The world is a mess and getting messier.
Hopes for global peace are in shambles.
Fear of global war, recently unthinkable, is now among the most prominent topics in strategy debates from the White House to the Kremlin.
Yet, few analysts seem to understand its true causes or consequences. And fewer still understand why it has been helping to drive the U.S. stock market higher — not lower.
So today, my team and I are kicking off a series of reports to help put together the pieces of this puzzle for you. And in the weeks ahead, we will give you a roadmap for your safety, your wealth, and your family’s destiny.
Wars Already Under Way
Face it. This is not just about the future. It’s also about what’s happening NOW …
1. Money wars: We see governments waging wars with printed money to ward off the collapse of currencies, the collapse of nations, and the dismemberment of national unions … to fight deflation, debts, and defaults … to overcome unemployment, poverty, and popular rebellion.
Last week’s latest announcement by the European Central Bank (ECB) to print $70 billion per month is just the latest example. Before the ECB came the Bank of England, the Bank of Japan and the U.S. Federal Reserve.
All with no long-term plan! All with no answers from them — or from anyone — as to when or how it might all end.
2. Economic wars: We see wars being waged with economic sanctions, trade blockades, asset freezes, spying and cyber-attacks. We see these economic wars between East and West. Between governments and foreign extremists. Between governments and their own people.
3. Terror wars: We have witnessed rampant bloodshed and unprecedented horrors on every Continent except Antarctica. On every day of the year except February 30th. In every way imaginable and unimaginable.
|We have witnessed rampant bloodshed and unprecedented horrors on every Continent except Antarctica.|
At the same time, we’ve seen how the threat of terror enables governments to justify new kinds of foreign aggression and new levels of domestic repression.
All of this leads to escalation. All of this escalation creates a groundswell of fear overseas. And all that fear is continuing to drive a flood of flight capital to the safest investments in the biggest companies of the most stable nations on the planet — especially the United States.
Then, as if that weren’t enough to drive up the U.S. equity markets, central banks continue to pour more and more funny money into the stream. Like the ECB. $70 billion per month from them alone.
How Will It All End?
The turmoil overseas could ultimately reach our shores. Or that turmoil could someday become so extreme that it drags the entire world economy, ours included, into an abyss.
Fortunately, neither of these is happening now — or likely to happen soon.
Yes, we do have some deflation.
But the deflation is limited mostly to oil and related commodities. It’s already saving American companies and consumers a ton of money.
It historically drives stocks higher, especially in the technology and consumer sectors. (Click here for the evidence.)
And, on top of all that, it’s giving the Fed a whole new excuse to delay its long-feared rate hikes.
|Now the Fed has a whole new excuse to delay its long-feared rate hikes.|
What we do know with greater certainty is that the pattern we’ve seen so far — continuing conflicts overseas driving more and more capital to our shores — is not ending.
How do we know? Three ways …
First, we know because it’s what we see, front and center, in the news every day.
Second, we know because it’s a THREE-WAY global conflict, and three-way conflicts are far, FAR more difficult to resolve.
The battles are not just East vs. West, or communist vs. capitalist, or allies vs. axis. They’re among …
The “West” — the U.S., Western Europe, and their closest allies.
The “East” — Russia, China and their cohorts, AND …
The Jihadists — in the Middle East and Africa … in Western Europe and the Russian Federation … even China.
I repeat: The impact of Jihad on our lives stems not only from the obvious threats it poses to everything the modern world stands for.
Its impact is also felt in the unintended consequences of governments’ reaction to those threats!
The end result is that the global war on terror is greatly raising the ante in the conflict between East and West.
It makes it easier for everyone — Washington or Moscow, Tokyo or Beijing, London or Tehran — to justify a harder line.
It makes it much harder to compromise.
And even if they could, the conflict does not go away. The global war on terror continues. And it continues to stoke the fires of conflict between East and West.
Third, we know because, all over the globe, we see the pattern of three-way conflicts replicated in region after region, country after country …
In most of the Middle East, we see Sunnis killing Shia, Shia killing Sunnis and Jihadist forces on a bloody rampage against both.
In Yemen, for example, the source of the recent Paris attacks, the entire country is coming unglued as Houthi rebels (Shia) have taken over the capital city … the U.S.-backed government (Sunni) has just collapsed … and the U.S. has lost its biggest allies in its war against Al Qaeda (Jihadists). So now it’s open season for Al Qaeda on the Arabian Peninsula to launch bloody attacks against all of the above.
In Iraq and Syria, we see a three-way war among Shia forces, which control both central governments … Sunni forces, mostly aligned with anti-government forces … and ISIS, which is winning against them all. In fact, ISIS has not only conquered territories larger than the UK, but is also holding firmly to those gains despite four months of massive allied bombings.
|ISIS is holding firmly to its gains despite four months of massive allied bombings.|
Shifting to Europe, in Ukraine, we see a three-way conflict among pro-Western extremists, pro-Russian rebels and a series of government administrations, which have forever been unable to steer a stable middle ground between the two. And this week, it got worse as the Russian and pro-Russian forces sent Ukrainian troops fleeing in panic and took full control of the critical Donetsk airport.
In France, Germany, and most European countries with sizable foreign populations, we see a three-way conflict among anti-immigration forces marching in cities all across the continent … anti-government rebellions putting still more pressure on central bankers to abandon austerity or print more money … and national governments that are incapable of agreeing on cohesive policies to address either.
No amount of ECB money printing will change this.
But all this is creating a huge opportunity right now AND raising serious questions about dangers down the road.
So brace yourself. What you’ve seen so far is just the beginning. And stand by for our next report in this series.
Good luck and God bless!