Most Dangerous Western Great Game in Middle East, Ukraine and Elsewhere
Will Russia and China Hold Their Fire Until War Is the Only Alternative?
Saudis to Reject USD for Oil Payments!
The soul of all Americans is not dead, despite its history of genocide by British settlers on the American continent and then barbaric treatment of slaves from Africa. There are many valiant Americans fighting against mostly Jewish controlled and rigged up financial and political system, media, universities and think tanks.
According to the Hebrew Bible, the golden calf (עֵגֶּל הַזָהָב 'ēggel hazâhâv) was an idol (a cult image) made by Aaron to satisfy the Israelites during Moses' absence, when he went up to Mount Sinai. In Hebrew, the incident is known as ḥēṭ' ha'ēggel (חֵטְא הַעֵגֶּל) or "The Sin of the Calf". It is first mentioned in Exodus 32:4
Now in US, instead of the golden calf, the ruling elite are hanging on to a calf made of worthless green backs. The current resident of the White House, bombing Obama, is nothing but a product of the Chicago Jewish machine. Look at his body language, a sense of guilt manifested on his face and his body frame looking haggard, darker like a sick man, because of the litany of lies and crimes being committed under his charge.
The first article of the two is by a former senior Treasury Department official and reputed editor and columnist Paul Craig Roberts, who has been writing in great anguish and agony pointing out the mistakes and crimes of the American administrations. Dr Roberts is quite right, and deserves attention, but suggestions by him to remedy the situation are a cry of anguish and helplessness against the misfortune been brought on the American people.
Whether it was in Syria last year or Ukraine now, the American leadership is playing blind poker, while Putin from the country of chess grandmasters is showing patience and allowing Washington to make one mistake after another, whether it is destruction of Ukraine as a state or in response to blatant lies, by a black Noble peace prize winner. Chinese are waiting in the wings and will not allow the West to overcome Moscow in United Nations or elsewhere, knowing full well that they would be the next in line for similar treatment.
The strategy of Russia and China diminish the chances of a nuclear war. Russia wants to separate Europe from Washington, and this will take time. China wants to develop economically until Washington cannot even think of attacking. Both of these strategies are feasible, but require patience. Observed a reader of Roberts article that both Russia and China are waiting patiently and wisely for US to crumble from within ... this is how the Soviet Union collapsed and this how the USA will ... it is a matter of time and human kind salvation is coming once the "beast" dies
There are many American economists who see the casino like capitalism under the garb of new neo-liberalism and have been writing that the American economy is finished.
"The US Economy is mired in the worst recession since the Great Depression. The visible piece is shopping malls with one third of stores shuttered, and the jobless rate over 22% in the real world without rose colored glasses. These conditions cannot be sustained, especially since the credit machinery is all jammed. The big US banks are insolvent structures dedicated to the bond carry trade, where that same cheap money is used to invest, often with leverage, in the long-dated maturity US Treasury Bonds. The banks serve the casino, not the business sector.
The entire Taper Talk is a lie, and always has been a lie.
We are told that the demand for USTreasurys is huge by the market players. It might be moderate, but surely not huge, since savings is in shortage. When the Interest Rate Swaps are applied, using 0% money into the machinery tubes, the result is an artificial demand produced to purchase the same USTreasurys. The big US banks are required to follow through, or else to expose the entire sham game, a veritable Ponzi Scheme
The King Dollar is being displaced, kicked off its throne. Its squire the Petro-Dollar is undergoing demise. The Ukraine War is the USDollar Waterloo event. The Kiev Regime fascist leaders have begun to bug out, the IMF $3.2 billion loan funds now gone missing. The big Eastern energy deals are underwritten in Rubles and Yuan, no longer the USDollar, another recent correct Jackass forecast. The Saudi rejection of the USD in exclusive oil payments will be the crash heard around the world. The marriage between the Saudis and Chinese is a process well along, with each month featuring yet another high level conference. The Saudis will make the announcement in the coming weeks or months, as a genuflection before the Chinese, with a hat tip to the Russians. Soon the crude oil price will be set by the Russia-China tag team, priced in Yuan currency. When the Gold Trade Standard is entrenched, the diversification away from USTreasurys in the global banking system will become a torrent. Bank system practices will follow trade payment practices. When installed, it will cause prosperity in the East and havoc in the West.
