by Pepe Escobar
The Trump era starts now – with geopolitics and geoeconomics set for a series of imminent, unpredictable cliffhangers.
I have argued that Trump’s foreign policy guru Henry Kissinger’s strategy to deal with the formidable Eurasia integration trio – Russia, China and Iran – is a remixed Divide and Rule; seduce Russia away from its strategic partnership with China, while keep harassing the weakest link, Iran.
In fact that’s how it’s already playing out – as in the outbursts of selected members of Trump’s cabinet during their US Senate hearings. Factions of US Think Tankland, referring to Nixon’s China policy, which was designed by Kissinger, are also excited with the possibilities of containment regarding at least one of those powers “potentially arrayed against America”.
Kissinger and Dr. Zbig “Grand Chessboard” Brzezinski are the two foremost, self-described Western dalangs – puppet masters – in the geopolitical arena. In opposition to Kissinger, Obama’s foreign policy mentor Brzezinski, true to his Russophobia, proposes a Divide and Rule centered on seducing China.
Yet an influential New York business source, very close to the real, discreet Masters of the Universe, who correctly predicted Trump’s victory weeks before the fact, after examining my argument offered not only a scathing appraisal of those cherished dalangs; he volunteered to detail how the new normal was laid out by the Masters directly to Trump. Let’s call him “X”.
The non-stop China watch
“X” starts by doing something US deep state-connected regulars, who revere their idols, never dare to, at least in public; “It is important not to attribute too much importance to either Kissinger or Brzezinski as they are merely fronts for those who make the decisions and it is their job to cloak the decisions with a patina of intellectuality. Their input means relatively nothing. I use their names on occasion as I cannot use the names of those who actually make the decisions.”
That’s the cue for “X” to detail the new normal; “Trump was elected with the support of the Masters to tilt towards Russia. The Masters have their tools in the media and Congress maintaining a vilification campaign against Russia, and have their puppet Brzezinski also come out against Russia, stating ‘America’s global influence depends on cooperation with China’. The purpose is to threaten Russia to cooperate and place these chips on the negotiating table for Trump. In a traditional good cop-bad cop approach, Donald is portrayed as the good cop wanting good relations with Russia, and Congress, media, Brzezinski are the bad cops. This is to aid Trump in the negotiations with Russia as Putin sees the ‘precarious’ position of his friend and should be willing to make major concessions as the line goes.”
And that brings us to how Taiwan – and Japan – got into the mix;
“Donald shows the Russian tilt by talking to the Taiwanese, demonstrating that the shift is serious. But it was decided to throw Japan into the mix as a predator against US industry, with an attack on Toyota, thoroughly deserved. That moderated the position as the Masters became afraid that the perception of our building up Japan against China would be too much of a provocation.”
So expect China – as “not too much importance” Kissinger prescribed – to be under non-stop scrutiny; “The Masters have decided to reindustrialize the United States and want to take jobs back from China. This is advisable from the Chinese viewpoint; for why should they sell their work to the US for a dollar that has no intrinsic value and get really nothing back for the work. China should have a car in every Chinese worker’s garage and they will become a larger producer of cars than the EU, US and Japan combined, and their own nation will keep their wealth in their own country.”
And why China over Russia? “Russia in this sense being a natural resource country with a gigantic military industrial complex (the latter being the only reason she is secretly respected) is exempt from any tough trade talk as they hardly export anything but natural resources and military equipment. The Masters want jobs back from Mexico and Asia including Japan, Taiwan, etc., and you see this in Trump’s attack on Japan. The main underlying reason is that the US has lost control of the seas and cannot secure its military components during a major war. This is all that matters now and this is the giant story behind the scenes.”
In only a few words “X” details the reversal of an economic cycle; “The Masters made money out of transfer of industry to Asia (Bain Capital specialized in this), and Wall Street made money from the lower interest rates on the recycled dollars from the trade deficits. But now, the issue is strategic; and they will make money on the return of industries scaling down their investments in Asia and returning them to the United States as we rebuild production here.”
“X” remains quite fond of Henry Ford’s business strategy; and that is the cue for him to address the crucial theme: national defense. According to “X”, “Ford doubled the wages he paid and made more money than any other manufacturer. The reason was that a living wage where the mother can have many children on her husband’s wage was psychologically good for productivity in his car plants, and that his workers could then afford his cars. He thus recognized that in a society there must be a just distribution of wealth that his admirer Steve Jobs could not. Henry’s mass productivity was the wonder of the world and that was what won World War Two for the United States. Amazon does not contribute anything to national defense, being merely an internet marketing service based on computer programs, nor Google which merely organizes data better. None of this builds a better missile or submarine except in a marginal way.”
It’s the Pentagon, stupid
So yes; this all has to do with reorganizing the US military. “X” made a point to refer to a CNAS report I quoted in my initial column; “It is very important for what is visible between the lines. And that is we are in deep trouble being technologically behind Russia by generations in weapons, which is a follow-up on the Brzezinski quote that we are no longer a global power.”
This is a thorough, wide-ranging analysis of how Russia has managed to organize the best armed forces in the world. And that does not even take into account the S-500 missile defense system, which is now being rolled out and arguably seals the entirety of Russian airspace. And the next generation – S-600? – will be even more powerful.
“X” does venture into deep state taboo territory, as in how Russia, over the past decade, has managed to leap far ahead of the US, “eclipsing it as the strongest military power”. But the game may be far from over – wishful thinking or otherwise; “We hope Secretary of Defense James Mattis will understand this and that the Deputy Secretary of Defense has advanced technological skills, organizational ability and the foresight to understand that the weapons of World War Three are offensive and defensive missiles, and submarines, and not air power, tanks and aircraft carriers.”
A realist, “X” admits that the warmongering neocon/neoliberalcon status quo – represented by most US deep state factions – will never abandon the default posture of unremitting hostility towards Russia. But he prefers to focus on change; “Let Tillerson reorganize the State Department along Exxon efficiencies. He may be worth something in that. He and Mattis may be gutless but if you tell the truth to the Senate you may not be confirmed. So what they say means nothing. But notice this about Libya. The CIA had a goal of driving China out of Africa and so does AFRICOM. That was one of the secrets to our Libyan intervention.”
Not that it worked; NATO/AFRICOM turned Libya into a wasteland run by militias, and still China was not driven away from the rest of Africa.
