Category Archives: china

The significance of India-Pakistan animosity in the world of geo-politics

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When India achieved independence from Britain in 1947, it split along the religious line: the Hindu India and Islamic Pakistan. The split was encouraged by the Anglo-Americans. The British did not like Mahatma  Gandhi or Jawarhal Nehru, and preferred Muhammad Ali Jinna, the founder of modern Pakistan.

When the split occurred, Hindu India, a much bigger country, ended up with Jammu Kashmir, a  beautiful Himalayan valley populated mainly by the Muslims, but ruled by a Hindu who sided with Hindu India. The fight over Kashmir persists to this day and will persist into the future.

Both Pakistan and India are multi-ethnic. In 1971, Pakistan split into West Pakistan, a larger region west of India, and East Pakistan, east of India, the so called Bengal. Its new name is Bangla Desh, land of Bengalis. Bitter war was fought in East Pakistan by West Pakistan to keep  East Pakistan in union with West Pakistan. Three million Bengalis lost their lives. Under the leadership of Indira Gandhi, the daughter of Nehru, India helped East Pakistan to become independent. The US sided with West Pakistan, and President Nixon sent the 7th Fleet from the western Pacific into the Bay of Bengal to intimidate the Indians. It did not work, as the Soviet Union sided with India. In December of 1961, Russia sided with India over the annexation of Portuguese Goa, while the US and Britain sided with Portugal. India considered Russia an “all weather friend”. How things change!

India is much bigger with a population of over 1.25 billion people and land area of around 1.2 million square miles. Pakistan, on the other hand, is much smaller with a population of over 200 million and a land area of around 300,000 square miles. Strategically speaking, Pakistan is holding more pivotal connections of Asia. Pakistan borders China on the North-East, India on the East, Afghanistan on North-West, Iran on the West, and the Indian Ocean on the South. India is considered a subcontinent of Asia jutting out to the Indian Ocean. Its land borders are Nepal, China in the North, Bangla Desh, Mayanmar to the East, Pakistan to the West.

Pakistan has a strategic relationship with China and a subservient role vis a vis the US. India has a rather cool relationship with China because of its’ border disputes in the Himalayas, a warming relationship with the US, and a geostrategic relationship with Russia.

As China enters the global stage, it is developing trade routes with South-West Asia and Europe via Pakistan, Iran, Turkey, the Balkans and into Europe, and if Turkey achieves rapprochement with Russia, the process will accelerate. Also, Pakistan is a transit country enabling the US to invade Afghanistan, maintain military operations against the Taliban, and control the opium trade, a highly profitable enterprise that helps maintain the dollar as the Reserve Currency of the world. It is self-evident that Pakistan is extremely important, geo -strategically speaking, to US and China; it is also a nuclear power.

As mentioned, India is a large and important country of the Asian Subcontinent and the center of Hindu Civilization. It has had a very independent foreign policy, first as the co- founding member  of the Non-Aligned Movement, and now as the co-founding member of BRICS, { Brazil, Russia, China, India, and the Republic of South Africa.) It is a nuclear power, and the 6th or the 7th economic power of the world.

India is drifting West, buying high tech weapons from Israel, Rafale jet fighters from France. It is entering some sort of military basing arrangements with the US which has never happened before. US wants India to be a keystone in the Wall of Enmity that the US is building from the Baltics, Poland, Ukraine, Black Sea, Turkey, Syria, Iraq, Persian Gulf, India, Philippines, Japan to South Korea. The Wall would hem in Iran, China, North Korea, and Russia. The gate keeper with the keys would be the US.

If India joins the Wall of Enmity though, it would lose its privileged geostrategic relationship with Russia, and its moral influence in the world. It would also lose its influence in BRICS, and would never be able to participate in the Silk Roads that China and other countries are building. India would become the odd man out on the Afro-Eurasian land mass. India, most likely, will not join the Wall of Enmity. However, the only certainty is uncertainty.

Pakistan, on the other hand, would like to break out from US subservience. It has sent feelers to Russia. Russia and Pakistan will hold some kind of military exercises very soon. India is upset, understandably so, but India should understand that if it has the right to choose its partners, then so do other countries.

