Summary
➡ Mark Moss discusses The Suez Canal and how it is very important, but wars are putting it in danger. This affects our lives, our money, and the future.
➡ Near the Suez Canal and Red Sea, the Houthis are attacking ships, and the US is involved in Yemen. This is causing worldwide problems.
➡ Ship attacks in the Red Sea are increasing, and navies are struggling to keep the area safe. The US faces tough decisions in response.
➡ Big ships now avoid the Suez Canal, taking longer routes around Africa. This is similar to the Evergreen ship problem in 2021. When the canal is blocked, it impacts the whole world.
➡ After World War II, the US promoted global cooperation, but now some countries are focusing more on themselves, possibly changing international relations.
➡ This shift away from global cooperation impacts major countries and could affect politics, money, and elections.
➡ Global trade depends on open sea routes. Problems like attacks disrupt this and put things like oil pipelines at risk too.
➡ Attacks on important infrastructure like oil pipelines force ships to change routes, adding to global shipping issues.
➡ Countries like Iran, China, and Russia are increasing shipping risks, challenging the US navy’s ability to maintain control.
➡ New technologies in warfare, like drones, are changing how battles are fought, posing challenges to traditional navies.
➡ Wars and shipping problems lead to higher prices, affecting our daily living costs and making it crucial to protect our finances.
➡ The US’s future as a global leader is uncertain, with a possible shift to a world with multiple powerful countries, but there’s hope for continued peace and cooperation.
Transcript
The Suaz canal shifts the global led order. Now wars, more wars, and rumors of war seem to be the defining theme of this decade so far. But should you really care if they don’t happen where you live and you don’t have to go fight? Well, these wars are just symptoms or signposts of the global order being broken up and ending. And it has massive implications for all of us, for our day to day lives, our standard living, our investments and our future.
So in this video, I’m going to break down what’s happening in the Red Sea and the Suez Canal with the Houthis launching attacks on merchant ships and the US escalating attacks on Yemen. We’re going to look at what this tells us about the end of the existing global order. We’re going to dig into that. We’re also going to look at why this matters to you, to me, to us, no matter where you live and what you think happens next.
So let’s go. All right. Welcome to the channel. If you’re new. My name is Mark Moss. I make these videos to change the way you think about money because it’s a complex subject and it’s hard to understand how all of these things are woven into the narrative, something like an attack in the Red Sea. How does that affect our money, our investments and, of course, our life? So we’re going to get into that.
We’re going to get through this together. Now, you know that I don’t want to just give you the news, right? I tell you that all the time because, of course, few just go read the headlines. You can go watch that. You can get that from anywhere. But rather, I try to explain what it means and how it impacts our lives and what we should be doing about it.
But to catch you up on the situation, just so I can fill you in on some of the spots that you might not be aware of, the Red Sea situation is going from very bad to even worse, and it’s doing that fast. Currently, container ships are being attacked regularly with anti ship missiles and drones via the Houthis out of Yemen. Now we have the US, sort of the US coalition, the US, the French, the UK and other naval ships.
They’re trying to keep this pass open, to keep it open, and they’re trying to keep ships from being attacked. But now they’re being attacked and things are escalating very, very fast. The US has even led an attack in Yemen now against the Houthis. And these naval ships have seen more action on the water in just a few weeks. Than the entire US Navy saw on the water during the great war on terrorism over the last 20 years.
And while the US led order is trying to protect these ships and keep the shipping lanes open, the big risks here are the US military escalating the middle eastern situation by striking the Houthi capabilities in Yemen. Now, this is well within the capabilities of the Department of Defense to know fairly easily. The State Department could just lob a couple bombs, they could do whatever, they could take care of them, and they could sort of just kind of hand wave this away.
The Houthis are distinct from the yemeni government that is officially recognized by the west. So they could probably get away with it, but it might invite even more retaliatory attacks on US Navy ships, which is what we’ve already been seeing play out. So that seems to be the decision dilemma, right? If we do nothing and the US appears unable to keep the trade lane safe, and eventually, I don’t know, a ship’s going to sink.
But if the US does retaliate, we could see the situation escalate into one which invites retaliatory strikes of a greater intensity, one which would demand further military commitments and would put the Biden administration in a very tough spot. Quite the dilemma now, considering the current, I don’t know, bottom up pro Palestine and top down pro Israel situation that we’re seeing here in the United States and across the west, if you will.
They’ve been straddling the fence on this, right as an election year in the United States is starting to warm up. And we’re already seeing a massive disruption to global supply chains as major shipping lines are avoiding transiting through that suez canal and are now having to reroute around the Cape of good hope on the african continent. And we’ve already had lots of, I guess you could say, foreshadowing of the Suez Canal being a major hotspot for conflict over the past couple of years.
