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Russia

by Chris Martenson

Executive Summary

  • Why the US' antagonistic approach towards Russia is likely to backfire big time, in both the near and long term
  • How, by definition, the West has already initiated economic warfare against Russia
  • Why things will get very bad in a hurry for the West if Russia reacts by re-directing its energy exports 
  • And how things could get much worse indeed, for everyone, if this conflict erupts into a military confrontation

If you have not yet read Warning: The Ukraine Is At A Flashpoint, available free to all readers, please click here to read it first.

Poking The Bear

And that finally brings us to Russia, which has a long and complicated history with Ukraine. There are many Russian speaking people in the Ukraine, for whom Russia feels somewhat protective, as perhaps US citizens in Canada or Mexico might expect from the US.

Further, Russia quite rightfully feels that it is being systematically surrounded and cornered by the NATO military structure and they might reasonably ask themselves why and for what purpose(s)?  There are probably other ways to look at this, but it's certainly reasonable to think that Russia might feel just the tiniest bit provoked, if not threatened, at the West's obvious efforts to get Ukraine to join up with NATO.

Instead of sitting down with Russia to try and hammer things out, the US resorted almost immediately to a series of sanctions targeted at Russian individuals and companies, as well as the Russian stock and bond markets, with the intention of creating economic and financial hardship that would get Russia to leave Ukraine to the west.

Here are a few of the efforts so far…

How This Situation Can Quickly Get Much Worse
PREVIEW by Chris Martenson

Executive Summary

  • Why the US' antagonistic approach towards Russia is likely to backfire big time, in both the near and long term
  • How, by definition, the West has already initiated economic warfare against Russia
  • Why things will get very bad in a hurry for the West if Russia reacts by re-directing its energy exports 
  • And how things could get much worse indeed, for everyone, if this conflict erupts into a military confrontation

If you have not yet read Warning: The Ukraine Is At A Flashpoint, available free to all readers, please click here to read it first.

Poking The Bear

And that finally brings us to Russia, which has a long and complicated history with Ukraine. There are many Russian speaking people in the Ukraine, for whom Russia feels somewhat protective, as perhaps US citizens in Canada or Mexico might expect from the US.

Further, Russia quite rightfully feels that it is being systematically surrounded and cornered by the NATO military structure and they might reasonably ask themselves why and for what purpose(s)?  There are probably other ways to look at this, but it's certainly reasonable to think that Russia might feel just the tiniest bit provoked, if not threatened, at the West's obvious efforts to get Ukraine to join up with NATO.

Instead of sitting down with Russia to try and hammer things out, the US resorted almost immediately to a series of sanctions targeted at Russian individuals and companies, as well as the Russian stock and bond markets, with the intention of creating economic and financial hardship that would get Russia to leave Ukraine to the west.

Here are a few of the efforts so far…

by Chris Martenson

Executive Summary

  • The current gold slam has *nothing* to do with the fundamentals for precious metals, which are very favorable right now
  • How bad would deflation be?
  • Evidence that deflation is arriving
  • Why our current monetary system has become so compromised by the banks
  • How to best protect your wealth from both deflation and the banks

If you have not yet read Part I: This Gold Slam is a Massive Wealth Transfer from Our Pockets to the Banks, available free to all readers, please click here to read it first.

About Those Wealth Transfers

The biggest news of the recent past is the flow of gold from West to East. 

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(Source)

With China importing 835 tonnes of gold in 2012 that we know about (and they may well be doing more under the table for official purposes) and also standing as the number one producer of gold, with ~360 tonnes of domestic production, none of which is exported, China is consuming at least 44% of total yearly world gold production.

Connect that with India importing between 200 and 300 tons per quarter (2011 imports were 967 tonnes, and 2012 was 864 tonnes), and this represents another 33% of total world mine output.  Add in Russia buying more official gold, and you suddenly find that a commanding proportion of the newly mined gold in the world is headed East, where it used to stay largely in the West.

To be clear, I view gold as money and therefore wealth itself.  Everything else that can be manufactured out of thin air is merely a claim on wealth.  In these terms, the West is slowly but steadily bleeding control of wealth to the East, something I thought our leaders were both aware of and focused on.

Knowing the lower prices will only exacerbate this West-to-East flow, I therefore thought that the bullion banks and central banks would not have dared push that dynamic any further.   But apparently no, obviously I was wrong, which pains me on several levels.

Add to this the various things going on in the world today, and I honestly thought we were in the most gold-favorable landscape of my life.

Consider:

  • Negative real interest rates (powerfully gold- and commodity-friendly throughout history)
  • North Korea threatening nuclear and conventional war
  • Open confiscation of wealth in Europe from bank accounts
  • Japan doubling their monetary base in a brazenly desperate bid to stoke inflation by attacking Japanese trust in their own currency
  • Extremely unfavorable bond yields up and down the yield ladder
  • Continued European stress and discord with the possibility of a Eurozone disintegration

Taken together, this level of system, sovereign, and institutional uncertainty is about as gold-friendly a situation one could concoct…

Protecting Your Wealth from Deflation
PREVIEW by Chris Martenson

Executive Summary

  • The current gold slam has *nothing* to do with the fundamentals for precious metals, which are very favorable right now
  • How bad would deflation be?
  • Evidence that deflation is arriving
  • Why our current monetary system has become so compromised by the banks
  • How to best protect your wealth from both deflation and the banks

If you have not yet read Part I: This Gold Slam is a Massive Wealth Transfer from Our Pockets to the Banks, available free to all readers, please click here to read it first.

About Those Wealth Transfers

The biggest news of the recent past is the flow of gold from West to East. 

 src=

(Source)

With China importing 835 tonnes of gold in 2012 that we know about (and they may well be doing more under the table for official purposes) and also standing as the number one producer of gold, with ~360 tonnes of domestic production, none of which is exported, China is consuming at least 44% of total yearly world gold production.

Connect that with India importing between 200 and 300 tons per quarter (2011 imports were 967 tonnes, and 2012 was 864 tonnes), and this represents another 33% of total world mine output.  Add in Russia buying more official gold, and you suddenly find that a commanding proportion of the newly mined gold in the world is headed East, where it used to stay largely in the West.

To be clear, I view gold as money and therefore wealth itself.  Everything else that can be manufactured out of thin air is merely a claim on wealth.  In these terms, the West is slowly but steadily bleeding control of wealth to the East, something I thought our leaders were both aware of and focused on.

Knowing the lower prices will only exacerbate this West-to-East flow, I therefore thought that the bullion banks and central banks would not have dared push that dynamic any further.   But apparently no, obviously I was wrong, which pains me on several levels.

Add to this the various things going on in the world today, and I honestly thought we were in the most gold-favorable landscape of my life.

Consider:

  • Negative real interest rates (powerfully gold- and commodity-friendly throughout history)
  • North Korea threatening nuclear and conventional war
  • Open confiscation of wealth in Europe from bank accounts
  • Japan doubling their monetary base in a brazenly desperate bid to stoke inflation by attacking Japanese trust in their own currency
  • Extremely unfavorable bond yields up and down the yield ladder
  • Continued European stress and discord with the possibility of a Eurozone disintegration

Taken together, this level of system, sovereign, and institutional uncertainty is about as gold-friendly a situation one could concoct…

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