The global conflicts Larry Edelson and our team have warned you about are now escalating with such frightening momentum …
Nearly every pillar of American foreign policy is collapsing … the Obama White House is overwhelmed … and the stage is set for the next phase: GLOBAL OIL WARS.
Oil wars are those that (a) target energy reserves or (b) use energy supplies as a weapon of economic destruction!
Indeed, key aspects of these oil wars are already under way right now …
Just this week, in an 11th hour knee-jerk reaction, the president has authorized limited U.S. air strikes against Sunni extremists (ISIS) in northern Iraq.
In his address to the nation Thursday night, the president said it was to prevent the genocide of religious minorities and protect U.S. personnel in the Kurdish capital, also on the verge of falling to the extremists.
No one need question the veracity of his reasoning. But nor should anyone underestimate the importance of the oil factor: Some of Iraq’s largest oil fields have already fallen to ISIS, giving them effective control over much of the region’s energy supplies.
And that’s just the beginning: Victories by ISIS in Kurdistan and southern Iraq would give them control over 140 billion barrels of proven oil reserves — more than those of Libya, Nigeria, Kazakhstan, China, Brazil and Mexico combined.
What’s most alarming is that Obama’s actions on Thursday are already too little, too late for Iraq; too much, too soon for America’s war-weary citizens. Consider the facts on the ground:
ISIS has already established an Islamic state across vast areas of Iraq and Syria — more territory than the entire states of Israel and Lebanon.
Massive supplies of sophisticated U.S. weaponry, abandoned by the fleeing Iraqi army, are already in their control.
They have already mobilized these weapons to overwhelm the Kurdish army, the one and only army that Pentagon analysts hoped might be able to stop them.
|Iraq’s largest hydroelectric dam. Even without sabotage by ISIS, this dam could collapse under its own weight, due to chronic structural defects that must be continually controlled with extreme engineering, according to U.S. government reports.|
Worse, this week, they also took the nation’s largest hydroelectric dam, giving them the ability to retaliate against American air strikes by blowing up the dam and unleashing a devastating, 65-foot flood wave, threatening millions of people.
What’s the end game in Iraq?
Unpredictable — except for this aspect: America’s enterprise in the region is an abject failure, and that failure could have broader economic consequences than the fall of Vietnam — namely, a direct threat to some of the world’s largest energy resources.
And that’s even without any spread of the war to neighboring Kuwait, Iran and Saudi Arabia.
Energy is also the big goal — and
threat — in the battle over Ukraine.
On the Russian front this week, Putin’s retaliation against U.S. and E.U. economic sanctions shocked the West.
Western analysts simply did not expect Putin to react so swiftly. They certainly didn’t expect his ban on food imports to be so sweeping, threatening to deal a crippling blow to producers in the U.S. and Europe.
What’s most frightening to Europe however, is this simple headline:
TODAY FOOD! TOMORROW ENERGY?
Let me spell it out for you: Today, Putin has used food imports as his weapon of choice. Next, there’s nothing in the world to stop him from using Russia’s vast energy exports.
Indeed, everyone knows that energy contract disputes between Russia and Ukraine is what originally helped start the Kiev revolution and the current war.
Everyone knows that Putin’s actions to cut off energy supplies to Ukraine in the past is what set the stage for today’s conflicts.
And we all know that the main reason Western Europe had been so reluctant (until now) to impose sanctions on Russia is the fear of another major gas cut-off.
Well, now the European nations have gone ahead. They have blasted Putin with those sanctions, despite their fears.
Now Putin has retaliated with a ban on their food imports.
And now, Europeans are about to fight back (again!) with more sanctions.
What’s Putin’s NEXT move? It should be obvious. He will bridge up from food to energy. He will use his vast energy supplies as his next weapon of economic destruction against the European Union, precisely what they have feared the most all along.
Plus there are more hidden energy agendas behind Putin’s moves on Ukraine, as I wrote here six weeks ago. (See “Oil wars exploding! Gold surging!“)
But in case you missed it, let me tell you again: When Russia seized Crimea back in March, most analysts said it was just a land grab by Putin toward restoring his dream of a Russian empire.
What most people didn’t realize is that Putin’s goal was not just the Crimean landmass but also a maritime zone more than three times its size with the rights to underwater resources potentially worth trillions of dollars.
The New York Times explains it this way: “Russia portrayed the takeover as reclamation of its rightful territory, drawing no attention to the oil and gas rush that had recently been heating up in the Black Sea. But the move also extended Russia’s maritime boundaries, quietly giving Russia dominion over vast oil and gas reserves while dealing a crippling blow to Ukraine’s hopes for energy independence.”
How big are these reserves? Energy experts now say that Russia’s new energy windfall there may be as big as the North Sea, where Britain and Norway have enjoyed windfall profits for four decades.
Plus elsewhere around the globe …
Energy reserves are the target of Islamic extremists in Libya, Nigeria and other oil-rich regions of Sub-Saharan Africa.
They are the primary focus of the raging disputes between China and its Southeast Asian neighbors.
Energy is the big unspoken bugaboo underlying the West’s 35-year conflict with Iran … the spreading war between Sunnis and Shiites … and the emerging not-so-cold war between West and East.
Larry Edelson, who repeatedly forewarned us of today’s rapid escalation in global conflict, puts it this way:
“Global conflict is now ramping up even more quickly than even I had anticipated — not just economic wars, currency wars and trade wars, but also civil wars, regional wars, cold wars, revolutions and social chaos.
“They will turn out to be some of the most important events of your lifetime — events that will shape your financial future and the financial future of all those you love for the next 50 years.
“Unfortunately, however, most people still don’t understand them. They don’t know what’s happening — let alone what to expect. They haven’t connected the dots to gold. And they don’t realize how deeply the conflicts tie back to oil and energy.”
This is one reason Money and Markets’ Mike Larson long ago turned his attention to energy, as he explained here last week.
But there are also two other reasons:
First, U.S. production of petroleum and related products, which had been declining for nearly two decades, has recovered — and done so very quickly.
That’s a dramatic turn of events with lasting consequences for investors who target the right sub-sector of the energy world.
Second, thanks to the rising production, U.S. reliance on imported oil has plunged.
Does this mean that the United States is invulnerable to the oil and gas wars now exploding abroad?
I wish! Unfortunately, the oil wars are breaking out suddenly and right now! In contrast, America’s trend toward energy independence is a slow process that will take many more years.
That means we continue to face the threat of surging energy prices.
What to Do
First and foremost, make sure you have a stake in both energy and gold.
Second, stay tuned to urgent updates from Mike Larson, Larry Edelson and our entire Money and Markets team.
Above all, stay safe with things that can protect you even in the worst of times — large allocations to cash, a reasonable stake in precious metals, plus investments that can deliver reliable, good yields.
Good luck and God bless!
by Larry Edelson
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