The
Collapse Of The Western Fiat Monetary System May
Have Begun
By Peter
Koenig
April 24, 2016
"Information
Clearing House"
-
On 19 April
2016, China was rolling out its new gold-backed yuan.
Russia’s ruble has been fully supported by gold for
the last couple of years. Nobody in the western
media talks about it. Why would they? – A western
reader may start wondering why he is constantly
stressed by a US dollar based fiat monetary systems
that is manipulated at will by a small elite of
financial oligarchs for their benefit and to the
detriment of the common people.
In a recent
Russia Insider article, Sergey Glaziev, one of
Russia’s top economists and advisor to President
Putin said about Russia’s currency, “The ruble Is
the most gold-backed currency in the world”. He went
on explaining that the amount of rubles circulating
is covered by about twice the amount of gold in
Russia’s Treasury.
In addition
to a financial alliance, Russia and China also have
developed in the past couple of years their own
money transfer system, the China International
Payment System, or the CIPS network which replaces
the western transfer system, SWIFT, for
Russian-Chinese internal trading. SWIFT, stands for
the Society for Worldwide Interbank Financial
Telecommunication, a network operating in 215
countries and territories and used by over 10,000
financial institutions.
Up until
recently almost every international monetary
transaction had to use SWIFT, a private institution,
based in Belgium. ‘Private’ like in the US Federal
Reserve Bank (FED), Wall Street banks and the Bank
for International Settlements (BIS); all are
involved in international monetary transfers and
heavily influenced by the Rothschild family. No
wonder that the ‘independent’ SWIFT plays along with
Washington’s sanctions, for example, cutting off
Iran from the international transfer system.
Similarly, Washington used its arm-twisting with
SWIFT to help Paul Singer’s New York Vulture Fund to
extort more than 4 billion dollars from Argentina,
by withholding Argentina’s regular debt payments as
was agreed with 93% of all creditors. Eventually
Argentina found other ways of making its payments,
not to fall into disrepute and insolvency.
All of this
changed for Argentina, when Mauricio Macri, the new
neoliberal President put in place by Washington,
appeared on the scene last December. He reopened the
negotiations and is ready to pay a sizable junk of
this illegal debt, despite a UN decision that a
country that reaches a settlement agreement with the
majority of the creditors is not to be pressured by
non-conforming creditors. In the case of Argentina,
the vulture lord bought the country’s default debt
for a pittance and now that the nation’s economy had
recovered he wants to make a fortune on the back of
the population. This is how our western fraudulent
monetary system functions.
China’s
economy has surpassed that of the United States and
this new eastern alliance is considered an
existential threat to the fake western economy.
CIPS, already used for trading and monetary exchange
within China and Russia, is also applied by the
remaining BRICS, Brazil, India and South Africa; and
by the members of the Shanghai Cooperation
Organization (SCO), plus India, Pakistan and Iran,
as well as the Eurasian Economic Union (EEU –
Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and
Tajikistan). It is said that CIPS is ready to be
launched worldwide as early as September 2016. It
would be a formidable alternative to the western
dollar based monetary Ponzi scheme.
The new
eastern monetary sovereignty is one of the major
reasons why Washington tries so hard to destroy the
BRICS, mainly China and Russia – and lately with a
special effort of false accusations also Brazil
through a Latin America type Color Revolution.
In
addition, the Yuan late last year was accepted by
the IMF in its SDR basket as the fifth reserve
currency, the other four being the US dollar, the
British pound, the euro and the Japanese yen. The
SDR, or Special Drawing Right, functions like a
virtual currency. It is made up of the weighted
average of the five currencies and can be lent to
countries at their request, as a way of reducing
exchange risks. Being part of the SDR, the yuan has
become an official reserve currency. In fact, in
Asia the yuan is already heavily used in many
countries’ treasuries, as an alternative to the ever
more volatile US dollar.
It is no
secret, the western dollar-led fiat monetary system
is on its last leg – as eventually any Ponzi scheme
will be. What does ‘fiat’ mean? It is money created
out of thin air. It has no backing whatsoever; not
gold, not even the economic output generated by the
country or countries issuing the money, i.e. the
United States of America and Europe. It is simply
declared “legal tender’’ by Government decree.
