Category Archives: stock market

Gold Will Not Be Available At Any Price

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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.

 

 

Will the dollar be defended to the end?

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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.

 

 

 

 

 

The velocity of money and the Baltic Dry Index.

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The world economy is dying. Powerful people of the world are in denial. They think they will be able to correct the situation, but the world economy cannot be saved. The two indicators of a dying economy are the velocity of money and the Baltic Dry Index.

Let us examine the velocity of money. The simple definition is the speed with which money circulates through the economy. The more dynamic the economy, the more optimistic people feel about jobs and economic security, the more they feel relaxed and the more likely they will spend, travel, feel good about the country, the government, the people, and themselves. Presently, the velocity of money is collapsing. Whatever money ordinary people earn and have they do not want to spend. Also, many, many people have no money to spend. The situation is very dire, but one would not know by watching the “evil vision”. On evil vision, attractive women in eternal spring dresses, and men in impeccable suits with or without neckties constantly proclaim prosperity. The only people enjoying prosperity are the less than one percent of the ownership class and about five to ten percent of the overseer class to which the stars of the evil vision belong. (Evil vision is TV.) There is so much discontent in the country that it threatens the stability of the country. The economy is getting worse. Just look the stock market and the high yield bond market!

Another measure of how bad the US and world economy are is the Baltic Dry Index. Just last week it dropped below four hundred. Before the “Great Recession” of 2007-09, it was registering in the several thousands. After the so called Great Recession ended, it recovered to almost 2000. Now, after seven years of recovery it dropped to below 400, in the year of 2016. Any intelligent person, non-brain washed, knows that there was no recovery. In one of my previous posts, I stated that economic recovery in the US is impossible, because the energy entering the US economic system is decreasing, while the energy needed to maintain its internal and external operations is increasing. The Reserve Status of the dollar in the world is enabling the US to maintain its operation internally and world wide as long the rest of the world is accepting the dollar. That ability to maintain its operations is based on debt. As long as the rest of the world accepts American debt there is no problem. But that is ending and that is the problem. When the dollar is rejected it will be kaput.

The Baltic Dry Index {BDI} is indicating that world trade is collapsing. Empty ships are being anchored in ports. Oil tankers, full of crude, are anchored. There are few buyers of crude. Some experts are telling it is going to get worse. Collapsing BDI is possibly signaling world wide depression. Decreasing velocity of money is indicating that the majority of people have no money to buy even basic necessities.  Why are 94,000,000 people not in the labour force? Why are 47,000,000 people on food stamps? Why are wages for the non overseer class stagnant and decreasing? Why is the infrastructure of this nation dilapidated? Up until 2016, there was plenty of money for Wall Street. Now the stock markets and the bond markets of the world are collapsing. It could be that the world is entering the Economic Black Plague State. Only time will tell.

 

Quo Vadis, 2016?

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2016 may turn out to be a very significant year. Many thought that 2015 would be the year of the stock market crash, but this didn’t happen. Many more negatives than positives occurred in 2015 though. Stock indecis reached new highs in the first half of the year, and now at the end of the year are in correction mode. It is not likely that they will crash in the last few days of trading remaining, although they could, since nobody expects it.

On the world scene, the West and Turkey were exposed as chief supporters of ISIS, in addition to Saudi Arabia and the Gulf States. The Paris and San Bernardino tragedies should not have been a surprise. The Russian plane disaster in Egypt was a surprise but the Western press did not moan about it. The Beirut bombing by ISIS did not get much coverage. The Turkish destruction of a Russian bomber over Syria was not really condemned by the West. The hypocrisy of the West was in full bloom in the Ukraine, the Middle East, South East Asia and other places in the world.

Also in 2015, precious metals, oil, and other commodities collapsed. The dollar was strong and Third World economies were in a severe depression. Canada, Australia, and some European states were entering a depression, but Russia just got stronger. China was trying to stabilize its economy. The Yuan became an International Reserve Currency member, and even though only as a junior partner, this is just the beginning.

What will 2016 bring? It will be much more exciting than 2015. It could be the Year of Super Black Swans. The most important event that will most likely take place is the American presidential election in November. There is a lot of anger and discontent in this country that the mainstream media does not show but which will fully manifest itself this Election Year. There is only one candidate that stands out, and that is Donald Trump. He is politically “incorrect” and people love it. All other candidates, Republican and Democratic, are nothing more than cookie cutter “apparachicks”. Powerful people in the country want to resuscitate Senator Ted Cruz, but they will not succeed; Donald Trump, on the Republican side is unstoppable and Hillary Clinton will be the Democratic nominee.

The economy will play a key role in these elections. In an earlier post I stated that the present US economy is based on three pillars of paper: the dollar, the bond market, and the stock market, and all three are supported by debt. This situation cannot be sustained. The presidential election and the economy may turn out to be very ugly and a super bad Black Swan may manifest itself.

