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"Are We Headed for Another Great Depression?" My talks with Elaine Meinel Supkis
Thursday, 10 May 2007 20:35
by Mike Whitney

Question: I've been getting more and more e mail from people who are worried that the policies of the Bush administration will bring about a severe economic downturn or, perhaps, even another Great Depression. Do you believe that the problems in the real estate market, the falling dollar, the massive current account deficit, or the shaky hedge fund industry are likely to cause major meltdown?

Elaine Meinel Supkis:
Great Depressions like the one that hit in 1929 are very rare. They usually happen only after two great empires exhaust their finances. WWI involved two of the biggest industrial powers in a massive death-struggle that didn't destroy their industries but wrecked their currencies and beggared their workers. Russia was a major empire but a minor industrial power so when the workers there revolted, the loss of this sector's industrial base had much less impact than the collapse of Germany's currency and its huge war debts.

This chart is from one of my most dog-eared books, one of the greatest works explaining relative power and why empires collapse, 'The Rise And Fall Of The Great Powers' by Paul Kennedy. The chart shows how England, the leading nation in the world, supposedly the richest, spent the most money during that grinding, depressing stalemate of a war.

Germany spent $3.9 billion less than England. Inflation since 1913 has been ferocious. This probably would represent well over several trillion dollars in today's currency. Even today, no nation can take a financial hit that big and stay solvent. Europe's industrial production fell 30% and the US, fattened off of billions of dollars of loans to all parties in Europe, lived high and mighty during the 1920's. But with industrial production lagging, Europe spiralled downwards. The US cheerfully gave everyone more and more loans and the promise of being repaid was fantastic! Why, these were basically AAA subprime loans.

Known and very popular cialis coupon which gives all the chance to receive a discount for a preparation which has to be available and exactly cialis coupons has been found in the distant room of this big house about which wood-grouses in the houses tell.

Then Germany couldn't pay and kept asking for better terms. This was OK with the US but not with bankrupt England or France. So they demanded full payments and Germany defaulted. This triggered the Great Depression. Even though the US was now the world's largest manufacturing power, our currency was mostly for home use so the British had to keep the pound strong. Trying to do this made things worse.

And so it is today: our empire won't retreat from its distant borders but these same borders are bankrupting us for we never recovered from the Vietnam War, we literally papered over the mess which remained and continues to poison our nation. The military/industrial complex is not making us rich, it is making us poorer. And the paper being laid over all this is the same paper the Germans used in 1924 to paper over their own bankruptcy: printed money.

When an empire does what we are doing today, society falls apart. And if this happens, there is no easy way out. Individuals can avoid the worst by avoiding debts but outside of that simple thing, there is no other answer. Of course, the true answer is a strong working class that believes in unity and not underselling each other. Alas, the USA has a long and tragic history of slavery. And the legacy of this culture divides the nation and half loves slavery and enables wretched working conditions and thinks the road to wealth is via cheap labor.

Germany has an advantage here: their recent attempt at slavery, the Nazi empire, was a total disaster and they don't want a repeat. I only wish the USA felt the same way. For no nation gets very rich for very long if the working class is poor and can't work their way into the middle class.

Question: Would you explain what is meant by “reserve currency” and how it serves the greater political interests of the United States? Do you think that preserving “dollar hegemony” was an important part of the decision to go to war with Iraq?

Elaine Meinel Supkis: It may sound trite but thinking about great banking matters as if it is one's own bank account no matter how small, works. Namely, it is dangerous for anyone to live life where everything is juggled and there isn't a penny to spare. Then something bad happens and boom. You go bankrupt. This is why savings accounts matter and why inflation is so deadly. No one in their right mind keeps a savings account because it can't grow, it shrinks!

The Federal Reserve was set up to maintain a reserve funds that supposedly wouldn't be touched by politicians. But alas, this is a fiction. Just like your own bank account, if one is married and sharing an account and one party keeps raiding it and spending it on guns and cars or fur coats or whatever, it runs out of funds and then something bad happens like a hurricane hits, and the cupboard is bare.

In the case of empires, a way to gage solvency is, how big is their own reserves compared to the size of these same currency reserves held by potentially hostile rivals? In the case of the USA, we send dollars out as fast as we can print them. If too many people getting this flood of money, around $800 billion a year now!!!!!! If they don't keep a big chunk in bank vaults, the value of the dollar drops. So they keep it in reserve, in case of a 'rainy day'. Like 9/11.

