Category Archives: the US dollar

Syrian War II

The ISIS stage of the Syrian war is changing; the US approach is changing. In addition to supporting ISIS it has also thrown its support behind the Kurds of Syria and Iraq. The plan to partition Syria and Lebanon has not changed. The occult plan to remove Assad and Partition Syria should have been accomplished by the end of 2014 but plans did not pan out; even the poison gas trick did not work.

The plan to remove Assad and to implement “Partition Syria” is still the goal, except it now has a sense of urgency. Assad is still in power and the Syrian Army is getting stronger. Assad is resilient and tough like his father Hafez was. Hafez would not buckle under US pressure and recognize the State of Israel, as did Egypt under Anvar Al Sadat and Jordan in the Camp David Accords under President Jimmy Carter. Lebanon would also not recognize Israel. By recognizing Israel, Anwar Al Sadat paid with his life. He was assassinated in 1979.

Israel thought it could partition Lebanon by itself, and get the waters of Lebanon, especially the Litani River. Israel, like any other state, is not viable without an abundance of fresh water, and their attempt did not succeed. The Israeli invasion of Lebanon of 2006 failed. Hesbollah gave Israel a very bloody nose. Israel sustained heavy losses and was forced to withdraw. The US and Israel decided to dismember Syria by proxy and so the Islamic State, ISIS, was created. The Syrian war started in earnest in 2011, the year that Gaddafi of Libya was impaled and killed. Remember what Hillary said: “We came, we saw, and he died. Ha! Ha !” Sick mind. Putting a demented twist on Caesar’s immortal words: Vene, Vidi, Vici.

By 2013, they blamed Assad for a chemical attack; it didn’t work. By 2014, the slogan was: Assad must go. Assad did not go. Russian support of Syria increased as did Iranian and that of Hesbollah of Lebanon. With their help, Assad was able to liberate the ancient Roman city of Palmyra, as well as Aleppo. Israel would bomb the Syrian Army position in support of ISIS. Even during so called peace time, prior to 2011, Israeli jets would regularly fly over Damascus and the summer residence of the President of Syria; Syria would not respond.

The situation today is very critical. The US has realized that the only way to partition Syria is to establish an independent Kurdistan out of North East Syria and North East Iraq. The US has forces in Iraq not to help Iraq fight ISIS but to control it and to delay its victory over ISIS. Independent Iraq would help Assad and the US wants to prevent that; the Iraqis know that, Especially Muqtada al Sader and the Shias. The Syrian war is heating up. Turkey will not tolerate an independent Kurdish state in Syria and Iraq. Severe estrangement is developing between US and Turkey and Turkey will probably leave NATO and abandon the US.

The US shot down a Syrian jet over Syria, an independent state and member of UN. In all honesty, this is a violation of International law. Syria is not an enemy of the US, nor has Syria asked for US help. Also, Syria is not a threat to US security. The actions of the US also violates the morals and ethics of the Universe. There is no justification for such actions except raw power. If the US persists in such actions, there will be a reaction. Remember the Third Law of Motion: for every action there is an equal and opposite reaction. Russia will strengthen Syrian air defenses and US planes and drones will start falling from the sky a la Vietnam War. It is possible that Karma is based on the Third Law of Motion. Iran will also increase its help to Syria.

If the Kurds proclaim their independence with US help, Turkey will enter the fray on the side of Syria. If that happens, the US will lose. Would the US bomb Turkey? Possibly, but not likely. However, again, anything is possible.

Increased Iranian help, let us say, 200,000 Iranian Troops or Irano-Turkish combination of 300,000 troops would arouse US-Israeli-British ire and a huge Middle East War would begin. The war would engulf Lebanon, Egypt, Jordan, Saudi Arabia, GCC (Gulf Cooperation Council), Yemen. The Saudi dynasty and Jordanian monarchy would collapse. The petro dollar would be finished. Oil prices would skyrocket. The EU and the US would enter into super depression. The rest of the world would  not be any better. However, countries connected by land from the Pacific- Indian Ocean to the Atlantic would start to coalesce. Afro-Eurasia would start coalescing. The US and the UK would be excluded.

The plan of the US is partition of Syria via Kurdistan which would become an ally of Israel, supplying it with precious fresh water from the Euphrates as well as oil. The second reason is the humiliating defeat of Russia and its’ eviction from the Middle East. The third reason is the destruction and conquest of Iran, the enemy of Israel and Saudis. By controlling Iran, the US would be able to control the Persian Gulf. It also would enable the US to control Central Asia. Just look the geography of the area.  Extra big war is in the works in the Middle East which may go nuclear.

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.

