Category Archives: Belt and Road Initiative (BRI)

“Wolf Warrior Diplomacy”: Israel’s China Strategy in Peril   

Israel’s balancing act that allowed it to reap America’s unconditional and, often, blind support, while slowly benefiting from China’s growing economic influence and political prestige, is already floundering.

Thanks to the heated cold war between the US and Chinese economic superpowers, the Israeli strategy of playing both sides is unlikely to pay dividends in the long run. Soon enough, Tel Aviv might find itself having to make a stark choice between Washington and Beijing.

When US Secretary of State, Mike Pompeo, visited Israel on May 13, two items topped his agenda: Israel’s imminent illegal annexation of Palestinian land and the growing Israeli-Chinese economic ties.

Pompeo communicated his country’s stand on both issues, reflecting Washington’s long-standing policies regarding Palestine and China. In the case of Palestine, as with the rest of the Middle East, Washington seems to adhere to Tel Aviv’s agenda, often to the letter.  China is a different story.

Two significant historical examples come to mind: one, is Israel’s attempt to sell China Israeli-made Phalcon airborne radar system, which relied heavily on American technology in the 1990s; a similar event transpired in 2005, this time concerning Israel’s Harpy anti-radar missile. On both occasions, Israel succumbed to American pressure and canceled both deals.

For the Chinese, Israel matters for two different reasons. One, Israel is a strategic stop in China’s Belt and Road initiative, China’s most significant economic project to date, ultimately aimed at turning Beijing into a center of global trade and financial activities. Two, China is hoping to fight the US on its own political turf in the Middle East — partly in response to the American ‘pivot to Asia’ strategy, which was initiated by the Barack Obama administration.

But the world — in terms of political and economic balances of power — after the coronavirus pandemic is likely to prove a different one when compared with previous years. China’s rise has been in the making for many years and the US political retreat and declining global outreach has been quite evident for some time. The isolationist policies of the Donald Trump Administration, coupled with Washington’s many China-related tantrums in recent years, are all indicators of the vastly changing political realities of a once-unipolar world.

A few years ago, Beijing had the time, patience, and resources to play a long-drawn geopolitical game in order for it to challenge the US’s global influence, whether in South America, Africa, or Israel.

The visit by China’s Vice President, Wang Qishan, to Israel in 2018, to “boost business ties”, was part of this Chinese strategy. That visit followed the signing, one year earlier, of the China-Israel Innovative Comprehensive Partnership. As of 2018, China-Israel trade has jumped to $14 billion and has grown exponentially ever since.

China would have been happy to carry on with that strategy for many years to come. Israel, too, would have played along, considering the lucrative financial returns from its China partnership.

Indeed, despite Washington’s warnings against and, at times, explicit demands on Israel to refrain from giving Chinese companies access to fifth-generation infrastructure (5G) projects in the country, Israel labored to make China feel welcomed.

However, the global response to the coronavirus pandemic is likely to change this, as it has already accelerated the cold war between the US and China, pushing the latter to adopt a more aggressive form of diplomacy and pour massive sums into other countries’ economies to help them in their desperate fight against the COVID-19 disease.

The Chinese strategy is predicated on two main pillars: fortifying existing ties and solidarity with China’s allies or potential allies anywhere in the world, while pushing back against China’s foes, especially those who are participating in Washington’s anti-Beijing campaign.

The latter phenomenon is known as ‘wolf warrior diplomacy’. The ‘wolf warriors’ are Chinese diplomats who have, for months, pushed back with unprecedented ferocity against what they perceive to be US and Western propaganda.

“We never pick a fight or bully others,” China’s Foreign Minister, Wang Yi, told reporters in Beijing on May 24, while explaining China’s novel approach to diplomacy. “We will push back against any deliberate insult, resolutely defend our national honor and dignity, and we will refute all groundless slander with facts,” the top Chinese official said firmly.

China’s new aggressive diplomacy, especially if it continues to define the country’s approach to foreign policy in the coming years, is unlikely to permit Israel to maintain its balancing act for much longer.

China’s ambassador to Israel, Du Wei, who was entrusted with implementing Beijing’s soft-diplomacy with Tel Aviv, died in his home only a few days following Pompeo’s visit to the country. Although Wei’s death was not — at least publicly — perceived to be the result of foul play, his absence, especially in the age of coronavirus and ‘wolf warriors’, might signal a shift in China’s approach to its economic and political interests in Israel.

On May 26, under American pressure, the Israeli Finance Ministry denied China a massive $1.5 billion desalination plant contract, awarding it to an Israeli company, instead.

This is the first time in many years that the US has used its political and economic sway over Israel to curb Chinese influence in the country. China must be anxiously watching events unfold, to see if US pressure on Israel will continue to undermine Beijing’s long-term strategy.

The world’s quickly shifting balance of power and the US-Chinese unmistakable fight for dominance is likely to, eventually, force countries like Israel to make a choice, of wholly joining the American or the Chinese sphere of influence. It is all reminiscent of the American-Soviet Cold War, where much of the globe was divided into zones of influence operated by proxy from Washington or Moscow.

Balancing acts in politics only work if all parties are willing to play or, at least, tolerate the game. While this form of politics suited Israel’s interests in the past and was played, quite successfully for years by Israeli Prime Minister, Benjamin Netanyahu, the country’s balancing act is, possibly, over.

Between Washington’s precise demands to Israel to keep Beijing at bay, and the latter’s aggressive ‘wolf warrior’ diplomacy, Israel is facing a stark choice: remaining loyal to a fading superpower or diving into the uncharted waters of an emerging one.

China’s new Crypto-Currency:  First Step to Full Dedollarization?

 ‘We’ll cut off the whole relationship’ –Trump threatened China in a recent Fox-Business interview, suggesting he may cut diplomatic relations with China and thereby saving US$ 500 billion. He didn’t say how, though.

Mr. Trump’s anger referred to what he calls China’s “mismanagement” of the corona crisis. This is consistent with the new China bashing hard line being pushed by his administration. “I’m very disappointed in China,” Trump said during the same Fox interview. “We asked to go over and they said no,” he continued, referring to the Centers for Disease Control and Prevention’s (CDC) February offer of assistance to the virus-stricken city of Wuhan. “They didn’t want our help. And I figured that was OK because they must know what they are doing. So, it was either stupidity, incompetence or deliberate.”

These are strong and unsubstantiated words, since there has never been a clearly documented accusation against China in how precisely China mismanaged the COVID-19 outbreak and is supposedly responsible for the COVID crisis in the US where real mismanagement, corruption, conflict of interest and particularly pharma-interests, competing private vaccine company interests  are written all over the walls, the walls of shame, falsifying corona statistics, by falsifying death certificates, paying hospitals for declaring any patient a COVID-patient, even if many of them aren’t, and for using ventilators, though it is widely known that ventilators are causing death in 60% to 80% of patients.

It is almost certain that the virus was created in a US bio-weapons lab from where it escaped deliberately or by accident and that patient zero was in the US and that the virus was brought to China in one way or another. President Trump knows it. He also knows about the real mismanagement of the crisis in his country, the United States. But he has always been good at self-promoting propaganda and slandering perceived enemies, as long as he thinks it may help him being reelected.

It is obvious that the US China bashing has nothing to do with China’s “mismanagement” of the corona epidemic, but rather with China’s bold move a step further away from the dollar-economy, by:

First, using the yuan and local currencies boosting trade among the ASEAN+3 countries (Association of Southeast Asian Nations – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam; plus 3 = Japan, South Korea and China). Monetary transactions will use the CIPS (Cross-Border Interbank Payment System), avoiding the dollar controlled SWIFT payment scheme. This is mostly to prevent US interference in international monetary transactions and also in response to the United States’ threat of cutting off Chinese supply chains.

The cutting off supply chains is, of course, sheer bluff, as literally 80 percent-plus of US industries depend in one way or another on supplies from China. This dependence is particularly significant in medical supplies, where the US depends for 80% to 90% on China. But China is China, and President Xi acted fast calling the bluff and the US may suddenly stand there with an empty cup, since such supply chains are not replaced overnight.

In the first quarter 2020, ASEAN countries have become China’s largest trading partner with 15.1 %, outpacing the European Union (EU). Trade with South Korea and Japan amounted to another 13.7%, bringing the total close to 30%. Adding China’s trade with Russia, another at least 15%, is getting close to a 50% tipping point of China’s closest partners abandoning commercial transactions in US-dollars.

Second, by launching a new People’s Bank of China (PBC = China’s Central Bank) controlled crypto-currency for international trade, thereby further circumventing the US-dollar and SWIFT controlled international money transfer system which makes all transactions vulnerable to US interference and sanctions.

China’s new cyber-money, e-RMB (Ren Min Bi, meaning People’s Money), or Yuan, is currently being tested in several Chinese cities, including Shenzhen, Suzhou, Chengdu, and Xiong’an. In these cities it has almost universal acceptance; i.e., for salary payments, public transportation, food and most retail shopping.

The use of digital money is nothing new in China. Today about 90% of all monetary transactions are electronic, for example, through WeChat and AliPay, but they do not replace the existing cash currency.

Commodity pricing today, mostly dollarized, will be priced by China in yuan and traded in crypto-yuan. Yuan pricing for commodities, such as gold, crude oil and iron ore, has already started. As China is recovering from the pandemic more quickly than the rest of the world, relatively high-returning yuan-denominated investments and commodity assets will become more attractive.

The non-interference factor of a Chinese Central Bank backed crypto-currency is an additional security element that will further boost the Chinese Yuan as a reserve currency. Already now, countries around the globe are sick and tired of US meddling in their international transactions and especially with US sanctions – that may come at a whim – every time a country demonstrates her sovereignty or disobedience to US dictates. This leads many countries that may not speak out publicly for fear of sanctions to gradually and quietly divesting their dollar holdings into Chinese yuan.

A tipping point may be reached when about 50% of world trade and world reserves are denominated in yuan. At this point it would be likely that the worldwide dollar hegemony will be no more, as it may be displaced by the yuan.

Several leaders of countries were killed for attempting to replace the dollar for trading with other currencies. For example, Saddam Hussein, for his intent to use the euro for trading Iraq’s hydrocarbon riches, and Libya’s Gadhafi, when he wanted to introduce the Gold-Dinar as a Pan-African trading currency, thereby freeing Africa from western monetary slavehood. As we all recall, he was literally lynched by NATO on 20 October 2011, at the initiative of Hillary Clinton with the strong support of then French President Sarkozy. By the way, this western monetary stranglehold on Africa prevails as of this day – a new-old kind of colonization, nobody in the western mainstream reports on.

Once the new e-RMB (yuan) has been successfully tested locally it will be launched internationally. While China’s new PBC-backed cyber-currency’s internationalization will make the yuan even more attractive among trading partners, and also as a reserve currency, China may simultaneously divest its huge reserves of US Treasury bonds (about US$1.2 trillion) into purchasing assets abroad paid in US-dollars. The Belt and Road investments maybe a suitable vehicle to reduce dollar holdings at home.

In the current high corona debt-crisis around the world, especially the Global South, China may also consider a program of Debt Jubilee (debt forgiveness) to the poorest partner countries which may be already, or potentially be, future Belt and Road associates.

At present and since October 2016, the Renminbi (Chinese yuan) is part of a 5-currency basket at the IMF that constitutes the Special Drawing Rights (SDR), the world’s ultimate virtual reserve currency. The SDR share distribution is US-dollar 41.73%, euro 30.93%, Chinese yuan 10.92%, Japanese yen 8.33% and the British pound 8.09%. This currency allocation to the SDR is disproportionate with regard to the economic strength of the respective countries, especially China, the world’s second largest economy, rapidly moving towards first place.

China may want to vigorously renegotiate with the IMF her currency proportion in the SDR, as well as reviewing country quotas which by now are out-of-line with member countries’ economic weight. An IMF capital increase is overdue. The IMF capital base today is SDR 477 billion (US$ 677 billion). In addition, there is the temporary New Arrangement to Borrow (NAB) which in January 2020 has been doubled to SDR365 billion (US$ 475 billion), a total resource-base of about US$ 1.15 trillion. Yet, the IMF already today foresees US$ 1 trillion for additional corona debt lending and debt forgiveness. Since the NAB is only a temporary arrangement, a quota increase and review; i.e., a proper adjustment for China’s economy is more than overdue.

