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.

THERE IS AN ALTERNATIVE TO FRACTIONAL RESERVE BANKING

The Paradigm is Changing

Current monetary policy is inimical to our interests. Do we have the mental fortitude to make the change, and mitigate potential consequences. It is a troubling subject. I imagine most politicians wouldn’t dare talk about it. Therefore, the current system is broken. It must be changed…

A few notable quotes from history.

“The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”

“The banks do create money. They have been doing it for a long time, but they didn’t realise it, and they did not admit it. Very few did. You will find it in all sorts of documents, financial textbooks, etc. But in the intervening years, and we must be perfectly frank about these things, there has been a development of thought, until today I doubt very much whether you would get many prominent bankers to attempt to deny that banks create it.” H W White, Chairman of the Associated Banks of New Zealand, to the New Zealand Monetary Commission, 1955.

WEALTH CONCENTRATION

How is there such massive concentration of wealth into the hands of so few, while the majority shares in so little. In the US, the bottom 80% of the population owns 7% of the wealth. The top 1% of the population owns %40 of the wealth. Some people are so poor and uneducated that life is just a struggle to stay alive, eat, and generally survive. Civil disobedience would obviously benefit them immensely if they could organize and protest. They have the least to lose, and time to spare. The other slice of the poor, the working poor, people with 3 jobs and up to their eyeballs in debt, don’t have the time to protest and engage in civil disobedience. So, what about the middle class. I’m not really sure what that means. The middle class is only marginally better off than the lower class. The only difference being that someone with a full time job doesn’t have much time, while the jobless do. So, who is going to change the system, if the people most affected by the inequity are either too ignorant or busy to bother engaging in civil disobedience. Answer. Nobody.

INFLATION, INCOME TAX, INTEREST

Conventional dogma would have society believe that in order to start climbing up the ladder of prosperity, we need to borrow money to get an education so we can be employable. Once we have found a job, we will start paying income tax, even payed as it is earnt (P.A.Y.E). Eventually we will borrow again at interest, but this time for a home. Thoughts of whether the real estate market is overvalued and perhaps in a bubble, rarely enters the equation. After all, we have been taught by society to follow this path. It is normal, conventional, and acceptable, right? We chase capital gains in real estate, we know little else. We feel safe that real estate will provide us with the wealth we seek. Are you familiar with the price/rent ratio?

WHERE DO WE GET THESE IDEAS?

There is such a great volume of disinformation and lunacy bombarding our minds as though it were the absolute truth, as though it wasn’t just the self serving dogma that benefits a certain few. This dogma arrives from many sources, the main stream media, conventional education, friends and family members that propagate this ignorance.

CURRENCIES AND MONETARY SUPPLY

Lets focus on an issue of great importance, but yet an issue so uniquely misunderstood. Does society truly benefit from the Fractional Reserve Banking system and the private banking sector that creates debt for the masses by way of inflationary fractional reserve loans and interest, or a positive reserve banking system that benefits the taxpayers, the very people who end up paying the interest on the national debt. We have the right to a system that benefits mankind, not just the bankers. The IRS came into being the same year as the Federal Reserve Act of 1913. There is no need for a government to issue securities in exchange for debt. Conversely, there would no longer be such a great need for many burdensome taxes that plague society today, most infamously the income tax. P.A.Y.E!

Currencies are based on confidence and have taken many forms over the ages. The English used “Talley” sticks as their currency from approximately 1100 AD to the early 1800’s. The Talley Stick incidentally, was a very successful form of currency, that was not only difficult to counterfeit, but most notably kept the English out of debt up until the point the Bank of England was created, consequently marking the beginning of their national debt. Fiat currencies are a form of currency that has no backing of gold or other tangible resource, just the confidence of its people. The most famous example being the United States Dollar, the current global reserve currency. In reality, bills and coins only count for a very small percentage of money that is actually in supply, since most money exists as figures in our bank accounts, with no actual reserve in the bank that it is placed with, as the majority of the money supply has been created out of thin air*. Digital currencies, such as BitCoin, are new to the stage, and have some very interesting fundamentals. All things considered, we should be asking ourselves this question – whom should be entrusted to issue currency, and if at interest?

There is simply no need to exchange taxpayer backed government securities for debt. The government in question could supply money to the marketplace, not just by way of fiscal stimulation, by way of monetary policy and interest free deposits issued to the government by an independent and fully transparent domestic organization, working at the public’s behest.  Since the national currency would no longer be created out of debt, and hence bears no interest to be paid to the issuer, there no longer needs to be scarcity of money and the boom and bust cycles that go with it. If money becomes scarce, businesses start closing, foreclosures become common, and in severe cases, food goes uneaten. It is not that the farms cease producing, the sun stops shining or the soil ceases to be fertile. The capacity is there, just the loans have ceased to be issued in the current system, and people don’t have money to spend, so the market ceases to supply the goods and services. But why does the currency need to enter the system as debt that generates interest payments to the issuer? It simply doesn’t need to be this way.

