If you have been paying attention to the headlines in the past 48 hours then you have seen stories about boat attacks near the Straight of Hormuz. Last night Secretary of State Pompeo blamed them on Iran – although he provided no evidence for that charge and seems to be merely repeating the political line of Saudi Arabia – and all you have to do is read the 28 pages of the 9/11 report and know that you shouldn’t trust them!
When our best “friend” in the Middle East is Saudi Arabia then you have a foreign policy that isn’t really about “America First.”
It certainly is an odd attack, because the boats that were attacked were carrying Japanese freights just as the Japanese Prime Minister had met with the leaders of Iran. So why would they attack them?
Some seem to think the Saudis are behind it while others are blaming “deep state” actors thinking back to the Gulf of Tonkin Incident of 1964. The British Foreign Secretary released a statement saying that they want to see evidence before blaming any specific party for the attack.
What is clear is that we really cannot say who did it right now without further evidence and sadly figures in the Trump administration such as John Bolton have zero credibility.
In 1964 Americans were told by the Lyndon Johnson administration that North Vietnam attacked American navy ships off the coast of Vietnam in the “Gulf of Tonkin Incident.” That “news” was used to give LBJ a blank check on the war, that he used to send over a million Americans over there to fight when in reality one attack happened and the second one did not. It took over thirty years to know what really happened.
The “deep state” is a phrase that has been thrown around so much the past two years by so many people that it really has no meaning anymore. JP Sottile of newsvandal.com put out an incredible sourced research article describing what it really is and what it really is about (and how Donald Trump is connected to it) earlier this week that you can read here:
I also interviewed JP about his article and posted the interview up on Youtube:
The attack did cause oil to go up a few percentage points yesterday, but when you look at the chart this move up looks like a mere blip.
There was a similar attack in May as this one the other day and as you can see all it did was make oil go up for a few days and then it faded.
It seems that oil is being hurt by demand issues, as an IEA report released this morning shows, and a slowing global economy so much that even tensions in the Middle East are unlikely to make it go back up to where it was in April anytime soon.
So my thinking is let’s not just blindly follow the lead of characters like John Bolton and let’s not buy into this news either and try to play oil on it.
In the best trade lining up is gold. The GDX gold stock up ETF closed above $23.00 yesterday and is getting close to the key $24.00 barrier. Paul Tudor Jones called gold the best trade for the next 12-24 months. He’s probably right, but mining stocks are likely to go up even more than gold does. And that is exactly why now is the time to grab my Total Gold Trading Program.
For more on the real “deep state” check out JP Sottile’s incredible research article here: