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.

High Noon in the Middle East

A confrontation of great significance is developing in the Middle East. On one side are lined US, Israel, Britain, Canada, Australia, New Zealand, and possibly, France. The rest of Europe is neutral or ambivalent, with the exception of the three Baltic States. The opposing side is composed of Lebanon, Syria, Iraq, Iran, and Russia.  The US Group can be considered as a force of Hubris, while the Russian Block can be regarded as a force of Humility. China is siding with the Forces of Humility, while Japan will most likely  side with the Forces of Arrogance. After all, Japan is still an occupied country. The vast majority of countries of Latin America, Africa, and Asia are siding with the Forces of Humility. Saudi Arabia, the Gulf States, and Jordan are unconditionally part of the Forces of Superbia, but Yemen is on the Side of Humility. Oman is ambivalent. There you have it, the real division of the World. The claim that Russia is isolated and that Russia is a basket case economically is a joke, a very big joke. Russia is becoming more and more self reliant. Russia can be without Europe, but Europe cannot be without Russia…

Russia is on the side of the legally elected Syrian government, which is recognized by most of the governments of the world. It is also a member of the United Nations and many international agencies. The US opposes Assad because he wants to be independent. He refuses to be a puppet of the US. The forces of Arrogance have organized terrorist groups to overthrow Assad. Demonization of Assad is unimaginable, but he persists and he may triumph. If the Syrian government wins, Israel and the US lose. Forces are being mobilized for a big show down. High Noon is fast approaching. Let us hope it will not be nuclear…

In the Catholic Faith, there are seven mortal sins: superbia {arrogance}, avaritia {avarice}, luxuria [ promiscuity, immorality}, invidia {envy}, gula {gluttony}, ira {irate}, acedia, {indifference}. Superbia is the deadliest sin. The ethics and morality of the Universe are and always will be on the side of  humility. It will be very, very ironic if the West loses. Only, time will tell.

Turkey, Israel, Saudi Arabia, and the US are key destabilizing forces of the Middle East,  and they are determined to destroy Syria, Iraq, Lebanon, and eventually, Iran. ISIS and other terrorist groups are being strengthened for a massive counter attack against the Syrian Government. If the counter offensive fails, the consequences will be severe: the Saudi Regime will collapse, there will be violent change in Turkey, Israel will enter into more precarious position, and, the US because of the dollar collapse will be forced to leave the Middle East. In a desperate attempt to prevent such a situation, Israel, with US help, may lash out, and the Nuclear War may become inevitable. Only time will tell.

 

The collapse of the present economic structure is inevitable.

The collapse of the present economic system is inevitable and cannot be prevented despite all the efforts of the individuals that run and benefit from the system. A system based on lies and deceptions cannot last. It cannot be sustained. As I mentioned in one of my earlier posts,the US economic system and power is based on three  pillars: paper, the dollar, the bond and stock markets; all three are based on debt denominated in US dollars.

Many people in the know  think that the weakest pillar of the three is the dollar, but that ain’t necessarily so. Remember, the dollar is essentially the official currency of the world. Most  financial transactions are done in dollars. Most of the world’s debt is held in dollars. Also,most of the drug  trade,prostitution and pornography are transacted in dollars. In other words,most economic human activity is  carried out in dollars. In addition, countries that have trade surpluses hold their reserves in dollars. De-dollarization is taking place all over the world, but the process has been slow. It may accelerate in the future, but the future has not yet arrived. The dollar is good for at least two, if not, five years. Five years in economic terms is a long time. Still, many people and countries are moving towards the exits…

US Treasuries are connected with the dollar policy. Treasury bonds are debt issued  by the US Government for its operation. The claim is made that it is as good and safe as gold. Each individual should decide for herself or himself. Foreign governments are parking their dollar reserves in US treasuries. Narco money is also parking its money in US Treasuries. Many important counties are divesting themselves of Treasuries and investing in the ultimate money, which is GOLD. The process is slow but it will accelerate in the future, but the future has not arrived.

