Something I just finished working on, thought I would share with you all. For those of you who are unaware the dollar is under continued threat by the BRICS nations and their move toward the gold standard currency; Russia is also in the game. Before I get into that were going to jump into our time machines and go back and review some of the economic models of history. During around 1600-1800 was a system called mercantilism. The mercantile system was based on the premise that national wealth and power were best served by increasing exports and collecting precious metals in return. It superseded (replaced) medieval Feudalism - AKA Monarchy and Republicanism - thats right I said Republicanism, all three are models of an Oligarchy. Republicanism is a form of government introduced by the Roman Empire btw - its a pseudo-opposition of Monarchy created by the elite of ancient Rome to consolidate their ruling power. Domestically, mercantilism led to some of the first instances of significant government intervention and control over the economy. Internationally, mercantilism encouraged the many European wars of the period and fueled European imperialism. More on mercantilism and emerging economic models of today here: newworldencyclopedia.org/entry/Mercantilism Check the definition - youll need to understand that when it comes to explaining how and why economic superiority is shifting from western to eastern control. Before continuing make note that Russia has for some time now been amassing a fortune of gold. dailyfinance/2013/02/11/russia-gold-buying-spree-vladimir-putin/. This is not new I heard about this in 2012. China is also moving to back its monetary system with gold. zerohedge/contributed/2013-07-25/china’s-yuan-set-become-global-reserve-currency-gold-backing. Understanding dollar values and global reserve currencies. Global reserve currency is currently US currency. Back in...I believe as early as 2002 Bernanke talked about devaluation of the dollar. This would cause international businessmen to lose purchasing power on the worlds markets. So instead the Federal Reserve chose not to devalue the dollar and instead engaged in quantitative easing strategies which has and will continue to cause hyper-inflation in this country. This does not serve the common laymen, it serves the corporations. So once these corporations have stuffed their pockets with money, they will be safe and secure when the economy of this country crashes. The common man however will not. Understand that both quantitative easing and devaluation strategies will cause inflation in this country, however to continue to allow corporations to bleed this country dry because people dont know how to tighten their belt in this privileged country - and yes compared to other countries the US is a privileged country - means this country is about to lose its position as an economic power around the world. This is solely due to allowing the foxes to run the hen house people. So what to do? Well first of all stop buying imports. Hard to do right? Yes. But too many people purchase items as a status symbol instead of needed basis. Knock it off, thats a start. And ridicule anyone that does this kind of thing. This is called social engineering. I know economics and politics is a sure fire way to develop a migraine, especially when coupled with getting the runaround from the ruling class - I dunno about you but chasing my tail gives me a headache - not fun. But you MUST wrap your head around these concepts and principles in order to change it. Is China the bad guy? No China is the opportunist that has taken advantage of the greed of the US corporations and ruling class of people and all the little minions who seek social status through economic superiority and the symbols that represent it. If you are one of these people I hope you feel the sting of the virtual slap you are sure to have received from me, and GG for putting another nail in the coffin of this country. Moving on - Theres a lot more to go into on the subject of economic collapse which include the results of free trade agreements and if you have not researched the devastation on the US economy caused from the NAFTA and KORUS free trade agreements you need to research that. We still have the TPP looming, if you arent on board with an activist group to fight that you should be. Understanding offshore outsourcing another important thing to review. I did a short article on that here: thenwowillfail/Corporatocracy/offshoring-america-the-euphemism-of-globalization.html. Well talk quickly about trade deficits with China and why China has the ability to emerge as a global economic power. Chinese currency is not worth near the purchasing power as US currency on global markets, (they are getting ready to change that formula). Therefore we can buy a lot more imports from China. Does this help the US economy? Well thats what they want you to believe. However profit margins have continued to soar for corporations while job creation does not. Part of this profit margin increase is of course due to corporate welfare coupled with corporate tax incentives. (Your tax dollars at work for YOU right?!?!! Riiiighto!!) But part of it has to do with trade deficits, offshore outsourcing etc. Bilateral deficits with China are about 4-1 or 3-1 margin. US GDP at the end of 2013 was a stagnate 3.0 while China had a GDP of 7.83. Im not going to get into GDP statistics and what they mean, just know that these numbers are very significant. If you want to know more do some research, this post is getting too long and I need to wrap it up. The economy of the US used to be one of manufacturing and export of trade goods. It is now an import and consumer based economy. The result of that is what we have seen in Detroit, and it will continue until people start addressing the situation in places like community halls and meetings. Get a coalition together in your areas and start demanding representation. If youre waiting for change to happen you will petrify in your easy chair. O.K. so what we have is an economic model similar to mercantilism which is working for eastern powers, most particularly China. Its an economic model that was challenged in the past by the ruling classes who eventually adopted an imperialist agenda against those societies that practiced mercantilism. We are a weak nation because our domestic economy is weak. Thats a side note. So what else makes China so significant? China is a world superpower, many people forget that. We are seriously in debt to China and the US is insolvent, the Federal Reserve is bankrupt. The dollar is not backed by anything other than the full faith and credit of the American people. When this economic shift in power occurs, the US will become the new China. People working to barely survive, there will be famine, more homeless, and a lot of people dying. The barely conscious masses of the US who enjoy their pseudo superiority will at least to some degree become the little boy of Oliver Twist fame asking Please sir may I have some more. One final note about the rising power of China in world economy is this - there is a group of 130 of the 188 countries that make up the international trade community of the WTO seeking for China to take the lead in dissolving the economic hold the US has internationally. China and Europe have already started trading outside the internationally recognized monetary system of the WTO, and the power transition model that has been developed has only strengthened this possibility. The question that exists here is - is this good or bad for the US? Well heres the thing - this coalition will be dissolving the power of the corrupt banking cartel - which is what the citizens of the US should have done. But since we didnt, someone else is going to. End of story, hang on for the ride. Not sure how this will swing, but dont expect business as usual to go on indefinitely. There are changes ahead.
Posted on: Sun, 24 Aug 2014 03:17:22 +0000
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