Tag Archives: russia

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.

Gas Flow To Resume – Now Putin Pays

I’m relieved that the natural gas conflit is being resolved. But now that Europe and the markets have had a taste of the danger so much reliance on Russian gas brings… it looks like the Russians are going to be the ones paying. The market value of gas recently dropped and Europe is looking for alternative energy sources. It’s an interesting lesson… if you hold a trump card… sometimes it’s wiser to hold it and not play it… at least if you want to win the game… and not just one hand. Here’s the article that triggered that comment.

Silver Lining To The Gas Crisis In Europe

The pressure has just been turned up to get off Russian natural gas and find alternative sources of energy. I’m sure everyone in Europe has seen the light now. Those of us in North America should take heed and take a look at our own dangerously reliant position on foreign energy too. It seems far to dangerous to be so dependent on outside fuel. It seems like this should be our number one national security focus. Can you imagine the additional effect on our fragile economy if fossil fuel supplies were cut? Here’s a news story on the latest development in Europe and how they are moving to other energy sources.

What The Heck Is Moscow Thinking!?

I was amazed to see this in the news this morning… “Gas emergency declared across Europe.” Does Russia think turning off the gas supply to Europe is going to help get the folks in the Ukraine to pay their bills? Sounds like it… but is it worth some people in Europe freezing to death!? The three big take-aways for me on this are:

  1. Russia is taking a very aggressive posture with the rest of the world which just seems incredibly dangerous, and…
  2. This another example of how the economic trouble is going to escalate real trouble, and…
  3. Each of us should take this moment to remember that foreign dependence on anything as critical as fuel to heat your home is a very bad position to be in. Unfortunately we’re all in the same boat. My heart goes out to those in the cold in Europe right now. I hope this gets resolved as quickly as possible.

I don’t know about you… but I’m thinking about getitng ready to hang on tight. I think we’re really in for a bumpy ride.