full-blown Sunni nation.

But then Russia, Iran and Hezbollah stepped forward to assist the Assad regime.  Russian air support completely turned the tide of the war, and now the Sunni insurgents are on the brink of losing.

Aleppo was once the largest city in Syria, and Sunni insurgents have controlled it since 2012.  But now relentless Russian airstrikes have made it possible for Syrian, Iranian and Hezbollah ground forces to surround the city, and it is about to fall back into the hands of the Syrian government.

If this happens, the war will essentially be over.

Saudi Arabia, Turkey and their allies have invested massive amounts of time, money and effort into overthrowing Assad, and they aren’t about to walk away now.

If the war was to end right at this moment, a weakened Assad regime would remain in power, and Iran and Hezbollah would be the dominant powers in the country for years to come.  And once Assad died, it would be inevitable that Iran and Hezbollah would attempt to transform Syria into a full-blown Shiite nation.  This is something that Saudi Arabia and Turkey want to avoid at all costs.

So they are actually considering what was once absolutely unthinkable – a massive ground invasion of Syria.

But if Saudi Arabia, Turkey and their allies go in, they run the risk of a full-blown war with Russia, Iran and Hezbollah.  Just consider some of the comments that we have seen in recent days…

Reacting to a potential troop deployment, Syrian Foreign Minister Walid al-Muallem said Saturday, “Let no one think they can attack Syria or violate its sovereignty because I assure you any aggressor will return to their country in a wooden coffin.”

Pavel Krasheninnikov, a deputy of Russia’s State Duma, has warned Saudi Arabia that any military ground operation in Syria without Damascus’ consent would amount to a declaration of war, Press TV reported.

We could literally be looking at the spark that sets off World War 3.  I can’t believe that Saudi Arabia and Turkey are actually considering this.

And if it does happen, you can rest assured that Barack Obama gave them the green light to go in.

Unfortunately, it sounds like the decision may have already been made.  Just consider what Turkish Foreign Minister Mevlut Cavusoglu is saying…

“If we have such a strategy, then Turkey and Saudi Arabia may launch a ground operation,” he added, fueling concerns that a foreign troop invasion may soon further complicate the already turbulent situation in the war-torn country.

Earlier, Saudi Arabia, Bahrain and the UAE voiced their readiness to contribute troops for a ground operation in Syria on the condition that the US would lead the intervention. Damascus and its key regional ally, Iran, warned that such a foreign force would face strong resistance.

And in addition to all of the forces massing in northern Saudi Arabia, the London Independent is reporting that the Saudis have sent troops and aircraft to a military base in Turkey…

Saudi Arabia is sending troops and fighter jets to Turkey’s Incirlik military base ahead of a possible ground invasion of Syria.

The Turkish foreign minister, Mevlut Cavusoglu, confirmed the deployment in a statement to the Yeni Şafak newspaper on Saturday, days before a temporary ceasefire is due to come into force.

There are reports that Saudi officials are saying that the decision to send in ground troops is “irreversible”, and Reuters is reporting that the Syrian government claims that some Turkish troops have already entered the country…

The Syrian government says Turkish forces were believed to be among 100 gunmen it said entered Syria on Saturday accompanied by 12 pick-up trucks mounted with heavy machine guns, in an ongoing supply operation to insurgents fighting Damascus.

“The operation of supplying ammunition and weapons is continuing via the Bab al-Salama crossing to the Syrian area of Azaz,” the Syrian foreign ministry said in a letter to the U.N. Security Council published by state news agency SANA.

Of course the Turkish government is not going to confirm that report, but what we do know is that Turkey is shelling Kurdish forces on the Syrian side of the border.  The funny thing is that these Kurdish forces are actually being supported and supplied by the U.S. government.

So the Turks are not supposed to be doing this, but according to Reuters they have been doing it for two days in a row anyway…

The Turkish army shelled positions held by Kurdish-backed militia in northern Syria for a second day on Sunday, killing two fighters, the Syrian Observatory for Human Rights monitoring group said.

Turkey on Saturday demanded the powerful Syrian Kurdish YPG militia withdraw from areas that it had captured in the northern Aleppo region in recent days from insurgents in Syria, including the Menagh air base. The shelling has targeted those areas.

The hostility between Turkey and the Kurds goes back a long, long way.  The Syrian Kurds are not threatening Turkey in any way right now, but Turkey is using the instability in the region as an excuse to lob artillery shells at a hated enemy.  It is an act of naked aggression that the Obama administration should be loudly denouncing.

