US Dollar Hegemony and the Anglo-American Empire

The current global monetary-financial-economic paradigm we operate within, is fast reaching a conclusion. The United States reserve currency hegemony, essentially created by a petrodollar relationship established in the 70’s between the United States and Saudi Arabia, is being tested on multiple fronts. If China and Russia manage to create a viable alternative to the USD in global trade, then the Anglo-American empire is dead. Therefore, it must maintain USD hegemony to continue to finance its war apparatus.

It shouldn’t come as a surprise to learn the U.S. is running budget deficits financed by the creation of U.S. treasuries. Additionally,  investors bought these ‘safe’ assets, as they are backed by the U.S. taxpayer. However, China and other major purchasers are tiring of these debt-securities. Cheap finance may soon end, along with the secular bull market in bonds. If investors liquidate their holdings, and create massive downward momentum, it would spell the end. Therefore, the Federal Reserve would likely step in and expand its balance sheet.

The FED already has roughly 4.5 trillion dollars of nominal value on its balance sheet, and there is no reason why it couldn’t start directly monetizing the debt of the U.S government. The U.S. government debt ceiling has been raised to twenty trillion, not to mention the unfunded liabilities that are estimated to be around 40-60 trillion. The empire is facing major challenges, some it created itself. On one hand, it slowly gutted its manufacturing sector by taking advantage of liberal trade policies and invested in low-wage economies to generate value for stockholders. This moved jobs, GDP, human capital, and other positive externalities offshore. And on the other hand, it used substantial resources to dominate and subjugate various economies and countries with its enormous military and influence. The opportunity cost of maintaining the futile empire is unimaginable. The rent-seeking parasites and their myopic obsession with wealth aggregation has drained the fabric of society. All the empire has, is it’s ability to push its debt onto others. It must keep the USD favorable or implode.

The colossal derivatives quagmire, leveraged from U.S treasuries etc, is used to manipulate and play the futures markets. The price of gold is being manipulated by naked short selling paper gold contracts onto the market. Suppression of the gold price is favorable, however, to China, Russia, India, etc. They are importing on a large scale and keeping internal production. They are hedging for a collapse. They don’t want to be just holding paper and worthless claims to paper when the music stops. Gold is liquid and has no counter-party risk. It is superior to other commodities.

With the Federal reserve rate at essentially 0%, the ending of the secular bull market in bonds, QE(x), ZIRP, NIRP, malinvestment, worsening demographics, peak private debt and consumption, war, hyper-leveraged zombie banks, intellectually dishonest and corrupt leadership, bloated incoherent bureaucracies, it is only a matter of time before the USD is put on the pile of other failed currencies. There is no other way. They could let the financial/monetary system and the empire collapse, along with their precious paper wealth, employment rates, and initiate an epic depression, or they can inflate the debt away and eventually kill the dollar and the empire. Bad news either way. So, kicking the can will be the option taken. With the FED jaw-boning the market, and having not raised rates for seven years, it is a dubious idea to think they would suddenly become responsible. Neo-Keynesian economic thinking is reaching the end of the line. The FED will expand its balance sheet, NIRP will likely be initiated, savers will be killed. It is an illusion. One day soon, the great deleveraging will happen. No amount of easing or manipulation can continue into perpetuity. For every single action, there is an equal and opposite reaction.

A geopolitical transformation is taking place. Will the U.S. throw in the towel, or will it rampage into oblivion? I can’t forsee. But I get the feeling the whole world will receive a free lesson in economics that they won’t be able to ignore.


Microcosm of the Future: Hijacking Evolves into High-Tech?

If the Insurance industry gets behind it, then it looks like a forgone conclusion. I’d like to point out that a hijacking need not be limited to a low-tech, pistol at pilot’s head type of hijacking, it could also be unauthorized remote access of the plane.

The downside of an automated, internet centric machine, is that without the option of a manual override, you are entirely at the mercy of the software. On any given day, it may seem the only way to mitigate human error, yet, even though humans are not perfect, it is hard not to imagine a scenario where a plane, automobile, or another robotic system contracts a virus and wreaks havoc. Obviously humans have intrinsic mental/ideological viruses. Organizations such as ISIS, or other suggestible fanatics throughout history are obvious proof of this. Yet, at least humans have their own ability to somewhat filter out what is basically a crazy idea. It may take weeks to indoctrinate suggestible minds. Conversely, a computer virus could outright takeover the system. I think totally relying on automated systems is a disaster in the making. The more dependent we are on robots, software etc, the less independent we become.

Do humans require a car that drives autonomously, with obvious vulnerability to remote access?  A to B type driving from apartment to grocery store, for example, may well be a different matter for city dwellers. The busy or intoxicated person would prefer to be chauffeured around in a driver-less car I suppose, but that is not the future I desire. I am not against others having the technology, I just hope that low-tech vehicles are not outlawed and or made obsolescent. Sigh.

Has the technology we have created allowed mankind to transcend the mental shackles of our past and biology, or are we on a loop, just with more destructive technology. Not all countries are the same of course. From the U.S.A to Afghanistan, Switzerland to Fiji, we are different. Cultural differences have managed to offer visceral alternatives to each other. Tangible contrasts to compare our successes and failures. Yet we still persist to adopt ignorance over knowledge, hate over love, violence over peace. As the supposed dominant and intelligent species living in this biosphere, on this planet, it seems self evident that we need to educate, love, think. This is a path we can take, step by step, as individuals. If the oft spoken cliches; lead by example, be the change you want to see, can somehow take hold and bear fruit, then perhaps humanity has a chance, at least for a few more centuries. If we allow ignorance, hate, and violence to pull the world into chaos and destruction, we will indeed set ourselves back, and potentially never recover.

