Tag: China

The US / Iraq Spat: What is it Really About? (Occupation, Drones, Oil, Petro$ ..)

Critical thinkers, after a spat or confrontation, will reflect on the encounter and attempt to understand the motives of those involved. This requires getting out of your own shoes and into the shoes of others.

We usually assume the best in others by default. People we meet for the first time we try to give them the benefit of the doubt. Over time we can then compare words with actions and be a pretty good judge of character.

We are also influenced by our upbringing, and our schooling, and if that involves government schools or even most private schools, the bias is there. We have learned of George Washington and the cherry tree (myth), we have learned about Honest Abe (myth) and we have learned about good government.

There is no doubt that this base operating system allows most people to see government as a natural safety net, and a natural “go-to” for any life problem that comes along, the Nanny State can take care of it best. But I digress.

When it comes to thinking about the United States of America, or more accurately, the US Empire, there is a natural inclination to think of American Exceptionalism. Being proud of America to the point of thinking it knows best for every people group around the world is as American as “apple pie”.

So when President Donald Trump says:

Over the last three years, under my leadership, our economy is stronger than ever before and America has achieved energy independence. These historic accomplishments changed our strategic priorities. These are accomplishments that nobody thought were possible. And options in the Middle East became available. We are now the number-one producer of oil and natural gas anywhere in the world. We are independent, and we do not need Middle East oil. (emphasis added)

.. you have to really wonder, what about all the times he references oil in Syria as being critical for the US to protect or wanting 50% of Iraq’s oil revenue to pay for all that the US has done in Iraq since the invasion, is it really about the oil, or things links to and through the oil?

Whitney Webb from a Mint Press article does a great job at looking at all the angles to determine motives. She even references another great thinker, Tom Loungo and his Gold, Goats N’Guns web page in her attempt to get her mind around what Trump, the Neo-Cons and the War Party are angling for:

Yet, given the centrality of the recent Iraq-China oil deal in guiding some of the Trump administration’s recent Middle East policy moves, this appears not to be the case. The distinction may lie in the fact that, while the U.S. may now be less dependent on oil imports from the Middle East, it still very much needs to continue to dominate how oil is traded and sold on international markets in order to maintain its status as both a global military and financial superpower.

Bingo Whitney.

This is the core that fuels the MIC, the Deep State, the War Party as well as the US Empire itself. Without the petrodollar, the US military can no longer have its $1T annual budget, and the whole US economic charade would be revealed.

 

The article continues to say:

As Kei Pritsker and Cale Holmes noted in an article last year for MintPress:

The takeaway from the petrodollar phenomenon is that as long as countries need oil, they will need the dollar. As long as countries demand dollars, the U.S. can continue to go into massive amounts of debt to fund its network of global military bases, Wall Street bailouts, nuclear missiles, and tax cuts for the rich.”

Yes, at its core, this is probably the only long-range thinking the US Empire cares about with the only exception of possibly Israel’s survival.

Historically, Iraq remembers:

It appears that the ever-present role of the petrodollar in guiding U.S. policy in the Middle East remains unchanged. The petrodollar has long been a driving factor behind the U.S.’ policy towards Iraq specifically, as one of the key triggers for the 2003 invasion of Iraq was Saddam Hussein’s decision to sell Iraqi oil in Euros opposed to dollars beginning in the year 2000. Just weeks before the invasion began, Hussein boasted that Iraq’s Euro-based oil revenue account was earning a higher interest rate than it would have been if it had continued to sell its oil in dollars, an apparent signal to other oil exporters that the petrodollar system was only really benefiting the United States at their own expense.

Libya also found out the hard way what happens to countries outside of the US Empire’s orbit.

The tilt away from the US Empire started earlier last year in AUG2019 when Iraq asserted its sovereignty on its border with Syria:

Luongo also argued that the current tensions between U.S. and Iraqi leadership preceded the oil deal between Iraq and China by several weeks, “All of this starts with Prime Minister Mahdi starting the process of opening up the Iraq-Syria border crossing and that was announced in August. Then, the Israeli air attacks happened in September to try and stop that from happening, attacks on PMU forces on the border crossing along with the ammo dump attacks near Baghdad ..

