Category Archives: imperialism

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.

 

Will Turkey leave NATO and join the Shanghai Cooperation Organization?

Turkey has been a “good boy” ally of the West since 1952 when it joined NATO. It’s been in many wars supporting the US, from the Korean,1950-53 to Iraq One, 1990, Afghanistan 2001. Iraq Two in 2003, to present wars in Iraq and Syria, by supporting ISIS. ISIS nearly won, but now, is possibly losing.

The only benefit Turkey has ever achieved from being the “good boy” ally was supplying cheap labor to West German economy. Germans look kindly on the Turks for being their close ally in the First World War, and by being pro-German in the Second World War.

For all its devotion to the West, the rewards have been small. Wasn’t it the British ex-prime minister Cameron, who said that Turkey can become member of the European Union in next three thousand years? Turkey has no chance of joining the Union. Vague promises yes, but no membership. Russia was one of the most important trading partners of Turkey. Turkey gambled and lost an excellent neighborly relationship with Russia by shooting an unarmed bomber over Syrian territory. I am sure that, Turkey got an encouragement from the West to increase the enmity between the Turks and the Russians. The economic reprisals from Russia were massive and Turkey is still suffering from them. All this Turkish confrontation with Russia did not cost the US a penny, but the benefits were immense.

The Turks started to put two and two together and they did not like what they saw. President Erdogan started to think. First, he apologized for the plane, and Putin responded; rapprochement between Russia and Turkey began. It will be a slow process, but it is the beginning.  Also, Turkish rapprochement with Iran, Iraq, and Syria will begin. ISIS will be the big loser. Someone in the West did not like this, hence the coup d’état.

The coup d’état failed, and the Shanghai Co-operation Organization beckons to Turkey to join provided the conditions are met. The New Silk Road of Afro-Eurasia led by China also beckons Turkey, and Turkey might just bite. As a result, the West will face a debacle in the Middle East. The West will not like the rapprochement between Turkey and Russia. Another coup d’état will be attempted to prevent it. A great confrontation between Turkey and the West is in store. How the historical wind will blow, and how history will flow remains to be seen. Only time will tell.

Exitus Acta Probat

The Modus operandi of modern imperialism  is based on the principle of Exitus Acta Probat, Latin for the end justifies the means. Imperialism and Capitalism are two sides of the same coin. It can be said that without colonialism there can never be imperialism, and, subsequently, no capitalism. The main proponent of Capitalism is the British-American Alliance, and the instrument of that power is the Dollar.

The World Capitalist System is in severe crisis because of negative energy flow, that is, the extraction of wealth from the rest of the world is decreasing, while the energy needed to maintain the viability of the Anglo-American System is increasing. That is not sustainable.

The Anglo-American leadership is convinced that, if it  took control of the regions of the former Soviet Union and the natural wealth of that area, it would be in control of the world for the next several centuries. As a result, the confrontation with Russia is inevitable. Only time will tell.

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

 

 

 

QUO VADIS? AMERICA LATINA

 

Latin America is a huge region, extending from the Rio Grande in the North to Tierra del Fuego in the South. Historical Spanish America extends from the Straits of Juan de Fuca to las Islas de Malvinas (otherwise known as the Falkland Islands, presently under British control). Ibero-America or Latin America is the appropriate term, because it includes Portuguese and Spanish parts. It is a region of over seven million square miles and over seven hundred million people. It will have a great future and great influence in the world provided there is no nuclear war, but we know that some kind of war is in the making…

The first thing Latin America wants and needs to do is to achieve total geo-economic independence; this goes without saying. Latin America has been perpetually dominated by foreigners, first, Spain and Portugal as its’ original colonizing  “Mother Countries”, and then since its independence from them in 1821, by the US. As a matter of fact, around 1800, President John Adams sent a naval squadron to Rio de la Plata to demonstrate that Latin America was to be a vassal in the American sphere of influence. In 1823, President James Monroe in his seventh State of the Union address proclaimed that the US would not tolerate European Powers in Latin America, a proclamation that came to be known as ” the Monroe Doctrine”. And thus the exploitation of Latin America began and continues on to this day. In 1966, US economic entities extracted 44 billion dollars from Latin America. Gold at that time was convertible at 35 dollars an ounce. This exploitation has been very profitable although presently, it has somewhat lessened. In 1966, converting 44 billion dollars into ounces of gold at 35 dollars an ounce was equal to 1. 257,142,800 billion ounces of gold. These gold ounces converted into dollars at today’s gold price in dollars would be over one trillion three hundred billion dollars.