A quota adjustment in favor of China and the corresponding adjustment of the yuan’s proportion in the SDR basket would further enhance China’s currency vis-à-vis the rest of the world. This coupled with an incorruptible cryptocurrency controlled by China’s Central Bank and possibly backed by gold, would be a formidable reserve currency that most countries would like as their chief reserve asset. This, of course, is what Washington is afraid of. It would clearly endanger and probably crush the global US-dollar hegemony.

The world would be a better place for it.

Therefore, the current China bashing and attributing guilt for spreading and mismanaging the corona virus is a sheer farce – a treachery of the
world, a deviation of the real reason behind Trump’s attempt to demolish China’s reputation around the globe, namely by doing so, hoping to destroy the rise of China and the appreciation of the Chinese yuan, and thereby the yuan’s attractiveness as an investment currency for most of the rest of the world.

This is pretty similar to the real reason for the 2018-2019 US-China trade war, initiated by President Trump, had the objective of ruining the yuan’s reputation in the world arena. To no avail. Washington eventually quietly and unceremoniously lost the conflict over trade. Despite Trump’s loud declarations to the contrary, the US needs China much more than vice-versa.  Just look at the Chinese supply chain which the west, in particular the US, cannot replace from one day to the other.

Under President Xi Jinping’s leadership, China has switched gears rather fast. Preparations to orient towards Asian markets are in full swing. China is enhancing relations with Asian markets; i.e., the ASEAN countries, plus Japan and South Korea.

Members of the SCO (Shanghai Cooperation Organization) are also a trading market China is already engaged in and may further strengthen it. The SCO, in addition to China and most of the Central Asian countries, include also Russia, India and Pakistan – and Iran is waiting for imminent admission. thers, like Malaysia and Mongolia are in observer status and also slanted to become SCO members in due course.

The combination of SCO, ASEAN-plus 3, amounts to more than half the world population and accounts for more than a third of the world’s economic output. This is a formidable global “market share” and will likely increase with every atrocity – military and economic – Washington is committing around the globe.

With her new crypto-currency, which eventually will be internationalized, China is well on her way to fully dedollarize, with the cyber-yuan replacing the US-dollar as the key trading and main reserve currency and to displace the United States as the world’s financial and economic hegemon.

The current China bashing does not prevent China from forging ahead with her economic activities – trade – and especially the unstoppable Belt and Road Initiative (BRI) via maritime and land routes, already counting on 160 partners (about 120 countries and some 40 multinational organizations) on four continents. This revolutionary global development scheme will require trillions of yuans and dollars for investments. It will also be generating trillions in revenues over time, shared with BRI partners. All towards a common future for mankind – a world moving towards an equilibrium with justice, harmony and peace.

Pivot To Peace Must Replace US Pivot To War With China

US and Chinese Fists and Weapons face-off (from the Financial Times)

The Trump administration, in seeking to divert attention from its bungled response to the COVID-19 pandemic and mishandling of the economic collapse, is escalating the bipartisan anti-China policy, which has a long history. This increases the potential of military conflict and economic war between our countries.

President Trump is making both a global depression and war more likely. The United States needs to de-escalate its conflicts and work with China and other countries to confront the pandemic and economic collapse, as well as the climate crisis and nuclear proliferation. This is not the time for escalation of conflicts, but for de-escalation and a new era of a multipolar and cooperative world.

Bipartisan Escalation Against China Is Longterm US Policy

While some blame Trump for the escalation of conflict with China, in this century, it began with President Obama’s pivot to Asia. It now includes a full spectrum dominance strategy of military, information, and economic aggression.

The roots of treating the Asian Pacific as a ‘US lake,’ just as Latin America is ‘our backyard,’ go back to 1878 when Navy Commodore Robert W. Shufeldt of the USS Ticonderoga described the Pacific as “the ocean bride of America.” Declaring a Monroe Doctrine for the Pacific, he described Asia as where the “search for Empire ceases and human power attains its climax.” Interestingly, it was the Panic of 1873 that led to a depression that resulted in a search for new markets. The US failed its invasion of Korea in 1871 and Shufeldt needed to improve US relations. In 1882,  his mission resulted in the first treaty in the Pacific Rim signed by the US and South Korea.

Today’s economic collapse is a major reason for Trump’s escalation with China but Trump is building on the policies of Barack Obama who declared himself the “first Pacific president” as part of a geopolitical strategy to challenge China. His Secretary of State Hillary Clinton wrote “America’s Pacific Century” that claimed the future will be decided in Asia and the US will be right at the center of the action. They put in place the Asian Pivot, an escalation of military confrontation with China with 60 percent of US war capacity shifting to the Pacific.

The US was already at war with China before Donald Trump entered the Oval Office. The US military and other branches of government were gearing up for a long-term conflict, involving both economic and diplomatic pressure on China with a buildup of military forces along the country’s periphery. Last Thursday, on Flashpoints on KPFA, KJ Noh pointed out that the Pivot came with the Air-Sea Battle War Doctrine designed to ensure the US maintained freedom of action throughout the globe. The US built a networked land, sea, air, space, and cyber collective warfighting capability with allied countries.

In 2011, the Council of Foreign Relations began urging the US to withdraw from the Intermediate-Range Nuclear Forces (INF )Treaty. The RAND Corporation, which advises the US military, published “Thinking through the unthinkable” in 2016. It described how the US could win a war with China, which it argued the US needs to do before 2025. The strategy is to focus on the South China Sea in a long and costly way that cuts off Chinese fuel supplies and trade. Almost a decade ago, military strategists James Holmes and Toshi Yoshihara found the First Island Chain was a natural barrier that could bottle-up the Chinese Navy.

RAND urged the US to void the INF Treaty so missiles could be directed at China. In 2018, Trump declared–as if on his own volition–the US would drop out of the INF Treaty. The US falsely claimed Russia had violated the treaty, but it was really about targeting China. In August 2019, the US withdrew from the treaty and started developing new missiles. The US then conducted the first test launch of a new ground-launched cruise missile.

The US has also been expanding military bases and military agreements in the Pacific. In September 2019, Secretary of Defense Mark Esper called for further expanding military base locations in the Pacific region while speaking at the Naval War College, calling the Indo-Pacific “our priority theatre.” Esper believes “The United States network of alliances and partnerships provides us an asymmetric strategic edge that our adversaries cannot match.”

The hybrid war against China includes an information war as well as economic conflict. Just before the novel coronavirus pandemic, the propaganda war was most evident around the Hong Kong protests and the disinformation campaign about the Uyghurs. The US has been funding anti-China activities in Hong Kong since 1996. People have mistakenly called the anti-China protests ‘democracy protests’. While there was confusion about the protests, it is obvious when they called for “Trump to Save Us” and worked with right-wing anti-China senators that Hong Kong is part of Washington’s anti-China strategy. The US passed the Hong Kong Human Rights and Democracy Act, which the US will use to justify intruding into the internal affairs of China and Hong Kong.

Similarly, reports based on dubious studies claimed mass imprisonment of millions of Muslim Uyghurs, or even that there is a Muslim Holocaust in China. These were vast exaggerations used to stoke anti-China views. The US has long backed the World Uyghur Congress as part of its effort to undermine China from within. A small minority of poor, radicalized Uyghurs, who have been involved in terrorism and violence in China and have also fought with ISIS in Syria, are a problem for China.  People who visited the region and reported on the Uyghurs describe what we are hearing as ‘shameful lies’ peddled by the US empire.

Under Obama, economic domination involved the largest corporate trade agreement in history, the Trans-Pacific Partnership. The TPP included the United States and 11 Pacific Rim countries, excluding the largest economy in the hemisphere, China. It was designed to ensure US hegemony in the Asia Pacific through corporate dollar domination. Popular Resistance helped organize a five-year ‘movement of movements’ campaign that stopped the TPP. This defeat was seen as the beginning of the end of US hegemony in Asia.

But, the defeat of the TPP did not stop the US’ focus on Asia. In 2018, the United States announced a new national defense strategy, “Great Power Conflict,” with China as the top target. Around the same time, the Nuclear Posture Review announced the escalation of nuclear weapons development, which also started under Obama. The new arms race also includes space, traditional weapons, cyber defense, and surveillance.

The US fears the 21st Century will be the Chinese Century and is doing all it can to prevent that development. This has resulted in a bipartisan policy of militarily surrounding China with nuclear and other weapons.

The Trump COVID Escalation

The Trump administration is now using the novel coronavirus to escalate opposition to China. This includes a propaganda offensive that is becoming a Chinese version of Russiagate. The Trump administration made a point to call it the “Chinese” or “Wuhan virus” until it was told this was an inaccurate description as we still do not know where it began. The propaganda continues with claims that China was not transparent, is hiding the number of deaths, punished doctors who discussed the issue, and leaked or manipulated the virus.

A thorough reality check of these claims has shown them to be false but they have built hatred for China, resulting in prejudice against Asian people and laying the groundwork for escalation. Now Trump and Biden are accusing each other of being soft on China. Biden accuses Trump of not holding China accountable while Trump is seeking to use China as a scapegoat for his failed response to the virus. Fearmongering is being used to justify escalating the economic and military conflict with China.

The reality is China had a rapid, breathtaking, and impressive response to the virus that bought countries time to respond and won praise from health experts. China allowed public health officials to examine its response, independently confirming its successful response. China’s approach provides other nations with lessons they can learn to combat the virus. In addition, China is providing assistance to nations throughout the globe to help them respond to the pandemic. Indeed, while countries received little or no help from the European Union and the United States, China along with Cuba provided aid to them.

Last month, China’s top intelligence ministry, the Ministry of State Security, presented a report by China’s Institutes of Contemporary International Relations to top Beijing leaders that warned China needs to be prepared in a worst-case scenario for an armed confrontation with the United States. This risk comes from the backlash against China over the pandemic.

This week, Reuters reported the US is investing heavily in weapons for use against China. Budget documents show the Marines sought $125 million to buy 48 Tomahawk missiles next year and $3.2 billion for hypersonic technology, mostly for research on new, long-range missiles. The Pentagon also seeks $224 million for another 53 new Long Range Anti-Ship Missiles in 2021. They expect to have more than 400 of them in service by 2025. These will be used on Navy Super Hornet jets and Air Force B-1 bombers.

Testimony also reported the Marines had successfully tested new shorter-range anti-ship weapons, the Naval Strike Missile. Reuters reports “in a radical shift in tactics, the Marines will join forces with the US Navy in attacking an enemy’s warships. Small and mobile units of US Marines armed with anti-ship missiles will become ship killers.”  These would be dispersed at key points in the Western Pacific and along the First Island Chain.

China has urged the US to stop “moving around the chess pieces” in the Asia Pacific. A Chinese military spokesman, Senior Colonel Wu Qian, warned last October that Beijing would “not stand by” if Washington deployed land-based, long-range missiles in the Asia-Pacific. The US moves are leading to an arms race in the Asia Pacific. Reuters has published a series on China’s military that revealed in most categories, China’s missiles now rival or outperform US counterparts.

In addition to these plans, the US has already increased military activity in the Asia Pacific. The South China Morning Post reported on May 10, that the US increased military operations in waters close to China. This has included 39 flights over the South China Sea, East China Sea, Yellow Sea, and the Taiwan Strait, more than three times the number carried out in 2019. The US Navy also conducted four so-called freedom of navigation operations in the South China Sea in the first four months of 2020 – compared with just eight for all of 2019.

A conflict between the United States and China presents a risk of global warfare as the US has directed NATO to focus on China and has been building military relations in the Asia Pacific, especially with its closest military ally, Japan. China has also built relationships with numerous countries including Russia. The United States has been increasing military spending in the region while Russia and China have responded with the development of new weapons and also increased spending. The Pentagon is planning for a new long war with China and Russia.

Stephen Melkisethian from cc-nc-nd-flickr

Time for a Pivot to Peace

Rather than a national security strategy of major power conflict, the US needs a strategy of major power cooperation. The United Nations has called for international cooperation and a global ceasefire, which the US blocked this week.

People need to promote and work toward peace as a top priority as the risk of conflict escalates. We urge you to sign onto Peace Pivot where you can find more information on the conflict between China and the US and what you can do about it. US elected officials should not be rewarded for China-bashing. We must work together to call out the falsehoods about China so that doing so backfires against the politicians who make them.