CAUSE AND EFFECT: FRACTIONAL RESERVE BANKING AND INFLATION

Just like any currency, inflation can be disastrous. There are examples throughout history of this. Fractional Reserve Banking is quite inflationary in nature. How many bubbles can you name that have popped over the past decades? Why do I get the feeling that the GFC of 2008 was just the beginning, not the end? A well managed positive reserve banking system offers more advantages. It’s that simple! For far too long the current banking system and the private super wealthy stockholders have gotten away with this gross fraud at our expense. The current system has held governments and their respective populations at the mercy of debt since at least the creation of the Bank of England, and been an unnecessary burden upon the average worker in the form of excessive taxation.

It must end. And with your help, it will… I 100% recommend you acquire a copy of ” The Web of Debt” by Ellen Hodgson Brown. It will lift the veil on this subject forever.

If you think what I have stated is crazy, then I suggest you click on the following link – http://www.positivemoney.org.nz/

If you enjoyed this, please don’t forget to share on your social media, or the word will not spread.

* Comprehending fractional reserve banking is confusing, as it has been worded in order to confuse. Modern Money Mechanics, written by the Federal Reserve Bank of Chicago in the 1960’s, explains the process in Fed Speak.

Why Some People Can’t Wake From Cognitive Slumber

“Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing ever happened.”

Winston Churchill

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In the age of information, there is an ever increasing, almost incomprehensible amount of content created every single day. In relation to critically important events and topics, most of the heavy lifting has already been done for us by independent, intelligent alternative media sources (drudgereport.com infowars.com zerohedge.com globalresearch.ca) It is there for us to consume, chew, and ultimately decide whether to swallow or spit out. So I ask you; why do even the brightest men and women have their head in the sand?

NORMALCY BIAS

“People with a normalcy bias have difficulty reacting to something they have not experienced before. People also tend to interpret warnings in the most optimistic way possible, seizing on any ambiguities to infer a less serious situation”. Sound familiar?

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COGNITIVE DISSONANCE (Belief disconfirmation paradigm)

Dissonance is aroused when people are confronted with information that is inconsistent with their beliefs. If the dissonance is not reduced by changing one’s belief, the dissonance can result in restoring consonance through misconception, rejection or refutation of the information, seeking support from others who share the beliefs, and attempting to persuade others”. Again, sound familiar? This explains perfectly why I experience such resistance and thoughtless rejection to some very important concepts I elucidate.

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DECISION: IGNORANCE OR KNOWLEDGE?

Whether a combination of apathy, laziness, normalcy bias, cognitive dissonance, ignorance, one thing is certain. If you choose the head in the sand model, basically representing the blue pill, then you choose ignorance. IGNORANCE IS FUTILE. KNOWLEDGE IS POWER. Perhaps it all comes down to mental fortitude?

Obama Continues National Emergency for Another Year

“There is no crueler tyranny than that which is perpetuated under the shield of law and in the name of justice.” – Charles de Montesquieu

How long will tyranny masquerade as justice? It seems for another year at least. Additionally, the Patriot Act is not due to expire for another year or two. It’s a great time to be a tyrant folks.

Obama is the figurehead for the current US regime, however, I do not blame him entirely, as a puppet can not pull its own strings. While I blame the ultra elite, I also blame the people. You can not have a corrupt government without a corrupt people.

In this perpetual climate of fear, people look to government for security, as a child would look to their parent. Joe Public will give up liberty for safety.  Unfortunately that logic will grant them neither. Any good student of history is cognizant of what is taking place in the USA. The propaganda, the fear, the gun control, FEMA camps. This is not just a US problem. It is a problem for humanity. It is a problem for people who live on the other side of the planet. If your foot contracts gangrene, is your hand not worried?

As I claimed in my previous blog “Ignorance is Futile“, Obama would extend the emergency for another year –  http://www.whitehouse.gov/the-press-office/2013/09/10/letter-continuation-national-emergency-message. 

And that he did.

 

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Ignorance is Futile

If the truth scares you, if you prefer ignorance to knowledge, distraction over reality, convenience of CNN soundbites over your own research, then a FEMA camp is waiting for you. Call them today and check if they have room. I’m guessing their capacity is enormous.

Below is a link to the official continuation of the National Emergency Act. Obama has renewed it every year since 2009. He will renew it again within the week. Guaranteed.  He signed the PATRIOT Sunsets Extension Act of 2011, in May 2011, which extends key provisions for a few additional years.

http://www.whitehouse.gov/the-press-office/2012/09/11/message-continuation-national-emergency-respect-certain-terrorist-attack

http://www.govtrack.us/congress/bills/112/s990#overview

The National Emergency Act, coupled with the Patriot Act, gives broad legal support (not moral support, I felt I must make a clear distinction here), for government agencies like the National Security Agency, Federal Emergency Management Agency, Department of Homeland Security, etc, to bypass some of your constitutional rights. If you have wondered how on earth previous administrations have been getting away with all this war, spying, domestically and abroad, then you need go no further. One fateful day, the 9/11 tragedy changed the rules of the game overnight.