Then, it was Iraq looking at options for its own rebuilding (the US Empire has squandered billions of dollars on projects that help the US Empire more than it does the Iraqi infrastructure, even though the US invasion was a mistake and rightly should have the US bear the expense of rebuilding).

Iraq looked to the east, with China, and found a better deal than the one that Trump offered Iraq:

While Trump demanded half of Iraq’s oil revenue in exchange for completing reconstruction projects (according to Abdul-Mahdi), the deal that was signed between Iraq and China would see around 20 percent of Iraq’s oil revenue go to China in exchange for reconstruction.

It was right after that Chinese conference that Iraq started seeing unrest, “coincidentally”:

Abdul-Mahdi’s delegation to China ended on September 24, with the protests against his government that Trump reportedly threatened to start on October 1. Reports of a “third side” firing on Iraqi protesters were picked up by major media outlets at the time, such as in this BBC report which stated:

Reports say the security forces opened fire, but another account says unknown gunmen were responsible….a source in Karbala told the BBC that one of the dead was a guard at a nearby Shia shrine who happened to be passing by. The source also said the origin of the gunfire was unknown and it had targeted both the protesters and security forces. (emphasis added)”

This is exactly what the US did in Ukraine back in 2014 .. it has the US Empire’s fingerprints all over it.

Then ..

.. after my [Abdul-Mahdi] return from China, Trump called me and asked me to cancel the agreement, so I also refused, and he threatened [that there would be] massive demonstrations to topple me. Indeed, the demonstrations started and then Trump called, threatening to escalate in the event of non-cooperation and responding to his wishes, whereby a third party [presumed to be mercenaries or U.S. soldiers] would target both the demonstrators and security forces and kill them from atop the highest buildings and the US embassy in an attempt to pressure me and submit to his wishes and cancel the China agreement.”

“I did not respond and submitted my resignation and the Americans still insist to this day on canceling the China agreement. When the defense minister said that those killing the demonstrators was a third party, Trump called me immediately and physically threatened myself and the defense minister in the event that there was more talk about this third party ..

Yes, this is the true character of the US empire, in actions, verses the words from George W. Bush in DEC2005:

Just over two-and-a-half years ago, Iraq was in the grip of a cruel dictator who had invaded his neighbors, sponsored terrorists, pursued and used weapons of mass destruction, murdered his own people, and for more than a decade, defied the demands of the United Nations and the civilized world. Since then, the Iraqi people have assumed sovereignty over their country, held free elections, drafted a democratic constitution, and approved that constitution in a nationwide referendum. Three days from now, they go to polls for the third time this year, and choose a new government under the new constitution.

Democracy arrived in Iraq in 2005, but now 15 years later, with the US still occupying this country that it wrongfully invaded, the US wants a monopoly on “re-building Iraq” and “keeping ISIS out of Iraq”.

Whatever, go home US Empire!!

Peace out

-SF1

2020: We Can See Clearly Now

Yes, thanks to a “slight” miscalculation on the part of the US Empire, I think many people will wake up to the fact of what has been coming down for 40 years in the Middle East.

Before this era, there was little terrorism while there were a couple of world wars. Which do you prefer? Personally, I prefer none, not for me mind you, but for my kids and my grand-kids I prefer peace.

