The Truth about Ukraine – What it Means for the USA

If anyone wants to truly understand what’s happening in Ukraine from an insiders point of view, I highly recommend you first read a recent Armstrong post.

Ukraine-Lenin-protest

The common thread that runs through the conflicts occurring all over the world (i.e. Ukraine, Syria, Turkey, Thailand, Argentina, Venezuela, Southern Europe, the Arab Spring, etc.) is economics, as in declining living standards caused by government corruption and fraud, that also is producing the economic death spiral – more appropriately called The Black Hole of Govt. If our political establishment is not ejected from every seat, then these same conflicts are headed our way. Do you think Obama’s crackdown on free Press, and increase in Constitution-bypassing Executive Orders are just coincidences? Why is it our media has yet to utter the words “corruption” or “economics” when discussing the cause of the conflict? It couldn’t be because they are scared to death of the message reverberating out of Ukraine, now could it?

Who thinks that the people of Ukraine and elsewhere one day woke up and decided to throw caution to the wind and go fight their govt with sticks and stones? The corruption caused by excessive govt power takes decades for people to reach their breaking point. This breaking point is always caused by a declining economy that has been choked off by govt largess, and capital fleeing for safer jurisdictions. Ukrainian protesters are mostly college educated, who can’t find a job and are seeing their dreams go up in smoke. Is this starting to sound familiar?

As economies and tax receipts contract, govt’s become paranoid and digs in their heels to collect the necessary funds to maintain their jobs, perks, and power (i.e. the NSA is about hunting down money, not terrorists). Because they can never admit fault, govt always raises taxes, fees, installs red-light cameras with reduced yellow-light times, etc. to fund their budgets at all cost. These draconian tactics, which takes money out of the pockets of citizens, further contracts the economy, thus producing the economic death spiral that produces violent protest, and eventually war. It’s always more convenient to point the finger at someone else instead of yourself. Wait and see what happens here when the municipal defaults spread nationwide and pensions are vaporized like in Detroit, Stockton, and Jefferson County!

The brave citizens of Ukraine, Venezuelaand elsewhere are trying to do what is also an imperative in the US – throwing the bums out on their ears! Unlike all of the countries around the world that are facing violent conflicts, the US has been able to avoid the same economic hardships because we have the world’s reserve currency and can print what ever was required to pay the bills, exporting most of the inflation overseas. This reserve currency safety-net is in the latter innings due to distrust, the lack of confidence in our ability to pay back the debt with un-inflated dollars, and the lack of return due to fraudulently suppressed interest rates.

These factors have resulted in foreign countries bypassing the dollar in their transactions and finding other assets in which to park their reserves. There is not an immediate reserve alternative to the dollar’s bond market, but China and the IMF are preparing SDR’s as the next reserve, which will have a lower dollar weighting and a higher Yuan weighting. This reduction in dollar hegemony will “level the playing field” by weakening the US economy for the benefit of Emerging Economies. This “Great Reset” comes after the “Great Leveling”, which will become obvious after the consequences of the “Great Flush” of 2008 completes. Remember, the uber-wealthy have no allegiance to any country. They believe the world is truly their oyster, or piece of clay to manipulate for their benefit.

Ever since the 2008 collapse, the level of fraud in the US has been escalating off the charts. While the credit/debt Ponzi started in earnest back in the 80’s after Nixon took us completely off the gold standard, the exponential rise in corruption and fraud did not start until the consequences of all the credit creation started to be exposed with the popping of the dot.com bubble in 2000 (which required ever greater funny-money to fill voids on bank balance sheets).

The fraud of WMDs in Iraq was a huge warning of the extent to which govt will go to impose its will; and the govt-enabled fraud before, during, and after the subprime crisis should have left no doubt how far we have fallen. The NSA spying, Fast & Furious, Obamacare, Executive Orders that ignore the Constitution, Benghazi, Syria, the IRS tactics with the Tea-Party groups, etc., etc., are all straws of corruption that will eventually break the back of the US camel.

