The Nuclear Option
By: CAPTAINHOOK
GoldSeek.com
Monday, 22 May 2017
As explained by Paul Craig Roberts, and unbeknownst to most, prior to the French election, and before Trump fired Comey, US neoconsevatives (neocons) in Washington threatened a pre-emptive nuclear strike on Russia – and apparently they are serious. Serious – no way right? They can’t be that crazy. Apparently such an assumption would be wrong – because they are – where they believe they can go overseas – nuke Russia (North Korea — anybody?) – and nothing will happen to them coddled comfortably in North America. What’s more, apparently they believe they can do anything they want to get ahead financially / power-wise – with no negative implications for themselves – for reals.
Now, Comey’s firing might slow things down in this regard in the near future, as the globalists / leftist / neocons will be setback somewhat, however if Trump does not maintain momentum in terms of ‘draining the swamp’, the crazed bureaucrats who have now been put on guard with Comey’s demise, will right back at it pushing their agendas (it’s already happening – see here, here, and here) – including moving America closer to war – because again – apparently these crazies think they can engineer any war untouched – in the promotion of ‘empire’ – just like all the others. Americans have never fought a war with foreigners at home, unlike just about everybody else, so they have never had to live with the lasting effects when the action subsides – so they don’t know any better – assuming such concerns are even on the radar screen.
All one can say to these idiots is – try and tell that to a Russian nuke sub captain after Moscow is leveled. Something tells me New York and Washington won’t be too far behind.
But even if they are not that crazy, and all the war mongering is simply ruse to raise the price / business of defense stocks, make no mistake there’s still a ‘nuclear option’ that can be played in the super-power game (of chess) that is not Kabuki – not by a long shot. What I am talking about here is not military, but economic, and is part of the natural progression in the geopolitical game that has been unfolding ever since China started accumulating gold (and now silver) aggressively, over 10-years ago now. What if at some point in the not too distant future China plays the silver card? This would hit the Western banking system like a ton of bricks. Let me explain.
Silver, not gold, is the status quo’s ultimate kryptonite, evidenced in their efforts to keep it suppressed, which in turn keeps everything else in line (low inflation) via inter-market relationships, which are determined by the machines (algos), which in turn is a function of speculator betting practices (true sentiment) in the derivatives markets. And this situation is set to continue until the hedgers / speculators have a change of heart, and global precious metals pricing is still set in US paper markets. This is the mechanism that has kept precious metal prices suppressed for many years now, with the silver market at center (of the manipulation) because it’s a small and localized market, meaning it’s been easy to manage.
That said, if the hedgers / speculators were to ever have a lasting change in sentiment, which would alter betting practices in favor of the bulls (because they would be betting bearish in the derivatives market), things could quickly go against them via the machines – sending prices much higher in a dramatic catch-up move that could finally capture fundamentals. And sure enough, in a surprise move over the last few weeks, as can be seen here in the latest COMEX Silver COT reading, the speculators finally snapped by going short in a big way, where if this trend were to continue, a lasting bottom might be witnessed as early as this summer / fall. (i.e. in coordination with the initial stages of a financial crash / deleveraging.)
What does this mean? It means even if open interest keeps rising, if it’s a result of dumb spec money going short against the Commercials (banks), and epic move to the upside would be assured via a short squeeze. What’s more, and circling back up to China’s nuclear option, if they were to continue scooping up all the available physical, well, things could get out of the control of Western bankers. For perspective, it’s important to realize American Empire is actually slipping out of control these days, with strategic military might not what it used to be. Factor in peak silver (production) into the larger equation, and it would not be a stretch to characterize what is happening right now as a defacto (and developing) nuclear meltdown for the US. (See Figure 1)
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