Russia

World War 3 Could Very Easily Turn Into The Very First Nuclear War In The Middle East

February 21, 2016February 21, 2016 by Michael

Saudi Arabia already has nukes, Iran probably does, and the Russians are one of the two great nuclear powers on the entire planet. So if Saudi Arabia, Turkey and their Sunni allies do decide to conduct a full-blown ground invasion of Syria, could someone ultimately decide to use nuclear weapons when their backs get pushed up against a wall? As you read this article, there are thousands of military vehicles and hundreds of thousands of troops massed along the southern border of Turkey and the northern border of Saudi Arabia. If the command is given and those forces start streaming toward Damascus, it is inevitable that the Syrians, the Iranians, Hezbollah and the Russians would fight back. It would literally be the start of World War 3, and the Saudis and the Turks are trying very hard to convince the United States to be involved. But the truth is that we don’t want any part of this conflict, because it could very easily become the very first nuclear war in the history of the Middle East.

Perhaps you didn’t know that the Saudis already have nukes. Of course the official position is that they don’t, but it is a fact that they were the ones that funded the development of Pakistan’s nuclear program. It is an open secret that the Saudis have the bomb, but nobody is really supposed to talk about it.

That is why it was so alarming what Saudi political analyst Dahham Al-‘Anzi told RT just recently…

Earlier this week a Saudi political analyst told RT’s Arab network the kingdom has a nuclear weapon.

Dahham Al-‘Anzi made the claim while saying Saudi Arabia is engaged in an effort to “minimize the Iranian threat in the Levant and Syria.”

Although Saudi Arabia has officially denied it has a nuclear weapons program and has publicly stated it opposes nuclear weapons in the Middle East, it has funded a military nuclear program and received scientific assistance from the United States and Pakistan.

You can watch video of this exchange right here…

If you don’t want to believe him, perhaps you will believe the former director of the CIA counter-terrorism operations center. He told Fox Business that everyone in the intelligence world knows the Saudis have nukes…

If the fur started flying in Syria and Russia and Iran decided to start bombing Saudi airbases, would Saudi Arabia resort to using their nukes?

Let’s hope not.

In the event of a massive ground invasion by Saudi Arabia, Turkey and their allies, it is actually more likely that Russia may decide to be the first one to use nukes. An invasion force of hundreds of thousands of troops would vastly outnumber the relatively small Russian force that is already inside Syria, and so the Russians may feel that the only way that they can keep the Sunni powers out of Damascus is to use tactical nukes.

Russia has more tactical nukes that anyone else in the world by far, and there are some reports that indicate that Russia may be prepared to use them in Syria. For example, former Associated Press reporter Robert Parry, the author of America’s Stolen Narrative, says that a source has told him that the Russians have already warned Turkey that this could potentially happen…

If Turkey (with hundreds of thousands of troops massed near the Syrian border) and Saudi Arabia (with its sophisticated air force) follow through on threats and intervene militarily to save their rebel clients, who include Al Qaeda’s Nusra Front, from a powerful Russian-backed Syrian government offensive, then Russia will have to decide what to do to protect its 20,000 or so military personnel inside Syria.

A source close to Russian President Vladimir Putin told me that the Russians have warned Turkish President Recep Tayyip Erdogan that Moscow is prepared to use tactical nuclear weapons if necessary to save their troops in the face of a Turkish-Saudi onslaught. Since Turkey is a member of NATO, any such conflict could quickly escalate into a full-scale nuclear confrontation.

Given Erdogan’s megalomania or mental instability and the aggressiveness and inexperience of Saudi Prince Mohammad bin Salman (defense minister and son of King Salman), the only person who probably can stop a Turkish-Saudi invasion is President Obama. But I’m told that he has been unwilling to flatly prohibit such an intervention, though he has sought to calm Erdogan down and made clear that the U.S. military would not join the invasion.

Are you starting to understand how serious this is?

With all of the talk of a potential invasion in recent days, the Russians are on high alert and are rapidly preparing for a direct conflict with both Saudi Arabia and Turkey. The following comes from Infowars…

Still, the Russians are taking no chances and they have put all their forces into high alert. They have very publicly dispatched a Tu-214r – her most advanced ISR (Intelligence Surveillance Reconnaissance) aircraft. You can think of the Tu-214R as an “AWACS for the ground”, the kind of aircraft you use to monitor a major ground battle (the regular Russian A-50Ms are already monitoring the Syrian airspace). In southern Russia, the Aerospace forces have organized large-scale exercises involving a large number of aircraft which would be used in a war against Turkey: SU-34s. The Airborne Forces are ready. The naval task forces off the Syrian coast is being augmented. The delivery of weapons has accelerated. The bottom line is simple and obvious: the Russians are not making any threats – they are preparing for war. In fact, by now they are ready.

In addition, it is important to remember that it is quite likely that the Iranians have nuclear weapons as well.

Of course the U.S. government and the Iranian government both insist that Iran does not have nukes, but many of those in the know insist otherwise.

For instance, you may want to consider what retired U.S. Army Major General Paul Vallely and U.S. Air Force Lt. Col. Dennis B. Haney are saying. The following comes from an article that was authored by Jerome Corsi of WND…

In a joint statement, Vallely and Haney say an accumulation of available evidence shows a coalition of Russia, China and North Korea have assisted Iran since 1979 in achieving a nuclear weapon, despite sanctions, under the guise of a domestic nuclear energy program.

Vallely explained to WND that he and Haney have taken a systematic approach to evaluating each component needed to deliver a nuclear weapon, from the development and testing of a ballistic missile system, to the design of a nuclear weapons warhead, to the development of the weapons-grade uranium needed to produce a bomb.

“To come to our conclusion that Iran is a nuclear weapons power right now, we supplemented publicly available research, plus information from intelligence sources, including Iranian resistance groups such as the National Council of Resistance of IRAN, NCRI,” Vallely explained.

I happen to agree with Vallely and Haney. I cannot prove it, but all of the intel that I have received indicates that Iran already has nukes.

Hopefully I will not be proven accurate any time soon.

