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Geopolitical chaos procreating a chaotic leaderless world is sucking the literal life out of human hope. The tentacles of austerity measures and quantitative easing are the primary catalyst of all the madness. One way or another every government financier around the world is determined to cultivate the appearance that the good times are still rolling. The only problem is that the natural rate of failure refuses to participate in the economic facade. Fiat currencies’ purchasing power dwindles, the pounding drum beat of war beckons, and an open ended hegemonic polarity struggle for commodities ensues.
While serving as a member of the Board of Governors of the Federal Reserve System in 2002, current U.S. Federal Reserve Chairman Ben Bernanke gave the world a glimpse into the past, present, and future all at once. In his speech, entitled “Deflation: Making Sure ‘It’ Doesn’t Happen Here,” Ben Bernanke stated:
“Although a policy of intervening to affect the exchange value of the dollar is nowhere on the horizon today, it’s worth noting that there have been times when exchange rate policy has been an effective weapon against deflation. A striking example from U.S. history is Franklin Roosevelt’s 40 percent devaluation of the dollar against gold in 1933-34, enforced by a program of gold purchases and domestic money creation.”
Today the infamous 40 percent strikes again, as Cyprus agreed to the terms of a European Union bailout in which banks will seize 40 percent of uninsured bank depositors’ wealth.
Moody’s Investors Service was quoted in Bloomberg as saying, “The seizure of larger deposits may spark tensions with Russia, the source of an estimated $31 billion in holdings in Cypriot banks.”
Proxy wars have gone beyond the spectrum of arming rogue militants and allied nations in dispersed pockets of the globe, graduating to the realm of state sponsored economic terrorism. As “Gerald Celente” consistently and aptly states, “Currency wars + Trade Wars = Real Wars.”
All of the economic wheeling and dealing continues on as the “Arab Spring” explodes into a caballing year round inferno engulfing the entire Middle East. Daily at the United Nations, permanent Security Council members China, Russia, France, United Kingdom, and the United States spar over regional influence with each passing veto and resolution.
This is most apparent in Syria where Russia opposes any intervention as it struggles to prop up the government of its last remaining ally in the Mediterranean region. Russian naval forces stationed at Tartus, Syria may be the last line of repellent preventing NATO intervention.
The lines of frienemy engagement get blurrier with every passing engagement.
Simultaneously as the United States prepares to implement its own austerity measure policy that has carefully been repackaged and marketed to the public under the label sequestration, it is arming rebels in Syria. All claims of being in financial dire straits gets immediately lost within the noise of controlling key choke points around the globe.
One cannot forget less than two years after watching the Al Qaeda flag being proudly raised in the Libyan city of Benghazi, that America’s new found ally the Free Syrian Army are the protégés of Al Qaeda.
The life cycle of keyboards do not possess the durability to correctly and fully analyze threats posed by the uncontrollable Kim Jong Un ruled North Korea. The isolated peninsula nation even managed to startle its longtime ally China into voting in favor of U.N. Security Council resolution 2094. Chinese Foreign Ministry spokesman Qin Gang was quoted as saying;
“China supports the UN Security Council’s necessary and moderate response to the nuclear test of the Democratic People’s Republic of Korea (DPRK).”
Barely beyond two weeks later newly appointed Chinese President Xi Jinping, warned the West not to meddle in Syria’s civil war while on his first visit to Russia.
Not even the mythical country of Chimerica can rescue the too big to fail world from the natural rate of failure. Governments around the world are taking sides now under the cloak of every global economic and geopolitical conflict, because nations know that a hegemonic storm is coming with no evacuation routes or shelter in sight. Once more, honesty of time is proving that which cannot last forever won’t.
Image courtesy: European Parliament