No pyramid
scheme is sustainable in the long run and eventually
will collapse. It was invented and is used by a
small invisible upper crest of elite making insane
amounts of profit on the back of the 99% of us.
Since these elitists are in control of the media
with their lie propaganda, as well as the
warmongering killing machine, US armed forces, NATO,
combined with the international security and spy
apparatus, CIA, MI6, Mossad, DGSE, the German
Federal Intelligence Service (BND) and more, we are
powerless – but powerless only as long as we ignore
what’s really going on behind the curtain.
Our western
monetary system is based on debt has all the
hallmarks of a failing global monster octopus. The
US banking system was deregulated in the 1990’s by
President Clinton. The European vassals followed
suit in the early 2000’s. About 97% of all the money
in circulation in the western world is ‘made’ by
private banks by a mouse click in the form of
‘loans’ or debt. Every loan a private bank hands out
is a liability on that bank’s books; a liability
that bears interest, the key generator of the banks’
profits. Profit from thin air! No work, no
production, no real added value to the economy.
If and when
the banks within this web of debt begin recalling
their outstanding liabilities, they may set a
non-stoppable avalanche in motion – leading to a
chaotic end of the system. This end-run may have
just begun. We have seen a gradual build-up since
the end of WWII with the armament of the Cold War
farce, and a high point with the manufactured
sub-prime crisis of 2007 / 2008 / 2009, prompting an
artificial and endless global economic crisis which
may come crashing down in 2016 / 2017.
The damage
may be humongous, leaving behind chaos, poverty,
famine, misery – death. With the invisible ruling
elite having cashed in, remaining on top and being
liable to start again from scratch. – If we let
them. It always boils down to the same: An
uninformed people can be manipulated at will and is
left in awe when hit by unexpected events, like acts
of terror by bombs or banks.
Let us be
crystal clear – we are all uninformed as long as we
listen to and believe in the mainstream media –
which are controlled by six Anglo-Zionist media
giants, feeding the western public with 90% of the
information, the so-called ‘news’ that we consume so
eagerly every day; the barrage of lies that repeat
themselves in every western country every hour on
the hour – and, thus, become the truth. Period.
We must get
out of our comfortable armchairs, listen to that
innermost spark in the back of our minds, telling us
against all avalanches of lies that there is
something wrong, that we are being fed deception. We
have to dig for the truth. And it is there – on
internet, on alternative media, like Global
Research, Information Clearing House, VNN, The Saker,
NEO, Russia Today, Sputnik News, PressTV, TeleSUR –
and many more credible sources of truth-seekers.
Back to the
impending collapse. – The ground rules for our
pyramid monetary scheme have been laid in 1913 by
the creation of the FED. Again, the FED is an
entirely private, Rothschild dominated banking
institution that serves as the US Central Bank. It
is the omnipotent dollar making machine. It was
fraudulently and secretly conceived in 1910 on
Jekyll Island, Georgia, and described by Jekyll
Island history (http://www.jekyllislandhistory.com/federalreserve.shtml
) as the “duck hunt” which
“included Senator Nelson Aldrich, his personal
secretary Arthur Shelton, former Harvard
University professor of economics Dr. A. Piatt
Andrew, J.P. Morgan & Co. partner Henry P.
Davison, National City Bank president Frank A.
Vanderlip and Kuhn, Loeb, and Co. partner Paul
M. Warburg. From the start the group proceeded
covertly. They began by shunning the use of
their last names and met quietly at Aldrich’s
private railway car in New Jersey.”
The
concoction of these secretive “duck hunters” became
in 1913 the privately owned Rothschild dominated
Federal Reserve System, the US central bank by
deceit.
After
signing the FED act into existence, President
Woodrow Wilson declared,
“I am a
most unhappy man. I have unwittingly ruined my
country. A great industrial nation is controlled
by its system of credit. Our system of credit is
concentrated. The growth of the nation,
therefore, and all our activities are in the
hands of a few men. We have come to be one of
the worst ruled, one of the most completely
controlled and dominated Governments in the
civilized world no longer a Government by free
opinion, no longer a Government by conviction
and the vote of the majority, but a Government
by the opinion and duress of a small group of
dominant men.”