Ukraine_Piplines

The outcome in Syria and Ukraine will provide a good tell as to whether the reformation of the Union of Soviet Socialist Republics (USSR) is on track. Russian and European interest in Ukraine is the same as in Syria, gas pipelines that flow from east to west. He who controls the pipelines controls Europe. In Syria, when Obama drew the line in the sand, Putin gave him an out. Now, Obama has thrown down the gauntlet once again. This time in Ukraine. Will Putin be as accommodating this time around? I doubt it, like I doubt the agreement with protesters will produce a peaceful resolution. Protesters demand that Yanukovych step down, which has about as much of a chance as Obama stepping down. However, with Parliament and the police increasingly siding with the protesters, the ball is back in Yanukovych’s court. If he truly cared about his country, he would be well advised to negotiate a separation of the country along idealistic lines before the economic contraction and capital flight forces a national default that spreads to the other embattled countries.

The inability of the West to enforce their will in these two conflicts could prove that Russia’s power and influence is growing.  It could also mean that Europe’s core (Germany) is willing to look the other way to insure energy keeps flowing from Russia. If the US decides to support Russia’s energy competitor, Saudi Arabia, and backs military action in Ukraine, then the probability for World War III looks ominous. You’ll know this is the direction we’re headed when you start seeing the protesters suddenly brandishing guns and rocket launchers instead of bricks and Molotov cocktail’s.

The other factor that must be considered is that the Eurocrats need greater hardship for the citizens of Europe so they beg for debt consolidation. It would seem that the outcome that favors a new USSR, also favors the transformation of the EU (European Union) into the Union of European Socialist Republics (UESR).

Most insulated American’s do not understand the flawed structure of the Euro, or how the asset stripping model was utilized by the US in places like Indonesia, South America, Africa, and the Middle East. Without this understanding and background, it is difficult for many to wrap their minds around such evil intents, which is why it is easy for the captured media to paint a non-believable conspiratorial picture. Let’s take a few minutes to take a step back and look at the actual picture being formed by the puzzle pieces already in place so we can recognize the other pieces as they are played.

The first fact that must be understood is how the “asset stripping” model works and has been employed in the past, and how it is currently being used in Europe and the US. Historically, the resources that were needed to grow a nation were acquired by invading other countries that held the coveted assets. England demonstrated that colonization was an improvement over military invasion, but it too was proven to be economically unsustainable. Anyone that had an asset confiscated due to excessive debt and leverage after the economy cratered understands the latest model for stripping assets. US financiers perfected the model after years of success in resource rich countries around the world, and with so much money to be made there was no room for conscious decisions when they turned the model loose on European citizens, and yes, their fellow citizens.

How does the model work? It’s actually quite simple. Overburden a country (or person) with debt, and when the debt cannot be repaid, confiscate the asset that was pledged as collateral. Getting a country to take on excessive debt is not as easy as a consumer inundated with propaganda telling them they are untitled to a three-car garage, remodeled kitchen, and new car every three years. To get a country to take on too much debt requires the services of an “Economic Hit Man”, who intentionally over-estimates economic output from the exploitation of the asset (oil, timber, copper, etc.) in order to qualify the country for excessive loans from the World Bank and IMF. When the loans eventually cannot be repaid, the asset and/or favor is called.

When a particular politician cannot be bribed or blackmailed into selling-out its citizens, then the Jackal’s (i.e. CIA) are sent in to organize a coup or even order an assassination if necessary. It’s when a political leader understands how the asset stripping model is played, and protects themselves from takeover and assassination, that the US resorts to sending in the military. Regardless of which tactic is required, the end result is the citizens in emerging countries are sacrificed and further impoverished. If you want to understand where this asset stripping model has been most successful, look to where the citizens have been protesting and suppressed the most. Necessity may be the mother of invention, but it’s also a driver behind the need to immigrate.

