Iran, wrecker of Presidents.

 WILL IRAN ADD TRUMP TO CARTER AND REAGAN?

MAYBE NETANYAHU TOO 

 

Afghanistan is known as the graveyard of empires and the experience of Britain, Russia and the US give that reputation some credibility. Wise leaders, having a knowledge of history might surmise that it best to stay away from there. The same could be said for fights with Russia in Ukraine, the experiences of Napoleon, Hitler and the present attrition of the west give that reputation lots of credence.

 

While the conclusion of the present conflict with Iran is still not settled, it is becoming apparent that it will destroy the Presidency of Donald Trump. No matter the outcome, his advertised agenda has been derailed, his historic movement put on life support and far worse is still possible.

 

Jimmy Carter, who made peace between Israel and Egypt and had other positive accomplishments was all overshadowed by Iran holding US hostages for over a year. The frustration of Carter, president of the most powerful nation on earth ended with his presidency listed among the least successful in history. Iran used the hostages to buy time to avoid military action from the US and it was effective.

 

While Ronald Reagan survived his interaction with Iran, possibly because he avoided war there, it did cause lots of turmoil and damage. 

 

Even Netanyahu, the longest serving president of Israel, his obsession with Iran may be his ultimate undoing. He and his country have descended into global pariahhood that may take decades to undo.  

 

The old saying, "history repeats itself", may be being demonstrated in numerous existing conflicts. The other old proverb,"Discretion is the better part of valor" surely is being demonstrated daily.  It may be that today's leaders should have discarded hubris for a few more history lessons.

 

 

 

 

Will Bond and Energy markets wait until after election?

  WILL WAR RESUME SOONER RATHER THAN LATER?

LOGISTICS IS THE BIG QUESTION

 

Trump is claiming that he will decide to escalate war after the elections, just saying that indicates that he would prefer to not wait that long. The bond market is indicating that it is not willing to wait another 6 weeks. today the 30 yr is at 5.54%, 10yr 5.23 and 3 yr 5.06%, if this trend continues, war may be the least of his worries.

 

I suspect war would be underway now if the materials, troops and all the necessary details would allow for it, but the logistics for modern warfare is becoming increasingly difficult. Particularly against Iran, a natural fortress, with all areas of possible staging within range of Iranian missiles. If it was possible to have defeated Iran by military action it would have already been accomplished. 

 

It seems that tankers, and troops are being deployed to the region. Saudi Arabia may be the preferred staging area, hence the ongoing attempt by Saudi Arabia to neutralize the Yemen forces. The plan is probably a massive air campaign and a limited ground operation to take control of the strait of Hormuz.  

 

The hope would be to use the limited precision weapons to take out Iran's air defenses and offensive capabilities and then follow up with massive carpet bombing with B-52 a B1 bombers. The first priority would be to take out the air defenses, if not successful the bombers would be in danger of being taken out. It is assumed that Russia and China have assisted in beefing up Iran's air defense. Any successful attack on Iran will be a series of successful steps, any one unsuccessful step could be catastrophic. At the same time Iran's offensive capabilities will need to be eliminated or the worlds oil supply could be limited for years to come. The goal will be to take out Iran's infrastructure and make it impossible to sustain it' s population for the foreseeable future. A failure by the US will be the end of its influence in the region.

 

While oil and bond market pressure may be in a hurry for stability, an actual resumption and a positive outcome may be far into the future.  

 

 

 

 

 

No end to either conflict, Bond market screaming.

 ENDING WAR ONLY HOPE TO SAVE ECONOMY

WE ARE ALL GOING DOWN

 

It is clear that Trump would like to put the Ukraine war on hold and focus on destroying Iran. Not an end, just a pause, to allow Ukraine to rearm and recover before the winter. Russia has made it clear, there will be no ceasefire or let up until a final real negotiation is consummated. 

 

Europe wants war with Russia, as long as they can suck the US into doing the heavy lifting. Very difficult, while bogged down in the Persian gulf, especially with shortages of precision weapons and an already over stretched NAVY. 

