Jim Rickards is out with a new article that basically is a summary of many of the events and issues we are covering here on the blog. We will select a few quotes from the article and add a few comments at the bottom. Here is a link to the article.
Here are the selected quotes:
"The relationship between geopolitics and global finance has rarely been more densely connected and complex as it is today."
"The disintegration of Iraq is far from over. The situation will deteriorate further putting upward pressure on oil prices. "
"The war in Iraq has the potential to become a regional war. Turkey may be drawn in by the emergence of a Kurdish state in northern Iraq. Iran has already been drawn in to support al-Maliki. Syria and Iraq have effectively been partly merged because the border has been erased. Jordan is relatively weak and will be hurt by refugees and spillovers."
"Détente with Iran is a betrayal of Saudi Arabia. Since 1974, the United States dollar has been propped up by the original “petrodollar” deal whereby the United States acted as a guarantor of the security of the House of Saud in exchange for Saudi agreement to price oil in dollars. This requires countries to maintain dollar reserves in order to secure oil supplies whether they like the dollar or not."