Sunday, August 30, 2009

Final Warning: A History of the New World Order

VIDEO: David Rivera, 'Final Warning: A History of the New World Order'

Final Warning: A History of the New World Order (February 2004)
Illuminism and the Master Plan for World Domination
By David Allen Rivera, The Prophecy Club

Table of Contents (click here to open this document in a new window)

MHP Editors Preface
About this book

1: The Birth of Tyranny
The Freemasons, the Illuminati, and the House of Rothschild
1.1: The Freemasons
A brief history of the Freemasons in England and America

1.2: The Order of the Illuminati
The development of the Order of the Illuminati and their infiltration of the Masonic Lodge

1.3: The Illuminati in America
The Illuminati organization spreads from Europe to America

1.4: The Rothschilds
The formation of the Rothschild banking dynasty and their support of the Illuminati program
2: Financial Background
The history of U.S. central banking, the income tax, and the private foundations of the elite
2.1: The Bank of the United States
European financial interests attempt to recapture the United States

2.2: Creation of the Federal Reserve System
Jacob Schiff, Paul Warburg, Jekyll Island, and the creation of the Fed

2.3: The Federal Reserve System Begins Operation
Theft of the gold, fiat currency, inflation, and debt slavery

2.4: The Federal Income Tax
Collecting the interest payments for the owners of the Federal Reserve

2.5: Tax-exempt Foundations
How the elite protect their wealth while controlling education, research, and public policy
3: World War I and the League of Nations
War profiteering, the League of Nations, and the seal of the Illuminati
4: Communism and Racial Tension
Promoting racial tension to destabilize American society
5: Elite Political Organizations
The Fabian Socialists, the Round Table, and the Council on Foreign Relations
5.1: The Fabians, the Round Table, and the Rhodes Scholars
The Rhodes-Milner group continues the Illuminati program

5.2: The Council on Foreign Relations
The origin and goals of the elite U.S. policy organization

5.3: CFR Influence in Government, Media and Business
The pervasive influence of CFR members over all aspects of society

5.4: The Rise and Fall of Richard Nixon
Nelson Rockefeller, the CFR, and their role in the Nixon Presidency
6: World War II
How the Illuminati engineered the war to further the world government program
6.1: The Protocols of the Learned Elders of Zion
A document of dubious origin that reveals the Illuminati program of control

6.2: World War II and the Buildup of Communism
The rise of Adolf Hitler, the financing of German industry, and the buildup of Soviet Communism

6.3: The Pearl Harbor Deception
Roosevelt intentionally provoked Japan into attacking Pearl Harbor
7: The Spread of Communism
The origin and worldwide spread of Communism
7.1: The Origins of Communism
Socialist and communist experiments during the 1700s and 1800s

7.2: Marx, Engels and the Socialist International
Karl Marx, the Communist Manifesto, and the rise of Socialism in Europe

7.3: Lenin, Trotsky and the Bolshevik Revolution
The Soviet Union is formed with the financial support of the Western oligarchs

7.4: Stalin and Western Support of the Soviet Union
Stalin takes power, the Soviets fight the Nazis, and the bankers control both sides

7.5: Communist Revolutions in China and Asia
Communists allowed to take over China, Korea, South Asia and Vietnam

7.6: Communist Revolution in Cuba
Fidel Castro takes power in Cuba with U.S. support, leading to a showdown with the Soviets

7.7: The Soviet Challenge to America
Soviet rhetoric, subversion, military preparation, and deception
8: Moving Towards Global Government
The United Nations, the European Union, and other global organizations
8.1: The United Nations
The founding of the U.N. and the push for a Socialist world government

8.2: The European Union
European cooperation after WW2 and the formation of the European Union

8.3: The Bilderberg Group
The origins and influence of the premier international policy planning group

8.4: The Seven Sisters
OPEC, the Seven Sisters, and control of the petroleum industry

