Thursday, August 2, 2018

Engdahl's Lesson

This excellent article by William Engdahl is well worth the short read, as it encapsulates an important concept treated in recent posts. I would draw your attention, in particular, to the following:
The US economy since 1971 has been turned into a financial revenue source, in effect turning the United States from a nation primarily producing industrial goods to one in which the sole aim of all investment is to make money from money. Companies such as General Motors which at the end of the 1960’s was the largest maker of cars and trucks in the world, the heart of the American economy, got lured into speculation using its GMAC auto loan financial arm to make bets in the world economic casino ... By 2000, Wall Street banks and investment funds essentially dominated the entirety of the US economy. Manufacturing jobs had been pushed offshore, “outsourced,” not by Chinese or German or other “greedy thieves” as charged, but by pressure from those same Wall Street banks that since the 1980’s had driven corporations to focus only on the value of their stock shares and not on the soundness of their products.
In the parlance of these annals, basically what William is saying is that the focus of the US economy changed significantly in the 20th century. We gradually replaced the global reserve asset - gold - with a gold derivative - the US dollar. Then we began to change the focus of economic output - products and services - into output derivatives - finance and speculation profits. Finally, we gradually transformed sound business practices - product quality and competitive value - into business practice derivatives - stock share price imperatives supported by corporate buybacks.

The rest of the article explains how "trade wars" are in fact a strategic lever upon exchange rate management and, essentially, currency use blackmail. The same tactics are used whenever dollar dominance is challenged. I fully agree with this, and it is a useful reminder. Trump's tactics are really no different than those of Nixon's trade restrictions in the 70's. His enduring nostalgia from the bygone era of America's past is a useful tool today, and it helped get him vetted for the position of a president whose inclinations serve a useful purpose. Indeed, it is not Russia that got Trump elected, but rather it was the Anglo American dollar faction, an arm of the international banking cartel.

Basically the plan is to create more artificial demand for US dollars through trade intervention. American made products may not be "great again" yet, but if you are forced to buy them they will regain their greatness in time. And if not, who cares - the products are merely the underlying asset - it is dependency upon dollars (their output derivative) which is the prime objective.

And so we can see how Mr. Engdahl does understand the dominant forces of our modern era, even though he does not bore deeper into the philosophical, spiritual and social consequence of the exaltation of the derivative. As we forensically trace our way back in time through the transformation of global economics from a natural, physical world economy into an artificial, speculative world economy, it is the dollar derivative phenomenon (making money from money) which empowers and enables banking class world rule. While generational wealth knows that the dollar's death is inevitable, financialization through derivative economics (Keynesianism) must be preserved if they are to retain their indentureship of the productive middle classes.

As the dollar of today gradually transitions to "something else" (which the world can begrudgingly agree upon without blowing itself up) gold is likely to "back the transition" as in times past.

But Roacheforque does not advocate the "holding of gold" as yet another way to "make money from money". You have your stock market "buyback support" and "Fed support", your real estate flip market (supported by the dollar system) and bitcoin speculation (among other such games of chance) for that purpose.

The holding of Gold serves a much different purpose than our newfound religion of "making money from money". The holding of gold is a philosophical, political and civic exercise in protest of the rise of banking class privilege, easy money wealth and the debt peonage which enslaves the productive class of people who make, grow, fix and care for the real things needed by the real world.

The plantation owners owe their wealth and the vast inequality they hold over their slaves to the hard work and desperation of their slaves. Some slaves will devote their lives to becoming slave owners one day, while others will endeavor to overtake the slave owners and become something much more honorable.

Debtbugs are the slaves who nibble at the crumbs of their masters in the hope that they will gradually ascend the ladder of "debt as wealth" so as to own a few slaves of their own. I am sorry to say that, in reading the comments at Zero Hedge and similar sites, these are the Apostles of the debt as wealth religion, railing against their masters - yet subscribing to their own slavery as a form of redemption. Goldbugs are the slaves who wish to rid the world of slavery to debt, and to bring back the world that Trump promises, but will find impossible to deliver. A world where a great country of idealistic adventurers set up a great Republic in a new land, with a very well constructed Constitution and Bill of Rights. Between these Debtbugs and Goldbugs are the many and various shades of gray dividing the two extremes.

The United States of the pre-derivative era had a prosperous middle class, with traditional morals and values (including the nuclear family concept) and a sound money backed economic engine, based upon quality production and real world supply and demand - second to none. That great country had a government with a civic duty to its people, and respect for the rule of law. Like it or not, that country no longer exists. The US of today is a derivative of that country.

Physical Gold advocacy is a repudiation of the dollar - the gold derivative which attempts to right the course of world affairs with more artificiality, more bloated and corrupt government, aggressive interventionism, wealth inequality, private sector moral corruption, cultural re-engineering, economic warfare and unprecedented global fascism through exponential debt. This is why the world's dollar vassals are stockpiling their reserves of physical gold. God help the current American generation that they have never known the greatness before their time, and must begin their race of life so far back from the starting line of past generations.

As we trace back so many of the world's problems of today to the corruption of our value system through the global banking syndicate's government sanctioned counterfeiting of real money, gold sits in the vaults of the ruling class central banks to confirm their understanding of it's true value. Gold is the lifeline to a world gone mad and set upon self-destruction through the corruption of it's ruling classes. You will never sense the importance of it by reading a single article by William Engdahl, or a single post at these archives.

But it's a start.

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