In addition, it is being reported that Syrian government forces have also been getting shelled by the Turkish military…

Anatolia news agency reported that the Turkish military hit Syrian government forces on Saturday, adding that the shelling had been in response to fire inflicted on a Turkish military guard post in Turkey’s southern Hatay region.

Turkish artillery targeted Syrian forces again late on Saturday, according to a military source quoted by RIA Novosti. The attack targeted the town of Deir Jamal in the Aleppo Governorate.

Needless to say, the Russians are quite alarmed by all of this.

In fact, Russian Prime Minister Dmitry Medvedev is warning about what could happen if things spiral out of control…

In the wake of Saudi Arabia’s proposal to send in ground troops on Thursday, the Russian Prime Minister claimed the move could spark a new world war.

“A ground operation draws everyone taking part in it into a war,” he told the Handelsblatt newspaper.

“The Americans and our Arab partners must consider whether or not they want a permanent war.”

If Saudi Arabia, Turkey and their allies launch an invasion and make a mad dash to take out the Assad regime in Damascus, the Russians will inevitably respond.

And if tactical nuclear weapons are necessary to keep the invading forces out of Damascus, the Russians will not be shy about using them.

I don’t know if I have ever seen a scenario which was more likely to initiate World War 3 than the one that we are watching unfold right now.

So what has the mainstream media been saying about all of this?

Incredibly, they have been almost entirely silent.  When he went looking for news about these events, James Bailey could find almost nothing on either Fox News or CNN…

I just visited the home page for Foxnews.com and found not one single mention of the insane events now unfolding in the Middle East. I could not believe it, so I used my Find tool to search for Syria and Saudi Arabia. Not one mention!

Of course that could change at any moment, but nothing there when I checked. Their stories were all about the meaningless Presidential election, which has already been decided regardless of what we think about it, and other stories about entertainment, sports, Congressional political theater, etc.

So I went to CNN and found just about the same thing with one news story about the Syrian cease fire, but when I read it there was no mention of any of the big events that have developed this week. This is truly an amazing media blackout!

But Fox News does have space to run headlines like these…

–Spanish man skipped work for 6 years, still got paid

–48 people rescued from stuck tram cars at New Hampshire ski resort

–Lovelorn elephant takes out his rage on more than a dozen cars

And CNN apparently thinks that these news stories are more important than the potential beginning of World War 3…

–Kanye West drops album, says he’s $53 million in debt

–Dutch cops train eagles to hunt drones

–Teen hands out 900 flowers to girls at school

If Saudi Arabia, Turkey and their allies are going to conduct an invasion of Syria, the most likely time for this to happen will be by the end of this month during these military exercises.

If we can get to March 1st and no invasion has happened yet, perhaps we can breathe a little sigh of relief.

But if it does happen, and the Russians and the Iranians decide to shoot back, it really could be the start of World War 3.

If you have not been paying attention up until now, you need to start, because this could literally change everything.

The Financial Apocalypse Accelerates As Middle East Stocks Crash To Begin The Week

Apocalyptic - Public DomainIt looks like it is going to be another chaotic week for global financial markets.  On Sunday, news that Iran plans to dramatically ramp up oil production sent stocks plunging all across the Middle East.  Stocks in Kuwait were down 3.1 percent, stocks in Saudi Arabia plummeted 5.4 percent, and stocks in Qatar experienced a mammoth 7 percent decline.  And of course all of this comes in the context of a much larger long-term decline for Middle Eastern stocks.  At this point, Saudi Arabian stocks are down more than 50 percent from their 2014 highs.  Needless to say, a lot of very wealthy people in Saudi Arabia are getting very nervous.  Could you imagine waking up someday and realizing that more than half of your fortune had been wiped out?  Things aren’t that bad in the U.S. quite yet, but it looks like another rough week could be ahead.  The Dow, the S&P 500 and the Nasdaq are all down at least 12 percent from their 52-week highs, and the Russell 2000 is already in bear market territory.  Hopefully this week will not be as bad as last week, but events are starting to move very rapidly now.

Much of the chaos around the globe is being driven by the price of oil.  At the end of last week the price of oil dipped below 30 dollars a barrel, and now Iran has announced plans “to add 1 million barrels to its daily crude production”…

Iran could get more than five times as much cash from oil sales by year-end as the lifting of economic sanctions frees the OPEC member to boost crude exports and attract foreign investment needed to rebuild its energy industry.

