Elaine Meinel Supkis
Our paper money has 'In God We Trust' because our currency is backed by absolutely nothing terrestrial. I suppose God could slay Greenspan and Bernanke with lightning bolts to punish them for printing money like crazy. But the Chinese lightning bolt coming in with the Russian one will do the trick, I suppose. FOREX reserves matter. This is why so many of our trading rivals---we have no partners---are amassing huge FOREX reserves while we spend like crazy. This week, the Federal Reserves issued its annual report. Yikes.
The issuing of this report is greeted with the usual yawns. Ho-hum, all the numbers suck! What else is new? Well as the opening paragraph of this report which would, I assume, call for the arrest of all the officers issuing it as well as the politicians who have negotiated our nation into bankruptcy...
Reading the opening lines steams me up pretty badly. No matter which direction we look at our situation today, it is totally grim. Even though the inevitable effects of running our collective financial matters isn't showing up in stark form today doesn't mean it won't ever show up a la the Grim Reaper. Indeed, like a fat market hog being fed before being carted off to the butcher, we imagine the fat we are accumlating eating swill is a sign that beautific days are a'dawning forever and ever.
It is easy to fool people who have no access nor interest in the charts, graphs and numbers created or tracked by an army of dedicated civil servants, all of whom I salute and respect. These nameless people patiently track everything and give their bosses fair warning. And the message is always ignored or explained away by the bosses who have only political ends in mind or worse, much worse, are working with very rich people to betray our own economic interests and our country's need to control its own trade and its own finances.
Crunching the numbers in this report isn't easy and this is due to the intercession of the political bosses who want to hide reality so they either explain it away or ignore it or leave it bare and naked on the page with no red lines and underlined sections. The online edition of this document is hard to use due to low pixel number and tiny print. Even when I moved it into photoshop, the numbers were virtually impossible to read. But table 11 is highly important because it is a history of the Federal Reserves and it tells an interesting inflationary story.
I decided to draw a chart off of the raw data. Oh-ho! An interesting little game here! In 1997, the interest on Federal Reserve Notes vanished! Totally! From the end of WWII to that day, we always had interest on these notes. 1997 happens to be the year Miz Japan decided to bellyflop onto Asia which was in a panic over China taking over Hong Kong, the Bermuda Islands of Asia when it comes to banking, the Swiss Bank of the Chinese systems. Seeing this panic, the Bank of Japan deliberately slew the yen, relentlessly driving it down along with the panicked herd of other Asian currencies from a high of 86 to the dollar to a low that has bounced between 106 to 122 yen to the dollar.
The USA was scared that Japan would die, just die! So we screwed ourselves to save them and at the same time, they gave us this sob story that they were now in this depression, the world's only depression to feature rising export sales, high profits for Japanese exporters and a quick run up to the rear of the USA, the world's largest economy, now Japan, after this 'crippling' episode, sits right smack on top of our backs, laughing all the way to the bank.
Arrigato.
Russian President Vladimir Putin assailed the dominance of the global economy by a small group of developed countries and called on them to recognize a ``new balance of power'' in the world.``The new architecture of economic relations requires a completely new approach,'' Putin said at the St. Petersburg International Economic Forum today. Russia intends to become an alternative global financial center and to make the ruble a reserve currency for central banks, he said.
Traditional institutions such as the World Trade Organization are ``archaic, undemocratic and inflexible'' Putin said. Russia, the largest economy outside the WTO, has been trying to join the group for more than a decade.
Russia talks to China. China doesn't do all that much business with Russia compared to say, Japan or the USA but Russia is of tremendous interest to the Chinese who want to have some sort of control over their giant neighbor to the north. Putin knows the USA doesn't have any control over its own currency except to print more money or charge higher rates, although that is barely possible at this time. The USA has to tip-toe around Russia, China and Japan if it wants all that $2.5 trillion in FOREX reserves to stay put and not pour all over the planet, sinking the world's economic systems. Of course, Europe and the USA have stuck to their interesting suicide pact and are goading rather than courting Putin. The 'alternative' to the world banking system that we run is of course, the Bank of China. And the systems for changing from the British system to the American system and now to the Chinese system is what all these numbers are all about.
Namely, our rule of this earth is already in full sunset. It is only a matter of time before night falls. But it will happen on the Chinese calendar, not our own...unless our government which has granted itself the right for a pre-emptive strike anywhere on earth if any nation is capable of challenging us! Ie: if we launch WWWIII. The temptation for this is great and growing. Which is why there is all this wild talk about stationing missiles all around Russia which is angering Russia and pushing Putin into the arms of the Dragon which is smiling from fang to fang.
Russia isn't bluffing, either. Here are the IMF numbers for Russia this week:
Here are the miserable numbers for the USA, numbers that put us to shame and should make our goverment quake with fear:
Our only economic tool left is our inability to buy stuff made in China. Only China makes much of the stuff we need to use to build things like screws and fastners, just for example. This plan is perilous since we need China for nearly everything we use so carelessly. I read in 'Foreign Affairs' this month an article by a very short-sighted Admiral, Dennis Blair, in his article, 'Smooth Sailing' whereby he boasted that no one can stop American shipping, hahaha! According to this genius, China can't stop ships from coming to the USA like Germany tried to do to Britain in WWI and WWII.
Alas, the whole plan is for China to prevent shipping from moving from KOREA or JAPAN to the USA and they can do this very easily! While not traveling very far or using any sea vessels at all! And this same Admiral thinks Iran can't sink all that oil shipping in the Gulf because they didn't do it during the Iran/Iraq war! And he assumes double hulls will work if Chinese DU-tipped Silkworms rip through one side and water level and out the other. Right!
Indeed, thinking about our Seven Seas and our Navy and our financial situation seems impossible for these guys who show all the arrogance and foolishness of the British Navy and bankers in July, 1914. Both in WWI and WWII, Russia refused to fight Germany in the beginning and this nearly destroyed Britain each time. Only the USA saved them. But this coming conflict will be utterly different if Russia and China are allies and Europe is cut off by the Muslims who take over Saudi Arabia in the name of Bin Laden! Then, no one needs to sink a single ship. There will be no ships! NONE. And none from China, either! They will boycott the empires by simply staying home!
And are the bankers and military geniuses working for the American/European/Japanese Sphere of Prosperity sane? How about this quote from this week's IMF press conference:
QUESTIONER: The other question is regarding the Chinese stock markets. There's a lot of volatility. Any comments from the Fund on that and the impact of that generally and how closely is the Fund watching it?MR. HAWLEY: There's no reason to believe that the volatility in China's stock market will have a significant effect on China's economy or on the international economy or world financial markets.
My god. That is too pathetic. Give Mr. Hawley a bone and pat his little head! Good puppy, now don't piddle on the carpet. Sit.
China knows they have us in their grip. Whether the dragon squeezes our balls or rips our head off, it is up to it, not us. We can only make faces at it while it considers how it wants to cook our geese.
Thanks for the post mate.
Posted by: Forex Tracer | June 16, 2008 at 01:35 PM