Category Archives: Charles de Gaulle

Subservience vs. Independence

In the next twenty five years, if there is no nuclear war, the intense struggle in the world will be between Subservience and Independence. By 1945, the US became the dominant power of the world. The dollar became the official currency of the world backed by gold and military power. The US obligated itself to protect European Empires as they disintegrated slowly. The British Empire became the British Commonwealth of Nations, the French Empire became the French Union, while other European Empires simply disintegrated. All the states of the European Empires became de Jure Independent States, but the de Facto were subservient to the West. The only country that could challenge the US was the USSR. The US proclaimed the USSR as the enemy and created military blocks such as NATO, CENTO for the Middle East and SEATO for South East Asia. With the collapse of USSR in 1991, the US became the Hegemon of the World. With Yeltsin in power there was the danger that Russia might disintegrate, but this did not happen.

With the advent of Putin, the Yeltsin policy of subservience to the US has been abandoned, and Russia has become stronger and is growing stronger despite sanctions. Iran, since the Islamic Revolution of I979, despite Western sanctions, has become much stronger and becomes a key player of the Middle East, the Persian Gulf, and the Arabian Sea of the Indian Ocean. It is not likely that Iran would have become influential in the region and the world if it had stayed subservient to US, and not sought independence.The question must be asked as to why  the US fought the War of Independence against Britain if subservience is such a pleasant state? It is very simple, the US would have never become what it is today if it had stayed a member of the British Empire. Why did Britain elect to leave the EU if it so pleasant to obey the rules and regulations of the European Commission? One of the reasons why Japan is still stagnating is  because Japan is still occupied and subservient to the interests of the US. Ask China why its growth has been phenomenal. The main reason is that China is independent and subservient to no one. The end result is everybody wants good trade relations with China, including the US. The Rest of the World is also observing this geostrategic situation…

Turkey, under Erdogan, was questioning its relation to the US. Turkey was helping the US by supporting ISIS and allowing the US to use Incerlik Air Base to bomb the Syrian Government positions in their fight against ISIS. At the same time, the US was scheming with the Kurds to set up a Kurdish State of Northern Syria and Northern Iraq. Also, the Turks shot down a Russian bomber over Syria to please the US. Apparently, Erdogan was not involved in the Russia plane shooting. His pro-American Prime Minister, Ahmet Davutuglu ordered the shoot down. All hell broke loose. Erdogan fired his Prime Minister Davutuglu, appointed Binali Yeldirim as Prime Minister, and apologized to Russia. Rapprochement with Russia occurred followed by an unsuccessful coup engineered by US help from the Incerlik Air Base. Turks are very unhappy and very defiant. The main opponent  of Erdogan is Islamist Gulen who lives in US. Extradition of Gulen to Turkey will be very, very slow, if it ever occurs. Hope that Turkey would revert to being a subservient ally is gone. Turkey has chosen an independent path.

The Philippines has also chosen the path to independence. After the Spanish- American War of 1898-99 engineered by President McKinley using the sinking of the Battleship Maine in Havana Harbour to declare war on Spain. The US won with not much difficulty. Subsequent occupation and suppression of Philippino resistance was somewhat more difficult. After several years of guerilla war, the Philippines were fully pacified. One would expect that after 116 yrs under American Rule, the Philippines would be highly developed and prosperous! But it is not.  The Phiippines are one of the poorest countries of South East Asia. They resent their subservience to the US, and elected Duterte as their President. He immediately opted for independence.

Turkey and the Philippines, major countries of Afro-Eurasia have set an example for other countries of Latin America and Afro-Eurasia to follow. Germany will follow the policy of Otto von Bismarck, the friendship with Russia. France will resurrect the policy of General Charles de Gaulle of Europe from the Atlantic to Vladivostok. Italy, Spain, and other countries will follow. Russia only has to sit and wait and remain strong.

In Asia and South East Asia, countries following the Philippine example are Pakistan, Bangla Desh, Myanmar, Malaysia, Thailand, Japan, etc. They all want to be independent.

In Africa there is a yearning for independence from Algeria in the North to the Republic of South Africa in the South. The yearning to be independent and free is unstoppable.

Latin America is the same. There is a yearning from the Rio Grande in the North to Tierra del Fuego in the South to be free and Independent. Simon Bolivar and Jose de San Martin have not been forgotten by the people of Latin America and the West Indies.

Another name for subservience is globalization. Globalization is the system that allows giant multinational corporations to exploit and rule the world according to the rules set up by the City of London and Wall Street. Globalization has been around since the British East India Company ruled India, Pakistan, Bangla Desh, Shri Lanka, Myanmar. Globalization sounds much nicer than subservience.

Also, subservient states are holding dollars, while independent ones are accumulating gold.

However difficult, the road to independence is unstoppable. That is the flow of history.

 

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Dollar vs. Gold II

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.

How much is the dollar really worth?

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 North Atlantic Concept is Dying.

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.

