I’m going to discuss some other things that investors need to keep in mind due to the incredibly stupid sanctions imposed on Russia in an attempt by the US to destroy a nuclear armed country. Have I ever mentioned just how insane that idea is? Why would anyone in their right mind try to eliminate a nuclear-armed country?
Before the attack on Ukraine the madness of shutting down our existing energy system before replacing it had doubled the price of gasoline in the US. Because fertilizer is so energy intensive, farmers were facing a critical economic future. It was impossible to be able to afford the inputs and still make a profit in farming. Then Putin responded to the constant bombing of Donbass and threats from Ukraine to go nuclear. He stated his demands clearly. Ukraine and the US proved tone deaf and he invaded.
I wrote one of the most important pieces I have ever written on the 1st of March predicting economic suicide on the part of the EU and the US as a result of the sanctions.
There is a new star in the world financial constellation named Zoltan Pozsar. Mark the name down and any time you see it, read what he has to say. He is brilliant and works for Credit Suisse. He also spoke about the greatest shift in economic decision making in history as I did. I beat him to the punch by one day. Perhaps he reads me.
We had a problem with prices out of control as a result of the Covid stupidity before this silly little war started by the US. Today we have a crisis that is being pretty much ignored because frankly few people realize how serious it is. I read that there are 800 million people needing food assistance daily. With an effective blockade on Ukraine ports by Russia, the farmers that could afford fuel and fertilizer won’t be able to ship their crops this year.
Thirty-five African countries depend on food supplies from the Black Sea region. They faced starvation before the war due to inflation of energy prices and a lack of affordable food. Many of the 800 million are simply going to starve to death this year. In the US when oil prices reach $200 a barrel as they are predicted to do and you are paying $10 a gallon for gas, you may want to consider the millions of people around the world starving because of the sanctions. Dozens of governments are going to be overthrown. There will be mass economic chaos.
So investors need to consider global politics and energy/food related issues. Countries are going to fall and that easily could extend to the US itself as a direct result of their own suicidal decisions.
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