Thursday, August 25, 2016

The Brewing Collapse of the Western Monetary System

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Germany has just warned its citizens of an upcoming catastrophe and urged them to stockpile food, water and money for at least 10 days, to be autonomous and independent until the government has caught up putting the necessary public safety systems in place – in case of a ‘catastrophe’. There was no mention on the type of disaster awaiting them. A war, an economic and or monetary collapse, or both? – The warning was later downplayed as part of a ‘routine exercise’ in Germany’s new defense strategy.

On a related note, against many Members of Parliament and several ministers, the German Bundeswehr (army) has declared Russia as an enemy nation. This is akin to a declaration of war. The head of the Foreign Affairs Committee of the Russian State Duma, Alexei Puschkow, has posted the Twitter message:

‘The decision of the German government declaring Russia to be an enemy shows Merkel’s subservience to the Obama administration.’
The idea of the German warning is to scare people. People who are afraid can be easily manipulated. While buying supermarkets’ shelves empty, they will ask for more police and military protection. That’s precisely what Washington and the EU want – a militarization of Europe. Germany, being Obama’s chief vassal, is the mouthpiece for the rest of Europe. At the same time, this scare tactic is an indirect warning of a threat of aggression from Russia. The past weeks of western lie-propaganda have shown Russia’s protection of Crimea with heavy maneuvers in the Black Sea, depicting them as a preparation of war towards the west. Never mind that Ukraine’s self-styled lord Poroshenko has threatened to take Crimea back, amassing troops and tanks at the border of this historic and strategic Russian peninsula.

Of course, things do not look good for the US-NATO led West with its EU stooges. Turkey’s President Erdogan has turned away from the notorious west to Mr. Putin and may be abandoning his alliance with Washington, Brussels – and NATO. Russia has asked Ankara to use its Incirlik airbase in the south, close to the Syrian border, currently mainly occupied by NATO, storing some 50 US nuclear warheads and uncountable US fighter jets and helicopters, plus housing at least 5,000 US-NATO troops. Turkey’s Prime Minister, Binali Yildirim, said last Saturday, that Russia could use the base, but denied that any such request has been made by Russia. In fact, according to EurActiv.com, “the Pentagon has initiated the transfer of 20 B61-type aviation bombs with nuclear warheads from the Turkish Incirlik air base to the Deveselu base in Romania currently hosting the US missile shield.” Although the Romanian Foreign Ministry has denied this news, it is nonetheless largely credible, says Valentin Vasilescu of Russia’s katehon.com.

Incidentally, Incirlik is the base from which the two Turkish fighters took off to shoot down the Russian fighter jet Su24 patrolling the Turkish-Syrian border last November. The two pilots, one of whom was the killer, were either CIA agents, or were acting on CIA orders. It is known that Incirlik is infested with dozens of CIA agents.

President Erdogan’s new alliance with Russia, his recently re-established relation with his old friend Bashar al-Assad, Turkey’s supposed closing of her borders to the Islamic State (IS-ISIS-Daesh) at the request of Russia, plus Iran putting her Hamadan base at Russia’s disposal, making Russia, Iran, Syria, Hezbollah and (perhaps) Turkey the new axis of stability and maybe peace in the Middle East, is not boding well for the West. It is more than a loss of prestige. The area contains an enormous wealth of hydrocarbons and other natural resources – and the new axis threatens to block the Zionist expansion towards a Greater Israel that would cover about a third of the current area called Middle East, including all of Palestine, Jordan, Syria, parts of Saudi Arabia and Iraq. This, and for achieving world hegemony, Full Spectrum Dominance, the overall objective of the ever ongoing PNAC (Plan for a New American Century), is what Washington is fighting for. No small matter. And not easy to let go.

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It would not be surprising if some bold aggression – militarily, monetarily or both – by the West would rock the world. Indications to this effect are plentiful, other than the German appeal to her citizens to hoard food and money.

