from Homeland Stupidity

You have maybe two months to stock up on the necessities of life before food prices rise dramatically, potentially prompting a food panic, widespread famine, and quite possibly the long-expected collapse of the U.S. economy.

Farmers across America and in many other parts of the world are calling 2009 the worst harvest they’ve ever seen in their lives, owing largely to extended bouts of bad weather. At the same time the U.S. Department of Agriculture is officially forecasting bumper crops, while close to three-fourths of the country’s farmland is in areas declared eligible for federal disaster assistance due to failed crops.

A popular farmers’ Web site is chock full of stories of entire crops of soybeans rejected for moisture damage, long delays in harvesting corn only to find out the corn is moldy, damaged or too light to be used as animal feed or even ethanol, and farmers unsure if they’ll even have a farm for another year due to the losses they’ve taken.

Most agricultural products are purchased in futures, which are promises to deliver a quantity of a commodity at a future date. Futures carry many risks, prominent among them the possibility that the commodity simply won’t be available at the promised delivery date. While futures prices are set by the market, some of the information used to set the prices comes from the USDA’s World Agricultural Supply and Demand Estimates reports. The unrealistic 2009 bumper crop predictions in its recent reports, which may have seemed reasonable months ago before 2009’s long string of bad weather but which USDA has failed to revise, drove futures prices artificially low.

But grain futures prices have already risen well above the USDA’s latest projections as the corn harvest threatens to drag on into March in some areas of the country, thanks to an unusually wet 2009 and unprecedented fall flooding in the Midwest.

The good news is that even with 2009 being the worst harvest in human memory, there will still be plenty of food in the U.S. to feed everyone in the U.S. The bad news — if you’re in the U.S. — is that the food won’t be used to feed everyone in the U.S.

It seems China has finally figured out what to do with all the U.S. dollars it’s holding. You’ll recall that the Federal Reserve took some pretty extreme measures over the last two years, ostensibly to save the U.S. economy. In fact, those measures have set us up the bomb. For decades China has been buying U.S. debt and financing Americans’ credit addiction as well as the government’s massive spending on millions of projects it has no business being involved in. But, it seems, they’ve had enough of the dollar and are about to pull the plug.

In the meantime, China has been using those dollars to buy every morsel of American food it can get its hands on. Combined with 2009’s bad weather and the USDA’s ridiculous numbers, this prompted a late August soybean shortage which is expected to continue through 2010.

The U.S. has a very good reason to fudge the numbers on crop estimates. If it published realistic numbers, and crop futures prices rose sharply, three things would likely happen: Wall Street would take massive losses, inflation fears would cause investors to dump bonds, frustrating the government’s attempts to finance its incredible expanding debt, and most importantly, China, whose currency is tied closely to the U.S. dollar, would allow it to appreciate. That alone would likely send the U.S. dollar into freefall; all three would mean utter economic collapse.

Of course, you can’t fool the market for long; as noted above, futures prices are already well above the USDA’s numbers. All they really managed to do with their numbers game was buy the U.S. dollar another year of life.

One market analyst believes that the 2010 food shortage will be the catalyst which not only brings about the collapse of the U.S. economy, but takes down Great Britain and Japan with it.

While a food crisis was unavoidable to some extent because of the abnormal weather and financial crisis, the total panic which will soon grip world agricultural markets is a creation of the USDA and its fictitious production estimates. If not for the USDA’s interference, food prices would have risen in the first half of 2009 in anticipation of the 2009/10 shortage. The United States Department of Agriculture has caused incalculable damage to the world economy by encouraging overconsumption of rapidly diminishing food supplies.

Once the 2010 Food Crisis starts, confidence in the US government will be shattered as a result of the USDA’s faulty estimates. The starvation and misery caused by higher food prices will also create a lot of anger . . . — Market Skeptics

In this scenario, rural banks will begin failing rapidly, especially in the Midwest, and the inevitable bailouts will drive up U.S. debt further. These bailouts, combined with the Chinese allowing the yuan to appreciate, will erode confidence in the U.S. dollar to the point that foreign banks and investors begin dumping U.S. debt at fire sale prices. At that point the Federal Reserve will have no choice but to print money, leading directly to hyperinflation.

I shouldn’t have to tell you what hyperinflation will look like, but in case you need a reminder, it will likely make the Great Depression look like a minor recession. Tens of millions of people who have never known want in their entire lives are going to be shocked to wake up broke and hungry, with no idea what happened or why it happened to them. The government will almost certainly be unable to fulfill its promises of food stamps, social security and other such welfare programs. Food riots are likely and people will almost certainly die when the government attempts to put them down.

Worst of all, almost nobody will assign blame where it truly belongs: central banks and fiat currency.

Market Skeptics and many other foreign investors I’ve seen quoted widely in foreign media but virtually never in the U.S., recommend investing in agriculture, except derivatives, and in precious metals. I also recommend you invest in as much nonperishable food as you can lay hands on in the next two months, at least a year’s supply if you can manage it. If there’s no collapse, you can eat it, and if there is, you’ll at least have something to eat. And when you read a headline such as “Yuan allowed to rise versus dollar,” it’s time to head for the hills.

Mark Dice, author and freedom fighter, made this little 9 minute video of him going around with a ridiculous petition asking the Federal Reserve to increase inflation to 100% per year for five years in order to further help their Illuminati friends and Banker Elitists. Watch how few have any real questions to ask about the petition before signing it as Mark gives them a sales pitch about how it will “put more money out there, floating around, to help us get out of this recession.”

Trailer to a new documentary about how the current depression started and why:

by Andrew Gavin Marshall

In the face of total global economic collapse, the prospects of a massive international war are increasing. Historically, periods of imperial decline and economic crisis are marked by increased international violence and war. The decline of the great European empires was marked by World War I and World War II, with the Great Depression taking place in the intermediary period.

Currently, the world is witnessing the decline of the American empire, itself a product born out of World War II. As the post-war imperial hegemon, America ran the international monetary system and reigned as champion and arbitrator of the global political economy.

To manage the global political economy, the US has created the single largest and most powerful military force in world history. Constant control over the global economy requires constant military presence and action.

Now that both the American empire and global political economy are in decline and collapse, the prospect of a violent end to the American imperial age is drastically increasing.

This essay is broken into three separate parts. The first part covers US-NATO geopolitical strategy since the end of the Cold War, at the beginning of the New World Order, outlining the western imperial strategy that led to the war in Yugoslavia and the “War on Terror.” Part 2 analyzes the nature of “soft revolutions” or “colour revolutions” in US imperial strategy, focusing on establishing hegemony over Eastern Europe and Central Asia. Part 3 analyzes the nature of the imperial strategy to construct a New World Order, focusing on the increasing conflicts in Afghanistan, Pakistan, Iran, Latin America, Eastern Europe and Africa; and the potential these conflicts have for starting a new world war with China and Russia.

Defining a New Imperial Strategy

In 1991, with the collapse of the Soviet Union, US-NATO foreign policy had to re-imagine its role in the world. The Cold War served as a means of justifying US imperialist expansion across the globe with the aim of “containing” the Soviet threat. NATO itself was created and existed for the sole purpose of forging an anti-Soviet alliance. With the USSR gone, NATO had no reason to exist, and the US had to find a new purpose for its imperialist strategy in the world.

