Notes from the edge of civilization: Apr. 13, 2024 (Precipice edition)
Conflict in the Middle East expands. Uncertainty sends gold prices soaring. More Americans are seeking second passports. Plus, how your insurance company is spying on you.
![An Iranian man celebrates with a lit flare in Tehran. The attack is the first-ever direct attack on Israeli territory, risking a major escalation as the United States pledged "ironclad" backing for Israel.](https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb688f958-1114-4f0e-b9d7-108f8d1cbcf2_2046x1359.jpeg "An Iranian man celebrates with a lit flare in Tehran. The attack is the first-ever direct attack on Israeli territory, risking a major escalation as the United States pledged "ironclad" backing for Israel.")
The much-anticipated retaliatory attack by Iran on Israel has begun, payback for the April 1 strike by Israel on the Iranian embassy in Damascus that killed 12 people, including two senior Iranian generals from the Revolutionary Guard.
Iran began to launch a barrage of drones and missiles on Saturday, most of which Israel says were intercepted outside its airspace. Reuters reports that Iranians took to the streets to celebrate the strike, which was Iran’s first-ever direct attack on Israeli territory.
US President Joe Biden apparently told Israel’s Benjamin Netanyahu, "You got a win. Take the win." Although Biden’s administration has said the US will not participate in any offensive operations against Iran, the President did reiterate that Washington's commitment to Israel remains "ironclad."
The conflict appears to be far from over.
Zero Hedge reports a senior Israeli official was quoted as saying, "Iran’s attack was a strategic failure." The official apparently added in a threatening manner, "Now they can get ready and not sleep in peace."
On the precipice of an expansion of hostilities, more regional players may enter the conflict. Then, it would seem, the whole world will not sleep in peace.
It’s no secret we love John Rubino and his eponymous substack. So when we received his Saturday night missive, based on what he was seeing on his TV screen, we couldn’t resist including it in our update today. He writes:
The psychopaths running the West and its puppets are getting what they’ve been wanting: Iran just reportedly launched “hundreds” of drones at Israel, which is considering what kind of response would be most profitable for the Military/Industrial Complex. Fun and games on the twisty road to Armageddon!
We couldn’t agree more.
He continues: “And since we can’t stop the fighting or otherwise influence events, let’s focus on what this debacle means for the financial markets.”
Rubino is inviting readers to predict Monday’s close for the S&P 500, spot gold, and oil. Call it right and winners will get lifetime subscriptions to his substack.
So, do you feel lucky, punk?
Global uncertainty, conflict, and turmoil have sent gold prices soaring to record highs, with everyone from Central Banks to Costco customers seeking refuge in bullion.
Dollar Collapse reports that Russia and China are going all-in on gold even as prices continue to rise.
The Chinese government's already implemented heavy capital controls in their country to try and keep investment money internal. And in 2021, China completely banned cryptocurrency transactions, which includes transactions linked to off-shore exchanges.
Money managers and retail investors don't have the option to choose between gold and Bitcoin in China... So they've been pouring money into Gold ETFs.
During the first week and half of April, one Gold ETF, 'ChinaAMC CSI SH-SZ-HK Gold Industry Equity ETF' halted the fund to "protect investor interests."
The fund had gone up about 40% in a matter of a week. It went higher, and people kept buying.
That's because they know the value of fiat money. Or more precisely, they know what happens when a government takes control of the financial system.
Here in the US, savvy Americans who know the value of fiat are also taking advantage of one of the most convenient ways to stack — through Costco.
As Business Insider reports, sales of bullion at Costco are through the roof:
Costco could be selling up to $200 million worth of its 1-ounce gold bars and packs of 25 silver coins every month, Wells Fargo estimated.
Costco started selling the 24-karat gold bars in August or September 2023, the Wells Fargo equity analyst Edward Kelly said in a note to clients on Tuesday, which Business Insider has viewed.
But while sales are brisk, Kelly noted that the gold bars and silver coins are probably a lost leader, bringing “minimal profit” for Costco.
As well as the low prices, Costco provides its Executive members a 2% cashback reward, as well as a further 2% cashback for those with a Costco Citi card.
He wrote: "Pricing at that level and shipping costs suggests it's a very low profit business at best."
Mainstream media are suddenly waking up to another way people are choosing to hedge their bets in the face of global instability: setting up residency outside their country of origin.
CNBC and Business Insider both carried stories this week, framing second passports as a trifle of the ultra-wealthy:
“Shopping around for a dual citizenship. Man, that is the ultimate luxury,” said a CNBC anchorwoman.
But as many of us with our eyes wide open know, having a Plan B is not exclusively a for the uber-rich.
Scripps News had a report last month that quoted Jennifer Stevens, executive editor of International Living: "I think people are considering seriously, perhaps more seriously than they were a year or two ago. What are my options? What do I need to do to get my ducks in a row?"
From second passports to residency permits, more Americans are looking to secure documents that enable them to live outside of the US. While the motivation varies from person to person, experts say a lot of folks are looking for a plan B in response to politics, safety concerns, and the overall cost of living.
"I would say that we are seeing from kind of all sides people who are just concerned about the future in the US. And so they are investigating their options and discovering what our members have, kind of, known for a long time, which is that there are great places to live overseas where the cost of living is lower and the weather is good year-round, and the pace of life tends to be a little slower," Stevens said.
If you’re just beginning to explore your expatriate options, Schiff Sovereign — which features the lively writing of James Hickman — is a good resource. Hickman has deep experience and myriad resources to help people secure their ‘Plan B.’
IN CASE YOU MISSED IT
Here’s what was happening on Collapse Life this week:
