Abundant Michael: 2012

How soveign collapse cascades down the supply chain to you

A skydiving student asked his instructor, "How long do I have to open my parachute?" The instructor replied, "The rest of your life." Preparing for collapse you have just as long!

 

This article The Joy of National Default by collapsologist Dmitry Orlov explain why sovereign debt may appear impossible for years then happen overnight, and the business, political and social collapses that may follow a financial one.

 

Sovereign debt default is not some sort of spring shower that passes and then the sun comes out again. If Korowicz is right (Trade-Off: Financial System Supply-Chain Cross-Contagion )—and he appears to have done his homework—then at some point what is now still a gradual process will lead to a sudden, irreversible, catastrophic disruption of daily life. (And looking at the reports coming out of Greece and Spain, imagining such a scenario no longer requires much of an imagination.) Korowicz does not have a lot to offer when it comes to practical adaptations to survive such a systemic breakdown, beyond stating the obvious, which I will repeat: “Initially the most exposed would be those with little cash at hand, low home inventories, mobility restrictions and weak family and community ties.” In other words, be prepared, and do your best to give yourself a chance.

 

Korowicz carefully goes through the process by which financial failure causes an instant breakdown in commerce. Cargos have to be financed. This is done by banks on opposite sides of the planet that are willing to grant and to honor letters of credit, which are paid once the cargo is landed. If letters of credit cannot be obtained, cargo does not move. In a crisis, banks mistrust each other, and denying letters of credit is one of the easiest ways for them to decrease their exposure to counterparty risk (the chance that the buyer's bank, which drew up the letter of credit, won't be able to make the payment). In turn, missing shipments mean empty supermarket shelves within days, idled production at factories due to missing components, standstills at construction sites and maintenance operations, hospitals running out of drugs and supplies and so on.

 

Within a week, local fuel inventories are depleted and transportation is disrupted. Modern manufacturing and distribution networks rely on a global supply chain and very thin, just-in-time inventories. High-tech manufacturing is most easily disrupted, because key components have just one or two suppliers, and little or no possibility for substitution. Experience of various disruptions (Japanese tsunami in 2011, Eyjafjallajökull volcano eruption in 2010) shows that the impact of a disruption does not scale linearly with its length but accelerates—and recovery takes disproportionately longer. Within a month or so the electric grid collapses due to lack of supplies and maintenance; it is probably at this point that recovery becomes impossible.

 

But even before that point the contagion will start to feed on itself. The region of negative feedback where homeostasis is maintained is surrounded by regions of positive feedback where the system is driven further and further from equilibrium. For example, “The financial system... would not just be collapsing because of unsustainable levels of debt-to-income, but because that income would be collapsing as production halted and its future prospects turned dire.” (p. 69) Nor would the economy of goods and services be spared similar degenerative processes: “One would expect a massive reorientation away from discretionary consumption towards primary needs—food, essential energy, medicine and communication.” (p. 62) As a result, many businesses would fail, further depressing demand, while maintenance would be deferred to the point where much of the infrastructure becomes non-functional.

 

[you only have to visit or read about Argentina's current situation to see where we are headed]

 

Much of that infrastructure is designed for a growing economy as well, and will become a millstone around our necks: in a shrinking economy, the fixed costs of existing critical infrastructure give rise to negative economies of scale, making extensive infrastructure unaffordable at any level. The global aspect of the global economy would be perhaps the fastest to disappear: citing the evolutionary economist Paul Seabright, Korowicz writes: “Trust between unrelated strangers outside their own tribal grouping cannot be taken for granted.” (p. 23) Trust between strangers builds up slowly but is lost rapidly. In a shrinking economy, “taking care of one's own” becomes more important than maintaining a trust relationship with strangers across the world.

 

The opposite viewpoint can be, and is expounded by Korowicz and others, but has the drawback of being rather highly intellectual and abstract, offering little that is experiential or intuitive. This makes the exposition less than optimally effective for many people. Most people look out the window and see cars driving around and people going in and out of banks and shops and offices. But to really understand what underpins the stability of this scheme we have to be able to see, with our mind's eye, a dynamic system that can maintain homeostatic equilibrium and recover from shocks when all of its parameters remain within a certain range.

 

Let's try a simple metaphor. Suppose you are sitting in the kitchen. On a saucer in the middle of the kitchen table is a pretty blue marble. You are in an earthquake zone. As tremors hit, the marble rolls around the saucer, but it never rolls out of the saucer. This is a dynamic system within its stability range. But then a bigger shock hits, a chunk falls out of the ceiling and smashes the saucer, the marble skitters off the table, rolls through the gap under the door, down the stairs, down the street, and falls into a storm drain. In other words, the system takes small shocks in stride, but big shocks destroy it completely. Where the dividing line between small and big shocks runs—nobody really knows, but that doesn't matter provided we know that the shocks are only going to get bigger. And we do know that.

 
Now let's tackle a bigger dynamic system: global finance. At this point in time, all of the highly developed economies are 1. very highly indebted and 2. are either shrinking or not growing. This is not a stable situation: “Because credit is charged at interest, credit expansion is required to service previously issued credit. In order for the issued credit-money to retain its value relative to goods and services in the economy, GDP must increase commensurate with credit-money expansion.” (p. 33) The end result of this process is national default. At this time, the fact that Greece is in some stage of national default is no longer controversial. Nor does it appear likely that the problems of Spain, Italy or Ireland can be sorted out.
 

Nor is it likely that growth will resume. First, there is the problem with natural resources, oil foremost among them. It is too expensive to allow growth, and it can't get any cheaper because the remaining marginal resources are, well, marginal—deep water, tar sands, shale oil and other dregs—and are expensive to produce. Second, there is a problem with levels of debt: too high a level of debt chokes off economic growth. Third, we are at a point now where it is not possible to stimulate growth: the latest figures are that it takes a 2.3-fold increase in debt to produce one unit of GDP growth. We have achieved diminishing returns with regard to growth: we need to dig a bigger hole in which to put all this debt, and are willing to go deeper into debt to do it, but no matter how fast we dig, the debt just keeps piling up next to the hole. The politicians still talk about growth, but it's a race to nowhere.

 

At 78 pages of scholarly, somewhat jargon-laden prose, Trade-Off: Financial System Supply-Chain Cross-Contagion by David Korowicz is not quick reading, nor is it light reading, but it is important reading. It puts a lot of definition to the concept of cascaded failure, in which financial collapse inexorably leads to political and economic collapse with no possibilities for arresting this process or even altering its course. This may seem like a terribly pessimistic message, and, indeed, it is hard to imagine that it would provoke a cheerful reaction in any sane person. But for those who feel that it is important to understand what is unfolding, Korowicz offers a large dose of realism. Still, a fair warning is called for: “Abandon all optimism all ye who enter here!”

Total citizen facial video tracking for total citizen control

Facial recognition video cameras in China, NYC and Disneyworld track your every move and can record years of movements and interactions for total control - now in 2012, not in the future 2050. This article on The new totalitarianism of surveillance technology in the UK Guardian newspaper

If you think that 24/7 tracking of citizens by biometric recognition systems is paranoid fantasy, just read the industry newsletters. After the Occupy crackdowns, I noted that odd-looking CCTVs had started to appear, attached to lampposts, in public venues in Manhattan where the small but unbowed remnants of Occupy congregated: there was one in Union Square, right in front of their encampment. I reported here on my experience of witnessing a white van marked "Indiana Energy" that was lifting workers up to the lampposts all around Union Square, and installing a type of camera. When I asked the workers what was happening – and why an Indiana company was dealing with New York City civic infrastructure, which would certainly raise questions – I was told: "I'm a contractor. Talk to ConEd."

 

I then noticed, some months later, that these bizarre camera/lights had been installed not only all around Union Square but also around Washington Square Park. I posted a photo I took of them, and asked: "What is this?" Commentators who had lived in China said that they were the same camera/streetlight combinations that are mounted around public places in China. These are enabled for facial recognition technology, which allows police to watch video that is tagged to individuals, in real time. When too many people congregate, they can be dispersed and intimidated simply by the risk of being identified – before dissent can coalesce...

 

Finally, last week, New York Mayor Michael Bloomberg joined NYPD Commissioner Ray Kelly to unveil a major new police surveillance infrastructure, developed by Microsoft. The Domain Awareness System links existing police databases with live video feeds, including cameras using vehicle license plate recognition software. No mention was made of whether the system plans to use – or already uses – facial recognition software. But, at present, there is no law to prevent US government and law enforcement agencies from building facial recognition databases.

 

And we know from industry newsletters that the US military, law enforcement, and the department of homeland security are betting heavily on facial recognition technology. As PC World notes, Facebook itself is a market leader in the technology – but military and security agencies are close behind.

 

According to Homeland Security Newswire, billions of dollars are being invested in the development and manufacture of various biometric technologies capable of detecting and identifying anyone, anywhere in the world – via iris-scanning systems, already in use; foot-scanning technology (really); voice pattern ID software, and so on.

 

What is very obvious is that this technology will not be applied merely to people under arrest, or to people under surveillance in accordance with the fourth amendment (suspects in possible terrorist plots or other potential crimes, after law enforcement agents have already obtained a warrant from a magistrate). No, the "targets" here are me and you: everyone, all of the time. In the name of "national security", the capacity is being built to identify, track and document any citizen constantly and continuously.

Details of US martial law 3-day take down plans "Rex 84"

How long would it take after a financial collapse or other disaster for the US government to implement full martial law with internment FEMA camps for dissidents? Only 3 days. Details in this report:

The US government has been scheming on how to provide for continuity of government for many decades now. According to Peter Santilli, an informant who is an ex-marine and worked on portions of the contingency plans known as Rex 84, civil unrest will come after a financial collapse.

 

The Readiness Exercise 1984, a.k.a. Rex 84, outlines continuity of government wherein the US Constitution is suspended, martial law is declared and the US military command take over state and local governments in order to ensure stabilization of our nation at any cost. Any American who is deemed a “national security threat” would be detained in an internment or FEMA camp.

 

The author of Rex 84 was Lieutenant Colonel Oliver North, National Security Council (NSC) White House aids and NSC liaison to FEMA. Rex 84 is the plan; the triggers are a series of executive orders . It is the continuity of government under specific contingency strategies that are laid out in various operations guide manuals. Operation Garden Plot is a subprogram of Rex 84.

 

Twice before, Rex 84 was implemented – during the LA riots and on 9/11. In these scenarios, only small portions of the entire set of documents were used. Within the series of contingency plans, implementation of them depends on the severity of the situation.

 

Some of the plans include internment camps where all or portions of the active or inactive military bases would be transformed into work camps where all considered to be dissonant would be held. The NORTHCOM army manuals clearly state that NATO forces will be used in every phase of the operation.

 

According to Santilli, procedures to move conventional, chemical and nuclear bombs across the nation without detection have been facilitated without notice by the US military. Back in 1986, during his military service where he was involved with weapons transportation, Santilli describes how an unmarked refrigerated trailer driven by a civilian driver was used to transport chemical or conventional weapons to various strategic bases both above and underground.

 

Santilli was a specialist in aviation deployed weapons, which made him the perfect candidate to the assignment of weapons transportation. The refrigerated truck, allocated by the administration department on base, was directed to the commissary, where the unsuspecting driver believed that he was transporting food. The weapon was placed at the head of the trailer, and covered up with either food stores (like cans of soup) or body bags. In the event that the truck is stopped en route, the weapon would be well hidden and go undetected by inspectors on the public highways.

 

A US Marine Corp bill of lading was the paperwork necessary to move the commercial refrigerated truck through weigh stations on public highways without any question. Santilli remembers that there was not one incident where he had to enact any security measures to ensure the delivery was made.

 

Santilli, who was assigned to ride in the cab of the truck with the driver, says that his orders were to make sure the truck arrived at its destination. He was informed by his superiors that if there were problems concerning potential civil unrest, he was to radio into his superiors for aid by either air or ground support. Should the situation warrant serious attention; crowd control methods would be implemented.

 

One possible scenario was the use of cluster bomb units (CBUs) that will emit upon detonation, a “sleep and kill” chemical weapon that will not disturb infrastructure, but is lethal to all living things within the effected zone. Santilli describes these particular 3 unit CBUs as shaped like water-heaters with a coned top and plunger-like device. Once deployed in the air, a parachute assists these CBUs to the targeted area. And when detonated, a deadly chemical gas will kill every human and animal in the specified cordoned area.

 

This is just one example, says Santilli, as to the lengths the US armed forces are trained to make sure continuity of government is preserved.

 

Santilli explained that the use of foreign troops on US soil, as described in Rex 84 and other subsequent manuals, would have a two-fold purpose. Firstly, to provide extra security in designated areas, cities or highways; and secondly, as scapegoats were violent action used against American citizens should the US military be directed to attack civilians.

 

The refrigerated truck, carrying the chemical or conventional weapon with Santilli riding shotgun travelled to underground bases like the one at Yuma Proving Ground which is a ammunitions testing range for pilots. Nestled underneath the ground is a secret military base.

 

Santilli explains that his knowledge of Rex 84 provides that within the document, one of the scenarios that would cause a complete suspension of the US Constitution, Bill of Rights and implement martial law would be a financial collapse. He says once the collapse occurs, the US government and defense agencies estimate they have a 72 hour window to activate all procedures to ensure continuity of government as well as a lockdown of the general population as civilian unrest, riots and outbreaks of violence are anticipated.

 

A source in the Deutsche Bank claims that in 2008 our financial and monetary system completely collapsed and since that time the banking cartels have been “propping up the system” to make it appear as if everything was fine. In reality our stock market and monetary systems are fake; meaning that there is nothing holding them in place except the illusion that they have stabilized since the Stock Market Crash nearly 5 years ago.

 

Since this time, the Department of Homeland Security (DHS) in conjunction with FEMA and other federal agencies have been quickly working to set in place their directives of control under a silent martial law.

 

The Deutsche Bank informant says that the cause for the bailout of the banks was a large sum of cash needed quickly to repay China who had purchased large quantities of mortgage-backed securities that went belly-up when the global scam was realized. When China realized that they had been duped into buying worthless securitized loans which would never be repaid, they demanded the actual property instead. The Chinese were prepared to send their “people” to American shores to seize property as allocated to them through the securitized loan contracts.

 

To stave this off, the American taxpayers were coerced by former President Bush and former US Treasury Secretary Hank Paulson. During that incident, the US Senate was told emphatically that they had to approve a $700 million bailout or else martial law would be implemented immediately. That money was funneled through the Federal Reserve Bank and wired to China, as well as other countries that were demanding repayment for the fraudulent securitizations.

 

To further avert financial catastrophe, as well as more debt or property seizure threats by the Chinese, the Euro was imploded there by plunging most of the European countries into an insurmountable free-fall for which they were never intended to recover.

 

All the money that those banks claimed they needed to avert collapse was also sent to the Chinese to add to the trillions of dollars lost during the burst of the housing bubble on the global market.

 

The only saving grace has been the US dollar being the global reserve currency. However, now this prop is showing signs of wear as foreign nations like China, Russia, India and Iran are dealing in gold as currency and purchasing gold on the market at an exponential rate.

 

In 1970, Henry Kissinger made a deal with the Saudi Arabian government that American debt would be purchased in exchange for cheap oil. Since then Iran has taken control over the Organization of the Petroleum Exporting Countries (OPEC) by their use of gold as currency which has threatened the direct value of the US dollar as the global reserve currency.

 

This scenario with Iran coupled with the massive leaps forward in US military presence on American streets and the emergence of FEMA camps across the nation pose an obvious turn of events and explains exactly why we are witnessing the silent implementation of martial law.

 

The war with Iran has to do with gold, its use as currency and its exposure of the central banking cartel’s lack of gold which defines a fiat currency’s worth. And right now, the US dollar is absolutely worthless.

 

The Deutsche Bank informant says that the financial collapse that happened in 2008 will be realized here in America very soon. Once that happens, there must be full implementation of marital law to control the potential riots and control over citizens that will be desperate to feed their families.

 

The attacks of recent on the 2nd Amendment play a significant role in attempting “amicably” to remove the possibility of civilian retaliation against the US military’s presence throughout the nation. However, if they cannot remove the guns from our hands in time, they will continue on with the guidelines set out in Rex 84 with directives to kill any dissenters that refuse to obey.


from http://www.globalresearch.ca/rex-84-government-silently-positions-for-martial-law-as-financial-collapse-arrives-in-america/32153

Why the war on drugs is a failure

The perpetual war on drugs not only is not being won, it is not designed to be won. The police, private prisons and the whole prison-industrial-drug complex benefit too much from it continuing. The drug war is "Our Children's Children's War" because unless we chose differently it will still be raging far in the future.

  • War Is Peace
  • Freedom Is Slavery
  • Ignorance Is Strength

(Newspeak slogans from George Orwell's 1984)

 

Appearing  on The Daily Show, filmmaker Eugene Jarecki explained how the “failed” war on drugs was fueled by corporate-interests. “It has to do with business,” he told Jon Stewart. “This country is finding, everywhere we look, we are seeing places where the extraordinary power of corporations in this country, and the unholy alliance they have with those in Congress, is destroying everything… There are private prisons all over this country that rely for their own survival on the incarceration of our fellow human beings.”

But Jarecki said even public detention facilities were part of the commercialization of prisons. “I went to prison-industrial trade shows where I saw people who literally make their entire life’s work out of selling you the better stun gun,” he explained. Jarecki’s latest documentary, The House I Live In, explores America’s war on drugs and the resulting mass incarceration. The United States imprisons more of its citizens than any country in the world, he noted.

 

“This has been such a disaster,” he said. “Forty-years, a trillion dollars spent, 45 million arrests, and yet drugs are cheaper, purer, more available today than ever before.”

Watch video, courtesy of Comedy Central, below:

 
http://www.thedailyshow.com/watch/tue-october-16-2012/exclusive---eugene-jarecki-extended-interview-pt--2  (7 min.)  - towards the end gives example of Portugal that very successfully decriminalized drugs 10 yrs. ago and put money into treatment which is far cheaper than the criminal system approach

Why People are acting crazy - magnetic field shifts

I have noticed some people acting weird and crazy this year. I read that the change in magnetic field that is occurring this year can affect peoples mental state. Apparently the Sun is very active right now and that affects the Earth's magnetic field which in turn affects people's mental state. A recent study published in New Scientist indicates a direct connection between the Sun’s solar storms and human biological effect. 

This article below is from the Arlington Institutes's Future edition April newsletter, which I recommend as a way to keep up with the increasingly rapid pace of change in earth shifts, technology, politics, societies and human development.

Unusual Sun and Earth Events

Some interesting things have been happening lately relative to both the sun and our planet. There seems to be a convergence of unusual energy from the sun and changes in the earth’s gravitational field that are spawning a series of unprecedented earth changes.

The sun has been doing some unusual things in the recent weeks. Big solar storms and phenomena never before seen (like tornadoes – see video here) are being seen. See videos here and here of flares of the last few days.

Physical and Emotional Implications

This recent intensive amount of solar activity is affecting both the Earth and Humans. Solar flares can affect the central nervous system, all brain activity, along with human behavior and all psycho-physiological (mental-emotional-physical) response.   An article on PreventDisease.com discusses How Solar Activity Is Influencing Human Consciousness

According to Mitch Battros – Earth Changes Media, “One of the best known prophecies/ predictions of our Mayan elders is the message of a changing paradigm of our era.  In the words of the Maya, it is said that we are now in a time of “change and conflict”.  The change is coming from the ‘outside’ in the way of weather, natural phenomena, celestial disturbance (sun flares) and manmade self-inflicted trauma.  The conflict comes from the ‘inside’ in the way of personal challenge, grief, bewilderment, depression, anxiety, and fear.  It is said we are “at the cross roads”: a time of choosing a new path, deciding on a new self and community direction, venturing into the unknown, finding our true identity of being.  Others will choose to stay on the same road, stay with the familiar, and place great effort to maintain “predictability.”

A recent study published in New Scientist, indicates a direct connection between the Sun’s solar storms and human biological effect.  The conduit which facilitates the charged particles from the Sun to human disturbance is the very same conduit which steers Earth’s weather through the Magnetic Field on Earth, and also through the magnetic fields around humans. 

“Solar flares can cause us to be nervous, anxiousness, worrisome, jittery, dizzy, shaky, irritable, lethargic, exhausted, have short term memory problems and heart palpitations, feel nauseous, queasy, and to have prolonged head pressure and headaches. Do you have any of the above lately?”

Heather Carlini from the Carlini Institute for Therapy, Research and Transpersonal Education also thinks that these energy bursts from the sun are causing significant physical and emotional changes in humans.

“Let’s look at the symptoms that are being reported.  I have to say that many who wrote me felt they couldn’t tell others around them about the symptoms they were experiencing for fear of others thinking they were crazy. Little do they know that people all over the world were experiencing the same symptoms at the same time.  Many wrote of going to doctors for a battery of tests only to have them come back negative.  I am included in this as I also had the same thing happen to me twice.

“I am hearing about people experiencing head pressure, headaches, migraines, the inability to think straight, losing words in the middle of a thought (that’s me) ?, and ringing in the ears.  Our hypothalamus and pituitary glands tune into this new frequency coming in from the solar flares, and within each of our cells there are receptors in the protein channels that pick up vibrations from the outside.

“Many of my readers reported feeling exhausted, which is the body’s way saying it needs rest to process all this incoming energy.  We are intimately connected to this change in frequency and more and more people are becoming intuitively aware of this as well.  It feels as if time is speeding up. Many people have new intuitive abilities waking up, which I also discuss in detail in my new book.”

The massive expulsions of material and magnetic energy from the sun distorts the earth’s magnetosphere which, in turn, “pressures” the earth such that there appears to be a direct relationship between significant storms on the sun and earthquakes and volcanoes which show up here 12-36 hours later. For example, there were a number of these big solar storms the day before the big earthquake off of the coast of Japan a year ago which generated the extraordinary tsunami that caused so much damage and pain. See this rather amazing summary of the more than 12,000 earthquakes that attended that event.

It’s not just earthquakes and volcanoes; scientists believe that all of this energy is generating the unusual sounds that are being heard at various places around the world.

It's called the American dream, because you have to be asleep to believe it

Before comedian George Carlin died he told the truth about the American Dream in this 3 minute spot

"The politicians exist to give you a reason you have a choice. You don't. You have owners. They own you... they got you by the balls... they want obedient workers... it's a big club, and you ain't in it!... the table is tilted, the game is rigged... it's called an American dream, because you have to be asleep to believe it."

- George Carlin

 

How far with we go to preserve the Petrodollar?

  This is an interesting article that covers the potential reasons for all the US wars in the last 20 years, including the coming war with Iran. If even only some of the items in this article are true it is going to make you question your own current reality and the upcoming election. Personally I think most or indeed all of the items in here are true based on extensive research of my own and others that I trust. Warning: you might not be the same after reading this material. It is not something that the main stream news covers in depth (see below for why that is) even though you can find key pieces of the story on CNN and other sites, but the full story is covered on many alternative internet sites and newsletters. Think for yourself: "Who benefits?"

 

 

If you have never heard of the petrodollar, don’t be surprised. Mainstream media avoids this subject for a good reason. If this information was ever to become public knowledge, politicians would find it next to impossible to convince American people to support any more wars. Public approval of wars is only possible as long as people remain ignorant of the primary driving force behind our foreign policy. The reason you haven’t heard of the petrodollar system is because our government wants you to think that we start wars to spread freedom and democracy.
[The short video below summarizes this article and includes the quoted interviews with  Nixon, Albright and Clark from the article.]

However, if you want to distinguish truth from propaganda, if you want to know the real reasons behind the global conflicts in our recent history, you must first learn about the petrodollar system. Without this crucial piece of info, you will have a hard time understanding what really happened in Libya, what’s happening in Syria right now and what’s going to happen in Iran next.

 

Why did NATO and the U.S. aid Libyan “rebels” in killing Gaddafi? Why was our government willing to support and arm the same terrorists that would later turn on our embassy and murder US Ambassador to Libya, Chris Stevens? Why was killing Gaddafi so absolutely imperative?

 

Why are we now doing the same thing in Syria? Why are U.S. operatives currently on the ground in Syria aiding Al Qaeda to topple Assad? Why are we willing to work along side known terrorists just to destabilize Syria and overthrow the regime there?

 

Why are we willing to risk World War 3 by attacking Iran, a key ally to Russia and China? Pakistan and North Korea already possess a nuclear stockpile, but Iran is years away from developing a nuclear weapon. Iran has no military capability to target the U.S. and it has not attacked another country since 1798. Yet the media is trying to convince us that we are weeks away from Ahmedinajad unleashing his non-existent weapons of mass destruction. Sound a little familiar? Have we heard this before, maybe? (Hint: Another war with a country who's name begins with Ir**)

 

So what is the petrodollar system and why is it so important? Why is the United States willing to trigger a new world war just to maintain the hegemony of the petrodollar? To get a proper perspective we need to start with a quick historical background:

 

Bretton Woods Conference

Bretton_Woods

In July of 1944, as World War II was still raging, 730 delegates from all 44 Allied nations gathered in Bretton Woods, New Hampshire, to setup institutions and procedures to regulate the international monetary system and to establish the rules for commercial and financial relations among the world’s major industrial states.

 

The Bretton Woods Agreement established the dollar as the world’s reserve currency, which meant that international commodities were priced in dollars. The agreement which gave the United States a distinct financial advantage, was made under the condition that those dollars would remain redeemable for gold at a consistent rate of $35 per ounce. The fixed dollar to gold convertibility rate established a stable platform for global economic growth.

 

As the issuer of the world’s reserve currency, the United States promised to print dollars in direct proportion to its gold reserves. However, this promise was based on “the honor system” since the Federal Reserve refused to allow any audits or supervision of its printing presses.

The U.S. defaults on its obligation to convert dollars to gold

In the years leading up to 1970, expenditures on the Vietnam war made it clear to many countries that the U.S. was printing far more money than it had gold. In response to this and the negative U.S. trade balance, nations began demanding fulfillment of America’s “promise to pay” – that is, the redemption of their dollars for gold. This of course set off a rapid decline in the value of the dollar. The situation climaxed in 1971 when France attempted to withdraw its gold and Nixon refused.

On August 15, President Nixon made a televised announcement
referred to as the Nixon shock, stating the following:

 

“I have directed the Secretary of the Treasury to
take the action necessary to defend the dollar
against the speculators. I have directed Secretary
Connolly to suspend temporarily the convertibility
of the dollar into gold or other reserve assets,
except in amounts and conditions determined to be
in the interest of monetary stability and in the
best interest of United States.”

 

This was obviously not a temporary suspension as Nixon claimed, but rather a permanent default. For the nations of the world who entrusted the United States with their gold, this action was outright theft. Overnight, dollars transformed into fiat currency and the Federal Reserve was now free to print away. By abandoning the gold standard, the U.S. government removed all restrictions from the Federal Reserve. However, the ability to print money out of thin air comes with a pitfall. This is because each new printed dollar devalues the existing money supply already in circulation. That is unless there is a growing demand for dollars to counterbalance the newly issued currency. So, under the direction of the Secretary of State Henry Kissinger, a brilliant political and economic idea was soon devised referred to as the petrodollar system.

The birth of the petrodollar leads to global domination

In 1973, President Nixon promised King Faisal of Saudi Arabia that the US would protect Saudi Arabian oilfields from any and all invaders. In return, Saudi Arabia and by extension OPEC, agreed to sell their oil in US dollars only. Essentially, this meant that all countries purchasing oil from OPEC had to do so in US dollars, or ‘petrodollars’. This forced the world’s oil money to flow through the US Federal Reserve, creating ever-growing international demand for U.S. dollars. As if that weren’t sweet enough, as part of the deal, OPEC countries were required to invest their profits in US treasuries, bonds and bills. This strengthened the US dollar, resulting in a steady US economic growth.

While other countries exchanged their currency for the dollar (forfeiting value in the process), the U.S. simply printed more money to match their needs and purchase their oil – essentially for free. Of course rather than exchange currencies, many countries focused on exporting goods to the U.S. to maintain their constant supply of the Federal Reserve paper. Paper went out, while everything America needed came in and in the process the United States got very, very rich. It was the largest financial con in recorded history.

 

As the coffers got fatter and fatter, the U.S. military machine continued to expand at an accelerated rate. The arms race of the Cold War was a game of poker. Military expenditures were the chips and the U.S. had an endless supply of chips. With the Petrodollar under its belt, the U.S. was able to raise the stakes higher and higher, outspending every other county on the planet. Until, eventually, U.S. military expenditure surpassed that of all other nations in the world combined. The Soviet Union never had a chance.

 

The collapse of the Communist block in 1991 removed the last counterbalance to America’s military might. The United States was now an undisputed super power with no rival. Many hoped that this would mark the beginning of a new era of peace and stability. Unfortunately, there were those in high places who had other ideas.

Petrodollar system must be maintained at any cost

That same year, the U.S. invaded Iraq in the first Gulf War. And after crushing the Iraqi military and destroying their infrastructure, including water purification plants and hospitals, crippling sanctions were imposed on Iraq, which prevented its infrastructure from being rebuilt. These sanctions, which were initiated by Bush Sr. and sustained throughout the entire Clinton administration, lasted for over a decade and were estimated to have killed over 500,000 children. The Clinton administration was fully aware of these figures.

Excerpt from a May 5, 1996 interview:

Lesley Stahl from 60 Minutes show, asks Secretary of State
Madeleine Albright about the U.S. sanctions against Iraq:

“We have heard that a half million children have died.
I mean, that’s more children than died in Hiroshima.
And, you know, is the price worth it?

Secretary of State Madeleine Albright replies:

“I think this is a very hard choice,
but the price–we think the price is worth it.”

What exactly was it that was worth killing 500,000 kids for? Let’s see if you can spot a pattern here.

Iraq… In November 2000, Iraq began selling its oil exclusively in euros. This was a direct attack on the petrodollar and it wasn’t going to be tolerated. In response, the U.S. government with the assistance of the mainstream media began to build up a massive propaganda campaign, claiming that Iraq had weapons of mass destruction and was planning to use them.

 

In 2003, the U.S. invaded Iraq. Once the U.S. had control of the country, oil sales were immediately switched back to dollars. This is particularly notable due to the fact that switching back to the dollar meant a 15-20% loss in revenue due to the euro’s higher value. It doesn’t make any sense at all unless you take the Petrodollar into account.

Excerpt from a March 2, 2007 DemocracyNow interview:

So I came back to see him a few weeks later and by that time we were bombing in Afghanistan. I said “Are we still going to war with Iraq?” and he said, “Oh, it’s worse than that”, he reached over on his desk, picked a piece of paper and he said:

“I just got this down from upstairs today (meaning secretary of defense office) today. This is a memo that describes how we’re going take out 7 countries in 5 years, starting with Iraq and then Syria, Lebanon, Libya, Somalia, Sudan and finishing of Iran.”

– Wesley Clark, Retired 4-Star General and Supreme Allied Commander Europe of NATO from 1997 to 2000

 

Libya… Muammar Gaddafi harbored the Lockerbie Bombers and allowed various terrorist organizations establish training camps in Libya. He tried to buy a nuke from China in 1972. In 1977, he approached Pakistan, then India. He sought nerve gas from Thailand. Then he did something totally insane. Gaddafi decided to move away from the petrodollar in favor of a gold-based currency. Seeking nukes and harboring terrorists is one thing, but threatening the petrodollar is quite another. Within a year, ‘internal’ elements rose up in rebellion against Gaddafi. After taking control of the region, U.S. and NATO armed rebels executed Gaddafi in cold blood and immediately setup the Libyan Central Bank.

Iran… In 2005, Iran sought to create an Iranian Oil Exchange, thus bypassing the US controlled petrodollar. Fear that western powers would freeze accounts in European and London banks put an end to that plan. More recently however, Iran was able to secure agreements to begin trading its oil in exchange for gold. In response, the U.S. government, with mainstream media assistance has been attempting to build international support for military strikes on the pretext of preventing Iran from building a nuclear weapon. In his recent State of the Union address, Obama went as far as to say that when it comes to Iran and the insistence they dismantle their nuclear program, “no options are off the table”. By stating ‘no options’ this would include nuclear deployment as a deterrent. In the meantime, the U.S. established sanctions that, U.S. officials openly admit, are aimed at causing a collapse of the Iranian economy.

 

Syria… Syria is Iran’s closest ally and they’re bound by mutual defense agreements. Syria is currently being destabilized from within by the “Free Syrian Army” (FSA), in its intensifying effort to topple Assad. It is a well known fact that FSA consists of multiple terrorist factions from Afghanistan to Chechnya, most notably Al Qaeda. Yet this is not stopping United States or NATO from providing covert assistance to FSA. Despite warning from Russia and China to the United States, the White House has made statements within the past month indicating that the U.S. is considering military intervention.

 

However, it should be clear, that military intervention in Syria and Iran isn’t being considered. It’s a forgone conclusion, just as it was in Iraq and Libya.

World War 3: a calculated risk to preserve the petrodollar

The U.S. is actively working to create the context which gives them diplomatic cover to do what they already have planned. The motive for these invasions and covert actions becomes clear when we look at them in full context and connect the dots.

 

The petrodollar paradigm is saving the dollar from crashing by accomplishing two things. First, it creates a mandatory international demand for the Federal Reserve paper, preventing dollar inflation from going into hyperinflation. Second, the oil profits from OPEC pay for a portion of our ever expanding national debt, helping perpetuate a giant Ponzi scheme in the U.S. treasury market. Those who control the United States understand that even if only a few countries begin to sell their oil in another currency it will set off a chain reaction and the dollar will collapse. They understand that there’s absolutely nothing else holding up the value of the dollar at this point, and so does the rest of the world.

World War 3

But rather than accepting the fact that the dollar is nearing the end of its lifespan, the powers that be have made a calculated gambit. They have decided to use the brute force of the U.S. military to crush each and every resistant state in the Middle East and Africa.

 

That, in and of itself, would be bad enough. But what you need to understand is that this is not going to end with Iran. China and Russia have stated publicly and in no uncertain terms that they will not tolerate an attack on Iran or Syria. Iran is one of their key allies, one of the last in independent oil producers in the region. And they understand that if Iran falls, then they will have no way to escape the dollar without going to war. And yet, the United States is pushing forward despite the warnings.

 

What we’re witnessing here is a trajectory that leads straight to the unthinkable.
It’s a trajectory that was mapped out years ago, in full awareness of the human consequences.

Who Is Pulling The Strings?

But who was it that put us on this course? What kind of psychopath is willing to intentionally set off a global conflict that would lead to millions of deaths just to protect the value of a paper currency?

 

It obviously isn’t the president. The decision to invade Libya, Syria and Iran was made long before Obama had risen to the national spotlight. And yet he’s carrying out his duty just like the puppets that preceded him. So who is it that pulls the strings?

Often the best answer to questions like these are found by asking another question. Cui bono? Who benefits

 

Obviously, those who have the power to print the dollar out of thin air have the most to lose if the dollar was to fall. Since 1913, that power has been held by the Federal Reserve.

 

The Federal Reserve is a PRIVATE entity, owned by a conglomerate of the most powerful banks in the world. And the men who control those banks are the ones who pull the strings. To them, this is just a game. Your life and the lives of those you love are just pawns on their chess board. And like a spoiled four year old who tips the board on to the floor when he starts to lose, the powers that be are willing to start World War III to keep control of the global financial system.

 

Remember this when these wars extend and accelerate. Remember this when your son or your daughter comes back home in a flag draped coffin. Remember this when they point the finger at the new boogeyman.

So, what can we do about all this?

Today’s Geo-political climate, coupled with the desperation of the banking cartel to save the petrodollar, makes World War III a legitimate concern more than ever. If we’re lucky enough, maybe we will avoid a global military showdown between Russia, China and the West. But, we cannot avoid an economic collapse, regardless of whether WWW III is triggered or not. This is because no matter how many Mideast regimes we topple, we simply cannot stop China and Russia from dropping the dollar in the near future. Both of these countries have already signed significant agreements purposed to move them away from the dollar. Despite the best efforts of the banking cartel to preserve the petrodollar, this paradigm is starting to crumble.

 

So what can we do about all this? First, let’s admit the obvious. The power to prevent any of this is not in our hands. But, at the same time, we don’t have to just sit idly while the dollar is circling the drain. There are specific things we can and should do.

media control

1. GET THE FACTS

Critical thinking and common sense are in decline these days. Rather than just swallow what we’re fed by the mainstream media, we need to question it. Most people are just unaware that 90% of all American media is controlled by six global conglomerates that also hold assets in the military complex and oil industry, and are interconnected with major banking interests.

 

Read both of the articles linked below and make sure to watch the videos on those pages. Crosscheck the info in these articles to make sure the facts are accurate.

a) Click here to see why the coming economic collapse is a mathematical fact.

b) Click here to see why “Obama vs Romney” is an illusion of choice.

 

The first article will convince you just how deep of a hole we’re in. The second will help you understand that we can’t depend on the government to get us out of this mess.

 

2. SPREAD THE TRUTH

Individually we are ineffective. But together we have a chance. The powers that be count on the sheeple to be asleep. They also count on our willful ignorance, because they know that rather than accept the unpleasant reality, people readily deny the obvious.

Still, the internet gives us a distinct advantage over the system. Social media makes it possible for information to spread among millions of people in a matter of days. We need to make articles and videos like this go viral by Tweeting, posting on Facebook, emailing everybody we know, posting on forums, etc. You can do your part right now by using some of the social media icons on this page.

 

 

3. GET READY NOW

There’s a ton of online resources on this subject. Sometimes the information is helpful and practical, and other times it’s outdated or incomplete. Also, beware of the sites out there that try to scare the crap out of you just to sell you their eBooks on emergency preparedness. Still, if you take your time, you can find lots of good info online.

 

With that said, we are currently working on a free “how to” guide with an easy to follow step by step action plan. It will outline practical but critical actions you should take right now to get ready for the ensuing chaos, along with financial advice to safeguard whatever savings you may have. FYI, CrisisHQ.com does not sell gold or bunkers or anything else for that matter. Our single mission is to help you be prepared instead of scared.

 

To be notified when we publish the article on “How to prepare for the coming crisis,” please subscribe to our article notification list using the form in the box on the right. We hate spam just as much as you do, so we don’t sell or share your email or ever send out spam. Your info is kept absolutely private and safe.

 

Please share this page and video with all your friends. Email it, Tweet it, post it on Facebook and online forums.

from http://www.crisishq.com/why-prepare/world-war-3-preserving-petrodollar/

World War III: the unthinkable cost of preserving the petrodollar As noted by many of our readers, one of the key topics omitted from our article on the inevitability of economic collapse was the petrodollar system. Due to its significance, we felt that this subject deserves its own article. If you have never heard of the petrodollar, don't be surprised. Mainstream media avoids this subject for a good reason. If this information was ever to become public knowledge, politicians would find it next to impossible to convince American people to support any more wars. Public approval of wars is only possible as long as people remain ignorant of the primary driving force behind our foreign policy. The reason you haven't heard of the petrodollar system is because our government wants you to think that we start wars to spread freedom and democracy.

However, if you want to distinguish truth from propaganda, if you want to know the real reasons behind the global conflicts in our recent history, you must first learn about the petrodollar system. Without this crucial piece of info, you will have a hard time understanding what really happened in Libya, what's happening in Syria right now and what's going to happen in Iran next.

"Believe me, the next step is a currency crisis
because there will be a rejection of the dollar,
the rejection of the dollar is a big, big event,
and then your personal liberties
are going to be severely threatened."

~ Ron Paul

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