Category Archives: the Offical Currency of the World

The Age of Survival Economics

Survival economics have been in existence since life began on Earth. The primary instinct of all life on Earth, be it plant or animal, is survival, and perpetuation of its own kind. Mankind has been no exception.

With the discovery of the New World, the Colonial powers of the West extracted immense wealth from the rest of the World. New settlements and new countries were founded. The new countries rose to immense prominence such as the US, and others such as Brazil, Argentina, Canada, Australia, etc. to lesser prominence. They prospered and grew, along with the US, as the Lands of Opportunity. Nobody, but nobody could equal the growth, the innovation, the power, and the wealth of the US. The dollar became the Reserve and Official currency of the World in 1944, and was proclaimed as such in Bretton-Woods, New Hampshire, USA. All the world’s debt and trade was denominated in US dollars. The dollar was convertible to gold at 35 dollars an ounce. The US became the master of the world. The only country that would not buckle was the war damaged USSR. The Cold War was instituted to destroy USSR. The Soviet Union collapsed in 1989 through it own internal decay and weakness. The End of History was proclaimed and Western Liberal Ideas were proclaimed as supreme and immutable like the Laws of Nature.

But it was not to be so. Man made concepts cannot be compared to the Laws of Nature. Economic systems are concocted to serve the economic interests of the ruling elite. Laws and ideas are created to brainwash the masses. Eventually, the system starts breaking down and no laws or recycled ideas can save it. We are at such a period now.

Despite denials, the world is in recession. Actually, some areas of the world are in depression. Wages have stagnated, especially in the EU, Canada, and the US. Jobs created in the US are low wage and part time. Attempts to stimulate the economy through quantitative easing have not worked. SNAP {food stamps} have been expanded to help the poor. Under President Obama, the SNAP program has expanded from twenty three million in 2008 to nearly forty five million in 2016. The food program is a double edged sword. It keeps the poor from starvation but it entices them to buy junk food and drinks which leads to obesity and ill health. They buy processed food because it is cheap. At the same time, the SNAP program is a huge subsidy for giant Agri business, food processors, and giant food chains.

There can be no recovery because the US is suffering from negative energy flow which is reflected in the growth of debt, individual, corporate, and governmental at all levels. Wages are stagnating. Whatever positive energy there is, goes mostly to one percent of the population, the ownership class. Some energy goes to around five percent of the population, the overseer class. The overseer class faithfully serves the ownership class, and some members are abundantly rewarded. The Precariat Class which is around ninety percent of the population gets very little, if any, of the positive energy flow. The Precariat Class has some positive energy flow in the form SNAP, etc, which is a form of subsidy to giant corporations.

In the end, everything flows to the ownership class. Tax cuts, deregulation, and infrastructure renewal will not help because it will be based on more debt. Survival Economics is already the Modus Vivendi for the Precariat Class. Massive violence in society could be next.

Gold Will Not Be Available At Any Price

In one of my previous blogs, I stated that gold does not need the dollar or any other currency, but the dollar needs gold to be the Reserve Currency or Official Currency of the World. Without the connection to gold, a Fiat Currency is a useless piece of paper that is imposed on the people by legal tender law. No other currency can be used in the US except the Dollar. The Bretton-Woods Agreement made the Dollar the official currency of the world with the convertibility of the dollar into gold at 35 dollars an ounce. All trade in the world was conducted in dollars. The US became Master of the World.

In 1950, the US had twenty thousand tons of gold and the rest of the world had very little. The gold reserves of the USSR were secret, but Western Intelligence analysts concluded that they were significant. By 1968, the run on the gold was significant, and in 1971 President Nixon defaulted on the US gold obligation of 35 dollars for an ounce of gold. Very significant events took place after the US defaulted. The War of October 1973 started between the state of Israel and the Arabs, which Israel would have lost without US help. In 1973, OPEC, the Organization of the Oil Exporting Countries, was formed with the help of the US. The US was the godfather of the OPEC, and OPEC promised that the dollar would be its’ official currency. The price of oil was encouraged to rise many, many fold. Third World countries went into massive dollar debt buying needed oil. Inflation ensued, followed by high interest rates imposed by Paul Volcker, the Federal Reserve Chairman.

