A Watery Grave

The US Empire sues for peace with… the Houthis. April 05, 2024 [WEBSITE]( | [UNSUBSCRIBE]( A Watery Grave SEAN RING Dear Reader, I haven’t been this excited about a motley crew from a more ancient part of the world since the Somali Pirates ran roughshod over The World’s Greatest Navy™. But it seems the Houthis have made Uncle Sam cry, “UNCLE!” As I write this, I’m trying to stifle my laughter because this didn’t appear on my 2024 Bingo card. Who’d have thought it? A bunch - literally, a bunch - of the poorest, most downtrodden people on Earth have forced the almighty US of A to the bargaining table. The United States Military simply can’t cope with the drones and rockets of the Houthis, lately of Yemen, a country that barely exists. And yet, in the wake of the Afghanistan and Ukraine failures, it’s the Houthis that have brought the US to what some have called its “Suez Moment.” Let’s get a grip on the unraveling situation in the Middle East and what’s at stake. The Suez Crisis: A Review Here's a quick summary of the original Suez Crisis to ensure we’re all on the same page. The Suez Crisis was a military invasion of Egypt by Israel, the United Kingdom, and France in 1956. The crisis began on July 26, when Egyptian President Gamal Abdel Nasser nationalized the Suez Canal Company, which French and British interests had owned. The nationalization was a response to the American and British decision not to finance Egypt's construction of the Aswan High Dam due to Egypt's growing ties with communist Czechoslovakia and the Soviet Union. Nasser's decision to nationalize the canal led to diplomatic efforts to settle the crisis. But when these failed, Britain and France secretly prepared military action to regain control of the canal and, if possible, to depose Nasser. They found an eager ally in Israel, whose hostility toward Egypt grew with Nasser's blockage of the Straits of Tiran and the numerous raids by Egyptian-supported commandos into Israel during 1955. The invasion began on October 29, when Israeli forces attacked across Egypt's Sinai Peninsula, advancing to within 10 miles of the Suez Canal. Under the pretext of protecting the canal from the two belligerents, British and French forces landed their troops a few days later. The invasion was met with international condemnation. Under intense pressure from the United States, troops were rapidly withdrawn and replaced by a United Nations (UN) force. In essence, President Eisenhower opposed the invasion and formally ended what was left of the British Empire. The French also saw their regional pretensions go up in smoke. This hastened the pace of European decolonization in the region and led to the resignation of British Prime Minister Anthony Eden in January 1957. Nasser, by contrast, not only survived the ordeal but secured a new level of prestige among Arab peoples as a leader who had defied European colonial powers. Unfortunately, this crisis drew the United States toward enduring involvement in the Middle East, leading to the creation of the Eisenhower Doctrine in early 1957. This doctrine pledged to distribute economic and military aid and, if necessary, use military force to contain communism in the Middle East. [Regarding next Monday.]( This is an URGENT Customer Service Announcement that our records show you are not on the alert list for this upcoming Monday. And you know it’s serious when our Customer Service Director takes time off the phone to record [this message on camera.]( Please stop what you’re doing… And watch [this urgent message about h]( to add your email address to Monday’s alert list]( [Click Here To Learn More]( The US Fancies a Chat With the Houthis Now, the US faces its own “Suez Crisis.” Let’s get up to speed via [Zero Hedge]( In a remarkable development and about-face, the Biden administration is effectively waving the white flag in the face of constant Houthi attacks on international shipping in the Red Sea, attacks which have also involved the direct targeting of US, UK, and Western warships. Since the attacks began last year to 'punish' Israel, and dozens of offensive US strikes on Houthi positions later, the Iran-backed group has pressed on undeterred, and the 'Operation Prosperity Guardian' coalition has no solution. Shipping through the vital waterway has collapsed, Suez fees have dried up for Egypt, and Israel's ports sit largely empty. But now the White House is mulling the removal of Yemen’s Ansarallah movement (the Houthis) from the US list of designated terrorist organizations