Nation By Nation (4Mar)

1-4Mar09 -- Celebrating the West continued prolapse with news from around the world deloused of the sickening pro-West mindrape spin. (Mouseover flags for info)

A U S T R A L I A Australia - As GDP begins shriveling like the rest of the West has-beens, Canberra reaches for the hyperinflation pump and dumps 10B onto its prolapsing econ.

E U EU - Biggest wank, HSBC, down 70%, cutting 6K jobs and needing 18B USD to survive. HSBC's shares suspended on Honk Kong exchange to stave off another famous West crash.
- Germany blocks 200B EUR aid to the toppling eastern EU. Fancy that! How could Germany, a little overcrowded saxon nation, be expected to wanna help those who it tried genociding off the face of the earth 60 yrs ago?
- NATO shows signs of sidling up to Russia. Last year Moscow told NATO that if they're serious about 'defence' they should let Moscow run NATO. It only took a year for NATO to grasp the concept. That's somewhat of a record considering the enormous drag of the diseased saxon baboon brainstem.
- While Brussels dumps eastern EU overboard, it rolls out a "secret" plan to save the Euro-zone (16 states that were foolish enough to adopt the Euro). The fear is that Italy, Spain, Portugal, Greece, or Ireland may default and thus end the mighty Euro-zone. This is, of course, a double-edged sword as it gives the aforementioned prolapsing nations unprecedented leverage against Brussels, as Brussels can stop at nothing now to try hold the Euro gulak together. Watch someone figure this out and ask for rather hefty "bailouts".
- GM pushes back the EU rising revolt threatening EU with zapping 300K jobs unless EU shuts up and prints cash for the US firm. Nice seeing the West rapists going at each other's throats, isn't it?
- 24M worth of coke caught in Belgium and 20M in Austria raises a question: is EU pursuing a new business model?
- The Hague ICC (int'l court) issues arrest warrant for O Bashir, Sudanese prez. Kill children in Gaza, Iraq, and Afghanistan, torture, helicopter zillions (hyperinflate economy), no problem. But protect your own oil from the West vampire and get arraigned by the West monkeys.

Sudan's official response to the West "justice" pervs: "Indeed, the verdict that was announced today in the Hague does not deserve the ink used to print it. It is an insult to justice and it is a demonstration of the Euro-American justice which caused destruction in Iraq, Afghanistan and Gaza." It's nearly as though they read this blog before issuing the response to the latest West barf.

F R A N C E France - Guadeloupe, on a brink of collapse, demands end of racism. Demanding West to stop its racist ways is as futile as asking the London-created Dracula monster to give up blood.

G E O R G I A Georgia - Lets out a heart-wrenching cry begging its West masters to help stop the nation's sad break-up and somehow prevent Russia military moving next door to the sovereign Abhkazia. Not many West war enthusiasts answer Saakashvilli's mournful plea though.

G E R M A N Y Germany - Volkswagen is cutting 16.5K jobs.

G U A T E M A L A Guatemala - Getting Russian arms.

I R A N Iran - Joins Russian Commodity Exchange to sell oil. Yes, indeed, the dollar pretense world is no longer necessary. And this comes right after the West's printed itself Alps of dollars.

I S R A E L Isreal - Land theft continues as Tel Aviv doubles occupation of West Bank.
- Srikes on Gaza continue, as Israel hits Gaza on 4Mar.

I T A L Y Italy - Sidling up to Moscow, makes a grand gesture of returning St Nicholas church to Russian Orthodox after the West holy-war psychos had stolen it for the Vatican jesuit fiend order.

J A P A N Japan - Toyota, as sales hit 35yr low (30% down in USA and Japan with 350B JPY loss), begs governance for 200B JPY.
- Vows to shoot at North Korea though.
- Stocks hit 26yr low.
- Becomes Russian liquid-gas dependent.

K A Z A K H S T A N Kazakhstan - Getting Russian S-300 missile defence battery.

N O R T H  K O R E A North Korea - Not just shooting missiles to the chagrin of the West beast, but also planning a satellite lift. USA must love this one since a US satellite wound up in the ocean last week. USA escalates provocations by staging military "exercises" with South Korea.

N O R W A Y Norway - Wants to make an Arctic war dept with Denmark, Sweden, Finland, and the prolapsed Iceland against Russia's patrolling Russian North Pole. The only significance here is the joke of it.

R U S S I A Russia - 30B USD worth of weapons orders in.
- Reveals USA deliberately knocked down Russian satellite on 10Feb. Since then 4-5 satellites have crashed though West media whores explain crashes as extra large "meteors".
- Tells Obama to shove his bargaining skills as Obama uses non-existent nukes for leverage on Moscow.

S P A I N Spain - Slurps up to Russia seeking increased energy dependency. Spain is currently 20% gasoline dependent on Russia. But at least, Spain understands who da boss.

S W I T Z E R L A N D Switzerland - Brussels mulls putting Switzerland on a tax-haven blacklist after UK and USA have plundered the "secret" accounts looking for a bit of cash. Looks like Swiss Vatican banking hours idyll is over. Henceforth, the pretty Swiss cliff-clinging people will have to join reality and seek employment in a sweatshop manufacturing toys for ASEAN market. Watch for Vatican to join the bank gaming now.

U K UK - London boasts proactive quelling methods for the "up-coming" riots by targeting activists who tell the truth. Truthseeker website admin committed Kelly suicide a few weeks ago. Any link there?
- Brown in USA, rewriting the failed NWO assault of the planet penned by Bush II and Blair renaming New World Order to New Global Deal.
- Bank rate at zero. Yes, West cash is worthless. Pretty soon, with the immense and increasing hyperinflation, they'll have to PAY for someone to take the trash away.
- The gloves come off in the NWO econ attack as Bank of England is now to print own money and soon flood UK with some 200B GBP.
- Military applies for 15B GBP. Why not 150B? Numbers in this NWO econ war waged on the world are immaterial.
- Bank of England depositors took 8B GBP out in a raid on the bank.
- Food up 10%. Poverty heading thy way, West. But so what? As long as your betters are drowning in crisp new trillions.
- Totally impervious to reality, London maintains it's only gonna shed 150K jobs in 2009. LOL

U K R A I N E Ukraine - Collapsing. On the brink of revolt. Banks stop paying depositors.

