muses of the moment

April 30, 2014

“Cold war”

groovygirl has been pre-occupied with another investment activity. See previous blog post for the details. Groovygirl will still continue to post about economics, gold and silver, and global debt.

groovygirl has been paying very close attention to the new Cold War with Russia and the crisis in Ukraine.

Click here.

Russia is making friends in the mist of this crisis.

Groovygirl is very concerned about the global economic consequences from this situation regardless of the end result in Ukraine. At the very least, this will speed up the economic alliances and economic separation of the BRICs. The direct trading of currency, energy, and commodities that started in 2010 is accelerating. At the worst, all global trade, which has helped and driven all growth (including the US) in the last 20 years will slow dramatically or stop all together. Iraq is now back in Iran’s influence, Russia and China are in direct currency trading and strengthening every day. GG has heard some commentators say that Russia doesn’t have the money, technology, or labor to expand its commodity reserves. But China does. In fact, China is doing that very thing already in Africa. India may be on the fence, but they know their geographical location and they have billions to feed. They have to be on the fence.

To sum up: too much is global debt will slow trade and change currency power. The unanswered question is: will political conflicts accelerate us all toward that decline.

 

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