New World Financial OrderFederal Reserve Jaw Boning
Eurasia and Western Financial Structures
Putin of Russia, China, EU, and Central Banks (CBs) have a profound FOREX dilemma. Putin was in Davos Switzerland crying to the G20 that the world must dump the US Dollar as the world reserve currency, that is, the Federal Reserve Note (FRN), that is not a constitutional silver dollar, but rather fiat paper money having an artificial inherent value based upon required IRS tax payments, and that has an intrinsic value of absolute zero. The US, once on the gold and silver standard, suckered the rest of the world into accepting these valueless paper notes for goods and services, who have all done so at their own peril. US citizens gave up the ghost in 1913 when President Wilson signed off on creation of the FED banks, and hence, stuck US citizens with that paper trash and surrender economic freedom to the Federal Reserve Bank, a privately owned bank, controlled not by the US government, but by domestic and foreign banks, the seeds and route of undue influence over the US Government.
In the mean time, back in the Moscow, the Russian stock index is off a huge 70%, the Russian Ruble is in the tank at 36.1r/$, the Russian economy is slowing with rising inflation, with Putin's energy empire groping along at a mere 40$/barrow for oil, and now with riots breaking out, as in Moscow over super bowl weekend. In China, reverberations are had with charges and counter charges of currency manipulation as Obama's bullion hit man and new treasury chief Geithner fumbles the super power play and tics off the Chinese, the world largest foreign holder of US debt.
The world is plunging into depression (Baltic Dry Ice Indicator) as hot rhetoric flies back and forth, as the world economy spirals out of the control, with charges and counter charges of fault, and with banking defaults, as most nations attempt to devalue their fiat currencies attempting to maintain market share of foreign exports. One sad mess, all created by the use of inherently worthless fiat money, that put power in the hands of the banksters. Consequently, gold and silver bullion prices are on the rise during the financial turmoil and the panic now accelerating world wide, and bullion prices are likely to go ballistic in the near term, upward of $6000/oz by the end of Obama's presidential term.
Russia's Putin, China's Hu, and the EU's banksters apparently seek the demise of the US fiat dollar dominance as the world reserve currency. With Russia in the grip of strong-man rule, with Hu's communist party in totalitarian political control, and with the EU dominated by their left leaning socialists, they all had better be careful. They all might just get what they are asking for.
The global confluence of increasing interconnectiveness of all nations is continually increasing as human cultural evolution drives countries into more and more civil global cooperation leading to less war and no fiat money, being replaced by trade wars and bullion as the international medium of exchange. With calls of abandoning the US FRN as the world reserve currency, and with fiat money being devalued on a daily basis, there is only one practical alternative to the global fiat complex and currency mess facing the globe, and that is the long awaited return to real and honest money of gold and silver as the only global currency allowed and functioning as the only trusted medium of exchange between nations, businesses and persons, which would require a global UN world-wide treaty to perfect the reinstatement of the global gold/silver standard.
In Russia, commoners buy paper gold at the bank, having a counter party risk. Putin likes gold, but only for the Russian central banks. Not so in China, people can buy real gold and take physical possession. In the US, the US Mint is pumping out eagle coinage with demand skyrocketing of late, in the presence of bullion shortages at the local coin shops. In the EU, with Euro-gold and Pound-gold at all time highs, small bullion coins and wafers are practically all sold out.
The US FRN, the dollar, is only a note that is only redeemable in, (well you guessed it), more FRNs, the ultimate currency racket. There is no longer a promise to pay in any thing other than more of the same paper fiat money of zero intrinsic value. The US, in civilizing the world over the last century, has run an impressive national debt, essentially funded of late by foreign forex reserves, with social programs expected to multiply that debt in the coming years. Maybe its finally time to redeem those FRNs, such as at a redeeming rate of say, 1B$/oz of gold, to wipe out the US national debt over night, and stiff the foreigners, and thereby make them pony up for the cost of using free and safe trade lanes made safe by the US global military police actions over the last century. This of course would have bullion winners and FRN losers in the US.
In forcing all countries to redeem fiat money in bullion, those with notes and bonds denominated in fiat would be the big losers, while those holding physical assets, such as bullion, would be the big winners, yet economies world wide would be free of national debts, banker enslaving rate-controlling racketeering, with payments of a relatively small amount of gold to redeem the notes, and hence, the global currency and economic global reboot, back to lawful constitutional money.
Bullion as the medium of exchange prevents international unfair trade practices. Bullion in the hands of the folk places economic, and in turn political power, in the hands of the people. By moving away from targeted inflationary fiat use, used to sustain an every increasing welfare state, socialistic economies, military projections, and bankster control over our lives, government and the people will have to live within their means, and hence, jungle capitalism will resurface as socialistic programs become untenable. There would be a global rebirth towards smaller governments, toward more pure capitalistic economies, toward less banking enslaving control over the lives of the people. There would be, (for the first time) real and honest politicians, real and honest budgets, real and honest international trade practices, as political and economical power shifts from the governments and the banks to people holding real and honest money.
Those countries with large gold and silver mines (China, US, Russia, Australia, Canada), with huge domestic fiat debts (US), with low forex holdings and exposure (US), with sound infrastructures (US, Australia), with relatively going economies (US, China and Australia), and with a culture of free enterprise (US and Australia and Canada) will do the best. The US and Australia will be best situated for the transition. Russia's oil empire will keep Russia afloat. Russia's strong man rule would move toward free and fair press and democratic elections. EU would move away from socialistic spending in a continental rebirth of raw capitalism. China would get a boost to their economy, only after the FOREX shock, and will have growing economic free speech that always leads to political free speech that in turn would lead to democratization of mainland China over the out years.
