1 The Ancient Silk Route

2 The First Battle of Eurasia (1914-1918)

3 The Second Battle of Eurasia (1939-1945)

4 The American Century(1945-1990)

5 The Unipolar Period (1991-2020)

6 The Third Battle of Eurasia (2020-current)

1 The Ancient Silk Route

 The main story at the moment has to do with the turmoil in the Middle East and Ukraine, the destabilization of the financial system along with an increase of terror globally. Why are these things happening? To understand the current, let’s go back for a quick review of recent history. The best way of explaining current events is to look at it as a continuous story for the domination of the globe. And it all revolves around the Eurasian continent. 

In order to better understand geopolitics, it is worth having a world map on hand. As one can see the map below, the Eurasian continent is the entire region of Europe and Asia – from Britain in the west to Japan in the east; from the Arctic to the Mediterranean, to the Middle East, and heading down to Sri Lanka and Indonesia. It’s a vast region, home to most of humanity.

 Starting in the early 1600s, European powers began to travel, to Africa, Latin America and Asia. Over the next 3 centuries, these European powers had managed to bring a large part of the globe under their control. The most successful of the European countries was Britain and France. The British Empire became a global power. This power was based on control of the maritime routes. This control helped Britain become the leading world power for 150 years; from 1800 to 1945. A key aspect of this was to exercise control over the maritime chokepoints of the world trade routes: such as Gibraltar, the Suez Canal, the Red Sea, the Strait of Hormuz, and the Malacca straits.

Maritime Power vs Land-Based Powers

Look at the map below. Up until the 15^th Century, the two outer ends of Eurasia were connected by the Silk Route running from China to Europe, via central Eurasia (Turkey and Central Asia). Trade was conducted overland. When the Ottoman Empire came into being in 1453, European states such as Portugal, Spain, France and Britain began searching for new routes to the east via the seas. Thus, began the rise of the maritime powers. By the 19^th century, Britain became the dominant global power due to its control over the maritime routes. In the meantime, the over-land corridor between China and Europe withered away. Further, Britain would not allow any threat to its Empire by allowing any Eurasian power to build such transportation corridors that would threaten its hold over international trade. Even today, most of the world’s trade (90%) is conducted over maritime routes. Even the First World War was precipitated by Germany building a railway line from Berlin to Baghdad. The British Empire ruled the seas, and this fact enabled its domination as a global power. British power declined by the 1930s, only to be replaced by another rising maritime power- the United States, which would become a dominant global power- which is now being challenged by several Eurasian nations.

Look at the map, and one notices a distinction between two groups of world powers. The first is the maritime powers, such as Britain, Japan, and the USA. The second group of powers is land based, such as Russia, India, China and Germany. There has been a bitter rivalry between these groups for economic and financial domination. For the past 2 centuries, the power advantage rested with the maritime powers.

There are 4 distinct phases of this battle. The first phase was from 1885 to 1920. The second phase was from 1921 to 1945. The third phase was from 1945 to 1990.  The fourth and current phase is from 1991 to present.  We start with the first phase

2 The First Battle for Eurasia: – aka World War 1 (1914-1918)

This war had several causes i.e., Russia, Germany, the Ottoman Empire, Palestine and the new oil fields of the Middle East. Let’s go through them in brief.

Beginning in 1891, Russia had embarked on a massive industrial program. The most ambitious of these projects had been the construction of a railroad linking Vladivostok in the Far East to Russia’s west- an 8,000km long project. It would help transform the Russian economy, and it was the most ambitious rail project in the world. A central aim of this project was to develop productive relations with China, independent of British control of China’s ports and sea- lanes. This project would transform Russia from an agrarian to an industrial economy.

The Rothschild’s-through their control over London and the British Empire strongly opposed this Trans-Siberian rail project with every means at her disposal. Shortly after the project was completed, a British commentator stated , “This line will not only be one of the greatest trade routes that the world has ever known, but it will also become a political weapon in the hands of the Russians, whose power and significance it is difficult to estimate. It will make a single nation out of Russia, for whom it will no longer be necessary to pass through the Suez Canal or the Bosporus. It will give her an economic independence, through which she will become stronger than she has ever been or even dreamed of becoming”.

