Watch for Retaliation [The Daily Reckoning] October 03, 2022 [WEBSITE]( | [UNSUBSCRIBE]( How Weâll Know Who Bombed the Pipelines - Why didn’t the stock market crash when the Nord Stream pipelines were blown up?...
- If John Brennan says the Russians did it, that’s solid evidence that Russia didn’t do it…
- It’s time to stop digging… [New Message From Jim Rickards]( [This Simple Chart]( [Please take a moment and go here now to see my new clip.]( It’s short. Only about 2 minutes or so. But it’s about a fast-moving situation that could hand investors the chance to double-their-money in a week – even during this market selloff. [The proof will SHOCK you]( But you need to see this new clip now, before it gets pulled down Wednesday at midnight. [So please, go here now to watch this urgent 2-minute clip.]( [LEARN MORE]( Portsmouth, New Hampshire
October 3, 2022 [Jim Rickards] JIM
RICKARDS Dear Reader, Markets in the U.S. barely noticed when someone engaged in sabotage and blew holes in both the Nord Stream 1 and Nord Stream 2 pipelines last week. That’s a mistake. This is one of the most important geopolitical and economic developments in recent years and it presages even more dangers as the war in Ukraine drags on. As you likely know, Nord Stream 1 and 2 are major natural gas pipelines that run under the Baltic Sea from Russia to Germany. Nord Stream 1 has been operating for some years. Nord Stream 2 is completed and potentially operational but has never been put into operation. Each pipeline system has two pipelines. Both of the Nord Stream 1 pipes were damaged. Only one of the Nord Stream 2 pipes was damaged. This leaves one of the four pipes available for deliveries if the parties agree. At the time of the leaks, nearby seismologists in Denmark and Sweden reported large blasts in the vicinity of the pipelines. They have ruled out earthquakes and other natural explanations, so deliberate explosions to put holes in the pipelines is a reasonable inference. Did Someone Use Underwater Unmanned Vehicles? There’s some speculation that the blasts were caused by unexploded ammunition that was dumped in the Baltic after World War II. Activity in the vicinity of the pipelines accidentally detonated the munitions. But that’s highly unlikely. The explosions, which were several miles apart, happened around the same time. What are the odds that separate explosions that far apart would somehow occur by accident? Extremely low. A likely method involves the use of an unmanned underwater vehicle (UUV), in effect an underwater drone armed with explosives. There are few armed forces capable of using this technology. The U.S., Russia and the U.K. Royal Navy are among the few who could do this. The U.K. (and Poland and Germany) are NATO allies of the U.S. and unlikely to launch the attack without coordinating with the U.S. So as a practical matter, the U.S. and Russia are the prime suspects. I don't know who blew up the Nord Stream pipelines. But I do know that when solving a mystery, you look for motives. [Strange 2022 Prophecy Rapidly Coming True]( [This Simple Chart]( America’s #1 Futurist George Gilder is telling American’s to “brace yourself” for the coming $16.8 trillion revolution. This same revolution could redefine millions of jobs and radically transform the way just about every major corporation does business. It could even change the way you get paid, save and invest for retirement. [And, says George, it could make you exceedingly rich — click here to see why.]( [LEARN MORE]( Who Benefits? Russia has none; they can turn off the gas when they want and turn it back on. That gives them leverage. Why would they want to give up the leverage by sabotaging the pipeline? That said, one pipeline is still operational and the damage in the others can probably be repaired in six months or less. So Russia could just be making a show of force with minimal long-term costs. Former CIA Director John Brennan said he believes “Russia is certainly the most likely suspect.” But you need to consider the source. Brennan helped perpetrate the lie that Russia interfered in the 2016 election. He also said that Hunter Biden’s “laptop from hell” that would have damaged Joe Biden’s candidacy prior to the 2020 election was probably Russian disinformation. Of course it was no such thing. It was 100% real. So when Brennan says Russia blew up the pipelines, that's pretty solid evidence that Russia didn't do it. U.S. Motives On the other hand, the U.S. has plenty of motives. The U.S. can blame Putin, escalate the war in Ukraine, advance the ideological green scam and make the EU even more dependent on U.S. energy sources. We may know who the perpetrator is if we see retaliation. If Polish infrastructure is hit, it was Poland. Same for Russia, the U.S., the U.K. Whomever gets whacked next may well be the one who hit the pipeline. Political mysteries aside, the economic impact is undeniable. Europe was already facing extreme energy shortages in the winter months ahead and now the potential energy delivery channels are even fewer. This will contribute to an economic scenario that’s the worst of both worlds — higher energy prices and economic depression at the same time. [Urgent Note From Jim Rickards: âYouâre Running Out Of Time!