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Jul 18, 2012

War On All Fronts


By Paul Craig RobertsJuly 18, 2012 "Information Clearing House" --  The Russian government has finally caught on that its political opposition is being financed by the US taxpayer-funded National Endowment for Democracy and other CIA/State Department fronts in an attempt to subvert the Russian government and install an American puppet state in the geographically largest country on earth, the one country with a nuclear arsenal sufficient to deter Washington’s aggression.

Just as earlier this year Egypt expelled hundreds of people associated with foreign-funded “non-governmental organizations” (NGOs) for “instilling dissent and meddling in domestic policies,” the Russian Duma (parliament) has just passed a law that Putin is expected to sign that requires political organizations that receive foreign funding to register as foreign agents. The law is based on the US law requiring the registration of foreign agents.

Much of the Russian political opposition consists of foreign-paid agents, and once the law passes leading elements of the Russian political opposition will have to sign in with the Russian Ministry of Justice as foreign agents of Washington. The Itar-Tass News Agency reported on July 3 that there are about 1,000 organizations in Russia that are funded from abroad and engaged in political activity. Try to imagine the outcry if the Russians were funding 1,000 organizations in the US engaged in an effort to turn America into a Russian puppet state. (In the US the Russians would find a lot of competition from Israel.)

The Washington-funded Russian political opposition masquerades behind “human rights” and says it works to “open Russia.” What the disloyal and treasonous Washington-funded Russian “political opposition” means by “open Russia” is to open Russia for brainwashing by Western propaganda, to open Russia to economic plunder by the West, and to open Russia to having its domestic and foreign policies determined by Washington.

“Non-governmental organizations” are very governmental. They have played pivotal roles in both financing and running the various “color revolutions” that have established American puppet states in former constituent parts of the Soviet Empire. NGOs have been called “coup d’etat machines,” and they have served Washington well in this role. They are currently working in Venezuela against Chavez.

Of course, Washington is infuriated that its plans for achieving hegemony over a country too dangerous to attack militarily have been derailed by Russia’s awakening, after two decades, to the threat of being politically subverted by Washington-financed NGOs. Washington requires foreign-funded organizations to register as foreign agents (unless they are Israeli funded). However, this fact doesn’t stop Washington from denouncing the new Russian law as “anti-democratic,” “police state,” blah-blah. Caught with its hand in subversion, Washington calls Putin names. The pity is that most of the brainwashed West will fall for Washington’s lies, and we will hear more about “gangster state Russia.”

China is also in Washington’s crosshairs. China’s rapid rise as an economic power is perceived in Washington as a dire threat. China must be contained. Obama’s US Trade Representative has been secretly negotiating for the last 2 or 3 years a Trans Pacific Partnership, whose purpose is to derail China’s natural economic leadership in its own sphere of influence and replace it with Washington’s leadership.

Washington is also pushing to form new military alliances in Asia and to establish new military bases in the Philippines, S. Korea, Thailand, Vietnam, Australia, New Zealand, and elsewhere.

Washington quickly inserted itself into disputes between China and Vietnam and China and the Philippines. Washington aligned with its former Vietnamese enemy in Vietnam’s dispute with China over the resource rich Paracel and Spratly islands and with the Philippines in its dispute with China over the resource rich Scarborough Shoal.

Thus, like England’s interference in the dispute between Poland and National Socialist Germany over the return to Germany of German territories that were given to Poland as World War I booty, Washington sets the stage for war.

China has been cooperative with Washington, because the offshoring of the US economy to China was an important component in China’s unprecedented high rate of economic development. American capitalists got their short-run profits, and China got the capital and technology to build an economy that in another 2 or 3 years will have surpassed the sinking US economy. Jobs offshoring, mistaken for free trade by free market economists, has built China and destroyed America.

Washington’s growing interference in Chinese affairs has convinced China’s government that military countermeasures are required to neutralize Washington’s announced intentions to build its military presence in China’s sphere of influence. Washington’s view is that only Washington, no one else, has a sphere of influence, and Washington’s sphere of influence is the entire world.

On July 14 China’s official news agency, Xinhua, said that Washington was interfering in Chinese affairs and making China’s disputes with Vietnam and the Philippines impossible to resolve.