In 1992, the US Defense Department, under the leadership of Secretary of Defense Dick Cheney [later to be George Bush Jr.’s VP], had the Pentagon’s Under Secretary of Defense for Policy, Paul Wolfowitz [later to be George Bush Jr.’s Deputy Secretary of Defense and President of the World Bank], write up a defense document to guide American foreign policy in the post-Cold War era, commonly referred to as the “New World Order.”

The Defense Planning Guidance document was leaked in 1992, and revealed that, “In a broad new policy statement that is in its final drafting phase, the Defense Department asserts that America’s political and military mission in the post-cold-war era will be to ensure that no rival superpower is allowed to emerge in Western Europe, Asia or the territories of the former Soviet Union,” and that, “The classified document makes the case for a world dominated by one superpower whose position can be perpetuated by constructive behavior and sufficient military might to deter any nation or group of nations from challenging American primacy.”

Further, “the new draft sketches a world in which there is one dominant military power whose leaders ‘must maintain the mechanisms for deterring potential competitors from even aspiring to a larger regional or global role’.” Among the necessary challenges to American supremacy, the document “postulated regional wars against Iraq and North Korea,” and identified China and Russia as its major threats. It further “suggests that the United States could also consider extending to Eastern and Central European nations security commitments similar to those extended to Saudi Arabia, Kuwait and other Arab states along the Persian Gulf.”[1]

NATO and Yugoslavia

The wars in Yugoslavia throughout the 1990s served as a justification for the continued existence of NATO in the world, and to expand American imperial interests in Eastern Europe.

The World Bank and IMF set the stage for the destabilization of Yugoslavia. After long-time dictator of Yugoslavia, Josip Tito, died in 1980, a leadership crisis developed. In 1982, American foreign policy officials organized a set of IMF and World Bank loans, under the newly created Structural Adjustment Programs (SAPs), to handle the crisis of the $20 billion US debt. The effect of the loans, under the SAP, was that they “wreaked economic and political havoc… The economic crisis threatened political stability … it also threatened to aggravate simmering ethnic tensions.”[2]

In 1989, Slobodan Milosevic became President of Serbia, the largest and most powerful of all the Yugoslav republics. Also in 1989, Yugoslavia’s Premier traveled to the US to meet President George H.W. Bush in order to negotiate another financial aid package. In 1990, the World Bank/IMF program began, and the Yugoslav state’s expenditures went towards debt repayment. As a result, social programs were dismantled, the currency devalued, wages frozen, and prices rose. The “reforms fueled secessionist tendencies that fed on economic factors as well as ethnic divisions, virtually ensuring the de facto secession of the republic,” leading to Croatia and Slovenia’s succession in 1991.[3]

In 1990, US the intelligence community released a National Intelligence Estimate (NIE), predicting that Yugoslavia would break apart, erupt in civil war, and the report then placed blame on Serbian President Milosevic for the coming destabilization.[4]

In 1991, conflict broke out between Yugoslavia and Croatia, when it, too, declared independence. A ceasefire was reached in 1992. Yet, the Croats continued small military offensives until 1995, as well as participating in the war in Bosnia. In 1995, Operation Storm was undertaken by Croatia to try to retake the Krajina region. A Croatian general was recently put on trial at The Hague for war crimes during this battle, which was key to driving the Serbs out of Croatia and “cemented Croatian independence.” The US supported the operation and the CIA actively provided intelligence to Croat forces, leading to the displacement of between 150,000 and 200,000 Serbs, largely through means of murder, plundering, burning villages and ethnic cleansing.[5] The Croatian Army was trained by US advisers, and the general on trial was even personally supported by the CIA.[6]

The Clinton administration gave the “green light” to Iran to arm the Bosnian Muslims and “from 1992 to January 1996, there was an influx of Iranian weapons and advisers into Bosnia.” Further, “Iran, and other Muslim states, helped to bring Mujihadeen fighters into Bosnia to fight with the Muslims against the Serbs, ‘holy warriors’ from Afghanistan, Chechnya, Yemen and Algeria, some of whom had suspected links with Osama bin Laden’s training camps in Afghanistan.”

It was “Western intervention in the Balkans [that] exacerbated tensions and helped to sustain hostilities. By recognising the claims of separatist republics and groups in 1990/1991, Western elites – the American, British, French and German – undermined government structures in Yugoslavia, increased insecurities, inflamed conflict and heightened ethnic tensions. And by offering logistical support to various sides during the war, Western intervention sustained the conflict into the mid-1990s. Clinton’s choice of the Bosnian Muslims as a cause to champion on the international stage, and his administration’s demands that the UN arms embargo be lifted so that the Muslims and Croats could be armed against the Serbs, should be viewed in this light.”[7]

During the war in Bosnia, there “was a vast secret conduit of weapons smuggling though Croatia. This was arranged by the clandestine agencies of the US, Turkey and Iran, together with a range of radical Islamist groups, including Afghan mojahedin and the pro-Iranian Hizbullah.” Further, “the secret services of Ukraine, Greece and Israel were busy arming the Bosnian Serbs.”[8] Germany’s intelligence agency, the BND, also ran arms shipments to the Bosnian Muslims and Croatia to fight against the Serbs.[9]

The US had influenced the war in the region in a variety of ways. As the Observer reported in 1995, a major facet of their involvement was through “Military Professional Resources Inc (MPRI), a Virginia-based American private company of retired generals and intelligence officers. The American embassy in Zagreb admits that MPRI is training the Croats, on licence from the US government.” Further, The Dutch “were convinced that US special forces were involved in training the Bosnian army and the Bosnian Croat Army (HVO).”[10]

As far back as 1988, the leader of Croatia met with the German Chancellor Helmut Kohl to create “a joint policy to break up Yugoslavia,” and bring Slovenia and Croatia into the “German economic zone.” So, US Army officers were dispatched to Croatia, Bosnia, Albania, and Macedonia as “advisers” and brought in US Special Forces to help.[11] During the nine-month cease-fire in the war in Bosnia-Herzegovina, six US generals met with Bosnian army leaders to plan the Bosnian offensive that broke the cease-fire.[12]

In 1996, the Albanian Mafia, in collaboration with the Kosovo Liberation Army (KLA), a militant guerilla organization, took control over the enormous Balkan heroin trafficking routes. The KLA was linked to former Afghan Mujaheddin fighters in Afghanistan, including Osama bin Laden.[13]

In 1997, the KLA began fighting against Serbian forces,[14] and in 1998, the US State Department removed the KLA from its list of terrorist organizations.[15] Before and after 1998, the KLA was receiving arms, training and support from the US and NATO, and Clinton’s Secretary of State, Madeline Albright, had a close political relationship with KLA leader Hashim Thaci.[16]

Both the CIA and German intelligence, the BND, supported the KLA terrorists in Yugoslavia prior to and after the 1999 NATO bombing of Yugoslavia. The BND had KLA contacts since the early 1990s, the same period that the KLA was establishing its Al-Qaeda contacts.[17] KLA members were trained by Osama bin Laden at training camps in Afghanistan. Even the UN stated that much of the violence that occurred came from KLA members, “especially those allied with Hashim Thaci.”[18]