So far so good. The US economy boomed due to the growth of debt. The Crash of 1987 did not matter. In 1989, Communism disappeared, the USSR collapsed, and Japan, the economic power house, went into irreversible decline, which continues to this day. The 1990’s were characterized by the plunder of the Russian Federation under the leadership of Yeltsin. In 1998 occurred the Russian default. The Stock Market boomed, not because of the NASDAQ dot com bubble, but because of the plunder of the Russian Federation by the West with the help of the Russian-Jewish mafia. Vladimir Putin is appointed Premier of Russia by President Yeltsin and the US stock market took a plunge, because the plunder of Russia was about to end.

The economy was on the skids, so  September 11, 2001, happened, but we do not know for sure who is really responsible, but it was good enough reason to declare the War on Terror to revive the economy. Osama bin Laden and his people were blamed. Osama was in Afghanistan, so Afghanistan was bombed and invaded. The Afghani War continues to this day with no end in sight. After the invasion of Afghanistan, the opium trade boomed as production rose from 96 tons annually under the Taliban to over 6000 tons presently and that is more than a several trillion dollar business, the biggest business in the world denominated in US dollars and controlled by the US. (The US dollar is not only the Petro-Dollar but also the Narco-Dollar.) In 2003, Iraq was invaded and Saddam Hussein hanged, not because of weapons of mass destruction but because Saddam refused to sell Iraq oil for dollars. The war in Iraq still continues; the War on Terror keeps the Western Economy alive.

In 2008, due to subprime mortgages and too much debt, the Stock Market and financial markets everywhere faced serious collapse. Under the leadership of Hank Paulsen, the US Treasury Secretary, the system was propped up. By 2011, gold went up to over 1900 dollars, and silver went up to near fifty dollars. After the economic debacle of 2008, the US and the World has been enduring negative energy flow. There is no real economic growth in the US, but statistically there is a concocted growth. Europe is just as bad, if not much worse, and Japan is dying. China is in a precarious situation as well. Third World countries are in depression or even super depression. Eastern Europe is similar. Russia is suffering, but is self sustaining, with very little debt and is the cleanest shirt in the laundry…

Non Western Central Banks are buying and hoarding gold by the tons. Some Western countries are repatriating their gold. People all over the world are buying physical gold and silver. People who buy physical precious metals do not sell them unless forced by circumstances. OPEC is in disarray, many members are selling their oil for other currencies such as the Euro and the Yuan. The dollar is still important but no longer absolute. The world is de-dollarizing. A point will be reached when there will be a panic for buying of gold and no gold will be available. Gold trading will be closed and gold will not be available at any price. The well being of countries such as the US will be changed for ever. Only time will tell.

 

 

Will the dollar be defended to the end?

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.

 

 

 

 

 

TURKISH BOOMERANG II

Geopolitical changes of great significance are taking place in Eastern Europe, specifically in the Ukraine but also in the Middle East. The US wants at all cost to build the Wall of Enmity from the Baltic to the Persian Gulf, and to the Indian Ocean, possibly to South East Asia, as far as the Philippines. But for the moment, let us study and analyse the Wall of Enmity from the Baltic to the Persian Gulf: the US wants to expel Russia from the Ukraine and Syria, that’s very clear. It would also like to control Iran, but to do that, it would have to destroy it.

The US would like to reduce the relationship between the European Union and Russia to a bare minimum, but to do that it needs alternative sources of energy with which to supply Europe. The Middle East would be that source. The greatest oil and natural gas reserves in the world are located in the Middle East, and if the US and its friends were able to control those resources and their channels of delivery, it would be able to control the destinies of the entire world, East or West, North or South. So, these wars we have now in the Ukraine, Syria and Iraq are struggles for the control of the World…

