The New Axis consists of Russia, China, and Iran. The second string includes North Korea, Syria, Cuba, and other bad actors around the world. Despite all manner of sanctions and the death of a military leader, Iran is doing quite well. Its oil production now tops 3 million barrels a day. Eighty-five percent of that production goes to China.
Team Biden’s attempts at an Iran deal coupled with the hasty withdrawal in Afghanistan surely encouraged Putin’s Ukraine invasion. So far the dithering effort to send weapons there has resulted in a WWII situation of prolonged conflict with no path to victory.
Does anyone in our Capitol realize that all these recent antics are closely followed by the New Axis? A former President is prosecuted in multiple venues. McCarthy records the shortest Speakership in history. Scalise has already withdrawn as the new candidate. The House and Senate are so evenly divided that neither party agrees on anything.
Will Joe Biden and John Kerry admit there might be a problem greater than climate change? They did not do so this week. Clearly the New Axis is testing American resolve. China continues building the world’s largest Navy amid its provocations in the South China Sea.
We need a WWII all-in effort. The attack on Israel October 7 is the worst since the Holocaust. How close is the world to sliding into a similar WWII situation? That began with incursions into the Sudetenland and Poland, sound familiar?
The Administration confidently predicts we can assist both Ukraine and Israel. Each need different weapons for different fights. But the U.S. is already short on ammunition of all calibers.
The one thing the U.S. will need to make good on that promise is lots of oil production. Since Team Biden has done everything it can to reduce American energy independence, we now have WTIC up over $3 today. Exxon’s $60B Pioneer purchase is to get around Biden’s restrictions. This only makes Iran and Russian more able to carry out their terror tactics. Climate change needs to take a back seat to the obvious need for enough fuel to fly planes and power ocean transport to distant lands. Planes and ships are now powered by wind or solar energy.
Israel has formed a coalition War Cabinet. Instead of trading insults between the two parties what say we do the same? Show the New Axis unity rather than chaos and gridlock.
Higher oil prices are in store. Bond prices are completing an ending pattern but fell again yesterday. Once that bottom in price is reached, lower interest rates will occur on a country trend bond rally. Stocks have not reached a similar bottom and remain weak. Three month Treasuries with 5%+ yields look like the best bet for now.
