I haven’t been this excited about a motley crew from a more ancient part of the world since the Somali Pirates ran roughshod over The World’s Greatest Navy™.

But it seems the Houthis have made Uncle Sam cry, “UNCLE!”

As I write this, I’m trying to stifle my laughter because this didn’t appear on my 2024 Bingo card.

Who’d have thought it?

A bunch - literally, a bunch - of the poorest, most downtrodden people on Earth have forced the almighty US of A to the bargaining table.

The United States Military simply can’t cope with the drones and rockets of the Houthis, lately of Yemen, a country that barely exists.

And yet, in the wake of the Afghanistan and Ukraine failures, it’s the Houthis that have brought the US to what some have called its “Suez Moment.”

Let’s get a grip on the unraveling situation in the Middle East and what’s at stake.

The Suez Crisis: A Review

Here's a quick summary of the original Suez Crisis to ensure we’re all on the same page.

The Suez Crisis was a military invasion of Egypt by Israel, the United Kingdom, and France in 1956. The crisis began on July 26, when Egyptian President Gamal Abdel Nasser nationalized the Suez Canal Company, which French and British interests had owned. The nationalization was a response to the American and British decision not to finance Egypt's construction of the Aswan High Dam due to Egypt's growing ties with communist Czechoslovakia and the Soviet Union.

Nasser's decision to nationalize the canal led to diplomatic efforts to settle the crisis. But when these failed, Britain and France secretly prepared military action to regain control of the canal and, if possible, to depose Nasser. They found an eager ally in Israel, whose hostility toward Egypt grew with Nasser's blockage of the Straits of Tiran and the numerous raids by Egyptian-supported commandos into Israel during 1955.

The invasion began on October 29, when Israeli forces attacked across Egypt's Sinai Peninsula, advancing to within 10 miles of the Suez Canal. Under the pretext of protecting the canal from the two belligerents, British and French forces landed their troops a few days later. The invasion was met with international condemnation. Under intense pressure from the United States, troops were rapidly withdrawn and replaced by a United Nations (UN) force.

In essence, President Eisenhower opposed the invasion and formally ended what was left of the British Empire. The French also saw their regional pretensions go up in smoke.

This hastened the pace of European decolonization in the region and led to the resignation of British Prime Minister Anthony Eden in January 1957. Nasser, by contrast, not only survived the ordeal but secured a new level of prestige among Arab peoples as a leader who had defied European colonial powers.

Unfortunately, this crisis drew the United States toward enduring involvement in the Middle East, leading to the creation of the Eisenhower Doctrine in early 1957. This doctrine pledged to distribute economic and military aid and, if necessary, use military force to contain communism in the Middle East.

The US Fancies a Chat With the Houthis

Now, the US faces its own “Suez Crisis.”

Let’s get up to speed via Zero Hedge:

In a remarkable development and about-face, the Biden administration is effectively waving the white flag in the face of constant Houthi attacks on international shipping in the Red Sea, attacks which have also involved the direct targeting of US, UK, and Western warships.

Since the attacks began last year to 'punish' Israel, and dozens of offensive US strikes on Houthi positions later, the Iran-backed group has pressed on undeterred, and the 'Operation Prosperity Guardian' coalition has no solution. Shipping through the vital waterway has collapsed, Suez fees have dried up for Egypt, and Israel's ports sit largely empty.

But now the White House is mulling the removal of Yemen’s Ansarallah movement (the Houthis) from the US list of designated terrorist organizations should the Shia rebel group agree to halt its attacks. The current international headlines strongly point to the Houthis having 'won' in a direct months-long standoff with the most powerful military in the world.

But here’s the real kick in the goolies:

"We favor a diplomatic solution. We know that there is no military solution," said U.S. Special Envoy for Yemen Tim Lenderking.

The US military has an $886 billion budget for 2024, and yet it can’t find a solution to the Houthis.

What… the… hell?

I read the transcript. Mr. Lenderking actually said that.

Of course, I’d like to know what the hell they’re spending nearly a trillion dollars on if they can’t beat the Houthis.

Failure After Failure

The failures keep piling up.

Potatohead Biden's first big mistake was the Afghanistan withdrawal, where the USG left $85 billion worth of military supplies on the ground.

Things in Ukraine look worse by the day. If not for the West’s “charity” - or as I call it, “reckless spending” - Russia would’ve declared victory ages ago.

And now, thanks to the Houthis, Western ships are getting attacked, Egypt’s revenue from the Suez Canal has collapsed, and Israel’s ports are empty.

That leads us to the worst part.

No One is Afraid of Either the US or Israel Anymore

Both countries have hardly covered themselves in glory lately.

As the US military-industrial complex is exposed as a paper tiger, Israel’s enemies are realizing that Israel is packed to the gills with poorly performing US weaponry.

Since Israel decided, despite every diplomatic rule imaginable, to bomb Iran’s embassy in Damascus, all options are on the table.

And Israel’s enemies, such as Syria, are just itching for Russia to get involved.

I wonder if the President thinks giving the Iranians their $6 billion in September 2023 was such a good idea now.

Israel has issued a heightened state of alert for its embassies around the world. Iran vows revenge for the Damascus bombing.

Oil is now above $90 per barrel. On Thursday, the major American stock markets each lost over 1%.

Wrap Up

Yesterday’s Rude was a happy one. Gold and silver took off. The miners will follow. All was well.

Today, we see some of the geopolitical reasons gold and silver rallied, and we know for sure why oil is taking off.

War is now highly likely rather than just a chance event. Mistake after mistake after mistake will do that.

The American Empire may not be dead yet. But America’s reputation is at the bottom of the Red Sea, in a watery grave.

Have a great weekend!