US Dollar Hegemony Over China and Russia
Currencies / US Dollar May 30, 2009 - 11:59 AM GMTBy: Global_Research
Bob Chapman writes:
The Chinese and Russians are the laughing stock of the US and European Illuminists at the G-20 meetings concerning talk about a new world reserve currency to supplant the dollar. With China's gold reserves of about a thousand tons and Russia's five hundred tons, they are like penny ante poker players trying to get in on a thousand dollar ante game. They need five to ten thousand tons of gold reserves just to be an average player in "The Big Game," much less a leading and influential player. The rest of their foreign exchange reserves are denominated in fiat currencies, which are all practically worthless except for the euro and Swiss franc.
The euro has about 5% backing of gold and the Swiss could have 25% backing if they again desired gold backing. China has about two trillion dollars worth of foreign exchange reserves, while Russia has about 400 billion dollars worth. It does not take a math genius to figure out that two trillion times nothing is still nothing. They are creditors who hold worthless bonds and notes. Big deal. Their only trump card is that they can make gold skyrocket and the dollar tank before the Illuminists are ready to take our financial system down. This is where their real leverage lies.
The talk about yuan and rubles as part of a world currency basket is just noise, like a bunch of clanging cymbals making cacophonous sounds, because they have very little gold backing. At best, unless China and Russia add many thousands of tons of gold to their reserves to back up their currencies, the yuan and ruble will get some regional play, as a run-up to a world currency. This is just hubris to distract us from the true agenda, which is the formation of a single world currency.
While gold suppression is the Fed and the US Illuminists' number one priority, it is not their number one problem. So what is their primary problem? It is how to transition from the dollar to a world currency without losing too much of the powers and privileges that can only be attained by having sole control over the world's reserve currency. They can't figure out how to share this power with the other Illuminist enclaves in setting up a new world currency without substantially reducing their own power. This is a conundrum for them.
China and Russia are both well aware that they must acquire substantially more gold if they want to have any say on the matter of a world currency. The trick is, how to acquire new gold reserves without sending gold on a moon-shot or causing harm to the dollar by dumping dollars for gold. This is the opposite of what the Fed and US Treasury want, at least for now, until they are ready to take the system down to pave the way for a world currency and a one world government. So the Chinese and Russians are now at loggerheads with the US and European Illuminists. What China and Russia need to do in their own best interests is an anathema to the Fed and the US Treasury. This may explain the IMF gold sale rumors. China wants more gold, and this would be a way to grab a large chunk without running the gold price up, which would make the Fed go ballistic.
The US and European Illuminists are also in a cat fight, because the European enclave controls more gold than the US elitists, so naturally they do not believe that the system of dollar hegemony, and all the privileges that go with it, should be continued any longer
You might be tempted to think that, in reality, the US gold reserves and, for that matter, central bank gold reserves around the world, are not what the central banks claim them to be, due to leasing and outright sales, so the US and European Illuminists are in no better position than the Chinese and Russians with respect to the debate about a new world reserve currency. You would be dead wrong if you thought that. Why, you might ask? Let's discuss that.
Never mind that the roughly eight thousand tons of US gold is stolen or hypothecated, because the US and European Illuminists stole a large portion of it, or they bought it at fire-sale prices and still have it in their secret vaults in Switzerland and off-shore in safe-haven countries. Who do you think was doing all the buying during the London Gold Pool of the late 1960's, just for starters, which was fueled by Fort Knox gold provided courtesy of President Johnson, who was an elitist bootlicker and one of the most evil men of the 20th century? Why do you think US coin melt from the Depression is showing up in London gold vaults? Rumors still abound that the Rockefellers, with President Johnson's help, stole a large portion of the Fort Knox gold during the London Gold Pool days, and those rumors could well be true based on what we have heard from some of our subscribers who used to work at Fort Knox. Could that explain why one of Rockefeller's secretaries, who blabbed about them acquiring some of the US gold, "accidentally" fell out of a high rise building? Could it be that President Johnson was grateful for Rockefeller's help in eliminating the pesky President Kennedy when he tried to put their precious Fed out of business via Executive order 11110? We'll let our subscribers decide!
The same is true for the European gold holdings and the holdings of other central banks around the world, which are a fraction of what they claim, perhaps with as little as five thousand tons remaining out of some thirty thousand tons officially claimed by all central banks, including the privately owned US central bank, the Fed, via its so-called gold certificates, which are claims on the US Treasury gold. Rest assured that much of this gold was leased out and sold not just to jewelers, but to the US and European Illuminists as well. In addition, much of this central bank gold was either pilfered outright, or was virtually given away by people like Gordon Brown of England, the King of Fire-Sale Gold, who sold half of the UK national gold reserves to the Rothschilds and other Illuminists at the bottom of the gold market. The remainder of the UK gold reserves is probably leased out and gone to oblivion like the US gold. The people in the UK are minus eight billion and counting on that one, while the Rothschilds are on the plus side of that equation.
And who do you think were buying a large portion of the gold sold under the Washington Agreement and its various renewals? We'll give you three guesses.
