Ah yes, the "globalization ensures peace" theory. I suggest that as globalization peaks, as it did just before 1914 and 1929, that the subsequent breakdown in globalization leads to war. US companies made a boatload of money from selling to the Nazis before WWII. As complex systems breakdown, sovereign interests take over. Decisions are made incrementally that lead to war. World wars are not planned, rather, they materialize from a series of bad decisions and unanticipated events that eventually make policymakers lose total control. And then, when the population of any given country gets pissed off because its living standards have plummeted to third world status, you think the next guy they elect President will care about IBM's India market, or GM's market share in China? They won't, and the system will continue to breakdown... Smoot-Hawley - that kind of stuff. A reversal of globalization - currency wars, etc... And then, to maintain some sort of economy, resource wars, fought by proxies develop... until someone begins to lose, and the proxy wars give in to actual wars, fought between major powers, in unconventional manners.
Well, when you think about it, when it comes to crude, we're already in a resource war with China, and as far as currency wars go, how else can you describe USD/JPY?
Unfortunately, I agree. I don't see a peaceful resolution. Only a gradual worsening of the current situation.
Faber is the best. All the rich pay huge fees to their private bankers for crap advise when they can get the best for free on youtube...
I've liked Faber a long time and in the past subscribed to his newsletter, not the investment bank one but the individual one. He is worth listening to but remember he has no crystal ball to see the future, it's just his opinion. And just because someon has predicted right in the past does not mean they will be right in the future.
Just how close we could be a large scale war read Debka's lead article today. http://www.debka.com/article/21183/ Makes total sense. NATO is going into Syria (totally plausible) to help out the liberation movement and gains a springboard to Iran. 222bc
Parsed it for you. It's support at 1150 and high of 1350. So if my elementary school math still works it's 30-50 pt downside to 200 point upside or hedge 4:1 UP. The rest of the read is good after the relief rally.......
Well, there have been enough resource- and proxy wars already for decades. Let's hope it does not go your described route.