Tuesday, March 24, 2009

The US Civil War in reverse - fight the new slavery!

The current financial crisis is like the US Civil War in reverse. While the Civil War was fought to abolish slavery the current crisis is a fight to re-establish slavery. At the risk of seeming pompous here is a quote from an article I posted in October 2008 titled "The International Banker's China Syndrome", soon after the original Paulson bailout.
My belief is that this financial "crisis" that we are in was deliberately planned. This is part of a plan to transfer economic power from the United States to China. The people behind the plan are the International Bankers. They have been setting up this scenario for at least 20 years if not longer. One of the main conspirators is Alan Greenspan who knowingly created this bubble. The transfer of power to China will occur by giving it more power in the IMF. China will also be included in an expanded G-7. The current "crisis" will be used as the excuse or the cover for this transfer. The International Bankers who are behind this plan have already profited enormously from this scheme. They are willing to sacrifice the economies of the World in order to carry their plan through to the end. The motivation is to weaken the global power of the US which is seen as too independent for their purposes. China is the prototype of the neo-Fascist government which they seek to impose upon the world.
While I can't offer any definitive proof that there is a conspiracy by the International Bankers to shift economic power from the US to China, I can offer some anecdotal evidence. As for motive, I believe that the Chinese neo-Fascist model that it has adopted since 1978 is considerably more profitable for the International Bankers than US style capitalism. This essentially is a new form of slavery. One of the problems with a system like slavery is that it is impossible for others to compete against it. So in a free trade world without barriers, the one who adopts slavery first is the winner. In this case China with its almost unlimited supply of cheap labor and its autocratic style of government is the clear winner.

The conclusion is that "free" trade is actually slavery in disguise and we should all be opposed to it. The solution is to protect local industries through trade barriers.
Wow. That's a lot of pontificating. Did I really write that? OK, well check it out dog, [my best Randy Jackson impression] I made two predictions in that verbose statement.
  • The transfer of power to China will occur by giving it more power in the IMF. 
  • China will also be included in an expanded G-7.  
The first of those is about to happen at the G-20 meeting in London which begins next week on April 2. Don't believe me? Here's an article from the Australian press titled, "Bigger role at IMF for China". The title pretty much says it all, but here is an excerpt anyway.
Gordon Brown has boosted Kevin Rudd's hopes that China will be given a greater role in the global financial system by hinting that some European nations have privately agreed to surrender some of their voting rights in the International Monetary Fund.

The British Prime Minister, host of next week's G20 summit in London, made clear during a briefing at 10 Downing Street yesterday that progress had been made behind the scenes to clear the way for a greater role for China.

Mr Rudd has backed the claims of China, which has only 3.7 per cent of the voting rights in the IMF compared with Europe's 32 per cent, despite Beijing's rapid rise in recent years to be one of the world's most important economic powers.
As with most international summits, many of the London meeting's results have already been decided or will be thrashed out before the leaders gather on Thursday week.

At the summit, the IMF will be restructured and given a major increase in emergency funding, and there will be a crackdown on tax havens.
The article makes clear that next week's summit is a formality. The agenda has already been hashed out by government representatives, this is just a rubber stamp process and a photo op. The United States by the way has 16.77% of the voting rights at the IMF according to that organizations own website. I wonder if that will also be adjusted. I love the use of the word "surrender" in the above article. It conveys an image of a war that has been lost - and so it has. The victor is not just China, but also the International Bankers who have been planning this strategy for decades and are now reaping the benefits.

I'm pleased to see that I'm not the only one these days who sees a nefarious plot behind the current financial "crisis". Jim Jubak, who is a financial journalist that I have come to admire, has expressed a similar sentiment to mine in an article titled "Fluke? Credit crisis was a heist". Once again the title says it all but here's an excerpt.
The folks in power in Washington and on Wall Street want to pretend that the current global financial crisis -- you know, the one that reduced household net worth in the United States by $11.2 trillion in 2008, according to the Federal Reserve -- was an accident caused by some unfortunate confluence of greed and asleep-at-the-switch regulators.

