Finance & Economics

BIS & CBDC’s Financial Collapse & War Part 4 (of a 4 Part Series)

Running Out of Options

 At present the dollar and euro-based financial system aka the Trans-Atlantic financial system, is hopelessly insolvent. Not only is it insolvent, but absolutely beyond salvage. The primary cause is that the banks have become like a financial casino through the use and abuse of derivatives- a huge black hole suffocating the global economy, and killing millions in the process.  To save the banking system, the Rockefeller family brought about the Covid Caper.

 Whenever these two families find that they cannot get their way – by economic, financial, and other means, such as a coup, or a color revolution, then they turn to the fist to achieve their aim.

To save the financial system, which urgently needed new income streams to survive, the plan to invade, attack, destroy, and break-up Russia into five smaller pieces failed miserably. The Hamas operation gave this dying system a chance to blow up the Middle East, as a means of blowing up Eurasia, again. And, here too, things are not going to well for the 2 families.  By all measures, 2024 is going to be a hell of a year. Russia this year holds the BRICS chairmanship. Either Putin gets it right, or we are all in deep kimchi.

Washington Steals Money

Case 1:- The 6,000 tons of gold deposited with the Federal reserve bank of Chicago in the late 1930s by a group of Filipino investors was not returned to them.

Case 2:- The 4,000 tons of gold deposited in Citibank by a Filipino in the 1970s was not returned to his heirs

Case 3:- When the Chinese government demanded its gold be returned, and when it arrived in China, it was found to be tungsten bars coated with gold.

Case 4 :- About $ 7 billion belonging to Afghanistan was seized by Washington in 2022.

Case 5:- Venezuela’s oil company has a US subsidiary called Citgo. Washington has seized this very valuable company, and is now auctioning it, and the proceeds will be off-set with Venezuela’s creditors-mainly Chevron.

Case 6:- Russia’s gold and foreign currency reserves of $300 billion was frozen, and is now about to be seized.

 The United States government is looting assets legally held by another sovereign government. The longer-term implication is to give other countries yet another reason to resent and fear the United States weaponization of the dollar. Over the past quarter-century, the United States has taken steps to exploit its centrality in global capital markets to advance its foreign policy interests. The United States has essentially forced everyone to witness the firepower of its fully operational machinery of coercive financial statecraft.

Given the profound changes that have taken place in the global economy over the last four decades, it might seem an anachronism that the traditional western allies still dominate the financial world. But for the time being, there is little escape from the hold that their currencies enjoy.  Nor is it easy for challengers to displace the dollar. The uncomfortable realization for countries that might now be nervously eyeing their vulnerability to similar sanctions is that there is simply a lack of viable alternatives.

“This is the beginning of the end of the dollar’s monopoly in the world,” Vyacheslav Volodin, speaker of the Russian Duma lower house of parliament, said on Wednesday. “Anyone who keeps money in dollars today can no longer be sure that the US will not steal their money.”

The power of the sanctions on Russia is based on the dominance of the US dollar, which is the most widely-used currency in trade, financial transactions and central bank reserves. Yet by explicitly weaponising the dollar in this way, the US and its allies risk provoking a backlash that could undermine the US currency and sunder the global financial system into rival blocks that could leave everyone worse off. “If you change the rules for Russia, you’re changing the rules for the whole world,” he says. “Once these rules change, they change international finance forever.” 

The Globalisation of Trade is Fracturing

Since the collapse of the Soviet Union in 1990, The US saw its role as the sole superpower and its manifest destiny to rule the world. It is also the birth date of globalization. The rationale behind this move was to interlock production in a way that will “tie-up” the global economy in ways that will leave the manufacturing nations dependent on these global supply chains.

 The best example to prove this point is the car manufacturing business. Most cars today are manufactured in several countries; – the chassis in one country, the dashboard – in country B, the internals in country C, and so on. This “just-in-time” manufacturing and supply chain concept was a finely tuned process.  This suited the business of the 2 families, in bringing about the globalization of the international economy. Since the financial world has been globalized due to the petro-dollar system.

But, arrogance and hubris began to shatter this model.

With the weaponization of the dollar, followed up by economic sanctions, this model began to wobble. It got a boost when the Ukraine war began. This up- ended the globalization model. This became amplified when the Houthis began blockading the shipments of goods to Israel. Overall, all of these factors put together have ended this faulty model of globalization. Supply chains have broken down, resulting in companies allocating more capital to do the same volume of trade; the result is either rising prices or falling profits. And this, at a time when the majority of companies in the West are heavy in debt and with rising interest rates adding to pressure on the bottom line. Since the West have off-shored production, and with the decline of the industrial base in the West, these 2 families have reduced STEM subjects in the universities, resulting in the stupidity levels increasing amongst the youth and graduates.