U S A USA - 16 more wanks gone in 2 short months.
- Out of leverage: This is best highlighted by the recent silly White House fiasco. Int'ly embarrassed Obama, caught trying to bully Russia with legions he doesn't have, is performing a laughable backstroke sputtering that he really didn't mean to threaten Russia with the non-existent battery of nukes to get help on Iran.
- 630K jobs gone in just Feb -- and that was a short month! Brown, UK PM, predicts this number to jump over 1M shortly. Yes, Mr PM, that's right, USA/UK/EU are all in terminal prolapse. But you just keep printing zillions there.
- AIG posts 60+B USD loss so USA quickly prints up 30B for them. Notice small change like 30B no longer requires lengthy debates and pesky congress approvals. (Sidenote: It should be understood that the West printing of cash is the continuation of the NWO world assault. It has nothing whatever to do with "saving" or "bailing out" anything. It's just pure econ warfare. But the NWO screwed this one up as well. They thought they'd wreck China and Russia but instead have only managed to drown themselves in an unsolvable hyperinflation and astronomical debt, turning the West ~800M populace into pathetic, homeless, little war serfs.)
- GM sales down 50+%, Ford down 50%. (Historical: Ford built, with full US governance consent, trucks for Hitler and repaired them for the German murderers in Switzerland and south France throughout the war. Just in case the reader felt sorry for these USA war concerns.)
- GM further cutting near 50K jobs after admitting 30B/yr loss.
- GDP shriveling at 6% and exports down 30%. Not bad considering the hyperinflation and prolapse. But then again, these numbers are printed by the same charlatans that assess US war losses at 3000.
- JP Morgan still foreclosing though it promised to freeze that. Shocker, isn't it!
- Pentagon admits to Iraq and Afghanistan occupation US troops suffer 360K brain injuries. Considering the current 1/4-1/5 dead/injured ratio, this admission means that there's some 80K US troops dead. That means that Pentagon lies some 2500% about its war troop losses.
- FEMA concentration camps revealed on mainstream USA mindrape network. Bloggers were right, weren't they? And for good 5 yrs.

USA cops attack kids, West vampire's favourite target.

V E N E Z U E L A Venezuela - Takes over food plant that overcharged. Fearing the same fate, West mindrape media puts in overtime rubbishing Hugo Chavez as West food profiteers still have a few plants in Venezuela.

Hugo Chavez protects food supply from the West profiteering vampires. be cont'd as it all piles up.


Anonymous said...

Thanks for putting all this together in one perspective to get a bigger picture. Where is the world headed? The evil empire in its last throes.

Re France: ZioNeoCon Sarkozy is taking the country further back into the folds of NATO to "better exercise the independence of France and that European defence."


Anonymous said...

It is good to see travesty-of-justice Hague being dismissed with proper contempt. Sudan has done nothing wrong and has nothing to fear. It is also heart-warming to see hero Hugo Chavez's face giving some meaning to all the rest of the stuff passing for news in these greivous times.

Anonymous said...

USA pens its own epitaph

“It's possible that it's over – and there's nothing to be done. We're the national equivalent of a zombie bank. A dead country walking. And we might not even know it."

Chalmers Johnson

poiuytr said...

to informatron: where is west headed? USA? concentration camps. that's mainstream CNN news now.

under no circumstance printing money = making money. quite the opposite, which is why it was so illegal. USA doubles internal debt every quarter now. banks are drinking over 130B each day. no industry in USA is making cash. GDP is shriveling like EU. print zillions more of game money , it's over.

if they had brains they'd surrender, break up, and become China, Russia, Saudi, and other creditors' land, very much like Soviet Union did in 1990.

but these guys are heading for lockdown and WWIII. that's why they're knocking Russian satellites.

the amazing thing is that USAns think everything fine. either the web is taken over by rumsfeldian shills or the yanks have gotten even dumber.

poiuytr said...

to 9:01
yes, WTF is EU playing at? they've got war criminals in every nation and they prosecute Sudan cuz Sudan didn't give them oil they've been trying to rape for 15 year (thanks to Russia).

UNFUCKINGREAL. but yes it's great to see that not everyone listens to the drivel that spews out of the mad west.

poiuytr said...

to 9:17
isn't C Johnson supposed to be smart? or at least by USA standards?

how the hell can he then put "if" on it? can't he count? doesn't he understand inflation, hyperinflation, devaluation, and simple things like that?

that's the amazing bit. the fact that NWO lost every single battle they started is a matter of excellent debate but the fact that they're this cretinous about it is just beyond credible.

Anonymous said...

Yes, C. Johnson, in his seventies now, is what is termed a "scholar". Does his best. The time for "ifs and "buts" has passed, agreed. Now it's one long walk to the death cell.

Anonymous said...

Genetically modified General Motors has come to live on hot air alone. Next it will be seeking out suitable planks of wood to carve out its coffin.

Anonymous said...

Russian scholar says US will collapse next year


MOSCOW (AP) — If you're inclined to believe Igor Panarin, and the Kremlin wouldn't mind if you did, then President Barack Obama will order martial law this year, the U.S. will split into six rump-states before 2011, and Russia and China will become the backbones of a new world order.

Panarin might be easy to ignore but for the fact that he is a dean at the Foreign Ministry's school for future diplomats and a regular on Russia's state-guided TV channels. And his predictions fit into the anti-American story line of the Kremlin leadership.

"There is a high probability that the collapse of the United States will occur by 2010," Panarin told dozens of students, professors and diplomats Tuesday at the Diplomatic Academy — a lecture the ministry pointedly invited The Associated Press and other foreign media to attend.

The prediction from Panarin, a former spokesman for Russia's Federal Space Agency and reportedly an ex-KGB analyst, meshes with the negative view of the U.S. that has been flowing from the Kremlin in recent years, in particular from Vladimir Putin.

Putin, the former president who is now prime minister, has likened the United States to Nazi Germany's Third Reich and blames Washington for the global financial crisis that has pounded the Russian economy.

Panarin didn't give many specifics on what underlies his analysis, mostly citing newspapers, magazines and other open sources.

He also noted he had been predicting the demise of the world's wealthiest country for more than a decade now.

But he said the recent economic turmoil in the U.S. and other "social and cultural phenomena" led him to nail down a specific timeframe for "The End" — when the United States will break up into six autonomous regions and Alaska will revert to Russian control.

Panarin argued that Americans are in moral decline, saying their great psychological stress is evident from school shootings, the size of the prison population and the number of gay men.

Turning to economic woes, he cited the slide in major stock indexes, the decline in U.S. gross domestic product and Washington's bailout of banking giant Citigroup as evidence that American dominance of global markets has collapsed.

"I was there recently and things are far from good," he said. "What's happened is the collapse of the American dream."

Panarin insisted he didn't wish for a U.S. collapse, but he predicted Russia and China would emerge from the economic turmoil stronger and said the two nations should work together, even to create a new currency to replace the U.S. dollar.

Asked for comment on how the Foreign Ministry views Panarin's theories, a spokesman said all questions had to be submitted in writing and no answers were likely before Wednesday.