The
Anglo-Saxon system had a central bank in England
since way back in 1694. It was then already
controlled by the Rothschilds, as was the entire
banking system. Baron Nathan Mayer Rothschild once
declared:
“I care
not what puppet is placed upon the throne of
England to rule the Empire on which the sun
never sets. The man that controls Britain’s
money supply controls the British Empire, and I
control the British money supply.”
The
Rothschild family’s fortune cannot be properly
estimated, but it must be in the trillions. What
Baron Nathan Mayer Rothschild may have said some 300
years ago, still holds true to this day.
No wonder,
breaking loose of this sham monetary scheme is
number one priority of most countries that treasure
sovereignty, autonomy and freedom, though they do
not dare say so openly, lest the empire lashes out
at them punishing them with the very financial
terror they want to escape from. And lashing out at
the unaligned world the empire does, like a dying
beast, attempting to pull with it much of the living
world into its own shoveled grave.
Is it
therefore coincidence or a rather a purposefully
planned convergence of several events as a last
ditch effort first to ravage then to salvage as much
as possible before the collapse?
On 10
April, Zero Hedge reports “Austria Just
Announced A 54% Haircut of Senior Creditors in First
“Bail In” Under New European Rules”. The
Austrian “bad bank”, the failed Hypo Alpe Adria,
that became Heta Asset Resolution AG after the
government’s nationalization, found a US$ 8.5
billion hole in its balance sheet, enough to trigger
the new European ‘bail-in’ rule. Is it coincidence
that also in Austria a major bank failure triggered
the Great Depression also on a 10th of
April – in 1931? – This is a first in Europe. Be
prepared for others to follow, as over-extension of
European banks is estimated in excess of a trillion
dollars.
On 15
April, the New York Times reported that – Five of
Wall Street’s eight largest banks are in defiance of
the US banking regulator. The FED and FDIC said that
“JP Morgan, Chase, Bank of America, Wells Fargo,
State Street and Bank of New York, all lacked
‘credible‘ plans to enter bankruptcy in the event of
a financial crisis.” These banks have until October
2016 to comply. Under the new rules a tax-payer
bail-out would be unlikely. Hence ‘bail-ins’ could
affect millions of depositors and shareholders,
their funds being stolen in order to self-rescue the
too-big-to-fail banks. After all, non-compliance
with the regulator’s requests, or insolvency, can
easily be manufactured as a legal base for stealing
common people’s savings. No worries, the TBTF banks
will not go away, but your savings may.
The CIA
released Panama Papers (for who still doubts about
the CIA involvement in the release of the Panama
Papers,
read here
http://journal-neo.org/2016/04/09/the-panama-papers-the-people-deceived/),
aimed in a
most rudimentary way at defaming the ‘usual
suspects’, Presidents Putin and Assad, as well as
Iran, Venezuela, Brazil, of course – and others.
Strangely no notable EU or US citizens or
corporations were on the list. Would anybody
seriously believe that Mr. Putin, a former KGB
agent, would be so ignorant as to putting his
fortune (even if he had any to hide) into Panama,
the epitome of a US puppet state, where you can’t
flush a toilet without Washington knowing it?
Some token
neocons appear in the published papers, like
Argentina’s new ‘Washington appointed’ President
Mauricio Macri, who is running amok ruining his
country. Within less than four months he has rolled
Argentina’s economy back by ten years, raising
poverty from below 10% in November 2015 to 34% by
the end March 2016. The Empire needs him to keep
gradually turning Argentina into chaos, however not
too quickly, lest he may be ‘deposed’ and replaced
by a US adversary – that would not at all be
appreciated in Washington. For the types of Macri
that made it on the list, the Panama Papers are a
warning signal to keep them in-check.
The
publication of the Panama Papers may also be an
incentive for US citizens and corporations to bring
home trillions of undeclared dollar holdings stacked
away in overseas tax havens into homeland financial
shelters like those in Delaware, Wyoming, South
Dakota and Nevada, thereby helping strengthen the
gradually decaying dollar.