The significance of India-Pakistan animosity in the world of geo-politics

When India achieved independence from Britain in 1947, it split along the religious line: the Hindu India and Islamic Pakistan. The split was encouraged by the Anglo-Americans. The British did not like Mahatma  Gandhi or Jawarhal Nehru, and preferred Muhammad Ali Jinna, the founder of modern Pakistan.

When the split occurred, Hindu India, a much bigger country, ended up with Jammu Kashmir, a  beautiful Himalayan valley populated mainly by the Muslims, but ruled by a Hindu who sided with Hindu India. The fight over Kashmir persists to this day and will persist into the future.

Both Pakistan and India are multi-ethnic. In 1971, Pakistan split into West Pakistan, a larger region west of India, and East Pakistan, east of India, the so called Bengal. Its new name is Bangla Desh, land of Bengalis. Bitter war was fought in East Pakistan by West Pakistan to keep  East Pakistan in union with West Pakistan. Three million Bengalis lost their lives. Under the leadership of Indira Gandhi, the daughter of Nehru, India helped East Pakistan to become independent. The US sided with West Pakistan, and President Nixon sent the 7th Fleet from the western Pacific into the Bay of Bengal to intimidate the Indians. It did not work, as the Soviet Union sided with India. In December of 1961, Russia sided with India over the annexation of Portuguese Goa, while the US and Britain sided with Portugal. India considered Russia an “all weather friend”. How things change!

India is much bigger with a population of over 1.25 billion people and land area of around 1.2 million square miles. Pakistan, on the other hand, is much smaller with a population of over 200 million and a land area of around 300,000 square miles. Strategically speaking, Pakistan is holding more pivotal connections of Asia. Pakistan borders China on the North-East, India on the East, Afghanistan on North-West, Iran on the West, and the Indian Ocean on the South. India is considered a subcontinent of Asia jutting out to the Indian Ocean. Its land borders are Nepal, China in the North, Bangla Desh, Mayanmar to the East, Pakistan to the West.

Pakistan has a strategic relationship with China and a subservient role vis a vis the US. India has a rather cool relationship with China because of its’ border disputes in the Himalayas, a warming relationship with the US, and a geostrategic relationship with Russia.

As China enters the global stage, it is developing trade routes with South-West Asia and Europe via Pakistan, Iran, Turkey, the Balkans and into Europe, and if Turkey achieves rapprochement with Russia, the process will accelerate. Also, Pakistan is a transit country enabling the US to invade Afghanistan, maintain military operations against the Taliban, and control the opium trade, a highly profitable enterprise that helps maintain the dollar as the Reserve Currency of the world. It is self-evident that Pakistan is extremely important, geo -strategically speaking, to US and China; it is also a nuclear power.

As mentioned, India is a large and important country of the Asian Subcontinent and the center of Hindu Civilization. It has had a very independent foreign policy, first as the co- founding member  of the Non-Aligned Movement, and now as the co-founding member of BRICS, { Brazil, Russia, China, India, and the Republic of South Africa.) It is a nuclear power, and the 6th or the 7th economic power of the world.

India is drifting West, buying high tech weapons from Israel, Rafale jet fighters from France. It is entering some sort of military basing arrangements with the US which has never happened before. US wants India to be a keystone in the Wall of Enmity that the US is building from the Baltics, Poland, Ukraine, Black Sea, Turkey, Syria, Iraq, Persian Gulf, India, Philippines, Japan to South Korea. The Wall would hem in Iran, China, North Korea, and Russia. The gate keeper with the keys would be the US.

If India joins the Wall of Enmity though, it would lose its privileged geostrategic relationship with Russia, and its moral influence in the world. It would also lose its influence in BRICS, and would never be able to participate in the Silk Roads that China and other countries are building. India would become the odd man out on the Afro-Eurasian land mass. India, most likely, will not join the Wall of Enmity. However, the only certainty is uncertainty.

Pakistan, on the other hand, would like to break out from US subservience. It has sent feelers to Russia. Russia and Pakistan will hold some kind of military exercises very soon. India is upset, understandably so, but India should understand that if it has the right to choose its partners, then so do other countries.

Afro-Eurasia and Latin America are coalescing, as more and more of its’ countries are abandoning the strict subservience which the US dictates. They are using their own currencies in two way trade, thereby avoiding the dollar and trade is growing amongst them  as a result. India, Pakistan, Iran, and Venezuela want to join the Shanghai Co-operation Organization. Other countries are also trying to re-assert their independence: Turkey, Philippines, Japan, plus France, Germany, and Italy are in the game.

