The World is Reordering and What It Means for the US

For years literally, we have been chronicling the demise of the US’ power in the world as it has been wrought by the FED. We have witnessed the systemic theft of the wealth of the US by the bankers. Most think that is not a reality. They are all consumers of the “blue pill”. Trillions of dollars have been siphoned from our economy, our infrastructure is crumbling, our CONgress is a joke run by paid clowns, and we have been saddled with the debt of conflict after conflict.

Now, as they say, the final shoe is dropping, and here are a few examples of why is not being covered in our so-called media, which is also a sham. For many months we have been following the actions of the BRICS as they methodically are re-organizing the way the world’s financial markets operate, and the associated trade that will be conducted. Many scoffed at these efforts with the rationale even if the BRICS (Brazil, Russia, India, China, and South Africa) were to be successful, they still wouldn’t be large enough to effect any change.

The FED continued to print money with no asset backing and shipped it to the EU banks to continue the façade that all is well, and the economies of the US and the EU were great, when in fact they were collapsing. Literally the US taxpayers have been indentured to the tune of several trillions of dollars. Here we are seven years later, and even with the draconian measures meted out by the IMF and World Bank on it’s member nation governments in the form of austerity programs, the economies of those nations continues to collapse.

It is not a surprise that these same elite in the US are banging the war drums once again and this time the Russians are once again the bad guys. However, you must put everything in its true context and look at what has happened in Iceland, who now says joining the EU is out of the question or watch what is going on in Greece as they begin to “buck” their bondage.

Panos Kammenos, Greece’s defense minister, spoke to German newspaper “Bild” on Saturday, saying his country’s leaving the euro could precede an exit by Italy and Spain, followed by Germany in the future. “If Greece explodes, Spain and Italy will be next and then at some point, Germany. We therefore need to find a way within the eurozone, but this way cannot be that the Greeks keep on having to pay,” Kammenos told Bild.

Instead of a bailout, Greece needed a debt “haircut” like the one Germany’s creditors had to accept in 1953, Kammenos proposed. He also argued that Berlin should pay World War II reparations to Athens. “All European countries have been compensated for crimes committed by Nazis, except for Greece,” Kammenos said, referring to the gold Nazi soldiers brought back from Athens during the war.

The defense minister also accused Germany of “interfering” in its domestic affairs. His criticism was aimed at German Finance Minister Schäuble, who earlier warned of a “Grexident” which could push Athens out of the euro. “I don’t understand why he turns against Greece every day in new statements. It’s like a psychological war and Schäuble is poisoning the relationship between the two countries through that,” he said.

Meanwhile Germany and France are on a sinking ship, and for all intent and purpose are looking to bail as well. The head of the private intelligence agency Stratfor has for the first time publicly said that the US government considers it to be its overriding strategic objective to work on the prevention of a German-Russian alliance. Blocking that alliance is the only way to prevent an alternative world power capable of challenging extension of the American position of being the world’s lone superpower. He says that the U.S. will fail in that overriding objective; German technology and capital will combine with Russian natural resources and “land-power,” to produce a truly bipolar world: U.S. v. Eurasia. So: he sees the U.S. strategy as being to block that, by weakening both Germany and Russia. That strategy would explain what Obama is doing in Ukraine, and the sanctions that are hurting both Russia and Germany, but Friedman thinks that nothing can work.

On the Asian front, consolidation is also occurring, again without US involvement. Although the US is desperately trying to “fast track” a trade program (TPP), it is not happening. This program is a desperate move executed way too late and would have a devastatingly negative effect on the US economy. In the meantime, Russia and China announced this week that as of today, 17 March, the Moscow Exchange has started trading in a futures contract on the currency pair Chinese Renminbi — Russian Rouble.

The launch has been driven by a substantially increasing Renminbi turnover on the Exchange, growing volume of settlement in the currency between Russia and China as well as newly arising demand for hedging of such transactions. Andrey Shemetov, First Deputy CEO of Moscow Exchange, said: “The launch of the CNY/RUB futures is the next step made by the Moscow Exchange to offer a full range of Renminbi instruments and hedging tools to participants. We expect that the new contract will be liquid and in-demand as other Exchange’s derivatives, and facilitate the trade turnover between China and Russia”.

The contract is cash-settled against the Moscow Exchange CNY/RUB fixing. The contract’s expiry dates are every 15th day of March, June, September and December. IM size is 12%. Metallinvestbank will act as the market maker for the contract. Moscow Exchange’s turnover in the Chinese Renminbi grew 700% in 2014 to RUB 395 bln (CNY 48 bln). The record average daily trading volume of CNY 541 mln was seen in October. Currently, the Moscow Exchange’s derivatives market offerings include nine FX futures: USD/RUB, EUR/RUB, EUR/USD, AUD/USD, GBP/USD, USD/JPY, USD/CHF, USD/UAH, USD/CAD, and USD/TRY, as well as three options: USD/RUB, EUR/USD, and EUR/RUB.

The dominoes are falling fast now. UK, Australia, New Zealand, Singapore and India All Sign On … South Korea Next? The Financial Times now reports that France, Germany and Italy have all agreed to join the China-led international development bank as well, “delivering a blow to US efforts to keep leading western countries out of the new institution.”