The application of the model in the euro-zone was slightly different, but no less effective. When the more Socialist leaning countries in Europe were trying to qualify for euro entry, it became necessary to hide their debt. Enter the money-changers again, with what Warren Buffett called, “weapons of financial mass destruction”. Goldman Sachs, JP Morgan, and other big banks sold derivatives, that theoretically offset the debt risk, and through creative accounting “allowed” countries like Greece, Spain, and Portugal to hide their debt so they could meet the requirements for entry into the euro (and access to lower interest loans they could not otherwise attain). Since the debt never actually disappeared, when the economic tide went out, the fraudulent derivative-linked debt was the convenient excuse for implementing the austerity measures that sacrificed the citizens so the huge debts could be repaid. After cutting promised services and sucking out as much tax revenue as possible, the countries assets are simply taken over by the banking cartel. This tactic has been ongoing in Europe for several years, and will continue until the citizens are desperate enough to give up their sovereignty.

PBS_FRONTLINE

US citizens should not be ignorant to these tactics, for it is exactly what happened in Orange County back in 1994, Long Term Capital Management in 1998, and Enron in 2001. Brooksley Born tried to warn everyone about the harm that would be caused by the unregulated derivatives market, which now has a notional value over $1 QUADRILLION, around 16-times the size of the WORLD’s economy. With so much money and bonuses to be made, nothing has been done about the derivatives time bomb, with Too Big To Fail the current excuse to extort money from citizens until the bomb explodes. In the meantime, the 99% get more desperate, and those in power think they will remain in power after the debt/derivative crisis. Call it Karma, or “useful idiots” getting their just desserts, but many politicians, banksters, and media personnel will not fare as well as they think. For example, seven (7) bankers have mysteriously turned up dead in the last few weeks. Some believe it’s part of a conspiracy to cover up crimes, since several of the diseased worked for the biggest bankster bank, JP Morgan. I doubt this is the case, since the banksters know their crimes never get prosecuted.  The more likely scenario is the nerve-racking pressure to maintain profits after the banking sector peaked due to the plug being pulled on prop trading, trading volume still at half the 2007 highs, and depositors pulling money out of banks in favor of safer, more productive assets.

The rule of law is extinct in America, so one should not be surprised when capital seeks safer havens. If we don’t throw all the bums out of Congress and impose term limits, then our future will continue to be determined by captured politicians, whose interest and prosperity are aligned with the military industrial complex and the financial industry that finances the reconstruction of the destruction they create.

This insidious business model sacrifices the lives of our military personnel, who must enforce the model; and the standard of living of civilians, who sacrifice their purchasing power and net income. Through fraudulent, self-serving monetary and fiscal policy, coupled with asset stripping models that enrich big corporations and subservient politicians, the world is being made into a much more dangerous, and less prosperous place. If the Eurocrats are successful in forming the UESR and Putin is successful at reconstituting the USSR, can the USSA (United Socialist States of America) be far behind? The one difference is in the US it’s citizens still have the right to bear arms, for now.  If US citizens continue to consent to the will of corrupt politicians, then the economy, freedoms and the rule of law will continue to deteriorate (now down to #46 in the Freedom Index, behind Romania), and along with it the necessary capital formation required for prosperity.

“Countries that pride themselves on being democracies and respecting the rule of law have not set an example, far from it”

Blow-out-the-Lamp

We can’t permit the flame of freedom to be extinguished in the US, which would produce the same socioeconomic conditions that exists for the 99% in China, and the coming USSR and UESR.  It may sound too idealistic, but the citizens of the world must unite against their oppressive govt’s. The Internet makes education and sharing much easier, but people still must deny consent against govt corruption and overreach at every possible opportunity. It would be inspiring to see people respond to plea’s for support in Ukraine, if for no other reason than to get practice for dealing with their own repressive govt’s.

It would be helpful if the politicians and banksters understood their history and recognized that they will be targets when the citizens go looking for revenge. Prejudice has many friends when scapegoats are needed, and the fact that more Jews are fleeing anti-Semitism than at anytime in the last century is an indication that scapegoats are being sought. People must not only resist generalizations and scrutinize the allegations, but the people making the allegations need to be put under microscopes, because they are likely the ones stirring the pot of war.

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