A Scandal in Slovakia

These days in Europe, advocating peace gets you shot. May 17, 2024 [WEBSITE]( | [UNSUBSCRIBE]( A Scandal in Slovakia SEAN RING Dear Reader, These days in Europe, advocating peace gets you shot. A left-wing “activist” shot, but luckily didn’t kill, Slovakian Prime Minister Robert Fico. Two days ago, Slovakian Prime Minister Robert Fico survived an assassination attempt during a public event. He was shot four times by a lone gunman. The mainstream media identified the perpetrator as a “lone wolf” attacker in a politically motivated act. (I’ll get to that later.) Fico was critically injured and underwent a five-hour surgery performed by two teams of doctors. Despite the attempt to turn him into Swiss cheese, he has been stabilized and is now in serious but stable condition. The attack on Fico has been widely condemned as an attack on democracy, highlighting the tensions within Slovakian politics. For once, this is accurate. I’m thrilled they didn’t call it an attack on populism. The incident has shocked both the country and Europe, raising concerns about political violence and its implications for the region's stability. Slovakia? Who Cares? I’ve got two words for you: “Franz Ferdinand.” The assassination of Archduke Franz Ferdinand, heir to the Austro-Hungarian throne, happened on June 28, 1914, in Sarajevo. The event is widely recognized as the catalyst for World War I. Here are the key details: Franz Ferdinand was visiting Sarajevo with his wife, Sophie, Duchess of Hohenberg, to inspect imperial armed forces in Bosnia and Herzegovina, provinces annexed by Austria-Hungary in 1908, which had angered Serbian nationalists. Gavrilo Princip, a Bosnian Serb member of the nationalist group Black Hand, then shot the archduke and his wife. This group aimed to create a Greater Serbia by liberating South Slavs from Austro-Hungarian rule. Princip fired at them while they were traveling in an open car. The assassination was part of a broader conspiracy involving multiple members of the Black Hand. An earlier attempt on the archduke's life that day had failed when someone threw a bomb at his car but missed, injuring several bystanders instead. The assassination led to a diplomatic crisis known as the July Crisis. Austria-Hungary, with Germany's support, issued an ultimatum to Serbia. Serbia's response was deemed unsatisfactory, leading Austria-Hungary to declare war on Serbia. This set off a chain reaction of alliances being activated, leading to the outbreak of World War I. The Activated Chain of Alliances No, I don’t think the situations are the same. But no one, and I mean no one, saw a World War breaking out because an assassinated Archduke. No one thinks a World War is on tap now. And that’s what scares me. Of course, Fico has survived - thank heavens - but history rhymes. Let’s see what led to the war. It’s utterly ridiculous. When people say, “World War I was a mistake,” or “World War I never should’ve been fought,” here’s why. Following the assassination, Austria-Hungary, wanting to punish Serbia, received a "blank check" from Germany. This meant Germany promised unconditional support to Austria-Hungary, even if it meant going to war. This assurance emboldened Austria-Hungary to issue an ultimatum to Serbia on July 23, 1914. Serbia, supported by its Slavic ally, Russia, rejected the ultimatum, leading Austria-Hungary to declare war on Serbia on July 28, 1914. Russia, which viewed itself as the protector of Slavic nations and had its own strategic interests in the Balkans, began mobilizing its forces in defense of Serbia on July 30, 1914. Germany, viewing Russian mobilization as an act of war, declared war on Russia on August 1, 1914. Germany's Schlieffen Plan, a military strategy for a two-front war against France and Russia, required a swift defeat of France before turning east to Russia. Germany's war plan necessitated an invasion of France through Belgium, a neutral country. Germany declared war on France on August 3, 1914, and subsequently invaded Belgium on August 4, 1914. The invasion of Belgium brought the United Kingdom into the war due to its 1839 treaty obligations to defend Belgian neutrality. The UK declared war on Germany on August 4, 1914. Thus began World War I. Is that the stupidest thing you’ve ever read? It’s not like governments have gotten any smarter since then. To summarize, Austria-Hungary's declaration of war on Serbia led to declarations of war by Germany on Russia, Germany on France, and Britain on Germany. Utter lunacy. Now, back to Fico. [URGENT: $6 Biotech Stock Ready to Trade]( The biggest winner of the AI wealth window won’t be energy, financials, or even big tech… It will be the $12 TRILLION industry that is healthcare. And this tiny biotech stock could be at the top. [Click here now for the details.]