China’s rise from poverty to becoming an engine for the global economy should not be seen as a threat to the United States. China’s Belt and Road Initiative can help all nations. If the United States responds with an escalation of economic and military conflict it will undermine US leadership and bring greater insecurity to the world. The US must work with China, and other nations in this new multipolar world to stop the pandemic, economic collapse, climate catastrophe, and the risk of nuclear war.

Trump wins! Completing Obama’s Pivot to Asia and the Confrontation with China

Even before becoming the 45th president of the United States, Donald Trump had one consistent foreign enemy – China. Partly fueled by his intrinsic white supremacy and his antipathy for the liberal elite “globalists” who evoked his personal inferiority complex, Trump has never waivered from his fierce opposition to what he saw as the “yellow peril” from China.

So when the Obama Administration announced in 2011 that the US would make “a strategic pivot” in its foreign policy to focus its military and political attention on the Asia-Pacific, particularly Southeast Asia, which meant China, it was one time that Trump supported Obama’s position – but for very different reasons.

For Trump, the problem was the cozy relationship between finance capital and the transnational corporations they funded during the neoliberal period of rapid and deepening globalization of production. The result of that relationship was that much of the industrial base of the U.S. economy was transferred first to Mexico and then mainland China. Altering that relationship and bringing those jobs “back home” as part of his “America first” position became a campaign issue and his intended first order of business once he assumed the presidency.  Shifting trade relations in favor of his capitalist base in the U.S. was a primary objective with Chinese containment being a necessary but almost secondary objective.

Trump’s opposition to the Trans-Pacific Partnership (TPP), the “gold standard of trade deals” according to Hilary Clinton before she pretended to oppose the treaty during her 2016 campaign, was seen by the elite as the signature deal that would provide the leverage to contain China’s ambitions in the Asia-Pacific region and globally, while also ensuring the continuity of economic relationships for U.S. transnational capital to utilize China as a profitable zone for the production of goods and services for the U.S. and European markets.

Trump’s opposition to the TPP and his comments regarding the entire architecture of the global neoliberal project of the last forty years was seen as reckless and made him a threat. The financial and corporate transnational elite moved swiftly operating though the state and media to destabilize his administration, even before he took office. That fraction couldn’t care less about his rhetoric on race, Muslims and immigration; in fact, his theatrics became a very valuable distraction while they completed the strengthening of the national security state under Bush and Obama and plotted to either get rid of Trump or impose the discipline of their agenda on his administration.

As Trump saw it, completing the pivot to Asia required one strategic angle – reducing tensions with Russia with the intent to bring them into the fold of “Europe” in order for the U.S. and Europe to combine forces to discipline China. What Trump hadn’t anticipated and was clearly unprepared for, was the ferocity of the efforts to make it impossible for him to govern. Russiagate became the issue that would block his plan to reconcile with Russia and bring the full force of the state against China.

But, today, after having survived the unprecedented efforts by unelected power to undermine his presidency perhaps in the history of the U.S. nation/state short of actual assassination, Trump has the support of a growing coalition of forces across the ruling class spectrum that represent a new and growing consensus that China is out of control and is a real threat to U.S. global hegemony.

What changed?

Limiting China to a specific role in the international division of labor was always part of the plan even when China received “most favored Nations status” in the 90s and membership in the World trade Organization.

The relationship between U.S. transnational capital and the Chinese state was seen as a win-win. China served as platform to produce goods and services for U.S. markets providing jobs for Chinese labor and revenue for the state while providing price competitive products for U.S. consumers. In the process it was assumed that China’s integration and participation in the global capitalist order would result in the “liberalization” of their economy and political system and open up an enormous new market for U.S. capital.

The problem, of course, was that the Chinese had their own plans.

The new bipartisan, ruling class consensus that more aggressive measures were needed to contain China was captured in the now infamous “pivot to Asia” announced by Barack Obama in 2011.

Today the growing ruling class consensus that has given new life to Trump’s anti-China campaign is reflected in the positions that say economic integration with China did not result in any transformation of China into a “regular” capitalist nation. And with the Chinese Belt and Road Initiative (BRI) introduced by Chinese president Xi Jinping, China is an existential threat that can only be countered by military means.

War Against China, COVID-19, and Black Working-Class Position

“Not One Drop of Blood from the Working Class and Poor to Defend the Interests of the Capitalist Dictatorship” (Black Alliance for Peace (BAP) Slogan)

The psychopathology of white supremacy blinds U.S. policymakers to the political, economic, and geopolitical reality that the U.S. is in irreversible decline as a global power.  The deep structural contradictions of the U.S. economy and state was exposed by the weak and confused response to COVID-19 and the inability of the state to provide minimum protections for its citizens and residents. But even in decline, the U.S. has a vast military structure that it can use to threaten and cause massive death and destruction.

This makes the U.S. a threat to the planet and collective humanity because U.S policy-makers appear to be in the grip of a death-wish in which they are prepared to destroy the world before voluntarily relinquishing power, especially to a non-European power like China.

For example, when Secretary of State, Mike Pompeo declared in public that the United States and its Western European allies must put China in “its proper place,” this represents a white supremacist mindset that inevitably will lead to monumental errors of judgment.

This white supremacist, colonialist mentality is unable to accept the full and equal humanity of non-Europeans and, therefore, are driven to an irrational obsession with preventing what is now inevitable – global hegemony passing to China.

To prevent this objective eventuality, U.S. policymakers are openly advocating war with China. Not only war, but a war that some of them argue must take place before 2025!

And this is not some wild construction from the Trump Administration.

More than a decade ago military strategists war-gamed on how to defeat the Chinese concentrating on fuel supplies and trade routes. The RAND Corporation described during the Obama Administration how the U.S. could defeat China in a conventional war and in 2011, the Council of Foreign Relations began to urge the U.S. to withdraw from the Intermediate-Range Nuclear Forces (INF )Treaty which it did in 2019 in order to redeploy intermediate range missiles off the coast of China.

COVID-19, that the Trump Administration constantly refers to as the Chinese virus, and the blame game being played, is preparing the public to support conflict with China.

However, The Chinese are aware of the dangerous turn of events with COVID-19 and are preparing accordingly. And here is the real danger.  Forces within the Chinese Communist Party and military are warning that the nation must prepare itself for all contingencies, including armed conflict.

For African Americans we must resist all efforts to draw us into a conflict that has nothing to do with us. We must be clear that we are not going to allow our sons and daughters to be sacrificed in yet another war of aggression on behalf of white capitalist/colonial power.

We must reject anti-China propaganda being directed at our communities using lurid stories of Chinese anti-black racism in China and the alleged attempts by the Chinese to “colonize” Africa, a position that is both absurd and insulting in how it trivializes the brutal reality of European colonization that the continent has yet to recovery from.

Trump is winning the propaganda war on the Chinese issue because at its core the U.S. is susceptible to appeals to cross-class white racial solidarity against the uncivilized hordes. Samuel Huntington’s Clash of Civilizations did not just resonate with right-wing audiences but was an acceptable commentary on the challenges of Western modernity.

However, we must remain clear about who our enemy is. It is not the Chinese who are beating us down in the streets for not social distancing, who have denied us medical care, imprisoned us, killed us, poisoned our water, and forced us to face death on a job just to survive.  We got a historical beef, but it ain’t with China, Russia, or any of the enemies of the U.S.

From COP-21 To COVID-19: The Collapse Of “Predictive Models” and the Return to Actual Thinking

American Surgeon General Jerome Powell’s recent announcement that America would begin using real data and real trends instead of the World Health Organization-Bill Gates driven ‘predictive models’ came as a breath of fresh air for many who were beginning to lose hope that reason had been banished from world policy. When compared with reality, the WHO/Gates-funded narrative justifying the total shutdown of global economies falls apart like a house of cards as outlined perfectly by the Swiss Propaganda Research Institute’s Facts of COVID-19.

Powell’s announcement opens up a larger discussion on the nature of the human mind, and how the oligarchy has managed to subvert nation states over the past 50 years using a simple technique that replaces actual creative thinking for mind-less computer modelling.

The Global Coup: Predictive Models Take Over Actual Thinking

The age of “predictive doomsday models” in many ways grew out of the 1972 Limits to Growth study funded by the Club of Rome which popularized the technique of tying temperature increases to carbon dioxide and projecting economic variables like population, resource losses, and “pollution growth” into the future in order to scare the hell out of their incredulous victims and intimidate nations to drastically modify their collective behavior.

This use of skewed, under-defined statistics, projected into the future in order to “act preventatively on future crises” became a hegemonic practice for the next 40 years and has been used by neo-Malthusians consistently to justify the increased rates of war, poverty and disease across the world. Paul Ehrlich’s influential 1968 book The Population Bomb used similar models to cast trends of geometric population growth into the future which would result in a global crisis of unimaginable proportions as oil would dry up, arable lands dry away and resources disappear by the year 2000.

In 1968 his book, Ehrlich stated his misanthropic view in the following words:

A cancer is an uncontrolled multiplication of cells; the population explosion is an uncontrolled multiplication of people… We must shift our efforts from the treatment of the symptoms to the cutting out of the cancer. The operation will demand many apparently brutal and heartless decisions.

Obama and his science czar John Holdren (UNITED STATES SCI TECH SOCIETY) – RTXPEZ2

Ehrlich’s protégé John Holdren, who has led in the shutdown of NASA`s manned space systems and fusion program as Obama`s science Czar went further when he wrote on p. 942 in his 1977 book Ecoscience:

Perhaps those agencies, combined with UNEP and the United Nations population agencies, might eventually be developed into a Planetary Regime- sort of an international superagency for population, resources, and environment. Such a comprehensive Planetary Regime could control the development, administration, conservation, and distribution of all natural resources, renewable or nonrenewable, at least insofar as international implications exist. Thus the Regime could have the power to control pollution not only in the atmosphere and oceans, but also in such freshwater bodies as rivers and lakes that cross international boundaries or that discharge into the oceans. The Regime might also be a logical central agency for regulating all international trade, perhaps including assistance from DCs to LDCs, and including all food on the international marketThe Planetary Regime might be given responsibility for determining the optimum population for the world and for each region and for arbitrating various countries’ shares within their regional limits. Control of population size might remain the responsibility of each government, but the Regime would have some power to enforce the agreed limits.

Under this heartless logic, nation states simply had to be converted into tools for imposing depopulation programs rather than naively endeavoring to end colonialism, poverty and war as foolish statesmen like John Kennedy, Bobby Kennedy, Enrico Mattei or Martin Luther King attempted.

Kissinger’s National Security Study Memorandum 200 (1974) outlined this new objective for America stating: “Assistance for population moderation should give emphasis to the largest and fastest growing developing countries where there is a special US and strategic interest”. Among those developing nations targetted for population reduction, NSSM-200 listed birth control and the withholding of food as primary tools. Kissinger coldly wrote: “is the US prepared to accept food rationing to help people who can’t/won’t control their population growth?”

Throughout the 1970s, the Trilateral Commission/Council on Foreign Relations cabal under the direction of Kissinger and Zbigniew Brzezinski completely took over American foreign policy and launched a new economic program which Trilateral Commission member Paul Volcker called “the controlled disintegration of the economy”. Upon attaining chairmanship of the Federal Reserve in 1979, Volcker put this policy to work by raising interest rates to 20% and kept them there for another two years- destroying America’s small and medium agro industries while leaving only a highly cartelized corporate behemoth capable of surviving such draconian rates. Real growth plummeted, long term planning was forgotten and deregulation ushered in vast speculation which replaced the formerly dirigistic capitalism that made the west great. All investments into scientific and technological progress were shut down. Fusion energy research was systematically destroyed as fast as the space program. Infrastructure investments dried up and America’s age of nuclear power construction was shut down.

In true Pygmalion fashion, the oligarchy was able to “scientifically justify” their misanthropic view of global governance by first breaking humanity’s knee caps and then arguing that we were never meant to run.

In today’s language, this practice of ‘predictive modelling’ is reflected in the central banking high priest Mark Carney’s calls for a new financial system to promote a decarbonized society by 2050 since ‘predictive models’ state that the world will heat 1.5 degrees according to a presumed connection to carbon dioxide emissions which can only be corrected if we monetize carbon and put a profit on shutting down human industrial activity. As it turns out, when compared to the real data, not only does one quickly find that the post 1977 warming trend ended in 1999, but the actual temperature falls well below all computer projections produced by the IPCC (which is to environmental policy what the WHO is to health policy).

