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I have noticed lately that the
spinmeisters are now latching on to the term 'currency war,' but are trying
to deflect it merely to an intensification of the beggar thy
neighbor strategy of devaluing your currency to subsidize exports and
penalize imports.
This has been going on for a long time,
most notably by the Asian Tigers, led by Japan and then perfected by
China. But make no mistake, the real heart of this process is in an
Anglo-American banking/industrial cartel that intends to beggar everybody.
The multinational corporations went along
with it. They were its great lobbyists, and their wealthy scions the
founders of think tanks to provide it a rationale and respectability.
Walmart wrote a chapter in the new gospel
of greed as a means of undermining wages and the American working class by
insisting, as far back as the 1990's and the Clinton era, that suppliers
start offshoring to China. And servile politicians opened the doors wide, and
turned a blind eye to abuses that are still coming home to roost.
Part of the arrangement was a quid pro quo. The multinationals, who successfully staged a
financial coup d'état in the States and Western Europe, were to extend the
reach of their strong dollar policy and europression via
foreign direct investments in resources rich overseas nations and foreign
markets in order to consolidate their power into the non-democratic world.
But China and Russia balked at their end
of the presumed bargain. They realized that opening their own doors to
dollar exploitation, and allowing the economic hitmen to come in and pick up
assets on the cheap, would lead to eventual political unrest, encirclement,
and their own loss of power.
'Color revolutions' were becoming
popular, as one country after another was falling into chaos, the kind that
produces fire sales in productive assets and the elimination of inconvenient
local rivals to power. And in Europe, the powers that be created a
Eurozone structure that any decent economist would know was unsustainable,
and destined to create an unstable situation of few winners and many
big losers.
And so a consortium of nations began to
resist. Some called them the BRICS. They became alarmed,
and then convinced, that allowing a single nation or group of multinationals
to control the world's reserve currency was like a Ponzi scheme that could
only continue on until its acquired the whip hand of power everywhere.
They started to speak up in international
monetary organizations, long dominated by the Anglo-American banking and
industrial cartels. They demanded the establishment of a new monetary
standard for international trade that was broadly based, to replace the
failed Bretton Woods Agreement that had continuing on as the ad hoc dollar
hegemony known as Bretton Woods II after Nixon arbitrarily broke the formal
agreement with the closing of the gold window in 1971.
And so we see a new phenomenon today, in
which the long term selling of gold to control its price, resulting in the
post-Bretton Woods bear market that lasted over twenty years, has given way
to net gold buying by the world's central banks, and in increasing
size. And the creation of a paper gold market in parallel, through
which the West seeks to control the price and supply of gold, to maintain
their financial operation while they more aggressively pursue nation
recycling and repurposing, draconian trade deals that supplant domestic
governance, and when that fails, through internal insurgencies and at
times, overt military action.
Simultaneously, there are a proliferation
of bilateral trade deals in which currency arrangements are being made
between countries, and even among small regional groups of nations, to
conduct their business outside of the US Dollar system. They are even
building up their own financial networks and infrastructure in response to
increasingly aggressive use of sanctions and other forms of economic
pressure.
The US and UK, like China and Russia, are
not immune to concerns about domestic unrest. A strong dollar policy and the
support for a policy of offshoring to increase corporate profits are wreaking
havoc on one of the world's greatest popular economic achievements: the US
middle class.
Increasingly concerned, the
governments are cracking down on any sparks of domestic dissent,
targeting leaders, vilifying and suppressing minorities, and increasing
the surveillance of its own people. They are weaponizing the domestic
police forces, and establishing the 'legal means' by which control can be
maintained in the face of increasing misery and discontent at home.
It is not a pretty picture. It is an old
story of greed and deceit, of empire and world conquest, of
the desolating sacrilege of betraying those who have fought for
freedom and civil rights to cash in for their own selfish gains.
Will this end in a new gold standard, as
this article A New Gold Standard in the Making, which is the source of these graphs suggests? I surely do
not know, and still do not think so.
If you have been following the thought
process here, going back before even the establishment of this blog to 2000,
I have felt that the most likely course will be the establishment of a new
unit of international currency, similar to but not the same as the SDR, with
a far broader composition of currencies and commodities included, so that no
single group would be able to control it for their own purposes.
Stagflation is no natural
phenomenon. It is the act of man in a policy intervention or policy
error par excellence. Until OPEC was able to trigger
a stagflation through their use of an oil embargo and price cartel in the
1970's in the favorable conditions created by economic rot
introduced by years of discretionary, aggressive war in Southeast Asia and
the ensuing debts, most economists thought it to be impossible, and certainly
not a 'natural' outcome.
I think that domestic reform will be
coming, and this is necessary because no new monetary standard is going to
repair a system that has failed from within due to corruption
and systemic injustice.
Old systems, even when they finally turn
to visible abuse as they decline, can fail for a very long time, seemingly
unbeatable, until they finally collapse from within. This is how it was
for the fall of the old Soviet Union, and this is how it may be for the
Anglo-American cartel and their attendant nations like
Germany and Japan.
It is still possible that Russia and
China could make a deal with the Anglo-Americans and establish a tri-partite
world government, with their own spheres of control and interest. As
you may recall this was the way George Orwell saw it in 1984. I
have been watching for that possible development based on my own
research on the growth of international capital markets and flows since 1990
at least.
People bring this up and so I wish to
address it now, once and for all. I am aware of the possible
deeper significance of these developments from an eschatological
perspective. But recall that even the great apostle, who was 'lifted up
to the third heaven,' was mistaken in his estimation of it, thinking it a
phenomenon of his own time. It is a mistake of vanity to
go too far in such arcane and difficult subjects, in pursuit of
sick thrills that only serve to distract us from our call to
the work of the day, and the practical task of finding sanctity and
salvation in the world.
How we will react to this individually is
critical for our own long term survival as spiritual beings regardless, since
we all face our own ends individually. Of this we can be sure.
We are told that most will give in, despairing at the increase in wickedness,
and seek for power and riches of their own beyond all reason and
grace. And it requires no end time to see this happening through
all ages.
Change is coming. It may be a new
arrangement that brings with it the blessing of reform, transparency and
justice through peaceful evolution. It may be delayed and more
difficult. What cannot be sustained will not continue.
This will end. But perhaps not
very well. To a great extent that is up to us, unless we stand by
and do nothing. "The only thing necessary for the triumph of evil
is for good men to do nothing." But what shall I to
do? Begin with yourself, despising only the fear and the
evil in you. Do as you have been instructed by the two great
commandments, which have been implanted as a seed in your heart.
You are called.
You choose the answer.
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