â]( [Your exclusive “Pro level” upgrade to Strategic Intelligence is ready to be claimed.]( This is your chance to claim 3 exciting new benefits along with a whole new level of service. Hurry… you only have until the timer hits 0 to act. [This Simple Chart]( After the timer runs out, you’ll forfeit your chance to upgrade… and you may miss out. Please don’t waste any time. Just click below to see how to confirm your upgrade: [>> YES, I’d like to claim my upgrade.]( [LEARN MORE]( Meanwhile, the U.S., EU and other allies such as Japan, Canada and Australia have been aiming financial and economic sanctions at Russia since the start of the war. The sanctions have adhered to the following broad terms: Russian banks, certain officials, oligarchs and the Central Bank of Russia have all been banned from Western bank accounts and the SWIFT money transfer message system. High-tech exports to Russia have been banned. New investment in Russia is prohibited. Russian exports including strategic metals, oil, natural gas, grain and other commodities have been banned; although important exceptions have been applied to Russian exports of natural gas to Europe, which continue. Many other sanctions have been imposed. On the whole, this is the most extreme set of economic sanctions ever imposed on a single country outside of war (the members of the anti-Russian coalition are not technically at war with Russia right now although they are supplying billions of dollars of cash, food and weapons to Ukraine). Still, a funny thing has happened. Stop Digging The sanctions have had little impact on Russia. The Russian ruble is actually stronger today than when the war began. Russia is making more money than ever in hard currency for its exports of oil and natural gas — over $21 billion per month. Russia has easily found energy customers in India and China to replace lost customers in the West. The Russian economy is muddling through while coalition economies are in or near recession, are suffering high unemployment, spot energy shortages and food and gas price inflation and may soon suffer severe recessions and much higher unemployment. What to do? There’s an old saying that when you’re stuck in a hole the best approach is to stop digging. Well, the EU has decided to dig harder with new sanctions including a Rubik’s Cube idea for third-party price caps on Russian energy enforced by a secondary boycott of those who do not participate in the cap scheme. This will be the eighth round of sanctions imposed by the EU on Russia. If you’ve already imposed seven rounds and they all failed, you might want to stop short on the eighth. But the EU is moving full-speed ahead. As in the past, the EU economies will be the big losers. The best approach would be to end the war and get back to business. That seems to be the furthest thing from EU leaders’ minds — or the Biden administration’s. Regards, [James Altucher] Jim Rickards
for The Daily Reckoning P.S. In my 2011 book Currency Wars, I warned that the U.S. was engaged in a special type of economic war. I said that these wars would: Degenerate into sequential bouts of inflation, recession, retaliation and actual violence as the scramble for resources leads to invasion and war. The historical precedents are sobering… Some version of the worst-case scenario is almost inevitable. Now with Putin invading Ukraine, rising tensions with China, inflation, recession, supply chain issues and the potential for greater violence breaking out all over the world… I’m afraid some of my worst fears are coming true. [That’s why I recorded this short video message.]( I want to help you prepare for what I fear is coming next. Because if history is any indicator, there could be real trouble ahead. [Click here to view my urgent video message.]( Thank you for reading The Daily Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [Brian Maher] [James G. Rickards]( is the editor of Strategic Intelligence. He is an American lawyer, economist, and investment banker with 35 years of experience working in capital markets on Wall Street. He is the author of The New York Times bestsellers Currency Wars and The Death of Money. [Paradigm]( ☰ ⊗
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