The third pillar of paper is the stock market. The US Stock Market is Casino Royale and can close and collapse any moment. The future of the world will be decided on Wall Street. If Wall Street collapses suddenly it would be an earth shaking event, the kind that happens only once or twice in a millennium. It may also be slow process of decay. Which ever process takes hold or if a mixture of the two, it will ultimately be catastrophic. The US Government and the Federal Reserve  will try  their best but will fail, because the energy entering the economic system is decreasing and will go to its equilibrium level whose depth is unknown. It will be known in due time. The Economic System which is blindly venerated will no longer be viable. It will collapse from septic financial shock and die. Chaos and long transition will follow. Countries will fragment into smaller units. The US may face fragmentation.People living on the land will do reasonably well. The Amish will be admired. Only time will tell.

The future is very uncertain.

The future of the world is very uncertain. Thermo-nuclear war and the life as we know it could end instantly. In a matter of hours or days, in fact. Life on earth would be close to extinction. Most people do not think in those terms,but the individuals who plan wars do. Most people are concerned about personal matters, such as family members, their own general well being, jobs, love, and their health. In the past, world events did not have such an all encompassing effect as they do now. Presently, the whole world is interconnected. So, let us speculate about our world’s problems…

Economically, tensions are building every where. Let us look at China. Every body is claiming that China is slowing down, but so what? It is natural that China should grow at its own pace. China is resilient and the Chinese people know how to suffer and take pain…

Presently South East Asia is the most dynamic region of the world. Let us list the countries located there : the Philippines, Vietnam, Laos, Cambodia,Thailand,Singapore, Malaysia, Myanmar, and Indonesia. Also, Australia, New Zealand, Papua New Guinea, the Fiji Islands and the Solomon Islands are a part of this huge region. There are some disputes amongst themselves and the Chinese concerning the resources of the South China Sea, specifically, the Spratly  Islands. Without outside interference, resolutions will be peaceful. China wants peace. This is the place where the Silk Road will start. It will have two paths: one through India, Pakistan, Iran, Iraq, Syria, Turkey to Europe. The other route will go through Saudi Arabia over the Gulf of Aquaba to the Sinai, Egypt and into Africa. Also it could go across the Red Sea into Africa. The other major branch of the Silk Road will go through China, Mongolia, Kazakhstan, Russia to Europe. In other words, Africa and Eurasia will be interconnected and intertwined. There will be no place for foreign interference. Japan will have to join or be doomed. This will be a huge community of nations of Afro-Eurasia based on equality and co-operation. The Trans Pacific Partnership will not succeed. The TPP will fail...

The nations of Latin America  and the Caribbean will join in. Trade between Latin America -Carribean  and Afro-Eurasia will use the southern routes of the Pacific and Atlantic Oceans. The US and Canada will try to prevent this inter-continental coalescence but will not succeed. They will have to join in or face isolation. Nuclear war or any major war would prevent the inter-continental coalescence.

It is precisely for this reason, that the US and its allies want to build a Wall of Enmity between Europe and Russia. As I mentioned in a previous post The Wall of Enmity , this wall would run from the three Baltic states of the north-east through Poland to the Ukraine in the south-east of Europe. That is why the Ukraine is so important to the permanent division of Europe and its subservience to the US. Many politicians and political parties of Europe are aware of this and will oppose the scheme. I do believe that Ukrainians will decide their own fate and will not join the European Union which is in serious crisis. The Ukraine and Russia are one country and one people. They have a common heart and common soul. The present junta regime in Kiev is undergoing decay. Socio-economic conditions of the country are worsening by the day. More than one million refugees have been welcomed into Russia like family members and not as refugees. It will not be European nor American gas that will keep Ukrainians warm in the winter but Russian gas. Whether war is restarted or not, Ukrainians will rebel and overthrow the Junta and foreign influence. It will be a sight to behold…

One of the key ponts of change will be in Canada and the US.These two countries are intertwined culturally, linguistically, ethnically, and historically. They are entering the greatest crisis of their existence; both are in denial. I will only discuss the US, but this discussion more or less applies to Canada as well. The strongest power on the planet is the US but its power is essentially ephemeral. The US economic system does not have strong foundations. A strong foundation for the US would be if seventy percent of the population lived and cultivated the land. The population is now too big to be fully employed in services and industry. If 200 million people lived as guardians and cultivators of the land, they would be independent and not the slaves of a debt system.They would have their own marketing and credit outside the big banks. They would become the strong back bone of the country. Instead,they are wards of the state. This is the age of Finance Capitalism based on a slavery called DEBT. This is the essence of capitalism. The US power is based on three pillars of paper,the dollar,the stock and bond markets. All three are based on debt. Will they fall together or separate remains to be seen. Time will tell….

