Three must-read reports are mirrored below: (1) “How Empires End”, (2) “This Is How Empires Collapse” and a follow-up to more current events documenting the current collapse of a fascist Western empire once dubbed “the land of the free” now being exposed as a police state: (3) “KING DOLLAR IS DEAD, HYPERINFLATION AHEAD” ... please take some time to read these reports and reflect on this American tragedy. We must find time to prepare for the worst because as many have been warning, even worse has yet to come. How Empires End “Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny.” – Thomas Jefferson http://www.internationalman.com/articles/how-empires-end Histories are generally written by academics. They, quite naturally, tend to focus on the main events: the wars and the struggles between leaders and their opponents (both external and internal). Whilst these are interesting stories to read, academics, by their very nature, often overlook the underlying causes for an empire’s decline. Today, as in any era, most people are primarily interested in the “news” — the daily information regarding the world’s political leaders and their struggles with one another to obtain, retain, and expand their power. When the history is written about the era we are passing through, it will reflect, in large measure, a rehash of the news. As the media of the day tend to overlook the fact that present events are merely symptoms of an overall decline, so historians tend to focus on major events, rather than the “slow operations” that have been the underlying causes. The Persian Empire When, as a boy, I was “educated” about the decline and fall of the Persian Empire, I learned of the final takeover by Alexander the Great but was never told that, in its decline, Persian taxes became heavier and more oppressive, leading to economic depression and revolts, which, in turn led to even heavier taxes and increased repression. Increasingly, kings hoarded gold and silver, keeping it out of circulation from the community. This hamstrung the market, as monetary circulation was insufficient to conduct business. By the time Alexander came along, Persia, weakened by warfare and internal economic strife, was a shell of an empire and was relatively easy to defeat. The Tang Dynasty Back then, I also learned that the Tang Dynasty ended as a result of the increased power amongst the eunuchs, battles with fanzhen separatists, and finally, peasants’ revolts. True enough, but I was not taught that the dynasty’s expansion-based warfare demanded increases in taxation, which led to the revolts. Continued warfare necessitated increasing monetary and land extortion by the eunuchs, resulting in an abrupt decrease in food output and further taxes. Finally, as economic deterioration and oppression of the citizenry worsened, citizens left the area entirely for more promise elsewhere. Is there a pattern here? Let’s have a more detailed look—at another empire. The Spanish Empire In 1556, Philip II of Spain inherited what was regarded as Europe’s most wealthy nation, with no apparent economic problems. Yet, by 1598, Spain was bankrupt. How was this possible? Spain was doing well but sought to become a major power. To achieve this, Philip needed more tax dollars. Beginning in 1561, the existing servicio tax was regularised, and the crusada tax, the excusado tax, and the millones tax were all added by 1590. Over a period of 39 years (between 1559 and 1598) taxes increased by 430%. Although the elite of the day were exempt from taxation (the elite of today are not officially exempt), the average citizen was taxed to the point that both business expansion and public purchasing diminished dramatically. Wages did not keep pace with the resultant inflation. The price of goods rose 400%, causing a price revolution and a tax revolution. Although Spain enjoyed a flood of gold and silver from the Americas at this time, the increased wealth went straight into Philip’s war efforts. However, the 100,000 troops were soon failing to return sufficient spoils to Philip to pay for their forays abroad. In a final effort to float the doomed empire, Philip issued government bonds, which provided immediate cash but created tremendous debt that, presumably, would need to be repaid one day. (The debt grew to 8.8 times GDP.) Spain declared bankruptcy. Trade slipped to other countries. The military, fighting on three fronts, went unpaid, and military aspirations collapsed. It is important to note that, even as the empire was collapsing, Philip did not suspend warfare. He did not back off on taxation. Like leaders before and since, he instead stubbornly increased his autocracy as the empire slid into collapse. Present-Day Empires Again, the events above are not taught to schoolchildren as being of key importance in the decline of empires, even though they are remarkably consistent with the decline of other empires and what we are seeing today. The very same events occur, falling like dominoes, more or less in order, in any empire, in any age: 1. The reach of government leaders habitually exceeds their grasp. 2. Dramatic expansion (generally through warfare) is undertaken without a clear plan as to how that expansion is to be financed. 