Benji’s Plight

In 1971, the French sent a gunboat to New York harbour to get their gold back because the USA was over-extending itself as per the Bretton-Woods agreement. It was President Nixon who was not playing by the rules. In this example, it was the Vietnam war which was being funded but without enough gold to back the expenditures. The US was inflating its own currency. Since the Franc was pegged to the dollar and the dollar was pegged to the gold that America held, there wasn’t enough gold to maintain the value of the French currency. This is why the French acted. This was essentially the beginning of what we now know as central bank money, or modern fiat money.

Why mention all this? Well it seems to me that the Chinese are de-evolving in monetary terms, going back to a Bretton-Woods type system in order that they can play the role that the US played but with their allies, instead. For that to happen, they need to back their currency with gold, and so they will need as much as they can get. Russia has also spoken about a gold-backed ruble.

Gaddafi was in the process of creating a gold-backed pan-African currency, but Libya did not have the clout to withstand the American onslaught, and we all know what happened after that. China does.

If we exclude QEII, the largest land-owners in the world are Russia, China, the King of Saud, the King of Thailand, the King of Morocco, and the King of Oman. All of these countries have large Muslim populations; even Russia is about 15% Muslim. All of them have been involved with some form of gold-backed currency, or are currently talking about implementing one. China is going to do it for them, and unite Asia in the process.

This is why Kazakh president Nursultan Nazarbayev said, at the UN, that the IMF must go and that the world reserve currency should no longer be dollars. He also said that the UN should be based in Asia. Kazakhstan is hugely rich in natural resources (oil, gold, uranium…) He gave this speech on the same day as Obama and Putin spoke, but nobody was listening.

This, in my opinion, is what we are seeing in China now. They are slowly trying to shed dollars without causing too much commotion. If they do it too quickly, they would lose a great deal of value in the process. Eventually, though, the dollar will be dumped. China did just get into the IMF’s basket, for credibility and support if nothing else, but this may be short-lived and not for the reasons most would think.

With Turkey looking east, they could collectively control all the oil and gas flowing into Europe (Turkish Stream pipeline,) and most of the water flowing into the middle-east. The east would have Europe by the short-and-curlies.

This is also why they want to ‘easternize’ Europe with a large influx of migrants. Terror is a serious issue for all these actors, not just an excuse for expansion like it is for America. Russia has an outpost called Ingushetia to guard against Chechen fighters. Even China has terror at its back door.

Energy-poor Europe really has no choice in the matter and America is powerless to stop it. This is what made Ukraine such a target. Russia is diverting all pipelines into Europe through Turkey instead of Ukraine, making the entire exercise there moot. This is what makes the middle-east, the Spratley Islands in the South China Sea, North Korea, and Lithuania so important to the west. This is why the west (and NATO) is trying to encircle Russia and break up Eurasia, but what’s the expression again…? A day late and a dollar short (pun definitely intended.)

One could draw a line from Beijing to Moscow and cross only one country, Kazakhstan. Kazakhstan may be where the new Prime Meridian passes, where the new UN headquarters might be located, and is where the world’s monopoly of low-enriched uranium (LEU) is kept. Buffett knows it, too. Kazakhstan is land-locked and so is very easy to defend.

It’s over.

China is starting to unwind, all of Eurasia will be dumping the dollar very soon (?this summer/fall?) the petro-dollar’s days are numbered (Saud has been in negotiations with Russia for years now over this very issue) and if America doesn’t wake up to this incontrovertible fact, war will be the only option. If the USA and NATO and the EU start making preparations now, perhaps there could be a way to draw this out nicely enough not to have to crash the western economy. They could also all be working behind the scenes together, east and west, knowing that the inevitable is coming. Hey, ya’ never know.

As it happens, last year, American private equity fund KKR bought Mexico’s Pemex Oil. They have secured rights to drill in the Gulf of Mexico, and now they are moving even further south. Venezuela seems to be the next target now that the Americans know they have lost the middle-east, and will soon have to leave.

“Seventy percent of Petropiar is owned by the state-run Petróleos de Venezuela, and 30% by its overseas partner, Chevron. The government has now offered to sell a portion of its shares to the Russian Rosneft, along with a stake in the rights to extract oil from the premium-grade Orinoco Oil Belt. This, of course, is no less than a stab in the back for Chevron. (Rosneft faces sanctions from the US, which, of course, Chevron does not.)

Venezuela has also expropriated shares belonging to ConocoPhillips, for which it has not yet paid, at the same time as they’re negotiating with a Japanese investment bank to obtain further funding.”

These deals, in the American perspective, are worth protecting and fighting over especially if Russia’s Rosneft gets control of some of the oil in the Americas.

“The involvement of the U.S. military in an upcoming multilateral military drill in South America has raised concerns over potential ulterior motives on the part of the U.S.