This hysterical prediction is also seen in Prince Charles’ recent warning that the world has 18 months to save itself before ‘predictive modelling’ says that global warming becomes unstoppable and the earth burns in a dystopic inferno!

Charles is the son of the same Prince Philip who infamously gushed over his wish to be reincarnated as a deadly virus “in order to solve overpopulation” making it more than a bit ironic that Charles announced his contraction of COVID-19 on March 25. In a 1988 interview with Deutsche Press Agentur, Prince Philip said:

The more people there are, the more resources they’ll consume, the more pollution they’ll create, the more fighting they will do. We have no option. If it isn’t controlled voluntarily, it will be controlled involuntarily by an increase in disease, starvation and war. …In the event that I am reincarnated, I would like to return as a deadly virus, in order to contribute something to solve overpopulation.

One should not make the mistake of separating Philip’s misanthropic statements with his active role in co-founding the global ecology movement alongside Bilderberg group founder Prince Bernhardt of the Netherlands. This includes their joint role as co-founders of the World Wildlife Club in 1961, their founding of the 1001 Nature Trust in 1970 or their joint management and funding of global climate science throughout the 20th century. As I outlined in my 2019 lecture, it was this organization that was caught red-handed organizing the murder and coverup of John F. Kennedy.

 

Prince Bernhard and Philip’s powerful lackey Maurice Strong (who served as WWF vice-president under Philip from 1976-78), let the cat out of the bag in a 1990 interview saying:

What if a small group of world leaders were to conclude that the principal risk to the Earth comes from the actions of the rich countries? And if the world is to survive, those rich countries would have to sign an agreement reducing their impact on the environment. Will they do it? The group’s conclusion is ‘no’. The rich countries won’t do it. They won’t change. So, in order to save the planet, the group decides: Isn’t the only hope for the planet that the industrialized civilizations collapse? Isn’t it our responsibility to bring that about?

This is exactly what Carney and his fellow central banking ideologues are talking about when they speak of “Green New Deals“.

The Failure of the Collective Green Suicide Pact

After five decades of tireless panic and propaganda, the oligarchy has had to conclude that this whole plan hasn’t really worked out too well. Many nations were more than a little reticent to shut down the basis of their existence just because some Malthusian technocrats said their computer models required it to be so.

Many inquiring minds noticed that those same computer models never proved in the first place that carbon dioxide actually causes temperature changes and others noticed that in longer waves of history, carbon dioxide actually follows temperature changes… implying that the true causes of climate change has less to do with CO2 and more to do with astrophysical effects like the sun and cosmic radiation (which recent studies by Professor Svensmark have proved seeds clouds and plays a much more direct role in shaping climate change than statisticians wish to admit).

Others were bothered by the fact that linear computer projections fail to take into account such non-linear processes as human creative reason and morality which allows mankind the freedom to leap beyond our “limits to growth” through the discovery of new principles in the universe and the application of those discoveries to the economy in the form of constant leaps in scientific and technological progress. Try as they might, linear models cannot map non-linearity (except in the form of logarithms that seek chaotic randomness in the form of a Jackson Pollack painting), but not real creative DIRECTED progress.

What made this “Controlled disintegration agenda” additionally frustrating was the rise of China’s Belt and Road Initiative which demonstrated what REAL nation states can accomplish when they want to get rid of pollution, raise their populations out of poverty and “go green” at the same time

In total opposition to the doomsday ‘predictive models’, China has lifted 800 million people out of poverty by forcing the monetary system to obey human needs rather than conforming to the statistical models used by the World Bank or IMF. China, Russia and other nations working within the BRI Framework have transformed the definition of “green” in recent years by investing massively into carbon free energy like 3rd and 4th generation nuclear power, fusion research, hydroelectricity and greening deserts. On this last point, NASA recently announced a surprising 10% increase of global biomass due entirely to China and India’s development strategies which not only bring water into deserts, but also produce carbon dioxide which plants and trees actually treat as… FOOD!

Then Trump got elected and the Malthusian de-carbonization goals collapsed even further as an America long held under the control of a deep state changed its character and in so doing, revived both a lost sense of nationalism while also rejecting green suicide under a technocratic global dictatorship.

So something new had to happen.

New Lipstick, Same Pig

Luckily, computer modelling doomsday scenarios are not hard to come by for British intelligence assets working through London’s Imperial College and Bank of England who settled on a new strategy… if only a virus could be blown into global pandemic proportions through a systemic skewing of data and centralized control of data management through the Michael Bloomberg School of Public Policy at Johns Hopkins and World Health Organization… then perhaps nations will finally learn how to shut down their economies.

After COVID-19 was announced as a global pandemic by the World Health Organization, the COVID-19 Response Team at London’s Imperial College wasted no time in using the same predictive modelling techniques that failed so miserably on climate catastrophe projections to begin forecasting end times scenarios for the coronavirus outbreak. March 17 models projected over 500 000 UK deaths and 2.2 million American deaths over the coming months. These numbers were quickly taken up by the WHO and spread across international media to justify the study’s “remedy” of a full “shut down of major aspects of society for over a year.” Despite the fact that these models were adjusted to predict only 20 000 UK deaths and 100 000 US deaths a week later, the calls to keep the world economy shut down for 12-18 months continued by Dr. Cauci, Gates, Soros and leading experts from the WHO, some of whom were caught on camera advocating breaking into homes to separate family members who have COVID.

For those paying attention, Michael Bloomberg isn’t only a famous billionaire corporatist who paid $500 million to get his ass kicked on public television, but is also Mark Carney’s green bosom buddy who acted as United Nations Special Envoy for Climate Change from 2018-2019 until Carney took over the position. Bloomberg also chairs Carney’s Task Force on Climate Related Financial Disclosures which is a keystone piece of the new green cathedral of anti-growth economics which will punish all “climate offending” companies by cutting them from credit while rewarding “green zero carbon” companies which accelerate human population collapse.

Bloomberg’s School of Public Health just so happened to co-sponsor the October 19, 2019 Global Pandemic Exercise Event 201 alongside the Bill Gates & Melinda Gates Foundation, and World Economic Forum which ran computer simulations under the theme of a novel coronavirus pandemic killing 60 million people. Over the years while taking over economic, foreign policy and environmental policies of formerly industrial advanced nations of the western alliance, the neo-Malthusian movement also took over medical research through a gradual co-opting of funding of the World Health Organization by private foundations which have increasingly replaced the role of nation over the past 4 decades.

Today the Bill and Melinda Gates Foundation has become the primary financier of the WTO (taking the top spot with Trump’s recent announcement of America’s exit from it’s supporting role). With their interests so intertwined with Big Pharma, and the Five Eyes intelligence agencies, medical practice and medical policy has been put firmly under the control of an elite cadre of “scientific experts” who play god with the human race in ivory towers “untouched by politics” beholden only to the cold hard numbers of ‘predictive models’.

Both Gates and Bloomberg are among the top five world billionaires who run “The Giving Pledge“– which is a foundation made up of “good” plutocrats who pledged to donate half their wealth to charities. What are billions after all, when you know the system you parasitically exploited is designed to collapse? As Carney stated last year, those “that anticipate these developments will be rewarded handsomelythose that fail to adapt will cease to exist.”

Those industrial interests whom Carney threatened in his speech include those “dirty” (see “productive”) agro-industrial interests who are generally unhappy about the idea of being sacrificed on the alter of Gaia and would rather join China’s multi-trillion dollar Belt and Road Initiative, as the crisis continues to move closer to the inevitable collapse of the $1.2 quadrillion bubble economy. As this future collapse point accelerates towards the present, the oligarchy knows that nations enmeshed in the west’s monetarist net will gladly jump into the Multipolar Alliance as an alternative to their total destruction if for no other reason.

The Multi-Polar Alliance Re-asserts the Hegemony of the Human Mind over Computer Modelling

The beauty of the new Multipolar Alliance guided by the associated Belt and Road Initiative Framework is this new system’s reliance upon the non-linearity of human creative thought. By defining future states of humanity not as a crisis caused by human cancer cells killing Gaia, the new system approaches the future from the standpoint of creative change. By investing in space exploration, asteroid defense, lunar mining, fusion and fission development and large-scale infrastructure the Multipolar Alliance is bringing mankind back into harmony with the demands for boundless scientific and technological progress within creation.

Speaking to the CPC central committee in 2016, President Xi said:

Coordinated development is the unity of balanced development and imbalanced development. The process from balance to imbalance and then to rebalance is the basic law of development. Balance is relative while imbalance is absolute. Emphasizing coordinated development is not pursuing equalitarianism, but giving more importance to equal opportunities and balanced resource allocation.

In an earlier speech, Xi developed this concept even further:

We must consider innovation as the primary driving force of growth and the core in this whole undertaking, and human resources as the primary source to support development. We should promote innovation in theory, systems, science and technology, and culture, and make innovation the dominant theme in the work of the Party, and government, and everyday activity in society… In the 16th century, human society entered an unprecedented period of active innovation. Achievements in scientific innovation over the past five centuries have exceeded the sum total of several previous millennia. . . . Each and every scientific and industrial revolution has profoundly changed the outlook and pattern of world development. . . . Since the second Industrial Revolution, the U.S. has maintained global hegemony because it has always been the leader and the largest beneficiary of scientific and industrial progress.

In a 2019 speech calling for Russia’s prioritization of fusion power as a replacement to the fossil fuel economy, President Putin expressed similar insights saying:

It may seem strange at first, but fusion energy, which in fact is similar to how heat and light are produced in our star, in the Sun, is an example of such nature-like technologies.

Potentially we can harness a colossal, inexhaustible and safe source of energy. However, we will only succeed in fusion energy and in solving other fundamental tasks if we establish broad international cooperation and interaction between government and business, and join the efforts of researchers representing different scientific schools and areas. If technological development becomes truly global, it will not be split up or reined in by attempts to monopolize progress, limit access to education and put up new obstacles to the free exchange of knowledge and ideas.. With their help, scientists will be able to literally see nature’s creation processes.

So when Putin or Xi come out calling for a new economic order to replace the currently collapsing one, this is the spirit of the system he is talking about. They are talking about a system that rejects ‘predictive modelling’ using linear equations in favor of the REALITY of human creative mentation as a non-linear YET intelligible geological force of change bringing humanity into ever greater harmony with the laws of creation.

Why the Coming Economic Collapse Won’t be Caused by Coronavirus (Part 2)

This week, the markets took a 1000 point hit which was more than a little startling for many investors since the last 1000 point fall only happened three days prior… all in all bringing the financial markets to lows not seen since April 2008, and veering dangerously close to a precipice which has 1929 written all over it. Across the internet, panicky discussion has erupted over whether this foretells another 1987 collapse as Donald Trump warned, or something more akin to Black Tuesday of 1929. Others have pondered whether this is more similar to a 1923 Weimar hyperinflation where Germans became millionaires overnight (not much to celebrate when bread costs billions).

The fact of the oncoming collapse itself should not be a surprise, especially when one is reminded of the $1.5 quadrillion of derivatives which has taken over a world economy which generates a mere $80 trillion/year in measurable goods and trade. These nebulous bets on insurance on collateralized debts known as derivatives didn’t even exist a few decades ago, and the fact is that no matter what the Federal Reserve and European Central Bank have attempted to do to stop a new rupture of this overextended casino bubble of an economy in recent months, nothing has worked. Zero to negative percent interest rates haven’t worked, opening overnight repo loans of $100 billion/night to failing banks hasn’t worked- nor has the return of quantitative easing which restarted on October 17 in earnest. No matter what these financial wizards try to do, things just keep getting worse.

Rather than acknowledge what is actually happening, scapegoats have been selected to shift the blame away from reality to the point that the current crisis is actually being blamed on fluxes of immigration to Europe, China’s “bad economic behavior”, or even Coronavirus!

In the previous installment, I outlined the deeper causes of today’s oncoming economic meltdown by reviewing a 70 year history of bank de-regulation that began before Franklin Roosevelt’s body was cold. Today, I’d like to continue the story by analysing the real causes of the oncoming meltdown from a slightly different angle.

Deeper than COVID-19

Let me just state outright: That while the coronavirus may, in fact, be the catalyzer for the oncoming financial blowout, it is the height of stupidity to believe that it is the cause, as the seeds of the crisis go deeper and originated much earlier than most people are prepared to admit.

