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Incredible must read analysis. Take away: the world is going to go "medevil". It's the only way out of this mess. Since the zero hedge layout is so bad, i'm going to post as much of the article as Diigo will allow: Jim Kunstler's 2014 Forecast - Burning Down The House Submitted by Tyler Durden on 01/06/2014 19:36 -0500 Submitted by James H. Kunstler of Kunstler.com , Many of us in the Long Emergency crowd and like-minded brother-and-sisterhoods remain perplexed by the amazing stasis in our national life, despite the gathering tsunami of forces arrayed to rock our economy, our culture, and our politics. Nothing has yielded to these forces already in motion, so far. Nothing changes, nothing gives, yet. It's like being buried alive in Jell-O. It's embarrassing to appear so out-of-tune with the consensus, but we persevere like good soldiers in a just war. Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical "recovery" and the "shale gas miracle" on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations. Life in the USA is like living in a broken-down, cob-jobbed, vermin-infested house that needs to be gutted, disinfected, and rebuilt - with the hope that it might come out of the restoration process retaining the better qualities of our heritage.

The oil bubble is beginning to burst. Blowback. 

More indication that the economic oil bubble is bursting. 

Yet another factor to contribute to the piercing of the shale oil bubble in the U.S. economy.The shale oil and gas industry in the U.S. is collapsing because its production costs can not result in profits when the price of oil is so low. Banksters have ended the flow of new well development funding. Shale oil development companies are going bankrupt by the dozens  and tens of thousands of shale oil workers have been laid off.  

Author David Malone digs into world events, suggesting that all the saber rattling over Iran and nuclear weapons is really about GOLD!   He argues that the dollar is rapidly being replaced as the world's "settlement" currency.  As a function, "settlement" is different than "reserve", but since WWII and the Basel Conference, the USA Dollar has been both the currency of "reserve" and settlement".  That is now changing, and fast! David further suggests that the Iraqi wars with Saddam Hussein were also about his use of the Euro to "settle" oil purchases.  It could also be argued that Muamma Gaddafi in Lybia was removed because he was organizing all of Africa to "settle" oil and other commodity purchases in GOLD, and not the USA Dollar. Are the Islamic wars really about oil?  Or are they about how oil purchases are "settled"? David further argues that Russia, India, China and Japan are actively pursuing a GOLD based settlement currency agreement series where the Chinese Yuan plays a central role.  Interestingly, all of these countries have cut agreements with Iran.  Which seems to have triggered the December 2011 Obama response banning any banks, both private and government controlled, from dealings with Iran.   It's increasingly looking like it's not the Iranian nuclear weapons program that is upsetting to Obama and his Bankster buddies.  It's the rapid replacement of the worthless paper USA dollar as a settlement currency. One of the interesting points the venerable "Veterans Today" news sight is making is that our military is being used to forcefully prop up an inflationary Bankster Dollar, and force oil producing countries into accepting that inflated Bankster Dollar as payment.  The one thing the International Bankster Cartel doesn't want is for the trade of important commodities, especially energy, to be paid for in GOLD instead of the worthless paper they control. excerpt: I think the stand-off with Iran in the Straits of Hormuz over sanctions is a

"Warren Buffett once referred to derivatives as "financial weapons of mass destruction", and it was inevitable that they would begin to wreak havoc on our financial system at some point.  While things may seem somewhat calm on Wall Street at the moment, the truth is that a great deal of trouble is bubbling just under the surface.  As you will see below, something happened in mid-September that required an unprecedented 405 billion dollar surge of Treasury collateral into the repo market.  I know - that sounds very complicated, so I will try to break it down more simply for you.  It appears that some very large institutions have started to get into a significant amount of trouble because of all the reckless betting that they have been doing.  This is something that I have warned would happen over and over again.  In fact, I have written about it so much that my regular readers are probably sick of hearing about it.  But this is what is going to cause the meltdown of our financial system. Many out there get upset when I compare derivatives trading to gambling, and perhaps it would be more accurate to describe most derivatives as a form of insurance.  The big financial institutions assure us that they have passed off most of the risk on these contracts to others and so there is no reason to worry according to them. Well, personally I don't buy their explanations, and a lot of others don't either.  On a very basic, primitive level, derivatives trading is gambling.  This is a point that Jeff Nielson made very eloquently in a piece that he recently published…"

The established New York credit agencies would play a strategic role in this post-1971 dollar system. During the 1970's the US Government's Securities & Exchange Commission, charged with oversight of bond and stock markets, issued a ruling giving the then-dominant New York credit rating agencies-Moody's and Standard & Poor's (and later Fitch Ratings)-a de facto guaranteed monopoly in an unregulated market, when they ruled that only "Nationally Recognized Statistical Rating Organizations" would be qualified to issue appropriate ratings, i.e. only Moody's and S&P. Corruption was made endemic to the US ratings game and Washington was party to the dirty deal. By the end of the 1970's, using the vast amount of OPEC "petro-dollars" from the two oil price shocks in 1973 and 1979, New York international banks, using London, began to loan to the rest of the world to finance imports of oil and other essentials. The New York credit rating agencies, previously primarily rating US corporate bonds, expanded into the new foreign debt markets as the largest and only established rating agencies in the new phase of dollarization and globalization of capital markets. They set up branches in Germany, France, Japan, Mexico, Argentina and other emerging markets much like the US Big Five accounting firms. During the 1980s the rating agencies played a key role in down-rating the debt of the Latin American debtor countries such as Mexico and Argentina. Their ratings determined if the debtor countries could borrow or not. Financial market insiders in London and New York openly spoke of the "political" rating agencies using their de facto monopoly to advance the agenda of Wall Street and the Dollar System behind it. Then in the 1990's, the New York rating agencies played a decisive role in spreading the "Asia Crisis" of 1997-98. With the precise timing of its downgrades they could worsen the panic because they had been suspiciously silent right up un

A must-read.