Let’s review some of the latest events of relevance that have occured around the world:
Energy prices have plummeted very significantly in the past months. What has happened? There are many factors coming into play. One is the rising dollar. Yes, the dollar has appreciated in the past few weeks. Don’t misinterpret this as strength of the U.S., much the opposite, this could be the final stop before the end of the line. A great liquidation into dollars and posteriorly a flight to gold leading to the complete collapse of the dollar. Back to oil though. Some of the fall in price also has to due with some improved techniques. Also, oil producers are anticipating low global demand in the future. Furthermore, competition amongst other things is bringing OPEC to an end. The long standing cartel is no longer going to hold prices and production.
They say low prices are really going to hurt Russia. I don’t believe that much. Only if you define their income in dollars, which there is really no point in doing. The Russians don’t even trade gas in dollars anymore, much like Iran, or India, or China…in terms of the ruble, prices haven’t fluctuated one bit.
Who this will really hurt is actually the U.S. The big increases in their production in the past years has been largely due to fracking. Lower prices might render fracking sub-marginal, since this is one of the most costly techniques.
Just this Tuesday, Russia raised its key interest rate by 650 basis points to 17% if my numbers are correct. This is supposedly to stem the recent run on the Ruble, which has depreciated a certain amount. There might be something more to it. Putin could be putting Russian Banks to the test, riding the Russian banking system of all cheap money excesses and preparing the road for a return to a gold backed currency.
Working with Russia in preparing the next world monetary system will be all the other BRIC countries.
By know I am quite certain gold is in near permanent backwardation. The condition by which the gold futures price is below the spot price. So what does it mean that gold in the future is selling at a discount? It means something’s wrong. Gold is inhert, all the gold ever mined is still in existence, and yet, how can demand be so overwhelming that people doubt that gold promises will be honoured? Well that happens when you institutionally flood gold markets with promises. The only thing keeping things together for the moment is a great deal of manipulation. In Shanghai, they have recently been calculating the “honest” price of gold. That is, by intersecting demand and supply. Comex is broken. The amount of gold claims to actual gold is over 100:1. This means that for every ounce of gold there is in existence, 1oo people think they own it. Obviously this can’t end well…
Japanese snap elections
Japan just held some snap elections having witnessed the complete failure of “Abenomics”. Unfortunately, Abe has not been displaced but has secured two thirds majority with a coalition government. I guess that means QE infinity is still on.
Spanish government nepotism
On local news, the Spanish government has introduced taxes for websites that have links to other websites. Yes, it’s actually that broad. Anyone could be liable to pay it. The most interesting case of this is the war going on between AEDE, an association of spanish news firms, and google.
Once the new legislation was introduced google simply stopped linking to these sites through google news. The result? AEDE has and will suffer huge losses from this. Who knows, perhaps they can get their friends in government to force Google to link their content and to pay for it…
All in all, it comes to show the true nature of things. Google is offering a service and creating lots of traffick. Not just Google. Any site linking someone to another place is doing that site a favour. Why should they be penalised? You know I’m not a fan of the idea of intellectul “property”.
Finally, and although I am not up to date with the specific scuffles that have been going on, I can safely say, we are at war.
As I exposed in a previous post, The U.S., on the brink of collapse, is already puttting its milicia to work. Trying to screw the Russians, creating unrest in the middle east, stealing the gold from Lybia and Ukraine and many many other things. I believe ISIS is nothing but a C.I.A. asset. They control it. Scandalous right? Well you shouldn’t be surprised. Why the fuck do you think the U.S. spends trillions a year on building up its militia. To keep world peace? It is naive not to expect the U.S. to use its military power to sustain its place at the top of the world order. Either you appreciate the reasons why the dollar is toxic, or you witness the events going on at the moment. It is harder to do the later. These things are very well kept from the masses. Don’t expect mainstream media to be informing you on the IMPORTANT things that are happening.
I will provide some links so you can further extend the quest for knowledge you have embarked.