What we're now living through, though, is the result of a conscious, planned looting of the world economy. Its roots stretch back decades. And it wouldn't have been possible without the contrivances of the bought-and-paid-for folks who sit in Congress. 
Isn't that what I said? I said it was "deliberately planned... transfer of economic power"; Jubak says it was "conscious, planned looting of the world economy". So we agree that this "crisis" was no "accident". That's why I tend to put quotes around the word crisis. In my mind you can't call it a crisis if it was planned.

Jubak and I disagree on a few key points. He thinks "the plan blew up on the looters", I think that the plan all along was to blow up the world economy. You can't apply shock treatment until the victim is in shock. There had to be a shock to the system to allow the International Bankers to propose an overhaul of the world economy. Conspiracy theory? Yes, but then take a look around you at what's happening. Does it make sense that the all world's largest banks just suddenly failed and hurtled the world economy into near depression? Do you really think they're that stupid?

The other big point that Jubak and I disagree on is the purpose behind the looting. Jim thinks it's just greed con amuck, I think it is to transfer power to China and reshape the global economy. Another conspiracy theory? Yes, but what is the test of a good theory? The way to test a theory is to make predictions based on that theory. If the predictions come true then the theory is validated.

We can already see one concrete prediction that is coming true. China's role in the IMF is about to be enhanced thus giving it more economic power. This power will ultimately come at the expense of the United States. For many years the IMF was a tool that the US used to empower its multinational companies as they forced other countries to accept conditions on loans. Now China will have the increased ability to use the IMF to enforce its economic agenda on the world.

If you read my full article which I quoted above you'll see that it ends with a list of the members of the G30. I highlighted that group because the Governor of the People's Bank of China, Zhou Xiaochuan, had become a member in 2005. It's very interesting that out of that group of 28 people, three have become key members of Obama's economic team.
  • Timothy Geitner is the new Treasury Secretary.
  • Lawrence Summers is the chairman of the National Economic Council. 
  • Paul Volcker is the chair of the newly formed Economic Recovery Advisory Board.
Again, the test of a theory is in its ability to make accurate predictions. It's clear to me that the actions of Zhou Xiaochuan are coordinated with those of Tim Geithner. While they may pretend to be at odds, as in when Geithner seemed to threaten China with the label of "currency manipulator", they are actually engaging in a coordinated action. They had 3 years together as members of the G30 to come up with their plans. And don't try to look for any notes from the meetings because the G30 is a highly secretive organization which does not provide the public with insight into its private discussions.

The reason that the International Bankers appointed Geithner to be Obama's Treasury Secretary was not because of his great public speaking abilities - he has none. Or his ability to sell the new economic plan to the American public - he's a lousy salesman. The reason he was appointed is because he is an insider. He is someone who has proved he can be trusted to follow orders and not go off on his own. But just in case Geithner gets any wild ideas the International Bankers have insisted on placing in the position of Geithner's chief of staff another one of their own to keep an eye on him. I'm referring here to the controversial appointment of the Goldman Sachs ex-lobbyist Mark Patterson.

It's left to Obama himself to be the chief salesman and head cheerleader for the economic plan. Even Bernanke has been drafted to help in the cheerleading as seen in his 60 minutes performance. That's how bad Geithner is at handling the public spotlight. Again, he wasn't chosen for his sales ability. He was chosen for his proven allegiance to the International Bankers. He has been working for their cause as President of the New York Fed for years. He never challenged them or spilled the beans on their dubious investment schemes. He participated in planning the Paulson bailout, particularly with regards to the shady dealings involving AIG. He's part of the clan. His hands are dirty. If they go down, he knows that he'll go down with them. In a word, Geithner has been "initiated".