8.5: The Club of Rome and Population Reduction
The Club of Rome, the Limits to Growth, and the AIDS epidemic

8.6: International Trade Agreements
The globalisation of the economy via GATT, NAFTA and the WTO
9: Consolidating Government Power
The Trilateral Commission, the federal government, and the rise of the police state
9.1: The Trilateral Commission
The Trilateral Commission, the CFR, and control of the White House

9.2: Centralization of Government Power
Federal districts, Executive Orders, replacing the U.S. Constitution

9.3: The Rise of the Police State
Social instability, military police, gun confiscation, and detention camps
List of Source Documents
Sources referenced in Final Warning

World Financial System in a State of Insolvency - It is a massive transfer of wealth from the people to banks, Wall Street, insurance companies and elitist corporations.

Marxists are in control of America: they are not liberals, they are not progressives, they are Communists. - Dave Daubenmire, Pass The Salt Ministries, February 26, 2009

Samuel Z. Batten: The New World Order, Written in 1919
“Web of Debt”: The Inner Workings of the Monetary System

Life, or Something Like It, in the New World Order

Agenda 21 - This global contract binds governments around the world to the UN plan for changing the ways we live, eat, learn and communicate--all under the noble banner of saving the Earth. Its regulations would severely limit water, electricity and transportation--even deny human access to our most treasured wilderness areas. If implemented, it would manage and monitor all lands and people. No one would be free from the watchful eye of the new global tracking and information system. - Berit Kjos, "Local Agenda 21 - The U.N. Plan for Your Community"

Sustainable Development - The concept of Sustainable Development basically says that there are too many people on planet Earth and that the population of the world must be reduced in order to have enough resources for future generations. [Under the New World Order plan,] the UN should be the global custodian of the Earth and all of its resources. This means that we will be measured by how much we produce and how much we consume as found in the "family dependency ratio." Every person will be valued according to their usefulness. In addition, the UN will control the Earth's resources--energy, water, food and so on. The concept of sustainable development can be found in the Communisto Manifesto and the 1977 USSR Constitution. -
Joan M. Veon, The Women's International Media Group, Inc.



The UN World Summit on Sustainable Development (Steven Yates)

The world as the globalists envision it:
  • An expanding encirclement of controls on individuals reflecting what is "sustainable," not what is Constitutional. Animals and even plants will have more legally recognized rights than human beings.

  • Large tracts of land will be set aside as "wilderness reserves" (no human use zones), and people will not be permitted to live there. People in such places will be relocated – forcibly, if necessary.

  • Communities will be highly ordered habitats where the majority of the population lives in apartments and high rises (their service-sector jobs will not pay enough to afford houses). These will be more like beehives than neighborhoods and towns as we know them today.

  • People will use mass transit or bicycles instead of automobiles to get to their jobs – automobiles pollute the air, after all.

  • People almost certainly will not be allowed to own guns or other weapons.

  • There probably will be plenty of entertainment – sports, nightclubs, and reality shows on TV. Such things function as distractions that encourage mental passivity.

  • People in certain occupations might be encouraged to spy on their neighbors and report any "unsustainable" activities (spying on U.S. citizens already is being encouraged by the Bush Regime in the name of the "war on terrorism," thus establishing the precedent).

  • Dissidents will be ostracized, find it increasingly difficult to earn a living, and might even find themselves harassed on their own property or in fear for their physical safety.
It is very probable that if Agenda 21 were to be fully implemented:
  • Citizens of the projected "sustainable communities" of the future will be told how many children they can have so that population size can be controlled and maintained (anyone who doubts that such ideas have been kicked around the smoke-free rooms of the globalist elites is invited to consult the work of sustainability economists Herman Daly and John B. Cobb Jr.).

  • Abortion will not be a problem: abortions will be available, inexpensive and safe, just as ordered by Planned Parenthood and NOW.

