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Precious Metals And Ukraine - Un-hinged Or Un-hedged

May 4, 2014

"I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones."

-Albert Einstein 

War of s

Big money speaks through politics. And both seem to be itching for a fight. It is forbidden to have real money compete with currencies. In much the same way, it is also unacceptable for the masses to become aware of the real depth of the socioeconomic train wreck we are a going through together.ome kind (and some place) is inevitable. 

There are numerous hotspots around the world that could melt into chaos if the media spotlight shines down on them. 

War benefits the oligarchs. And the military industrial complex is supported and directly linked by the “broken glass” Keynesian economic model. 

Ukraine is just one place that happens to be on the radar. But the situation there can be extrapolated to any conflict. Given the brevity of human memory, perhaps it is all but natural to resurrect the "Red Russian enemy” meme?

Whether a clear or conscious instigator exists for this conflict is not the issue. There is a deep-seated and systemic tendency for this outcome. 

At this stage of the current European crisis, more sanctions and chatter are inevitable as both leaders are desperate to avoid looking weak. For better or worse, Kiev refuses to allow the country to split, tightening like a clamp around the political standoff between East and West. 

Russia has declared that it would protect the East, making it likely that troops will be involved if the need to look strong prevails. 

Kiev has signaled to the world that help is needed from the West. A Russian troop invasion would all but guarantee reinforcements, including military, political, and other western media propaganda-derived symbols. 

A civil war supported by various western European countries with covert or outright involvement of the U.S. would be impossible to be contained locally, despite a well conditioned hope. 

Europe is not ready for the scaling up or able to stomach a campaign that would certainly involve supply chain management and, again, spread to other areas. And invasion of Europe would at that point become an obligation for the Russians. 

Not to mention the ever present and ongoing currency war posturing that ebbs and flows beneath the surface. Uncontained conflict would be a natural tripwire for precious metals re-valuation and return to valuations based on reality - not the will of big finance. 

All that is really needed is a justification for revaluation. Whether motivated by profit,  politics, or both is not the question. In the short term, the profit motive rules for the big commercial banks that refuse to budge from their illegal short corners on the COMEX, a futures exchange that currently remains the crucible for price discovery. 

War could serve as a political and monetary cover for revaluation. Perhaps it is not a stretch to consider this a next step toward a new currency regime. Coming back around to who benefits if a crisis anywhere becomes unmanageable, the international organizations are certainly well placed in the collective for puppet leadership. 

Optionality Versus a Hedge 

A hedge is a backward facing metric, which is why it so easy to lose sight of and a reminder of the fact that history and memory are full of narrative bordering on fiction. 

An option is a forward position. In life outside of finance, there are many we choose that come at practically no cost - some merely decisions, simple choices. 

But as we approach wealth options, especially in the time before war, we need only look for opportunity where man has imposed his will upon nature to extremes. When the noisy tide recedes you look close enough, tiny tide pools of opportunity reveal themselves. 

Precious metals are one important physical manifestation of these natural options.

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For more articles like this, including thoughtful precious metals analysis beyond the mainstream propaganda and basically everything you need to know about silver, short of outlandish fiat price predictions, check out http://www.silver-coin-investor.com


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