should the Shia rebel group agree to halt its attacks. The current international headlines strongly point to the Houthis having 'won' in a direct months-long standoff with the most powerful military in the world. But here’s the real kick in the goolies: "We favor a diplomatic solution. We know that there is no military solution," said U.S. Special Envoy for Yemen Tim Lenderking. The US military has an $886 billion budget for 2024, and yet it can’t find a solution to the Houthis. What… the… hell? I read [the transcript](. Mr. Lenderking actually said that. Of course, I’d like to know what the hell they’re spending nearly a trillion dollars on if they can’t beat the Houthis. Failure After Failure The failures keep piling up. Potatohead Biden's first big mistake was the Afghanistan withdrawal, where the USG left $85 billion worth of military supplies on the ground. Things in Ukraine look worse by the day. If not for the West’s “charity” - or as I call it, “reckless spending” - Russia would’ve declared victory ages ago. And now, thanks to the Houthis, Western ships are getting attacked, Egypt’s revenue from the Suez Canal has collapsed, and Israel’s ports are empty. That leads us to the worst part. No One is Afraid of Either the US or Israel Anymore Both countries have hardly covered themselves in glory lately. As the US military-industrial complex is exposed as a paper tiger, Israel’s enemies are realizing that Israel is packed to the gills with poorly performing US weaponry. Since Israel decided, despite every diplomatic rule imaginable, to bomb Iran’s embassy in Damascus, all options are on the table. And Israel’s enemies, such as Syria, are just itching for Russia to get involved. I wonder if the [President thinks giving the Iranians their $6 billion in September 2023]( was such a good idea now. Israel has issued a heightened state of alert for its embassies around the world. Iran vows revenge for the Damascus bombing. Oil is now above $90 per barrel. On Thursday, the major American stock markets each lost over 1%. Wrap Up Yesterday’s Rude was a happy one. Gold and silver took off. The miners will follow. All was well. Today, we see some of the geopolitical reasons gold and silver rallied, and we know for sure why oil is taking off. War is now highly likely rather than just a chance event. Mistake after mistake after mistake will do that. The American Empire may not be dead yet. But America’s reputation is at the bottom of the Red Sea, in a watery grave. Have a great weekend! All the best, Sean Ring Editor, Rude Awakening X (formerly Twitter): [@seaniechaos]( Rate this email Like Dislike Thanks for rating this content! Looks like something went wrong. Please try to rate again. In Case You Missed It… Golden Silver SEAN RING It’s not just gold, but silver that’s broken out. As an investor, I’m as pleased as punch. But as someone who pays close attention to geopolitics, I’m terrified. Today, let’s concentrate on the markets because they’re as bright as can be. The Metals We’ve been talking about precious metals for so long that it’s nice to see—finally—a big move. Gold Gold finally - and forcefully - broke $2,300 yesterday. We’ll surely have some sort of consolidation again, as we did last month. But it looks like that will be above the current level. From [Kitco]( (bolds mine): In a historic move, gold futures surged past the $2300 mark for the first time in history. As of 4:30 PM EDT, the gold futures basis the most active June contract is currently at a record high of $2318.90. The June contract opened at $2301.70 and traded to an intraday high of $2319.70. The precious metal's rally showed no signs of slowing down, with the June 2024 contract currently fixed at $2319.10 after factoring in today’s gain of $37.30, or 1.63%, marking the seventh consecutive trading day of gains. This remarkable surge has been fueled by a combination of factors, chief among them being the growing expectations that central banks, including the Federal Reserve, are preparing to lower interest rates as inflation cools down. Chairman Jerome Powell, in his address to the Stanford Business, Government, and Society Forum, hinted at the possibility of rate cuts, stating that a lower interest rate would likely be appropriate "at some point this year" if the economy develops as expected. This statement heightened expectations for a Fed rate cut in June. In his remarks, Powell said, “We do not expect that it will be appropriate to lower our policy rate until we have greater confidence that inflation is moving