Author Archives: JP Geonomics

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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.

Quo Vadis, Obesitas.

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Obesity is one of the major problems of the Western World. It is probably the major health problem of the US, and to a lesser extent of Canada. Basal Metabolic Index is a ratio between weight in kilograms divided by height in meters squared. It is recommended to be less than 25, above that number obesity begins. Morbid obesity is hundred pounds or more over the recommended weight. Some statistics indicate that sixty six percent of the American population is obese, and seventeen percent are morbidly obese. There are varying degrees of obesity from very mild to extreme.

Obesity is a serious side effect of the present economic system. Everything man does has negative consequences for life on earth. Human kind is destroying the life on earth. Obesity is associated with many diseases, including dementia, strokes, diabetes, heart disease, various cancers, etc. The primary cause of obesity is processed food. Processed food is dead food, nutrient poor, and loaded with toxic chemicals. Dead food is for the living dead. Fresh food is biologically alive and active. It is full of nutrients and energy.  All natural sugars, amino acids, and fatty acids are Levo or Dextro rotatory, and they easily move from levo to dextro and vice versa. All natural fatty acids are also in cis configuration, all synthetic fatty acids are in trans shape. All natural fatty acids have curvature, or cis in their carbon chain. The reason there is a curvature in the chain is because hydrogen atoms attached to the carbon chain are mainly on one side of the chain, hence the curvature. Trans fatty acids or synthetic fatty acids are straight and stiff. They are hard to metabolize or utilize to build and repair the supportive tissues of the body. They are dead and they are stored in the body; the “cemetery” of dead food in the body is obesity.

The processing of food is a highly profitable business, but with disastrously negative health results. In capitalism, the bottom line is what counts. Exitus acta probat. I used to tell my patients  that the three greatest medicines in life are: fresh air, fresh water, and fresh food. Have a nice healthy meal.

Unfortunately, obesity has a very bright future and the diseases associated with it. The processing food industry has an even brighter future, being enhanced by genetically  modified foods.

Quo Vadis, 2016?

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2016 may turn out to be a very significant year. Many thought that 2015 would be the year of the stock market crash, but this didn’t happen. Many more negatives than positives occurred in 2015 though. Stock indecis reached new highs in the first half of the year, and now at the end of the year are in correction mode. It is not likely that they will crash in the last few days of trading remaining, although they could, since nobody expects it.

On the world scene, the West and Turkey were exposed as chief supporters of ISIS, in addition to Saudi Arabia and the Gulf States. The Paris and San Bernardino tragedies should not have been a surprise. The Russian plane disaster in Egypt was a surprise but the Western press did not moan about it. The Beirut bombing by ISIS did not get much coverage. The Turkish destruction of a Russian bomber over Syria was not really condemned by the West. The hypocrisy of the West was in full bloom in the Ukraine, the Middle East, South East Asia and other places in the world.

Also in 2015, precious metals, oil, and other commodities collapsed. The dollar was strong and Third World economies were in a severe depression. Canada, Australia, and some European states were entering a depression, but Russia just got stronger. China was trying to stabilize its economy. The Yuan became an International Reserve Currency member, and even though only as a junior partner, this is just the beginning.

What will 2016 bring? It will be much more exciting than 2015. It could be the Year of Super Black Swans. The most important event that will most likely take place is the American presidential election in November. There is a lot of anger and discontent in this country that the mainstream media does not show but which will fully manifest itself this Election Year. There is only one candidate that stands out, and that is Donald Trump. He is politically “incorrect” and people love it. All other candidates, Republican and Democratic, are nothing more than cookie cutter “apparachicks”. Powerful people in the country want to resuscitate Senator Ted Cruz, but they will not succeed; Donald Trump, on the Republican side is unstoppable and Hillary Clinton will be the Democratic nominee.

The economy will play a key role in these elections. In an earlier post I stated that the present US economy is based on three pillars of paper: the dollar, the bond market, and the stock market, and all three are supported by debt. This situation cannot be sustained. The presidential election and the economy may turn out to be very ugly and a super bad Black Swan may manifest itself.

There is a war going on between Russia and the US, whether people realize this or not. The US wants to destroy Russia, leave it fragmented, and plundered. The war in the Ukraine may start any moment. The Kiev regime days are numbered. It will lash out and lose. History is on Novorossia’s side. When war starts, the Ukrainian Army will desert. Only Western mercenaries and jihadis will fight on the Kiev Junta side. The Ukrainian People will rebel and chase the Junta out of Kiev. A super Black Swan may develop in the Ukraine.

