Jim Willie: The Greatest Self-Inflicted Gunshot Wound in 2,000 Years!

by Jim Willie, via Silver Doctors.com: 

It is very difficult to find a foreign policy deployed by the United States Govt that has been successful in recent years. In fact, almost all aggressive foreign policy initiatives have resulted in profound losses either in financial strategic position or in alliances with previous staid allied nations. They have almost uniformly backfired, while bravado has mixed with stupidity, while arrogance has blended with futility.

The USGovt without giving it thought, appears to be acting in reckless manner toward losing its entire set of advantages from a century. The nation has become hollowed out industrially by outsourcing, defrauded in housing mortgages, undermined in banks by derivatives, contaminated in USTreasury Bonds by the wildly applauded QE bond purchase wreckage, tarnished by exported terrorism, tainted by prevalent espionage, and shamed by reliance upon war to defend the USDollar. The US is fast becoming recognized as a rogue nations, but worse, as a nation with stupid leadership.

The more aggressive the leadership led by the Manchurian sock puppet plus stage entourage and legion of legislators bound by bank donations, the more rapid the failures, the more rapid the development of USD workarounds, the more rapid the frayed lines to allies, the more rapid the isolation of a once great nation, the more rapid the systemic failure. Witness the climax of the Fascist Business Model, which almost no other analyst seems to emphasize or notice. The effect of fascism upon the financial platforms and economic structure has been profoundly negative.

Like all fascist regimes, the attacks are directed to enemies first in direct thefts, then to allies in frauds recognized later, finally to the citizens in hidden pilferage and lost rights. The result is always the same, except for the rhyme of its ruin. The implosion is as loud as the escape flights for leaders, along with their protected off-shore accounts.

USDOLLAR HOISTED ON ITS OWN PETARD

The reaction of global USDollar rejection in response to Quantitative Easing, otherwise known as hyper monetary inflation, will go down in US history, even world history, as the greatest self-inflicted gunshot wound the head and chest in two thousand years.

Yet the clowns residing at the high priest post, along with the minions of genuflecting obsequious squires, call it stimulus. They see bond support and stock lifts, but little else. Even corporations have chosen stock buybacks over business investment, following the Pied Piper at the USFed. The nation is rotting completely. The QE has stimulated global economic collapse with the USFed pulling the plug on the global monetary fiat toilet paper system known as the FOREX currencies. The USDollar will be relegated to the dustbin. It is rising and rising, soon to vanish due to active avoidance followed by universal rejection. The USTreasury Bond market will be reduced to a gigantic circle jerk with high priests cheering the festivities as high frequency algorithm trading has given way to the USFed playing the music and moving the chairs, even holding the hands of the players. Musical chairs is fast becoming Russian Roulette. The banker elite has shot the nation in the head, but few have noticed.

A final End Game has begun. The current stage is the global rejection of the USDollar, the once respected revered and resilient currency which has in recent years fallen on its own Third World sword. QE is a Third World monetary policy, plainly stated. What remains is the loss of the most prestigious of the nation’s calling card, the USD as global reserve currency.

By coercion, threats, and brute force, the USD remains accepted as pristine asset in the banking systems, but not for long. Its widespread usage in Indirect Exchange, the practice of dumping USTBonds in asset purchases, signals a much broader divestiture in the future whereby major nations of the world disgorge their bonds sitting in bank reserve systems. They are fast turning toxic. Their toxicity is being reinforced by the QE official monetary policy, the Final Solution for managing debts and war on a credit line. QE is a poison gas to capital itself. For a generation, economics courses taught that hyper monetary inflation is a scourge, a grand wrecking ball, but when the United States deploys it, somehow it is positive stimulus. Rubbish! Witness Pox Americana, with celebrated inflation, with labor outsourcing, with consumer driven economy, with permitted banker fraud, and with endless war.

The toxic backfire has hit Emerging Market nations squarely. The rising USD exchange rate has inflicted enormous sudden hardship on many developing nations. While the moron at the USDept Treasury post Jacob Lew pounds his proud chest on the supposed strength of the USDollar being good for the nation, the opposite is true both for the United States and foreign nations. The high USD valuation stands as a guillotine for the nation. The USEconomy loses attractiveness for its stock market shares, for its property (both residential and commercial), and for its business output for export destinations. Is Lew that stupid? No, just corrupt intellectually. The pain extends to emerging market nations, whose debt burden has suddenly risen by 20% or more. Another advantage, Jacob the Buffoon? Since 2009, the world has taken advantage of the ultra-low rates to rack up cheap debt. It was a trap, and the trap has closed. Expect some rather big stories very soon on defaulted debt. Expect some big bank failures, not just from Greek Govt debt, or other Southern European government debt to follow, but from Emerging Market debt default. They are reeling.

The USGovt cannot finance its annual deficits. So like any Third World nation, it prints money to cover the debt. The USD must be defended by war. But the actions prompt redoubled efforts to escape the USD clutches. So like any Two-Bit Fascist nation, it wages war on all parties choosing to eschew the currency with public disdain. Refer to both avoidance for trade purposes and diversification for bank reserve purposes. Few US citizens (none solicited by the Jackass so far) have shown the slightest awareness that when the USTreasurys are no longer desired in foreign banking systems, that what follows is their rejection as payment for US imports. They tend to make zero connection between the foreign bank reserves system, using the global reserve currency, and the payment system for trade settlement. In fact, almost no US citizens contacted comprehend what it means for the USD to be used as global reserve. They think only in terms of a home base currency, which happens to appear in foreign shops often. When foreign suppliers refuse the USTBonds, then comes the requirement for the USGovt to launch a new currency which will be accepted in trade payment, but only after some devaluations most assuredly to come in a painful sequence. Only then will the shock hit home, to be sure with propaganda and blame laid with Russia, China, and Arabs. My guess is that the majority of US sheeple will swallow the propaganda whole, like legions of dimwits. A small portion will lay blame at the bankers and politicians, correctly so.

BACKFIRE OF FOREIGN POLICY

The failed policies inflicted upon enemy states have grown in a long list. None are successful, all dismal failures, each implemented with hostility, bravado, and unveiled arrogance. No analysis seems to take place on a failed policy, when the next failed policy is put into place. The nation is a true exception, replete with corruption, war proclivity, and amateurish policy. Whenever the Jackass observes sanctions or a war, the immediate reaction is to search for the next significant loss in strategic position on the geopolitical stage. As preface, in the wake of the Lehman killjob to save Goldman Sachs in September 2008, the US bank leaders, even corporate leaders, were given the cold shoulder at best and formally shunned at worst. The news handed down by the Voice was that US leaders in both government and corporate posts were not given return phone calls by European counterpart leaders. The concept in my mind was born of isolation, which would grow in huge horrible horrendous ways in a rapidly growing pace. With each stumble, with each new recognized bond fraud, with each new imposed failed sanctions, with each new waged war, with each new broken treaty, the United States would be further isolated in the community of nations. It can be safely stated that anything the Washington crew touches turns to shit, and any ally approached turns to the East, all in time. Given the recent track record of failures, it is hard to dismiss claims that the US national leadership is attempting to scuttle the nation in order to cause a systemic failure. A certain lust for totalitarian rule wafts through the Beltway, and has been for a few years. The Rubin Doctrine has run out of time, as no more time can be bought. All systems are breaking in the open. The road has narrowed. The can has turned nuclear. The kicked can has crumbled.

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