The March 1999 NATO bombing of Kosovo was justified on the pretense of putting an end to Serbian oppression of Kosovo Albanians, which was termed genocide. The Clinton Administration made claims that at least 100,000 Kosovo Albanians were missing and “may have been killed” by the Serbs. Bill Clinton personally compared events in Kosovo to the Holocaust. The US State Department had stated that up to 500,000 Albanians were feared dead. Eventually, the official estimate was reduced to 10,000, however, after exhaustive investigations, it was revealed that the death of less than 2,500 Albanians could be attributed to the Serbs. During the NATO bombing campaign, between 400 and 1,500 Serb civilians were killed, and NATO committed war crimes, including the bombing of a Serb TV station and a hospital.[19]

In 2000, the US State Department, in cooperation with the American Enterprise Institute, AEI, held a conference on Euro-Atlantic integration in Slovakia. Among the participants were many heads of state, foreign affairs officials and ambassadors of various European states as well as UN and NATO officials.[20] A letter of correspondence between a German politician present at the meeting and the German Chancellor, revealed the true nature of NATO’s campaign in Kosovo. The conference demanded a speedy declaration of independence for Kosovo, and that the war in Yugoslavia was waged in order to enlarge NATO, Serbia was to be excluded permanently from European development to justify a US military presence in the region, and expansion was ultimately designed to contain Russia.[21]

Of great significance was that, “the war created a raison d’être for the continued existence of NATO in a post-Cold War world, as it desperately tried to justify its continued existence and desire for expansion.” Further, “The Russians had assumed NATO would dissolve at the end of the Cold War. Instead, not only has NATO expanded, it went to war over an internal dispute in a Slavic Eastern European country.” This was viewed as a great threat. Thus, “much of the tense relations between the United States and Russia over the past decade can be traced to the 1999 war on Yugoslavia.”[22]

The War on Terror and the Project for the New American Century (PNAC)

When Bill Clinton became President, the neo-conservative hawks from the George H.W. Bush administration formed a think tank called the Project for the New American Century, or PNAC. In 2000, they published a report called, Rebuilding America’s Defenses: Strategy, Forces, and Resources for a New Century. Building upon the Defense Policy Guidance document, they state that, “the United States must retain sufficient forces able to rapidly deploy and win multiple simultaneous large-scale wars.”[23] Further, there is “need to retain sufficient combat forces to fight and win, multiple, nearly simultaneous major theatre wars,”[24] and that “the Pentagon needs to begin to calculate the force necessary to protect, independently, US interests in Europe, East Asia and the Gulf at all times.”[25]

Interestingly, the document stated that, “the United States has for decades sought to play a more permanent role in Gulf regional security. While the unresolved conflict with Iraq provides the immediate justification, the need for a substantial American force presence in the Gulf transcends the issue of the regime of Saddam Hussein.”[26] However, in advocating for massive increases in defense spending and expanding the American empire across the globe, including the forceful destruction of multiple countries through major theatre wars, the report stated that, “Further, the process of transformation, even if it brings revolutionary change, is likely to be a long one, absent some catastrophic and catalyzing event – like a new Pearl Harbor.”[27] That event came one year later with the events of 9/11. Many of the authors of the report and members of the Project for the New American Century had become officials in the Bush administration, and were conveniently in place to enact their “Project” after they got their “new Pearl Harbor.”

The plans for war were “already under development by far right Think Tanks in the 1990s, organisations in which cold-war warriors from the inner circle of the secret services, from evangelical churches, from weapons corporations and oil companies forged shocking plans for a new world order.” To do this, “the USA would need to use all means – diplomatic, economic and military, even wars of aggression – to have long term control of the resources of the planet and the ability to keep any possible rival weak.”

Among the people involved in PNAC and the plans for empire, “Dick Cheney – Vice President, Lewis Libby – Cheney’s Chief of Staff, Donald Rumsfeld – Defence Minister, Paul Wolfowitz – Rumsfeld’s deputy, Peter Rodman – in charge of ‘Matters of Global Security’, John Bolton – State Secretary for Arms Control, Richard Armitage – Deputy Foreign Minister, Richard Perle – former Deputy Defence Minister under Reagan, now head of the Defense Policy Board, William Kristol – head of the PNAC and adviser to Bush, known as the brains of the President, Zalmay Khalilzad,” who became Ambassador to both Afghanistan and Iraq following the regime changes in those countries.[28]

Brzezinski’s “Grand Chessboard”

Arch-hawk strategist, Zbigniew Brzezinski, co-founder of the Trilateral Commission with David Rockefeller, former National Security Adviser and key foreign policy architect in Jimmy Carter’s administration, also wrote a book on American geostrategy. Brzezinski is also a member of the Council on Foreign Relations and the Bilderberg Group, and has also been a board member of Amnesty International, the Atlantic Council and the National Endowment for Democracy. Currently, he is a trustee and counselor at the Center for Strategic and International Studies (CSIS), a major US policy think tank.

In his 1997 book, The Grand Chessboard, Brzezinski outlined a strategy for America in the world. He wrote, “For America, the chief geopolitical prize is Eurasia. For half a millennium, world affairs were dominated by Eurasian powers and peoples who fought with one another for regional domination and reached out for global power.” Further, “how America ‘manages’ Eurasia is critical. Eurasia is the globe’s largest continent and is geopolitically axial. A power that dominates Eurasia would control two of the world’s three most advanced and economically productive regions. A mere glance at the map also suggests that control over Eurasia would almost automatically entail African subordination.”[29]

He continued in outlining a strategy for American empire, stating that, “it is imperative that no Eurasian challenger emerges, capable of dominating Eurasia and thus of also challenging America. The formulation of a comprehensive and integrated Eurasian geostrategy is therefore the purpose of this book.”[30] He explained that, “Two basic steps are thus required: first, to identify the geostrategically dynamic Eurasian states that have the power to cause a potentially important shift in the international distribution of power and to decipher the central external goals of their respective political elites and the likely consequences of their seeking to attain them: [and] second, to formulate specific U.S. policies to offset, co-opt, and/or control the above.”[31]

What this means is that is it of primary importance to first identify states that could potentially be a pivot upon which the balance of power in the region exits the US sphere of influence; and secondly, to “offset, co-opt, and/or control” such states and circumstances. An example of this would be Iran; being one of the world’s largest oil producers, and in a strategically significant position in the axis of Europe, Asia and the Middle East. Iran could hold the potential to alter the balance of power in Eurasia if it were to closely ally itself with Russia or China, or both – giving those nations a heavy supply of oil as well as a sphere of influence in the Gulf, thus challenging American hegemony in the region.