German industry and technology would greatly assist Russia in its drive to industrialize the country, in return for Russian raw materials and agricultural products.  Preventing that German-Russian alliance was the focus of British diplomatic machinations from 1900 that led London to initiate World War 1 against an encircled Germany, using Germany’s natural ally, Russia to do the dirty deed.

For decades, the British balance-of-power alliance strategy in Europe had been built around support for the Ottoman Empire, as part of what the British strategists called the Great Game – blocking the emergence of a strong and industrialized Russia. Russia had no warm-water port that she could use all year round. So, its geopolitical calculations always included search for such a port. It could take Turkey, but the British feared this move, and thus supported Turkey – the Ottoman Empire. The Trans-Siberian project was completed in 1903. In 1905, the Rothschild’s induced Japan to attack Russia in the Far East. With British technology, arms and money, the Japanese inflicted a humiliating defeat on Russia.

Germany became a single nation followings its military victory over France in 1870. Thereafter the economy began to boom. Several factors linked to Germany’s boom were the need to build its own shipping fleet to get out from under British domination of the sea trade. So long as Germany did not control her own modern merchant ship fleet, and have a navy to defend it, she would never determine her own economic affairs. Britain still ruled the world’s seas, and intended to remain so. This was the heart of British geopolitical strategy. So, Germany built up a huge merchant fleet, and followed this up with a navy. A German battle fleet could not be other than a challenge to British sea power.

It was becoming clear to the Rothschild’s by 1910 that dramatic remedies would be required to deal with the awesome German economic emergence. For the first time, oil emerged as a significant factor in the geopolitical calculus of war. Oil was around for centuries, and it assumed an industrial significance by the late 1800s. By 1905, London was in panic as it realized the strategic significance of the new fuel. Since Britain did not have any oil, they went looking for it, and found it in Iraq and Iran. By 1902, it was known that  the region of the Ottoman Empire known as Mesopotamia – today Iraq and Kuwait- contained oil ; how much and how accessible was still a matter of speculation. This discovery shaped the gigantic battle for global economic and military control which continues to the present day.

 In 1889, a group of German industrialists and bankers, led by Deutsche Bank, secured a concession from the Ottoman government to build a railway through Anatolia from the capital Constantinople. Ten years later the next stage was approved- this line then became known as the Berlin-Baghdad railway project.

 Germany had decided to build a strong economic alliance with Turkey, beginning in the 1890s, as a way to develop potentially vast new markets in the East for the export of German industrial goods. The Berlin-Baghdad railway project was to be the center-piece of a brilliant economic strategy. Potential supplies of oil were lurking in the background and Britain stood opposed. The seeds of the animosity tragically being acted out in the Middle East from the 1890s to the present trace directly back to this period. For more than 2 decades, the question of the construction of a modern railway linking Continental Europe with Baghdad was a point of friction at the center of German-British relations. For the first time, the railway gave the Ottoman Empire a vital modern economic linkage with the entire Asian interior. The rail link, once extended to Baghdad and Kuwait, would provide the cheapest and fastest link between Europe and India, a world rail link of the first order.

From the British side, this was exactly the point. A senior British advisor attached to the Serbian Army stated, “If Berlin-Baghdad were achieved, a huge block of territory producing every kind of economic wealth, and unassailable by sea-power would be united under German authority. Russia would be cut off by this barrier from her western friends, Britain and France. German and Turkish armies would be within easy striking distance of our Egyptian interests, and from the Persian Gulf, our Indian Empire would be threatened. The ports of Alexandria and the control of the Dardanelles would soon give Germany enormous naval power in the Mediterranean.”

He continued, “A glance at the map will show how the chain of States stretched from Berlin to Baghdad: The German Empire, the Austro-Hungarian Empire, Bulgaria, and Turkey. One little strip of territory alone blocked the way and prevented the two ends of the chain from being linked together. That little strip was Serbia- – – which was really the first line of defense of our eastern possessions. If she were crushed or enticed into the “Berlin-Baghdad“ system, then our vast but slightly defended empire would soon have felt the shock of Germany’s eastward thrust”.

