Category Archives: International Community of the Rest

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

 

 

 

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 Big Shift

The world is shifting, whether one likes it or not. It is inevitable. As I mentioned in an earlier post, there are two international communities: the one of the West, and the other of the Rest. The International Community of the rest is much bigger, and consists of more than six billion people. The International Community of the West, up until recently, played the leading role. Not anymore. The International Community of the Rest refused to sanction Russia because of Crimea. The Western Community sanctioned Russia for which its members in Europe are suffering. The US wants to destroy Russia, partition it into three parts and exploit it. By destroying Russia, the West would be able to control China on all sides, hence achieving the domination of the world. But right now, the world is at a stalemate. This stalemate cannot persist for long because of the inherent instability; it requires too much energy. Projecting power a la US is very expensive. The US is able to do this because of the unique status of the dollar in the world. The dollar is after all, the official currency of the world. The world is supporting the use and value of the dollar, while the US prints it. What a beautiful arrangement!.

By trying to sanction Russia, the US wanted to destroy it. But the West does not know Russia, its people, its history, or its culture. Russia is an unassailable fortress. It is totally self sufficient. Morally and ethically speaking, Russia is on the right side of history. An American,Edgar Cayce, once said that Russia is the hope of the world. The Pentagon boys and the Wall Street boys should be aware of this. The International Community of the Rest is aware of this, and is siding with Russia. Defending the independence of nations is morally and ethically correct. Destroying countries, nations, and installing puppets is immoral and evil. The world is realizing this and is coalescing with Russia. Russia and China have close relations. In trade,they are using their currencies, not the dollar. There is the Shanghai Co-operation Organization composed of China, Russia, and Mongolia. Many of the former Soviet Central Asian Republics are also members, like Kazakhstan, Uzbehkistan. Tajikistan, and Kyrgizia. India and Pakistan have recently joined. Iran has observer status but it also wants to join. The Eurasian Union consists of Armenia, Kirgistan, Kazakhstan, Tajikistan, and Russia. Vietnam recently joined. MERCOSUR of Latin America is negotiating with the Eurasian Union about joining. (Members of MERCOSUR are Argentina, Brazil, Venezuela, Bolivia, Paraguay, and Uruguay.)

The US is also moving towards forming trading blocks in the Pacific and the Atlantic, known as Trans Pacific Partnership, and the Trans Atlantic Free Trade. The TPP is almost finished, but rans Atlantic talks are not going that well. There could be confrontation brewing between the International Community of the West led by the US and the International Community of the Rest coalescing around the Russia Federation. Nuclear war cannot be excluded.

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…