On June 23rd, our Max Keiser (@keiserreport) has put forward a bold thesis that Donald Trump is trying to cut US military spending so the US would be less exposed to the skyrocketing interest rates that would become unavoidable when China opts to dump US Treasury bonds. And whenever Max Keiser comes out with a bold thesis, we can learn a lot…
You probably have seen a famous selling the brick prank. It has a few variations, with the usual one when a thug is forcing some skinny guy to empty his pockets for a brick, or face with a serious rearrangement of his personal description. Now you can watch the toughest version of this prank, at the highest political level!
Trump has a problem: how to cut US military spending, and not to endanger overblown military-industrial complex? He has to find new funds to feed them, or force “allies” to break up NATO and cut expenses by promising a new expensive fairy-tale, fully under US control, called “space forces”.
The debt ratio of the G7 group has reached such a level that collective salvation is not possible any more. Already seen at the last Canadian meeting. So, someone will have to pay for the “Make America Great Again” politics. Who can that be? Who will buy the brick? Well, since the Russia and China won’t, that has to be “allies”. Honeymoon is over, it’s slapping time. The US President has openly hit out at other member states for not paying up when it comes to defence spending. “You are affraid of Russia? So pay US, now!”
But that line of “brick selling” probably won’t be so effective, because…
Claudio Grass, an independent precious metals advisor and Mises Ambassador, has recently revealed the certain sign of geopolitical power shift from West to East, with the end of US dominance. It is the recent repatriation of gold from the United States. Germany, Turkey, Netherlands, France even earlier, have been moving the bullions home. Since the end of the Cold War, countries don’t perceive Russia as a threat anymore. And that’s the problem. If they do not see a “Russian threat”, EU countries won’t have need for an expensive and ineffective NATO.
On Wednesday Trump criticized bloc members that approved the construction of the Nord Stream 2 gas pipeline from Russia to Europe, and said it’s unacceptable that Berlin is paying billions of dollars to Moscow instead of its NATO dues, which protect it from Russia. Openly calling Germany “a hostage of Russia”, Trump is trying to impose much more expensive US LNG to the EU, making its production uncompetitive at the global market. That’s the second line of “brick selling”. Full Video
So, what EU can do? Breakup is guaranteed one way or another. US can cut spendings on NATO if EU refuses to pay, but then it will have “to face with a serious rearrangement of its ‘personal’ description” — remember?
The coming events could easily became deadly interesting…
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