The three new Obama wars that could have a big impact on investment markets in the weeks ahead.

The president announced his first new war nine months ago.

He officially announced the second just last week.

And the third, still being fought mostly in the background, could burst into the headlines at almost any time.

Each of these is creating uncertainty, confusion and fear globally, driving massive amounts of flight capital to safe havens, leading to unprecedented dangers — and opportunities — for investors.

New Obama War #1
U.S. Bombs Syria

On Sept. 10, the president launched an aggressive campaign of airstrikes on the Islamic State in Syria (as well as

neighboring Iraq).

The danger: It would play right into the hands of Syrian President Assad, who has used Russian-made planes to bomb his own people for four long years … who’s responsible for up to 200,000 deaths in the Syrian civil war … and who has dispersed millions more overseas. That’s what I warned about nine months ago. And that’s precisely what’s happened.

The second danger: Without boots on the ground, it would ultimately fail — just as we’ve begun to see in recent weeks.

New Obama War #2
U.S. vs. Islamic State in Iraq

This war became official just last Wednesday when the president revealed that he’s going to crawl back into Iraq with another 450 U.S. troops on the ground.

Then, the very next day, White House officials hinted about the real possibility of establishing a limited number of U.S. army bases in the thick of Iraqi battlefields.

You may think this is the same old Iraq War drama, Take 2. But as I’ll explain in a moment, it’s not. It’s a brand new war.

You might also think the immediate impact of America’s return to Iraq might be the subject of heated debate.

But the fact is everyone — including the president himself — admits that it’s an “incomplete strategy,” a token gesture, and, in effect, an exercise in futility.

Nor do you have to be a master military strategist to understand why. Join me on a quick trip through recent history and you’ll see exactly what I mean …

Iraq, mid-2000s. Tens of thousands of U.S. troops battle a relatively weak, splintered al-Qaeda in Iraq. The enemy holds no territory, has virtually no weapons, no money and little popular support. Yet, the U.S. is still unable to stop the nation from crumbling into civil war.

January, 2007. Almost 132,000 U.S. troops are on the ground in Iraq. But it’s still not enough to stop the country from coming unglued. So the decision is made to begin a great troop surge.

September, 2007. The troop surge hits its peak at 168,000. Sunni tribes join the battle against al-Qaeda and other extremists. The country is finally stabilized.

Now, fast-forward to today, and brace yourself for some very shocking facts:

Fact #1. Even after the deployment the president just announced yesterday, the U.S. will still have only 3,550 troops on the ground in Iraq — only half in a training role, none in a combat role. Back in 2007, the U.S. had nearly 50 times that many.

Fact #2. The enemy, previously made up of terrorist cells, is now a terrorist nation. It is hundreds of times stronger — in terms of combatants, weapons, funding, territory, organization and tacit popular acceptance or support.

Fact #3. No one — in the Iraqi government, among the various militias, or even with the allied air forces on thousands of bombing missions — has been able to stop the enemy’s advance.

Fact #4. The fall of Baghdad to the Islamic State is no less likely today than the fall of Saigon to the Vietcong and North Vietnamese regulars 40 years ago. Today, Saigon is Ho Chi Minh City. I dare not imagine what the future name of Baghdad might be.

Fact #5. The expansion of the Islamic State is already destabilizing the region and much of the world in unpredictable ways. America’s action — or lack of action — could set off a chain of events that disrupts, or even destroys, regimes from Asia to Europe.

New Obama War #3
Future War in Pakistan

Strangely, Pakistan has not been prominent on the radar screens of investors or news commentators. Yet, it embodies the largest, most populous — and potentially most explosive — mix of forces of any country on the planet.

In terms of land mass, it’s larger than Japan and Germany combined.

Its population is 44 million more than all of Russia’s, 64 million more than Japan’s and nearly triple that of France.

Its northwest region has been a safe haven for terrorists for 14 years.

And its nuclear weapons are a prime target for all three of the most dangerous groups in the world — the Taliban, al-Qaeda and the Islamic State.

The big threats:

Looming chaos …

The real possibility that this country will become a failed state …

And the inevitable next consequence — a free-for-all zone for extremists groups.

Why?

First, internal chaos. The Center for Strategic and International Studies (CSIS) puts it this way: “Pakistan’s social coherence is challenged by a number of trends and serious crises, including economic stagnation, an energy crisis, youth unemployment, ethnic and sectarian tensions, political violence, and natural disaster risks.”

Second, unemployment. In a recent survey, a whopping 75% of Pakistani households with family members that signed up to join militant groups said they did so because they were out of work.

Third, an acute and chronic energy crisis. In most communities, the government is not even able to consistently provide basic services like electricity. This alone has shaved billions off of GDP, creating more unemployment, more radicalism and more violence.

Fourth, proximity to the Afghan war. Decades of conflict in neighboring Afghanistan have helped funnel weapons and trained fighters into the country, while wealthy donors from Persian Gulf states have funded extremist groups and hard-line Islamists in every corner of the country.

Fifth, the rise of terrorist militants,mounting up to 2,000 attacks a year against religious groups, moderates, democrats and anyone exhibiting modern values.

Sixth, the politics of violence and coercion, especially in the country’s financial capital, Karachi.

Seventh, a major nuclear arsenal.Pakistan has more nuclear bombs than the UK, Israel or India. Only Russia, the U.S., China and France have stockpiled a larger number.

When and how will Obama get the U.S. involved?