  • Those children allowed to be born will be "educated" about their duties to the public good (always as defined by officially-designated authorities) and the evils of our nation’s past, about celebrating diversity, and using latex condoms when they have sex. It may no longer be necessary to divide them from their parents if their parents are also obedient socialists.

  • As youth they will learn "job skills" in group settings, and as adults they will work in teams in cubicles, having chosen an occupation from a list of government-provided options. They will return home at night to slightly larger cubicles, possibly shared with other families.

  • They will believe that truth (if they think about the matter at all) is just consensus. In general, they will have "learned" to be intellectually dependent on authority in the name of "interdependence," having grown up to be compliant "global citizens."

  • With enough Ritalin, Prozac and "anger management" seminars and workshops, but with plenty of entertainment and no need to do any real independent thinking, they might even, in their own strange and passive way, come to enjoy living under the New World Order.

Dangers of the Agenda for the 21st Century (Freedom Advocates)

Uneasiness is rising in mainstream America. People know that something is wrong – and it is getting worse. What do we do? The first step is to understand the scheme behind Agenda 21 and the reordering of America. The initial step in understanding this scheme is to recognize the goals of globalist philosophy's attacks on unalienable rights. They are:
  1. Abolish private property,

  2. Base world government on public decree, not individual rights, and

  3. Reduce human population.
The Sustainable Developers' Smart Growth policy objective is to control water supply so that rural residents must relocate to cities to get water. Smart Growth living is being established for these purposes:
  1. Control the water,

  2. Abolish private property, and

  3. Then control the people.
The objective is to control the people by relocating them from suburbs and rural areas to cities ('human settlements').

Marxism and American Society

"[Communism] is, in fact, man's second oldest faith. Its promise was whispered in the first days of the Creation under the Tree of the Knowledge of Good and Evil: 'Ye shall be as gods.' It is the great alternative faith of mankind. Like all great faiths, its force derives from a simple vision. Other ages have had great visions. They have always been different versions of the same vision: the vision of God and man's relationship to God. The Communists vision is the vision of man without God. It is the vision of man's mind displacing God as the creative intelligence of the world." [Whittaker Chambers, "Witness," p.9.]

"The Communist Manifesto" (Karl Marx, page 25):

"Nevertheless, in the most advanced countries the following will be pretty generally applicable:
  1. Abolition of property in land and application of all rents of land to public purposes;
  2. A heavy progressive or graduated income tax;
  3. Abolition of all right of inheritance;
  4. Confiscation of the property of emigrants and rebels;
  5. Centralization of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly;
  6. Centralization of the means of communication and transport in the hands of the State;
  7. Extension of factories and instruments of production owned by the State, the bringing into cultivation of waste lands, and the improvement of the soil generally in accordance with a common plan;
  8. Equal liability of all to labor; establishment of industrial armies, especially for agriculture;
  9. Combination of agriculture with manufacturing industries; gradual abolition of the distinction between town and country by a more equable distribution of population over the country and;
  10. Free education for all children in public schools. Abolition of children's factory labor in its present form. Combination of education with industrial production..."


According to Maxwell Igan in his video, Fight the New World Order:

There are 2.97 million square miles of land in the island continent of Australia: 2.97 million square miles breaks down to 1 billion, 900 million, 800,000 acres, which then converts down to 7.6 billion quarter-acre blocks of land in Australia alone.

There are approximately 6.7 billion people in the world, so we could hypothetically give every person in the world a quarter-acre block of land in Australia and and we would still have 900 million quarter-acre blocks (or part of Queensland) left over in Australia PLUS the entire rest of the world. With a quarter-acre block of land per person, everyone would have enough land that they could all have gardens and grow a substantial supply of their own food.

Now just pause to let that sink in to your brain for a second. ALL the people, that's every man, woman and child on earth, would comfortably fit inside Australia; each individual person could have a quarter-acre block of land, and we would STILL have part of Queensland AND the entire REST OF THE PLANET LEFT totally unoccupied.