Afro-Eurasia and Latin America are coalescing, as more and more of its’ countries are abandoning the strict subservience which the US dictates. They are using their own currencies in two way trade, thereby avoiding the dollar and trade is growing amongst them  as a result. India, Pakistan, Iran, and Venezuela want to join the Shanghai Co-operation Organization. Other countries are also trying to re-assert their independence: Turkey, Philippines, Japan, plus France, Germany, and Italy are in the game.

The animosity between India and Pakistan might impede the coalescence of Afro-Eurasia. An India connected to the West would not be interested in Afro-Eurasian coalescence and a geo-strategic relationship with Russia. Pakistan, on the other hand, because of its geo-strategic position would enhance the coalescence of Afro-Eurasia especially if it joins the Shanghai Co-operation Organization and BRICS, minus India, and possibly, Brazil. So history is implying that with or without India, Afro-Eurasia and Latin America are coalescing. Only time will tell.

 

The Turkish Blow Back?

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There is a lot of nonsense being written lately about the unsuccessful Turkish coup. The claim has been made in the Western press that Erdogan staged the event, or that it was carried out by junior rank officers and was doomed to failure. It is all lies, sheer fabricated lies. These lies convey a sense of disappointment on the part of the West that the coup had failed. There is absolutely no rejoicing in the West that the coup has failed, and that the democratically elected President Erdogan of Turkey was able to crush the revolt. Strange, very strange indeed!

The coup was very well organized, but the assumption on which it was based was false. The premise was that the people would support the coup, but the opposite happened, the people supported the President when he called the people to go out into the streets and oppose it. The only people who supported the coup were the pro-American elites in the military and in the government. But this was not enough, because the people were against it. (The previous four coups from 1960 to 1997 were successful because the majority of people did not oppose the revolt, or did not care. How things change!)

Turkey has been a faithful ally of the US and Israel. Turkey supplies nearly half of Israel’s supply of fresh water. No country is viable without fresh water. In Syria, it was supporting the US and Israeli attempt to overthrow President Assad and partition Syria into smaller regions which would be controlled by Israel. The Kurds would be allowed a state carved out of Syria and Northern Iraq which would then attract Turkish Kurds to form a larger Kurdistan, and which would be very destabilizing to the existence of the Turkish State.

The shooting down of the Russian unarmed bomber over Syria ordered by, at the time, Turkish prime minister Davutoglu in 2015 changed everything. The US regarded this event positively because it increased the animosity between Russia and Turkey, especially at a time when the US is building the Wall of Enmity between the West and Russia stretching from the Baltic States, Ukraine, Poland, The Balkans, Turkey, Persian Gulf, Indian Ocean, Straits of Malacca, Philippines, Japan to South Korea. It would be an unbreakable wall that would hem in Russia, Iran, China, and North Korea.

But things never work out exactly as planned. The Russian plane shoot down changed the Russia-Turkish relations from mutual reciprocity to mutual animosity. For downing its plane, Russia responded with a massive economic reaction, affecting tourism, agricultural products, construction, pipelines, and nuclear energy. Turkey was stunned. No aid was coming from NATO under Article Five. The Turks were on their own. The Syrian War intensified as Russia had intervened, ISIS and other groups which the US supported were on the run. Refugee crises were created which did not benefit the European Union.

The Turkish Kurds were getting restless and violence inside the Turkey was increasing. Wars in Syria and Iraq were not benefiting the Turks. Being member of NATO means only one thing being subservient to the interests of the US. Erdogan chose independence for Turkey and from now on, Turkey would have an independent foreign policy, if that means leaving NATO, it will leave NATO. He dismissed his pro-US prime minister, Ahmet Davutoglu and replaced him by Binil Yildirim, an individual who has national Turkish interests at heart. Erdogan apologized to Russia for the downing of the plane and Putin reciprocated by lifting the Russian tourist ban and  ban on construction. The two leaders will meet in early August. What a change!