To start getting at a more truthful diagnostic, it is useful to think of an economy in REAL (vs. purely financial) terms —  that is: simply think of the economy as total system in which all cultures, nations and families of the world exist.

This co-existence is predicated on certain necessary powers of production of food, clothing, capital goods (hard and soft infrastructure), transportation and energy production. After raw materials are transformed into finished goods, these physical goods and services move from points A to B and are consumed. All of this change is made possible by the application of energy to perform work. This is very much akin to the metabolism that maintains a living body.

Now since populations tend to grow geometrically, while resources deplete arithmetically, constant demands on new creative discoveries and technological application are also needed to meet and improve upon the needs of a growing humanity. This last factor is actually the most important because it touches on the principled element that distinguishes humanity from all other forms of life in the ecosystem which Lincoln identified wonderfully in his 1859 Discoveries and Inventions Speech:

All creation is a mine, and every man, a miner. The whole earth, and all within it, upon it, and round about it, including himself, in his physical, moral, and intellectual nature, and his susceptibilities, are the infinitely various “leads” from which, man, from the first, was to dig out his destiny… Man is not the only animal who labors; but he is the only one who improves his workmanship. This improvement, he effects by Discoveries, and Inventions.

During a 1994 address to Russian scientists in Moscow, a modern adherent to Lincoln’s system (the late economist Lyndon LaRouche) addressed this concept from a modern perspective by asking:

Mankind is different than any other animal; how do we prove this? And how does that bear on this question of technology? If the hominids (mankind) were higher apes or animals, we would have the population potential (approximately) of higher apes, baboons (which some people behave like), or chimpanzees. In that case, in the past 2 million years of the interglacial period, at no time would the human population of this planet have exceeded 10 million persons approximately. We have increased the world population to 5.3 billion people. Twenty or twenty-five years ago, we had the basis for, in a normal fashion, going to 25 billion people without any great problem. In the past 30 years, we have destroyed so much of the planet’s productive technology and productive capacity that we are in a disaster.

What these men laid out in their own manner are not mere hypotheses, but elementary facts of life which even the most ardent money-worshipper cannot get around.

Of course money is a perfectly useful tool to facilitate trade and get around the awkward problem of lugging bartered goods around on your back all day, but it really is just that: a supporting element to a physical process of maintenance and improvement of trans-generational existence. When fools allow themselves to lose sight of that fact and elevate money to the status of a cause of all value (simply because everyone wants it), then we find ourselves far outside the sphere of reality and in the Alice in Wonderland world of Alan Greenspan’s fantasy where up is down, good is evil, and humans are little more than vicious monkeys.

So with that in mind, let’s take this concept and look back upon today’s crisis.

Greenspan and the Controlled Disintegration of the Economy

When Alan Greenspan confronted the financial crisis of October, 1987, markets had collapsed by 28.5% and the American economy was already suffering from a decay begun 16 years earlier when the dollar was removed from the fixed exchange rate and was “floated” into a world of speculation. This departure from the 1938-1971 Industrial growth model ushered in a new paradigm of “post-industrialism” (aka: nation stripping) under the new logic of “globalization”. This foolish decision was celebrated as the consumer-driven, “white collar society” which would no longer worry about “intangible things” like “the future”, infrastructure maintenance, or “growth”. Under this new paradigm, if something couldn’t generate a monetary profit within 3 years, it wasn’t worth doing.

Paul Volcker (Greenspan’s predecessor at the Federal Reserve) exemplified this detachment from reality when he called for the “controlled disintegration of society“, in 1977 and acted accordingly by keeping interest rates above 20% for two years which destroyed small and medium agro-industrial enterprises across America (and the world). Greenspan confronted the 1987 crisis with all the gusto of a black magician, and rather than re-connect the economy to physical reality and rebuild the decaying industrial base, he chose instead to normalize “creative financial instruments” in the form of derivatives, which quickly grew from several billion in 1988 to $2 trillion in 1992 to $70 trillion in 1999.

When Bill Clinton repealed Glass-Steagall bank separation of commercial and investment banks as his last act in office in 1999, speculators had un-bounded access to savings and pensions which they used with relish and went to town gambling with other people’s money. This new bubble continued for a few more years until the $700 trillion derivatives time bomb found a new trigger and the subprime mortgage market nearly burned the system down. Just like in 1987, and the collapse of the Y2K bubble in 2001, the Mammon worshipping wizards in the ECB and Fed solved this crisis by creating a new system of “bailout” which continued for another decade.

Today, western economies have been hollowed out of the very life blood that caused value by supporting human life in the first place.

The Ugly Truth of Today’s Crisis

New “sub-prime” bubbles have been created in the Corporate Debt sector which has risen to over $13.8 trillion (up 16% from the year earlier). A quarter of which is considered junk, and another half graded at BB by Moodies (a step above junk). This sum is greater than the 2006 subprime bubble and a default on any of this could trigger a chain reaction collapse.

Household debt, student and auto debt has skyrocketed and since wages have not kept up with inflation even more unpayable debts have been incurred. A default on any of these could trigger a chain reaction collapse.

National debts have also hit record highs as the post 1971 consumer society system of finance predicates the issuance of money upon debt without any obligation to have those debts connected to investments in the real world. A national default on a debt currently from any part of the world could trigger a chain reaction collapse.

Industrial jobs have collapsed consistently since 1971, and low paying service jobs have taken over like a plague. Financial services have risen in tandem with the collapse of highly skilled jobs which have increasingly been outsourced to cheap labor markets abroad and Trans-Atlantic infrastructure has been permitted to fall into complete decay.

The last report from the American Society of Civil Engineers concluded that America desperately needs to spend $4.5 trillion just to bring its decayed infrastructure up to safety levels. Roads, bridges, rail, dams, airports, schools all received near failing grades with the average age of dams clocking in at 56 years, and many water pipes over 100 years old, and transmission/distribution lines are well over 60 years. The factories which once supplied those infrastructure needs are long outsourced, and much of the productive workforce that had that living knowledge to build a nation are retired or dead leaving a generation gap in knowledge in its place filled with millennials who never knew what a productive economy looked like.

American and European farmers have probably been the most devastated in all this with dramatic population losses across the entire farm belt of America and the average age of farmers now 60 years. It was recently reported that 82% of US agricultural family income comes from off farms, as mega cartels have taken over all aspects of farming (from upstream equipment/supplies to downstream packaging/distribution and everything in between).

Why was this permitted to happen? Well, besides the obvious intention to induce “a controlled disintegration of the economy” as Volcker so coldly stated, the idea was always to create the conditions described by the late Maurice Strong (sociopath and Rothschild cut-out extraordinaire) in 1992 when he rhetorically asked:

What if a small group of world leaders were to conclude that the principal risk to the Earth comes from the actions of the rich countries? And if the world is to survive, those rich countries would have to sign an agreement reducing their impact on the environment. Will they do it? The group’s conclusion is ‘no’. The rich countries won’t do it. They won’t change. So, in order to save the planet, the group decides: Isn’t the only hope for the planet that the industrialized civilizations collapse? Isn’t it our responsibility to bring that about?

How do we get back to health?

Like any addict who wakes up one morning at rock bottom with the sudden terror that his death is nigh, the first step is admitting we have a problem. This means simply: acknowledging the true nature of the current economic calamity instead of trying to blame “coronavirus”, immigrants or China’s BRI, or some other scapegoat.

The next step is to begin to act on reality instead of continuing to take heroin (a fine metaphor for the addiction to derivatives speculation).

An obvious first step to this recovery involves restoring Glass-Steagall in order to 1) break up the Too Big to Fail banks and 2) impose a standard of judging “false” value from “legitimate” value which is currently absent from the modern psyche that lost all sense of needs vs wants (ie:, if you think prostitution, gambling and drug dealing should be considered legitimate forms of “value” factored into global GDP, you should not be considered qualified to be an economist or elected official).

Doing this would allow nations to purge of the unpayable fictitious debt and other claims from the system while preserving whatever is tied to the real economy (whatever is directly connected to life). This process is sort of akin to the surgical removal of a cancer, and this would look very similar to what Franklin Roosevelt did in 1933 which I outlined in my recent paper How to Crush a Bankers’ Dictatorship.

At this point nation-states will have re-asserted their true authority over the pirates of private finance controlling the Trans-Atlantic financial system, and an honest discussion between sovereign nation states could occur in an honest fashion.

President Trump and other sane patriots from both parties of America would then have to figure out how to start the long but vital process of forcing credit to regenerate the destroyed productive base of America and Europe with a focus on advanced infrastructure, science and technological progress. This later investment into space science, atomic power, and transportation (high speed and magnetic levitation) would drive new breakthroughs necessary to overcome the current “limits to growth” that Green New Dealing oligarchs believe justify reducing the world population to less than two billion. Where Franklin Roosevelt had to drive this process solo in the 1930s, today’s America luckily has a China-Russia alliance that have created a powerful “New Deal” of win-win cooperation in the form of the evolving Belt and Road Initiative with invitations for western nations to jump on board.

The Multipolar Alliance Induces Rumpelstiltskin’s Self-Destruction

There are several versions of the old German folk tale of Rumpelstiltskin. The story begins with a greedy king who is told by a foolish old miller that a young girl (the miller’s daughter) had the ability to spin hay into gold. When the poor girl is locked into a tower with bales of straw, a loom and orders to transform it all into gold under threat of death, a magical imp appears out of thin air and they reach an agreement: He will use his magic to spin the hay into gold on the condition that the girl gives the imp her first born child. The greedy king is pleased with the wealth that appeared from thin air, and the daughter’s neck is saved. Sadly the day eventually arrives for her to give up a child, and the imp in sadistic glee responds to her pleading tears by giving her three chances to annul the contract. All she has to do is guess his name. To make a long story short, his name is discovered and Rumpelstiltskin literally tears himself to pieces in a fit of mad rage.

I think this story exemplifies the self-cannibalization of the deep state over the past several years quite nicely.

It appeared for quite some time that the oligarchy managing the world’s financial system and military-intelligence community from above was able to do magic. If they wanted a nation overthrown, or a troublesome elected official killed, a mere snap of the fingers was all it took. Gold from straw? They could do that too! Just look at the mass of $1.5 quadrillion dollars of derivatives claims which appeared as though out of thin air in the mere space of 30 years! Seriously, back in 1990, these fictitious assets (forms of bets on insurance on securitized debts) amounted to little more than $2 trillion and 10 years before that, had barely any existence whatsoever. NOW… they amount to over twenty times the world’s GDP! How was this possible when the real economy (agro-industrial/infrastructure capital which supports real life) was permitted to atrophy during that same space of time? Magic!

Such are the powers of today’s Rumpelstiltskin.

There were no shortage of idiot kings in our modern story either. A cleptocracy rose to prominence in the west in a scale unseen in human history. Billionaire speculators, hedge fund managers and other useless nouveau rich devoid of any actual productive skill rose to positions of power and prestige under this new system of globalization and used their wealth and influence to become enforces of the system that gave them their money and status. The Bloombergs of this world were more than happy to unquestioningly accept the idea that they “earned” their billions, and happily became thugs and mini tyrants for the machine. It was all magic… mixed with a good dose of arrogance, of course.

But then one day, the magic stopped working.

The banking system started rupturing and the magic wands had to be used more often. More bailouts, more overnight repo loans for bankrupt speculators (today clocking in at $100 billion/night), more money printing out of thin air and more debt to carry over till next quarter with no thought of paying it off. Soon after the straw stopped turning into gold, the god-like powers of regime change also stopped working. Libya worked fine, of course, when it was magically thrown back into the stone age joining Iraq and Afghanistan… but Ukraine was harder, and Syria followed by Venezuela were harder still. Why did the magic formula stop working?

The answer in short: Russia and China both guessed the name.

Once the name was said aloud, the empire was increasingly exposed for all to see as the bluff masquerading as a God which it always was. Calling the name of the empire was like a spiritual ointment for many who feared the unknown, un-nameable creatures of the dark shadows. Like any shadow confronted with the light, this imp ceased to exert the influence it wished to hold onto the minds and hearts of its victims… and the image of omnipotence it worked so hard to project onto the world turned out to be just that… a projection and nothing more.