Brzezinski removed all subtlety from his imperial leanings, and wrote, “To put it in a terminology that harkens back to the more brutal age of ancient empires, the three grand imperatives of imperial geostrategy are to prevent collusion and maintain security dependence among the vassals, to keep tributaries pliant and protected, and to keep the barbarians from coming together.”[32]

Brzezinski referred to the Central Asian republics as the “Eurasian Balkans,” writing that, “Moreover, they [the Central Asian Republics] are of importance from the standpoint of security and historical ambitions to at least three of their most immediate and more powerful neighbors, namely Russia, Turkey and Iran, with China also signaling an increasing political interest in the region. But the Eurasian Balkans are infinitely more important as a potential economic prize: an enormous concentration of natural gas and oil reserves is located in the region, in addition to important minerals, including gold.”[33] He further wrote that, “It follows that America’s primary interest is to help ensure that no single power comes to control this geopolitical space and that the global community has unhindered financial and economic access to it.”[34] This is a clear example of America’s role as an engine of empire; with foreign imperial policy designed to maintain US strategic positions, but primarily and “infinitely more important,” is to secure an “economic prize” for “the global community.” In other words, the United States is an imperial hegemon working for international financial interests.

Brzezinski also warned that, “the United States may have to determine how to cope with regional coalitions that seek to push America out of Eurasia, thereby threatening America’s status as a global power,”[35] and he, “puts a premium on maneuver and manipulation in order to prevent the emergence of a hostile coalition that could eventually seek to challenge America’s primacy.” Thus, “The most immediate task is to make certain that no state or combination of states gains the capacity to expel the United States from Eurasia or even to diminish significantly its decisive arbitration role.”[36]

The War on Terror and Surplus Imperialism

In 2000, the Pentagon released a document called Joint Vision 2020, which outlined a project to achieve what they termed, “Full Spectrum Dominance,” as the blueprint for the Department of Defense in the future. “Full-spectrum dominance means the ability of U.S. forces, operating alone or with allies, to defeat any adversary and control any situation across the range of military operations.” The report “addresses full-spectrum dominance across the range of conflicts from nuclear war to major theater wars to smaller-scale contingencies. It also addresses amorphous situations like peacekeeping and noncombat humanitarian relief.” Further, “The development of a global information grid will provide the environment for decision superiority.”[37]

As political economist, Ellen Wood, explained, “Boundless domination of a global economy, and of the multiple states that administer it, requires military action without end, in purpose or time.”[38] Further, “Imperial dominance in a global capitalist economy requires a delicate and contradictory balance between suppressing competition and maintaining conditions in competing economies that generate markets and profit. This is one of the most fundamental contradictions of the new world order.”[39]

Following 9/11, the “Bush doctrine” was put in place, which called for “a unilateral and exclusive right to preemptive attack, any time, anywhere, unfettered by any international agreements, to ensure that ‘[o]ur forces will be strong enough to dissuade potential adversaries from pursuing a military build-up in hope of surpassing, or equaling, the power of the United States’.”[40]

NATO undertook its first ground invasion of any nation in its entire history, with the October 2001 invasion and occupation of Afghanistan. The Afghan war was in fact, planned prior to the events of 9/11, with the breakdown of major pipeline deals between major western oil companies and the Taliban. The war itself was planned over the summer of 2001 with the operational plan to go to war by mid-October.[41]

Afghanistan is extremely significant in geopolitical terms, as, “Transporting all the Caspian basin’s fossil fuel through Russia or Azerbaijan would greatly enhance Russia’s political and economic control over the central Asian republics, which is precisely what the west has spent 10 years trying to prevent. Piping it through Iran would enrich a regime which the US has been seeking to isolate. Sending it the long way round through China, quite aside from the strategic considerations, would be prohibitively expensive. But pipelines through Afghanistan would allow the US both to pursue its aim of ‘diversifying energy supply’ and to penetrate the world’s most lucrative markets.”[42]

As the San Francisco Chronicle pointed out a mere two weeks following the 9/11 attacks, “Beyond American determination to hit back against the perpetrators of the Sept. 11 attacks, beyond the likelihood of longer, drawn-out battles producing more civilian casualties in the months and years ahead, the hidden stakes in the war against terrorism can be summed up in a single word: oil.” Explaining further, “The map of terrorist sanctuaries and targets in the Middle East and Central Asia is also, to an extraordinary degree, a map of the world’s principal energy sources in the 21st century. The defense of these energy resources – rather than a simple confrontation between Islam and the West – will be the primary flash point of global conflict for decades to come.”

Among the many notable states where there is a crossover between terrorism and oil and gas reserves of vital importance to the United States and the West, are Saudi Arabia, Libya, Bahrain, the Gulf Emirates, Iran, Iraq, Egypt, Sudan and Algeria, Turkmenistan, Kazakhstan, Azerbaijan, Chechnya, Georgia and eastern Turkey. Importantly, “this region accounts for more than 65 percent of the world’s oil and natural gas production.” Further, “It is inevitable that the war against terrorism will be seen by many as a war on behalf of America’s Chevron, ExxonMobil and Arco; France’s TotalFinaElf; British Petroleum; Royal Dutch Shell and other multinational giants, which have hundreds of billions of dollars of investment in the region.”[43]

It’s no secret that the Iraq war had much to do with oil. In the summer of 2001, Dick Cheney convened an Energy Task Force, which was a highly secret set of meetings in which energy policy was determined for the United States. In the meetings and in various other means of communication, Cheney and his aides met with top officials and executives of Shell Oil, British Petroleum (BP), Exxon Mobil, Chevron, Conoco, and Chevron.[44] At the meeting, which took place before 9/11 and before there was any mention of a war on Iraq, documents of Iraqi oilfields, pipelines, refineries and terminals were presented and discussed, and “Saudi Arabian and United Arab Emirates (UAE) documents likewise feature a map of each country’s oilfields, pipelines, refineries and tanker terminals.”[45] Both Royal Dutch Shell and British Petroleum have since received major oil contracts to develop Iraqi oilfields.[46]

The war on Iraq, as well as the war on Afghanistan, also largely serve specifically American, and more broadly, Western imperial-strategic interests in the region. In particular, the wars were strategically designed to eliminate, threaten or contain regional powers, as well as to directly install several dozen military bases in the region, firmly establishing an imperial presence. The purpose of this is largely aimed at other major regional players and specifically, encircling Russia and China and threatening their access to the region’s oil and gas reserves. Iran is now surrounded, with Iraq on one side, and Afghanistan on the other.

Concluding Remarks

Part 1 of this essay outlined the US-NATO imperial strategy for entering the New World Order, following the break-up of the Soviet Union in 1991. The primary aim was focused on encircling Russia and China and preventing the rise of a new superpower. The US was to act as the imperial hegemon, serving international financial interests in imposing the New World Order. The next part to this essay examines the “colour revolutions” throughout Eastern Europe and Central Asia, continuing the US and NATO policy of containing Russia and China; while controlling access to major natural gas reserves and transportation routes. The “colour revolutions” have been a pivotal force in geopolitical imperial strategy, and analyzing them is key to understanding the New World Order.