Let us make some suppositions. Suppose the US and its allies win. They would end up controlling all that natural wealth, and be able to control energy supplies to Europe, China, and the Indian subcontinent. They would dictate the price denominated in DOLLARS. The dollar would become the permanent official currency of the world. In addition, if they got control of Iran, they would also control the production and export of gas from Turkmenistan. China and India would be subject to US blackmail, just as Japan was before the Second World War, with the so called ” Japanese Effect”: surrender or war. The Japanese, being proud people, chose war.They needed to get control of Indonesian oil which at the time was under Dutch control. To do that, they had to eliminate the US Pacific Fleet stationed at Pearl Harbor, Hawaii which at the time was a colonial possession of the US. By the DOLLAR becoming the permanent official currency of the world, the US would rule the world and its closest Allies would enjoy immense privilege. I will leave it to the reader or readers of this humble essay to figure out which country or countries would benefit the most…

But let us suppose the West loses. Suppose the Resistance Axis of Syria, Iraq, Iran, Russia, and Hesballah of Lebanon win. Also suppose that in the struggle going on presently in the Middle East, the Saudis and the Gulf States collapse, and the Arab Nationalists who are vehemently Anti-West win. That Turkey slides into civil war, and the Kurds, who are about 20-25 %  of the Turkish population, rise up and seek their INDEPENDENCE. And, suppose that the Palestinians start their Third Intifada, sensing the victory of the Axis of Resistance… What would Israel and the US do? Would a Third World War begin???

The majority of the world agrees that ISIS or Daesh is evil, including the US, but it is secretly supporting it. It’s been bombing ISIS for more than a year with nothing to show for it! Why is Turkey, a NATO ally, openly supporting it?  If ISIS is evil, then countries fighting ISIS are on the side of Good.  Turkey, the US, the Saudis, and the others supporting ISIS are on the side of Evil. The Morals and Ethics of the Universe are on the side of Good. It is self-evident that the side fighting for Good against Evil will win. And by supporting evil, the US will not be able to build the Wall of Enmity. Also, sooner or later the dollar will not be used in world trade. So, the Turkish Boomerang will have disastrous consequences for the world, but especially for the US…

Let us be frank. The modus operandi of the US and its allies is lies and deceptions. The modus operandi of Russia and its allies is IRONY, the cosmic manifestation of truth and justice. Edgar Cayce, an American, once predicted that Russia will become the hope and salvation of the world. Only time will tell.

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 Dollar vs Gold

There is a battle going on between the International Community of the West and he International Community of the Rest. This has been going on since the beginning of Colonialism. The Colonial Powers of the West have practiced a policy of conquest and exploitation, which still continues. Its’ instrument of exploitation is the dollar. The US owns, prints, and uses the dollar to its advantage. Even the European Union States, in trade amongst themselves, must use the Dollar. Such is the power of the dollar and the US, and the US wants to preserve this power…

But now the dollar is under attack, even though the US Dollar Index is above 90. (Actually, it is around 97.) The Index measures the value of the dollar versus other convertible currencies such as the Euro, Yen, British pound, Canadian and Australian dollars, and of course, the Swiss Franc. The Dollar Index has gone as high as above 120, and as low being below 80. A range between 90 and 100 is ideal. Not too hot, not too cold. It is hot enough to destroy or devalue currencies of natural resource countries such as Brazil, Venezuela, Argentina, etc; countries that have an independent economic and foreign policy. These and other countries suffer from immense dollar debt. As dollar value rises their debt burden rises and becomes unbearable. Social upheaval follows. Regime change takes place, either peacefully or violently, and a friendly regime is installed that does what the US wants it to do. Lately this Modus Operandi has not been too successful in Latin America.

It has contributed to the destruction of Socialism. The CIA has probably infiltrated every socialist government in Eastern Europe, including the Soviet Union. Émigré groups have played a key role. How does one explain the fate of Nicolae Ceausescu who went from being the “de Gaulle of Eastern Europe” to being executed by firing squad together with his wife, Elena?  Simple. He had after all, paid his dollar debt to the West by practicing severe austerity. And now, Romania is again in debt, and its economic conditions are not very good. It is member of NATO and the European Union. Now, Romania, has no real say on the world stage as it had under Ceausescu. Such is life. Since the collapse of the Soviet Union, the success has not been that great. Afghanistan has been occupied but not conquered. The Taliban will most likely win. The US will be kicked out. Opium trade which is controlled by the US will probably be lost, and the dollar will lose its significance in the opium trade. The opium and illegal drug trades are huge. Trading in drugs is the number one trade in the world. It dwarfs oil, natural gas, and automobiles. And, it is based on dollar. Wonder why US wants to be in Afghanistan? The drug trade supports the dollar.

