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The various analyses of the current situation in Europe and the narrative-shaping news coming out of Ukraine have been mostly wrong. That’s not new; we’ve been saying since February that the sanctions against Russia would backfire and do far more harm to Europe’s and America’s economies than to Russia’s and we were called “Russian propagandists” as a result.
Now, the same people who said the sanctions would tank Russia’s economy and do little to harm western economies are saying Europe’s economies ARE going to crash, but that it’s somehow a good thing because it will put an end to The Great Reset. Once again, I’m forced to debunk these claims. The crashing of western economies is EXACTLY what the architects of The Great Reset want.
You can’t sell a reset when things are going well. You can’t Build Back Better until a nation is effectively destroyed. This has been the case from the beginning and it’s how the globalist elites plan on pushing us down their Neo-Marxist road. I detailed all of this on today’s episode of The JD Rucker Show.
The Great Reset Will Be Presented as the Solution
An article by David Solway at PJ Media dropped over the weekend that was well-reasoned, extremely well-written, and absolutely wrong. I can understand the wishful thinking that can drive someone to believe a collapsing Europe would somehow derail the Cabal’s plans for The Great Reset based on the past and ongoing circumstances that tie globalist power to European prosperity. What Solway’s assessment doesn’t take into account is that the ties that bind the Eurozone’s capitalistic success with the globalist elites’ own financial fortunes are not nearly as permanent as most believe.
Solway wrote:
As Richard Morrison writes in National Review Capital, “The global regulatory cartel that technocrats such as Schwab envision—a system of supranational policymaking that insulates politicians and CEOs from the demands and expectations of their most important constituents—is exactly the course of action that will end…the amazing growth, health, education and prosperity” that the free-market system has created. Such is the policy that Klaus and his Davos minions would pursue, which the current imbroglio might well put paid to. There would be scarce maneuvering room to set the Schwabian program in place.
Or, on the contrary, would the proponents of the Davos enterprise rejoice in the anarchy and see it as a timely opportunity to impose a socialist interregnum leading to a full-fledged totalitarian upheaval, a leftist takeover of the global community that would meet little resistance?
I suspect that such an eventuality is unlikely. Corporations would be severely weakened by the energy crunch and unable to successfully assert their “stakeholder” dominance. International bodies, nonprofits, and political organizations would be similarly hamstrung. In effect, there would be too little remaining “on the ground” for the Reset to take hold, which in the light of a global cataclysm would be cold comfort indeed. The Great Reset is something that can be opposed; the wreckage of the global economy and the destruction of the institutional structure of society offer no such consolation.
He was close. He acknowledged that a collapsing Eurozone economy would mean chaos through which the architects of The Great Reset could launch the next phase of their plan, then he dismissed it as “unlikely.” On the contrary, it’s extremely likely. I would go so far to say that it’s precisely what the Cabal has not only hoped for, but have planned for some time.
Rather than seeing western capitalism and globalist power as tied together, we need to see them more as heading in the same direction… for now. They appear to be in lockstep; the success of Eurozone economies means success for globalist organizations like the World Economic Forum, Open Societies, and the Council for Inclusive Capitalism. But just because they’re heading in the same direction doesn’t mean they’re going to the same destination.
Imagine two cars driving side-by-side on a dark road. In one car is the Eurozone economy. In the other car is the globalist cabal. The road is dark as they speed along and neither can see very far ahead. But the globalist elites have a map, one they created when they laid out the route they all would take from the beginning. On the map they can see the bridge is out. The Eurozone car doesn’t have the map. They can only see what’s immediately ahead.
Just before reaching the dysfunctional bridge, the car full of globalists will hit the brakes. The Eurozone car will keep going and plummet into the ravine below, crashing into fiery flames of economic distress and societal chaos. And who will remain intact to render aid and usher in a new vision of Neo-Marxism? Yep, the globalist elite cabal.
Here’s the article that I referenced in today’s show. It’s also the article Solway referenced for his article. Stay frosty, folks. Things are about to get bumpier than they already are.
Europe Is Bound to Collapse
I have been watching, with horror, the escalation of the economic situation in Europe since about mid-February. On Feb. 21, I published a short Twitter thread detailing the economic worst-case scenario for Europe if the war between Russia and Ukraine would break out, as it did.
The forecast had 10 stages:
- The West would be likely to respond with sanctions.
- Russia would respond by shutting gas to Europe.
- This would lead to a massive spike in energy prices in Europe, pushing the continent into a recession with high inflation pressures (stagflation).
- Inflation would reach double-digits within two to three months.
- Asset markets would fluctuate heavily first, then crash.
- Rampant inflation would force the European Central Bank to raise rates in a rapid manner and stop the Pandemic Emergency Purchase Program (PEPP) and quantitative easing (QE).
- The European banking sector would crumble.
- Sovereign yields would explode.
- The eurozone would unravel.
- Europe would fall into a depression.