And if we think of these funds as boats, then China has Noah's Ark, Japan has an aircraft carrier, Europe has a holiday cruise liner, Russia has a very fancy yacht and the USA has a rowboat made out of an old bathtub. That is leaking.

China has $1.3 trillion in its reserves and is therefore, King of the Mountain. Japan has $900 billion and is no longer holding new currency so all the red ink in trade is no longer staying away, it is floating back home to here, as inflation. Europe has about $600 billion and Russia, $330 billion. The USA has only $66 billion and the numbers released today by the Federal Reserve shows that number is DROPPING. Yikes.

Question: President Bush has said that he intends to make his tax cuts “permanent” even though they have produced enormous deficits. At the same time the Federal Reserve has kept interest rates below the real rate of inflation and increased the money supply to approximately 10% per annum. Are these policies designed to maintain a healthy economy with a potential for strong growth or are they the means for transferring wealth from working people to the “very rich”?

Elaine Meinel Supkis: How do they 'transfer' wealth? Through unfair taxes. Under Reagan, American workers, worried about the eventual baby boomer retirement event horizon, decided to double taxes on Social Security. This pile of money was instantly, less than a year later, leaped upon and devoured by our corrupt government. They insantly gave unfair tax cuts to the upper incomes and basically used SS excess funds to pay for the government.

This worked OK until Bush took over. He and the GOP have run up debts so high, they added half a trillion a year in red ink and over the last six years, this is nearly $3 trillion and our national debt stands at nearly $9 trillion. During the last major money crisis, the 1972 collapse of the Bretton Woods concord, we had a national debt of not even $1 trillion. We have not had 900% inflation so I would say, this debt that the GOP rang up consisted of taking taxes out of the hides of the working class and handing it on a golden platter to the rich who, incidentally, buy bonds.

But no more! Today, the chief buyer of bonds is the Treasury itself. Next is China!

Question: Will you explain how the inflationary policies of the Federal Reserve are causing the stock market to soar and what the potential dangers are for the global economic system?

Elaine Meinel Supkis: Oh, that is so simple! In 2003, interest rates were dropped to 1% despite inflation of +5%. Instantly, the value of all assets shot upwards as bankers moved money along as fast as possible since the Fed undercut their own interest rates! So mortgages were below the rate of inflation. But this didn't make enough money so banks and other entities offered loans to bad risks who had to pay a higher rate. As inflation rages, they need to give loans to worse and worse customers who pay over 11% interest!

Alas, the fly in this ointment is exactly that: risky customers can't pay back loans! They go bankrupt and everyone acts like a good little domino and over they fall, one after another. Right now,the crashing sound of dominoes falling is like the hissing of waves on a distant shore but it is rapidly approaching. We can certainly hear it coming.

Question: Last week, reports showed that US manufacturing unexpectedly rose in March. However, the Financial Times said that, “The rise in the ISM index is impossible to square with either the regional surveys released over the past few weeks or our medium-term yield-driven model. We think it is quite likely that in their next iterations the ISM will drop sharply.” Do you think the government is deliberately falsifying data on manufacturing to make the economy look stronger than it really is? Could they be doing this in areas as well, such as money supply, inflation, employment, and GDP?

Elaine Meinel Supkis: Do alligators bite? Of course, they lie all the time. Some things were sacred and they didn't lie about them. The M3 data that shows how much money the Fed prints as well as how much is in circulation, etc, just last year, they announced, 'No one is really interested in these numbers and they are too hard to compile.' Like a drunken, gambling spouse declaring there is no need to balance the check books or look into the bank accounts, so it is here. Many people yelled about the M3 numbers being suppressed but to no avail, of course.

Onwards! Since they are lying about basic bank accounting, they have to lie about everything else or people will figure out, something smells rotten in Denmark, DC.

They redrew the rules for figuring out inflation so it no longer tracks inflation. This is so they can cheat retirees and have fake interest rates and thus, steal from granny and gramps and starve school children while lining their own pockets.

Question: Do you believe that the extraordinary “police-state” measures enacted by the Bush administration (Patriot Act, Military Commissions Act, repeal of habeas corpus, NSA “surveillance” of American citizens without court order) are intended to address the threat of terrorism or the social disorder that may arise in response to an economic collapse?