It looks as if an over-confident US government is determined to have a three-front war: Syria, Lebanon, and Iran in the Middle East, China in the Far East, and Russia in Europe. This would appear to be an ambitious agenda for a government whose military was unable to occupy Iraq after nine years or to defeat the lightly-armed Taliban after eleven years, and whose economy and those of its NATO puppets are in trouble and decline with corresponding rising internal unrest and loss of confidence in political leadership.
Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. http://www.paulcraigroberts.org/

Done something nice today? Sorry, someone else did that!

http://didntbuildthat.com

There appears to be the beginning of a funny new meme on Obama's speech that played down the role individual initiate has in shaping society in attempt to make the government look good. People say Obama was taken out of context. The full passage is nasty though:

Quote
If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business, you didn’t build that. Somebody else made that happen. The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet.
The point is, is that when we succeed, we succeed because of our individual initiative, but also because we do things together. There are some things, just like fighting fires, we don’t do on our own. I mean, imagine if everybody had their own fire service. That would be a hard way to organize fighting fires.

So we say to ourselves, ever since the founding of this country, you know what, there are some things we do better together. That’s how we funded the GI Bill. That’s how we created the middle class. That’s how we built the Golden Gate Bridge or the Hoover Dam. That’s how we invented the Internet. That’s how we sent a man to the moon. We rise or fall together as one nation and as one people, and that’s the reason I’m running for president — because I still believe in that idea. You’re not on your own, we’re in this together.









Regulators Sleep With Industry Prostitutes … While They Pimp Out the American People

There are some real connections between Wall Street and prostitution. See thisthis and this.
Instead of using taxpayer-generated bailout money to help the economy, some banking executives used it for prostitutes and other gratifications.
The “regulators” who are supposed to act as watchdogs play a very similar game.
The Hill reported yesterday that investigators from the Treasury’s Office of the Inspector General found that some of the regulator’s employees surfed erotic websites, hired prostitutes and accepted gifts from bank executives … instead of actually working to help the economy.
The Minerals Management Service – the regulator charged with overseeing BP and other oil companies to ensure that oil spills don’t occur – was riddled with “a culture of substance abuse and promiscuity”, which included “sex with industry contacts”.

Government Exists to “Serve” Banks

The chairman of the House banking committee says the role of Congress and federal regulators is to“serve” financial institutions. Two other powerful congressmen say that banks “own” Congress.
There’s no recovery because the government made it official policy not to prosecute fraud (and see this,thisthis, and this).
The cop is on the take … and the government’s only actions are to cover up the fraud (and see this) and to leave the people holding the bag.
When New York Federal Reserve boss (now Treasury Secretary) Tim Geithner learned about the Libor scandal – he didn’t do anything …  he simply parroted the banks’ own recommendations.
Not only are the regulators are wholly capturedbought and paid for and figuratively  in bed with the people they’re supposed to regulate, they are – as show above – literally in bed with them.
While pimping us out …