Below are the two articles;
K Gajendra Singh, 27, September 19, 2014.
Will Russia and China Hold Their Fire Until War Is the Only Alternative?
By Paul Craig Roberts
http://www.informationclearinghouse.info/article39786.htm
September 27, 2014 "ICH" - Obama's September 24 speech at the UN is the most absurd thing I have heard in my entire life. It is absolutely amazing that the president of the United States would stand before the entire world and tell what everyone knows are blatant lies while simultaneously demonstrating Washington's double standards and belief that Washington alone, because the US is exceptional and indispensable, has the right to violate all law.
It is even more amazing that every person present did not get up and walk out of the assembly.
The diplomats of the world actually sat there and listened to blatant lies from the world's worst terrorist. They even clapped their approval.
The rest of the speech was just utter bullshit: "We stand at a crossroads," "signposts of progress," "reduced chance of war between major powers," "hundreds of millions lifted from poverty," and while Ebola ravages Africa "we've learned how to cure disease and harness the power of the wind and the sun." We are now God. "We" is comprised of the "exceptional people"–Americans. No one else counts. "We" are it.
It is impossible to pick the most absurd statement in Obama's speech or the most outrageous lie. Is it this one? "Russian aggression in Europe recalls the days when large nations trampled small ones in pursuit of territorial ambition."
Or is it this one? "After the people of Ukraine mobilized popular protests and calls for reform, their corrupt president fled. Against the will of the government in Kiev, Crimea was annexed. Russia poured arms into eastern Ukraine, fueling violent separatists and a conflict that has killed thousands. When a civilian airliner was shot down from areas that these proxies controlled, they refused to allow access to the crash for days. When Ukraine started to reassert control over its territory, Russia gave up the pretense of merely supporting the separatists, and moved troops across the border."
The entire world knows that Washington overthrew the elected Ukrainian government, that Washington refuses to release its satellite photos of the destruction of the Malaysian airliner, that Ukraine refuses to release its air traffic control instructions to the airliner, that Washington has prevented a real investigation of the airliner's destruction, that European experts on the scene have testified that both sides of the airliner's cockpit demonstrate machine gun fire, an indication that the airliner was shot down by the Ukrainian jets that were following it. Indeed, there has been no explanation why Ukrainian jets were close on the heels of an airliner directed by Ukrainian air traffic control.
The entire world knows that if Russia had territorial ambitions, when the Russian military defeated the American trained and supplied Georgian army that attacked South Ossetia, Russia would have kept Georgia and reincorporated it within Russia where it resided for centuries.
Notice that it is not aggression when Washington bombs and invades seven countries in 13 years without a declaration of war. Aggression occurs when Russia accepts the petition of Crimeans who voted 97 percent in favor of reuniting with Russia where Crimea resided for centuries before Khrushchev attached it to the Soviet Socialist Republic of Ukraine in 1954 when Ukraine and Russia were part of the same country.
And the entire world knows that, as the separatist leader of the Donetsk Republic said, "If Russian military units were fighting with us, the news would not be the fall of Mariupol but the fall of Kiev and Lviv."
Which is "the cancer of violent extremism"–ISIS which cut off the heads of four journalists, or Washington which has bombed seven countries in the 21st century murdering hundreds of thousands of civilians and displacing millions?
Who is the worst terrorist–ISIS, a group that is redrawing the artificial boundaries created by British and French colonialists, or Washington with its Wolfowitz Doctrine, the basis of US foreign policy, which declares Washington's dominant objective to be US hegemony over the world?
ISIS is the creation of Washington. ISIS consists of the jihadists Washington used to overthrow Gaddafi in Libya and then sent to Syria to overthrow Assad. If ISIS is a "network of death," a "brand of evil" with which negotiation is impossible as Obama declares, it is a network of death created by the Obama regime itself. If ISIS poses the threat that Obama claims how can the regime that created the threat be credible in leading the fight against it?
Obama never mentioned in his speech the central problem that the world faces. That problem is Washington's inability to accept the existence of strong independent countries such as Russia and China. The neoconservative Wolfowitz Doctrine commits the United States to maintaining its status as the sole Unipower. This task requires Washington "to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power." A "hostile power" is any country that has sufficient power or influence to be able to limit Washington's exercise of power.
