America's Financial Crisis - 2008

America's Financial Crisis

With this blog I will attempt to assess the current global financial meltdown from a geopolitical perspective by posting relevant documents news articles and video presentations. The current global financial crisis is much more serious than we are led to believe. We are simply not being told the severity of the turmoil in Wall Street because government officials along with Wall Street executives and mainstream news media representatives are engaged in a concerted effort to downplay and whitewash the crisis in an attempt to alleviate concerns and/or panic in the general public. However, the situation is getting so bad now that despite their best efforts they can no longer hide it.

While the US was a beloved industrial power with substantial gold reserves and natural wealth, the US dollar was powerful, claimed by many to be "almighty," an obvious reference to its perceived divine power (perhaps to its detriment). Due to its stability, strength and long-term promise, nations worldwide chose to trade in the US dollar, thereby further elevating its value in the global market. This global reverence towards the US dollar reached its height in the post-World War Two years and then again in the post-Soviet years. However, the dollar's long-term prospects began to change when the US economy began to transform itself from an industry based economy to a service based consumer economy led by financial institutions and international corporations. What's more, by the 1970s (?) the US government no longer backed the dollar with gold reserves. With the dropping of the traditional gold system, the legal tender essentially became a government backed credit, a piece of paper with nothing to back it up other than the government's word. What's more, the recent years were plagued by liberal lending practices, chronic mismanagement, severe corruption, etc., which also began to gradually undermine the dollar.

By the turn of the 21 century the US dollar no longer looked as stable or as promising as it had been in the past. This, coupled with major geopolitical tangles the US government kept getting involved in, encouraged some major nations to begin flirting with the idea of moving away from the US dollar in their trade transactions, further weakening the US currency. As a result of all this, the US dollar has been worthless as a currency for some time now. During the 20th century, the dollar managed to first create and then maintained a high global posture while America was considered to be the leader of the so-called free world. And in recent years the dollar got a major boost after the Soviet Union's collapse, making America 'the' undisputed global superpower. So, in a sense, the dollar's current worth is derived from its previous momentum and a lot of political 'hype' and not much else. For some time now I have been saying - don't believe the hype.

Geopolitically, things have changed quite a bit since the dawn of the 21st century. China rising, India rising, Iran rising, Russia rising... Since the financial power of the US is intimately connected to its preponderance on the global stage, US government officials and financial experts must have seen the looming financial crisis. Seeing it, they had to take action to secure their wealth and power. However, instead of attempting to devise plans that would truly remedy the root causes of the nation's economic problems, special interests in government began devising plans that were politically and financially very risky. In a sense, these special interests sought quick fixes that could also yield high dividends. So, they eventually began to plan the invasion of the Middle East as an attempt to control the region's energy wealth. There was also talk that if Washington could control Middle Eastern and Central Asian energy distribution it could also control China, since China, as big as it's economy is, it is not an energy producer. Moreover, taking advantage of Russia's political weakness during the 1990s, Washington also planned to setup shop in the immensely energy rich republics of Central Asia. Naturally, the Balkans and the Caucasus also played a crucial part in these equations. In a certain sense, this was a race against time for Washington.

However, the government had to somehow convince "we the people" that we had to do this. But how? How could they convince the people that they had to willingly carry the burden and support the invasion of nations and be involved in armed conflicts overseas for the foreseeable future?

Well, in my opinion, the answer was - September 11, 2001. That highly suspicious event convinced the grazers in this nation (the majority) that the US had to get involved in bloody militarily campaigns overseas, not surprisingly mainly in the Middle East and Central Asia. For the grazers, it was a simply a matter of protecting America and you know, freedom... democracy... human rights... etc... For government officials, however, it was simply a matter of getting their hands on black gold so that they can revitalize their weakening financial system and maintain their political advantage over Russia and China. Of course there were several other major factors involved: Israeli lobby, the defense industry, mega corporations... Nevertheless, as a result of 9/11 we saw the US (and its lackeys) getting involved in conflicts from the Balkans to the Caucasus, from the Middle East to Central Asia. I need to mention here that Washington's agenda had started several years prior to the 9/11 attacks, the 9/11 attacks served to accelerate it and intensify it.

