By Greg Hunter’s USAWatchdog.com
Financial analyst and writer Karl Denninger says forget about President Obama’s promise of “no boots on the ground” in the fight with the Islamic State. There will be boots, and Denninger explains, “Air power has never won a war, and it never will. You can bomb people until you think you bomb them back into the Stone Age, and they just go hide. You destroy their infrastructure, and they just come back out. The only way you take territory is to go and take territory. . . . The real problem is we, as a nation, have looked the other way while a number of countries in that part of the world have armed and trained terrorists. I will include on that list Saudi Arabia. In the classified sections of the 9/11 Report, there is some pretty damning evidence about them being directly involved . . . in the murder of 3,000 Americans on our soil. That is not yet in the public, and it still is not in the public more than 10 years later. There have been enough people talking about it that it is no longer in the realm of tinfoil speculation. We can state we can be reasonably certain that this is, in fact, what happened, but these are our so-called best friends.” Denninger goes on to say, “You have a group of people that don’t have the kind of political debate that we have in this country and most of the free world. It is a very different view. It is a medieval view. It is a view that you used to see in 1100 A.D. They understand one language, and it’s gunfire.”
On the possibility of wider war and economic fallout, Denninger says, “War is bad for the economy. What does war do in the general sense? War takes production out of the economy and diverts it to blowing things up which sounds great except for one thing–it raises people’s stress levels. It depresses confidence, and most importantly, in today’s world, it damages international trade. Remember, this is always the argument from the globalists and that is if I trade with you, you are less likely to shoot at me. Well, there is another side to that and that is if I trade with you and build my economy trading with you and then we start shooting at each other, that trade gets disrupted and goes away. What does that do to my economy?”
On the ongoing Ukraine crisis, Denninger says, “Whatever we thought they could possibly get by tampering with the Ukrainian political process, and we did and they did, when you knew that Russia had their only 12 month deep water navel port in Crimea, is utterly ridiculous. How did we come down that road? Strategically, this is an impossible goal. You are poking a bear that is eventually going to wake up and bite. He doesn’t want to bite, but you backed him into a corner and expect them to give this up. It’s not going to happen.”
On whether the economy is getting ready to crash or take off to new highs, Denninger says, “How do you take off? Where is the consumption base that forms 60% of our economic output? We have a small percentage of the population that has done extremely well with this so called reflation. However, we have everybody else who has done very poorly.” One of the biggest drags on the economy will be further implementation of Obama Care in 2015. When next year comes around, Denninger says, “The worst of this impact will come after the elections in November. I think coming into 2015, you are going to see a major deterioration in the employment index. That’s bad news for the economy as a whole.” Denninger thinks we could be headed for a 1930’s style depression and adds, “The longer that the Fed stays involved in their manipulation of market rates, the more likely it becomes. . . . The problem with the Fed and fiat currencies is, in nominal terms, you can prevent the deflation.”
Join Greg Hunter as he goes One-on-One with Karl Denninger of Market-Ticker.org.
(There is much more in the video interview.)
After the Interview:
Denninger wrote a prophetic book called “Leverage” in 2011. The subtitle gives an excellent description. It says, “How cheap money will destroy the world.” Isn’t that what’s happening right now? If you would like to buy a copy of “Leverage” please click here. There is also lots of free content on Market-Ticker.org.