Endnotes

[1] Tyler, Patrick E. U.S. Strategy Plan Calls for Insuring No Rivals Develop: A One Superpower World. The New York Times: March 8, 1992. http://work.colum.edu/~amiller/wolfowitz1992.htm

[2] Louis Sell, Slobodan Milosevic and the Destruction of Yugoslavia. Duke University Press, 2002: Page 28

Michel Chossudovsky, Dismantling Former Yugoslavia, Recolonizing Bosnia-Herzegovina. Global Research: February 19, 2002: http://globalresearch.ca/index.php?context=va&aid=370

[3] Michel Chossudovsky, Dismantling Former Yugoslavia, Recolonizing Bosnia-Herzegovina. Global Research: February 19, 2002: http://globalresearch.ca/index.php?context=va&aid=370

[4] David Binder, Yugoslavia Seen Breaking Up Soon. The New York Times: November 28, 1990

[5] Ian Traynor, Croat general on trial for war crimes. The Guardian: March 12, 2008:http://www.guardian.co.uk/world/2008/mar/12/warcrimes.balkans

[6] Adam LeBor, Croat general Ante Gotovina stands trial for war crimes. The Times Online: March 11, 2008:http://www.timesonline.co.uk/tol/news/world/europe/article3522828.ece

[7] Brendan O’Neill, ‘You are only allowed to see Bosnia in black and white’. Spiked: January 23, 2004:http://www.spiked-online.com/Articles/0000000CA374.htm

[8] Richard J. Aldrich, America used Islamists to arm the Bosnian Muslims. The Guardian: April 22, 2002:http://www.guardian.co.uk/world/2002/apr/22/warcrimes.comment/print

[9] Tim Judah, German spies accused of arming Bosnian Muslims. The Telegraph: April 20, 1997:http://www.serbianlinks.freehosting.net/german.htm

[10] Charlotte Eagar, Invisible US Army defeats Serbs. The Observer: November 5, 1995: http://charlotte-eagar.com/stories/balkans110595.shtml

[11] Gary Wilson, New reports show secret U.S. role in Balkan war. Workers World News Service: 1996:http://www.workers.org/ww/1997/bosnia.html

[12] IAC, The CIA Role in Bosnia. International Action Center: http://www.iacenter.org/bosnia/ciarole.htm

[13] History Commons, Serbia and Montenegro: 1996-1999: Albanian Mafia and KLA Take Control of Balkan Heroin Trafficking Route. The Center for Cooperative Research: http://www.historycommons.org/topic.jsp?topic=country_serbia_and_montenegro

[14] History Commons, Serbia and Montenegro: 1997: KLA Surfaces to Resist Serbian Persecution of Albanians. The Center for Cooperative Research: http://www.historycommons.org/topic.jsp?topic=country_serbia_and_montenegro

[15] History Commons, Serbia and Montenegro: February 1998: State Department Removes KLA from Terrorism List. The Center for Cooperative Research: http://www.historycommons.org/topic.jsp?topic=country_serbia_and_montenegro

[16] Marcia Christoff Kurop, Al Qaeda’s Balkan Links. The Wall Street Journal: November 1, 2001:http://www.freerepublic.com/focus/fr/561291/posts

[17] Global Research, German Intelligence and the CIA supported Al Qaeda sponsored Terrorists in Yugoslavia. Global Research: February 20, 2005: http://globalresearch.ca/index.php?context=va&aid=431

[18] Michel Chossudovsky, Kosovo: The US and the EU support a Political Process linked to Organized Crime. Global Research: February 12, 2008: http://globalresearch.ca/index.php?context=va&aid=8055

[19] Andrew Gavin Marshall, Breaking Yugoslavia. Geopolitical Monitor: July 21, 2008:http://www.geopoliticalmonitor.com/content/backgrounders/2008-07-21/breaking-yugoslavia/

[20] AEI, Is Euro-Atlantic Integration Still on Track? Participant List. American Enterprise Institute: April 28-30, 2000: http://www.aei.org/research/nai/events/pageID.440,projectID.11/default.asp

[21] Aleksandar Pavi, Correspondence between German Politicians Reveals the Hidden Agenda behind Kosovo’s “Independence”. Global Research: March 12, 2008: http://www.globalresearch.ca/index.php?context=va&aid=8304

[22] Stephen Zunes, The War on Yugoslavia, 10 Years Later. Foreign Policy in Focus: April 6, 2009:http://www.fpif.org/fpiftxt/6017

[23] PNAC, Rebuilding America’s Defenses. Project for the New American Century: September 2000, page 6:http://www.newamericancentury.org/publicationsreports.htm

[24] Ibid. Page 8

[25] Ibid. Page 9

[26] Ibid. Page 14

[27] Ibid. Page 51

[28] Margo Kingston, A think tank war: Why old Europe says no. The Sydney Morning Herald: March 7, 2003:http://www.smh.com.au/articles/2003/03/07/1046826528748.html

[29] Brzezinski, Zbigniew. The Grand Chessboard: American Primacy and its Geostrategic Imperatives. Basic Books, 1997: Pages 30-31

[30] Brzezinski, Zbigniew. The Grand Chessboard: American Primacy and its Geostrategic Imperatives. Basic Books, 1997: Page xiv

[31] Brzezinski, Zbigniew. The Grand Chessboard: American Primacy and its Geostrategic Imperatives. Basic Books, 1997: Page 41

[32] Brzezinski, Zbigniew. The Grand Chessboard: American Primacy and its Geostrategic Imperatives. Basic Books, 1997: Page 40

[33] Brzezinski, Zbigniew. The Grand Chessboard: American Primacy and its Geostrategic Imperatives. Basic Books, 1997: Page 124

[34] Brzezinski, Zbigniew. The Grand Chessboard: American Primacy and its Geostrategic Imperatives. Basic Books, 1997: Page 148

[35] Brzezinski, Zbigniew. The Grand Chessboard: American Primacy and its Geostrategic Imperatives. Basic Books, 1997: Page 55

[36] Brzezinski, Zbigniew. The Grand Chessboard: American Primacy and its Geostrategic Imperatives. Basic Books, 1997: Page 198

[37] Jim Garamone, Joint Vision 2020 Emphasizes Full-spectrum Dominance. American Forces Press Service: June 2, 2000:
http://www.defenselink.mil/news/newsarticle.aspx?id=45289

[38] Ellen Wood, Empire of Capital. Verso, 2003: page 144

[39] Ellen Wood, Empire of Capital. Verso, 2003: page 157

[40] Ellen Wood, Empire of Capital. Verso, 2003: page 160

[41] Andrew G. Marshall, Origins of Afghan War. Geopolitical Monitor: September 14, 2008:
http://www.geopoliticalmonitor.com/content/backgrounders/2008-09-14/origins-of-the-afghan-war/

[42] George Monbiot, America’s pipe dream. The Guardian: October 23, 2001:
http://www.guardian.co.uk/world/2001/oct/23/afghanistan.terrorism11

[43] Frank Viviano, Energy future rides on U.S. war. San Francisco Chronicle: September 26, 2001:
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/09/26/MN70983.DTL

[44] Dana Milbank and Justin Blum, Document Says Oil Chiefs Met With Cheney Task Force. Washington Post: November 16, 2005:
http://www.washingtonpost.com/wp-dyn/content/article/2005/11/15/AR2005111501842_pf.html