And who owns all the secret gold that has been stolen in various wars, conquests, pogroms, genocides and religious inquisitions over the many centuries, that don't show up in the World Gold Council's figures? And who owns all the scrap gold that was melted down in the last gold craze of the late 1970's and early 1980's for which no records were kept? And who owns all the old investment gold held by families of old wealth that was secretly moved from the US to Europe after the Great Depression on a tip-off from FDR that he was going to render gold ownership illegal in the US. They got a nice profit when FDR bumped the gold price from $20 an ounce to $35 dollars an ounce, didn't they? Who owns all this unaccounted for gold. Again, we'll give you three guesses. We can assure you that it is more than the 2% unaccounted for by the World Gold Council.
Then there is the 26,500 tons of gold which the World Gold council allocates to private investment. Just who do you think most of those private investors are anyway? They are US and European Illuminists, that's who. They own tens of thousands of tons. Either they own it, or their central banks own it. The US and European Illuminists can shuffle their gold back and forth between themselves and their central banks as they see fit, since none of them are ever meaningfully audited. So if the Chinese and Russians want to play in this high stakes game, they need to buy lots of gold, and very quickly. The window of opportunity to buy gold on the cheap has already closed. Hyperinflation is on its way. They are too late to the cheap gold party. Buy gold now, before China and Russia try to accrue the amount of the gold required to ante up in "The Big Game" so they can have a say on the new world economy that will emerge in the aftermath of the current catastrophe.
China is caught in a dollar trap. If they try to unload dollars, they destroy the remainder of their holdings, so they have to keep vacuuming up a large portion of the dollars that are being dumped in the form of treasury bonds to support criminal zombie bank bailouts and rampant socialistic welfare spending which the US government euphemistically calls a stimulus package. If China doesn't keep sucking up dollars, the US will have to monetize more and more treasury bonds to "save the economy," which is another euphemism for the socialization of Wall Streets losses courtesy of the US taxpayer. The top 19 banks, including the legacy banks, get all the money they want to shore up balance sheets and to take over the smaller fry, while the smaller fry get nothing, not even loans from the larger criminal zombie institutions who can't wait until they fail so they can absorb them at pennies on the dollar. The Fed now determines which financial institutions live or die by bestowing taxpayer largesse on who they may, but heaven forbid that they should have to account for what they are doing with that largesse. We need to audit and end the Fed, just as Ron Paul has requested via new legislation that is getting ever more sponsors.
China and Russia are in a very poor position monetarily, at least as bad as Europe and the US, perhaps even worse. They have no business pushing their weight around when they their gold reserve holdings are inconsequential. So what if they are creditors. The debts owed to them are denominated mostly, or at least substantially, in dollars, which are becoming ever more worthless as Emperor Obama throws lavish dollar bailout parties for the rich bankers and the social welfare recipients, while the middle class and non-anointed upper class, which could reduce the ensuing inflation caused by these lavish dollar parties via increased production, are given token relief.
China has tens of millions of young men out of work, and if the US dollar, US treasuries and US economy go down, and inflation shows its ugly head due to dollar dumping and/or US treasury-shunning, we can assure you that the US consumers' demand for Chinese goods will drop off a cliff. You haven't seen anything yet when it comes to reductions in consumer demand. Wait until hyperinflation and double digit interest rates hammer the world economy. When the US consumer finally goes south for the last time, this will put tens of millions more out of work in China, and there will be violence and revolution if that happens. De-coupling is a myth that has been thoroughly shattered.
While China is in a dollar trap, Russia is in an oil trap. The Illuminati still control the price of oil, so Russia is at their mercy as well. There recent financial market experience was an absolute disaster as oil tanked. Their markets were a shambles, and had to be closed down many times to stop panic selling and to control speculative short-selling. They had to spend down a large portion of their reserves to support the ruble and their financial markets. They are hardly in a position to dictate terms regarding a world currency. If they try to bully Europe with natural gas, this will backfire. The price of oil will then drop to $15 a barrel.
Why are we paying interest to the Fed on money that is being created out of thin air to save the privately owned Fed itself, as well as its member institutions, which are receiving interest themselves from the Fed on the taxpayer money being loaned to them to shore up their balance sheets so they can continue to function without being shut down? We're paying interest while they're earning interest? Does that sound fair to you? Talk about moral hazard! And these are the same institutions that have conspired with the Fed to destroy our financial system to make way for a one world government, which is a euphemism for an Orwellian police state. We are certainly not paying this interest to ourselves as the media morons would have us believe, but to the anointed Illuminist financial institutions, which continue to privatize profits even while losses are being socialized to bail them out.
The common and preferred stock which taxpayers own in these companies is worthless, a fact which is being covered up and hidden from investors by use of deceitful financial statements that allow assets, with the blessing of our "regulators," to be carried at mark-to-model values, meaning that these assets are whatever the criminal zombie financial institutions say they are. So, America, you will never collect a penny from any of these stocks, which are all worthless because trillions in losses are being hidden until such time as these institutions are allowed to fail so we can have one big honking central bank that makes the Fed look like a pipsqueak. So much for paying interest to ourselves. This is nothing less than outrageous, and Congress had better put a stop to this soon, end the Fed, and start issuing interest free currency via our Treasury, or they will suffer the wrath of the American people.
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Global Research Articles by Bob Chapman
© Copyright Bob Chapman , Global Research, 2009
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