One region that must be discussed is the Middle East. It is the cauldron of cauldrons ( see my post Large Middle East cauldron is brewing around the corner…). The structure of the Middle East has been destroyed. Iraq has been destroyed. Libya has been destroyed. Syria is being destroyed now. Saudi Arabia and the Gulf States will meet their destiny in Yemen and it will be very soon. Egypt has been neutralized for the time being. Turkey is on the verge of civil war. The only countries standing tall are Israel and Iran. Iran is essentially self sufficient, but Israel is not. Sanctions against Iran hurt but do not destroy it. Iran became stronger. Israel,on the other hand, depends on a lot of aid, especially from the US and Germany. Also, Israel lacks water. It covets the waters of Lebanon. War for water is inevitable. Presently,Israel imports water from Turkey. Efforts to desalinate water are underway but it’s not enough for a high tech country such as Israel. All this destabilization of Arab countries is essentially for the benefit of Israel without the necessity of overt Israeli involvement. Israel is just waiting to pounce. And Iran is watching the situation very carefully, giving aid to the Syrian government and the Huthis of Yemen. War seems inevitable. Which side will win? It will to a large extent depend on the US economic situation. Only time will tell….

(These are some of the scenarios for the next year or two.)

 

 

 

The bullshit of the Fed raising or not raising rates.

It is amazing how the whole world is awaiting the Fed decision. Economic decisions of great importance will be made in the economy of the world that will affect countries and millions of people. It is tragic that a group of individuals of average intelligence, who are unelected ,hold the fate of the world in their hands. Other “lesser” individuals study their every move. Economically speaking, the Fed is considered to be the “Fountain of Wisdom”; in actual fact it is a “Fountain of Nonsense”.

The “Great Recession” lasted from 2007 to 2009. The economic system was on the verge of collapse. Wall Street money centered banks were failing. A bazooka was used to save it. The Federal Reserve introduced a near zero interest policy and quantitative easing. Banks had to be saved and after all,that is the primary function of the Central Bank. That price stability and employment are primary functions of the Fed is nothing but a façade. The essence of finance capitalism is  banking, hence, the Federal Reserve is its guardian. It will do anything to save it, including financing wars and overthrowing governments. It must protect and protect the “Reserve Status of the dollar”.

No recovery occurred in 2009. Growth in the US is impossible because the energy entering the US economic system is decreasing, but the energy needed to maintain its internal and external obligation is increasing. This sitation is sustainable only because the dollar is the “Official Currency of the World”. The dollar position must be maintained at all costs, and that is the real function of the Federal Reserve.

There is no recovery in 2015. Third World countries are  or are entering hyperinflationary depression. Their currencies are collapsing vis a vis the dollar and gold. The prices of various commodities are in free fall. Their debt burden in dollars has become unbearable because the ever increasing export commodities are earning them less and less dollars. As a result, the export of manufactured goods is also in free fall. The world’s economy is in severe contraction, possibly entering a severe depression. The world’s stock markets are also in free fall. Interest rates cannot go up naturally or be raised by the central bank. The velocity of money is also in free fall. The only time interest rates will rise will be to protect the dollar. This will happen when the world starts to abandon the dollar in earnest. There has been no recovery and there will never be one until this economic system is radically altered or replaced by something totally new. Only time will tell.

 

Deflation is impossible under fiat currency regime.

The fiat currency regime is a profoundly parasitic system. It is parasitic because the dominant currency (the US dollar),also known as the reserve currency or official currency of the world sucks the energy and blood of the rest of the world. It affects the whole non Anglo-American World.

The system was set up in Bretton-Woods, New Hampshire in 1944. The sucking instruments were the International Monetary Fund, the World Bank, the Agency for International  Development and others. The modus operandi  was the creation of debt denominated in dollars.The plan was and still is to place into debt the entire world, especially the Third World and the former Communist World.

Being in debt in a foreign currency implies that a country must earn that currency by selling its own natural resources  at ever cheaper prices. Devaluation of the local currency ensues, inflation follows. The local population, already poor, is faced with a threat to its survival but the creditors’ mission has been accomplished. This method of operation is repeated over and over again. The governments of these miserable countries are blamed and if they rebel they are overthrown. Hyperinflationary  depression is the end result.