[45] Judicial Watch, CHENEY ENERGY TASK FORCE DOCUMENTS FEATURE MAP OF IRAQI OILFIELDS. Commerce Department: July 17, 2003: http://www.judicialwatch.org/printer_iraqi-oilfield-pr.shtml

[46] TERRY MACALISTER, Criticism as Shell signs $4bn Iraq oil deal. Mail and Guardian: September 30, 2008:http://www.mg.co.za/article/2008-09-30-criticism-as-shell-signs-4bn-iraq-oil-deal

Al-Jazeera, BP group wins Iraq oil contract. Al Jazeera Online: June 30, 2009:http://english.aljazeera.net/news/middleeast/2009/06/200963093615637434.html

This originally appeared on Global Research.

by Jim Willie

Debate stirs on whether the financial structure of the USEconomy is broken irreparably. Debate stirs on whether actions taken in the last year or two have put the nation on a path that can even achieve stability, let alone recovery. Debate stirs on whether a pernicious and not so secret syndicate has taken control of the USGovt financial ministries, let alone be removed. Debate stirs on whether lack of US Federal Reserve audits and disclosure of their accounting is integral to sustaining the syndicate control as well as its probable egregious fraud. Debate stirs whether the nationalizations have actually enabled adoption of wrecked assets, have concealed executive ransacking, and have buried massive counterfeit of bonds. Debate stirs whether the mountainous federal deficits, the nationalizations of essentially Black Holes, and the endless war spending make deficit reduction a distant dream. Debate stirs on whether the gargantuan accumulation of USFed reserves will spill over to produce widespread price inflation. Debate stirs on why after causing the foundation failure of the US financial structure from Wall Street and the USFed offices, these institutions not only remain in power but demand greater power.

It is my contention that the US financial structures broke without any remote potential for repair and revival in the summer of 2007. The symptoms became obvious in the summer of 2008 to the slower observers with visible shock waves bathed in crisis. The reactions from shock waves have come since the autumn months of 2008. The system has broken, but the syndicate in control wishes to keep the music going, keep the machinery turning, keep the money flowing, so that they can continue the massive rackets, bury the frauds & counterfeit, cover their tracks, process the bad paper into USGovt coffers, continue to corner the printing press operations, continue to con the USCongress into granting more funds for Goldman Sachs to dictate dispensation secretly, and to continue the endless war whose rivers of blood are matched only by rivers of redirected private contractor fraudulent payments. Nobody seeks justice and prosecution for over $1 trillion in mortgage bond fraud. Nobody seeks to remove Goldman Sachs and JPMorgan from control posts at the USDept Treasury and USFed respectively. Nobody seeks even to locate the missing $50 billion from the Iraq Reconstruction Fund, or to announce the known location of the stolen $100 billion from the Madoff Ponzi Scheme (it aint $50B and they know its exact hiding place). Foreigners have been very busy since the autumn 2008, as they dismantle the levers, knock down the pillars, block the escape routes, yank the collateral from the paper marketplaces, and otherwise thwart the US-UK schemes.

To claim that the system can be put on proper stable footing is lunatic. To expect that the nation can be recalibrated so as to return to the Good Ole Days of US global dominance and leadership is lunatic. To urge that the economic signposts, megaphones, and billboards be once again guided by policies best described as Bubbly Economic Mythology is lunatic. Yet delusional Americans actually believe the dominant ship at sea can lead as flagship, when it has taken on more water than the Titanic. Since the autumn months of 2008, marred by the Lehman Brothers failure, marred by the Fannie Mae adoption, marred by the AIG adoption, punctuated by a shameful 0% interest rate policy (ZIRP) and a green light for limitless money creation (QE), the United States has lost any semblance of leadership. Instead, its leadership has earned scorn, criticism, and disrespect. The last people on the globe to comprehend the American condition of failure, corruption, and military aggression seem to be the Americans themselves, who live within the USDome of Perception. They suffer from perhaps the worst education levels in the industrialized world, coupled with a co-opted national news media network, clouded by the grandest drugstore medication in history. Debate stirs on whether the US actually controls its own news media. The US does not cover the global Paradigm Shift underway that will change its landscape radically.

The clearest conclusions center on almost nothing put on a sustainable viable course for the nation. Amplification and widened breadth of all that failed cannot serve as the core for revival or recovery, let alone stability. Yet such policies seem the only ones our hapless bank leaders are able to execute. It is a dog returning to gobble his vomit. It is akin to managers urging their worst workers to intensify their efforts, and to join the ranks of management. These Keynesians cannot admit that the central bank franchise model has failed, not to be resurrected. In my view, the debates, the foundations, and the reactions scream two major messages. 1) The system is out of control, with the drivers ramming down the accelerator for even more of everything that failed, for a locomotive within a monetary system based upon illegitimate money. 2) The USGovt finances are heading toward a recognized failure, identified by both a banking system bankrupt seizure and a USTreasury default. The nation cannot come to grips with the bold stark notion that foreigners control our fate, from their revolt against the USDollar as a global reserve currency, from their revolt in supplying additional credit to the USGovt and USEconomy. The reaction so far to crisis has been to rely more heavily upon the Printing Pre$$, to monetize the debts, and to conceal such operations, all while permitting syndicates to operate with impunity. The revolving doors spin freely that fill job posts at the USDept Treasury, Wall Street firms, USGovt regulatory bodies, and key foundations, warranting charges of incest at best and corruption at worst. Things are out of control!

In fact, my forecast is for systemic failure. Its primary elements will be a failed US banking system (as in seizure) and a USTreasury Bond default (as in coerced restructure). Again, martial law and declaration of economic emergency will be the final solution. The prison camps will become debtor prisons and warehouses for illegals, maybe a processing plant for those who refuse virus vaccination. They are already constructed with over 200 ready for occupancy. Those in denial might become residents. They could also feature some dissidents, along with some writer analysts. Two years ago, my analysis regularly mentioned martial law and imposed order to handle the chaos from a disintegrated economy and insolvent dysfunctional banking system. Here we are in the present, when such forecasts do not sound so outrageous anymore. The Jackass has featured a string of seemingly outrageous forecasts that have come true. The US system is credit dependent, and credit will soon be cut off, in the next chapter of isolation. The Printing Pre$$ is a temporary solution, en route to a failed state. The US leaders and citizens do not learn from history. They defy history amidst delusions of omnipotent power. See the Weimar Republic, which has gone global! Even Gore Vidal expects recognition of the Untied States having adopted communism. Even the World Bank led by yet another Goldman Sachs pupil warns the Untied States not to assume the USDollar will remain the unchallenged global reserve currency.

