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.

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TPPA AND TTIP: WHAT DOES IT MEAN FOR THE INDIVIDUAL?

If the hens leave the door open to the hen house, and a fox comes in at night and kills them, who is at fault? If the people are too docile and despondent to fight off the advances of a parasitical banking elite, then I find them intimately complicit in their own serfdom.

Of course the TPPA (the European counterpart is TTIP) is being sold to us as a type of “trade agreement”, basically an agreement masquerading as a simple trade-centric agreement, presented as though it was thoughtfully created to enhance trade and the greater prosperity for New Zealanders, et al (laugh out loud), and not for the wet dreams of special interest groups. I am pro trade, but I am not anti-sovereignty! Now, textbooks will state that free trade creates greater price efficiency by removing distortions such as taxes, and that introducing domestic markets to foreign competition increases competitiveness. Perhaps on paper this is true, but whomever wins the efficiency war, eventually will dominate. Do we really want Wal-Marts killing off scores of small businesses in a 100 mile radius (US example), just so we can get the lowest price on trinkets and other disposable objects of low quality. Countries and their people are not equal in resources, and vary considerably in culture, and hence require independent legislation. Do we truly desire to be indirectly taxed (the governments fiscal supply is generated from our tax dollars, which is generated from our labour and resources) by foreign corporations because their shareholders weren’t pleased with their latest quarterly dividend? Suing nations for damages because domestic legislation impacted profit projections. You may as well pick my pocket! These corporate vehicles, predominantly the giant corporations, whether multi, global or trans, love avoiding tax, and have no allegiance to anyone but their global shareholders. Their aim is to privatize profits and externalize costs, whether environmental or otherwise. This type of (corporate) person does not make a good friend. They will be with you when you’re up, and gone when you’re down. I am highly dubious of agreements such as this, drafted by special interests for special interests. I do not foresee the TPPA shrinking the wealth divide or providing anything of substance to the people. The U.S has enormous power concerning agribusiness and the pharmaceutical industry, and we obviously can not compete against that and their battalions of lobbyists. The EU is basically the same as the U.S in respect to lobbyists in Brussels, and the strength of their counterparts to big pharma/agra. What type of agreement will be shoved down our necks after the TPPA and TTIP legislation is enacted? The Global Investment Partnership Agreement? Created to merge the market places of the TPPA and TTIP, to create the holy grail of corporate dominance and subjugation, a corporate playground for the special interest groups to roam unabated by common sense or morals, roaming freely and without consequence, ravaging economies and the health of people. Is the allure of selling more dairy overseas that strong and important? We have successfully polluted our waterways, perhaps it is time to pollute our country some more. Personally, however, I will not vote to hand over my sovereignty in exchange for a few low priced trinkets…

Sovereignty, if not for individual and country, then not at all

“Must the citizen ever for a moment, or in the least degree, resign his conscience to the legislator? Why has every man a conscience then? I think that we should be men first, and subjects afterward.” Henry David Thoreau

Do you consider yourself to be a sovereign individual? Do you enjoy the right to own property? Do you abhor tyranny, war, and big government?

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Sovereignty

It is the year two thousand and thirteen, Anno Domini – I ask you, “Is sovereignty still intrinsic to a democracy, dictatorship, quasi-theocracy, or republic“? Do they not have in common the ever burning desire to be free from outside interference and subjugation at the international level, and do not the individuals yearn for freedom and self-ownership. I ask you, “What man or woman ever voted to give up self-ownership, and put that inalienable and intrinsic right into the hands of the collective?” Historically, the individual and by extension the country or nation state, have striven for self-determination and self-ownership, the United States of America being the most shining example in recent history. Never once has a voter pursued tyranny, with the hope of achieving freedom. For what man would willfully choose to abdicate his freedom, whether noble or peasant!

A great man once said “Any society that would give up a little liberty to gain a little security will deserve neither and lose both.”

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Globalization

Yesterday, today, and tomorrow, globalization was, is, and will be, knocking at the figurative door with its quizzical agenda. Globalization, whether considered a zero or positive sum game, has created a new species of organization. A truly global corporation with a global perspective. The world is gravitating toward a single marketplace. As barriers to trade are reduced or dissolved in the name of free trade and economic growth, as we approach a singular marketplace, you might think mankind would stop and consider the relevance of sovereignty. Is it viewed as an archaic hangover from the past, impeding the road to a truly global world and its textbook theories, or is it a vital piece of ourselves and our respective homelands, that should never be ceded?

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International Trade Agreements

International trade, in practice, not just in theory, has been proven to inspire innovation, enhance competition, reduce inefficiencies, and increase economic growth. These features are positive when viewed from an economic perspective, without bias favoring either consumer or producer. Legislation and behavior that impedes trade is counterproductive and undesirable, at least according to popular opinion among economists. Where it becomes murky, is when a trade agreement requires tearing off pieces of sovereignty, piece by piece, whether food sovereignty (the ability to choose whether you eat GMO, not whether Monsanto desires it to be), health sovereignty (freedom of choice to legally produce and consume natural alternatives to pharmaceuticals from major organizations such as Pfizer).

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Legislation

It’s all about the fine print people. I will use the lobbyist model for legislation enactment in this example. Not only specific for the USA, lobbyists, front-men for the guild of special interest groups, are paid to present and offer financial incentives to influence congress to have laws enacted, laws which are obviously drafted by corporations and special interest groups. In my country, major laws are either forced upon us via political strong arming, in which we usually acquiesce, and rarely ever by referendum. Political hot potatoes are rushed through late at night, not dissimilar to the method by which the Federal Reserve Act of 1913 was enacted late that fateful night of December 23rd. Woodrow Wilson, current president at the time, later rued the decision, quote “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.”

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Conclusion

Take an active role in your district, support good men and women. Familiarize yourself with important laws, such as the Federal Reserve Act of 1913, the Patriot Act, etc. It is up to you to be wise and knowledgeable. Nobody will take your freedom more seriously than you.

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