Just, I think it was 2021. We saw the evergreen ship beach itself in the canal, and the world kind of got a glimpse as to what would happen if the canal was blocked off during that time. In March of 2021, that ship that blocked the Suez Canal, millions were lost every hour, maritime historian Sai Merci Lago told the Associated Press. Quote, every day the canal is closed, container ships and tankers are not delivering food, fuel, and manufactured goods to Europe, and goods are not being exported from Europe to the far east, end quote.
And now everyone’s seeing it play out in real time right now, and they’re really waking up to the idea that global shipping’s the big thing at risk right here. Now, that’s the news. All right? That’s the news story. You got that? You can go dig into that more if you want. There’s plenty of articles online. But let’s look at what’s really under attack here. Let’s look at what’s really at stake and what it means for us.
For you and me, what’s really under attack here is the US global led order. What does that even mean? At the end of World War II, after the US took over as the global leader, it imposed the US global led order, or what’s been known as the liberal international order, which, of course, ushered in an era of relative global peace that saw global trade, global cooperation, and global supply chains all expand.
But as I’ve been talking about for probably a few years, at this point, the pendulum swings on a 250 year time frame, from centralization to decentralization. We’ve been talking about this maxing out around 2025, and we’ve already been seeing signs of this since at least 2016, which is sort of when it got into that window. I think the signs that we saw in 2016 were Trump being elected an outsider, Brexit happening over there, and we’re seeing the globalist push that’s failing.
It was always doomed to fail. Now, the globalist push was always doomed to fail from the start. The spread of liberal democracy around the globe, which is essential for building that order, it faced strong resistance because of nationalism. People didn’t want globalism. They wanted their own country nationalism. This emphasizes, of course, self determination. Maga, make America great. What’s best for us. Now, many of the targeted states resisted the US efforts to promote their liberal democracy for any number of reasons.
Of course, the US has been dropping bombs on the Middle east to promote democracy. Additionally, problems arose because of the liberal world order calling for states to delegate substantial decision making authority to international, you know, the WEF, and to allow refugees and immigrants to move easily across borders. Globalization, which, of course, we’re just now starting to see the long term effects of this right now. Now, looking at the world through this lens, US led order, you can see how the situation with China, Russia, Ukraine, and now in the Middle east, they’re all starting to fit together like a puzzle as all this plays out.
Now, I don’t want to recap the whole Russia Ukraine situation, so let’s just jump right to October 7 and the attack on Israel by Hamas. Now, what really happened? Was it instigated? Was it planned? Was it known about for a long time who caused it? Who had the incentives, et cetera? I could go on and on on, know we could theorize about this, but let’s just jump to the topic at hand.
From the eyes of the globalists. I’m talking about the WEF, the UN, the US, the UK led order. You’re seeing that their grip. They’re watching their grip of globalism and being able to hold power and to control the global world order. It’s ending. The financial markets are at their breaking points. The political elections across all the democratic world, whatever it’s left of, they’re all swinging to what they call the far right.
Friendly nations with trade agreements are joining the BriCS coalition. Now, how does the Houthi attacks on global shipping fit into all of that? Now, I want to read something from my friend Tom Luongo. I’ve had him on the show a couple of times from gold, goats and guns. He said, quote, the british and old continental Europe understand completely that globalism is dependent on global shipping. On its face, shipping is far more efficient and less vulnerable to sabotage, ultimately, than multi thousand long pipelines.
If you blow up or hijack a ship, you lose a ship, you blow up a $55 billion pipeline, and that changes the map entirely. That was the lesson of the Nordstream bombing, to remind everyone of how fragile physical infrastructure is. So, to protect global shipping, which traditionally is controlled by the major european shipping companies in the city of London, insurance industry, attacks on physical infrastructure like pipelines, railways, refineries, et cetera, makes perfect sense.
Blow up ports like Beirut, controlled by your enemy, and then you force the world to go through your ports, the ones you control. What I’m suggesting now is that Iran, China, Russia are going after the idea that shipping isn’t as vulnerable as physical infrastructure. In fact, the US empire is a naval one, just like the british one was. They are modeled in the same structure and worldview. The US is the inheritor of the british maritime empire.
Okay, so what he’s saying is, take away the force and power of the navies to keep peace, and then stitch the eurasian landmass together, like with the Belt and Road Initiative, and then you’ve got a whole new world, one without the US and the UK leading the way. Now, the question is, will the US be able to hold on to the global order? And it appears, no. At least not by war, not by force alone.
Now, I did a video several months ago with Dr. Robert Malone where we discussed the fifth generation of warfare. We’ll link it here, put it in the description down below and how we talked about how times have changed and how the US has never won a war since the fourth generation of warfare, and now we’re in the fifth. So if you’re interested in that topic, it’s well worth your time to go watch it.
Like I said, I’ll put it in the description down below. And also, just recently I had an interview with Colonel Douglas McGregor where we discussed the US military capabilities and how the old order, the US and the UK navies, how the militaries, they’re just not equipped for today’s battles. I’m also going to link that in the description down below. Again, I highly recommend this eye opening conversation, but the summary is that our old industrialized military think like carrier groups.
