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Mark's Market Blog

#431 9-4-17: Creeping closer to war

By Mark Lawrence

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N.Korea apparently had a successful test of a hydrogen bomb, and is apparently days away from testing an ICBM that could hit LA with it. Tomorrow we get to see how the markets react. Right now we're close to all-time highs. There's not much to say about the economy: the various central banks continue to fire-hose money, the various economies continue to slide slowly into recession.


S&P 500 March 10 2017 to September 1 2017

A good read on the breakdown of American culture.

ALL EUROPEAN LIFE DIED IN AUSCHWITZ

By Sebastian Vilar Rodrigez, January 2008

"I walked down the street in Barcelona and suddenly discovered a terrible truth - Europe died in Auschwitz. We killed six million Jews and replaced them with 20 million Muslims. In Auschwitz we burned a culture, thought, creativity, talent. We destroyed the chosen people, truly chosen, because they produced great and wonderful people who changed the world.

The contribution of this people is felt in all areas of life: science, art, international trade, and above all, as the conscience of the world. These are the people we burned.

And under the pretense of tolerance and because we wanted to prove to ourselves that we were cured of the disease of racism, we opened our gates to 20 million Muslims who brought us stupidity and ignorance, religious extremism and lack of tolerance, crime and poverty, due to an unwillingness to work and support their families with pride.

They have blown up our trains and turned our beautiful Spanish cities into the third world, drowning in filth and crime. Shut up in the apartments they receive free from the government they plan the murder and destruction of their naive hosts.

And thus, in our misery, we have exchanged culture for fanatical hatred, creative skill for destructive skill, intelligence for backwardness and superstition. We have exchanged the pursuit of peace of the Jews of Europe and their talent for a better future for their children, their determined clinging to life because life is holy, for those who pursue death, for people consumed by the desire for death for themselves and others, for our children and theirs.

What a terrible mistake was made by miserable Europe.

A lot of Americans have become so insulated from reality that they imagine America can suffer defeat without any inconvenience to themselves. Recently, the UK debated whether to remove The Holocaust from its school curriculum because it 'offends' the Muslim population which claims it never occurred. It is not removed as yet. However, this is a frightening portent of the fear that is gripping the world and how easily each country is giving in to it. How many years will it be before the attack on the ‘World Trade Center’ 'NEVER HAPPENED' because it offends some Muslim in the United States?

Texas got hit by a hurricane which produced a 1000 year flood. Perhaps a thousand cars were destroyed on dealer's lots; GM and Ford are quietly celebrating. Arkema announced that their Houston chemical plant would explode, and right on schedule it did. They make peroxides and ammonia there. You may be thinking, "Hair die and tub cleaner, what's the big deal?" Yah, no. Think "rocket fuel." Why is it going to blow up? 'Cause flooding knocked out the power in the area and the chemicals have to be refrigerated. But no prob, they have backup diesel generators, right? Yah, but they put the diesel generators on the 1st floor, so they flooded and died. This is exactly what brought down Fukushima five years ago. Apparently these people don't read the news. I mean, you live in a flood zone in an area where big hurricanes happen every year, you make serious explosives, but who would ever think maybe the diesel backup generators should be lifted, right?

Another hurricane is scheduled to hit Miami in the next few hours. It's that time of year.

Trump, who campaigned on getting us out of Afghanistan, is sending in several thousand more troops in an open-ended commitment. What's up? This is most certainly not about "nation building," no one is stupid enough to think the Afghanis will suddenly become democrats. It's not about cheap opium for the US and European drug companies, that can be guaranteed with only a few hundred marines. And it's certainly not about a couple hundred unwashed "terrorists" living in caves with their AK-47s.

This is about China. China is busy working on a train that goes directly from China to Pakistan. From there they would turn the tracks west into Afghanistan and Turkey then Europe. We're blocking the path. This is about containment of China. They're going to live behind a US built military wall until their economy collapses under the weight of their non-performing loans and ghost cities and airports. This is what changed Trump's mind: a map, a power-point demonstration showing that the Chinese would push us out of Europe in 15 years if they get any kind of treaty with Afghanistan. And Afghanistan is a complete mess: they would welcome Chinese investment with open arms.

What happens when China collapses? A chinese economic collapse would likely lead to revolution, and no one knows this better than the chinese revolutionaries who run the government. They will need a distraction, a big one, one that happens fast and hard. In short, war. Expect it. War with India. "Limited" naval war in the S.China sea. War with Japan over the disputed islands. And if those little actions don't suffice, a bigger war with, say, us.

The norks apparently just successfully detonated a hydrogen bomb, apparently (very) roughly in the 100 kiloton region, about 10 times the power of the Hiroshima bomb. They showed what they claim to be a hydrogen bomb that can fit in a missile, and just so's everyone got it they released a picture of Kim and the porta-nuke that had a diagram of the physics package construction on the wall behind them. It was an accurate rendition of one way to build these things.

It's widely believed they're preparing to shoot off a test ICBM in the next 5-10 days that could carry a nuke to LA.

Of course N.Korea wants to put more and more pressure on S.Korea until they break from the US, the south fearing we'll attack the north and they'll lose 10 million+ people and their capital city of Seoul. The Norks dream scenario would be if the s.koreans expelled the US military.

The S.Koreans invited the US to keep an aircraft carrier and a couple nuke submarines in close proximity, and announced more missiles and more military exercises. The new president of S.Korea was elected on a promise to negotiate with the north, not to attack, but he's turning quickly away from that view. S.korea just practiced a mock invasion meant to decapitate the norks government.

Nikki Haley, our UN ambassador, said, "North Korea Is Begging For War. The Time For Half-Measures Is Over."

Japan is making plans to evacuate their 60,000 citizens who are currently in S.Korea. They're already practicing drills for a post nuclear attack. On current trends, Japan will be a nuclear power by the end of next year. They know how to do this stuff, it would take them about 90 days. They just need to decide they want to.

Trump says China is not doing their part and suggests that until they do no chinese imports will be allowed in the US. Some in Washington are calling for a blockade of the norks, cutting off all oil and all trade. China and Russia say they will veto this, indicating quite clearly they're perfectly satisfied to see Kim with an EMP bomb that could all but completely destroy the US power grid, most likely leading to 200 million plus US deaths. By the way, it would cost about $20 billion to harden our power grid against EMPs, but no one feels like spending the money. If you die, remember you died because they wouldn't spend the cost of one aircraft carrier to protect our entire way of life.

We keep stepping closer and closer to war. Do you have water, rice, beans on stock? A solar oven? Helpful hint: a person requires about a gallon of water a day and about 1 pound of rice and/or beans. A 50 pound sack of rice is 50 days for one person. The food is a bit boring, but your great-great-great grandparents lived on less and worse. You need to be prepared to make your own potable water, there's simply no way a typical city dweller can store a couple thousand gallons of water. Think micron filters or solar stills. The micron filters are good against organics but useless against radiation. The solar stills are good against both. I think I'm going to start making and selling solar stills. I see a great opportunity there.

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