The Wolfowitz Doctrine explicitly targets Russia: "Our first objective is to prevent the re-emergence of a new rival, either on the territory of the former Soviet Union or elsewhere." A "rival" is defined as any country capable of defending its interests or those of allies against Washington's hegemony.
In his speech, Obama told Russia and China that they can be part of Washington's world order on the condition that they accept Washington's hegemony and do not interfere in any way with Washington's control. When Obama tells Russia that the US will cooperate with Russia "if Russia changes course," Obama means that Moscow must accept the primacy of Washington's interest over Russia's own interest.
Clearly, this is an inflexible and unrealistic position. If Washington keeps to it, war with Russia and China will ensue.
Obama told China that Washington intended to continue to be a Pacific power in China's sphere of influence, "promoting peace, stability, and the free flow of commerce among nations" by building new US air and naval bases from the Philippines to Vietnam so that Washington can control the flow of resources in the South China Sea and cut off China at will.
As far as I can tell, neither the Russian nor Chinese governments understand the seriousness of the threat that Washington represents. Washington's claim to world hegemony seems too farfetched to Russia and China to be real. But it is very real.
By refusing to take the threat seriously, Russia and China have not responded in ways that would bring an end to the threat without the necessity of war.
For example, the Russian government could most likely destroy NATO by responding to sanctions imposed by Washington and the EU by informing European governments that Russia does not sell natural gas to members of NATO. Instead of using this power, Russia has foolishly allowed the EU to accumulate record amounts of stored natural gas to see homes and industry through the coming winter.
Has Russia sold out its national interests for money?
Much of Washington's power and financial hegemony rests on the role of the US dollar as world reserve currency. Russia and China have been slow, even negligent from the standpoint of defending their sovereignty, to take advantage of opportunities to undermine this pillar of Washington's power. For example, the BRICS' talk of abandoning the dollar payments system has been more talk than action. Russia doesn't even require Washington's European puppet states to pay for Russian natural gas in rubles.
One might think that a country such as Russia experiencing such extreme hostility and demonization from the West would at least use the gas sales to support its own currency instead of Washington's dollar. If the Russian government is going to continue to support the economies of European countries hostile to Russia and to prevent the European peoples from freezing during the coming winter, shouldn't Russia in exchange for this extraordinary subsidy to its enemies at least arrange to support its own currency by demanding payment in rubles? Unfortunately for Russia, Russia is infected with Western trained neoliberal economists who represent Western, not Russian, interests.
When the West sees such extraordinary weakness on the part of the Russian government, Obama knows he can go to the UN and tell the most blatant lies about Russia with no cost whatsoever to the US or Europe. Russian inaction subsidizes Russia's demonization.
China has been no more successful than Russia in using its opportunities to destabilize Washington. For example, it is a known fact, as Dave Kranzler and I have repeatedly demonstrated that the Federal Reserve uses its bullion bank agents to knock down the gold price in order to protect the dollar's value from the Federal Reserve's policies. The method used is for the bullion banks to drive down the gold price with enormous amounts of naked shorts during periods of low or nonexistent volume.
China or Russia or both could take advantage of this tactic by purchasing every naked short sold plus all covered shorts, if any, and demanding delivery instead of settling the contracts in cash. Neither New York Comex nor the London market could make delivery, and the system would implode. The consequence of the failure to deliver possibly could be catastrophic for the Western financial system, but in the least it would demonstrate the corrupt nature of Western financial institutions.
Or China could deal a more lethal blow. Choosing a time of heightened concern or disruptions in US financial markets, China could dump its trillion dollar plus holdings of US treasuries, or indeed all its holdings of US financial instruments, on the market. The Federal Reserve and the US Treasury could try to stabilize the prices of US financial instruments by creating money with which to purchase the bonds and other instruments. This money creation would increase concern about the dollar's value, and at that point China could dump the trillion dollars plus it receives from its bond sales on the exchange market. The Federal Reserve cannot print foreign currencies with which to buy up the dollars. The dollar's exchange value would collapse and with it the dollar's use as world reserve currency. The US would become just another broke country unable to pay for its imports.