sustainably down toward 2 percent. If the economy evolves broadly as we expect, most FOMC participants see it as likely to be appropriate to begin lowering the policy rate at some point this year.” Newmont (NEM) also broke out over the past week. The miners are finally joining the rest of the rally. Disclaimer: I’m long KGC. Kinross has been ripping since the beginning of March. Silver BANG! And silver bullets north of $27.00. But once we get above $30, things will get really exciting. Also, notice the positioning for silver: Credit: [Kitco]( Everyone is getting long. We may see a rally like in 2020 when silver went from about $11.50 to $29. First Majestic has had a blistering run this week. [First Majestic CEO Keith Neumeyer said]( “You wouldn't know it with NVIDIA going through $2 trillion, but talking more generally about the S&P, I think that's where all the money is, and I've said before, and I'll say it again, this to me is 2000 and 2001 all over again. When the Nasdaq hit 5,000 in March of 2000, and over the three-year period after that, it dropped 80 percent, and then gold lit up, the miners lit up, and we went into a 10-year bull market for the miners, which ended in 2011-2012. I think exactly the same thing's going to happen all over again." Silvercrest Metals has also had a big run since the beginning of March. [Urgent: Claim Your Copy Of This New Book From America’s #1 Retirement Expert!]( Forget everything you’ve ever been told about retirement. According to [this new book]( – written by America’s #1 retirement expert – you don’t have to wait until you’re 65+… and you don’t need millions of dollars. [The strategy you’ll find outlined inside this book]( is completely different… All you have to do is tap into the little-known income streams revealed inside this book… And you’ll learn exactly how you can generate almost effortless income every month… instantly, in some cases! [And today, for a limited only, you have the chance to claim a copy of this book for just $1. Click here now to claim your special book offer.]( [Click Here To Learn More]( Disclaimer: I own SILV. Copper Dr. Copper finally broke out of its sideways move in mid-March, though it has had a choppy ride since. Yesterday’s move was a big one. When we get candlesticks like that, the trend ought to continue in that direction for some time. And that venerable base metals mining stock, FCX, has broken out on the back of copper’s move. Energy I only want to touch on energy today to ensure you can see the difference between oil and natural gas. Oil has been breaking out bigly, as a former president might say. Natural gas has taken a long walk off a short pier. Oil The light, sweet stuff Texas produces so well is starting to skyrocket. Credit our options analyst, Alan Knuckman, who saw this months ago. After a nasty selloff at the start of February, WTI has recovered from $72 to $85. The next target is $97. But it could quickly get into the triple digits as our geopolitical situation deteriorates. Gasoline prices have increased due to higher oil prices and a deep bout of refinery maintenance, reducing gasoline production. Nat Gas The story for natty gas is entirely different. From its January peak to the February trough, natural gas was cut in half. And it still hasn’t recovered yet, nor does it look like it will do so anytime soon. Natural gas prices have fallen significantly due to weaker demand, strong supply, and record-high storage levels. From the demand side, the mild winter has also led to lower electricity bills, as natural gas is often used to generate electricity. The warmer weather has reduced the need for heating and natural gas consumption. As a result, natural gas storage levels are 11% above last year and about 16% above the five-year average. From a supply perspective, domestic production is near record levels, and the U.S. is the leading exporter of liquefied natural gas (LNG), accounting for about 10% of its production. This abundance of supply and diminished demand has kept prices low. Wrap Up Ah, bacon, eggs, freshly squeezed orange juice, and a fresh cup of coffee smell especially lovely on a day like today. Gold and silver have awakened from their slumbers. Think about the moves you’ve made and pat yourself on the back. We can worry about why prices are rocketing like this on another day. Have a great one! All the best, Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2024 Paradigm Press, LLC. 1001 Cathedral Street, Baltimore, MD 21201. 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