It had been hoped that a cease-fire could be negotiated that would at least temporarily defuse tensions in Syria. Unfortunately, it does not look like the shooting is going to stop, and this is going to put immense pressure on both Saudi Arabia and Turkey to do something to rescue the radical Sunni militants that are on the verge of defeat. The Saudis, the Turks and their allies have poured enormous amounts of money and resources into this war over the past five years, and now they are faced with the choice of either accepting defeat or directly intervening in this conflict themselves.

But in order to conduct a full-fledged ground invasion, they are going to need justification for doing so. There are some that are suggesting that we could soon see a false flag attack that would provide that justification, so that is something to watch out for.

I can’t remember a time when our planet has been so close to World War 3 potentially beginning.

And if it does break out, I believe that it is quite likely that nuclear weapons will be used.

So what do you think?

Do you agree with me?

Please feel free to share your thoughts by posting a comment below…

Guess What Happened The Last Time The Price Of Oil Plunged Below 38 Dollars A Barrel?

December 7, 2015December 7, 2015 by Michael

On Monday, the price of U.S. oil dropped below 38 dollars a barrel for the first time in six years. The last time the price of oil was this low, the global financial system was melting down and the U.S. economy was experiencing the worst recession that it had seen since the Great Depression of the 1930s. As I write this article, the price of U.S. oil is sitting at $37.65. For months, I have been warning that the crash in the price of oil would be extremely deflationary and would have severe consequences for the global economy. Nations such as Japan, Canada, Brazil and Russia have already plunged into recession, and more than half of all major global stock market indexes are down at least 10 percent year to date. The first major global financial crisis since 2009 has begun, and things are only going to get worse as we head into 2016.

The global head of oil research at Societe Generale, Mike Wittner, says that his “head is spinning” after the stunning drop in the price of oil on Monday. Just like during the last financial crisis, we have broken the psychologically important 40 dollar barrier, and there are concerns that we could go much lower from here…

One analyst told CNBC that he believes that we could soon see the price of U.S. oil go all the way down to 32 dollars a barrel…

“We’re in a tug-of-war between a heavily shorted market and a glut of oil in the U.S. and globally, as Saudi Arabia continues to produce oil at elevated levels to maintain market share,” said Chris Jarvis at Caprock Risk Management, an energy markets consultancy in Frederick, Maryland.

“Couple this with a strengthening dollar as the market anticipates a U.S. rate hike this month, oil is heading lower with a near term target of $32 for WTI.”

Analysts at Goldman Sachs are even more pessimistic than that. According to Business Insider, they are saying that we could eventually see the price of oil go below 20 dollars a barrel…

At OPEC’s meeting on Friday, member countries decided to set its production level at 31.5 million barrels per day, and did not agree on what the new limit should be.

After OPEC’s meeting, commodity strategists at Goldman put out a note saying that oil prices could plunge another 50% in the coming months, as the oil market tries to rebalance the supply and demand situation.

That may sound really good to you, especially if you fill up your gas tank frequently. But the truth is that plunging oil prices are exceedingly bad for the U.S. economy as a whole. In recent years, the energy industry has been the primary engine for the creation of good jobs in this country, and now those firms are having to lay off people at a frightening pace. Not only that, CNBC’s Jim Cramer is warning that many of these firms may actually start going under if the price of oil doesn’t start going back up soon…

“This is not ‘longer and lower;’ this is ‘longer and much lower.’ There’s companies that are not going to be able to fund with futures; there’re companies that are not going to be able to get credit,” Cramer said on “Squawk on the Street.”

Cramer made his remarks after the Organization of the Petroleum Exporting Countries decided not to lower production on Friday.

“This was a devastating blow for the U.S. oil industry,” Cramer said.

On Monday, we witnessed another benchmark that we have not seen since the last financial crisis.

I watch a high yield bond ETF known as JNK very closely. On Monday, JNK broke below 35 for the first time since the financial crisis of 2008. Just like 40 dollar oil, this is a key psychological barrier.

So why is this important?

As I discussed last week, junk bonds crashed before stocks did in 2008, and now it is happening again. If form holds true, we should expect U.S. stocks to start tumbling significantly very shortly.

Meanwhile, another notable expert has come forward with a troubling forecast for the global economy in 2016. Just like Citigroup, Raoul Pal believes that there is a very significant chance that we will see a recession next year…

Former global macro fund manager Raoul Pal says there’s now a 65% chance of a global recession.

In July, Pal predicted that the Institute of Supply Management’s (ISM) manufacturing index would break the key level of 50 late in 2015.

On December 1, the ISM broke the 50 level for the first time since the 2008 recession, reaching 48.6.

“I use the ISM as a guide to the global business cycle, not just the US cycle,” Pal told Business Insider.

What amazes me is that so many people out there cannot see what is happening even though the next great crisis has already started. The evidence is all around us, and yet so many choose to be willingly blind.

Instead of fixing our problems after the last crisis, we just papered them over with lots of money printing and lots more debt. And of course all of this manipulation just made our long-term problems even worse. I really like how Peter Schiff put it recently…

What’s happening is pretty much what we would anticipate. I don’t see from the data any real economic recovery, certainly not in the United States.

We’re spending more money, but it’s not because we’re generating more wealth. We’re generating more debt. We’re using that borrowed money to consume and so temporarily it feels that we’re wealthier because we get to spend all that money… but we have to come to terms with paying the bill.

The bills are going to come due. Right now interest rates are being kept at zero which makes it possible to service the debt even though it’s impossible to repay it… at least we can service it. But once interest rates go up then we can’t even service it let alone repay it.

And then the party is going to come to an end.

Indeed – the party is coming to an end, and a new financial crisis is playing out in textbook fashion right in front of our eyes.

Hopefully you are already prepared for what is coming next, because it is going to be extremely painful for the U.S. economy.