Needless to say, Washington's moves have backfired in the Middle East, Central Asia and most recently in the Caucasus; but succeeded somewhat in the Balkans. Overall, the West did not realize its ambitions in Central Asia (which was to control the massive oil/gas wealth of the region) because Russia, rebounding for their 1990's slumber, gradually managed to make long-term deals with Central Asian republics and in a sense monopolized their energy distribution. The West was not able to realize its ambitions in the Middle East (which was to exploit Iraq's oil wealth and impose itself on Gulf states) because the Iraqi people did not accept them as liberators, as Washington had initially hoped. The West did not realize its ambition in Afghanistan (which was to become a route through which Central Asian energy would be diverted south to Pakistan and beyond) because of botched deals with Pakistani officials and the Taliban. And, finally, the US was not able to realize its ambitions in the Caucasus (which was to divert Central Asian energy through Azerbaijan and Georgia to the West) because Moscow recently crushed their puppet in Tbilisi.

Therefore, the major gamble has in a sense backfired severely. These quagmires are now costing the US government hundreds of billions of dollars annually. Don't forget that the US already has approximately a ten trillion dollar debt. All this means: The US has a hollow/superficial economy without a real foundation or future.

What does the US produce anymore? The answer is - only the US arms industry has remained a lucrative source of income. The US is the number one arms exporter in the world. Which is quite revealing, incidentally. Nevertheless, China is becoming the economic superpower, surpassing Japan, Germany and the US. As global demand for energy rises, energy resources dwindle. The undisputed 'natural resource' superpower today is Russia. The world's last major proven reserves today (which are located in Eurasia) are more-or-less controlled by Moscow. In recent years China and Russia have been getting closer, economically, politically and militarily. And when you join together the world's biggest producer of goods (who also happens to have the world's largest military) with the world's biggest holder of natural wealth (who is also a military superpower) - you end up having a 'supermegapower' on your hands.

I would be afraid of what the future holds in America because serious governmental policy in the US is not made by American patriots, they are made by the Federal Reserve (a privately owned institution that controls the US dollar), by international mega corporations, by the Israeli lobby, by the oil lobby, by the defense industry... Unless these people begin placing America's well being ahead of their special interests this nation will implode and its demise will be worst than that of Rome's...

The sick man of the West

Let's not kid ourselves anymore, America is seriously ill and has been for some time now. The many symptoms of its aliment are quite obvious. In no particular order they are:

The idiot president in charge for eight years.

Rumsfeld and Cheney.

Severe abuse of presidential powers.

Undermining of the US constitution.

Enron, Bechtel, Halliburton, Black Water...

Wolfowitz's World Bank scandal.

The self inflicted wounds on September 11, 2001.

The self inflicted Anthrax attacks.

The invasions of Iraq and Afghanistan.

Chasing of "Al-Qaeda" phantoms in Iraq and Afghanistan.

The dismemberment of Serbia.

Bullying of Russia, Syria, Venezuela and Iran.

The continuation of the oppression of Palestinians.

The introduction of international mercenaries into the ranks of the armed forces.

Politicians putting the interests of special interests ahead of the people interest's.

Washington DC's subservience to Zionists.

Washington DC's subservience to international corporations and banking institutions.

Pharmaceutical companies pushing drugs onto the citizenry.

The FDA pushing genetically modified foods onto the citizenry.

The gradual transformation of America into a police state.

The horrific aftermath of Hurricane Katrina.

Various political murders.

The chronic mismanagement and corruption in Wall Street.

The Stock Market meltdown
and the housing market collapse.

Top executives of poorly managed companies getting multi-million dollar bailouts as workers are put on the streets.

Rising unemployment, poverty and crime.

The Federal Reserve.

Cuts in social services.

The sensational scandal of governor Blagojevich.

The unprecedented theft of over fifty billion dollars by Wall Street tycoon, Madoff.

Putting armed troops on city streets in America.

Controlled news media.

A fat, lazy, dumb and self-centered population obsessed with consumption and entertainment.