I am not interested in living a hive-mind, drone-like existence. Picture a city, with its requisite plantations of “workers”, busy making themselves obsolescent. I have no desire to be citizen number #491993-49 of sector XYZ123. To be a sedated shell living in a dystopian future, efficiently shuttled to a station where the worker performs a function until finally the job has been made obsolescent. Without some type of enlightenment permeating the masses, extricating humanity from our drug/media induced quasi-hypnosis, we will continue to bumble along this new tangent of technophilia, slowly but surely replacing ourselves, rendering ourselves less relevant, less capable, inert.

The current rotten economic, monetary, financial system has predominantly and enormously benefited a very small percentage of people. The 1% vs the 99% sounds catchy, but that is still an illusion. Within the 1%, is another 1%. This is called the 0.01%. It is totally bizarre. Of course, though, no system is perfect, no system will benefit everyone symmetrically, yet I find the problem to be systemic, by design.

The bizarre practice of manufacturing goods to be obsolescent and poorly constructed, has immensely wasted resources and driven pollution. The consumer with few choices economically, will likely confirm the behavior and purchase the cheap and poorly made item. This is the problem. We could produce a decent pair of shoes. Do we need cheap shoes from a country far away, eroding traditional workmanship, quality, jobs, intrinsic knowledge, all for the sake of getting a cheaper pair of shoes. We don’t need to make a few people in society super rich. That is neither important nor vital for society. It is inimical to society’s interests. In this system we have created, a few will manage to dominate and extract a vast amount of wealth. It is not even sustainable. Once the inequality reaches critical mass, a revolution occurs. Oppression feeds revolution. The revolution is destructive. Some of us are unhappy and desire more. It doesn’t matter how rich we become, it will never be enough. To amplify this, others must become poorer. This arrogance is destructive. We live briefly. Is our focus to be on standard of living or quality of life. Is there a trade off, or can we have both?

If the aim of the organization is to provide shareholder value (efficiency), then perhaps we will continue to seek ways to cut costs, be fraudulent, corrupt, and deny people insurance cover or medicine when they are eligible?  How about we provide goods and services with the emphasis on quality, workmanship, durability. Let profit not be the motivating factor. Of course, this can only happen with regulations. Perfection is not obtainable, but worth striving for. If an inferior plastic bag can replace a traditional bag made of flax that was once produced domestically, because it is cheaper, is that really progress? It was cheaper to buy, but it is also not biodegradable, it was not made on the island, it didn’t provide jobs, it didn’t keep the tacit knowledge local. The free market failed. Can the invisible hand produce quality and forget about shareholder value? Can a single organization? We need not satiate the insatiable greed of mankind. Profit need not factor into the price of a pair of shoes. A single organization dedicated to producing shoes at a lower cost to the environment (shoes that last 10 years instead of 6 months etc) is greatly possible. The same can be said for clothing and other textiles. Does this mean that privately owned producers will go out of business. Perhaps, or they will become competitive. The world doesn’t need endless consumption of low quality goods. This may please quarterly profit projections, but again, not environmentally sustainable. The state of the economy need not be measured by current metrics. What good is GDP growth if the masses are getting poorer and their quality of life diminishing. Jobless GDP growth is more likely. Automation. Rising unemployment. Software and robots displacing humans. This is the current trajectory. Debt. Interest payments. Tax. Inflation. Currency depreciation. Quantitative easing/debt monetization. Central bank balance sheet expansion. Collapse. Oops. Where to next? IMF, please lend out some Special Drawing Rights (XDR) fiat to restart the global economy. We want to do it all over again!

If robots and software are to continue replacing humans, we will get the extra leisure time promised to us in the textbooks, only we won’t have much money to enjoy it. Is utopia obtainable for the masses? In a perfect world, it is possible. We have the resources, the intrinsic and extrinsic knowledge, the labor required to achieve a utopian world for humanity. Idealism is a wonderful thing. Back in reality, however, capital has won. Labor has become increasingly less relevant. This is the trend.


The final revolution is already upon us. We are descending into oblivion as a species. Humanity seems intent on walking down our historical paths of ignorance, violence and greed. Although our future is not entirely futile, in reality there only need be 10-20% of the population, the percentage highly suggestible and vulnerable to propaganda, to become mobilized and incite enough hate and violence to persuade the moderately suggestible and ignorant majority to welcome an ever expanding police state.

The willfully ignorant and fearful masses have passively ensured that forced medication, incarceration, and an ever widening net of poverty are what humanity has to look forward to. Do we handover our humanity to technology, do we place our faith the state? Is that how we will reap the rewards of the final revolution? Will robots take care of our old, raise our children, police our streets, fight our wars, farm our crops, pour our drinks, suck our cocks, and become the “new” slaves that hypothetically never revolt? Laughably while billions of humans live lives of frivolity? No. We are not part of the final equation. We are not needed. Not even in the form of a slave. All we have yet to do is set the final stage of our obsolescence.


Ideally and realistically speaking, we need to develop awareness in ourselves and in others. To slowly replace our distorted perception of reality. Less “did you see what happened on Game of Thrones”, more “did you read the analysis paper called ‘WHICH PATH TO PERSIA, OPTIONS FOR A NEW AMERICAN STRATEGY TOWARD IRAN’, written by The Saban Center for Middle East Policy and The Brookings Institution”. This is the reality I speak of. Taking interest in the “real” Game of Thrones.

This prison ship we live on is accelerating toward oblivion. It seems the worse things get, the more people retreat into cognitive dissonance. Ignoring the disease only makes it worse. Ultimately, it needs to be addressed. What will you do?


PS – If you disagree, please leave comment. Thanks.