3. The population is overtaxed as the bills for expansion become due, without consideration as to whether the population can afford increased taxation. 4. Heavy taxation causes investment by the private sector to diminish, and the economy begins to decline. 5. Costs of goods rise, without wages keeping pace. 6. Tax revenue declines as the economy declines (due to excessive taxation). Taxes are increased again, in order to top up government revenues. 7. In spite of all the above, government leaders personally hoard as much as they can, further limiting the circulation of wealth in the business community. 8. Governments issue bonds and otherwise borrow to continue expansion, with no plan as to repayment. 9. Dramatic authoritarian control is instituted to assure that the public continues to comply with demands, even if those demands cannot be met by the public. 10. Economic and social collapse occurs, often marked by unrest and riots, the collapse of the economy, and the exit of those who are productive. 11. In this final period, the empire turns on itself, treating its people as the enemy. The above review suggests that if our schoolbooks stressed the underlying causes of empire collapse, rather than the names of famous generals and the dates of famous battles, we might be better educated and be less likely to repeat the same mistakes. Unfortunately, this is unlikely. Chances are, future leaders will be just as uninterested in learning from history as past leaders. They will create empires, then destroy them. Even the most informative histories of empire decline, such as The Decline and Fall of the Roman Empire, by Edward Gibbon, will not be of interest to the leaders of empires. They will believe that they are above history and that they, uniquely, will succeed. If there is any value in learning from the above, it is the understanding that leaders will not be dissuaded from their aspirations. They will continue to charge ahead, both literally and figuratively, regardless of objections and revolts from the citizenry. Once an empire has reached stage eight above, it never reverses. It is a “dead empire walking” and only awaits the painful playing-out of the final three stages. At that point, it is foolhardy in the extreme to remain and “wait it out” in the hope that the decline will somehow reverse. At that point, the wiser choice might be to follow the cue of the Chinese, the Romans, and others, who instead chose to quietly exit for greener pastures elsewhere. Editor’s Note: Unfortunately there’s little any individual can practically do to change the trajectory of this trend in motion. The best you can and should do is to stay informed so that you can protect yourself in the best way possible, and even profit from the situation. This is what Doug Casey’s International Man is all about: helping you cut through the smoke and mirrors while making the most of your personal freedom and financial opportunities around the world. The free IM Communiqué is a great place to start. http://www.internationalman.com/help/register ?????????????????????????????????????????????????????????????? This Is How Empires Collapse http://www.silverdoctors.com/this-is-how-empires-collapse/ Before an empire collapses, it first erodes from within. The collapse may appear sudden, but the processes of internal rot hollowed out the resilience, resolve, purpose and vitality of the empire long before its final implosion. What are these processes of internal rot? Here are a few of the most pervasive and destructive forces of internal corrosion: 1. Each institution within the system loses sight of its original purpose of serving the populace and becomes self-serving. This erosion of common purpose serving the common good is so gradual that participants forget there was a time when the focus wasn’t on gaming the system to avoid work and accountability but serving the common good. 2. The corrupt Status Quo corrupts every individual who works within the system. Once an institution loses its original purpose and becomes self-serving, everyone within either seeks to maximize their own personal share of the swag and minimize their accountability, or they are forced out as a potentially dangerous uncorrupted insider. The justification is always the same: everybody else is getting away with it, why shouldn’t I? Empires decline one corruptible individual at a time. 3. Self-serving institutions select sociopathic leaders whose skills are not competency or leadership but conning others into believing the institution is functioning optimally when in reality it is faltering/failing. The late Roman Empire offers a fine example: entire Army legions in the hinterlands were listed as full-strength on the official rolls in Rome and payroll was issued accordingly, but the legions only existed on paper: corrupt officials pocketed the payroll for phantom legions. Self-serving institutions reward con-artists in leadership roles because only con-artists can mask the internal rot with happy-story PR and get away with it. 4. The institutional memory rewards conserving the existing Status Quo and punishes innovation. Innovation necessarily entails risk, and those busy feathering their own nests (i.e. accepting money for phantom work, phantom legions, etc.) have no desire to place their share of the swag at risk just to improve sagging output and accountability. So reforms and innovations that might salvage the institution are shelved or buried. 