E.M.S.: They planned this for a long, long time. Do note that the 'war on drugs' was launched as we lost the Vietnam War. Thanks to inflation and a collapsing currency as well as a sudden hike in oil prices due to the US hitting the Hubbert Oil Peak here in 1972, there was great unrest. I saw some of this right up close. Once, when the lights went out in NYC during a thunderstorm of all things, riots and looting spread like wildfire. My community was nearly burned to the ground and all the businesses destroyed.

This, the rulers fear a lot. But no number of police can stop it if it happens. I have seen up close when a whole city revolts. More than once, including in Europe in 1968. The new, right wing French President will learn this the hard way next year. There will be riots and insurrections there.

Question: Can you explain – in simple “layman’s” terms – the effect of Japan’s low interest “carry trade” on the U.S. stock market? Is this practice inflating the value of securities in foreign markets? What are the risks? How is it affecting the euro?

E.M.S.: Europe lends money for more than 5% interest. So does the USA now although the financiers are getting worried about this and are egging on the Fed to lower rates back down to 1%. This is pure insanity. Japan has near zero inflation because they have decided to utterly destroy the purchasing power of the people in Japan who are living worse and worse off if they are below the top 20%. Many are now homeless. It is pathetic.

The world's #2 economic power that holds the world's #2 FOREX reserves can't give pay raises to anyone earning below $10 an hour because this will 'cause inflation' and so they get to live on the street and starve. Great. Anyone can eliminate inflation by enslaving the workers. Then they get cut out of the profits entirely and can't buy things and thus, can't cause inflation!

This is the plan being readied for us! We get to live in shanties while the rich live in palaces. And we won't buy anything while they have a zillion servants earning practically nothing. Sort of like England, circa 1914.

Bush and his gangsters hosted the Queen of England who loves him because he is making her very rich via Carlyle. And the royals of England didn't care if they starved their subjects who lived like savages under the rule of the royals. We are sliding backwards, not moving forwards here.

Question: Consumer spending is 70% of US- GDP, and yet, workers wages have not kept pace with the real rate of inflation. This has led to increased borrowing on the part of the American consumer. Now that housing prices have flattened out; consumers can no longer draw on their home equity for their spending. This has resulted in a huge spike in credit card spending. For example, “first-quarter profits at MasterCard surged 70% to a record $214.9 million following a 19% jump in transactions.” (Peter Schiff) As the weary American consumer is forced to curtail his spending, GDP will shrink and foreign investment will dry up. Are we likely to see “capital flight” from American markets or are foreign investors still confident in America’s resilience?

E.M.S.: In most places, housing prices are falling by 30%! All the people who responded to ads about getting cheap loans are now discovering they can't use their homes as ATM machines and simply re-finance over and over again. The house is supposed to be an asset: if you have to sell it to pay bills or move because of a job situation, if the debt is greater than the selling price, you go bankrupt. And this is happening all over the place now. And it will impact on buying.

Last year, Americans took out half a trillion in extra loans on the house! The surge in MasterCard (gads, Snidely Whiplash!) charges is because banks are no longer giving loans to people who are too deep in debt. The money that flowed there is flowing into the stock market just like it always does during the first half of an inflationary binge.

The second half is when the stocks collapse like they did in 1974. Then we see a 5 year bear market. Housing markets ALWAYS take 5+ years to recover from a bubble. But this last bubble launched by 1% Fed interest rates will take 20 years to recovery in most places.

Question: You have stated in your blog that the Federal Reserve is “buying back its own debt”. Would you explain how this works and whether it is intended to confuse the public about the real value of their currency?

(In your blog you say: “The US is the fulcrum for world trade. As the yen goes down (the yuan is so low, even as it gains, it is very minimal), the euro goes up. This is crushing the dollar because the US is printing money like mad to keep commerce flowing at home since it is bleeding red ink in trade and in government spending. Most of the bonds issued by our own government are bought by our own government. The only entity to buy much of that on the open market today is China. Japan is selling its hoard of US bonds.)

E.M.S.: Yes, aside from forcing Social Security to buy government bonds, the Treasury sells them to the Feds. This is Peter selling to Paul who then gives it back to Peter only it shrinks in value during this time. The Fed and Treasury can play this game to infinity. The only country to nearly reach that upper limit was Germany in 1924. They added more and more zeros to the money they printed every hour, day and night until they ran out of room on the bills. Literally! Then they simply cancelled the money! Bang. It was gone. Forever.

If no one stops us, we will do this just the same way.

