Tag: Venezuela

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

On US Empire’s M.O. List in Regime Change: Power Outages

History can always be used when investigating the scene of a crime. Investigators evaluate what happened and then piece the puzzle together be going back in time looking for evidence. It is hard to do on the criminal’s first crime, but when the same criminal continues their crime-spree, the investigators look for trends that help them accelerate and even be able to predict their next move.

The same can be said for the post-WWII US Empire. Within a few years it established their way of controlling the reach of the empire. It was decided that the US would not follow directly in the steps of the British Empire which tended to control other countries directly through an imperialistic form of control, but the US would use other more covert methods towards control.

Off the cuff, one thinks first of sanctions (like the US did to Japan before Pearl Harbor), and then on to propaganda to further agitate those opposed to the regime within the target country, and even using the UN to paint these countries as global lawbreakers.

Another method is going to the very heart of a country’s infrastructure that impacts everyday living to continue the agitation, the power grid.

As Moon of Alabama pointed out the other day:

The U.S. is well know for cyberattacks as well as for attacks on electricity networks. In 2012 it knocked Syria off the internet when it ‘bricked’ the central router in Syria while attempting to install malware. In 2015 it systematically bombed Syria’s power plants.

This is only the most recent concerning Syria. Do you remember what the US did to Iran’s centrifuges? This occurred about a decade ago that turned out to be a secret U.S-Israeli cyberwar strike on Iran’s uranium enrichment plant at Natanz and elsewhere. The Stuxnet virus we introduced into Natanz put 1,000 centrifuges out of action, from a random worker’s USB drive as these devices were not on any network. The worm found the controlling software and inserted itself into it, seizing control of the centrifuges. Stuxnet carried out two separate attacks. First, it made the centrifuges spin dangerously fast, for about 15 minutes, before returning to normal speed. Then, about a month later, it slowed the centrifuges down for around 50 minutes. This was repeated for several months eventually causing these centrifuges to physically fail.

Unintended consequences followed as by 2010 this virus spread globally!

What does this have to do with Venezuela? Well, from the 2016 & 2017 sanctions the US placed on that country was followed up with more rhetoric during 2018. While the US is the biggest importer of the declining oil output from Venezuela, India and China come in at #2 and #2 and would be more than willing to pick up the slack for cheap oil.

The US was actually encouraged when it was announced that Venezuela would no longer sell its oil using USD in September of 2017. The decision is similar to that once made by former Iraqi leader Saddam Hussein, who dropped the dollar in favor of the euro a few years prior to the 2003 U.S. invasion of Iraq. Countries that do this are well aware of the risks involved in shunning the US Empire.

This cycle will continue as it has in previous regime change attempts the US has engineered. I am sure the “greater good” propaganda will be flown as the citizens of Venezuela suffer, but a lot of it depends on how much truth emerges in these critical weeks before the US steps up the “need” for regime change.

This tidbit did not go unnoticed in the past few days as Moon of Alabama again points out:

When the first outage happened U.S. Senator Marco Rubio eagerly mocked the government of Venezuela. He also mentioned that some backup generators failed:

Marco Rubio @marcorubio – 22:18 utc – 7 Mar 2019
ALERT: Reports of a complete power outage all across #Venezuela at this moment.
18 of 23 states & the capital district are currently facing complete blackouts.
Main airport also without power & backup generators have failed.
#MaduroRegime is a complete disaster.

After the first outage the government of Venezuela said that it was caused by a cyberattack on the automated control system but gave no further details:

Communications Minister Jorge Rodriguez said Maduro’s government planned to bring “proof” of US involvement in the blackout to a UN Human Rights envoy who is set to visit the country in the coming days.

Rodriguez pointed to the Rubio tweet:

‘How did Marco Rubio know that backup generators had failed? At that time, no one knew that,’ the Bolivarian government official asked.

The Venezuelan government should contact the Russian cybersecurity specialists at Kaspersky Lab who are well known for detecting U.S. produced malware like the one used for the Stuxnet attack on Iran’s uranium enrichment plant. Kaspersky is highly respected in the international cybersecurity scene. Should it confirm that a U.S. attack malware caused the problem the U.S. will find it difficult to deny.

