The Coming Sunni, Shiite War
January 10, 2011
month I wrote about the probability of
From the time of cave men, the number one component of prosperity has been energy. At first it was the energy of hard working individuals. Then it was the tools that made that energy produce more, Then it was the use of animals to do part of the work. Then the use of wind power to drive ships over the seas and water out of wells. Then steam energy to replace wind and animals for transportation on land and sea. Then comes oil to replace the steam engine and the horse drawn carts and plows. Oil and electric power (powered by coal) became the greatest boom to world wide economy than any other thing in history. After this came nuclear power. Nothing has replaced these two things and nothing will for the next 50 years. Wind and solar are jokes and will never amount to more than 7% of our energy needs. Understand that all production today depends first and last on energy and production is the blood of economy and economy the key to survival.
to go back to what could cause
However, I just read Byron King's prediction and I find it more credible than mine because he reminded me of the history of Islam that I had forgotten. Did you ever think of why more Moslems are being killed by other Moslems each and every day, than non Moslems? Everyday we see hundreds of Moslems being killed in bombs and shootings. Is this something new? No, it has been going on for over 1300 years. It started at the death of Mohammad, himself.
As many as eight key Islamic countries are hurtling headlong toward a bloody "new" war with each other that's been FOURTEEN CENTURIES in the making. This could begin as early as the next 12 to 18 months. And with no less than 66% of the world's key energy reserves smack dab in the crosshairs.
The Murder of Mohammed 629 AD
All the way back to a lamb dinner, served up one evening in the year 629 AD... Nobody could have known that the dinner they were about to eat would one day change history. Some say it was goat. Others say it was lamb. Either way, it was poisoned. And the guest of honor was Mohammed, the controversial founder of Islam. It was just one bite, that's all it took. He tasted the poison and immediately spit it out. But it was too late. He would soon die, sparking a bitter and deadly divide.
When Mohammed died nobody
could agree on who should take over... And they've been killing
each other as a result ever since. On the one side, you've got the Sunni
Muslims. They're the ones that run
On the other, you've got the Shia Muslims.
It's the Shiites that run
But it's only now that this pressure has found its ultimate release with Iran driving a new Shia uprising smack dab in the middle of the most dangerous place on Earth the oil-soaked Middle East.
Take a look at this map...
The Deadly Sunni-Shia Divide 2010-2011
If it's black in this
map, it's Shia ground. It's also mostly oil heartland
and some of the most strategic territory in the entire
One terrorist with a grudge can do a lot of damage.
But now, for the first time in history, they see this as their chance to
turn the tide. And how big a tide is it? Hands down, saber-rattling
Not all Shia want a revolution, but out of
between the 147 million to 162
million Shia spread from
For 300 years, Persian armies held off the
The Iranians resent losing theirs. But now they see a chance to get it
Take a look at this...
With total control of the
Hormuz "oil chokepoint" in the Persian Gulf
and new power in "liberated"
for kicking off the long-awaited "Shia Revolution."
You'll notice two things.
First, you'll see how
For eight years back
in the 1980s,
The second thing you'll see in the map above is that
Hormuz is the tight waterway that connects the Persian Gulf to the
That's 40% of all the oil shipped in the world.
And 90% of all the daily oil shipments from the entire Middle East.
With Hormuz alone,
Because gaining control in
The Pentagon has just tripled its budget on
Even ABC News
The Shia Revolution's Next New Front...
could soon give
And like Hormuz, most oil states on the
Blocking this chokepoint alone could slap a $30 "political premium" on the price of every barrel of oil... but there's an even bigger threat taking shape.
For the last six years,
Could it be true? Absolutely.
Take the $1 billion
The secret money
How bad is it?
So far, 50 Saudi schools along the border have had to close. Another 240
border towns have already been evacuated. And Saudi jets have already dropped
What exactly has the Saudis running scared?
Don't think for a minute that I think
The Times of London uncovered a confidential document that says
And Der Spiegel, the German magazine,
But the Bomb is just a beginning.
Even if the go ahead to build a nuke never comes from Iran's top cleric, the more immediate danger is a wildfire of Shia-Sunni unrest... starting in Iran's new hotbeds of Shia support... and spreading across the rest of the Sunni-run oil states... with the richest oil fields in the world's richest oil nation as the final battleground.
Take a look at this last map...
The Final Battleground —
Suddenly, Iran has its
mortal enemy, Saudi Arabia, surrounded —
millions of Shia even live on top of the Saudis OWN biggest oilfields.
As you can see,
You could see this spread to the nearly two million Shia that live and
As you read this, big and small
As you read this, our own F-16 fighter jets, Patriot missile systems,
giant cruisers and up to 20,000 more
All to get ready for what could be the fight of a lifetime... Say Hello to the "Jihad Generation"
It's not just our experts saying it.
Leaders in all three of
It could start from any one of the flashpoints I just named. But no
matter how it starts,
Not only is
Think about it.
In a country where they'll cut off your hand for stealing and whip you for holding a glass of whiskey... Saudi princes gorge on cocaine and prostitutes, gambling, palaces, and more.
All while the vast Saudi underclass starves on just $6,000 per year and 30% unemployment. And as many as two million of that underclass is Shia. With a 1,354-year-old ax to grind and billions of dollars in oil revenues as the prize.
It's a near-perfect formula for a FULL-ON war.
And the fuse is already lit.
How the world responds, we can't know.
But I can tell you how oil could respond... by exploding to new record highs. Possibly as high as $220 per barrel by spring of the coming year... with gas not topping out until it hits as much as $8 per gallon.
That's very bad news for millions around the world.