Question: Wall Street reacts with wild enthusiasm every time two mega-corporations merge. These mergers always seems to generate boatloads of new credit from maximizing leverage and “creative financing”.. You say in your blog that this is “also a sign of impending collapse. For every pfennig of this is debt-loaded and is seeking a stable currency and high interest rates.” What do you think are the hidden dangers of these mergers?

E.M.S.: That happened in Germany, too. Everyone merged as money moved faster and faster and inflated more and more. Bubbles inflate because currency inflates. They are one and the same. And mergers are caused by money bubbles.

Question: What do you think the real rate of inflation is?

E.M.S.: Inflation is around 10% now. How do we know? The Federal Reserve just demanded banks hold 10% of their currency rather than rush it out the door. This reserve ratio is always a good indicator of inflation. In China, it was raised to 11% last week. Japan sets theirs at 0%, of course. They are insane.

Question: Is there a chance that the dollar could collapse?

E.M.S.: I hate to say this but I have a whole book of dead currencies my family has collected this last 180 years. From 1848 to today, in the USA, Germany, China, Japan, etc. Many 'pay the holder in gold' bonds. All worth something as historic documents but all ended up being worthless. Hope springs ever eternal and bad money is like winter: it always is around the corner.

Question: In 1966, Alan Greenspan wrote an article called “Gold and Economic Freedom” in which he described the events leading up to the stock market crash of 1929 and the Great Depression. In his essay he says:

“When business in the United States underwent a mild contraction in 1927, the Federal Reserve created more paper reserves in the hope of forestalling any possible bank reserve shortage. More disastrous, however, was the Federal Reserve's attempt to assist Great Britain who had been losing gold to us because the Bank of England refused to allow interest rates to rise when market forces dictated (it was politically unpalatable). The reasoning of the authorities involved was as follows: if the Federal Reserve pumped excessive paper reserves into American banks, interest rates in the United States would fall to a level comparable with those in Great Britain; this would act to stop Britain's gold loss and avoid the political embarrassment of having to raise interest rates.

The "Fed" succeeded; it stopped the gold loss, but it nearly destroyed the economies of the world, in the process. The excess credit which the Fed pumped into the economy spilled over into the stock market-triggering a fantastic speculative boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence. As a result, the American economy collapsed. Great Britain fared even worse, and rather than absorb the full consequences of her previous folly, she abandoned the gold standard completely in 1931, tearing asunder what remained of the fabric of confidence and inducing a world-wide series of bank failures. The world economies plunged into the Great Depression of the 1930's.”

Hasn’t the Federal Reserve created similar “speculative imbalances” today through its increases in the money supply, its low interest rates, and the massive liquidity it pumped into the housing bubble? And, haven’t the deregulatory policies of the Fed exacerbated our current account deficit – forcing US exports to compete with countries that artificially lower the prices of their manufactured goods by manipulating their currencies?

If the economic policies of the Federal Reserve and the Bush administration are deliberate, than how can we say that the destruction of the dollar and the subsequent crushing of the American middle class are accidental?

Greenspan’s essay proves that he fully understood the implications of “excess credit” and “excessive paper reserves” and yet he persisted with the same destructive policies for 6 years. So – Is the housing bubble merely the “unintended consequence” of the Fed's policies or is it the clearly calculated goal?

E.M.S.: Hahaha. The preacher telling us how to avoid the evils of drug abuse and hanging out with prostitutes comes to mind, doesn't it? The very moralists warning us about our sins are usually the worst sinners.

I'll never forget Congress praising Greenspan and telling him they should stuff him and use him as a scarecrow for this would mean no one would ever question him about finances! Well, I say, hang him high. He is a criminal. He destroyed our economic might. Treason, it is! And all those people who betrayed us in order to make a mighty empire on our backs and bank accounts should be held accountable! There is no excuse for this mess! It was fixable. But alas, too many people are making too much money off of it the way it is now and they won't stop no matter what. Just like their latest imperial wars: endless.

I wish I could say something happy here but history is a bitch who laughs at us all. We should listen to her.

Elaine Meinel Supkis (Bio) – Born at Yerkes Observatory, grew up on many observatory mountains and secret government testing grounds, burr under the saddle of the Real Rulers of America since childhood, family black sheep with three bags of wool, pulled down more than one politician in life, winner of the "Struck by Lightning Indoors" award for most hits in lifetime, three direct and seven glancing blows. Now living on a mountain with horses and cats and dogs and chickens and a husband. Yikes. http://elainemeinelsupkis.typepad.com/daily_news/
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avatar singh said:

real ture enemy of usa is and has always been engl
this article appears in the March 2, 2007 issue of Executive Intelligence Review.

