Tag Archives: Bretton Woods

Fifteen Years of Western NATO and US-led “Terror Management” | NATO’s Totalitarian Expansion | Neo-Conservatism | NGOs and Color Revolutions

EU_Gorbachev_EUSSIn the previous blog article, we reviewed how post WWI U.S. replaced the British Empire with the start of the private Federal Reserve and post WWII 1944 Bretton Woods agreements with the establishment of the U.S. Dollar as world currency; the 1971 de-pegging of the USD from gold, the 1973 Rockefeller’s crude oil quadrupled price heist also known as “Oil Crisis”, the 1989 Berlin wall events that reunited Germany and triggered the destruction of the Union of the Socialist States of Russia (USSR) and the promise the United States made to the Soviet Union (now Russia) not to use German Reunification as an opportunity for NATO‘s expansion.

Totalitarian Democracies | Neocolonialism | Color Revolutions

Why would the United States of America embarrass its Western European allies and break its promise? A few months later, on March the 12th of 1999, the Czech Republic, Hungary and Poland became full members of NATO. In 2004, on March the 29th, Bulgaria, Latvia, Lithuania, Romania, Slovakia, Slovenia joined the ranks of NATO, and last but not least, Albania and Croatia in 2009!

Color Revolution is a neocolonialism form of 21st century warfare! I would like to suggest color revolutions as a  cyber- or net-centric digital warfare form of the old fashioned coup d’état. Why digital? Because the U.S. army, transnational crime organizations and NGOs, among others, use social media platforms such as Twitter, YouTube, Facebook, ask.fm, Tumblr in a highly sophisticated and coordinated manner (flashmobs) to disseminate their propaganda via social swarming:

“Tweeting the Arab Spring? That’s so 2010. A future tactic in cyber-based-information warfare is built upon mobile-media wielding e-citizen soldiers employing social swarming tactics to overwhelm a system, a decision maker, or a critical node. These mobile networks are vital to starting and maintaining cyber-based insurgency, drawing physical and moral strength from super-empowered individuals, while also using super-connected-individual networks to spread information, move undetected, and muster support, constantly one step ahead of authorities. It is possible for this swarm to move from the online world into the real world where violence may ensue.” (source: usacac.army) It is one of the many venues Western totalitarian democracies (such as the U.S. and its EU vassal state) use. Totalitarian democracy is a term that F. William Engdahl coined in his challenging book: “Full Spectrum Dominance: Totalitarian Democracy in the New World Order.”
In the articleNeo-Cons for human rights” Tony Cartalucci makes a very insightful statement about Neo-Conservatism: “As counter-intuitive as it may sound, a great deal of Neo-Conservatives are deeply involved in human rights. One may wonder in what capacity, since this war mongering clique of big-business connected scoundrels is renowned for its role in the most unprecedented, flagrant, and grievous human rights violations in American history.”
The United States of America, NATO and the European Union use some of the following tools and tactics (alphabetically ordered)
  • Balkanisation of target countries and regions
  • Central Banking such as the Federal Reserve, European Central Bank, Bank of England (BoE) and Bank of Japan (BoJ)
  • Color Revolutions: Serbia/Kosovo, Georgia and Ukraine
  • Media propaganda via Western Press under U.S. CIA control
  • NATO as an international tool of neocolonialism expansion
  • Non Governmental Organizations (NGOs)
  • Social Media propaganda (Kosovo and Egypt) used by the military
  • Social Swarming military techniques (flachmobs, e-citizens)
  • War on Terror: a fictitious enemy that can be created any where any time with U.S. | Western | Saudi | Israeli army subsidiaries such as Al Qaeda, ISIS, IS, ISIL, Daesh or Blackwater: One of the many (170) private mercenaries firms employed by the U.S. during the war in Iraq.

to expand their geopolitical reach, sphere of “influence” and financial “thiefdom.” Just like the old communist iron curtain exemplified by the Berlin Wall, a similar “EU-Financial Wall” has been raised with the single European currency. As Prof. Dr. Politics_F_Friedrich.Hayek_ServitudeWilhelm Hankel used to say: Nineteen men of different heights and statures cannot expect a tailor to cut them one single suit to fit them all!” This is what the EUR is supposed to be; in the long term the EUR can only “survive” under the terms of financial fascism and slavery countries such as Greece, Italy, Spain, Portugal, Ireland and France are already experiencing.

