The US Needs Global Conflicts: Russia and China Are Existential Threats to Dollar Dominance

[samsara]

@vostok

@Götterdämmerung @samsara @TaiShang , my friends, I guess this man explain far better and coherently the thesis I have been advancing...that the empire gets the West and the Rest gets the rest.

Enjoy and critique, please!


sprottmoney.com

The REAL New World Order - Jeff Nielson
April 24, 2017

Regular readers are familiar with the Old World Order : the cabal of Western oligarchs who control not only our own puppet governments, but generally dictate events to most nations around the world. The vehicle used by these oligarchs to maintain their (economic) control over Western governments to keep them meek and submissive is the One Bank .

Regular readers are also familiar with this entity. The One Bank is a banking crime syndicate. Its dimensions have been previously defined in the computer modeling of a trio of Swiss researchers. The finding of that model is that by itself this crime syndicate controls roughly 40% of the entire global economy – all of the most important sectors.

What is one of the biggest problems for the One Bank? When you are a crime syndicate which controls 40% of the global economy, it becomes hard to continue to hide in the shadows.

The solution? The oligarchs resorted to the same solution they use to cover up all of the One Bank’s mega crimes: propaganda. In this case, it was disinformation. The oligarchs went and borrowed a metaphor which already existed in the extremes of conspiracy-theory writing: “the New World Order.”

They then began spreading this disinformation on a much larger scale than any of the previous conspiracy-mongering in this area. To give the disinformation a veneer of plausibility, the oligarchs of the Old World Order even allowed themselves to be (supposedly) linked to the mythological New World Order.

What is the NWO supposed to be? According to the propagandists (inadvertent and otherwise) who promote it, it is a secret, socialist, one-world government being constructed “above” the level of our own pathetic puppet governments.

How do you hide if you are a crime syndicate which controls 40% of the global economy? Where do you hide? Inside a great, big lie.

Alert and intelligent readers should automatically dismiss this NWO as nothing but absurd propaganda. What has the OWO been doing, perpetually and ravenously? Stealing all of the wealth of the masses and piling it atop the own obscene hoards of the oligarchs.

That is not “socialism”. Socialism is “share the wealth”, not steal all of the wealth.

It has become so easy to fool most people with vacuous ideological labels. Barack Obama was frequently labeled a “socialist” by much of the brain-dead Right. What did Obama do for eight years? He stole from the bottom 80% of the U.S. population and gave to his Masters: the Top 0.01%. That is not socialism either. Just another reverse-Robin Hood, right-wing government: steal from the Poor; give to the (very, very) Rich.

There is no “new world order”. There is only the Old World Order, or at least this has been the case for many, many decades up until now.

There is great irony here. The Old World Order invented the myth of the “New World Order” to hide its raping-and-pillaging of the planet. But it is precisely this continuous and ever more rapacious plundering that has now resulted in the rise of an actual New World Order.

This NWO is not a crime syndicate of psychopaths like the Old World Order. Neither is it some totally ridiculous ideological contrivance like the (mythological) New World Order. The real New World Order that is coming into existence today is an association of necessity, led by China and Russia, to help the nations of the Rest of the World protect themselves from the psychopathic West, and the oligarchs in control of it.

Remember the demise of the Soviet Union and the end of the Cold War? Weren’t those happy times? The “evil” Soviets had been defeated, and now we were all going to live happily ever after. China and even Russia were wooed by the West – old enemies becoming new friends.

However, when the oligarchs of the One Bank learned that Russia and China had no intentions of serving the West (i.e. the Old World Order), this new friendship quickly deteriorated. The next thing we knew, the Corporate media in the West were back to Cold War rhetoric, simply substituting “Russia” for “Soviet Union”.

Russia was first in the cross-hairs because it had never really benefitted from the new (supposed) era of cooperation between East and West. Put another way, the oligarchs had invested nothing in their faux friendship with Russia. Meanwhile, their puppets in the Corrupt West had already begun targeting nations allied to Russia.

One of the ways these puppet governments have been covering up their own campaign of naked aggression is through fabricating a massive blanket of propaganda. Every act of naked aggression by the West was supposedly a “reaction” by these fascist governments to supposed aggression from Russia’s allies or even Russia itself -- or else “the terrorists” (the West’s mercenary henchmen ).

It culminated when the U.S. staged a coup in Ukraine, Russia’s closest neighbour and ally. The coup was justified according to the West because the regime previously in power was corrupt. There are two obvious rebuttals to that pathetically flimsy argument.

1. There was already an election scheduled in Ukraine in less than six months. Are the Champions of Democracy (what the Corrupt West likes to call itself) telling us that a coup d’etat is better than simply waiting for an election?
2. If “corruption” was reason enough to stage a revolution, there would already be revolutions-in-progress all over the West itself.

After the U.S. staged that coup, demonization of Russia dramatically escalated, along with the military campaign against Syria – another Russian ally. Economic terrorism was launched against Russia’s economy. The ruble was ruthlessly attacked by the convicted currency manipulators of the One Bank. Oil prices were manipulated dramatically lower, with Barack Obama publicly boasting that this manipulation was “a part of the U.S. strategy” against Russia.

Soon, even China was targeted. China had outlived its usefulness as a (low wage) jurisdiction for Western multinational corporations. The Chinese people now wanted to be paid decent wages, so the oligarchs had already begun to shift their corporate operations to other even lower-wage jurisdictions.

The excuse for (once again) referring to China as an enemy was/is the South China Sea. While the West flexes its muscles by dropping bombs on the heads of people in Africa and Asia, the Western media has been relentlessly demonizing China for building artificial islands in essentially unoccupied waters.

Building islands or dropping bombs? Which is the more deplorable international crime? According to Western media, it is (conveniently) the “crime” of building islands.

This renewed aggression against Russia and China by the West did not spawn the Rest of the World’s “New World Order”. Instead, this aggression is the belated realization by the West’s psychopathic oligarchs of the existence of this new, world order. While the oligarchs have been busy destroying everything in sight, China and Russia were attempting to build something.