 

 

Saudi Arabia will implode, then explode

Saudi Arabia was founded in 1932, by Ibn Saud, who joined four regions of Arabia into one and proclaimed himself a king. The four regions are Hejal, Najd, Eastern Arabia, aka Al Ahsa, and Southern Arabia, aka Asir. Southern Arabia borders Yemen where civil war is going on. Saudis support ex-president Hadhi, who was overthrown by  the Huthis, the biggest ethnic group in Yemen. Eastern Arabia borders the Persian Gulf,and across the Gulf faces Iran. Eastern Arabia is rich in hydrocarbons, oil and gas. A large desert country, it has to import most of the food for its 30 million inhabitants, a quarter of them foreign workers. The workers are mainly from the Middle East and South Asia. All the important posts of the country are in the hands of the descendants of the founder of the Kingdom, Ibn Saud. The number of descendants is anywhere between six and ten thousand individuals. Women have few if any rights. The Wahabi form of Islam is the official religion. Saudi Arabia, in essence is owned by Royal family members. It is   like the Walton family who owns Walmart.

A special relationship had been established between Saudi Arabia and the US in 1945 during the Second World War when President Roosevelt was returning from the Yalta Conference. The Saudi King met President Roosevelt on an American warship in the Mediterranian Sea. This special relationship was sealed. Saudi Arabia would become the special servant of the US. In return, the US would provide protection.

The US defaulted on its gold obligation or politely stated, President Nixon took the dollar off of the gold standard in August of 1971. Up until then, the Central Banks of surplus dollar countries could exchange their dollar holdings for 35 dollars an ounce. The US was losing its’ gold. Over night the gold window was closed. President de Gaulle of France extracted as much gold from the US as he could in the 1960’s. He sent French warships to load up the gold that belonged to France and took it there. Other countries followed. Imagine how enamored US officials became of de Gaulle!  (Incidentally, de Gaulle was forced to resign in 1969. Massive demonstrations took place in Paris in May of that year. Could there be any connection to de Gaulle’s independent economic and foreign policy?)  De Gaulle told the Europeans not to accept Britain into the European Union. He warned that Britain would be the American “Trojan Horse”. Georges Pompidou, a banker, then became president of France. Britain then joins the Union. Any connection there????

The dollar started to drift, and inflation and gold were rising. President Nixon introduced price control, which was not too successful. The key country in saving the dollar was Saudi Arabia. How? Let me explain. The pre emptive war which Israel carried out against the Arabs was stunningly successful; the Arabs were devastated, they lost Gaza, the West Bank along with East Jerusalem, the Golan Heights of Syria, and the Sinai.  The Suez Canal was closed. Israel controlled the Sinai bank of the Suez Canal. Then, Nasser of Egypt died. The defeat was too much for him. Anwar Al Sadat, a general, took over. A deal had to be made. Sadat broke with the Soviet Union. Secretly, the Arabs were encouraged to win their lost territories back. The Yom Kippur War started in October of 1973. Israel was losing this war. Golda Meir, the prime minister pushed back by threatening to use the “Samson Option”: that is, using nuclear weapons to win the war. Nixon ordered a huge military supply to Israel. The front stabilized and negotiations began. The Arab World formed OPEC, the Organization of Petroleum Exporting Countries. Saudi Arabia, being the biggest producer and exporter, played a key role. The Petro Dollar was born. From henceforth, all oil and oil products would be traded in dollars. Every importing country had to have dollars to import oil. As for the US, all it had to do was to print paper dollars.  In 1975 Americans were allowed to buy  gold for the first time since 1935. The Shah of Iran also played a major role in the formation of OPEC. But then the Iranian Revolution came about in 1979 and the Shah was overthrown. The US lost control over Iran. Hundreds of billions of dollars of Iranian assets were frozen in the US. They are still frozen to this day. The Islamic Republic of Iran became the implacable enemy of Saudi Arabia…

Saudi Arabia is afraid of revolution a la Iran, or the possibility of a secular revolution, though this is less likely. The Saudi Royal family hates both Iran and Syria and they share a common goal with Israel:  Israel wants Syria and Iran destroyed, which would give Israel a free hand in the Middle East. (They would get the waters of Lebanon, especially the Litani River which flows in the  shape of a hockey stick through the Bekka Valley of Lebanon into the Mediterranean Sea.) Turkey would like parts of Syria bordering  on its south eastern area in order to control the Kurdish problem. Saudi Arabia faces the Houthi independence of Yemen. The war is not going well, at least presently. The Houthis will deliver a hanjar (Arabic word for a dagger) into the Royal Family of Saudi Arabia. Europe is looking at Russia and Syria in a different light because of the massive refugee problem. If the world economy collapses further, the price of oil may go down to twenty dollars. That would implode the Kingdom, which would be followed by an Iranian style revolution. Israel will face a massive Palestinian uprising. The tragedy of this world is that morally and ethically speaking, the US, Israel, and Saudi Arabia are on the wrong side of history. Only time will tell…