Neocons, Clintonites, illegal immigrants, Zionist lobby, oil lobby, Christian Right, racists, liberals, rednecks, blacks, Hispanics, J
ews, Asians...

And finally, the false hope that Barack Hussein Obama will bring "change".

On Track for U.S. Collapse

Bush and Cheney are steering the U.S. into a collapse. Only strong public voices by influential people can prevent the coming disaster. We desperately need for men and women who are known to the public and have credibility to speak up in the critical period ahead to avoid catastrophe.

* A few weeks ago, Israel bombed a alleged nuclear facility in Syria. This is a warm-up for an attack on Iran.
* In the last few days, the U.S. unilaterally tightened sanctions on Iran. Russia and China do not support this move.
* A week ago Bush warned Iran that its attainment of nuclear arms would lead to World War III.
* Russia, which has been assisting Iran in its nuclear construction program for decades, regards Western military action against Iran as unacceptable.
* China has been arming Iran with missiles. Its relations with Iran have been improving for years.

We know that Bush and Cheney are capable of pre-emptive attack. We know that Bush will act if he believes he is right no matter what the costs are. In his distorted worldview, Iran with nuclear weapons is a scenario worth any cost to avoid. We know that Bush, Cheney, and Rice have repeatedly warned Iran of meaningful consequences if Iran arms itself with nuclear weapons. We know that their terms in office end in 15 months. These are the critical months. But it is by no means clear that the front-running candidates for office who may replace them hold substantially different views. Hillary Clinton has publicly called for sanctions against Iran and has called Iran a threat to Israel. Why may an unprovoked attack on Iran lead to WWIII and why may it lead to the collapse of the U.S.?

Imagine this scenario. The U.S. encourages Israel to bomb the Natanz nuclear facility in Iran. Russia attempts to restrain an Iranian response but fails. Iran responds in any of many ways, such as launching missiles on Israel, firing on shipping in the Straits of Hormuz, mining the Straits of Hormuz, sending troops into Iraq, or allying its military with Hezbollah and attacking Israel from Lebanon. The U.S., citing Iran’s aggressions (that will be the story), launches a full-scale attack on Iran designed to devastate the country. This attack has actually been planned by the U.S. for years. Syria is unable to maintain neutrality and quickly becomes a battleground between Iran and Israel.

The price of oil by this point has already soared to $200 a barrel. The U.S. begins to use its strategic reserve and to divert Iraqi production. Russia responds by taking steps to prevent its oil production from reaching the U.S. China responds by cutting off its support of the U.S. Treasury market. Venezuela halts oil shipments to the U.S. The first stages of WWIII are economic warfare designed to cripple the U.S. and halt its war-making capacity.

The U.S., unable to finance its deficits and fund its sovereign debt, is forced into raising interest rates drastically in order to borrow. The Fed is forced to print money. An inflationary spiral occurs. Meanwhile the high interest rates and high oil prices, not to mention the shock of a spreading conflict, drive the U.S. economy into severe decline. The U.S. attempts to raise taxes in order to fund itself, further crippling the economy. Gold soars to $1,500–$2,000 an ounce. The U.S. attempts to bolster its military forces. The draft is reinstated. The severity of the emergency allows Bush and Cheney to assume emergency powers and begin a dictatorship. Elections are postponed.

The U.S. collapses.

Unfortunately, even if this scenario does not occur, the position of the U.S. is so precarious that any number of other scenarios equally disastrous lie in wait. This house needs urgently to be put in order or it will fall, and especially if it does not terminate its imperial adventures. The very fact that Bush and Cheney (or any major U.S. political officials) gain by starting WWIII is a terrible indictment of our entire political system. Who can stop this? Who can prevent this? It will only take a few well-placed people to prevent this catastrophe. My guess is 5–20 people could sway public opinion against war or provide enough cover for Congressional dissenters to screw up their courage. Maybe even as few as 3 or 4 influential people could derail the Bush-Cheney train to disaster. They need to speak out at the right times and they must be heard. Previously mute or muted voices simply must speak out. They know who they are. They know that their silence will mean silent approval of a U.S. collapse.


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