War Is Coming And The Global Financial Situation Is A Lot Worse Than You May Think

city skyscrapers clock time stopwatch seconds - public domainOn the surface, things seem pretty quiet in mid-July 2016.  The biggest news stories are about the speculation surrounding Donald Trump’s choice of running mate, the stock market in the U.S. keeps setting new all-time record highs, and the media seems completely obsessed with Taylor Swift’s love life.  But underneath the surface, it is a very different story.  As you will see below, the conditions for a “perfect storm” are coming together very rapidly, and the rest of 2016 promises to be much more chaotic than what we have seen so far.

Let’s start with China.  On Tuesday, an international tribunal in the Hague ruled against China’s territorial claims in the South China Sea.  The Chinese government announced ahead of time that they do not recognize the jurisdiction of the tribunal, and they have absolutely no intention of abiding by the ruling.  In fact, China is becoming even more defiant in the aftermath of this ruling.  We aren’t hearing much about it in the U.S. media, but according to international news reports Chinese president Xi Jinping has ordered the People’s Liberation Army “to prepare for combat” with the United States if the Obama administration presses China to abandon the islands that they are currently occupying in the South China Sea…

“Chinese president Xi Jinping has reportedly ordered the People’s Liberation Army to prepare for combat,” reports Arirang.com. “U.S.-based Boxun News said Tuesday that the instruction was given in case the United States takes provocative action in the waters once the ruling is made.”

A U.S. aircraft carrier and fighter jets were already sent to the region in anticipation of the ruling, with the Chinese Navy also carrying out exercises near the disputed Paracel islands.

Last October, China said it was “not frightened” to fight a war with the U.S. following an incident where the guided-missile destroyer USS Lassen violated the 12-nautical mile zone China claims around Subi and Mischief reefs in the Spratly archipelago.

Meanwhile, the relationship between the United States and Russia continues to go from bad to worse.  The installation of a missile defense system in Romania is just the latest incident that has the Russians absolutely steaming, and during a public appearance on June 17th Russian President Vladimir Putin tried to get western reporters to understand that the world is being pulled toward war…

“We know year by year what’s going to happen, and they know that we know. It’s only you that they tell tall tales to, and you buy it, and spread it to the citizens of your countries. You people in turn do not feel a sense of the impending danger – this is what worries me. How do you not understand that the world is being pulled in an irreversible direction? While they pretend that nothing is going on. I don’t know how to get through to you anymore.

And of course the Russians have been feverishly updating and modernizing their military in preparation for a potential future conflict with the United States.  Just today we learned that the Russians are working to develop a hypersonic strategic bomber that is going to have the capability of striking targets with nuclear warheads from outer space.

Unfortunately, the Obama administration does not feel a similar sense of urgency.  The size of our strategic nuclear arsenal has declined by about 95 percent since the peak of the Cold War, and many of our installations are still actually using rotary phones and the kind of 8 inch floppy disks for computers that were widely used back in the 1970s.

But I don’t expect war with China or Russia to erupt by the end of 2016.  Of much more immediate concern is what is going on in the Middle East.  The situation in Syria continues to deteriorate, but it is Israel that could soon be the center of attention.

Back in March, the Wall Street Journal reported that the Obama administration wanted to revive the peace process in the Middle East before Obama left office, and that a UN Security Council resolution that would divide the land of Israel and set the parameters for a Palestinian state was still definitely on the table…

The White House is working on plans for reviving long-stalled Middle East negotiations before President Barack Obama leaves office, including a possible United Nations Security Council resolution that would outline steps toward a deal between the Israelis and Palestinians, according to senior U.S. officials.

And just this week, the Washington Post reported that there were renewed “rumblings” about just such a resolution…

Israel is facing a restive European Union, which is backing a French initiative that seeks to outline a future peace deal by year’s end that would probably include a call for the withdrawal of Israeli troops and the creation of a Palestinian state. There are also rumblings that the U.N. Security Council might again hear resolutions about the conflict.

For years, Barack Obama has stressed the need for a Palestinian state, and now that his second term is drawing to a close he certainly realizes that this is his last chance to take action at the United Nations.  If he is going to pull the trigger and support a UN resolution formally establishing a Palestinian state, it will almost certainly happen before the election in November.  So over the coming months we will be watching these developments very carefully.