The dollar is fiat currency based on debt. When debt in dollar terms grows, the power of the US grows. The indebted countries are manipulated according to the needs of the dollar country. Zero interest rates entices more countries into debt, because these countries do not know the other side of the story. The other side of the story is that low interest rates are a “put” or support for US stock and bond markets. Money from all over the world pours into the US stocks, bonds, and high end real estate market. The value of the dollar goes up, indebted countries start suffering. Their currencies collapse, commodities collapse,  inflationary depression and coups d’état follow. This is what is going in geo-economic terms  in the world presently.

The International Community of the West under US leadership wants the money of the world to go into stocks and bonds. It does not want the money to go into gold. Gold has been pushed into artificial hibernation via paper shorting. The interesting side effect of this artificial hibernation  has been that gold has been moving from the West to the Rest, and is not coming back. China is the number one producer of gold in the world and keeps it at home. Russia is the number four producer of gold and keeps it at home. Gold mining of the world is dominated by western corporations, whether it be in Africa, South East Asia, North or South America, or Central Asia. They also participate in the suppression of gold. These gold corporations are instructed to supply it to keep the price suppressed because it benefits them. There is less revenue sharing with countries where gold mines are located. Also, they are protected from being responsible for enormous environmental damage. Gold mining is environmentally very destructive. It is one of the most destructive, on par with oil fracking. However, it does not produce earth quakes as do oil and gas fracking.

The dollar is strong and it will stay strong as long as the dollar index stays in the range between 90 and 100. In this range, it is strong enough to cause havoc to the currencies of most of the world, including the currencies of its two closest allies, Australia and Canada. They are collateral damage. Gold is weak in order for the dollar to be strong. It is a very artificial relationship. It is a severe form of dis-equilibrium which frequently develops in nature. Dis-equillibria in nature are rather frequent. Weather patterns are classical examples. When weather dis-equillibria develop they manifest themselves as tornados, hurricanes, lightning, snow storms, etc, until the energy of dis-equilibrium  is dissipated and normal weather patterns return.

Financial disequilibria are all unnatural whether they be the Mississippi Bubble, the South Sea Bubble, or the 1929 Crash. The consequences of crashes are usually very severe for the people. We are approaching such an event now. There are warning signs as in the weather. There are mini crashes preceding the big one. The Big One will come without any warning. The US Treasury and the Federal Reserve are doing their best to prevent one, but they will not succeed. It is simple. One cannot violate the Laws of Nature. It will be very interesting, and only time will tell.

What is the prospect for gold? It is Nature’s money. Nature’s money is a form of energy. If one looks at gold it has the color and the energy of the sun. If one looks at the fiat note it has a picture of some famous individual, number, coat of arms, and the name of the country. Fiat can be printed, but gold cannot be created nor destroyed. It is eternal. It was created when the Universe was created. The equilibrium price of gold with the present buying power of the world’s reserve currency would be at least 3000 dollars. The people of Afro-Eurasia are buying gold. The Chinese government is encouraging  its citizens to save in gold. It is wise to invest in Nature’s money. Gold represents TRUTH.

 

 

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.

The Dollar, the American Thunder Bolt of Zeus

Most people do not know how much power and control the US holds over the world by the fact that the dollar is the reserve currency of the world. Until recently, it was the official currency of the world. By controlling the reserve currency, the US in fact, controlled the world. At Bretton-Woods, New Hampshire in 1944, the dollar was crowned Emperor of the World. The International Monetary Fund {IMF}, the World Bank, and the Bank for International Development were created to impose the rule of the dollar. These institutions have international sounding names, but they are as American as a McDonald’s hamburger…

After the Second World War, the Colonial World of Asia, Africa, Latin America, and the Carribean  were decolonized. Instead of being free and totally independent they went right into ” dollar debt dependency”. They jumped from the pan into the fire. In this Salto Mortale, they were guided and helped by, what do you know, the IMF, the World Bank, etc. The agenda was set by the US Government to fight Communism. They have been in hell ever since. Any leader who rebelled was overthrown, assassinated, hanged or impaled. Many communist countries of Eastern Europe were infiltrated and enticed into the beauty of dollar debt. Poland, Romania, Hungary, and Yugoslavia come to mind. Hungarian dollar debt was referred to as “Goulash Communism.” Communism is gone but the dollar debt remains. Also, Yugoslavia is no more, but the debt of the successor states has increased markedly.

