The first area the world is having difficulties is nothing new as finances and resources are always at a critical point somewhere, but when it spreads wide and wild, then there is a problem. The problems are about to get really tightly strung as the United States cash flow valves are about to be made even tighter until mid to late August when the money will be released to give the economy as good a feel and appearance that people will believe that President Obama’s promises to repair the economy have finally begun to work. This will be reflected in a general media message that all is finally well in the world and the United States is healthy and ready to take on the comeback of the millennia. Nothing could be further from the truth but if the economic weapon is to be taken off the table making the push to place Hillary Diane Rodham Clinton in the White House will begin in earnest. What about the e-mail scandal and the leaking of classified information and her using her own private server to remain out of sight her dealings and what about those dealings and then there is the pay-to-play cashing in on her Secretary of State position by the Clinton Foundation personal slush-fund and so much more it is impossible to keep up with it. These e-mail revelations will all be settled and forgotten by the mid-September push where the world will be all Hillary all the time should her coronation go off as planned at the democrat National Convention, which means Bernie Sanders is the court jester out to entertain the masses while all the Hillary loose ends are tied up nice and neat; then Bernie will disappear and drop out for personal and family needs. Of course he will release his support and give Hillary all his delegates at the second round unless the most unbelievable happens and Bernie Sanders becomes the man and the Democrats will dump on Hillary again and the Clintons will have it out once and for all when Bill tells Hillary that it just was never meant to be. Look for a very vindictive and messy divorce to soon follow as Bill will have not been able to provide the necessary support to assist Hillary when it became her turn. Of course it could never have been that Hillary Diane Rodham Clinton was such a set of damaged goods that anything short a miracle could have ever placed her in the White House as the President. Perhaps the truth lies in that she was better as an ornament assisting Bill and quietly out of the actual scene than she would ever be the ‘One’ herself.
Meanwhile American consumerism has yet to recoil from the 2007-8 recession and the United States has been languishing in the shadows making a very slow recovery on the jobs market. This has put a serious damper on American consumerism, the buying power on which much of the world economy sits waiting to serve up the goods for Americans to buy. The European one currency disaster is slowly being repaired by using Germany’s wealth and productivity to provide universal monetary relief making the European Union a full circle system where Germany pays the less affluent countries to pay off their debts to Germany and assist their less than ambitious workforce to at least take welfare and spend it on German goods. This has created a system where Germany produces the goods that the rest of Europe consume with well over half the population using German wealth to buy in, so to speak. This is a model of an economic perpetual motion and cash flow machine. The problem is friction and drag which will eventually cause all the funds to not quite reach their theoretical place and be utilized to purchase German goods. People will use a fair share of the German largesse on feeding themselves and not living on German beer, or is it bier? The governments dispensing this cash flow fungible funds will take their cut as government are known to do and other diversions prevent this perpetual cash flow machine to rather rapidly grind to a halt, then what? This was where American consumerism was to kick in and cover the difference and continue to push cash into the machine to overcome the friction and inertial problems but that did not occur right on time. Then there was supposed to be this new middle class in China ready, willing and wealthy enough to re-prime the European economic model. Another ‘no-go’ as they are spending their cash to prop up much of the Asia markets and doing that slightly better than the Germans, but that too is reaching its tipping point as China’s buying power turned out to be overrated and Japan and Australia were not capable of filling that gap so they were also turning to the American consumerism machine which remained relatively idle for reasons the rest of the world could not understand. The reinvestment in American consumerism is scheduled for lift-off later this year in order to place the next media coronation on-track to place Hillary Clinton back in the White House. Expect Bill to play his role perfectly as the supportive spouse as he provides the necessary cash for her campaign while attempting to resist any temptations which would be a true and dramatic scandal.
