Mr. H.B. shared this article with me, and I pass it along to you as yet another indicator that significant fissures are beginning to appear in the American dollar hegemony and "dollar diplomacy" that have been the mainsprings of American power since the end of the Second World War. Additionally, this article, from the U.K.'s Economist, mouthpiece in a certain sense of the U.K.'s oligarchy, is yet another indicator that there are significant voices in that country now reassessing its "special relationship" with Washington, District of Corruption:

Dominant and dangerous As America’s economic supremacy fades, the primacy of the dollar looks unsustainable

There's a key passage in this article which highlights directly the problems and strategies of the BRICSA bloc, and CHina's new silk road strategy thatwe mentioned in our blog yesterday:

The widening gap between America’s economic and financial power creates problems for other countries, in the dollar zone and beyond. That is because the costs of dollar dominance are starting to outweigh the benefits.

First, economies must endure wild gyrations. In recent months the prospect of even a tiny rate rise in America has sucked capital from emerging markets, battering currencies and share prices. Decisions of the Federal Reserve affect offshore dollar debts and deposits worth about $9 trillion. Because some countries link their currencies to the dollar, their central banks must react to the Fed. Foreigners own 20-50% of local-currency government bonds in places like Indonesia, Malaysia, Mexico, South Africa and Turkey: they are more likely to abandon emerging markets when American rates rise.

(Emphasis added)

In other words, viewed and stated a very different way, the American federal reserve system has been put, by dint of the abandonment of the Bretton-Woods system, and the peg of other currencies to the dollar, into the position of being responsible to the effects of its policies not only on the American scene, but that of other countries as well. The result is that any move by the Fed in this instance, particularly a raise in prime rates, might cause a capital flight from "emerging economies."

Consider this in the light of the New Silk Road and bullion strategy we outlined yesterday. Such precipitous moves are ultimately destablizing and, as I averred, not ultimately productive, since actual productivity and manufacture is curtailed under such a system. And ultimately of course, in the secret councils and counsels of the Fed, a lack of tranparency, or even of "translucency" is itself therefore destabilizing and unproductive.

The "bullion strategy" that we outlined yesterday that might be at the center of the emergence of the BRICSA bloc is this even more evident, for a strategy of this sort unpegs currencies from the dollar, and hence, from destabilizing manipulations by the Fed. Now, once again, add an "alternative OPEC" to the mix, one bypassing the Middle East by the deliberate development of infrastructure (in this case, the energy infrastructure of BRICSA bloc member nations - witness only the bilateral energy deals between Russia and China to develop Siberian energy ), mix, and stir, and one has a recipe for a profoundly different global financial and energy system.

The United States, in this analysis, still has many cards it can play in the emerging game, the only question is, whether it will have the willpower to do so, and cut itself loose from the relationships it has had with incredibly dubious allies like Saudi Arabia. It can seek to join in this process, or to remain in its current relationships, and even then, in the long term, its interests will lie in opening genuine dialogue with the BRICSA bloc. If the geopoltical trends and analyses I've been proposing over the previous weeks have any merit, then this means, like it or not, that over the long term the USA must inevitably come to its senses. And it also means that in the long term, Saudi Arabia is on the menu unless there is dramatic and genuine domestic change, for medievalism will ultimately have no place in the scheme. Even China, for all its current human rights problems, has come a long way since Chairman Mao, and for China to be the financial player it now is, it had to.  And this means they're watching developments just as nervously in Tehran and Riyadh as they are in Washington.

See you on the flip side...

Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".


  1. basta on November 9, 2015 at 1:41 am

    The Economist is a Rothschild house organ, which explains its bloodless, dispassionate and slightly bored view of world events — ho hum, all is already known but we must continue to report on it and pretend there are actual mysteries to unravel and courses to chart through already charted waters. (In fact, we own the waters. Shhh, dont tell anyone!)

    With that in mind, the article shows that the agenda is moving along as planned, and that the squeezing the the lemon that is the US will continue until the eventual jettisoning of the rind, which is now firmly on the horizon.

    Also, they are the prime pushers of the current meme that the Fed is pinned down like Gulliver in Lilliput and cannot raise rates and thereby crush the little ones who are tied to it. So it is forced to continue its ZIRP/NIRP free money policy out of heartfelt, pc-driven consideration for all those poor, fragile developing economies and their investors.

    Utter nonsense. They’re the first to benefit from the Fed’s Funny Money, and further their debt trap by extracting more free lemon juice.