There are, worldwide, between $500 and $600 billion in investments outside Japan, which took place with the help of cheap yen credits, benefitting from the favorable interest rates. If the yen now starts to rise, on the basis of the rise in interest rates, the effect would be much greater than 0.25%. The main beneficiaries of the carry-trade are the big banks, hedge funds, and equity funds, whose derivatives trading has led recently to a worldwide pyramiding of all segments of the market. The gigantic bubble of the casino-economy has to grow; that is, it must make profits, and for this it requires a continuous flow of liquidity. At the moment that these capital streams start to flow in the opposite direction, because of the changed interest rates and exchange rates, panic and an interlinked cluster of risks could lead to a meltdown of the system.
Who Is Really To Blame?

A widespread misconception exists, that behind the "financial locusts"—which are massively participating in the carry-trade, and which are now snapping up everything that's not nailed down, including in Germany, from Mittelstand [small and medium-sized] enterprises—there lurks somehow "the U.S.A." and "Wall Street." Indeed they are involved; but as the Economist reported in its Feb. 3-9 issue, in an article headlined "Britannia Redux: A special report on Britain," the City of London boasts that it is henceforth the most important financial center in the world, and thus the British Empire has been revived in the form of globalization.

And London is not the capital city of a normal nation, but also that of the Commonwealth, to which, for example, the Cayman Islands, Bermuda, and the Bahamas belong. And according to the the CIMA, financial authority of the Cayman Islands, 7,481 of the 9,000 worldwide hedge funds are registered in the Cayman Islands, a British Crown Colony. These so-called offshore markets are subject to no banking oversight or regulation on the part of central banks or governments. In 1993, the "Mutual Fund Law" was passed, according to which the simplified establishment or registration of hedge funds in a deregulated system should be facilitated. The goal was that the Cayman Islands—which have already been, since the beginning of the bubble economy, with the creation of the Eurodollar market, an Eldorado of uncontrolled credit creation—should be made into even more of a pivot of the "finance industry."

Since the middle of the 1990s, the hedge funds were advised to have their financial operations registered in the Cayman Islands, where they could operate outside national laws and regulation. In this way, the hedge funds got the biggest share in the British financial system. In the course of time, the banks that had initially been the main credit sources for the hedge funds, became increasingly consolidated with these funds, which now, through their takeovers, are exploiting and sucking out the wealth of many nations.
How the Locust Funds Operate

A report by the consulting firm McKinsey & Co., from January of this year, points out that Wall Street and the U.S. are losing out to London as the center of world finance. And this is a matter of insanely huge arrangements: The Bank for International Settlements (BIS) reports that there are $370 trillion in outstanding so-called over-the-counter (OTC) derivatives. The largest type of derivatives are interest-rate derivatives, with $262 trillion, of which 34% are handled in London, and 24% in New York and Chicago. The third-largest category of derivatives is the $38 trillion in foreign-exchange (currency) derivatives, of which 49% are handled in London, and only 16% in New York. And these bubbles are increasing at such an insane tempo that their assets in 2006 grew around 63% (!) in London, and "only" 13% in the United States.

But no one, no government, and no central bank, knows the real dimensions of the financial activities of the "financial locusts," who suck the guts out of valuable industrial firms and other objects of speculation worldwide, for their own profit, and then leave them in ruin. Because there is no transparency for these activities, as German Finance Minister Peer Steinbrück has many times complained. And if one accounts for the enormous volume of loot taken by these "robbers and plunderers" (to quote a spokesman for the British GBM trade union), it is not surprising that Great Britain and the U.S. Administration have, so far, directly opposed all efforts for re-regulation of this predatory monster.

When [Social Democratic leader] Franz Müntefering in the Summer of 2005, first enunciated the concept of "locusts" for the hedge funds and equity funds, he was absurdly accused by the international financial press of anti-Semitism. Since then, they have constructed the myth that Germany, through these statements and its repeated demands for transparency or even regulation, has caused irreparable damage. In truth, this is a veiled slander campaign by the international financial circles, which John Perkins described in his book Confessions of an Economic Hit Man, which is well worth reading.

