Monday, August 09, 2010

Has World War III Already Begun?

"Of the tyrant, spies and informers are the principal instruments. War is his favorite occupation for the sake of engrossing the attention of the people and making himself necessary to them as their leader" --Aristotle, over 2000 years ago

We have a goal on here to stay at least one step ahead of the status quo as it pertains to the world's economic events. Often we are more than one step and, in fact, are years ahead of expected outcomes. We've been well ahead of the curve on a multitude of topics that the mainstream financial community and media are still not coming to grips with.

Writing about topics as they come to pass or ex post facto is what you find in the mainstream media or in the financial community - it may be interesting or valuable as a historical learning tool but it's not actionable. eg, There is little actionable relevance to concerns over the last year about China. The Shanghai Index is already down 70%, commodities and related equities have only recovered mildly from their massive implosion and fixed capital investment in China is literally collapsing as tens of thousands of factories have already closed. But we wrote all of this would happen while the Chinese juggernaut was still headed skyward and the mainstream media and financial propaganda machine was giddy with ignorance. Ditto with our writings of banks, oil, Russia, emerging markets, equities, the euro, the yen and the dollar as some other examples.

War is another example of where we are well ahead of the curve.

We have written probably more than one hundred posts since starting this blog regarding one of our major themes on here; volatility. This cycle of volatility is simply not defined by financial markets or economics but by the world around us. We've put up some rather unique posts on atmospheric electrical disturbances, extraterrestrial energy sources, earthquakes, beached whales, collapsing bee populations, GMOs - manmade life & the industrial food monopoly, the potential dynamics for famine and finally war to name a few. Obviously this is in addition to our endless posts on economics. These all have one overriding commonality - volatility.

For some years now we have been writing about the possibility of substantial volatility as it pertains to conflict. That includes the potential for revolution within China or conflict involving China as the state seeks to maintain control. And we have discussed the specific economic dynamics that I believe will drive this. (A far cry from the bureaucrats in Washington and on Wall Street status quo who, over the years and even today, extol the virtues of a false reality.) Re those same bureaucrats, we also put up a lengthy post on how the seeds of war were and are being laid by political idiots around the globe.

As I have said before, I don't put any credence in master plans conspired by others including planned eugenics or rich Bilderbergers or Rothschild bankers pulling the strings of all of humanity from behind the curtain. Most of these conspiracies are popular with profiteers seeking to bilk gullible elements in society. In the first place, conspiracy is grounded substantially in paranoia. Paranoia is a delusional state of mind driven mainly by fear. You can't have a reasoned discussion with yourself or anyone else when fear is involved. In other words, I could take any set of events and dream up a theory where some person(s) created them for a dubious purpose. I could easily create a conspiracy of, say, why my wife went to visit her parents. One could "connect the dots" but would simply be the workings of a deluded and paranoid mind. Comments about our President being the anti-Christ or some front for international financiers are extreme examples of such idiocy. As I tease one of my friends who assigns too much brilliance to political idiots and Wall Street crooks, you are having a John Nash moment. She'll appreciate my publication of this remark, albeit anonymously.

There is plenty of fraud and corruption and the people committing it are plenty stupid enough to leave it in plain view to see. It's right there. There is no conspiracy. There is no brilliant secret plan of elitists. Brilliance and elitism is almost an oxymoron by definition anyway. What we see is massive fraud and incompetence in plain sight. You just need to open your eyes and embrace the truth in lieu of strongly held beliefs.

So back to the link for this post; World War III has already begun. I don't believe American politicians will be able to gin up support for an increased preemptive war theater. Period. Marc Faber and the author of the linked article both apparently do. Frankly, I don't believe most U.S. politicians would want to gin up support for more wars. Americans have a history of being leery of and growing weary of dubious wars and extending the theater would likely require the institution of a draft. For a war of choice, which is what preemptive strategy is, that is not going to play on main street. As I wrote in a prior post, I would expect we could actually see mass desertions or substantially sympathetic protests manifest themselves in some manner were the United States to play that card. In other words, we could see an unprecedented response of resistance by the American people to preemptive war. Before one thinks this is impossible, remember we only need to look back to World War I where a war of choice was waged for the benefit of European empire. (As a short digression and a comparison of irony, while WWII was the good fight, there were major political mistakes in Europe that contributed to its dynamics. And while WWII was not about empire, the British sought to keep their empire after the end of the war. If it weren't for the United States, they would have. Wouldn't it be ironic that just as in WWII, where the U.S. forced Britain to forfeit it's empire, that any future coalition sought to solve world crises or exert political will or wage war, would also demand the United States give up its empire just as we demanded of Britain in the last cycle of volatility? That could be forfeiting the world's reserve currency for a new trading medium or scaling back the U.S. war machine or whatnot. History does repeat itself and karma, well......)

My point with the prior paragraphs is that I don't necessarily agree with all of the finer points made by the geopolitical expert in the referenced article. But I do believe many of the seeds have already been planted. There needs to be something much more substantive as a foundation in some attempt of political forces around the globe to gin up the masses for war. Manipulation of economics was a foundational element of World War II and is often the foundation of war. And we wrote some time ago that on some level we are following in the foot steps leading up to World War II. There will be plenty of finger pointing between nations in coming years just as there was leading up to World War II. That includes the Smoot-Hawley ruse the status quo uses that we have remarked clearly had almost zero impact to the global economy during the Great Depression. Ideologues and their useful idiots still throw this up as a knew-jerk response without having any understanding of what they are talking about. I would gladly debate anyone on this topic with mathematical facts that are clearly distorted by liars and con artists with an agenda.

Mind you, there were some people who predicted World War II well in advance of it happening because of the economic dynamics created by political idiots around the world. These dynamics have a substantial time component so it could take some number of years for them to develop in today's world. But mark my word, the outcome of what we now call globalization is not a resumption of Pax Globalia. The elemental foundations of conflict are already there. Whether that manifests itself into global conflict or regional conflict, we don't yet know. For now we watch the game of power, politics and human nature unfold.

As the state seeks to assert its relevance in a time of its future uncertainty, in its wake will come increased volatility. That is, unless the peoples of the world thwart the encroachment of the state and as Aristotle wrote, thwarts the typical corrupt personality who serves the state; tyrants, spies and informers. The world's best last chance at averting future conflict lies with enlightened societies and their ability to avert or deflect the will of the state.

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posted by TimingLogic at 9:09 AM