A super, super bad Black Swan may develop in the Middle East. It is sad that the West, Israel, and Turkey are supporting ISIS. There is a danger of an Israeli- Hesballah war. Hesballah is heavily engaged in operations against ISIS in Syria, so Israel may take the opportunity to attack Hesballah and get the waters of the Litani River. Israel desperately needs water. Hesballah may not be a pushover. Also, Palestanians will join in the fight against Israel. ISIS might lose the war in Iraq and Syria. Turkey has invaded Northern Iraq around Mosul. The Kurds in Turkey are rising up. Saudi Arabia is not doing well in Yemen. The US, Israel, Turkey, and Saudi Arabia may lose because they are on wrong side of History. Nuclear weapons  may be used. A super bad Black swan may develop.

The European Union is in deep crisis; it has no independent foreign policy  Economically, many of its’ countries are in a deep depression.The Baltic States, Poland, Romania, Bulgaria are in a depression. France, Italy, Greece, Spain, and Portugal are no better. Germany and Scandinavia are also suffering. The Russian sanctions have boomeranged. A super Black Swan here is not likely in 2016. A shifting of Europe from the North Atlantic to Russia is likely though, and migration will be a big problem.

Africa is waking up and wants to control its natural resources. It is shifting East. A super bad Black Swan here is not likely. Latin America is somewhat less stable. The governments of Venezuela, Brasil, and other Latin American republics will be under attack but will survive. The collapse of commodity prices and dollar debt will be a big problem for Africa and Latin America. The shift to the East will continue in this coming year.

The Indian Subcontinent will be fairly stable. The Taliban will gain strength and possibly gain power. The TAPI pipeline is being built from Turkmenistan, Afghanistan, and Pakistan to India. The Taliban will not oppose it. Iran is developing a very strong strategic partnership with Russia. This Iran-Russia partnership is one of the most natural partnerships to develop in the world. India is developing a strong relationship with Russia and Iran as well. This will continue in 2016. Putin  made a visit to Iran this year, and Prime Minister Modi of India visited Russia this week confirming the desire for this relationship.

China is developing a strong relationship with Russia. China and Russia realize they have to stick together or they will hang separately. South East Asia, despite the TPP, will move closer to China. It will develop Modus Vivendi with China. Its prosperity depends on close co-operation with China. China is the magnet that is pulling the world away from the US. A confrontation in the South China Sea is just one example. But the chances of a Black Swan in South East Asia is not very likely in 2016.

In Summary, 2016 will see increased confrontation between Russia and the US. The dollar will be under attack and gold will rise. Events occurring this year in the US will confirm that the US is in pre-revolutionary state. If powerful individuals try to eliminate Donald Trump, people will rebel. If one of the three paper pillars of the economy cracks, the whole system will collapse. The chances of nuclear war will increase. 2016 will be the beginning of the end of tall buildings, the most wasteful symbols of the system based on waste, arrogance, and greed. People will be returning to simpler things, a respect for natural things, like respect for Mother Earth. It is the only home we’ve got. Happy New Year!

 

Quo Vadis Gold?

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Gold is a symbol of power and truth, and yet it is suppressed. The reason gold is in jail is so that the dollar is  free to be the official currency of the world. It is not only essential that gold stay in jail, but that the dollar be convertible into gold at the lowest price possible. The Modus Operandi to keep gold suppressed is  called “paper shorting” of gold. Capping the price of gold has enabled the Federal Reserve to reduce interest rates to near zero and to indulge in quantitative easing to prop up stock markets, bond markets and the economy without endangering the supremacy  of the dollar.

To keep gold suppressed is very expensive and limiting. Let me explain. Physical gold must be available at whatever price the paper shorts of gold set through their daily trades for those individuals, organizations, or countries who want physical gold. The cheaper the paper gold, the cheaper will be the physical price. So, countries like China, India, Russia, Iran, and others are accumulating gold at an incredibly cheap price. Gold is leaving the West and going to the rest of the world. Gold must be available for the dollar to be convertible. The point will be reached when gold will not be available at any given price and the dollar will lose its convertibility into gold; financial panic will ensue

Before gold availability is finally exhausted, the US policy is to destroy the economies of the rest of the world. Russia was first in the line of fire because of the Ukraine. The US engineered the collapse of the price of oil and the value of the ruble. They tried sanctions and that didn’t work because Russia is only getting stronger. They tried to destroy China by collapsing their stock market and so far the results have been inconclusive. However, they have been quite successful in destroying the economies of the Third World. By increasing the buying power of the dollar, they have increased the debt burden of the Third World, hence collapsing the price of all their commodities. The Third World has less money to buy manufactured goods from China and Europe, so China and Europe in turn slow down, which further collapses commodities. So the whole game becomes a vicious circle to the down side. Most Third World countries are in a depression. But gold availability to support the dollar is reaching the exhaustion point. In order to maintain dollar dominance, interest rates have to be increased.