In short, the West will try to re-vitalize their industrial production bases and its universities, but its much too late. They have run out of time. The West is collapsing while the East is rising.The finely-tuned system was intended to benefit the multi-national corporations of the 2 families and their allied networks of power. The system has now come to an end.

De-Militarisation of NATO

Beyond private industry’s hold on the US military-industrial base, the very premise that America’s military industrial production base  is built on,  is fundamentally flawed, deeply rooted in private industry’s profit-driven prioritization.

China alone has a population 4-5 times greater than the US. China’s population is, in fact, larger than that of the G7 combined. China has a larger industrial base, economy, and education system than the US. China’s education system not only produces millions more graduates each year in essential fields like science, technology, and engineering than the US, the proportion of such graduates is higher in China than in the US. China alone possesses the means to maintain a competitive advantage over the United States now and well into the foreseeable future. The US, attempting to draw up a strategy to maintain an advantage over China (not to mention over the rest of the world) regardless of these realities, borders on delusion.

While China is repeatedly mentioned as America’s “pacing challenge,” the ongoing conflict in Ukraine is perhaps the most acute example of a shifting balance of global power. Despite a combined population, GDP, and military budget many times greater than Russia’s, the collective West is incapable of matching Russian production of even relatively simple munitions like artillery shells, let alone more complex systems like tanks, aircraft, and precision-guided missiles. While the US and its allies appear to have every conceivable advantage over Russia on paper, the collective West has organized itself as a profit-driven rather than purpose-driven society. In Russia, the defense industry exists to serve national security. While one might believe this goes without saying, across the collective West, the defense industry, like all other industries in the West, exists solely to maximize profits. To best serve national security, the defense industry is required to maintain substantial surge capacity – meaning additional, unused factory space, machines, and labor on standby if and when large surges in production are required in relatively short periods of time. Across the West, in order to maximize profits, surge capacity has been ruthlessly slashed, deemed economically inefficient. Only rare exceptions exist, such as US 155 mm artillery shell production.

While the West’s defense industry remains the most profitable on Earth, its ability to actually churn out arms and ammunition in the quantities and quality required for large-scale conflict is clearly compromised by its maximization of profits. The result is evident today as the West struggles to expand production of arms and ammunition for its Ukrainian proxies. Costs are most certainly a consideration across any defense industry, but costs cannot be the primary consideration.

A central element of Russia’s defense industry is Rostec, a massive state-owned enterprise under which hundreds of companies related to national industrial needs including defense are organized. Rostec is profitable. However, the industrial concerns organized under Rostec serve purposes related to Russia’s national interests first and foremost, be it national health, infrastructure or security. Because Russia’s defense industry is purpose-driven, it produced military equipment because it was necessary, not because it was profitable. As a result, Russia possessed huge stockpiles of ammunition and equipment ahead of the Special Military Operation (SMO) in February 2022. But because Russia’s industrial base is purpose-driven rather than profit-driven, additional facilities are already being built despite the longer-term economic inefficiency of doing so.

The West’s profit-driven policies have created problems for the US military industrial production base, ]\\ specially  downstream of production lines for arms and ammunition. This includes America’s decades of off-shoring production to maximize profits by taking advantage of cheaper labor overseas. Many raw materials and components used across the US MID today come from overseas including from “adversarial” nations.

Profit-driven policies have also hurt the workforce. Decades of off-shoring US manufacturing saw America transition to a primarily service-based economy. This was reflected across education as well, where vocational skills were not only neglected, they were stigmatized. The labor market lacks the required number of skilled workers to meet defense production demand while driving innovation at all levels. This shortfall is becoming exacerbated as baby boomers retire, and younger generations show less interest in manufacturing and engineering careers.

Beyond this problem, profit-driven policies have made education in the United States inaccessible. The desire to profit from providing education has usurped the actual purpose of providing education in the first place – the creation of human resources required running a functioning, prosperous society. Degrees and training courses in the United States require loans that can take a lifetime to pay off.

A lack of interest in skilled labor and the inaccessibility of education in the United States has resulted in a skewed workforce relative to the rest of the world. The number of STEM (science, technology, engineering, and mathematics) graduates in the US, for example, is comparable to Russia despite Russia having less than half the total population of the US. In 2016 there were 568,000 STEM graduates in the US for Russia’s 561,000. China9with 4 times the population) produced over 4.7 million graduates that same year.

US economic fundamentals altogether have created a skewed society and correspondingly skewed  military-industrial  base that is struggling to match that of nations smaller in terms of population and GDP. But even if the US did address these fundamental problems, the fact remains that China alone, saying nothing of the BRIC alliance it is a part of, has both solid fundamentals and simply possesses a larger population, economy, and industrial base.

