Data Point: Russia Said to Weigh Capital Controls – Reaction to Sanctions or Signal for War?

The discussions are the latest sign that U.S. and European sanctions are hurting Russia and rethink policies the central bank has sought to avoid. The Economy Ministry last week raised its estimate for this year’s outflows to $100 billion from $90 billion. Russia hasn’t had a net inflow of private capital since 2007, the year after lifted restrictions.” – Bloomberg

Russia considering capital controls simply means people are moving money out of Russia. This may be a sign that sanctions are working, as the media is reporting, or it may be a sign that war is closer and people are moving faster to take sides. Image via dw.de.

Russia Discovers Massive Arctic Oil Field

In a dramatic stroke of luck for the Kremlin, this morning there is hardly a person in the world who is happier than Russian president Vladimir Putin because overnight state-run run OAO Rosneft announced it has discovered what may be a treasure trove of black oil, one which could boost Russia’s coffers by hundreds of billions if not more, when a vast pool of crude was discovered in the Kara Sea region of the Arctic Ocean, showing the region has the potential to become one of the world’s most important crude-producing areas, arguably bigger than the Gulf Of Mexico.” – Zero Hedge

Imagine that. So surprised. Who would have guessed there was oil under the Arctic. Oh, so maybe that’s why they re-established that abandoned military base up there. Yawn. Duh.

Next up… continued world divisions and moves away from Petrodollar. Got seat belts?

USA Bombing Syria – We Just Crossed The Line

NBC News reports the attack includes drones and is expecting to hit up to 20 targets. FOX is reporting Qatar is among the arab nation coalition (along with UAE, Saudi Arabia, Jordan and Bahrain), according to Lt. Col. Oliver North, which is rather surprising given their rather well-known support for Al-Nusra.” – Zero Hedge

What line?

  1. We’re bombing a sovereign nation – Syria.
  2. ISIS only threatened to attack America.
  3. Syria & Iran have a mutual defense agreement.
  4. A Russian naval base is in Tartus, Syria.

I think history will record that The United States of America took the first real military action in World War III. Until now we’ve seen only proxy wars in places like the Middle East, Africa, and Ukraine. We’ve seen economic and diplomatic divisions form between East & West. We’ve seen other nations choose sides between the East & West. Taking these proxy wars hot is a pivotal moment.

What amazes me most is how cool the Russians and Chinese are playing all this. They don’t seem anxious to take this farther at all; which is probably why the U.S. is doing all the shooting. I don’t think the Russians or Chinese want a war with America… I think they are happy to see the economic pendulum swing back East. The PetroYuan seems to be more of a possibility every day, the BRICS in general are a growing economic and production powerhouse, the energy reserves they control rival the West. Why would they want to go to war with the West?

The West on the other hand is deep in debt, fracking ourselves to death for oil, and sparking destabilization globally at every turn.

 

 

Ukraine’s Defense Minister Accuses Moscow of Threatening to Use Tactical Nukes

Earlier [Ukraine’s Defense Minister Valery] Geletey wrote in his Facebook that the operation “to cleanse Ukraine’s east from terrorists” was over. He, however, proceeded to accuse Russia of direct military involvement in the east that followed the rebels’ “defeat.”

“A big war has come to our home, a war Europe has not seen since WWII,” Geletey wrote alleging that Russia not only attempted to secure its position on the rebel-held territories, but also advance onto other regions.

He said that Moscow – through “unofficial channels” – has “repeatedly threatened to use tactical nuclear weapons” on Ukraine if Kiev continues to resist.” – RT News

Oh great, so now if tactical nukes are used in Ukraine, it’s going to be Ukraine’s word against Russia’s word. I don’t think Putin would ever use tactical nukes to start a war because it’s one small step toward a wider nuclear war. Ukraine is just not important to Russia. All Putin has to do to apply real pressure is turn off the natural gas.

But if nuclear weapons are used, even small tactical nukes, you should assume that the safeties are coming off and we’re moving to DEFCON 2.

If that happens don’t fear it, prepare for it. Nuclear war is survivable, especially if you’re outside potential blast zones. Choosing not to prepare is like choosing to commit suicide in the most horrific way. Instead forget what Hollywood has taught you and learn what little there is to know about surviving a nuclear war. Here are some highlights:

  • 3-feet of dirt between you and radioactive fallout from a bomb can cut the radiation inside your (makeshift) shelter by 1000 times.
  • Fallout from bombs decays at a rate measured in hours not years. For every sevenfold amount of time radiation from blast fallout decays by a factor of 10.
  • The first 48 hours after a bomb blast are the most critical time to stay sheltered.
  • Expect to stay sheltered for two to four weeks depending on how much fallout lands in your area.
  • After 28 days the risk from radiation is virtually gone – except for a few longer-lived radioactive isotopes that may show up in some foods for years after, like dairy products.
  • Water and shelf stable food stores are essential.