Colored revolutions always occur in a nation with strategic, natural resources: gas, oil, military bases and geopolitical interests. And they also take place in countries with socialist-leaning, anti-imperialist governments. The movements promoted by US agencies in those countries are generally anti-communist, anti-socialist, pro-capitalist and pro-imperialist.” writes international lawyer and consultant Eva Golinger In her article “Colored Revolutions, a New Form of Régime Change Made in the USA:”

“In 1983, the strategy of overthrowing inconvenient governments and calling it ‘democracy promotion’ was born. Through the creation of a private ‘foundations’ also known as Non Governmental Organizations (NGOs)” such as:

  • Canva: Center for Applied Nonviolent Action and Strategies
  • Albert Einstein Institution (AEI): Advancing freedom through non violent action”
  • Freedom House: 75 years championing democracy
  • International Center for Non-Violent Conflict (ICNC): “Nonviolent conflict is a way for people to fight for rights”
  • International Republican Institute (IRI): “Advancing Democracy Worldwide” (Board of directors: John McCain, Lindsey Graham, and Brent Scowcroft)
  • National Democratic Institute (NDI): “Support and strengthen democratic institutions worldwide”
  • National Endowment for Democracy (NED): “Supporting freedom around the world freedom, justice, self-determination, and accountable government, through the use of civil resistance”
  • Project for the New American Century (PNAC)
  • USAID: “We partner to end extreme poverty and promote resilient, democratic societies while advancing our security and prosperity”

Politics_FF_VVladimir_Euro-Atlantic.Nations.Moving.From.Their.Roots_3

” . . . The Washington régime filters funding and strategic aid to political parties and groups abroad that promotes U.S. agenda in nations with insubordinate governments.” Golinger goes on to say: “Behind all these ‘foundations’ and ‘institutes’ is the US Agency for International Development (USAID), the financial branch of the Department of State. Today, USAID has become a critical part of the security, intelligence and defense axis in Washington. In 2009, the Inter-agency Counterinsurgency Initiative became official doctrine in the US. Now, USAID is the principal entity that promotes the economic and strategic interests of the US across the globe as part of counterinsurgency operations. Its departments dedicated to transition initiatives, reconstruction, conflict management, economic development, governance and democracy are the main venues through which millions of dollars are filtered from Washington to political parties, NGOs, student organizations and movements that promote US agenda worldwide. Wherever a coup d’état, a colored revolution or a regime change favorable to US interests occurs, USAID and its flow of dollars is there.”

 Geopolitics_F_Real.Threat.for.EU.peace.USASo what are color revolutions? According Golinger: “. . . The procedure is often the same. Sponsored students and youth movements lead the way with a new face, attracting others to join in as though it were the fashion, the cool thing to do. There’s always a logo, a color, a marketing strategy. In Serbia, the group OTPOR, which led the overthrow of Slobodan Milosevic, hit the streets with t-shirts, posters and flags boasting a fist in black and white, their symbol of resistance. In Ukraine, the logo remained the same, but the color changed to orange. In Georgia, it was a rose-colored fist, and in Venezuela, instead of the closed fist, the hands are open, in black and white, to add a little variety.”

Vladimir Putting stated: “Today almost un-contained hyper use of military force in international relations is plunging the world into an abyss of permanent conflicts.” Adds Russian General L. Ivashov: “Terrorism is simply a new type of war in order to install a unipolar world, a pretext to establish the rule of a world élite.”

Bruno P. Gebarski

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Filed under Angela Merkel, Blackwater, Central Banking, Color Revolution, Corruption, Coup d'état, Facebook, Fascism, Geopolitics, Germany, Middle East, Mikhail Gorbachev, NATO, NED, Neo Con, NGO, NWO, Rockefeller, Rothschild, Russia, Sergey Lavrov, Social Media, Twitter, Ukraine, USA, Vladimir Putin, YouTube

China is Preparing the Gold Alternative to the U.S. Dollar-System

This article is an English translation of Frederick William Engdahl‘s article which first appeared on the Kopp Verlag blog under the German title: China bereitet Goldalternative zum Dollar-System-vor.

Current Chairman of the G20 group of nations China has invited France, among others, to organize a special conference in Paris. The fact that such a conference has taken place in an OECD country, is an indication of how weak the supremacy of the U.S.-dominated Dollar-system has already become.

Clipboard_Image 029On the 31 of March 2016, a special meeting with the name “Nanjing II” took place in Paris. In attendance was the Governor of the Central Bank of China, Zhou Xiaochuan. He gave a detailed presentation about the broader use of SDR or Special Drawing Rights of the International Monetary Fund (IMF), a basket of five major world currencies.

