The US is going to smell its own fart this time...

War with Iran seems imminent. Don’t believe what you hear from the Main Stream Media, it is for the oil.

If you haven’t heard, the US just imposed sanctions against Iran that make it difficult for the country to sell its oil. The US can do this, I presume, because it controls the currency that other countries need to buy first to purchase oil with; the US Dollar.

“It is in all our interests that the arteries of global trade are kept free, opening and running” - From sanctions against Iran above in reference to Iran’s threats to close the Strait of Hormuz.

The US sanctions seem to constrict a few arteries along with Europe’s proposed oil embargo.

If China weren’t in a dispute with Iran about pricing right now I bet you’d see some sparks coming from the Chinese. China will probably use these sanctions, and the strength of the Chinese resistance to them, as a bargaining chip to get the prices they want for the oil they need.

By constricting the blood supply of US Dollars to Iran, the US has created a perfect environment for other currency carrying arteries to evolve and grow.

By enforcing these sanctions, the US is diminishing the US Dollar’s reserve currency status and actually accelerating its demise by creating a niche which will be filled promptly by another currency; the Chinese Yuan.

I hate to think what will happen when this turns violent.

One thing is for sure, when violence erupts oil and gasoline are going to get really expensive. I’m betting ammunition will too followed by everything else shortly after.

This will dump the US further into this recession. The housing market is going to go down, again, though not like it did last time. The commercial real estate market is probably going to tank though.

The good news is, interest rates will still be great because of the huge demand for US Dollars. In times of crisis, investors buy US treasuries because they’re a safer investment than the stock market. To get the money to buy treasuries, investors sell stock leading to a stock market decline.

There will be more layoffs and more unemployment. Plan ahead, plant a garden.

I have no clue what China will do when Iran gets attacked. The dollar increasing in value will be good for China when it comes to selling US consumers crap they don’t need. The recession, on the other hand, will cause US consumers to spend less of their money on crap they don’t need.

They’ll probably do something… probably.

PRO TIP: If gold and silver ever rise sharply along with the US Dollar, panic like I just dropped an asshole-eating-spider down the back of your pants.