 

The drill, dubbed “Operation: America United,” will involve the installation of a temporary military base on the triple border shared by the drill’s other participating nations: Peru, Brazil and Colombia.

Clearly, the Americans know that their time under the petro-dollar scheme is winding down, and they are desperately seeking alternative sources of oil. Now that Erdogan has refused the EU membership and is looking east, even the Germans are moving their troops from Incirlik to Jordan. They too must sense that something is changing within NATO and in the middle-east.

All this talk of populism vs. globalism (I was caught up in it, too) is like so many squirrels scurrying to hide their nutz. This is also why we needed the king of all squirrels, Donald Trump, to completely dominate our lives. After two years of him dominating the main-stream media scene, much of the groundwork has been done quietly, and in the shadows.

Erdogan: Richest Man On Earth?

Maybe ‘the most powerful man on Earth’ would be more appropriate. Let me explain.

Turkey and the EU have been in limbo now for almost thirty years. Turkey has wanted to join, but there have been doubts about its stability… well-founded doubts.

Recently, the west’s relationship with Turkey has soured. Erdogan has been playing both sides of the conflict in Syria. There is little doubt that he has sponsored mercenary forces to overthrow Assad, that he has moved Daesh oil, and that he has attacked both the Russians (by downing a Sukhoi) and the Americans in Syria:

“The Turkish statement clearly dismissed speculations that Ankara forces hit US-backed fighters in Syria by mistake.”

It would seem that Turkey has said goodbye to its EU aspirations, and perhaps the EU has also:

“The European Union has warned that the bloc could redefine the entire status of its relations with Turkey in light of recent developments in the country and amid growing disputes between the two sides.”

As I have written in past articles, if Turkey looks to the west, America wins in the middle-east along with its allies Israel and Saud. They would essentially control all the pipelines through Turkey, the Euphrates river, and the Mediterranean. Assad would be ousted, eventually. The Russians would lose access to the Mediterranean, and would be blocked at the Bosporus. New terror groups would undoubtedly spring up to threaten Russia from Georgia and Chechnya. This would give the west more power over Ukraine and Crimea, where the focus would undoubtedly shift. The globalists would win, too, by the way.

If Turkey looks east then the New Silk Road will be a ‘fait accompli’ giving China land access to the EU and giving Russia more say about what happens near its borders (with Georgia and Ukraine.) New pipelines would be built to bring Iranian oil to markets in the EU. The China/Russia/Iran/Kazakhstan connection would win over India, in time, as well as Saudi Arabia. The price of oil in America could quadruple overnight, shale or no shale. Populism would soar across the west and the EU, and Assange would be free to leave the Ecuadoran embassy in London.

Turkey looking east would almost instantly save Assad, sever the links between America and Saud, which would lead to the destruction of the petro-dollar scheme, which would kill the US dollar, which would, in turn, bring down all the central banks in the EU. The world’s derivatives markets are highly sensitive, especially these days, to the effects of any downturns with the central banks, just ask Douchebank (ahem) I mean Deutsche Bank. Actually, don’t; they’ve been very tight-lipped about the whole situation.

Deutsche Bank Tells Investors Not To Worry About Its €46 Trillion In Derivatives

 

The entire derivatives market is worth an estimated 1 quadrillion dollars, and if anyone of its substantial pillars were to fall, well, let’s just say that things would not end well. If the whole thing fell apart, it would be the end of America, and the EU, as we know it.

See here for a nice graphic representation.

So there we have it, Erdogan looking east would blow up the western world’s economy more assuredly than any bomb Russia could drop. Putin could end up beating the Americans simply by making nice with Erdogan. He wouldn’t even have to launch a missile. Good thing the west was thinking ahead, allowing a scapegoat like Trump, who would certainly be blamed, to win the white house.

Who’d have thought that the entire populist movement, the western banking system, and the fate of the western world, for that matter, depends not on Trump, or Le Pen, or on Farage, or even on Wilders, but rather on a paranoid dictator worth 1 quadrillion dollars headquartered in Turkey named Recep Tayyip Erdoğan, and all so he can kill some Kurds?

Putin maybe, but he’s always been good at chess, and there ain’t no Bobby Fischers left.


UPDATE

It would appear that Turkey and Russia are indeed getting closer…

Russia’s Gazprom CEO Alexei Miller said Wednesday that the energy giant will begin the offshore laying of the Turkish Stream pipeline in the second half of 2017 and plans to complete the construction of two legs by the end of 2019.

…much closer.

Turkey, Russia clinch agreement on S-400 air defense system deliveries

Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan will meet face-to-face in Sochi on May 3 to discuss these and other matters. Clearly, the rapprochement since Turkey shot down a Russian jet is going well, much to the dismay of the west.