The “slight” miscalculation is highlighted in this article that rightly makes prominent what most of MSM (no surprise there) and most people are missing:

The US did not plan to kill the vice commander of the Iraqi Hashd al-Shaabi brigade Abu Mahdi al-Muhandes when it assassinated Iranian Brigadier General Qassem Soleimani on Thursday at 11:00 PM local time at Baghdad airport. Usually, when Soleimani was arriving in Baghdad, security commander Abu Zeinab al-Lami, a deputy officer to al Muhandes, would have welcomed him. This time, al-Lami was outside Iraq and al-Muhandes replaced him. The US plan was to assassinate an Iranian General on Iraqi soil, not to kill a high-ranking Iraqi officer. By killing al-Muhandes, the US violated its treaty obligation to respect the sovereignty of Iraq and to limit its activity to training and offering intelligence to fight the “Islamic State”, ISIS. It has also violated its commitment to refrain from overflying Iraq without permission of the Iraqi authorities.

As the article states, the US and Iraq are both embarrassed by this turn of events that unmasks the US Empire’s true intentions, on behalf of Israel. This has coalesced most of the various militias in the region (except ISIS of course, sponsored by US, Israel and Saudi Arabia) and has now linked former enemies Iraq and Iran to have common ground. It will be interesting the uptake of this outside the region as Russia and China, along with Syria find each others as friends with a common enemy, especially with all the trade sanctions and tariffs that the US has instigated. I am thinking too that the European “coalition” days are numbered as what nation in Europe will side with the US Empire at this point?

So is the US Empire at the 1775 point of the British Empire? An unmasked  and revealed belligerent imperialist force for bad verses American Exceptionalism, a Global Force for Good. Time will tell.

I am pretty sure that with Brexit, and with Trump’s blunder on Iraqi soil, we will all see much clearer in 2020. As more and more people distrust huge government, distrust its partner in crime, the media, there will be all sorts of things that can be revealed in this new year.

One thing I do want to draw attention to is the difference in character between the typical US politician and the man (i.e. labeled a bad guy by Trump) that was murdered after a non-private commercial flight from Damascus, Syria to Baghdad, Iraq:

Soleimani’s handwritten will: “My wife, I have chosen my burial place in the cemetery of the Martyrs of Kerman, Mahmoud knows it. I want my gravestone to be simple. Just write ‘Soldier Qassem Soleimani’ no more titles and phrases.”

Quite the difference, no?

Interesting days to come .. enjoy each day and the blessings that God the Creator has blessed us with in the midst of “wars and rumors of wars” – Jesus in Matthew 24:6.

Hug your kids, your grand-kids and good friends!

I can see clearly now the rain is gone
I can see all obstacles in my way
Gone are the dark clouds that had me blind
It’s gonna be a bright (bright)
Bright (bright) sunshiny day
It’s gonna be a bright (bright)
Bright (bright) sunshiny day

Oh, yes I can make it now the pain is gone
All of the bad feelings have disappeared
Here is that rainbow I’ve been praying for
It’s gonna be a bright (bright)
Bright (bright) sunshiny day

(Ooh…) Look all around, there’s nothing but blue skies
Look straight ahead, there’s nothing but blue skies

-SF1

2019 Trump’s Economic Strategy: Throwing Punches Blindfolded?

Ever since enacting our existing Constitution in 1787/1788, the US has had issues controlling itself. To pay down the war debt, instead of staying the course with the states deciding on their payback schedule, the general government jumped in for the power grab. It has been rough sledding every since.

So here we are in 2019, while US propaganda spins the latest twists of the expanding trade war with China, one of my favorite bloggers, Moon of Alabama, does a great job of setting the context and teasing the truth out of this current situation.

I can only think that Trump sees his time as short even if it is two terms and he sees this area of US policy as the only place he can “play” with the big boys, and perform his legacy business strength, the “Art of the Deal“.

Other areas like foreign policy are in the hands of the neocons and the domestic games hold little real interest to him (except it gives him plenty of material to Tweet about).

Moon of Alabama is balanced enough to say:

Some aspects of China’s trade behavior can and should be criticized. But overall China sticks to the rules of the game, while the U.S. is now breaking these.

It was not China that moved U.S. factories to its country. U.S. managers did that because the U.S. economic system is based on greed and not on the welfare of its citizens.