Here China has taken the lead with its Belt and Road Initiative . Loosely based upon China’s ancient “Silk Road”, it is the world’s largest project in terms of infrastructure and economic cooperation, even larger than the Marshall Plan at the end of World War II.

The Marshall Plan was an enormously successful initiative where the oligarchs actually worked on fixing all of the damage and destruction they had engineered after manufacturing World War II. In contrast, the Belt and Road Initiative is a plan to economically fortify (first) Asia and (then) the Rest of the World against the Corrupt West.

Along with this, China and Russia have constructed “parallel” economic institutions which now exist side-by-side with similar Western-based institutions. The great joke here is that while China and Russia have publicly spoken of these institutions existing in conjunction with their (corrupted) versions in the West, the oligarchs can clearly see that they are intended to replace Western-based institutions.

With which institutions would the Rest of the World prefer to do business: entities rancid with corruption like the World Bank and the IMF, or an honest broker like the Asia Development Bank?

Constant economic predation. Ever more reckless military acts from ever more-desperate regimes. The psychopathic empire of the One Bank has simply become so intolerable and so dangerous that the Rest of the World is being forced to unite as a mechanism of self-preservation.

This is the New World Order – the real one.

It really is “new”. It really does involve the “world” (except for the Corrupt West). And it really could/should lead to “order”, not the ever-worsening chaos as the One Bank regularly orders its puppet governments to destroy any nation that gets in its way.

What the New World Order is not is any sort of one-world government. What the New World Order is not is some (supposed) “socialist utopia”.

The new, world order being crafted by China and Russia is non-ideological. It is non-controlling. Another great irony here is that as Western regimes have gotten increasingly corrupt, belligerent, and simply evil, the Eastern powers have become relatively more virtuous.

Perhaps it was simply being able to observe how not to run the world (for several decades), but China and Russia have seemingly adopted the doctrine of Enlightened Self-Interest. By helping neighbouring nations and acting as honest brokers in the global community, China and Russia see the surest path to their own prosperity and security.

Another thing that the New World Order is not is perfect. As global powers, China and Russia do not resemble White Knights, merely the lessers-of-evil – much less evil. The New World Order coming into existence today is not some ideologically based pipe-dream. It is a construct of pragmatism, designed to help nations co-exist and (hopefully) prosper. In time, perhaps it will replace the United Nations – another corrupted Western institution.

The real NWO will succeed as the new “order” in the world because the Old World Order has succeeded in making itself obsolete.

Jeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers and investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but with a background in economics and law, he soon decided this was where he wanted to make the focus of his career. His website is www.bullionbullscanada.com.

The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.

YES, thanks @Sinopakfriend, it's a very good article, and written in succinct form, quite readable!

JEFF NIELSON is a good authoritative author in this field (I'd read several fascinating articles by him in the past), great to bring this author into the spotlight here

I'd perused this article and spotted this questionable paragraph:

"With which institutions would the Rest of the World prefer to do business: entities rancid with corruption like the World Bank and the IMF, or an honest broker like the Asia Development Bank?"​

ASIA DEVELOPMENT BANK??? Is it an erroneous reference? I think the ADB is an extension of the World Bank, with the Japan is in the driver's seat stirring its direction. I guess Mr. Nielson did mean the Asian Infrastructure Investment Bank (AIIB). Btw I'd raised this question to the author

Following are some cross-link articles contained in the article, I put here for the readers' convenience:

(1) The Old World Order
http://www.bullionbullscanada.com/i...national-commentary/26551-the-old-world-order

(2) The One Bank, Revisited - Jeff Nielson
https://www.sprottmoney.com/Blog/the-one-bank-revisited-jeff-nielson.html

(3) The Network Of Global Corporate Control by Stefania Vitali, James B. Glattfelder, and Stefano Battiston
https://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf

Some more succinct expositions presented in more readable articles (summarized from above work) are available at (taken from my post above):

Revealed – the capitalist network that runs the world | New Scientist
https://www.newscientist.com/articl...d-the-capitalist-network-that-runs-the-world/

The Network of Global Corporate Control
http://tapnewswire.com/2015/07/the-network-of-global-corporate-control/​

(4) A history of the New World Order — Part I
http://www.michaeljournal.org/articles/world-government/item/a-history-of-the-new-world-order-part-i

(5) Economic Terrorism Against Russia Intensifies
http://www.bullionbullscanada.com/i...economic-terrorism-against-russia-intensifies

(6) Obama admits falling oil prices aimed at weakening Russian economy - Video Dailymotion

(7) Where Will China’s 'One Belt, One Road' Initiative Lead? - Knowledge@Wharton
http://knowledge.wharton.upenn.edu/article/can-chinas-one-belt-one-road-initiative-match-the-hype/

 

[Mangus Ortus Novem]

YES, thanks @Sinopakfriend, it's a very good article, and written in succinct form, quite readable!

JEFF NIELSON is a good authoritative author in this field (I'd read several fascinating articles by him in the past), great to bring this author into the spotlight here

I'd perused this article and spotted this questionable paragraph:

"With which institutions would the Rest of the World prefer to do business: entities rancid with corruption like the World Bank and the IMF, or an honest broker like the Asia Development Bank?"​

ASIA DEVELOPMENT BANK??? Is it an erroneous reference? I think the ADB is an extension of the World Bank, with the Japan is in the driver's seat stirring its direction. I guess Mr. Nielson did mean the Asian Infrastructure Investment Bank (AIIB). Btw I'd raised this question to the author

Following are some cross-link articles contained in the article, I put here for the readers' convenience:

(1) The Old World Order
http://www.bullionbullscanada.com/i...national-commentary/26551-the-old-world-order

(2) The One Bank, Revisited - Jeff Nielson
https://www.sprottmoney.com/Blog/the-one-bank-revisited-jeff-nielson.html

(3) The Network Of Global Corporate Control by Stefania Vitali, James B. Glattfelder, and Stefano Battiston
https://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf

Some more succinct expositions presented in more readable articles (summarized from above work) are available at (taken from my post above):

Revealed – the capitalist network that runs the world | New Scientist
https://www.newscientist.com/articl...d-the-capitalist-network-that-runs-the-world/

The Network of Global Corporate Control
http://tapnewswire.com/2015/07/the-network-of-global-corporate-control/​

(4) A history of the New World Order — Part I
http://www.michaeljournal.org/articles/world-government/item/a-history-of-the-new-world-order-part-i

(5) Economic Terrorism Against Russia Intensifies
http://www.bullionbullscanada.com/i...economic-terrorism-against-russia-intensifies

(6) Obama admits falling oil prices aimed at weakening Russian economy - Video Dailymotion

(7) Where Will China’s 'One Belt, One Road' Initiative Lead? - Knowledge@Wharton
http://knowledge.wharton.upenn.edu/article/can-chinas-one-belt-one-road-initiative-match-the-hype/

Yes, my friend, I indeed noticed the same mistake i.e. ADB. But intentionally did not correct it for obvious reasons.