 

Netanyahu will not let Trump let up on Iran, Trump is most likely going to go all in with a ground and air campaign and he may have to do it sooner rather than later. Reserve forces have been called up and are now on there way to somewhere in the gulf. They were told it will be for a minimum of 1 year. A serious ground operation would take 6 months of preparation, Trump does not have that much time or enough forces, it will be a deadly gamble for all involved.

 

Trump claims that if Iran submits it will be a great nation, prosperous and a leader in the region. Iran like Russia understands that if they submit they will become Libya, there will be no submission by either. 

 

At the same time another fight is brewing and that is high energy prices which are being manipulated daily, but as soon as actual shortages become the issue, there is no ceiling or manipulation possible. 

 

Then there is the bond market, today a 30 year is at 5.46 %, 10 year 5.16% and the 5 yr 5.02 %. indicating that trust in the US financial system is on shaky ground.  This is going to make the deficit and debt problem a real issue very soon. In fact, this could be the real battle that moves to the forefront before any military conflict can be resolved.

 

 

 

 

Beware of $5000 Trojan Horse.

DIGITAL CURRENCY YOU CAN'T REFUSE 

WILL YOU LOSE CONTROL OF YOUR FUTURE? 

 

Trump's latest offer of $5000 to all adults, if the Republicans win the election, may have a double agenda. We should all know that the US debt is now unrepayable and is also unsustainable. One of the solutions that has been put forward is the use of stable coins. These coins are to be used as currency. Each coin is equivalent to $1 and is backed by US debt. It is an effort to continue to finance the continually rising debt.

 

Now I want to make it clear what I am about to convey is speculation on my part, but we are on the verge of dramatic crisis that will require dramatic solutions, but most likely not real or sound solutions. The real solution is fiscal responsibility, not more financial shenanigans.

 

Now consider, what if the $5000 gift to every adult would be paid in stable coins rather than in dollars. That would add up to 245 million citizens needing a stablecoin account to receive the payout. That $1.3 trillion would only be exchangeable with retailers who have such accounts. Walmart, Amazon and every other retailer would want access to all that digital currency, so in one giant action much of the country would be persuaded to adopt digital currency. 

 

Now once everyone has the proper account it will become a major part of the US economy and possibly in the international economy. 

 

Since the transactions are going to be funneled through the Trump bank and possibly other banks, they will earn the interest on the debt represented by these stable coins. At 5% that would be $65 billion and possibly another 2 % transaction fee,  another $25 Billion.

 

Now while that is impressive, once everyone is set up to do these transactions, one could again speculate that the Federal government and possibly all governments could use this system for all government payments, wages, social security, medicare  etc. . No stablecoin account, no receipt of payments. Again, all those stablecoins backed by US debt at $2.7 trillion x 5%, would earn $135 Billion, by the banks handling the transactions, plus an incalculable amount of transaction fees.

 

It is likely that with a little political pressure every company would also move to all payments and wages in digital currency. 

 

I suspect that a voluntary move to digital currency would be resisted by a large segment of the population, but a move that would be encouraged by a windfall would be hard to resist. Would you refuse to accept the payout? 

 

The dollar is under assault,  not due necessarily to evil intentions, but the reality that government spending in excess of its ability has devalued the purchasing power of the dollar. It may be tempting to continue the irresponsible financial policies by replacing a already fake currency, the dollar, with a digital currency that will take away peoples ability to choose and have control of the fruit of their labor.  

 

Such a currency would make it possible for the government to decide what would be acceptable to purchase and from who. It is a system that would be envied by every government existing today. 

 

Again, all speculation, I suspect both parties in the country would love to control such a system. Hopefully, this warning, will help raise citizens awareness of dangers that are coming in the future as the debt crisis will offer opportunities to those who seek more power and control. 

 

 

 

 

 

 

 

 

 

West Asia trade, Whose their Daddy.

 CHINA IS THE MAJORITY TRADING PARTNER

CAN THE US FORCE THIS TO CHANGE?

 

 

 

 

A look at the map above does not need an explanation and it is unlikely that it has improved since 2024. Is it practical for these nations to be forced into using the dollar as its trading currency? Geographically they are closer and China does offer them a wide variety of useful goods. 

 

I suspect the vast majority of trade with the US is military arms.