Possibly, Washington could get Japan and the European Central Bank to print enough yen and Euros to buy up the dumped dollars. However, the likelihood is that this would bring down the yen and euro along with the dollar.
Flight would occur into the Chinese and Russian currencies, and financial hegemony would depart the West.
By their restraint, Russia and China enable Washington's attack upon them. Last week Washington put thousands of its NGO operatives into the Moscow streets protesting "Putin's war against Ukraine." Foolishly, Russia has permitted foreign interests to buy up its newspapers, and these interests continually denounce Putin and the Russian government to their Russian readers.
Did Russia sell its soul and communication system for dollars? Did a few oligarchs sell out Russia for Swiss and London bank deposits?
Both Russia and China have Muslim populations among whom the CIA operates encouraging disassociation, rebellion, and violence. Washington intends to break up the Russian Federation into smaller, weaker countries that could not stand in the way of Washington's hegemony. Russian and Chinese fear of discord among their own Muslim populations has caused both governments to make the extremely serious strategic mistake of aligning with Washington against ISIS and with Washington's policy of protecting Washington's status quo in the Muslim world.
If Russia and China understood the deadly threat that Washington presents, both governments would operate according to the time honored principle that "the enemy of my enemy is my friend." Russia and China would arm ISIS with surface to air missiles to bring down the American planes and with military intelligence in order to achieve an American defeat. With defeat would come the overthrow of Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Jordan, Egypt and all of the American puppet rulers in the area? Washington would lose control over oil, and the petro-dollar would be history. It is extraordinary that instead Russia and China are working to protect Washington's control over the Middle East and the petro-dollar.
China is subject to a variety of attacks. The Rockefeller Foundation creates American agents in Chinese universities, or so I am informed by Chinese academics. American companies that locate in China create Chinese boards on which they place the relatives of local and regional party officials. This shifts loyalty from the central government to the American money. Moreover, China has many economists educated in the US who are imbued with the neoliberal economics that represents Washington's interests.
Both Russia and China have significant percentages of their populations who wish to be western. The failure of communism in both countries and the success of American cold war propaganda have created loyalties to America in place of their own governments. In Russia they go by the designation "Atlanticist Integrationists." They are Russians who wish to be integrated into the West. I know less about the Chinese counterpart, but among youth Western materialism and lack of sexual restraint is appealing.
The inability of the Russian and Chinese governments to come to terms with the threat posed to their existence as sovereign countries by the neoconservative insistence on American world hegemony makes nuclear war more likely. If Russia and China catch on too late in the game, their only alternative will be war or submission to Washington's hegemony. As there is no possibility of the US and NATO invading and occupying Russia and China, the war would be nuclear.
To avoid this war, which, as so many experts have shown, would terminate life on earth, the Russian and Chinese governments must soon become far more realistic in their assessment of the evil that resides in what Washington has turned into the world's worst terrorist state–the US.
It is possible that Russia, China, and the rest of the world will be saved by American economic collapse. The US economy is a house of cards. Real median family incomes are in long-term decline. Universities produce graduates with degrees and heavy debts but no jobs. The bond market is rigged by the Federal Reserve which necessitates rigging the bullion markets in order to protect the dollar. The stock market is rigged by the outpouring of money from the Federal Reserve, by the Plunge Protection Team, and by corporations repurchasing their own stock. The dollar is supported by tradition, habit, and currency swaps.
The American House of Cards continues to stand only as a result of the tolerance of the world for vast corruption and disinformation and because greed is satisfied by the money made from a rigged system.
Russia and/or China could pull down this House of Cards whenever either country or both had leadership capable of it.
Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts' latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.
Jim Willie: The Crash Heard Round the World- Saudis to Reject USD for Oil Payments
Posted on September 25, 2014 by The Doc
Putin kicked out the Rothschild bankers from his country. Putin interrupted the USGovt heroin trade supply routes out of Afghanistan. Like Abraham Lincoln 150 years ago, the elite banker chambers wish to remove Putin and to suppress Russia, but the sprawling nation has joined at the hip with China. Thus Russia cannot be isolated any more than a bear can be bear hugged. The nation spans 12 time zones and is a top supplier of numerous important commodities. The Russia & China bond is growing and will result in a marriage, the consummation being a baby called the Gold Trade Standard.