The point is that there are many Western researchers and scholars who are awake to the reality of the empire. They are just helpless since the entire socio-economic-political-media-military complex is run by the loyalists of the empire.

Our dialectics, our discourse, must remain focused on the new paradigm of Win-Win cooperation.

Community of Prosperity is the Community of Peace.

I am looking forward to OBOR Summit and the annoucement of BRICS Plus.

We need to enlarge this format. In its present form only R&C are real... B & I are gone. S was there to demonstrate inclusiveness. S hold no political, diplomatic or economic weight.

If we can bring in all of the oil producing, resource exporting and growing economies into BRICS Plus fold... OBOR gets a totally new dimension.

Frankly, this is a near term goal. We all, here at PDF, must do our best to discuss and promote this idea in constructive and forward looking manner.

I am honoured to get to know a brother as educated and informed as you are!

 

[Mangus Ortus Novem]

@Jacob Martin , my dear indian friend,

Allow me to thank you for your thoughtful effort for the two parts you composed for us. LSE education/training shows!

Well, frankly, your analysis is quite in accordance to the established narrative. I can argue otherwise. Then the infernal 'debate' starts...and nobody moves forward. Counterproductive.
Besides accademic discussion are not my forte.

However, I do look forward to hear your views regarding construction of a relatively fair global system which can lessen the burden on the developing world. As if more humanises them..anything which can advance Human Condition has my support.

Looking forward to your studied and analytical input. Herein, you shall find me fully engaged with best of my ability. This is Constructive.

Regards,

SPF

 

[Solomon2]

Whoever controls the issuance of money controls everything. Fiat Rule is coming to its gradual end. Pres. Xi has floated the idea a couple times already to have new global financial architecture that reflects the emerging reality. Would be better for humanity to have multiple reserve currencies...herein lies the true new beginning of win-win paradigm and end of 500+ years of global empire.

I don't know what it is but monetary policy isn't a strength I associate with the Chinese people. I'll try to make it simple.

Reserve currencies are, by definition, currencies that countries are willing to hold, rather than spend on current accounts. To replace the dollar as the reserve king you have to give people the reason to hold something else. So you have to ask why people hold dollars as reserves in the first place. (Remember, simply because a currency is useful to pay for goods or services isn't much of an incentive to hold it as a reserve.)

The answer is, because holding dollars makes sense. The purchasing power of the USD, mostly controlled by the semi-independent Federal Reserve, decays more slowly than many other currencies, so citizens of those countries may choose dollars. U.S. industry and government raise billions of dollars of capital by issuing bonds - both at home and abroad - and have an excellent record of making good on these debts. And since most assets in the U.S. - real estate, stocks, and entire companies - are open for foreigners to buy and hold, and the U.S. is a desirable place to live and invest, there's always going to be something you can pay for with your dollars.

Except for the first, these are all things that, in one way or another, compromise U.S. national sovereignty. It's difficult to see how a president or Congress could stop everything cold overnight and seize foreigners dollars, or for a U.S. company to re-neg on bond debts. There are too many rights that dollar holders have, both Constitutional and institutional.

That's why Russia and China, even together, can't currently use their own currencies to displace the dollar: they aren't willing to give foreigners the kind of power and leverage that the U.S. does. And while gold is fine as a reserve, returning a major function to gold will put a quick brake on global growth, as economic expansion is then directly linked to expansion of gold reserves via mining, which is only, what, one half of one percent a year or so. The immediate effect would be a global recession.

 

[Mangus Ortus Novem]

I don't know what it is but monetary policy isn't a strength I associate with the Chinese people. I'll try to make it simple.

Reserve currencies are, by definition, currencies that countries are willing to hold, rather than spend on current accounts. To replace the dollar as the reserve king you have to give people the reason to hold something else. So you have to ask why people hold dollars as reserves in the first place. (Remember, simply because a currency is useful to pay for goods or services isn't much of an incentive to hold it as a reserve.)

The answer is, because holding dollars makes sense. The purchasing power of the USD, mostly controlled by the semi-independent Federal Reserve, decays more slowly than many other currencies, so citizens of those countries may choose dollars. U.S. industry and government raise billions of dollars of capital by issuing bonds - both at home and abroad - and have an excellent record of making good on these debts. And since most assets in the U.S. - real estate, stocks, and entire companies - are open for foreigners to buy and hold, and the U.S. is a desirable place to live and invest, there's always going to be something you can pay for with your dollars.

Except for the first, these are all things that, in one way or another, compromise U.S. national sovereignty. It's difficult to see how a president or Congress could stop everything cold overnight and seize foreigners dollars, or for a U.S. company to re-neg on bond debts. There are too many rights that dollar holders have, both Constitutional and institutional.

That's why Russia and China, even together, can't currently use their own currencies to displace the dollar: they aren't willing to give foreigners the kind of power and leverage that the U.S. does. And while gold is fine as a reserve, returning a major function to gold will put a quick brake on global growth, as economic expansion is then directly linked to expansion of gold reserves via mining, which is only, what, one half of one percent a year or so. The immediate effect would be a global recession.

My friend,

Thank you for your kind effort. Your points are valid in the current system. Hence no replacement has happened. Even by Eurozone which has bigger GDP than the US.