The fact is, that the completely lawless piracy of the locusts has not only led to enormous losses of public property, but also the limitless greed of the speculation-driven willingness to take risks, poses the greatest danger to the world financial system in a long time. The enormously increasing volume of the carry-trade, backed by the ascent of the hedge funds, could at any moment detonate the system, for the locusts coldbloodedly make use of the fact, that interest rates do not fluctuate with supply and demand, but are fixed by the central banks. Since Japan went along with the pressure from Washington and London to keep its interest-rate rises minimal, for years there has been a de facto zero interest-rate policy, which allowed a spiral of speculation to take off by means of the carry-trade, pumping liquidity into the various bubbles. But now, eight members of the Board of the Japanese central bank have shown more interest in the stability of the yen than in the potential chain reaction that these interest-rate increases could let loose.

In September 1998, as a result of the Russian state's default in August, the LTCM hedge fund, which was at that time the world's largest, threaten to go bankrupt, which in turn threatened the meltdown of the world financial system, as the BIS said in its annual report. Only because the 16 largest banks in the world put together a giant bailout fund of over $4 billion for the LTCM hedge fund, which stabilized over $100 billion in derivatives, was a crash of the system averted.

Since then, the number of hedge funds and the volume of their raids has grown many-fold. The global financial system, with its totally over-indebted banks, is today a minefield, in which literally thousands of mines are going off and could set off a mega-collapse. Thus, for example, a new war against Iran would be the death-knell for the financial system, which would throw the world into chaos, and it cannot be excluded that part of the financial oligarchy sees this as the only way to try to keep their control, or to prevent their replacement by those who are oriented toward the common good.
A New Bretton Woods Now!

There is only one way out: a U.S. government liberated from Cheney and Bush must, together with Russia, China, and India, place on the agenda a new organization of the global financial architecture, in the tradition of Franklin D. Roosevelt, as Lyndon LaRouche has proposed, and as is currently being discussed in the American Congress. The hedge funds, equity funds, and their virtual assets will have no place in such a new system. The best thing that the nations of Europe could do in their own interests, is to work for this New Bretton Woods.

from -----http://www.larouchepub.com/lar/2007/3416where_the_future.html

This article appears in the April 20, 2007 issue of Executive Intelligence Review.

Where the Future Lies
by Lyndon H. LaRouche, Jr.

British evil designs.

" since the days of foolish Louis XIV, it has been a persisting, pro-imperial, Anglo-Dutch Liberal "geopolitical" strategy, sometimes called a Fabian strategy, to lure targeted rivals into wars by which they ruin themselves to Anglo-Dutch Liberal strategic advantage. This was the way in which the British East India Company acquired its private world empire, through the so-called "Seven Years War" culminating in the February 1763 Peace of Paris, and the London determination, from 1763 on, to crush those American colonies which had been crucial in Britain's war to wrest Canada from France.

The U.S. War in Indo-China and the current U.S. military operations and postures in Southwest Asia, are typical of the ways in which London has induced the U.S. government to, repeatedly, play the fool in this way. Indeed, many among our Baby Boomers in the U.S. Congress are still playing the role of official dupes of that strategic game.

World War Three, or its equivalent, is a proposition now on the table, a policy to be openly rejected now, or to be adopted by default. The London-centered, still-as-always-geopolitical intention, is to pit the U.S.A. into a virtual, even an actual, nuclear war against Russia, China, and India. The number of suckers ready to bite that bait, within the U.S. Senate, for example, is more disgusting than it should be considered surprising. A Baby-Boomer fish, running for President or otherwise, that would swallow Gore's "Global Warming" swindle, is clearly prepared to swallow almost any similarly baited hook.

The brief, but crucial role of that de facto political boss of the British East India Company, the Eighteenth Century's Lord Shelburne, in his 1782 accession to the post of Prime Minister, was not only a crucial turning-point of inflection in course of world history; it has crucial relevance for any competent understanding of the strategic crisis of this planet today.

Not only did Shelburne maneuver the Americans' allies, the U.S.A., France, and Spain, into separate peace negotiations, but, with the assistance of relevant freemasons under British control, notably the Martinist freemasonry, orchestrated the series of 1782-1789 developments leading into the self-destruction of U.S. ally France, that in a series of events which began with the atrocious farce which the British orchestrated as Philippe Egalité's July 14, 1789 assault, armed and directed by him personally, at the Bastille. This was the assault conducted ostensibly on behalf of Philippe's crony Jacques Necker's candidacy for Prime Minister of Louis XVI's France.[2] These events included such delicacies as the succession of that Reign of Terror, and that Bonaparte tyranny which Count Joseph de Maistre's Martinist freemasonry orchestrated as the economic spoiling of continental Europe for British imperial advantage.