Some things to obtain if you’re serious about preparing for nuclear war.

  • The book Nuclear War Survival Skills by Cresson Kearny. You can find it free online too.
  • Tools and materials to build an improvised shelter like a shovel, sandbags, timbers for the roof, plywood, screws/nails. An improvised shelter is mostly dirt, the lumber and sandbags give you a way to create a small space inside to hunker down.
  • Dust masks, gloves, goggles, and other protective clothing
  • Geiger counter
  • Water & shelf-stable food
  • Potassium Iodide & Apple Pectin

That’s the short version. For the longer version read that book.

President Petro Poroshenko Portrays a Prime Puppet

Ukrainian President Petro Poroshenko said Saturday his country is “very close to the point of no return” in its conflict with Russia, a point he defined as “full-scale war.” – CBC News

It’s like watching dominos fall. The West wants war so backs coup in Ukraine, and fuels proxy war with Russia. When it goes hot between Ukraine and Russia, NATO and the USA will join the fight and we’ll essentially be at war with Russia. Then watch the world will be forced to take sides divided East & West. The only question left is… will the Islamic State launch their strike on the USA before or after the Ukraine Russia war goes hot.

I sure do hope I’m wrong, but like I said, these events sure look like dominos and the momentum is strong.

Man Wins Peace Prize, Then Moves to Start World War III to Protect All Americans

As the US has acknowledged that the Islamic State group is a greater threat than Al-Qaeda, the White House is reportedly seeking domestic legal justification at home to use unlimited military force against the Sunni extremists in Iraq and Syria. On Friday, the Obama administration said that the killing of American journalist James Foley by Islamic State (IS, formerly ISIS/ISIL) militants amounts to a direct terrorist attack on the United States.” – RT USA

A growing number of Americans are realizing that it’s not just terrorism the powers-that-be are working so hard to protect us from – it’s the collapse of the U.S. Dollar they are really worried about. The economy of the West was built for speed not endurance. Piling debt upon debt can give you incredibly fast growth – and we see the results all around us – but it doesn’t give you longevity.

Economic longevity comes providing real value to the people around you. The BRICS don’t have the debt problem we have, they have economies built longevity – at least in the short-term. I suspect they will end up following in our footsteps – but for now the pendulum is swinging east.

This is the real threat, as seen by the western powers-that-be, and in a way they are right. As the pendulum swings, the west is going to feel some serious pain and we’ll be forced back to hard labor. The alternative, which the President seems set on starting, is World War. Continue reading Man Wins Peace Prize, Then Moves to Start World War III to Protect All Americans

The Forecast for Today’s Weather is Destabilization

While folks argue over the latest noise, an apparent Islamic State operative visits the White House and snaps a selfie of his other phone.

This photo, apparently taken in front of the White House, was posted to Twitter with the caption, “#AmessagefromISIStoUS We are in your state We are in your Cities We are in your streets You are our goals anywhere.” – ABC News

There’s no telling what is real anymore… but if we step back from these distractions and listen the larger narratives we can see the trends. Here’s some of the trends & noise I’m talking about:

  • People can easily entering the United States illegally. More
  • The Islamic State (aka ISIS, ISIL) is growing in strength in the Middle East and making open threats to the United States. More
  • Ebola continues to spread (and threaten to spread) across borders and alarms from health organizations sound. More
  • America becoming more involved militarily in Iraq. More
  • Tensions between America & Russia are increasing. More
  • Economic impacts to the West & East from rising tensions unknown but are trending negative. More
  • South China Sea tensions continue to rise, albeit not in the spotlight. More
  • Tensions between American citizens and our militarized police at all time high. More
  • Quantative Easing continues and rates continue at all-time low. More

What could go wrong? All kidding aside, I know a lot of people don’t like to dwell on this stuff, and truth be told I don’t either – but I think it’s important to pop our Ostrich heads out of the ground for a moment now & then to look at the direction the wind is blowing.

When you turn down the media noise one trend emerges – destabilization. That’s the undertone to all the news noise I linked to above.  All these trends have this one common denominator.

So instead of getting caught up in the chaos step back and ask yourself how you can hedge against the risk of the world destabilizing. You know like preparing for a big rain storm, only potentially bigger.

I personally think increasing self-reliance, downsizing commitments, and expecting change are good places to start. Everyone will take a different approach to preparedness but if your head is ready for it, you won’t get caught off guard as easily.

If Russia “invades” and NATO backs Ukraine – Are we effectively at war with Russia?

NATO said on Monday there was a “high probability” that Russia could launch an invasion of eastern Ukraine under the guise of a humanitarian operation, but a defiant President Vladimir Putin said Moscow was sending an aid convoy into the country.

With Ukraine reporting Russia has massed 45,000 troops on its border, European Commission President Jose Manuel Barroso also warned Putin against any military intervention in the country.” via Reuters.