President Putin demonstrated how it is possible with one tenth of the expenses of the US military to destroy ISIS in Syria by the simple application of an intention to actually do it. This intention was always absent from the minds of western geopoliticians who actually preferred to have a growing network of terrorists spread across the Middle East and Africa. Terrorists not only destabilized troublesome nation states as a form of asymmetric warfare, but also provided a convenient excuse to bomb governments targeted for regime change.

China followed suit by investing massively into the development sector- just as the west had done for years- but with one very big difference: INTENTION. China animated its investments into Africa, Asia, the Middle East and beyond with the intention to actually create prosperity, infrastructure and economic independence in those countries receiving loans. They didn’t use this with magic, but simply by ensuring their money would be invested into genuine nation building projects disconnected from any usurious conditionalities.

With the important ingredient of intention to actually end terrorism, hunger, disease and poverty infused into global policy-making by Russia and China, the Rumpelstilskins lost more of their power. The empire always relied on the illusion of noble ends but never the substance or means to carry them out. This substance is located entirely in the domain of intention.

In the west, the shadow creature was given a name (deep state), and with that name, an identity, and modus operandi was identified.

With that identification, a resistance began to organically emerge as nations found the courage to take a stand- preferring to work with honest partners like Russia, China and the Belt and Road Initiative rather than cling onto the Titanic of the sinking western system.

Within America, Rumpelstiltskin spasmed in rage and moved in desperation to defend himself when a leader surprisingly came to power extolling friendly relations with Russia and China. This was done first with the sloppy manufacture of Russia-Gate and then the sloppier manufacture of Ukraine-gate… but that also didn’t work. Whether it took the form of left wing socialists or capitalist orange nationalists, the magic once used to easily destroy such troublesome expressions of patriotism in America stopped working as fast as had their bailout powers, or regime change hocus pocus.

When you watch today’s democratic primary debates and laugh at the fanatic sloppiness of Rumpelstiltskin’s left wing champions cannibalize each other (and themselves) in the process, or as you listen to right wing Rumpelstilskins froth in rage at China’s tyrannical Belt and Road Initiative “empire”, keep in mind that the game, as they say, is really up. The name has been called out, the imp is busy tearing himself to pieces and to the surprise of many who had lost all hope just a few years ago, this story may actually have a happy ending after all.

China is Confronting the COVID19 Epidemic with Endless Creation Towards a Shared Future for Mankind

The new coronavirus, 2019-nCoV, also called COVID19, has as of this date killed more than 3,000 people and infected more than 80,000 around the globe, the vast majority of them in China. The virus has spread to at least 33 countries. What western media do not talk about is that with high probability the virus was man-made in one or several bio-warfare laboratories of which the Pentagon and CIA have about 400 around the world (Igor Nikulin, a former member of the U.N. Commission on Biological and Chemical Weapons). But such high-security bio-labs also exist in Canada, the UK, Israel and Japan. Western media also are silent about the fact that the virus is directed specifically at the Chinese race, meaning it targets specifically Chinese DNA.

We may never have solid proof, but most likely the virus was transported by an infected person, or otherwise from wherever it was fabricated to Wuhan, either to the famous Wuhan bio-research lab (research for peaceful purposes, contrary to what the west says), or nearby. But it did not originate in the Wuhan fish market.

Almost all of the deaths or infected people in the 33 countries and territories to which the virus spread are of Chinese origin. The virus appears to be strengthening, as it mutates over time, making its control even more difficult. The US-led west, instigator of the bio-war, presumes that in time and with multiple mutations, the virus may break the “Chinese DNA boundaries” and affect also other DNA types; i.e., western Caucasian people. But the west also expects Chinese scientists and bio-researchers to overcome the epidemic and stop the virus from further mutating, therefore reducing the western infection risk.

Despite early hopes that a vaccine may be found soon until now there has been little progress in this direction. However, Cuba’s antiviral Recombinant Interferon Alpha 2B (IFNrec) was chosen by Chinese medical and bio-researchers to combat the coronavirus. Interestingly, Interferon had been discovered in Cuba 39 years ago, at the very onset of biotechnology in 1981, but is not widely used in the world, even though it could save countless lives and cure countless patients (mainly diabetics), simply because of the US boycott that does not allow marketing of medication made in Cuba.

Nevertheless, the COVID19 infection rate seems to have been gradually declining in the last three weeks. And there is no doubt that China will overcome this epidemic. Yet, the world must wake up to the fact that this is biological warfare of the first degree. Not counting SARS of 2002 / 2003, the precursor to 2019-nCoV, the bio-war against China has been going on for at least the last two years on several levels and has already had a severe economic cost.

In the last two years, since 2018 alone, China was hit by several types of bird flu (H7N4 and H7N9) in 2018 and yet another strain just in January 2020 which was overshadowed by the more serious COVID-2019. There was also an outbreak of the African swine Flu (2018), killing millions of pigs. And there was a massive food crop destruction (2019 – mostly corn and soybeans) by the so-called “armyworms”.

Compensating for all of these devastated food products, China was compelled to import – and most of the imports came from the US. Therefore, these ‘outbreaks’ – all directed towards destroying vital parts of China’s economy, creating instability, food price inflation and a dependence on imports of agricultural products from the US are hardly coincidental. This series of epidemics, culminating with the coronavirus 2019-nCoV, may be just the beginning.

The western media has been playing up the so-called Trump tariff war with China, while hidden from the limelight and in parallel, more serious warfare – bio-warfare – was going on. In fact, little is known in the west about these previous biological attacks by the US-led west, aiming at massively damaging China’s economy and at China’s dependence on imports from the US. In addition to damaging China morally thereby, they, the west, believe (wrongly), that they are weakening the level of resistance. A real war with bombs and guns, maybe nuclear, aiming at total destruction, cannot be ruled out.

Let’s remember the Big Picture, namely, that this is, in whatever way you want to turn it, a bio-war against China, and perhaps the first step of an all-out war against China’s rising economic power, and foremost against China’s solid currency, the yuan, which may soon take over as the world’s chief reserve currency. This would mean the fall of the US-dollar hegemony, the only force that keeps the empire alive and kicking, other than its military strength which is non-sustainable, as it aims only at destruction abroad but leaving behind a rapidly faltering economy at home. Precisely the same pattern brought down the Roman Empire some 2000 years ago.

There are too many “coincidences” to conclude that this strengthened coronavirus – considerably stronger than SARS, the one of the 2002 / 2003 epidemic – ‘escaped’ a Wuhan lab by accident, or as the west would like to present it: by negligence. First, there were the Military Olympics in October in Wuhan (18 – 27 October 2019), where about 200 American soldiers participated; the first cases of 2019-nCoV fever were discovered about two weeks later – two weeks is the average gestation period from infection to outbreak. Second, there was Event 201, on October 18, 2019, at the Johns Hopkins Center for Health Security, in Baltimore, Maryland, sponsored by the Bill and Melinda Gates Foundation, the World Economic Forum (WEF – the corporatocracy representing Big Arms, Big Pharma and Big Money), and the John Hopkins Institute.

The theme was simulating a High-Level Pandemic Exercise, and, yes, the simulation produced 65 million deaths. Just a couple of weeks before the first COVID19 victims were identified. And third – the timing, hitting China right on their most important Holiday, the Lunar New Year, when people are traveling, uniting with family and friends, when there are usually huge festivities with lots of people – an event of celebrating happiness – all cut short by the outbreak that put Wuhan and portions of Hubei Province, and a total of about 50 million Chinese in quarantine; and more – no shopping, no exchange of presents, no celebrations – a huge economic loss.

Circumstantial gut-feeling tells me this is not a series of three coincidences. This is rather a maliciously planned disaster. This is a dark sinister plan carried out by a murderous western elite to attack China’s rapidly growing economy, outpacing that of the United States. It is an attack on the solid Yuan which is also gradually replacing the US dollar as a world reserve currency. When that happens the US-empire is doomed. This is not allowed to happen by those “black men”, who pull the strings behind western politicians.

The build-up to more harm and destruction, possibly a hot war, must start fast and advance even faster. On January 30, 2020, the World Health Organization’s (WHO) Director General (DG) said that the new coronavirus, COVID19, also called 2019-nCoV, was not a pandemic. A day later, on January 31, probably on instruction from Washington, he declares the outbreak a Global Emergency, but added on his own initiative that there were no reasons for countries to ban travel of their citizens to China.

In contrdiction to WHO’s recommendation, Washington immediately issued a travel warning for US citizens not to travel to China. Many other countries followed their master, especially Europeans. Another hit on the Chinese economy. Cruise ships with Chinese on board are not granted docking rights. Merchandise vessels are in many countries not allowed to enter international harbors to unload their goods.

The media propaganda drums proclaim that the virus is spreading fast and will soon engulf the entire world. The culprit is China, where the virus originated. That’s what western propaganda wants you to believe. Nobody mentions that the COVID19 virus is focusing on the Chinese genome and that almost no westerners that have no Chinese ancestry are affected. Well, if the media would talk about it, it would become clear for the entire world that the virus could not have been created or originated in China, as China will not infect and kill her own people, and that the virus was most likely man-made and somehow transported into Wuhan. Could it be that it was brought to Wuhan by one or more of the American participants in the military games?

The death to infection rate is about 3% in China, but has been steadily declining in the past week. The ratio is less than 1% in the 33 countries outside of China, where the virus was detected. Italy and Iran seem to be exceptions. In Italy, as of this date, the official number of infected people has jumped to 400 with 12 confirmed deaths, also a death rate of 3%. Iran with about 140 cases and 20 deaths, a 14% death rate, the highest in the world. Why? Faulty reporting, or do those who died in Iran have Chinese DNA?

In Italy, a country in the midst of the European flu season, most diseased people are elderly, according to the Health Ministry. But how precise are the tests? This is important since most symptoms of COVID19 are very similar to those of the common flu, especially for elderly people vulnerable to respiratory diseases and pneumonia. By comparison, US deaths from in the 2019 / 2020 flu season so far are estimated at about 34,200 (CDC). Figures in Europe are probably proportionately similar. But these figures are silenced by the media.

Why is Italy singled out? Could it be that instructions were coming from Washington, via the EU Administration in Brussels, as is often the case, to “punish” Italy, because Italy was the first official country to sign a number of Belt and Road Treaties with China last summer which is totally against US rule? In reality, Greece was the first country to sign a BRI deal with China, but nobody talked about it (and still doesn’t), because it ought not to be known that China came to Greece’s rescue, after Greece was literally destroyed by EU’s banking kingpins, Germany and France.

And now Italy is building up the propaganda drama, discussing border closing, but not yet deciding, and so are France, Germany and Switzerland – the discussion is a big media hype – but so far to the question – “Shall we ban entry to travelers from Italy?” They decided up to now, to leave borders open, as closing them would be bad for business. Though, that’s what they don’t say.

To add spice to the drama, Italy has also canceled the Venice Carnival and other public events, even closed church service and tourist attractions and monuments.

The point is tremendous fear-mongering, propagating fear from China. People in fear can easily be manipulated. It’s always been the case. Planting fear into a docile and even placid and peaceful population has always been the precursor to a call for war. Fear, in a first round, also helps isolate China to cause as much economic damage as possible (weakening China to the point of ‘least resistance’).

Public consent for the second round, namely a hot war, will then be easy. There is not much time, as the Chinese economy is advancing rapidly and along with it, the Yuan’s supremacy over the dollar. Which, once recognized by the majority of the world, means the dollar hegemony is broken, and through that the US empire is broken. For sure the US would not shy away from killing millions, hundreds of millions, just to preserve their dollar hegemony.

Washington also realizes that the East, China, Russia and the rest of the Shanghai Cooperation Organization (SCO) is no longer dependent on the west, but could carry on with an autonomous “eastern” economy which, in itself, would be an incentive for other countries to join the East in defiance of the US dictate.

The China – Russia – Iran alliance is one of the strongest “eastern axis” – which also provides full energy self-sufficiency to the eastern countries; i.e., the Shanghai Cooperation Organization or SCO. The association of SCO and the Eurasian Economic Union (EEU) comprises today about half of the world’s population and controls about a third of the world’s economic output (GDP).

Nevertheless, China’s economic damage is considerable – work stoppages, limited consumption at home and in many countries a virtual ban on Chinese imports. The stock market has dropped tremendously due to the Coronavirus outbreak and its economic consequences. The worst may not yet be over, even if it doesn’t come to a ‘hot’ war – which we profoundly trust it will not.

