Author Archives: JP Geonomics

About JP Geonomics

Retired general surgeon. Interest: real nutrition, not processed and synthetic food; true history, not historical lies; true economics based on energy flow, as all life on Earth is a manifestation of energy derived from the Sun. No Sun's energy, no life on earth. Geography, where human interactions take place, both good and evil, where civilizations arise and fall. But above all, the pursuit of truth.

Gold, Silver, and Geo-economic Bipolarity

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After the official dissolution of the USSR, the world became unipolar for about nine years. Under Yeltsin, the Russian Federation, like the Soviet Union before it, was falling apart. The US-NATO bombing of the Federal Republic of Yugoslavia in 1999, an illegal act, must have sobered Yeltsin up. He appoints Vladimir Putin the new Premier of Russia. Under Putin, the bipolarity which had existed since 1945 between the US and the Soviet Union, began to be restored. In 1999, Russia was very weak.

The plan of the Anglo-Americans, that is of the US, Britain, Canada, Australia, New Zealand plus Israel, was to destroy Russia, and to partition and exploit Russian wealth. Russian-Jewish oligarchs, such as Khodorovsky, Berezovsky and others were in the forefront, helping the US in the destruction of the country. Poverty became rampant, suicides and alcoholism increased. Demographics collapsed. White slavery organized and controlled by the Russian-Jewish mafia became a booming business. Russian, White Russian, and Ukrainian girls were servicing the world, all the whore houses of the world. Russia was on its knees. The US and the dollar would rule the world. But, immoral, unethical, and evil plans never, never work out. Just look at history. Look at Hitler’s Germany…

Bipolarity is a natural phenomenon. Everything in Nature is bipolar. Earth is a sphere with two poles, North and South Poles. Without bipolarity, the Earth would not exist and rotate around the Sun. There is hot and cold, positive and negative, light and darkness, etc.

The geo-strategic and geo-political situation in the world is very unstable. The stronger side, the US and its allies are stronger than Russia. Let me explain; there is disequilibrium in the world. Because one side feels stronger and that is the US, even though it may not be stronger. Because of this feeling of being stronger, it is very aggressive, and wants to impose its will on the rest of the world, and Russia is opposed to that. China is also opposed to US hegemony, but in many ways it is developing a sort of Modus Vivendi with the US. There are no sanctions imposed on China and its leaders. The bipolarity exists between Russia and the US and is filled with immense antagonistic anger. Just look at the presidential candidates of both parties: they want war with Russia now, if it does not obey, rather than tomorrow. The exception is Donald Trump, and that is why he is liked by the American People and hated by the ownership class.

Russians have lost all trust in the US, and the way the US has broken all its promises to the Russians, who would blame them? Russia, the US, and the rest of the world know that the Achilles Heel of US power is the dollar. In the Trojan War, the goddess Athena whispers in Paris’ ear the Weakness of Achilles, and that was his heels. Paris, the lover of Helen of Troy is forced to fight Achilles because Achilles killed Paris’s brother, Hector. Paris kills Achilles because Paris knows Achilles’ secret and his weakness.

Russia knows the weakness of the US, and is buying gold and shunning the Dollar. Other countries, including China, are following Russia’s lead. When the world starts abandoning the dollar in earnest, gold and silver will sky rocket. Gold and silver will not be available at any price. To protect the dollar as the official currency of the world, the US will try to entice Russia into a general, possibly, nuclear war. My analysis is very, very accurate and true, but only time will reveal that.

The Dollar Armageddon

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The essential plan of the West is total domination of the Earth, which would result in the flow of all natural resources and all natural wealth to the International Community of the West from the rest, as was done under Colonialism. This new phase of exploitation is being carried out under the banner of Globalization. The Anglo-Americans, the British Empire and the US, were the organizers of the new financial system in 1944 at Bretton Woods, New Hampshire, US., today known as the Bretton Woods Agreement. The chief players were John Maynard Keynes of the UK, Harry Dexter White, and Henry Morgenthau Jr. of the US Treasury.

The Anglo-Americans realized that the Colonized World wanted to be decolonized and independent, and since they could not prevent decolonization, they decided they could slow it down and install their own puppets. Any new leader who rebelled against Western control would be overthrown or even killed. Winston Churchill proclaimed the Cold War against the USSR in 1947 in Fulton Head, Missouri, USA. Patrice Lumumba of the Belgian Congo comes to mind. He was impaled and killed in 1961.