The Federal Reserve has no choice to do this in order to be able to defend the dollar in the future, irrespective of what interest rate increases will do to stock or bond markets. The high yield bond market is already collapsing because liquidity is drying up. The official story is that the FED wants to normalize interest rates but in reality they want to create “Volcker Momentum*” and increase the interest rates to as high as they can go. Gold will rise because it will no longer be available at these low prices to support the dollar. Gold will go as high as it will go. To support the dollar, the interest rates will rise to as high they will have to go. These will be events that have no parallel in human history. Only time will tell.

 

*= Volcker momentum is my expression. Paul Volcker was a Fed Chairman from 1979 to 1987. He increased the interest rates to near 20%, so he could reduce the inflation rate to below 5% after the US went off the gold standard in 1971 under President Nixon. My thesis is that to support the dollar to be convertible to gold, gold price in dollars must be suppressed. Gold must be kept in jail. However, this is very costly, because Gold is leaving the West and going to the rest, China, India, etc. Soon, there will be no physical Gold at such cheap prices. Presently, Gold and Silver are very cheap, so the US must increase the interest rates to protect the dollar in the future. Hence, “Volcker Momentum”

QUO VADIS? AMERICA LATINA

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Latin America is a huge region, extending from the Rio Grande in the North to Tierra del Fuego in the South. Historical Spanish America extends from the Straits of Juan de Fuca to las Islas de Malvinas (otherwise known as the Falkland Islands, presently under British control). Ibero-America or Latin America is the appropriate term, because it includes Portuguese and Spanish parts. It is a region of over seven million square miles and over seven hundred million people. It will have a great future and great influence in the world provided there is no nuclear war, but we know that some kind of war is in the making…

The first thing Latin America wants and needs to do is to achieve total geo-economic independence; this goes without saying. Latin America has been perpetually dominated by foreigners, first, Spain and Portugal as its’ original colonizing  “Mother Countries”, and then since its independence from them in 1821, by the US. As a matter of fact, around 1800, President John Adams sent a naval squadron to Rio de la Plata to demonstrate that Latin America was to be a vassal in the American sphere of influence. In 1823, President James Monroe in his seventh State of the Union address proclaimed that the US would not tolerate European Powers in Latin America, a proclamation that came to be known as ” the Monroe Doctrine”. And thus the exploitation of Latin America began and continues on to this day. In 1966, US economic entities extracted 44 billion dollars from Latin America. Gold at that time was convertible at 35 dollars an ounce. This exploitation has been very profitable although presently, it has somewhat lessened. In 1966, converting 44 billion dollars into ounces of gold at 35 dollars an ounce was equal to 1. 257,142,800 billion ounces of gold. These gold ounces converted into dollars at today’s gold price in dollars would be over one trillion three hundred billion dollars.

To maintain its position in Latin America, the US established the Organization of American States, officially as a bulwark against Communism, but in reality, an instrument to control Latin America. Canada joined this organization several years ago, but has less and less relevance to it, if it ever had any. The policy of the US towards Latin America was straightforward, and is in keeping with its general foreign policy throughout the world today:  overthrow governments which oppose US policy. First they were demonized and economically squeezed, and, if that didn’t work, they  were overthrown. Some examples of these erstwhile leaders: President Arbenz of Guatemala for opposing the United Fruit Company, aka United Brands; the attempted overthrow of the Cuban Revolution and Fidel Castro in the Bay of Pigs in 1972;  the tragedy of President Allende of Chile on September 11,1973 (the first 911), and there are many others…

Most Latin American regimes are oligarchical, but even they realize they must preserve and protect the natural resources of their countries, and they are no longer willing to submit to the US. They formed MERCOSUR in 1991 (the common Market of the South, or Southern Common Market ( in Spanish, Mercado Comun del Sur, in Portuguese, Mercado Comum do Sul). Member states are: Argentina, Bolivia, Paraguay, Brazil, Uruguay, and Venezuela. Associate members are: Chile, Peru, Colombia, Ecuador, and Suriname. Observer countries are Mexico, and an outsider country, New Zealand; the US and Canada do not participate. There are other fraternal organizations as well. The great leaders of Latin America are deeply respected and provide unity and inspiration to these nations, everyone from Simon Bolivar of Gran Colombia, Jose De La San Martin of Argentina to recent and present leaders such as Fidel Castro, Che Guevara of Cuba, Allende of Chile, Hugo Chavez of Venezuela, Nestor Kichner and his wife, Cristina Fernandes  of Argentina. One must not forget the great leader of Bolivia, President Evo Morales, President Mujica of Uruguay, and ex-President Lula da Silva of Brasil. Also present-day Presidents Guttierez of Ecuador, Daniel Ortega of Nicaragua, Dilma Roussef of Brasil, and Nicolas Maduro of Venezuela. The latter leaders are under attack but they will survive, and there are others…

Whether the leaders be oligarchical or progressive, they know they must protect their independence. They can only do that through the unity of Latin America and now joining forces with Afro-Euro-Asia. Only time will tell.

