Crisis in the West, Part 2

[tony human]

<b>You Need Money? OK! Just print all you want!</b>

 

Here is an example of how this system actually works. The Federal Reserve Bank issues a $100 dollar bill which it delivers to the government so that the Dept. of Defense can give it to the US Army which buys ammunition for their soldiers’ rifles, who can then use it to kill Afghanis in their own invaded country. Now, the last thing that Barak Obama wants is for that $100 dollar bill to flow back into the US financial system, because - given the huge quantities of money printing involved - that would have a severe inflationary effect that would end up grinding the whole machine to a halt.

 

Because the process described is repeated over and over again, millions upon millions of times, it allows the Obama Administration to purchase not just ammunition, but, more importantly, barrels of oil, tanks, F16 fighter-bombers, Apache helicopters, guided missiles of all sizes and shapes, drones, napalm, aircraft carriers, cluster bombs, bunker buster bombs, uranium bombs, and all those other much needed instruments to promote ‘Freedom and Democracy’ throughout the world. The secret lies in making sure that these zillions of dollars do not flow back uncontrollably into the US economy. If they did, there would be more than an inflationary effect – it would create a hyper-inflationary effect.

 

What the US government needs and gets from all players the world over is that, once a $100 dollar bill has been used to buy war material - or whatever - it then gradually flows out of US into international financial circuits and stays out for as long as possible. Thus, those dollar bills get ‘soaked up’ by somebody somewhere far away: Japan, Malaysia, China, India, Brunei, Russia, Thailand, Saudi Arabia, Brazil, Indonesia or Argentina. Anywhere, as long as they do not come back (at least not anytime soon) into US financial circuits and those of the primary supranational banking system.

 

Thus can be understood the huge pressure exerted by the US on foreign central banks - especially those of subordinated countries - so that they permanently soak up US dollars, which means that they take them out of circulation. That gives the US some urgently needed respite and breathing space. The US does this so that it can continue issuing as many $100 dollar bills as needed in order to give them to the Dept. of Defense who gives them to the Army to buy ammunition…..well, you know the story… and the cycle goes on and on and on.

 

The key factor is to make sure that this spiraling wheel keeps turning and churning; printing, circulating, and then soaking up these dollars through the ‘right’ channels and circuits and at the ‘right’ speed, fitting the Imperial need of ensuring they are dispatched far, far away. The real danger for the US is if the wheel were to suddenly stop turning then all of this vastly complex global financial engineering would simply collapse under a huge load of worthless paper with the ensuing dire consequences for the rotten, low-life powers that be.

 

For the United States to maintain global superpower status, there must always be somebody somewhere, as far away as possible, on whom to dump vast quantities of US dollars, which are continually and uncontrollably printed by the Fed so that once the US war machine has consumed that money it can be silently and discretely removed from further circulation (soaked up in foreign central banks, private savings, etc).

 

Washington needs these dollars to ‘disappear’ after they've been used and it really doesn’t matter whether they disappear into central bank vaults abroad or into individual investors’ safes in Turkey or Indonesia, or under small investors' mattresses in Mexico, Nigeria or Brazil. That’s not really the issue. Those who soak up these dollars are helping finance the US budget deficit, paying for the cost of killing Iraqis, Afghanis, Palestinians and Lebanese in their own countries, preparing invasions against Iran, Syria, North Korea or Venezuela, or torturing POW’s in Guantanamo and Abu Ghraib.

 

This is the worst form of colonialism and is based on a very complex and highly financed psywar operation. At the end of the day, when something goes terribly wrong (and it always does), it lets mainstream media commentators turn around and say to the people, "don't complain if everything in your country is mucked up: it's your fault for voting for the wrong people!" The problem being that the parasitic, stinking, power elite always make sure that the ‘wrong people’ - those that best suit their interests - are the sole candidates in all elections, irrespective of any left, right or center ideological stance. It's all a question of recruiting ‘politically correct’ (for them) candidates and public officers. The above is true the world over. It cannot be stressed enough that the real backing of the US dollar is the apparently invincible armada of US military might which, since 11th September 2001 is permanently perched ready to attack, bomb and invade anybody anywhere and for any reason.

 

<b>Mafia  + Usury  = Market Economy</b>

 

Long before Barack Obama had even been born, a perverse unnatural process had begun whereby finance and money, which should always be subordinated to the real economy of work and production, went out of control and grew and grew and grew into the monster it is today. Swamping and drowning out the real economy, destroying the forces of labor and generating mass poverty and unemployment on a worldwide scale.