“X” also admits, “Syria and Iran are red lines for Russia. So is the eastern Ukraine from the Dnieper.” He is fully aware Moscow will not allow any regime change gambit on Tehran. And he’s also aware that “China’s investments in Iranian oil and gas imply that China also will not permit Washington’s overthrow of the Iranian government.”
The going really gets tough when it comes to NATO; “X” is convinced Russia “will invade Romania and Poland if those missiles are not taken out of Romania and the missile commitment to Poland rescinded. The issue is not the worthless defensive missiles of the United States but the substitutability of offensive nuclear missiles in these silos. Russia will not tolerate this risk. These are not subject to negotiation.”
In contrast to the “perpetual threat” perpetual propaganda by the US War Party, Moscow focuses on actual facts on the ground since the 1990s; the break up of historic Slavic ally Serbia; Warsaw Pact nations and even former USSR republics annexed by NATO, not to mention attempts to also include Georgia and Ukraine; US deployment of color revolutions; the “Assad must go “ fiasco, as in regime change forced on Syria even including the weaponizing of Salafi-jihadis; economic sanctions, an oil price war and raids on the ruble; and non-stop NATO harassment.
“X”, fully aware of the facts, adds, “Russia has always wanted peace. But they are not going to play a game with the Masters of the Universe that has Trump as the good guy and the Congress, CIA, etc. as the bad guy as a negotiating ploy. That is how they see it. They do not regard this circus as real.”
The circus may be just an illusion. Or wayang – Balinese puppet theatre – as I suggested. “X” advances a crisp interpretation of the shadow play ahead from Moscow’s point of view, allowing “several months to see if Putin can work out a detente with Trump that essentially creates an autonomous eastern Ukraine, a peace treaty in Syria with Assad in place, and a withdrawal of NATO forces back to their line of defense under Ronald Reagan.”
Who will prevail; the Masters, or the deep state? Brace for impact.
The shadow play elucidation is excellent. But envisioning what the landscape beyond it might be, and what might be traded for what is a puzzle. RF wants NATO out of its back yard. But what does the US deep state want in return ? Does it expect RF to trade it anything for this after VP has foresworn that ?
You’re confusing two groups which Pepe failed to explain in detail in this particular post.
Masters of the Universe = Wall Street and mega-corporate interests. Trump’s Cabinet.
Deep State = majority of CIA, Syria jihadist trainers, “warmongering neocon/neoliberalcon status quo”, former pro-Clinton hangers-on, now issuing propaganda against Trump.
Pepe’s source X (who he’s used in the past, to good effect) claims that MotU are using Deep State as their bad cop. That’s simply the way the game is being played, that doesn’t mean Deep State is not independent and able to move on its own.
MotU wants continuity of government. They see America at a precipice, and they don’t want their heads getting chopped off. They will do what is necessary to prevent national collapse. They have been pro-Russia for years, Trump’s Cabinet included.
The actual Deep State is layered in deception, with Hillary’s feel-good feminism being the topmost layer, and neoliberalism a middle layer. I see a very dark plan at its core. They may actually desire to thin the world population, as conspiracy theorists have been claiming for years now.
Deep state is also used to mean the second, etc. levels of career government bureaucracy who are there for decades, and have enormous practical power, as they can expedite or impede any policy and functioning, and resist anything which could jeopardize their jobs. Cultural inertia.
Excellent post, JLS. It’s important to distinguish these factions.
I wish to draw one more difference:the MotU are pragmatists. The Deep State is comprised of zealots.
Zealots do not change their plans, since their truth is absolute and their motivations driven by fealty to their insane worldview.
That’s why I think we can expect a JFK “solution”, if not on Jan 20, then within the first 100 days.
You are right. And rereading what I wrote, the parallels to 90s Russia seem ever more evident.
I believe there are some inside the FBI and maybe other agencies who want to save the country, similar to the FSB faction Putin came out of. But there is something really suspicious going on in America’s deep state. This is far from over.
A comment that illuminates quite a lot of the ‘mixed signals’:
The Intelligence community is divided. Some are loyal to the military and some are loyal to the State dept. Those loyal to the State dept are largely pay for play actors that result in deals like the Ukrainian pipeline that lines the pockets of VP Biden’s son. http://www.cnbc.com/2014/05/13/bidens-son-joins-ukraine-gas-companys-board-of-directors.html The deals you read about in “Confessions of an Economic Hitman” by John Perkins are the type held in contempt by the military intelligence community. https://www.amazon.com/Confessions-Economic-Hit-John-Perkins/dp/0452287081 The military intelligence community resents carrying the water for the rich elites and spilling their blood for the profit of the highest bidder. This is what was behind Obama’s purge of generals and replacing them with stooges. Flynn represents the faction of the military that resents social experimentation like this http://fredoneverything.org/a-petticoat-military-comedy-in-uniform/
While not at all “pure” reform, this does represent the boiling pot of frogs getting cooler and we should be glad for that. This is part of the reason Justin Raimondo is optimistic.
Unfortunately, Pepe’s ignoring the current behavior of the Republican controlled congress, nor does he address the likelihood that its members will actually enact the legislation required to coerce corporations to repatriate all those jobs they offshored–much of that behavior is NOT in the interest of those who voted fro Trump. Then there’s his Cabinet nominees, who are just as bad for those who voted for Trump as congress. What changes are made to Imperial policy will be reactions to the new Multipolar World reality forced upon the Outlaw US Empire by nations striving to contain its Outlaw behavior.
As with Obama on his first inauguration, we’ll quickly discover if Trump intends to enforce the Law of the Land or become just another abettor for the crimes previously committed. My money is on him being a dittohead like Obama, with no arrests of those guilty of the many major 21st Century crimes–from the Neocons, Neoliberals and Banksters: none need fear his presidency, just as none had anything to fear from Obama.
Pepe is ignoring a lot more than that. He’s simply writing fairy tales. He should write about things he understands (he once wrote about Russia giving the Kaliningrad region back to Germany, in exchange for something in Yukraine. Which was equally absurd). Quoting ‘X’ doesn’t help much either, the Nazi run West (U$) didn’t win WWII, Russia (the USSR) defeated them (the Nazi run West).