 

Dollar vs. Gold II

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In my previous posts I stated that gold does not need any paper currency, but that the dollar needs gold. The dollar has to be convertible into gold, because the gold price world wide is quoted primarily in dollars, and that’s due to the dollar being the official currency of the world. Everything in the world is traded in dollars. Just imagine the power that the US possesses by owning the official currency of the world, so it goes without saying that the US will do anything in its power to retain that authority over the financial system of the world; it will even resort to war.

The key to financial world domination is not the petro-currency status of the dollar but its relationship to gold, Nature’s Money. The Bretton Woods agreement of 1944 made the dollar official currency of the world. The dollar was pegged at 35 dollars an ounce of gold, and the rest of the world’s currencies were pegged to the dollar. The US would keep the gold and print the dollars, while the rest of the world would keep the dollars in US Treasury Notes. The US had free use of their hard earned money, the perfect scam. General Charles de Gaulle immediately saw this for the scam that it was and took action. He exchanged the French dollar surplus for gold, as was allowed by the Breton-Woods Agreement. Run on gold began, in 1971, President Nixon closed the gold window. This is how the dollar became the “Petro” currency. Nixon told OPEC to increase the price of oil as much as they could but make sure it is traded in dollars. Surplus dollars flowed into US Treasuries, more than ever before, and the US got free breakfast, lunch, and dinner. This policy continues to this day…

The Crisis of 2007-8 was very severe. It nearly collapsed our entire economic system. Massive infusion of artificial money {printed dollars} only managed to prop up the system, and did not ultimately save it. The System barely meanders. A series of quantitative easing was introduced, QE I, QE 2, and QE 3. No real improvement. QE 4 is coming down the road. During the crisis, gold rose from around 250 dollars in 2001 to 1920 in 2011. Interest rates went down to almost zero. There was the danger that if the price of gold went any higher,  that dollar would not be convertible to gold. If that had happened, the Capitalist System would have collapsed. Something had to be done.  “Paper shorting” of precious metals was begun. The dollar can only have validity if it is convertible into gold.  Presently, the convertibility of dollars into gold has a severe price. Dollar surplus countries and individuals are buying gold on the cheap.

Gold, presently, is in backwardation. Individuals and countries are paying higher prices for gold delivery now than in the future. Shortages of gold availability are coming. The price of gold may sky rocket over night. By shorting paper gold the monetary policy of the US is extremely tight. It is in essence destroying the economy of the world. Increasing interest rates is sheer lunacy. Gold, silver, platinum, and palladium will demand their rightful value which is precious. They will be not be available in any currency at any moment. The rush for Nature’s Money, gold, will be the beginning of the end of the Capitalist System, as was the rush for gold the beginning of the Capitalist System, and when Christopher Columbus first “discovered” the “New World”. If the World survives, a totally new age will begin. Only time will tell.

TURKISH BOOMERANG II

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Geopolitical changes of great significance are taking place in Eastern Europe, specifically in the Ukraine but also in the Middle East. The US wants at all cost to build the Wall of Enmity from the Baltic to the Persian Gulf, and to the Indian Ocean, possibly to South East Asia, as far as the Philippines. But for the moment, let us study and analyse the Wall of Enmity from the Baltic to the Persian Gulf: the US wants to expel Russia from the Ukraine and Syria, that’s very clear. It would also like to control Iran, but to do that, it would have to destroy it.

The US would like to reduce the relationship between the European Union and Russia to a bare minimum, but to do that it needs alternative sources of energy with which to supply Europe. The Middle East would be that source. The greatest oil and natural gas reserves in the world are located in the Middle East, and if the US and its friends were able to control those resources and their channels of delivery, it would be able to control the destinies of the entire world, East or West, North or South. So, these wars we have now in the Ukraine, Syria and Iraq are struggles for the control of the World…

Let us make some suppositions. Suppose the US and its allies win. They would end up controlling all that natural wealth, and be able to control energy supplies to Europe, China, and the Indian subcontinent. They would dictate the price denominated in DOLLARS. The dollar would become the permanent official currency of the world. In addition, if they got control of Iran, they would also control the production and export of gas from Turkmenistan. China and India would be subject to US blackmail, just as Japan was before the Second World War, with the so called ” Japanese Effect”: surrender or war. The Japanese, being proud people, chose war.They needed to get control of Indonesian oil which at the time was under Dutch control. To do that, they had to eliminate the US Pacific Fleet stationed at Pearl Harbor, Hawaii which at the time was a colonial possession of the US. By the DOLLAR becoming the permanent official currency of the world, the US would rule the world and its closest Allies would enjoy immense privilege. I will leave it to the reader or readers of this humble essay to figure out which country or countries would benefit the most…

