So how did we get to this point today? Any student of history must wonder, and ask how the former United States became a Failed State, approaching its nadir as a former Industrial power. The question of Decline and Fall embraces the question of financial power as well, to whit I for one will always return. In other words, the covert establishment of the US Central Bank, its collusion with other central banks, and its mastery of the global monetary exchange system has ultimately led to the End of Empire.... or at least thats what the farmers predicted one hundred years and more ago. But we cannot fully allege that just yet. Because there is one remaining bastion of strength in the USD as a currency which is related to convertibility. Convertibility is an arcane topic, seldom addressed by anyone, especially during times of capital controls. Which I suggest weve entered in full force since the US financial collapse of 2008-2009. Today, convertibility means currency swaps to prop up a currency or else you cant convert. And currency swaps are largely secret affairs, usually affected by Bullion Banks, in gilts, or via US Treasury bonds to support a rogue economy - always in secret known only to the direct players. So convertibility and swaps are certainly not hot topics at any dinner party. But Russia is a hot topic, so lets take Russia as one current example. Aside from the long history of USD v Ruble, it appears that there has been some intervention to prop up the ruble subsequent to the Kiev coup. Ill guess that Russia traded some resources for dollars to prop up the ruble, meaning that a major holder of dollars (from whence they would be most economic to buy) namely the US is holding for some massive amount of rubles on ice in exchange for some other commodity. For example, lets say Russia bought dollars with oil, then traded those dollars back for rubles to prop up the currency. That means Russia loses the oil and the US gets its dollars back so Russia can keeps the ruble on ice and fully valued, in recent historic terms. And where will those rubles be held? Mostly likely in a western bank on loan where the depositor is paid to keep the rubles invested. Or, Zarathushtra forbid, Russia effectively sold gold to the US to prop up the ruble. As I have said on many occasions the only way Russia can win this game is by calling the Wests bluff and backing the ruble with gold. Meaning that Russia will have to *buy* a lot more gold (not sell) on the open market, thus driving the price higher. Thus the analysis gets interesting and interesting-er. Yes, in the crazy world of Big Bank manipulation of PM markets the above explains the continual upward movement in physical gold spot recently, and the bottom line with regard to all of this is a win-win all around for Western Financiers.... and the Bank of Big. After all, it wasnt the Fed printing up billions to allow Nate Rothschilds Vallares to purchase Genel Energy. But think about what has really happened with the above - what does it really mean? These structures are too complex for we mere mortals to comprehend. It means that the former United States has become a global monetary parasite, full stop. The Big Powers all know it, and they are all forced to play. Just like Benny Morris said in my previous article, You have to dirty your hands… ie meaning dirty the other nations, which has been a very effective strategy just look at the ECB which is currently doing the USs dirty work. But as Ken Kouresh Hammidi has written, we must always take the view from above and get the birds eye view to be clear. As a Global Monetary parasite, the former United States wont really produce much. Weaponry and tainted food? Hmmm. At some point as consciousness has advanced, the world has had enough. The former United States has had to create its own markets for weaponry; there are too many examples of the foregoing to cite, and all examples are currently going gangbusters -- but for how long? Next we can consider Big Oil which is closely linked to the Bank of Big. Because in effect, we are on an Oil Standard. The former US has taken the Fracking road which may be a very short-lived experiment in relative terms. It is unlikely that shale and fracking can remain profitable enough without seriously impacting an already failed economy, now propped up by smoke-and-mirrors. End of Part 1
Posted on: Tue, 01 Jul 2014 01:47:42 +0000
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