This week, 2 major U.S. allies – 2 of the “Five Eyes” – have disregarded American pleas and joined China’s new development bank … alternative to the US-dominated IMF and World Bank lending order. (A third member of the Five Eyes – New Zealand – previously signed onto the Chinese bank.). Specifically, the UK and Australia signed on this week.

The Financial Times reports, quoting a senior US Official: The decision of the UK to join the Chinese development bank was made with virtually no consultation with the US. We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power.

The New York Times reported last week: Fundamentally, Washington views the Chinese venture as a deliberate challenge to those postwar institutions, which are led by the United States and, to a lesser extent, Japan, and the Obama administration has put pressure on allies not to participate.

Zero Hedge predicted last week: In short order Australia and South Korea will likely be on board and at that point, the stigma the US has created around membership will have completely disappeared (if it hasn’t already), opening the door for other US “allies” to join ….

An Op-Ed in The Australian argues: The decision by the Abbott government to sign on for negotiations to join China’s regional bank … represents another defeat for Barack Obama’s diplomacy in Asia. Canberra’s move follows similar decisions by Britain, Singapore, India and New Zealand.

If there is anyone out there who still honestly believes we are not in for a huge devaluation of the dollar and the devastating blows to our world economic position, they are delusional. All we can say at this point is two things. 1). Why do we still continue to allow the FED to establish our monetary policy? And 2). Brace for impact, this is going to be real ugly.

Advertisements

While Congress Diddles, Obama mumbles, and Bernake Fiddles-Rome is Burning

We just heard that the economy is going in the right direction and Pinocchio’s nose grew another 12 inches. Thanks to journalists like Michael Synder, we know the truth and the truth is the economy is getting worse month by month. Here are the facts, just the facts.

The only reason that the official unemployment rate has been declining over the past couple of years is that the federal government has been pretending that millions upon millions of unemployed Americans no longer want a job and have “left the labor force”.  As Zero Hedge recently demonstrated, if the labor force participation rate returned to the long-term average of 65.8 percent, the official unemployment rate in the United States would actually be 11.5 percent instead of 7 percent.

Employment-Population-Ratio-2013-425x255

The percentage of Americans that are actually working is much lower than it used to be.  In November 2000, 64.3 percent of all working age Americans had a job.  When Barack Obama first entered the White House, 60.6 percent of all working age Americans had a job.  Today, only 58.6 percent of all working age Americans have a job. The “inactivity rate” for men in their prime working years (25 to 54) has just hit a brand new all-time record high.

Inactivity-Rate-Men-425x255

In November 2007, there were 121.9 million full-time workers in the United States.  Today, there are only 116.9 million full-time workers in the United States. Only about 47 percent of all adults in America have a full-time job at this point.  The ratio of wages to corporate profits in the United States just hit a brand new all-time low.

When Barack Obama took office, the average duration of unemployment in this country was 19.8 weeks.  Today, it is 37.2 weeks. According to the New York Times, long-term unemployment in America is up by 213 percent since 2007.

According to the U.S. Census Bureau, median household income in the United States has fallen for five years in a row. The rate of homeownership in the United States has fallen for eight years in a row. The gap between the rich and the poor in the United States is at an all-time record high.

Comp vs profits_0If that is not enough to understand how bad the economy is, then consider these facts. Under Barack Obama, the velocity of money (a very important indicator of economic health) has plunged to a post-World War II low. Back in the year 2000, our trade deficit with China was 83 billion dollars.  In 2008, our trade deficit with China was 268 billion dollars.  Last year, it was 315 billion dollars.  That was the largest trade deficit that one nation has had with another nation in world history.

Fortunately, it appears that most Americans are not buying into the propaganda.  According to a new CNN survey, the percentage of Americans that believe that the economy is getting worse far exceeds the percentage of Americans that believe that the economy is improving. However, we as a people are not doing anything to insure our congress and administration are reacting to correct this problem. We have to realize that WE MUST begin to hold these scoundrels responsible for their lack of action. At this juncture that includes most every member of congress, certainly the office of the President, and absolutely the FED decisions that have been made.

The American economy is being dismantled brick by brick and WE remain silent. The middle class is being eliminated and not only to we remain silent, we allow trade agreements like the Trans-Pacific Partnership (TPP) Free Trade Agreement (FTA) to be conducted IN SECRECY!  This compact may significantly limit public protections. The issues being negotiated extend to include “patent and copyright, land use, food and product standards, natural resources, professional licensing, government procurement, financial practices, healthcare, energy, telecommunications, and other service sector regulations.”  The secret process would establish policies binding on future U.S. Congresses and state legislatures on numerous non-trade subjects.

When you begin to marry first the lack of action by the congress to do ANYTHING effective concerning jobs with the outright disastrous monetary policies of the Fed and the SECRET free trade actions of the administration it is hard to deny those whacky conspiracy nuts who are saying the American economy is under attack!

We think every responsible adult should at a minimum pick up the phone and call their Representative or Senator and put them on notice to “GET TO WORK” on the economy or they will join the unemployed that they don’t seem to give a damn about.  So let’s make a New Year’s Resolution that by the second week in January, EVERY voting adult has called their representatives. It is just one phone call! Here is where to find their numbers. http://www.congressmerge.com/onlinedb/ We can do this. We must do this. EVERYONE!