But let us suppose the West loses. Suppose the Resistance Axis of Syria, Iraq, Iran, Russia, and Hesballah of Lebanon win. Also suppose that in the struggle going on presently in the Middle East, the Saudis and the Gulf States collapse, and the Arab Nationalists who are vehemently Anti-West win. That Turkey slides into civil war, and the Kurds, who are about 20-25 %  of the Turkish population, rise up and seek their INDEPENDENCE. And, suppose that the Palestinians start their Third Intifada, sensing the victory of the Axis of Resistance… What would Israel and the US do? Would a Third World War begin???

The majority of the world agrees that ISIS or Daesh is evil, including the US, but it is secretly supporting it. It’s been bombing ISIS for more than a year with nothing to show for it! Why is Turkey, a NATO ally, openly supporting it?  If ISIS is evil, then countries fighting ISIS are on the side of Good.  Turkey, the US, the Saudis, and the others supporting ISIS are on the side of Evil. The Morals and Ethics of the Universe are on the side of Good. It is self-evident that the side fighting for Good against Evil will win. And by supporting evil, the US will not be able to build the Wall of Enmity. Also, sooner or later the dollar will not be used in world trade. So, the Turkish Boomerang will have disastrous consequences for the world, but especially for the US…

Let us be frank. The modus operandi of the US and its allies is lies and deceptions. The modus operandi of Russia and its allies is IRONY, the cosmic manifestation of truth and justice. Edgar Cayce, an American, once predicted that Russia will become the hope and salvation of the world. Only time will tell.

TURKISH BOOMERANG

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The Turkish downing of the Russian plane in Syria is a serious provocation with unknown long term consequences. It was planned ahead by two countries, Turkey and the US, because they both support the Islamic State or ISIS. They want control of Syria, Iraq, and Lebanon by hook or by crook…

The US is building the Wall of Enmity between Europe and Russia via the Baltic States, and Poland, through the Ukraine, which I mentioned in one of my previous posts. It wants to extend that Wall of Enmity to the Middle East via Turkey, Syria, Lebanon, Iraq to the Persian Gulf and the Indian Ocean. The five pivot states of this extended Wall of Enmity would be Poland, Ukraine, Turkey, Saudi Arabia, and Israel. Lebanon, Iraq, Syria, and possibly, Jordan would be partitioned or re-arranged to serve the interests of the US and some other key countries such as Israel. But Russia and Iran stand in the way, and Syria, Lebanon, and Iraq are the battle grounds. The airspace of these three countries is constantly being violated by Israel and the US with not a peep about it in the Western press.

How have events been developing in the Middle East? The US has been bombing ISIS for more than a year, with absolutely no effect, because they were not really bombing ISIS but Syrian infrastructure. Western analysts and media were predicting the collapse of Syria and the removal of Assad. Russia, Iran, and Hesballah stepped in, and now, it seems ISIS and other groups are on the run. This panicked the US and Turkey. The US and Turkey could not send troops into Syria to help ISIS. What would the world say? Turkey was never friendly to Russia. It milked Russia via construction projects in Russia, Russian tourism, and cheap Russian gas. The Russians, being sincere, mistook this for friendship. It was far from it. The Turkish stream was a vague arrangement. The US did not want a Russian South stream, why would they want a Turkish stream? The US secretly agreed to help ISIS with which Turkey whole heartedly agreed, and which Turkey already was helping along with the Saudi Arabian and Gulf Monarchies. The US and Turkey planned this provocation, especially now with ISIS on the run. The Paris tragedy confused the situation but did not derail the planning. The plan was to shoot the Russian bomber, and accuse Russia of a violation of Turkish airspace. The Russian pilot would have supposedly been given warnings to steer clear. Imagine, ten warnings in five minutes. The Turks showed some real concern, and then shot the plane from behind. A “real stab in the back” as declared by President Putin, who knows what he is talking about. President Obama defended the Turkish action by saying that every country has a right to defend itself. Of course every country allied with the US does, but Syria not allied with the US so it has no right. This is how the world works these days.

Turkey went to NATO, crying that Russia violated its airspace, and despite repeated warnings, had no choice but to shoot the plane from behind. Turkey was hoping that NATO would use Article 5 (an attack on one is an attack on all) to confront Russia, but this did not happen. Why it did not happen is because the TRUTH sabotaged the plan. The whole world knew that Turkey stabbed Russia in the back. Vague support was given to Turkey but nothing else. President Hollande of France came to the White House on November 24 to organize an aggressive response to ISIS, but “Francois’s”   ideas were only politely considered. Today, November 26, the President of France is in Moscow conferring with Putin.