It wasn't clear how persuasive the 20-minute lecture was. One instructor asked Panarin whether his predictions more accurately describe Russia, which is undergoing its worst economic crisis in a decade as well as a demographic collapse that has led some scholars to predict the country's demise.

Panarin dismissed that idea: "The collapse of Russia will not occur."

But Alexei Malashenko, a scholar-in-residence at the Carnegie Moscow Center who did not attend the lecture, sided with the skeptical instructor, saying Russia is the country that is on the verge of disintegration.

"I can't imagine at all how the United States could ever fall apart," Malashenko told the AP.

Anonymous said...

Russian general says U.S. may have planned satellite collision

By: RIA Novosti on: 05.03.2009

A collision between U.S. and Russian satellites in early February may have been a test of new U.S. technology to intercept and destroy satellites rather than an accident, a Russian military expert has said.

(2247 bytes) [c]

Russian general says U.S. may have planned satellite collision

03/03/2009 13:01 MOSCOW, March 3 (RIA Novosti) - A collision between U.S. and Russian satellites in early February may have been a test of new U.S. technology to intercept and destroy satellites rather than an accident, a Russian military expert has said.

According to official reports, one of 66 satellites owned by Iridium, a U.S. telecoms company, and the Russian Cosmos-2251 satellite, launched in 1993 and believed to be defunct, collided on February 10 about 800 kilometers (500 miles) above Siberia.

However, Maj. Gen. (Ret.) Leonid Shershnev, a former head of Russia's military space intelligence, said in an interview published by the Moskovsky Komsomolets newspaper on Tuesday that the U.S. satellite involved in the collision was used by the U.S. military as part of the "dual-purpose" Orbital Express research project, which began in 2007.

Orbital Express was a space mission managed by the United States Defense Advanced Research Projects Agency (DARPA) and a team led by engineers at NASA's Marshall Space Flight Center (MSFC).

According to the DARPA, the program was "to validate the technical feasibility of robotic, autonomous on-orbit refueling and reconfiguration of satellites to support a broad range of future U.S. national security and commercial space programs."

Orbital Express was launched in March 2007 as part of the U.S. Air Force Space Test Program's STP-1 mission. It tested a prototype servicing satellite (ASTRO) and a surrogate next generation serviceable satellite (NextSat). The demonstration program met all the mission success criteria and was officially completed in July 2007.

Shershnev claims the U.S. military decided to continue with the project to "develop technology that would allow monitoring and inspections of orbital spacecraft by fully-automated satellites equipped with robotic devices."

The February collision could be an indication that the U.S. has successfully developed such technology and is capable of manipulating 'hostile satellites,' including their destruction, with a single command from a ground control center, the general said.

Anonymous said...

dear poiuytr:

Where will all the yanks go when their great empire collapses? Will they stay in the US?

poiuytr said...

where will they go? excellent question. really excellent question. i know it sounds rhetorical a bit but now, it's a serious and exceptional question.

what's the USA governance think? let's ask them, shall we?

well, considering the USA is littered with literary perhaps hundreds of thousands of plastic coffins... and considering the Public Detention Forced Labour system, that the USA has had as a budget item costing them some 500M/annum to upkeep with some 15M cot capacity, we slowly get the outline of the answer, don't we?

what's the China and Russia creditors think about it? i don't know. there's rumors of Chinese troops south of USA but why/how?

China doesn't need people, does it? they need land.

i don't know. but USA gov't has a place for them.

amazingly, USAans don't grasp it still though it's MAINSTREAM news for them.

poiuytr said...

17:03, thanks for the satellite article. yes. i contend now that... i wasn't too sure 4 wks ago, but now i contend that there's a "war" in the orbit. there's 5 satellites, pawned off as meteors, that came down in Saudi, Sweden, US/texas, US/washington, in the last month or so.

is USA trying to knock them down to blind Russia & China for the "necessary" attack on Iran? this premise seems so flimsy, especially considering China's ability to shut down USA satellites with lasers (demonstrated 4 yrs ago). but they're mad, they're more than mad and may be choosing war after all. could that be?

Anonymous said...

this world's going to hell

and fast!

Anonymous said...

Space wars seem fanciful when first stated, but might well be underway, judging from the scanty evidence so far gleaned. On the other hand, they are probably doomed to failure, just like the undersea cable wars which cut communications a few years ago. US-EU are down for the count as far as finances go. Is shooting down sattelites a way to revive that eternal sense of ziowest self-satisfaction and retain a sense of unquestioned power?

Anonymous said...

Sheer folly, if that's what the war people are planning. America and the rest depend so much on satellite communications to further what remains of their economies, any disruption there would plunge them straightaway from the Great into the the Greatest Depression ever. Debris in space would also create so much pollution it would put paid to life on earth. They are certifiable, we know that, but stark raving remains to be seen.

Anonymous said...

In connection with Professor Panarin's predictions regarding the coming break-up of the States, please to remember that Panarin predicted America’s current economic predicament nearly ten years ago. Moreover, others like trends forecaster Gerald Celente have echoed much the same thing.

So only a fool would attempt to cynically dismiss Panarin’s assessment, as the above article tries unconvincingly to do. And while we don’t concur with Panarin’s time table – giving the U.S. another at the utmost another 2 to 3 years – we absolutely agree with him on the ascent of China and particularly Russia.

Anonymous said...

Vision or division, oops, sorry, diversion? While we gaze at the stars, events on the ground grow ever grimmer?

poiuytr said...

Yeah, there was a Russian gen'l (don't recall the name) back in mid 90s or so saying that USA don't get it because they're the ones that lost the cold war.

the strange thing is that USA had gone belly up in mid 90s but no one noticed then. nobody noticed bush's speach launching the NWO either.

Anonymous said...

Excellent points there concerning the exact time when decay began to set in and the name of the actual victor in the cold war. Also to be noted that the first Gulf War marked the veritable beginning of the end.

poiuytr said...

here's the article, the prediction on USA split.

Anonymous said...

Know anything about the truthseeker site administrator who is said to have "committed suicide" about a week ago? It is said he drowned while bathing in the sea. In this weather! God!

Anonymous said...

Re: U.S. will split apart by 2011 to become FUSA (the former usa)

See Dmitry Orlov:
“By the mid-1990s I started to see Soviet/American Superpowerdom as a sort of disease that strives for world dominance but in effect eviscerates its host country, eventually leaving behind an empty shell: an impoverished population, an economy in ruins, a legacy of social problems, and a tremendous burden of debt.

The symmetries between the two global superpowers were then already too numerous to mention, and they have been growing more obvious ever since.”

“The USSR was better prepared for collapse than the US.”

