So if you think all is calm now, or relatively calm …
And if you think that President Obama’s ending of our role in Afghanistan signals the end of the war on terrorism …
Then I urge you to reconsider your views by taking a look at what my war research is telling me.
You see, just like business cycles, or various different economic cycles, the waging of war within and between nations has definite, identifiable rhythms.
In my research on war, which has covered more than 5,000 years of war data, I’ve found that there are three distinct cycles to war.
There are the 8.8 and 17.7 cycles. They in turn are sub-cycles of a larger cycle that’s 53.5 years in duration.
The 53.5-year cycle can be seen in this cycle chart here.
As you can clearly see, the 53.5-year War Cycle nailed major turning points …
The War of 1812
The Civil War
The end of WWI in 1918
The U.S. entry into WWII
It then …
Rose during the Korean and Vietnamese Wars
And bottomed in 1995, right around the middle of the “Peace Dividend,” which resulted from the initial fall of communism in the former Soviet Union and the opening up of China’s communist economy.
The 53.5-year cycle has been turning up ever since. It should now be picking up momentum as its amplitude is not set to peak until 2027.
Now consider the shorter-term war cycles. Consider the 17.7-year cycle shown here. You can see how it too uncannily pegged important turning points, right on cue.
The Civil War, the Spanish-American War, the financial Panic of 1907, the end of WWI, the beginning of WWII for the U.S., the Korean War, the Vietnam War, and more.
Where does it stand now? This war sub-cycle is pointing directly up into 2014!
Now consider this next chart I have for you, which synthesizes the 53.5, the 17.7 and the 8.8-year war rhythms into one chart to give you a complete picture of where we stand right now.
We are right on the edge of seeing the war cycles turn violently higher, heading all the way up into the year 2019 before any lull is found.
What kind of war could we be facing? It could be …
• Another surge of terrorism
• A civil war and the breakup of Europe
• Massive civil unrest in the U.S.
• A war in the Middle East
• A war between China and Japan over the Senkaku (or Diaoyu) Islands
• A war between China and Vietnam, Malaysia and the Philippines over the Spratly Islands
• A Cyber war
• Massive uncontrolled currency wars
Or any combination of many or even all of the above!
It’s coming. You can see it in the increased tensions between China and Japan.
Between China and the U.S.
Between North Korea and the U.S.
Between North Korea and Japan.
Between China and Vietnam and other countries laying claim to the Spratly islands.
And it’s going to impact markets in ways you simply must prepare for. It will likely drive U.S. equities sharply higher. It could be the main trigger for gold and other commodities to finally enter the next phase of their bull legs higher. Click for larger version
It would send interest rates higher, and bond prices lower. It could cause all kinds of economic and financial repercussions that will either strip you of your wealth this year …
Or help you become richer than Midas.
Until next week …
Best wishes,
Larry