Globalization began. Beautiful phrases, such as “Food for Peace” programs were used to entrap newly independent states. Foreign Aid was used not to help but to enslave. The International Monetary Fund{IMF}, and the World Bank were the chief agents of debt enslavement.The Cold War was in full swing.

Despite the massive destruction of the USSR caused by the German invasion in the Second World War, the basic living standard of the Soviet Union was higher than that of the US. Housing was tight, and families lived together in cramped quarters because of the war destruction, but the Soviet People had jobs, free education, free health care, one month vacation, and one year maternity leave with pay. Public transportation was available. Just compare the metro systems of the two countries in the nineteen fifties. Basic consumer goods were available, but an abundance of consumer goods was not. The Soviet People had job security and a sense of serenity which was not available to the West.

Western policy makers decided to push three things on the world: abundant consumerism vs socialist austerity, wide spread debt at home and abroad, and world-wide militarization as exemplified by NATO, SEATO, and CENTO*; in other words globalization. US banks and corporations were everywhere. American Culture, food, and military bases were everywhere; the US was omnipotent. Credit cards were introduced in the 1960’s. (Remember the commercial for American Express? “Don’t leave home without it.”) Western corporations yearned for profit and huge profits were associated with cheap labour. Western factories were moving East to China, when China opened up in 1979, and to other countries of the East and South as well.

Wages in the US were deteriorating for the working class since the early sixties of the last century, but the US corporation has been doing great. In the 18th and 19th centuries Western corporations were moving slaves from Africa to the plantations of North America, the West Indies, and South America. In the latter half of the 20th Century and the beginning of the 21st Century, corporations have been moving their plantations, factories, to the slaves. 95% of Americans today belong to what I call the Precariat Class, a totally dispossessed economic class.

In 2016, Americans still don’t have tax based universal health care, no free education of superior quality, no affordable housing, no public transportation, and outright home ownership is only around 11%. No wonder Americans are angry, and this is why Donald Trump is winning. The ownership class cannot stop him in an “honest way”, so they will try to stop him either by hook or by crook. Massive demonstrations may occur in defense of Trump. Martial law may be imposed, and the presidential election may be postponed or even cancelled.

Economic conditions are no better. Real unemployment is high, anywhere from 20% to 42%. Wages are stagnating. Ninety million Americans are not working. Obesity, a side effect of the American economic system, is in epidemic mode. Sixty six percent are obese and thirty seven percent are morbidly obese. Chronic diseases such as diabetes, hypertension, cancer are rampant. Life expectancy is going down. Basic infrastructure is collapsing. People are over medicated. Grocery stores are full of embalmed, genetically modified food ( but beautifully packaged!). All for profit, and without giving a damn about people or the environment. Just look at Flint, Michigan and their drinking water. The US, the hope of mankind, is becoming a third world country.

The world economy is no better. Much of the world is either in severe recession or depression. The Baltic Dry Index has imploded, with slight improvement lately. World consumption has collapsed, hence massive slowdown from South Korea to Germany. Japan is in perpetual depression. China is slowing down. Latin America, Africa, and South Asia are either in near or full depressions. Canada, Australia, the European Union are either in severe recession or are entering one. The Ukraine is on the verge of exploding. The Middle East is a cauldron that will enlarge. The only area of stability is Russia and the Commonwealth of Independent States. Sanctions against Russia are great blessings in disguise. Import substitution and self reliance are engines of growth and power. Presently, Brazil and Venezuela are being destabilized from outside and inside.

In summary, unnecessary consumption is collapsing world wide. Debt in dollar terms is still growing but at a snail’s pace. World wide trade is collapsing. Countries with an independent foreign policy such as India, Iran, China, Russia, and others are accumulating gold and shunning the dollar. This is a nightmare for the US. It is quite possible that some obscure company somewhere in the South Asian region will reject trade in dollars, but will accept gold or Chinese yuan. Panic will set in. The dollar could drop by twenty percent in overnight trade. Gold and silver would sky rocket. Trade between the US and the world would collapse. Interest rates in dollars would rise to an unbelievable level, but would not help the dollar. The US could not import anything with its currency, but only with gold or some foreign currency which was convertible to gold. The Armageddon of the dollar is coming. The ownership elite of the US will know for the first time in its history what it’s like to actually work for a living rather than living off the suffering and labor of others. My analysis is very, very correct and true but only time will reveal that.