Dmitry Orlov Dec 4 2006 Energy Bulletin

See Orlov blog:

And here is a very good comment made on the Orlov blog:

"One thing that is a BIGGY is that the USA is now so multicultural 'unlike the USSR' I think the USA will explode with violence...also the USSR most people didnt own guns.

As a historian I can tell you during bad times multicultural civilizations fail. Also all your ideas are good but nothing is being done..and wont be done its only wishful thinking.

The USA has 310 million people, of 100 different ethnic group, and 30 differenet races, no infastructor, a modern generation of idiots use to MTV and video games.

Sorry but I left the place 5 years ago and have resettled in an Eastern European nation.

Those who prepare in the USA need to understand your preparations wont help you but maybe 2-3 months more to be better off.

America is facing a collpase that will make the USSR collpase look like a puppet show."

Sunday, February 15, 2009 3:17:00 AM EST
You can listen to Orlov "Social collapse" lecture here:


poiuytr said...

Right, the first Gulf war, Desert Storm, predicated on a BS Kuwait occupation, was the battle to push Iraq from euro back to dollar. Right! Otherwise, 1989 (was it?) would have been 2006 for USA, the end of petrodollar and the beginning of the end of the dollar.

If USA wants the dollar back, they'll have to re-establish the petrodollar (or carve out some completely non-oil monopoly which is hard since no one's taking their IMF, WB loans either.) and the only way to do that today is by destroying Iran, Venezuela, and of course Russia. It's a bit complicated for the West today.

See, even if they win Sudan and Somalia, which they can't, the dollar is still dead.

poiuytr said...

12:44 website? don't know anything... i've been to it. but don't know anything about the guy that David-Kelly himself.
but London said it's cracking down on anyone who tells the truth about how the bankers get free cash while the rest are starving. they're specifically targeting "activists" who may provoke anger against bankers. since when does police is the bankers' security force.

poiuytr said...

yes, Orlov is dead on. remember USA riots in the 90s? racial violence exploded in some five cities, war zone in a matter of hours.

but never mind facts. one yankee posted this on youtube:
"It doesn't matter if we all get laid off. We're a great country and people and we will help each other..."

no kidding! not a joke! yank baboons are truly impervious to reality.

Anonymous said...

The Pentagon admits to 360K brain injuries? Well, participants in illegal genocidal wars
already have brain injuries prior to participation in the occupation and mass killings.

I should not have shot this Baby in Fallujah... I suffer from nightmares. I need treatment.

The US Nazi troops should be ashamed. We already see lots of crime activity coming out of the returning war veterans. Once the barrier for murder is broken we know what can happen.

We increase the already extensive US incarceration facilities. Building more prisons would give the economy a leg up as well. Go for it, Amis!

poiuytr said...

yeah, those may be mental injuries. they announced the 10K humvees gone. about 3 yrs ago, they had 70K suffering DU, or actively dying and out of war. what's the real count here? about 2yrs, it looked like 30K dead and some 80 out of work. USA's recycled some near 1.3M.

it's hard to guess this. like US economy, they don't tell ANYTHING, just lies, like US GDP, which counts cash twice and other wonderful lies in it. it's like US literacy claim to 100% when they've got 45M that can't read AT ALL.

any info from US defeat in Iraq is most interesting cuz it underscores the pure scifi nature of the 3000 dead claim.

Anonymous said...

I like this blog. It takes a miasma of seemingly meaningless facts and makes them fit into a some kind of a recognisable pattern.

Regarding the Truthseeker website and police action against activists, yes, the surveillance state is definitely advancing. We should all be very, very careful. But I suppose you know that already.

poiuytr said...


alas, i have no answer. the west has two options left: give up and break up or war on.

the former means the end of the war elite west junta, which they're NOT bent on doing.

the latter means war on everything in the harshest possible way since they're out of time. of course, short of a head-on attack with Russia or China or Iran, that is. so it's just civilians...

i'll be honest here, when i think of the fate of the truthseeker guy, the banker bailout suddenly seems quite sensible. banks, not lending cash, not paying back depositors, and instead printing hundreds of billions seems pretty reasonable to me.

Anonymous said...

Your last paragraph there about bankers and their doings sends shivers down the back. Are you perhaps saying there's method in their madness, that they're actually turning their weapons, oh, ever so nicely, in sophisticated bursts, against their own populations for lack of the means to attack some outside enemy? Or do you mean that fiat mountain is there to start a war against some innocent country abroad?

Anonymous said...

Perhaps the bankers want to take over world rule, one Federal Reserve on a planetary scale, once the dollar has defaulted, the US made irrelevant and the rest of the world in dire need of a saviour of last resort.

poiuytr said...

the fiat mountain... well, first, it's not fiat anymore. dollar is just west currency. and even swiss and the elite has dumped it years ago.

but no i don't think that a war on an innocent nation is the solution anymore for them. even if the west managed a miracle and stolen iraq oil, taken Sudan, taken Somalia, Lybia, and moved gas and oil away from Russia and the Gulf, it solves nothing.

that's my guess. and the reason is simple, the dollar is dying. the petrodollar has been dead for 3 yrs now and the dollar, not being the monopoly since 1945 (loans and then petrodollar) the dollar cannot survive or not without serious devaluation of some 95%. not my number, read that last year, some prediction. just count the trillions. USA doubled internal debt in 3 months. it doubled entire dollar supply from 2000 to 2006 and then AGAIN from 2006 to now. notice the exponential there.

so no dollar, no way of making it, no way of forcing the world to eat the hyperinflated nonsense, the USA is broke, flat broke and the trillions of the elite's cash is just vapour, paper, just stuff.

i think that's why rouble and yuan, the natural offset since euro's gone, be it a dollar offshoot, are held low via pegs. the idea being they don't want to influx from trillions of dollar buy into yuan or whatever. it's probably happening anyway, but probably not on the trillion scale.

and so the west (be it bankers or war selected legislators) is just out of options.

and anyone's guess is right.

remember South Am 15 yrs ago? GAP! the rich, the nazi leftover fed by the west, established cities and provinces within nations it parasited. 7 metre walls would apartheid off the "rich" pretty saxons and outside... squalor. lawlessness, general typically ran the show till the next general took him down. cash hard-pegged to something and amazing poverty with kids going through trash like rats and getting shot by cops like in Rio and so on while the rich have yachts, airplanes, mansions, coastlines, etc etc.

so i'm guessing that since they lost the attempt at world domination and now have lost the dollar in the process, they're gonna wanna remain at least elite in the lands they control, ie the west.

and that means great poverty sweeping the west nations, wealth gap, and of course military junta to protect the betters.