 

One of many indicators of the rise of finance & money can be seen in the way the Dow Jones Industrial Average (DJIA) Index grew during the Clinton years. After the 1992 elections went to the up & coming Bill Clinton, the Dow sat placidly at 3,700 points. Eight years later, however, when Clinton ended his second term in office in 2000 the Dow was at 10,900 points (and had only a short time earlier peaked at 11,700 points) that’s 300% growth over eight years!

 

The obvious question is: did the US economy also grow 300% between 1992 and 2000 as the DJIA did? The answer is clearly, no. Economic growth in the nineties in the US was very good but only averaged 3% to 4% per annum, so that during the entire Clinton era aggregate economic growth was not more than 40%. Now, if the real economy only grew by 40% in eight years, how is it that the ‘virtual economy’ of finance and speculation grew by 300%? Something is clearly rotten.

 

The key to all of this can be found in factors like usury, the printing of ‘fiat’ money, and rampant parasitical speculation which are embedded into the very fabric of which today’s global financial system is made. Money is created out of thin air by the Federal Reserve Bank and the private mega-banking system by the billions of dollars, the latter using the well-known and absolutely perverse banking multiplier effect which allows private banks to, in effect, create money. And now the whole edifice is on the brink of collapse.

 

Alas! The US cannot continue printing dollar bills indefinitely. Today’s global financial system is bursting at the seams with dollars. How much longer until there is a final crash? Six months? One year? Nobody knows for sure. It is acknowledged, however, that the US dollar can collapse at any moment.

 

Thus, through the on-going massive transfer of wealth, “extreme destructive capitalism” will collapse national and regional economies. Remember, today’s woes lie not with the real world of national economies (which includes products creation), but with the fake virtual world of finance, banks, derivatives, junk bonds, hedge funds, et.al. All propped up through mass psywar technologies via CNN, Fox News, New York Times, Daily Telegraph, Wall Street Journal, Financial Times, The Economist, Time, Newsweek, & Washington Post, et.al. (Watch the documentary “Inside Job” for more on this). World Government will rebuild and reformat economies into international slave labor Gulag-like entities that Joseph Stalin would be proud of!

 

<b>Managing the Demise of the Dollar, Plan “B”</b>

 

Excessive printing has brought the US dollar to the point of no return. Monetary collapse can no longer be avoided. At best it needs to be managed. Naturally, the United States rich, greedy, power mad establishment and its key allies will not allow a hyperinflationary crisis to collapse their economies, so preventive crisis management on the monetary front is what we are beginning to see. There are various, creative and innovative ways of re-directing and detouring monetary catastrophes so that they hit someone else somewhere else, and there are ways of ensuring that damage control at home and at our friends’ homes is kept at acceptable levels. It is precisely this Plan “B” which is currently on the private drawing boards in the key think-tanks.

 

It even appears as though Plan “B” consists of letting the present mass of US dollars continue growing for a while longer, all the way up to the brink of collapse without falling over the precipice, taking as much advantage as possible of the fact that this serves to ensure that the rest of the world finances the US budget and trade deficits to the very last. Accordingly, the first phase of Plan “B” consists of ensuring that the party lasts as long as possible. The Obama Administration is being used to keep the party going.

 

Will the very complex monetary and financial engineering necessary to carry out the demise of the dollar and ensuring its orderly replacement by a new reserve currency happen during Obama’s presidency? It would be an auspicious time given all the predictions of gloom and doom for 2012 (a sure thing is the doubling of the inflation rate in 2012) and it could then be blamed on those ‘damn liberals!’ Will it happen in 2013 during the next presidency, most likely Republican? Probably not, it wouldn’t make sense for the dollars demise (a possible loss of up to 50% on the dollar for many people) to happen on a republican shift. Republicans are complicit with rich elite ass clowns. And there’s no way to put a positive spin on this catastrophe.

 

<b>“New Dollar” is coming!</b>

 

Plan “B” has a second part. Sometime during the next 12 months or so, our TV screens will tune in to CNN, CBS, BBC, CNBC, Fox and other world media as they announce urgent ‘breaking news’ involving important financial developments amid panic and dark rumors in key markets. We will then learn that the President has a ‘major announcement’ to make to the people of the United States and the world.

 

In international finance, the president has a little known nuclear option of immense power. This option is called the International Emergency Economic Powers Act of 1977, known as IEEPA, passed during the Carter administration as an updated version of the 1917 ‘Trading with the Enemy Act’. President Franklin D. Roosevelt had used the Trading with the Enemy Act to close banks and confiscate gold in 1933. Now, a new president, faced with a crisis of comparable magnitude, will use the new version of that statute to take equally extreme measures.