OK. That brings us to what I believe to be the definitive article on the current economic "crisis". A masterpiece of journalism by Matt Taibbi published in Rolling Stone magazine titled "The Big Takeover".  In this case the subtitle says it all, "The global economic crisis isn't about money - it's about power. How Wall Street insiders are using the bailout to stage a revolution". Now that's what I'm talking about! But what is exactly is the nature and purpose of this revolution?
People are pissed off about this financial crisis, and about this bailout, but they're not pissed off enough. The reality is that the worldwide economic meltdown and the bailout that followed were together a kind of revolution, a coup d'état. They cemented and formalized a political trend that has been snowballing for decades: the gradual takeover of the government by a small class of connected insiders, who used money to control elections, buy influence and systematically weaken financial regulations.

The crisis was the coup de grâce: Given virtually free rein over the economy, these same insiders first wrecked the financial world, then cunningly granted themselves nearly unlimited emergency powers to clean up their own mess. And so the gambling-addict leaders of companies like AIG end up not penniless and in jail, but with an Alien-style death grip on the Treasury and the Federal Reserve — "our partners in the government," as Liddy put it with a shockingly casual matter-of-factness after the most recent bailout.

The mistake most people make in looking at the financial crisis is thinking of it in terms of money, a habit that might lead you to look at the unfolding mess as a huge bonus-killing downer for the Wall Street class. But if you look at it in purely Machiavellian terms, what you see is a colossal power grab that threatens to turn the federal government into a kind of giant Enron — a huge, impenetrable black box filled with self-dealing insiders whose scheme is the securing of individual profits at the expense of an ocean of unwitting involuntary shareholders, previously known as taxpayers. 
Read this article! Study it. Memorize it. What Taibbi is saying is that the International Bankers have already created an oligarchy in the United States. Power no longer resides with the people, it resides in the hands of a powerful few. The Paulson bailout was the final coup de grâce. The transfer of their enormous debt onto the taxpayers has turned the American citizens into slaves at the mercy of the International Bankers.

This is why I call this the Civil War in reverse. Obama has been compared to Lincoln, but if he continues along his current path he will become the anti-Lincoln. The latest Geithner bailout is like the anti-emancipation proclamation. Our children and our grandchildren are being sold down the river to a life of slavery. They will be forced to payoff the enormous, inconceivable debt that these bailouts entail. Oh pity the poor children. Will they curse their parents for placing this yoke upon their shoulders?

I just wish that Matt would read my article on the transfer of power to China and realize the true purpose behind this Machiavellian power grab. I would love to see his take on this issue. We must continue to speak out while we still can. Those of us who are older and have little to lose should do all that we can to defend our children from these monsters.

I fear that the public has misplaced its trust into the hands of Obama. So far he has shown no sign of fighting the new oligarchs. Indeed he has done everything to facilitate their plans. His charm, as displayed in a recent 60 minutes interview, has disarmed the public. He has thrown a few bones to the desperate public in the form of increased unemployment benefits and government help in refinancing. But the big money, and we're talking trillions of dollars, is landing in the laps of the new oligarchy. Is this bread and circus all over again? I'm afraid so.

Are these events inevitable? Is there nothing we can do save our children from becoming 21st century slaves? Nothing is inevitable.  This is still a democracy and the people still have the power to affect change. Take a look at Russia. Putin was able to throw out the oligarchs and regain control of the wealth of the nation. He threw the oligarchs in prison. The same thing has to happen here. The danger of course is that Putin will become a dictator. Perhaps in the United States there is less danger of that given our history and traditions. But sadly, Obama does not appear to be the American equivalent of Putin. In fact he has fought in favor of the bailouts. So at this moment it is up to the American people to apply sufficient pressure on the government to act in the interest of the citizens instead of the oligarchy.

So what's next? Let me make a few more predictions based on the latest news and my "conspiracy theory" regarding a transfer of power to China.