( [Click Here To Learn More]( Why “They” Want Him Dead Slovak Prime Minister Robert Fico has taken a stance contrary to what European technocrats want on the Russia-Ukraine conflict, often aligning with pro-Russian sentiments. Fico is smart enough to know neither his country, his friend Viktor Orban’s country, nor the rest of Europe can long survive as a viable economic entity without cheap Russian gas to fuel the place. Germany’s rapid deindustrialization at the hands of its American masters is proof of this. This first chart is German industrial production. It’s fallen off a cliff. Credit: Capital Economics This next chart shows German industrial orders. Domestic orders have been down roughly 15% since 2015, and foreign orders have remained flat. Credit: Capital Economics Fico has labeled the conflict "frozen" and believes it cannot be resolved through military means. He opposes the supply of arms to Ukraine and ended Slovakia's military aid to Ukraine shortly after taking office in October 2023. This is the [UK Defense Intelligence Map of Ukraine from May 31, 2022]( This one is from April 23, 2023: And this is from May 10, 2024: I know I’m only eyeballing it, but Fico looks right to me. Fico has suggested that Ukraine should cede some of its territory to Russia as part of a compromise to end the war, which he views as the only realistic solution given the current circumstances. But land hasn’t changed hands via military force in Europe since the Second World War. So Brussels, the USG, and, I assume, BlackRock are utterly against this. Additionally, he is firmly against Ukraine joining NATO, arguing that such a move would escalate tensions and potentially lead to a bigger conflict. Fico has also echoed Russian narratives, questioning Ukraine's sovereignty and suggesting the United States heavily influences it. Credit: [Radio Free Europe]( These views have drawn significant criticism both domestically and internationally, particularly from Ukrainian officials and other European leaders who see them as undermining efforts to support Ukraine against Russian aggression. Oh, and he hates the WHO and its pinpricking program: Credit: [BGatesIsaPsycho]( (best X handle ever!) Of course, some in the media tried to justify it. Journalist Glenn Greenwald posted, "Listen to this Sky News report on the shooting of Robert Fico. Not only do they come close to justifying it because he opposes aid to Ukraine, but they also casually imply that he's being paid by the Kremlin. This casual accusation is so prevalent in the West, and toxic." The Sky News segment calls Fico "very pro-Russian" and says that it's "not surprising" that the attack took place. The Perp What is it with Leftists and assassinations, crowd shootings, and school shootings? Several local media reports from Slovakia report that the man who shot the Fico is a writer and activist named Juraj Cintula. Cintula is said to be part of the pro-West and socially liberal "Progressive Slovakia" party. Apparently, he’s just not happy with his government’s policies. Join the club, pal. And he’s married to a Ukrainian, allegedly. I’m sure that would have nothing to do with this. Wrap Up Now you’re up-to-date on the craziness that’s Europe. Let’s hope it doesn’t unravel like it did 110 years ago. That’s the last thing we need. 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… Silver, China… and Opium SEAN RING China has always valued silver for many reasons, perhaps even more than gold. So it’s no surprise that silver is taking off in Shanghai trading, moving the pricing power from West to East. In short, the Shanghai rally has pulled western silver futures contracts up to nearly $30 per ounce. As I sat in our weekly editorial meeting, good friend and Rude contributor Byron King reminded me of those facts. And then I thought about opium. No, it’s not a non sequitur. Silver and opium were intimately intertwined in the 19th century. The mere mention of the Opium Wars sends the average Chinese person into a patriotic rage. I remember dating a young Chinese woman when I first lived in Singapore. She loathed the British. I couldn’t believe it. I said, “You’re in your