The animosity between India and Pakistan might impede the coalescence of Afro-Eurasia. An India connected to the West would not be interested in Afro-Eurasian coalescence and a geo-strategic relationship with Russia. Pakistan, on the other hand, because of its geo-strategic position would enhance the coalescence of Afro-Eurasia especially if it joins the Shanghai Co-operation Organization and BRICS, minus India, and possibly, Brazil. So history is implying that with or without India, Afro-Eurasia and Latin America are coalescing. Only time will tell.

 

The new economic Black Death

The Black Plague, also known as the Black Death, took place in Europe from 1346 to 1353. In a span of seven years almost half the population of Europe was dead. Anywhere from 75 to 200 hundred million people died. It was the most horrible experience since the Fall of the Roman Empire in 476 AD. It was caused by a bacteria, Yersenia Pestis, aka, Pasteurella Pestis. It originated somewhere in China or Central Asia, and via the Black Sea trade entered Europe. The agent of transmission or vector was a rat aboard the trading ships. The population of Europe was estimated at around 250 to 350 million, and the population of the whole, known world was around one billion people. The Western Hemisphere was not known or had been discovered yet. Christopher Columbus discovered the New World in 1492.

In 2016, mankind ( with a world population of over 7 billion people) is facing another Black Death, caused not by bacteria but by human evil. There is no economic recovery in the West, and there will be no recovery until the West restructures totally and completely by embracing  a new system that will cherish life and the environment of the earth.

The economic system of the West, the new Neo-liberalism, has entered a phase of exhaustion from which there is no escape. The reason for the exhaustion is the immense debt which can no longer be sustained. There are several components to this world debt that must be explained.In 1944, the dollar became the official currency of the world as decreed by the Anglo-American Powers. All of the world’s trade would be done in dollars, and, the dollar would be the reserve currency of the world. The US became, in effect, the ruler of the world. The only country who opposed this arrangement was the USSR. That same year, Winston Churchill suggested,                “Operation Unthinkable”, the plan that Anglo-Americans join with Germans in fighting the Russians. The Cold War was in full swing. The official proclamation of Cold War was announced by Churchill in Fulton Head, Missouri in 1947.

The West, aka, the Anglo-American countries, realized that debt could be used as an instrument of power in re-enslaving the newly independent countries of Africa and Asia, by lending them money for so called “development.” The already independent Latin American countries were subjected to the same treatment with similar results, as were the Eastern European countries.

Domestically speaking, Americans were encouraged to go into debt. The reason for this was the fear that the slack in demand would lead into another “Great Depression”, and that was no,no policy in a time of “Cold War.” Wasteful consumption and debt was encouraged. Credit cards were created to increase consumption and debt. Economists glorified debt as good. Debt was no problem, the Americans were told, “after all we owe it to ourselves.”

Debt can be considered “safe and useful” in an economy that is growing, if wages and jobs are also rising. People feel good and secure. Buying houses on a mortgage is a sound economic policy. Also, in a prosperous economy, the crime rate decreases.

Internationally speaking, no effort is spared to indebt as much of the world as possible in dollars. The dollar indebtedness is the “Carte Blanche” for giant Western corporations to exploit the Third World. This situation enhances the power of the West and enslaves the rest.

The largest corporations are moving factories to the Third World because of the very cheap labor, and the cheap products are re-exported to the entire world at immense profits. By this policy, the US has de-industrialized itself, but enriched the trans-national corporations. This was the Age of Globalization which was pushed on the rest of the world. The World Trade Organization was established, which is above the law of each individual member country, as is the City of London above the British law, and the Federal Reserve Bank of the US, a private bank, is above the US laws. The trans-national corporations are modelled after the Dutch East India Company and the British East India Company. These two companies controlled the world trade in slavery, spices, and the opium trade with China. They were progenitors of modern globalization. Nothing has changed in the last five hundred years except technology and the intensity of plunder and exploitation.

The Third World is already in maximum debt and depression where the poor are already dying and the anger is growing. Third World countries are trying to pay the interest on their debt, and some are trying to pay the debt off, so commodities are cheap and the dollar is strong.

Domestically speaking, the West is suffering from lack of consumption, because the vast majority of people are barely making enough to survive. Unemployment rates of the European Union and the US are sky high. According to John Williams of Shadow Stats, the unemployment rate is 23 percent in the US, and the work force participation of 62.8 percent has been the lowest in years. The number of people out of the labor force who can and want to work is around 95,000,000. The number of people on food stamps is around 47,000,000. The velocity of money has collapsed which implies that people have no money to spend. Pay Day Loans with monthly interest rates of 20 percent or more are increasing. One should not wonder why crime, prostitution, and drug use are increasing. ( Incidentally, the Baltic Dry Index is decreasing, which is a sign of collapsing world trade.)