In 1912, Deutsche Bank got a concession from the Ottomans giving the Baghdad Rail Co. full ‘right-of-way’ rights to all oil and minerals on a parallel 20 kms either side of the rail line. The line had reached as far as Mosul in what today is Iraq. Geologists had discovered oil between Mosul and Baghdad. The projected line of the last part of the Berlin-Baghdad rail link would go right through the area believed to hold large oil reserves. The Deutsche Bank plan was to have the Baghdad rail link transport Mesopotamian oil over land from possible naval blockade by the British, thereby making Germany independent in its oil requirements. Art this time, the Rockefeller’s Standard Oil had over 90 % of the German market. If Britain could not secure her own direct oil needs for the transport and technology of the future, but perhaps more decisive, if she could deny economic rivals their access to secure oil reserves in the world, her dominant role might be maintained into the next decades. In short, if Britain’s stagnating industry could not compete with Germany’s emerging Daimler motors, then she could control the raw material on which the Daimler motors must run. Just what this policy of British/Rothschild oil control implied for the course of world history will become clear.

 Why would Britain risk a world war in order to stop the development of Germany’s industrial economy in 1914? The reason was to maintain Britain’s geopolitical dominance. In 1918, German banker Karl Helfferich stated “Ever since Germany became the politically and economically strongest Continental power, did Britain feel threatened from Germany more than from any other land in its global economic position and its naval supremacy. Since that point, the British-German differences were unbridgeable, and susceptible to no agreement in any one single question “.

The Rothschild’s had determined well before 1914 that war was the only course suitable to bring the European situation under control. British interests dictated a shift from the traditional ‘pro-Ottoman and anti-Russian ‘alliance strategy of the 19^th century, to a ‘pro-Russian and anti-Ottoman and anti-German ‘alliance strategy. This shift was evident as early as the late 1890s.

 Regional wars were unleashed in the Balkans, the ‘soft underbelly ‘of Central Europe. In the so-called First Balkan war of 1912, Serbia, Bulgaria and Greece, secretly backed by Britain, declared war against the weak Ottoman Empire, resulting in stripping Turkey of most of her European possessions. This was followed in 1913 by a second Balkan War over the spoils of the first, in which Romania joined to help crush Bulgaria. The stage was set for Britain’s great European war.

From its side, Britain sought with every device, over the next 15 years, to delay and obstruct progress of the railway. The game lasted until the outbreak of war in August 1914.  In July 1914, Archduke Franz Ferdinand, heir to the Austrian throne, was assassinated in Sarajevo by a Serb, setting off a predictable chain of events which detonated the Great War.

There was one last issue. Jerusalem. Since the 1700s, the Talmudic crowd in Britain began plotting the takeover of the Holy Lands. This was before the advent of the Rothschild’s on the scene. It was only by the mid-1860s that a concerted effort was put into motion. The Ottoman Empire was weakened greatly, so the takeover would be made easy. Add in the fact that, by 1910, the presence of oil in Iraq added the urgency in the Rothschild’s move to take over Palestine. This was accomplished towards the end of the War, and was preceded by the November 1917 Balfour Declaration. The Middle Eastern possessions of the Ottoman Empire were divided between the two Rothschild branches – Britain and France. One of the better kept secrets of World War 1 was that, on the eve of August 1914, the British Empire and the British government was bankrupt.

In short, the Rothschild family achieved all of its objectives in this war. Germany destroyed, Czarist Russia destroyed and the Rothschild’s imposed communism on Russia. In addition, the Ottoman Empire was destroyed- and its lands – including Palestine – were taken over by the family. We now move over to the Second World War.

3 The 2nd Battle of Eurasia – aka World War 2 (1939-1945)

Between 1920 and 1933, the Rockefellers and the US nearly went to war with the British Empire over a variety of issues. These were access to the oil reserves of Iraq. The next issue was the imposition of tariffs against American goods into areas under the British Empire.   After Britain had abandoned gold in 1931, London created its own economic bloc, the Sterling Area, along with a system of trade called Imperial Preference that favored the nations of the British Empire – its colonies and Commonwealth member countries, including Canada, Australia and South Africa. This had shielded the British economy from the worst extremes of economic depression. The Rockefellers were furious as they saw it as crass British efforts to shut out US goods. The family was determined to force open access to the protected British Empire in the postwar world. With the help of Washington and Wall Street, and in the aftermath of WW2, the Rockefeller Empire bust up this tariff wall by hook and crook.