Alarm Bells Go Off As 11 Critical Indicators Scream The Global Economic Crisis Is Getting Deeper

December 2, 2015December 2, 2015 by Michael

Economic activity is slowing down all over the planet, and a whole host of signs are indicating that we are essentially exactly where we were just prior to the great stock market crash of 2008. Yesterday, I explained that the economies of Japan, Brazil, Canada and Russia are all in recession. Today, I am mainly going to focus on the United States. We are seeing so many things happen right now that we have not seen since 2008 and 2009. In so many ways, it is almost as if we are watching an eerie replay of what happened the last time around, and yet most of the “experts” still appear to be oblivious to what is going on. If you were to make up a checklist of all of the things that you would expect to see just before a major stock market crash, virtually all of them are happening right now. The following are 11 critical indicators that are absolutely screaming that the global economic crisis is getting deeper…

#1 On Tuesday, the price of oil closed below 40 dollars a barrel. Back in 2008, the price of oil crashed below 40 dollars a barrel just before the stock market collapsed, and now it has happened again.

#2 The price of copper has plunged all the way down to $2.04. The last time it was this low was just before the stock market crash of 2008.

#3 The Business Roundtable’s forecast for business investment in 2016 has dropped to the lowest level that we have seen since the last recession.

#4 Corporate debt defaults have risen to the highest level that we have seen since the last recession. This is a huge problem because corporate debt in the U.S. has approximately doubled since just before the last financial crisis.

#5 The Bloomberg U.S. economic surprise index is more negative right now than it was at any point during the last recession.

#6 Credit card data that was just released shows that holiday sales have gone negative for the first time since the last recession.

#7 As I mentioned yesterday, U.S. manufacturing is contracting at the fastest pace that we have seen since the last recession.

#8 The velocity of money in the United States has dropped to the lowest level ever recorded. Not even during the depths of the last recession was it ever this low.

#9 In 2008, commodity prices crashed just before the stock market did, and late last month the Bloomberg Commodity Index hit a 16 year low.

#10 In the past, stocks have tended to crash about 12-18 months after a peak in corporate profit margins. At this point, we are 15 months after the most recent peak.

#11 If you look back at 2008, you will see that junk bonds crashed horribly. Why this is important is because junk bonds started crashing before stocks did, and right now they have dropped to the lowest point that they have been since the last financial crisis.

If just one or two of these indicators were flashing red, that would be bad enough.

The fact that all of them seem to be saying the exact same thing tells us that big trouble is ahead.

And I am not the only one saying this. Just today, a Reuters article discussed the fact that Citigroup analysts are projecting that there is a 65 percent chance that the U.S. economy will plunge into recession in 2016…

The outlook for the global economy next year is darkening, with a U.S. recession and China becoming the first major emerging market to slash interest rates to zero both potential scenarios, according to Citi.

As the U.S. economy enters its seventh year of expansion following the 2008-09 crisis, the probability of recession will reach 65 percent, Citi’s rates strategists wrote in their 2016 outlook published late on Tuesday. A rapid flattening of the bond yield curve towards inversion would be an key warning sign.

Personally, I am convinced that we are already in a recession. There is a lag in the official numbers, so often we don’t know that we are officially in one until it is well underway. For example, we now know that a recession started in early 2008, but in the summer of 2008 Ben Bernanke and our top politicians were still insisting that there was not going to be a recession. They were denying what was actually happening right in front of their eyes, and the same thing is happening now.

And of course if the government was actually using honest numbers, we would all be talking about the recession that never seems to end. According to John Williams of shadowstats.com, honest numbers would show that the U.S. economy has continually been in recession since 2005.

But just like in 2008, the “experts” at the Federal Reserve are assuring all of us that everything is going to be just fine. In fact, Janet Yellen is convinced that things are so rosy that she seems quite confident that the Fed will raise interest rates in December…

Federal Reserve Chair Janet Yellen signaled Wednesday that the Fed is all but certain to raise interest rates this month for the first time in nearly a decade, saying that gains in the economy and labor market have met the central bank’s goals.

Her comments at the Economic Club of Washington amount to the strongest indication the Fed has provided so far that it will take action at a December 15-16 meeting.

This is the exact same kind of mistake that the Federal Reserve made back in the late 1930s. They thought that the U.S. economy was finally recovering, and so interest rates were raised. That turned out to be a tragic mistake.

But this time around, any mistake that the Fed makes will have global consequences. The rising U.S. dollar is already crippling emerging markets all around the globe, and an interest rate hike will just push the U.S. dollar even higher. For much more on this, please see my previous article entitled “The U.S. Dollar Has Already Caused A Global Recession And Now The Fed Is Going To Make It Worse“.

Many people are waiting for “the big crash”, but the truth is that almost everything has crashed already.

Oil has crashed.

Commodities have crashed.

Gold and silver have crashed.

Junk bonds have crashed.

Chinese stocks have crashed.

Dozens of other stock markets around the world have already crashed.

But the “big event” that many are waiting for is the crash of U.S. stocks. And just like in 2008, it is inevitable that a U.S. stock crash will follow all of the other crashes that I just mentioned.

Sometimes I get criticized for issuing these kinds of alarms. But just think of how many people could have been helped if they would have known that the financial crisis of 2008 was going to happen ahead of time.

The exact same patterns that we experienced back then are playing out once again right in front of our eyes, and the more people that we can warn in advance the better.

World War III Draws Closer As Russia Accuses Turkey Of Being ‘Secret Allies’ With ISIS

November 30, 2015November 30, 2015 by Michael

Are Russia and Turkey on the verge of going to war? In remarks that were almost entirely ignored by the western media, Russian Foreign Minister Sergey Lavrov accused the Turkish government of being “secret allies” with ISIS on Friday. And on Monday, the Russians announced that they would be attempting to seal the border between Syria and Turkey, and we also learned that the Russians have been rushing heavy artillery units into Syria. As tensions between Russia and Turkey continue to escalate, could we be in danger of seeing World War III erupt in the Middle East?

The Russians have clearly become convinced that Turkey is at the core of the problems in Syria, and that is why the Russians now plan to completely seal Syria’s border with Turkey. Lavrov seems to think that this will represent a giant step toward defeating terror groups such as ISIS…

“We are convinced that by blocking the border we will in many respects solve the tasks to eradicate terrorism on Syrian soil.”

And the Russians are right about this. ISIS militants use Turkey as a home base, and it has been documented that Turkey has been “training ISIS militants, funneling weapons to them, buying their oil, and tending to their wounded in Turkish hospitals”.