Vladimir Putin believes that Russia and Turkey are restoring full-format relations

“I’m sure that those steps that we are taking together will change the fate of the whole region,” Erdogan said.”

And they lived happily ever after…


Follow up to this article is here.

Setting Up For Failure??

With the past year’s electoral comedy festival coming to a close today, and with Obama’s economy (let’s face it) in the toilet, is it any surprise that the Dow went up this morning? Futures are up, PMs are up, even CNN’s ratings are up, hope is on the rise, and change is in the air… change not even Obama could have foreseen.

Whether you voted for a billionaire, a billionaire wanna-be, or you stayed home and didn’t vote (majority,) you have just witnessed the most vitriolic fight ever to have rocked the airwaves on CNN. But was it, as is all the other ‘news’ on CNN, all just a show? One of your candidates would have been beholden to Goldman-Sachs, the other will be sipping lemonade with them at his country club(s.) Some choice. Some democracy.

Billionaires have been moving their money out of the markets and into gold for the last year or so. Out of risky investments (they are all risky these days) and into wealth storage goes  the ‘smart’ money (I would call it the ‘informed’ money, but I digress) whereas the rest of us are being lulled into buying stock at the (obvious) top of the market. Someone is gonna’ make a killing, and somebody else is about to get fleeced… usually the sheep.

More and more experts are hedging against a catastrophic crash in the markets – they say it will make 2008 look like a minor hiccup – and betting on $5,000 gold, and many have been saying this for some time. Meanwhile, the manipulated markets are levitating on fumes. The crash is being postponed. Someone wants Obama to go out looking like a hero. Easy when unemployment numbers don’t include those who’ve stopped looking for work. Unemployment, by some estimates, could be as high as 20%, and with the national debt growing exponentially, population rates dropping, a soon-to-be-retired population aging fast, tax-havens for corporations, a growing prison population, and a bankrupt pension industry, the tax base is falling fast as spending (especially military) is going through the roof and government is growing faster and faster every year. Hell, even the cost of presidential libraries is more than doubling every term.

I used to think Trump was just thrown in to the mix in order to divide the Republican vote and get HRC elected. Could be, but Trump really was an anomaly. Did he really take the country by surprise, or were there those who had a plan all along? I’m starting to think that when Trump was first being seen as a champion for the people, others were taking advantage of the situation to further their own interests.

The economy could not be held up on ‘good news’ forever, they needed a way out of the downwardly-spiraling miasma beyond blaming the weather, or at least someone to pin it on. So the economy was propped-up for the exit of the Nobel prize-winner, and once Trump is inaugurated, the wheels will be allowed to come off. The end of 2017 could see the VIX at 100!

Since Brexit and talk of other countries leaving the EU, the big debate around the planet this year has been about one thing – globalism versus the dangers of populism. What if globalists are using Trump as a fall guy, a scapegoat to blame the coming crash on? What if they have their fingers on the markets just waiting to pull the plug? What better way to defeat populism than by using its own best champion to bring it down? “You see? We told you that he was dangerous, didn’t we? We told you globalism would prevail. Now show us your papers.” And that’s just the economic side… there’s also this situation in the middle-east involving Russia, Saud, Turkey, et al, but that’s another story.

Would it surprise me? No. Nothing, at this point, would surprise me.

*Update*

via Zerohedge: “Mario Draghi Hints Trump Will Be Responsible For The Next Financial Crisis

Trump: The Most Misunderstood Man in ‘Merca

Donald Sterling, of ‘Los Angeles Clippers Owner’ fame, was branded a racist. He had been recorded making racist remarks; he admitted to them and apologized. His English grammar skills are mediocre, at best. After his explanation, he came out looking very bad.

Some people, whose family smoked in the house while they were children, became addicted to nicotine before they ever started smoking. It was just ‘in the air.’ Do you see where I’m going with this?

Donald Sterling was raised in a racist environment (as was everybody else back then) and even if it was a passively racist environment, his father would have been raised in a much stricter one. He knew it was wrong, and he hid it publicly, he tried to suppress his urge to smoke. He never explained himself in this way. If he had, he might still own the Clippers.

I’m not defending Donald Sterling, but he was an old man, and his talk would have been normal at the country club. ‘I don’t mind them, per se, just don’t bring them home.’

However, when refering to how tough HRC’s father was, phrases like, “…but it was a different time back then…” and, “…he was old-fashioned…” sprung up apologetically.

Trump finds himself in very much the same position, only, it relates to sexual harassment against women, which is now a very touchy subject. The problem is that it wasn’t considered sexual harassment at the time, it was tolerated and even encouraged to a large extent, so why should he be held to that standard? Some of the women who allowed it, in order to further their careers in a male-dominated world, benefited greatly and ‘played the game.’ That should not need to happen in a civilized society, but then again, sex sells… it always has.

