Thursday, April 27, 2017

Massaging America's Ego to Bankruptcy

Half a century ago, in the year 1967, there were no signs that the Soviet Union or the Warsaw Pact nations were under any kind of economic stress. A year later, Czechoslovakia erupted in a revolutionary fever, and the world began to wonder if the Communist Bloc was as solid as it appeared. Twenty-three years later, the world got the answer when the Soviet Union dissolved. Why did it happen?

It happened because the Russians were given a magnificent inheritance made of two parts: one cultural, and one that counts as natural wealth. Unlike the Germans who only inherited a magnificent culture, the Russians relied on their natural wealth to make it through the turbulent times of the late Nineteenth and early Twentieth Centuries. But their policy carried them only so far, and then let them down. To understand this part, we need to compare what the Russians did with what the Germans did to survive the plots that the colonial powers unleashed against them both.

What is loosely termed “Western Europeans” is a group of nations that became the colonial powers of their day. They were the Seven Sisters of Britain, France, Spain, Portugal, Holland, Belgium and Italy. It was in those countries as well as Germany and the Eastern Europeans (including Russia) that the Industrial Revolution saw its genesis. But only the 7 sisters got the idea that the new industries could produce the guns that will allow them to conquer the world. They did just that, and kept the other Europeans out.

Eventually, the Sisters got wealthy plundering the ancient worlds as well as the New World. They even had enough energy to turn against each other when they were not fighting a common enemy. Left out and in need to survive economically – especially after the Second World War – the Soviets relied on the natural resources they had inherited. To survive militarily, they relied on the entire gamut of their human resources, a move that forced them to neglect building a civilian industrial base. By contrast, the Germans, who originally relied on their human resources to fulfill their military needs, turned to civilian production when they lost the war and chose to shed their militaristic posture.

With the advances achieved in the design and use of the mining and agricultural machinery, the natural resources became plentiful and cheap. They gained their value back only when processed into useful products. The consequence of this has been that the Soviet economy began to sink whereas the German began to thrive. Eventually, the Soviet Union collapsed and Germany became an economic superpower. Is there a lesson in this history for the United States?

Before we can answer this question, we need to look at something that is specific to the United States. There was a time when gold – being a natural resource – had an intrinsic high value compared to what the world was producing in terms of goods and services for civilian consumption. This made it ideal to use as reserve by the banks to back the notes they were printing. But then the amount of gold produced in the world plateaued, even declined. Meanwhile, the production of goods and services experienced an explosive growth. Printed money flooded the economies of the world like tsunami, and there was not enough gold to back them unless its value was artificially inflated to levels that would put it out of everyone's reach except the banks.

That's when the idea of using gold as reserve was dropped, and the banks relied on the accumulation of foreign currencies to back their own. But to acquire foreign currencies, you must have an economy that satisfies local demand and produce a surplus for export. This meant that the value of your currency depended on your balance of payment. In fact, this is how the nations of the world have operated for three decades with one exception: The United States of America. How and why did this happen?

Having won the Second World War, and having helped to rebuild the nations against which it fought, America saw its dollar replace the British “sterling” as the currency that everyone asked for when the time came to be paid. When the banks set gold aside, they first used a basket of currencies as reserve to back their own. Because it was abundant, the dollar gradually became the preferred currency to use as reserve. And that's precisely where the danger lies for the American economy.

The nations that hoard the American dollar know that it is overvalued – not because of the strength of the American economy but – by the fact that they and others are hoarding it. Still, they continue to hoard it because everyone else is doing it, and the practice is working for them at this time. They know that one unforeseen event could send it crashing, but they are keeping their fingers crossed. Meanwhile, they are building their own economies to such size and strength that when the end will come for the American dollar, they will not be seriously affected by the loss.

In addition, a number of nations, spearheaded by China, are in the process of creating a parallel banking system for international interchange to replace the one that's now dominated by the United States. And the way things are moving – whether or not the dollar will crash – America will find itself isolated economically from a world that will soon attain several times its current size.

But why will America be isolated? It will be because the world will want to crackdown on it. If you want to know why, read the article that came under the title: “The coming US crackdown on Iran,” written by Benny Avni and published on April 25, 2017 in the New York Post.

You'll discover that the world will want to make America drink from the cup of its own evil … actually from the cup of its Jewish evil. Here is the revealing passage that tells you why: “Wouldn't a rush to unilateral punishment leave America all by our lonely self, as many allies resist reimposing international sanctions? … 'The US has a lot of power' says Anthony Rugierro. America can block access to world banking and force companies and institutions to choose between doing business with us or with them”.

For fifty years, the Jews have been telling America, go destroy this one, smash that one, and punish this other one because they all hate us and they hate you too. Go censure this one, and impose sanctions on that one because you are so big and powerful, you can do it and nothing will happen to you.

This may have been true while America – like the old Soviet Union – could live on its inheritance. But now that the inheritance is about to be depleted, the fantasy world that the Jews have created continues to marvel only the congressional fools who repeatedly and unanimously vote to put America on the road to bankruptcy. If and when this happens, you'll know who to blame.