What will be the consequences of all this? President Obama has probably instructed Turkey to be tough. Initially, Russia wants a sincere  apology and compensation, but Erdogan will offer nothing. Russia should be concerned of what is going on in Ukraine, for instance the cutting off of electricity to the Crimea and the banning of all Russian flights. The Ukraine is also mobilizing troops in Donbas. A sudden Ukrainian attack cannot be excluded. Americans are training Ukrainian troops as we speak. Ukrainians are waiting for the US order to attack. Novorussia must be ready. The possibility of an ISIS attack in Russia should not be dismissed. The Black Sea passage blockade can also not be excluded,but I am sure Russia has alternative contingencies for everything.

Turkey will face some serious consequences in spite of the bravado of Erdogan and the economic losses will be severe. Russian tourists, food exports, Turkish firms working in Russia will all be lost or cut. The losses will be in the billions of dollars and will send Turkey into a severe recession, if not a full-blown depression. The world will shun Turkey for openly supporting ISIS. The Kurds of Turkey will rise up. There could be coup d’état in Turkey. Socio-economic upheaval cannot be excluded. Morally and ethically speaking, Turkey has been severely damaged. Russian efforts in Syria will intensify and this “stab in the back” will not be soon forgotten,

The US is entering a serious phase of economic crisis, and it’s just around the corner. Now, the whole world knows that secretly, the US is supporting ISIS. Whether the US succeeds in building the Wall of Enmity from the Baltic to the Persian Gulf and the Indian Ocean remains to be seen. Nemesis is waiting down the road. Many European states, large and small, will distance themselves from NATO, Turkey, and the US. Only time will tell.

 

 

How much is the dollar really worth?

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The dollar is a fiat currency. It is created out of thin air through debt. A person goes to the bank and wants to borrow 10,000 dollars and if the borrower meets the criteria of paying back the sum plus interest agreed on, the bank issues a cheque of 10,000 dollars or direct deposits the amount to his account. Money has been created out of nothing to enslave that person for 10,000 dollars which he must now pay back at a certain interest rate for a specific period of time. In other words, he sells his labour, his life force, to pay the debt. He is exploited, he is a slave. This is the essence of capitalism, and the fiat currency is an instrument of enslavement.

Initially, the dollar was a gold backed currency as were other world currencies. President Franklin Delano Roosevelt, early in his presidency devalued gold from 20.67 dollars an ounce to 35 dollars an ounce. Also, he made it illegal for Americans to own gold, unless it was in a jewelry form of 18 karats or less. The Bretton-Woods Convention made the dollar the Reserve Currency of the World. The US would keep the gold and the rest of the world would keep the dollars. Other central banks could exchange dollars for gold at 35 dollars an ounce. Gold, however, would be stored in the US and some would be stored in London. This arrangement was propped up by fear that “the Communists” would take over if the gold was not stored in the US. Publicity  made Fort Knox, Kentucky, infamous as the storage place  for the world’s non-communist gold. General Charles de Gaulle, President of France, was not fooled. He realized it was the perfect scam. He had never trusted the Anglo-Americans. He knew how perfidious they were during the Second World War II. The Anglo-Americans hated him, and of course, he reciprocated. He withdrew France from N.A.T.O. and sent French warships to retrieve French gold from the US. Other European countries followed. A run on gold followed…

The gold drain from the US followed. President Nixon closed the Gold window. This closure was permanent, contrary to the President’s statement that  it was temporary. The US was running trade deficits and the Vietnam War was draining the country of its real wealth, gold. The dollar paper drainage was no big deal, because it was only paper. The Arab oil embargo saved the dollar and the US. The US told the oil producers to increase the price of oil but just have it denominated in dollars. The excess dollars of the world poured into US treasuries and helped finance government operation. The decade of 1970’s showcased growth throughout the world but with inflation. Gold was allowed to reach its equilibrium value of 850 dollars an ounce. Silver, taken out of circulation in 1965, went to 50 dollars an ounce in 1979-80. Interest rates were high because demand for money was high. Demand for real money, gold and silver, was high. But the dollar was losing value. In 1969, one could get four Swiss Francs for one dollar, but in 1979-80 period, the Swiss Franc was on parity with the dollar.