It was already common knowledge that Turkey was doing all of these things, but now the Russian government is publicly accusing the Turkish government of being “secret allies” with ISIS. When Lavrov chose to use these words on Friday, he knew exactly what he was saying…

“We think it highly cynical when some of the countries speak about their commitment to the corresponding United Nations Security Council resolutions and declare themselves members of anti-terrorist coalitions but in reality are playing a game where terrorists are allocated the role of secret allies,” Lavrov stressed. “We have more and more questions about Ankara’s real plans and the degree of its readiness to exterminate terrorism, in particular in Syria, and its commitment to the normalization of the situation in Syria.”

So why would Turkey want to be allies with ISIS?

Well, first of all the Turkish government hates the Assad regime in Syria and would love to see it eliminated.

Secondly, ISIS has been selling hundreds of millions of dollars worth of stolen oil in Turkey, and it has been alleged that the Turkish president’s own family is involved.

This was all supposed to be on the down low, but now the Russians are extremely angry and they are airing this dirty laundry for all the world to see. On Monday, Vladimir Putin said that his government had “received additional information” that ISIS is shipping oil to Turkey on an “industrial scale”…

Russia has received additional intelligence confirming that oil from deposits controlled by Islamic State is moved through Turkey on an industrial scale, said Vladimir Putin. President Recep Erdogan said he will resign if this is confirmed.

Moscow has grounds to suspect that the Su-24 was downed by Turkish jets on November 24 to secure illegal oil deliveries from Syria to Turkey, he said speaking on the sidelines of the climate change summit in Paris on Monday.

“At the moment we have received additional information confirming that that oil from the deposits controlled by Islamic State militants enters Turkish territory on industrial scale,” he said.

“We have every reason to believe that the decision to down our plane was guided by a desire to ensure security of this oil’s delivery routes to ports where they are shipped in tankers,” Putin said.

And of course it isn’t just the Russians that are making these claims.

Mowaffak al Rubaie is a former member of the Iraqi Governing Council, and he says that sales of ISIS oil in Turkey have amounted to approximately 100 million dollars a month…

“In the last eight months ISIS has managed to sell … $800 million dollars worth of oil on the black market of Turkey. This is Iraqi oil and Syrian oil, carried by trucks from Iraq, from Syria through the borders to Turkey and sold …[at] less than 50 percent of the international oil price,” Mowaffak al Rubaie said in an interview with RT.

“Now this either get consumed inside, the crude is refined on Turkish territory by the Turkish refineries, and sold in the Turkish market. Or it goes to Jihan and then in the pipelines from Jihan to the Mediterranean and sold to the international market.”

“Money and dollars generated by selling Iraqi and Syrian oil on the Turkish black market is like the oxygen supply to ISIS and it’s operation,” he added. “Once you cut the oxygen then ISIS will suffocate.”

You can’t sell 100 million dollars of stolen oil a month without the U.S. government knowing about it.

That means that Barack Obama has been fully aware of what has been going on, and he hasn’t told the American people the truth.

One of the reasons for his silence could be the fact that the president of Turkey’s own son has been involved. Just check out what Syrian Information Minister Omran al-Zoubi said just the other day…

“All of the oil was delivered to a company that belongs to the son of Recep [Tayyip] Erdogan. This is why Turkey became anxious when Russia began delivering airstrikes against the IS infrastructure and destroyed more than 500 trucks with oil already. This really got on Erdogan and his company’s nerves. They’re importing not only oil, but wheat and historic artefacts as well.”

For much more on all of this, please see my previous article entitled “The Biggest Obama Scandal? He Knows That Turkey Is Buying Oil From ISIS And He Is Doing Nothing To Stop It“.

Previously, the Russians had promised not to commit ground forces in Syria, but now that appears to be changing.

According to Debka, the Russians have already deployed three battalions of 2S19 Msta-S self-propelled howitzers at this point…

First, a body of three battalions of 2S19 Msta-S self-propelled howitzers was deployed at Khmeimin and has already started pounding rebel lines and command centers in the area. This heavy artillery system, capable of firing 152mm bombs at a rapid pace, is a veteran of Russia’s former campaigns against Islamic terrorist groups, especially in the Russian war against Islamic rebels in Chechnya in the 1990s.

In addition to the 2S19 Msta-S self-propelled howitzers, the Russians have also brought in TOS-1 220mm multiple rocket launchers…

Another heavy weapons system that Russia brought to Syria in recent days is the TOS-1 220mm multiple rocket launcher. This system, which is mounted on the chassis of a T-72 tank, has been deployed near the embattled Syrian cities of Hama and Homs.

With each passing day, we seem to be inching ever closer to the start of World War III.

And it is important to keep in mind that if war does break out, Turkey is a member of NATO, and so the U.S. would be obligated by treaty to help defend the Turks.

So let’s keep a close eye on what is happening in the Middle East, because it could end up having tremendous implications for all of us.

The U.S. Dollar Has Already Caused A Global Recession And Now The Fed Is Going To Make It Worse

November 22, 2015November 22, 2015 by Michael

The 7th largest economy on the entire planet, Brazil, has been gripped by a horrifying recession, as has much of the rest of South America. But it isn’t just South America that is experiencing a very serious economic downturn. We have just learned that Japan (the third largest economy in the world) has lapsed into recession. So has Canada. So has Russia. The dominoes are starting to fall, and it looks like the global economic crisis that has already started is going to accelerate as we head into the end of the year. At this point, global trade is already down about 8.4 percent for the year, and last week the Baltic Dry Shipping Index plummeted to a brand new all-time record low. Unfortunately for all of us, the Federal Reserve is about to do something that will make this global economic slowdown even worse.

Throughout 2015, the U.S. dollar has been getting stronger. That sounds like good news, but the truth is that it is not. When the last financial crisis ended, emerging markets went on a debt binge unlike anything we have ever seen before. But much of that debt was denominated in U.S. dollars, and now this is creating a massive problem. As the U.S. dollar has risen, the prices that many of these emerging markets are getting for the commodities that they export have been declining. Meanwhile, it is taking much more of their own local currencies to pay back and service all of the debts that they have accumulated. Similar conditions contributed to the Latin American debt crisis of the 1980s, the Asian currency crisis of the 1990s and the global financial crisis of 2008 and 2009.