There are much better ways to get China to change its trade behavior than by bullying and ever increasing tariffs and sanctions.

Bullies don’t play by the rules, from US/Israel/French nuclear development that the US vetoes the UN on WHILE picking on Iran which has dotted the “I” s and crossed all the “T” s .. to the way the US waged war on itself especially in 1864/1865 with the total war mantra, killing civilians, burning homes, stealing silverware, raping the wives and slave women and wrecking havoc over a large portion of the South, bullies never play fair.

Non-bullies almost have to until the bully is significantly weakened, but having over 5000+ nukes with multiple warheads keeps the US in “business”.

Back to the China tariff “strategy”:

The U.S. started a trade war with China by suddenly putting up high tariffs on Chinese products. China countered with tariffs on U.S. products, but was ready to negotiate a fair deal. The negotiations about an agreement were held in English in the United States. The U.S. provided a written draft.

When that draft reached China and was translated to Chinese the relevant party and government institutions were aghast. The U.S. demanded that China changes several of its domestics laws. It essentially demanded a complete change of China’s trade policies and, most infuriating, was unwilling to go back to the old tariff rates, even if China would comply. It wasn’t Xi who rejected the uneven deal, it was the whole Chinese government.

You see, historically, the US likes to portray an “evil bogeyman” in foreign policy struggles like it likes to paint the “lone gunman” in domestic shootings:

U.S. propaganda is always pointing to one person that solely cases everything and therefore deserves all the hate. It once was Saddam, Saddam , Saddam. Then Ghadaffi, Ghadaffi, Ghadaffi, Assad, Assad, Assad, Putin, Putin, Putin. Now it is Xi, Xi, Xi.

So now what? The “negotiations” that supposedly Trump is so good at (like 4D chess moves, etc) seems to have no real pattern. Maybe that is his genius, random chaos?

As Ambassador Chas Freeman lays out at length:

“There is no longer an orderly policy process in Washington to coordinate, moderate, or control policy formulation or implementation. Instead, a populist president has effectively declared open season on China.”

So what is the end game here? Does he want this to become a war that he can blame the neocons on (since they are itching for another conflict to insure the Military-Industrial Complex is well “fed” with government revenue, up to $1.2T annually IF you count the ten different accounts that make up the “military” budget).

China will response in kind and asymmetrically. It now restarts to buy oil from Iran. Ambassador Freeman sees no way how the U.S. could win the game.

China has long prepared for this conflict. Consider Trump’s recent move against the Chinese manufacturer Huawei:

The White House issued an executive order Wednesday apparently aimed at banning Huawei’s equipment from U.S. telecom networks and information infrastructure. It then announced a more potent and immediate sanction that subjects the Chinese company to strict export controls.

The order took effect Thursday and requires U.S. government approval for all purchases of U.S. microchips, software and other components globally by Huawei and 68 affiliated businesses. Huawei says that amounted to $11 billion in goods last year.

So basically, US chip manufacturers are feeling the same way as soybean farmers .. what did Trump do to our market? Consumers may never know the deal they might have had with solar panels.

Maybe Trump has had enough of the presidency and wants to “kick the can” to the next president to deal with, landmines like rising Walmart prices WILL hit his core base, if they can connect the dots.

Things are going to get even more interesting!

-SF1

You Know You Are Only a Tax Slave – When Government Only Sees the (Selective) Producer’s Side in Economics

All the talk from US President on tariffs lately and how China ripped the US off on $5B worth of trade yada, yada, yada. I honestly felt like puking. Here is this reality TV star .. errr I mean president of the USA totally falling for the whole “trade deficit” economic term made popular every now and then to distract citizens (direct tax slaves) from what is really going on.

One would think that twelve years (and more in many cases) of public education would have introduced kids and young adults to the realities of economics, but you must understand that this is “government” education. Need I say more?