A similar fate is awaiting the US. Since 1945 the US has been sucking the blood of the rest of the world. First, on the basis of the dollar being linked to gold at thirty five dollars an ounce. When this policy became too costly, the US simply defaulted. The US was losing too much gold. New policy was introduced, the petro dollar,by inducing oil producing countries to sell their oil only in dollars. The Shah of Iran played a key role and his role in this policy sealed his fate. One must remember that Iran is a millennial civilisation. Also, all trade and debt continued to be based on dollars. In the nineteen seventies the dollar weakened and precious metals spiked as inflation spiked to almost hyperinflationary levels. Interest rates were raised to almost twenty percent. Savers were doing great. The Cold War intensified. The Soviet Union dissolved itself. Japan entered a declining phase. China accommodated the US, formed a “modus vivendi” with the US but Russia was on its knees. It was plundered by the the  West  via Yeltsin and the oligarchs. Europe was compliant to the US and the dollar reigned supreme.

Good things never last. The tech bubble burst in 2000. The housing bubble inflated. 911 happened. The sympathy of the world was on America’s side. Wars were started. First Afghanistan,then Iraq. In Afghanistan, the Taliban were US allies but then they reduced the production of opium to only ninety six tons. That threatened the value of the dollar. The US attacked  Afghanistan. The excuse was El-Quaida  and 911. The production of opium went from ninety six tons to six thousand four hundred tons. In dollar terms, this is over six trillion annually and all traded in dollars. That trade supports the dollar and keeps domestic inflation at bay because the opium or drug trade is the biggest form of trade in the world (it is bigger than even the automobile or oil industries! ) Weapons of mass destruction were the reason given to attack Iraq. The real reason was Saddam Hossein wanted to sell Iraqui oil for Euros.  Libya was destroyed because Gaddafi wanted to use Gold Dinar.

Housing and the debt bubble collapsed. The system was shaken to its foundation. Zero interest rates were introduced. Quantitative Easing was instituted. Easy money poured into the stock market, the bond market, high end real estate market, and various kinds of speculations. Money poured into the US from all over the world. The dollar rose. Gold and other precious metals went into collapse. All commodities went into collapse mode. The third world is entering hyperinflationary depression. In the US, they are talking about deflation. The only deflation that is being experienced in the US is the standard of living of ninety percent of Americans. This has never happened before. During the nineteen thirties, the standard of living of people who worked rose because the prices of everything had collapsed, including the dollar. Dollar was devalued with respect to gold to thirty five dollars an ounce from twenty dollars and sixty seven cents.

There is no deflation in America except in living standards for ninety percent of its people. The prices of everything including groceries, services, health care, rents,etc are going up. Wages are stagnating. The buying power of the dollar is going down. Since 1945, the US has been exporting inflation to the rest of the world. The rest of the world is slowly de-dollarizing. The dollar will be abandoned. Nobody will want a  piece of paper that is backed by nothing except  the “Full Faith and Credit” of the United States. Inflation is coming to the US. If the dollar were gold backed currency, the US would not be having these problems. Under fiat currency deflation it is not possible. Only gold or gold-backed currency leads to deflation. Time will tell.

 

The embalming Industry of Food.

Embalming is an ancient art. Famous individuals were embalmed for posterity. The most recent example of embalming a famous individual was Nikolai Lenin, founder of the Soviet Union. Food was not  embalmed. However,it was preserved, mainly through natural processes to ensure food supplies for late fall, winter,and the early spring season. Processes included drying food such as figs, dates, grapes as raisins, sliced and dried apples, pears, apricots, and plums as prunes. Meat was preserved through salting and smoking. The nutritional value of food was preserved. Grapes were also preserved in juice form, called vine. Olives were preserved as cold-pressed oil. They were kept in wooden or clay containers. It was a high art and ingenuity kept it simple.

