The Brewing
Collapse of the Western Monetary System
By Peter
Koenig
August 24,
2016 "Information
Clearing House"
-
Germany has
just warned its citizens of an upcoming catastrophe
and urged them to stockpile food, water and money
for at least 10 days, to be autonomous and
independent until the government has caught up
putting the necessary public safety systems in place
– in case of a ‘catastrophe’. There was no mention
on the type of disaster awaiting them. A war, an
economic and or monetary collapse, or both? – The
warning was later downplayed as part of a ‘routine
exercise’ in Germany’s new defense strategy.
On a
related note, against many Members of Parliament and
several ministers,
the German Bundeswehr (army) has declared Russia as
an enemy nation. This is akin to a
declaration of war. The head of the Foreign Affairs
Committee of the Russian State Duma, Alexei Puschkow,
has posted the Twitter message:
‘The decision of the German government declaring
Russia to be an enemy shows Merkel’s
subservience to the Obama administration.’
The idea of
the German warning is to scare people. People who
are afraid can be easily manipulated. While buying
supermarkets’ shelves empty, they will ask for more
police and military protection. That’s precisely
what Washington and the EU want – a militarization
of Europe. Germany, being Obama’s chief vassal, is
the mouthpiece for the rest of Europe. At the same
time, this scare tactic is an indirect warning of a
threat of aggression from Russia. The past weeks of
western lie-propaganda have shown Russia’s
protection of Crimea with heavy maneuvers in the
Black Sea, depicting them as a preparation of war
towards the west. Never mind that Ukraine’s
self-styled lord Poroshenko has threatened to take
Crimea back, amassing troops and tanks at the border
of this historic and strategic Russian peninsula.
Of course,
things do not look good for the US-NATO led West
with its EU stooges. Turkey’s President Erdogan has
turned away from the notorious west to Mr. Putin and
may be abandoning his alliance with Washington,
Brussels – and NATO. Russia has asked Ankara to use
its Incirlik airbase in the south, close to the
Syrian border, currently mainly occupied by NATO,
storing some 50 US nuclear warheads and uncountable
US fighter jets and helicopters, plus housing at
least 5,000 US-NATO troops. Turkey’s Prime Minister,
Binali Yildirim, said last Saturday, that Russia
could use the base, but denied that any such request
has been made by Russia. In fact, according to
EurActiv.com, “the Pentagon has initiated the
transfer of 20 B61-type aviation bombs with nuclear
warheads from the Turkish Incirlik air base to the
Deveselu base in Romania currently hosting the US
missile shield.” Although the Romanian Foreign
Ministry has denied this news, it is nonetheless
largely credible, says Valentin Vasilescu of
Russia’s katehon.com.
Incidentally, Incirlik is the base from which the
two Turkish fighters took off to shoot down the
Russian fighter jet Su24 patrolling the
Turkish-Syrian border last November. The two pilots,
one of whom was the killer, were either CIA agents,
or were acting on CIA orders. It is known that
Incirlik is infested with dozens of CIA agents.
President
Erdogan’s new alliance with Russia, his recently
re-established relation with his old friend Bashar
al-Assad, Turkey’s supposed closing of her borders
to the Islamic State (IS-ISIS-Daesh) at the request
of Russia, plus Iran putting her Hamadan base at
Russia’s disposal, making Russia, Iran, Syria,
Hezbollah and (perhaps) Turkey the new axis of
stability and maybe peace in the Middle East, is not
boding well for the West. It is more than a loss of
prestige. The area contains an enormous wealth of
hydrocarbons and other natural resources – and the
new axis threatens to block the Zionist expansion
towards a Greater Israel that would cover about a
third of the current area called Middle East,
including all of Palestine, Jordan, Syria, parts of
Saudi Arabia and Iraq. This, and for achieving world
hegemony, Full Spectrum Dominance, the
overall objective of the ever ongoing PNAC (Plan for
a New American Century), is what Washington is
fighting for. No small matter. And not easy to let
go.
——
It would
not be surprising if some bold aggression –
militarily, monetarily or both – by the West would
rock the world. Indications to this effect are
plentiful, other than the German appeal to her
citizens to hoard food and money.
Could a
fabricated incident, like a false flag event, in the
Middle East trigger a Russia – US-NATO
confrontation? For example, Syrian Government war
planes a few days ago were bombing for the first
time in the five-year Syrian ‘civil war’ Hasaka, a
stronghold of the Kurdish YPG (People’s Protection
Units), basically a group of mercenaries, supported
and funded by the US and NATO. The leader of YPG is
allegedly affiliated with Mossad. Syria’s attack was
in response to the YPG’s killing of civilians and
Syrian Army soldiers. Was this Syrian attack
provoked by YPG? Syria has repeatedly said that any
foreign and uninvited foreign intervention on her
territory would not be tolerated and immediately
fought back. The US instantly sent a warning to
Syria that US-NATO war planes may retaliate against
President Assad’s forces – which in turn are backed
by Russia. Could that be an orchestrated reason for
an imminent US-Russia clash? – Such a confrontation
would have ramifications way beyond the Middle East
and could escalate to WWIII.
It is hard
to believe that Washington would risk a war with
Russia, being well aware of Russia’s superiority in
the air, as well as on and under the sea with latest
generation technology and nuclear war heads. But the
exceptional nation on a declining course, knows no
scruples pulling the entire humanity into her
self-made abyss.
