Category Archives: debt slavery

Brief Observations

North Korea, I have said in my tweets, is a side show. The US is caught in Zugzwang. If it opts for war it will lose all its teeth and lower jaw. South Korea and Japan would be severely damaged or even destroyed. The US fighting North Korea is like a lion fighting the porcupine. If a porcupine quilt gets into the lions mouth, the lion will have a miserable fate. The US will huff and puff, but will back off. The nuclear option is off. However, tension could increase to war if the dollar position as reserve currency is threatened. China will start trading oil in yuan backed by gold. The US is upset and may sanction China. The chance of war with the Koreans will considerably increase?

The Ukraine situation is critical. The Ukraine is dying. Ukrainians are ready to revolt. Most of the Ukraine is Ethnically Russian. The Ukraine will rebel. The uprising will be massive. Donbass will help liberate the Ukraine. Poroshenko and company will be hunted like rats. The Ukraine will return to Russia. The US and EU will huff and puff but will be helpless.

Venezuela will not buckle. The opposition has no credibility. They are sold souls. External forces with the help of the opposition will try to overthrow Chavismo but they will fail. The barrios and armed forces will not allow Chavismo to fail. Venezuela is abandoning the dollar. It will set an example for the rest of Latin America.

Middle East Conundrum. A huge Islamic Alliance is forming: Hesbollah of Lebanon, Syria, Iraq, Iran, Turkey, Qatar, Yemen, and others. This alliance has thrown its weight behind Assad of Syria. External forces will try to assassinate Assad, but they most likely will not succeed. Panic is gripping Israel and Saudi Arabia. Assad is winning and that is anathema to Israel and the US. Big war is in store over water, strategic resources, and control of the area.

The biggest problems facing the world are the debt and the dollar. Debt is  becoming unbearable for most countries. Most debt is denominated in US dollars. This has given the US a power that has no parallel in world history. It is unique and flawed. This system is neo-slavery. By trapping the Third World in dollar debt, the US gets all the natural resources on a dollar plate for free. The enforcers of this arrangement are the International Monetary Fund and the World Bank, backed by the Pentagon.

But the world is waking up and questioning this arrangement. Nations are moving away from subservience to economic independence, and this is the Achilles Heel of this economic arrangement. As more nations abandon the dollar, a huge economic crisis of epic proportions is unfolding.  The system is entering Kaput stage which could lead to war. We will see.

Advertisements

The new economic Black Death

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.

 

Negative Energy Flow 2

In my previous post I stated that energy is the essence of the universe. Without the energy of the Sun, there would be no life on Earth. A sick person is losing energy, a recovering person is gaining it. The economy is the living force of a country, and it is gaining, losing energy or staying steady.

The US claims that its economy has been in recovery since 2009, but the reality is different. The US economic system has been losing energy since 1980, when annual account balances with the rest of the world turned negative. There has been no recovery of the economy, only propping up of certain sectors of the financial sector such as the bond and stock markets, in the hope, that these two would stimulate the economy on Main Street: it never happened.

Economically speaking, negative energy flow is when expenditures are greater than income, and the end result is tragedy. When the bread winner of a family loses his job, it can be catastrophic for the family. They can be dispossessed of everything and end up homeless and penniless. If negative energy develops for a county or a city, expenses are cut and employees are terminated.  Additional side effects of the negative energy flow is the piling up of debt until it becomes unbearable. States and countries default on their debts. Most countries in the world are suffering from unbearable debts denominated in US dollars, especially the Third World Countries of Latin America, Asia, and Africa. Eastern Europe is in severe depression but nobody talks about it, because it is politically incorrect…

Very few countries have positive energy flow. In Europe, only a few countries have positive energy flow. In Asia, only a few countries have positive energy flow, China being amongst them. One country that has positive energy flow is Russia, a vast country that straddles Europe and Asia. It can totally be self sustaining. Most countries of Latin America and Africa have negative energy flow. The main reason why most countries have negative energy flow is because of massive debts denominated in US Dollars. This debt in foreign currency is draining the life blood of the indebted nations. They are forced to sell their natural resources for pennies, not to pay the debt, but to service the debt into infinity. They are condemned into permanent state debt slavery with no hope of true freedom and independence.

The United States is in a very unique situation, because it is the largest debtor in the history of the world, but has no problems of being the largest debtor in the world. The simple reason is that its debt is denominated in its own currency, the Dollar. The dollar is also the official currency of the world, and therein lies the immense power of the dollar and the US. All financial, trade, and any other activities, such as drug trade, white slavery, and mercenary wars are done in US Dollars. All these activities are controlled by the Federal Reserve Bank of New York. All dollar surplus countries park their money in US Treasuries. The number one export of the US is the dollar with which the US can do anything it wants. No wonder the US is an ” Exceptional Nation.” Other countries must earn dollars, but the US simply prints them. The negative energy flow that the US has is, paradoxically, positive for the US as long as the dollar is the Reserve Currency of the World.

The US will have to pay a huge price, the day the Dollar is no longer the official currency of the world.