The King Dollar is being displaced, kicked off its throne. Its squire the Petro-Dollar is undergoing demise. The Ukraine War is the USDollar Waterloo event.
The Saudi rejection of the USD in exclusive oil payments will be the crash heard around the world.
The marriage between the Saudis and Chinese is a process well along, with each month featuring yet another high level conference. The Saudis will make the announcement in the coming weeks or months, as a genuflection before the Chinese, with a hat tip to the Russians. Soon the crude oil price will be set by the Russia-China tag team, priced in Yuan. When the Gold Trade Standard is entrenched, the diversification away from USTreasurys in the global banking system will become a torrent. Bank system practices will follow trade payment practices. When installed, it will cause prosperity in the East and havoc in the West.
The Crash Heard Round the World is coming. The USDollar will be rejected, and replaced by the Gold Trade Standard.
The byline should read MONEY VELOCITY HITS RECORD LOW, WHILE MONEY SUPPLY CONTINUES TO GO INTO ORBIT… SYSTEMIC FAILURE IS EVIDENT AS POLICY IS NOT STIMULUS AT ALL… THE PRINCIPAL CAUSE FOR THE BREAKDOWN IS MONETARY POLICY, WHICH IS STUCK IN PLACE.
The USFed monetary policy is killing the system, simply and boldly put. They call it stimulus, when the extreme accommodation is actually just a backdoor Wall Street bailout combined with a pass on the USGovt debt discipline. No debt limit is enforced anymore, a travesty. The United States is looking more like a Third World nation with each passing month, with colossal fraud, economic decay, war and sanctions, and no leadership. The US Federal Reserve has ventured into very dangerous ground, putting hyper monetary inflation as the installed policy, while making money free for the Interest Rate Swap machinery that operates the derivative for maintaining the easy policy. So foreign creditors have largely exited the room, with no great entities to finance the yawning annual $trillion debt. So derivative machinery is relied upon to maintain the absurd 10-year US Treasury (TNX) yield at 2.60% without buyers. So asset markets like the US Stock Market go to monthly new high levels, despite the US Economy mired in the worst recession since the Great Depression. The visible piece is shopping malls with one third of stores shuttered, and the jobless rate over 22% in the real world without rose colored glasses. These conditions cannot be sustained, especially since the credit machinery is all jammed. The big US banks are insolvent structures dedicated to the bond carry trade, where that same cheap money is used to invest, often with leverage, in the long-dated maturity US Treasury Bonds. The banks serve the casino, not the business sector.
STUCK MONETARY POLICY
In no way can the current easy money policy be reversed, and put into a normal mode. In no way can the accommodation be tapered. The entire Taper Talk is a lie, and always has been a lie. The Jackass called out the USFed last June and July, and was proved correct by September. Since that time, the USFed has been lying vigorously and creatively. The Belgium Bulge showed itself as a $400+ billion abscess visible to the world, hardly a real savings account by the small nation. It was either a Hidey Hole for USTBonds or else a loading depot for BRICS sourcing of Gold bullion for their upcoming central bank. In no way can the enormous bond carry trades be stopped. They are the only source of actual income for the big US banks. Their other source of narco funds money laundering. Doing so would put the carry trade engines into reverse, forcing an unwanted Bond Convexity episode of leveraged selling of US Treasury Bonds by the same large corrupted banks which are so clearly involved in the derivatives game. In no way can the USFed hike rates, since their own outsized bond portfolio would register huge losses, only to gain ugly publicity. They after all bought the top in bonds, and continue to buy the top in bonds every month that QE continues. They are the fools buying the asset bubble at the top. See a parallel in Japan.
Red light warning signals are all over the place. The biggest in the Jackass view is the Failures to Deliver. We are told that the demand for USTreasurys is huge by the market players. It might be moderate, but surely not huge, since savings is in shortage. When the Interest Rate Swaps are applied, using 0% money into the machinery tubes, the result is an artificial demand produced to purchase the same USTreasurys. The big US banks are required to follow through, or else to expose the entire sham game, a veritable Ponzi scheme. The banks are growing in resentment. However, not enough USTBonds exist in the operating bond market to satisfy such outsized contrived demand out of machinery. The result is Failures to Deliver, the warning signal of a fabricated rigged market. This Third World nation has fancy machinery indeed.