Could a fabricated incident, like a false flag event, in the Middle East trigger a Russia – US-NATO confrontation? For example, Syrian Government war planes a few days ago were bombing for the first time in the five-year Syrian ‘civil war’ Hasaka, a stronghold of the Kurdish YPG (People’s Protection Units), basically a group of mercenaries, supported and funded by the US and NATO. The leader of YPG is allegedly affiliated with Mossad. Syria’s attack was in response to the YPG’s killing of civilians and Syrian Army soldiers. Was this Syrian attack provoked by YPG? Syria has repeatedly said that any foreign and uninvited foreign intervention on her territory would not be tolerated and immediately fought back. The US instantly sent a warning to Syria that US-NATO war planes may retaliate against President Assad’s forces – which in turn are backed by Russia. Could that be an orchestrated reason for an imminent US-Russia clash? – Such a confrontation would have ramifications way beyond the Middle East and could escalate to WWIII.

It is hard to believe that Washington would risk a war with Russia, being well aware of Russia’s superiority in the air, as well as on and under the sea with latest generation technology and nuclear war heads. But the exceptional nation on a declining course, knows no scruples pulling the entire humanity into her self-made abyss.

Another scenario of a world-shaking catastrophe may be financial. Lord Jacob Rothschild of the ultra-rich Rothschild family, recently proclaimed that “the western central bankers are conducting the greatest experiment in monetary policy history with consequences impossible to predict.” He added that the world is in ‘uncharted waters’. Although he doesn’t precisely explain what he means, he refers to ‘unintended’ low interest rates with ‘30% of global government debt at negative yields’. He also talks about the almost unlimited ‘Quantitative Easing’ (QE – indiscriminate production of money) of western central banks. As a consequence, he says, the Rothschilds are shifting their money gradually away from the dollar into gold and other, presumably western ‘aligned’ currencies. He didn’t specify.

Why would a member of one of the most secretive and the globe’s richest families, the Rothschilds, come out in the open telling the world what he is doing with his investments? – Is there a purpose behind it? – Almost for sure. But how does it fit into what the FED-ECB-Wall Street may have concocted to happen next? – Is it a hint that the gold standard in one form or another may return? After all, maybe envisioning such an advent, Russia and China in the past 20 to 25 years, since the collapse of the Berlin Wall, have filled their coffers with gold. According to Sergey Glazyev, one of Russia’s top economists, Russia’s currency is covered twice with the value of gold. China’s Yuan is also fully gold-backed. Russia is the world’s second largest producer of gold. The US too has been amassing gold. Nobody knows exactly how much Russia, China and the US have accumulated.

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A few months ago, talking about the disintegration of the EU and its currency, the euro, was taboo. Since BREXIT, the topic is increasingly on the agenda of most economic fora in Europe. It’s become ‘mainstream’, so to speak. When before the BREXIT vote people were afraid to touch the subject, today they dare happily voicing their anger and disagreements about the sick, inhuman European Union and its equally sick currency – and how it best would disappear. That’s good. Daring to talk and seeing the reality is healthy.

Washington is of course aware of this. US money circles know that BREXIT may have inspired a mass movement that cannot be stopped. Rather than letting the Europeans take the reins of dissolving their pathetic EU-Euro tandem, Washington, as usual, wants to call the shots – so that the dice fall in its favor. There are several plausible scenarios, all of which are sheer speculation at this point.

Returning to the gold standard – may involve a massive devaluation of the US dollar. It would bring down the economy of most countries dependent on the dollar and with large dollar reserves- which would partially go up in smoke. Also, dollar holdings, means holding US debt. At home in the United States it would mean debt would be eviscerated, while abroad assets held un US-dollar denominated securities would lose their value. This would apply to most developing countries still almost unconditionally tied to the dollar – especially Africa which holds by most accounts close to two thirds of the world’s remaining natural resources. Guess, who may appropriate these resources as payment against fake and fabricated debt? There is not much speculation about what would happen with those in-and-on-the-ground riches.