Modern methods of preserving food are essentially embalming food. Truth be told it is embalming for profit. Huge profits. Industrial agriculture and the embalming of food is a huge industry in the US, it accounts for at least thiry percent of the gross domestic product. First, the nutrient value of the food is destroyed; second toxic chemicals which enhance the taste are added ;third, chemicals, (toxic again!), are added to extend the longevity of these products that are called “food”. These products are packaged in beautiful boxes, plastic containers, and plastic bags. Packages are labelled with claims like,”all natural”, “builds strong bones”,”naturally delicious” etc. I used to tell my patients when they bought a paper box of food to throw away the food and boil the box and eat the soup; it had more nutrients. I was being sarcastic but I made my point. Processed and embalmed food is dangerous to ones health. The profits are huge, but so are the side effects…

I used to tell my patients to eat fresh fruit, beans, greens, and garlic. Fresh water, fresh food, fresh  air are essntial for health. Let us look at the many side effects of embalmed food: Obesity. Close to fifty percent of Americans are obese,and seventeen percent are morbidly obese. Chronic fatigue. “Embalmed” food has no natural nutrients and provides very little energy. (The body also requires more energy to digest it which explains why you feel sluggish after consuming it.) Chronic illnesses such as diabetes, juvenile and late onset, hypertension, heart disease, cancers of all kinds,etc. The embalming food industry claims that they are concerned with keeping  food costs down. This is a hypocritical claim. This processing does not come cheap and is ultimately very expensive. Just look at our list of side effects. Life expectancy is also deacreasing. It is around seventy years for men, slightly higher for women. The fate of the US depends on fresh, healthy food. Embalmed food, despite huge profits, leads only to the grave. Time will tell.

The monetary policy of the US is way too tight.

The monetary policy of the US is way too tight! How could that be if the interest rates are the lowest in the history of the US?  Interest rates alone do not determine fiscal tightness…

The dollar has been the reserve currency of the world since 1944 when it was crowned emperor at Bretton-Woods. It is the official currency of the world. Most trade is done in dollars,but less so every day. Most of the debt of the world is denominated in dollars,but less so every day.That is of eminent concern to the US. If the dollar loses its reserve status, the game is over.

In my article, “Gold and the Dollar in mortal combat”, I stated that gold does not need the dollar or any other currency, but the dollar needs gold. How so? Simple! Dollar currency can only be valued in terms of gold. By suppressing the intrinsic value of gold, the economic activity of the world is suppressed. When economic activity decreases,the need for raw materials decreases, but the debt burden of natural resource countries increases. Remember,most of the debt, ninety percent in fact, is denominated in dollars. Commodity prices go into collapse mode. What is the motive behind this? Is it to destroy the economy of China and Russia? Very likely. Of course, no one will  admit that. But there is a collateral damage or side effects to such a policy. Stock markets, bond markets,and debt in general rise to unsustainable heights. As there is less and less energy to keep the game going, the system goes into collapse mode.

The currencies of such countries as Brazil, Argentina, Venezuela are collapsing. Possibly, these are welcome results, because the governments of these and other countries are in the works to be “changed” because they are too independent. The negative side effects are also affecting friendlies such as Canada, Australia, New Zealand, and Norway.Their currencies are also collapsing. The boomerang of this policy is hitting the US itself. The velocity of money is collapsing. People have no money. The Baltic dry index is down. Labour force participation is way down, below sixty three percent. Infrastructure is deteriorating. The living standard of ninety percent of US citizens is decreasing rapidly. Socioeconomic unrest is increasing…

And,now, the coup de grace: China is devaluing the yuan. This is sending panic. China is being accused of currency manipulation. Why? Because the only way  China can devalue its currency is to de-peg the yuan from the dollar and start selling US treasuries. Other countries who hold treasuries such as Japan will follow.  This is the nightmare scenario. By suppressing the price of gold, the monetary policy is way too tight. The proper policy would have been to let gold reach and stay at its equilibrium value, whatever that may have been. Now, the US cannot let go. Gold will break out. Now, gold can be bought at around eleven hundred dollars an ounce. When gold breaks out it will be unavailable in any currency at any price. Only time will tell.

The third liberation of the Ukraine

What is going on in the Ukraine is tragic. But that is nothing new for the Ukraine. In the Russian Empire of the czars, Russia and the Ukraine were one. Contrary to what western historical disinformation  claims, the Russian Empire was very tolerant towards its citizens, regardless of ethnicity or religion. Russia, being  centrally located and the largest Eurasian power, was always coveted by peripheral powers for its wealth. The predators of the West wanted to conquer Russia on many occasions, from the Teutonic Knights in 1242, the Poles in 1612, the Swedes in 1712, Napoleon in 1812, and the Germans in the First and Second World wars. They all failed. And they failed because Russia is the pivot of Eurasia, hence,the pivot of the world. Russia is an immovable force. It cannot be conquered or destroyed. The Ukraine is part of this immovable force. The Russian word for place is krai. Ukraina means to be “in the krai”. In many Slavonic languages krai also means end.

