While You Can’t Put The Toothpaste Back In The Tube – You Can Slow Down How Fast It Comes Out
We are probably at a critical inflection point in the world in as far as both geopolitics and economics are concerned. The proxy war in Ukraine and the threat to the US dollar as the global reserve currency are at the heart of the matter. Things are far enough along that the status quo is no longer a viable option. Either the war continues to escalate and the BRIC’s fully introduce their commodity backed currency system tied to oil and gold, or cooler heads prevail and some sort of negotiated compromise is worked out. If we get the former, the Western economies dependent on the current dollar hegemony and the continued price suppression of gold and silver prices, will spin out of control with a likely collapse of the LBMA and COMEX, soaring gold and silver prices and a severe global recession. The alternative would be for the US and Europe to negotiate a compromise to end the war, in exchange for a much more modest immediate challenge to the reserve status of the dollar, with the BRIC system being slow walked and introduced in baby steps, to minimize the disruption to the global trading system. It will still represent a future challenge to the dollar, just not an immediate, all or nothing choice that ushers in extreme moves in currencies, commodities and economic activity across the globe. It will be interesting to see who blinks first and who thinks it is better to go for an all out win now, or compromise and move in a more gradual, methodical pace.
I’m looking forward to 2023, Chartsmaster. We have a very unusual setup that should see both gold and the dollar rising together starting in January. Its a double bonus as the move higher in dollars leverages the asset values nicely. Miners should be one of the best performing equity choices if I am reading the charts right. But what does that imply for everything else?
Only time will tell.
Well stated. If your premise is correct it will be to the surprise of most analysts and observers.
I have noticed you are a pretty good analyst and a great chartist. What are you seeing? Are we good to go for this combo move or am I out of my mind and living in fantasy land?
Regrettably, I don’t see any signs that cooler heads will prevail. With the likes of Petraeus & Graham pounding the war drum and actually thinking there is a nuclear option I think the world is about to defend into madness. With the ground now frozen the final push is about to begin. The key element will now be the level of stupidity in the NATO response. A few of the market analyst I follow see a hard sell in the markets come mid-January. I suspect this will be the catalyst.
So good news for metals but terrible news for the world. That seems about right. lol
Can’t we ever have our cake and eat it like everyone else!
>>…the world is about to descend into madness. The key element will be the level of stupidity in the NATO forces.<<
A few notes:
– The weather in Ukraine has been rather mild so far this winter, mixed rain and snow. Day time highs have been almost consistently above zero degrees C. (I have been following Kyiv, Kharkov, Odesa on theweathernetwork.com ) The ground may not yet be hard frozen. Much colder temperatures expected for Ukraine after the first week of January.
– The bulk of Russia's 300,000 mobilization (plus 80,000 volunteers) will not be fully trained until sometime in
March
– Russia cannot, will not, agree to walk away at this stage. The neocons of the west are unable to see beyond their hubris and their greed. The war will escalate. The question is will it escalate by degrees or flare up suddenly into full blown NATO verse RUSSIA outright war.
– We know that Russia is fighting a war of attrition with the aim of annihilation of the Ukraine army, whereas Ukraine is fighting to gain back terrain. It seems unlikely that Russia will switch strategies, at least not until after the fall of Bakhmut and the liberation of Donbas.
https://t.me/s/intelslava