Slowly The New Gold Standard Grows While Elites Flee Reality Of Worker Unrest

Toyota builds bomb proof £100,000 car to withstand GRENADES | Mail Online

 

Behold the world of the super rich!  This Toyota is built to withstand social unrest but not nuclear bombs.  Note how the vehicle is driven by a worker but the elites lie in luxury inside the back with curtains cutting out the dangerous world outside and alternative reality worlds appear on computer screens and videos for pleasure and of course, booze to numb the mind.  The cocoon that envelopes the elites is going to be their doom, of course.  The world which they rule can easily overturn this vehicle and it can be pried open by people to gain access to whoever it tries to protect.

 

I predicted some time ago, the US/EU boycott of Iran would drive certain countries into alternative financial systems and one of these will be one beloved of one particular gold-producing/oil pumping nation, Russia.  From Britain:  A new Gold Standard is being born – Telegraph Blogs, Pritchard wonders about the slowly developing reintroduction of the gold standard:

 

It is no secret that China is buying the dips, seeking to raise the gold share of its reserves well above 2pc. Russia has openly targeted a 10pc share. Variants of this are occurring from the Pacific region to the Gulf and Latin America. And now the Bundesbank has chosen to pull part of its gold from New York and Paris…My guess is that any new Gold Standard will be sui generis, and better for it. Let gold will take its place as a third reserve currency, one that cannot be devalued, and one that holds the others to account, but not so dominant that it hitches our collective destinies to the inflationary ups (yes, gold was highly inflationary after the Conquista) and the deflationary downs of global mine supply. That would indeed be a return to a barbarous relic…

 

The Triffin Dilemma – advanced by the Belgian economist Robert Triffin in the 1960s – suggests that the holder of the paramount currency faces an inherent contradiction. It must run a structural trade deficit over time to keep the system afloat, but this will undermine its own economy. The system self-destructs.

 

Every depression, in 1848, in 1895, in the Long Depression before WWI, there were gold rushes.  When Spain accidentally discovered the New World and its huge gold supplies, this was during an economic downturn caused by the closing of easy trade with China when the Muslims took Constantinople.  All depressions cause gold rushes because this is how trade is stimulated.  These gold rushes are not for domestic economies, these are strictly for war spending and buying foreign goods.

 

The anti-gold global trade operates the opposite way: the paper money is printed as IOUs passed to trade partners who then provide manufactured goods and commodities like energy, and then the population consuming this sells off national resources, businesses, government property, etc. to pay back these IOUs which means they lose sovereign wealth.

 

Virtually no one talking about international economics talks about sovereign wealth.  This has always irked me greatly.  When gold is used to deal with foreign trade, when it runs out, the country ceases buying foreign goods until either they find more gold in a gold rush or they invade someone and steal their gold or they trade goods and build up their own IOU pile to use to buy trade goods that way.

 

China has played a superb trade game and like Germany, is the top two sovereign wealth nations which is why the other EU countries are screaming at Germany over trade money issues while the US and Japan openly attack China’s sovereign claims, unilaterally seizing territory right off of China’s shores and almost a thousand miles from Japan’s nearest islands:  Commentary: Rational policy needed from Abe government on China-Japan ties – Xinhua | English.news.cn

 

The talks, expected to pave the way for a possible visit to China by Abe’s special envoy Masahiko Komura, marked the first time a Japanese ruling party lawmaker met with a senior Chinese official since the launch of the Abe government.

 

Yohei Kono, a retired Japanese liberal politician and three-time foreign minister, criticized former premier Yoshihiko Noda for the island purchase, stressing that he is “not pessimistic” about how Chinese-Japanese relations might proceed under Abe’s government.

 

To win China’s trust, he said, one must not deal with Japan-China relations hastily because shortsighted projections and tough words would only give rise to a “negative spiral.”

 

This optimistic request was issued the same day Clinton announced the US would use military force to back Japanese territorial claims which conflict with Chinese claims which have a lot of historical legitimacy.  This is the ‘attack someone for gold’ option when running deficits which the US is resorting to due to an inability to pay the Chinese several trillion in trade value.

 

Just this week, the Chinese military gave clear warnings about this dispute:  Special Report – China’s military hawks take the offensive | Reuters: a Chinese general at a meeting in Australia warned the Japanese about unilateral territorial seizures.  The Japanese generals walked out without saying a word while at the same time, behind the back of the Chinese, Clinton made the deal that Japan would pass the child abduction law and enforce it in exchange for the US backing Japanese territorial military seizures near the coast of China.