*= NATO: North Atlantic Treaty Organization SEATO: Southeast Asia Treaty Organization

CENTO: Central Treaty Organization

Ukraine is about to attack Novorussiya

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Violence is increasing along the line of demarcation in Novorussiya*. The Kiev Regime is planning something, and it’s a matter of war or collapse, so it has chosen attack. Heavy equipment has been moved to the front, and a new mobilization of fresh troops has taken place but the results have not been impressive. The economy is collapsing and the regime of Yatsenyuk is on the verge of self destruction. Poroshenko wants to replace Yatsenyuk with American-born finance minister Jaresko. The Americans are getting impatient, and they want action…

The US is afraid that the European Union is going to lift sanctions against Russia this year. If this happens it will mean that Europe wants a rapprochement with Russia. They realize that a future without Russia is not possible. The war in the Ukraine would create animosity towards Russia which would be music to US ears.

The second reason is that this is the last chance for an offensive by the Kiev regime against Donbass and Lugansk. They are in the same dilemma that Germany was in before the Battle of Kursk in the Second World War.

The third reason is Syria. The US and its coalition is not doing well. Turkey and President Erdogan are going berserk; they are pounding the Kurds of South East Turkey. It seems that civil war is inevitable for them. So the US hopes that a war in the Ukraine might improve its position in Syria.

Spring is here! An ideal time for war. The Ukrainians have been re-equipped by the US. US military personnel are swarming all over the country. Numerous mercenaries have been in the East. Also, both sides have realized that the situation can only be resolved by war. The Minsk II Agreement was never honored by the Ukraine, but the failure has been blamed on Russia.

When the Ukrainian attack comes it will be massive, but the Novorussiya line will hold. Donbas will then counter attack in three directions: Kiev, the River Dnieper region; Mariupol, Odessa region; and Kharkov. People will join the Donbass Army, and the Ukrainian Army will mostly desert. The Kiev regime leaders and the oligarchs will try to escape to Canada, Israel, the US, and some other countries. Many will be caught and punished. The Ukraine will take its rightful place in the Commonwealth of Independent States. Only time will tell.

*Novorussiya is the region of the Eastern Ukraine which is in rebellion. It consists of the two provinces of Donetsk and Lugansk

Donald Trump, A Force of Nature

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In previous posts I have stated that the US socio-economic system is based on three economic classes: the ownership class, 1%, doing extremely well; the overseer class,4%, doing quite well; and the PRECARIAT class, 94%, doing very badly. The middle class is gone or it never existed. What existed from 1945 to 1980 were high paying jobs which were the envy of the world. I do believe that 1980 was the first year that the US experienced annual account deficits, and they have been negative ever since on a larger and larger scale. The Precariat class is getting angrier and angrier.

If one watches American media, one sees the members of the overseer class bloviating and pontificating about how things are great. Occasionally, they will have members of the ownership class on these programs in whose presence they will prostrate themselves.

2016 is the Presidential Election Year and the Precariat class has a chance to express itself. They are up against the status quo. All candidates, Democratic and Republican, are beholden to the ownership class or oligarchy except for one: Donald Trump. Mr. Trump is very unusual in that he is very intelligent, emotionally honest, has a sense of justice, and appears to be very common as if he were a member of the Precariat class. In Mr. Trump, they see hope. The Republican establishment is in panic mode. The modus operandi of the establishment is no longer working. If the ruling elite allows the democratic process to continue, Donald Trump will win the Republican Nomination and the Presidency of the US. He might just be the person that will be able to restructure the US economic system and bring peace to the world.

If the oligarchy, also known as plutocracy, tries to prevent him from becoming the Republican candidate, violence and revolution are inevitable. The Precariat Class will say: BASTA. If an economic black swan occurs, the upheaval will be inevitable. Some advice to the plutocracy: embrace The Donald, A Force of Nature, he might save your sinful souls and the nation. Only time will tell.