Not Prostitutes … But Pimps

Famed trend forecaster Gerald Celente wrote last year:
Politics today is little more than legalized prostitution. While a streetwalker gets busted for selling her body to a john, politicians get rewarded with campaign contributions for selling their souls to a corporation or lobbyist. With all of the whoring going on – the money exchanged and the pleasures lavished – the only
one actually getting screwed was John Q. Public.
And we noted in 2009:
Many people have called politicians prostitutes.
***
But the prostitution analogy is inaccurate.
Specifically, as the chairman of the Department of Economics at George Mason University (Donald J. Boudreaux) points out:
Real whores, after all, personally supply the services their customers seek. Prostitutes do not steal; their customers pay them voluntarily. And their customers pay only with money belonging to these customers.In contrast, members of Congress routinely truck and barter with other people’s property…
Members of Congress are less like whores than they are like pimps for persons unwillingly conscripted to perform unpleasant services.
Consider, for example, agricultural subsidies. Each year a handful of farmers and agribusinesses receive billions of taxpayer dollars. These are dollars that government forcibly takes from the pockets of taxpayers and then transfers to farmers.
The customers, in this case, are the farmers and agribusinesses. The suppliers of the services performed for these customers are taxpayers, for it’s the taxpayers who possess the ultimate asset — money — that farmers and agribusinesses lust after. And the intermediaries who oblige the suppliers to satisfy the base lusts of the customers are politicians. Just as pimps facilitate their customers’ access to prostitutes’ assets, politicians facilitate their customers’ access to taxpayers’ assets.
We taxpayers have less say in the matter than we like to think. Sure, we can vote. But if even just 50.00001 percent of voters cast their ballots for the candidate proposing higher taxes, the assets of not only our pro-tax citizens, but also those of the remaining 49.00009 percent of us anti-tax citizens are put at the disposal of our pimps’ customers. (And note that many of those who vote for higher taxes are not among those persons actually subject to higher taxation)…
Politicians force taxpayers to pony it up — just as the services rendered for a pimp’s customers are rendered not by that pimp personally, but by the ladies under his charge. The pimp pockets the bulk of each payment; he’s pleased with the transaction. His customer gets serviced well in return; he’spleased with the transaction. The only loser is the prostitute forced to share her precious assets with strangers whom she doesn’t particularly care for and who care nothing for her.
Also like the ladies under pimps’ power, taxpayers who resist being exploited risk serious consequences to their persons and pocketbooks. Uncle Sam doesn’t treat kindly taxpayers who try to avoid the obligations that he assigns to them. Government is a great deal more powerful, and often nastier, than is the typical taxpayer. Practically speaking, the taxpayer has little choice but to perform as government demands.
So to call politicians “whores” is to unduly insult women who either choose or who are forced into the profession of prostitution. These women aggress against no one; like all other respectable human beings, they do their best to get by as well as they can without violating other people’s rights.
The real villains in the prostitution arena are those pimps who coerce women into satisfying the lusts of strangers. Such pimps pocket most of the gains earned by the toil and risks involuntarily imposed upon the prostitutes they control. No one thinks this arrangement is fair or justified. No one gives pimps the title of “Honorable.” Decent people don’t care what pimps think or suppose that pimps have any special insights into what is good or bad for the women under their command. Decent people don’t pretend that pimps act chiefly for the benefit of their prostitutes. Decent people believe that pimps should be in prison.
Yet Americans continue to imagine that the typical representative or senator is an upstanding citizen, a human being worthy of being feted and listened to as if he or she possesses some unusually high moral or intellectual stature.
It’s closer to the truth to see politicians as pimps who force ordinary men and women to pony up freedoms and assets for the benefit of clients we call “special-interest groups.”
The Chinese may have a more realistic view of politicians than most Americans do: they believe thatprostitutes are more trustworthy than government officials.
Postscript:   There are other connections between prostitution and banking fraud. For example,  desperate women all over the world are turning to prostitution after being hit by austerity … caused by bank excess and fraud.
And many have noted the parallels between the corrupt systems which allowed Penn State coach Jerry Sandusky to sexually attack boys and the predatory financial system.   See this and this.

11 International Agreements That Are Nails In The Coffin Of The Petrodollar


From The economic collapse blog:

 Is the petrodollar dead? Well, not yet, but the nails are being hammered into the coffin even as you read this. For decades, most of the nations of the world have used the U.S. dollar to buy oil and to trade with each other. In essence, the U.S. dollar has been acting as a true global currency. Virtually every country on the face of the earth has needed big piles of U.S. dollars for international trade. This has ensured a huge demand for U.S. dollars and U.S. government debt. This demand for dollars has kept prices and interest rates low, and it has given the U.S. government an incredible amount of power and leverage around the globe. Right now, U.S. dollars make up more than 60 percent of all foreign currency reserves in the world. But times are changing. Over the past couple of years there has been a whole bunch of international agreements that have made the U.S. dollar less important in international trade. The mainstream media in the United States has been strangely quiet about all of these agreements, but the truth is that they are setting the stage for a fundamental shift in the way that trade is conducted around the globe. When the petrodollar dies, it is going to have an absolutely devastating impact on the U.S. economy. Sadly, most Americans are totally clueless regarding what is about to happen to the dollar.


One of the reasons the Federal Reserve has been able to get away with flooding the financial system with U.S. dollars is because the rest of the world has been soaking a lot of those dollars up. The rest of the world has needed giant piles of dollars to trade with, but what is going to happen when they don't need dollars anymore?


Could we see a tsunami of inflation as demand for the dollar plummets like a rock?


The power of the U.S. dollar has been one of the few things holding up our economy. Once that leg gets kicked out from under us we are going to be in a whole lot of trouble.


The following are 11 international agreements that are nails in the coffin of the petrodollar....


#1 China And Russia


China and Russia have decided to start using their own currencies when trading with each other. The following is from a China Daily article about this important agreement....


China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.


Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.


"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.


The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.


#2 China And Brazil


Did you know that Brazil conducts more trade with China than with anyone else?


The largest economy in South America has just agreed to a huge currency swap deal with the largest economy in Asia. The following is from a recent BBC article....