Prediction 1 - China will be invited to join the G-8
This is a prediction that I made earlier. In fact the CFR (Council on Foreign Relations) is already calling for this to happen.
"No country will benefit economically from the financial crisis over the coming year, but a few states -- most notably China -- will achieve a stronger relative global position.
The Obama administration could lead efforts to bring China into the G-8 (the group of highly industrialized states) and expand China's shareholding position in the International Monetary Fund. China, in turn, could lead an effort to enlarge the capital base of the IMF."
This article is now only available by subscription, but you can hear a podcast of the entire article here. But don't tell the CFR webmasters or they might block it :)

Prediction 2 - The dollar will be replaced as the global exchange currency by IMF SDRs
This is a no-brainer because China has openly announced their backing of this position. In fact it was announced personally by Zhou Xiaochuan. Remember him? He is China's Chinese central banker and Geithner's buddy on the G-30. I'm betting that this is one of the topics that had been discussed in previous G-30 meetings. Why doesn't someone ask Paul Krugman since he sat in on those meetings as a member of the G-30? Of course don't expect to get a straight answer. Or for that matter why doesn't Congress ask Geithner about this since he is supposed to be working for the American people now? Again, I wouldn't expect a straight answer because Geithner isn't really working for the American people, he's working for the International Bankers.

Prediction 3 - Massive privatization of US government assets
I talked about this in my article on the transfer of power to China. This is a natural consequence of the economic "crisis". As slaves we don't get to own our country's assets anymore. Instead they will be sold off to foreign governments and we will have to pay rent to use them. Kind of like a tribute to our new masters.

Prediction 4 - Goldman Sachs will bail out of the TARP program
Again this is a no brainer because GS has already announced this. Of course they shouldn't be allowed to get away with this given the amount of money that was funneled to them through AIG, but don't expect Obama to challenge them on this. As masters of the financial universe and head honchos among the new oligarchy, I fully expect them to get away with it.

Prediction 5 - Taiwan will be returned to China
This is a huge issue for China. This may take a while to play out, but China is not going to give up on this one. China may even make some military threats to make this happen. This will be a huge power shift in the far east with tremendous ramifications for US military strategy in that part of the world.

Prediction 6 - Double digit inflation in the US
This is another no brainer. Perhaps this will be timed to happen towards the end of Obama's term in office to weaken his chances for re-election. That's the way it played out for Jimmy Carter. But if Obama is a good boy and follows orders, who knows? This could be delayed indefinitely. As a consequence of inflation many are expecting the price of gold to skyrocket. This would seem logical, but it appears that the price of gold is being manipulated. I expect the price of gold to be maintained below $1000. This is because of the psychological significance of the $1000 threshold and its impact on the markets.

Prediction 7 - More free trade, WTO given more power
When people talk about a New World Order and global government, they should be looking at the WTO. The WTO has the power to enforce economic policy on "sovereign" nations. It routinely resolves "trade disputes" and forces countries to comply. The saddest day in US history was the day China became a member of the WTO. This was negotiated by Robert Zoellick. Watch out for him! He is currently head of the World Bank. He is a sino-phile that has been clamoring to get China more power in the IMF. The only way to stop China is to stop the "free trade" movement. The US must protect itself economically. Despite what you are hearing in the press, "protectionism" is not a dirty word.

Prediction 8 - More "regulatory" power goes to the Fed
This is already being talked about. I read some paper by Geithner a while ago asking for this. The Fed will become more powerful. Under the guise of increasing "regulation" it will be handed even more power over the US economy. This despite the fact that they didn't use the regulatory power they already had to keep the Wall St. banks from creating the huge derivatives mess. In fact they encouraged it.

Prediction 9 - China will strengthen its currency - under its own terms
China will revalue its currency to make it stronger. This will come at a time of China's choosing when it determines that the world economy has bottomed out. This will effect China's ability to export, but will allow China to buy up cheap foreign assets. China is waiting for all the "toxic" assets to be removed from the books before swooping in and buying the good assets.

Prediction 10 - Social unrest in China
The people of China will not get a totally free ride. They will pay the price in terms of lost employment. China's economy will go into a recession just like the rest of the world, if it hasn't already. Don't believe the official economic numbers. People losing their jobs will result in social unrest, but China will not hesitate to use brutal force to stop the rioting - just as it did at Tiananmen Square protests in 1989.