Thus, following the American defeat of London's Cornwallis, there was a period of more than seventy years, from those France events of 1782-1789 through the U.S. victory over London's Confederacy in 1865, during which the British Empire's control over the world's monetary-financial systems was frequently challenged, but without actual success. However, by the time of the U.S. Philadelphia Centennial celebration of 1876, the U.S. 1865 victory led by President Lincoln over the globally orchestrated, anti-U.S. schemes of Britain's Lord Palmerston, had created a new situation in the world at large. A new situation had emerged, in which the anti-monetarist American System of political-economy was widely regarded as the available alternative to submitting to the imperial tyranny of the same neo-Venetian Anglo-Dutch Liberal form of monetary system which has dominated the world afresh, since August 1971.[3]

"Geopolitics" was the name of the British imperial reaction to the post-1865 copying of the key features and intentions of the Hamiltonian American System, among a significant number of nations within the continent of Eurasia, and also spreading into Central and South America. "Geopolitics" meant, in fact, defense of William of Orange's Anglo-Dutch Liberal strategy for blocking and destroying the threat represented by the rival influence of conceptions and policies, such as those of France's Jean-Baptiste Colbert, leading into the design for what became the constitutional form of of the U.S.A. economy. The result of President Lincoln's victory over the British puppet known as the Confederacy, was the outbreak of open warfare under London's direct supervision of the continuing 1895-1945 Japan policy of war against China, Korea, and Russia, and the London-orchestrated Balkan wars leading into what became known as World War I. Lord Kitchener's invasion of Sudan has remained an included, featured pivot of British imperial geopolitics, worldwide, to the present-day in Darfur.

This continuing geopolitical impulse of the post-1865 times, led, thus, into both World War I, and to the initial British sponsorship of Benito Mussolini and Adolf Hitler, leading into what became known as World War II. It was the motive for a Franklin-Roosevelt-hating Prime Minister Winston Churchill's continuing influence, even after his ouster, over the U.S.A. under Roosevelt's successor, Harry S Truman.[4]

U.S. President Franklin D. Roosevelt had managed to outflank the early-on Hitler backers in London and Wall Street, to the effect that the United Kingdom had dumped Edward VIII, to join, later, with Roosevelt, and with Stalin, in defeating what would have otherwise become a long world empire under the Hitler system. However, the same London and Wall Streets which Roosevelt had temporarily weaned away from Hitler's cause, soon showed, under President Harry Truman, that once Hitler were out of the way, it was the legacy of Franklin Roosevelt which London now wished to uproot, even by methods which amounted to a return to some crucial features of the Hitler system.

Among relevant circles in Boston and Manhattan, most notably, the leading intention at that time, and since, has been to assimilate Boston[5] and Manhattan into London, as early as this might be pulled off. The assassination of President John F. Kennedy, and the ruinous effects of the U.S. plunge into the trap of a Indo-China war led, thus, to the near-triumph of what President Eisenhower denounced as the "military-industrial complex" represented, today, by the intimate alliance of Prime Minister Tony Blair, Al Gore, and the Bush-Cheney Administration.

Under the currently ongoing parody of the "Peloponnesian War" in Southwest Asia, by President George W. Bush, Jr., Cheney, and Britain's Prime Minister Tony Blair, that with the foolish complicity of many leading Sophists among the Democratic Party's currently leading figures, the wrecking of the U.S. and its economy is nearly completed today. So, Fabian Society agent Al Gore's "Global Warming" swindle, now added to the already existing mess, has, suddenly, nearly destroyed the U.S. Democratic Party as a viable leading institution—unless we can reverse this awful error now.

For the moment, a London-directed Al Gore is deployed to induce the U.S. to wreck itself with an insane plunge into Gore's proposed "Bio-Foolery"; but, do not be so naive as to assume that the powers behind the curtain in London intend to destroy themselves, economically and otherwise. Blair and his like are intended to be dumped, once their assigned role has been, so to speak, "used up." New policies are on the drafting board for those upcoming times.

Until recently, there is a great fear within certain Anglo-Dutch Liberal circles, including U.S. figures associated, as Henry A. Kissinger and Felix Rohatyn were, with George Shultz in putting Augusto Pinochet's mass-murderous, fascist dictatorship into power in Chile. The fear behind pushing the Bush-Cheney Administration into power in Washington, has been, that a new world financial crisis would bring a resurgent patriotic echo of President Franklin Roosevelt back into power. At the moment, the Anglo-Dutch Liberal followers of Prince Philip and the late Nazi-SS veteran Prince Bernhard, manifestly wish, that the virtual national suicide of the U.S.A. be accomplished by the Bush-Cheney Administration. This arrangement, however temporary the intention, has brought the matter to the point, that, apparently, these treasonous fellows have almost finished off the possibility that the U.S.A., or even its memory, could become again an effective obstacle to an Anglo-Dutch Liberal world empire of the sort called "globalization."
Both Philippe and Necker were established members of relevant, quarreling international circles of the leading freemasonries of that time. Philippe was already notorious as a British asset during his Paris quarrels with Benjamin Franklin, whereas Necker had married into the same social circles as his wife's former suitor, Edward Gibbon of Decline and Fall of the Roman Empire notoriety. The bloodier features of the French Revolution were steered from the office of Lord Shelburne's Jeremy Bentham in the British Foreign Office's "Secret Committee" operations which ran the most significant events, such as the Danton and Marat, and Robespierre of what was called, euphemistically, "the French Revolution." One today might be tempted to say, "After all, it seems that so little has actually changed!"

[3] The Anglo-Dutch Liberal form of world monetary system established by the followers of Venice's "New Party" leader Paolo Sarpi appeared as a new form of attempted world-rule by monetary usury. The American System of political-economy, as revived by President Franklin D. Roosevelt, is defined by the principles of the U.S. Federal Constitution as a credit system, as leading U.S. economists such as Henry C. Carey followed Alexander Hamilton's principles of national banking on this account.

Boston's Harvard University, where British "courtesy agent" in the Confederacy tradition of "The Agrarians," William Yandell Elliott, had created the Henry A. Kissinger of the Augusto Pinochet affair and Operation Condor, imperfectly, as if from mud, and where Judge Lowell, acting on Lord Shelburne's behalf, had earlier founded the gentleman's practice of treason in America.

May 10, 2007
Votes: +0

g Anton said:

No big suprises here--I think many of us have a good view of the landscape and a good idea as to the inevitable destination that awaits us down the road (this is not meant to take anything away from the author--her comments are comprehensive, succinct, well documented and organized, and beautifully expressed).

It seems to me that it may take much longer to get to this inevitable destination than is commonly acticipated. Note only are the Feds cooking the books, but they are very actively manipulating markets ("the shovelling of millions of dollars out the helicopter door over the Wal-Mart parking lot" senario).

What I wonder about is what is going on in these peoples minds. For example, when GWB is telling us how marvelous the economy is, is he being malevolent or just unbelievably stupid?
May 11, 2007
Votes: +0

johniue said:

I am a 2 tour Vietnam Veteran who recently retired after 36 years of working in the Defense Industrial Complex on many of the weapons systems being used by our forces as we speak.

Politicians make no difference.

We have bought into the Military Industrial Complex (MIC). If you would like to read how this happens please see:

http://www.vanityfair.com/ politi...spyagency200703

Through a combination of public apathy and threats by the MIC we have let the SYSTEM get too large. It is now a SYSTEMIC problem and the SYSTEM is out of control. Government and industry are merging and that is very dangerous.

There is no conspiracy. The SYSTEM has gotten so big that those who make it up and run it day to day in industry and government simply are perpetuating their existance.

The politicians rely on them for details and recommendations because they cannot possibly grasp the nuances of the environment and the BIG SYSTEM.

So, the system has to go bust and then be re-scaled, fixed and re-designed to run efficiently and prudently, just like any other big machine that runs poorly or becomes obsolete or dangerous.

This situation will right itself through trauma. I see a government ENRON on the horizon, with an associated house cleaning.

The next president will come and go along with his appointees and politicos. The event to watch is the collapse of the MIC.

For more details see:

http://rosecoveredglasses.blogsp...ement- from.html
May 13, 2007
Votes: +0

jrp said:

better get ready for a big depression
save food flour grow gardens can food, fire places pellet stove , solar panels, gold, buy water. it stores for a long time, battiers tents camper ect. your home if not your will not be, fire wood get ready people.
January 21, 2008
Votes: +0

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