Turmoil, QE, Deflation, War and Terror

1/26/15
 
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by Martin D. Weiss,

from Money & Markets,
1/26/15:

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, … and your family’s destiny.

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.

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.

How Will It All End?

Badly.

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.

on top of all that, it’s giving the Fed a whole new excuse to delay its long-feared rate hikes.

So brace yourself. What you’ve seen so far is just the beginning

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