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Dan Dorfman

Dan Dorfman

Posted: June 21, 2010 01:55 PM

Johnny, Get Your Gun

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"Give us this day our daily bread" is one of the more memorable lines from the Lord's Prayer.

Considering burgeoning global crises, such as the riots in Greece and Thailand, Iran's threat to challenge Israel's blockade of Gaza and swelling financial turmoil in one country after another, perhaps another appropriate line these days in looking ahead at world affairs might well be give us this day our daily dread.

So what's the biggest thing to dread?

A new war on top of the ones in Iraq and Afghanistan, I'm told by the Foundation for the Study of Cycles, headquartered in Albuquerque, New Mexico.

"The next war is already in the wings," says Richard Mogey, the foundation's research director.

How does he figure that? Dating back to the Napolean era (1805-1810), economic crises have set the stage for about 85% of all global wars. Mogey tells me. "And right now, there are economic crises galore," he observes.

To illustrate his point that wars follow economic stress, he cited three noteworthy examples in the United States, namely:

--1836-1838, a two-year period that produced the second worst depression (second only to the Great Depression), an era that saw more than 600 bank failures, a 32.8% decline in business activity or GDP, a lack of confidence in paper currency and a collapse of the South's cotton market.

This period was followed by war with Mexico (1845-1847) and the Civil War (1861).

--1913-1914. a two-year recession in which the economy changed from agrarian (land ownership) to industrial and which was characterized by a 25.9% plunge in GDP, a loss of productivity, a four-month closure of the New York Stock Exchange and a silver crisis. World War I (1914-1918) followed.

--1929-1933, a four-year period (known as the Great Depression), marked by a banking collapse, extensive new tariffs, 25% unemployment, a 26% drop in GDP and a stock market crash. World War II (1939-1945) followed.

One striking similarity is that all three of these periods of economic crisis ran concurrent with extremely low interest rates (as is the case now).

As for the stock market impact, wars are generally terrible at the outset, but then the market takes a positive turn for the better as companies build products for war and corporate profits balloon.

No one, of course, knows when a war might kick off, but pointing to an economic system currently saddled with huge debt, excessive spending, out-of-control deficits and high unemployment, Mogey notes the ingredients are certainly in place to trigger another one.

Where? He figures you have to look at the usual suspects, notably west Asia (the home of Iran) and east Asia (which houses North Korea).

Mogey reckons since the U.S. is playing cop everywhere, we're bound to be involved in any conflict.

Larry Edelson, a member of the advisory board of the Foundation for the Study of Cycles and an analyst at Weiss Research in Jupiter, Fla., also worries about the threat of a new war. He points, in particular, to the danger of economic stress stemming from financial panics in the banking system and credit markets.

Edelson maintains it behooves the world's leaders to come to grips with the chaos on the world's economic and financial scene and to stop playing the blame game.

"Bad things like wars can happen when the world is unstable financially, and that's where we are now," he says. "I'm not trying to scare anybody, but investors should be alerted to the very real risks and vulnerabilities."

Edelson is especially critical of certain congressmen here who are trying to put up trade barriers with China. "That's the worst thing we can do," he says, "because that's protectionism, and protectionism has a habit of instigating wars."

What I'm essentially being told is that another war is looming, that maybe we'll hear a resumption of the song, "Johnny, Get Your Gun." Let's hope not. With GIs continuing to get killed and wounded in wars in Iraq and Afghanistan, hopefully, instead, the tune will be "When Johnny Comes Marching Home Again."

What do you think? E-mail me at Dandordan@aol.com

 
 
 
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01:33 AM on 07/15/2010
like all people have comment in war in Iraq and Afghanistan, is a worst thing of the cause of economy crisis in the world. i think that it is a badly thing which effected to the poor countries.
02:43 PM on 06/22/2010
Dan,
I just thought of it. Ronald Reagan and Paul Volker plunged the world into recession in the 80s. I remember it well. Ron is reputed to have "bankrupted" the sovjetskis (even though they were not a capitalist country) and... the world ended up with the peace dividend!!! Maybe recessions are, after all, good for peace. Whaddaya think?
01:56 PM on 06/22/2010
I wonder how the Vietnam conflict and the slick willie bombing of Serbia for Muslim Albanians in Kosovo could fit into any of these cycles? These do not seem to follow the cycle path.
I think we all know when Dcik Cheney met with the lack of transparency oil boys in the Bush whitehouse what was on the radar for Iraq. Imagine that, pre 911. This is attributed to the dot.com bubble popping? Hard to purchase that as logic.
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11:49 AM on 06/22/2010
Historically, breakdowns in international finance lead to breakdowns in international trade, which leads to resources being inefficiently distributed or even unavailable to some nations, which leads to nation A for one reason or another thinking that what it needs from nation B can best be obtained by force of arms.

There's often a veneer of ideological or religious window dressing, but in a nutshell war is robbery and murder writ large.

So Dorfman's warnings should be taken to heart..
09:05 AM on 06/22/2010
All of this talk of war, even when it does not involve directly threatening an 'enemy' such as Iran, serves to put war and the activiities of the military on the front burner. In peace-loving countries such as Brazil, Vietnam and Kenya, to name a few, an article such as this one wouldn't even be printed. It's like those articles that deny Iran has a nuclear weapons program; in the peace-loving countries such as Brazil, Vietnam and Kenya, no one is paying attention to other nation's nuclear weapons programs.
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jmpurser
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08:58 AM on 06/22/2010
So how will we know when we've entered "the next war" when we've declared an open ended stateless, goalless war on "terrorism"?
09:46 AM on 06/22/2010
If you don't support the fight against terrorism you do not belong in these 50 free states.
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11:55 AM on 06/22/2010
Major Nidal Malik Hasan was the last domestic terrorist who was "successful" in murdering a bunch of people. He was motivated by none other than "the war on terror". Seems a self-defeating policy. Magnifying the problem serves to aid in their recruitment, while quietly tracking and busting them gets the job done. It's good for propaganda and solidarity and all to have a great big war on terror, but I'd rather have quiet work by police and intelligence and military just getting the job done without touting it.
07:37 AM on 06/22/2010
"What I'm essentially being told is that another war is looming"

Dan,
You sound like a member of the bomb Iran now group. It always seems that the post-war assessment of each episode of the past exposes the evil purpose for the occurance.
It may well be that GW and his girl kept the murder of Persia from taking place. But now you are told "another" war is looming. It seems as though the PNAC advocates war, uinilateral, imposed by criminal conduct and we have these people in our government. And you, Dan, you are told another war is looming. Thanks for the bulletin.
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11:58 AM on 06/22/2010
Iran has oil that's really easy to get at. As well as a position of geopolitical significance. Hemmed in on all sides by unfriendly regimes, they are almost at the mercy of the West. They can't adequately defend themselves ... yet. And nobody wants them to be able to. Hence we're likely looking at a war.
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WorldisMorphing
Jaded Iconoclast ...
08:30 PM on 06/21/2010
Ultimately there's no other war to be fought except the class war.
That one can still topple governments.
There will be a few skirmish here and there but...when the oil dries up, this will all become more apparent...

P.S. Iraq and Afghanistan are not wars...
You have a war when -two- armies are fighting... ...
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08:56 PM on 06/21/2010
Yes, the wars in Iraq and Afghanistan lasted only a few months each. They have been occupations for years, but that word doesn't fit the need of politicians to continue selling a failed foreign policy.
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Y3rMawm
veni, vidi, bibi.
01:17 AM on 06/22/2010
There is always someone left to fight.