And it is interesting to note that there is an organization called “Americans For Peace Now” that is collecting signatures and strongly urging Obama to support a UN resolution of this nature.  The following comes from their official website

Now is the time for real leadership that can revive and re-accredit the two-state solution as President Obama enters his final months in office. And he can do this – he can lay the groundwork for a two-state agreement in the future by supporting an Israeli-Palestinian two-state resolution in the United Nations Security Council.

Such a resolution would restore U.S. leadership in the Israeli-Palestinian arena. It would preserve the now-foundering two-state outcome. And it would be a gift to the next president, leaving her or him constructive options for consequential actions in the Israeli-Palestinian arena, in place of the ever-worsening, politically stalemated status quo there is today.

Sadly, a UN resolution that divides the land of Israel and that formally establishes a Palestinian state would not bring lasting peace.  Instead, it would be the biggest mistake of the Obama era, and it would set the stage for a major war between Israel and her neighbors.  This is something that I discussed during a recent televised appearance down at Morningside that you can watch right here

At the same time all of this is going on, the global economic crisis continues to escalate.  Even though U.S. financial markets are in great shape at the moment, the same cannot be said for much of the rest of the world.

Just look at the country that is hosting the Olympics this summer.  Brazil is mired in the worst economic downturn that it has seen since the Great Depression of the 1930s, and Rio de Janeiro’s governor has declared “a state of financial emergency“.

Next door, the Venezuelan economy has completely collapsed, and some people have become so desperate that they are actually hunting cats, dogs and pigeons for food.

Elsewhere, China is experiencing the worst economic downturn that they have seen in decades, the Japanese are still trying to find the end of their “lost decade”, and the banking crisis in Europe is getting worse with each passing month.

In quite a few articles recently, I have discussed the ongoing implosion of the biggest and most important bank in Germany.  But I am certainly not the only one warning about this.  In one of his recent articles, Simon Black also commented on the turmoil at “the most dangerous bank in Europe”…

Well-capitalized banks are supposed to have double-digit capital levels while making low risk investments.

Deutsche Bank, on the other hand, has a capital level of less that 3% (just like Lehman), and an incredibly risky asset base that boasts notional derivatives exposure of more than $70 trillion, roughly the size of world GDP.

But of course Deutsche Bank isn’t getting a lot of attention from the mainstream media right now because of the stunning meltdown of banks in Italy, Spain and Greece.  Here is more from Simon Black

Italian banks are sitting on over 360 billion euros in bad loans right now and are in desperate need of a massive bailout.

IMF calculations show that Italian banks’ capital levels are among the lowest in the world, just ahead of Bangladesh.

And this doesn’t even scratch the surface of problems in other banking jurisdictions.

Spanish banks have been scrambling to raise billions in capital to cover persistent losses that still haven’t healed from the last crisis.

In Greece, over 35% of all loans in the banking system are classified as “non-performing”.

Even though U.S. stocks are doing well for the moment, the truth is that trillions of dollars of stock market wealth has been lost globally since this time last year.  If you are not familiar with what has been going on around the rest of the planet, this may come as a surprise to you.  During my recent appearance at Morningside, I shared some very startling charts which show how dramatically global markets have shifted over the past 12 months.  You can view the segment in which I shared these charts right here

I would really like it if the rest of 2016 was as quiet and peaceful as the past couple of days have been.

Unfortunately, I don’t believe that is going to be the case at all.

The storm clouds are rising and the conditions for a “perfect storm” are brewing.  Sadly, most people are not going to understand what is happening until it is far too late.

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  • Fedro

    Michael Snyder = Fearporner + Fake Christian + Zionist shill

    Snyder’s ultimate goal is to persuade ignorant and gullible audiences to purchase the garbage advertised on his website.

    If GW Blog still keeps reposting Snyder’s garbage is simply because it gets a commission for referrals.

    End of story.

  • Brockland A.T.

    There are better reasons to prep; America’s crumbling infrastructure for example, could disrupt power, water, communications, and food delivery on the local scale with increasing frequency. The end of convenience consumerism is not necessarily the end of the world.

    http://www.reuters.com/article/us-usa-infrastructure-idUSKCN0Y12K6

    The end of political freedoms – civil rights and freedoms, is far more concerning. War is a big part of the disruption; that 2 trillion spent on Afghanistan was badly needed for American schools, roads, bridges and the electric and communications grid. However, no-one’s coming for America with hot war. America went there first. Breaking the antiwar movement was concurrent with breaking democracy and civil rights.

    Its annoying to see Snyder constantly feeding End Timer fantasies of war and social collapse when there are so many willing to make them self-fulfilling fantasies for real, right under everyone’s noses, under a different form. Simple misdirection. The great enemy is within – not in Russia and China.

    Prepping today is a shadow of what it was when it was survivalism, and surviving real nuclear war wasn’t possible. What is happening, was foreshadowed by pundits in elite orbit like Gwynn Dyer as early as 2009-10, just before the regime change wars in Libya and Iraq. The game of thrones looks very much like musical chairs to the tune of climate change.

    Brexit, for example, looks a lot like the U.K. and Euro elites feuding over ‘lifeboat Britain’. The breaking of major Rimland Middle Eastern and African powers and the EU migrant/refugee crisis, looks like a dry run for the envisaged climate calamity to come – in 40 years time, not immediately tomorrow.

    MacKinder, it seems, has another layer that’s been consistently overlooked or underplayed, connection unmade however the issues are played up in plain sight.

    https://www.youtube.com/watch?v=aRLg8No0RVQ

  • How well did the 1947-48 UN Mandate for the division of Palestine work to establish a lasting peace? Israeli terror gangs attacked the Palestinian people before the State of Israel even officially existed, massacring 1300 people plus peacekeeping troops in Jaffa, which was supposed to be in a UN-protected zone. Then the UN did nothing while 700,000 Palestinians were ethnically cleansed from their homes and more than 10,000 were murdered, which is why we still have this ongoing problem today.

    Israel doesn’t want peace, they never did want peace, all that they have ever wanted is to seize all of Palestine from the Palestinian people by any means necessary, and they most-certainly do not want the UN to give any part of Israel, Gaza, or the West Bank to the creation of a Palestinian State. Israel is also nuclear-armed and my guess is that they wouldn’t hesitate to use their nuclear weapons to strike at any country that tries to stand-up for the Palestinians militarily at this point either, but we helped create this problem and have stood in the way of a just peace for many years too, so maybe it is time for us to lie in the coffin that we have created for ourselves too.

    Say, what is going on with a new gold-backed BRICS reserve trading currency? Even though our economy is allegedly strong with our local jobless rate in Denver under 4%, lately I have noticed a big dropoff in elective consumer spending as the cost of living seems to be rising at an out-of-control rate here. Now gold is up by more than 30% since January and silver by roughly 50% too. Has our Dollar lost that much value since January and if so what is the cause, as this kind of news is being obviously being hushed-up?

    • Pebbleson

      On the above, compare the Israeli offers of peace from even before it was formed to the present, i.e., 1947, 1948, 1967-8, 1978, 1993-4, 2000, 2001, 2008, 2013, and still today, with no good faith or genuine responses from the Palestinians (usually only responding with increased terrorism), even mostly with blunt refusals even to sit down to negotiate, as at present. He also ignores that Israel did actually withdraw from Gaza in 2005 to give the Palestinians a chance to demonstrate good will, build their own constructive state, and thus prove worthy of being a peace partner. The response was not a democratic state, but over ten thousand rockets into Israel territory from Hamastan, along with an offical pledge never to make peace with Israel under any circumstances whatsoever, since all land in the Middle East belongs to Muslims by God’s decree, and all Jews must be annihilated.

      Obviously, Mr. Richardson is seized of a severe moral illness well-known to those of us familiar with the history of the last century and the first years of this one, a continuous history of illusion and hate as illustrated by Hezbollah documents, the P.L.O. “National Covenant” and the Hamas Charter, all created by global terrorist organizations and citing Nazi-promoted fictional writings. Therefore, none of the above statements about Israel have any correspondence with reality. Cf. Mitchell Bard, Myths and Facts: A Guide to the Arab-Israeli Conflict, the entire book available on-line, for a first pithy but factual response to such propaganda. Even more pithy, but also very pointed, is Alan Dershowitz, The Case for Israel.

      • Israel didnt exist in 1947 and were at war ethnically cleansing 700,000 Palestinians from their homes from a week before Israel even became a country in May, 1948 right through the summer of 1949, by which time they had massacred more than 10,000 men, women, and children and had stolen the land and property of 700,000 others. In the spring of 2013 it waa Israel that refused to accept the two-State solution pushed by the US, the same two-State solution that President Carter pushed for in the 1970s. Where do you get your garbage alleged facts from anyway, the official history of Israel that the Israeli government forced you to learn?

