Day 46, Moving the world away from the U.S.

 COLLATERAL DAMAGE INTENSIFIES

TRANSITION TO ECONOMIC PRESSURES

Yesterday, the new U.S. strategy of blockading oil exports by Iran began. Of course, Iran's position is, if they can't export, neither will anyone in the Gulf. We will see who cries uncle first, but the consequences of this approach are multiplying by the day.

The next shoe to drop may be the closing of the Red Sea, that would then eliminate 32 % of the world's oil with the closing of both choke points.

South Korea is now in a verbal bout with Israel, accusing Israel of war crimes and other illegal and humanitarian crimes. Japan is also not happy with this situation. We can guess the same applies to all of southeast Asia.

It must be made clear the U.S. Navy is not anywhere near the strait of Hormuz, but 600 miles out in the Gulf of Oman and the Arabian Sea. They plan on stopping all ships exiting the Gulf, will they detain Chinese, Indian, South Korean and Japanese ships? This is in effect an act of war, we will have to wait to see if anyone will put this to the test. 

If this blockade would last long enough, I doubt if it will, to put the Chinese economy in trouble, the risk of war with China will increase dramatically. The U.S. fleet is now 7000 miles from the U.S. and many of its bases are over 1000 miles. Challenging the submarine fleets of China and Russia would inevitably result in serious U.S. losses, losses that could not be easily replaced. 

China and Russia could combine their engineering and construction capacity to accelerate pipelines from Russia to China and India supplying oil to all the U.S. allies, that would quickly become former allies. 

Again, the problem with a solution is Israel wants Iran destroyed, made into a unstable chaotic and desolate nation, like Libya and Syria. It is suspected that Trump has bought into the decades old neocon policy of obtaining control of the world's oil assets as a way of maintaining Dollar reserve status and global political hegemony.  I question if a hollowed out U.S. financialized economy can support that policy, but they may be willing to take down the world economy in a last ditch attempt. That leaves a sustained economic and slow picking away at Iran similar to the 15 years it took to overturn Syria, but they need to speed that process way up.

The narrative of Israel against Turkey is heating up dramatically, they are indeed setting the stage for war with Turkey, something that again would require U.S. assistance. Turkey, a NATO member, has a formidable military and its ground troops could not be matched by Israel.

Looking down from 100,000 feet in an objective way, indicates that Israel is entering a time that its existence is increasingly in doubt. Israel has lost its global support, it is engaging in wars in an unsustainable way.  Netanyahu's trial is again put off for 2 more months, must Israel stay at war to protect Netanyahu? Without a political change of direction, its future looks very dim.