Settle in kids, it’s time for a story about fiat currency.
The best explanation for this concept is given in The Creature from Jekyll Island. In a typical, national fiat currency the “trustworthiness” is backed by the government, hence the name. If you don’t accept Caesar’s coin, Caesar’s troops show up and make your life difficult. Thus, you have a reasonable expectation that other buyers and sellers will also accept Caesar’s coin, and the trustworthiness of the coin is created magically.
The trouble is that political leaders have an extreme incentive to engage in currency debasement (this is the main thrust of Griffin’s book). There really isn’t any economic or political reason not to inflate if they want to. It’s free money, which can be used to extract resources or buy power by giving bread and circuses to the peasants. And whoever debases the currency gets to spend it with full purchasing power, before prices adjust. That’s why counterfeiting is illegal unless you’re the government, in which case it’s monetarism.
Therefore, national fiat currencies typically inflate to worthlessness as insular elites buy up all the national resources, and everybody else goes into debt. This necessitates a revolution! Here’s the ingenious part: in order to finance a revolution, you need a new form of currency. Some revolutionary leaders like Thomas Jefferson and Jefferson Davis have low opinions of fiat currency because they got screwed under the old boss. But they quickly learn that soldiers are less interested in liberty than bread. Especially when their families at home are starving. What’s the point in defending the South against Union troops if your family can’t buy bread? This means you can create a new fiat during a war and use it to pay your soldiers.
So you have to introduce the new currency anyway, or else you lose the war. And of course it’s printed and enforced by fiat, new boss same as the old boss. So that’s national fiat currencies are created through civil conflict as the misery index rises. The problem (inflation) begets the solution (war). Like I said, it’s ingenious in a devilish sort of way.
What we have in the modern world is a GLOBAL fiat currency, commonly called the petrodollar. Those who are invested in its fiat enforcement and continual debasement are located in New York, London, Israel, and Saudi Arabia, for the most part. So you have this alliance of elites extorting wealth from the rest of the world, using America’s overwhelming military power to enforce the fiat. There is a major difference from typical fiat currencies in that we only care if people buy oil in dollars, because energy is the only resource of geopolitical consequence in industrial and post-industrial countries.
Anyway, this is why America has sustained a giant trade deficit: we export military aggression and extract resources through currency manipulation. Anyone who tries to defect from this alliance gets a sudden case of democracy: Libya, Egypt, Iraq, Ukraine, etc.
Now, the problem is that everyone knows the dollar is not long for this world.
That means you need to start setting up the replacement. According to glosoli, and I believe him, the PLAN is (was) to use the Euro under the direction of the BIS and ECB. In the absence of America’s military, who enforces the resource extraction for TPTB? Europe is entirely dependent on Russian energy imports. Those pipelines already exist, and the Holodomor teaches us that Russia doesn’t mind turning the valves to suit their own interests. In addition to this, most of Europe is fed up with American aggression. They want the New Boss.
So if the dollar crashes, Russia can sell gas to Europe in rubles. Or if they like, yuan or yen. (Ulric thinks yen.) With this, the American economy (i.e. trade deficit) is no more. We all get a lot poorer. Hopefully those of us who are already poorer recover in the absence of the elites, but who knows. Interesting times, very dangerous. So…what this comes down to is that if the current world order is going to maintain their grip, they need to create an alternative energy source for Europe before the dollar crashes. The alternative is the loss of the empire and all its power, influence, and wealth.
This naturally brings us to the Qatar-Europe pipeline. TPTB are financing a massive pipeline to carry oil from the Arabian peninsula to Europe via Turkey. In order to build this, it has to pass through Iraq, Syria, and Turkey. And amusingly, if you want to save money you have to go straight through Aleppo to cut the corner around the Mediterranean.
Hence, the war in Iraq, the “civil” war in Syria, and the coup attempt in Turkey.
As far as I can tell, American intelligence agencies have been playing on both sides of all these conflicts (it’s particularly obvious in Syria and Turkey). There’s a great deal of confusion in our military operations because there’s a difference of opinion at the strategic level.
On the one hand you have those we can roughly describe as “right-wing”, who would prefer that America pass the torch semi-gracefully and cease with the empire-building. This wing of the struggle is already aligned with Russia in their hearts. Probably the secular Turkish officers who instigated the coup were on this side. On the other hand you have the “left-wing”, who would prefer to sacrifice America entirely in order to maintain financial control. The “rebels” in Syria are mercenaries working for these folks.
I think the leftist contingent fears a preference cascade more than anything because a lot of the players technically allied with the Bank of London are actually neutral, and just want to buy and sell oil. I suspect the Saudis fall in that camp.
This is why it’s such a big deal that Duterte told America and the Jews to fuck off, and then nothing bad happened to him. This emboldens others who are disenchanted with the current world order to do likewise, and the more who defect the higher the incentive is to defect from the old world order economy and enter the new world order economy. Hence, a preference cascade.
And that, in a nutshell, is why it’s such a big deal that the right-wing Trump has the mandate of heaven, and crooked Hillary does not.
H/T to G. Edward Griffin, Nate from Vox Popoli, glosoli from Altrugenics, and my magic neanderbrain for putting it all together. If you liked this, leave a comment and/or give me a dollar. Why spend $5 on a cappuccino when you can buy me a $5 cappuccino instead?