GOLD IS RESILIENT

The true sanctuary is gold, in the face of debauchery of paper money. We see some clear first hand evidence of the ‘Beijing Put’ at work. It could provide a banking system foundation, except that the Gold Cartel and Banker Elite would have to forfeit power, maybe face poverty. Notice the quick recovery. With a slightly lower gold price, the off-take delivery of physical gold has been magnificent, much greater than a week or two ago. The Wall Street banksters are shocked to learn that demand is not isolated, but rather comes from diverse global sources. The Powerz threw all they could at gold, mentioned some half-baked story about I.M.F. gold sales (more like closure to decade old short sales), and upped the ante of illicit gold futures contract sales (without benefit of COMEX collateral). Notice the moving averages all aligned and rising. Notice the stochastix cyclical index that come down quickly to the 20 low trigger, ready to rise on a quick reload. The response breakout was very typical, seen a million times before. The breakout loses the amateurs and fast traders who miss the big picture. Like a diver off a springboard, the dive commences for a lift upward. The pullback was really miniscule. The recovery was rapid and impressive, in symmetry with the suddenness of the controlled correction. The Chinese are obviously thanking the corrupted Powerz for their paper games, loading on more acidic paper, offering the Middle Kingdom yet more gold bullion at reasonable prices. The Chinese want to maximize their accumulation of gold from the PaperBoyz, at the best price. They do not want a catapult upward in the gold price. They want a gradual controlled price. The Gold Cartel seems extremely willing to accommodate.

ABSENT A STRONG FOUNDATION

Widespread Insolvency is a major theme of the broken condition. The banks have assets and income grossly below their debts and liabilities. They must rely upon phony FASB accounting, which was the basis of the stock recovery beginning in April. They must bring fresh capital, lost as fast as it arrives. They now tell the public what their assets are worth, backwards to any market concept. The households are suffering from mortgage obligations even as housing prices continue to slide lower. With almost one third of American homeowners who hold mortgages operating with an underwater status, whereby their home loans exceed the home value, the army of consumers is more than hampered. Unlike the bankers, the households of America cannot just pound the table, engineer an absurd Stress Test, and declare they are solvent enough for equity extensions. The households line up for defaults and foreclosures instead. The smart ones demand that the bankers prove clear certified title of their property. See the Kansas MERS case that might serve as precedent to jam the gears of the bankers intending to seize homes in foreclosure. The bankers cannot prove they hold clear title. Such is the vagary of mortgage bond fraud, as it seeps to the surface.

The USGovt finances are in shambles, with $1800 billion in fiscal 2009 deficits, and easily $1300 billion to come in the next year. Take away the Printing Pre$$ from the desperate delinquent devils running the USGovt finance ministries, and national debt default would take place within 60 days. The nation does not even contemplate budget surplus, but rather justifies yawning deficits and lies using lunatic forecasts. The industrial base is also largely depleted. The Chinese Most Favored Nation granted in 1999 set the stage for shipment of much of the US factories to China. In the process, the USEconomy replaced income with debt, all in the name of ‘Low Cost Solutions’ moronically. Corporate leaders in America reacted to heavy burdens of government regulations and higher taxes, even to rugged labor unions. Maybe their relocation decisions constituted betrayal, or maybe just reaction to onerous conditions that evolved over decades.

The Albatross of falling property prices, both residential and commercial, continues to hang around the neck of the USEconomy. The full impact of the commercial property decline has yet to be felt, more in delayed reaction. A queer factor comes into play with commercial mortgages and loans. Even if the majority of payments are current, even if most tenants pay rent on time, the loans tend not to be viable for refinance and rollover. The Loan-to-Value ratios are all horrible after a broad 30% to 40% property price decline. Banks require more equity. On the residential side, the Prime Option ARMortgages are lined up for the kill. It seems that payment of less than the required interest was not a good idea after all. It seems that leaving homeowners the option to build their loan balance when property prices fell was not a good idea after all. Now they face 100% to 200% monthly loan payment increases, all in the fine print unread years back. So liquidations and foreclosures will continue to come, complete with outsized bank losses. ThePerpetuation of Loss is ensured by continued property foreclosures and liquidation. Despite all talk, the process continues. Despite the pain, the statistics continue to be mangled with a purposeful motive.

The Accounting Fraud for bank balance sheets and stock valuation runs like a cancerous streak throughout the financial sector. The best way to cover up fraud is with more fraud. The best way to cover up accounting chicanery is to have the USCongress bless it as legal, vital, and essential. Once the stock market rose for consecutive months, talk of phony accounting rules is forgotten, SINCE IT SUCCEEDED, even served as proof of recovery. What nonsense! A moral depravity has permeated not just the financial sector, but the public as well. They cry out from the corners laden with pain, but without specific targets. The end of the FASB relaxed rules is scheduled for January 1st. Let’s see if a compromised USCongress and corrupt Wall Street demand its extension. They obviously will. Furthermore, both Basel 2 and Basel 3 guidelines are ignored, since from outsiders. Ignore them at one’s own peril, as they gather as Enemies at the Gate among the USGovt creditors. Theirs might turn into an angry lynch mob. Foreign creditors are the #1 adversary to all things American right here, right now.

SUSTAINING FORCES

Numerous hidden forces sustain the current breakdown and hamper anything remotely resembling a recovery. The only thing in recovery is the banter, billboards, and propaganda. In fact, most praise of success comes from people who praise their own efforts, like USFed Chairman Bernhacky. His predecessor was also very accomplished at praising his own craft and alchemy. Sir Alan Greenspasm left the national banking system hanging over the precipice, from where it fell in a short time after passage of the mantle at his retirement. He believed his housing bubble saved America from disaster. He believed that credit derivatives offloaded risk. Little did he realize that the next disaster is always much greater than the saved previous one, when amplified credit and monetary ease are the solutions relied upon, all pure heresy. He lives now in London, and spends much time in Switzerland. These nations paid his secretive other paychecks. These nations are where his loyalty and all directives came from in my opinion. Many hidden forces will work to undermine the current efforts to instill a recovery to the USEconomy and a resuscitation of the US banking system. Bernhacky will soon realize that reliance upon the same toxin and formaldehyde to course through the increasingly cancerous bodies will produce even worse problems during the next crisis phase. It comes.

Numerous sustaining forces will contribute toward the inexorable path to systemic failure. It will begin with the relapse failure of the US banking system. Citigroup is facing real bankruptcy, whose numerous segments are underwater and growing worse. Bank of America is in a death spiral, whose CEO Ken Lewis departs amidst political and shareholder legal pressures. Wells Fargo is so dead that its true balance sheet makes a skeleton come to life, whose prime Option ARM and second mortgage exposure is monumental. Maybe Citigroup, BOA, and Wells will use USFed funds to acquire the entire US banking system and subject it to their brilliant acumen, leadership, and access to the corrupt money pits. Lock in those executive bonuses!

The hidden housing inventory will ensure that housing prices continue down for a couple more years. At best they will stabilize somewhat, but only if a monumental hidden housing inventory is permitted to accumulate. The big banks, the very same that abused mortgage bonds with leveraged instruments, own an outsized supply of foreclosed homes. What a fitting reward! They tend to release only a portion of this home supply, so as to permit some price stability as demand catches up. Lenders are reluctant to lend though, even while the foreclosure process continues. Job loss is the main driving factor, amidst household insolvency.