To maintain its position in Latin America, the US established the Organization of American States, officially as a bulwark against Communism, but in reality, an instrument to control Latin America. Canada joined this organization several years ago, but has less and less relevance to it, if it ever had any. The policy of the US towards Latin America was straightforward, and is in keeping with its general foreign policy throughout the world today:  overthrow governments which oppose US policy. First they were demonized and economically squeezed, and, if that didn’t work, they  were overthrown. Some examples of these erstwhile leaders: President Arbenz of Guatemala for opposing the United Fruit Company, aka United Brands; the attempted overthrow of the Cuban Revolution and Fidel Castro in the Bay of Pigs in 1972;  the tragedy of President Allende of Chile on September 11,1973 (the first 911), and there are many others…

Most Latin American regimes are oligarchical, but even they realize they must preserve and protect the natural resources of their countries, and they are no longer willing to submit to the US. They formed MERCOSUR in 1991 (the common Market of the South, or Southern Common Market ( in Spanish, Mercado Comun del Sur, in Portuguese, Mercado Comum do Sul). Member states are: Argentina, Bolivia, Paraguay, Brazil, Uruguay, and Venezuela. Associate members are: Chile, Peru, Colombia, Ecuador, and Suriname. Observer countries are Mexico, and an outsider country, New Zealand; the US and Canada do not participate. There are other fraternal organizations as well. The great leaders of Latin America are deeply respected and provide unity and inspiration to these nations, everyone from Simon Bolivar of Gran Colombia, Jose De La San Martin of Argentina to recent and present leaders such as Fidel Castro, Che Guevara of Cuba, Allende of Chile, Hugo Chavez of Venezuela, Nestor Kichner and his wife, Cristina Fernandes  of Argentina. One must not forget the great leader of Bolivia, President Evo Morales, President Mujica of Uruguay, and ex-President Lula da Silva of Brasil. Also present-day Presidents Guttierez of Ecuador, Daniel Ortega of Nicaragua, Dilma Roussef of Brasil, and Nicolas Maduro of Venezuela. The latter leaders are under attack but they will survive, and there are others…

Whether the leaders be oligarchical or progressive, they know they must protect their independence. They can only do that through the unity of Latin America and now joining forces with Afro-Euro-Asia. Only time will tell.

 

No economic recovery is possible,if ever.

There is constant talk that economic recovery in the US is taking place. Bluntly stated, there is no recovery. What is taking place is economic “shunting” of electronic money created by the Federal Reserve into paper assets. The Federal Reserve calls this shunting “channeling”. They must be psychic. No channeling will save the system. The life force (or energy) is leaving the US economic system. This is evident in that 94.5 million people are not working. 47 million people are on food stamps. The infrastructure is collapsing. In other words, the Main Street is dying. It means that energy is leaving the Main Street and going to Wall Street. Medically speaking , in septic shock shunting is a very grave sign…

Channeling is a very ineffective policy. It is also brutal. It seems to imply that as Wall Street gets richer they will spend more but things don’t really operate that way: the people who have been blessed by Wall Street already spend as much as they need. Instead, the denizens of Wall Street with excess profits speculate even more. Bubbles are created in which the rich wallow, be they stocks, bonds, high end real estate, and various forms of derivatives. They serve no useful purpose. They are parasites. They extract wealth from working people and Mother Earth. How long can this go on? Not very long.

Wall Street claims that it is the center of wealth creation. False!! In the casino which Wall Street is money is lost by the majority; only the casino wins. Gambling chips are no wealth, neither are paper investments. They are very , very ephemeral like late spring snow. All wealth comes from Mother Nature using human labor and ingenuity. As Leonardo da Vinci said, “God sells everything for the price of labor”. If labor is cheap or free as in slavery, Mother Nature sells its treasures for essentially nothing. For more than five centuries Western Europe and subsequently the US harvested the wealth of the world. Now,  this harvesting or plunder is decreasing.  Not enough wealth is harvested from the rest of the world to keep the system going.

