Kyle Bass, Larry Edelson, Charles Nenner, James Dines, Nouriel Roubini, Jim Rogers, Mrac Faber and Jim Rickards Warn or War

We’re already at war in numerous countries all over the world.

But some topic economic advisers warn that economic factors could lead to a new world war.

Kyle Bass writes:

Trillions of dollars of debts will be restructured and millions of financially prudent savers will lose large percentages of their real purchasing power at exactly the wrong time in their lives. Again, the world will not end, but the social fabric of the profligate nations will be stretched and in some cases torn. Sadly, looking back through economic history, all too often war is the manifestation of simple economic entropy played to its logical conclusion. We believe that war is an inevitable consequence of the current global economic situation.

Larry Edelson wrote an email to subscribers entitled “What the “Cycles of War” are saying for 2013″, which states:

Since the 1980s, I’ve been studying the so-called “cycles of war” — the natural rhythms that predispose societies to descend into chaos, into hatred, into civil and even international war.

I’m certainly not the first person to examine these very distinctive patterns in history. There have been many before me, notably, Raymond Wheeler, who published the most authoritative chronicle of war ever, covering a period of 2,600 years of data.

However, there are very few people who are willing to even discuss the issue right now. And based on what I’m seeing, the implications could be absolutely huge in 2013.

Former Goldman Sachs technical analyst Charles Nenner – who has made some big accurate calls, and counts major hedge funds, banks, brokerage houses, and high net worth individuals as clients – says there will be “a major war starting at the end of 2012 to 2013”, which will drive the Dow to 5,000.

Veteran investor adviser James Dines forecast a war is epochal as World Wars I and II, starting in the Middle East.

Nouriel Roubini has warned of war with Iran.   And when Roubini was asked:

Where does this all lead us? The risk in your view is of another Great Depression. But even respectable European politicians are talking not just an economic depression but possibly even worse consequences over the next decade or so. Bearing European history in mind, where does this take us?

He responded:

In the 1930s, because we made a major policy mistake, we went through financial instability, defaults, currency devaluations, printing money, capital controls, trade wars, populism, a bunch of radical, populist, aggressive regimes coming to power from Germany to Italy to Spain to Japan, and then we ended up with World War II.

Now I’m not predicting World War III but seriously, if there was a global financial crisis after the first one, then we go into depression: the political and social instability in Europe and other advanced economies is going to become extremely severe. And that’s something we have to worry about.

Billionaire investor Jim Rogers notes:

A continuation of bailouts in Europe could ultimately spark another world war, says international investor Jim Rogers.


“Add debt, the situation gets worse, and eventually it just collapses. Then everybody is looking for scapegoats. Politicians blame foreigners, and we’re in World War II or World War whatever.”

Marc Faber says that the American government will start new wars in response to the economic crisis:

We’re in the middle of a global currency war – i.e. a situation where nations all compete to devalue their currencies the most in order to boost exports.  And Brazilian president-elect Rousseff said in 2010:

The last time there was a series of competitive devaluations … it ended in world war two.

Jim Rickards agrees:

Currency wars lead to trade wars, which often lead to hot wars. In 2009, Rickards participated in the Pentagon’s first-ever “financial” war games. While expressing confidence in America’s ability to defeat any other nation-state in battle, Rickards says the U.S. could get dragged into “asymmetric warfare,” if currency wars lead to rising inflation and global economic uncertainty.

As does Jim Rogers:

Trade wars always lead to wars.

And given that many influential economists wrongly believe that war is good for the economy … many are overtly or quietly pushing for war.

Many More Warn of Unrest

Numerous economic advisers also warn of crash-induced unrest, including:

Category: Think Tank, War/Defense

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

7 Responses to “Forecast of War and Unrest”

  1. ilsm says:

    Plagiarizing Goring and Goebbels. Keep the populous riled up about phoney foreign threats, and call anyone against the militarists plundering the economy, unpatriotic.

    US debt, spending 47% of the world’s war money, is from war and tax cuts. More war must be the answer.

    War makes debt by killing people and blowing things up with stuff that should be used to build things, unless the emperor brings back a whole bunch of slaves. Thus the GOteaparty wanting to depress tech wages with H!-B’s.

    Another world war fought against whom?

    The Germans are going to send their 100,000 mman military to extract slaves from Athens.

    Quagmires are sparse excuse for plundering more of the US for war rpofiteers dreams of fighting WW II all over again.

    Yeah, we need to spend $1500B over the next 25 years on the F-35 to keep starving foreigners from invading drought stricken Kansas.

    That is done by occupying the starving lands, doing forward defense with things like the F-35, steralth helos and M-1 tanks.

    These commenters must have long positions in the military industry congress complex.

    These guys know only that war will keep the little guy in line.

  2. ilsm says:

    “If there’s one thing that makes me madder than pork-filled make-work programs, it’s shadowy netroots pressure groups that just want to get rich off big government.”

    War welfare!

  3. MikeNY says:

    I understand the (economic) logic of warmongering, and I consider myself fairly cynical … but:

    After the last two decades of feckless wars of adventure, the thousands of lives, and the trillions of dollars wasted, with the bloated enormity of the US DoD, and the still gargantuan Federal budget deficit, if our government finds yet ANOTHER war to wage in the near term, I shall despair of democracy and of capitalism.

  4. romerjt says:

    Currently reading “The World Until Today” or What We Can Learn from Traditional People. Traditional people are almost always at war at some level b/c there is no state power to dampen or repress revenge from the last war. Then as now, war is almost always with neighbors and trading partners. The first part is sort of common sense, most nations even today do not have the power to project war very far from their borders except one, oh, yea, us. The idea of us being attacked by either N Korea or Iran is very farfetched, it would be suicide on their part and they know it.

    It’s easy to look around the world and see unrest and localized violence, it’s harder to find a reason this could amp up into a war in which troops invade another county and try to capture the capital and government. It’s easy to imagine airplanes or missiles being exchanged, but troops on the ground? Look at the map, who would invade who? The countries with the most national borders are the most likely to invade and that would be Iran, but who would they invade, Turkey? They would have to go through Iraq and Jordan to get to Israel.

    Israel is the exception to all of this and its’ settlement policy which is reminiscent of a traditional society in that they expand into a neighbors territory based on uncivil, religious justifications outside the rational of the modern world.

    Lastly, as we’ve all heard, the military of the US is larger than the next 11 or 12 countries so if any nation contemplates attacking a nearby foe and that attack disrupts they world order in a way that effects us, even a little, they will have to deal with $700B a year worth of military might. Even after the disappointment of Iraq and Afghanistan, probably not a good idea.

    Lastly, can’t help but think talk of a WWIII is kind of irresponsible.

  5. mpetrosian says:

    Everyone take a puff and relax

  6. funkright says:

    Given the above article one would think that only hard goods or a physical or tangible asset is the only place to store wealth.. Only the good Lord knows?

  7. rbblum says:

    Contributing to an emotional reactive environment is America’s propaganda media machine . . . which has fundamentally transformed to become second to none.