“At the end was the european who lost the last two worldwide wars. Should her bear the inverse fate of a mythic character: Saturn devoured by their sons?” Ernst Jünger (“El nudo gordiano” (1953), página 145.Translated from Spanish
For now, it looks like the US is being forced to choose between Ukraine and Israel. The UK still wants both conflicts and Europe just wants the US to die. The feeling is mutual in D.C. towards Brussels. If you can’t see that at this point, I can’t help you.
Watch Russia’s response here as everything that has unfolded so far breaks in their favor with higher oil prices, Arab solidarity with the Palestinians, and real fracturing in Europe over continuing Project Ukraine.
Unfortunately, for Israel, they have no good options here, and that means they will likely do what is ultimately in their best interests despite the wider consequences.
I would continue to advise being short Europe as Belgium made the insane error to steal the frozen Russian foreign exchange reserves and hand them to Ukraine. This was a clear provocation by the EU telling Russia there will be no peace between them in the future.
By doing this it ends any illusions that we can return to the pre-war state of international finance. Trust will have to be restored in the global system. If any countries in the EU follow Belgium’s lead, and I expect that they will, it will stop dead cold all foreign investment into the EU, ensuring a complete collapse of their stock and bond markets beginning next year.
In this case I’m talking about the hectoring bunch of virtue signaling fools running the European Union. They are all in Israel this weekend to pledge their support for Israel goading them to go to full war with the entire Arab world.
The reason they are doing this is to force the US to fight that war for Israel, the same way their anti-diplomacy picked the fight with Russia over Ukraine. Notice how the US didn’t, in the end, commit fully to Ukraine. What happens if they don’t fully commit to Israel?
What happens to Europe at that point? How many friends do you think they have left? The short answer is none. So, a sovereign debt crisis in Europe thanks to political fallout from ruinous foreign and monetary policy. Gold goes to new highs, if not extreme highs. Oil explodes on tightened supply from OPEC+ as a response to European mendacity, inflation returns with a vengeance, forcing interest rates even higher.
Commercial debt markets seize up and we have a real global crisis. There will be a margin call on the entire global Ponzi scheme. And I hate to break it to everyone, but the US is the biggest of the Ponzi schemes and the Fed has both the liquidity ($1.1 trillion in reverse repos) and the collateral (US Treasuries on its balance sheet) to provide the US banking system (not the world, this time!) whatever it needs to muddle through.
Let’s Look at the Financial Flight to Quality from Israel/Hamas TOM LUONGO
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