Category Archives: attempts at creating a Central Bank in the United States

Turkey vs the US

In one of my previous posts, I stated that Turkey was one of the most geostrategic pivots in the world. That is true. This geostrategic pivot gives Turkey immense power and advantages vis a vis any power outside the region of the Balkans, Bosporus, Black Sea, and the Middle East.
In the year 2018, it is asserting its power to impose its will on the Kurdish enclave of North Syria to the Iraqi border; this means Turkish confrontation with the US.

Turkey is totally opposed to the US policy in Syria. The US wants to partition Syria, not because it is a threat to the US, which it is not, but because it would enable Israel to expand into both Lebanon and Syria. It would thereby obtain the waters of Lebanon.

Turkey considers the US presence in Syria and Iraq a threat to Turkish security and independence. Turkey has a large Kurdish population, up to 30,000,000 people in its South East Region. There are about 3,000,000 in Syria and Iraq respectively; approximately 3,000,000 in Iran. ( Actually, Kurds are scattered all over the Middle East. ) Kemal Ataturk was a Kurd. He defeated the British at the Battle of Gallipoli in 1915, in the 1st World War. Churchill was eager to conquer Constantinople for the British, and not to help the Russians as claimed by the British. Kemal Ataturk developed very close relations between Turkey and the new country of the USSR.

A large Kurdish State in the Fertile Crescent would mean the end of Syria, Iran, Iraq, and Turkey. A Kurdish state allied to Israel would dominate the Middle East. Turkey, Iran, Iraq, Syria, and Lebanon want to prevent this scenario; most of the Islamic world is against such a scheme.

What now? Turkey means business. It is prepared to face the US in Syria, possibly in Iraq as well. Confrontation is inevitable. It depends on what scale, but it will be on big scale. Let us analyze.

The US will not leave Syria. It will leave only if forced. Turkey will not back off. All of Turkey is upset with the US. Both countries are members of NATO, but the US runs NATO. What the US says goes. That has been the internal relationship of the organization since its inception in 1949. Turkey has been a member of NATO since 1952, a faithful US ally in the Korean War,1950-53. Since a failed coup d’état of July 15, 2016, the US/Turkish relationship has been very strained. Turkey has abandoned a policy of subservience to the US and chosen a policy of national interest and independence. National interests of Turkey are in direct conflict with US strategy. The policy of restraints on Turkey that the US is pursuing only irritates Turkey even more.

Before a complete rupture occurs, the US will try another coup d’état. If it succeeds, Turkey will go back to the NATO stable, and the US will again have a subservient Turkey and will be able to create Kurdistan in Syria. However, the coup may not succeed.

What is evident in this struggle is that Turkey is not afraid. Turkey is an advanced economy. It has powerful armed forces. Turkey may be in possession of nuclear weapons which gives it a nuclear back bone to face any opponent, including the US. The West was hoping to start a Russo-Turkish war after the Turks shot down a Russian jet in Syria on November 24, 2015; it did not succeed.

If Turkey goes all the way to conquer Syrian Kurdish region, it will inevitably come in conflict with the US special forces advising the Kurds. If the US sustains casualties, the US will respond and open conflict will occur. The Turks will not back off. Neither will the US. The conflict will enlarge. If no armistice is reached, both sides will pour troops into the conflict. NATO will be in a dilemma. Many NATO members would refuse to join the US vs. Turkey conflagration; NATO would break. The Islamic World would side with Turkey, and the Third World War could break out.

Short of a general nuclear war between the US and Russia, the US-Turkish War would severely damage the world’s economy, let alone cause massive environmental and structural damage to the world. The consequences would be unpredictable; we will see

Negative Energy Flow

The essence of the Universe is energy. This essence is constant, contracting, or expanding, but nobody knows for sure. The essence of our solar system is the sun, and without  the sun there would be no life on the Earth. They say that the energy of the sun is slowly dissipating, but is still good for about several billion years before it dies. But this is just a hypothesis. In fact nobody knows for sure.

We know that economic systems develop, grow, and then go into a collapsing phase and die, but the remnants of the previous systems become key components of the new system. For instance, the chief components of capitalism are usury and a modern version of slavery which are the chief remnants of two previous systems, slavery and feudalism.

Without the discovery of the New World by Christopher Columbus in 1492, capitalism would most likely have not developed. In my earliest posts, I stated that Christopher Columbus is the Father of Capitalism. The center of capitalism became Western Europe and North America, especially, the United States.

The United States had positive energy flow when the first Dutch and English colonists stepped into North America. The land was abundantly rich and it needed  workers to exploit it. Slavery was introduced and for 250 years, slavery was the main source of wealth extraction and accumulation  for the ruling elite of the new country. The tobacco and cotton plantations needed slaves. The trade in slaves  was very prosperous as well. Many Americans were also involved in opium trade with China, which was the monopoly of the British East India Company. It was the first giant global company, a forerunner of modern American and European corporations. Adam Smith who wrote the capitalist bible,’ The Wealth of Nations’ was an officer of the Company. His view of the ‘Invisible Hand’ that runs the market is more to the fact that the British East India Company methods of conquest and control stayed invisible as to how they got control of all of  India, Pakistan, Bangladesh, Sri Lanka, and Burma. They also wanted to keep opium trade with China and the Afghani Wars for control of opium invisible.

