Operation Disclosure | By David Lifschultz, Contributing Writer
Submitted on June 1, 2022
NATO PLAYING WITH FIRE
SANCTION WAR WITH RUSSIA WILL DESTROY EUROPE
COMPLIMENTS OF THE LIFSCHULTZ ORGANIZATION FOUNDED IN 1899
What European nations do not seem to correctly evaluate is that their European Union is not self-sufficient in energy, food and most natural resources required in an industrial economy that makes a resource war for them fraught with risk. In addition, NATO in a conventional war with Russia would be defeated in about five minutes as all its ports and airports both military and civilian would be destroyed by hypersonic missiles.
NATO’s nations would starve to death and the US cannot help them with their mere 10,000 armed soldiers in NATO Europe. In the meantime Russian Armies would be at the English Channel within two weeks. I am talking about a fully mobilized army of ten million men.
The US has a great many natural resources and is independent in natural gas, oil and much else but still is missing about 40% of the natural resources required in its industrial economy. The US basis for maintaining its eleven aircraft carrier task forces is to secure these resources much as England did when they ruled the waves. The US will not starve to death in a war in any event and is well protected in its moat by the Atlantic and Pacific Oceans.
On the contrary, Russia is self-sufficient in all natural resources. Russia still finds itself in the same position as Stalin when he took over Russia in that Russia had all the natural resources that it needed though it was similarly ruled by Trotskyite oligarchs as under Lord Jacob Rothschild today though in Stalin’s time it was Baron Eduard de Rothschild that Stalin correctly purged.
What cards does Russia hold in this game? First, Russia’s military can take the part of Russia that Yeltsin jettisoned as a US agent in 1991 such as it eastern provinces as Kazakhstan, Uzbekistan, Azerbaijan, etc. that pump out of the ground about 14 million barrels a day of oil and a great deal of natural gas. Russia has much greater military access to these provinces than the EU or the US and in fact the US cannot project force here as meaningfully as they can in South America and Africa. Thus, it can take that oil off the world market.
The rulers of these former provinces are as corrupt as the Lord Jacob Rothschild’s oligarchs in Russia and should be removed as in the case of Russia. While most of these oligarchs have fled Russia, and their external assets have been seized by the west, the Stalinists in Russia have not yet seized their assets though we expect that to happen in the near future. Also, Putin, as the agent of the oligarchs picked for his weakness, seems unable to carry out this seizure so we expect that he will resign over ill health whether he is ill or not and that a Stalinist as Alexander Bortnikov will take over. We can expect as under Stalin huge purges of Trotskyites.
We should not forget that Russia and Iran are allies and the US is trying to destroy both by sanctions. The recent sanctions on Russia threatening to end exports of oil to Europe in about a year will be followed by a boycott of Russian natural gas as soon as the US and Qatar can ramp up LNG natural gas of sufficient production to replace Russian natural gas at about double the cost.
Qatar exported about 3.7 trillion cubic feet per year of liquefied natural gas (LNG) through the Strait of Hormuz in 2016, according to BP’s Statistical Review of World Energy 2017. This volume accounts for more than 30% of global LNG trade.
How can Iran and Russia respond? Iran is now confronted by mass demonstrations in their streets based on the rising cost of bread. These may present an existential threat to their theological government pressuring them into drastic action. The same applies to pressure on Russia. What can they do?
We understand from our intel contacts that Iran and Russia are in talks to shut the Straits of Hormuz in the near future. This would cut off 22 million barrels of oil per day or 22% of the world supply and nearly four trillion cubic feet of Qatar natural gas or 30% of the world supply. Russia is also planning to send troops into their east which together with Russia produce 24 million barrels a day of oil. This would cut off 45 million barrels a day of oil per day out of a 100 million barrels a day of oil produced out of the ground. Goldman Sachs oil derivative authority said that a cut off of 22 million barrels a day would raise the oil price to a thousand dollars a barrel increasing oil’s percent of the world GDP to 40%. We estimate if 24 million barrels a day more were taken out, it would send the price to two thousand dollars a barrel.
However, this is not all. The BIS or Bank for International Settlements says the derivative markets overall represent about 600 trillion dollars:
Swiss authorities say it is more like 2.5 quadrillion. A two thousand dollar price per barrel of oil would detonate the 2.5 quadrillion of derivatives crashing the world economy by triggering these financial weapons of mass destruction to paraphrase Warren Buffett. In discussions with Dr. Doom, Henry Kaufman, he said to me that in such a situation as just described all the world’s banks would have to be immediately nationalized as they would otherwise be bankrupt. A world catastrophe of unprecedented proportions would be unleashed and Europe would suffer 50% unemployment and as in Germany in 1933 we can expect the western democracies to implode as Weimar Germany whose unemployment hit 50% in 1933 if we count itinerant workers who were not in the government statistics.
The 94 year old Henry Kaufman blasted Jerome Powell recently in an interview saying he is no Paul Volcker. That suggests Volcker acted on his own. He was ordered to tighten by the deep state according to the plan I wrote. I will not go into here Powell’s issuance of six trillion dollars of credit or six hundred years of credit between 2020 and 2021 which represents the most irresponsible central bank supervision since Rudolf Havenstein of Germany between 1920-1923 as I have covered it elsewhere. Between 1914-2008 only 900 billion dollars of credit was created.
We go into this derivative issue and the closing of the Straits of Hormuz in the next link where the Joint Chiefs of Staff admitted that they could not keep the Straits open and the oil derivative expert from Goldman Sachs said the closing of the Straits would lead to a collapse of the world economy of a severity unprecedented in all of history. NATO is on the verge of burning its own house down.
The link views in detail of the opinion of the Joint Chiefs of Staff of the US explained to me over lunch at the Harvard Club by a high military authority that the US military cannot keep the Straits of Hormuz open. It includes a discussion of the calamitous effect of its closing on the 2.5 quadrillion derivative market including the views of Henry Kaufman. And lastly explains how the derivative market is manipulated by the major players on Wall Street who take out over a trillion dollars a year in profits by their illegal actions. This is under the subtitle “Stochastic Control Theory”.
THE LIFSCHULTZ ORGANIZATION
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