Then we come to the rest of the world. Saudi Arabia is sitting on that valve with the exception of Iran and the one-hundred-billion-plus bribery to permit them to sit in a really plush hotel suite and dictate their dream nuclear treaty and for President Obama and Secretary of State John François, did we mention he was French, Kerry to appear to be writing and crafting a cleverly devious set of rules and stipulations which would prevent Iran from building any nuclear weapons, especially deliverable ones as they also were writing a prevention to test missiles and related technologies into the treaty. They were terrible actors or at least other than the carefree unconcerned President completely trusting his competent yet bumbling Chief Inspector Jacques Clouseau of the French Sûreté Kerry to bring in the play of the century and deliver the ultimately understated but effective treaty. The entire act failed as none of the parts were played by the late Peter Sellers and thus masterly failing and flailing to the best solution through erroneous thinking always overcorrecting just enough to get the criminal in the end was not pulled off. The Iranians were playing three dimensional chess, or possible a number of dimensions higher, while Obama and Kerry were playing the ever so complicated game of Noughts and Crosses, how so ever European of them. The nuclear path to Armageddon arranged, paved, and decorated by the United States gift wrapped and delivered to the Iranians set Saudi Arabia even further on edge. The Saudis are playing their one card and playing it to its utmost capacity pumping oil from the ground at a pace previously unheard of to crash the market and push prices down as far as it can go.
This has had effects all desired and planned by the Saudi government, aka the Saudi Royal Family. The low prices means that the lesser grade or difficult to extract barrels of oil produce little if any profit and even losses for certain lower grade oils less desirable than the light, sweet oil of the Saudi oil field production. This was intended to bankrupt the Iranian oil market which is likely not producing the cash flow which makes Iran operate but fear not, the Obama administration has taken care of that with the unfreezing of over one-hundred-billion-dollar present right into the Mullahs of Iran’s pockets which will neatly finance their missile and nuclear research and production placing their nuclear and missile programs on the fast track for a five year target date which may be even less in the distance than all except soon to be out of office and thus not blamed for what happens next. The low price of oil is also killing any additional fracking or other fairly expensive to initiate oil fields exploration thus slowing the United States ability to develop these technologies until further notice. The final effect is against Iran’s favorite former and soon to be again super power, Russia. Russia is getting next to nothing in profits from oil sales and is likely depending on vodka profits, a real let down.
The Russian government is next to broke but this is where gifts from President Obama roll in. Remember that hundred-billion-plus monetary reward the United States is about to turn over to Iran? Well, guess what they are going to do with a goodly amount of that largesse? That’s the ticket; we knew you would figure that out, of course they will be buying tons of military equipment from Russia. Expect the Iranians to repaint those units tan, beige and brown and then claim they designed and manufactured them within the first year. These military sales may end up being the life’s blood, the mother’s milk for the Russian economic engine. So, Iran gets advanced military equipment and will reverse engineer it or also buy production rights and for the Russians to build the factories as well to produce the missiles and other equipment in Iran. This will provide Russia with the funds to operate for a decade longer providing military goods to Iran. What could conceivably go awry?
Where does all of this end? Who knows? Sure, we’ll take a stab at it. Even the military equipment will not save Russia from their adventurisms. Propping up Bashir al-Assad is an expensive business and gets all the worse with every downed aircraft, exploded tank and even every bullet shot and supplies shipped to Syria all costs but things could be worse. Turkey is a wary acquaintance with a love-hate relationship with Iran. Should Turkish-Iranian relation devolve back to animosity stages then Turkey might decide to push back closing the Bosphorus thus separating the Mediterranean Sea from the Black Sea and making the bulk of the Russian fleet all but useless. This would also mean resupplying the Russian units in Syria far more expensive as they would all need to go by air routes around Turkey. With the Russian economy still weak and near collapse, such additional expense would be just the impetus that Russia might require to take care of the Turkish problem and take the Bosphorus straights on both sides including Constantinople, well, returning Istanbul to its former name might be part of the plan, couldn’t it? This more than likely would result in an all-out war between Turkey and Russia which might not end with Turkey. The Russians would not even blink when it would come to also raking-in the Kurdish areas of Syria and Iraq taking the northern parts of Syria down as far as Aleppo. Where such aggressions might lead is a troubling thought. Russia, under Putin, might fabricate an insult or problem from the Ukraine, Georgia, Belarus, Latvia, Estonia and many of the old nations, especially those in Central Asia, reestablishing the smaller and more vulnerable nations all in the name of protecting them from untold horrors threatening their futures. Now under the protection of Russia they need not spend anywhere near as much on their fears. It has all been crystalized down to one concern; the big brown ten-thousand-ton bear in the living room.