The Persian Gulf nation will be able to access all of its revenue from crude sales after the U.S. and five other global powers removed sanctions on Saturday in return for Iran’s curbing its nuclear program. The fifth-biggest producer in the Organization of Petroleum Exporting Countries had been receiving only $700 million of each month’s oil earnings under an interim agreement, with the rest blocked in foreign bank accounts. Iran is striving to add 1 million barrels to its daily crude production and exports this year amid a global supply glut that has pushed prices 22 percent lower this month.

It doesn’t take a genius to figure out what this is going to do to the price of oil.

The price of oil has already fallen more than 20 percent so far in 2016, and overall it has declined by more than 70 percent since late 2014.

When the price of oil first started to fall, a lot of people out there were proclaiming that it would be really good for the U.S. economy.  But I said just the opposite.  And of course since that time we have seen an endless parade of debt downgrades, bankruptcies and job losses.  130,000 good paying energy jobs were lost in the United States in 2015 alone because of this collapse, and things just continue to get even worse.  At this point, some are even calling for the federal government to intervene.  For example, the following is an excerpt from a CNN article that was just posted entitled “Is it time to bail out the U.S. oil industry?“…

America’s once-booming oil industry is suddenly in deep financial trouble.

The epic crash in oil prices has wiped out tens of thousands of jobs, caused dozens of bankruptcies and spooked global financial markets.

The fallout is already being felt in oil-rich states like Texas, Oklahoma and North Dakota, where home foreclosure rates are spiking and economic growth is slowing.

Now there are calls in at least some corners for the federal government to come to the rescue.

Is it just me, or is all of this really starting to sound a lot like 2008?

And of course it isn’t just the U.S. that is facing troubles.  The global financial crisis that began during the second half of 2015 is rapidly accelerating, and chaos is erupting all over the planet.  The following summary of what we have been seeing in recent days comes from Doug Noland…

The world has changed significantly – perhaps profoundly – over recent weeks. The Shanghai Composite has dropped 17.4% over the past month (Shenzhen down 21%). Hong Kong’s Hang Seng Index was down 8.2% over the past month, with Hang Seng Financials sinking 11.9%. WTI crude is down 26% since December 15th. Over this period, the GSCI Commodities Index sank 12.2%. The Mexican peso has declined almost 7% in a month, the Russian ruble 10% and the South African rand 12%. A Friday headline from the Financial Times: “Emerging market stocks retreat to lowest since 09.”

Trouble at the “Periphery” has definitely taken a troubling turn for the worse. Hope that things were on an uptrend has confronted the reality that things are rapidly getting much worse. This week saw the Shanghai Composite sink 9.0%. Major equities indexes were hit 8.0% in Russia and 5.0% in Brazil (Petrobras down 9%). Financial stocks and levered corporations have been under pressure round the globe. The Russian ruble sank 4.0% this week, increasing y-t-d losses versus the dollar to 7.1%. The Mexican peso declined another 1.8% this week. The Polish zloty slid 2.8% on an S&P downgrade (“Tumbles Most Since 2011”). The South African rand declined 3.0% (down 7.9% y-t-d). The yen added 0.2% this week, increasing 2016 gains to 3.0%. With the yen up almost 4% versus the dollar over the past month, so-called yen “carry trades” are turning increasingly problematic.

Closer to home, the crisis in Puerto Rico continues to spiral out of control.  The following is an excerpt from a letter that Treasury Secretary Jack Lew sent to Congress on Friday…

Although there are many ways this crisis could escalate further, it is clear that Puerto Rico is already in the midst of an economic collapse…

Puerto Rico is already in default. It is shifting funds from one creditor to pay another and has stopped payment altogether on several of its debts. As predicted, creditors are filing lawsuits. The Government Development Bank, which provides critical banking and fiscal services to the central government, only avoided depleting its liquidity by halting lending activity and sweeping in additional deposits from other Puerto Rico governmental entities. A large debt payment of $400 million is due on May 1, and a broader set of payments are due at the end of June.

It isn’t Michael Snyder from The Economic Collapse Blog that is saying that Puerto Rico is “in the midst of an economic collapse”.

That is the Secretary of the U.S. Treasury that is saying it.

Those that have been eagerly anticipating a financial apocalypse are going to get what they have been waiting for.

Right now we are about halfway through January, and this is the worst start to a year for stocks ever.  The Dow is down a total of 1,437 points since the beginning of 2016, and more than 15 trillion dollars of stock market wealth has been wiped out globally since last June.

Unfortunately, there are still a lot of people out there that are in denial.

There are a lot of people that still believe that this is just a temporary bump in the road and that things will return to “normal” very soon.

They don’t understand that this is just the beginning.  What we have seen so far is just the warm up act, and much, much worse is yet to come.