Many Americans may be wondering when “the next economic crisis” will arrive, but nobody in Brazil is asking that question. Thanks to the rising U.S. dollar, Brazil has already plunged into a very deep recession…

As Brazilian president Dilma Rousseff combats a slumping economy and corruption accusations, the country’s inflation surged above 10 percent while unemployment jumped to 7.9 percent, according to the latest official data. The dour state of affairs has Barclays forecasting a 4 percent economic contraction this year, followed by 3.3 percent shrinkage next year, the investment bank said in a research note last week.

The political and economic turmoil has recently driven the real, Brazil’s currency, to multiyear lows, a factor helping to stoke price pressures.

And as I mentioned above, Brazil is far from alone. This is something that is happening all over the planet, and the process appears to be accelerating. One of the places where this often first shows up is in the trade numbers. The following comes from an article that was just posted by Zero Hedge…

“This market is looking like a disaster and the rates are a reflection of that,” warns one of the world’s largest shipbrokers, but while The Baltic Dry Freight Index gets all the headlines – having collapsed to all-time record lows this week – it is the spefics below that headline that are truly terrifying. At a time of typical seasonal strength for freight and thus global trade around the world, Reuters reports that spot rates for transporting containers from Asia to Northern Europe have crashed a stunning 70% in the last 3 weeks alone. This almost unprecedented divergence from seasonality has only occurred at this scale once before… 2008! “It is looking scary for the market and it doesn’t look like there is going to be any life in the market in the near term.”

Many “experts” seem mystified by all of this, but the explanation is very simple.

For years, global economic growth was fueled by cheap U.S. dollars. But since the end of QE, the U.S. dollar has been surging, and according to Bloomberg it just hit a 12 year high…

The dollar traded near a seven-month high against the euro before the release of minutes of the Federal Reserve’s October meeting, when policy makers signaled the potential for an interest-rate increase this year.

A trade-weighted gauge of the greenback is at the highest in 12 years as Fed Chair Janet Yellen and other policy makers have made numerous pronouncements in the past month that it may be appropriate to boost rates from near zero at its Dec. 15-16 gathering. The probability the central bank will act next month has risen to 66 percent from 50 percent odds at the end of October.

But even though the wonks at the Federal Reserve supposedly know the damage that a strong dollar is already doing to the global economy, they seem poised to make things even worse by raising interest rates in December…

Most Federal Reserve policymakers agreed last month that the economy “could well” be strong enough in December to withstand the Fed’s first Interest rate hike in nearly a decade, according to minutes of its meeting Oct. 27-28.

The officials said global troubles had eased and a delay could increase market uncertainty and undermine confidence in the economy.

The meeting summary provides the clearest evidence yet that a majority of Fed policymakers are leaning toward raising the central bank’s benchmark rate next month, assuming the economy continues to progress.

Considering the tremendous amount of damage that has already been done to the global economy, this is one of the stupidest things that they could possibly do.

But it looks like they are going to do it anyway.

It has been said that those that refuse to learn from history are doomed to repeat it.

And right now so many of the exact same patterns that we saw just before the great financial crisis of 2008 are playing out once again right in front of our eyes.

A lot of people out there seem to assume that once we got past the September/October time frame that we were officially out of “the danger zone”.

But that is not true at all.

The truth is that we have already entered a new global economic downturn that is rapidly accelerating, and the financial shaking that we witnessed in August was just a foreshock of what is coming next.

Let us hope that common sense prevails and the Fed chooses not to raise interest rates at their next meeting.

Because if they do, it will just make the global crisis that is now emerging much, much worse.

Russia’s New ‘Nuclear Torpedo’ Can Create Giant Tsunamis And Wipe Out Entire Coastal Cities

November 16, 2015November 16, 2015 by Michael

While the eyes of the world are on ISIS, Russia is creating weapons unlike anything the world has ever seen before. Plans for a giant self-propelled nuclear torpedo that can create a giant tsunami more than 1,000 feet tall were recently “leaked by mistake” by the Russian media. Apparently the warheads on these torpedos are designed to create so much radiation “that everything living will be killed” – including those that try to survive the attack by hiding in underground shelters. These “robotic mini-submarines” would have a range of up to 10,000 kilometers and would be able to evade all existing U.S. detection systems. To say that such a weapon would be a “game changer” would be a massive understatement.

I know that you are not just going to take my word for any of this. So like I do in all of my articles, I am going to carefully document what I am saying.

The reason why we know about the plans for this new nuclear torpedo is because they were displayed on Russian state television for a few moments during a recent broadcast. According to Russian officials, this was an “accident”. The following comes from a report in the Independent…

Secret plans for a new Russian nuclear torpedo system have been shown on state-controlled television in what the Kremlin said was an accident.

A close-up of a confidential document detailing “Ocean Multipurpose System: Status-6” was broadcast for several seconds by Channel One Russia and NTV during coverage of a meeting between Vladimir Putin and military officials.

Could it be possible that this “accident” happened on purpose?

Could it be possible that it was intended as a warning for the Obama administration?

You never know.

But without a doubt, this is the kind of weapon that would keep military planners up at night. According to RT, this new nuclear torpedo is designed to create “extensive zones of radioactive contamination” that would ensure that no “military, economic, business or other activity” would occur in that area for a very long time…

The presentation slide titled “Ocean Multipurpose System: Status-6” showed some drawings of a new nuclear submarine weapons system. It is apparently designed to bypass NATO radars and any existing missile defense systems, while also causing heavy damage to “important economic facilities” along the enemy’s coastal regions.

The footnote to the slide stated that Status-6 is intended to cause “assured unacceptable damage” to an adversary force. Its detonation “in the area of the enemy coast” would result in “extensive zones of radioactive contamination” that would ensure that the region would not be used for “military, economic, business or other activity” for a “long time.”