A coveted prize, the Litani River of Lebanon

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The Middle East has plenty of oil and gas, but water is in short supply. No country feels the lack of a natural water supply like Israel. Israel has only one river, which it has to share with Jordan,and that is the River Jordan which is being gradually depleted as it empties into the Dead Sea. Some natural water comes from the Syrian Golan Heights captured in the 1967 War, and desalination of sea water is another source but it is rather expensive. So, Israel is forced to import water, almost close to half of what it needs, from Turkey.

Israel is highly advanced technically. It also has thriving agriculture with migrant workers from Africa. Both sectors use large amounts of water. The rate of water usage constantly increases, hence the constant need for more water. The adjacent state of Lebanon has fairly abundant water resources.

Israel is probably the fourth most powerful country in the world. It has nuclear weapons, a delivery system Jericho rocket range of 11000 kilometers, and a sea based missile system on diesel submarines supplied by Germany. It also has an anti-missile system, called the Iron Dome. It produces its own tanks, The Merkawa; its own jet fighter, the Kfir, plus other high tech weapons. It also gets most of its modern jet fighters from the US. The Israeli Defence Forces are highly trained and motivated. So Israel has everything except the water, and that is the problem. War over water is inevitable; the Litani River of Lebanon is in play.

Israel wants to play the victim, it wants to claim it had no choice. Its main opponent is Hezbollah of Lebanon. Hezbollah is well armed with modern weapons, including missiles which can reach any part of Israel. Hezbollah is presently helping President Assad of Syria. They are battle tested and will fight an asymmetrical war. The outcome could be very uncertain. Only time will tell.

The role of oil in geo-economics

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The Indios of Latin America call petroleum [ the oil of rock], the blood of Mother Earth. Oil comes from the innards of the earth and fills numerous huge caverns as it seeps to surface. It is not dead trees and animals. The discovery of oil in Titusville, Pennsylvania in 1859 changed the world. The individuals and countries who controlled the petroleum resource had obtained such a power that is almost unimaginable.

Oil is not only fuel, but also building material. It is the raw material for pharmaceuticals, for cosmetics, for plastics of all kinds, for clothing of all kinds, and many other products. It is also the essence of US power. After the October War of 1973, which Israel was about to lose, a massive US military resupply intervention ordered by President Nixon saved the day. The US was able to convince OPEC to price oil in US dollars. Overnight, the Dollar was not only backed by the full faith and credit of the US Government, an empty promise, but also by the most valuable commodity for the modern world, OIL. The dollar became the most powerful instrument of US Power and it no longer needed gold. President Nixon was a great President. His reward: Impeachment.

Entering the New Millenium, the World and the US have faced new economic problems. The economic meltdown of 2008 led to a so called “Recovery” from which the world has never recovered and the US economy is still ” recovering…”

The recovery is impossible, because by decreasing the price of oil intentionally to punish the Russians , the world’s liquidity started to decrease. There is a shortage of dollars. Value of the dollar went up. Debt burden of the Developing World increased and is becoming unbearable. To service the debt, they had to sell their natural resources at any price. The price of the commodities has collapsed. The Third World countries, especially the oil producers have decreasing revenues to buy manufactured goods. Hence, China, South Korea, Japan, and Europe are slowing down, and that further puts pressure on the commodities, especially the Oil. Also the first world economies of Canada and Australia are in collapsing mode.

Ivy League economists are gloating that lower gasoline prices are positive for the economy, but they never ask why consumption of gasoline is decreasing in the US if there really is a recovery. It is not dropping because of electric cars or modern public transportation system, which does not even exist in the US. The consumption of gas is dropping because people have no money. The US has three economic classes: ownership class, 1%, doing exceptionally well; the overseer class,4%, doing well; and the Precariat Class, 95%, doing very poorly and not being able to afford gas.

The world may be entering a new and very severe economic winter or even a new economic ice age because of human evil, which is using oil as an instrument of economic war. Only time will tell.

The Precariat Class

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In my previous posts I stated that the economic system of the US is based on three pillars of paper, and all three are based on debt. The three pillars of paper are the dollar, the bond and the stock market. If one falters, all three will collapse, and the economic system which is so blindly venerated will collapse. The capitalist system of the West has become totally parasitic, and it no longer can grow at the rate that is needed to sustain itself. The debt or usury rate has to grow. Every year the growth of debt has to be much bigger than the previous year. If debt grows but not as fast as in previous years crisis develops which may lead the system into total collapse. This is happening right now.