5. As the sunk costs of the subsystems increase, the institutional resistance to new technologies and processes increases accordingly. Those manufacturing steam locomotives in the early 20th century had an enormous amount of capital and institutional knowledge sunk in their factories. Tossing all of that out to invest in building diesel-electric locomotives that were much more efficient than the old-tech steam locomotives made little sense to those looking at sunk costs. As a result, the steam locomotive manufacturers clung to the old ways and went out of business. The sunk costs of empire are enormous, as is the internal resistance to change. 6. Institutional memory and knowledge support “doing more of what worked in the past” even when it is clearly failing. I refer to this institutional risk-avoidance and lack of imagination as doing more of what has failed spectacularly. Inept leadership keeps doing more of what once worked, even when it is clearly failing, in effect ignoring real-world feedback in favor of magical-thinking. The Federal Reserve is an excellent example. 7. These dynamics of eroding accountability, effectiveness and purpose lead to systemic diminishing returns. Each failing institution now needs more money to sustain its operations, as inefficiencies, corruption and incompetence reduce output while dramatically raising costs (phantom legions still get paid). 8. Incompetence is rewarded and competence punished. The classic example of this was “Good job, Brownie:” cronies and con-artists are elevated to leadership roles to reward loyalty and the ability to mask the rot with good PR. Serving the common good is set aside as sychophancy (obedient flattery) to incompetent leaders is rewarded and real competence is punished as a threat to the self-serving leadership. 9. As returns diminish and costs rise, systemic fragility increases. This can be illustrated as a rising wedge: as output declines and costs rise, the break-even point keeps edging higher, until even a modest reduction of input (revenue, energy, etc.) causes the system to break down. A modern-day example is oil-exporting states that have bought the complicity of their citizenry with generous welfare benefits and subsidies. As their populations and welfare benefits keep rising, the revenues they need to keep the system going require an ever-higher price of oil. Should the price of oil decline, these regimes will be unable to fund their welfare. With the social contract broken, there is nothing left to stem the tide of revolt. 10. Economies of scale no longer generate returns. In the good old days, stretching out supply lines to reach lower-cost suppliers and digitizing management reaped huge gains in productivity. Now that the scale of enterprise is global, the gains from economies of scale have faltered and the high overhead costs of maintaining this vast managerial infrastructure have become a drain. 11. Redundancy is sacrificed to preserve a corrupt and failing core. Rather than demand sacrifices of the Roman Elites and the entertainment-addicted bread-and-circus masses to maintain the forces protecting the Imperial borders, late-Roman Empire leaders eliminated defense-in-depth (redundancy). This left the borders thinly defended. With no legions in reserve, an invasion could no longer be stopped without mobilizing the entire border defense, in effect leaving huge swaths of the border undefended to push back the invaders. Phantom legions line the pockets of insiders and cronies while creating a useful illusion of stability and strength. 12. The feedback from those tasked with doing the real work of the Empire is ignored as Elites and vested interests dominate decision-making. As I noted yesterday in The Political Poison of Vested Interests, when this bottoms-up feedback is tossed out, ignored or marginalized, all decisions are necessarily unwise because they are no longer grounded in the consequences experienced by the 95% doing the real work. This lack of feedback from the bottom 95% is captured by the expression “Let them eat cake.” (Though attributed to Marie Antoinette, there is no evidence that she actually said Qu’ils mangent de la brioche.) The point is that decisions made with no feedback from the real-world of the bottom 95%, that is, decisions made solely in response to the demands of cronies, vested interests and various elites, are intrinsically unsound and doomed to fail catastrophically. How does an Empire end up with phantom legions? The same way the U.S. ended up with ObamaCare/Affordable Care Act. The payroll is being paid but there is no real-world feedback, no accountability, no purpose other than private profit/gain and no common good being served. That’s how empires collapse: one corrupted, self-serving individual at a time, gaming one corrupted, self-serving institution or another; it no longer matters which one because they’re all equally compromised. It’s not just the border legions that are phantom; the entire stability and strength of the empire is phantom. The