No I am NOT talking or advocating the dethroning of dollar...rather a multipolar world of economic, financial balancing. Dollar can keep its perch along with Yuan. Euro and Yen also, of course.

This will limit the US to finance wars, which is a good thing for Americans as well. For the last 40 years you have been votting for less/no wars and have been getting more wars. Cuo bono?

I count among my friends many Americans and have worked with the Yanks... they are the salt of the Earth like many good people from other nations. So that part should bear no doubt.

Just look internally... what do you see? Look at the purchasing power of your legendary middle class... the Wall Street cares not for any one of us... be it trueblood Americans or the rest of Humanity.

So, no.

What do you think could be a fair or less unequal system that we can all create?

Looking forward to your views.

Regards,

SPF

 

[Solomon2]

What do you think could be a fair or less unequal system that we can all create?

"Fair or less unequal system" is not always something useful. During a period of hyperinflation in pre-revolutionary France one baronness chose to preserve her wealth by purchasing thousands of candles. That was a "fair or less unequal system" but a very unwieldy one - and it drove up the prices of candles further, adding to existing problems.

The fairness issue other countries have with the U.S. boils down to seignorage: essentially, the U.S. can, to a larger extent than other countries, create purchasing power with its own printing presses, whereas other countries have to balance their budgets more strictly because ultimately everything is accounted in dollars. Yet the U.S. doing so while preserving purchasing power (letting it decay slowly, anyway) means that such funds, applied to capital investment, are the foundation of global economic growth, while the Fed's mandate of maximum employment assures foreigners the U.S. will retain a functioning economy in the long term.

It's also unfair to some Americans - that is, unequal - since, as you've noted, it's America's working but non-owning class that pays a price for this, for without such "free money" floating around their own efforts would be more highly valued and rewarded: jobs they otherwise would hold go overseas. Thus America has become more of a service economy and less of a manufacturing economy over the past four decades or so.

I don't think there's any quick solution ordinary citizens can implement to these issues.

A useful step has been the opening of more commodity markets that trade in major non-dollar currencies. But the truly necessary steps are for other major countries to open up their economies and properties to foreign ownership and become accepted as reliable re-payers of debts, and that's going to be much more difficult, because the leftist-inspired will see shadows of "Western" colonialism or "evil" capitalism everywhere. Once that happens, people will want to hold more non-dollar financial instruments, and the dollar will decline as the dominant reserve naturally.

 

[Jacob Martin]

@Jacob Martin , my dear indian friend,

Allow me to thank you for your thoughtful effort for the two parts you composed for us. LSE education/training shows!

Well, frankly, your analysis is quite in accordance to the established narrative. I can argue otherwise. Then the infernal 'debate' starts...and nobody moves forward. Counterproductive.
Besides accademic discussion are not my forte.

However, I do look forward to hear your views regarding construction of a relatively fair global system which can lessen the burden on the developing world. As if more humanises them..anything which can advance Human Condition has my support.

Looking forward to your studied and analytical input. Herein, you shall find me fully engaged with best of my ability. This is Constructive.

Regards,

SPF

Reforming the world financial system is a tall order. I cannot even comprehend all aspects of it. However, there are a few obvious points that everyone can understand. To start with -

1) Protection of deposits from speculation : most individual depositors are clueless about how banking works, and have a trust-based relationship with their bank. Banks should not be allowed to speculate with their depositors' money, which fractional reserve banking allows. There are many possible ways - one of them being to prohibit commercial banks from engaging in investment banking. The Glass Steagall Act in the US was meant to do exactly that.

2) Strict control over what kinds of instruments can be sold by banks. The 2008 crisis was partly caused due to subprime mortgages. Housing loans were given to ineligible persons with full knowledge that these loans would not be repaid. Why this was done was because the loans given are reflected as assets in the books for the banks, which are then sold to third parties or even the banks themselves may use these as the underlying asset to create all kinds of toxic derivatives to sell. This makes the crisis of fictional money that we are talking about much more serious. To give an idea of the scope of the problem - in 2015, the total value of derivatives was $1.5 quadrillion, compared to the world's total GDP of $80 trillion or so. This is a ticking time bomb.

3) Allow more informal banking access to poor people in developing countries. Countries like India and China have people who either cannot afford formal banking or view it with suspicion. The Indian government went about it in a very wrong way with demonetization, treating its own citizens as criminals. As you rightly said, this simply plays into the hands of the Western financial system with no commensurate returns for us.

At least in China, the rate of technology adoption is much higher, so people have begun using electronic money transfer and by-pass normal banks, which is a good thing. In India, while that should be encouraged as well, we must also allow more rural and cooperative banks, and regulated micro-finance. The Grameen Bank model in Bangladesh is a success story in this area which can be replicated in many developing countries.

What cannot be allowed is to have banks and payment gateways like Visa and MasterCard control the entire e-payment domain. They will this control our lives.

4) Flowing from the above, encouraging and sensibly regulating block chain based cryptocurrencies such as Bitcoin is the way forward. I think cryptocurrencies will dominate the future and whoever understands this game will control the game going forward. So everyone should be equally invested in this so that no one country or group of corporations can hijack cryptocurrencies.

These are just some of my ideas on the subject. One cannot be too exhaustive about it.

 

[Mangus Ortus Novem]

@Solomon2 , @Jacob Martin allow me yet again to thank you for your sincere efforts of forwarding your views.

Thoughtful and well put from your own perspectives. This is how it ought to be. It brings our dialectics forward. Good thing!


Solomon, what you say benefits whom? That was my question. Cuo bono?
The dollars in the foreign reserves have no other value than balance of payment...exporting countries actually buy Dollar inflation...unless these countries quickly recycle these dollar holdings via development programs or tangible assets purchase...these countries are holding paper... everyone is literary passing the buck!

The fully open economic structure that you are asking is not there because the country like China rightfully had to protect their citizens from market speculations and economic/financial warfare. It is welknown fact.

Let us not forget how Thai Bath went down and who benefited from it. Had no economic reasons...pure hedge fund attacks.. all South East Asia suffered. At that time, China took a hit and didn't devalue Yuan...thus bailing out the South East Asia. Just to give you an example.