To counteract this economic calamity, the People’s Bank of China (PBC – China’s Central Bank) may consider quickly injecting important amounts of money into China’s economy, especially targeting small and medium size enterprises, both public and private, through China’s public banking system and other means of direct economic support to cut short losses caused by the western-imposed epidemics. The immediate and medium-term objectives may be reducing the risk of economic stagnation and un- or under-employment and to achieve food self-sufficiency, as well as to diversify China’s suppliers and supply-chains away from the US and western US-allies. The accent is on food self-sufficiency.

For international trade and transfer payments, China’s Interbank Payment System (CIPS) and the crypto-yuan is expected to gradually increase its acceptance around the world and outrank the western transfer system SWIFT and the US-dollar hegemony which are key instruments the United States uses to impose totally illegal economic sanctions upon countries that dare insist on their sovereignty and refuse to submit to Washington’s pressure. Cases in point are Russia, China, North Korea, Venezuela, Iran, Cuba, Syria, Sudan – and many more.

These US-led western efforts to weaken China’s economy are also meant to send a discouraging message to all those countries that are planning to divest their reserves and international payment methods away from the US dollar. The west will not succeed.

Even with the massive damage caused by the recent coronavirus, China’s economy is steadier and stronger than that of most western countries, especially the US. China’s non-confrontational approach to resolve these social – health – and economic issues, will help China to overcome and isolate her aggressive adversaries. That’s part of the 5000-year old Tao philosophy.

As the US is increasing her aggressive stance against China (and Russia), Washington appears and acts more and more like a dying beast, lashing out around itself, trying to bring down and destroy as much as possible, while steadily digging itself deeper into its own (economic) grave. Sanctions left and right and bio-wars on China – threatening China by surrounding her with some 400 military bases and nuke-equipped warships and planes, will not create more confidence in the US, rather the contrary. Countries and people realize that being aligned and allied with the US of A, is dangerous, can be deadly. So, they are driven away and towards the east, rather than being attracted by the western sinking ship.

Amazingly, western aggressions will falter confronting China’s robust social and economic system, and more so, China’s peaceful plan to connect and build bridges between the world’s people, nations and cultures, through the socio-economic development scheme of the 21st Century spanning the globe – the Belt and Road Initiative (BRI), also called the New Silk Road, a way towards a shared future for mankind.

• First published in New Eastern Outlook

Why the Coming Economic Collapse Will NOT be Caused by Corona Virus

With Monday’s 1000 point stock market plunge the internet has been set ablaze with discussion of a new crash looming on the horizon. The fact that such a chain reaction collapse was only kept at bay due to massive liquidity injections by the Federal Reserve’s overnight repo loans should not be ignored. These injections which began in September 2019, have grown to over $100 billion per night… all that to support the largest financial bubble in human history with global derivatives estimated at $1.2 quadrillion (20 times the global GDP!).

Sadly economic illiteracy is so pervasive among today’s modern economists that the real reasons for this crisis have been entirely misdiagnosed with financial experts from CNN, to Forbes blaming the volatility on the spread of the Corona virus!

Not the Corona Virus: The real cause of the oncoming financial collapse

As refreshing as it is to hear candid criticisms of the system’s failure and even support for the restoration of Glass-Steagall bank separation from presidential candidates like Bernie Sanders, Tulsi Gabbard or even the lame Elizabeth Warren… we find that in each case, those candidates are on record supporting policies cooked up by the very same oligarchs they appear to despise in the form of the Green New Deal. In spite of what many of its progressive proponents would wish, such a global green reform would not only impose Malthusian depopulation upon nation states globally were it accepted, but would establish a the supranational authority of a technocratic managerial elite as enforcers of a “de-carbonization agenda”.

Due to the rampant lack of comprehension of how this crisis was created such that such idiotic proposals as “green new deals” are now seriously being suggested as remedies to our current ills, a bit of history is in order.

Some necessary background

The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.

– Franklin Delano Roosevelt, first Inaugural Address 1933

Knowing that the “money changers” had only been able to create the great bubbles of the 1920s via their access to the deposits of the commercial banks, Franklin Roosevelt made the core of his battle against the abuses of Wall Street center around a 1933 legislation entitled “Glass-Steagall”, named after the two federally elected officials who led the reform with FDR. This was a bill which forced the absolute separation of productive from speculative banking, guaranteeing via the Federal Deposit Insurance Corporation (FDIC) only those commercial banking assets associated with the productive economy, but forcing any speculative losses arising from investment banking to be suffered by the gambler. The striking success of this law inspired other countries around the world to establish similar bank separation. Alongside principles of capital budgeting, public credit, parity pricing and a commitment to scientific and technological development, a dynamic had been created that would express the greatest hope for the world, and the greatest fear for the financial empire occupying the City of London and Wall Street.

The death of John F. Kennedy ushered in a new age of pessimism and cultural irrationalism from which our society has never recovered. The destruction of a long term vision as exemplified by the space program, the St. Lawrence Seaway and the New Deal projects had resulted in a tendency within the population to increasingly look upon present pleasures as the only reality, and future goods as the mystical expression of the sum of present pleasures. In this new philosophical setting, so alien in previous epochs, money was permitted to act as a power unto itself for short term gains instead of serving the investments into the real productive wealth of society. With this new paradigm shift into the “now”, a new economic model was adopted to replace the industrial economic model which had proven itself in the years preceding and following World War II.

The name for this system was “post-industrial monetarism”. This would be a system ushered in by Richard Nixon’s announcement of the destruction of the fixed-exchange rate Bretton Woods system and its replacement by the “floating rate” system of post 1971 fame. During that same fateful year of 1971, another ominous event took place: the formation of the Rothschild Inter-Alpha Group of banks under the umbrella of the Royal Bank of Scotland, which today controls upwards of 70% of the global financial system. The stated intention of this Group would be found in the 1983 speech by Lord Jacob Rothschild: “two broad types of giant institutions, the worldwide financial service company and the international commercial bank with a global trading competence, may converge to form the ultimate, all-powerful, many-headed financial conglomerate.”

This policy demanded the destruction of the sovereign nation-state system and the imposition of a new feudal structure of world governance through the age-old scheme of controlling the money system on the one side, and playing on the vices of credulous fools who, by allowing their nations to be ruled by the belief that hedonistic market forces govern the world, would seal their own children’s doom.

All the while, geopolitical structures foreign to the United States constitutional traditions were imposed by nests of Oxford-trained Rhodes Scholars and Fabians who converted America into a global “dumb giant” enforcing a neo-colonial program under an “Anglo-US Special Relationship”. The Dulles brothers, McGeorge Bundy, Kissinger, and Bush all represent names that advanced this British-directed plan throughout the 20th century.

London’s ‘Big Bang’

The great “liberalization” of world commerce began with a series of waves through the 1970s, and moved into high gear with the interest rate hikes of Federal Reserve Chairman Paul Volcker in 1980-82, the effects of which both annihilated much of the small and medium sized entrepreneurs, opened the speculative gates into the “Savings and Loan” debacle and also helped cartelize mineral, food, and financial institutions into ever greater behemoths. Volcker himself described this process as the “controlled disintegration of the US economy” upon becoming Fed Chairman in 1978. The raising of interest rates to 20-21% not only shut down the life blood of much of the US economic base, but also threw the third world into greater debt slavery, as nations now had to pay usurious interest on US loans.

In 1986, the City of London announced the beginning of a new era of economic irrationalism with Margaret Thatcher’s “Big Bang” deregulation. This wave of liberalization took the world by storm as it swept aside the separation of commercial, deposit and investment banking which had been the post-world war cornerstone in ensuring that the will of private finance would never again hold more sway than the power of sovereign nation-states.

After decades of chipping away at the structure of regulation that FDR’s bold intervention into history had built, the “Big Bang” set a precedent for similar financial de-regulation into the “Universal Banking” model in other parts of the western world.

The Derivative Time Bomb is Set

In September 1987, the 20 year foray into speculation resulted in a 23% collapse of the Dow Jones on October 19, 1987. Within hours of this crash, international emergency meetings had been convened with former JP Morgan tool Alan Greenspan introducing a “solution” which would have the future echoes of hyperinflation and fascism written all over it.

“Creative financial instruments” was the Orwellian name given to the new financial asset popularized by Greenspan, but otherwise known as “derivatives”. New supercomputing technologies were increasingly used in this new venture, not as the support for higher nation building practices, and space exploration programs as their NASA origins intended, but would rather become perverted to accommodate the creation of new complex formulas which could associate values to price differentials on securities and insured debts that could then be “hedged” on those very spot and future markets made possible via the destruction of the Bretton Woods system in 1971. So while an exponentially self-generating monster was created that could end nowhere but in a meltdown, “market confidence” rallied back in force with the new flux of easy money. The physical potential to sustain human life continued to plummet.

NAFTA, the Euro and the End of History

It is no coincidence that within this period, another deadly treaty was passed called the North American Free Trade Agreement (NAFTA). With this Agreement made law, protective programs that had kept North American factories in the U.S and Canada were struck down, allowing for the export of the lifeblood of highly skilled industrial workforce to Mexico where skills were low, technologies lower, and salaries lower still. With a stripping of its productive assets, North America became increasingly reliant on exporting cheap resources and services for its means of existence. Again, the physically productive powers of society would collapse, yet monetary profits in the ephemeral “now” would skyrocket. This was replicated in Europe with the creation of the Maastricht Treaty in 1992 establishing the Euro by 1994 while the “liberalization” process of Perestroika replicated this agenda in the former Soviet Union. While some personalities gave this agenda the name “End of History” and others “the New World Order”, the effect was the same.

Universal Banking, NAFTA, Euro integration and the creation of the derivative economy in a space of just several years would induce a cartelization of finance through newly legalized mergers and acquisitions at a rate never before seen. The multitude of financial institutions that had existed in the early 1980s were absorbed into each other at great speed through the 1990s in true “survival of the fittest” fashion. No matter what level of regulation was attempted under this new structure, the degree of conflict of interest, and private political power was uncontrollable, as evidenced in the United States, by the shutdown of any attempt by Securities and Exchange Commission head Brooksley Born to fight the derivative cancer at its early stages.

By 1999 a politically castrated Bill Clinton found himself signing into law a treaty authored by then Treasury Secretary Larry Summers known as the Gramm-Leach-Bliley Act, which would be the final nail in the coffin for the Glass-Steagall separation of commercial and investment banking in the United States. The new age of unregulated trading and creation of over-the-counter derivatives caused these strange financial instruments to grow from $60 trillion in 2000 to $600 trillion by 2008.

The 2000-2008 Frenzy

With Glass-Steagall now removed, legitimate capital such as pension funds could be used to start a hedge to end all hedges. Billions were now poured into mortgage-backed securities (MBS), a market which had been artificially plunged to record-breaking interest rate lows of 1-2% for over a year by the US Federal Reserve making borrowing easy, and the returns on the investments into the MBSs obscene. The obscenity swelled as the values of the houses skyrocketed far beyond the real values to the tune of one hundred thousand dollar homes selling for 5-6 times that price within the span of several years. As long as no one assumed this growth was ab-normal, and the unpayable nature of the capital underlying the leveraged assets locked up in the now infamous “sub-primes” and other illegitimate debt obligations was ignored, then profits were supposed to just continue infinitely. Anyone who questioned this logic was considered a heretic by the latter-day priesthood.

The stunning “success” of securitizing housing debts immediately induced a wave of sovereign wealth funds to come into prominence applying the same model that had been used in the case of mortgage-backed securities (MBS) and collateralized debt obligations (CDO) to the debts of entire nations. The securitizing of bundled packages of sovereign debts that could then be infinitely leveraged on the de-regulated world markets would no longer be considered an act of national treason, but the key to easy money.

Conclusion

This is the system which died in 2008. Contrary to popular belief, nothing was actually resolved. For all the talk of an “FDR revival” under Obama, speculation wasn’t actually regulated under the Dodd-Frank Act or the Volker Rule of 2010. No productive credit was created to grow the real economy under a national mission as was the case in 1933-1938. Banks were not broken up while derivatives GREW by 40% with the new bubble concentrated in the corporate/household debt sector now collapsing. During this time, nation states continued to be stripped, as austerity was rammed down the throats of nations.

It should be no surprise that in the midst of this despair, a creative alliance was consolidated in defense of the interests of sovereign nation states and humanity at large led by the leadership of Russia and China.