The Western economic system since 1980 has had no real growth. Immense debt growth has been used to claim that there was real growth. Reaganomics was the last “hurrah.” The middle class has collapsed because the good jobs have disappeared. Now we have three economic classes in the US: the ownership class {one percent], the overseer class {five percent}, the Precariat class {ninety four percent}. Precariat means uncertain in Latin. Ninety four percent of Americans live in great uncertainty, hence, the Precariat Class. The country is decaying: infrastructure, education, health, housing. The Precariat class senses that there is something profoundly wrong with the country, and that it will get worse. No recovery but great upheaval is awaiting the country.

Turkey is on a suicide mission

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Turkey’s leadership is in hysterics. By shooting down a Russian plane over Syria, it wanted to provoke a confrontation or even war between NATO and Russia. Turkey hoped to be a key player in the confrontation, but this attempt did not succeed. It has been an overall failure. What the Turks do not realize is that they are on the side of lies and deception. If Syria, Iraq, Iran, and Hesbollah of Lebanon were to be destroyed, the chief beneficiary would be the State of Israel. The above mentioned countries would be fragmented into small sheikdoms under Israeli control. In this arrangement, Turkey would only play a subordinate role. All the wealth of the Middle East would be in the in the hands of Western Corporations. All the land between the two rivers, the Nile and the Euphrates would be under Israeli control. The Israeli Flag symbolizes this concept which may occur in the not too distant future. The US definitely supports this policy. That is why the US, Israel, Turkey, Wahabi Saudi Arabia, and the Gulf States support ISIS. The US wants to use Turkey as the spear against Syria and Iraq, and indirectly against Iran and Russia.

Would Turkey be an effective spear of the US in the Middle East? That is a big unknown, because, Turkey has a huge internal problem called the Kurds. Kurds account for about 25 percent of Turkey’s population, and that is around twenty million people. All of South East Turkey is Kurdish. Kurds want greater autonomy, if not total independence. Turkey has a powerful military that has never been tested. For Turkey, to so call “liberate Aleppo” it would need a force of at least 25 to 30 thousand. It would have to face the Syrian Army which has rejuvenated itself. Nothing rejuvenates an army more quickly than a string of victories. In the last six weeks, the Syrian army has had a series of successes. Helping the Syrian Army would be Hesbollah of Lebanon, the Iraqis, the Iranians, and the Russian Aviation. The Saudis claim they would like to fight, and they may, they would enter Syria via Jordan. The Iraqi Shias would destroy them. The US, Britain, and Israel would help the Turks. NATO would be neutral because it would lack unanimity.

The war will be bloody. But the morality and ethics of the Universe will be on the side of Syria. The Turkish incursion into Syria, if it takes place, would be a suicide mission. The morality and ethics of the Universe are on Syrian Government side because it’s defending the independence and dignity of its people. The crucial battle for Aleppo is taking place. Syria and its allies have an upper hand. US is calling for cease fire because its side is losing. ISIS and the others are on the run. The city of Aleppo is about to be liberated by Syrian troops. The US wants cessation of fire so its side gets re-enforcement and supplies from Turkey, or Turkey intervenes directly. It is not likely that Syria and its Allies will fall for this trick.

If Turkey intervenes it will face the Kurds of Turkey, Iraq, and Syria. A Kurdish war of independence would arise in Turkey. Turkey could disintegrate. Other ethnic groups such as the Armenians would also rise up. Remember the Armenian Genocide by the Turks in the First World War One. Also the Balkan States of Serbia. Montenegro. Macedonia, Greece, and Bulgaria might gang up on Turkey and expel it from Europe. They would recapture Constantinople. Do not doubt this, they did it once before. Two members are in NATO, Greece, Bulgaria, and Montenegro is being offered membership. Turkey, of course, is also a member. NATO is being enlarged on the insistence of the US, but, at the same time it is disintegrating. Also, all these Balkan States are Greek Orthodox as is Russia. Basilica, Saint Sophia, now a mosque is a symbol of Greek Orthodoxy. It would be Ironic if this happened but History is full of Irony. Irony is a cosmic manifestation of Truth and Justice. Turkey has a choice, be a peaceful good neighbor, be good to all its ethnic groups or face disintegration. Under present leadership, Turkey will most likely choose suicide. Only time will tell.