By the early 1930s, both families installed Hitler as Germany’s new leader. Each family had its own reasons. The Rockefellers wanted Hitler to attack France and Britain, in order to ‘cut the Rothschild’s down to size ‘. While the Rothschild’s wanted Hitler to attack Russia.  In 1945, after six years of a war spanning the entire globe, which had left more than 70 million dead in its wake, the war ended with the defeat of Germany.

 In 1919, following the Versailles Peace Conference, the British Empire was at its largest extent, its dominion covering 25 % of the entire surface of the world, the empire upon which the sun never set. A mere 30 years later, by 1949, the British Empire was disintegrating, as demands for colonial independence were made against the oppressive mother country.  It was the same for the other European colonial powers – France, Spain, Portugal, Holland and Belgium. The British Empire was in the throes of the largest upheaval of perhaps any empire in history.

 Within a few short years, Britain ceded formal colonial control over large parts of her empire in Africa, the Pacific and the Mediterranean. As a consequence of the war, the trading mechanisms of the Empire, which had formed the foundation of British/Rothschild financial power, were shattered. Vast overseas investments had to be sold to pay war costs. The British national debt soared to crazy levels. Domestically, Britain’s plant, equipment and infrastructure were decaying and worn out, even the electricity supply was no longer reliable, housing stock dilapidated and the population exhausted.

 One of the most significant outcomes of the Second World War was the relative demise of the British Empire that had dominated the world since 1815. Viewed in larger geopolitical terms, the two world wars from 1914 through to 1945 could best be understood as “contests for the British succession between Germany and the US. This contest was not decided until the end of WW2 and the unconditional surrender of Germany “. The Rockefeller Empire lost no time in implementing America’s imperial succession.  Britain was utterly dependent on the post-war support of the US. For its part, the Rockefeller brothers realized that if America were to dominate the postwar world, it needed the vast worldwide expertise and cooperation of London. Nelson Rockefeller established the CIA and it established close ties with British Intelligence.

4 The American Century (1945-1990)

 At the end of World War 2 (WW2), in 1945, global power had shifted from Britain to America. During the next 45 years, the US, and its institutions came to dominate the world.

The Rockefeller Brothers are America’s Royal Family.

The Rockefeller Empire emerged from this war in a position of enormously increased power – especially its oil and banking interests. The family restructured the postwar system with the formation of the UN, the IMF and the World Bank.

In 1945, the Rockefeller Empire, under the banners of  ‘freedom ‘ and ‘democracy’, ‘colonial liberation’ and ‘American free enterprise’, was poised to dominate world events to a degree that not even the British Empire had been able to do .  The financial and monetary pillar of postwar American domination depended on an equally powerful American military role to guarantee American dominance in the world after 1945. The answer was nuclear weapons.

The Ideological War

Although communism was installed in Russia in 1918 and in China in 1948, the Rockefeller family initiated the Cold War, starting in 1946. This was meant to close off the competition from these zones. Both Russia and China were cut off from the rest of the world. Remember the family motto is “competition is a sin”. At the same time, the family created a fear of communism in the west and the 3^rd world, as a means of taking over lands that were not previously accessible to US firms. The best examples of these were Germany, Vietnam and Korea, all of which were divided into two.

Whenever nationalist forces began demanding an equitable economic order, the US labelled them as ‘communists’. This label then justified the elimination of any nationalist force fighting for independence, justice and sovereignty.  New rulers were selected and placed on the throne, and eliminated if they deviated, did not follow orders or pursued an independent economic policy. And on it went.

Strengthening US Influence  

Between American financial, economic and military power, the US expanded its influence globally. Starting in the 1930s, Nelson took over the choicest companies away from the Europeans (mainly companies within the Rothschild orbit) in Latin America. US capital became a force in Hitler’s Germany from the late 1920s. After 1945, US corporations expanded in Europe, Asia and the Middle East. In the 1950s, the family expanded into Africa, spearheaded by David Rockefeller.

Dollar-Gold Linkage Breaks & the Birth of the Petro Dollar

Wall Street found it more profitable to buy overseas operating companies earning 15-25 % on their capital than investing back in the US earning 5 %. The choice was obvious. These companies kept their profits overseas.