The Ukraine has been coveted by the West for its strategic position and its wealth. Some of the richest soil, water, and mineral wealth is located in there. The first enslavement  occurred in the First World War by the Germans. The Russian Bolshevik Revolution started in 1917 with the help of New York bankers. Let me explain. Russia was allied,initially, with Germany and Austria. Britain enticed Russia to join Britain and France. The enticement was this: in the case of an Allied victory, Russia would get Constantinople, the Bosporus,and the Dardanelles. The Ottoman Empire was allied with Germany. Britain never intended to keep its promise to Russia. When war started Russia advanced rapidly into Bulgaria, which was allied with Germany. Early in the war, Russian troops reached Dobruja, Bulgaria, which was only two hundred miles from Constantinople. The British panicked at the possibility that Russia would take over Constantinople. Churchill, the First Lord of the Admiralty, organized the Gallipoli Campaign which ended in disaster; the Turks defeated them.

Under the guise of helping Russia, the Anglo-French alliance wanted to take over Constantinople so that the Russians would not get it. The New York bankers said to Britain, “Allow free immigration of Jews to Palestine and we will ensure US entry into the war.” They would entice Italy into war on the Allied side. Italy at this time was allied with Germany but neutral. They would eliminate Russia from the war. The Balfour Declaration was then proclaimed. allowing the free immigration of the Jews to Palestine. As if by magic, the US and Italy enter the war. Russia is eliminated via the Bolshevik Revolution. The Bolsheviks sign the Brest-Litovsk treaty with Germany on March 3,1918. This resulted in a much,much harsher treaty than the Allies imposed on Germany at the Treaty of Versailles. The Ukraine was placed under German protection. When Germany lost, the Bolsheviks won the civil war and the Ukraine became one of the constituent republics of a brand new country, the USSR.

The second liberation of the Ukraine occurred  during the Second World War. When Germany invaded the USSR on June 22,1941, the Ukraine was occupied and exploited. Many Ukrainians under Stjepan Bandera joined Hitler. By 1945, the Ukraine was liberated and enlarged.

The third liberation of the Ukraine is going on right now. A civil war is going on in the country. A legally elected government was overthrown by the Kiev junta supported by the West, especially the US. It was assumed it would be so easy. What a false assumption! Crimea rejoined Russia freely very recently after having been gifted to the Ukraine in 1954 by Nikita Hrushchov, (who by the way was Ukrainian). Novorussia rebelled. Suppression occurred in both Odessa and Kharkov. The partisan activity is very strong in these areas. Economically, the Ukraine is collapsing, a first world country devolving into a third world country. The war so far has gone badly. The Kiev junta violates the Minsk Two agreements. War will resume any moment. Junta forces have strengthened. The status quo cannot continue. The junta will not negotiate with Novorussia. When war resumes, it will be a sight to behold.  Ukrainians and the Ukrainian Army will rebel. They will join Novorussian forces on the march to Kiev. The Kiev Junta leadership with dual citizenship will run like jack rabbits to save their skin. Many will be caught and brought to trial and punished. The Ukraine will join the Eurasian Customs Union. The West will lose. It will be an epochal change. Only time will tell.

Japan will switch!

The world is very unstable.With the demise of the USSR, the world has entered a period of disequilibrium. The states which were essential to the West in the Cold War are no longer  as special as they once were. One such country is Japan. Japan, like Germany, is occupied. It has no free will. It can complain and nothing else. It is the third largest economy in the world, but its significance or influence is less than that of Iran. Why is that?. Simple. Iran is independent and Japan is not.