Worldwide dollar denominated reserves have dropped in the last 20 years from about 80% of all reserves to below 60% today and declining. Most European countries may still have dollar reserves, but also gold. Rather than speculating over the value of gold – which is almost entirely in the hands of the BIS (Bank for International Settlement – Basel, Switzerland), itself controlled by the Rothschilds, Rockefellers and a few other Wall Street magnates, they may decide to take back their sovereignty and return to their own currency, devalued or revalued as they see fit, also eviscerating their debt, ‘resetting’ their system, so to speak.

Brussels, the ECB (European Central Bank) and the IMF, would be mere onlookers – and later trying to become the arbiters on how these countries’ debt maybe converted into gold. We can just hope that ‘sovereignty’ would indeed mean ‘sovereignty’, and that listening to stooges such as the ECB and IMF would be a thing of the past.

Germany, the Obama vassal numero uno that calls out the warning to its people – and by extension to the rest of Europe – may have made a deal under which they would not lose. – In any case for a local or new currency to be launched, it may take half a year. Germany may have prepared for such a move and hopes in ten days after the disaster hits, it may be up to speed putting the new system with electronic tellers and all on stream.

Another scenario may be that some of the TBTF (too-big-to-fail) banks, in connivance with the FED, would call in their outstanding derivatives. Estimates on worldwide outstanding derivatives range from about 700 trillion dollars to more than a quadrillion. This is money not even made of thin air, it’s just invented. But it could break the necks of smaller banks, à la Lehman Brothers – remember September 2008? – That would bring down the western world’s financial system, all the while maintaining the dollar hegemony. All or most derivative denominations are in US dollars.

Whatever may emerge, it is not a pretty picture for the west. In July 2016, on the occasion of the 95th Anniversary of China’s Communist Party, President Xi Jinping declared “The New World Order is Finished.” He also evoked the collapse of the US economy and the disintegration of the European Union. No western mainstream media covered the event.

What the West wants to ignore is that there is an alternative to the fraudulent western monetary system – a Russia-China based monetary scheme, totally delinked from the dollar-euro and the western privately owned FED-BIS-Wall Street manipulated system; a monetary structure built according to the value and strength of the member countries’ economies. Instead of illegal sanctions, blackmail, threats and outright financial wars for those ‘unwilling’ to submit to Washington, the eastern perspective offers a potential of equitable economic development, fairness in trade to a federation of sovereign nations.

It is high time for the freedom loving world to move out from under the boots of the empire; that we return to a multi-polar world of equals, that the international agencies we created to serve humanity are freed from the claws of their hijackers in Washington and those who command Washington, that the UN and its specialized agencies, as well as the International Criminal Court – even the Olympic Committee – may operate according to their peoples’ given mandates, that they may operate without the oppressive fist of Washington dictating them their terms. ‘Economics of Peace’ under a new egalitarian monetary system may lead humanity to freedom and prosperity for all.

