Geopolitical Tensions Are Designed To Distract The Public From Economic Decline

Unfortunately, this author understands the Deep State's agenda.  And before dismissing him as just another "extremist right-wingnut", he was one of the few who predicted a Trump presidency when there were 20 other GOP candidates at the starting line.

Don't judge others--especially when they are right more often than you are.

http://www.alt-market.com/articles/3243-geopolitical-tensions-are-designed-to-distract-the-public-from-economic-decline

The Double Whammy of Geopolitical Gold Games

http://www.24hgold.com/english/news-gold-silver-the-double-whammy-of-geopolitical-gold-games.aspx?article=1077404312G10020&redirect=false&contributor=Antal+E.+Fekete

The Top 30 Global Geopolitical Hot Spots for 2012

Here's a chart for worrywarts:


http://www.zerohedge.com/news/top-30-global-geopolitical-hot-spots-2012

US refineries

I had a couple discussions last week with two men who work in refineries, one in Louisiana and Texas. Apparently, it's becoming increasingly difficult to operate a petroleum refinery in the Gulf states due to environmental pressures, shrinking profit margins and regulatory restrictions.

Refineries are an important link in our nation's energy chain, where crude oil is processed and refined into byproducts such as gasoline, diesel, asphalt base, kerosene, heating oil, and liquefied natural gas.

The US already imports too much crude oil from foreign countries, some with unstable governments, putting us at geopolitical risk. If more domestic refineries are forced offshore, we will become increasingly dependent on foreign sources of energy. Crude oil AND refined products would need to be imported. This will increase our exposure to supply shocks, and it will also inject a hidden, permanent tax on our energy sources.

Another reason to be bullish on gold

First, the Fed has dropped short-term interest rates down to 0%. Then, the Treasury is injecting up to $7.4 trillion in additional capital, literally out of thin air, to support ailing (and failing) industries.

Capacity issues are creeping in, as farmers lose crops due to drought, mines dry up, and exploration for new resources are stalled due to the financial crisis. All these factors point to inflation. However, fears of deflation rule the day.

Yet, gold prices keep trending up. Shares of gold mining companies have shot up even more--up 100% in some cases.

The markets are betting on deflation of asset values, including equities and real estate. Hence, both are likely to remain low for some time. And crude oil and other energy sectors have been battered. Agreed.

But looking forward (instead of through the rearview mirror), oil won't remain below $40/barrel forever. And when that dynamic reverses course, inflation will rule of the day.

And today, we had other things to worry about. Palestinians are shooting rockets at the Israeli border. Pakistani troops have abandoned the Afghanistan border and re-aligning themselves along the Indian border. The price of gold shot up over $20/oz within minutes of the news.

Today, we found out gold is not only a great hedge against inflation, it is also the currency of last resort in times of financial and geopolitical crises.