uncorruptible and competent are banished or punished, and the corrupt, self-serving and inept are lavished with treasure. This is how empires collapse: one complicit participant at a time. ?????????????????????????????????????????????????????????????? KING DOLLAR IS DEAD, HYPERINFLATION AHEAD http://www.silverdoctors.com/jim-willie-hyperinflation-bombshell-nato-is-dead-king-dollar-wrecked/ The Paradigm Shift has reached a higher gear. The danger and risk levels have gone to critical levels. The risk of economic destruction has gone into recognizable critical levels. The Emperor’s court is showing critical internal defections. The biggest ray of light comes from Germany, which shows important signs of refusal to permit its economic destruction in order to suit the elite plans of a grander fascist state. The Germans have suffered hyper inflation before, and will not again. The Germans have suffered a national calamity from an integrated fascist state, and will not again. It is becoming excruciatingly clear that the Global Axis of Fascism is the US, UK, and its leash holder in the SouthEast Mediterranean. The entire global system has reached the critical phase. The breakdown phase is accelerating. The Russian sanctions have an obvious whiplash of severe impact to the US and Europe. The whiplash impact to the US is to expose the USDollar as a corrupted cancerous currency, for which coerced war and economic suicide are the high cost of continued support. The USGovt is left with no more options than war, since the financial front has been lost to insolvency, market interference, bond fraud, and leveraged corruption. A climax is fast approaching. The USDollar is stuck in the implosion stage. The USDollar will be rejected, the climax a Weimar implosion of the currency. The King Dollar has been wrecked, knocked off its throne, never to return to prestige. The source of the problem has become more easily identified. The typical tactics not only do not work, but expose the bully, the warmonger, the hegemony advocate, the wizard of violence, the imposer of self-serving rules, the crime syndicate bosses, the masters of espionage, the man with killer drone toys. The USDollar is defended by war, market interference (see LIBOR, FOREX, debt ratings), accounting rules gimmicks, rigged detonation of banking systems, pointed assassinations for heads of state, even fabricated natural events (see HAARP in Philippines). The entire system is supported by Zero Interest Rate Policy (ZIRP) which distorts asset values and discourages savings. The misallocation of resources matches the wet blanket effect (see Money Velocity shutdown). The entire system is supported by Quantitative Easing (QE) which has monetized the USGovt bond market, the US property market, the US stock market, and soon possibly the US municipal bond market. The capital destruction is rampant, severe, and entering vicious feedback loops. The entire financial and economic system was held together in 2013 by cables and ropes in grand lashing style. The entire financial and economic system is now held together in 2014 by strings and howitzers, not to mention the endless sanctions and destructive rules, even punitive bank fines. The United States seeks to remain Lord of the Flies, its domain extended over a wrecked European continent. The main question is whether Europe will sign on to make a perverse corporatist trade union with a sinking millstone. The United States seeks to pursue the Western totalitarian state by means of pulling down the European Economy, from the broken system to emerge the reconstruction of oppressive fascism. A wrecked Western Economy is pre-requisite. The small ray of light slips through, as the Fascist Business Model has a crack in it. Usually the big powerful corporations support the government fascist dictums. However, Exxon Mobil, Dutch Shell, British Petroleum, and Boeing stand in opposition to sanctions against Russia. The game is fast changing. The Emperor’s court is showing critical internal defections. The bigger ray of light comes from Germany, which shows important signs of refusal to permit its economic destruction in order to suit the elite plans of a grander fascist state. The Germans have suffered hyper inflation before, and will not again. The Germans have suffered a national calamity from an integrated fascist state, and will not again. It is becoming excruciatingly clear that the Global Axis of Fascism is the US, UK, and its leash holder in the SouthEast Mediterranean. The entire global system has reached the critical phase. The breakdown phase is accelerating. Recent events point to two important phenomena having occurred. NATO is undermined. The USDollar military plank is being opposed by its own US allies. This is unprecedented. The Jackass pays almost no attention to the COMEX gold price, the FOREX currency exchange rates, or the USTreasury Bond yields, all controlled corrupted and incontrovertibly wrong-footed. The entire Ukraine War has subjected Europe to severe economic damage. It will not stand. The Russian sanctions have an obvious whiplash of severe impact to the US and Europe. The whiplash impact to the US is to expose the USDollar as a corrupted cancerous currency, for which