I am so glad that Justin Amash (Republican Representitive – MI) called out Pres. Trump on this aversion of his tariff war and his protectionist tendencies and their unintended consequences:

Why is the president of the US, philosophically, the “people’s choice” (part of the balancing attribute of this “experiment” to tweak “representative government” of the executive, legislative and judicial branches), totally all in on making sure that certain producers in the US are protected from foreign competition?

Well, truth be known, there is and has been a consistent propensity since the nation’s birth toward having the general government (as it was called back in 1787 when the coup de’tat that jettisoned the Articles of Confederation and adopted the Constitution in secret) building protective bridges with the republics budding industries (like railroad, steel manufacturing, canal building, etc).

The Whig party from the early 19th century was all about the big business – general government “partnership” (dysfunctional co-dependency) that utilized tariff income, mainly from the southern ports to fund canal projects in the north and subsidize the steel industry since it was new and vulnerable to foreign competition. Abraham was big into this mercantilism philosophy that continued to grow (imagine a government program growing like a cancer) and demand more and more tariff revenue that led to the “Tariff of Abominations” in the 1828 that South Carolina almost decided NOT to pay this tariff:

It set a 38% tax on 92% of all imported goods. Industries in the northern United States were being driven out of business by low-priced imported goods; the major goal of the tariff was to protect these industries by taxing those goods. The South, however, was harmed directly by having to pay higher prices on goods the region did not produce, and indirectly because reducing the exportation of British goods to the U.S. made it difficult for the British to pay for the cotton they imported from the South.

One would think that especially our political leaders would want to learn from history, but in fact, they want short term political bonds with big business to secure funding for the next political election season. By definition, a democracy (which this republic has become) is never interested in long term consequences to the decisions made, it is almost as bad as full on Marxism, socialism and communism in the way it treats future generations of a nation/region.

Last year when Pres. Trump first issues this threat of a tariff increase, Martin Armstrong (of Armstrong Economics) shed some truth on the matter:

The big problem is that Trump FAILS to understand how the economy truly functions. Imposing tariffs on foreign imports because they can produce something more efficiently is NOT protecting American jobs – its is imposing higher costs on the American public.

If America cannot compete against foreign steel and aluminum, the answer is not tariffs, but TAX REFORM and UNION REFORM. If unions fail to understand that demanding higher wages in an UN-competitive manner will only lead to the loss of jobs, then end result cannot be prevented by tariffs.

Once upon a time, New York City was the largest port in the United States. Because of unions and outrageous demands, little by little they killed their own jobs. Shipping moved to New Jersey, Philadelphia, and Virginia. What used to be a viable industry today is just a shadow of what it once was. No matter what the field, everything is subject to competition. Imposing tariffs is simply subsidizing overpaid jobs and higher taxes.

Another popular independent media personality, Pete Raymond, also pointed out to Pres. Trump that 150 years ago, Bastiat had already settled this issue:

What is hilarious is that even Bastiat in 1845 when he wrote this piece, (called “Candlestick Makers’ Petition” directed at the French Parliament) said:

We anticipate your objections, gentlemen; but there is not a single one of them that you have not picked up from the musty old books of the advocates of free trade. We defy you to utter a word against us that will not instantly rebound against yourselves and the principle behind all your policy.

Will you tell us that, though we may gain by this protection, France will not gain at all, because the consumer will bear the expense?

Even in 1845 (and in 1828) there were plenty of books, musty books, on shelves unused and unread by government officials. The same holds true today, the idiots are elected while the wise refuse to wield power, the ugly and self-serving political type.

I do hope that some of you are aware of the Candlestick Makers’ Petition as Frederic Bastiat had a way in his short life to make economics simple enough that even a politician could understand. A teaser clip is below. Enjoy Mother’s Day celebrations today!

-SF1

You are on the right track. You reject abstract theories and have little regard for abundance and low prices. You concern yourselves mainly with the fate of the producer. You wish to free him from foreign competition, that is, to reserve the domestic market for domestic industry.

We come to offer you a wonderful opportunity for your — what shall we call it? Your theory? No, nothing is more deceptive than theory. Your doctrine? Your system? Your principle? But you dislike doctrines, you have a horror of systems, as for principles, you deny that there are any in political economy; therefore we shall call it your practice — your practice without theory and without principle.

We are suffering from the ruinous competition of a rival who apparently works under conditions so far superior to our own for the production of light that he is flooding the domestic market with it at an incredibly low price; for the moment he appears, our sales cease, all the consumers turn to him, and a branch of French industry whose ramifications are innumerable is all at once reduced to complete stagnation. This rival, which is none other than the sun …

Priceless!

From Clan to State to Empire: Why Constant War? -and- What is the Antidote?

Reflecting on the “progress” of man towards ordering things in this world, it is of no surprise to me the thought of “bigger is better”. Even reflecting on the rise of the Hebrew people from nomads to being slaves in Egypt, and from there to the “Promised Land” west of the Jordan River and then being ruled by judges and eventually a king, you can see this is a very human trait.

The transition toward wanting a king is not something that the Hebrew’s God wanted for them, but it was allowed, with a warning. You see, earthly kings have kingdoms, which inherently need resources, taxes and young men to supply military might for both defense and offense operations. The list goes on and on as to the drain on society, communities and families to support a kingdom let alone an empire.

I think too of the struggle in the late 1700s when American colonists, while appreciating what the British Empire had done to facilitate their ability to immigrate to such a place as America, and supplied protection from those native to this land, they had however, grown resentful at the way their “parents” were treating them, almost like there was an expectation of independence not unlike what happens to humans when the are in their mid to late teens! In this case, many if not most did not want a king after kicking out the British, but some painted the road ahead with fear so as to make many desire the safety that a king, a central state, can supply.

In both of these situations, you have a taxing authority promising protection. As Hans-Hermann Hoppe points out:

A tax-funded protection agency is a contradiction in terms and will lead to ever more taxes and less protection.

One only has to look around today to see the end result of the belief that the state could be counted on to provide safety while taxing its citizens for that safety. Not only do we see the US Empire drone bombing “terrorists” (their claim is that every death is indeed a terrorist death), but also promoting regime change in countries around the globe that have nothing to do with keeping Americans safe. From the lies that launched the invasion of Iraq to the lies that led to epic cultural destruction in Libya, attempted destruction in Syria and desired destruction in Venezuela and Iran, the empire seems determined to start a war with someone. Trade wars and sanctions with Russia and China also indicate that the US Empire is itching for a fight.

But why?

Unknown to most Americans is the fact that a series of macro-economic shifts have happened over the course of this nation’s life that seem to be at the core of the angst this country’s leaders and elites feel at this time.

Remember the phrase “follow the money”? Well, it is pretty prophetic that not only did the Bible both in the Old and New Testament state that the love of money is the root of all evil, but that an inherent distrust of our provision and safety in our Creator fuels this. If there is any entity that is the furthest from God is that of the state. The state is actually the antithesis of a loving father, it is force at its core and “war is the health of the state” – ( Randolph Bourne) is its motto.

Today’s Lew Rockwell site provides a writer by the name of L. Reichard White who is willing to identify the “whys” of this latest round of desired wars. I hope to follow up with a series of  posts that go back through history and link America’s coups and wars to show how each one was premised on a lie and historically have been altered to show that these were moral victories for the state when in fact:

The sheer number of people killed by states in the twentieth century—up to 100 million, with more killed in peacetime “social reconstruction” than in wars—makes one suspect that state-provided security is extremely expensive in all respects and that meaningful alternatives have been overlooked.

So on to today’s revelation about the ways of the state and the root issue we are facing here in the 21st century, the constant wars and then some thoughts towards future alternatives.

After walking through some of the most recent “crazy” the the US Empire’s foreign policy seems to have taken since 9/11 and even before, the author states:

With all these U.S. Government interventions, at least 198 of them remember — and sanctions — it’s tempting to conclude there is no rational reason and “we” screw with other folks purely on whim, whimsey, and maybe as a hobby.