look, it's hard to use past econ example for future since there's many unknowns but i think they're thinking along these lines.

even war on Iran, even if USA could hit 300 strategic targets within a few nanoseconds and subjugate the 60M people, it solves nothing. dollar is still dying and hyperinflated. and that's why we haven't seen the attack.

if only it was as easy as attacking another nation, the west would have happily done that already.

i don't know the solution. i haven't known it for 4 yrs when the petrodollar end was clearly foreshadowed as was the end of the dollar foretold at Davos just now.

but the question isn't what's the west war elite gonna do. the question is what's the populace gonna do?

some yank wrote me just now: "USA didn't do 911. Osama did. It's common knowledge. So get your facts straight."

if only the west boys had a brain cell among them. but alas...

i drivel too long. i'll write an article on the west currency monopoly. amazingly people think it's toxic assets and used to be subprime oversight. anyway...

poiuytr said...

certainly that was the NWO plan as announced by papa Bush in 1991 on sep 11 (how else?)

but i don't see it now. see, in 1991, Russia had just collapsed and USA pounced on it taking over EVERYTHING including energy, politics, media, banks... everything. (sidenote: soros/rothchild carlyle holding bought Russia's energy (gas/oil) for some 300M dollars!) remember yukos and the fun the west has had with it?

anyway, so in 1991, the NWO launch was in the purview of Russia being at last fully taken over by the west. remember how EU/US had stakes in Murmansk and Sakhalin for gas?

and China in 1991 was still slaving away using what it had made to buy USA T-bills or rather loaning USA back the money they had made on the US market a nice rate. it wasn't until 1995 or that USA had noticed it and it wasn't until 1998 or so that USA began screaming that something has to be done since China by then de facto controlled dollar's interest rate making the US central bank a subsidiary of Beijing monetary policy. that's why Clinton and Bush II badgered China endlessly to try to break the yuan/dollar peg, of course, to no avail since they had no leverage.

the last resort was trying use oil against China since in 1991 there were only USA oil wells in the world.

so in 1991 the plan for world domination seemed sound to them.

by the time they launched the terror war in 2001, it was too late. the world got way too strong simply put.

and so today, collapsing USA, collapsing/devaluing dollar, uniting EU/USA/Canada/Mexico, none of this makes any difference anymore since oil flows from non-US wells, market is non-US dependent, and world cash is non-dollar dependent. india alone is a bigger market than EU/USA/Aussie together.

so making one world central bank today is a problem since Russia and China don't wanna play along and they're the dominant factors in every aspect today.

but certainly Bush II's crusade investors thought they're investing in a global bank and energy dominance even as late as 2006.

Anonymous said...

The populace? The populace will do fat all. How big is the financial elite? Half that and you have the number of people who know the least thing about politics and what's really at stake, including 9/ll obviously. They have carefully been trained to do nothing. That's exactly what they'll do, nothing at all. Revolutionary forces in this world are to be found only among Muslims and in South Am, and the latter only because the former have been willing to serve as cannon fodder while they strengthen their system at top speed. How marvellous if we could see the westerners line up and beg on the streets and in soup kitchens, the welfare state gone, the Amercian hubris torn.

Anonymous said...

"My rational and considered belief is that gold, as well as crude oil, will be anchors to the next global reserve currencies. What better route to stabilize both financial and commercial price systems? Those who believe that the USDollar will prevail and survive this turmoil as the global reserve currency are precisely as incorrect as those who believed the US banking system could survive the mortgage debacle as it unfolded. We are witnessing a long slow drawn-out death experience for the USDollar, liquidation of the USEconomy, to be followed by a default by the USTreasury Bonds." Up the rouble, the yuan and the Muslim gold dinar!

Anonymous said...

I've got another one for that mythical populace. They'll try and book one last trip to their favourite holiday resort. These are not people, and self-respecting certainly not. They are machine-driven entities which clutter up the place.

Anonymous said...

Thank you very much. Sound, solid reasoning in both your economy pieces above (7.3.09).

Anonymous said...

One thing escapes us. Why the obsession with 9/11? Barely three days after it happened, we knew the official version had as little to do with events as a Grimm's fairytale has to do with a physics textbook. It was just another exemple of the wanna-be imperial power's third-rate habit of deception and lies. Those who haven't seen the truth even now will never be enlightened. They can't be humanly rescued.

Anonymous said...

What's Dead (Short Answer: All Of It) by Karl Denninger (7.3.09)

Just so you have a short list of what's at stake if Washington DC doesn't change policy here and now (which means before the collapse in equities comes, which could start as soon as today, if the indicators I watch have any validity at all. For what its worth, those indicators are painting a picture of the Apocalypse that I simply can't believe, and they're showing it as an imminent event - like perhaps today imminent.)

* All pension funds, private and public, are done. If you are receiving one, you won't be. If you think you will in the future, you won't be. PBGC will fail as well. Pension funds will be forced to start eating their "seed corn" within the next 12 months and once that begins there is no way to recover.
* All annuities will be defaulted to the state insurance protection (if any) on them. The state insurance funds will be bankrupted and unable to be replenished. Essentially, all annuities are toast. Expect zero, be ecstatic if you do better. All insurance companies with material exposure to these obligations will go bankrupt, without exception. Some of these firms are dangerously close to this happening right here and now; the rest will die within the next 6-12 months. If you have other insured interests with these firms, be prepared to pay a LOT more with a new company that can't earn anything off investments, and if you have a claim in process at the time it happens, it won't get paid. The probability of you getting "boned" on any transaction with an insurance company is extremely high - I rate this risk in excess of 90%.
* The FDIC will be unable to cover bank failure obligations. They will attempt to do more of what they're doing now (raising insurance rates and doing special assessments) but will fail; the current path has no chance of success. Congress will backstop them (because they must lest shotguns come out) with disastrous results. In short, FDIC backstops will take precedence even over Social Security and Medicare.
* Government debt costs will ramp. This warning has already been issued and is being ignored by President Obama. When (not if) it happens debt-based Federal Funding will disappear. This leads to....
* Tax receipts are cratering and will continue to. I expect total tax receipts to fall to under $1 trillion within the next 12 months. Combined with the impossibility of continued debt issue (rollover will only remain possible at the short duration Treasury has committed to over the last ten years if they cease new issue) a 66% cut in the Federal Budget will become necessary. This will require a complete repudiation of Social Security, Medicare and Medicaid, a 50% cut in the military budget and a 50% across-the-board cut in all other federal programs. That will likely get close.
* Tax-deferred accounts will be seized to fund rollovers of Treasury debt at essentially zero coupon (interest). If you have a 401k, or what's left of it, or an IRA, consider it locked up in Treasuries; it's not yours any more. Count on this happening - it is essentially a certainty.
* Any firm with debt outstanding is currently presumed dead as the street presumption is that they have lied in some way. Expect at least 20% of the S&P 500 to fail within 12 months as a consequence of the complete and total lockup of all credit markets which The Fed will be unable to unlock or backstop. This will in turn lead to....
* The unemployed will have 5-10 million in direct layoffs added within the next 12 months. Collateral damage (suppliers, customers, etc) will add at least another 5-10 million workers to that, perhaps double that many. U-3 (official unemployment rate) will go beyond 15%, U-6 (broad form) will reach 30%.
* Civil unrest will break out before the end of the year. The Military and Guard will be called up to try to stop it. They won't be able to. Big cities are at risk of becoming a free-fire death zone. If you live in one, figure out how you can get out and live somewhere else if you detect signs that yours is starting to go "feral"; witness New Orleans after Katrina for how fast, and how bad, it can get.