Another
scenario of a world-shaking catastrophe may be
financial. Lord Jacob Rothschild of the ultra-rich
Rothschild family, recently proclaimed that “the
western central bankers are conducting the
greatest experiment in monetary policy history
with consequences impossible to predict.” He added
that the world is in ‘uncharted waters’. Although he
doesn’t precisely explain what he means, he refers
to ‘unintended’ low interest rates with ‘30%
of global government debt at negative yields’. He
also talks about the almost unlimited ‘Quantitative
Easing’ (QE – indiscriminate production of money) of
western central banks. As a consequence, he says,
the Rothschilds are shifting their money gradually
away from the dollar into gold and other, presumably
western ‘aligned’ currencies. He didn’t specify.
Why would a
member of one of the most secretive and the globe’s
richest families, the Rothschilds, come out in the
open telling the world what he is doing with his
investments? – Is there a purpose behind it? –
Almost for sure. But how does it fit into what the
FED-ECB-Wall Street may have concocted to happen
next? – Is it a hint that the gold standard in one
form or another may return? After all, maybe
envisioning such an advent, Russia and China in the
past 20 to 25 years, since the collapse of the
Berlin Wall, have filled their coffers with gold.
According to Sergey Glazyev, one of Russia’s top
economists, Russia’s currency is covered twice with
the value of gold. China’s Yuan is also fully
gold-backed. Russia is the world’s second largest
producer of gold. The US too has been amassing gold.
Nobody knows exactly how much Russia, China and the
US have accumulated.
——
A few
months ago, talking about the disintegration of the
EU and its currency, the euro, was taboo. Since
BREXIT, the topic is increasingly on the agenda of
most economic fora in Europe. It’s become
‘mainstream’, so to speak. When before the BREXIT
vote people were afraid to touch the subject, today
they dare happily voicing their anger and
disagreements about the sick, inhuman European Union
and its equally sick currency – and how it best
would disappear. That’s good. Daring to talk and
seeing the reality is healthy.
Washington
is of course aware of this. US money circles know
that BREXIT may have inspired a mass movement that
cannot be stopped. Rather than letting the Europeans
take the reins of dissolving their pathetic EU-Euro
tandem, Washington, as usual, wants to call the
shots – so that the dice fall in its favor. There
are several plausible scenarios, all of which are
sheer speculation at this point.
Returning
to the gold standard – may involve a massive
devaluation of the US dollar. It would bring down
the economy of most countries dependent on the
dollar and with large dollar reserves- which would
partially go up in smoke. Also, dollar holdings,
means holding US debt. At home in the United States
it would mean debt would be eviscerated, while
abroad assets held un US-dollar denominated
securities would lose their value. This would apply
to most developing countries still almost
unconditionally tied to the dollar – especially
Africa which holds by most accounts close to two
thirds of the world’s remaining natural resources.
Guess, who may appropriate these resources as
payment against fake and fabricated debt? There is
not much speculation about what would happen with
those in-and-on-the-ground riches.
Worldwide
dollar denominated reserves have dropped in the last
20 years from about 80% of all reserves to below 60%
today and declining. Most European countries may
still have dollar reserves, but also gold. Rather
than speculating over the value of gold – which is
almost entirely in the hands of the BIS (Bank for
International Settlement – Basel, Switzerland),
itself controlled by the Rothschilds, Rockefellers
and a few other Wall Street magnates, they may
decide to take back their sovereignty and return to
their own currency, devalued or revalued as they see
fit, also eviscerating their debt, ‘resetting’ their
system, so to speak.
Brussels,
the ECB (European Central Bank) and the IMF, would
be mere onlookers – and later trying to become the
arbiters on how these countries’ debt maybe
converted into gold. We can just hope that
‘sovereignty’ would indeed mean ‘sovereignty’, and
that listening to stooges such as the ECB and IMF
would be a thing of the past.
Germany,
the Obama vassal numero uno that calls out
the warning to its people – and by extension to the
rest of Europe – may have made a deal under which
they would not lose. – In any case for a local or
new currency to be launched, it may take half a
year. Germany may have prepared for such a move and
hopes in ten days after the disaster hits, it may be
up to speed putting the new system with electronic
tellers and all on stream.
Another
scenario may be that some of the TBTF
(too-big-to-fail) banks, in connivance with the FED,
would call in their outstanding derivatives.
Estimates on worldwide outstanding derivatives range
from about 700 trillion dollars to more than a
quadrillion. This is money not even made of thin
air, it’s just invented. But it could break the
necks of smaller banks, à la Lehman Brothers –
remember September 2008? – That would bring down the
western world’s financial system, all the while
maintaining the dollar hegemony. All or most
derivative denominations are in US dollars.
Whatever
may emerge, it is not a pretty picture for the west.
In July 2016, on the occasion of the 95th
Anniversary of China’s Communist Party, President Xi
Jinping declared “The New World Order is Finished.”
He also evoked the collapse of the US economy and
the disintegration of the European Union. No western
mainstream media covered the event.
What the
West wants to ignore is that there is an alternative
to the fraudulent western monetary system – a
Russia-China based monetary scheme, totally delinked
from the dollar-euro and the western privately owned
FED-BIS-Wall Street manipulated system; a monetary
structure built according to the value and strength
of the member countries’ economies. Instead of
illegal sanctions, blackmail, threats and outright
financial wars for those ‘unwilling’ to submit to
Washington, the eastern perspective offers a
potential of equitable economic development,
fairness in trade to a federation of sovereign
nations.
It is high
time for the freedom loving world to move out from
under the boots of the empire; that we return to a
multi-polar world of equals, that the international
agencies we created to serve humanity are freed from
the claws of their hijackers in Washington and those
who command Washington, that the UN and its
specialized agencies, as well as the International
Criminal Court – even the Olympic Committee – may
operate according to their peoples’ given mandates,
that they may operate without the oppressive fist of
Washington dictating them their terms. ‘Economics
of Peace’ under a new egalitarian monetary
system may lead humanity to freedom and prosperity
for all.
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, The 4th Media,
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. |