Laika, I get your frustration with a few statements of Mr “X”, but remember, he is american, and his biased view on history where american army saves the day cannot be helped – it is absorbed with mothers milk.
But this does not mean that the stuff he is talking about is untrue. I suspect it is true, and remember that the Masters of the Universe are also human, and also have their biases, paranoia and psychological projections. We will see who will win, but I think the side with a clearer picture of reality has a better chance.
Look, there is this unspeakably monstrous Nazi establishment (since the 17th c.). Their monstrous frauds are finished (e.g. private usurious banks/central banks, WWII/the ‘holocaust’, the assassination of Kennedy, the ‘moon landings’, unspeakable – unthinkable even – PizzaGate-like crap, 9/11, al-Qaeda/ISIS, and so on, and so forth).
If someone cannot see that Trump is not part of this monstrous Roth-child led Nazi establishment (& Pharisaic Talmudism), than they are as far as I’m concerned plain stupid (e.g. mass psychosis), or worse, they are part of it themselves.
Anyway, whether they see it or not, the Nazi establishment is finished at last. It is inevitable.
LOL,
Greed molded the West for generations – it is part of a their DNA.
The “nazi establishment is just the logical end of greed, it’s most prominent stage.
Trump is Obama is McCain is Hillary.
Laika: “If someone cannot see that Trump is not part of this monstrous Roth-child led Nazi establishment”
Do you really believe, that Trump is a loose canon, who somehow won despite “all being against him”? Then I will use your own words: “they are as far as I’m concerned plain stupid”
I believe – together with “X” – that Donald was selected for certain purposes:
“Trump was elected with the support of the Masters to tilt towards Russia”
And yours “the Nazi establishment is finished at last. It is inevitable.” shows very deeply embedded wishful thinking, IMO…
Cheers
Oh you mean the Jewish communist establishment, the Jewish usurious international banks and the Jewish globalists. National socialism was defeated by the Jewish Allies. The only innocent and downtrodden ones here are the German people
No, the Hitler Project was, just like e.g. ISIS, NATO, EU, an AngloZionist Roth-child project entirely. I know that might sound mighty absurd, but it isn’t, it’s just the facts.
Western ‘history’ books, CIA-Wikipedia, whatever (the whole system) tell it exactly the other way around, but that’s simply exactly how these monstrous frauds work (monstrous lies, false flags), they always do (e.g. George Orwell).
It’s one of their biggest taboos, actually. Bigger even than the ‘moon landings’ hoax, the 9/11 false flag, al-Qaeda/ISIS, and so forth.
This is no doubt pretty much the truth about the monstrous fraud Hitler (Trotsky II):
http://www.whale.to/c/inside_the_gestapo.html
Indeed, Hitler Project was a “project”. But it has not finished, as you claimed above. I recommend Dr. Joseph P. Farrell on that topic.
He made couple of interviews with Dark Journalist. Dr. Farrell has some unorthodox opinions on certain topics, but you can at least train your discernment abilities on that:
CERN dangers revealed. Paperclip Nazic and cosmology cartel:
https://www.youtube.com/watch?v=5Gcvnvr-cbg
The rise of the New Reich & Deep State
https://www.youtube.com/watch?v=N4lLVpS7Tq4
9/11 and the Fascist international trap
https://www.youtube.com/watch?v=AspQoIEuYnM
Enjoy!
I didn’t like your three links much, they see – or they pretend to see – the forest for the trees.
This international fascist syndicate they talk about is simply Roth-child (Zionist banksters) led Pharisaic Talmudism, the ones who ran the ‘British’ Empire, and especially since 1913 totally hijacked US politics.
And yes, the Nazis in Germany were (actually still are) just an affiliate of that. That some of them pretend to be very ‘anti-Semitic’ doesn’t mean a thing, the Roth-child mafia actually wants (needs) ‘anti-Semitism’, as long as they can blame someone else for it, and they aren’t exposed as being the (main) ones behind it.
They (your links) talk about the Kennedys, McCarthy, the Reece Committee, and so forth, who clearly knew about this infiltration and were fighting it, whether you call them Roth-child’s Nazis or Roth-child’s Commies.
Norman Dodd On Tax Exempt Foundations is a far better, and first-hand account about these monstrously evil fascists (Roth-child mafia) running (destroying) the US from behind the scenes:
https://youtu.be/YUYCBfmIcHM
I get your point & agree with your presumptions. Being a “victim” is a successful tactic of the Synagogue of Satan, as Christ called them.
Nazi/commie is a false dialectic of the same coin.
Long time ago I saw Norman Dodd’s interview, but will refresh my memories by watching it again.
Thanks for the link.
& Laika have you ever wondered who organised and exuted the “russian revolution”?
You might remember who fought this barbarian communisme too?
“nor does he address the likelihood that its members will actually enact the legislation required to coerce corporations to repatriate all those jobs they offshored”
Yes, he does: “But now, the issue is strategic; and they will make money on the return of industries scaling down their investments in Asia and returning them to the United States as we rebuild production here.”
State subsidies and other $$ stimuli will do miracles. Greedy guys do not care, how & where they profit. As far as they PROFIT…
And Amazon, Google, Facebook etc. are just a new digital oligarchy. The old plutocrats despise them and just use them for their own purposes.
Time is not with me to understand these Masters – where those folk might be at is obvious….Just an warning to every leader or questioner of consequence who threatens this neo machine, take extreme care with everything you do if you like living a long life….or get with the program
Interesting assessment of what Trump is up to.
I worry that Russia will end up conned again. Just like Yeltsin
There are two stealth masters, twins, spoken of in passing, still a side show in the circus, and then passed as more interesting acts capture attention. Yet, these master continue to grow, and will for some time, to be increasingly the determinants of the coming world. They are in the areas of production and warfare — and thus economics — and go by one name: robotics, the child of the information age, barely coming of age now.
Does it matter if the manufacturing robot is in China or the US? Perhaps by whether the weapons are produced by the robot here or there or somewhere else, but the economics will demand distribution of products and transfer of technology world wide.
(
http://www.ibtimes.co.uk/military-scale-islamic-state-weapon-manufacturing-east-mosul-revealed-1596477
Industrial scale of Isis weapons manufacturing in east Mosul revealed
Researchers found more than 5,500 items ranging from mortar rounds to rockets and explosives.