China and Brazil have agreed a currency swap deal in a bid to safeguard against any global financial crisis and strengthen their trade ties.


It will allow their respective central banks to exchange local currencies worth up to 60bn reais or 190bn yuan ($30bn; £19bn).


The amount can be used to shore up reserves in times of crisis or put towards boosting bilateral trade.


#3 China And Australia


Did you know that Australia conducts more trade with China than with anyone else?


Australia also recently agreed to a huge currency swap deal with China. The following is from a recentFinancial Express article....


The central banks of China and Australia signed a A$30 billion ($31.2 billion) currency-swap agreement to ensure the availability of capital between the trading partners, the Reserve Bank of Australia said.


“The main purposes of the swap agreement are to support trade and investment between Australia and China, particularly in local-currency terms, and to strengthen bilateral financial cooperation,” the RBA said in a statement on its website. “The agreement reflects the increasing opportunities available to settle trade between the two countries in Chinese renminbi and to make RMB-denominated investments.”


China has been expanding currency-swap accords as it promotes the international use of the yuan, and the accord with Australia follows similar deals with nations including South Korea, Turkey and Kazakhstan. China is Australia’s biggest trading partner and accounts for about a quarter of the nation’s merchandise sales abroad.


#4 China And Japan


The second and third largest economies on the entire planet have decided that they should start moving toward using their own currencies when trading with each other. This agreement was incredibly important but it was almost totally ignored by the U.S. media.


According to Bloomberg, it is anticipated that this agreement will strengthen ties between these two Asian giants....


Japan and China will promote direct trading of the yen and yuan without using dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said.


Japan will also apply to buy Chinese bonds next year, allowing the investment of renminbi that leaves China during the transactions, the Japanese government said in a statement after a meeting between Prime Minister Yoshihiko Noda and Chinese Premier Wen Jiabao in Beijing yesterday. Encouraging direct yen- yuan settlement should reduce currency risks and trading costs, the Japanese and Chinese governments said.


China is Japan’s biggest trading partner with 26.5 trillion yen ($340 billion) in two-way transactions last year, from 9.2 trillion yen a decade earlier.


#5 India And Japan


It is not just China making these kinds of currency agreements. According to Reuters, India and Japan have also agreed to a very large currency swap deal....


India and Japan have agreed to a $15 billion currency swap line, Japan's Prime Minister Yoshihiko Noda said on Wednesday, in a positive move for the troubled Indian rupee, Asia's worst-performing currency this year.


#6 "Junk For Oil": How India And China Are Buying Oil From Iran


Iran is still selling lots of oil. They just aren't exchanging that oil for U.S. dollars as much these days.


So how is Iran selling their oil without using dollars?


A Bloomberg article recently detailed what countries such as China and India are exchanging for Iranian oil....


Iran and its leading oil buyers, China and India, are finding ways to skirt U.S. and European Union financial sanctions on the Islamic republic by agreeing to trade oil for local currencies and goods including wheat, soybean meal and consumer products.


India, the second-biggest importer of Iran’s oil, has set up a rupee account at a state-owned bank to settle as much as much as 45 percent of its bill, according to Indian officials. China, Iran’s largest oil customer, already settles some of its oil debts through barter, Mahmoud Bahmani, Iran’s central bank governor, said Feb. 28. Iran also has sought to trade oil for wheat from Pakistan and Russia, according to media reports from the two countries.


#7 Iran And Russia


According to Bloomberg, Iran and Russia have decided to discard the U.S. dollar and use their own currencies when trading with each other....


Iran and Russia replaced the U.S. dollar with their national currencies in bilateral trade, Iran’s state-run Fars news agency reported, citing Seyed Reza Sajjadi, the Iranian ambassador in Moscow.


The proposal to switch to the ruble and the rial was raised by Russian President Dmitry Medvedev at a meeting with his Iranian counterpart, Mahmoud Ahmadinejad, in Astana, Kazakhstan, of the Shanghai Cooperation Organization, the ambassador said.


#8 China And Chile


China and Chile recently signed a new agreement that will dramatically expand trade between the two nations and that is also likely to lead to significant currency swaps between the two countries....


The following is from a recent report that described this new agreement between China and Chile....


Wen called on the two nations to expand trade in goods, promote trade in services and mutual investment, and double bilateral trade in three years.


The Chinese leader also said the two countries should enhance cooperation in mining, expand farm product trade, and promote cooperation in farm product production and processing and agricultural technology.