Then came the Vietnam War; very unpopular. Instead of taxing the people, Washington borrowed the money to finance this war. Between the costs of the war and the increasing offshore investments by US companies, America’s huge trade surplus turned negative by the late 1960s. The Bretton Woods agreement allowed foreign holders of dollars (central banks and govts) to cash in their surplus dollars for gold. As the volume of these dollars increased, and inflation became a worry, these holders of dollars began cashing in these for physical gold from the US Federal Reserve.  To avoid draining all of its gold, the family cancelled the gold-dollar linkage in August 1971. This infuriated the Rothschild’s and caused a 40 % fall of the dollar’s value in relation to their major currencies of the world. To remedy this problem, the October 1973 war between Israel and Egypt/Syria took place. It was one of the most carefully and choreographed war of modern times. Its architect was Henry Kissinger, carrying out the mandate of David and Nelson Rockefeller. By mid-1975, a deal was made with Saudi Arabia to accept dollars only in payment of oil. Thus, was born the Petro-dollar!

From 1975 on, the control over the oil trade has become the number one priority of Washington’s foreign policy. Petrodollars became the basis for American domination over the global financial system which resulted in countries being forced to buy dollars in order to pay for oil imports on the international market.

John D Rockefeller’s Blueprint – The Secret American Coup d’état

Within the ordinary institutions of Washington government, the Constitutional safeguards to protect genuine representative democracy in America were subverted. Many persons played varying roles in that coup d’état against constitutional government, the subversion of the American Constitution’s Bill of Rights. Among them were names such as Rockefeller, Mellon or DuPont, who stood behind the institutional subversion that Nelson fostered with his network of secret CIA operatives.  Their blueprint was sketched out in a book written in 1973 by the eldest brother John D. Rockefeller III titled The Second American Revolution.

In the book, buried in the dullest prose imaginable, was an astonishing call to overturn the fundamentals of American government. Over the ensuing four decades all major features of the Rockefeller “second American revolution” were to be implemented.

John D. Rockefeller III, who was responsible for the various eugenics projects of the family such as the Population Council, called for large-scale privatization of government activities and massive deregulation of the private sector to remove government rules and restraints, laws built up over decades of experience of banking abuses during the Depression, or health and safety laws to force industry to respect human health and the environment.

That deregulation had the effect of lowering the health, the wages and the well-being of the general population to the gain of the few large multinational corporations such as the Rockefeller family’s oil companies, agribusiness, pharmaceutical and military industries. The wealth gap between the top 10% and the remaining 90 % of Americans began to widen dramatically over those four decades.

Jimmy Carter, David Rockefeller’s Trilateral Commission President, began large-scale implementation of the privatization and deregulation agenda in 1977 that was to transform America. Step-by-step the United States was transformed from a semblance of a democratic Republic into an oligarchy controlled by a small gang of very rich, unspeakably ugly and ridiculous people.  The American oligarchs viewed themselves as above the law and even above the Constitution. Out of the efforts of John D. Rockefeller III and the network of organizations  and think-tanks he dominated, including the New York Council on Foreign Relations, the idea was launched that tax-free private foundations such as the Rockefeller Foundation or the Ford Foundation would fund new networks. The new networks came to be known as Non-Governmental Organizations (NGOs).

In actual fact those private NGOs effectively served to advance the agenda of the American oligarchs, though even many of the participants in those NGOs sincerely believed they were doing good.

“Controlled Disintegration”

The 1973 October War brought about the first “oil shock ‘Third world countries were forced to borrow petrodollars from the banks of the 2 families in London and New York.

During 1975, the premier Rockefeller think tank, the CFR, drafted a series of policy blueprints for the 1980s.  This was one of the key points in John D Rockefeller’s book. It stated that “a degree of controlled dis-integration in a world economy is a legitimate objective for the 1980s.” What was disintegrating was the entire fabric of traditional industrial and agricultural development, mostly in the Third World.

The Third World nations fought back, trying to attain a unified front against the two families. These nations were destabilized and its leaders pushed out of power. The heavy hand of Kissinger was present in each case. The Third World threat to their Anglo-America order and their regime of global taxation through petrodollars had been beaten back.