Putin, Hu, EU, and the foreign central banksters had all better be careful here, they all may just get his wish, the demise of the US FRN global dominance, and with it, the demise of strong-man rule, totalitarian control, bankster money economic controls, and socialistic influences in market economies, as they pay back, through their forex collapse, the US for the costs of civilizing the world, while the people of the world, using real and honest money become the new power brokers of the new world order.
FED head Yellen said that a rate hike is coming but the economy is not there yet. This is FELON jawboning one year anticipated 0.1% rate hike, which is insignificant, but used as psych warfare market intervention, while admitting the economy is rolling over. What is so pathetic is that Congress and Market Watchers actually think this BERNAKE-FELON charade, going on years now, has some merit. YOU DONT CREATE WEALTH printing money, and despite 7T$, since 09, economy has gone now where, as a total absolute fail and total farce. The evidence is clear, as the labor participation rate crashes. Mean while, at the FED FRN ponzi scheme going exponential as all ponzi schemes do, as indicated by the national debt and the fed balance sheet. FED led QE ZIRP policy is part of the corruption conduit from wall street to undue influence over congress. The result of FED polices has produce stagnant wages, stagnant economy, while the top 1% are enriched at expense of middle class, as the con game continues, with the JOKE on the workers at taxpayer expense. Lets be honest, the FED is a bankster corruption conduit, enriching the top 1%, as wall street campaign money flows two bought government,keeping the FED con alive. Commie totalitarians devise five year fiscal plans two balance budgets. Capitalists dont, but rather rely on closed loop economic laws, free markets, and honest price discovery for maintaining a healthy operating economy. Now, the FED is trapped. If the FED raises rates the economy implode, and if QE to kick the can even more, the world 100T$ bond market implodes, causing hyperinflation, and ecomony implosion. There is no way out, but to inflate debt away on the backs of the middle class. I have a solid total plan to fix it all.
WE CAN DO. We are AMERICANS. We can do it. Please join the libereens. My friends, the evil powers corrupting this country can be defeated through strong presidental leadership perfecting solid long term solutions. Americans, please rally to my banner.
BRICS Bank, AIIB Bank, Currency Transfers and Swap Facilities
There is absolutely nothing inherently wrong with competition in global funding and international currency flows. The US government don't get that being US centric and desperately holds on to monopolistic controls of international currency flows that are use as asymmetric trade warfare tools applied to those countries who do not submit to US foreign policy objectives as unfair international trade practices, under the pretense of US exceptionalism and the neoconservative my-way-or-the-highway style of US international diplomacy, which is nothing less than international trade extortion.
Russia and China now lead a global consortium of 140 nations trying to avoid US-centric "petro-dollar" world reserve currency based sanctions employed by the US as an asymmetric warfare means to force other nations into compliance with US foreign policy objectives. US has already lost the sanctions war, deals in Ukraine, and in Iran, and the state department dont even know it, as they have NO CLUE.
This directly relates to the Ukraine rebellion and Iran nuclear negotiations. What’s so great about the new Asian Infrastructure Investment Bank? Fairness in international funding, currency transfers, currency swaps, competition in finance. The US should join AIIB and have influence there, rather than stifle international funding with exclusive US financial systems, including IMF, World Bank and SWIFT. And the demise of using dollar hegemony & US bond stacks in forex, as an unfair asymmetric tool extending US foreign policy. Russia and China have a legitimate complaint, as sanctions are employed using dollar hegemony and /treasuries through sanctions to force them to comply with US unilateral foreign policies.
Counter Productive Trade Sanctions
But sanctions are counter-productive, hence the BRICS bank, AIIB, Chinese currency transfers EU hubs, Chinese swap facilities. The knucklehead at state have no clue of course. So, AIIB is created from push back against Kissinger so-called "petro-dollar" and US asymmetric sanction tool,natural result. Combine Kissenger's petro-dollar, financial sanctions at state, and US welfare state created bond stack, and AIIB result. State dept working on the Iran deal, when the most indispensable party aint even at the table, so, it go no where, or a cave in, and with political needs for a deal, any kind of deal, to save face, odds are we get a cave in deal, if any. Why would Russia help the US when HRC started war in Ukraine and the US then applied sanctions?
Bond stack is a stack of government bonds. To absorb the world wealth in a financial instrument, many countries buy US treasuries, that is, US bonds, and these US bonds are recorded in a country's forex (foreign exchange account). The US, with a national debt of 18 trillion dollars has the largest bond stack, and can absorb wealth from around the world. This huge number of bonds is called a bond stack. It places other countries who buy US bond at the mercy of the FED policy, because as the FED prints money by QE, it weaken the dollar, and thereby weakens the bond value. To hedge against this deterioration of the bond value, countries like China and Russia are buying gold, they are also selling their US bonds in their bond stack. The US uses it control of the swift system for money transfers and its bond stack to apply sanctions against countries, such as Iran and Russia. This is why China and Russia are creating their own currency transfer systems, currency swap facilities, funding bank and development bank, to get out from under US control of money flows to avoid using their wealth as an instrument of US foreign policy, that they may not agree with. Thus, the US uses the "petro dollar" (dollar use to buy oil), its SWIFT money transfer system, and it bond stack to collect wealth from around the world, and then unfairly uses it "reserve currency status" as an asymmetric warfare tool to force other nations, eg Russia Iran, to comply with US foreign objectives. The sanctions have accelerated the building of Eurasia infrastructure.