Category Archives: end of history

How much is the dollar really worth?

The dollar is a fiat currency. It is created out of thin air through debt. A person goes to the bank and wants to borrow 10,000 dollars and if the borrower meets the criteria of paying back the sum plus interest agreed on, the bank issues a cheque of 10,000 dollars or direct deposits the amount to his account. Money has been created out of nothing to enslave that person for 10,000 dollars which he must now pay back at a certain interest rate for a specific period of time. In other words, he sells his labour, his life force, to pay the debt. He is exploited, he is a slave. This is the essence of capitalism, and the fiat currency is an instrument of enslavement.

Initially, the dollar was a gold backed currency as were other world currencies. President Franklin Delano Roosevelt, early in his presidency devalued gold from 20.67 dollars an ounce to 35 dollars an ounce. Also, he made it illegal for Americans to own gold, unless it was in a jewelry form of 18 karats or less. The Bretton-Woods Convention made the dollar the Reserve Currency of the World. The US would keep the gold and the rest of the world would keep the dollars. Other central banks could exchange dollars for gold at 35 dollars an ounce. Gold, however, would be stored in the US and some would be stored in London. This arrangement was propped up by fear that “the Communists” would take over if the gold was not stored in the US. Publicity  made Fort Knox, Kentucky, infamous as the storage place  for the world’s non-communist gold. General Charles de Gaulle, President of France, was not fooled. He realized it was the perfect scam. He had never trusted the Anglo-Americans. He knew how perfidious they were during the Second World War II. The Anglo-Americans hated him, and of course, he reciprocated. He withdrew France from N.A.T.O. and sent French warships to retrieve French gold from the US. Other European countries followed. A run on gold followed…

The gold drain from the US followed. President Nixon closed the Gold window. This closure was permanent, contrary to the President’s statement that  it was temporary. The US was running trade deficits and the Vietnam War was draining the country of its real wealth, gold. The dollar paper drainage was no big deal, because it was only paper. The Arab oil embargo saved the dollar and the US. The US told the oil producers to increase the price of oil but just have it denominated in dollars. The excess dollars of the world poured into US treasuries and helped finance government operation. The decade of 1970’s showcased growth throughout the world but with inflation. Gold was allowed to reach its equilibrium value of 850 dollars an ounce. Silver, taken out of circulation in 1965, went to 50 dollars an ounce in 1979-80. Interest rates were high because demand for money was high. Demand for real money, gold and silver, was high. But the dollar was losing value. In 1969, one could get four Swiss Francs for one dollar, but in 1979-80 period, the Swiss Franc was on parity with the dollar.

President Carter appointed Paul Volcker Chairman of the Federal Reserve Bank. The Prime Rate went to almost twenty percent. The price of precious metals collapsed and value of the dollar rose. Money from all over the world poured into the US. By 1992, the USSR and communism had disappeared in Europe. The end of history was proclaimed. The plunder of the ex-USSR and Eastern Europe, along with the rest of the world began with increasing tempo. A unipolar world of ten years duration was achieved. In Nature, when one extreme is reached, opposite forces start building momentum, and new forces started brewing on the horizon…

Vladimir Putin was appointed Prime Minister of Russia in 2000, and the economic decay started in the first decade of the New Millennium in the West. It is now worsening and encompassing the entire world. The central player in all this has been the dollar. It has no intrinsic value like gold, land or water, but is the instrument of US power. The US wants to maintain that power come hell or high water, and in order to maintain it, debt in dollar terms has to grow. The IMF and World Bank, along with other private organizations, are working overtime to trap more and more countries into unsustainable debt and milk them for all they are worth. This is the MODUS OPERANDI of capitalism…

But opposing forces are rising, and the de-dollarization of the world has began. The World is trying to dis-infect itself from the dollar. Very interesting and dangerous times are approaching. But the US will not willingly give up its instrument of power. It is negotiating trade deals with Europe, South America, and South East Asia to insure the dollar to be the supreme currency. It is confronting China in the South China Sea, but at the same time, it is enticing  it to join the IMF arrangement of Special Drawing Right Currency. The US wants the China to row the dollar-SDR boat, and the US would steer it. Whether China falls for it or not remains to be seen. China, Russia, Brazil, Iran, and other countries that have backbone are trading amongst themselves in their own currencies. The river of history is flowing and it cannot be reversed.

How much is the dollar really worth? Nothing. It is merely an instrument of power, intimidation, and war, like aircraft carriers. And history will be unkind to both. Only time will tell.

The Wall of Enmity

When the USSR dissolved itself in 1991, Francis Fukuyama,an American historian, proclaimed the end of history. Western Liberal Philosophy won and everything would be great and there would be no more serious conflict in the world. It was a noble assumption but totally wrong.With the collapse of the USSR, the equilibrium of the world was lost. All things in the Universe tend to go to the  lowest entropy level. A system is most stable when it uses the least amount of energy and this according to the Second Law of Thermodynamics.With the demise of the USSR, the US tried to establish “Unipolarity” in the world. Our planet is bipolar. A unipolar planet cannot exist. Unipolarity failed and the US is trying to consolidate the spheres of influences in Europe, the Middle East, Africa, South East Asia,and Latin America. Hence, their negotiation with South East Asia and Europe for free trade agreements with the dollar as the preferred currency of trade.To consolidate its power in Europe,it is building a “Wall of Enmity” between the European Union and Russia.

The keystone of American power in the world is Europe. Europe and Russia have been moving closer together. There has been a fusion of strategic and economic interests between the two parts of Europe .After all, Europe is nothing but a large peninsula of Afro-Eurasian landmass. As Napoleon stated, geography is destiny. Europe and Russia belong together.This is anathema to the US. Hence, build a Wall of Enmity between Russia and European Union.

The Wall of Enmity would run from three Baltic states: Estonia, Latvia, Lithuania in the North East of Europe through Poland and end in the Ukraine in the South East. The US was hoping for military and naval bases in the Black Sea on the Crimean Peninsula. But Crimea is lost, Donbass is lost as well. As everybody knows, civil war is going on in the Ukraine. People in the rest of the Ukraine are unhappy with the junta in Kiev. Pro-Russian partisan activity is taking place in the regions of Kharkov, Dniepropetrovsk, Zaporozhe, Kherson and Odessa. Also Zacarpathia and Lviv regions are unstable. The economy of the Ukraine is collapsing. Yes, Russia is keeping the Ukraine afloat.Three possibilities await the Ukraine: number one is war and Americans are eager for war.They are training and arming the regime in Kiev.If war starts Ukrainians will not really fight Donbass. Instead, they will fight the junta and the Americans.Donbass forces with the help of the rest of the Ukraine will march on Kiev. Number two: the Ukrainian Army will revolt and join the Donbass forces. Number three: the revolt of Ukrainians who will restore brotherly relations with Russia. Russia is just waiting for these outcomes. Americans are clueless about Ukrainian history, etc. The Ukrainian soul is the Russian soul. There are intimate family ties between Russians and Ukrainians. Most Ukrainian refugees are ending up in Russia where they are well received as relatives. Even the Baltic states and Poland will be knocking on Russian doors. The rest of Europe will follow,especially Italy, France, Hungary,and Germany ( once Angela Merkel is gone). The Trans-Atlantic relationship will be frozen in the icy waters of the North Atlantic. The Enmity Wall in Europe will thus not be built. We shall see.Time will tell.