And a paid escort suing him for kissing her?!?

It’s hard to blame a billionaire for indulging; you just know that their tastes for exotic things and experiences often lead them to debauch. Even a sixteen year old with a Ferrari will be tired of ‘just’ banging super-models by his mid-twenties. When one can afford anything, what won’t they be tempted to try? How far will they go?

He is a braggart and pompous and spoiled. He should own it more. So should Sterling have. He tends to talk in hyperbole. He gets picked on a lot for this, but as for Donald Trump’s language skills, I think the man truly has a great deal of trouble translating what’s in his head into words. He didn’t study much English at Wharton. I suspect many politicians and public figures have this same problem. I’m not saying that all his foibles are attributable to his poor communication skills, there are some old vestiges in there, of times long past when you could dry hump a girl on roller-skates while doing a line on the table. Nobody cared what you did. Everybody has done something embarrassing. Billionaires just have more opportunities to, and the spotlight on them when it does. But compared to all the allegations against the Clintons from Whitewater to Pay-to-Play and the implications thereof, he’s just a street-smart buffoon, she’s a diabolical lawyer, and she is very good at what she does. So was Madoff, until he got caught.

[A no-fly zone in Syria (which HRC supports and Trump does not) will undoubtedly lead to WW3 with the Russians.]

Still, when pundits misinterpret an already flawed message, the results can be very far from those intended.

Trump’s a businessman who takes advantage of the laws in place, and has had to compete with others all his life. But now he’s put himself on the other side of that. He knows what needs fixing. I’m not an apologist for any of the stupid things he’s said, I just think that he needed help in framing his very general ideas. It took forty-three minutes to get a minute of locker-talk out of him. He was bragging and I think he probably did grab a lot of women; I’m not condoning that, but it was a far lesser offence forty years ago. And he has always skirted the law, as a rule, always seeking the greatest advantage. Isn’t that sort of thing supposed to be revered, or are people so depressed economically that anyone who gets more than their share is vilified. Is this a struggle over capitalism itself, or rather just our version of capitalism today? Implied socialism ??

I don’t think he’s as radical as they make him out to be, and yes, the media and the establishment show great bias, but it really shines a light on the people on either side. The Hutu knew who the Tutsi were… and vice-versa.

The issue of the American election, and of Brexit before, and the colour revolutions throughout the ME, and even the situation in Ukraine have all led to the inevitable binary showdown: Globalism vs. Populism.

Is this the start of WCW (World Class War?) Or are we avoiding a war with Russia/China/Iran/Kazakhstan? Which way will the Saudis align themselves? Is Syria the tipping point? What the hell is Trump gonna’ do about that? He has to withdraw pressure on Syria immediately, put Erdogan in his place (impossible – the Turks have had their land much longer than ‘Merca’s been a country – it controls all the pipelines and most of the water in the ME,) make nice with the Russians by withdrawing NATO and removing missiles, leave the South China Sea, and withdraw into a protectionist shell, like Iceland, saving the world from globalism.

I don’t pretend to know what’s about to happen to the world, but a lot of people feel like it’s not going to be good; it’s as if all the animals know that the earthquake is coming and start to scatter. But where is there left to go?

Gold is one place left to go. Silver is another.

Trump’s Second Chance

What’s going to happen when Trump retracts by saying he mis-spoke about the cheering Arabs? He will correct himself by saying that it was , in fact, Israelis who cheered (6:51) when the towers came down.

A damning article implicating Mossad, and this about the art students.

He will, of course, be right, and the media will have no choice but to report the fact that some Israelis claimed to have had fore-knowledge of the 9/11 attacks. This will re-open the wounds of 9/11 and all the truthers will team up with the bankster-haters to give him his landslide presidency.

After all, who knows more about New York real estate than the Donald? Who knows more building inspectors? Is this how he plans to reveal the truth about 9/11 to the American voters? In light of the current trend to buck the establishment types, perhaps this is just what the US secretly wants right now – a protectionist president who calls them like he sees them.

Expect talk of the USS Liberty to become a hot topic in the upcoming news/election cycle.

He didn’t capitalize the last time he had a chance to wrap up the election; will he do it this time?

*Update*

Step two is complete.

“The Donald: Israel, American Jews, Funding ISIS and World Terrorism

Did Trump Miss His Best Chance?

With Donald Trump’s appearance in Alabama on Friday night, and with the Dow’s 500 point ‘correction’ that day (about 1000 points down that week,) he may just have missed his best opportunity to win the election outright. If he had said “Liquidate!” (whether markets were going to crash or not) he would have caused the crash and would have secured the election instantly.

* Update

This is the master stroke.

.