)
Just the beginning. 3-d printing — already houses, human organs, weapons :
https://www.youtube.com/watch?v=FSu19nz7NlE
17 Incredible 3D Printed Objects
Then add other materials and nanotechnology.
Want a precision missile — just download the scans and print it out — coming soon to a toy store near you.
One cannot print explosives and heat treated alloys.
This excellent article is actually a blind ignoring (or perhaps more accurately obfuscating) the real international issue which will affect everyone in the West: demonetisation.
India is currently undergoing demonetisation where most of its everyday currency has been arbitrarily declared invalid by Modi.
India is a cash society where hundreds of millions of people live on the edge of poverty and starvation. The Masters of the Universe demand that the world adopts a cashless society using only electronic payment methods.
Less than half of India’s population has access to banking on a personal level and for many that do the banks now regularly run out of legal tender on a daily basis.
If this goes on by the end of 2017 half of India’s population could be dead and those that remain will not be able to deal with the rotting corpses and collapsing infrastructure that once supported the economy.
Whether Russia does this or that, whether Mad Dog Mathis and all the other rich non entities that make up Trump’s ridiculous array of advisers pressure Iran or Israel or not, whether America is reindustrialised or not is just one great big irrelevant side show compared to the Indian genocide under way in the sub continent at the behest of the Satanic banking cabal led by the BIS and its various evil bankers.
While this is an excellent piece of analysis of the Trump non event, it completely ignores the elephant in the room: mass genocide via demonetisation of the western world by the most evil regime ever known: international bankers that you euphemistically refer to as Masters of the Universe.
India’s ‘demonetisation’ was a master-planned by USAID.
http://norberthaering.de/en/home/27-german/news/745-washington-s-role-in-india)#weiterlesen
https://www.newsdeeply.com/syria/articles/2017/01/17/how-a-u-n-health-agency-became-an-apologist-for-assad-atrocities
…you’ll find the enclosed link fully supports, tho not mentioning USAID / nor mentioning the US State Dept (universal enemy) in particular, however, the problems of the world begin and end in the US State Dept. and anything that happens outside of Exceptionist US of A is State Dept property.
Foreign Policy dictates Domestic Policy. Unless and until we demilitarize the War Culture nothing changes.
If you google in that link the sponsors/mouth piece “Physicians for Human Rights” PHR gaaag you will find on the board of directors little Israel…who would soooo want to see Greater Israhell? anyways, the tripe you see written in this link is US State Dept and outside of Israhell there is no ‘Deep State’ or for sure there doesn’t need to be with players who rule and run the US State Dept. Kissinger and Brez pukes or should i say useless eaters///
“This excellent article is actually a blind ignoring (or perhaps more accurately obfuscating)”
Well, each piece has its own topic. And they are all intertwined.
If you go couple of articles back, you will find exactly the topic, that is currently filling up your horizon…
The owners of the msm and the elite of both political parties do not appear to be on the same page with Trump and the “Masters of the Universe” whom describes. The rift between Trump and the political class does not look like pure kabuki theatre to me.
The Eastern migration of NATO has to do with Makinder’s World Island and the crucial goal of preventing Germany from a reapproachment with Russia.
Not a very convincing article by Pepe and X, who both – like the rest of the World – have no clue how the Trump presidency will play out. Thank you, anyway, Pepe.
True, nobody, even Trump, does not know how this presidency wil play out,but it’s fun to speculate.
Alas, as was said to me a few years ago, “Your country is run by gangsters”.
One can see from their scheming that they are very cunning, which has been successful for several centuries. But it looks like their deceptions are coming back to haunt them. They sought to enrich themselves by stealth, or force. They think they can rebuild their military, but they have two big strikes against them.
First, the procurement system itself is based on profit, and assumes they will only fight against much weaker adversaries, so the quality is inferior and plagued with mistakes and cost overruns.
Second, and way more important. They did not understand that their well being is part of others’ well being. When they hollowed out the education system, consciously dumbing down their students, they failed to invest in their own country’s future, the youth. So US students are inferior to Chinese, Russian and other countries’ students. So the quality of the work, in this case weapons, will be two generations behind other countries. Plus, by poisoning their own population with junk food, their work force and soldiers will be junk, too.
They think that Trump can bring back America through fracking and coal. But other countries will invest in far safer, cleaner renewables. while the US destroys its aquifers and its farmland.
Two sets of gangsters, intertwined, sometimes working together against the world, and sometimes at each other’s throats. Their minds and hearts are selfish and shallow, unlike Russians and Chinese, who have learned from their mistakes and are much wiser and mature.
Wow what great comments.
Thoughtful and fairly respectful of different opinions.
This is the only way for we the outsiders to get a sense of what might be happening.
My two cents. Trump is an outsider who wants to stop America’s terminal decline. An impossible job.
But with some luck maybe he can initiate policy that will enable more Americains to restore some dignity to their lives while reducing the threat of Armd conflict with Russia.
It seems increasingly possible that the elite pedo rings will get busted and children saved. This will be a shock to the mainstream fed masses.
Why? Well watch Ben Swann on CBS:
http://russia-insider.com/en/politics/pizzagate-not-going-away-cbs-airs-great-overview-asking-important-questions-video/ri18606
Calling on the cops and the FBI to act, on the eve of Trump’s inauguration- makes one wonder what’s going on behind the scenes? Remember LtGen Michael Flynn tweeted about protecting children in the furore over the Podesta emails on Spirit Cooking and non-contextual emails re pizza.
This sounds pretty much SPOT ON. And I am sure Kremlin understands the ploy.
A nice and plausible analysis of how things might play out. However, I see one important item missing and that is Trust.
The American wanna be Masters of the Universe have ZERO credibility. The Russians, the Chinese and the Iranians know one cannot trust America. America’s history of broken promises is endless, going back to broken treaties with the native population in her genocidal colonial wars.
More recently America broke the promise not to expand NATO east beyond Germany. Saddam Hussein, Muammar Gaddafi, Bashar al Assad all thought they were America’s friends because they were cooperating with the Empire on important issues.
To trust Americans on anything can turn out to be a deadly gamble. So, I don’t think Putin will fall for the idea (trap) of leaving the current alliance with China. Putin knows that military and economic cooperation with China is a lot more solid than anything the Empire can offer.
