Meraglim Blog

The U.S. Is Putting the Screws to Iran. How Will Iran Fight Back?

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

In 2011–13, the Obama administration waged an effective war on Iran using financial weapons alone without firing a shot. Iran was denied access to the global dollar payments system (Fedwire and the Clearing House Association) and later denied access to the global payments system for all major currencies (SWIFT). The result was a collapse of the Iranian currency, the rial, as black-market rates for scarce dollars revealed the value of the currency had been cut in half.

This led to hyperinflation and bank runs. The Iranian banks had to raise interest rates to 20% to keep deposits from flooding into the black market. Social unrest was soaring and Iran was moving closer to regime change.

Obama declared a truce in 2013 in exchange for negotiations on Iranian promises to curtail its nuclear weapons programs. Those negotiations resulted in a deal in 2015 (the so-called JCPOA, or Joint Comprehensive Plan of Action) that was in place until President Trump ended it in May 2018 because of Iranian cheating. Now we’re back where we left off in 2013, except this time the sanctions will be far worse and far more pervasive.

This article reports on a recent speech by U.S. Secretary of State and former CIA chief, Mike Pompeo. The Pompeo demands on Iran are extensive and are unlikely to be agreed upon by Iran. If Iran does not agree, Pompeo and the White House threaten “the strongest sanctions in history.” This time the White House won’t mind if regime change happens.

The problem for investors is the collateral damage that may arise from the Iranian response. In 1941, FDR put extreme sanctions on Japan by freezing their bank accounts and putting an embargo on Japanese oil imports. A few months later, Japan bombed Pearl Harbor in a sneak attack.

Iran will not send dive bombers to the U.S. but may use terrorist bombers in retaliation for sanctions. Even more likely is a cyberattack that could close the New York Stock Exchange or disable systems at major banks. Investors should prepare by having multiple bank accounts, building cash allocations and buying physical gold, which cannot be hacked or frozen in cyberwarfare.

Accredited investors interested in learning more about Jim Rickard’s private placement in the world’s first predictive data analytics startup that combines human and artificial intelligence with complexity science should check out his offering at Meraglim Holdings. Click the link to learn more.

IF THE SCIENCE IS NOT ON YOUR SIDE, JUST TRY THREATS

It’s clear that good science does not support the extreme claims of the climate alarmists. Yes, there is such a thing as climate change, but it’s slow, difficult to predict and almost impossible to model because of the complexity of the process. The climate alarmists have grabbed most of the headlines for the past ten

Read More »

WHY TRUMP WILL WIN REELECTION: NOT POLLS OR PUNDITS; JUST COMMON SENSE

Political analysts use polls, betting odds, historic trends and other inputs to make their (usually wrong) political predictions. We all remember that “experts” said Hillary Clinton would win the presidency in 2016 (they gave her a 92% chance on the morning of the election), and that the UK would vote to “remain” in the EU

Read More »

HERE’S ANOTHER ELITE WITH ANOTHER PLAN TO TAX AWAY YOUR WEALTH

The elites never rest when it comes to devising new ways to take your money through taxes, inflation or outright confiscation. The latest Trojan horse the elites are riding to take your money is climate change. The climate does change over long periods of time for reasons that are not well understood except that they

Read More »

KRUGMAN SHOWS HE KNOWS LITTLE ABOUT ECONOMICS AND LESS ABOUT FINANCE

We already knew that Nobel Prize winner Paul Krugman knows almost nothing about economics. Now, we see from this article that he knows nothing about banking either. Krugman claims that the repeal of Glass-Steagall and the actions of banks in general were not the cause of the 2008 financial crisis. The conventional wisdom is that Lehman Brothers,

Read More »
Scroll to Top