So much is happening behind the scenes it’s mindboggling. This past week we of course ended with “deal or no deal” over Greece. The “deal” the markets were hoping for really was no deal at all, the markets were only hoping for more time and ONLY more time. You see, Greece is broke. They only have enough money for about another week, they don’t even have enough to make their early March debt payment. The only possible “deal” from here on is to postpone reality. Greece cannot be allowed to make any deal other than one that puts THE deal out into the future. They cannot accept more “aid” because the markets will see through this. They also cannot be allowed to exit because this would then be the thread which unravels the Eurozone. The only deal acceptable to the markets will be one where THE deal is not “dealt with”.
Friday afternoon this very scenario was announced and of course the equity markets short squeezed higher in response. A bit prematurely in my estimation because the newly elected Greek parliament will need to ratify any agreement. A ratification will be in direct conflict with the election results of last month, what do you suppose the populace might do? In my opinion, the Greek people are about to explode onto the streets no matter what deal is arranged and agreed to. Broke is broke and no deal and no amount of newly borrowed money will fix this. As my title suggested, I believe only something from “behind the scenes” will fix their problem.
The “fix” itself may end up being a geopolitical event that turns today’s perverted world on its head. In my opinion, the very best fix for Greece is obvious and I believe is probably already in the works. Before getting to this, it is important to understand how “gangs” are broken up. “Gangs” can be broken in two ways. You can either confront the leader and emerge victorious or, you can pick away at the weak sisters one by one. Greece is obviously a weak sister but one very strategically located geographically and politically. Greece is also a natural “bridge” from the Russia and the Middle East to Europe. It is also part of the “old silk road” to China and will be part of trade in the new silk road.
It is my belief that negotiations have been going on behind the scenes between Greece and the Sino-Russian alliance. Would it not make sense for Russia and China to try to woo Greece? Greece could be offered a pipeline deal. This would put people to work and Greece would actually receive an income royalty flow. From a financial standpoint, this is the very best avenue for Greece because of the income aspect, they will actually get something rather than owe more. For Russia and China not to be offering Greece a deal would be plain dumb in my estimation. Think about it, if Russia does build a pipeline through Turkey, “someone” has to build a pipeline through Greece. Why wouldn’t Russia want to be “the good guy” and to their own benefit?
Additionally, think about the benefits in relation to the costs in Russia and China “picking off” Greece? In one single and inexpensive deal, they pull the thread on NATO and the Eurozone simultaneously. This would obviously be problematic for the Eurozone financially as debt, derivatives, banks and central banks are all wobbled. This would then expose all of the West including the U.S.. The U.S., should Greece turn to Eastern partners, will be seen as powerless! So you see, the catch 22 is this, no real deal can be done by the West because Greece has already been bankrupted. They cannot be allowed to default, they cannot be forced to take on more debt AND they cannot be allowed to do what is in their own best interest, form a new partnership Eastward. The “offers” behind the scenes must truly be unbelievable!
One thing I believe is being totally missed here is the relations between Germany and the U.S.. What must Germany and Angela Merkel be thinking? After she was spied on and hearing Victoria Nuland ‘s comment of “screw them”, how strong are the remaining bonds? Wouldn’t it be easier …more profitable ,,,not to mention “warmer” if Germany were to pivot toward Russia and thus the Chinese? They obviously know our credit line is nearly completely used up, doing business with Russia and the deep pocketed China only makes sense. Any move like this will split the Euro yes, but there will be a point in time where nations will do what is best for them. Moving away from hegemon and moving toward free commerce makes sense, will Germany remain silent as Greece does what is best for them? A move Eastward may even be safer for Germany as she watches NATO hardware being moved into Ukraine. Would it benefit Germany to aid in the fracture of NATO? I think yes but time will tell.
Elsewhere behind the scenes, Ukraine is a basket case. The cease fire never was and the U.S. began shipping hardware including “tank busting” planes. Ukranian troops dropped their arms and folded by the hundreds and it looks like pro Russian forces will soon, probably this week attain two goals. They will more than likely control a corridor all the way from their own border to Crimea. More importantly, they will probably have proof, either dead or alive of Western, non Ukranian boots on the ground. This is important because of the rhetoric war. Mr. Putin will be able to point at direct proof showing possibly even U.S. mercenaries as being part of the fight. This will be a very ugly back eye for Western propaganda(ists). All the while, the U.S. response is …more sanctions See NYT
Now for the stuff behind the scenes that has gotten almost no media attention whatsoever. Individually, many of these could be huge on their own, collectively, could they somehow be connected? What is really up with Benjamin Netanyahu’s visit to Congress? Is he trying to garner support versus Iran, or Syria? President Obama is refusing to meet with him, how does this look? Never mind Mr. Obama claiming that U.S. presidents do not meet with ”candidates”, why would Mr. Netanyahu not have cancelled his trip before it was even announced? Wouldn’t he have been told through back channels, “don’t come”? But he is coming anyway? Does this not show a split or at least “weakness” in our alliance?
Another area is the west coast port problems. tankers are lining up day by day with nothing being offloaded. Is this really because of the unions? Or is it because of the port owners and operators? What will this do to our economy and distribution chain which has run so long on “just in time” inventories? Are the Chinese somehow behind this? Is this a way to ”stealth” pressure our economy and financial system? They are actually scrapping some of their tankers, do they know something we don’t know…yet? Other than alternative media, this has gotten virtually zero coverage, why? Is this not huge news on its own?
A very strange one this past week was seeing Langley on lockdown. What is up with this? I don’t even care what the official story may or may not be, because of the source. How is it they were locked down? Has this ever happened before? Were they after one guy? Re there “factions” involved? Infighting? Who knows, but this is very strange indeed.
Then, there was 60 the nation “terrorist summit” in Washington, I could not find any U.S. coverage of this other than this link. What was the outcome? They apparently discussed ISIL among other terrorist groups. Who is really funding them? It is believed they were a creation of the CIA now run amok. And what about 21 Christians being beheaded? How much media coverage did this get? Or is it not newsworthy or something our president should condemn.Speaking of the president, his immigration “stroke of the pen” was shot down in court, has he now been rendered completely lame? Will he now be prevented from doing further damage?
Here is how I see all of this, the pot is boiling and the warring factions are making stands, everywhere. When I say “warring factions”, I am talking about everything from hawks and doves in the military and in the financial markets to as grand as the East versus the West. So many people have been conditioned that the can will always get kicked down the road and nothing bad will ever be allowed to happen. I disagree. There are just too many flash points in multiple areas for this to continue. Markets have priced in nothing bad from here to as far as the eye can see. Compensation for “risk” does not exist anywhere.
I stick to my guns and warn you as sternly as possible, the markets are about to “gap”. Something is going to break very soon and when it does, we will go into a complete lockdown of everything. You will not be able to alter anything or any position you own. You will not be able to “trade around” what is coming.
Whatever you own going into this is all you will own. You will not be allowed to “change” investments as very likely the banking system itself goes on a holiday.
It is what’s going on behind the scenes which is oh so important, but, we cannot be privy to it. We can however put enough data points together to see that financial, economic and currency “war” has already begun. Do not wait until the media announces this, by then it will be far too late even if timely and reported the following day!