        • Pebbleson

          As I pointed out in my original comment, already before Israel existed the leaders of the Jewish Yishuv, the community in British Mandate Palestine, with David Ben Gurion himself at their head, offered peace to the Arab countries round about, and in fact its leaders pleaded with Arabs in Haifa, Jaffa and elsewhere to remain and not to flee. This is a matter of the historical record. There was no Israeli policy of ethnic cleansing. The Arabs fled urged on to do so by the Arab leadership itself in Damascus and elsewhere. But over one hundred thousand refused to flee, and they immediately became full citizens of the new State of Israel with the sort of freedoms still not found in the Palestinian Authority, Gaza, or anywhere else in the Middle East — least of all by the “Palestinian refugees” still imprisoned in “refugee camps” in the P.A. itself and in Gaza, unable to work, choose their own residence, or live normal lives, forced onto welfare with all its terrible psychological consequences so that the Palestinian elite can pocket the international aid that floods in and which seldom reaches the “refugees” themselves.

          The record of the refusal by the Arab countries round about and the subsequent Palestinians themselves to engage in peace talks is also emphatically stated in all reliable historical accounts, including those hostile to Israel … since the refusal was emphatically stated by the Arabs themselves, and even boasted of, e.g., in 1949 at the time of the armistice forced upon the Arabs by Israel’s victorious survival of Arab efforts at ethnic cleansing of all Jews, at the Khartoum Conference after the Six-Day War of 1967, and by Yasser Afafat after Camp David in 2000, among many other public statements.

          I am so pleased that you are concerned about “ethnic cleansing,” though, Mark, and that you consider such goals a very black mark and crime against humanity — even if you err in accusing Israel of it. For I am sure that you would therefore utterly condemn the official Palestinian Authority non-negotiable demand that all Jewish “settlements” within any borders of their hoped-for “State of Palestine” must be expunged, eliminated, ethnically cleansed, so that what Abbas recently called “the filthy feet” of Jews would not pollute the land of “Palestine.” Abbas calls officially, clearly and emphatically for ethnic cleansing of Jews, and the Fatah organization he heads insists that none of those Jews in “settlements” will be offered equal citizenship in their future state. They have to get out, or be killed. They are constantly trying to kill them, in fact, as you may have read in your daily newspapers. Meanwhile, Israeli Arabs enjoy equal citizenship in Israel, as a matter of course. There is a big difference. No Israeli Jews run over Israeli Arabs, knife them, blow up their market crowds in suicide attacks, etc. — have you noticed?

          And of course you will utterly condemn, as well, the call in the Hamas Charter to obliterate completely any Jewish state in the solely “Muslim” Palestine, and indeed literally to wipe out all Jews in Palestine and around the world. That is ethnic cleansing with a vengeance, explaining those thousands of rockets shooting out of Gaza into Israeli cities. Naturally, you would see all that as unjustifiable and hideous. Good on you.

          As for where I learned such things, well Mark, I have read Palestinian official documents, the PLO National Covenant, the Hamas Charter, the fantasies of Abbas and Fatah, and seen how little they accord with ordinary histories that are available to you too. I recommend those histories to you. If you stick with the Electronic Intifada, though, there is a lot you will not know that almost everyone else does. Lies will replace those truths. For example, have you heard that it is official P. A. teaching that there are no Jewish holy sites anywhere in the Biblical Holy Land? There was, according to that official Palestinian lie, no Jewish Temple on the Temple Mount. Even the Western Wall and the Cave of the Patriarchs and Matriarchs in Hebron are solely Muslim holy sites that Jews have no rights to. The Jewish claim otherwise, according to these official sources, is a “Zionist hoax,” aiming to “Judaize” Jerusalem and the Holy Land.

          So if you love truth, you will already know that nothing that comes from the Palestinian side can be trusted to be true, and much or most of it is outrageous and shameless lies.