If you believe the official story of 9/11, due to your fragile mind being unable to accept the horrible truth, and prefer the comfortable and convenient deception, that fear is your true motivation, and you quell that fear with ignorance, then your future looks dim. There are so many holes in the official story. Have you done your research?

Why do people avoid the big picture? We know we can’t escape danger by burying our head in the sand, yet that is what the majority of people are doing, figuratively speaking. If we wear ignorance as a shield, then a gulag is the only true place we belong. We must fight for freedom and truth. We must summon the strength to face it head on. Ignorance is futile.

FAST FOOD LIES AND DISINFORMATION FOR THE MASSES

CNN, MSNBC, FOX and their ilk worldwide, have done vast and encompassing intellectual damage to the average consumer. Whether by purposeful disinformation, well constructed rhetoric, televisual hypnosis, distraction and manipulation, these mainstream media purveyors need to be viewed for what they are in reality. Fast food news chains serving disinformation and toxic substances to the masses.

The other day I was trolling through a few blogs tagged with “Syria”. One stood out in particular, especially after I read their response to my satirical commentary. Below is my satire.

“I will assume that Obama and the current administration, are noble, virtuous, and good people. I will assume the Democrats and Republicans are not servants of the elite, and that the US has not waged wars using false pretexts, whether in Vietnam, or Iraq. I will assume that liberty and caring for the tired, poor, huddled masses is still alive and well. Additionally, I will assume that Assad is an evil dictator, and that the rebels fighting in his country are not funded and supplied by any foreign intelligence agencies, and that Assad used chemical weapons on his people. What will the noble Obama do? America has been so reluctant to involve itself in foreign matters in the past. How can the US stand idly by, as the Syrian president uses weapons of mass destruction on his people. This is an outrage. Something must be done. The US has never been in a better financial position. I think we should at least engage in a limited strike to assist the freedom loving rebels in Syria”.

I received a breakdown of my satire in the basic form of a point by point breakdown. In red is my opponent.

“For my response I will assume that Obama and the current administration, are noble, virtuous, and good people.”

Nobody said they were, but continue…

“That the Democrats and Republicans are not servants of the elite, and that the US has not waged wars on false pretexts, whether in Vietnam, or Iraq.”

Again, nobody said they haven’t.

“I will assume that liberty and caring for the tired, poor, huddled masses is still alive and well.”

Doesn’t seem that way what with the current rhetoric and all.

“Additionally, I will assume that Assad is an evil dictator,”

That much is true. His country is currently ranked one of the worst in human rights abuses, just behind North Korea.

“and that the rebels fighting in his country are not funded and supplied by any foreign intelligence agencies,”

Foreign intelligence agencies with a vested interest in destabilizing the Assad regime? Heaven forfend!

“and that Assad used chemical weapons on his people.”

In about a week and a half from now we’ll know this to be true, pending the lab results.

“America has been so reluctant to involve itself in foreign matters in the past.”

It has, and yet the rest of the world seems to have succeeded in dragging us into their squabbles. Imagine that.

“How can we stand idly by, as the Syrian president uses weapons of mass destruction on his people.”

We can’t. If he’s willing to go the whole hog using WMD’s on his own people, imagine what he’ll do to someone else’s.

“This is an outrage.”

It is.

“Something must be done.”

Something is being done.

“The US has never been in a better financial position.”

And if it’s not we can certainly prime the pump and print more money, sell of more debt kinda like we have been doing since…since…well, since before I graced the planet.

“I think we should at least engage in a limited strike to assist the freedom loving rebels in Syria.”

Not too many people do sarcasm very well over the internet. I doff my hat to you.

Is this the level of analysis and argument from the average human; US or otherwise?. Are these people only barely capable of comprehending the words spoken by these suave politicians, whom carefully lead them to the conclusions the elite intended for the masses? To arrive at this destination without independent research and analysis, basically to have their mind made up for them by a talking head on a television, with their hypnotic voice and carefully scripted rhetoric? Basically fast food arguments. Well packaged and targeted for the mentally immobile and languid? This mental retardation is where the problem lies. The elite use it so aptly to their advantage. For the masses, our biggest enemy is dull witted people. People willfully consuming great quantities of disinformation at the biggest brands in town. CNN, the McDonald’s of intellectualism.

Obama the Virtuous

I will assume that Obama and the current administration, are noble, virtuous, and good people. I will assume the Democrats and Republicans are not servants of the elite, and that the US has not waged wars using false pretexts, whether in Vietnam, or Iraq. I will assume that liberty and caring for the tired, poor, huddled masses is still alive and well. Additionally, I will assume that Assad is an evil dictator, and that the rebels fighting in his country are not funded and supplied by any foreign intelligence agencies, and that Assad used chemical weapons on his people.

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What will the noble Obama do? America has been so reluctant to involve itself in foreign matters in the past. How can the US stand idly by, as the Syrian president uses weapons of mass destruction on his people. This is an outrage. Something must be done. The US has never been in a better financial position. I think we should at least engage in a limited strike to assist the freedom loving rebels in Syria.