There is a war going on between Russia and the US, whether people realize this or not. The US wants to destroy Russia, leave it fragmented, and plundered. The war in the Ukraine may start any moment. The Kiev regime days are numbered. It will lash out and lose. History is on Novorossia’s side. When war starts, the Ukrainian Army will desert. Only Western mercenaries and jihadis will fight on the Kiev Junta side. The Ukrainian People will rebel and chase the Junta out of Kiev. A super Black Swan may develop in the Ukraine.

A super, super bad Black Swan may develop in the Middle East. It is sad that the West, Israel, and Turkey are supporting ISIS. There is a danger of an Israeli- Hesballah war. Hesballah is heavily engaged in operations against ISIS in Syria, so Israel may take the opportunity to attack Hesballah and get the waters of the Litani River. Israel desperately needs water. Hesballah may not be a pushover. Also, Palestanians will join in the fight against Israel. ISIS might lose the war in Iraq and Syria. Turkey has invaded Northern Iraq around Mosul. The Kurds in Turkey are rising up. Saudi Arabia is not doing well in Yemen. The US, Israel, Turkey, and Saudi Arabia may lose because they are on wrong side of History. Nuclear weapons  may be used. A super bad Black swan may develop.

The European Union is in deep crisis; it has no independent foreign policy  Economically, many of its’ countries are in a deep depression.The Baltic States, Poland, Romania, Bulgaria are in a depression. France, Italy, Greece, Spain, and Portugal are no better. Germany and Scandinavia are also suffering. The Russian sanctions have boomeranged. A super Black Swan here is not likely in 2016. A shifting of Europe from the North Atlantic to Russia is likely though, and migration will be a big problem.

Africa is waking up and wants to control its natural resources. It is shifting East. A super bad Black Swan here is not likely. Latin America is somewhat less stable. The governments of Venezuela, Brasil, and other Latin American republics will be under attack but will survive. The collapse of commodity prices and dollar debt will be a big problem for Africa and Latin America. The shift to the East will continue in this coming year.

The Indian Subcontinent will be fairly stable. The Taliban will gain strength and possibly gain power. The TAPI pipeline is being built from Turkmenistan, Afghanistan, and Pakistan to India. The Taliban will not oppose it. Iran is developing a very strong strategic partnership with Russia. This Iran-Russia partnership is one of the most natural partnerships to develop in the world. India is developing a strong relationship with Russia and Iran as well. This will continue in 2016. Putin  made a visit to Iran this year, and Prime Minister Modi of India visited Russia this week confirming the desire for this relationship.

China is developing a strong relationship with Russia. China and Russia realize they have to stick together or they will hang separately. South East Asia, despite the TPP, will move closer to China. It will develop Modus Vivendi with China. Its prosperity depends on close co-operation with China. China is the magnet that is pulling the world away from the US. A confrontation in the South China Sea is just one example. But the chances of a Black Swan in South East Asia is not very likely in 2016.

In Summary, 2016 will see increased confrontation between Russia and the US. The dollar will be under attack and gold will rise. Events occurring this year in the US will confirm that the US is in pre-revolutionary state. If powerful individuals try to eliminate Donald Trump, people will rebel. If one of the three paper pillars of the economy cracks, the whole system will collapse. The chances of nuclear war will increase. 2016 will be the beginning of the end of tall buildings, the most wasteful symbols of the system based on waste, arrogance, and greed. People will be returning to simpler things, a respect for natural things, like respect for Mother Earth. It is the only home we’ve got. Happy New Year!

 

The Big Shift

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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.

No economic recovery is possible,if ever.

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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 future is very uncertain.

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The future of the world is very uncertain. Thermo-nuclear war and the life as we know it could end instantly. In a matter of hours or days, in fact. Life on earth would be close to extinction. Most people do not think in those terms,but the individuals who plan wars do. Most people are concerned about personal matters, such as family members, their own general well being, jobs, love, and their health. In the past, world events did not have such an all encompassing effect as they do now. Presently, the whole world is interconnected. So, let us speculate about our world’s problems…

Economically, tensions are building every where. Let us look at China. Every body is claiming that China is slowing down, but so what? It is natural that China should grow at its own pace. China is resilient and the Chinese people know how to suffer and take pain…

Presently South East Asia is the most dynamic region of the world. Let us list the countries located there : the Philippines, Vietnam, Laos, Cambodia,Thailand,Singapore, Malaysia, Myanmar, and Indonesia. Also, Australia, New Zealand, Papua New Guinea, the Fiji Islands and the Solomon Islands are a part of this huge region. There are some disputes amongst themselves and the Chinese concerning the resources of the South China Sea, specifically, the Spratly  Islands. Without outside interference, resolutions will be peaceful. China wants peace. This is the place where the Silk Road will start. It will have two paths: one through India, Pakistan, Iran, Iraq, Syria, Turkey to Europe. The other route will go through Saudi Arabia over the Gulf of Aquaba to the Sinai, Egypt and into Africa. Also it could go across the Red Sea into Africa. The other major branch of the Silk Road will go through China, Mongolia, Kazakhstan, Russia to Europe. In other words, Africa and Eurasia will be interconnected and intertwined. There will be no place for foreign interference. Japan will have to join or be doomed. This will be a huge community of nations of Afro-Eurasia based on equality and co-operation. The Trans Pacific Partnership will not succeed. The TPP will fail...