YUP, looks that way. Buckle-up buttercups. Photo by REUTERS-Valentyn Ogirenko

Very Worried About This UN Vote

In the news we read:

“In the first barometer of global condemnation of Russia’s annexation of Crimea, Ukraine and its Western backers persuaded a large majority of countries in the United Nations General Assembly on Thursday to dismiss the annexation as illegal, even as Russia sought to rally world support for the idea of self-determination.” – United Nations General Assembly Vote Isolates Russia – NYTimes.com.

Instead of rambling on like so many about right & wrong and who we think is more at fault over this Ukraine thing – lets cut to the chase.

Nations around the world are lining up and taking sides on what could turn into a huge global economic split. Pictured below is a quick  yet incomplete look at how the world is splitting apart.

ukraine resolution vote results

I think we can assume that the BRICS are siding with Russia. The BRICS are the rising economic world power, a reality that must really threaten western leaders.

I may be jumping ahead, but if the BRICS chose to stand together and pick some other currency, like the Chinese Yuan, as the preferred currency for international trade, the US Dollar would loose its status as the sole world reserve currency.

What would the loss of the US Dollar’s dominance mean to main street America? 

Technically speaking it would mean that a big chunk of the world would stop demanding dollars. Lower demand of anything results in lower value. When a currency looses value quickly we experience it as rising prices on consumables like food, fuel, and services. If it happens incredibly fast we call it hyperinflation.

Will we see more inflation if the world splits economically in two?

There’s no way to tell because so much reality is papered over by the central banks and government stimulus.

What worries me is that the world leaders seem hell-bent on taking us there. They will blame each other for the mess – when they are all to blame – and the people will end up footing the bill or worse.

So in the mean time I pray they stand down and find some other way to resolve these differences – and buckle up for a rough ride just in case cool heads don’t prevail.

Chess Moves Toward World War

Dang this latest news is better than any false flag. Obama now has the smoking gun he’s been seeking and a war with Iran will seem justified.  It has been reported that Ahmadinejad’s cameraman has delivered key evidence into American hands.

“The Iranian cameraman assigned to document President Mahmoud Ahmadinejad’s recent trip to the UN has defected, and new reports claim that with his exit he has handed the US a trove of never-before-seen footage of his homeland’s nuclear facilities.” – RT.

I oppose war entirely. We didn’t go to war with India or Pakistan when they declared they had nukes. We didn’t go to war with Israel because they are suspected of having nukes.

I wish Obama would use this evidence to pressure Iran’s friends (China & Russia specifically) to help encourage Iran to work with the international community and give America & Israel no viable reason to start a war.

But sadly it looks like the joint US/Israel attack is loaded in the breech.

“After months of urging from Israeli authorities for the US to intervene in a rumored Iranian plan to procure a nuke, a source speaking on condition of anonymity tells Foreign Policy’s David Rothkopf that the two allies have come close to signing off on an attack against Iran.
Although no plan of action has been set in stone yet, the source says the attack will likely be from the sky and consist of drone strikes and bomber jets for only “a couple of hours” at best but would not require more than “a day or two” of action.” – RT

So lets just say this happens – after all it’s on the table. A couple of questions pop into my mind:

  • How will China or Russia respond? Will they jump in militarily and make WWIII official or will they continue to play their cards close to their chest and continue their subtle chess moves? I suspect the latter.
  • What will happen to the oil flow from the Middle East? We all know about the vulnerability of the Strait of Hormuz. We all know that Iran is well armed. This could go very badly for Americans at home if gas goes higher.
  • How will Americans respond? Will they support Obama and give him a landslide election or tell him to make up with Ahmadinejad and let the oil flow? I suspect both but would he seek peace?
  • Could this be the catalyst to collapse the petrodollar? An attack on Iran seems like it would have the potential to split the world in two – east & west. If this happened would oil trades cease to be made predominantly in U.S. Dollars? Seems plausible.
  • If the petrodollar collapses does the dollar collapse? Technically speaking – yes. Hyperinflation would be the result of a massive increase in the money supply, so if the demand for dollars suddenly dropped due to its abandonment for oil trades the dollar should technically drop in value – possibly collapse.
  • Would the U.S. Government go back on the gold standard to support the dollar? I think might – in fact I think the powers-that-be would do anything to protect the American way of life. There has been some speculation that the gold design features of the new $100 bill hints that this might be the case.
  • If there were a world war, and the U.S. went back on the gold standard, and replaced all old dollars with gold dollars, what would happen to all those foreign held paper dollars? Oh right, they would be made worthless – obsolete. That would also strengthen the dollar significantly and destabilize any nation relying on those old dollars.

I’m just asking questions and making guesses. I used to be a fairly good chess player and this reminds me of the thought process one uses to win. You know… if I move X, my opponent will move Y, Z, or… Q!? It’s always guess work but helps a player see ahead a few moves.

It will be interesting to see how this plays out… now I just need to go dig a bunker so I have somewhere to watch the game unfold.

Crazy world… and all for this.