twenties. Why do you care anymore?” She explained how the Chinese taught history. It’s as much about emotions as facts. So, let’s examine why the Chinese love silver, why the British fed the Chinese opium, and where silver might be going today. The Chinese have valued silver highly throughout history for several economic, cultural, and practical reasons. The Historical Significance of Silver in China The Chinese have long held silver in high regard, and this preference is deeply rooted in economic, cultural, and practical factors that have shaped the nation’s history. Economic Factors During the Ming (1368–1644) and Qing (1644–1912) dynasties, silver became the cornerstone of China's economy. It served as the primary medium for large-scale transactions and tax payments, increasing its demand significantly. The Chinese government mandated that taxes be paid in silver, further solidifying its importance. From the 16th century onward, China's participation in global trade, particularly with the Spanish Empire, saw an influx of silver from the Americas via the Manila galleons. Chinese goods like silk and porcelain were highly prized in Europe, and silver was the preferred payment method. This international trade network further integrated silver into the Chinese economy. Silver's intrinsic value, as opposed to the more volatile and easily counterfeited paper money, made it a reliable store of wealth. It was universally accepted and less susceptible to inflation, providing economic stability. This reliability was crucial in a nation often experiencing political upheavals and regime changes. Cultural and Practical Factors In Chinese culture, silver symbolizes wealth, prosperity, and status. It was used as currency and in jewelry and household items, showcasing its significance. In Feng Shui, silver is believed to have protective and purifying qualities, further enhancing its cultural value. Silver’s durability and resistance to corrosion made it ideal for long-term storage and use in coins and artifacts. Chinese artisans skillfully crafted silver into intricate jewelry, ornate household items, and religious artifacts, reflecting wealth and artistic talent. Historical Context Before adopting silver widely, China experimented with various forms of money, including cowrie shells, bronze coins, and paper money. These systems often faced issues like counterfeiting and inflation. Transitioning to a silver-based monetary system provided a more stable and reliable economic framework, facilitating trade and taxation. The global silver trade, especially the flow of silver from the Americas to Asia, profoundly influenced China's economic policies. The country absorbed vast amounts of silver, integrating it deeply into its economy and shaping its monetary practices. Now, let’s take a closer look at why the British drugged the Chinese. The Opium Wars and the Role of Silver The Opium Wars were a series of conflicts between China and Western powers, primarily the British, during the mid-19th century. In the 18th and early 19th centuries, Britain had a significant trade imbalance with China. The British demand for Chinese goods, mainly tea, silk, and porcelain, was immense, but China required little from Britain. The British were paying for these goods with silver, which drained their silver reserves and exacerbated the trade deficit. The Opium Trade To address this imbalance, the British East India Company began exporting opium grown in India to China. Let’s imagine a conversation between British merchants trying to procure some tea, which only grew in China at the time. Their problem was that the Chinese emperor didn’t want any British export crap; he would only take silver. Let’s join our friends, who are brainstorming over a pint of IPA—India Pale Ale—which doesn’t need to be refrigerated and can be shipped from the homeland. “What are we going to do? The damn emperor won’t trade anything for the tea!” “But those Chinese like to chase the dragon, don’t they?” “What?” “So?” “I’ve got an idea… How about we sell them the opium for silver…” “And then use the silver they give us to buy their tea!” “That’s it!” “Matey, you’re a genius!” And that, my friend, is how the Opium Wars started and how the British Empire became the greatest narcostate in human history. However, the trade became so large that by 1865, the Hong Kong Britishers needed a bank to finance it. Step forward, Thomas Sutherland, director of the P&O ferry company and founder of the