President Carter appointed Paul Volcker Chairman of the Federal Reserve Bank. The Prime Rate went to almost twenty percent. The price of precious metals collapsed and value of the dollar rose. Money from all over the world poured into the US. By 1992, the USSR and communism had disappeared in Europe. The end of history was proclaimed. The plunder of the ex-USSR and Eastern Europe, along with the rest of the world began with increasing tempo. A unipolar world of ten years duration was achieved. In Nature, when one extreme is reached, opposite forces start building momentum, and new forces started brewing on the horizon…

Vladimir Putin was appointed Prime Minister of Russia in 2000, and the economic decay started in the first decade of the New Millennium in the West. It is now worsening and encompassing the entire world. The central player in all this has been the dollar. It has no intrinsic value like gold, land or water, but is the instrument of US power. The US wants to maintain that power come hell or high water, and in order to maintain it, debt in dollar terms has to grow. The IMF and World Bank, along with other private organizations, are working overtime to trap more and more countries into unsustainable debt and milk them for all they are worth. This is the MODUS OPERANDI of capitalism…

But opposing forces are rising, and the de-dollarization of the world has began. The World is trying to dis-infect itself from the dollar. Very interesting and dangerous times are approaching. But the US will not willingly give up its instrument of power. It is negotiating trade deals with Europe, South America, and South East Asia to insure the dollar to be the supreme currency. It is confronting China in the South China Sea, but at the same time, it is enticing  it to join the IMF arrangement of Special Drawing Right Currency. The US wants the China to row the dollar-SDR boat, and the US would steer it. Whether China falls for it or not remains to be seen. China, Russia, Brazil, Iran, and other countries that have backbone are trading amongst themselves in their own currencies. The river of history is flowing and it cannot be reversed.

How much is the dollar really worth? Nothing. It is merely an instrument of power, intimidation, and war, like aircraft carriers. And history will be unkind to both. Only time will tell.

The Rise of Iran

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It can be safely said, because it is true, that the past is the father of the present, and the present is the father of the future. It can also be said, that the past is the grandfather of the future. This is very true for a country called Persia, today known as the modern state of Iran. It is a big country in south West Asia with a population of around 82 million people and occupying an area of around 1.6 million square kilometers. I will address the nation of Iran from the time of Dr. Mossadegh to present.

Dr. Mossadegh was overthrown in 1953 by the C.I.A. because he nationalized the Anglo-Iranian Oil Company. He was an economic nationalist, hence, he had to be overthrown. In 1945, the US inherited the non communist portion of the Earth. US foreign policy was very strongly anti-communist. The US wanted to make sure that the Middle East did not go communist. The three countries that mattered the most in Middle East were Israel, Iran, and Saudi Arabia. The foreign policy of the US in the Middle East was as follows: Israel gets whatever Israel wants, and Iran, Saudi Arabia do whatever the US wants. The majority of Iranians did not want such a policy. During the Yum Kippur War of 1973 in which Israel would have been defeated had it not been for American help, President Nixon rushed supplies to Israel or Golda Meir threatened nuclear or “Sampson option”. Yes, Israel has nuclear weapons and a delivery system that can reach any point on the Earth…

President Nixon defaulted on gold and told Iran and Saudi Arabia to increase the price of oil and that it had to be sold for dollars. The dollar then became the official currency of the world and the US achieved immense power. As one character in Charles Dickens’ “A Christmas Carol” says: “You control the cash box and you control the World.” Not quite, for there are always exceptions to man made rules. There can never be violations of Nature’s Laws. He, who violates Nature’s Laws, sooner or later gets punished for it. Nemesis is always waiting. The Shah was overthrown in 1979, and the Islamic Republic was proclaimed by Imam Khomeini; Independent Iran was born. President Carter froze or nationalized one hundred billion dollars of Iranian assets in the US. Whether the US will return those assets remains to be seen.

Threats, sanctions, and embargoes against Iran followed. The excuses: Iran will develop nuclear weapons, Iran will destroy Israel, etc., etc.  But Iran continued to develop on its own.  And another truth will be stated here: self sustaining development is the true development. Do not depend on the promises of others. People, countries, individuals who believe in the promises of others become enslaved in the most devious and insidious ways possible. Just look at the countries of Eastern Europe, Africa, Latin America, and some parts of Asia.

The world is coalescing. Iran and Russia are becoming strategic partners. Their foreign, economic, and military policy is becoming co-ordinated. Most likely, their common policy will triumph in the Middle East. They will restore stability to Syria, Iraq, and Lebanon to the chagrin of Israel and the US. The sanctions and embargoes have failed. The Islamic Republic of Iran is restoring its former glory as Persia under the founder of the Persian Empire, Cyrus the Great. The past is the grand father of the future. Only time will tell.

 

 

The North Atlantic Concept is Dying.