Look at Loincoln and Grant.. look at that period of your economic history. A period known as National Economic System. Please, also see how you came to be the richest nation in history.

That should form the framework for you to see whether such an American system can benefit Americans again. Kind of truly make America Great Again. No pun intended.

I make a clear distinction between American citizens and the empire. Dollar System is not per se to the benefit of Americans rather for the empire's elite and supporting strucutre. If you go back to the 70s and come back to date, please, see what is the purchasing power of Dollar now...

Would like to know your views on that. I know you will come back fighting. Good thing!



Jacob, Saul on the way to Damascus...

Ideas need a framework, an overall concept.

From general to specific, from simple to complex...

I would like you to struggle with the idea first... solutions are too many... what needs to be underlying Principle?

Regarding deriviates... it is criminal. I would go as far as saying it is Crime Against Humanity... just stand still for a moment and SEE the implications.

Worlds's GDP to debt ratio is instructive... Who owns this debt? Your well researched answer is awaited.

How can financial industry's instruements be relevant to real productivity. What value does it add?

What would happen if all these 'assets' are revomed from the books? Would the real GDP collapse...why/how.

You know, I truly felt sad and dejected by this demonetisation. I have nothing against india or indians...this one policy is worse than 100 famines... in the coming time you will see how in the name of economic growth the dispossessed will become totally possessionless.

Tragedy that was not necessary. As most human tragedies this one is also man made.

PS. On certain indian policies you will find me objecting. But that is the scope of my resistence. Nothing beyond..

 

[Jlaw]

BOOKS - SONG Hongbing 宋鸿兵: Currency Wars (货币战争 | 貨幣戰爭) 1, 2, 3, 4, 5...

And for those readers here who are fluent to read in Chinese characters, I'll suggest them to purchase the hard copies and read into these books authored by SONG Hongbing 宋鸿兵 (just copy & paste from own archive)

The author: Song Hongbing 宋鸿兵​

Currency Wars (simplified Chinese: 货币战争; traditional Chinese: 貨幣戰爭; pinyin: Huòbì zhànzhēng) by Song Hongbing 宋鸿兵, also known as The Currency War, is a bestselling book in China, and is reportedly being read by many senior level government and business leaders in China. Originally published in 2007 the book gained a resurgence in 2009 and is seen as a prominent exponent of a recently emerged genre labeled "economic nationalist" literature. The premise of this book is that Western countries are ultimately controlled by a group of private banks, which, according to the book, runs their central banks. This book uses the claim that the Federal Reserve is a private body to support its role. The book's author correctly predicted a banking crisis in the US in 2008. More than one million copies of this book have been sold.

In July 2009, the book was followed by a sequel, Currency Wars 2: World of Gold Privilege 《货币战争2：金权天下》, published by China Industry and Commerce Publishing House (ISBN 978-9573265214), which The Financial Times reported as being one of the most popular books in China by late 2009. More than two million copies have been sold. In this book, Song predicted that by 2024, the world's single currency system will mature.

In May 2011, Currency Wars 3: Financial High Frontier 《货币战争3：金融高边疆》, a second sequel was published by Yuan-Liou Publishing (ISBN 978-9573267843). It discuss more specifically the modern Chinese History (from Chiang Kai-shek to the depreciation in the long term trend of U.S. dollar) seen from a Currency War perspective. It pushes towards an isolationist financial policy.

According to the book, the western countries in general and the US in particular are controlled by a clique of international bankers, which use currency manipulation (hence the title) to gain wealth by first loaning money in USD to developing nations and then shorting their currency. The Japanese Lost decade, the 1997 Asian Financial Crisis, the Latin American financial crisis and others are attributed to this cause. It also claims that the Rothschild Family has the wealth of 5 trillion dollars whereas Bill Gates only has 40 billion dollars.

Song also is of the opinion that the famous U.S. central bank, the Federal Reserve, is not a department of state functions, but several private banks operated by the private sector, and that these private banks are loyal to the ubiquitous Rothschild family.

On June 4, 1963, President Kennedy signed an executive order, which, as an amendment to Executive Order 10289, delegated the authority to issue silver certificates (notes convertible to silver on demand) to the Secretary of the Treasury. Song says the direct consequence was that the Federal Reserve lost its monopoly to control money. But it never happened. JFK went busted!

The book looks back at history and argues that fiat currency itself is a conspiracy; it sees in the abolition of representative currency and the installment of fiat currency a struggle between the "banking clique" and the governments of the western nations, ending in the victory of the former. It advises the Chinese government to keep a vigilant eye on China's currency and instate a representative currency. The book, published in 2007, also correctly described and warned of the various forms of derivative speculation used by Wall Street which eventually became the causes of massive margin call sell offs and stock market crash in late 2008.

-----------

#1: Currency Wars [2007]
#2: Currency Wars II [2009]
#3: Currency Wars III [2011]
...

Author: Song Hongbing 宋鸿兵

In 2007, one of China's best-selling books (sold over one million copies) was
Song's Currency Wars ("Huo Bi Zhan Zheng"), a screed about a world-domination plot
by international bankers who were about to make China their next target.
In this year's sequel, Currency Wars 2, Song describes a cabal of financiers
who plan to introduce a single world currency to replace the dollar.

After some considerable hassle with the Google Translation Toolkit,
here's a clumsy - but quite readable - English translation of
Currency Wars (aka. The Currency War, or "Huo Bi Zhan Zheng" 货币战争 in Chinese.
Formatting is preserved in the HTML, but some of the chapter links are broken.
First published in 2007, before the 2008 Financial Crisis, the collapse of Lehman Brothers.