Only a very few priviledged guests were invited. These included German Finance Minister Wolfgang Schäuble, the British Chancellor of the Exchequer George Osborne and the IMF chief Christine Lagarde. They discussed with China the world financial architecture. What was striking and significant is the fact that not a single high-ranking US official participated.

Bloomberg reported about the Paris talks: “China aims to achieve a much stricter management system, in which private sector decisions are to be made by governments” said Edwin Truman, a former official of the Federal Reserve and the U.S. Treasury. “The French have always advocated an international monetary reform. Consequently they are china’s first choice ally.”

A China Youth Daily (China Youth) newspaper journalist, who was also in Paris said: “Zhou Xiaochuan pointed out that the international monetary and financial system, presently undergoing a structural adjustment, will cause many challenges for the world economy” . . . According Journalist Zhou, “China’s goal, as the current chairman of the G20 talks, is to promote a much wider use of the SDR.”

 Clipboard_Image 030Source: imf.org

For most of us this sounds as exciting as watching grass grow in the prairies. But behind this seemingly insignificant technical request, the overarching Chinese strategy turns out to be more and more the removal of the U.S. Dollar from its dominant role as a reserve currency of the world’s central banks.

China and others want to put an end to the tyranny of the bankrupt U.S. Dollar-system. This system has made it possible to finance countless wars with funds borrowed from other countries that have never been paid back. The strategy boils down to end the dominance of the U.S. Dollar as the currency for most of the world traded goods and services: This is no small matter!

Despite the U.S. economy being a wreck and Washington’s astronomical national debt of 19 trillion U.S. Dollars, up to 64 percent of all central bank reserves are still held in U.S. Dollars. The largest holder of U.S. Dollar debt is China, followed closely by Japan. As long as the U.S. Dollar is the “reserve currency”, Washington can accumulate endless deficits, knowing that countries like China have no serious alternative but to invest their foreign exchange profits into U.S. government bonds or government-guaranteed loans.

As I often pointed out, this in fact means that “China is de facto financing the Washington military campaigns,” which is in complete contradiction with Chinese or Russian interests, “as well as the numerous U.S. State Department color revolutions from Tibet to Hong Kong, Libya to the Ukraine or IS [ISIS, ISIL, Al Qaeda] in the Middle East,” and the list goes on and on…

A world made of many currencies

As we take a closer look at all the steps the Beijing government has taken since the 2008 global financial crisis – in particular the establishment of the Asian Infrastructure Investment Bank [AIIB], the New Development Bank [NDB] of the BRICS (Brazil, Russia, India, China and South Africa), and the bilateral agreement with Russia on energy supplies settled in domestic currencies thus bypassing the U.S. Dollar – it becomes clear that Zhou and Beijing’s leadership are pursuing a long-term strategy.

As British economist David Marsh pointed out regarding Zhou’s comments at the recent Nanjing II meeting in Paris, “China is pragmatically and steadily establishing a backup system of many currencies in the heart of the international world order.”

Since China’s currency was added to the selected group of SDR currencies last November, there is the system of multiple currencies, which China calls the “4 + 1 system.” It includes not only the U.S. Dollar (fhe first) the Euro, the Pound Sterling, the [Japanese] Yen but also the Renminbi [also known as Yuan] (the fourth). These are the five SDR components.

In order to strengthen the recognition of the SDR, the Central Bank of China has begun to publish its total foreign exchange reserves – the world’s largest – in both SDR and in U.S. Dollar.

A golden future

However, the Chinese alternative to the dominance of the U.S. Dollar goes much further than the propagation of the paper currencies of the SDR basket. China is obviously aiming at restoring an international gold standard. Most likely it won’t be based on the bankrupt Bretton Woods dollar exchange system, U.S. President Richard Nixon unilaterally terminated in August 1971, when he told the world, that in the future, they would have to swallow the paper Dollar and would not be able to redeem gold with it. At that particular juncture a global inflation — in U.S. Dollar — kicked in, an inflation, that future economic historians will most likely remember as “the greatest inflation ever.”

One estimates that between 1970 and 2000 the global U.S. Dollar circulation rose by more than 2.500 percent. Since then it has expended to well over 3.000 percent: and this, without any legal requirement to secure this U.S. Dollar amount in a predetermined ratio to gold, thus cancelling any worldwide U.S. Dollar inflation restriction. As long as the world is forced to have U.S. Dollars to pay for oil, grain and other goods, Washington can write checks endlessly without any fear of having them burst because of “insufficient cover.”