coerced war and economic suicide are the high cost of continued support. The effect is to force structural change. The whiplash impact to Europe is to cause sudden crippling economic effects, industrial output decline, job cuts, and severed business ties with a longstanding neighbor and partner. The effect is to force structural change. Witness Paradigm Shift on a global scale, the isolated party being the United States. Their NWO armbands fit side by side with the nazi symbols so easily recognized. The big victim is the King Dollar, which has been knocked off its throne. It might have been decapitated, but it surely has been wrecked. Its dying breath is venomous. Its last will is a testament to fascism and destruction, not equitable trade and fair commerce. Its last words are ugly lies. IRONY THICK The irony is unusually thick, but hardly noticed by the masses, as the US marches to marxist fascism. The Europeans resist fascism and isolation. The Russians seek commerce, partnerships, and constructive engagement. The Chinese seek trade and commerce, while opening gates for a sort of colonization. The British seeks a new fence on which to sit, and possibly continue to capture the finance trade (while Frankfurt cleans up in the new great RMB Hub game). The entire British Commonwealth of nations kowtows to the American self-proclaimed global lords and rule makers. Witness the friction to prevent Eurasia from forming, as the insolvent Oceania fades in power, importance, and integrity. Orwell just winked. UKRAINE JUMP SHIFT The motives for the Ukraine War are murky. Clearly to the cynic with a watchful eye on fascism spread, the motive seems to be designed to cut off Russian Gazprom influence, even to halt its conversion of Europe to an energy vassal client. The US-EU intentions seem to be scorched earth with a genocide twist, stirred by asset thefts (see Kiev Central Bank raid). The Ukraine situation has changed the entire game, put Europe on alert, and set traps left and right. The Europeans can no longer sit quietly and follow American Fascist orders. The Europeans are forced to take action, to choose sides. The US should never force its allies to choose sides, since the US camp is so detrimental and deeply damaging. Joining the US camp means injecting cancer in finance, undermining capital in industry, and enlisting war for its destruction. SPECIAL FORCES IN EQUATION The big new twist which took the Jackass out of his chair was the professional hardened soldiers who have joined the Ukraine Liberation Movement (or whatever it is called), taking up positions against the NATO troops, against the Langley-Soros mercenaries. They are fighting against the Ukraine Regime in Kiev, against the fascists. These professional volunteer soldiers have captured some American Blackwater mercenaries, and are conducting interrogations. Later come the perp walks and criminal parades with photo ops. For these special forces from Germany, France, Netherlands, and Britain to show such extreme defiance is testimony to the broken nature of NATO. The North Atlantic Treaty Organization in my opinion is dead, as in dead kaput dead. The United States violated the treaty long ago in two key ways. The US placed ballistic missiles on the Russian borders, calling them defensive. The US has used NATO bases to distribute heroin for over 20 years, with the last ten years being accelerated from the Afghan source. Since the USMilitary invasion of Afghanistan, at the time under the stated purpose of building a Chevron oil pipeline in a land without oil resources, the heroin production has risen 14-fold. But the Jackass digresses. NATO is dead, and the big new questions are whether Germany will tolerate USMilitary soldiers in occupation of its land at Ramstein AFBase, and whether Germany will permit further usage of the NATO base to distribute heroin to its population. Broken treaties are not new for the USGovt, which for two centuries has broken them at will, whenever it serves a greater purpose, like to manifest destiny. Atrocities and genocide are part of the American fabric at its highest offices. FASCIST AXIS EXPOSED MORE FULLY The basis of fascism, that seedy vile merger of state with corporation, is being more clearly seen as having its firm footing in the United States, the United Kingdom, and Israel. One should never leave out the Holy See of Rome in such identifications. The control rooms are more visible. The perpetrators of violence, terrorism, and false flag attacks (a fascist specialty for decades) have been enduring the spotlight in recent years, especially recent months. The string of executive decrees in the USGovt house with white paint testify to fascism emerging like a Washington Wailing Wall pasted with documents in pinups, not prayers. The USGovt reserves the right to kill any citizen, to arrest any citizen, to seize any citizen assets, to force any citizen into labor without pay, to obstruct citizen meetings, and to confiscate citizen firearms. Such is fascism in full glory. The Patriot Act (hardly patriotic) was a Fascist Manifesto which was imposed next to the formation of the American Gestapo. The British share the same fascist tendencies, the list long in unison. Tel Aviv struggles