Song Hongbing introduces the 17 Int'l Banking Families he believes are pulling the strings of global finance, and directing the course of world history:

• (01) The ROTHSCHILD familiy: the ‘godfathers’ of international finance, whose influence spans 200 years
• (02) The BLEICHRODER family: the trusted advisor of Germany’s Iron Chancellor Bismark
• (03) The OPPENHEIM family: from Cologne in Germany
• (04) The WARBURG family: from Hamburg in Germany
• (05) The SELINGMAN family: originally from Bavaria in Germany but finding success on Wall Street
• (06) The SCHIFF family: originally from Frankfurt, but making it big in the USA
• (07) The SCHRODER family, originally from Hamburg but finding success in London and New York
• (08) The SPEYER family, originally from Frankfurt
• (09) The MENDELSOHNS family from Berlin
• (10) The BARING family from England, who were associated with the Rothschilds in the 19th Century
• (11) The HOPE family from Amsterdam, The Netherlands
• (12) The FOULD family: advisors to the French royal family
• (13) The MALLET familily from France
• (14) The PEREIRE family from France
• (15) The MIRABAUDS family, from Switzerland
• (16) The ROCKEFELLER family from the USA
• (17) The MORGAN family from the USA

A glimpse at the book info at Amazon:

Book covers: Currency Wars (货币战争 | 貨幣戰爭) 1, 2, 3, 4, 5 authored by Song Hongbing 宋鸿兵​

NOTE: DO NOT confuse these books by Song Hongbing with the one of the same title in English authored by James Rickards, which was published at much later period years after the maiden release by Song!

Song Hongbing's Currency Wars Huobi Zhanzheng 货币战争----天涯在线书库 (in CN)
http://www.tianyabook.com/xiandai/huobizhanzheng/

The author, Song Hongbing’s own blog (in CN)
http://currencywar.blog.hexun.com/

Currency Wars - Wikipedia
http://en.wikipedia.org/wiki/Currency_Wars

Currency Wars by Song Hongbing « Sang's Economics Blog
http://sangecon.wordpress.com/2009/10/15/currency-wars-by-song-hongbing/

Its about time the Chinese know about the Rothschild and the banking cartel, ie. Federal reserve. As long as chinese banks and vital industry remain in the hands of the people of china, you're safe.

 

[war&peace]

Rothschild and other bankers cannot tolerate any wealth out of their claws. USA is their slave and US government is controlled by them and no president can speak against them. Anyone who speaks against gets killed e.g. JFK.

China has accumulated an enormous amount of wealth which lying out of the hands of the bankers so they will do everything to fully control it and thus USA to threaten or even impose war on China. I think Chinese leadership is well aware of this threat and taking necessary steps to secure itself through OBOR and CPEC thus making it very difficult for them.

BRICS is an insult and salt to the injury and making them tremble in their multi billion dollar mansions. These greedy people will not stop even if they have to cause WW-III as they caused first two world wars by sponsoring both sides of the war. These people are actually the real ugly and scum of this world. They are the real troublemakers and if they get defeated, the world can be a nice and peaceful place.

 

[TaiShang]

China's gold consumption up in Q1
Xinhua, April 27, 2017

China's actual gold consumption rose 14.73 percent to 304.14 tonnes in the first quarter of 2017 due to steady gold ornament sales and strong sales of gold bars, new data showed Thursday.

Thanks to strong demand around Chinese New Year, gold ornament sales rose 1.4 percent to 170.93 tonnes and gold bar sales surged 60.18 percent to 101.19 tonnes, the China Gold Association said.

The surge in gold bar sales came on the back of more people using them to hedge against risk as the public became more aware of its attributes, according to analysts.

Gold output in the first three months stood at 101.2 tonnes, down 9.29 percent from a year earlier, the association said. Endi

 

[Jacob Martin]

@Solomon2 , @Jacob Martin allow me yet again to thank you for your sincere efforts of forwarding your views.

Thoughtful and well put from your own perspectives. This is how it ought to be. It brings our dialectics forward. Good thing!


Solomon, what you say benefits whom? That was my question. Cuo bono?
The dollars in the foreign reserves have no other value than balance of payment...exporting countries actually buy Dollar inflation...unless these countries quickly recycle these dollar holdings via development programs or tangible assets purchase...these countries are holding paper... everyone is literary passing the buck!

The fully open economic structure that you are asking is not there because the country like China rightfully had to protect their citizens from market speculations and economic/financial warfare. It is welknown fact.

Let us not forget how Thai Bath went down and who benefited from it. Had no economic reasons...pure hedge fund attacks.. all South East Asia suffered. At that time, China took a hit and didn't devalue Yuan...thus bailing out the South East Asia. Just to give you an example.

Look at Loincoln and Grant.. look at that period of your economic history. A period known as National Economic System. Please, also see how you came to be the richest nation in history.

That should form the framework for you to see whether such an American system can benefit Americans again. Kind of truly make America Great Again. No pun intended.

I make a clear distinction between American citizens and the empire. Dollar System is not per se to the benefit of Americans rather for the empire's elite and supporting strucutre. If you go back to the 70s and come back to date, please, see what is the purchasing power of Dollar now...

Would like to know your views on that. I know you will come back fighting. Good thing!



Jacob, Saul on the way to Damascus...

Ideas need a framework, an overall concept.

From general to specific, from simple to complex...

I would like you to struggle with the idea first... solutions are too many... what needs to be underlying Principle?

Regarding deriviates... it is criminal. I would go as far as saying it is Crime Against Humanity... just stand still for a moment and SEE the implications.

Worlds's GDP to debt ratio is instructive... Who owns this debt? Your well researched answer is awaited.

How can financial industry's instruements be relevant to real productivity. What value does it add?

What would happen if all these 'assets' are revomed from the books? Would the real GDP collapse...why/how.

You know, I truly felt sad and dejected by this demonetisation. I have nothing against india or indians...this one policy is worse than 100 famines... in the coming time you will see how in the name of economic growth the dispossessed will become totally possessionless.

Tragedy that was not necessary. As most human tragedies this one is also man made.

PS. On certain indian policies you will find me objecting. But that is the scope of my resistence. Nothing beyond..

As far as a framework is concerned, I must admit that over the years I have become disillusioned with theory. From my experience, what works is a combination of measures based in common sense -theory be damned.

Nevertheless, let me try and establish certain baselines :

1. I primarily support expansionary monetary policy, wherein central banks intervention by rapidly increasing money supply when they feel growth and employment are at risk.

