An Apocalyptic Scenario Is Now Unfolding For The West

The comments below are an edited and abridged synopsis of an article by Dr. Stephen Leeb

The world is embroiled in a two-front war: North West (NW) and South East (SE). One front is the battle between Russia and West-supported Ukraine. The other is the battle between China and the US for economic and political supremacy. This latter front also has military overtones. If either economy is seriously weakened, economic conflict could turn into a military one centered on Taiwan.

An Apocalyptic Scenario Is Now Unfolding For The West - BullionBuzz - Nick's Top Six
conceptual global warming image of fire flames and large group of people. NASA world map image layered and used;

If both sides stepped back, they would see that each has more to gain from cooperation than from waging a battle that is certain to be catastrophic for all. Meanwhile, the NW’s position is becoming more tenuous, with more turmoil in store.

Whatever happens, gold will be a major winner. Its lackluster performance has been frustrating, but the fact that gold has lagged commodities and seems capped on the upside further boosts its long-term potential.

A defining characteristic of the world has long been the US dollar’s hegemony. The current NW/SE conflict has major implications for the dollar’s future role. The possibility of a new gold-centered monetary system poses the biggest threat. Since the US left the gold standard in 1971, the rivalry between a fiat currency and a gold-backed currency has been apparent in the strong negative correlation between the two.

Whether or not US banks have been manipulating gold, the world’s banking activities are defined in dollars. Anything that threatens the dollar’s primacy would diminish the power of US banks. As long as the consequences from manipulating gold are less damaging to banks than the harm they’d suffer from the dollar losing its primacy, banks will be motivated to manipulate gold. And since what is true for banks is true for the entire economic system, and especially the Fed, banks can feel confident they won’t face more than token punishment.

At some point, the world’s dollar-based system could start to implode, similar to 2008 but on a much larger scale. The forces in gold’s favour then would be so strong that manipulation would be futile. Such pressures are starting to build as a result of the Russia/Ukraine war.

Up for discussion: Russia’s triumph in Ukraine is inevitable; Ukraine shelling nuclear plant; China and the art of war; all warfare is based on deception; and an apocalyptic scenario for the West.

Leave a Reply

Your email address will not be published. Required fields are marked *