Will the dollar be defended to the end?

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In many of my previous posts, I have stated that the US Economic System is based on three pillars of paper, and all three of these are based on debt. The three pillars of paper are the dollar, the bond market, and the stock market. Of the three, the dollar is the most important because it is the essence and instrument of US power. In the 1951 film version of Charles Dickens’ short story “A Christmas Carol”, there is a character, Mr. Jorkin, who says: “Control the cash box and you control the world”. The US has been controlling the world since 1944, when the Bretton Woods Agreement was signed. The dollar became the reserve currency connected to gold at 35 dollars an ounce, and other convertible currencies were connected to the dollar. Nearly all trade and debt was denominated in dollars. Economically and financially speaking the world became dollar centric.

However, the dollar is still connected to gold, because the dollar without gold is like a fish without water. It cannot exist as the Reserve and Official currency of the world. It can only exist as the local currency in the US, because in the US, the dollar is the Legal Tender. The Petro Dollar depends on the whims of OPEC. It is not reliable. Gold, on the other hand, has the full backing of Mother Earth. Gold was created when the Universe was created, and has the Energy of the Sun. Petroleum can be consumed, but gold cannot be consumed nor destroyed.

For the dollar to be convertible into gold, gold must be available in dollar terms at any price anywhere in the world. If that relationship ceases, the dollar can no longer be the reserve currency of the world. Powerful non Western countries are accumulating gold on the cheap, at around eleven hundred dollars an ounce. In one of my previous posts I stated that gold is leaving the West and going to the rest, especially to the East.

There is a “purpose” to this lunacy. By keeping the, dollar “artificially” strong, the US is destroying the countries of the world which are indebted in dollars. They are further pushed into economic slavery by the International Monetary Fund, {IMF}, and the World Bank. Both banks are agents of the US, despite international sounding names. Indebted nations are in severe depression. They are selling their natural resources for pennies on the dollar. They cannot buy any manufactured goods from China, South Korea, Japan, and Europe, so these regions are slowing down which further puts pressure on commodities. First world countries like Canada, Australia are entering severe recession, if not depression, while counties such as Brasil, Venezuela, Argentina, and others are entering depression. The currencies of these and other countries are collapsing. Russia and China are special targets. These two countries must be destroyed or neutralized for the US to have total world domination. High Noon is fast approaching.

Russia is the “special” target. Russia has the capacity to be totally self-sufficient as it was during Second World War when it was the Soviet Union. Germany in 1942 controlled all of Russia just west of Leningrad, west of Stalingrad. The Soviet Union could not be defeated despite the fact that Germany controlled all of Europe. A similar situation exists today. For the US to control the world it must subjugate Russia. How to do that? Simple: economically. The first stage was to tear the Ukraine from Russia. So far it has not succeeded. The Ukraine is a political, economic, and moral mess. It is on the verge of collapse. When the Ukraine collapses, people will rise up, take over, and join Russia. Nuclear war against Russia is unthinkable for it would mean catastrophe for Humanity and all life on Earth, although the possibility of nuclear war is at its highest ever. The only alternative is economic strangulation.

To strangle Russia you simply have to tear it apart economically. Because of the Ukraine and Crimea, sanctions were imposed by the West and the countries closely associated with the West such as Japan. The Russian currency was attacked and devalued but not destroyed. The oil price was made to collapse with the help of Saudi Arabia and Gulf Arab States. Military pressure was applied on the president of Syria. Propaganda against Putin was increased. Russia calmly responded; counter sanctions against the West. They are hurting badly. Devaluation of the Ruble is essentially positive, but the low oil price is not. Russia is the number one oil producer in the world and exports two thirds of its oil. There is a cushion of profitability. Russia suffers but will not buckle.

Russia is fighting back. It is avoiding the dollar like the plague. It is signing trade deals with other countries in their respective currencies. It is developing its own SWIFT,or Society for Worldwide International Financial Transfers. It is also developing worldwide tele-communication systems which exclude the West. With the help of Iran and Hesbollah it is successfully fighting ISIS in Syria. Yemeni Houthis have check mated the Saudis in Yemen. The oil price collapse which the Saudis helped to engineer is hurting them economically. Rebellion is brewing in the country. The Shia, in the Eastern Provinces where the oil is, are very restless. Foreign workers and native Sunnis are also very restless. In one of my previous posts I stated that Saudi Arabia will first implode then explode. This will be very negative for the dollar.