In 1979, the Shah of Iran was toppled, and replaced by religious clerics. This unleashed chaos in Iran, and the oil price jumped to $40 from $10 just a few months earlier. The policy strategists in London and New York had resolved to impose a monetary shock on top of the oil shock to tilt the balance of world development to their decisive advantage.

 The rise in the oil price combined with the growing international alarm over Washington’s incompetence, led to a further weakening of the dollar. Since early 1978, the dollar dropped by 15 % against major currencies, while the gold price was shooting up.  The Arabs were losing about 10-15 % on their dollar and sterling investments, year by year, in the 1970- due to inflation and the rising prices of western goods. They were getting fed up. In September the Saudis dumped billions in US treasuries.

To forestall a run on the dollar and the Chase Manhattan Bank, David Rockefeller instructed Carter to appoint Paul Volcker as the new head of the US Federal Reserve Bank.  Volcker was a senior official at Chase, member of the CFR and the Trilateral Commission. In October 1979, Volcker increased the interest rate to 20 %. At the same time, the second oil shock of the 1970s began with the takeover of Iran by Khomeini. This rate hike was to make the US dollar the most sought after currency in the world, and to stop industrial growth dead in its track, in order that political and financial power flow back to the dollar imperium. It worked.

 As a consequence of the economic policy decisions of the Rockefeller Empire, the US became transformed step-by-step from ‘freedom’ and ‘democracy’ into the opposite.  Similar policies were enacted in Britain. Beginning in Britain, then in the US, and from there radiating outward from the Anglo-American world, these radical policies spread like a cancer , with its insistent demands to cut government spending , lower taxes , deregulate industry and break the power of organized labor. Interest rates rose around the world to levels never before imagined possible.

This policy of “controlled disintegration “was intended to reduce America’s industrial production base, and to “offshore” such production. This policy was first tried in Mexico, and then later it moved to China, starting in the 1990s.  Various multinational companies within the Rockefeller orbit moved production to China. This was meant to lower wages and increases the profit margins of these companies. The economics of the astonishing 20 % interest rates were soon obvious to all. For any industrial investment to be “profitable “ at 20 % interest rate  would mean that any industrial investment to be profitable at 20 % interest rates would mean that investments which required more than 4 or 5 years to complete , was simply not possible.  Long-term government-funded infrastructure and capital investment, such as railroads, highways, bridges, sewers and power plants, was devastated in the early 1980s. The aim was to shift economic policy throughout the world away from the direction of long-term nuclear and industrial development.

The relative power of the two family was thus to become hegemonic again.  What followed in the decade of the 1980s would have been inconceivable to the world, which had not already been stunned and disoriented by the shocks of the 1970s.

As the average cost of their oil imports, in US dollars, rose some 140% after the Iran oil shock in 1979, developing countries found that the dollar itself, in terms of their local currency , was rising like a rocket at the same time, because of high US interest rates.  By 1980 a new element faced them – floating interest rates of foreign dollar borrowings. The two families created LIBOR. Dollar loans were fixed at a premium over whatever the given London Inter-Bank Offered Rate (LIBOR) was. This LIBOR rate was a floating rate, which would rise or fall determined by short-term rates in New York and London. With this one factor alone, Third World debtor countries would have collapsed into default as the altered debt service conditions imposed on them by the banks added an unpayable new amount to their previously onerous debt burden.

 As interest rate debt burdens on their foreign debt obligations soared after 1980, the market for Third World debtor commodity exports to the West , which was critical to repay those debt burdens , collapsed, as the industrial economies were plunged into the deepest economic downturn since the 1930s.   Third World debtor countries began to be squeezed in the blades of vicious scissors of deteriorating terms of trade for their commodity exports, falling export earnings, and a soaring debt service ration. This, in short, was what New York and London preferred to call the “Third World debt crisis”. But the crisis was made in New and London, not in any Third World nation.

 3^rd World Debt & the Birth of Derivatives

 Loans by the developing world began to default under the regime of sky-high interest rates combined with falling exports. This was a deliberate policy in order to get physical wealth from these debtor nations, such as mines, agricultural land, national utilities, oil fields, and so on. These losses led the banks to find a new source of income to shore up their battered balance sheets. Thus, was derivatives born with the financial system.