Energy prices have skyrocketed, asset markets have fluctuated, and the European Central Bank (ECB) has stopped PEPP and QE (kind of). Inflation in the eurozone was 9.1 percent in August and shows no signs of relenting. So we most likely get to double-digits already maybe next month. So, ominously, we’ve already “checked” Nos. 1, 2, 3, 4, and 6 from the “worst-case” forecast.
What to Expect in Coming Months
The ‘credit default swaps’ of Credit Suisse, a Swiss banking giant labeled as a global systemically important bank (G-SIB), have reached levels not seen since 2009. German government 2-year bond yields are currently trading some 100 basis points higher than the 2-year EUR OIS swap rates, which reflect the ECB rates over the next two years. We haven’t seen such a divergence since the height of the European debt crisis in 2012. This is leading to a massive “collateral crunch” in banks, as the value of most-used collateral (sovereign bonds) with respect to deposit rates is collapsing.
A Banking Crisis is Brewing
Italian 10-year bond yields are flirting with the four percent mark thought to represent the ‘line in the sand’ for the Italian government not being able to cover its finances. The ECB has been using funds from maturing debt of, for example, Germany and the Netherlands to purchase the sovereign debt of Greece, Portugal, and especially Italy. At the end of July, ECB holdings of German, French, and Dutch bonds had fallen by $19.3 billion, while holdings of Italian bonds had increased by $14.3 billion. It’s expected that the ECB will increase its purchases further in the coming months.
However, the question is, will it be enough to stave off the onset of another debt crisis?
Inflation in Italy is running at a euro-era record, more than 8 percent, and her households and corporations are feeling the full brunt of soaring energy prices and the disruptions in the flows of Russian gas to Europe. According to modeling by the International Monetary Fund, if the European gas market fragments, meaning that there would be gas supply disruptions, the Italian gross domestic product could shrink by roughly 6 percent. We’re very close to that point after Russia cut off its gas supplies to Germany (Italy still receives Russian gas). The Italian government is also already working on a bailout fund for the small lenders. Small lenders aren’t the real problem, however.
Italy, and Thus Europe, Is Closing in a Full-Blown Debt Crisis
According to a report by Equinor, a Norwegian energy group, energy companies are facing an annihilating $1.5 trillion worth of margin calls because of the violent price reactions in the European energy markets. Energy companies are required to maintain a minimum margin deposit in the case of a default before supplying the energy. These margins raced higher with the soaring forward electricity prices, which, while off from their highs, remain elevated. Recently, Finland became the first European country to sign a “bridge agreement” to cover the collateral agreements of Fortum, Finland’s largest energy producer. Other governments are likely to follow.
The price of electricity remains high. For example, in Germany, the spot price is currently about 10 times higher than in the summer of 2021. Many households and corporations are seeing their energy prices multiply by 10 or more across the continent.
Alas, unsurprisingly, the unraveling of the European economy is already on its way.
Many European energy-intensive industries are closing down or slashing their production heavily because of high energy prices. Even bars in the UK are deciding whether to close their doors (effectively an “energy lockdown”) because they can’t afford the energy prices. At the same time, inflation in the country may top 20 percent next year!
Business loan delinquencies are on the rise across the continent (see, for example, this), and a ‘flood’ of business and household bankruptcies loom—all due to the weight of massively increased prices of electricity, inflation, rising interest rates, and an impending recession.
Thus, Europe is currently heading into an economic depression, and it won’t stay here. As I mentioned earlier, 10 of the global 30 G-SIBs reside in Europe (PDF). To compare, the United States has seven G-SIBs, but the housing market collapse of 2006–09, which led to a banking crisis in the United States, still almost collapsed the global financial system. If the European economy unravels, which seems likely at the time of writing, her banking sector will follow, taking the global financial system and possibly the European common currency (euro) with it.
Could Something Be Done to Avert All This?
I don’t think we can any longer escape European recession, which is also overdue, but there could still be time to stop it from escalating into a depression. While unpopular, the only thing that could bring immediate relief is turning the gas flows from Russia to Europe back on, which requires the removal of western sanctions.
Even if the storage, demand cuts, and global supply could replenish the Russian supply to Europe, which is very unlikely (see more, e.g., from my newsletter), prices of natural gas would be likely to skyrocket across the globe. Rising prices have already led to a “tsunami of shutoffs” in the United States. Just consider how bad the situation will get if natural gas prices double or triple from current levels.
It should be acknowledged that we’re here because of political decisions. First, green policies made Europe heavily dependent on Russian energy. Second, the decision of Russian President Vladimir Putin to attack Ukraine, the decision by Western leaders to enact tough sanctions, and the decision by the Russian regime to respond to them set the crisis ablaze.
In 1924, John Maynard Keynes warned against using sanctions, which “would always run the risk of not being efficacious and of not being easily distinguished from acts of war.” In his “magnum opus,” “The General Theory of Employment, Interest and Money,” he also argued that a globalized economy would eventually stop all wars, because their economic costs would become so horrendous.
We’re slowly learning that lesson.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
Great article