 

Of course today, due to the ongoing conflict, these gulf countries have very little income, little trade and an uncertain future.  It could be that the above numbers are part of the real reason that they are now caught in this situation. They have all become major trading partners with China, including Israel. I suspect with a free choice they would continue to these kind of trading numbers.

 

It is interesting that Saudi Arabia who has been trading oil in other currencies, rather than the dollar is now in a precarious situation. In fact, just this week Saudi Arabia has pledged to not use the BRICS payment settlement system in the future. 

 

An escalation of the war with Iran will likely end the income for all these gulf nations for many years, cut off China from the regions oil and open the door for US complete control of gulf resources.

 

That is if it can maintain its economic and military ability and internal political stability to continue on this path.

 

 

 

 

 

 

 

 

 

Is global economic crisis last hope to save dollar hegemony?

 ECONOMIC OPPORTUNITY FOR THE EPSTEIN CLASS

WEALTH AND POWER ARE RELATIVE

 

As we teeter on the edge of world economic crisis one has to wonder why it looks like a strategy rather than a consequence of poor decisions. The Russia/Ukraine war could have been avoided with just accepting a neutral Ukraine. It could have been ended within months in Istanbul. The Iran war also could have been avoided as Iran had accepted most of the conditions in Geneva, days before the  war was started by the US and Israel.

 

There is lots of evidence that these wars were desired and also that they are not in a hurry to actually end them. It is also clear that these wars are an effort to short circuit the move to an alternative economic system, not dependent on the dollar. A system evolving to neuter the ability of the US to economically damage or destroy those that do not submit to US power.

 

Now we have been told that the Russians and the Chinese are our mortal enemies and that they want to destroy our way of life and they need to stopped by any means. This of course also includes Iran and any other nation that does not bend the knee.  

 

Lets face it, maintaining the supremacy of the dollar is not going that well, Its standing has eroded year by year, not by conspiracy of our enemies but by the irresponsibility of our leaders. It is the ultimate power of the US and we are witnessing that our military power has limitations. Limitations that will be further eroded by of own economic nonsense and diminishing manufacturing base.

 

The US cannot be restored to is strong base in weeks or years but only by decades of sustained perseverance and disciplined work. 

 

We have to wonder if the ruling class sees the handwriting on the wall and understands that their power over others is coming to an end and the last hope is to bring the whole system down, everyone diminished, many destroyed, so they are still number one even a very reduced level.

 

If you have $1000 and everyone has $1 you are now rich. If much of the world is lacking food and energy and you are surviving even at a reduced level, you are still relatively rich. 

 

Building bunkers for survival to be able to take advantage of the opportunities for unprecedented wealth and power in the future, while most of the world is destroyed is not a new evil strategy.

 

 

 

 

 

 

 

 

 

World economy needs an end to 1 war.

 TAKE YOUR PICK RUSSIA OR IRAN

MOST LIKELY NOT WITH A VICTORY 

 

As we are now in the midst of escalating war both in Europe and Western Asia, it is clear neither can be won easily or quickly and the world economy cannot survive two existential wars at one time. This is doubly critical as both are major oil producing regions. 

 

So, which war can be ended most quickly? Which war will have the the most immediate effect in a positive outcome for the world?

 

The Russia/Ukraine war is escalating by the day, with massive damage being inflicted on both Ukraine and Russia. The damage to Russia's oil refineries are having a serious effect on the availability of refined products causing problems globally. This war, underway for 4 years, is also the most complicated to end.  Ukraine cannot win this war, and the worst result would be an existential threat to Russia's security from NATO. Russia has the ability to end such a result very quickly that would be catastrophic for the world. Neither Ukraine or NATO is willing to come to any agreement at this time. this war will not be ended quickly.

 

The Iran war is far less complicated, in fact, there is recipe to end this conflict on the table. It would require a decision to do that from the United States and the other details could be worked out, if there was good faith shown. The gulf oil supplies plus natural gas, fertilizer, Helium and other essential products could start flowing in a very short time. The alternative is another round of hostilities that will likely take these essentials off the market for not days or weeks but possibly years, it will be a global economic crisis with consequences beyond calculation.

 

The best course is to suck it up, end the gulf war and then focus on economic survival for all.