The decade of the 80s was characterized by these debt crises, while at the same time, the US stock market boomed. This came to an end with the derivatives-induced stock market crash in 1987. Starting in 1980, derivatives entered the financial system. First started by the World Bank, this trend took hold within Wall Street.

Starting in the 1990s, derivatives regularly unleashed bombs within the financial system. These have cost billions to banks, companies, municipalities and individuals. This was highlighted in the 1997-1998 stock market and financial crises. From this point on, financial results of banks and companies began to be faked- as a means to hide losses. But not all such blunders become public knowledge. As everyone knows, banking is to a great extent a confidence trick. Banks only last as long as their depositors believe that their deposits are safe, so bankers see it as a duty to reassure the public even if that means misleading them. It is normally not until a bank is in direct trouble that the public ever gets to hear about it.

Just because the financial system did not crack in 2008, does not mean that a somewhat bigger shock could not create the ultimate financial nightmare – what the bankers call systemic risk – because if we can be sure of anything about the financial system is that something will eventually go wrong.

It is not a question of if, but when. These past financial eruptions are but a precursor to the “big one”, a reverse-leverage disintegration of the entire financial system in a matter of days, or hours.

The Crash – It’s After-Effects

Today, (November 2024), we have the biggest financial bubble in history. Every financial institution in the world is bankrupt, or close to it. Global financial turnover is about $6 trillion a day, with obligations based in this financial system. Most of these obligations are invisible, but they make themselves visible when somebody tries to collect. It’s like a gambling debt. It’s only when the guy comes to collect it, then it becomes visible. Only then is the family aware of what’s going on.

In a chain reaction, we find people rushing to try and collect, not because Wall Street is collapsing, but because the derivative market is collapsing. Banks and speculators are trying to save themselves.

Within a period of as short as 3 working days, the banks will not only collapse, but also the entire financial system will vaporize. It will be an implosion, because of the ratio of unpayable debts coming due at once, hitting the virtually non-existent margin of assets to cover it. For example: Look at your wallet. How much of your money is in electronic form? How much of your money is actually cash? How many dollars/euros/pounds do you withdraw from the bank, and deposit – money- as opposed to electronic deposits and electronic withdrawals? How much credit that you rely upon, comes in the form of electronic credit as opposed to cash?

What does that electronic credit mean? It means you have a banking institution, which guarantees the conversion of that electronic credit into money. Now, what happens if that institution suddenly, no longer functions? You are there with a card; it is no good. Now, what happens in about 3 or 5 days’ time at the local supermarket? They are functioning on electronic money. What happens when the current stock of groceries runs out – and there will be a rush for groceries? What happens? They can’t get more groceries. The supply chain breaks down. Institutions break down. In modern economies, people do not realize how vulnerable they are. We no longer have local farms. We depend upon credit, especially electronic credit, and local stores and we get by through the week, largely on the basis of electronic credit. What happens if that system of electronic credit breaks down? Then you actually get conditions of mass starvation throughout the world. The whole system of commerce comes to a standstill.  And that is what we are facing, unless something is done to deal with that.

The weakest part of the system lies in the interbank payment system (details of this will be explained in another issue) that, in turn, depends upon the extent of losses incurred by the major players in the market.

JP Morgan Chase

To give an example: JP Morgan Chase has an equity capital of $ 178 billion; assets (loans) of $2.1 trillion. And a derivative book of $78.7 trillion! This was as of December 31, 2019. That’s five years ago. In other words, its equity capital is equal to .24% of its derivative book. A loss equivalent to just .25% of its derivative portfolio would wipe out JP Morgan Chase’s entire equity! The ratios are slightly better for the other large international banks. That tiny margin between existence and disintegration is a dominant feature of the international financial system today, and this is what has financiers, the regulators, and the politicians terrified. One false move and poof! The whole thing blows.