Have no illusions any military response, on any front could only accelerate the spike in oil prices. So the first thing you're going to want to do is simply get out of the way.
What critical resource need helped drive Germany into BOTH world wars... drove Japan to bomb Pearl Harbor... and helped fuel the Allies that crushed them? Oil.
After the Yom Kippur War... during the Iranian hostage crisis... during
countless clashes in
Couldn't it happen again?
Of course it could.
Like I said, the rising threat alone... so close to nearly 66% of the world's shrinking oil and gas reserves... could be enough to set this price explosion into motion.
Real Wealth Is Not Money
Oscar Wilde once said, "Ordinary riches can be stolen, real riches cannot."
I don't need to tell you, between plundering banks and blundering bureaucrats, a lot of regular Americans have watched their 401k and retirement "riches" stolen right out from under them, these past couple of years.
But when push comes to shove... in times of historic growth and epic crisis... what's the one thing that's endured? For as long as anybody's kept track, it's "stuff"... real, tangible, usable, tradable, blatantly valuable wealth.
In short, the raw resources you need to thrive and survive.
It's really that simple. It's no accident that's where the smart money flocks in good times and bad. It's also no accident that this is the story of one great fortune after another.
Think about it...
· Just before the crash of 1929, Rockefeller and other mega-rich investors like J.P. Morgan, Joseph F. Kennedy, and Bernard Baruch ALL shifted out of stocks and into gold getting even richer in the process.
· Andrew Carnegie who also crushes Gates with a fortune worth nearly $112 billion in today's dollars got that rich making steel.
· Frederick Weyerhauser, worth more than $72.2 billion in today's money, made all of that after starting out with timber, land, and saw mills.
· Andrew Mellon and his brother Richard each made about $36 billion, in today's terms, by branching out from banking and into oil, steel, aluminum, and coal.
Real assets are more than just the building blocks of great family fortunes, they're also the backbone of history. Not just with oil and the Middle East, but the timber riches that made Europe... the aqueducts that fed Roman fields... and Aztec gold and silver...
Forests that became armadas... coal and iron that made
What both the Federal and State government have in common right now, is unemployment and debt, and both caused by refusing to face the energy problem that has gone on for twenty years. There is only one way to solve this problem and that is to cut government spending by 40% and create jobs through energy. Only energy can create enough jobs to raise the GDP enough to pay the National and State debts. On the side of creating jobs, only energy can do that.
The government has to make it as easy and swift as possible to drill in
the oil shale and oil sand regions of North Western USA where we have more oil
than all of the Middle East (enough for all America's needs in oil and gas for
a 100 years and enough to export oil to China).
We must make it as easy as possible to open the oil reserves in
The government has to make it as easy and swift as possible to mine uranium, which we almost have a monopoly on and as you will see below will be used 800 times as much in the future as now, and go up in price by 300%
The government has to make it as easy and swift as possible to built new
nuclear power plants. We need at least
100 new power plants in the near future just to take care of
The government has to make it as easy and swift as possible to built the systems on the highways to convert our trucks and cars to natural gas.
There are enough potential jobs just in the energy market to bring unemployment down to under 4% but it will require government to cooperate and to train workers in these new fields of education.
If we don’t do this, not only will we have 12% unemployment but we will have $8 .00 gas, high food costs and National and State bankruptcies
What You Should Do Now
On a personal level you should assume the government will not do the above and will collapse in time. If you live pay check to pay check there is not much you can do. But for those who do or can save some money each month I give this advice. Keep enough money for your monthly bills but cut that down as much as you can. Take all your excess money and convert it to “things” like oil, gas, food, uranium, coal and gold. You can take these things in product or stocks but they will go up in value as your money goes down in value.
Facts to Consider:
1. The single biggest energy breakthrough in 100 years just took
place nearly five miles below
the surface of the sea. Brand new technology finally makes it
possible to tap as much as 100 billion barrels of new oil.
This is off the shores of
the Tupi 240
miles off the coast of
Crews go out on massive ships to set up the rigs. They use satellite images to find the deposits and then automated underwater robots to lock the drilling equipment into place.
Just tapping the deposit can take as many as three months to set up... at a cost of as much as $600,000 per day. Even to hire a helicopter to fly to the offshore drilling sites can take as long as two-hours over open water and up to $50,000 for the fuel and pilot... for each flight.
· The cutting-edge American deepwater technology company that has oil majors worldwide lined up to use their specialized rigs. Only a handful of companies worldwide can do what they do. And with up to 300 new deepwater rigs to come online by 2012,
2. Proven reserves of
3. We now have the famous Bakken Oil Formation here in the
China is already so short on coal to fuel their power plants... they have to shut out the lights in Shanghai and other big cities, just to save on electricity! Long-term, that can't work so they're going nuclear, with plans to build three times as many uranium-fueled power plants.
But they want to rocket that number to 124 full capacity reactors over the next several years.
The last full year on record,
Right now around the world, you've got 436 nuclear reactors up and running. Plus another 50 being built. And another 137 reactors in the blueprint stage. Along with 295 more new reactors on the table for approval.
It's not hard to do the math.
Who Has Uranium?
First, guess who doesn't. Uranium deposits are hard to come by in the
Uranium could hit over $60 this year $250 uranium in the near future.
While S&P stocks fell 9.7%... gold shot up 323%. From 1979 to
1982, during the Iranian hostage crisis and the worst inflation the
about the future of gold? The IMF is
dumping gold to finance
Precious Metals are now in very short supply and are used in all the new technologies so now old mines have to be re-opened and investment will bring big returns. Molycorp precious metals is a good buy.