It’s outdated in today’s age of technology. Just this week we saw several stories of how the Houthis are assaulting the western warships with drones. These drones are estimated to cost like a few thousand dollars. And these drones know they’re easily intercepted by the US and the UK coalition warships, but it comes with a massive cost. For the warships to defend themselves, they use anti air missiles and they’re estimated to be over $1 million each.
So what this means is the Houthis, the rebels, can keep the attacks coming, right? They can do it super cheap, while watching the western warships blow through their expensive arsenals. So if the rebels can launch drones for a couple of, they’re able to attack a billion dollar warship that require million dollar anti air missiles to defend themselves against them, then this means the Houthis can keep the attacks coming, and again on the cheap, while the western warships blow through their arsenals.
And the question is, how long do you think the US can keep this up at this rate? And the answer is, not very long. Even with the money printer set all the way up to high speed. So either one, the US, the UK, Davos, globalist neocons, they continue to wage war and print an obscene amount of money, which means more inflation, or two, capitulate and allow the US led order to fall.
And we can all hope that afterwards there’s enough order for at least some global cooperation. Now, just my comment thrown in here. I’m always for cooperation over coercion. I believe in win wins. I believe that the US’s forced order over the last decade when we should have been celebrating peace, celebrating cooperation is a great part and reason why we’re here today. Turns out when you sanction, punish and isolate enough people, they go make their own party.
Now, you might be asking yourself, now, why does this matter to me? Right? This is probably on the other side of the world. Why do I even care? Because you care. Because what’s at stake is your standard of living. That’s what’s under attack. As we witness the end of the global led order. What we do know, regardless of how this turns out, we’re going to have higher prices on goods and services, we’re going to have less options, we’re going to have less selection of goods and services.
Now, we’re already starting to see it, right? We can already start to see the ships are being forced to reroute around the Suez Canal. As ships reroute and they’re forced to go around the Red Sea and they’re going through different geographic choke points, then prices go up. Consider about 70% of all shipping is conducted on a long term contract. Think about a cargo ship as sort of being like a shuttle between two different ports.
The further they have to go, the longer it takes and the more expensive it is. And so if the ships have to reroute around the Suez Canal and are forced to go around Africa, that adds 20 plus days to the route, which means massive cost increases. Now, if a ship could make, let’s say, six runs between port each year, but now with the extra distance, it means they can only say, do four runs per year with the current conditions.
Now, to make up for this shortfall of runs, excess shipping capacity is contracted now on the spot market, meaning short term, because now it’s way too hard to plan out in the future. And now we’re seeing spot rates. They’re shooting up worldwide. As a matter of fact, they’re up 85% in the last two weeks alone. It’s the largest two week jump since this index was started back in 2011.
Way worse than what we saw during the pandemic. And it’s not just the time, right, the extra man hours that they have to pay and of course, all the extra fuel. Now, because of the problems in the Red Sea, commercial ships are forced to pay an exorbitant war insurance rates. So now the insurance rates are up 300% to 500%, which of course means more expenses. And when, of course, that happens, everything starts to break loose.
For example, we just saw an announcement that Tesla and Volvo automobiles have paused their output as Red Sea shipping cris deepens. We saw chinese rare earth element prices hit a 20 month high on supply worries, which, of course will push the timelines and the prices of all types of electronics up. And as all of these ships and navy patrol happens, of course, oil demand goes up and oil prices go up.
Everything goes up. So what happens next? Well, I don’t have a crystal ball. It’s not super clear anyway, and I think the trend stays intact and the US led global world order continues to crumble. The pendulum, it’s maxed out at centralization and it’s now swinging back to decentralization. Now I feel optimistic. I feel hopeful that the war does not continue to escalate. And I hope, I feel optimistic.
I pray that cooler heads prevail. Although when I look back through thousands of years of history, that’s not always the case. In fact, history shows that this last sort of 80 years of somewhat peace is more of an anomaly than what the standard has been. But regardless, I believe that supply chains, they’re going to take more hits. Shipping is going to get more expensive, commodity prices are going to escalate based on, one, more demand and two, less supply.
This means inflation will continue to rise through the rest of the decade. And unless you make moves to either one, protect your wealth from inflation, and two, or even more, increase your income and investments to rise with the cost of living, with the increases that we see then, your standard of living is going to continue to fall. Now, in my opinion, the best way to do this is with scarce assets first and energy intensive assets second.
And of course, you can also use debt and leverage responsibly when you can to get outsized returns. But what do you think? Do you think we’re headed for war? Or do you think cooler heads will prevail? And what does this do to inflation for the rest of the decade? Let me know in the comments down below. Of course, as always, give me thumbs up if you like the video.
If you don’t give me thumbs down, that’s okay. But at least tell me why in the comments. Hit subscribe if you’re not already subscribed. And that’s what I got to your success. I’m out. .