Rickards: "Put on Your Crash Helmet. You Might Need It Very Soon"

 Iran’s Options:  It could take the form of drone and missile attacks, similar to the ones in April, only more intense. Iran could also enlist its proxies like Hezbollah to attack Israel from southern Lebanon, forcing Israel to fight a two-front war (Gaza being the first, which is still ongoing).

Or it could be a combination of both. Hezbollah is a much more formidable fighting force than Hamas, so Israel will have its hands full if it has to confront Hezbollah. Meanwhile, The U.S. is sending warships and aircraft to the region to support Israel. What can go wrong? It’s not hard to envision a scenario in which the U.S. is dragged into the fighting.

Yesterday, a rocket attack on a U.S. base in Iraq injured five personnel. It’s not known who’s responsible at this point, but it could very likely be an Iranian proxy. 

It’s hard to imagine the timing was just coincidental. Here’s the larger point: Israel’s assassinations and Iran’s pending retaliation illustrate the dangers of having a weak, unfit, lame-duck American president like Joe Biden. Here’s why…Geopolitical Consequences of Biden’s Weakness: The U.S. has previously restrained Israel from taking stronger action against Iran. The U.S. has been pursuing a Gaza ceasefire and a hostage deal. Sources claim the Biden administration felt it was close to a breakthrough before the assassinations.

The two assassinations torpedoed whatever chances there were of a hostage deal. Would Israel have acted against strong U.S. interests if a firm president was in office? It’s highly unlikely. It’s apparent that Benjamin Netanyahu has little respect for a greatly diminished, lame-duck Biden who’s on the way out.

That’s why Biden’s diminished condition isn’t just a domestic concern. It has potentially serious geopolitical consequences, which are presently unfolding. And does anyone believe Kamala Harris is a viable alternative? Netanyahu almost certainly doesn’t.

If we’re not in a recession already (I believe we entered one in May or June), we’re clearly heading for one. A new Middle East war will drive up the price of oil, maybe dramatically depending on how the conflict unfolds. That means higher prices at the pump, which are already too high for many Americans.

What if Iran shuts down the Strait of Hormuz, ending all oil exports from the Persian Gulf (or the Arabian Gulf, depending on who you’re talking to)? That could be the final nail in the coffin of the Biden economy. We’d be staring in the face of a major recession that would crush average Americans.

Rickards: "Put On Your Crash Helmet. You Might Need It Very Soon" | ZeroHedge