Category Archives: dollar debt

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.

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.

 

The Parasitic System that is Capitalism

 

Capitalism would not be capitalism if it were not parasitic or exploitational. Living off the sweat of others is exploitational. Exploitation of other countries, people, their natural resources is a form of colonialism or imperialism. Capitalism has become global, hence, the term globalization which has been created to endow the large private corporation of the First World  with special rights to exploit the countries of the Second and the Third World. The suction cup of capitalism  is the debt in dollars.

The claim that Capitalism is the engine of jobs creation is like claiming that the King Cobra or Black or Green Mamba are not poisonous. Ask Haitians how many good jobs had been created during the plunder of the last 200 yrs. One does not have to ask only Haitians but people of any other Latin American, African, South East Asian or Eastern European country or the dying cities of the US. Capitalism creates only those jobs that are necessary for exploitation. When exploitation is complete, jobs disappear, whether they be in Africa or the US or anywhere else in the world. A parasite leaves a dying host and attacks a healthier host, and the cycle is repeated. If there are no new hosts, the parasite dies.

The question must be raised whether Capitalism is about to die.

 

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

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.

 

Is the US facing the same problems as Third Century Rome?

The world, but particularly the US, is entering a period of great uncertainty, as did Rome in the third century AD. There were external threats and internal instability. Inflation was destroying the internal fabric. The coinage was diluted of its precious metals, silver and gold. People lost faith in its institutions, its army and its emperors. Through such inflation, the people were getting poorer. The longevity of its emperors was very short after the assassination of the Emperor Alexander Severus in 235 AD  The Empire fragmented and was in danger of collapsing. Two external threats were ever present: the Tribes of Northern and Eastern Europe were pressing on the Empire and in the East, there were Persian threats. Three emperors lost wars with Persia, and one, Emperor Valerian, was even captured by the Persians in 260 AD through a ruse.

The 42nd Emperor Claudius Gothicus, (268-270), stabilized the frontiers by defeating the Alemani and the Goths, but unfortunately, died of some kind of infection.  The 51st Emperor Deocletian, (284-305), further strengthened the Empire by reducing inflation, further stabilizing the frontiers, and introducing tetrarchy to government. Tetrarchy is four person rule.  Deoclitian split the administration into a Western Empire centered in Rome, and an Eastern Empire centered in the future city of Constantinople to be founded by Emperor Constantine the Great in 330 AD. When the Western Empire fell in 476 AD, the Eastern Empire or Byzantine Empire lasted for almost one thousand years until Contantinople fell to the Turks in 1453.

Is the US in a similar situation? Possibly?  The US has been in decline since President Nixon defaulted on the gold obligation of 35 dollars for one ounce of gold. Nixon proclaimed it would be temporary, but almost 50 years later is still going. As a result inflation became rampant, Congress became generous and passed the law that allowed Americans to own gold again. President Roosevelt and Congress banned ownership of gold except in jewelry in 1933.

Economic conditions were deteriorating slowly. Inflation in the seventies, Reaganomics in the eighties, Clintonomics in the nineties, subprime mortgages and the tech bubble in the first decade of the new millennium and a severe bust in 2007-09 that nearly collapsed the entire system. Throughout this period, living standards for Americans were going down. The main culprits were debt, public and private, quality job losses, inflation, lack of affordable universal health care, expensive education, and foreign military interventions.

As I mentioned in my previous posts, the three pillars of paper, all based on debt, are keeping this system afloat, but just barely, and they are the dollar, the stock market, and the bond market. The Federal Reserve and the Treasury are keeping the system going by shunting new money into stocks and bonds creating conditions for a financial shock that is becoming inevitable. Zero interest rates and quantitative easing are propping up the system, but not curing it; it cannot be cured.

One could call the US economy a “mirage” because there has been no actual growth since the late 1960’s. The living standards of the people have been going down and down, but the lies and deceptions have been going up. One does not know whom to believe. In socio-economic terms, three economic classes have developed in the US: the owner class of 1%, the overseer class of 4-5%, and the Precariat class of around 95%. The Precariat Class is composed of all ethnic groups, religions, and races, but it is kept divided by the Ownership Class for its own interests. The Precariat is on the whole totally dispossessed, and they live from pay cheque to pay cheque, with the loan sharking firms eating them in between.

The present recovery after the almost system collapse 0f 2007-8, has been nothing but “a mirage”, a statistical “recovery” propped by a series of quantitative easings and zero interest rates. The ownership class and the overseer class are doing extremely well, but the precariat class is barely surviving.

In foreign policy, the US, a hegemonic power, has become a reactionary force in order to maintain its world wide empire based on dollar indebtedness and exploitation of the rest of the world. Through its policy in the Middle East, it has lost Iran and now may lose Turkey, two large countries dominating the key strategic areas of the Afro-Eurasia. It is true, the US has gained  eastern Europe through the European Union and NATO, but Europe itself has become unstable.

In the Middle East, some claim that the US and Israel have created ISIS and Al-Qaeda  to destroy Syria and Iraq in order to get to Iran, and take total control of the Middle East and its natural resources. If Turkey switches to Eurasia, and a compromise is reached between Syria and Turkey, the US will lose the Middle East. The next shoe to drop will be Saudi Arabia because of its disastrous war in Yemen, as well as internal dissension.

Never before in its history has the US faced such complex problems as a dying economy  reflected in dying cities, dilapidated infrastructure, poor but costly education and health care; city violence could be a precursor to a general revolt.

The world is waiting with bated breath the results of the US presidential elections, The precariat class is flocking to Mr. Trump for salvation and the ownership class is in a panic. How the elections will turn out nobody knows, but if there is a financial collapse Trump would win massively. In that case, it is quite likely that martial law would be proclaimed and the elections postponed. Only time will tell.

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.

 

Gold Will Not Be Available At Any Price

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.

 

 

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.

 

 

 

The Dollar Armageddon

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?

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.