This month of August is the 70th anniversary of the atomic bombing of Japan. Hiroshima was bombed on August 7,1945 and Nagasaki on August 9,1945. The war in Europe ended in May of 1945. Japan was willing to surrender and begged for peace. There was tremendous hatred of Japan. Japan was an imperial power. If one is Chinese one cannot forget the massacre of Nanjing, where it is claimed that about a half million Chinese were killed. Chinese people may have forgiven but cannot forget. The Japanese relationship with the US was different. Japan treated the US with deference. The Empire of Japan was a possible threat to the Hawaiian Islands which were possession of US. It was not the US proper. The Japanese threat to the US mainland was very remote. The US and the West had an economic hammer lock on Japan. All of South-East Asia was under US Western European control. To break out of this control it formed an alliance with Italy and Germany. When the Second World War started in Europe and Germany invaded the USSR and when in the early stages it looked like Germany would win, Japan took a huge gamble and attacked the US in Hawaii, a possession of the US. The plan was to destroy the American Pacific Fleet. The bait was set. Japan attacked which doomed it as Germany was losing the war in Europe,especially on the Eastern front. We know the results. Japan became the occupied territory of the US and it still is today…

The economic recovery of Japan after the war was phenomenal and was supported by the US. The primary reason was to create a prosperous bulwark against communism, and that’s exactly what it became. With the demise of the USSR, things changed. Japan became less important, China more. Accommodation with China was in order. The reason? Simple.  The huge market and cheap labour. As a result, Japan lost its way. It stayed an occupied  and subservient state. Japan did not even think about neutrality. Japan was to the US what India was to the British Empire. The Fukushima disaster has made the situation unbearable. The trade surplus is decreasing. It is either gone or will be soon. Demographically and economically, Japan is dying. Japan needs new challenges to stimulate itself. It needs to abandon the buying of US treasury debt. It needs to proclaim independence and turn neutral. It will be painful, but it will be worth it. Time will tell….

gold and the dollar in mortal combat!

The dollar and gold are in mortal combat. Up to the present the dollar has been supreme. The Bretton-Woods Agreement crowned the dollar as Emperor of the World. This gave immense power to the US. As a matter of fact, it gave immense super power to the US. All economic activity of the world was transacted in US dollars and not only was it the reserve currency of the world, it was the official currency of the world. It enabled the US to buy anything it wanted by either printing dollars or going into debt. The US lends money to other countries, especially to newly independent countries in Africa, Asia, and Latin America in order to trap them into dollar debt and to exploit them to the limits of exploitation….

Any leader who opposes this arrangement is punished. The list of past and present offenders is long: Mossadegh of Iran in 1953, Gustavo Arbenz of Guatemala in 1954, attempted coup of Castro in 1961, Bay of Pigs,Patrice Lumumba of  Belgian Congo in 1962, Saddam Hussein of Iraq 2003 and Libya’s Gaddafi in 2011. There are many others such as Juanio Quadros of Brazil in 1964. The Modus Operandi of the West was total exploitation of the world through economics and any leader who opposed this policy was accused of communism and was overthrown. ( Another good example was president Sukarno of Indonesia in 1965.) The US will go to any length to protect the dollar rule of the world; possibly even nuclear war.

The opposing force to the dollar is nature itself. Gold is the power of nature,of the universe. It has the colour, the energy,and the power of the sun. Gold and other precious metals were created when the Universe was created. All civilizations of the world,past and present,cherished gold and silver. Both gold and silver are symbols of power and wealth. He,who has the gold,makes the rules.

Gold does not need the dollar, but the dollar needs gold. The “value” of the dollar can only be valued in physical things. How many dollars are needed to buy a barrel of oil or a bushel of corn.? Agricultural commodities cannot be used as money except in barter deals. Oil and agricultural commodities are consumed and cannot be used as money, but they can be the path to riches through labour. According to the first Law of Thermodynamics, energy cannot be created nor destroyed. Gold cannot be created nor destroyed. It possesses the power and energy of the sun. The dollar needs gold to measure its buying power. The true buying power of any currency can only be measured in terms of gold.

Presently gold is being suppressed for obvious reasons: to convince people that the dollar, and other fiat currencies, stocks,and bonds are the way to go. Anything that can be printed such as fiat currencies, stocks, bonds, and annuities are paths of speculation and not of investment. The world is waking up and experiencing an epiphany. The countries of Afro-Eurasia and Latin America are accumulating gold and abandoning the dollar.That is the nightmare scenario for the US and the main reason they hate Putin. They want to destroy Russia and encircle China. They want to give China the Japan treatment of 1939-41, that is, economic strangulation. If they succeed, the dollar will be supreme, and gold will go to jail. If the US fails, the dollar will most likely go to zero. Only time will tell….