President Erdogan announced his desire for rapprochement with Russia, Syria, Iraq, and Iran. It appears that ISIS and other terrorists are feeling the heat. The Americans panicked and a coup d’état was arranged that was doomed to fail, even though it was long in the planning.

There will be a black out on much of the news coming out of Turkey that will be perceived as negative to US interests. The Turkish purges that have been ordered by Erdogan for all levels of society that may be pro-western.  A great confrontation is developing between the US and Turkey. There is no turning back, unless, another pro-American coup succeeds, an event that is likely but will not succeed. Turkey will close Incerlik Air force base in south east Turkey, and, will leave NATO. The oxygen will be cut to ISIS and other similar groups. Assad will reclaim his country, as Iraq will reclaim its independence. There is certainty that there will be coups d’état in Saudi Arabia,  the Gulf States, and Jordan. All these countries, including Turkey, will join the Eurasian Union and the Shanghai Co-operation Organization. The currency of trade will be the yuan, gold, or the ruble.

This Turkish tectonic shift East will have a profound effect on world history. Only time will tell.

The new economic Black Death

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The Black Plague, also known as the Black Death, took place in Europe from 1346 to 1353. In a span of seven years almost half the population of Europe was dead. Anywhere from 75 to 200 hundred million people died. It was the most horrible experience since the Fall of the Roman Empire in 476 AD. It was caused by a bacteria, Yersenia Pestis, aka, Pasteurella Pestis. It originated somewhere in China or Central Asia, and via the Black Sea trade entered Europe. The agent of transmission or vector was a rat aboard the trading ships. The population of Europe was estimated at around 250 to 350 million, and the population of the whole, known world was around one billion people. The Western Hemisphere was not known or had been discovered yet. Christopher Columbus discovered the New World in 1492.

In 2016, mankind ( with a world population of over 7 billion people) is facing another Black Death, caused not by bacteria but by human evil. There is no economic recovery in the West, and there will be no recovery until the West restructures totally and completely by embracing  a new system that will cherish life and the environment of the earth.

The economic system of the West, the new Neo-liberalism, has entered a phase of exhaustion from which there is no escape. The reason for the exhaustion is the immense debt which can no longer be sustained. There are several components to this world debt that must be explained.In 1944, the dollar became the official currency of the world as decreed by the Anglo-American Powers. All of the world’s trade would be done in dollars, and, the dollar would be the reserve currency of the world. The US became, in effect, the ruler of the world. The only country who opposed this arrangement was the USSR. That same year, Winston Churchill suggested,                “Operation Unthinkable”, the plan that Anglo-Americans join with Germans in fighting the Russians. The Cold War was in full swing. The official proclamation of Cold War was announced by Churchill in Fulton Head, Missouri in 1947.

The West, aka, the Anglo-American countries, realized that debt could be used as an instrument of power in re-enslaving the newly independent countries of Africa and Asia, by lending them money for so called “development.” The already independent Latin American countries were subjected to the same treatment with similar results, as were the Eastern European countries.

Domestically speaking, Americans were encouraged to go into debt. The reason for this was the fear that the slack in demand would lead into another “Great Depression”, and that was no,no policy in a time of “Cold War.” Wasteful consumption and debt was encouraged. Credit cards were created to increase consumption and debt. Economists glorified debt as good. Debt was no problem, the Americans were told, “after all we owe it to ourselves.”

Debt can be considered “safe and useful” in an economy that is growing, if wages and jobs are also rising. People feel good and secure. Buying houses on a mortgage is a sound economic policy. Also, in a prosperous economy, the crime rate decreases.

Internationally speaking, no effort is spared to indebt as much of the world as possible in dollars. The dollar indebtedness is the “Carte Blanche” for giant Western corporations to exploit the Third World. This situation enhances the power of the West and enslaves the rest.

The largest corporations are moving factories to the Third World because of the very cheap labor, and the cheap products are re-exported to the entire world at immense profits. By this policy, the US has de-industrialized itself, but enriched the trans-national corporations. This was the Age of Globalization which was pushed on the rest of the world. The World Trade Organization was established, which is above the law of each individual member country, as is the City of London above the British law, and the Federal Reserve Bank of the US, a private bank, is above the US laws. The trans-national corporations are modelled after the Dutch East India Company and the British East India Company. These two companies controlled the world trade in slavery, spices, and the opium trade with China. They were progenitors of modern globalization. Nothing has changed in the last five hundred years except technology and the intensity of plunder and exploitation.

The Third World is already in maximum debt and depression where the poor are already dying and the anger is growing. Third World countries are trying to pay the interest on their debt, and some are trying to pay the debt off, so commodities are cheap and the dollar is strong.

Domestically speaking, the West is suffering from lack of consumption, because the vast majority of people are barely making enough to survive. Unemployment rates of the European Union and the US are sky high. According to John Williams of Shadow Stats, the unemployment rate is 23 percent in the US, and the work force participation of 62.8 percent has been the lowest in years. The number of people out of the labor force who can and want to work is around 95,000,000. The number of people on food stamps is around 47,000,000. The velocity of money has collapsed which implies that people have no money to spend. Pay Day Loans with monthly interest rates of 20 percent or more are increasing. One should not wonder why crime, prostitution, and drug use are increasing. ( Incidentally, the Baltic Dry Index is decreasing, which is a sign of collapsing world trade.)

The economic system of the West and the World has entered the phase of exhaustion, and nothing can save it. The ruling elite of the West thinks that a massive war with Russia or China, even nuclear war, will save the system, but nothing will. There will be collapse of the monetary system based on usury, and those responsible will be punished. Hunger, starvation, and deprivation is on the horizon. Violent revolution is inevitable, and nuclear war cannot be excluded. Only time will tell.

 

Will India Switch?

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India is a huge country in South Asia. It is the second most populous country on Earth, with an area of 3,287,263 square kilometers and a population of over 1.3 billion people. Its economy is large and on purchasing power parity is approximately 8 billion dollars; it is bigger than either France or Britain, yet it is not a member of the Security  Council. Strange! It is also a major nuclear power. When one thinks of India, one is reminded of poverty. India and poverty is almost synonymous, but that is changing. India wants a UN Security seat which Russia fully supports, but the US and China are somewhat hesitant.

Since its independence from the British Colonial Rule, India pursued a policy of neutrality. Its first prime minister, Nehru, had been one of the co-founders of Non-Alignment,( the others being Tito of former Yugoslavia, Nkrumah of Ghana, Nasser of Egypt, and Sukarno of Indonesia.) Since its independence, India has had and maintains a close relationship with the former USSR and subsequently Russia. In 2016, its strategic relationship with Russia is solid, but the World situation is changing.

The US is trying to construct a Wall of Enmity, (see my previous posts), from Baltic States in the north east of Europe through Poland, Ukraine, the Balkan States, Turkey, Syria, Iraq, South Asia, the Straits of Malacca, Malaysia, Singapore, Thailand, the Philippines, Vietnam, Japan and South Korea. In this Wall of Enmity, India would be like the Key Stone; this Wall of Enmity would enclose Russia and China.

India is developing a close military strategic relationship with Israel , and possibly, France. It is also a large buyer of Israeli high tech weapons and advanced planes from France. Universities of India are feeding the high tech needs of the US and other Western countries. India is also member of BRICS and, possibly, wants to join the SCO, or Shanghai Co-operation Organization, whose founding members are China and Russia. (Other members are some of the ex-republics of the former USSR. Incidently, Iran and Pakistan want to join the SCO.)

Trade routes are being developed by China and Russia, the New Silk roads that would bring Asia, Africa, and Europe together. The BRICS, (Brazil, Russia, India, China, and Republic of South Africa), are working to bring trade and co-operation to the four regions of Afro-Eur-Asia and Latin America. This is anathema to the US.

The US will do its best to woo India to join its Wall of Enmity as a key stone. But how this part of history will flow, nobody knows. Only time will tell.

Gold Will Not Be Available At Any Price

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In one of my previous blogs, I stated that gold does not need the dollar or any other currency, but the dollar needs gold to be the Reserve Currency or Official Currency of the World. Without the connection to gold, a Fiat Currency is a useless piece of paper that is imposed on the people by legal tender law. No other currency can be used in the US except the Dollar. The Bretton-Woods Agreement made the Dollar the official currency of the world with the convertibility of the dollar into gold at 35 dollars an ounce. All trade in the world was conducted in dollars. The US became Master of the World.