In addition, Konstantin Sivkov of the Russian Geopolitical Academy told the BBC that this kind of weapon could be used to create a tsunami more than 1,000 feet high…

“A warhead of up to 100 megatons could produce a tsunami up to 500m (1,650ft) high, wiping out all living things 1,500km (930 miles) deep inside US territory“

As I have written about previously, a whopping 39 percent of all Americans live in counties that directly border a shoreline. The detonation of just a handful of these weapons could wipe out the entire east coast and kill off a very substantial percentage of the U.S. population.

On top of all that, the BBC is reporting that a state-run Russian publication is suggesting that these new torpedos are being fitted with extremely radioactive cobalt warheads…

According to state-run Rossiiskaya Gazeta, the destructive power attributed to the new torpedo’s warhead would fit the description of a cobalt bomb.

That would be a type of thermonuclear warhead with a layer of cobalt-59, which on detonation would be transmuted into highly radioactive cobalt-60 with a half-life longer than five years.

Such a weapon would guarantee “that everything living will be killed”, the paper said – there would not even be any survivors in bunkers.

A cobalt bomb has never been tested because of the devastating radiation it would unleash.

Worst of all, we would have no advance warning that these torpedos were coming. They can be launched from anywhere, they reportedly have a range of up to 10,000 kilometers, and they are designed to “avoid all acoustic tracking devices and other traps”…

On the diagram the giant torpedo’s range is given as “up to 10,000km” (6,200 miles) and depth of trajectory is “up to 1,000m” (3,300ft).

It was developed by Rubin, a submarine design bureau in St Petersburg.

It would, apparently, be launched by nuclear-powered submarines of the 09852 “Belgorod” and 09851 “Khabarovsk” series.

Rossiiskaya Gazeta called the torpedo a “robotic mini-submarine”, travelling at 100 knots (185km/h; 115mph), which would “avoid all acoustic tracking devices and other traps”.

We already know that Russia has been building “black hole submarines” that NATO officials admit are undetectable.

So Russia already has the capability to approach our coastlines without us even knowing about it.

But these new nuclear torpedos take the game to an entirely new level.

And of course this is not the only new weapons system that Russia has been developing in anticipation of World War III. Earlier this year, I discussed several more in an article entitled “The Next-Generation Weapons That Russia Will Use Against The United States In World War III“.

Sadly, the Obama administration seems almost totally oblivious to this threat. Our strategic nuclear forces are so outdated that floppy disks and rotary phones are still being used, and Barack Obama is fond of saying that “the Cold War’s been over for 20 years“.

Unfortunately for us, the Russians do not see things the same way. Anti-American sentiment inside Russia is at an all-time high, and every time the U.S. interferes in Syria or Ukraine the Russians get even angrier.

Just like we do, there are “talking heads” on Russian television that tell people what to think. And many of these “talking heads” on Russian television are openly talking about how war with the United States is inevitable. These days, the Russians consider themselves to be the great force for good in the world, and they consider America to be the great force for evil in the world. In fact, one of their most popular talking heads named Alexander Dugin has publicly called the U.S. the “kingdom of the Antichrist”.

And even though the Russian economy has dipped into recession, the Russians continue to feverishly prepare for war. This year alone, Russian military spending is up 33 percent.

Yes, ISIS is a far greater threat than most Americans would even dare to imagine as I discussed yesterday. In the times to come, I fully expect to see terror attacks inside this country unlike anything we have ever seen before.

But I am completely convinced that the greater long-term strategic threat is Russia.

The Russians are feverishly preparing for World War III while Barack Obama acts like it could never possibly happen.

Hopefully Obama is right, because if he is wrong the consequences for this nation will be absolutely unthinkable.

Is Barack Obama Actually TRYING To Start World War III?

October 12, 2015October 12, 2015 by Michael

Why has Barack Obama airdropped 50 tons of ammunition into areas that “moderate rebels” in Syria supposedly control? This is essentially the equivalent of poking the Russians directly in the eyes. Much of this ammunition will end up in the hands of those that the Russians are attempting to bomb into oblivion, and so to Russia it appears that we are attempting to make their job much harder. And of course the truth is that there aren’t really any “moderate rebels” in Syria at all. Nearly all of the groups that are fighting are made up primarily of radical jihadists and/or hired mercenaries. Personally, I don’t see anyone over there that you could call “the good guys”. At the end of the day, the U.S. supports just about anyone that wants to get rid of the Assad regime, and the Russians are working very hard to keep Assad in power. Just like the civil war in Ukraine, the conflict in Syria is in great danger of being transformed into a proxy war between the United States and Russia, and many fear that these conflicts could eventually be setting the stage for World War III.

The ferocity of Russian airstrikes in Syria has surprised observers all over the planet, and over the past couple of days these airstrikes have been extended to include some new areas…

Russian Air Forces have extended the range of their airstrikes on Islamic State positions in Syria to four provinces, focusing primarily on demolishing fortified installations and eliminating supply bases and the terrorists’ infrastructure.

Over the last 24 hours Russian aircraft have attacked terrorist positions in the Hama, Idlib, Latakia and Raqqa provinces of Syria. In total, 64 sorties targeted 63 Islamic State installations, among them 53 fortified zones, 7 arms depots, 4 training camps and a command post.

When I read reports like this, I am deeply troubled. The Obama administration claims that it has been bombing ISIS positions in Syria for over a year. So why in the world do these targets still exist?

Was the U.S. military incapable of finding these installations?

That doesn’t seem likely.

So why weren’t they destroyed long ago?

Did the Obama administration not want them destroyed for some reason?

What seems abundantly clear is that the Russians are doing what the Obama administration was either unwilling or unable to do. There is now mass panic among ISIS fighters, and thousands of them are fleeing the country…

An estimated 3,000 Islamic State fighters as well as militants from other extremist groups have fled Syria for Jordan fearing a renewed offensive by the Syrian army in addition to Russian airstrikes, a military official has told RIA news agency.

“At least 3,000 militants from Islamic State (IS, formerly ISIS/ISIL), al-Nusra and Jaish al-Yarmouk have fled to Jordan. They are afraid of the Syrian army having stepped up activities on all fronts and of Russian airstrikes,” the RIA source said.

The mainstream media in the United States is not talking much about this, are they?

