You can fudge the numbers some of the time, but you can’t fudge the numbers all of the time.No doubt should remain in the minds of Rogue Money readers that the U.S. is in a depression as deep and as lasting as the infamous Great Depression of the 1930s. The difference this time is that the devastation is deliberately being hidden from public view. You don’t see the starving masses because today’s bread lines are electronic debit cards. You don’t see the destitute because social safety-nets are strained to the breaking point to keep them off the street. You don’t see the homeless because they are locked into houses by chains of unpayable underwater mortgage debt. You don’t hear about the desperation because the hopium-spiked Kool-Aid that flows from Washington D.C. and Wall Street tells you what to think.
Readers of The Guerrilla know, however, that the truth is as ugly as it is undeniable. Put your nose to the air and you can catch a whiff of the sulfurous witches brew of the financial dislocation and mal-investment that is sending the U.S. straight down the toilet.
The Guerrilla doesn’t peddle fiction, my friends. Debt reduction? It’s not happening in either the private or public sectors. Debt ceilings? They don’t exist. Wanton overspending? It’s par for the course. Add central bank money printing to the mix and the U.S. is quickly being reduced to the status of a banana republic. The U.S. has become a third world nation with third world infrastructure, third world politicians, and third world central bank policies from Zimbabwe that are about to give it a third world currency.
Be warned! The most dangerous stage of the collapse has already happened. Foreign creditors are no longer buying USTs and some are going so far as to ban use of the Federal Reserve Note altogether. These are dark portents. Declining foreign use of its currency spells doom for nations with real functioning economies. Ah, but the U.S. is NOT a real functioning economy! It is a sham economy laden with corruption and fraud at the highest levels. Other than pornography and solid waste, war and death are its biggest export. Whether it is in the form of the latest contrived terror group, or the newest illness-causing vaccine, or in unholy genetically-modified foods, or in trails of heavy metals sprayed across the skies, the U.S. is the leading dealer of death around the world.
The dearth of foreign FRN buyers means that the derivative machine will be kicked into overdrive this year. Interest rate swaps and REPO markets are the tools of fraud that keep the USDX up and UST yields low. For many years the deception ran thick and the fraudsters thought they would never be exposed. Their schemes were too clever. They could never lose the game. How wrong they were. The hurricane-force winds of economic mother nature descended onto the shores of the U.S. in 2008 and now the clever game is exposed for the world to see.
The Guerrilla has stated many times that alternative financial instruments and economic structures will be formed to counter the effect of corrupt and fraudulent U.S. influenced institutions. The plan for many decades has been to completely remove the bankster-controlled U.S., its vassals, and its criminal proxies from power. What people in the short-term memory lacking West fail to recall is that the East has legitimate grievances against them. Those in the East are deeply angry about the wars, the fraud, and the tyrannical, criminal hegemony exercised by the U.S. over the world. They are tired of laboring only to see their wealth sucked dry by the vampiric dollar and the hidden costs of being pegged to it.
Crude Storm Rising
It is safe to say that for many moons The Guerrilla has been spot on in calling where the energy markets will go. I predict now that it will go even lower, plunging perhaps even into the netherworld below $10 per barrel. This price drop is creating a massive economic nuke trigger that will blow up all of the financialized instruments attached to oil. Oil is one of the most financialized commodities in the world. Thousands of banks benefit from the oil trade and billions of dollars in derivatives are tied to petroleum.
Take a look at the United States, where low oil prices are devastating the economy. The International Energy Agency just released a report stating what the informed readers of Rogue Money already know – that the world is drowning in oil. The recent destruction of Canada’s oil-based economy has not only thrown their markets into the wood chipper, it is rapidly leading to the institution of emergency measures known as Negative Interest Rate Policy (NIRP).
The fact that the CAD is dropping should come as no surprise to anyone who has been paying attention. Commodity-based currencies have been beaten over the head by the FRN’s artificial rise and by the collapse of the commodity markets.
In response, oil-based economies from Canada to Saudi Arabia are devaluing their currencies to remain competitive. This puts a band-aid on their losses in the oil sector, but at the cost of destroying ordinary people with exorbitant inflation. This is a classic case of blowing a hole through your head to save your ass.
The inevitable despair resulting from NIRP and currency devaluation will intensify until the world’s productive economies, commodity-based and pegged to the FRN, will be forced to either de-dollarize and join the BRICS, or D.I.E. from Dollar Induced Euthanasia. One certainty is that it takes time for losses to mount. Recent losses by narco-bank Wells Fargo totaled close to $120 million last quarter alone. Meanwhile, the derivative zombie bank and FOREX fraudster Citibank lost almost $80 million. The Guerrilla promises that future losses will run into the billions this year.
How does he know, you ask? The Guerrilla has close ties to a certain former exec at Conoco Phillips and the one thing that he can tell you is that the energy industry in the U.S. is about to implode. When it does it will bring down the economies of over 27 states as trillions of dollars in losses force municipal bonds to go belly up. These bonds were collateralized with loans given to oil and gas companies. What Americans are facing from the looming specter of low energy prices is losses from coast to coast. Failed cities like Detroit will become the norm.
This year also heralds the beginning of the end for OPEC. At its recent meeting in Vienna, OPEC erased all semblance of acting like a cartel. Instead, OPEC members embraced an “every man for himself” model that will send cartel nations heading for the exit doors. As oil analyst Jaime Webster of IHS, Inc. wrote recently,
“lots of people said that OPEC was dead; OPEC itself just confirmed it.”
Now in 2016 we will see Russia step further into the Middle East oil party. It’s presence will establish order alongside its partner Iran. This is where things are headed.
Of note here is a wild card so important that The Guerrilla feels you need to hang on every word of it. United Arab Emirates oil minister Suhail Al Mazrouei recently said
“we aren’t going to go back to a cartel and work against [our] customers -- that time has passed”
The Guerrilla has stated for the record that the UAE has massive influence over Egypt. They hold the majority of Egyptian debt in a relationship similar to that between France and Germany (i.e., Germans own the majority of French debt). Wherever the UAE goes, so goes Egypt. Now play careful attention to the other connections: Egypt has influence with Libya and is active in fighting the terror groups there to protect Libyan oil interests. Thus, the Libyans will go with the Egyptians and Russia. Then you have both Iraq and Syria falling under the influence of Russia’s ally Iran.
Mark my words! What we are seeing here is the emergence of the new oil-based power bloc that will replace OPEC. What is more, this bloc will not trade in U.S. dollars! It will trade in either a new agreed-upon petro-currency or in gold, two things the U.S. has none of.
Economic Mother Nature Is Violent
Just like it’s natural world counterpart, economic mother nature can be a violent and unforgiving b***h. The new order of things is nearly upon us and there is nothing that the corrupt bankers in the West can do to stop it. Putin has effectively taken the war option off the table. Just look at the recent moves by the U.S. Defense Department to share intelligence with the Russians and Syrians behind the back of foreign intelligence mole Barry Hussein Obama Soetero. The DoD is actively undermining the CIA because it is sick to death of a civilian intelligence agency that is NOT working in the best interests of the United States.
We live in dangerous times, dear readers. Thousands of variables and rash actions by corrupt morons in powerful positions can lead to different outcomes rather quickly. More than ever NOW is time to take seriously the Royal Bank of Scotland’s warning to “sell everything and get out.” The Guerrilla would add only that what you sell should be paper assets. Accumulating hard assets and the means to survive the coming upheaval should be the priority now. Followers of Rogue Money, it is time to kick the preps into overdrive. The Guerrilla wishes you godspeed.