The good news is that this process will clear The Bezzle out of the system.

The bad news is that you won't have a job, pension, annuity, Social Security, Medicare, Medicaid and, quite possibly, your life.

It really is that bleak folks, and it all goes back to Washington DC being unwilling to lock up the crooks, putting the market in the role it has always played - that of truth-finder, no matter how destructive that process is.

Only immediate action from Washington DC, taking the market's place, can stop this, and as I get ready to hit "send" I see the market rolling over again, now down more than 3% and flashing "crash imminent" warnings. You may be reading this too late for it to matter.

Anonymous said...

No frills in Denninger's account, no specious arguments. Just plain facts. An honest American, for once.

Anonymous said...

"Today's unparalleled expansion of federal debt and obligations is being dressed up as textbook "Keynesian". It's rather obvious that we are in dire need of some new books, curricula and economic doctrines. But from a political perspective, the word is appropriate enough. From an analytical framework perspective such policymaking is more accurately labeled "inflationism" - a desperate attempt to prop inflated asset prices, incomes, business revenues, government receipts, and economic "output". There have been many comparable sordid episodes throughout history, and I am not aware of any positive outcomes." Doug Noland, Asia Times

Anonymous said...

Despite U.S. woes, dollar is still riding high

By Peter S. Goodman Published: March 9, 2009

NEW YORK: As the world seizes with anxiety in the face of a spreading financial crisis, the one country having a considerably easier time attracting money is the same country that started much of the trouble: the United States.

American investors are bringing their dollars home, entrusting them to the supposed bedrock safety of U.S. government bonds. China continues to buy staggering quantities of American debt. These purchases are lifting the value of the dollar and providing the administration of President Barack Obama with an infusion as it directs trillions of dollars toward rescuing banks and stimulating the economy, enabling the government to pay for these efforts without lifting interest rates.

And yet in a global economy beset by a lack of confidence and capital, with lending and investment dysfunctional from Milan to Manila, the tilt of money toward the United States appears to be exacerbating the crisis elsewhere.

The pursuit of capital suddenly seems like a zero sum game. A dollar invested by foreign central banks and investors in U.S. government bonds is a dollar that is not available to Eastern European countries desperately seeking to refinance crippling debts. It is a dollar that cannot reach Africa, where many countries are struggling with the loss of aid and foreign investment.

"Virtually all of the low-income countries are in very serious trouble," said Eswar Prasad, a former official at the International Monetary Fund and a senior fellow at the Brookings Institution in Washington. "This is the third wave of the financial crisis. Low-income countries are getting hit very hard. The flow of private capital to the emerging market has dried up."

Private money invested in so-called emerging countries plunged from $928 billion in 2007 to $466 billion last year and is likely to fall to $165 billion this year, according to the Institute of International Finance.

Not that the United States is enjoying a great influx. Globally, investors are holding tight to cash and extracting it as quickly as they can from risky ventures. In the United States, investments by foreigners have slowed markedly. But as Americans eschew foreign deals and keep their dollars at home, and as foreign central banks - especially China -purchase Treasury bills, the United States is absorbing money that used to be scattered around the globe. And that is making money tighter elsewhere in the world.

The most immediate crisis appears in Eastern Europe, where investors borrowed exuberantly in foreign currencies, using those funds to construct office towers and factories. With their currencies now plummeting, those debts are growing, leading to bank losses and requiring government bailouts along with aid from the International Monetary Fund.

Economists liken this episode to the financial crisis that assaulted much of Asia in the late 1990s. After a surge of borrowing in foreign currencies, a reversal of investment beggared local currencies, particularly in Thailand and Indonesia, setting off a wave of defaults and sowing unemployment and poverty.

"Eastern Europe looks incredibly similar to Asia in the 1990s," said Brad Setser, an economist at the Council on Foreign Relations in New York.

In one main regard, this crisis is more problematic: Back in the 1990s, the rest of the global economy was growing vigorously. Once danger abated, Asian countries were able to resume growth by selling their wares to the United States, Europe, Japan and China. Indeed, the very plunge in currencies that precipitated the crisis also provided a fix, making Thai, Malaysian, Indonesian and Korean goods that much more affordable on world markets.

This time, as many low-income countries again see their currencies fall, they are confronting a world beset by recession, in which demand for their products is weak and falling.

"Depreciation isn't enough now to offset the global contraction," Setser said, noting that export powers like Japan, Korea, Taiwan and Brazil had seen rapid declines in sales in recent months. "Everybody's looking vulnerable."

Fears are growing that a much broader group of countries will plunge into trouble. Prasad's list of potential danger zones includes Vietnam, the Philippines, Malaysia and Indonesia, as well as Pakistan and Ecuador.

In the Asian financial crisis, countries at the center of the storm were particularly vulnerable because the value of their currencies was mostly pegged to the dollar. Once central banks ran out of dollars to exchange for their own currencies at their chosen value, their currencies plummeted, turning already large debts into impossible debts.

Many more countries now allow their currencies to float with the whims of the market. Still, as economic activity slows and banks are stuck with losses, the damage could swell beyond the ability of governments to finance bailouts, said Kenneth Rogoff, a former chief economist at the International Monetary Fund and now a professor at Harvard.

Unorthodox, but still the expert, what do you think of all this, a grain of truth or utter rubbish?

Anonymous said...

Orange Fades to Black
Heralded for its Orange Revolution five years ago, Ukraine is coming apart at the seams
By Fred Weir March 6, 2009

KIEV, Ukraine--As the global financial crisis intensifies, some journalists have begun placing bets on which country is likely to crack first and dissolve into anarchy. If you're into that sort of thing, the smart money might be on Ukraine, a nation with a government that was borderline dysfunctional and an economy that was unsustainable even before the financial firestorm hit.