Enticing the Third World Countries into debt was another way of controlling the resources of the country. If  the leader of the country rejected the policy of indebtedness, that person was demonized and subsequently overthrown. From Mossadegh of Iran, Patrice Lumumba of the Belgian Congo, Sukarno of Indonesia, to Allende of Chile, (and many others such as Saddam Hussein and Gaddafi), attempting to control the resources of the earth has been and is a very bloody business. The natural resources of the world are the food of capitalism; human labor its’ oxygen. There is plenty of oxygen, but the amount of food is decreasing. Right now, there is a struggle going for control of the food. Developing countries want to control their own natural resources. That means saying no, no to the US and to multinational corporations. Presently, natural resources are very cheap because the demand for resources is slowing the world over. Also, Third World Countries are also slashing prices to gain dollars to service the debt which is denominated in US dollars. This is one of the reasons why the dollar is so strong at the moment. The indebted countries of the world are caught in a vice  between a strong dollar and a huge debt denominated in US currency.  The end result will be  multiple country defaults, riots, violence, and revolution. This will have boomerang effect on  the US economy. The US depends on the rest of the world. If the debt of the rest of the world slows down as it is doing already the US economy cannot grow, hence it cannot recover. The US economy depends on the exploitation of the rest of the world…

What is in store for the West? Slow decay initially, then sudden collapse. The US will be one of the last dominoes to collapse.  One of the three pillars of paper on which the US economy is based has already started to collapse, and that is the Stock Market. The month of October is crucial. The Federal Reserve and Plunge Protection Team will do everything to save the system. Hopefully, they might succeed, but, it is unlikely. When the stock market starts falling in earnest, multiple bankruptcies will occur in banks, large and small; corporations, large and small; insurance companies large and small; private pension funds, large and small; fracking and mining companies large and small; hedge funds and derivatives, large and small. Personal bankruptcies on a large scale will occur. A year or two later the bond market and the dollar will follow. Possibly, all three will collapse almost at the same time. No recovery will happen. What will happen after is anybody’s guess. Possibly chaos, a long transition, and the development of a new socially responsible system. Or, nuclear war. Only time will tell.

The monetary policy of the US is way too tight.

The monetary policy of the US is way too tight! How could that be if the interest rates are the lowest in the history of the US?  Interest rates alone do not determine fiscal tightness…

The dollar has been the reserve currency of the world since 1944 when it was crowned emperor at Bretton-Woods. It is the official currency of the world. Most trade is done in dollars,but less so every day. Most of the debt of the world is denominated in dollars,but less so every day.That is of eminent concern to the US. If the dollar loses its reserve status, the game is over.

In my article, “Gold and the Dollar in mortal combat”, I stated that gold does not need the dollar or any other currency, but the dollar needs gold. How so? Simple! Dollar currency can only be valued in terms of gold. By suppressing the intrinsic value of gold, the economic activity of the world is suppressed. When economic activity decreases,the need for raw materials decreases, but the debt burden of natural resource countries increases. Remember,most of the debt, ninety percent in fact, is denominated in dollars. Commodity prices go into collapse mode. What is the motive behind this? Is it to destroy the economy of China and Russia? Very likely. Of course, no one will  admit that. But there is a collateral damage or side effects to such a policy. Stock markets, bond markets,and debt in general rise to unsustainable heights. As there is less and less energy to keep the game going, the system goes into collapse mode.

The currencies of such countries as Brazil, Argentina, Venezuela are collapsing. Possibly, these are welcome results, because the governments of these and other countries are in the works to be “changed” because they are too independent. The negative side effects are also affecting friendlies such as Canada, Australia, New Zealand, and Norway.Their currencies are also collapsing. The boomerang of this policy is hitting the US itself. The velocity of money is collapsing. People have no money. The Baltic dry index is down. Labour force participation is way down, below sixty three percent. Infrastructure is deteriorating. The living standard of ninety percent of US citizens is decreasing rapidly. Socioeconomic unrest is increasing…

And,now, the coup de grace: China is devaluing the yuan. This is sending panic. China is being accused of currency manipulation. Why? Because the only way  China can devalue its currency is to de-peg the yuan from the dollar and start selling US treasuries. Other countries who hold treasuries such as Japan will follow.  This is the nightmare scenario. By suppressing the price of gold, the monetary policy is way too tight. The proper policy would have been to let gold reach and stay at its equilibrium value, whatever that may have been. Now, the US cannot let go. Gold will break out. Now, gold can be bought at around eleven hundred dollars an ounce. When gold breaks out it will be unavailable in any currency at any price. Only time will tell.