Simultaneously, some European countries and Japan
introduced negative interest rates, so as to
increase monetary liquidity, thereby hoping
stimulating an ever stagnant economy. That’s the
pretext. In reality however, negative interests are
but a precursor to a wholly bank controlled
financial system. Normally ‘bail-ins’ and negative
interest would cause a run on the banks. This has
not happened yet.
In
Switzerland, one of the first countries to introduce
negative interests, the Swiss National Bank reported
that the demand of the 1,000 franc notes – one of
the world’s highest value denominations (apparently
to be maintained despite ECB Draghi’s call for
elimination of high denomination bank notes) –
increased by 17% (by CHF 4.7 billion – US$ 4.85
billion) in December 2014, the month following the
introduction of negative interests. May it be an
indication that the Swiss have quietly started
hoarding big-denomination cash?
Future
hoarding and runs on the banks will be countered by
the introduction of a cashless society, i.e. all
monetary transactions will gradually become
electronic. The process has already begun. In Sweden
and other parts of Europe, as well as Japan,
cashless supermarkets and department stores claim
big success, especially with the young consumers,
who happily play along paying electronic cashiers by
swiping their cell phones in front of an electronic
eye.
The Young
and Innocent – if they only knew that the banking
oligarchs want to control their money and enslave
them with a ‘fun gadget’, they may decide to
resist. But well know those who control the system
that the young are the drivers of the future. We,
the old resistance will eventually die out. Problem
solved. – But we are not dead yet. The Times are
A-Changing… (Bob Dylan, 1964).
The
nefarious trio – ‘bail-ins’, negative interests, and
a cash free society – will make living in the
industrialized ‘first world’ a sheer nuisance, a
stressful dance on toes, as the emperor’s proverbial
Damocles Sword hangs intimidatingly above us.
Washington
may have one last joker up its sleeve –
reintroducing the ‘gold standard’, the very gold
standard that Nixon abandoned in 1971. The US have
also been accumulating huge amounts of gold over the
past 25 years. A new US dollar gold standard would
most likely be set at a ratio that would wipe out
all US debt, including future ‘unmet obligations’
(GAO – General Accounting Office) of about US$ 125
trillion. It would attempt to keep the western
industrialized world in Washington’s orbit, but
might lose most of the developing world owning
natural resources coveted by the west. These
countries oppressed and colonized for centuries are
likely to gravitate to the new China-Russia alliance
– leaving the outsourced and outwitted west alone
without workforce – and with a massive but outdated
military power.
To counter
the build-up of this criminal last ditch sham by the
western Zionist banking czars, China and Russia have
been preparing over the last few years an
independent financial system, delinked from the US
dollar and which now incorporates the BRICS, the SCO
nations, as well as the Eurasian Economic Union.
This association of countries and economies account
for about half the world’s population and at least
one third of the globe’s economic output; a fact
totally ignored by the mainstream media, for obvious
reasons. The Machiavellian sinking ship does not
want its passengers to jump to safety.
The 19
April 2016, announcement by China of its gold-backed
yuan, no longer convertible into dollars, may just
trigger an economic shift into the ‘eastern camp’.
Many countries are wary and tired of western
exploitation, enslavement, threats of sanctions,
oppression and an ever present danger of invasion by
the killing machine. The decoupling of the dollar by
a third of the world economy may indeed open new
horizons, creating new alliances, new hope for a
more equal and just world.
Peter Koenig
is an economist and geopolitical analyst. He is also
a former World Bank staff and worked extensively
around the world in the fields of environment and
water resources. He writes regularly for Global
Research, ICH, RT, Sputnik, PressTV, CounterPunch,
TeleSur, The Vineyard of The Saker Blog, and other
internet sites. He is the author of
Implosion – An Economic Thriller about War,
Environmental Destruction and Corporate Greed
– fiction based on facts and on 30 years of
World Bank experience around the globe. He is also a
co-author of
The World Order and Revolution! – Essays from
the Resistance. |