The hard truth is financial matters on a global scale are similar to the financial situation in Europe right before World War I. Far Eastern Asia such as China was not one of the main conditions as their economy was not producing great amounts of wealth and thus was not part of the purchasing consumer world. Russia was faltering as the Czars were overthrown and the democratic first elected governance was unable to instantly produce a functioning and burgeoning economy such as had been witnessed in the booming economies right after the turn of the century in Europe and the United States. That brought on another governance and government change and the Communists took over and immediately cowed the people and put them under a harder and more forceful boot that the Czars had done, Europe was facing an economic stall as if somebody had mucked up the flow of money and without money flowing the economic sails drooped and became dead weight and unproductive. This was not as true in the United States but the American economy drove American business and the main imports by the United States were exotic fruits from South America and coffee from South America plus America was still growing though far slower than before. The Ottoman Empire, a long deceased empire staggering, was being largely propped up by the Europeans as nobody desired these lands which were tribal, primitive, unproductive deserts.
By every measurement, Europe was a tinderbox awaiting a single spark. The Ottoman Empire was an even more volatile place and the Balkans were the Balkans with the different religious conflicts, the tribal conflicts, largely inert economies, no overriding force of arms keeping the lid on and everything in a kind of lingering limbo slowly devolving into Machiavellian might makes right situation where many thought they had the might and were waiting for the time to be right. Well, the time never got around to being right as firing a gun with the tinderbox that was Europe was frightening enough, what followed was simply the explosion that set the world ablaze. On June 28, 1914, then, Archduke Franz Ferdinand and Sophie were touring Sarajevo in an open car, with surprisingly little security, when Serbian nationalist Nedjelko Cabrinovic threw a bomb at their car; it rolled off the back of the vehicle and wounded an officer and some bystanders. Later that day, on the way to visit the injured officer, the archduke’s procession took a wrong turn at the junction of Appel Quay and Franzjosefstrasse, where one of Cabrinovic fellow revolutionaries, 19-year-old Gavrilo Princip, laid waiting. Leaping towards the car the assassin fired into the rear seat shooting Archduke Franz Ferdinand and Sophie at point-blank range. The would-be martyr then attempted to turn the gun on himself but was wrestled to the ground and was basically saved by the arresting officers. The rest is history, no, really, history, literally and exactly World War I history. Nedjelko Cabrinovic was an anarchist and belonged to a subversive group who desired revolution called the Black Hand which was later connected to the Freemasons though there is little evidence we could find of an actual link. Any input either way would be appreciated and allow us to say thanks in advance. Meanwhile, our other conspirator, Gavrilo Princip, was raised in a home of Serbian Orthodox Christian parents though many conspiracy theorists claim because of his appearance he had to be a Jew, the actions of assassinating the Archduke and his wife just sealed the deal on his religious origins had to be Jewish despite all evidence to the contrary. Hopefully there will be no rulers of the Austria-Hungary Empire riding through the Balkans in an open car with a maximum speed of almost seventy miles per hour in the next few weeks having a bang up time at the expense of the downtrodden masses; that would just be tempting fate, now, wouldn’t it. Kidding aside, the world does seem to be picking up speed as if there may be a crashing event in the near future and that is not a happy thought. Really nothing to add to that except the list of national and international leaders vulnerable to some revolutionary anarchist or other form of fanatic is not that far-fetched and that is frightening.
Beyond the Cusp