The Zero Interest Rate Policy is worn as a badge of shame to reflect central bank failure. It rewards savings not at all. It encourages the same speculation that produced bubbles to kill the banks and households. It encourages a Dollar Carry Trade, which ensures a pressured decline in the USDollar itself. The October Hat Trick Letter will discuss additional risks and dangerous consequences from the Dollar Carry Trade. Remember, Bernhacky assured the USCongress, the US conferences of economists, and the US people that the USFed would not resort to 0% rates. He did just that. In addition to powering with leverage the US$ exchange rate downward, this carry trade takes away a viable Exit Strategy for the USFed. Imagine Wall Street leveraged speculative machinery interrupting any potential lift in the official US interest rate! Recall that the USFed does take orders from the Wall Street syndicate. They selected him. They hired him. His job is to run the Printing Pre$$ day and night, to invent new liquidity facilities, to preach solutions to the USCongress, to shut up, and to follow orders. In the last year, the USFed has acted like it is the entire banking system. What exactly is the exit doorway to take from that strategy?

Without hesitation, one can claim that No Meaningful Reform or Restructure has occurred. The US financial and economic structures continue to suffer from precisely the same problems that resulted in systemic breakdown in the autumn months of 2008. The difference now is that the previous high volume of acidic money is exceeded with higher volumes now. USGovt debts are now much higher. Lending institutions are less prone to lend now than one or two years ago. Commercial paper used not to flow at all, and now flows but with less volume and from fewer channels and with more USFed assistance than ever before. Innovative thought is totally suppressed, if not crushed. Advocates for a reformed system without paper fiat money are dismissed. The syndicate continues to ply its trade and to control the levers. But their work is frenzied, and they are sure to lose control.

No meaningful reform comes even to the hundreds of thousands of mortgage loans that undergoHome Loan Modification. They cannot alter the loan balances, since that would require alteration of the associated mortgage loans that rely upon income stream from loan payments. This is not acceptable, since it would reveal the pervasive bond fraud, the counterfeit bonds, and the duplicate usage of home loans in multiple mortgage bonds. So solutions come to toss billion$ at the big banks, without solution, an assuredly failed Top-Down approach that appeals to Wall Street. The extort the money and hide the paths of funds. Also, on the small business front, the restructure of the Small Business lender & insurer CIT failed to produce any meaningful revitalization. Its June debt restructure agreement with bond holders failed to stick. It now seeks a $5 billion loan as debtor in possession. A million businesses would be affected if CIT folded and was liquidated. We are told of a recovery in progress. Its roots are in propaganda, crowd control, and shaping of public opinion. George Orwell would smile and smirk from his 1984 address on Cemetery Lane.

No national initiative has come to bring back US industry to the US shores. No national initiative has come to retain businesses by means of reduced taxation and reduced regulatory burdens. No national initiative has come to remove from power those responsible for Wall Street bond fraud. No national initiative has come to even force a proper accounting to Wall Street firms or Fannie Mae or AIG. No national initiative has come to conduct a true autopsy of Lehman Brothers, like to see what assets they held, what hedge funds they sponsored, what counterfeit Fannie Mae bonds they were soon to toss onto the table, and whether JPMorgan did indeed pay off private Lehman accounts with the $138 billion in slush funds. The booty was handed to them at a bankruptcy court meeting held before dawn on an September Saturday morning. No national initiative has come to force disclosure of the TARP fund distribution, or to reveal what the USFed does with its trillion$ of created money. They destroyed the USDollar, and the victims enduring the crisis from inside the USDome need to know. Without hesitation, one can claim that all attempts to shine light on the financial sector and its ivory towers have been obstructed.

Two further factors ensure the sustained crisis in the USGovt finances, with certain continued contagion to the financial sector and the tangible economy. The Endless War with its increasingly less credible banter against terrorism drains the United States of funds, saps its national spirit, cripples its soldiers, and extends risk in countless ways. The USDollar and USTreasury Bond suffer from lost foreign confidence and faith. The real threat to national security lies in the finance sector rooted in Wall Street. Almost all talk about foreign threat is a grand distraction from the internal threat, even as incredibly grand fraud is committed in the name of patriotism. The Entrenched Financial Syndicate remains in power, controls all financial policy, directs funds from the Printing Pre$$, influences the USCongress with slush contributions, controls regulatory body heads, engineers nationalizations of fraud-ridden financial firms, interferes with FBI investigations (see the GSax trading software), integrates with foreign policy, and provides segments to the US press networks. Fully 70% of US press network content comes from the USGovt and its myriad agencies with spokesmen and public relations offices.

FAILURE & DEFAULT ON THE HORIZON

Going hand in hand with the destructive 0% policy is the Hidden Monetization of USGovt Debt, clearly. The zero rate encourages new asset bubbles, like the historically unprecedented spectacular USTreasury bubble. USTBONDS MAKE THE FINAL BUBBLE. The zero rate enables new carry trades with no cost. The zero rate permits a private banker party to engage in their own corner carry trade, buying long-dated USTreasurys with free money while shorting the short-term USTBills. This acts like a money machine for bankers to restore their balance sheets. The only trouble is their balance sheets have a hemorrhage at work, with additional ongoing relentless credit portfolio losses. The accounting fraud can only mask the problem, which happens to grow worse with each passing month. With lost integrity from the 0% rate comes disdain for the monetary system generally and for the USDollar specifically, along with other major currencies locked near 0% also. INVESTORS TURN TO GOLD AND SILVER, the proven sanctuary during crisis.

While the 0% official rate creates problems much like those that erupted in a crisis, the monetization of debt issuance signals to the entire world to abandon the USDollar. The monetization assures the death of the USDollar. It is Weimar revisited, but with more military might and far more arrogance. Megalomania gone awry results in catastrophe. Monetization represents back-door devious measures to stave off the disaster of bond auction failures. Monetization is a broken promise made to creditors, who must feel betrayed. Monetization is a vast undermine to the validity, value, and very authenticity of a currency. The government debt for the custodian to the global reserve currency is being monetized, thereby creating gigantic air pockets, and funding a carry trade. The most dangerous asset bubble on the planet right now is the USTreasury. It pays 0% on short maturities. What is next? The forced USGovt worker pension contribution to USTreasurys? How about all state workers too, in their pensions? Maybe eventually all 401k and IRA and Keough pension plans as well, in their pensions? Every citizen maybe support the USTreasurys in pensions, out of patriotism, for national security? With lost integrity from the monetization patterned schemes, comes fear of a repeated Weimar hyper-inflation episode. INVESTORS TURN TO GOLD AND SILVER, the proven sanctuary during crisis.

What comes is the US bank system failure. The endless rounds of bank credit portfolio losses dictate it. The Stress Tests are soon to be discredited, less than one year after their farcical production. The leading losers will be commercial mortgages, prime Option ARMortgages, and credit card losses. Banks are not prepared, having inadequate Loan Loss Reserves, guarding their profits, denying their reserves, managing their stock prices. They deceive their share holders on continued portfolio risk. They try to shove all their garbage assets on the USFed and to Fannie Mae under the USGovt roof, amidst the shrill cries of ‘Too Big To Fail’ nonsense. A US bank system failure is coming. With lost integrity from the banking system, insolvent in its own core, supplanted in function by the USFed itself, lending so little as to force declines in the consumer credit funds, comes distrust of financial institutions generally. INVESTORS TURN TO GOLD AND SILVER, the proven sanctuary during crisis.

Copyright © 2009 Jim Willie, CB