There are some shenanigans already going on in Belarus. There appears to be some complication over supply of oil, with Russia reportedly reducing supplies from 4.5 million to 4 million tons. Lukashenko is muttering about looking for alternate sources. Recently the Belarus government has allowed visa-free entry for people from the US, EU and some other countries (France? Germany?). This applies to people arriving at Minsk airport and only for short stays. The quid pro quo is that Belarus appears to have been paid to open an unknown number of refugee camps somewhere in the country. The whole thing might be benign but it strikes me as a fine way to start to destabilize Belarus and lead takfiris right up to Russia’s borders.
Pepe: “dollar with no intrinsic value…” LOL Pepe, please send me all your “intrinsically” worthless dollars. I will make good use of them.
Almost every single developed country on earth uses fiat money–money the monopoly issuer of which is the sovereign country itself. Exceptions are the European users of the Euro, who foolishly surrendered their sovereignty, as well as those countries which peg their currencies to the dollar. All fiat currencies float and are not convertble to specie.
Fifteen Fatal Fallacies of Financial Fundamentalism
http://www.columbia.edu/dlc/wp/econ/vickrey.html
Having no intrinsic value does not mean having no value. Fiat has value because a government says so, but that is not intrinsic: if you have dollars on Mars you can’t eat them, like you could peanuts. If you had steel you could make something useful from it.
As for gold, it does have some intrinsic value, but much less than the value people (and thus governments) assign to it. If you are an anteater peanuts have no value to you because you can’t eat them. Real value is relative to either someone’s need or someone’s ideas or desires.
Pepe’s point is that the dollar is abstract and not real, and can be demonitized or inflated, and could become worthless if China become the economic equivalent of Mars, or if other countries or businesses stop accepting dollars in trade, or give less for them: if a supplier insists on trade using currency besides dollars, or tangible commodities, then China is stuck with dollars it can’t use, excpet perhaps to buy US-produced stuff which it may not want or is overpriced.
Similar with other countries, if the dollar loses it’s status as reserve currency (which is one of things which would be expected to at least some extent in a multipolar world, as the petrodollar is weakened).
The issue is not about whether to use fiat money, which is sensible, but who stands behind it.
You have raised an excellent and crucial point, blue. The U.S. dollar has had no intrinsic value since August 17, 1971, when Richard Nixon closed the gold window, thus refusing to redeem U.S. dollars for gold as had been agreed upon at the Bretton Woods Conference in 1944.The system created there was fatally flawed by its dependence on redeeming currencies used in interenational trade for gold. It was only a matter of time before this would catch up with the U.S., which tended to run trade deficits. The final nail in the coffin came in 1973 when Japan, the EEC, and the U.S. decided to let their currencies float after the fixed exchange rates created at Bretton Woods collapsed. We have lived in a floating-currencies world since then, and the economic growth and stability of the postwar world have ended in the West. The paper economy led by arbitrage, then began its transcendence over the real economy.
To back up the value of the U.S. dollar, Kissinger made an agreement with Saudi Arabia and the Gulf monarchies that we would protect them if they would accept only the U.S. dollar in payment for oil. Thus was born the petrodollar. Instead of being redeemable for gold, the dollar was now redeemable for petroleum, an essential commodity in today’s world. This, by the way, helps explain why the U.S. has been dragging its feet for decades in adopting and developing alternative energy sources.
This exclusive use of U.S. dollars to purchase petroleum forced the U.S. to export its economy. Factories began leaving the country in droves, and China was chosen as a favorite place to locate because of our desire to widen the Sino-Soviet split.
The problem with cozying up to China was that their own currency, the yuan, has become very strong as a result. China has also been buying gold in massive amounts to use to back up the yuan in international trade. China had been clamoring for years for the yuan to be granted reserve currency status by the IMF, and this finally happened last October. Only four other currencies have this status: the U.S. dollar, the British pound, the yen, and the euro. Now, Russia, Iran, Venezuela, Angola, and Sudan accept the yuan in payment for their oil. This is a direct challenge to the petrodollar. The gold-backed yuan is also the backbone of the BRICS agreement, which is an attempt to free poorer countries from financial domination by the West. (This, by the way, helps explain U.S. backing for the recent soft coup in Brazil and was also the reason why France wanted to destroy Gaddafi’s gold-backed dinar by destroying Libya and having him murdered. The gold that Gaddafi had accumulated over the years for the Libyan people and the people of those African countries currently enslaved by the CFC franc has reportedly vanished, in case anyone’s interested. Of course, this would EMPHATICALLY NOT include the mainstream media.) Were the Chinese challenge to succeed, the U.S. dollar could drastically lose value, in which case the famous American standard of living would end. This could explain Trump’s anti-China rhetoric. It might also explain his pledge to repatriate American industry.
What is really needed is a new Bretton Woods Conference, which some have been requesting for years, most famously Ralph Nader and Lyndon LaRouche. At the original conference, John Maynard Keynes proposed the use of a special currency to be used for international trade called the bancor. This would be created by an international agency and used to settle international trade imbalances instead of gold, a rare and therefore deflationary commodity. The American bankers, drunk with power from America’s impending victories in both theaters of the war, disliked this plan and instead proposed using the U.S. dollar as an international reserve currency backed by gold. This made DeGaulle and especially Stalin uncomfortable, and the U.S.S.R. thus refused to sign on to the treaty.
If we could do it again and do it right, we could adopt Keynes’s bancor. The effect of the bancor would be that it would make economic hegemony more difficult to impose. Britain managed to impose this hegemony in the 19th Century at the height of its Empire by influencing many countries, including the U.S., to adopt the gold standard while it dominated the market in monetary gold. (The United States Constitution states that the nation’s currency must be silver, which is far more plentiful and, therefore, much less deflationary.) Creating a truly international reserve currency would free many poorer countries from economic exploitation by and restrict the influence of the great powers. Zhou Xiaochuan, governor of the People’s Bank of China, has recently called for adopting the bancorlike special drawing rights, a creation of the IMF, as the international reserve currency. Such a currency would also relieve the effects of Triffin’s Dilemma, where national and international monetary policies conflict. This could have the effect of equalizing the distribution of wealth within societies. Of course, I could only imagine the U.S. agreeing to this if the collapse of the U.S. dollar as a reserve currency were imminent.
Didn’t Dominique Strauss-Kahn make this suggestion ? And we know where that landed him!
