Global Currency Fairness and US Policies

Until the mid-twentieth century, the gold standard was the dominant monetary system, based on a fixed quantity of gold reserves stocked in national banks, which limited lending. At that time, the United States managed to become the owner of 70% of world’s gold reserves (excluding the USSR), therefore it pushed its weakened competitor, the UK, aside resulting to the creation of the Bretton Woods financial system in 1944. That’s how the US dollar became the predominant currency for international payments.

But a quarter century later this system had proven ineffective due to its inability to contain the economic growth of Germany and Japan, along with the reluctance of the US to adjust its economic policies to maintain the dollar-gold balance. At that time, the dollar experienced a dramatic decline but it was saved by the support of rich oil exporters, especially once Saudi Arabia began to exchange its black gold for US weapons and support in talks with Richard Nixon.

President Richard Nixon in 1971 unilaterally ordered the cancellation of the direct convertibility of the United States dollar to gold, and instead he established the Jamaican currency system in which oil has become the foundation of the US dollar system. Therefore, it’s no coincidence that from that moment on the control over oil trade has become the number one priority of Washington’s foreign policy. In the aftermath of the so-called Nixon Shock the number of US military engagements in the Middle East and other oil producing regions saw a sharp increase. Once this system was supported by OPEC members, the global demand for US petrodollars hit an all time high. Petrodollars became the basis for America domination over the global financial system which resulted in countries being forced to buy dollars in order to get oil on the international market.

Analysts believe that the share of the United States in today’s world gross domestic product shouldn’t exceed 22%. However, 80% of international payments are made with US dollars. The value of the US dollar is exceedingly high in comparison with other currencies. That’s why consumers in the United States receive imported goods at extremely low prices. It provides the United States with significant financial profit, while high demand for dollars in the world allows the US government to refinance its debt at very low interest rates.

Under these circumstances, those hedging against the dollar are considered a direct threat, to US economic hegemony and the high living standards of its citizens. Therefore political and business circles in Washington attempt by all means to resist this process.

This resistance manifested itself in the overthrow and the brutal murder of Libyan leader Muammar Gaddafi, who decided to switch to Euros for oil payments, before introducing a gold dinar to replace the European currency.

Despite Washington’s desire to use whatever means to sustain its position within the international arena, US policies, are increasingly faced with opposition. A growing number of countries are trying to move from the US dollar along with its dependence on the United States, by pursuing a policy of de-dollarization. Three nations active in this domain are China, Russia and Iran. These countries are trying to achieve de-dollarization at a record pace, along with some European banks and energy companies that are operating within their borders.



The Russian government held a meeting on de-dollarization in spring of 2014, where the Ministry of Finance, announced the plan to increase the share of ruble-denominated contracts and the consequent abandonment of dollar exchange.

Last May at the Shanghai summit, the Russian delegation manged to sign the so-called deal of the century which implies that over the next 30 years China will buy $ 400 billion worth of Russia’s natural gas while paying in Rubles and Yuan. In addition, in August 2014 a subsidiary company of Gazprom announced its readiness to accept payment for 80,000 tons of oil from Arctic deposits in Rubles that were to be shipped to Europe.

Payment for the supply of oil through the Eastern Siberia – Pacific Ocean pipeline can be transferred in the Yuan. Last August while visiting the Crimea, Russia’s President Vladimir Putin announced that the petrodollar system should become history while Russia is discussing the use of national currencies in mutual settlements with a number of countries.

These steps recently taken by Russia are the reason behind the West’s sanction policy. (Ukraine and Crimea are a cover story hiding the facts)

There is little to no hope, the United States will survive its own wave of chaos, as it continues to lash out across the world. (with allies such as Canada, headed by millionaire PM Justin Trudeau,  you will hear more about foreign affairs than domestic problems)


Read More at Source: The Global De-dollarization and the US Policies | New Eastern Outlook

Blame Game: Look in the Mirror

It is apparent you absolutely needed the newest mobile device. You needed the newest TV, computer, DVD, printer, camera all made with petroleum by-products. You had to have an endless list of new merchandise made with and wrapped in chemical by-products. This is the fatal mistake in every industrialized country.

Pipelines were built by placing millions of kilometers of them entering every house and building. Our cities removed the forests nature uses to clean the air, and replaced them asphalt, another oil by-product. Concrete, rather than trees, became the norm for parks with paved pedestrian pathways.

Forests were removed to get the last drop of sunshine trapped in the ground using hydraulic fracking. 1000s of chemicals are used to soak up drops of natural gas polluting the ground water aquifers. When the industrialized counties wanted more they invaded other countries to rob them of every non-renewable resource.

Landfill waste dumps filled up with recyclable products no longer needed. Pulp and paper industries cut down the last tree and closed the plant leaving behind their toxic chemicals. Our lakes and rivers are used as toilets for industrial and domestic waste. We took every mineral from the Earth and poisoned countless hectares with arsenic and other chemicals.