China would like to be actively engaged in Chile's infrastructure construction and work with Chile to promote the development of transportation networks in Latin America, said Wen.


Meanwhile, Wen suggested that the two sides launch currency swaps and expand settlement in China's renminbi.


#9 China And The United Arab Emirates


According to CNN, China and the United Arab Emirates recently agreed to a very large currency swap deal....


In January, Chinese Premier Wen Jiabao visited the United Arab Emirates and signed a $5.5 billion currency swap deal to boost trade and investments between the two countries.


#10 China And Africa


Did you know that China is now Africa's biggest trading partner?


For many years the U.S. dollar was dominant in Africa, but now that is changing. A report from Africa’s largest bank, Standard Bank, says the following....


“We expect at least $100 billion (about R768 billion) in Sino-African trade – more than the total bilateral trade between China and Africa in 2010 – to be settled in the renminbi by 2015.”


#11 Brazil, Russia, India, China And South Africa


The BRICS (Brazil, Russia, India, China and South Africa) continue to become a larger factor in the global economy.


A recent agreement between those nations sets the stage for them to increasingly use their own national currencies when trading with each other rather than the U.S. dollar. The following is from a news source in India....


The five major emerging economies of BRICS -- Brazil, Russia, India, China and South Africa -- are set to inject greater economic momentum into their grouping by signing two pacts for promoting intra-BRICS trade at the fourth summit of their leaders here Thursday.


The two agreements that will enable credit facility in local currency for businesses of BRICS countries will be signed in the presence of the leaders of the five countries, Sudhir Vyas, secretary (economic relations) in the external affairs ministry, told reporters here.


The pacts are expected to scale up intra-BRICS trade which has been growing at the rate of 28 percent over the last few years, but at $230 billion, remains much below the potential of the five economic powerhouses.


So what does all of this mean?


It means that the days of the U.S. dollar being the de facto reserve currency of the world are numbered.


So why is this important?


In a previous article, I quoted an outstanding article by Marin Katusa that detailed many of the important benefits that the petrodollar system has had for the U.S. economy....


The "petrodollar" system was a brilliant political and economic move. It forced the world's oil money to flow through the US Federal Reserve, creating ever-growing international demand for both US dollars and US debt, while essentially letting the US pretty much own the world's oil for free, since oil's value is denominated in a currency that America controls and prints. The petrodollar system spread beyond oil: the majority of international trade is done in US dollars. That means that from Russia to China, Brazil to South Korea, every country aims to maximize the US-dollar surplus garnered from its export trade to buy oil.


The US has reaped many rewards. As oil usage increased in the 1980s, demand for the US dollar rose with it, lifting the US economy to new heights. But even without economic success at home the US dollar would have soared, because the petrodollar system created consistent international demand for US dollars, which in turn gained in value. A strong US dollar allowed Americans to buy imported goods at a massive discount – the petrodollar system essentially creating a subsidy for US consumers at the expense of the rest of the world. Here, finally, the US hit on a downside: The availability of cheap imports hit the US manufacturing industry hard, and the disappearance of manufacturing jobs remains one of the biggest challenges in resurrecting the US economy today.


So what happens when the petrodollar dies?


The following are some of the things we are likely to see....


-Oil will cost a lot more.


-Everything will cost a lot more.


-There will be a lot less foreign demand for U.S. government debt.


-Interest rates on U.S. government debt will rise.


-Interest rates on just about everything in the U.S. economy will rise.


And that is just for starters.


As I wrote about earlier today, the Federal Reserve is not going to save us. Ben Bernanke is not somehow going to pull a rabbit out of a hat that will magically make everything okay. Fundamental changes to the global financial system are happening right now that are impossible for Bernanke to stop.


We should have never gone into so much debt. Up until now we have gotten away with it, but when demand for U.S. dollars and U.S. debt dries up we are going to experience a massive amount of pain.


Keep your eyes and ears open for more news stories like the ones referenced above. The end of the petrodollar is going to be a very significant landmark on the road toward the total collapse of the U.S. economy.


So what do you think the fate of the U.S. dollar is going to be in the years ahead?


Please feel free to post a comment with your thoughts below....

________


Related:


Global Plans to Replace the Dollar


''China pivots to Latin America''


China lends Africa $20bn to defend against Western 'bullying'

Chinese President Hu Jintao has pledged African governments $20bn in credit and called for more China-Africa coordination in international affairs to defend against the "bullying" of richer powers.

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