Anglo-American Hegemony, Currency War, Economic Collapse And The Spiral Downward Toward Abject Poverty!

• The Anglo-American western Illuminist hegemony is fighting a last gasp battle to stave off defeat. Much is hidden in deception. My observation is that they are remaking their hegemony and expanding it. The expansion is via financial conquest and destabilization of the world via economic collapse, famine and finally world war 3! This will not end well for humanity.
   
  The Currency War Promotion
  The Group of 20 nations must take the lead to prevent a global “currency war” in which each country tries to weaken its currency at the expense of others, South African Finance Minister Pravin Gordhan said. … “Everybody would want to depreciate their currency, everybody wants to export their way out of trouble,” … Unless the G20 gets “the major players to sit around the table and find a spirit of cooperation and generosity and give and take,” we are heading for a “currency war,” he said. – Bloomberg
   
  Dominant Social Theme: It is a spiral downward toward abject poverty and North-Korean style dirigisme.
  Free-Market Analysis: We have watched the building “currency war” with interest. Warnings are certainly placing the onus of responsibility on the G20 and the International Monetary Fund, both of which have somehow emerged as key players in an effort to ameliorate the worst excesses of the “war” for the sake of the global community and the general prosperity of all. Sub dominant social theme: “Our prosperity is totally in the hands of the wise men populating the G20 and the IMF; these two institutions are, in fact, the last and best hope for humankind, which is gradually circling down the drain.”
   
  What is the “currency war” as we understand it? The United States, which owns the world’s reserve currency, the dollar (rapidly fading) is continuing to print money by the bucket-load to try to stimulate its economy. The economy cannot be stimulated because after a century of central banking price-fixing (all that interest-rate setting, etc. really is) the American economy is terminally distorted.
   
  Government itself is probably the largest bubble and after that comes the banking industry and then corporate America. By propping up certain industries with cash and not letting them fail, the American government has made it impossible for the private sector to figure out what is a viable company and business and what is not. Thus, banks are not lending and people are not borrowing even two years into the “financial crisis.”
   
  As we have pointed out endlessly the financial crisis is not merely another cyclical recession (or even depression). The current economic difficulties stem from the implosion of the current, unanchored fiat-money system of the late 20th and early 21st century. The system essentially ended in 2008 and only hyperactive central bank money printing and enormous cash infusions into ruined banking entities managed to prop it. (This goes for Europe as well as America.) Without the price fixing by central banks, the system would have fallen apart, literally. It has held together, but that does not mean it is healthy. It is like a terminally injured patient on life support. It will die. It just depends on when the plug is pulled.
   
  Nonetheless, the United States continues to try to prop up what is essentially a moribund system. Because of the systemic distortion, no matter how much money the US prints, the economy itself will not respond. It cannot. This means that the money that does manage to circulate finds its way into the US stock market and speculation abroad as well. Other countries are printing too much money as well, and this has caused a generalized commodity boom.
   
  Yes, despite the so-called bond bubble, individual investors may be most enthusiastic about certain stocks and in farmland, real estate, commodities and precious metals. Thus we can see that the endless money printing is causing a global speculative bubble while not helping with the “real” economy at all. What the US (and the West generally) needs to do is to allow governmental, banking and industrial bubbles to collapse, even if this means the end of the economic system as we know it.
   
  This, unfortunately, the powers-that-be probably will not do. But this does not mean the collapse will not come. It will come, sooner or later. The free market itself is impossible to circumvent long term. What the Anglo-American power elite is fighting to do is to prolong the decline and fall of the current system so as to ease the West into a new system, presumably one based on SDRs, an IMF bancor, or even a controllable gold standard. This seems their hope, faint as it is.
   
  The longer it takes, the angrier people get. This is why the power elite seems to be contemplating the possibility of civil violence and military control measures. But essentially this is a faint hope too. It is impossible to control an enraged and enlightened populace. People have been enraged by the failure of the current system and they have been enlightened (increasingly) by the truth-telling of the Internet. This is a noxious combination for the power elite and its continued short-term domination of the levers of wealth and power.
   
  The leaders of other countries that have long enjoyed a wealth splurge courtesy of the US reserve dollar are getting upset too. Because the money being printed by the Fed is not circulating in the US’s own terminally damaged economy, it is flowing abroad. Dollars are pouring into first and third world countries and this torrent of dollars is essentially a dollar-devaluation. Thus, countries like Brazil, India, Japan, etc. are faced with dollar inflation, which inevitably makes their own currencies more expensive.
   
  These currencies, now ever-more expensive, make it increasingly more difficult to export goods and services, especially to the United States. Out of self-defense, countries like Japan have begun to buy dollars to sop up the excess liquidity. But this causes resentment too. It is expensive to buy dollars and once again the world is forced to dance to the tune of the United States. Only world leaders are well aware that in this case, buying dollars is not really the answer. The US economy may take another 10 years to readjust because the Anglo-American power elite show no inclination to allow the distortions of elite banking and industrial complexes to subside. They will be propped up no matter what.
   
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