Damaged Beyond Repair

Week ended April 6, 2024. interesting news items to look at this week were:

Damaged Beyond Repair: It is a dark period for humanity when in the face of defeat Western Delusional Elites would not even pause but continued to provoke Russians, Muslims and Asians to an all encompassing regional/global war. Here I am talking about acts of terrorism with the Crocus Hall Massacre, the targeted killing of aid workers of World Central Kitchen and the bombing of the Iranian Consulate without a declaration of war. In my March 2 2024 Blog titled “Bipolar in a Multi-polar World” I mentioned “The talk in the West is the Neocons want another escalation as early as May 2024. Why? Because the coffers of all Western Central Banks are empty and war is the only option (TINA).” An option for “Debt Repudiation”. Superficially, these acts of terrorism served no strategic and tactical military purpose but in provoking one’s adversary for acts of violent revenge. The deeper agenda, I am afraid, is a lot more sinister because militarily such tactics are called an OODA loop (observe, orient, decide, act) (Fig. 1) .

The Anglo American Empire may be empirically orienting for a pretext for a preemptive nuclear strike against Russia and Iran. Both Russia and Iran has been very restrained in their reaction. My take is a retaliation by Russia and Iran is definitely on the cards but neither would fall into the trap of over-reaction and thereby offering any opportunity to invoke the use of tactical nukes. We should all be vigilante about this possibility as disturbance in the financial markets already showed the first signs.

(i) Blinken declaration of Ukraine joining NATO:  On April 5^th 2024, Secretary of State Antony Blinken dropped an ultra-provocative bombshell statement which is sure rile Moscow further. He told reporters Thursday in Brussels, where foreign ministers are meeting to prepare for the alliance's annual meeting in July: "Ukraine will become a member of NATO. Our purpose at the summit is to help build a bridge to that membership." (Fig. 2)

(ii) Energy and Precious Metals Outperforming Highly Hyped US Equity: In order of performance since December Powell’s confirmation of a 2024 Pivot; Silver (+14.25%), Gold (+14.21%), Uranium (+14.02%), Oil (+13.89%), S&P 500 (+9.14%) and NASDAQ (+7.71%). (Fig. 3).

This is against a background of USD interest rates stubbornly refused to drop despite a strong Wall Street desire for it to happen and a looming US Presidential Election. The only other time when energy and precious metals are rising concurrently with interest rate increases is during the 1970’s after a US default of the Bretton Woods Agreement and the value of the Reserve Currency was in serious jeopardy.  

(iii) For the Year 2023, US Real GDP showed a negative 6.5% decline without the humongous Federal Government deficient spending. (Fig. 4).

UK Research Advisory Firm MacroStrategy suggests the increase of US net federal debt of $2,369 billion only produces a US nominal increase of GDP of $1,573 billion is implying without the deficit spending, real US GDP would have shown a decline of 6.5%.  This is the reason why the US Administration employed fake headline numbers and why despite the massive layoffs and the weak economy, the Federal Reserve cannot cut interest rates. The US economy has crossed the Rubicon and is in a debt death spiral

(iv) My own calculation (Fig. 5)

and those of MacroStrategy (Fig. 6) agreed that a liquidity crunch will happen in May this year.

For those looking for security, be forewarned that there's nothing more insecure than a political promise." Harry Browne (Fig. 7). All Fiat Currency is but a political promise.

Daniel 11:36  "Then the king shall do according to his own will: he shall exalt and magnify himself above every god, shall speak blasphemies against the God of gods, and shall prosper till the wrath has been accomplished; for what has been determined shall be done. 37  He shall regard neither the God of his fathers nor the desire of women, nor regard any god; for he shall exalt himself above them all. 38  But in their place he shall honor a god of fortresses; and a god which his fathers did not know he shall honor with gold and silver, with precious stones and pleasant things. 39  Thus he shall act against the strongest fortresses with a foreign god, which he shall acknowledge, and advance its glory; and he shall cause them to rule over many, and divide the land for gain. 40  "At the time of the end the king of the South shall attack him; and the king of the North shall come against him like a whirlwind, with chariots, horsemen, and with many ships; and he shall enter the countries, overwhelm them, and pass through. 41  He shall also enter the Glorious Land, and many countries shall be overthrown; but these shall escape from his hand: Edom, Moab, and the prominent people of Ammon. 42  He shall stretch out his hand against the countries, and the land of Egypt shall not escape. 43  He shall have power over the treasures of gold and silver, and over all the precious things of Egypt; also the Libyans and Ethiopians shall follow at his heels. 44  But news from the east and the north shall trouble him; therefore he shall go out with great fury to destroy and annihilate many. 45  And he shall plant the tents of his palace between the seas and the glorious holy mountain; yet he shall come to his end, and no one will help him.