But the U.S. media is reporting on this latest airdrop of ammunition to rebel groups in Syria. For example, the following comes from CNN…

U.S. military cargo planes gave 50 tons of ammunition to rebel groups overnight in northern Syria, using an air drop of 112 pallets as the first step in the Obama Administration’s urgent effort to find new ways to support those groups.

Details of the air mission over Syria were confirmed by a U.S. official not authorized to speak publicly because the details have not yet been formally announced.

C-17s, accompanied by fighter escort aircraft, dropped small arms ammunition and other items like hand grenades in Hasakah province in northern Syria to a coalition of rebels groups vetted by the US, known as the Syrian Arab Coalition.

If you were the Russians, how would you feel about this?

I know how I would feel.

And just as Joe Biden has previously admitted, the “moderate middle” in Syria simply does not exist. The following is an extended excerpt from a piece that was originally written by investigative journalist Nafeez Ahmed…

The first Russian airstrikes hit the rebel-held town of Talbisah north of Homs City, home to al-Qaeda’s official Syrian arm, Jabhat al-Nusra, and the pro-al-Qaeda Ahrar al-Sham, among other local rebel groups. Both al-Nusra and the Islamic State have claimed responsibility for vehicle-borne IEDs (VBIEDs) in Homs City, which is 12 kilometers south of Talbisah.

The Institute for the Study of War (ISW) reports that as part of “US and Turkish efforts to establish an ISIS ‘free zone’ in the northern Aleppo countryside,” al-Nusra “withdrew from the border and reportedly reinforced positions in this rebel-held pocket north of Homs city”.

In other words, the US and Turkey are actively sponsoring “moderate” Syrian rebels in the form of al-Qaeda, which Washington DC-based risk analysis firm Valen Globals forecasts will be “a bigger threat to global security” than IS in coming years.

Last October, Vice President Joe Biden conceded that there is “no moderate middle” among the Syrian opposition. Turkey and the Gulf powers armed and funded “anyone who would fight against Assad,” including “al-Nusra,” “al-Qaeda in Iraq (AQI),” and the “extremist elements of jihadis who were coming from other parts of the world”.

In other words, the CIA-backed rebels targeted by Russia are not moderates. They represent the same melting pot of al-Qaeda affiliated networks that spawned the Islamic State in the first place.

It has been well documented that many of these so-called “moderate rebel groups” in Syria have fought alongside ISIS and have sold weapons to them. So this false dichotomy that Barack Obama keeps trying to sell us on is just a giant fraud. The following comes from a recent Infowars report…

In September, 2014 a commander with the FSA admitted cooperating with ISIS and the al-Nusra Front.

“We are collaborating with the Islamic State and the Nusra Front by attacking the Syrian Army’s gatherings in … Qalamoun,” Bassel Idriss said. “Let’s face it: The Nusra Front is the biggest power present right now in Qalamoun and we as FSA would collaborate on any mission they launch as long as it coincides with our values.”

In July of 2014 a report in Stars and Stripes documented how the 1,000 strong Dawud Brigade, which had previously fought alongside the FSA against al-Assad, had defected in its entirety to join ISIS.

The same month factions within the FSA — including Ahl Al Athar and Ibin al-Qa’im — pledged services to the Islamic State.

Members of the Islamic State claim to cooperate with the FSA and buy weapons provided by the U.S.

“We are buying weapons from the FSA. We bought 200 anti-aircraft missiles and Koncourse anti tank weapons,” ISIS member Abu Atheer told al-Jazeera. “We have good relations with our brothers in the FSA. For us, the infidels are those who cooperate with the West to fight Islam.”

U.S. anti-tank weapons are playing a critical role in the Syrian conflict. As reported by the Washington Post, U.S.-made anti-tank missiles are being used by the rebels to destroy lots of Russian-made tanks that are being used by the Syrian army…

So successful have they been in driving rebel gains in northwestern Syria that rebels call the missile the “Assad Tamer,” a play on the word Assad, which means lion. And in recent days they have been used with great success to slow the Russian-backed offensive aimed at recapturing ground from the rebels.

Since Wednesday, when Syrian troops launched their first offensive backed by the might of Russia’s military, dozens of videos have been posted on YouTube showing rebels firing the U.S.-made missiles at Russian-made tanks and armored vehicles belonging to the Syrian army. Appearing as twirling balls of light, they zigzag across the Syrian countryside until they find and blast their target in a ball of flame.

Like I said earlier, this is looking more and more like a proxy war between the United States and Russia.

Could that be what Obama actually wants?

Obama is poking China in the eyes lately too. CNN is reporting that U.S. warships may soon be sailing into territorial waters around the Spratly Islands. These are islands that the Chinese government claims ownership over, but the U.S. government disputes that claim, and Obama seems determined to flex his muscles in the area…

The United States (US) may soon deploy war ships near China’s artificial islands in the South China Sea.

It wants to send a message that it does not recognize China’s territorial claims over the area.

This is according to a Financial Times report quoting a senior U.S. official who said its ships will sail within 12-nautical-mile zones that China claims as its territory around the Spratly Islands within the next two weeks.

If Obama sends warships into that area, there is a very real chance that they could get shot at. According to Newsweek, the Chinese are saying that they will not permit U.S. ships to violate those territorial waters under any circumstances…

“We will never allow any country to violate China’s territorial waters and airspace in the Spratly Islands, in the name of protecting freedom of navigation and overflight,” Foreign Ministry spokeswoman Hua Chunying said in response to a question about possible U.S. patrols. “We urge the related parties not to take any provocative actions, and genuinely take a responsible stance on regional peace and stability.”

Such exchanges appear to be moving China and the U.S. toward a much feared, yet long expected, military confrontation. Just as unsettling, both sides seem confident they can prevail.

Over the past couple of years our relations with China have really gone downhill very rapidly, and if the trading relationship between the two largest economies on the planet breaks down, that would have massive implications for the entire global economy.

In addition to everything above, the civil war in Ukraine continues to rage on. The United States funded, equipped, trained and organized the forces that violently overthrew the democratically-elected government in Ukraine, and then once those thugs (which actually included some neo-Nazis) took power, the Obama administration immediately recognized them as the legitimate government of Ukraine.