    • goshawks on November 9, 2015 at 1:57 am

      “They’re the first to benefit from the Fed’s Funny Money…”

      Yep, I have read how international banks have been sopping-up essentially-zero-interest loans like mad. Little of this money makes it down to our liquidity-starved, physical businesses. Most goes into derivative markets and other ‘future’ speculations. (And possibly ‘breakaway’ uses ?)

  2. Khobe on November 8, 2015 at 7:45 pm

    Money like anything else runs in cycles, and it’s very interesting to look at money mechanics historical cycles and the eery esoteric power it holds on the human mind, It is an energy cycle most don’t even know exits. And whatever the system, it always comes back to square one after having run it’s economic course. Here’s a very interesting article on the subject of such a system having run it’s course, as always ironically the power actors appear to be spinning the destiny wheel_ but the scenario is already written from much higher above.
    My contention is humans don’t understand the nature of power, so much less control it. They just keep abusing themselves, everyone and everything else with it. History is my witness.

  3. zendogbreath on November 8, 2015 at 6:37 pm

    Good points all.

    Is Japan’s duldrums these last few decades a fractal indicator?

    Also splains how the new and improved vatican pr has us all prepping for a kinder gentler world reduction (aka a fractal of paraguay’s jesuit reductions). Such a kind gentle man of the people this new pappa is. so the bad cop we will all fight and run from will be a capitalist tyrant? and the good cop we’ll run to will be a socialist tyrant with a kind face fully approved of by pappa?

    that’d make cashless economy with negative interest rates infinitely more plausible.

    Seems at all junctures in history of such paradigm change (socio, energy, military, medical, ag, food,…) mr global, the cabal, tptb,… all look like they’re having it both ways filled with self contradiction and the rest of the world recognizes it and says “of course they can’t have it both ways.” then like turdblossom talked about writing history and not being in history, mr global has it both ways.

    aren’t the oligarchs always financing and profiting on and from both sides of every war?

  4. goshawks on November 8, 2015 at 3:00 pm

    Back in my old aero engineering days, I took courses in stability & control. The derivative of position was velocity. The derivative of velocity was acceleration. The derivative of acceleration was a little-known term known as ‘jerk’ (really).

    The above is pertinent to this blog in that engineers tried to control aircraft by getting-in earlier and earlier into aircraft reactions. They found that controlling acceleration was the best that they could do. Trying to control on ‘jerk’ led to all kinds of quick perturbations on the system, and would quickly wear out the control apparatus. (Not to mention being uncomfortable to the occupants.)

    I am afraid that TPTB ‘financial engineers’ are trying to do the same level of over-control in their manipulation of the world economy. That is, they are working on the ‘jerk’ level… (half grin)

  5. DownunderET on November 8, 2015 at 1:20 pm

    Russia and China are buying and producing gold like there is no tomorrow, while the US extends the credit limit on the White House credit card, what gives?
    So, red pill or blue pill here? the “slow burn” continues and the Federal Reserve is expected to raise interest rates in December. Well according to Zero Hedge, the Fed is not going to raise interest rates, BUT, go to negative interest rates.
    I’ll bet Catherine Austin Fitts has her fingers on the pulse, because if the Fed does go to negative interest rates, the NWO has gone full circle.

    • Robert Barricklow on November 8, 2015 at 3:49 pm

      In the Max Keiser Report of a few days ago[report #832/the second half] has the Banksters goals reaching for a society that is both cashless as well as having negative interest rates.
      The questions then are: not only who they think they are; but who do they think “we” are?

  6. WalkingDead on November 8, 2015 at 12:33 pm

    The puppet masters had better be very mindful of their backs. The moment they turn their attention inward toward the US population will be the moment Russia, China, Europe, and everyone else they have had their boot on will rush in to fill the void and bring it all crashing down upon them. They will then find themselves between a rock and a hard place with no where to run or hide. I think most are well aware that just about everyone has grown quite weary of their fascist manure.

  7. marcos anthony toledo on November 8, 2015 at 10:35 am

    As I have written before who is running the American Circus. I doubt the puppets in Washington District of Confusion have their minds screwed on tightly.

  8. Robert Barricklow on November 8, 2015 at 10:34 am

    For myself, it boils down to Cui Bono?
    The public economy/politics
    the Private economy/politics.
    Accountable or unaccountable?

  9. Lost on November 8, 2015 at 7:02 am

    Of course the Economist has to punt the idea that the US only became the dominate economy between 1920-45. Trying to extend the “glory” of the empire there.

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