Category Archives: Eastern Europe

Zugzwang situations of US in Korea, Syria, Iraq, Yemen, Turkey, Ukraine, etc.

After the USSR dissolved itself in 1989, the US pushed East. All of Eastern Europe fell under US influence, plus many republics of the former USSR such as the Baltic republics and Georgia. It was the greatest gain of geostrategic territory in human history in such a short amount of time. It was done without war, but through lies, deceptions, and false promises that were never kept. Russia, under Yeltsin, was on the verge of collapse. Life expectancy and demographics were collapsing. It appeared that the further fragmentation of Russia was inevitable. But one man finally aroused Russian defiance, and that man was Putin.

It was evident to the West that Russia under Putin would not buckle. On the contrary, Russia grew stronger. Like the Phoenix, it rose from the ashes. Despite its economically  small size compared to the US, China, and the EU, it is incomparably powerful due to its size, geographic position, natural wealth, and resilience of its people. It is present in the Pacific, Arctic, North Atlantic, Baltic, Central Europe-Kaliningrad, Central Asia, Black Sea without spending a kopek.

US, being essentially isolated geographically in North America must project power in order to be pertinent and to extract natural wealth from others. This policy has become unbearably expensive and the rewards have had diminishing returns with the passing of time.

As universal hegemon, the US is involved everywhere diplomatically, economically, and militarily, imposing its policy and worldview on others. The world has become very resentful and is starting to fight back.

One modus operandi of US foreign policy has been economic strangulation of economies of countries that do not follow US instructions. But lately, this policy has not been too successful. A good example is Iran. Many methods have been tried occultly with the participation of Israel but to no avail. Iran is getting stronger and stronger. The US and Israel may try a military option, but this is fraught with great danger.

The US Congress is legislating serious sanctions against Russia which the President will sign in order to weaken the Russians. It will fail. Russia is an autarchy (meaning a country who is economically independent, not the authoritarian definition) and such countries only get stronger. The German invasion of the USSR is a good example. Also, countries of the world are moving away from subservience to US and moving to independence. An excellent example is Turkey.

Thus, the US is caught in Zugzwang in many geographic situations of the world: North Korea, Afghanistan, Ukraine, Syria, Iraq, Venezuela, etc.  It is conducting military exercises constantly with its allies from the Baltic, Black Sea, Mediterranean, Persian Gulf, South China Sea to North Korea.

One can say that US foreign policy consists of a constant poking and provoking.

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.

 

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.

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.

 

 

 

Negative Energy Flow

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

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

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

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

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

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

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

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

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

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

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

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

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

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