But sometimes, maybe there’s a method to this madness. And if so, it often does involve oil, just not quite the way most left-coasters think.

Oil, seems to be a common denominator. But if so, why didn’t the US occupy Libya and keep the oil? Why didn’t the US occupy Iraq and keep the oil? It just doesn’t add up. The author continues:

… because of a 1974 agreement cobbled together by the Nixon administration between the U.S. and Saudis, nearly all oil trade in the world ended up requiring U.S. dollars…

Understand that pre-1974, the US primarily used a central bank to fund its wars across the globe, and unlike your history book says, WWI (joined by the US only a few years after establishing a central bank) and WWII were not actually started by Germany, it has been only covered up that way by “Fake History” (a cousin to “Fake News”)

With a national debt of over $22T these days and over $200T of unfunded liabilities, the US government wants to stabilize and control the future, but the railroad tracks are leading to a gorge that has no bridge yet.

Not coincidentally, this [1974 action] was just three years after Nixon, attempting to finish replacing the gold standard with the U.S. paper-dollar standard, closed the gold window and thus threatened to throw the world economy into chaos. This explains a lot more than most folks realize.

Remember the “petro dollar?” Well, thanks to the Saudi/U.S. established oil-for-dollars tradition, the Brits, Germans, Japanese — in fact just about everyone — had to keep dollars on hand to pay for their oil imports.

And the oil sellers also ended up with a lot of dollars. And so did the countries they bought stuff from. And the dollar tradition spread to trade in other commodities as well. That meant that a large aggregate of U.S. dollars stayed overseas and didn’t return to the U.S.

Econ 301 is needed to understand what this means. Mr White does a good job:

Experts estimate that “majority of cash … outside the United States” is as much as 80% of the U.S. dollars in circulation. All that money overseas has a lot to do with the fact that everyone has to pay for oil, etc., with dollars.

As Case Sprenkle of the University of Illinois puts it, “Insofar as the money remains abroad and is not used to purchase goods or services from the country that printed it, it serves as an interest-free loan from poor countries to the rich.”

That’s mostly how Uncle Sam is able to run-up such huge budget deficits without causing inflation.

At this point, it will become clear to any student of history, that the actions of the US Empire since the 1953 assassination of the democratically elected president of Iran after he threatened to nationalize his nation’s oil to the most recent effort by Venezuela, sanctions, intervention, regime change and if necessary, outright war itself are the only tools the US Empire has at this point of time to get out of the hole it dug itself.

… what happens if people overseas stop using the dollar — and discover the only place they can spend it now is back here in the good ole’ U.S. of A.?

What would happen if the Saudi Arabians said they didn’t want to be paid [for oil] in dollars anymore, but wanted instead, to be paid, say in yen. There would be inflation that would make the 15 to 20 percent inflation in the early 80’s look good. —Sen. Pete Domenici, R-NEW MEXICO, C-SPAN II, 18 May 1995 ~12:33:55 PM

Unfortunately, selling oil for something other than U.S. dollars isn’t the only thing threatening the paper-standard. It’s also become the norm for governments and central banks to stockpile U.S. Treasuries to support their own currencies.

So, if a country reduces its stock-pile of U.S. Treasuries, either by selling them off or no longer rolling them over when they reach maturity — and replaces them with something else, as in the past, gold perhaps — this also threatens the U.S. dollar paper-standard.

The problem is, the paper-standard is mostly psychological. It’s literally a con — that is, confidence — game and when the confidence evaporates, game over.

And it’s very difficult to enforce confidence, no matter how many aircraft carriers, etc. you deploy. Or to predict when the confidence will implode.