Yes, since there is history, a M.O. (modus operandi – a method of procedure), it will be fairly easy to identify the US fingerprints on this. Maybe that is why, as late as today, the US now states that their “regime change” timeline is not defined.

While one thinks that an electrical outage is not a big deal, one should know that attacks on electricity networks greatly affect the civilian population with hospitals being are hard to run without electricity depending on emergency generators. This also cuts off the civilian population to the Internet, to know what is really going on in their country and in the world:

It should be noted that in the Korean War, the US bombed dams to unleash great swaths of destruction on the civilian population. The blow-back of this kind of manipulation is a civilian population that will accept a bad government over the one that is doing this. Even in our own Civil War (War Against Southern Independence), these atrocities embittered people for generations.

But Sherman’s and Sheridan’s legacy lives on in the US Empire’s tactics. Both the Obama and the Trump administration, rejected international attempts to ban cyberattacks that “indiscriminate or systemic harm to individuals and critical infrastructure”:

All members of the European Union signed the agreement. Australia and Turkey joined the United States in declining.
…
Israel, which along with the United States conducted the most sophisticated cyberattack in history, the Stuxnet attack on Iran’s nuclear enrichment program, also declined to sign.

Bottom line:

Why Venezuela? Why now? Well, all the indicators show that the US petro-dollar is in trouble, countries have left or are starting to create ways to leave. From this site shows those smart countries who are aware of history and making preparations:

The list of the 23 countries which are creating new swap lines outside of the dollar include China, Russia, India, and surprisingly, Germany, France, and the United Kingdom. This means that the Eurozone itself is abandoning the dollar, and preparing for transition to a new central banking system.

To facilitate the transfer of currencies and swap lines, there needs to be a bank of sufficient size and stature to aid in handling of this monumental task. One year ago, China, along with the BRICs nations of Brazil, Russia, India and South Africa, loaned money to a new financial institution they established and labeled the BRICs bank. This bank was created with the intention of bypassing the dollar, and allowing free trade to occur between nations without the need to trade for dollars first, as is currently the format under the petrodollar system.

Russia, China and Iran already have their own way to trade since 2012, and attempted regime change by the US Empire in Syria was a strategic effort towards reversing this trend. These actions only make the Empire look more desperate. As Ron Paul pointed out how we got to this point:

“In essence, we declared our insolvency in 1971. Everyone recognized some other monetary system had to be devised in order to bring stability to the markets. Amazingly, a new system was devised which allowed the U.S. to operate the printing presses for the world reserve currency with no restraints placed on it– not even a pretense of gold convertibility! Realizing the world was embarking on something new and mind-boggling, elite money managers, with especially strong support from U.S. authorities, struck an agreement with OPEC in the 1970s to price oil in U.S. dollars exclusively for all worldwide transactions. This gave the dollar a special place among world currencies and in essence backed the dollar with oil.

The empires demise will probably take decades, but the writing is on the wall. Few empires have been able to willingly let go of its dominate role in global affairs. The USSR is a great example of a peaceful move towards the release of central power, just waiting for those in the US to use history to see that this might be the best way forward.

Reality is a b*tch, but learning from history can allow people groups to emerge into a better spot, but it will take a brave generation to accomplish.

Is there a generation of Americans that are up to this challenge?

Time will tell. Hang on, the surf’s up dude, we are in wild times.

-SF1

More On US Sanctions – Will This Knee-Jerk Reaction Lead toward USD/Empire Demise?

From Iceland (where it is much safer to say the truth), The Saker article “Sanctions, Sanctions, Sanctions – the Final Demise of the Dollar Hegemony?” by Peter Koenig takes on this trend from all angles and states the obvious:

They [sanctions] are made to punish countries, nations, that refuse to bend to a world dictatorship.

Even ZeroHedge said back ten days ago:

… the relative surge in China’s ‘petroyuan’ futures contract overnight could suggest a shift away from the petrodollar to avoid US sanctions on Iranian oil..