in the open with such fascist confronations. By the way, the huge off-shore oil discovery preceded the Gaza violence, and Hamas has been benefiting from Langley supply routes since they were exposed in Egypt, the brotherhood being the link. 911 DATA COMING TO TABLE The major wild card coming into view is detailed evidence on the inside job of 911 at both the World Trade Center and the Pentagon. The Jackass chooses to cite this factor in passing. Let the Snowden Files and Veterans Today state the case, after the battle was waged by AE1000 and Architects & Engineers For Truth. Imagine inside the United States that people pursuing truth are labeled as subversive, another plank in the fascist platform. The full story will come out on the US, UK, and Med Sea leash holder involvement. The biggest decisions are where to post the information. The other question is whether the US citizens will be able to comprehend the sometimes complex data, given their ignorance and refusal to open eyes. The Jackass view is that when wearing red white & blue boxer shorts, the brain does not function well. Lastly, a question: Why was no information ever disclosed on the World Trade Center acting as the site of the largest private bank in the world? The event on that fateful day was a bank heist, the largest in humankind history. The loot was $100 billion in gold bullion, $100 billion in bearer bonds, and $100 billion in diamonds. Air travel restrictions against water bottles are to prevent the movement of diamonds, as the shoe restriction is a laughable accompaniment in distraction. USDOLLAR WAR DEFENSE LAID BARE During the 1990 decade, a few instances can be identified where the USDollar defense was felt with USMilitary activity. In the 1980 decade, the brief Panama War was to defend the USDollar, where their economy and banks still use the USD currency. In the early 2000 decade, examples were seen like after South Korea announced USTreasurys diversification plans. The US treated them to military exercises off their coastline. Recall SKorea is effectively an occupied nation (see USMilitary presence with 28,500 troops). In the 2000 decade, the most stark example of USDollar war defense was seen in the Iraq War. The tyrant Saddam Hussein openly boasted oil trade in Euros, and cited its advantages over a few year period. He did not expect the disadvantage of war attack, annexation, and his capture with hanging by the neck after his statue was toppled and the image of his head smacked with sandals. The Iran sanctions were founded in non-USD usage in their energy trade, the same Hussein crime. Thus Iran was painted by the dutiful Israelis as a nuclear threat. That card has been played way too often. Tehran still lacks both adequate nuclear material and missile delivery systems. No need to be factual, when propaganda is the name of the CFR game. The attack on Cyprus was not really about insolvent banks and Bank Bail-in models being arranged. The Cyprus operation was to cut off Russian usage of their banks as a window to the West for their banking system. The Cyprus operation was to cut off Russian usage of their banks in conversion of USTBonds to Gold bullion. The Cyprus operation was to cut off Gazprom at the pass, and to provide a prelude of the upcoming Ukraine War. No mask can cover the fact that the Ukraine War is to protect the USDollar, to ensure Europe is kept within the USD Corral, to prevent Europe from sitting at the Gold Standard table. The only trouble is that the Kiev Fascist Regime is going to fall very soon, and the Kiev leaders will be exposed for their Langley roots, their Soros roots, and the Mashwodd roots (which fills most ministry posts). The Europeans will not let their nations be wrecked in order to defend the violent corrupted cancerous USDollar. They will choose the Gold Standard, promoted by Russia & China. They will choose to preserve their economies and their national livelihoods. DEAD PETRO-DOLLAR The two leading oil producer nations Saudi Arabia and Russia will no longer exclusively trade crude oil in USDollar terms. The Saudis are slower at the draw, but obvious in their monthly lovefest conferences with Chinese officials, ministers, and heads of state, even corporate leaders. When the Saudis announce acceptance of other non-USD currency for oil payments, the game will reach a higher pitch. Last week the Russian Gazprom Neft (oil division within Gazprom Corp) announced acceptance of Chinese Yuan and Russian Rubles for crude oil sold to Europe and to China. The news was another correct Jackass forecast, made back in March & April timeframe. The game is on, as the King Dollar is being kicked to the curb, its throne broken and toppled. Too much war, too many sanctions, too many hidden violent games, too much market rigging. The Petro-Dollar is effectively dead, the funeral yet to occur. The next standard will be the Energy for Gold and Energy for Yuan (aka RMB). The name Gaso-Yuan defacto standard has been heard, an awkward moniker indeed. This important step will be the practical step toward reinstallation of the Gold Standard. The Jackass is on record stating that the global trade settlement in Chinese RMB will be soon made equivalent in Gold Trade Notes as Letters