Right, Shakira. See what I mean?
Just listened to President Trump’s inauguration speech (yes, President Trump, I show respect to the office of President of the US)
In my opinion it was an excellent speech for America, a call to arms.
I was amused at the faces of the past Presidents ….. shit was being poured on them from a great height, and they had to smile and clap.
Middle and working America, like middle and working Australia, like ‘middle and working’ world, has had the heart pulled out of it. We need a beacon of hope.
Presidents Trump showed that beacon in his speech.
Can he deliver?
Who knows???
All the past President’s had the look of, “it ain’t as easy as you think”
Then, again, they were all politicians to their core …. so, indeed, who knows???
I could not help but think that his approach was very much in the tradition of the ‘westerns’ I used to watch on TV ……. very much, “WIN – LOSE”
Whereas China, in my opinion, takes the approach of WIN-win
China WINS big, but also the other countries win. Not quite, win-win, but closer than WIN-LOSE
What is best for America? What is best for the world? Who knows?? Certainly not economists who should all be jailed for crimes against the middle and working class.
The obscenity of 8 people having half the world’s wealth has exposed the deep flaw in the current model of economics. Can President Trump put that wealth back in the hands of the middle and working class …. who knows???
But if he is true to his speech, he will give it a bloody good shot.
I saw almost exactly what you saw. I feel that the CIANN media will be pulling this in the opposite direction. But seeing it in its entirety does not allow and radically different interpretation.
One thing come from his speech whether he does anything or: here we saw a US president saying some things which were swept under the rug for years, articulating what many people thought, if they dared, but if which said would condemn them to being castigated as conspiracy nuts or unpatriotic. Trump has own list for saying people are not patriots, but it’s not the same list, and that’s important — he open the political space for discussion in that regard (although maybe he will restricting other areas of the space).
I suppose a summary of what I hope for with President Trump, in relation to returning wealth and political power back to the average person is:
If President Trump does not succeed, then I hope he is the catalyst for change ….
“Nothing is more powerful than an idea whose time has come.” Victor Hugo
Brezinski self-described himself as a ‘dalang’? Really?
I need a source or I’m going to be capitalist my entire life. Thanks
Speculations. Give Pepe a break. The guy has to make a living somehow.
None of this will happen as, no matter who was elected President, the U.S. is headed for economic collapse. The “masters” want WW3 between U.S. and Russia to take out 1/3 of mankind. We are useless eaters to them. Transhumanists all, they expect to rule the universe but they will fall like a rock.
The ‘masters’ are losing already. There will be no WWIII. I started to have hope again, since all the new popular movements started to appear everywhere: with the Braxit, with Trump, with Le pen, in Greece, in Holland, everywhere… The time of big changes has arrived.
The ‘deep state’ whatever exists in the US State Dept. It does not need to exist anywhere else. Sure there’s the Bildergeries ‘n the CFR fux but none have the two things that make the “deep state” a ho hum. One they don’t make policy/ 2 nor do they have that power. Yes, we have 3 Branches of gubmint: Wall St, K-Street and the Statagon… no one else is needed.
Sure there’s a ‘X’ factor but ho hum.
There is No Deep State that has Power and Control other than those Rogue Lunatics in Tel Aviv/AIPAC et al (JWO) but that’s not enuff to drive policy; (save the Rogue Neo-libs ‘n Neo-cons that inhabit/is rife with this crown of world power).
What happens is a crap shoot on a large scale. The chances of a NuKuler War are diminishing imo. The Russian have a far greater advantage in several factors ~ moral, $ to make war armaments; and incalculable tech advantage of those weapons.
Viva Russia, Viva Vladimir Putin
Russia must continue to resist. RF represents all of us, the ‘deplorables’ of the world.
Regardless of who the puppet is in the White House, the American Empire seeks unipolar global tyranny.
That is America’s divine Manifest Destiny: to subjugate the world under the guise of freedom.
As detailed by Zig. Brzezinki in his book The Grand Chessboard, America particularly seeks to maintain dominance over Eurasia and impose a Divide and Rule agenda over it.
That said, the entire Good cop-Bad Cop game that America is playing is a typically simpled-minded scam. Do the Americans really think they are going to outplay Russia and the judomaster Putin?
America plays good cop-bad cop, while Russia plays chess.
The self-styled Masters of the Universe think of themselvse as “playas”, but they will get their asses played.
It is disturbing to think that the Trump victory is not a victory over the neocon establishment but instead part of the plan all along.
it’s also disturbing to think that 911 was an insider job.yet it’s true.
Trump = Obama = McCain = Hillary.
No. Trump is not the same as Obama ou McCain or Killary. It is amazing to read this in The Saker. You do not have any argument, just offensive spit….
I think that you are confusing the Deep State (neocon idealists = useful idiots) who will suffer under Trump , with the Masters of the Universe (pragmatic uber-rich elites = Pharaohs) who support Trump and will encourage raprochement with Russia for purely material reasons.
Russia is a very rich country , ripe for exploitation.
Trump is in the plans of the MotU ; he was not in the plans of the Deep State.
The neocons will take some severe hits from Trump; the MotU will be untouched, as always.
Zionist/US wants to control the worlds ‘resources’ – It’s as simple as that.
The Zionist/US has NO interest in conquering any country !!
Not only would it cost money – it would also be culturally impossible !!
Hints of right track, but basically wrong. US military are weak, carriers that are a complete burden against Russia, China and Iran.
Some jobs will return, but robots will do most of those jobs. How many people drive, crew and fly for a living? Those jobs are gone. $1 trillion on infrastructure will produce jobs.
Thing is, Russia and China know how the tired US gambits work, there’s nothing new here.
The US is making peace with Russia because they don’t seek expansion and as pointed out, they have a cracking military with fantastic defense systems. I don’t even rate US chances against China. US carriers must stay at least 1400km away from Chinese missiles and this puts carriers aircraft out of range. Sure, the US has plenty of bases inside that 1400km range, so how will the US resupply these bases in a full blown war? Over-stretch springs to mind.
The US and Germany are technically at war. The Germans want their gold back and the US has ZERO gold. Trump mentioned 35% tariff on BMW cars manufactured in Mexico and openly attacked Merkel…of course, US want the EU to collapse, this was one of the main objectives from the DESIGNED financial collapse in 07/08.