I hope my predictions are wrong. This is effectively the agenda that I see for the future. If people are aware of this agenda, then they will be better prepared to head it off. I offer these predictions with the hope that people will realize the agenda of the International Bankers and fight to stop it.

Remember - nothing is inevitable. America is the "land of the free and the home of the brave". There is a Civil War going on for the future of America. You won't read about it in the MSM, but it is happening all the same. It's time to fight for our children and for the country we love.

Say no to the bailouts! Nationalize the banks and prosecute the guilty bankers! [Now where's my pitchfork?]

Bonus prediction - the next big "crisis" will be the fall of JP Morgan Chase
The "Morgan mafia" started the derivatives business and is the biggest player by far. It holds something like $90 trillion in derivatives which is about half of the total amount held by US banks.  This is according to the Office of the Comptroller of the Currency which is a branch of the US Treasury Dept. For comparison the US GDP in 2008 was about $14 trillion and the world GDP for the same year was around $78 trillion.


Anonymous said...

I would consider myself to some extent a "Sino-Phile" as I believe China is heading for democracy and there are far worse countries around who get far better treatment from the west. I am also essentially in favour of free trade. However, I do believe this whole financial crisis has, whether planned or not, resulted in a massive shift of power and money towards the elite and away from ordinary people, particularly to the investment bankers and that governments have just rolled over for them. I can also believe that such people would want to encourage a Neo-Facist regime which effectively enslaved most people (I would argue most of us are slaves already). Therefore, I think your contention needs to be given serious thought and we all need to be looking for signs that it is true. However, the rise of China, is in my opinion inevitable in any event, as you have a large country with a well educated, non-religious population who are committed to business as a core activity, if the populations of the US and China were the same I believe they would end up at the same level, but as China has 5 times the population it seems likely it will end up much more powerful than the US - although not more powerful that Europe, North America and Japan combined, and certainly not if India and Russia are taken into consideration as well.

Frank Hope said...

Thanks for the well thought out comment. I am also believe it or not a sino-phile in the good sense. I suppose I should be more careful to avoid appearing to be a nationalist (in the bad sense) or a racist (in any sense).

I was very excited about the rise of Chinese democracy at the time of Tiananmen Square in 1989. And I continued to be excited about the economic development of China. But when I took a closer look I realized that the development is actually very uneven and the majority of Chinese people are being simply exploited as cheap labor.

The latest example I came across was the very strange case of Chinese workers being exploited to play computer games and to win virtual gold. They are called "gold farmers" and work under sweatshop conditions.

Also the head of China's Parliament, Wu Guangbao, recently declared that the communist party had no intention of giving up its hold on power by allowing other political parties and is strictly opposed to democracy.

What I am most afraid of is that following China's lead will engage the whole world in a "race to the bottom". More precisely that pressures will be exerted to lower wages worldwide, which I think is already happening. So instead of the west lifting up China, China will pull down the west.

Of course not everyone in the west would be equally affected. The new oligarchy would stand to benefit the most.

I'm not against free trade as long as it protects the rights of workers. But the current free trade agreements seem to mostly benefit the large corporations.

Finally I am extremely concerned about human rights in China in general and especially about the treatment of the Tibetans. Tibetan buddhism is a very peaceful religion and no threat to anyone, but the Chinese rulers insist on brutally repressing the Tibetan people for practicing their beliefs.

The Chinese attitude towards Tibet reveals their imperialistic ambitions. China must be kept in check. The best way for the US to do this is to ally ourselves with China's natural adversaries - Japan, Korea, India and especially Russia.

Unfortunately our leaders have foolishly sought to isolate Russia and have pushed Russia into a closer alliance with China. Kissinger and those that followed him chose China over Russia. This may have been appropriate during the cold war, but it seems to me that Russia has come further along on the path to democracy and freedom and yet we continue to isolate Russia while welcoming China into the WTO.