The world is not over populated at all. It's just very badly managed, and you need have absolutely no doubt whatsoever that this bad management is intentional, and it is methodical. It would, however, be very simple to fix things. And all that is required is for people to wake up to how much they are being lied to and how much they are being scammed. And this goes for everyone.


The 'Beasts' of the Book of Revelation (Reverend Herman Hoeksema)

God created a world that should glorify Him and be consecrated to Him, but that world tore itself loose from Him and refused to glorify Him. Although man has fallen away from Him, God nevertheless allows man to exercise dominion over the earthly creation and to bring to light all the hidden powers and talents of creation to their fullest degree.

Man has developed the kingdom of the world without God, and God allows this kingdom of the world to develop to its full extent. This kingdom is the climax of the development of the man of sin: it is the kingdom of man, of the creature, without God, without the seven. And therefore his number is 666, the number of man indeed.

In the final manifestation of the anti-Christian kingdom to come, we have the 'beasts' described in the book of Revelation, which represent the highest development of the sovereignty of man apart from God, and under the devil they shall develop all the powers of creation without God.

It is not our calling to resist the coming kingdom of antichrist, for that is impossible. We cannot prevent its coming; however, we must watch and be prepared. Here is the patience of the saints; here is wisdom. We must know how it will come so that we may recognize its coming and be faithful even unto the end.

God grant that we may be found watching in that day so that we may not be allured by all the beauty and fascination and by the Christian appearance, strength and stability of this world kingdom to come. Let us not be allured by the signs and wonders of the false prophet, but let us remain faithful even unto the very end.

The people of God may be comforted by the fact that all things are under His control; that, even at the time of the end, during the period of great tribulation, the days shall be shortened for the elects' sake; and that Christ shall be with them always, even unto the end of the world.


Thursday, August 20, 2009

Gold, Silver, and a Bank Holiday

Bob Chapman on Gold, Silver, a Bank Holiday and the Monetary Elite

TheDailyBell.com
August 2, 2009

Introduction: Bob Chapman has been writing and analyzing the precious metals field for decades. As one of the largest gold brokers of the 1970s, Bob experienced the ins and outs of the industry at the highest levels, and this experience has stood him in good stead. As the composer of the International Forecaster, Bob provides a savvy and often controversial take on how the industry works today and where precious metals are headed.

Daily Bell: Thanks for the interview.

Chapman: Glad to do it.

Daily Bell: You are well known for writing a good deal about a concerted, organized effort by the elite to control the global economy. What interactions have you had that provided you with this conclusion?

Chapman: I've been studying the elitists for 50 years, and I've been writing about them since 1967. None of this is new, and now because of the Internet much of it is very visible. It begins with central banking, and there is nothing to be said that can constitute a defense of central banking. A small group of men get together around a table and set interest rates, basically the price of money. They do so without supervision or the consent of those who use their money product, and they do so pretty much in secret. There is no accountability and lately, again thanks to the Internet and YouTube, people can pretty well see how nonsensical the system is.

We had a classical gold standard for 200 years that provided a good deal more monetary stability than the current system. There were problems with it, but the problems had little to do with the creation of money itself. Today we have a money problem and it is very obvious where the responsibility lies. Just go on the Internet and read about it. Then ask yourself, where did this concept of a central bank come from? Is that all there is to it? Of course not. There are plenty of forces, families and extraordinarily wealthy individuals standing in the shadows of the central bank. They didn't get a lot of exposure in previous decades, but they are certainly exposed now.

Daily Bell: Yes, the Internet has made certain contributions a good deal more obvious. And you've become a very popular read on the Internet. Can you give us a sense of your evolution as a hard-money writer and thinker?