SMOKING GUN GRAPHS IN CONTRAST
The answer to the US bond riddle lies in corrosive ruinous effect of monetary policy, now in its fourth year. They said the 0% ZIRP would be just for a few months, but they lied. The Jackass said in 2009 that it would be permanent. They said QE bond monetization would be just for a few months, but they lied. The Jackass said in 2011 that it would be permanent. We were taught by central bank mouthpieces for years that a little inflation is good, but a lot is bad. We were taught in economics classes that hyper inflation destroys the entire system eventually, like in Third World nations. Yet QE (hyper monetary inflation) and ZIRP (free money) respectively cause capital destruction with retired equipment and distorted asset prices with no reward to savers.
The two graphs show in clear terms that QE is not stimulus, and ZIRP is a wet blanket. Together they are causing economic collapse with systemic failure. The Jackass words have sounded exaggerated and fantastic for years, actually since the Lehman failure, a basic scuttle kill job done by Wall Street criminal banks in order to protect Goldman Sachs from sinking. The two graphs show a Money Velocity down almost 4-fold while Money Supply is up 3.5-fold. You decide if it translates to systemic failure. Jackass says resoundingly yes. This is broken US financial system and thus a broken US Economy, the consequence of heretical injurious damaging monetary policy. The greater tragedy is that it cannot be removed. Putting a halt to the QE monetary spigot means letting the financial markets collapse, bond yields to rise, stock indexes to fall, carry trade to go into reverse, and consumer lending to dry up. So the QE spigot continues in a slow death dispensing acid, rather than causing a sudden death.
The story sold on the highly corrosive and assuredly ruinous monetary policy is of stimulus. The only stimulus is for the big US banks to continue recycling their worthless bond assets to the USFed as buyer of last resort. The USFed has been totally wrecked in the process, a good thing since the HQ of the banking crime syndicate. The only stimulus offered is to the big US banks to continue with carry trade projects instead of lending toward capital formation in the business sector. The big banks are able to keep the derivative game going with free money, to maintain the Whirling Dervish platform of vaporous mass. The result has been a systematic assault on capital. The US Economy has entered a feedback loop of capital destruction, job cuts, and reduced activity. It cannot be stopped. The results of much lower Money Velocity stands as screaming evidence of failure in monetary policy. The moribund activity means capital is being ruined, not functioning, not producing the wanted output. The slower turnover in the US Economy is not from hoarding of cash. The participants are suffering a shortage of money, often struggling to survive. Putting money in mattresses is an absurd concept when struggling to pay the rent and buy the food and pay the utilities. The beneficiaries of the easy money are the big US banks. They are also suffering a shortage of money, since the derivative holes are acting like sewers to drain their capital. Their capital ratios are not good, and the harsher Basel III rules have been delayed. No cash hoarding evident anywhere.
LOGICAL CONCLUSION
The logical end is systemic failure, USGovt debt default, war to defend the USDollar and the US Treasury Bond. The USDollar has become the ticket that when refused, invites war. The USTBonds has become the toxic element in the banking systems. The Western chambers in the US, UK, EU refuse to liquidate the big banks and work toward the Gold Standard return. So the Eastern chambers in Russia, China, and BRICS nations will pursue the return to the Gold Trade Standard with a growing alliance in support. They are accumulating gold in volume.
The pathetic explanation is left as the final word, by the USFed. They are out of answers, out of policy solutions, and out of integrity. The central bank franchise system has failed. The bankers are cornered, some being murdered. Others might be prosecuted. They are the principal cause of the systemic failure, the other cause being the massive outsourcing initiatives over three decades and the outsized USGovt social welfare state. The bigger principal cause of the systemic failure is the US War Machine, which has been around longer than the debutante Fascist Business Model that made its introduction in 2002. Half the $17 trillion in USGovt debt comes from war spending. They defend the indefensible USDollar, but also the narco business. As footnote, Russian President Vladimir Putin committed two deeds that infuriated the Western bank cabal supra-national leaders. Putin kicked out the Rothschild bankers from his country. Putin interrupted the USGovt heroin trade supply routes out of Afghanistan. Like Abraham Lincoln 150 years ago, the elite banker chambers wish to remove Putin and to suppress Russia, but the sprawling nation has joined at the hip with China. Thus Russia cannot be isolated any more than a bear can be bear hugged. The nation spans 12 time zones and is a top supplier of numerous important commodities. The theme is a constant item in the Hat Trick Letter reports. The Russia & China bond is growing and will result in a marriage, the consummation being a baby called the Gold Trade Standard. The attempts by the USGovt to impose sanctions will result in the United States being isolated, another steady theme in the Hat Trick Letter.