The Russians were absolutely infuriated by this, and they have been providing soldiers, equipment and supplies to the rebel groups that are fighting back against this new government. Of course the Russians deny that they are doing this, but it is exceedingly obvious that they are.

The rebel groups that the Russians have been backing have been doing very well and have been steadily taking ground, and this is not how the power brokers in D.C. envisioned things playing out in Ukraine. So in a desperate attempt to shift the momentum of the conflict, a bill is going through Congress that would provide “lethal military aid” to the government in Kiev. Initially the bill would have provided 200 million dollars in lethal aid, but now it has been upped to 300 million dollars. There are some that believe that the final figure will be significantly higher.

Once this bill gets passed, it will be an extremely important event. For the Russians, it will mean crossing a red line that never should have been crossed. You see, the truth is that Ukraine is Russia’s most important neighbor. Just imagine how we would feel if the Russians helped overthrow Canada’s government and then start feeding weapons to the new pro-Russian government that they helped install. That is exactly how the Russians view our meddling in Ukraine.

Earlier this year, I wrote an article in which I discussed an opinion poll that showed that 81 percent of all Russians now view the United States negatively, and only 13 percent of Russians have a positive view of this nation. Not even during the height of the Cold War were the numbers that bad.

The stage is being set for World War III, but most Americans are completely and totally oblivious to all of this because they are so wrapped up in their own little worlds.

Most Americans still seem to assume that the Russians and the Chinese are our “friends” and that any type of conflict between major global powers is impossible.

Well, the truth is that conflict has already begun in Ukraine and Syria, and tensions are rising with each passing day.

It won’t happen next week or next month, but we are on the road to World War III.

So what will the end result be? Please feel free to share your thoughts by posting a comment below…

Russia Is Going To Pass A Law Formally Dumping The U.S. Dollar

September 2, 2015September 2, 2015 by Michael

Russian President Vladimir Putin has introduced legislation that would deal a tremendous blow to the U.S. dollar. If Putin gets his way, and he almost certainly will, the U.S. dollar will be eliminated from trade between nations that belong to the Commonwealth of Independent States. In addition to Russia, that list of countries includes Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Uzbekistan. Obviously this would not mean “the death of the dollar”, but it would be a very significant step toward the end of the era of the absolute dominance of the U.S. dollar. Most people don’t realize this, but more U.S. dollars are actually used outside of the United States than are used inside this country. If the rest of the planet decides to stop accumulating dollars, using them to trade with one another, and loaning them back to us at ultra-low interest rates, we are going to be in for a world of hurt. Unfortunately for us, it is only a matter of time until that happens.

When I first read the following excerpt from a recent RT article, I was absolutely stunned…

Russian President Vladimir Putin has drafted a bill that aims to eliminate the US dollar and the euro from trade between CIS countries.

This means the creation of a single financial market between Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and other countries of the former Soviet Union.

“This would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets”, said a statement from Kremlin.

For a long time, tensions have been building between the United States and Russia over Syria, Ukraine, the price of oil and a whole host of other issues. But I didn’t anticipate that things would get to this level quite yet. It is expected that Putin’s new bill will become law, and this is only one element of a much larger trend that is now developing.

You see, the truth is that Russia and China have both been dumping dollar-denominated assets for months. The following comes from a recent piece by Mac Slavo…

Last year Russia began unloading massive amounts of their US dollar reserves. In the month of December 2014 alone Putin sold some 20% of the country’s U.S. Treasurys, a move that further increased tensions surrounding what can only be described as economic warfare between East and West.

Then, as if part of a coordinated effort, this summer it was revealed that China had implemented a similar strategy, dumping half a trillion in dollar denominated assets.

But that’s just the beginning of the end for the US dollar. Amid a major meltdown in Chinese stock markets the People’s Republic sold off billions in dollar assets last week in what was reported to be an effort to stabilize their collapsing financial markets.

And now, as Russia’s economy collapses under the weight of American and European sanctions, including what many believe to be widespread downward manipulation of oil prices, Vladimir Putin is sending a clear signal to the central bank of the world’s reserve currency.

China has the second largest economy on the entire planet, and Russia has the tenth largest. In recent years, these two superpowers have become much tighter. For example, just consider this headline from Sputnik News that I came across just today: “Crippling US Foreign Policy Draws Russia, China Closer Together“.

And I don’t know if you have noticed, but U.S. relations with China have turned rather sour lately. Lots of accusations about spying and trade violations have been flying around, and just this week five Chinese warships were spotted off the coast of Alaska. In the months ahead, expect our relationship with China to continue to unravel.

If China and Russia were to both fundamentally reject the U.S. dollar at some point, much of the rest of the world may choose to follow suit.

So why is that important?

The fact that most of the nations of the world use our dollars to trade with one another creates a tremendous amount of artificial demand for our currency. In other words, the U.S. dollar is valued much higher than it otherwise would be just because it is the de facto reserve currency of the planet.

As a result, we can import massive amounts of products at super cheap prices. When we go to Wal-Mart or the dollar store, we can fill up our carts with lots and lots of ridiculously inexpensive stuff. Our standard of living is way higher than it actually should be.

And because the U.S. dollar is used so widely in global trade, major exporting nations end up with giant piles of our currency which they have been willing to lend back to us at ultra-low interest rates. This has made it possible to fund our massively bloated federal government and to go 18 trillion dollars in debt.

If the rest of the world stops using our dollars and stops playing our game, we will be in a tremendous amount of trouble. The cost of imported products would absolutely skyrocket and our standard of living would go way down.

In addition, the federal government (along with state and local governments) would have to pay much more to borrow money which would rapidly create a gigantic debt crisis.

So Russia knows where they could really hurt us. Most of the “power” that America currently projects around the world is based on having the de facto reserve currency of the planet. If you take our financial power away, we would be far, far less imposing on the global stage. Sadly, the truth is that the U.S. military is rapidly shrinking and has largely been defanged by the Obama administration.

A lot of people that will read this article will not understand this, but it is very, very important to keep an eye on this emerging Russian/Chinese alliance. I believe that it is going to play a critical role in world events during the years ahead.

So do you agree with me or do you disagree? Please feel free to join the discussion by posting a comment below…

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