 

The use of the IEEPA is subject to two preconditions. There must be a threat to national security or the economy of the US, and the threat must originate from abroad. There is some after-the-fact notification of Congress, but in general the president possesses near dictatorial powers to respond to a national emergency. The circumstances now unfolding meet the conditions of IEEPA. The president has met with his economic and national security advisers and speechwriters to prepare the most dramatic economic address since the Nixon shock of 1971.

 

The president will issue an executive order to an anxious world audience consisting of the following actions, all effective immediately:

L The president will appoint a bipartisan commission of major players in the capital markets and “eminent economists” to do studies and make recommendations for reform within thirty days.

L All private and foreign-owned gold held in custody at the Federal Reserve Bank of New York or depositories such as the HSBC and Scotiabank vaults in New York will be converted to the ownership of the US Treasury and transferred to the US gold depository at West Point. Former owners will receive suitable compensation sometime in the future.

L All transfers of foreign holdings of US Treasury obligations held in the system maintained by the Fed will be suspended immediately. Holders will receive interest and principle as agreed but no sales or transfers will be allowed.

L All financial institutions will record US Treasury obligations on their books at par value and such securities will be held to maturity.

L Financial institutions and the Fed will coordinate efforts to purchase all new issuance US treasury obligations in order to continue the smooth financing of US deficits and the refinancing or redemption of any outstanding obligations.

L Stock exchanges will close immediately and remain closed until further notice.

L All exports of gold from the US are prohibited.

 

This interim plan would stop an immediate crash in the Treasury bond market by freezing most holders in place and mandating future purchases by banks. It would not be a permanent solution and would, at most, buy a few weeks’ time within which to develop a more lasting solution.

 

At this point the US dollar is dead.  A new currency is required.  Now the hidden strength of the US financial position will be revealed. By confiscating foreign official and most private gold in the US, the Treasury will now possess over 17,000 tons of gold, equal to 57% of all official gold reserves in the world. This would put the US in about the same position it held in 1945 just after Bretton Woods when it controlled 63% of all official gold. Such a hoard would enable the insane, psychopathic, United States right-wing elite to do what it did at Bretton Woods – dictate the shape of the new global financial system.

 

 The US will declare the issuance of a new dollar, convertible into metallic gold which will replace all the ‘old dollars’ in circulation. What’s going to happen with those old dollars? They will have to be exchanged for new dollars, of course.

 

All the wealthy, rich scum holding US dollars and Treasury instruments who are citizens of the US together with US corporations, and persons, corporations and organizations domiciled in countries allied to the US will have their ‘old’ dollars exchanged for new dollars on a 1-to-1 parity.

 

For the rest of the world – Asia-Pacific, Central and South America, Africa, Russia, the Muslim World, you and I – the exchanging old dollars for new ones will depend on the goodwill of the US Treasury Dept. If that goodwill is lacking, it will be up to local exchange markets to determine the ‘proper’ rate of exchange between the extremely plentiful and rapidly depreciating old dollars sloshing around, and the extremely scarce new dollars.

 

And what will that rate of exchange be? One-to-one? I doubt it, because supply and demand will set in almost as fast as panic. 5-to-1? Or 10-to- 1? Who knows? And whatever happens to any but the filthy rich will certainly not be a prime concern of the US government.

 

Naturally, key insiders will have had suitable foreknowledge that will allow certain banks, investment funds and even governments to take mitigating action. Because of its gold backing the New Dollar will be the only desirable currency in the world. The US will then be the ultimate victor in the currency wars.

 

Or not. This scenario of chaos followed swiftly by the ascent of a new gold-backed dollar emerging phoenix-like from the ashes is only one possibility. Due to gold being and ‘honest’ currency and not easily manipulable it is shunned like the plague by the psychopathic elite, politicians and “serious” economists and bankers.

 

<b>Options for a New Dollar include:</b>

 

A return to the gold standard. I have had my misgivings about gold over the years but James Rickards in his book ‘Currency Wars’ makes a convincing argument for its implementation once again.

 

 Gold offers the best chance of stability and has a longer track record as money – over five thousand years – than any rival, which shows its utility to many civilizations and cultures in varied circumstances. Due to its properties of scarcity, durability, and uniformity gold could be a serious contender as money. However, modern central bankers and economists do not take gold seriously as a form of money, believing gold to be the major cause of the Great Depression and the crack-up of Bretton Woods. Fed Chairman Ben Bernanke is a scholar of the Great Depression and believer that gold was the culprit.

 

Until 1968, US law required a minimum amount of gold at the bottom of the inverted money creating pyramid. At the time of the Great Depression the value of gold at a fixed price had to be at least 40% of the amount of Fed money. However, there was no maximum. This meant that the Fed money supply could contract even if the gold supply was increasing, which was the case in the 1930s. There was no economic reason for the contraction in money supply in the presence of ample gold. The fault was with policy decisions of the administrations of the time, not the gold standard.

 

Bernanke, Barry Eichengreen and Paul Krugman still see gold as the limiting factor in the expansion of money when more money was needed which led to the Great Depression. But as gold flowed through the US in the 1930s, the Federal Reserve could have allowed the base money supply to expand by 2.5 times the value of gold. The Fed failed to do so and actually reduced the money supply, in part to neutralize the expansionary impact of gold inflows. So this was a policy choice by the Fed. It is historically and analytically false to blame gold for this money supply contraction.

 

In addition to this refutation of Bernanke’s historical analysis, there were a number of actions central bankers could have taken in the 1930s to alleviate the tight money situation unconstrained by gold. Special Drawing Rights (SDRs) were created in the 1960s to solve exactly this problem of inadequate reserves encountered in the 1930s.

 

Were a 1930s style global liquidity crisis to arise again, SDRs could be issued to provide the foreign exchange base from which money creation and trade finance could flow – exactly as they were in 2009. This kind of money creation can take place without any reference to gold at all. The failure to do so is not a failure of gold but, rather, a failure of policy.

 

Bernanke’s real objection to gold today is not that it was a constraint to increasing the money supply in the 1930s but that it could become so at some point today. There was a failure to use all of the money creation capacity that bankers had during the Great Depression, yet that capacity was never unlimited. Bernanke wants to preserve the ability of central bankers to create unlimited amounts of money, which does require the abandonment of gold. He does this in service to his masters the rich, living dead overlords. Fiat money is easily manipulated and serves to direct wealth to the top. This is something the living dead elite like, and like a lot!

 

In the case of the Great Depression, the crime of tight money was not committed by gold but by the central bankers who engaged in a long series of, supposedly, dim-witted policy decisions. One questions whether they were dim-witted decisions due to the extreme wealth extraction from the lower and middle classes to the top that occurred during these years.

 

In international finance, gold is not a policy; it is an instrument. Laying the tragedy of the Great Depression at the feet of the gold standard has been convenient for central bankers who seek unlimited printing capacity to serve themselves and their rich masters. Central bankers, not gold, were responsible for the Great Depression and economists who continue to blame gold are merely looking for an excuse to justify fiat money without bounds.

 

So, can gold play a constructive role today?  What would a gold standard for the 21^st century look like? The simplest kind of gold standard – call it the pure gold standard – is one in which the dollar is defined as a specific quantity of gold and the agency that issues dollars has enough gold to redeem the dollars outstanding  on a one-to-one basis at the specified price. In this type of system, a paper dollar is really a warehouse receipt for a quantity of gold kept in trust for the holder of the dollar and redeemable at will. Under this pure gold standard, it is impossible to expand the money supply without expanding the gold supply.  The pure gold standard would allow for the creation of credit and debt through the exchange of money for notes, but it would not allow for the creation of money beyond the amount of gold on deposit.

 

All other forms of gold standard involve some form of leverage off the existing gold stock, and this can take two forms. The first is the issuance of money in excess of the stock of gold. The second involves the use of gold substitutes, such as SDRs, in the gold pool on which money is based. This flexible type of gold standard requires consideration of a number of design questions and the definition of money for purposes of calculating the money-gold ratio. We will not attempt to answer these questions here, suffice it to say it is possible.

 

How much gold should be counted in these calculations? Should only official gold be counted or should gold held by private citizens be included? Should the calculation be done solely with reference to the US, or should some effort be made to institute this standard using gold held by all major economies? And what should the dollar price of gold be under this new standard?

 

Choosing the wrong price was the single biggest flaw in the gold exchange standard of the 1920s. The price of $20.67 per ounce of gold used in 1925 was highly deflationary because it failed to into account the massive money printing that had occurred in Europe during World War I. A price of perhaps $50 per ounce or even higher in 1925 might have been mildly inflationary and might have helped to avoid some of the worst effects of the Great Depression (if mitigating the Great Depression had been a desired goal).

 

Assume that the coverage ratio chosen today for the price of gold is the one used in the US in the 1930s, when the Fed was required to hold gold reserves equal to 40% of the base money supply. Using April 2011 data, that standard would cause the price of gold to be set at $3,337 per ounce.

 

The final issue is the degree of flexibility that central bankers should have to deviate from strict coverage ratios in times of economic emergency. This is where it all falls apart because it boils down to a question of trust between central banks and the ‘citizens’ they ostensibly serve. The history of central banking has been one of broken promises when it comes to the convertibility of money into gold, while the history of central banking in the US in particular has been one of promoting banking interests and the rich zombie elite at the expense of the general population. The only way that there can be any confidence in a gold based system is if there was a strong legal regime in place to keep the thieves in line and mandatory open-market operations to stabilize prices. Not gonna happen.

 

If such a system miraculously did come into being, a new gold standard for the international community would need to be addressed as well. History has been that international gold standards survive only until one member of the system suffers enough economic distress, usually because of excessive debt, that it decides to seek unilateral advantage against its trading partner by breaking with gold and devaluing its currency.

 

One solution to these unilateral breakouts would be to create a gold-backed global currency of the kind suggested by Keynes at Bretton Woods – the Bancor. Bancors would not be inflatable fiat money, but true money backed by gold. The bancor could be designated as the sole currency eligible to be used for international trade and the settlement of balance of payments. Domestic currencies would be pegged to the bancor, used for internal transactions and could be devalued against the bancor only with the consent of the IMF (since the IMF is dominated by Western powers the likelihood of any country on the gold standard being allowed to devalue their currency is unlikely as that would interrupt the flow of profits to low-life western elites).

 

Getting back to the collapse of the dollar, you may be thinking a 10 to 1 exchange rate of old dollars for new dollars will trigger a gigantic worldwide financial crisis. No doubt it will. You may also think that this will turn the better part of the international financial system on its head. Of course it will. There will be even more hunger, hardship, poverty, sickness, wars, epidemics and catastrophes of all sorts. However, those who are ‘in the know’ beforehand, the Empire’s most trustworthy allies, friends and henchmen - both in terms of countries as well as financial, economic and industrial groups, and maybe even a Mafia here and drug cartel there - will be reimbursed on par to help mitigate the impact of this crisis.

 

China, Japan and India with their vast dollar reserves will feel the blow. They will lose vast amounts of money. Japan will see its economic recovery delayed for years to come. China may see its huge growth slowed, the aggregate effect of the global financial collapse will greatly harm exports from India, China, Japan, Taiwan, South Korea and Brazil. Already China, Japan, Russia, South Korea are divesting huge chunks of their dollar holdings.

 

China is also transforming great chunks of their “old” dollars into physical assets such as gold and rare earth minerals. Japan, South Korea and Taiwan cannot move as swiftly and easily because they are military underdogs and politically subservient to the US. To a great extent, their lots have been cast unless…

 

Unless, as Samuel Huntington insinuated in his 1997 classic “The Clash of Civilizations”, Japan and China were to forge an alliance similar to the one which Germany and France reached over half a century ago. Imagine Japanese technology allied to the Chinese economic powerhouse with its military clout. Then South Korea might even be able to move forward towards reunification with the North under the aegis of China which wields the necessary influence over the North Koreans and can soften up their outmoded authoritarian style. This latter scenario most definitely keeps the US and Western greedy, power mad, imperial leaders wide awake at night.

 

<b>Another candidate for a ‘new dollar are Special Drawing Rights (SDRs).</b> The time is just about right for SDRs. The SDR is world money, controlled by the International Monetary Fund (IMF), backed by nothing and printed at will. Once the IMF issues an SDR, it sits in the reserve accounts of the recipient country like any other reserve currency. This would be the preferred option for the global vampire squid on the face of humanity.

 

SDRs satisfy the traditional definition as a ‘store of value’ because nations maintain part of their reserves in SDR denominated assets. They are a ‘medium of exchange’ because nations can settle their local currency trade balances with other nations in SDR-denominated instruments. Finally, SDRs are a ‘unit of account’ because the IMF keeps its books, assets and liabilities in SDR units. What is different is that citizens and corporations cannot use them yet. But plans are in the works to create such a private market.

 

SDRs are defined as a basket of other currencies such as dollars and Euros. However, the amount of issuance of SDRs is not limited to any amount of underlying currencies in the basket. Those underlying currencies are used to calculate value but not to limit quantity – SDRs can be issued in potentially unlimited amounts (much like the US dollar is today). Also, the basket of currencies can be changed at any time. Currently the IMF is working to change the basket so as to reduce the role of the US dollar and increase the role of the Chinese Yuan by doubling the voting rights of China.

 

The IMF created the SDR in 1969 at a time of international monetary distress and several issues were distributed between 1969 and 1981. After that, no SDRs were issued for the next 28 years. The original SDR was valued using a weight of gold. The gold SDR was abandoned in 1973 and replaced with the paper SDR currency basket still in use today.

 

In 2009 the world again faced an extreme liquidity shortage from losses incurred in 2008. The greedy international monetary elite needed money so they went to the 1970s playbook to find some. This time the effort was directed not by the parasitic players in the IMF but by the power mad elite in the G20 using the IMF as a tool of global monetary policy. Hundreds of billions of dollars worth of SDRs have already been pumped into the system with little notice by the mainstream media.

 

Dollars, Euros and Yuan will not disappear under this new SDR currency regime, rather they will still be used in purely domestic transactions. However, on globally important transactions such as trade invoicing,  international loan syndicates, bank bailouts and balance of payments settlements, the SDR would be the new world money with the dollar playing a subordinate role, subject to the dictates of the power and money mad G20 elite.

 

The IMF is currently positioned to perform the two key functions of a true central bank – money creation and lender of last resort – using the SDR as its form of money under the direction of the G20 as its de facto board of governors. The vision of the creators of the SDR in 1969 is now coming to fruition. The day of the global central bank is upon us.

 

On January 7, 2011 the IMF published a paper entitled “Enhancing International Monetary Stability – a Role for the SDR,” which presented a blueprint for the creation of a liquid SDR bond market, the antecedent to replacing the dollar as the reserve currency with SDRs. The study is optimistic about the speed and stealth with which this could be accomplished. “Experience… suggests the process may be relatively fast and need not involve significant public support,” it states. And the IMF took no pains to disguise its intentions, explaining, “These securities could constitute an embryo of global currency.” The paper also lays out a schedule for SDR money printing, suggesting that $200 billion per year of the new SDR issuance would get the global economy off to a good start.

 

One group of multinational economists and central bankers guided by Nobelist Joseph Stiglitz, has suggested that SDRs could be issued to IMF member countries and then deposited back with the IMF to fund its lending programs. This would accelerate the IMF’s ascension to the role of global central bank even more quickly than the IMF itself has proposed.  Adding the role of depository to the already implemented roles of currency issuer and lender of last resort would make the IMF a global central bank in all but name.

This would leave the US dollar and the Federal Reserve in a subordinate position by default giving power directly to the true powers of the world – the G20 and the 1%. Here is the greedy elite’s answer to the collapse of the dollar.

 

Best of all, from the IMF’s perspective, there would be no democratic oversight or accountability on its money printing operations. The IMF is explicit in its antidemocratic leanings, what it calls “political considerations.” The SDR blueprint calls for the appointment of an “advisory board” to provide direction regarding the amount of money printing in the new system. These “experts” will be chosen from the economists and central bankers that created the world economic crisis through their efforts to enrich themselves.

 

They will be selected without public hearings or press scrutiny that mark a democratic society and they will be able to operate in secret once appointed. To many of the powers-that-be, this type of system is considered a much better alternative than the gold-standard.

 

In the end, the IMF’s plan for the SDR is an expedient, not a solution. It confronts the sequential failure of fiat money regimes by creating a new fiat money. It papers over the problems of paper currencies with a new kind of paper. But for now, the SDR is a strong contestant in the global currency sweepstakes.

 

<b>SDRs & Carbon Credits.</b> SDRs fit with carbon credits extremely well. At the December 2009 climate change conference in Copenhagen, billionaire George Soros helped draw attention to the means needed to generate resources for climate change: the use of SDRs, the “reserve assets” created by the IMF. 

 

Soros suggested that an immediate infusion of SDRs could create a US $100 billion “fast-start green fund” for climate financing which would fulfill the UN Secretary-General’s 2010 call for nations “to fundamentally transform the global economy — based on low-carbon, clean energy resources.”  Eventually, SDR reserves could be used as a backing for national carbon ‘currencies’.

 

As is apparent, climate change has emerged as an important theme for investors in recent years as evidenced by the growing numbers of shareholder resolutions related to climate change, the significant increase in renewable energy investments and the huge growth in the value of the carbon emissions markets. Carbon soon will become the world’s biggest commodity market, and it could become the world’s biggest market overall.

 

Rapid growth in carbon credits is expected over the next ten years. Barclays Capital has forecast 42% growth in the value of carbon credits by 2012. Considering the sheer force of global banking giants behind carbon trading it’s no wonder analysts are already predicting that the carbon market will soon dwarf all other commodities trading.

 

 If the rotten, wealthy elite can regulate carbon, they will basically have a way to monitor and control people’s entire lifestyles, or certainly the part that involves the use of oil, gas, etc. The modern system of carbon credits/currency was an invention of the Kyoto Protocol and started to gain momentum in 2002 with the establishment of the first domestic economy-wide trading scheme in the UK. After becoming international law in 2005, the trading market is now predicted to reach $3 trillion by 2020 or earlier. Graciela Chichilnisky, director of the Columbia Consortium for Risk Management and a major designer of the carbon credit text of the Kyoto Protocol, states that the carbon market “is therefore about cash and trading – but is also a way to a profitable and [supposedly] greener future.”

 

Who are the “traders” that provide the open door to all this profit? Currently leading the pack are JP Morgan Chase, Goldman Sachs and Morgan Stanley with Barclays and Merrill Lynch close behind. Technocrac y and energy-based accounting are not idle or theoretical issues. If the zombie elite intend for a carbon currency to supplant national currencies, then the world economic (and political) systems obviously need to be fundamentally changed.

 

The economics of non-growth are radically different than capitalist “growth at any cost” economics. In an era of non-growth the focus of the game will be on the consumption side of the economy. The game will be aimed at controlling the necessities of life: access to food and energy.

 

Population creates the demand for the necessities of life; the bankers and financiers intend to control the supply one way or the other. That’s why many of them are all about carbon taxes and carbon credits/currency.  Everything will have a carbon value based on the energy it took to produce it and bring it to market.

 

Under the current economic system, social upheavals fuelled by worsening poverty levels, unemployment and grossly unjust wealth distribution will continue throughout the world, including the USA. Thus, as far as global warming goes, the global economy will enter a zero growth mode with the economic driver shifting from the growth expansion/production paradigm to consumption contraction. A ‘Carbon Currency’ scheme might very well be the key that opens the way to full societal control. The environmental factor has, as one of its virtues, that of being beyond the control of any one nation-state and thus justifies full global control by world governing entities.

 

<b>SDRs & Carbon Offsets.</b> Carbon offsets, being the next huge market, and ‘new dollars’ based on a carbon currency/credits, held primarily by greedy, power mad, psychopathic right-wingers will allow the capitalist game to continue. These low-life’s will continue to create wars, vast poverty, destroy people’s lives and create unneeded suffering and death.

 

In terms of propaganda, this carbon currency/credit regime is being sold as a solution to global warming and peak oil. The campaign has been very successful and much of the environmental movement has been captured by it. In Copenhagen, demonstrators confronted police with signs in support of carbon taxes and carbon credits.

 

It is possible that once the dollar crashes  more people will be frightened into demanding solutions, and carbon currencies/credits are waiting in the wings as an option to become the ‘new dollar’. It doesn’t matter to the bankers and financiers if climate change is real or not. It’s about micromanaging every aspect of a person’s life, profit, and control of the economy. If the folks who ran things actually cared about sustainability they’d be investing in mass-transit, shifting agriculture from petroleum-intensive, water-intensive methods to sustainable methods, etc. Instead, they create bio-fuels and electric cars.

 

With food prices linked to energy prices and agricultural land being converted from food to fuel production, the result can only be an increase in third world starvation. Depopulation has long been a stated goal in power mad elite planning and genocide through imposed poverty is already a model being pursued successfully in Africa, and biofuels are systematically expanding the process.

 

As with every currency, the bankers will want to manage the scarcity of carbon currency/credit. This is where global warming can be exploited by the rich. Carbon currency/credits can be kept artificially scarce despite resources available. Carbon budgets, based on directives from the IMF world central bank, will set the scale of economic activity. 

 

Expect carbon currency/credits to be proposed as an enlightened progressive solution to the crisis of a collapsing dollar. A currency linked to something real and to sustainability. The old monetary system will be demonized and discredited.

 

The SDR solution is being strongly promoted by many zombie global elites in the G20 finance ministries and IMF executive suites. Yet, to the extent that it simply replaces national paper currencies, it risks its own rejection and instability in time. This is fine with the vampire elite as the currency is easily manipulable and moves wealth up to the already rich and disgusting.

 

Culturally, a post-capitalist era will be a lot like medieval Europe of which the Polish-Lithuanian is a prime example, with the ‘Aristocracy of Purpose’ on top and the rest peasants and serfs.

 

A clearly defined upper and lower class will develop. Only the new upper class will be entitled to access substantial carbon credits. Wealth will be measured by entitlements more than property or earnings. Those outside the bureaucratic hierarchies are the serfs (you and me), with subsistence (if that) entitlements.

 

Within the bureaucracies, entitlements will be related to rank in the hierarchy. Those in the global institutions will have unlimited access to carbon credits/currency. The flow of entitlements will flow downward – the old “trickle-down” again – from the top. It will be a welfare economy from national governments to individuals, a regimentation of consumption.

 

And all the major mainstream media outlets will be carefully programmed with escapist trivia, group think pseudo-news, alarmism, and other circuses. Everything heard or read, either on the TV, newspaper, or the internet, will be highly sanitized and directed.

 

The focus on control over consumption, resources, and distribution has caught the elite’s attention. An acknowledgement of energy limits is now part of the geopolitical system. The recognition of a ‘growth paradigm’ as being no longer viable is coming to the fore.

 

Whether a gold-standard or SDR backed currency wins out, nation-states will continue to exist as official units of governance. Security and policing will be centralized and privatized. Like the Roman Legions, the security apparatus will be loyal to the center of empire (the IMF, G20, World Bank, etc.) not to the place where someone happens to be stationed. This trend is obvious in the US as mercenaries have become big business and police forces are increasingly federalized, militarized and alienated from the citizenry.

 

And the last option: Chaos. Chaos followed by something worse. The collapse of the dollar might be part of an even larger collapse of civilization. The above, gold-backed dollars or SDRs, including a collapse, are possibilities to the coming catastrophe. Whichever one wins out, rest assured that you will be one of the losers.

 

<b>What can be learned from this?</b>

 

Awareness of history motivates the rotten, vampire wealthy elite against nation-states. Otherwise, as shown by the Polish-Lithuanian example, large scale criminal enterprises (magnates & CEOs) usurping control of nominally democratic institutions would, undoubtedly, fail. A world criminal class cannot have nominally democratic institutions stand in their way.

 

Recently we have seen government buildings and responsibilities auctioned off for pennies on the dollar - what is called ‘privatization’. This includes the privatization of prisons; paid ‘for profit’ armies (Kellogg, Brown and Root, Xe, etc.); privatization of education, energy and most services that were once delivered via government. These enterprises are all being sold to modern day magnates – extremely greedy, power mad, corporate CEO scum and parasitic banksters.

 

We are now into the next step beyond globalization. Into an earth divided up into feudal fiefdoms owned and controlled by corporations and their CEO’s. A world with one currency, a world with a minimalist government in each fiefdom to settle trade issues and to pacify their populations with slogans of “Hope” and “Change.”

 

So, this is what we have to look forward to: being ‘owned’ by a corporate CEO in some nominal ‘nation-state’. People will have the prevailing CEO’s version of religion forced upon them in each fiefdom. Since most extremely powerful, right-wing nut-bags are the adherents of religious cults and of extreme interpretations of various religions, they will lavish resources on ‘defense of the faith.’ While they will not be able to force the majority to conform to the entirety of their doctrine it will still leave them with the ability to impose their version of religious law, such as Christianity or Shariah law, on the people.

 

A complete lack of any objective ‘rule of law’, that is, the immunity from criminal law by corporations, CEO’s and their Executive staff, will insure the continuation of anti-social, psychopathic, anti-humanity and anti-earth actions by the rotten, power mad elites. Obviously the citizenry will see corporate CEO’s enjoying total impunity for whatever crimes they wish to carry out and will wish to either emulate them or rebel against them.

 

The loss of ‘freedom of speech’ via the criminalization of dissent along with the inability of people to ‘petition the government for redress of grievances’ will ensure that the 1^st Amendment to the US Constitution will be completely eviscerated. In this way all will become part of Marx’s “disposable industrial reserve army,” with eroding economic resources, dwindling legal status, no enforceable human rights, eventually becoming merely “killable bodies” as Giorgio Agamben terms it.

 

Remember, the type of economic system that is being created via a World Government, based on private power, was in place, in Europe, up until the US declared its independence from Britain in 1776 only 200 some odd years ago! The historical example of the Polish-Lithuanian Commonwealth shows the direction that the world is being forced to adopt. A world of feudal lords with the world’s population their serfs.