The economic system of the West and the World has entered the phase of exhaustion, and nothing can save it. The ruling elite of the West thinks that a massive war with Russia or China, even nuclear war, will save the system, but nothing will. There will be collapse of the monetary system based on usury, and those responsible will be punished. Hunger, starvation, and deprivation is on the horizon. Violent revolution is inevitable, and nuclear war cannot be excluded. Only time will tell.

 

The British-American-Israeli Alliance

Five areas of serious confrontation are in progress in the Middle East: Syrian, Iraqi, Saudi-Yemeni, Israeli-Palestinian, and Israeli-Lebanese, and all five are interconnected. The key confrontation of the five is the Syrian conflict. A victory in Syria by either side will decide the fate of the Middle East and the world. There can be no compromise, hence there is a danger of wider conflict.

If the American side wins, Syria, Iraq, and Lebanon would be partitioned along ethnic and religious lines. The biggest winner would be Israel, and the biggest losers would be the Palestinians; they would probably be expelled from their homeland. Gas and oil pipelines would be built from Qatar and other Gulf States to Europe. Also, oil and gas from Syria, Iraq, Saudi Arabia, and Yemen would be shipped to Europe via the same pipelines to lessen the European dependence on Russian gas. The dollar would be the official currency of trade. Turkey would also be a winner, but its reward would be minimal. The biggest losers of all would be the Arabs of the Middle East, they would be totally emasculated; other big losers would include the Russians and the Iranians.

If, on the other hand, the Syrian government wins, Syria would become a very powerful state and a great rebuilding would take place. The Syrian people will have enough strength to rebuild their country. With a Syrian victory, ISIS in Iraq would have no chance. Iraq would also rise up and become a powerful state. The Saudi, the Jordanian, and Gulf regimes would collapse. The Palestinians might even achieve their independence from Israel. The big winners would also be the Iranians and the Russians. The Europeans would start drifting towards Russia, one country at a time. And the biggest loser would be the British-American-Israeli Alliance. President Assad would become the national Arab hero who stood up to the British-America-Israeli Alliance and  ISIS.

How the wind will blow and how history will flow remains a big question. Only time will tell.

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.

 

 

Negative Energy Flow 2

In my previous post I stated that energy is the essence of the universe. Without the energy of the Sun, there would be no life on Earth. A sick person is losing energy, a recovering person is gaining it. The economy is the living force of a country, and it is gaining, losing energy or staying steady.

The US claims that its economy has been in recovery since 2009, but the reality is different. The US economic system has been losing energy since 1980, when annual account balances with the rest of the world turned negative. There has been no recovery of the economy, only propping up of certain sectors of the financial sector such as the bond and stock markets, in the hope, that these two would stimulate the economy on Main Street: it never happened.

Economically speaking, negative energy flow is when expenditures are greater than income, and the end result is tragedy. When the bread winner of a family loses his job, it can be catastrophic for the family. They can be dispossessed of everything and end up homeless and penniless. If negative energy develops for a county or a city, expenses are cut and employees are terminated.  Additional side effects of the negative energy flow is the piling up of debt until it becomes unbearable. States and countries default on their debts. Most countries in the world are suffering from unbearable debts denominated in US dollars, especially the Third World Countries of Latin America, Asia, and Africa. Eastern Europe is in severe depression but nobody talks about it, because it is politically incorrect…

Very few countries have positive energy flow. In Europe, only a few countries have positive energy flow. In Asia, only a few countries have positive energy flow, China being amongst them. One country that has positive energy flow is Russia, a vast country that straddles Europe and Asia. It can totally be self sustaining. Most countries of Latin America and Africa have negative energy flow. The main reason why most countries have negative energy flow is because of massive debts denominated in US Dollars. This debt in foreign currency is draining the life blood of the indebted nations. They are forced to sell their natural resources for pennies, not to pay the debt, but to service the debt into infinity. They are condemned into permanent state debt slavery with no hope of true freedom and independence.

The United States is in a very unique situation, because it is the largest debtor in the history of the world, but has no problems of being the largest debtor in the world. The simple reason is that its debt is denominated in its own currency, the Dollar. The dollar is also the official currency of the world, and therein lies the immense power of the dollar and the US. All financial, trade, and any other activities, such as drug trade, white slavery, and mercenary wars are done in US Dollars. All these activities are controlled by the Federal Reserve Bank of New York. All dollar surplus countries park their money in US Treasuries. The number one export of the US is the dollar with which the US can do anything it wants. No wonder the US is an ” Exceptional Nation.” Other countries must earn dollars, but the US simply prints them. The negative energy flow that the US has is, paradoxically, positive for the US as long as the dollar is the Reserve Currency of the World.

The US will have to pay a huge price, the day the Dollar is no longer the official currency of the world.