The social roots of unrest in Milwaukee, Wisconsin

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Once again deeply rooted social anger has boiled over in an American city against police violence. This time protests erupted in the Sherman Park neighborhood of Milwaukee, Wisconsin following the killing of 23-year-old African American Sylville K. Smith by an as yet unidentified African American police officer Saturday afternoon.
Approximately 100 people gathered Saturday night to protest near where Smith was killed. The night ended with a handful of nearby businesses looted as well as a gas station, a bank branch and an auto parts store torched. A handful of cop cars and other vehicles were damaged or destroyed. The police arrested 31 people during protests Saturday and Sunday night.
At the request of Milwaukee County Sheriff David Clarke, a prominent African American backer of Republican Presidential candidate Donald Trump, Wisconsin Governor Scott Walker has mobilized the National Guard. At least 100 members have been placed on standby to respond to protests if deemed necessary by city officials, adding to the 150 specially trained Milwaukee Police Department (MPD) officers and regular police patrols.
This marks the second time since 2014 that Walker has put the National Guard on notice for deployment in response to protests against police violence in the city. The National Guard, a branch of the military, has been used to put down popular protests in Ferguson, Missouri in 2014 and Baltimore, Maryland in 2015.
While the killing of Smith is the immediate cause of the protests in Milwaukee, it is clear that broader issues are involved—bound up not with racial divisions, but a one-sided class war waged by the American financial elite. Like so many cities in the United States, Milwaukee has been devastated by decades of deindustrialization and financialization, which has produced the highest levels of inequality since the 1920s. The factories that provided decent wages and benefits for tens of thousands of workers have all but disappeared.
The city lost three-quarters of its industrial jobs between 1960 and the 2010. The disappearance of manufacturing employment had a particular impact on black male workers in the city. From 1970 to 2010, the employment rate for black men aged 16 to 64 in the metro Milwaukee region fell precipitously, from 73.4 percent to only 44.7 percent.
The city’s overall poverty rate in 2014 was 29 percent, nearly double the national rate. Children and youth aged 18 and under were the worst affected, with more than 42 percent growing up poor. More than 43 percent of the population in the Sherman Park neighborhood lives below the poverty line.
It is fitting that President Barack Obama visited the Sherman Park area in 2012 where he spoke at the Master Lock factory, one of the few remaining industrial facilities in the area. Obama hailed Master Lock as a great example of the “insourcing” of low wage manufacturing jobs. In its more than seven years in office, the Obama administration has not proposed a single initiative or program that would begin to address the staggering levels of social inequality, poverty and unemployment in the United States.
The growth of poverty and inequality, the eruption of social anger and the build-up of the police forces are interrelated components of the same class dynamic. Whatever the role racism may play—a 2011 analysis of traffic stop data found that African American drivers were more than seven times as likely as white drivers to be pulled over by the MPD—the war waged by the American ruling class has been directed at the working class of all races.
In considering the issue of police violence, it is once again necessary to stress that the majority of those killed by police in the United States are white. As for the conditions that are fueling social anger, these transcend race as well. The majority of poor in the United States are white, and white workers have suffered some of the most disastrous declines in conditions of life over the past several decades. One only needs to cite the stunning rise in mortality rates among working class whites in recent years.
As for African Americans, one of the most significant if very little noted facts of American life is the extraordinary growth of social inequality within the African American population over the past four decades. A black family in the top 1 percent of the US population has a net worth 200 times the average black family, and the top 10 percent controls 67 percent of the wealth held by all African Americans.
In politics, African Americans have been elevated to positions of power by both the Democrats and Republicans—Obama, Loretta Lynch, Condoleezza Rice and Colin Powell being some of the most notable. Many major American cities have had black mayors and city councils are populated by African American politicians.
Those promoting racial politics speak for this social layer of more privileged sections of the middle class and for sections of the ruling class itself whose interests are thoroughly hostile to those of African American workers and youth.
A genuine fight against police violence must proceed from an understanding of certain basic facts.
First, that police violence is the product not of racial animosity of “white America” against “black America,” but rather is a reflection of the nature of the state as an instrument of class rule. The build-up of police power, which is a component part of a vast apparatus of repression, from the military to the spying agencies, will be used against all social opposition to the policies of the financial aristocracy.
Second, all factions of the political establishment are committed to the defense of the police. In the 2016 elections, Trump and the Republicans are running on a program of “law and order” and calls for criminalization of opposition to police violence (expressed most ruthlessly by Milwaukee County Sheriff Clarke at the Republican National Convention last month).
Meanwhile Hillary Clinton and the Democrats hail the police while sickeningly and hypocritically exploiting the family members of the victims of police violence to promote racial identity politics. She is committed to continuing and extending the policies of the Obama administration—which means escalating the assault on the working class, expanding war abroad and doing nothing to halt the reign of police violence in the United States.
The fight against police violence means a fight against the society that creates it. It requires a political struggle to unify all sections of the working class, of all races, in a common fight against unemployment, poverty, inequality and the capitalist profit system.