Home Daily Digests Cyber Attacks Loom as Financial Markets Teeter

Cyber Attacks Loom as Financial Markets Teeter

Western financial systems face instability due to deficit spending and inflation, while geopolitical risks and cyber threats add to the uncertainty; meanwhile, the IDF’s Hannibal Directive sparks controversy, and US “left behind” counties see economic revival.

The User's Profile Ivor July 10, 2024
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The Western financial and political systems are reportedly experiencing instability due to deficit spending, debt expansion, currency debasement, and inflation. This situation is apparent in the UK, France, and the US, where political leaders face challenges. Financial markets are expected to reflect this instability, with geopolitical risks, including potential wars and cyber warfare, adding to the uncertainty. The dependency on electronic systems makes nations vulnerable to cyber attacks, further complicating the political landscape. Financial experts like Egon von Greyerz highlight the importance of wealth preservation through physical gold and silver, which have historically performed well during financial crises.

In the Middle East, the Israeli Defense Forces (IDF) implemented the Hannibal Directive on October 7 to reportedly prevent Hamas from taking soldiers captive, even at the risk of hostages’ lives. The directive, used multiple times throughout the day, led to chaotic operations and criticism for endangering soldiers and civilians. The IDF’s actions, including drone and mortar attacks, aimed to prevent further kidnappings but resulted in casualties. Internal investigations are underway to learn from these events and ensure transparency.

In the US, “left behind” counties, once struggling manufacturing hubs, have seen an economic revival over the past three years, adding jobs and new businesses. This recovery occurred under President Biden’s administration, contrasting with minimal improvement during Donald Trump’s presidency despite a strong national economy. The turnaround raises questions about the political credit for these changes.

Meanwhile, Luke Gromen warns of impending market turbulence due to tightening dollar liquidity and a projected US federal budget deficit of $2 trillion. This significant deficit, compared to global GDP growth, suggests unsustainable financing needs, leading to tighter dollar liquidity and slower global growth. The concentration of foreign-held US dollar-denominated assets, including $8 trillion in US Treasurys, could cause volatility in the Treasury market. Gold is seen as a preferred asset in this scenario, with rising US debt and interest rates driving up its prices.

In Bolivia, a political crisis erupted when soldiers led by Army Commander General Juan José Zúñiga surrounded the government palace, calling for the restoration of democracy. President Luis Arce quashed the coup attempt and installed new military leadership. Former President Evo Morales accused Arce of staging the coup to consolidate power, a claim Arce denies. The unrest is attributed to foreign interests targeting Bolivia’s vast lithium reserves. Despite holding the world’s largest lithium deposits, Bolivia has struggled to become a major producer due to technical challenges. The government is now investing in Direct Lithium Extraction (DLE) technology, which promises higher efficiency and environmental benefits, potentially transforming Bolivia into a lithium powerhouse by 2025.

Following last week’s US payroll report, discussions about interest rate cuts and heightened recession risks have increased. The rising unemployment rate, now at 4.1%, has led to expectations for lower interest rates. The “S rule,” a recession indicator, suggests that the economy may already be in recession. Federal Reserve Chair Jerome Powell has acknowledged the softening labor market and the potential need for rate cuts. Wall Street economists and strategists are closely monitoring these signals, indicating a shift in their economic outlook.

NATO is backing a project to ensure internet continuity by rerouting traffic to satellite systems in the event of subsea cable attacks. This initiative, amid fears of sabotage by Russia or China, aims to protect the $10 trillion worth of daily financial transactions and critical communications that rely on these cables. The project, supported by NATO’s Science for Peace and Security Programme, highlights the importance of securing digital infrastructure.

Federal Reserve Chair Jerome Powell expressed concerns about maintaining high interest rates for too long, which could harm economic growth. Despite some cooling, the economy and labor market remain strong. Powell highlighted progress in reducing inflation but warned that reducing policy restraint too late could weaken economic activity and employment. The Fed’s current overnight borrowing rate is the highest in 23 years, with markets expecting rate cuts starting in September. Powell’s remarks come as part of semiannual updates on monetary policy, emphasizing the Fed’s operational independence and non-political stance.


As Political Systems Crumble, Gold and Silver Shine Bright

As political parties, currencies, stocks, bonds and other bubble assets fall, the indisputable winners will be gold and silver.

Source | Submitted by rhollenb

IDF’s Chaotic Response: Hannibal Directive Activated Amid October 7 Hamas Attack

“Reports were coming in, with their significance not always clear. When their meaning was understood, it was realized that something horrific had taken place.”

Source | Submitted by 0007

Left-Behind Counties Surge: A Stunning Economic Revival

“This is the kind of thing that we couldn’t have even dreamed about five or six years ago,” one expert said about changes in some American counties.

Source | Submitted by Barbara

Joe Rogan’s 5-Step Plan to Border Crisis: Conspiracy or Political Strategy?

“That sounds like a conspiracy theory…but all these moves are totally political…”

Source | Submitted by bcoop

Luke Gromen Warns of Looming Market Volatility Amid Tightening Dollar Liquidity

Luke Gromen: Expect Market Turbulence Ahead Due To Tightening Liquidity

Source | Submitted by rhollenb

Bolivian President Claims Failed Coup Was Driven by Lithium Interests

“Bolivia is home to the world’s largest lithium deposits, accounting for 23% of global reserves.”

Source | Submitted by Barbara

Unemployment Spike Spurs Talk of Fed Rate Cuts Amid Recession Fears

“The unemployment rate has moved higher but was still at a low level of 4.1% in June, and it’s at a low level of 4.1% historically speaking. But that’s not important, and he knows it. It’s not the level that matters here; it’s not the level that’s gotten everyone’s attention. It is the move from the low last year.”

Source | Submitted by rhollenb

NATO Invests in Space-Based Internet Backup to Counter Subsea Cable Threats

NATO is helping finance a project aimed at finding ways to keep the internet running should subsea cables shuttling civilian and military communications across European waters come under attack.

Source | Submitted by Shplad

Fed Chair Powell Warns Prolonged High Rates Could Stifle Economic Growth

“Federal Reserve Chair Jerome Powell on Tuesday expressed concern that holding interest rates too high for too long could jeopardize economic growth.”

Source | Submitted by nickythec

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