To understand the nature of the derivatives market, we must leave the world of mathematics, and enter the world of parasites. Picture a dog with a very bad case of fleas, the dog representing the productive sector of the economy, and the fleas representing the worst elements on Wall Street. During the 1970s and 1980s, the fleas built up huge trading empires, trafficking in the flesh and blood of the dog. The fleas were so successful that the once-powerful dog began to dramatically weaken, and no longer produced enough blood to allow the fleas to continue trading in the manner to which they had become accustomed. Being clever critters, the fleas came up with a solution that pleased them all. They began trading in blood futures. Since they were trading in futures rather than the actual “product”, they were no longer limited by the amount of the blood they could suck from the dog. The level of trading expanded dramatically, and the fleas became rich beyond their wildest expectations. Right up to the point that the dog died. That, in essence, is the nature of today’s derivatives markets, and the global financial system as a whole. In the brave new world of derivatives, the big banks have blown up with some regularity; the landscape is littered with the detritus of derivative failures.

To sum up: the huge mass of financial values in the world economy has the form of an inverted pyramid. On the bottom of the pyramid, we have the actual production of material goods. Above that, is the commercial trading in commodities, and real services. Above that, we have the complex, interconnected structure of debt, stocks, currency trading, commodities futures, and so on. Finally, at the top, we have derivatives and other forms of purely fictitious capital.

This strange object is growing in a very unbalanced way: the upper layers – starting with derivatives – grow much faster than the lower layers. But, what is happening at the very thin base of the pyramid, which represents the real, physical economy? Actually, it is not growing at all. In fact, the world’s physical economy has been stagnating, even declining, since the 1970s.  Looking at the situation for the world as a whole, we can see that the portion of physical output flowing back into agriculture, industry, and infrastructure has been decreasing. At the same time, fictitious capital is growing at an accelerating rate.

What is actually happening, is that the productive base of the world economy is being ‘sucked to death’ by the pyramid –shaped financial bubble. This is most clearly seen by the effect of the massive debt accumulation, which is causing farms and industries, and even entire governments, to shut down. The whole financial bubble depends, directly and indirectly, on squeezing” increasing amounts of income flows from the material base of the world economy.

This is the background for the call of globalization and free trade by New York and London. When nations around the world subscribe to these policies, they leave their economies wide open to be looted by these two networks. Both London and New York are desperately trying to prop up the financial bubble, and it needed to “open” the economies of various nations, in order to facilitate its looting of these economies. When these nations resist, their leaders are destabilized by “political scandals”, or worse, when the entire nation itself is targeted for destabilization.

America is very close to bankruptcy. It survives only by the tyrannical use of raw political, financial, and military power, to exact tribute from much of the rest of an already looted world. The world has been pumping roughly $3 billion per day into the US, in order to keep America going. Now, they have become very tired. In this regard, the establishment of the AIIB, by China, is very eagerly welcomed by the world, with the exception of the US.

 The current economic and financial crisis is not something which might happen. It is something that is already underway. What we do not know at this stage is that when the already existing, hopeless bankruptcy of the system will explode into the streets – is whether this will occur as a single event, or as a cumulative effect of a chain-reaction series of crisis, ricocheting around the world.

Whenever these two networks find their economic, financial, and political systems threatened, they react with VIOLENCE. In other words, when they cannot control the world by means of their financial and economic systems, they use the desperate action of the FIST to destroy and crush anybody who might be in their way.

We are now in such a period. We have the worst finance and monetary crisis in modern history.  While the financial elite are bailing out of the stock markets, fools like us are persuaded to buy yet more shares in the same markets. All the largest bank groups are technically bankrupt. The situation in Europe is even worse. Of the estimated 40 trillion Euros of loans on its books, almost 25%, or 10 Trillion worth, are ‘non-performing’. These loans cannot be repaid to the European banks. At the heart of the EU banking cartel are the Rothschild-controlled banks. They are, without exception, all broke.

Two major events at the end of the 1980s were to have profound impact on the world over the next few decades. The first was the collapse of the Soviet Union in 1989.  For the US and the Rockefeller Empire, this meant no more opposition to their quest for global domination.

The second is in regards to Israel and the “40-year curse”. This relates to God’s punishment on them when they refused the command of God and Moses to enter Palestine, after their rescue from Egypt. As a result, God cursed them to wander in the Sinai desert for 40 years, and much later were they able to enter Jerusalem. So, the Rothschild’s and the Talmudic creed figured that if Israel can survive 40 years in the Middle East, then nothing can stop them achieving their goal of a “greater Israel “.

Politically and in other areas, the period 1988-1990 was a pivotal time in our current history.

The story continues in Part 2.