The premise upon which US foreign policy is based is unrealistic. The fundamentals of US economic power are fatally flawed. The very notion of the US maintaining a competitive edge over the rest of the world is only realistic if the rest of the world is suffering from significant internal and/or regional instability. This is precisely why the US has invested so heavily over the decades in political interference, political capture, and even regional conflict around the globe. However, the disparity between the US and the rest of the world in terms of economic power, industrial strength, and military might be diminishing faster than the US can impose its “international order” upon it. A reemerging Russia alone has exceeded the US in terms of military industrial production. China is surpassing the United States across a much wider multitude of metrics. As long as the US pursues unsustainable policies based on an unrealistic premise, it will not only find itself surpassed by a growing number of nations, it will find itself isolated and unstable.

We look at the two current conflicts under way- Ukraine and Gaza.

American military equipment in Ukraine has not proven to be what its makers promised. There are too many examples of this. Even in Gaza, the Israelis use US armored personal carriers (APC’s) to move troops around. In the beginning, they were using good APCs. But over the past week, the IOF has resorted to using old M113 APCs, which were built in 1961. With weak armor, the Resistance have been destroying them in the dozens.

Now, the question arises is that why use such outdated equipment? The answer is two:- The first is that the IOF has used up most of its APCs- destroyed or badly damaged; the second is that their supplier – the Pentagon- does not have enough APCs to replace what the IOF has lost. This is the result of all the above points on NATO getting de-militarised due to a small military-industrial production base, along with a lack of enough skilled engineers and workers. Taking everything into account, the danger point for the globe is fast approaching. What happens when NATO runs out of arms and machines? Simple – GO NUCLEAR!

Washington’s Debt Default Plan

Currently, Washington’s’ debt burden is growing and not sustainable. Besides the $34 trillion government debt, one has to add in the debts of individuals and businesses. If that’s not enough, there is the unfunded pension and other liabilities. Add them all up, and we get a figure of between $200-300 trillion dollars- more than 8 times the American GDP.

The Rockefeller family (who are the majority shareholders in the US Federal Reserve Bank) are planning a debt default. No sensible leader would incur so much debt if he no intention of paying it back.

It is possible that in the event of an even larger financial crisis than we’ve seen prior (and in case you haven’t noticed, each one is typically an order of magnitude larger than the previous), everybody holding publicly traded stocks on platforms gets rug-pulled – and some mysterious and shadowy entity winds up with all the marbles.

Should that occur, I would expect it to signify the end of the global financial system as we know it, and not in a way wherein the society simply continues as a world of penniless serfs, subservient to about 0.001% of the elites- headed  the 2 families that dominate the global system. It would be more of a “last gasp of Globalism” than a final takeover of the world. This is not because the power to control is increasing. It is because this power is indeed collapsing. The “control system” has entered collapse. Their power has been based on deception. Their two great powers of deception, money and media, have been extremely efficient at the means of control. But these powers are now in rampant collapse.

This is why they have moved urgently to institute war measures. We have entered a time in which their nature is being recognized. Knowledge of their existence has become unavoidable. Their grasping will come to an end, because all of humanity cannot allow it to continue. Once it is recognized, humans will bond against a common existential threat. People from all walks of life will join in common cause. We have witnessed the beginning of this already.

In fact, that’s what everybody will be rebelling against: the imposition of a technocratic socialism that attempts to hoover up the property rights of the rest of humanity. It follows a theme that has been developing for a few years now. it will be populations against their own governments. That theme is seguing into that the next, worldwide conflict -World War 3 will be a geo-political struggle of the West vs East, or NATO vs China/Russia:

“They promote the belief that they are all-powerful. They are not.  All they have had is the power to print money.  The rest, they have usurped from humanity.”

The Only Option is to Blow Up the World

Analysing all the trends we have laid out in this report, some conclusions can be reached. The first is that the greed, arrogance, hubris, coupled with a maniac desire to rule over humanity has blinded the leaders of these 2 families to the hard realities. One of these leaders, Jacob Rothschild- head of the British branch – has just passed away. The world bids farewell to a brutal tyrant. The financial system is hopelessly insolvent. It’s dead. But, fantasy land lives on. The economic system is shattered with not enough production and the lack of a skilled workforce. The Western society-especially the American society is tearing itself apart. The people have lost trust in their leaders. It is beyond salvage. Furthermore, the Western society has very little foundation in faith and the Creator.

David Rockefeller Jnr in New York and the 2 Rothschild branches in London and Paris are having trouble hanging onto their empires. Their ability to influence events is declining. Every single move they made on the geopolitical front has produced a blow-back to them. Nothing seems to work out as planned. 100s of billions in value have evaporated. Looking into the future, these 2 families say that “I would rather blow up the world than lose my empire”.

 So, instead of coming down to earth and reality, they are doubling down on madness, anger, hate and irrationality. To understand more of how the majority of mankind presently is living in delusion, our next article discusses the cause and symptoms of this phenomenon. The article is titled “SNOW IS NOT BLACK”.  Till then stay tuned folks!

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