of Credit. Time will tell. GERMANS ARE FED UP WITH AMERICAN STRONGARMS So word is coming out slowly that German caught wind in 2011 of the USGovt plan to create a scorched earth firewall in Ukraine, and to disrupt European energy supply. The German reaction was to demand its gold account repatriation, in direct response to the ugly Ukraine plan. Motive and action, in clear terms. So word is coming out that the USGovt and UKGovt pressured the German Govt to suppress the data that demonstrated how the Kiev Regime shot down the Malaysian airliner, the orders coming from the Kiev ministry offices. The outraged Germans responded with a special FU, followed by more direct indications of working with Russia & China on non-USD alternatives. The German corporate interests are at odds with the banker & political fortress. The corporate interests will prevail. The Jackass scoffs at the shallow fallacious fecal flow from Skousen who argues as if Germany is a homogeneous entity. The shallow basis of such thought is laughable. Germany is divided between the banker & politician offices they control, versus the corportate chieftains who will defy the fascists on the other side of the wall. Corporate interests will work against policies that are would render great harm to the German Economy. The Germans have already decided to endure heavy bank system damage (even derivative events), as they turn their backs on the King Dollar Throne. They will trigger a banking collapse, probably after the USGovt makes a dreadful error in prosecuting Deutsche Bank in purely hypocritical fashion. The Germans will instead defend their economy, defend their industry, and defend their laborers, as they work constructively with the BRICS nations in the non-USD alternative. That term (non-USD alternative) is the catch phrase that means Gold Standard Return, which will happen on the trade side. The banking system side will follow like from a vicious trade tug on the choker leash around the dog’s financial neck. As footnote, the Chinese Yuan full convertibility delay is just another signal that other events might be more important, like Yuan conversion to Gold bullion. When it comes to priority, the converstion to Thai Bhat, Kiwi Dollar, Colombia Peso, and Indian Rupee for the Chinese Yuan (aka RMB) takes a back seat to conversion to Gold bullion. The Shanghai Free Trade Zone will fortify its several hundred corporate and industrial connections, and deal with the convertible Yuan over time. Another higher priority is the marriage (more like living together out of wedlock) between the Russian Ruble and Chinese Yuan. They will fortify their bond with vows during the construction of energy pipelines, laying of hands over the Holy Grail, despite marital arguments along the way kept private and out of view. ANTI-USD MOVEMENT GLOBAL The entire world is moving in the direction of firm position against the corrupted cancerous USDollar. The emerging market nations no longer wish to have their FOREX reserves undermined by QE activity that serves Wall Street with backdoor bond bailouts. The panorama of global economy players no longer wish to have their economies subjected to rising costs as a result of QE activity. The capital destruction is both predictable and palpable. In a sense the entire world is becoming BRICS Associate nations. Their cause is in common with preservation of savings and of capital structures. With each new assassination (see the Brazilian free commerce candidate murder probably done by Langley agents), the BRICS gain momentum and support. The entire world has a common set of motives to remove the King Dollar from its throne, and to install the Gold Standard for fairness, equitability, and stability. The refusal by US bankers, UK bankers, and EU bankers to liquidate the big insolvent banks after the 2008 shock wave has resulted in a grotesque wreckage of the global economy and massive destruction of capital structures. Either the pinhead economists cannot notice the capital destruction and lack of stimulus, or else they are brainwashed at the Keynes Car Wash. The reality will strike hard and fast, as the Petro-Dollar is dead and NATO is dead. Isolation comes to the United States, worse than the Jackass imagined back in 2012 when first described. GOLD & BONDS & BANKS AS WEAK LINKS Many strong competent analysts are openly engaged in speculation as to where the ultimate systemic breakdown will occur. It is very difficult to say. The three areas of extreme vulnerability are gold market, bond market, and banking system. Take your pick for initial open bust evidence. In the Jackass opinion, as soon as any one of the three sectors experiences a mild calamity, all three will suffer a quick contagion event. To be sure, the COMEX gold arena is hardly a market. To qualify as a market, they must deliver on gold & silver futures contracts. To qualify as a market, they must contain gold in inventory, rather than in spurious data and sudden GLD/SLV raids. Notice the regrettable depletion of the Scotia Mocatta gold hoard in Satan’s service with genuflection and kissing of the blood ring. The USTreasury Bond market is held together by QE brute force (almost no valid buyers) and the Interest Rate Swap derivative (to create phony bond demand). The evidence of broken market is the Failures to Deliver in USTBonds. The financial press prefers to mention it like part of a rabid demand for the USGovt debt securities (of Third World type), a certain contradiction. The reality is that Interest Rate Swap devices create artificial demand for USTBonds, which the big US banks scurry to meet in forced purchases, thus the observed Failures to Deliver. The only problem is that not bond supply enough exist, floating about in the traded open market. So a shortage is exposed, an embarrassment to the informed who observe the IRSwap machinery. Fortunately for the USDept Treasury crime bosses, the majority of financial professionals, fund managers, and bank analysts are morons to the derivative world. The big banks are nothing but tall hollow reeds which stand as banners to a past robustness that has long ago faded away. The natural consequence to outsourcing industry is for banks to lose equity. Nowadays, the big banks are derivative casinos. They are bond carry trade arenas. They are narco money laundering houses. They are hollow pillars of corruption. They are political control centers, along with some energy firms. ISOLATE THE WORLD A sick almost comedy is in progress. The USGovt plans to impose sanctions on any nation which intends to diversify away from USTreasury Bonds, or which intends to work toward a non-USD alternative, or which actively strives to install the Gold Standard, or which stands in the way of putting a ring fence around Russia (despite its 12 time zones, and dominant commodity supply chain). Any and every USGovt sanction initiative has backfired, blowing a hole in the chest of Uncle Sam, even blowing off his testicalia. The new Reformed Rubin Doctrine should read: if it does not work, double the volume. The original Rubin Doctrine still reads: wreck the future to win another year of status quo. No sanctions have succeeded as intended by design. All have resulted in the United States being painted as a nasty partner, identified as a warmonger, exposed for deep criminality, and seen as a fascist operator. The USGovt will succeed with a series of new sanctions in isolating the majority of world nations. In doing so, it will isolate itself. The Fascists attack their enemies, defraud their allies, protect their players, enslave their subjects, and wreck their economies, while waving the flag and intensifying controls. They wage war as a business plan, while raiding banks and stealing gold. They are the global criminal elite class. They must be ring fenced and expunged. CLIMAX NEAR WITH NEW AXIS EMERGENCE A climax is fast approaching. The USDollar is stuck in the implosion stage. Its many supporting structures are in simultaneous collapse. The paradox worth repeating is that the USDollar will rise and rise and rise, then vanish, as the United States must take its rightful place in the Third World. The USDollar will be rejected, the climax of its dismissal to come from the pain it causes. No nation can compete with the USDollar, as it is printed off the Weimar press by the US Federal Reserve, the oil burning, the screech audible from afar. The USGovt is left with no more options than war, since the financial front has been lost to insolvency, market interference, bond fraud, and leveraged corruption. The King Dollar has been wrecked, knocked off its throne, never to return to prestige. Emerging is the new Eastern Alliance based upon the three centers of Russia, China, and Germany. The Eurasian Trade Zone is coming into view. The SCO challenge is also becoming more visible, extending invitations to additional nations. Its original purpose of shared security and culture exchange have been made more broad. The difficult decisions must be made by Germany. It seems clear that a certain lip sevice is given by Berlin leaders to pacify and mollify the American Fascists, even the Brussels Fascists. They will continue to say the right words to WashingtonDC, Brussels, and London, while the corporate chieftains of Germany continue to spread commerce and the win/win formula to the Kremlin and Beijing. The arbiter of change must be the Bundesbank, the traditionally reliable, capable, respected manager of money. They are at odds with the despicable Draghi Euro Central Bank. The winner will be Gold & Silver, which will form the monetary basis of the BRICS alternative currency slowly taking shape. The winners will be Gold & Silver investors in bars & coins. The United States faces a liquidation in the near future, not the distant future. The US isolation will be incredibly painful, much like a viral quarantine. Its leaders seem busily importing viruses from Soros and Gates Labs in Africa. These are not investment labs or software labs. The Atlanta Center for Disease Control owns an Ebola patent, strangely, as though it might have a new improved fabricated version. Ugly times indeed. The United States will not host any RMB Hub site, and will not embrace any legitimate gold currency. What comes is the American Tragedy, a great leap from what Dreiser wrote about. Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at www.GoldenJackass.com n3tBin

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