Mountain ranges took nature billions of years to form. They are no challenge to our machinery. We removed the forests, mountains and rivers to dig out coal used for our increased electrical usage. Crushed rock, the remains of the mountains, are dumped into the giant holes leaving small mounds in their place. Once ice-cold rivers, head waters to quench your thirst, were reduced to tiny creeks of lukewarm water. Horses by the hundreds, stand knee deep in shit, as it drains into the same creeks. The owners call themselves trail riders although the natural trails disappeared decades ago. You can happily pay them 12 dollars a night, to smell the stench, while camping next to an RV fully equipped with every noise maker possible.

With 7 billion people on the planet it is an absolute right to own several gas guzzling automobiles. Approximately 20% of the population own over 1 billion wide ranging autos. The green people want to have electric cars with the electricity produced by coal, gas or oil. That kind of thinking is done while sitting on the toilet flushing sewage into the oceans. (It's a flourishing business as long as you hit the donate button when you arrive at their websites.)

In every industrialized country we point the blame at the governments we elected or the corporations. (most countries have elections even though big media rarely mention it) Governments know promises can be made and never kept. Corporations make products you believe you must have to keep face with friends and neighbors. Besides it's better to plug your ears, turn your hat backwards, pull up a hoodie than listen to anyone. Good paying jobs have dropped, in the so-called democratic nations, in proportion to the damage done to nature.

The Secret

Of all the renewable resources for energy solar power is the only true source. All the others such as wind and water use massive amounts of non-renewable resources for construction and maintenance. Consider yourself lucky if you know where the Sun goes when it sets or clouds cover the sky.

We count on slave labor to ship us products to fill the hunger for material goods. Industrialized countries no longer have the ability to create a simple light bulb or pen. The best we can do is pour coffee, purchased from another country for pennies, with a 1000% mark up from the purchase cost. Hemp does not need to be imported. It is a renewable resource and can be used to replace plastic while creating employment.

The much-loved Joni Mitchell born in Fort Macleod, Alberta, Canada was right:

"They paved paradise
And put up a parking lot
With a pink hotel, a boutique
And a swinging hot spot
Don't it always seem to go
That you don't know what you've got
'Till it's gone
They paved paradise
And put up a parking lot"

I know because I have watched and written about it since the 1970s. My impact is so low it barely registers. Those of us who told you never did so for fortune and fame. Perhaps we should have set up a foundation, to rob you of your money while proclaiming we are scientists, without ever attending a University for a PhD.

Are you a Tourist or a Visitor?

As you toss away a generation of people, who are educated world travelers here are a few words, from one of our musical influences The Moody Blues.

"Ask the mirror on the wall
Who's the biggest fool of all,
Bet you feel small,
It happens to us all.

Look at progress,
Then count the cost,
We'll spoil the seas
With the rivers we've lost..."

Moody Blues lyrics 1971

Would someone come up with a solution to the nuclear waste scattered around the planet? Whoever decided to mess with nature by splitting the Atom has the responsibility for cleaning up your creation. You are not allowed to bury it, dump it into the water or blast it into outer space.

 

 

 

Anti-Russia Propaganda's New Buzzword

When western media makes up stories about Russia, it's no big deal. When Russian media get things wrong, it's hybrid war.

Last week, British state-controlled TV created hysteria with a documentary about a putative Russian invasion of Latvia. As usual, while the Latvians were miffed, nobody west of Kaliningrad had any difficulty with it. They were more concerned with the segment that showed the UK being nuked.

Thus, we again discover that the Western establishment believes it has a monopoly on truth. That only its narrative is worthy and anything that challenges the consensus is disinformation.

If Evelyn Waugh were around today he wouldn't need to invent William Boot. Too many living, breathing, equivalents have passed through Ukraine and Turkey (the base for Syria coverage) in the past two years.  By the same token, George Orwell's Winston Smith seems tame compared to agitprop practitioners of today. A certain cabal in the pro-NATO realm has decided that cynicism is somehow unique to Russia. Bewilderingly, their exclusive focus on Russia invalidates much of this enterprise. They are blind to it in their own back yards.

For those of us who follow media, the last week has been truly instructive. An independent French journalist, Paul Moreira, decided to challenge the pro-Maidan group-think in the popular press. As it happens, not one fact in his documentary was noticeably erroneous.

The show was nicely timed as the British government is currently trying to force a £100 billion ($144 billion) upgrade of their Trident nuclear deterrent through parliament. The opposition leader, Jeremy Corbyn, contends that the money might be better spent elsewhere. This is hardly surprising, given that the UK is forecast to run a £69.5 billion budget deficit in the year to April 2016. In addition, over one million Brits currently rely on free food-banks to survive.

Entire article here: ‘Hybrid Warfare’: Anti-Russia propaganda finds a new buzzword — RT Op-Edge