Hong Kong and Whampoa Dock Company. Sutherland founded the Hongkong and Shanghai Banking Corporation - now you know them as HSBC. To spell it out for you: HSBC was founded to launder drug money. Yes, I just wrote that. Sure, they financed many other things and still do a great job. Heck, they’re my bank in Hong Kong. Nevertheless, the Hongkong and Shanghai Banking Corporation was formed to finance the opium trade. The First Opium War (1839-1842) The Chinese government, recognizing the detrimental effects of opium, sought to ban the opium trade and confiscate large quantities of the drug. This action provoked the British, leading to the First Opium War. With its superior naval power, the British military defeated the Chinese forces. The Treaty of Nanking (1842) ended the war, imposing several conditions on China, including: - The cession of Hong Kong to Britain. - The opening of five treaty ports to British trade. - A large indemnity was to be paid by China to Britain. - Granting of extraterritorial rights to British citizens in China. The Second Opium War (1856-1860) Tensions never subsided, leading to the Second Opium War. This conflict, also involving France alongside Britain, resulted in further Chinese defeats and more punitive treaties, including: - The legalization of the opium trade. - The opening of additional ports to foreign trade. - Allowing foreign envoys to reside in Beijing. The Opium Wars caused untold damage to China. Besides losing the wars, the inflow of opium led to a significant outflow of silver from China, reversing the previous trade imbalance. This outflow of silver destabilized the Chinese economy, leading to inflation and widespread economic distress. The widespread opium addiction created severe social problems, including public health crises and increased crime rates. And now you know why the Chinese like to stick it to the Brits whenever possible. And if you’re thinking what I’m thinking (fentanyl), the Brits gave the Chinese their playbook. [Florida Man Wields Odd Device on Virginia Farm]( He traveled 1,000 miles away from home… To show you this strange device on a farm in rural Virginia. You won’t know by looking at it, but a secret company behind this strange device could hold the potential to make you rich over the coming years. [Click here to find out how.]( [Click Here To Learn More]( The Silver Charts Ludwig von Mises, a prominent Austrian economist, defined "inflation" differently from common contemporary usage. According to Mises, inflation is not merely a price rise but rather an increase in the supply of money and credit beyond the demand for money. Well, I got your money supply increase right here: Credit: [@TaviCosta]( You think the Fed is printing money like there’s no tomorrow? Try the People’s Bank of China… And this money is flowing into the asset markets, but mainly into commodity markets. The following chart is about how silver hasn’t taken off yet. Credit: [@KingKong9888]( Silver looks like it’s attempting to close the gap now on high volume, which is a great sign. Credit: [@TheBubbleBubble]( Posting the highest close in 11 years is not indicative of a bear market. Credit: [@goldseek]( Silver finally broke out of its 13-year downtrend. Credit: [@i3_invest]( And the gold-silver ratio (GSR) is heading downward. That’s good, as silver leads in precious metals bull markets. Credit: [@graddhybpc]( [@DonDurrett]( Finally, to tie this back to China, here is the Shanghai close from yesterday: Credit: [@oriental_ghost]( [@DonDurrett]( On the Shanghai Gold Exchange, silver closed at the equivalent of $32.63 per ounce. On the Shanghai Futures Exchange, it closed at $32.68 per ounce. As I write (at 5:15 a.m. ET), spot silver is trading at $29.45. That’s a full $3 difference. And that pressure from Shanghai won’t subside anytime soon. Wrap Up You have some background, history, and charts on silver today. I hope it helps you paint a fuller picture of what’s happening in the world. Again, I don’t want to sound pushy, but silver still hasn’t popped yet. We’re getting there soon, I think. Consider looking at silver coins, bars, and mining stocks. They may determine how well you can live in the future. All the best, Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2024 Paradigm Press, LLC. 1001 Cathedral Street, Baltimore, MD 21201. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@rudeawakening.info. This address is for feedback only. 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