Ukraine's economy has gone into a nosedive, its banking system is paralyzed and millions of people have lost their livelihoods in recent months. Everyone has a story of a lost job, overdue loans or life savings frozen in inaccessible bank accounts.

One man, a laid-off Kiev construction worker, says he has sent his family to live with relatives in the countryside, assuming that at least there will be something to eat. That's a chilling echo from the depths of Ukrainian history.

But it's the political drama that keeps grabbing everyone's attention. Apparently oblivious to the galloping crisis, the former heroes of the Orange Revolution, Prime Minister Yulia Tymoshenko and President Viktor Yushchenko, are locked in a bureaucratic trench war that only one of them will survive. Any anti-crisis measure taken by one is immediately contradicted by the other: Presidential appointees are struck down by the Tymoshenko-led parliament, while regional leaders across the sprawling and deeply divided former Soviet country of 50 million increasingly take local economic matters into their own hands.

"It's a war of all against all," says Dmytro Vydrin, an independent deputy of the Supreme Rada, Ukraine's parliament. "Our best hope at this point is that chaos will win out over ill-intentions, because the worst thing will be if one group wins and establishes a monopoly of power."

Yushchenko and Tymoshenko are jockeying for position in advance of presidential elections, due by the end of 2009. Few doubt that the fiery, ambitious Tymoshenko wants to be president, and many believe she has the makings of a Ukrainian version of Russia's tough leader, Vladimir Putin.

"Tymoshenko is the only Ukrainian leader with real charisma, and the drive to take and mold power for her own purposes," says Viktor Nebozhenko, a sociologist and former adviser to Tymoshenko. "She's very strong, she can make people do what she wants, and she looks very likely to win."

But the showdown might come much sooner than anyone expects. Experts warn that default on Ukraine's $105 billion foreign debt is imminent, despite an emergency loan of $16.4 billion obtained from the International Monetary Fund last autumn.

The national currency, the Gryvna, has lost 50 percent of its value since last summer, driving up the cost of imports and rapidly inflating the U.S. dollar-denoted debts held by most Ukrainian companies.

As a result of January's gas accord with Russia, Ukraine's energy-intensive economy will now have to pay $360 per thousand cubic meters of gas, roughly double last year's price. The vast eastern Ukrainian steel and chemical mills that account for a third of the country's GDP are reporting massive slowdowns, and many of these Soviet-era industries may not survive the shock of increased energy costs.

About 1 million of Ukraine's 20 million workers are currently unemployed, but millions more have reportedly been forced to take wage cuts, shorter hours or unpaid leave. Many experts are predicting mass social protests will erupt in coming months as the situation grows intolerable.

In a 24-page internal memo leaked to the Ukrainian media, Finance Minister Viktor Pynzenyk warned in late January that Ukraine's economy is on the verge of collapse: "We have entered an extremely serious and deep crisis. Ukraine's economic situation is the worst in the world."

Publication of that sobering assessment served only to intensify the mutual death-grip between the president and prime minister. Yushchenko took to the airwaves in late January to blame it all on the "populism" of Tymoshenko, whose 2009 budget incurs a huge deficit to pay public sector wages, pensions and other social obligations. As a result of her "irresponsibility," Yushchenko charged, "salaries, pensions and stipends will no longer be paid ... all this can bring about a social catastrophe."

Tymoshenko snapped back the next day: "The so-called televised address to the nation of Yushchenko is a mixture of falsehood, panic and hysteria. Everyone can see that the president is not the kind of leader they need when Ukraine is reeling under the blows of the global economic crisis."

Cultural split
It wasn't always like this. During the Orange Revolution in 2004, Tymoshenko and Yushchenko worked together to defeat a Russian-backed attempt to rig presidential elections in favor of the eastern-Ukraine based leader Viktor Yanukovych.

During weeks of protests in Kiev's freezing main square, it was usually Tymoshenko, a passionate orator, who would warm up the crowd before turning the stage over to the more measured and cerebral Yushchenko. But following Yushchenko's election as president, the two quickly fell out, and within a year Yushchenko dismissed her from the prime minister's job.

In three parliamentary elections since then, Tymoshenko has clawed her way back to power mainly by wresting votes away from Yushchenko's supporters. She now heads the government as leader of a fragile majority coalition.

Some observers fear that Ukraine may be facing its "1993 moment," a reference to the extended post-Soviet battle between Russia's left-wing parliament and Western-backed President Boris Yeltsin, which ended with pro-Kremlin troops and tanks dispersing the legislature amid a bloody mini-civil war in Moscow. Yeltsin used his victory to rewrite Russia's constitution to vest the lion's share of power in the Kremlin, and reducing the new parliament, the Duma, to little more than a talking-shop.

Yeltsin's successor, Putin, was subsequently able to establish a virtual dictatorship in Russia without--until recently--altering a single word of that constitution.

By contrast, Ukraine has muddled through its repeated post-Soviet crises with a working division of powers between parliament and president--both elected in genuinely contested polls--and a relatively independent court system. This is partly due to the country's profound cultural split between the heavily "Russified" industrial east and the nationalistic, Ukrainian-speaking agrarian west.

The relative balance of forces between them has created permanent political gridlock, but arguably prevented either side from seizing complete control. An attempt to rig 2004 presidential elections in favor of Yanukovych led to the Orange Revolution, which ultimately brought the Western-leaning Yushchenko to power, pledging to put Ukraine on a fast-track to join NATO and integrate with Europe.

But public opinion surveys show that about two-thirds of Ukrainians oppose joining NATO, and Moscow has warned that Kiev will cross a "red line" if it invites the Western military alliance into the heartland of the former Soviet Union.

Mounting unrest
The ongoing popularity of Yanukovych's pro-Moscow Party of Regions illustrates the hold Russia still has on much of Ukraine's electorate. According to a December poll by the Kiev-based Democratic Initiatives Foundation, Yanukovych is Ukraine's leading politician, with 22.3 percent support. Tymoshenko follows with 14 percent, while Yushchenko has fallen to just 2.2 percent.

In January, Tymoshenko flew to Moscow and sealed a gas accord with Putin, ending a two-week shutdown that had left 18 European nations--literally--out in the cold. But Tymoshenko's enemies claim that, during several hours of private talks with Putin, she made a separate deal for Kremlin support in her upcoming presidential bid, allegedly agreeing to shelve Ukraine's NATO aspirations in return for help in winning votes in eastern Ukraine.

That's presumably what Yushchenko's chief of staff, Roman Bezsmertny, was referring to when he told journalists: "Yulia Tymoshenko's current policies show that she is hooked by Russian secret services, which makes her resort to actions that threaten Ukraine's national security."