In 1950, the US had twenty thousand tons of gold and the rest of the world had very little. The gold reserves of the USSR were secret, but Western Intelligence analysts concluded that they were significant. By 1968, the run on the gold was significant, and in 1971 President Nixon defaulted on the US gold obligation of 35 dollars for an ounce of gold. Very significant events took place after the US defaulted. The War of October 1973 started between the state of Israel and the Arabs, which Israel would have lost without US help. In 1973, OPEC, the Organization of the Oil Exporting Countries, was formed with the help of the US. The US was the godfather of the OPEC, and OPEC promised that the dollar would be its’ official currency. The price of oil was encouraged to rise many, many fold. Third World countries went into massive dollar debt buying needed oil. Inflation ensued, followed by high interest rates imposed by Paul Volcker, the Federal Reserve Chairman.

So far so good. The US economy boomed due to the growth of debt. The Crash of 1987 did not matter. In 1989, Communism disappeared, the USSR collapsed, and Japan, the economic power house, went into irreversible decline, which continues to this day. The 1990’s were characterized by the plunder of the Russian Federation under the leadership of Yeltsin. In 1998 occurred the Russian default. The Stock Market boomed, not because of the NASDAQ dot com bubble, but because of the plunder of the Russian Federation by the West with the help of the Russian-Jewish mafia. Vladimir Putin is appointed Premier of Russia by President Yeltsin and the US stock market took a plunge, because the plunder of Russia was about to end.

The economy was on the skids, so  September 11, 2001, happened, but we do not know for sure who is really responsible, but it was good enough reason to declare the War on Terror to revive the economy. Osama bin Laden and his people were blamed. Osama was in Afghanistan, so Afghanistan was bombed and invaded. The Afghani War continues to this day with no end in sight. After the invasion of Afghanistan, the opium trade boomed as production rose from 96 tons annually under the Taliban to over 6000 tons presently and that is more than a several trillion dollar business, the biggest business in the world denominated in US dollars and controlled by the US. (The US dollar is not only the Petro-Dollar but also the Narco-Dollar.) In 2003, Iraq was invaded and Saddam Hussein hanged, not because of weapons of mass destruction but because Saddam refused to sell Iraq oil for dollars. The war in Iraq still continues; the War on Terror keeps the Western Economy alive.

In 2008, due to subprime mortgages and too much debt, the Stock Market and financial markets everywhere faced serious collapse. Under the leadership of Hank Paulsen, the US Treasury Secretary, the system was propped up. By 2011, gold went up to over 1900 dollars, and silver went up to near fifty dollars. After the economic debacle of 2008, the US and the World has been enduring negative energy flow. There is no real economic growth in the US, but statistically there is a concocted growth. Europe is just as bad, if not much worse, and Japan is dying. China is in a precarious situation as well. Third World countries are in depression or even super depression. Eastern Europe is similar. Russia is suffering, but is self sustaining, with very little debt and is the cleanest shirt in the laundry…

Non Western Central Banks are buying and hoarding gold by the tons. Some Western countries are repatriating their gold. People all over the world are buying physical gold and silver. People who buy physical precious metals do not sell them unless forced by circumstances. OPEC is in disarray, many members are selling their oil for other currencies such as the Euro and the Yuan. The dollar is still important but no longer absolute. The world is de-dollarizing. A point will be reached when there will be a panic for buying of gold and no gold will be available. Gold trading will be closed and gold will not be available at any price. The well being of countries such as the US will be changed for ever. Only time will tell.

 

 

Gold, Silver, and Geo-economic Bipolarity

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

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

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

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

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

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

The Dollar Armageddon

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

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

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

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

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

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

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

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

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

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

 

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

     CENTO: Central Treaty Organization

 

 

 

Will the dollar be defended to the end?

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

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

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

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

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

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

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

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

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

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

 

 

 

 

 

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”