Chapman: What got me involved in gold and silver related assets in the early 1960s were as a result of my work in counterintelligence in the middle to late 1950s. Once I found out who ran things and how I became a hard-money thinker. It just didn't seem right to me that a few individuals held so much power and did so in secret. The people in the intelligence community are basically a kind of Praetorian Guard. They're supposedly there to fight crime and protect national interests, but when you really look at what they're doing, it has more to do with protecting elite interests. If either the general population or the politicians get out of the line, there's this enormous intelligence community with the resources to make sure that they step back in.

Daily Bell: Regardless of what Western intel can or can't do, the system is obviously under stress. You've said your sources predict a bank holiday. Can you expand?

Chapman: An investigative source as well as three well-placed subscribers told me that a number of US Embassies were being instructed to purchase local currencies. That can only mean that government believes that foreign sources may not accept US dollars as happened in early 2008.

Daily Bell: They would be stockpiling currency to ensure local liquidity?

Chapman: It is not simply an exercise in embassy self-protection. My sources believe that this would be caused by a plunge in the dollar and perhaps even a short bank holiday as a training exercise for a bigger, longer holiday later.

Daily Bell: That's a pretty big story, especially if it happens. It shows the powerful forces at work beneath the surface. While you're obviously a free-market person, you also seem to believe that unions and other kinds of organized societal bodies have their place even in a free-market economy. Is this a case of the pragmatic overwhelming the theoretical?

Chapman: Yes, I would say so. Regulation is necessary in my opinion, not theoretically but pragmatically - regulation that should protect the working-man and the middle class. They have the most to lose. Most of the 20th century was spent on workers rights and rightly so. Conditions and wages were dreadful. As a result of labor unions we established a large middle class, which formed the backbone of our country. What the future holds for unions I cannot say. It depends on how the depression plays out. The forces at play are extremely powerful and there needs to be some sort of organized mechanism that counteracts what has been created. While we can see that the free-market has been overtaken to a degree by elitists and their monetary creations, the question of how to live in such a world are real and immediate. In the long-term education may work but in the short term various entities, including those that some might call populist, have a role to play.

Daily Bell: What is the biggest financial challenge the world faces in your opinion?

Chapman: Exposure of the Fed. Who really owns the Fed and what they have been doing since 1913. How the banks and brokerage firms make billions via inside information and the complicity of the SEC in scams, such as Madoff. As I've said, along with many others, it all begins with the Fed and a handful of wealthy, unelected bankers meeting in private in a room somewhere deciding on the value of money for you and me.

Daily Bell: Are gold and silver markets manipulated?

Chapman: Gold and silver markets are manipulated, but so are most other markets as well. Under Executive Order 12631 the government does as it pleases in markets. I have the order right here. It is entitled "Working Group on Financial Markets" and it came into force on March 18, 1988 signed, unfortunately, by Ronald Reagan. It's very short and you could reprint so that your readers understand the full extent of what's going on. This is by no means a dead letter. When you combine this authority with the authority of the Fed to create money, you are basically dealing with a fairly well-controlled system. It's certainly not what it was.

By virtue of the authority vested in me as President by the Constitution and laws of the United States of America, and in order to establish a Working Group on Financial Markets, it is hereby ordered as follows:
Section 1. Establishment. (a) There is hereby established a Working Group on Financial Markets (Working Group). The Working Group shall be composed of:

(1) the Secretary of the Treasury, or his designee;

(2) the Chairman of the Board of Governors of the Federal Reserve System, or his designee;

(3) the Chairman of the Securities and Exchange Commission, or his designee; and

(4) the Chairman of the Commodity Futures Trading Commission, or her designee.

(b) The Secretary of the Treasury, or his designee, shall be the Chairman of the Working Group.

Sec. 2. Purposes and Functions. (a) Recognizing the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation's financial markets and maintaining investor confidence, the Working Group shall identify and consider:

(1) the major issues raised by the numerous studies on the events in the financial markets surrounding October 19, 1987, and any of those recommendations that have the potential to achieve the goals noted above; and

(2) the actions, including governmental actions under existing laws and regulations (such as policy coordination and contingency planning), that are appropriate to carry out these recommendations.