2. As for the consequence of debt, it depends on who incurs it and from whom. Domestic debt is eminently manageable as long as the economy has a good balance of trade, produces most of its requisite goods and services within the domestic economy, and there is demand for its currency because other countries are willing to trade in that currency. Such an economy has a greater ability to withstand pressure from mounting debt, and have an array of options to deal with it.

3. Anyone who supports the above-mentioned positions is a Keynesian by preference, favouring demand-side economics where demand and consumption fueled by income in the hands of the middle and poor class is more desirable than supply-side economics advocated by the Chicago school such as Milton Friedman. I think putting money in the hands of the middle class and poor produces better economic outcomes than giving money to the rich - a view based in economic history and not my sense of justice and equity.

For now these three should suffice. Now coming to your questions.

As for debt-to-GDP, global debt stood at $217 trillion in the third quarter of 2016, meaning that debt was around 325 percent of GDP. The standout feature recently has been the slowdown in private debt and the sharp increase in government debt. More and more governments are looking to spend and invest their way out of the economic slowdown, this heading the advice of Keynes over Friedman.

As for ownership, that depends on what type of debt we are talking about. Sovereign debt has a diverse ownership. For the US, the largest chunk of government debt is held by US-based non-bank investors followed by the governments of other countries, of which Japan and China have the highest. Japan (which has the highest debt to GDP ratio in the world) has the largest chunk of its debt held by its own central bank. China has a huge chunk of its debt owned by domestic banks, with the lion's share controlled by state-owned banks.

Since we are focusing only on sovereign debt, one thing is for sure, most of this debt is fictional in nature. It could be cancelled tomorrow and it would not cost anything to do so. The US can borrow money endlessly - from others because they are willing to lend at low interest rates and from its own Federal Reserve because it can keep creating more money as required. The same thing theoretically applies to all countries - they are masters of their internal debt, and can cancel it if they so wish. But doing so will have consequences, because the financial system is built to earn interest on this money created out of nothing. And that is not necessarily a bad thing in itself.

What is problematic is the control they exercise, not the wealth they earn. The modern mechanism of monetary expansion is necessary to reflect our modern economy. Our economies have become so complex that it has become virtually impossible to arrest the flow of wealth from the bottom to the top. In this scenario, the only safety valve is if governments can quickly put money into the hands of the poor and middle class through social security, jobs in the public sector (preferably in education, healthcare and R&D), and huge public works projects such as infrastructure. How would they do it? Deficit financing is the only way to do so, because revenue has proved insufficient for this purpose. So we cannot fetter the ability of governments to raise internal debt and deal with it as they wish, within their abilities.

Sure, there are other options to ensure more equitable distribution - monetary policy is not the b only tool. Fiscal measures such as more equitable taxation, higher minimum wages and labour laws, redistribution by welfare measures such as free education and healthcare, etc. But these are outside the scope of our current discussion.

Greece is a good example of what happens when a government loses the ability to set its own monetary policy. While nominally sovereign, its debt is controlled by ECB. So for the purpose of handling its own debt it has none of the advantages a sovereign has. It can go bankrupt and creditors can squeeze it as much as they want. Now I understand that this control is problematic. So basically the ECB acts as sovereign and is free to issue debt as it pleases, but denies the same to Greece. It is this unfairness that needs to be addressed. Poor and weaker countries should have a greater say in being able to enjoy the full benefits of monetary expansion/deficit financing just as rich countries are able to.

You touched upon the subject of financial assets, their relationship with the real economy and the effect of de-leveraging these assets. I will reply in a short while. In the meantime, let me remind that my entire point at the beginning was that quantative easing/deficit financing/monetary expansion by Central Banks through control over fiat currency is the only viable solution to our financial needs at a global level. So in case you think there is a more equitable solution other than the present status quo, then please explain it to me so that i could consider it as well.

 

[Mangus Ortus Novem]

@Jacob Martin , my friend,


It is quite clear you are an analyst at heart. It shows....

Your piece/analysis is frankly rather well known and prompts the established narrative. This does not bring the current discussion forward. Sorry!

Let me insert substance different from the one established by the West i.e empire. The Western people are eqully beholden to this system.

I would rather see the end of debt based economic system. Period.


I would very much like to see a credit based economic system, where the issuance of money i.e. credit is in the hands of the national governments rather than for profit private banks.

By abolishing private debt creators we can start building a National Credit Economy. It is beyond absurd that global GDP to debt ratio is beyond redemption. Ever.

Human productivity, creativity and application of talent needs not to be held in bondage of mere bookkeeping.

When the wages go up the prices goes up as well. How does it advances Human Conditions?

With advent of Fintech, Bitcoins and such we are entering an era where technology can be truly become an enabler for such a system to exist.

By creating a credit+technology architecture enabled by Rules the system can be almost selfgoverning. That is, as the eonomy grows money supply grows accordingly almost in realtime.

Such a Credit System will have severe implications for the speculators on the Beurs.

It would force stockholders to actually Invest in companies rather than jack up their valudation based on speculation.

E.g. How can Tesla have a bigger Valuation than Ford? When its actual production capacity is nothing compared to Ford?

I do understand that what I propose is rather high level and needs considerable burning of the midnight oil to make the trasition from the debt systm of the empire to the Credit system of Free People.

However, I forward this idea to incite curiosity, stimulate a productive synthesis for a very few posters here at PDF.

The Principle that directs my thinking in this direction is Humanism.

I would like to ask you and others here to come up with your definitions of Being Human.


What does it mean Being Human?

What makes us Human?

How a debt based system limits/hinders being Human?


Example 1:

Look at the Chinese OBOR.

The Chinese are slowly implementing the Credit Economy through issuing credit at a very low interest rates to other countries to build infrastructure. This not only creates connectivity but also stimulates economic growth.

It might be that the Chinese companies are building most of the infra however the other nations get the equal benefits as well. Their economy grows, the Chinese companies can sell their products. The Credit stimulates the cycle. Win-Win Paradigm in Action.