The nations of Latin America  and the Caribbean will join in. Trade between Latin America -Carribean  and Afro-Eurasia will use the southern routes of the Pacific and Atlantic Oceans. The US and Canada will try to prevent this inter-continental coalescence but will not succeed. They will have to join in or face isolation. Nuclear war or any major war would prevent the inter-continental coalescence.

It is precisely for this reason, that the US and its allies want to build a Wall of Enmity between Europe and Russia. As I mentioned in a previous post The Wall of Enmity , this wall would run from the three Baltic states of the north-east through Poland to the Ukraine in the south-east of Europe. That is why the Ukraine is so important to the permanent division of Europe and its subservience to the US. Many politicians and political parties of Europe are aware of this and will oppose the scheme. I do believe that Ukrainians will decide their own fate and will not join the European Union which is in serious crisis. The Ukraine and Russia are one country and one people. They have a common heart and common soul. The present junta regime in Kiev is undergoing decay. Socio-economic conditions of the country are worsening by the day. More than one million refugees have been welcomed into Russia like family members and not as refugees. It will not be European nor American gas that will keep Ukrainians warm in the winter but Russian gas. Whether war is restarted or not, Ukrainians will rebel and overthrow the Junta and foreign influence. It will be a sight to behold…

One of the key ponts of change will be in Canada and the US.These two countries are intertwined culturally, linguistically, ethnically, and historically. They are entering the greatest crisis of their existence; both are in denial. I will only discuss the US, but this discussion more or less applies to Canada as well. The strongest power on the planet is the US but its power is essentially ephemeral. The US economic system does not have strong foundations. A strong foundation for the US would be if seventy percent of the population lived and cultivated the land. The population is now too big to be fully employed in services and industry. If 200 million people lived as guardians and cultivators of the land, they would be independent and not the slaves of a debt system.They would have their own marketing and credit outside the big banks. They would become the strong back bone of the country. Instead,they are wards of the state. This is the age of Finance Capitalism based on a slavery called DEBT. This is the essence of capitalism. The US power is based on three pillars of paper,the dollar,the stock and bond markets. All three are based on debt. Will they fall together or separate remains to be seen. Time will tell….

One region that must be discussed is the Middle East. It is the cauldron of cauldrons ( see my post Large Middle East cauldron is brewing around the corner…). The structure of the Middle East has been destroyed. Iraq has been destroyed. Libya has been destroyed. Syria is being destroyed now. Saudi Arabia and the Gulf States will meet their destiny in Yemen and it will be very soon. Egypt has been neutralized for the time being. Turkey is on the verge of civil war. The only countries standing tall are Israel and Iran. Iran is essentially self sufficient, but Israel is not. Sanctions against Iran hurt but do not destroy it. Iran became stronger. Israel,on the other hand, depends on a lot of aid, especially from the US and Germany. Also, Israel lacks water. It covets the waters of Lebanon. War for water is inevitable. Presently,Israel imports water from Turkey. Efforts to desalinate water are underway but it’s not enough for a high tech country such as Israel. All this destabilization of Arab countries is essentially for the benefit of Israel without the necessity of overt Israeli involvement. Israel is just waiting to pounce. And Iran is watching the situation very carefully, giving aid to the Syrian government and the Huthis of Yemen. War seems inevitable. Which side will win? It will to a large extent depend on the US economic situation. Only time will tell….

(These are some of the scenarios for the next year or two.)

 

 

 

The FED will defend the stock market to its’ last breath

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The FED claims that it does not watch the market. It is concerned but not overly.This is further from the truth than one can imagine. The two things they are concerned with is debt and the stock market, because the essence of the economic system is debt and the stock market. Debt is the blood of the system and the stock market is the heart.The economy is a living organism. Let us compare it to a human body.The key components of the human body are the blood and the heart. The heart cannot do without the blood, and blood cannot do without the heart,and the whole body cannot exist without either of them. Massive heart attack and the patient dies. Massive blood loss,if a transfusion is not available, and the patient dies…

What happens when the stock trading opens and there are no bids? The market goes into free fall. The “Plunge Protection Team” moves in and artificial bids are created to stabilize the market. Most of the time the Plunge Protection Team is successful and they blame the situation on some “glitch”. But one day they will NOT be able to prevent the crash.The crash will occur,the stock market will be closed and the consequences will be catastrophic, equivalent to a massive heart attack in a human being: the FED will and must support the stock market.

What happens when the credit ceases? There will be no blood.The FED will try to infuse liquidity, but if credit infusion is insufficient or inappropriate, the system will collapse. The patient will die. So the FED will try to do everything to save the system but may not succeed. This will signal the death of the economic system and the beginning of the new age. It will be very, very interesting!