(b) The Working Group shall consult, as appropriate, with representatives of the various exchanges, clearinghouses, self-regulatory bodies, and with major market participants to determine private sector solutions wherever possible.

(c) The Working Group shall report to the President initially within 60 days (and periodically thereafter) on its progress and, if appropriate, its views on any recommended legislative changes.

Sec. 3. Administration. (a) The heads of Executive departments, agencies, and independent instrumentalities shall, to the extent permitted by law, provide the Working Group such information as it may require for the purpose of carrying out this Order.

(b) Members of the Working Group shall serve without additional compensation for their work on the Working Group.

(c) To the extent permitted by law and subject to the availability of funds therefore, the Department of the Treasury shall provide the Working Group with such administrative and support services as may be necessary for the performance of its functions.
Daily Bell: That's certainly a broad brief. And there is plenty of evidence that markets are being pushed around. But in the long term, the Invisible Hand will have its way. Where do you think gold and silver are headed pricewise?

Chapman: Gold should conservatively reach $2,500 an ounce. It could go considerably higher dependent on what happens. Silver as a result could make it to $100 an ounce. There's so much money in the system now and so little faith as to how the American administration is going to handle the current deficits that the genie is virtually out of the bottle.

Daily Bell: Do the fundamentals remain bullish for gold and silver?

Chapman: If the US and other governments had not suppressed gold prices it would currently be at $2,500. Thus, gold on fundamentals is a steal at current prices. Sooner or later the elitists will lose control.

Daily Bell: Is the world headed toward a one-world currency?

Chapman: The elitists want a one-world currency, but I don't think they will get one. The dollar will fall in value and default may occur and that could be replaced by a basket of ten currencies or a new world currency could be created, but I don¹t think the people would accept it.

Daily Bell: Sounds like the elite has miscalculated when it came to the Internet.

Chapman: The Internet is the elitists' biggest nightmare. The people are getting the truth and the elite does not like that one bit. Already a full generation has grown up with the Internet and their educational experience is a good deal different than yours or mine. There are literally millions of pages of information out there on the blogosphere that you simply could not find in your local library. But it is even broader than that. All that information is being translated into action, into broad political movements and Tea Party protests that are going to make it even more difficult for a full-level of globalism to be realized. In the 20th century, it was a good deal easier. But in the 21st, things are far more difficult. It's even hard to start a real war these days.

Daily Bell: What countries are most hospitable to gold and silver mining today?

Chapman: Canada, Chile, Argentina, Peru, Australia and South Africa.

Daily Bell: Can you give us the names of some important mining companies?

Chapman: Agnico Eagle is tops in my book followed by Goldcorp, Silver Standard and Minefinders. There are other good ones, but I like these best.

Daily Bell: Can you elaborate?

Chapman: They are all leveraged due to their small number of shares outstanding and they have outstanding management, which I have known for 14 to 25 years

Daily Bell: What are the most important - seminal -- articles of yours that you would encourage everyone to read? Where can they be found?

Chapman: Go to our site, TheInternationalForecaster.com , or visit YouTube. They are there and elsewhere. I write so much I cannot really tell which is best.

Daily Bell: On behalf of all of our readers we thank you for sharing your views with us.



Monday, August 17, 2009

Webster Tarpley Is Advocating a 'Bank Holiday'

The Second Wave of the Depression: Hyperinflation is Likely

August 17, 2009

Webster Tarpley - The second wave of the world economic depression is coming soon.

Larry Summers, the economics czar of the Wall Street puppet regime currently in power in Washington, recently confessed to the Financial Times in an unguarded moment: “I don’t think the worst is over ...” A few weeks earlier, Jacques Attali, who served in the 1980s as the main economics adviser to French President Mitterrand, told an audience at the International Economic and Financial Forum (FIEF) in Paris that the world might well soon face a planetary Weimar “in the form of a hyperinflationary depression similar to the German events of 1922 – 1923.