Americans wanted to take part in the opium trade with China, and that is one of the main reasons why the Americans wanted independence from Britain. Forget about: ‘ No taxation without representation’; it was just a façade like ‘ the weapons of mass destruction’ in Iraq. British rule of its North American colonies was rather gentle. British taxes were barely one percent on tea. One third of American colonists moved to the Canadian Provinces of Nova Scotia, New Brunswick, Prince Edward Island, Quebec, and Ontario. They were known as United Empire Loyalists. Benjamin Franklin’s son left for England.

After the Declaration of American Independence of 1776, the Slave Trade of the North Atlantic and Opium Trade with China boomed, even though Europeans were losing interest in slave trade on moral and ethical grounds. Remember, ‘Amazing Grace’ was composed by a former slave trader in 1805, but the abuse of Africa still continues.

After the Civil War and the emancipation of the slaves, the US economy exploded. By 1900,  the US was the number one manufacturing nation in the world, by quantity and not by quality.  Germany was number one in quality and second in quantity. Attempts were made to create a private Central Bank of the United States, but failed until December 23, 1913. Alexander Hamilton, the first US Treasury Secretary wanted a private central bank. In a duel with Aaron Burr, the Vice-president, Hamilton lost his life. President Andrew Jackson, the 7th President, aborted the second attempt at creating a private central bank. Abraham Lincoln, probably the greatest President of the US, stopped the third attempt. He used ‘ Green Backs’ to finance the war rather than borrow from private banks. He paid with his life in 1865. James Garfield, the 20th President paid with his life for stopping the private central bank. Finally, Woodrow Wilson, the 28th President of the US acquiesced on Dec. 23, 1913.

The Central Bank of the US would be called the Federal Reserve Bank of the US. It would be composed of 12 regional or district banks. The first amongst equals would be the Federal Reserve Bank of New York, and it would act as a financial life line to Wall Street. The Federal Reserve was key in pushing the US into the First World War. Germany was winning the War. They sank the Lusitania on May 7th, claiming it was carrying weapons to Britain. True! Britain denied it. Lie! The US kept quiet until 1917. Britain panicked that Germany would win the war and Russia, an ally of Britain and France would conquer Constantinople. Britain then promised  Constantinople to Russia but had no intention of keeping it, hence Churchill’s disastrous Gallipoli Campaign to capture Constantinople.

The World Zionist Movement wanted to create a homeland for the Jews in what would be British occupied Palestine. And if the British agreed, it was agreed that the US would enter the war on the side of Britain and France. They would also eliminate Russia from the war and Constantinople would not fall to Russia. Also, Italy, an ally of Germany, would enter war on the side of Britain and France. The Balfour Declaration of Britain in 1916 allowed unrestricted Jewish settlements  of Palestine. As if by magic, the US enters the war under the cry, ‘Remember the Lusitania’, Trotsky leaves New York with 20 million in gold, Lenin leaves Switzerland in a sealed train for St. Petersburg to start a Bolshevik Revolution. Italy enters the war on the side of the Allies, and bank credits to Germany stop.

In 1917, the US enters the war, and the US tobacco industry wants to help ‘our boys’ fighting in the trenches by supplying them with free cigarettes, and tobacco addiction began. When women won the right to vote in 1920, they were supplied with free cigarettes to celebrate their independence. The boom of 1920 began, and the inventions of Nikola Tesla changed the US;  alternating current, fluorescent lighting, the invention of radio, wireless energy, etc. Marconi did not invent the radio, but sent the first radio signal from Liverpool, England to Gander, Newfoundland based on Tesla’s principles. The boom collapsed in 1929, but the US had positive energy flow. It had the most gold in the world, the strongest currency, positive balance of trade, and could interfere in Latin America with impunity. Hence, it had positive energy flow.

The Second World War enhanced this positive energy, and by 1944, it was able with the help of Great Britain to create the Bretton Woods Convention which crowned the dollar as the official currency of the world. The only opponent was the USSR which had won the war against Nazi Germany.

The US had positive energy flow until a gold run in 1968. The European countries wanted to exchange their trade surpluses for gold. By 1971, the US defaulted on its gold promise. By 1973, President Nixon and Secretary of State Kissinger created the petro dollar. The dollar debt finance of the US and the Third World became the Modus Operandi of the day. IMF and World Bank were loan sharking all over the world, including some Communist countries of Eastern Europe such as Hungary, Poland, Romania, and Yugoslavia.

Consumerism or lack thereof in the Soviet Union led to the dissolution of the Soviet State, even though the basic living standard of the Soviet citizen was higher than that of US citizens. The Soviet citizen enjoyed free education, free health care, public transportation, generous maternity leave and generous holidays. US citizens have none of this in 2016. And the irony is that the Soviet State dissolved and the US still stands. Barely. The people of the US are very angry, and they want change, either by evolution or revolution. The 95 percent of Americans which I call the Precariat Class have barely enough money to survive. The energy flow of the Precariat Class is extremely negative, and never in its entire history has the US faced such a situation.

No wonder Mr. Donald Trump is popular and the Ruling Elite and its overseer class is fearful. The US must restructure its economic system and enable the Precariat Class to have a chance. Change in the US is inevitable either by evolution or by revolution. If it is by revolution, fragmentation of the US is inevitable. Only time will tell.