Tuesday, June 9, 2015

softening up


Until recently when US leadership proved to the world it couldn’t possibly be more incompetent, at least until Clinton is put in charge ( assuming a terrorist organization not of our making doesn’t first shove a “missing” Russian nuke up D.C.’s ass in a one-upmanship over the Ukraine ), the historical norm was to hump over any potential Saudi enemies.  Iran and Iraq, repeatedly, have been systematically weakened or at least checked.  This was the small price we paid to have our worthless Greenbacks be converted over to PetroDollars, if it even cost us anything since the powers that be know a thing or two about profiting off of geopolitical jockeying.  We have lost control over things in the middle east, with a combination Chinese/Russian economic strengthening, the ethanol fiasco starving the lower rung masses, and our own kamikaze dive into the financial toilet.  But before we did that, we enforced a ten year old trade embargo to weaken up Iraq.  Not that it worked so well since we had to actually invade to thwart the spread of oil powers rejecting the Dollar, but in the aspect of weakening the population and infrastructure it did succeed.  This does point out the paper tiger our military is, the first invasion cut short since we weren’t paying for it.  Then we needed to soften up the target for ten years just to stand a chance over there ( if I can see this plain as day, I imaging our communist comrades across the ocean can as well ). 


But here is my point.  One of the worlds largest militaries ( albeit with no nuclear weapons ), with oil wealth backing it, was defeated in essence by infrastructure neglect and financial impoverishment.  Who else does this remind you of?  Minus the oil wealth or its reliant need for Chinese microchips to attain military functionality ( if some chips are Japanese, they still fall under the subtle sway of Chinese control, in the long run )?  The United States, perhaps?  We have, for all intents and purposes, been on a system of self-softening up by a self imposed trade embargo by the bankers and corporations.  All infrastructure is neglected and jerry-rigged, and all the population is being impoverished and sickened.  It won’t take much, if an enemy invaded us, for the whole system to fail.  The country might not be effectively occupied, but it will forever be split into factions and neutralized by lack of centralization.  Only an aging and drawn-down stockpile of nuclear weapons is our real deterrent, and that is a mighty thin shield to rely on ( do you ever wonder how vulnerable they all are to hacking? ).  Perhaps something to keep you up at night.  You can hide behind an illusion of One World Illuminati sparing us for some reason, but I don’t see how a resource poor but input demand rich country is any prize.  Destroyed and Balkanized, is another story.

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  1. Interesting perspective oh Fair Haired One. One could get the idea that we are screwed. We will hang ourselves before anyone else does.

    1. Not sure how much I channeled from Druid Dude on his article two or three weeks ago.

  2. You have brought up the thing about chinese being the main ones to invest in the ten year notes and I think you made nabargument about what ever would happen if they just stopped buying because they realized they were worthless. And recently it seems other fringe preparedness writers albeit less than a handful have spoke up about something dealing with the chinese. Now I dont want to sound superstitous or anything, but the last time something like that happened was... ohhh maybe 2008. When suddenly everyone became aware that the housing bubble might burst. (That was more financial less doom and gloom)


    1. You confuse me with another writer. I've said for some time that Treasuries are not about anything other than currency for oil. They all know they are worthless otherwise. The Chinese have decreased their holdings because not as many countries are trading for dollars ( Treasuries ). Also, the maturity rate went from 10 or 30 years to like six months, almost across the board.

  3. I have begun to wonder if the Middle East isn't in near constant turmoil because the Middle East elites like it that way. To me, one of the axioms of business is that uncertainty tends towards price increases. If you have a relatively widespread resource available for sale (say, petroleum) anything you can do to increase the price of the resource seems useful to the owners. Blowing some stuff up to increase the cost of petroleum seems a common enough strategy. It also tends to explain why Obama is helping set the Middle East on fire, it is merely in service of his corporate sponsors.


    1. Well, if the oil supply was contracting, and the violence was about fighting over the shrinking pie, your normal market equations don't apply. Only relatively widespread.