During the last world economic depression, the first wave came in the form of the famous New York Stock market crash of October 1929. But this was only the beginning, and hardly the main event. The world depression of the 1930s was made irreversible by the British bankruptcy of September 1931, when the Bank of England ceased gold payment. At that time, the vast majority of international trade was financed by pounds sterling bills of exchange drawn on London.

When the British Pound began to float through a series of competitive devaluations, the lack of a stable reserve currency – and not the US Hawley-Smoot tariff – strangled world trade, thus making that depression as severe as it was. British default in turn undermined the US banking system, setting the stage for the banking panic which ravaged the United States in 1932 and 1933, to the point that not a single bank in the country was still operating by the time Franklin D. Roosevelt assumed the presidency in March of 1933.

The United States would almost certainly have been lashed by additional waves of depression had it not been for the banking triage implemented by the Roosevelt administration during the bank holiday, and for other New Deal measures which succeeded in mitigating the Depression. Other countries, notably Germany, went into a permanent depression which was expressed in a series of military campaigns which aimed at the economic looting of the other countries of Europe.

Whatever the ideological fanatics of the discredited Austria and Chicago schools of economic analysis may claim, there is no automatic business cycle capable of lifting the modern world out of serious economic disintegration. The depression will end when adequate New Deal style policies are implemented, and not before, as I show in my new book, the second edition of "Surviving the Cataclysm."

TODAY: BETWEEN 1929 AND 1931

Today, therefore, we are, so to speak, in the trough between the October 1929 wave (which corresponds to the derivatives crisis and banking panic of 2008) and the September 1931 wave, which this time around is highly likely to take the form of a hyperinflationary dollar crisis, or in other words a hyper stagflation and depression of the world economy radiating out from Wall Street and the City of London. What then might be the leading characteristics of the next wave of the current world economic breakdown crisis?

The next wave is likely to involve a worldwide dollar panic. Using ballpark figures, we can say that there are about $4 to $5 trillion sloshing around the world in the form of hot money, US Treasury securities, Euro dollars, and various forms of zeno-dollars. Japan has about a trillion, China almost $2 trillion, and so forth. It is naturally very unwise for a developing country like China to hold so many dollars rather than using them to purchase needed infrastructure and capital goods, and the Chinese leaders are now very uncomfortable with their own foolish decision, which was of course taken under heavy US pressure.

But the point is that this $4.5 trillion overhang is by its very nature exceedingly unstable. Every country that holds large sums of dollars or US Treasury bonds is nervously eyeing every other such country to see if they show signs of bolting for the exit. Up to now, so far as we know, no large holder of dollars has attempted to reduce its exposure to the battered greenback by dumping these dollars on the international market. If anyone did so, it would cause a true universal financial panic which would create chaos and mayhem not just in the United States and Great Britain, but in the vast areas of the rest of the world as well.

This is concretely how hyperinflation could now very well arise: if one or more US creditor nations attempts to abruptly lighten up on dollars, the value of the US currency could undergo a catastrophic collapse, and that would spell runaway hyperinflation on the US domestic front.

World Dollar Panic Imminent?

We need to recall that the value of a modern currency is not determined inside the country, but rather on the international foreign exchange markets. This is where the fatal vulnerability of the US dollar is located. In the ruined form of the Bretton Woods system which has prevailed for almost 40 years since Nixon’s colossal historical vandalism of August 15, 1971, the US has emerged as the only country with a permanent license to finance imports by simply printing more of its own currency and sending those banknotes overseas. Every other country has to manufacture and export something that others want to buy in order to earn the necessary foreign exchange to pay for its own imports. The US license to print has made this country the buyer of last resort and the dumping ground for the unsold junk of the world, leading in the process to high permanent unemployment here.

There are many signs that this inherently unworkable arrangement has now reached the breaking point...
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