A picture of USD hegemony:

.. and a picture of a significant shift:

So what is Peter Koenig saying? Here are a few interesting clips:

… Looks like everybody accepts this new economic warfare as the new normal. Nobody objects. And the United Nations, the body created to maintain Peace, to protect our globe from other wars, to uphold human rights – this very body is silent – out of fear? Out of fear that it might be ‘sanctioned’ into oblivion by the dying empire? – Why cannot the vast majority of countries – often it is a ratio of 191 to 2 (Israel and the US) – reign-in the criminals?  ..

You see, sanctions ARE effectively the first strike in most every war, from Gulf War I and II back to WWII with both Germany and Japan. It is rare when sanctions do not result in war because of the stress it brings on a nation’s people that causes politicians to panic into “doing something”.

Now doing something might not mean specific military actions, but maybe just imprisoning some criminals (US’s CIA) that are in various countries:

What if Iran, Venezuela, Russia, China – and many more countries not ready to bow to the empire, would jail all those spies embedded in the US Embassies or camouflaged in these countries’ national (financial) institutions, acting as Fifth Columns, undermining their host countries’ national and economic policies? – Entire cities of new jails would have to be built to accommodate the empire’s army of criminals.

Interesting times ahead for sure. But when a bully empire operates on lies, the patience of these nations will be tested. What of the American people? Well, the last line of this paragraph shows what we have become:

Imagine Russia – more sanctions were just imposed for alleged and totally unproven (to the contrary: disproven) Russian poisoning of four UK citizens with the deadly nerve agent, Novichok – and for not admitting it. This is a total farce, a flagrant lie, that has become so ridiculous, most thinking people, even in the UK, just laugh about it. Yet, Trump and his minions in Europe and many parts of the world succumb to this lie – and out of fear of being sanctions, they also sanction Russia. What has the world become? – Hitler’s Propaganda Minister, Joseph Goebbels, would be proud for having taught the important lesson to the liars of the universe: “Let me control the media, and I will turn any nation into a herd of Pigs”. That’s what we have become – a herd of pigs.

Actually, I have known pigs, and they are even smarter than dogs. Suffice it to say, the American people in general are sheep .. stupid and aimless, scared to be without someone telling them what to do every day or every hour (daddy / mommy government and its media).

So if the American people are dumb, what about its leaders? Well, there is a history there .. and if you knew it all you would NEVER trust the US government again. Consider just one parallel, Venezuela = Chile:

… Venezuela is struggling to get out of this dilemma which has people suffering, by de-dollarizing her economy, partly through a newly created cryptocurrency, the Petro, based on Venezuela’s huge oil reserves and also through a new Bolivar – in the hope of putting the breaks on the spiraling bursts of inflation. This scenario reminds so much of Chile in 1973, when Henry Kissinger was Foreign Secretary (1973-1977), and inspired the CIA coup, by “disappearing” food and other goods from Chilean markets, killing legitimately elected President Allende, bringing Augusto Pinochet, a horrendous murderer and despot to power. The military dictatorship regime brought the death and disappearance of tens of thousands of people and lasted until 1990…

I think the CIA would love to get back into South America this way .. as they are getting back into Africa after too much attention has been drawn to its Middle East collusion with Israel, Saudi Arabia and UK with ISIS. Peter Koenig goes on to state the facts about Iran, North Korea and China and the inability for the US to ever abide by treaties it is involved with for any real length of time .. just ask the American Indians:

The bottom line is a rot that is the swamp:

… What is really transpiring is that Washington is isolating itself, that the one-polar world is moving towards a multipolar world, one that increasingly disregards and disrespects the United States, despises her bullying and warmongering – killing and shedding misery over hundreds of millions of people, most of them defenseless children, women and elderly, by direct military force or by proxy-led conflicts – Yemen is just one recent examples, causing endless human suffering to people who have never done any harm to their neighbors, let alone to Americans. Who could have any respect left for such a nation, called the United States of America, for the people behind such lying monsters? ..

Our national character is mud. Our legacy means once the empire starts dying there will be a piling on of other countries demanding revenge on this nation who by then will be led by our kids and grand-kids. We will not have followed Thomas Paine’s advice:

SF1