He already has! Pakistan has been the theater for the Administration’s single largest drone war in the world — and will continue to be.

All with no plan to disengage, no talk of force withdrawals. Quite to the contrary, this behind-the-scenes, “quiet” war is showing every sign of blowing up.

There are more attacks by extremists groups in Pakistan than virtually any other nation outside of Syria and Iraq.

But as we’ve seen in both of those countries …

Widespread terrorism is the obvious precursor of civil war …

Civil war would threaten Pakistan’s nuclear arsenal …

And the threat to the nuclear arsenal would be an open invite for direct foreign intervention, especially by the U.S. and its allies.

These three new Obama wars can only mean that trillions of dollars in wealth will seek safety here in the United States.

Good luck and God bless!

Martin

About Martin D. Weiss PH.D

Dr. Weiss founded Weiss Research in 1971 and has dedicated the past 40 years to helping millions of average investors find truly safe havens and investments. He is president of Weiss Ratings, the nation’s leading independent rating agency accepting no fees from rated companies. And he is the chairman of the Sound Dollar Committee, originally founded by his father in 1959 to help President Dwight D. Eisenhower balance the federal budget. His last three books have all been New York Times Bestsellers and his most recent title is The Ultimate Money Guide for Bubbles, Busts, Recesssion and Depression.

“Monday marked the 10th time during this bull market that the S&P 500 fell from a recent high to below its 100-day moving average. All 10 times, stocks rebounded over the next 1-2 days. Seven of those times, it marked the low for months. When the market’s rebound was meek, it led to some further losses.

This is worth paying attention to as a potential change in character, and a less inviting market environment for long positions on a longer time frame.”

….continue reading HERE

Summer is the season of interns and young financiers bustling through an industry several times their age. So Business Insider reached out to veterans and asked, what are you reading?

We’ve compiled their suggestions here in a list surprisingly diverse in genre, topic, time period, and style. Together, they form a comprehensive picture of Wall Street’s in and outs, and deepen the reader’s understanding of forces driving the market

We’ve compiled their suggestions here in a list surprisingly diverse in genre, topic, time period, and style. Together, they form a comprehensive picture of Wall Street’s in and outs, and deepen the reader’s understanding of forces driving the market.

So crack one open. It’ll help you get through the dog days of summer.

The Money Tsunami Returns!

Martin D. Weiss takes a look at global events and what the effect will be on your investments. What’s going on in places like Mosul, Ramadi, Russia, China and elsewhere really do affect you. Click here to read Martin’s analysis.

Drone Stocks Take Flight

Jon Markman examines the buzz taking place in the drone industry and turns the spotlight on some investments ideas. Click here to read more.

China vs. the United States?

War cycles are spreading globally. Now, tensions are building between two giants — China and the U.S. Where will it all lead? Larry Edelson examines the issue. Read his take on the situation by clicking here.

The Greek Drama

Talk about a cliff-hanger ending. In terms of last-minute plot twists and turns, Game of Thrones has got nothing over the ongoing Greek debt drama playing out in Europe. Mike Burnick takes a look at what’s going on. Click here to read more.

Is Inflation Making a Comeback?

Yes, if you know where to look. That’s the view of Mike Larson. Click here to read his outlook and other views on the direction of the economy.

The Week’s Hot News

Money and Markets columnist Mike Larson takes a look at key financial and political events around the globe after the markets close. Here are the week’s highlights:

A Big Week: Greece, Oil, Jobs …

Get Mike’s take on the big events of this past week for the markets. Click here to read his outlook.

A “Let’s Make a Deal” Market

M&A activity is heating up on Wall Street. Is it a bullish indicator or a warning sign for your investments? Mike examines the issue. Read more by clicking here.

Key Levels Loom for Treasuries … What to do

The days of continually falling interest rates appear to be rapidly coming to an end. Treasury prices fell sharply (and yields consequently rose) this past week. What’s going on? Mike takes a look. Click here to read more.

Wondering Why You’re Not Getting Paid More?

Why aren’t you making more money in your job? Click here to find out.

Best wishes,

The Money and Markets Team

At the recent Canadian Investor Conference in Vancouver, the Investing News Network had the chance to speak with Frank Holmes, CEO of US Global Investors (NASDAQ:GROW), about the gold price, gold stocks and the overall state of the market.

So far this year, Holmes hasn’t seen any real surprises from the gold price, although he noted that gold is normally a better performer in the second half of the year. When asked about what might push the gold price up, he suggested that a catalyst could be a move from China to make the renminbi a global currency alongside the euro, the yen and the US dollar.

While he admitted that the market is certainly “in a paused stage” due to the threat of rising interest rates, Holmes added that “stocks are still the place to be.”

Speaking a bit about gold companies, Holmes said that he looks for management teams that are “good stewards of capital,” and mentioned royalty companies in particular.

“I always love the royalty companies because you have a competitive advantage with that superior model,” he said. Holmes specifically picked out Franco Nevada (TSX:FNV,NYSE:FNV), Silver Wheaton (TSX:SLW) Royal Gold (TSX:RGL,NASDAQ:RGLD) and Osisko Gold Royalties (TSX:OR) as key companies. “I think that these are great companies for any investor,” he added.

On the junior side, Holmes mentioned that Klondex Mines (TSX:KDX,OTCQX:KLNDF) is “a big holding” for US Global Investors. “The CEO is very much a frugal person in how he runs the business,” he said. “I think that shows up in higher returns on capital.”

Watch the video HERE for more of what Holmes had to say.