This leadership took the form of the China-led Belt and Road Initiative which has grown to embrace over 130 countries today and looking more and more like an Asian-led version of the New Deal of the 1930s. Indeed, China’s capacity to unleash long term credit for thousands of international long term infrastructure projects was made possible by the fact that it was the only country on the globe which had not given up the principles of bank separation which were destroyed in every other nation. Very few western figures stood up to this self-induced destruction over the decades, but one notable exception here worth mentioning is the figure of the late American economist Lyndon LaRouche (1922-2019) who not only resisted this process for over four decades, but fought alongside the Schiller Institute to promote New Silk Road as early as 1996.

With the 2016 Brexit and election of President Trump, a new wave of nationalist spirit has become a fire which the technocrats have lost their capacity to snuff out. Increasingly, the idea that nation states have a power over the private banking system has become revived and discussion for reforming the now dead Trans-Atlantic system is increasingly shaped not by the calls for a “New World Order” as Sir Kissinger would have liked, but rather for a New Silk Road and a true New Deal. The Eurasian nations are already firmly committed to this new system, and if the west is to qualify morally to take part in this new epoch, then the first step will be a return to a Glass-Steagall.

Why the Coming Economic Collapse Will NOT be Caused by Corona Virus

With Monday’s 1000 point stock market plunge the internet has been set ablaze with discussion of a new crash looming on the horizon. The fact that such a chain reaction collapse was only kept at bay due to massive liquidity injections by the Federal Reserve’s overnight repo loans should not be ignored. These injections which began in September 2019, have grown to over $100 billion per night… all that to support the largest financial bubble in human history with global derivatives estimated at $1.2 quadrillion (20 times the global GDP!).

Sadly economic illiteracy is so pervasive among today’s modern economists that the real reasons for this crisis have been entirely misdiagnosed with financial experts from CNN, to Forbes blaming the volatility on the spread of the Corona virus!

Not the Corona Virus: The real cause of the oncoming financial collapse

As refreshing as it is to hear candid criticisms of the system’s failure and even support for the restoration of Glass-Steagall bank separation from presidential candidates like Bernie Sanders, Tulsi Gabbard or even the lame Elizabeth Warren… we find that in each case, those candidates are on record supporting policies cooked up by the very same oligarchs they appear to despise in the form of the Green New Deal. In spite of what many of its progressive proponents would wish, such a global green reform would not only impose Malthusian depopulation upon nation states globally were it accepted, but would establish a the supranational authority of a technocratic managerial elite as enforcers of a “de-carbonization agenda”.

Due to the rampant lack of comprehension of how this crisis was created such that such idiotic proposals as “green new deals” are now seriously being suggested as remedies to our current ills, a bit of history is in order.

Some necessary background

The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.

– Franklin Delano Roosevelt, first Inaugural Address 1933

Knowing that the “money changers” had only been able to create the great bubbles of the 1920s via their access to the deposits of the commercial banks, Franklin Roosevelt made the core of his battle against the abuses of Wall Street center around a 1933 legislation entitled “Glass-Steagall”, named after the two federally elected officials who led the reform with FDR. This was a bill which forced the absolute separation of productive from speculative banking, guaranteeing via the Federal Deposit Insurance Corporation (FDIC) only those commercial banking assets associated with the productive economy, but forcing any speculative losses arising from investment banking to be suffered by the gambler. The striking success of this law inspired other countries around the world to establish similar bank separation. Alongside principles of capital budgeting, public credit, parity pricing and a commitment to scientific and technological development, a dynamic had been created that would express the greatest hope for the world, and the greatest fear for the financial empire occupying the City of London and Wall Street.

The death of John F. Kennedy ushered in a new age of pessimism and cultural irrationalism from which our society has never recovered. The destruction of a long term vision as exemplified by the space program, the St. Lawrence Seaway and the New Deal projects had resulted in a tendency within the population to increasingly look upon present pleasures as the only reality, and future goods as the mystical expression of the sum of present pleasures. In this new philosophical setting, so alien in previous epochs, money was permitted to act as a power unto itself for short term gains instead of serving the investments into the real productive wealth of society. With this new paradigm shift into the “now”, a new economic model was adopted to replace the industrial economic model which had proven itself in the years preceding and following World War II.

The name for this system was “post-industrial monetarism”. This would be a system ushered in by Richard Nixon’s announcement of the destruction of the fixed-exchange rate Bretton Woods system and its replacement by the “floating rate” system of post 1971 fame. During that same fateful year of 1971, another ominous event took place: the formation of the Rothschild Inter-Alpha Group of banks under the umbrella of the Royal Bank of Scotland, which today controls upwards of 70% of the global financial system. The stated intention of this Group would be found in the 1983 speech by Lord Jacob Rothschild: “two broad types of giant institutions, the worldwide financial service company and the international commercial bank with a global trading competence, may converge to form the ultimate, all-powerful, many-headed financial conglomerate.”

This policy demanded the destruction of the sovereign nation-state system and the imposition of a new feudal structure of world governance through the age-old scheme of controlling the money system on the one side, and playing on the vices of credulous fools who, by allowing their nations to be ruled by the belief that hedonistic market forces govern the world, would seal their own children’s doom.

All the while, geopolitical structures foreign to the United States constitutional traditions were imposed by nests of Oxford-trained Rhodes Scholars and Fabians who converted America into a global “dumb giant” enforcing a neo-colonial program under an “Anglo-US Special Relationship”. The Dulles brothers, McGeorge Bundy, Kissinger, and Bush all represent names that advanced this British-directed plan throughout the 20th century.

London’s ‘Big Bang’

The great “liberalization” of world commerce began with a series of waves through the 1970s, and moved into high gear with the interest rate hikes of Federal Reserve Chairman Paul Volcker in 1980-82, the effects of which both annihilated much of the small and medium sized entrepreneurs, opened the speculative gates into the “Savings and Loan” debacle and also helped cartelize mineral, food, and financial institutions into ever greater behemoths. Volcker himself described this process as the “controlled disintegration of the US economy” upon becoming Fed Chairman in 1978. The raising of interest rates to 20-21% not only shut down the life blood of much of the US economic base, but also threw the third world into greater debt slavery, as nations now had to pay usurious interest on US loans.

In 1986, the City of London announced the beginning of a new era of economic irrationalism with Margaret Thatcher’s “Big Bang” deregulation. This wave of liberalization took the world by storm as it swept aside the separation of commercial, deposit and investment banking which had been the post-world war cornerstone in ensuring that the will of private finance would never again hold more sway than the power of sovereign nation-states.

After decades of chipping away at the structure of regulation that FDR’s bold intervention into history had built, the “Big Bang” set a precedent for similar financial de-regulation into the “Universal Banking” model in other parts of the western world.

The Derivative Time Bomb is Set

In September 1987, the 20 year foray into speculation resulted in a 23% collapse of the Dow Jones on October 19, 1987. Within hours of this crash, international emergency meetings had been convened with former JP Morgan tool Alan Greenspan introducing a “solution” which would have the future echoes of hyperinflation and fascism written all over it.

“Creative financial instruments” was the Orwellian name given to the new financial asset popularized by Greenspan, but otherwise known as “derivatives”. New supercomputing technologies were increasingly used in this new venture, not as the support for higher nation building practices, and space exploration programs as their NASA origins intended, but would rather become perverted to accommodate the creation of new complex formulas which could associate values to price differentials on securities and insured debts that could then be “hedged” on those very spot and future markets made possible via the destruction of the Bretton Woods system in 1971. So while an exponentially self-generating monster was created that could end nowhere but in a meltdown, “market confidence” rallied back in force with the new flux of easy money. The physical potential to sustain human life continued to plummet.

NAFTA, the Euro and the End of History

It is no coincidence that within this period, another deadly treaty was passed called the North American Free Trade Agreement (NAFTA). With this Agreement made law, protective programs that had kept North American factories in the U.S and Canada were struck down, allowing for the export of the lifeblood of highly skilled industrial workforce to Mexico where skills were low, technologies lower, and salaries lower still. With a stripping of its productive assets, North America became increasingly reliant on exporting cheap resources and services for its means of existence. Again, the physically productive powers of society would collapse, yet monetary profits in the ephemeral “now” would skyrocket. This was replicated in Europe with the creation of the Maastricht Treaty in 1992 establishing the Euro by 1994 while the “liberalization” process of Perestroika replicated this agenda in the former Soviet Union. While some personalities gave this agenda the name “End of History” and others “the New World Order”, the effect was the same.

Universal Banking, NAFTA, Euro integration and the creation of the derivative economy in a space of just several years would induce a cartelization of finance through newly legalized mergers and acquisitions at a rate never before seen. The multitude of financial institutions that had existed in the early 1980s were absorbed into each other at great speed through the 1990s in true “survival of the fittest” fashion. No matter what level of regulation was attempted under this new structure, the degree of conflict of interest, and private political power was uncontrollable, as evidenced in the United States, by the shutdown of any attempt by Securities and Exchange Commission head Brooksley Born to fight the derivative cancer at its early stages.

By 1999 a politically castrated Bill Clinton found himself signing into law a treaty authored by then Treasury Secretary Larry Summers known as the Gramm-Leach-Bliley Act, which would be the final nail in the coffin for the Glass-Steagall separation of commercial and investment banking in the United States. The new age of unregulated trading and creation of over-the-counter derivatives caused these strange financial instruments to grow from $60 trillion in 2000 to $600 trillion by 2008.

The 2000-2008 Frenzy

With Glass-Steagall now removed, legitimate capital such as pension funds could be used to start a hedge to end all hedges. Billions were now poured into mortgage-backed securities (MBS), a market which had been artificially plunged to record-breaking interest rate lows of 1-2% for over a year by the US Federal Reserve making borrowing easy, and the returns on the investments into the MBSs obscene. The obscenity swelled as the values of the houses skyrocketed far beyond the real values to the tune of one hundred thousand dollar homes selling for 5-6 times that price within the span of several years. As long as no one assumed this growth was ab-normal, and the unpayable nature of the capital underlying the leveraged assets locked up in the now infamous “sub-primes” and other illegitimate debt obligations was ignored, then profits were supposed to just continue infinitely. Anyone who questioned this logic was considered a heretic by the latter-day priesthood.

The stunning “success” of securitizing housing debts immediately induced a wave of sovereign wealth funds to come into prominence applying the same model that had been used in the case of mortgage-backed securities (MBS) and collateralized debt obligations (CDO) to the debts of entire nations. The securitizing of bundled packages of sovereign debts that could then be infinitely leveraged on the de-regulated world markets would no longer be considered an act of national treason, but the key to easy money.

Conclusion

This is the system which died in 2008. Contrary to popular belief, nothing was actually resolved. For all the talk of an “FDR revival” under Obama, speculation wasn’t actually regulated under the Dodd-Frank Act or the Volker Rule of 2010. No productive credit was created to grow the real economy under a national mission as was the case in 1933-1938. Banks were not broken up while derivatives GREW by 40% with the new bubble concentrated in the corporate/household debt sector now collapsing. During this time, nation states continued to be stripped, as austerity was rammed down the throats of nations.

It should be no surprise that in the midst of this despair, a creative alliance was consolidated in defense of the interests of sovereign nation states and humanity at large led by the leadership of Russia and China.

This leadership took the form of the China-led Belt and Road Initiative which has grown to embrace over 130 countries today and looking more and more like an Asian-led version of the New Deal of the 1930s. Indeed, China’s capacity to unleash long term credit for thousands of international long term infrastructure projects was made possible by the fact that it was the only country on the globe which had not given up the principles of bank separation which were destroyed in every other nation. Very few western figures stood up to this self-induced destruction over the decades, but one notable exception here worth mentioning is the figure of the late American economist Lyndon LaRouche (1922-2019) who not only resisted this process for over four decades, but fought alongside the Schiller Institute to promote New Silk Road as early as 1996.

With the 2016 Brexit and election of President Trump, a new wave of nationalist spirit has become a fire which the technocrats have lost their capacity to snuff out. Increasingly, the idea that nation states have a power over the private banking system has become revived and discussion for reforming the now dead Trans-Atlantic system is increasingly shaped not by the calls for a “New World Order” as Sir Kissinger would have liked, but rather for a New Silk Road and a true New Deal. The Eurasian nations are already firmly committed to this new system, and if the west is to qualify morally to take part in this new epoch, then the first step will be a return to a Glass-Steagall.