The Russian Bear Awakens… Part 3
By Kevin Kerr, Special Contributor to the Dynamic Wealth Report
(IVANGOROD, Russian Border) If you’ve followed my previous articles over the last 2 months… then you know all about the escalation of the situation in Ukraine, and the broader, longer term situation that is also unfolding.
The first part of my article is here: The Russian Bear Awakens… Part 1
The Second part is here: The Russian Bear Awakens… Part 2
Now for my third… and most important article.
Let’s be clear. The question is not whether change is going to happen, the question is how much change and is there any way to protect yourself and even make money at the same time.
Now at the end of today’s series I am going to highly suggest that you take immediate first steps, or build on steps you have already taken, to diversify your assets and to hedge your bets.
The US Dollar and Euro currency risk is now pervasive, and the value of both fiat currencies are dwindling right out from under consumers, many don’t even realize it, don’t be one of them. The smart money from sophisticated and average investors alike is at least looking at ways to spread their risk around as well as diversify investments, especially in hard assets.
Russian Roulette: Putin’s Not Playing A Game
So I am writing to you today from the Northern Corner of Estonia, near Narva. I am actually on the Ivangorod River and here you can see two castles, one on the Russian side and one on the Estonian side, facing off toward one another, very prophetic.
Here is an old picture of me here in the winter. Trust me it can get brutally cold here in the winter months.
The Coming Resources War Has Arrived!
Since around 2004 I have written about and foretold of a time that would come when we will see the world at war again, unfortunately.
I predicted then the alliances that would be forged between Russia and China, and the fracturing of Europe, and the US. All of this is now coming true. We must face facts, change our thinking and take action, or pay the consequences of inaction.
The other morning, I was making coffee at the crack of dawn, as I do each day. As I stood there watching the coffee percolate, I began to think about how difficult it would be to survive in a world where we were fighting for resources everyday, I have thought about this many times before.
We simply take so much for granted, especially as Americans. After all, electricity is just a light switch away, groceries are usually in abundance just a few miles away, gasoline, while costly, is cheaper than many other liquids we buy each day, including some fancy bottled waters.
Let’s face it. Most of us have never had to kill our own food or forage in the forest to find enough wood to heat our home for the night. What would that be like? Would we be prepared? I highly doubt it.
The battle for global resources began several years ago, and is now only really beginning to take shape. The coming resources war I have spoken of for years, is now here, and it’s going to get much, much worse.
The fact of the matter is that the borders are being drawn and the players are suiting up. The grim reality is that commodities are being gobbled up around the globe, and as Earth’s population surges toward 7 billion people, resources are being stretched to the limit, we will simply not be able to keep pace.
NO VACANCY: Sorry Planet Is Full
Some scientists predict that the planet can sustain only 8 billion people; put simply there are not enough natural resources to handle any more than that. Nobody knows for sure, but it’s a pretty good indicator that at 6 billion, we have worldwide clean water problems, pollution, strife, disease, etc. At 8 billion, there will likely be even more problems we cannot even imagine yet.
There are only two remedies for this situation: Mother Nature and human nature.
Mother Nature has a way of regulating itself, regardless of what Al Gore says. The great plagues and pandemics throughout history have wiped out millions of people in the blink of an eye. It could well happen again. Many believe we are overdue for a pandemic, and SARS, Ebola, AIDS and bird flu have all been candidates, but none has done the job yet.
As medical science has improved, many diseases that used to be fatal are now nonexistent. The planet is a victim of its own success. But if a pandemic or other natural catastrophe doesn’t come along, then man usually steps up to the plate. This is nothing new — it’s been going on since the beginning of time.
Survival of the Fittest
The struggle for survival is human and animal nature. As resources become scarcer, the superior “animal” will seize the resources from the lesser species. It’s the law of natural selection, or survival of the fittest. In our modern world, the fittest are already taking from the least fit, and it’s just going to get worse.