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In many ways, the present world situation was created in the 1930’s. The Soviet Union was considered the main threat to Western control of the world. The Soviet Union supported anti-colonial struggles throughout the Colonial World, which was controlled by Western European States and the US. Hitler was appointed Chancellor of Germany by President von Hindenburg on January 31,1933. The Nazis were the largest party in Germany. Every leader in the West knew who Adolf Hitler was. German-American and British-German friendship societies were formed glorifying German-Nordic race and culture. France and other Latin Countries of Europe were not included, even though they were the main pillars of European and Western Civilization. One cannot imagine Europe without its Greco-Roman foundation. All the sophisticated aspects of the English language are Latino-French.

Overnight, Germany became the dominant European power under Hitler. France, on the other hand, was not as influential and demanding as Germany; it had lost élan, vital in the Franco-Prussian War of 1870-71. Germany became unified under the leadership of Otto von Bismarck, the Iron Chancellor. France was easily defeated, and the Emperor, Napoleon III, was captured at Sedan in northeast France. France with its Allies was victorious in the First World War but the war was highly exhausting and destructive. In the interim period between the world wars, France had weak governments of short duration. Britain was also weak, but enjoyed a special relationship with the US. France, despite being the longest running ally of the US, did not have this special relationship…

The USSR was isolated. Despite its efforts to form an Anti-Hitler coalition, Russia had been spurned. The only ally remaining to it was Mongolia. The USSR and Mongolia defeated the Empire of Japan in the Battle of Khalkhyn Gol, Mongolia in 1939. Europe was sliding towards war. The only western European leader who could have prevented the Second World War would have been General Charles de Gaulle. Had he been the president of France during the 1930’s, he would have formed a military alliance with Russia. Germany, under Hitler, then would have been contained. De Gaulle would also have been able to restore the French elan.

In the 1930’s Hitler was on the march. All his foreign demands had been met and it was Anschluss with Austria in the spring of 1938 and then the takeover of Czecho-Slovakia in the Autumn 1938, via Munich Agreement. The USSR wanted to defend the  Czech interests but was not invited to attend Munich. The secret British and American idea was to entice Hitler to attack Russia, and establish Lebensraum {Living space}, for Germany in the East, which had been Hitler’s goal from the very beginning. The wheels of war were set into motion secretly by the West. When the Soviet-German Non Aggression Pact was signed in August,1939, the West was indignant. Russia, how dare you ! Only the West is allowed such games. The invasion of Russia was then postponed, but not for long…

When Hitler attacked Poland on September 1, 1939, Britain and France declared war on Germany with reluctance. The “Phony War” followed on the Western Front. Britain and France were more interested in helping Finland in the Soviet-Finnish War than fighting Germany. After the French defeat and the British graceful exit from Dunkirk, Hitler was ready to attack Russia on June 22, 1941. The Western press gloated. Germany would win in about six to sixteen weeks. There would be tripartite control of the world, the British Empire, Germany, and the US. Germany would control the USSR land mass, Britain and the US would control the rest of the world. The US and Britain gave Germany about three years to defeat the USSR, but it never happened. By 1944, it was apparent that Germany would lose the war in the East,  and the Western Allies panicked. The Second Front was organized with the Normandy invasion to share in the division of Europe. The Cold War started long before the Second World War had ended. Operation Unthinkable was suggested by Churchill, as well as other plans by the Americans to destroy the USSR. And the Cold War never ended when USSR dissolved…

The Cold War continues today in multiple forms. NATO is expanding even though it is decaying. The Montenegro elite want to join NATO. The currency war against the ruble is raging. Oil prices were decreased in an attempt to hurt Russia. Sanctions and trade embargoes are being waged. Russia and ISIL have been declared enemies of the US. This is crazy. This US wants to destroy Russia to save its failing economic system which ultimately cannot be salvaged. The boomerang of sanctions and embargoes against Russia are only hurting the European Union. The European economy is just as bad as the US’s, if not worse. The onslaught of refugees is destroying the fabric of Europe. The Russian plane and Paris tragedies are changing the very policies of Europe. Europe will drift away from the North Atlantic and embrace Afro-Eurasia. Latin America is already embracing Afro-Eurasia. The US is Introducing counter measures such as the Trans-Pacific Partnership and Trans-Atlantic Trade and Investment Policy, which may or may not work.

The US is in a difficult position. The world is coalescing around Russia and China, and it cannot do much about it. The US  has only known one means of control: the policy of confrontation and intimidation it has used since its very inception. The Ruling Elite of the country will not change, although some members of the Elite perceive the danger. In a previous post, I said that US finance capitalism is supported by three pillars: paper (the dollar), the stock market, and the bond market, and that all three of these are based on debt. If one falters, all three will fall and the US economy will enter a black hole, and the European Union will drift away from Canada and the USA. Only time will tell.