CPEC is one giant example of this. Africa is one other... just look at the trains, bridges, roads and buildings. Ethopia.

Examplte 2:

Just imagine if the indian gov issues credit to your farmers at a very low interest rate to buy tractors..this will create an economic cycle of its own. Only the indian people will be one owning this credit and will be benefitiary to it as well. This can have a larger scope, of course.

Student debt in the US tells you something about the Human Condition. Why should enlightenment bring you to bondage? Counterproductive.




@samsara @TaiShang @Kaptaan @Shotgunner51 @Götterdämmerung , friends, do add your critique and thinking here!

 

[samsara]

@vostok

YES, thanks @Sinopakfriend, it's a very good article, and written in succinct form, quite readable!

JEFF NIELSON is a good authoritative author in this field (I'd read several fascinating articles by him in the past), great to bring this author into the spotlight here

I'd perused this article and spotted this questionable paragraph:

"With which institutions would the Rest of the World prefer to do business: entities rancid with corruption like the World Bank and the IMF, or an honest broker like the Asia Development Bank?"​

ASIA DEVELOPMENT BANK??? Is it an erroneous reference? I think the ADB is an extension of the World Bank, with the Japan is in the driver's seat stirring its direction. I guess Mr. Nielson did mean the Asian Infrastructure Investment Bank (AIIB). Btw I'd raised this question to the author

Following are some cross-link articles contained in the article, I put here for the readers' convenience:

(1) The Old World Order
http://www.bullionbullscanada.com/i...national-commentary/26551-the-old-world-order

(2) The One Bank, Revisited - Jeff Nielson
https://www.sprottmoney.com/Blog/the-one-bank-revisited-jeff-nielson.html

(3) The Network Of Global Corporate Control by Stefania Vitali, James B. Glattfelder, and Stefano Battiston
https://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf

Some more succinct expositions presented in more readable articles (summarized from above work) are available at (taken from my post above):

Revealed – the capitalist network that runs the world | New Scientist
https://www.newscientist.com/articl...d-the-capitalist-network-that-runs-the-world/

The Network of Global Corporate Control
http://tapnewswire.com/2015/07/the-network-of-global-corporate-control/​

(4) A history of the New World Order — Part I
http://www.michaeljournal.org/articles/world-government/item/a-history-of-the-new-world-order-part-i

(5) Economic Terrorism Against Russia Intensifies
http://www.bullionbullscanada.com/i...economic-terrorism-against-russia-intensifies

(6) Obama admits falling oil prices aimed at weakening Russian economy - Video Dailymotion

(7) Where Will China’s 'One Belt, One Road' Initiative Lead? - Knowledge@Wharton
http://knowledge.wharton.upenn.edu/article/can-chinas-one-belt-one-road-initiative-match-the-hype/

"With which institutions would the Rest of the World prefer to do business: entities rancid with corruption like the World Bank and the IMF, or an honest broker like the Asia Development Bank?"​

CONFIRMED by the author, Jeff Nielson, it's a mistake. Instead of the Asia Development Bank (ADB), it should be: the Asian Infrastructure Investment Bank (AIIB).

@Sinopakfriend - some other right time I may chip in some thoughts

 

[Götterdämmerung]

@Jacob Martin , my friend,


It is quite clear you are an analyst at heart. It shows....

Your piece/analysis is frankly rather well known and prompts the established narrative. This does not bring the current discussion forward. Sorry!

Let me insert substance different from the one established by the West i.e empire. The Western people are eqully beholden to this system.

I would rather see the end of debt based economic system. Period.


I would very much like to see a credit based economic system, where the issuance of money i.e. credit is in the hands of the national governments rather than for profit private banks.

By abolishing private debt creators we can start building a National Credit Economy. It is beyond absurd that global GDP to debt ratio is beyond redemption. Ever.

Human productivity, creativity and application of talent needs not to be held in bondage of mere bookkeeping.

When the wages go up the prices goes up as well. How does it advances Human Conditions?

With advent of Fintech, Bitcoins and such we are entering an era where technology can be truly become an enabler for such a system to exist.

By creating a credit+technology architecture enabled by Rules the system can be almost selfgoverning. That is, as the eonomy grows money supply grows accordingly almost in realtime.

Such a Credit System will have severe implications for the speculators on the Beurs.

It would force stockholders to actually Invest in companies rather than jack up their valudation based on speculation.

E.g. How can Tesla have a bigger Valuation than Ford? When its actual production capacity is nothing compared to Ford?

I do understand that what I propose is rather high level and needs considerable burning of the midnight oil to make the trasition from the debt systm of the empire to the Credit system of Free People.

However, I forward this idea to incite curiosity, stimulate a productive synthesis for a very few posters here at PDF.

The Principle that directs my thinking in this direction is Humanism.

I would like to ask you and others here to come up with your definitions of Being Human.


What does it mean Being Human?

What makes us Human?

How a debt based system limits/hinders being Human?


Example 1:

Look at the Chinese OBOR.

The Chinese are slowly implementing the Credit Economy through issuing credit at a very low interest rates to other countries to build infrastructure. This not only creates connectivity but also stimulates economic growth.

It might be that the Chinese companies are building most of the infra however the other nations get the equal benefits as well. Their economy grows, the Chinese companies can sell their products. The Credit stimulates the cycle. Win-Win Paradigm in Action.

CPEC is one giant example of this. Africa is one other... just look at the trains, bridges, roads and buildings. Ethopia.

Examplte 2:

Just imagine if the indian gov issues credit to your farmers at a very low interest rate to buy tractors..this will create an economic cycle of its own. Only the indian people will be one owning this credit and will be benefitiary to it as well. This can have a larger scope, of course.

Student debt in the US tells you something about the Human Condition. Why should enlightenment bring you to bondage? Counterproductive.




@samsara @TaiShang @Kaptaan @Shotgunner51 @Götterdämmerung , friends, do add your critique and thinking here!

I admire your patience with the Indian forumer. From my POV, there is not much to debate with them as nothing new and intellectual coming out of it. In fact, I can just read a mainstream book about economy that is controlled by the cabal and still understand more about the mindset of the cabal.