A Tale of Two International Communities

When western leaders speak of the “International Community”,they are mainly concerned with western nations. Statements such as “the international community will not tolerate this or that”, for example, can be translated as : the US will not tolerate it. Recent events have demonstrated this point.The International Community will isolate Russia with respect to its policy on Ukraine. It will sanction and punish Russia. So Russia must improve its behavior.,etc,etc,etc,ad nauseum. The US is the leader of this community and the US uses this façade of “International Community” to carry out its foreign policy.This type of behavior is applied to other countries which do not buckle under US pressure. But there is another International Community which I call the “International Community of the Rest”…

This “International Community of The Rest” numbers more than six billion people and contributes more than fifty percent of the world’s gross product. It is composed of the peoples of Africa, Asia, Latin America who have suffered and still suffer from the oppression, exploitation,and plunder of their natural resources.They also possess most of the natural resources of the Earth. One must remember that most of the wealth of the world comes from the resources of the earth through human labour and ingenuity.They are awakening and coalescing around Russia. A perfect example was the May 9th Victory Parade in Moscow.The International Community of the West boycotted the parade,but the International Community of the Rest celebrated the event.They celebrated the ceremony as the symbol of victory over fascism, slavery, oppression, humiliation,and exploitation. The special military forces of China, India, and others marched in the parade, creating a powerful symbol of coalescence.

The Afro-Eurasian land mass is fusing together. This is a  slow process but it is accelerating. “Silk Roads” East and West, North and South are being created. European states will be joining to ensure their economic well being.The future of Europe is tied to Afro-Eurasia. Latin America wants to join and form the block that I would call LAAFROEURASIA (Latin American/Africa/Europe and Asia). That is the fusion of the peoples of the Caribbean, Latin America, Africa, Europe and Asia into an economic and symbiotic relationship. These countries are also de-dollarizing. They will be saying adios, au revoir, auf weider sehen to the North Atlantic. Canada and the US may face isolation. It will be interesting, provided there is no war. Only time will tell…

Why is capitalism in crisis?

Why is capitalism in crisis? C’est la question du jour! Various reasons are given, and in my opinion, all nonsensical. We are led to believe it is the fault of the oligarchs, politicians, governments, opposing ideologies, etc. but capitalism itself is almost flawless. Just obey the laws of capitalism, whatever they may be, and everything will be great. But it is not so simple.

It is very unlikely that capitalism would have developed without the discovery of the New World and the Age of Discovery. One could say and claim that Queen Isabella and King Ferdinand of Spain were the originators of capitalism because they sponsored the Voyage of Christopher Columbus to find sea passage to India. Immense wealth potential was at the disposal of Spain and subsequently other European states, such as Portugal, France, Britain, Holland, Belgium, and much later, Germany, Italy, Japan, and the USA.Many of these countries, if not all, fought amongst themselves for the wealth and spoils of the world.They were called imperialist wars.

With the conquest of most of the world,all the conditions of capitalism were there- immense continents with limitless natural resources of all kinds,easily subjugated populations,cheap labour, slavery, huge monopoly markets for imperial countries’ goods, and a monopoly of money in gold and silver. Most important of all,strong militaries to impose its will, culture ,domination, plunder, and exploitation of its possessions.The colonial countries became very rich.Technologically advanced to enhance exploitation and plunder of the colonies.Capitalism was described as very progressive, dynamic.

The chief modus operandi of capitalism is debt. For the capitalist economy to grow,debt must grow.When US became the strongest country in the world it crowned itself Emperor of the world in 1944 in Bretton Woods,the so called Bretton-Woods Agreement.With it,the dollar became not only the reserve currency of the world,but also official currency of the world.Everything was traded in dollars.Two institutions were created to indebt and enslave the world: the International Monetary Fund and the World Bank.These two agencies indebted the post-colonial world into a new form of slavery.By de-linking the dollar from gold and placing it on oil, the petro dollar,the enticement of the world became more intense. Even the Hungarian “goulash Communism” was based on debt to the IMF and other banks.

Debt cannot grow to the heavens. It has limits.The Universe maybe infinite but the earth is finite.Debt growth is reaching its finite stage.The energy entering the US economic system is decreasing but the energy needed to maintain its internal and external operation is increasing.The US is simply sustaining itself through the reserve status of the dollar.The world is de-dollarizing itself. US economic power is in a precarious position.It is based on three pillars of paper: the dollar,the bond market,and the stock market and all three are based on debt. As debt cannot grow,there cannot be any recovery,despite zero interest,multiple quantitative easing, whether, they be covert or overt. One or all three pillars of paper will buckle and collapse.It will be very interesting…