Vadim Karasyov, director of the independent Global Strategies Institute in Kiev, says, "Yulia understands that the United States is very far away and preoccupied with its own problems, and Russia is very close at hand. She's just being practical."

As the crisis intensifies, it seems increasingly likely that the final showdown may come as early as this spring, and it may not take the form of an electoral contest. Social unrest is mounting, especially in the eastern industrial regions, where the steel mills, chemical factories and coal mines that produce 30 percent of Ukraine's gross domestic product are grinding to a halt.

But discontent is also palpable among the middle class in Kiev--erstwhile ardent backers of the Orange Revolution--who are suddenly finding that the ATM machines have stopped dispensing cash, the service sector jobs are evaporating and the West has lost interest in Ukraine's fate.

"Middle class disillusionment is extremely dangerous, because these are the people most capable of self-organization," says sociologist Nebozhenko. "Things are coming apart very fast, and I'm afraid this is all headed for a settlement in the streets."‚ÄÉ

Anonymous said...

March 8, 2009

Putin’s New Economic Order

Brigadier General Greg Zanetti

“We hate you guys.” Luo Ping, Director-General at the China Banking Regulatory Commission, commenting on U.S. stimulus packages that could debase the dollar.

“For every action there is an equal and opposite reaction.” – Sir Isaac Newton

President Obama laid out his economic stimulus package and budget last week and the response has been underwhelming. The stock market is trading at 1996 levels, confidence is slipping, and the “D” word (Depression) is now openly being bandied about.

The bigger story, however, may be foreign reaction to American policy…and the fact that we may be playing right into our foes’ trap.

You see, earlier this year at the World Economic Forum in Davos, Switzerland, Vladimir Putin sketched out a new world economic order that links Berlin-Moscow-Beijing-Riyadh-and- Tokyo. He proposed that these five countries unite their currencies in a basket to supplant the U.S. dollar as the world’s currency of choice.

Putin then went on to mock Wall Street and the Western Central banks saying that the U.S. and Britain had lost the mantle of leadership in the wake of the current global economic and financial meltdown. In Putin’s alternative plan, the dollar would be relegated to minor-currency status and a brand-new exchange platform based on barter and counter-trade would be implemented.

He proposed that this European-Asian-OPEC alliance bypass Central Banks and the United States all together. Instead of working through banks as intermediaries, the alliance would work government-to-government instead.

In the words of analyst CB Willie:

The overriding theme of the Putin plan is a new multi-polar world, where power is shared and no longer concentrated in a dangerous fashion. Putin was as specific as required for a blueprint, which typically does not need to go into great detail. It requires a new structure. When an entire system is shattered, one needs a foundation with large structural descriptions as planks….Putin openly questioned the reliability of the US Dollar as a global reserve currency. He all but said it is dead in the water for that role. He called the one reserve currency a danger to the world economy… Putin warned that unbridled growth of (US) budget deficits and public debts is destructive.

Make no mistake about what the Russian was saying…Vladimir Putin is openly proposing the financial takedown of the United States.

The reasoning is simple. If demand for dollars falls (because there is an accepted substitute for our currency), while the supply of dollars rises (as we try to “accelerate and stimulate” our way out of our economic woes), then the dollar will fall precipitously in value.

The result will be dramatically higher prices here in the U.S. and the abrupt shift of global economic power from west to east.

As an aside, it is interesting that Putin chose obliquely to lecture us on our debt… just as President Obama was putting the finishing touches on a budget with a $1.75 trillion deficit.

The U.S. response is a risky one. If the stimulus package works and the U.S. economy (along with the banking system) can recover, then there is a strong chance that the world will continue with “the devil it knows” vs. “the devil it doesn’t” and the Putin blueprint will be rejected.

If, however, the economic crisis deepens and confidence in U.S. leadership begins to falter, then the world may adopt a “why not give a try” mentality that Putin is so eager to take advantage of.

This may be why Secretary of State Clinton was recently dispatched to China. I am speculating that the purpose of her trip was to strengthen U.S. and Chinese ties in order to thwart Putin’s proposal.

Meanwhile, Putin is countering by traveling throughout Europe, China and the Middle East and putting details to the broad strokes he laid out at Davos. In short, the details are as follows (again according to Willie):

Get real and declare hopeless debt securities as bad assets, and write them off. The current crisis will only be prolonged unless the balance sheets are cleaned up. A liquidation process is essential.
Get rid of virtual money, exaggerated reports, and dubious credit ratings on financial securities. (He refers indirectly to credit derivatives and futures contracts, the artificial mechanisms to control price structures, those onerous devices that act as pseudo-money.)
Get away from the single reserve currency system, which he regards as dangerous. Instead, install several strong reserve currencies in a smooth and irreversible switch. (This is the unofficial death knell of the US Dollar itself, for alternatives in usage.)
Get currency reliability for foreign reserves management, which can be used by other states. This can be achieved by enabling more open monetary policies, and enforcing economic and financial discipline. (This will enable regional stability and cooperation.)
It all seems so reasonable.

Plus, there is one more piece to this that again hits at a U.S. weakness…energy. You see, Putin also proposed a new energy framework to possibly serve as the foundation for a new financial structure.

After roundly criticizing the SEC and other western regulatory agencies for allowing the current crisis to occur, Putin proposed that “hard assets and natural resources (must) supplant the corrupt networks that control price systems in the current broken apparatuses.”

Of course this plays to the Russian strength of being an energy- exporter and a natural-resource based economy.

Now some believe that this is just Putin pontificating again and that he has too many woes at home to bother with a new economic order. However, just last month, China and Russia entered into a bilateral agreement whereby China loaned Russian $25 billion in exchange for a 20-year supply of energy. Bilateral agreements between Russian and Germany (that by-pass the US and the dollar) are also rumored to be in the works. These deals look like the test bed for Putin’s new economic order.

So how does this affect you and how does it affect State policy?

As an individual, realize that financial warfare has been engaged and the dollar is under attack. If the dollar weakens, then inflation is in our future. That means you must take positions in investments that can’t be printed. Remember, Putin wants to use natural resources (real assets) as a cornerstone of thenew economic order.

As a State, New Mexico should recognize the same thing for our pension funds. Switch the emphasis away from hedge funds and “paper-y” assets that are falling by the day, and switch to low-tech investments like energy, commodities, and metals.

We should also recognize that we are an energy and natural resource rich state. Thus, we have to stop punishing our wealth-producers with over-regulation and over-taxation. In fact, I believe NM could become energy independent…even if the U.S. as a whole can’t. We, as New Mexicans, should embrace all energy sources (that includes coal, nuclear, gas, and “everything green”) and become the energy exporter to the nation. This is a subject I will go into more detail later.

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