 

And the US is provoking Russia while desperately trying to restrict Russian influence and trade power:  Ukraine shocks European and US leaders – English pravda.ru

 

A number of European officials stated that accession of sovereign Ukraine to the CU was totally unacceptable. In particular, according to Brussels, Ukraine’s accession to the CU was not compatible with its integration into the European Union. Meanwhile, it is no secret that the prospects of Ukraine’s European integration are dubious. Not to mention the fact that, given the economic situation in the EU, the goal has slightly lost its desirability. The Americans traditionally took an active participation in the discussion of hypothetical plans of Kiev on the possibility of deepening of the cooperation with the Customs Union. Concerns were expressed by the current and former U.S. Ambassadors to Ukraine, as well as advisors of former U.S. presidents. While Europeans and Ukraine are located on the same continent, why is the U.S. concerned?

 

The US not only passed a recent law outraging Putin and his supporters causing them to retaliate by shutting down US adoptions of Russian orphans, there are other cases which rile the Russians:  US court orders Russia to pay $50,000 daily for Jewish books – English pravda.ru

 

Russia does not recognize Chabad Lubavitch’s claims as the collection had been kept in Russia during all these years. In addition, the Schneerson family has no heirs to the unique collection.

 

The U.S. Justice agrees with the position of Moscow, but District of Columbia Judge Royce Lamberth, who took the decision, rejected the objections of the Justice Ministry…Russia’s reaction was tough. Russian Foreign Ministry officials clearly stated that there would be no return made at all.

 

This is the same sort of rubbish the US did to Iran, taking them to court here over all sorts of trivia and then demanding huge payments while paying nothing for US damages and criminal actions.  Here is a prophetic warning from a country that has been the victim of more than one sneak attack from Europe:  War more important than peace for Russia and USA? – English pravda.ru

 

The question is, when, finally, the U.S. State Department would understand that it is spending too much time on futile attempts to force Russia to live by their rules? Why do the Americans not get tired of pecking the Russian government instead of tackling pressing issues? Why do they not try to build cooperation in Afghanistan? Even here Congress can find a reason to interfere with the contract for the supply of Russian helicopters. It turns out that “Rosoboronexport” – the main supplier of arms to Bashar Assad – cannot be condoned.

 

Meanwhile, the Zionists continue to be ever-more aggressive as the US helps them defy the entire world:  Netanyahu Will ‘Never’ Dismantle Any Settlements.  This went from being sneaky to outright criminal action.  So, while the US spits hatred towards Russia, China and Iran, we bankroll and protect the Jews stealing all the West Bank and locking the natives in cement-locked ghettoes to be abused and starved.  All, while declaiming we are saving humanity and doing good deeds.  While calling these other nations, evil doers and cruel.

 

And as I also predicted, not only will trading oil with Iran using gold rather than dollars or euros, the longer this stupid embargo goes, the more people will do end runs around it:  Norway and Iran, together with oil – English pravda.ru

The Norwegian ambassador in Iran, Jens-Petter Kjemprud, spoke on Sunday of his country’s readiness to deepen cooperation with Iran in the energy sector.

 

Kjemprud’s statements were made during the meeting held on Tuesday with Rouyvar Eshaq, public relations director of the Iranian oil ministry in Tehran, capital of Iran, on Sunday according to the Iran’s oil and energy information network (SHANA, for short in English).

 

He also praised the quality and content of the monthly Iran Petroleum, published in English by the public relations office of the Iranian Ministry of Petroleum.

 

The Arab Spring was squashed by violent and brutal military action of the Saudi Royals who drive around in cars like the limo at the top of this story.  Eventually, it will come to their despotic state and they will be eliminated.  Then, Iran will be sitting pretty while Saudi Arabia burns.  We are in a race here and the US is not powerful but rather, running on fumes and running out of time, our imperial games imperiled by our own allies like Israel and our own nation going bankrupt while everyone seeks to loot it as much as possible and move the wealth offshore.

 

But is anywhere safe?  I doubt this.  If the US starts WWIII, it will engulf everyone.  WWI was huge, WWII was twice as big and WWIII will be really immense.  And is no solution for US problems which could be easily solved with some judicious tariffs, higher taxes on the rich, stronger protections for workers and socialist medical systems.

 

Which reminds me of what liberals seem to fear the most right now, global warming.  Well, better worry about something our nation can cause, global freezing from nuclear war.

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