Presently, the world is so indebted that debt can hardly grow. The burden of debt of the Third World and many countries of the First World has become unbearable. Individuals, countries, nations, and other entities  will start going into default. The US is the most indebted nation in the world ,but that is no big deal, because it is indebted in its own currency. The rest of the world supports the US debt by holding dollars. In the process it is subservient to US interests. In other words, whatever the US wants, it gets and the rest of the world pays, because US possesses the Thunder Bolt of Zeus.

It is immoral to entice individuals, and/or nations to go into debt, Christianity and Islam condemn usury; it is a criminal act. The Western media constantly encourages people to go into debt. Capitalism without debt is like life on earth without water. It cannot exist and thrive. The world’s debt is slowing down, hence consumption is decreasing which is leading to a deceleration of growth.  Wages are stagnant or decreasing. The velocity of money is at an all time low. The Baltic Dry Index is going down. World trade is decreasing. The recovery in the US has not been ” recovery”. Instead, it has been stagnation to the down side, with 94.5 million people in the US no longer in the labor force. The reported unemployment rate is 5.1. That is an outright lie and deception. Eric Blair, aka, George Orwell said that telling truth in an Age of Deception is a revolutionary act. We live in an age of lies and deception. The Modus Operandi of the present economic system is lies and deception. US power will persist as long as the Thunder Bolt of Zeus has juice. How long will it last? Nobody knows. The US will do everything possible, including war, to maintain it. However, it will be the rest of the world that will determine the longevity of the dollar. The Zeus of antiquity and his thunder bolts are no more.

The bullshit of the Fed raising or not raising rates.

It is amazing how the whole world is awaiting the Fed decision. Economic decisions of great importance will be made in the economy of the world that will affect countries and millions of people. It is tragic that a group of individuals of average intelligence, who are unelected ,hold the fate of the world in their hands. Other “lesser” individuals study their every move. Economically speaking, the Fed is considered to be the “Fountain of Wisdom”; in actual fact it is a “Fountain of Nonsense”.

The “Great Recession” lasted from 2007 to 2009. The economic system was on the verge of collapse. Wall Street money centered banks were failing. A bazooka was used to save it. The Federal Reserve introduced a near zero interest policy and quantitative easing. Banks had to be saved and after all,that is the primary function of the Central Bank. That price stability and employment are primary functions of the Fed is nothing but a façade. The essence of finance capitalism is  banking, hence, the Federal Reserve is its guardian. It will do anything to save it, including financing wars and overthrowing governments. It must protect and protect the “Reserve Status of the dollar”.

No recovery occurred in 2009. Growth in the US is impossible because the energy entering the US economic system is decreasing, but the energy needed to maintain its internal and external obligation is increasing. This sitation is sustainable only because the dollar is the “Official Currency of the World”. The dollar position must be maintained at all costs, and that is the real function of the Federal Reserve.

There is no recovery in 2015. Third World countries are  or are entering hyperinflationary depression. Their currencies are collapsing vis a vis the dollar and gold. The prices of various commodities are in free fall. Their debt burden in dollars has become unbearable because the ever increasing export commodities are earning them less and less dollars. As a result, the export of manufactured goods is also in free fall. The world’s economy is in severe contraction, possibly entering a severe depression. The world’s stock markets are also in free fall. Interest rates cannot go up naturally or be raised by the central bank. The velocity of money is also in free fall. The only time interest rates will rise will be to protect the dollar. This will happen when the world starts to abandon the dollar in earnest. There has been no recovery and there will never be one until this economic system is radically altered or replaced by something totally new. Only time will tell.