Commercial Jet Shot Down Over Ukraine, Israel Invades Gaza, Southern Border
By Greg Hunter On July 18, 2014 In Economy 7 Comments
By Greg Hunter’s USAWatchdog.com
Only three stories in the Weekly News Wrap-Up, but they all have something in common. They all will have cascading effects that will go on for some time to come. First up, the downing of Malaysian Airlines Flight 17 over Eastern Ukraine. Nearly 300 people are dead; and of that total, nearly two dozen are reportedly U.S. citizens. Everybody is pointing the finger at the other side. The Ukrainians say it’s Russia’s fault. The Pro-Russian separatists say it’s Ukraine’s fault, and so does Russia. No matter whose fault it is, new sanctions and war tensions are mounting. The President has already ratcheted up more sanctions this week because of Russia’s continued support of the separatists. More sanctions on Russia are surely coming. The missiles that shot down the Malaysian jet were from Russia. Other planes were shot down by the separatists with Russian missiles. Now, the situation is being elevated up to a whole new level. Sanctions are likely going to increase; and this time, maybe even the Europeans will level meaningful sanctions. Putin has already stated that any new U.S. sanctions “will boomerang and cause very serious damage.” I think the damage Putin is talking about is damage to the U.S. dollar and Western economies. This could not come at a worse time. The U.S. economy is weak and just suffered negative 3% plunge in the first quarter. Banks in Europe are already defaulting on debt, and most are in big financial trouble. War and sanctions can cause a daisy chain of defaults that can go global. There are the hundreds of trillions in interest rate derivative exposure in the global system, and the entire financial system can crash and crash hard. That’s just the financial risk. The war risk is also very real; and even if we do avoid war, the fear of war can be an economy killer. A realtor friend told me as soon as one of her clients heard of the downed jet, they called and cancelled plans to buy a new home. Multiply that all across the country.
The second story that has the potential to cascade out of control–the war now taking place in Israel. The Israelis invaded Gaza and have called up nearly 60,000 troops. I told you last week I thought Israel was going to try to knock out Hamas and stop them from firing hundreds of rockets into Israel. That is what is happening now. When I heard of an Egyptian brokered cease-fire, I thought the crisis would end. Much to my surprise, Hamas did not stop firing rockets; and after several hours of rocket attacks, Israel continued its offensive called “Protective Edge.” The U.N. brokered another cease-fire later in the week; and once again, Hamas started firing more rockets after just 2 hours. There are reports that Hamas is shooting rockets from schools and hospitals. Of course, when the Israelis respond, they end up killing women and children. Even the U.N. admitted this week it found Hamas rockets hidden in a U.N. school. I do not know what Hamas is trying to do? Are they just turning up the body count to garner global sympathy? Are they trying to bait the Israelis into a trap similar to what happened in Southern Lebanon several years ago? (The Israelis took heavy losses in Southern Lebanon.) I do not know what Hamas is trying to accomplish, but I do know that the relative peace we have had for the past few years has ended. This will be an ongoing war that could cascade out of control and spread to the rest of the Middle East. This is going to get much worse before it gets better. There will be heavy losses on both sides in this latest ground campaign. There will be no winners—only losers.
Finally, I go to the Southern border of the United States. According to Senate Majority Leader Harry Reid, the Southern border is “secure.” Senator Reid must be delusional because illegal immigrants of all ages are flooding across the border. Gang members, drug runners and even suspected terrorists are making it across the border. This is a full blown national security issue, and the President and his minions refuse to send the National Guard to help seal it off. On top of that, ABC News is reporting the numbers of illegals flooding the border makes it impossible to medically screen them. ABC says there immigrants with “high fevers, flu-like symptoms and contagious diseases.” The government is shipping people all across the country, which is a way to fast track sick and diseased people everywhere. There are also reports of “chicken pox, pneumonia and swine flu.” What is going to happen in six weeks when school starts again? Former Border Patrol agents say the border crisis is the result of Obama Administration policies. They also feel it is orchestrated. The crisis is nowhere near resolved, and this too can cascade out of control, weaken the country and might even help cause the next terror attack on U.S. soil. The Ukraine crisis, Israel/Hamas war and the border crisis are all happening at the same time. Do something Mr. President, and tell your fellow Democrats to please stop lying to us.
Join Greg Hunter as he talks about these stories and more in the weekly News Wrap-Up.