China is being courted to let the renminbi join the IMF currency system which would enable the dollar to continue to be reserve currency of the world. China will play the game even though it does not trust the game because it has no choice; it is trapped in the US financial web. China is trying to extricate itself slowly from this trap. China is buying gold and selling US Treasuries. It is expanding non US trade and aid using the renminbi; the dollar is under attack.

But the US is fighting back. The TPP, Trans Pacific Partnership, was negotiated with some South East Asian and Latin American countries. Japan, Canada, Australia, New Zealand, and Mexico are included. The idea behind the agreement is to consolidate the use of the dollar in trade. A similar agreement is being negotiated with the European Union, the Trans Atlantic Trade and Investment Policy. Will the US succeed in keeping the dollar official currency of the world?Nobody knows.

If the dollar is dethroned, it will be catastrophic for the US. The US will lose the instrument of enslavement. It will no longer be able to exploit the rest of the world through usury. It will no longer be able to finance itself without inflation, followed by hyperinflation. It will no longer be able to maintain military bases in other countries and project its power. The US stock and bond markets may collapse, and the dollar may follow. The people who control America are strong believers in the saying: “It is our way or the highway”. “High Noon” is around the corner. If the US fails, it will become the third world country of North America. In many ways, it already is. Only time will tell.

The velocity of money and the Baltic Dry Index.

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The world economy is dying. Powerful people of the world are in denial. They think they will be able to correct the situation, but the world economy cannot be saved. The two indicators of a dying economy are the velocity of money and the Baltic Dry Index.

Let us examine the velocity of money. The simple definition is the speed with which money circulates through the economy. The more dynamic the economy, the more optimistic people feel about jobs and economic security, the more they feel relaxed and the more likely they will spend, travel, feel good about the country, the government, the people, and themselves. Presently, the velocity of money is collapsing. Whatever money ordinary people earn and have they do not want to spend. Also, many, many people have no money to spend. The situation is very dire, but one would not know by watching the “evil vision”. On evil vision, attractive women in eternal spring dresses, and men in impeccable suits with or without neckties constantly proclaim prosperity. The only people enjoying prosperity are the less than one percent of the ownership class and about five to ten percent of the overseer class to which the stars of the evil vision belong. (Evil vision is TV.) There is so much discontent in the country that it threatens the stability of the country. The economy is getting worse. Just look the stock market and the high yield bond market!

Another measure of how bad the US and world economy are is the Baltic Dry Index. Just last week it dropped below four hundred. Before the “Great Recession” of 2007-09, it was registering in the several thousands. After the so called Great Recession ended, it recovered to almost 2000. Now, after seven years of recovery it dropped to below 400, in the year of 2016. Any intelligent person, non-brain washed, knows that there was no recovery. In one of my previous posts, I stated that economic recovery in the US is impossible, because the energy entering the US economic system is decreasing, while the energy needed to maintain its internal and external operations is increasing. The Reserve Status of the dollar in the world is enabling the US to maintain its operation internally and world wide as long the rest of the world is accepting the dollar. That ability to maintain its operations is based on debt. As long as the rest of the world accepts American debt there is no problem. But that is ending and that is the problem. When the dollar is rejected it will be kaput.

The Baltic Dry Index {BDI} is indicating that world trade is collapsing. Empty ships are being anchored in ports. Oil tankers, full of crude, are anchored. There are few buyers of crude. Some experts are telling it is going to get worse. Collapsing BDI is possibly signaling world wide depression. Decreasing velocity of money is indicating that the majority of people have no money to buy even basic necessities. Why are 94,000,000 people not in the labour force? Why are 47,000,000 people on food stamps? Why are wages for the non overseer class stagnant and decreasing? Why is the infrastructure of this nation dilapidated? Up until 2016, there was plenty of money for Wall Street. Now the stock markets and the bond markets of the world are collapsing. It could be that the world is entering the Economic Black Plague State. Only time will tell.