Let’s revel in our good fortune as oil prices continue to plunge. Oil prices have dipped under $50. If we are spending less for fuel, we have more to spend on other things such as eating out, shopping and vacations. On the surface, it looks the American consumer finally got a break.
The Trojan Horse of Low Oil Prices
Before we pop the Champagne, we should consider the fact that someone in a position of authority thinks that the present economic situation could lead to economic devastation inside the United States and the proof for this is readily apparent. The Army Times publication states, that our Army has been concentrating on fighting in ‘megacities’ of 20 million or more people against “criminal and extremist groups” who can “influence the lives of the population while undermining the authority of the state.” I take the Army’s quote to mean that hungry, desperate people are going to be looking for ways to satisfy their basic means and these people must be stopped. And who would be the terrorists that they are practicing against? The new terrorists, according to the DHS, are Christians, Constitutionalists, and in particular, Second Amendment supporters.
Low Oil Prices Equals Economic Death by Deflation
We live in a country where the three thousand mile salad is common place. Your grocery stores and large retail storea receive several deliveries per day in an economic practice known as “Just In Time Delivery”. Nearly everything you eat and wear is shipped. The middle man concept (i.e. the transporter of goods) forms the backbone of our service economy. However, if the price oil goes to low, the economy will slow down to the point, where at first, spot shortages will rule the day. Eventually, very little will be shipped because it does not make sense to do so due to the deflationary impact on prices. Low oil prices, if they continue, will wreak havoc on the economy. One can prove to themselves that most “experts” agree that the economy is vulnerable to oil prices which may reach $40 dollars per barrel by “Googling” the topic.
We Have Been Down This Road Before
In the lead up to the greatest bank heist in history, the financial crisis of 2008, the price of oil plunged in a manner reminiscent of today’s trend curve. Additionally, the new prices for industrial commodities went through a devastating deflation and the U.S. dollar soared, like a race car, in comparison to other currencies. History is repeating itself and history clearly shows that unless we reverse our course, our economic fate is sealed. If the trend of low plunging oil prices continues, we will have two choices, bailout “the too-big-to-fail” Wall Street firms or let everything come crashing down like it did in Iceland.
In Iceland, they weathered the storm after jailing the bankers responsible for destroying the Icelandic economy. Iceland is economically healthier today than ever before. However, I am not sure letting nature take its course on Wall Street, would work like it did in Iceland. Iceland is a country of 400,000 people with few international entanglements. The United States has 315 million people and has a global economy.
I have been reading the projections out of Wall Street and they exhibiting sure signs of cognitive dissonance as they proclaim that everything is fine. And yet somehow many financial analysts are still convinced that things will be different, today, than they were in 2008. I agree. The Financial Crash of 2015, will make 2008 look like a picnic in comparison.
The Real Reason Behind the 2015 Crash
The media would have you believe that the sole reason oil prices are down is because supplies are up and demand is down. There is no doubt that these two economic conditions exist in combination with each other. However, there is the reason the American people are told, through the corporate controlled media, and there is the real, more pressing reason.
Over the past six weeks, two of my military sources have told me to watch oil prices. Both sources stated that oil prices could become the fulcrum for economic collapse, martial law and World War III which would result as a result of the desperation of a failed economy.
Russia and the other BRICS are struggling as they having to reach into their reserve cash, gold and oil to survive these low oil prices. My sources also tell me that Russia needs $100 dollar a barrel oil to prosper. The BRICS have been successful in undermining the use of the Petrodollar in places like Iran and Venezuela. The Petrodollar is on the ropes. However, with these low oil prices, the worm has turned and the major reason that Russia and her allies are under an economic attack is due to the Ukrainian situation. In 2013, I wrote several articles detailing how Ukraine was pivotal in Putin’s desire to rebuild the Soviet Union empire because 60% of Russian gas flowing into Europe, first flows through Ukraine. Conversely, the Western banking establishment wants Ukraine to join the European Union. and, as such, control the price and flow of gas. Both sides are willing to sponsor a civil war in Ukraine and risk World War III. Putin has effectively stalemated the West and the West has retaliated with low oil prices.
The practice of low oil prices has devastated the BRICS. The question remains, who will blink first? How far into his reserves will Putin go? How far will the Western bankers allow oil to fall and for how long? Are the bankers willing to devastate the American economy in order to break the BRICS opposition to the Petrodollar as well as the ultimate control over Russian gas going into Ukraine? Predicting dates is a fool’s errand. However, if events continue in the present direction, we could witness an economic collapse that will come like a thief in the night, unparalleled civil unrest and movement down the road towards World War III. In short, low oil prices could indeed lead to World War III.
Dave Hodges is the Editor and Host of The Common Sense Show.