          • You must be talking about Peel Plan A, which the Jewish Council agreed to. The Palestinians agreed. to Whitehead Plan B, with the only sticking point a small part of northern Palestine that was then 98% Palestinian ownership that the Jewish Council coveted badly. In fact this same part of Palestine, inland off the Mediterranean from Haifa and Acre was supposed to be part of Palestine according to the UN Mandate, but it was also rapidly seized by Israel and its Palestinian residents driven from their homes during the early summer of 1948 while the counties that voted to give the new State of Israel twice as much of the country as any previous plan, including the 1945 Anglo American Plan, stood idly by as Jewish terrorists Irgun, Stern, and Hagannah massacred 1300 civilians in Jaffa and drove 70,000 from their homes, while murdering Arab peacekeeping troops too.

            The Israeli government has always denied the Jaffa Massacre even after the mass graves were found three years ago. It was the illegal murder of Arab peacekeeping troops at Jaffa that gave the Arab armies the full legal right to enter Palestine in support of the peacekeeping troops there.

            Anyhow my man, it appears that you would enjoy viewing my treasure trove of historical documents and maps including the 1936 Ben Gurion letter in which he instructs Zionism to seize all of Palestine by any means necessary. Would you believe that I am fully in-favor of forcing Israel back to the 1947 UN Mandate boundaries and then hacking a 5 mile wide DMZ half out of both sides, as Israel has repeatedly shown that they can’t be trusted.

          • Pebbleson

            The Israelis were not in Jaffa at the time, Mark; the city was torn apart by competing Arab military groups that had entered the city. The skeletons were of victims of Arab massacres and in-fighting. For example the Arab High Command had sent in troops who fought with terrorist groups led by the “Grand Mufti” al-Husaini and with other competing groups. They murdered each other savagely. The Arab population there had not supported any of these groups, but were moderate and many would have liked to live with the Jews, but were given no chance to do so and were eventually forced to flee by the constant murders of Arabs by Arabs, including of non-combatant civilians. There were no “Arab peace keepers” – that is laughable, since they had no business being there to begin with and had invaded the area illegally in defiance of U.N. resolutions. The U.N. had not invited them in as “peace-keepers.” So your basic premise is a clear and outright lie, Mark. Is this surprising? Your sources are solely Palestinian propaganda websites. This is the sort of stuff they do all the time.

            For a beginning account of Jaffa during this period, see the review by Shlomo Avineri of the book by Itamar Radai, A Tale of Two Cities: The Palestinian Arabs in Jerusalem and Jaffa, 1947-1948 (in Hebrew), which appeared in Haaretz on Aug. 9, 2015, under the title “Why Did Palestinian Jaffa Fall More Quickly Than Jerusalem in 1948?”

            Similarly, Ben Gurion wrote no letter “instruct(ing) Zionism” (how does one instruct an abstraction?) “to seize all of Palestine by any means necessary.” This is an invented statement common to Palestinian propaganda websites, where the creation of false quotations by “Zionist leaders” has long been a veritable industry. This is a chief example. I might point out that the lies are perpetrated even in the most “academic” Palestinian propaganda vehicles, like the Journal of Palestine Studies where this quote first appeared, in an article published by the very far left anti-Israel polemicist Ilan Pape. He often invents things in his writings. In the actual letter Ben Gurion wrote to his son (a private letter, not written to “Zionism” in the sky nor directed to anyone else), Ben Gurion actually said he did not want Arabs to leave Jewish areas, but rather he hoped to show them that they could flourish with Jews in any future Jewish state. Ilan Pape rewrote the passage to signify the opposite view. In that form it has been very often quoted on other antisemitic/anti-Zionist websites. It is utterly false. In fact, even the editors of the Journal of Palestine Studies were forced to admit this following complaints. See, on this, “Journal of Palestine Studies Compounds Its Ben-Gurion Error,” April 9, 2012, at: http://www.camera.org/index.asp?x_context=2&x_outlet=118&x_article=2219

            In short, Mark, all your accusations are demonstrably malicious lies.

          • I am going to stomp all over you tomorrow with hundreds of respected independent sources. Just have to copy and paste them in. Your official Israeli history fools nobody here in the US.

          • Pebbleson

            Still no interest in the manifest lies that there are no Jewish holy sites in the Holy Land, officially pushed by your dear PLO/Fatah/Hamas? Still no disagreement with the officially pushed Fatah/Hamas line that all Jewish settlements must be ethnically cleansed from the alleged “Palestinian State” aimed for but never negotiated for? If you have no problem with those lies and racist attitudes, any claim you have to decency and truth can be ignored. You discredit yourself alone.