MOAR WAR. If war doesn’t fix things then more war is bound to, oh yes.
Iran issues an ultimatum to the US.
‘In an exclusive interview, Iran's security chief demanded that any diplomatic settlement must involve lifting the US naval blockade, releasing frozen assets, and ending hostilities in the region, including the Saudi-Houthi conflict.’
The US issues travel cautionary warnings to all their embassies in the middle east because of possible escalation of the Saudi Houthi ground and missile war.
Iran fires drones and 1 ballistic missile at Riyadh and 20 ballistic missiles at the US base in Jordan
Trump and Heseth head to the White House for meetings in response to the latest Houthi escalation. Reminder of the last couple of posts referring to possible upcoming Trump escalation in the middle east meanwhile the Iranian army is on the highest alert level.
And in Europe;
Ukraine launches their biggest ever drone attack on Moscow presumably in an attempt to prove how unsafe it is to hold elections in war time, like they don’t.
Le Monde newspaper says France is already responding militarily to Russia, not sure what they are responding to actually but it’s not actually news to anyone who has been paying attention, many NATO countries have service personnel in Ukraine assisting the Ukrainians and have done since the start. But why make it public and antagonise Russia now?
Lithuania, Latvia, and Poland say that Russia is preparing an attack on Latvia. Poland sends troops to the Polish Ukraine border as Russian missiles hit Ukrainian border targets close to Poland.
Putin's statement a few days ago repeats that Russia has no intention to move into any part of western Europe but reiterates disappointment that western Europe is not interested in any realistic peace deal.
Putin noted the failure to move forward with the Istanbul agreement, and the Anchorage compromise, and other deals that were on the table, all of which are about to be withdrawn.
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Hands up everyone who lives in a country where their government is participating in the destruction of energy infrastructure, or at least supporting it, while at the same time completely ignoring the inevitable energy crisis descending upon us all right now.
Of course they know, as mentioned before, it's all part of the plan.
An economic crisis will cause inflation which will eat away the massive government debt and after much misery there will be a golden opportunity to reset away from that nasty old fiat currency to a shiny new digital currency, and you can be issued with yours just as soon as you sign up for a new digital ID. I don’t actually have a problem with either, it’s just the authoritarian government that will come with it, that’s the problem.
So what's happening right now?
Central banks have started raising interest rates into an oil shock which when last tried in the 1970s helped push inflation into double digits.
Raising interest rates can't solve a commodities supply problem, nor can printing money. They'll do both of course because that's all they ever do in a crisis.
Raising rates battles inflation but inflation here is a symptom not the cause, the oil supply deficit is the cause and big interest rate rises now just makes everything else more expensive too. Meanwhile printing money, the other CB tool, just adds to the inflationary pressure and more money can’t change the fact the goods just aren’t there to buy.
In the 70s inflation dissolved not only the debt but all your savings as well, gold went on a huge rally and central banks today have also been buying gold at record amounts.
In the 70s we weren't carrying anything like the debt we are carrying now. After the 70s oil crisis was resolved they killed the resulting high inflation with double digit interest rates but the debt mountain is so big now we won’t be able to pay the higher interest repayments and will be facing default.
Anyway, we are currently in the inflationary stage, everything is getting more expensive and your savings are disappearing in real terms. Businesses not able to pay the higher energy costs will go bust resulting in increasing unemployment.
Central banks are using cash to buy gold, and to buy back their own bonds to try and prop up that sinking ship.
And investing in stocks or indexes today means you are basically getting heavily invested into AI and God help you when that bubble bursts.
Central banks are printing money to buy gold while the super rich are buying fallout shelters and the plain rich are buying farms, just about sums it all up.
Back to Ukraine and Zelensky tells us he just needs (another) ‘40 days to defeat Russia’, so dig deep brothers, send more money and drones and air defence missiles ASAP.
This of course comes hot on the heels of the failure of Zelensky’s last 40 day offensive and it’s all basically just theatre now, more like farce actually, meaning even he can see the end is very near.
Ukraine fired 1600 drones at Moscow in celebration of the Russian parliamentary elections but there is only evidence of 2 getting through to cause damage, this is inline with Ukraine’s own drone attack analysis (detailed in previous posts) showing a success rate of less than 1%.
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