Trump’s overtures to Russia will bring German demands to drop illegal sanctions on Russia.
Then there’s Brexit, poor Brits soon to be eating cancerous US foods as part of US/UK trade deal and the very idea of such a deal will have EU leaders playing very tough with the UK…they don’t want to give the US a back door after TTIP was rejected out of hand by the EU.
It’s one thing to have 700/800 US bases around the world. In a war situation, the locals will unleash their pent up hate towards US military abuses. So one wonders how long the US could fight for.
The main reason for US bullying China has little to do with it’s island building in the South China Sea and everything to do with the GOLD BACK YUAN which is none transferable with the WORTHLESS US dollar.
The staggering failures of the Obama administration has created new and very negative trade links between Russia, China, India, Iran and many others who won’t be using the US dollar to do their business.
I suspect the US will use underhand methods to maintain it’s fragile grip on power. These include DNA specific viral warfare. SARS was DNA specific and so was H5N1. Just think, Trump wouldn’t even know if such weapons were unleashed on the world, but the penny might drop as things develop.
During WW2, deep in his London bunker and well oiled with alcohol, Churchill said: “I believe all of us wartime leaders (inc Hitler) are puppets controlled by hidden hands.” This as heard by a British military officer in the room.
“I suspect the US will use underhand methods to maintain it’s fragile grip on power.”
Why not an upperhand method, and start another war? It will increase spending and keep the people and president busy. Iran is the first choice, it is the weakest link and the saudie regime will pay for it. Russia will not defend iran against a jewish attack and china is incapable.
The US or NATO have not threated Russia for territorial expansion or resources, imo. It is about integration of Russia in their World Order. They did not succeed. So, a new time has come.
What about the Israeli/Zionist agenda in all of this ?
They are part of the US – intrinsic part.
I find ‘X’ just a little too much like Jim Willie’s ‘The Voice’ or David Icke’s Lizards. I’ll always read Escobar, Willie and Icke, but really, in the end, they leave us with a world where we’ve got a Lucifer/Devil/Manipulator that is cleverer and more all-seeing than God himself–or even Sauron :). We might as well surrender now since obviously none of us–alone or collectively–can change the course of history.
EVERY change down to the wording on my frozen pizza cooking instructions has been cleverly arranged by the ones behind the ones behind the ones. Or as Rudolf Steiner described them, the X’s and the O’s. I certainly believe in these layers of control and certainly believe that Soros, Kissinger, Brzezinski et al are just the visible representatives. I also believe it is a spiritual battle as Steiner so thoroughly describes in his works.
I am disturbed by Kissinger’s visits to Putin, but is Putin a ‘Rothschild Zionist’ as Icke claims?
Dare I mention what Alex Jones continually mentions: China is a dictatorship. Mao and the communist leaders have killed more than 80-100,000,000 of their own citizens. Anything Stalin–or even Hitler–did pales in comparison. Why does Escobar always praise China’s silk-road initiative? Sure, it makes sense on the surface–yet it is being led and directed by a non-elected dictator. He’s now the champ of the Davos crowd.
As Paul Craig Roberts says, we don’t want to pick a fight with a nuclear power–China (or Russia). But still, aren’t we allowed to occasionally criticize China? They are protectionist for their own industries. They control and censor their internet in ways that Merkel can only dream of. Aren’t we allowed to be a little suspicious of motives? I don’t think Russia should stop cooperating with China but shouldn’t Russia be a little cautious? A country with 9 times the GDP of Russia (whose GDP is less than Canada’s or Italy’s) and nearly 10 times the population. A country that doesn’t have to worry about the next election or NGO manipulation?
I just feel like the arguments of clever manipulators has gone a little too far in giving credit to ‘the dark side’. Is it perhaps possible that new leaders and new directions pop up in the oddest places (Trump)? Sure, absolutely, TPTB are powerful, mean and still in control. Sure, there is a deep state. But let’s give humanity a fighting chance–at least in our hearts, our thoughts and our dreams for the future. Can we not also believe that in this spiritual battle there are great spiritual and human forces and impulses for good that are fighting for the liberation and salvation of humanity?
A hundred years ago Steiner laid great emphasis on this era being a great moment for the spiritual forces of Germany and central Europe. Oops, that sort of went sideways and needs to be retrieved. He laid emphasis that the next spiritual epoch will be led by the Russians and Slavs. Of course, playing out over several thousand years.
Let’s see a little hope for the positive in the changes now taking place.
Rudolf Steiner?
The same who was knighted by the British Monarchy and apparently ‘influenced’ by Rosicrusianism?
In my lap I have a copy of Philosophy of Freedom. This is the philosophy of mo’ better slavery, according to the best laid plans of the Rothschild aristocracy. Please get a grip.
Thanks. I understand the criticism. Then again you may not have read much Steiner so that’s okay–there’s just too much material there to pull out information by browsing.
If Steiner was actually knighted by the British I’d love to see the source. I would give it honest thought.
But seriously, in his two volumes of lectures from 1917 “Karma of Untruthfulness” he lays out the history of secret societies trying from mid-19th century to start World War I, lays out the hundreds of assassinations that were done to make it reality, speaks about English becoming THE world language and tells his audience ‘you can believe all you want that it won’t happen, but it will.’ He explains how English is bound to what will be an integrated world-wide economic order based on it and extending out from the English-speaking homelands. Maybe his ability to see this is taken as him being part of the Rothschild aristocracy. (you do know that he is always accused of being an anti-semite)
As always, he takes it all with equanimity because it is an inevitable part of human development–not that he believes it is desirable: people need to develop themselves spiritually. There is nothing in his works which does not mesh with the themes and ideas laid out by The Saker regarding Russian history and culture. Also, the lectures were in 1917 and he announces that way worse is to come in the future.
“(you do know that he is always accused of being an anti-semite)”
Surely it is a badge of courage to be accused of such things.
If you are not, you may not be trying hard enough.
Steiner was never knighted by the British Monarchy.
Well while a copy of Rudolf Steiner’s Philosophy of Freedom may be on your lap, does not mean that you have read it, which with your comment clearly demonstrates with this claptrap. It might be good to actually work with the book, to think through it, rather than to use it as a hanky to clean up a mess of your opinions.
