Is Judgment Day for Iran and Fed close?
Can Fed chairman Jerome Powell keep the stock market bubble going until the November presidential election? Will Iran continue its move towards nuclear weapons and cross Israel's red line?
By: Dr. Steve Johnston author.com
Another problem with market stability is geo-political tensions in the Middle East. Iran is on pace to cross Benjamin Netanyahu's nuclear weapons red line this summer. Netanyahu has said Israel would take a pre-emptive strike if Iran reached a point when it was 90 percent along the path of having sufficient weapons-grade material.
In 2012 Netanyahu could not obtain a vote from the Israeli security council to approve a strike on Iran. In 2018 the law was changed and now allows the Israel Prime Minster to order a pre-emptive strike on Iran. In 2012 Israel did not have fighter planes which could travel to Iran and back to Israel without refueling. Now Israel has F-35 stealth jets which can make the round trip and avoid Iran radar. In 2012 Israel did not have bunker buster bombs capable of destroying under ground centrifuge equipment in Iran. The Israeli firm Rafael has developed new air-launched ballistic missiles which use GPS guidance systems. Planes can stand-off and send in ballistic missiles with 2,000-pound bunker buster warheads from a distance. In 2012 President Obama refused to give Israel a green light to attack Iran. In 2020 President Trump has said Iran will not develop nuclear weapons on his watch. President Trump supports the nation of Israel. Iran is at a fork in the road. If they do not stop enriching uranium, they are on a course towards a pre-emptive attack by Israel.
The Fed is also at a fork in the road. If it continues printing money it risks a spike in inflation. If it reduces its balance sheet it risks a market drop. I am long Gold Resource Corp. (GORO)
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Dr. Steve Johnston
Page Updated Last on: Jan 10, 2020