The Federal Reserve published a report. It is laughable. They blame the public, the citizens, and the victims. They talk endlessly of a sluggish recovery like fools and charlatans. THE FOLLOWING IS RUBBISH AND FLIMSY. The StLouis Fed stated the following.
"The issue has to do with the velocity of money, which has never been constant, as can be seen in the figure below . If for some reason the money velocity declines rapidly during an expansionary monetary policy period, it can offset the increase in money supply and even lead to deflation instead of inflation. During the first and second quarters of 2014, the velocity of the monetary base2 was at 4.4, its slowest pace on record. This means that every dollar in the monetary base was spent only 4.4 times in the economy during the past year, down from 17.2 just prior to the recession. This implies that the unprecedented monetary base increase driven by the Fed's large money injections through its large-scale asset purchase programs has failed to cause at least a one-for-one proportional increase in nominal GDP. Thus, it is precisely the sharp decline in velocity that has offset the sharp increase in money supply, leading to the almost no change in nominal GDP. So why did the monetary base increase not cause a proportionate increase in either the general price level or GDP? The answer lies in the private sector's dramatic increase in their willingness to hoard money instead of spend it. Such an unprecedented increase in money demand has slowed down the velocity of money." Rubbish!! The surge of money killed capital!!
GOLD STANDARD RETURN
It is coming. It will be painfully slow in its return. It is the only answer, the avoided solution. As long as QE & ZIRP are in place, highly destructive forces will remain at work, ruining capital within economic structures, distorting asset values in financial markets, leading to gross misallocation of assets, and forcing the system into breakdowns under constant aggravated strain. The monetary policy cannot remain in place indefinitely, since so destructive and disruptive. Time is not on the bank cabal side. The Eastern Alliance will continue to work toward installation of the Gold Trade Standard. It requires and has successfully seen a growing boycott and rejection of the USDollar in trade settlement. The Chinese RMB has been making important inroads to establish Swap Facilities that avoid the USDollar in usage, while more RMB Hub sites are being constructed like giant pillboxes in the Global Monetary War.
The King Dollar is being displaced, kicked off its throne. Its squire the Petro-Dollar is undergoing demise. The Ukraine War is the USDollar Waterloo event. The Kiev Regime fascist leaders have begun to bug out, the IMF $3.2 billion loan funds now gone missing. The big Eastern energy deals are underwritten in Rubles and Yuan, no longer the USDollar, another recent correct Jackass forecast. The Saudi rejection of the USD in exclusive oil payments will be the crash heard around the world. The marriage between the Saudis and Chinese is a process well along, with each month featuring yet another high level conference. The Saudis will make the announcement in the coming weeks or months, as a genuflection before the Chinese, with a hat tip to the Russians. Soon the crude oil price will be set by the Russia-China tag team, priced in Yuan currency. When the Gold Trade Standard is entrenched, the diversification away from USTreasurys in the global banking system will become a torrent. Bank system practices will follow trade payment practices. When installed, it will cause prosperity in the East and havoc in the West.
The reaction by the USGovt and USFed will be full of intrigue and desperation. The USFed will be in overdrive with its interest rate derivative machinery active, to prevent a US debt default event or a visible derivative event with another whale beached in full view. The USGovt will be cornered into launching a new domestic currency, a Scheiss Dollar. The US Economy will react in its own way, with price inflation, supply shortage, and growing chaos with violence. The hint of what comes is seen in the devastating situation in Venezuela, whose tragedy few are paying attention to. They are exporting their essential products (beans, rice, and oil) in order to raise hard currency and to prevent a domestic currency collapse. The same will be done in the United States. The early example of exported essentials is of hayseed for livestock, heading to China from US farms on a growing basis.