One must remember that Steiner was attacked by a number of very powerful forces and misunderstood on many sides. His lecture series, titled the Karma of Untruthfulness goes directly into a discussion of those forces behind the catastrophe of World War I. Important for the same battle continues, and against the various forms of slavery that besieged humanity, its dignity,
First and foremost, Trump had better realize that his rank & file supporters (he said we were in charge now) are sick to death of war and war-mongering. What we want is a durable peace with Russia based on mutual respect and interest. We remind Trump, while his cabinet choices may think they owe us nothing, the new President does. No war period! The same goes for China. It’s not like China is building fortified islands in the Gulf of Mexico or Lake Michigan. If, for crying out loud, Vietnam and the Philippines can work out an arrangement with China, the US can. With the Trump election, we are no longer, the world police. Taiwan can solve its own problems. That’s what we voted for. No global rule, no globalism. No US Imperium. Let’s concentrate on this American Republic and get the government’s rogue intelligence agencies (the perennial saboteurs of peace) reined in.
I agree. I new era has started – no more imperialism. It is now us against the transnational elite. We will win big.
Russia “will invade Romania and Poland if those missiles are not taken out of Romania and the missile commitment to Poland rescinded. The issue is not the worthless defensive missiles of the United States but the substitutability of offensive nuclear missiles in these silos. Russia will not tolerate this risk. These are not subject to negotiation.” According to to Mr. “X.”
Putin indeed has already voiced his concern on this threat to his country. But Poland and Romania are NATO members, and all members are supposed to see an attack on one member as an attack on all members, which they are by treaty obliged to defend militarily when so attacked… plus those missiles are managed by US troops.
It’ll be interesting to see how this is going to work out. Putin sure does not start a WWIII, but neither does he want missiles that can carry nuclear heads right at the border of Russia that can hit targets inside his country in 5 minutes after being launched…
Putin always has the little cross that belonged to his mother with him, he has said. She took him to a church and had him baptized without telling his father, as the latter was a member of the communist party. That little cross survived a fire, and Putin considers that a miracle.
He can be seen and heard telling that story in front of the church he was baptized in during the Soviet era when you copy/paste this in your YouTube search bar:
“Vladimir Putin’s Christian Faith – in his own words”
It wouldn’t surprise me if he prayed for his enemies… which makes him a receiver of divine inspirations. Including on how to adequately respond to potential threats to his fellow citizens.
And of course Judo has taught him how to utilize the attack movements of his opponents to their fall and his advantage.
Excellent analysis as always. Your articles remind me of something from my youth.
“Pepe the willing, is lead by the unknowing, he is doing the impossible, for the ungrateful, with so little and for so long, he is now capable of doing anything with nothing.”
Whether Mr. “X” is a literary device or a real person, this essay rings true because what Mr. “X” says is right.
Since WW2, America’s power stood on 4 legs. Its military was without equal, its industrial output and capacity were without equal, and, due largely to “the full faith and credit” generated by former two, its dollar could dominate world trading. Those 3, together with the heady brew of academic/political/economic/social freedom made the 4th, “Brand America” one of the world’s most admired symbols.
The Neocons, though they seem unaware of it, destroyed the USM and Brand America by harnessing them to their toxic ideology.
Meanwhile, the Masters of the Universe long ago saw that Dollar Hegemony was a limited lifespan opportunity to make a great deal of money. To make as much as possible they sacrificed the 2 remaining legs to maximize their proceeds from the endgame of what was a fraudulent ponzy scheme.
The ideologues, blinded by Hubris, haven’t given up, while (some of) the Masters of the Universe see the writing on the wall. They need a new scheme, and they’ll cheerfully sacrifice the Neocons so they can start it. Their new scheme is called “Make America Great Again”. Hey, it may not be as profitable as the old one in the short term, but it may just bring America back to enough life that they can continue to skim profits from it.
Its military prowess in doubt, its reserve currency on the edge of repudiation, its wealth generation plant rusting or mothballed, its civic infrastructure in disrepair, its people in discontent, its social fabric fraying, America’s owners faced their Either/Or moment and chose wisely.
The Chinese economic miracle happened because of economic globalisation.
As there was substantial western investment and massive relocation of Industries to Asia, GDP growth rates skyrocketed in China (and some other developing countries). Because of the very low Chinese (and Asian) labour costs, corporations make huge profits and they save a lot from the production and labour costs.
But in general, the process is not so simple.
Multinational corporations no longer physically build their own factories in China and Asia but they use outsourcing. They find various local manufacturers and they made agreements with them to produce certain products (or parts) at certain costs. Part of the final products may be transported and be assembled to other factories in a third country.
In that way, it is very easy for the corporations to change suppliers and manufacturers, especially for cost reasons or if any scandal about child labour or environmental pollution becomes known. The corporations always claim that “we didn’t know, its not our fault, we have already changed suppliers”. Not only manufacturing has been outsourced. Many western software companies outsource software development projects to countries such as India, Bulgaria etc as they pay only a fraction of the cost.
What remains in western countries is only the head offices and some design departments. Usually, many multinational corporations move their base altogether to “tax havens”, small states that offer zero tax rates and other tax benefits.
The election of Trump under a protectionist anti-globalist agenda means that a part of the U.S elites seem to be wary of the process of globalisation. Maybe they are afraid that China will overcome USA in the not so distant future to become the global power. As China’s economy grows bigger and bigger, its military and trade influence will become far stronger.
“X”, fully aware of the facts, adds, “Russia has always wanted peace. But they are not going to play a game with the Masters of the Universe that has Trump as the good guy and the Congress, CIA, etc. as the bad guy as a negotiating ploy. That is how they see it. They do not regard this circus as real.”
To me Pepe’s paragraph above of how the Trump presidency will play out– sums it all up. Although it only pertains to Russia– IMO, China too, will never allow a repeat of past western colonialist imperialism which since forever controlled by the big honcho global puppet master(s). For both Russia and China, those days are over and the USA and their global masters need get used to it– either we’re still going to have a reasonably liveable planet or no planet.
Further to Pepe’s excellent analysis, when taking into account current global economics and the beyond ginormous debt of the US in particular, as well as ever worsening earth changes we stare in the face– when these factors are also added to the mix, much as Pepe is right that the world should brace for impact, it could perhaps be far worse than ever experienced by modern man.