Confidence is already waning on the USD Petro Dollar’s use, we know that North Korea does not participate, neither does Cuba, but lately, Venezuela, Iran, Russia and even Saudi Arabia favor de-dollarization in the oil markets, and this is huge:

I agree with Mr. White when he says:

Could that threat [Saudi Arabia’s look at USD de-dollarization] be why Mr. Trump vetoed Congress’ first attempt in 70 years to control unconstitutional U.S. war involvement by ending support for the Saudi-led murder of the men, women and children in Yemen?

What a tangled web an empire weaves. In desperation, the empire struggles to stay relevant and keep the bubble economic facade intact. Gold-based currency was a more honest way to run a nation, but quick money seems to be the way empires go.

.. killing more men, women and children is a classic result of the the paper-standard. As Ferdinand Lips explains so well, compared to the gold standard, the paper-standard makes financing wars easy and so they happen more often, are longer, stronger, and kill more innocent men, women and children.

As some folks like to put it, “The U.S. dollar used to be supported by gold, now it’s supported by aircraft carriers, B-52s and killer drones.”

I think we can safely add that it’s also supported by election meddling, coup, regime change, assassination, sanctions, invasion, and fake undeclared war. Perhaps, then, a more accurate title for this piece would be “Intervention and the Paper Standard.”

Okay then, enough depressing talk, and for those who have stayed along for this journey, what, if any, antidote is there for such a huge situation?

there’s a subtle but insidious problem with the way Trump and the U.S. Deep State are chronically implementing “All options are on the table” Games Theory. Originally a U.S. invention, Games Theory is based on poker.

The problem with poker — and BTW mercantilism as well — is that, unlike voluntary exchange in unhampered markets, it’s a zero-sum game. If you’re in a game with someone who thinks they’re playing poker, someone wins and someone loses — and they intend to make sure you’re the loser.

Unhampered markets on the other hand — and other forms of normal co-operation — are, in the long run, nearly always win-win propositions. As long as they stay unhampered — and normal.

Markets, UNHAMPERED is the key.  How can markets be “unhampered”? (Remember the Hebrews when their leadership was judges, wise men who provided justice in a society or community, or the American colonists that homesteaded on acres of trees and developed ways so that they could bring value to their communities out of sight of any British flag or British noble?)

The state is a cancer for so many things in our world. I believe the only saving grace might be for the average human (not just in America, but globally) to understand the state for what is actually is. The average human needs to know “the gun in the room”.

Anarchy, the absence of rulers (not natural rules), is probably the only healthy path forward. One of the best things I have see so far this year is this 52 minute interview on Jeff Berwick’s Anarchast page that supplies a double dose of reality into the reality of 2019, the consideration of both anarchy and Jesus as a possible path forward. I am not talking chaos and religion here, so it might be good to view this YouTube so you can understand both of these options without accepting them:

Anarchast About:

Anarchast is your home for Anarchy Podcasts on the internet

To us, Anarchy means freedom. The desire to live without a violent, coercive State. Anarchy is peace, love and prosperity. Free markets. And, power to the people.

Anarchist.  Libertarian.  Freedom fighter against mankinds two biggest enemies, the State and the Central Banks.

Jeff is the Chief Editor of The Dollar Vigilante, a newsletter focused on investments and expatriation information to survive the coming collapse of the US dollar based financial system.

Jeff is also a contributing editor at many of the world’s largest libertarian, financial and precious metals related websites including LewRockwell.com, The Daily Reckoning, Whiskey and Gunpowder, Kitco, Gold-Eagle, Safehaven.com, Market Oracle and is a speaker at many of the world’s most important hard-money investment and freedom conferences including Libertopia, the San Francisco & New York Hard Assets Show, the PDAC held in Toronto, the Silver Summit and all the Cambridge Houseconferences in Vancouver, Calgary,

So remember, money is not the root of all evil, the love of money is. If your faith is in money and/or government, you are going to have a bad day.

I hope to post more on what the future might hold as far as alternatives to the state, especially the “in your face” state that we are seeing in the USA that used to be restricted to the USSR, Communist China and East Germany for a few decades.

Enjoy your weekend y’all!

-SF1