Sanctions Make for Strange Bedfellows
The sanctions placed on Russia by the US and EU over the invasion of Ukraine have spurred a backlash from Russia that could be devastating to some Eastern European and even Western European countries that depend on that trade. Energy supplies are the number one concern for all parties. Europe needs Russia’s energy, and Russia needs Europe’s money. Or do they?
Russia and China are cozying up to one another rapidly and the sanctions have just sped up that process ten fold. A new pipeline between Russia and China is being built, and Moscow and China have agreed to transact their oil purchases and sales in a currency other than the dollar. This is a major shot over the bow for the greenback, and in my opinion, the beginning of the end for the Dollar as the “reserve currency”.
As Russian and Chinese relations strengthen, the need for European petrodollars will dwindle, Europe could most certainly be left out in the cold, literally and figuratively.
China has a lot of mouths to feed and a lot of energy needs too, if anyone is looking to gobble up global resources it’s China. The matrix has changed in China and now you have a large swath of better fed people with things they never had before like cars and extra money, they want more and more and it’s a consumerism race for a gigantic population.
According to Wikipedia, the old saying, “keeping up with the Joneses,” is “a popular catchphrase in many parts of the English-speaking world. It refers to the desire to be seen as being as good as one’s neighbors or contemporaries using the comparative benchmarks of social caste or the accumulation of material goods. To fail to ‘keep up with the Joneses’ is perceived as demonstrating socioeconomic or cultural inferiority.”
This does not mean that Chinese farmers are not benefiting from the economic boom too — they are, at least for now.
In recent years, average rural incomes grew by more than 10%. The problem is that urban incomes are growing faster.
China’s government is doing what it can to keep the problem under control, but so far, it’s not working so well. The reality is that major “social problems…can arise if the income gap continues to widen,” and it will. China is not without challenges but Russia could help solve many of these issues with oil supplies and even agriculture and other goods. This partnership is growing for the long term.
Resources Endgame and What Action To Take
A growing population in a world with fewer resources is a race that only a few can win, and to do so everyone will have to play a real game of Survivor. So where are the resources and how much is actually left, here is a great infographic to give you an idea.
By Peter Stouthuysen – http://visual.ly/born-2010-how-much-left-me
In the coming years, the countries that are strategically positioned to survive are the ones with the most resources and a growing army to protect them. Countries that come to mind are Russia, China and some in South America. In my estimation, the best targets are Africa, Canada and our very own Alaska for domestic resources close to home.
Only time will tell if the U.S. would actually go into World War III to protect Estonia or any Eastern European NATO country, but time will tell. I am in the camp that says I highly doubt it. That would mean a collapse of NATO as it would no longer have any credibility. The alternative of course is war which I am sorry to say as someone who lives an hour from the border, wouldn’t be a happy ending.
One thing is for certain: Global conflict based on a fight for resources is a growing problem without any immediate solution. In the meantime, the investors who are able to see opportunities where others see only problems will make a good amount of money.
They’ll realize that commodities — everything from corn to cocoa to gasoline to gold — are in lower supply and higher demand. It’s as simple as that.
I invite you to take even the most basic action right now, learn different alternatives and action you can take to protect you hard earned assets and wealth. I have put together a 41 page report filled with very specific strategies that I want every serious investor to have, complete with 9 additional specific trading ideas that you can act on right now in your own stock account.
This is the final time we will offer this report at any price, and we will also be holding a webinar in October with some of the top resource traders out there.
If you purchase our 41 page report for only $9 you will also be invited to the webinar in October at no further cost.
As I said the 41-page report is only $9. Please click this link now for all the information. Download it right now here for just $9.
Remember, the Russian Bear is wide awake and on the move, and so are we. I hope you have enjoyed this three part series exclusively here at the Dynamic Wealth Report.
Look for my next article series on global trading opportunities soon, only here at the Dynamic Wealth Report.
Until next time, from the border of Russia, I’m Kevin Kerr.
Kevin Kerr,
The Resource Renegade
Exclusively for the Dynamic Wealth Report
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Category: Commodities