In conjuction with the fact that since 1971 another silent Wall Street Bank coup d’état has taken place, claiming any hint of representative democracy and constitutional government for itself, we have the craziest money printing machine very similar to Goethe’s 18th century poem: the Sorcerer’s apprentice. The fiat creation of U.S. Dollars has literally run out of control!

Since 2015, China is striving to replace the London, New York and Western Financial hubs responsible for gold fixing rates. As I reported in my longer August 2015 analysis, China and Russia are making great progress, to back up their currencies with gold in order “to make them as good as gold”, while currencies such as the debt ridden Euro or the bankrupt and credit inundated U.S. Dollar are struggling for survival.

In May 2015, China announced that it had established a state owned gold mutual  / investment fund. The initial goal is to create a pool of 16 billion U.S. Dollars and convert it into the largest physical gold-fund in the world. China is also developing a gold mine project along the new high-speed rail lines that have been called the “New Economic Silk Road” or “a road or a belt,” President Xi promotes.

According to China, the goal should be to enable Eurasian countries, along the Silk Road, to raise the backing of their local currencies with gold. Countries along the Silk Road and the BRICS, having the majority of the world population, natural and human resources, would then become completely independent of anything the West has to offer.

In May 2015, China’s Gold market in Shanghai formally established the “Silk Road Gold Fund” (Silk Road Gold Fund.) The two main investors in the new fund were the two largest gold mining Chinese companies: the Shandong Gold Group with 35 percent of the shares and the Shaanxi Gold Group with 25 percent. The Fund will invest in mining projects along the railways of the Eurasian Silk Road and also in the larger not yet explored regions of the Russian Federation.

Very few know thus far that South Africa is no longer the gold king of the world. South Africa is only ranking annual gold production country number seven. China is number one and Russia number two.

On May 11, just before the founding of new China Gold Fund, China’s National Gold Group Corporation signed an agreement with the Russian gold mining group Polyus Gold, Russia’s largest operator of gold mines and one of the ten largest in the world. Both companies will tap the gold deposits at Natalka in the Far East, in the district of Kolyma the province Magadan, which is still considered the largest in Russia.

Recently, the Chinese government and its state-owned companies have shifted their strategy. Today, with the official date of March 2016, China holds more than $ 3.2 trillion of foreign currency as a reserve in its central bank. Of these – it is believed – that about 60 percent, or almost two trillion dollars are in assets such as U.S. Treasuries or quasi-government bonds, mortgage bonds of mortgage companies such as Fannie Mae or Freddie Mac. Instead of investing all their dollar revenues from trade surpluses in increasingly inflated and worthless US Treasury bonds, China has set in motion the strategy to purchase assets worldwide.

On top of the Chinese “shopping list” of Beijing’s foreign assets is the purchasing of gold mines around the world. Although the price of gold has tightened slightly since January, it still moves on a five-year low, and many mining companies, threatened by bankruptcy, are in serious need of liquidity. Gold is just about to hit the Renaissance start button.

The beauty of gold is not only the fact that countless buyers use it as a hedge against inflation but is also the most beautiful of all precious metals.

In his work The Republic, Greek philosopher Plato identified five types of forms of government – aristocracy, plutocracy, oligarchy, democracy and tyranny, tyranny which is the lowest and most scurrilous of them all. He then lists the aristocracy or the rule of the wise (philosophers’ kings) with the “golden souls” as the highest form of government, which is very kind and of the highest integrity. Throughout the history of mankind, the value of gold has always been appreciated. China, Russia and other Eurasian nations are bringing gold back to where it deserves to be and this is very good indeed.

Frederick William Engdahl

Copyright © 2016 | The copyright of this site is, unless otherwise indicated, the Kopp Verlag, Rottenburg,  Germany | Original German article: http://info.kopp-verlag.de/hintergruende/enthuellungen/f-william-engdahl/china-bereitet-goldalternative-zum-dollar-system-vor.html | Translation Bruno P. Gebarski.

Image Credit nwright | Shutterstock

This article represents exclusively the opinion of the author. It does not necessarily reflect the views of the publisher or the opinions of other authors of these sites.

 

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Filed under AIIB, BRICS, Central Banking, China, Geopolitics, IMF, New Development Bank, Renminbi, Russia, SDR, USA, USD, Yuan