Next Moves
Financial Weapons
of Mass Destruction
I just finished reading
an article about the Deep State (
thanks Steve!), and it connects directly to what we are talking about. Unfortunately, the author (
Prof Peter Dale Scott) has barely scratched the surface. But, his article is useful in that it gives the
neophyte an introduction to the idea that there are events happening below the surface.
For those of you new to this idea, please consider the thought that... where there is one secret level of power… well, there are undoubtedly more. The ‘Deep State’ is just one of many, many levels that lie below the surface of current events.
I hope to talk about those ‘Deep State’ (and deeper than Deep State) elements as we work our way through this World War that is happening before our very eyes. And yes, it really is a World War, and one day, we will call it World War III.
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Next Moves – Financial Weapons of Mass Destruction
That article on the Deep State was appropriate because what is happening now doesn’t make sense. And, when powerful people make decisions that do not make sense, there’s a reason that they aren’t telling you.
The psychopaths in Washington D.C. really aren’t as insane as you think they are. But, we’ll leave that discussion for another time.
FWMDs
Let’s talk about the arsenal of weapons that the East and the West have pointed at each other. Since the mainstream media has undoubtedly been talking about missiles, tanks, planes and ships, I don’t need to. I don’t even need to talk about the nuclear weapons that both sides have.
What I want to talk about are the weapons that are at least as bad as the nuclear ones – Financial Weapons of Mass Destruction (FWMDs).
Warren Buffet is famous for referring to
derivatives as ‘
financial weapons of mass destruction‘, and he’s right. The banks successfully used them to extort money from the US government. They’ve been used to destroy other banks. And, FWMDs are one of the ways that some banks got to be
too big to fail (TBTF).
US FWMDs
And, the US government does have a few FWMDs of their own.
The FWMDs in the arsenal of the United States that are targeted against Russia are… …wellll… (I’m thinking hard here) …sanctions. That’s pretty much it.
Yes, it’s true that there are a few other minor weapons, but they really aren’t significant. They could turn off SWIFT. They could engage in attacks on the Russian banking system, like they did in Cyprus. But, the Russians aren’t stupid and have alternatives to all of that. So, we’re pretty much left with sanctions.
Sanctions
Now, before you discount sanctions as an effective weapon, let me say that they could really hurt Russia. Oil and Gas sales make up 30% of Russia’s GDP, and represent more than 60% of her exports. Turning off those exports would do severe damage to the Russian economy – more than that 30% number would seem to indicate.
Please remember that there is something that economists call the ‘multiplier effect’. It basically means that when a unit of currency is placed into an economy, it goes from hand to hand – growing in size each time it changes hands. For the US, the multiplier is generally about nine – meaning that a dollar injected into an economy multiplies nine times.
The reverse is also true. Take a dollar OUT of the system, and all those eight extra (multiplied) dollars disappear.
This is what would happen to the Russian economy. Shut off 60% of her exports, and her economy would crumble. (Assuming that we could get everyone to cooperate in that shutoff).
What do the Russians have?
They have the ability to completely obliterate the economy of the US.
Attacking the Petrodollar
Did you know that Russia sells its natural gas in US dollars?
Did you know that it also sells crude oil in US dollars?
If you want natural gas or oil from Russia, you must have US dollars to get it. To get US dollars, you need to make something and sell it to the US, so that they will give you dollars for whatever you made. And, since Americans aren't stupid, they want a low price.
This means that the price you sell to Americans will be lower than anywhere else - because you need as many dollars as you can get, to buy oil and natural gas.
So… what happens when the world stops needing US dollars to buy their oil and natural gas?
Prices in the US go up because the dollar is no longer in demand. In fact, everything that has ANY component that is imported goes up immediately. And, pretty much everything in the US has an imported component.
The loss of the Petrodollar would be the beginning of a catastrophe that would sweep America from coast to coast and destroy everything in its path. America would truly fall apart. (For more information,
Dave Hodges has an excellent article on the subject.)
“We have wonderful economic and trade relations with our Southern and Eastern partners,” he emphasized. “We will find a way not just to eliminate our dependence on the US but also profit from these sanctions.”
…it was a shot across the bow.
Think of it as a ‘nuclear test’. This was Russia saying ‘informally’ that they are willing to destroy the US, if America goes too far with this ‘sanctions talk’.
Russia has a number of other weapons in its arsenal of Financial Weapons of Mass Destruction, but that – by far – is the biggest. And THAT weapon DWARFS ANYTHING that the US has.
So, is the US crazy?
No. Remember what I said about what it means when powerful people act in a way that seems crazy:
…there’s a reason that they aren’t telling you.
That begs the question:
What could they POSSIBLY want?
They’re Just Going to Kill the Dollar
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So, to answer your question:
They’re just going to kill the dollar.
There’s more to all this than what I’ve described above, but this article is already more than 1100 words long. So, let me summarize what I’ve said so far.
Putting It All Together
US and European sanctions would hurt Russia. Russia would then retaliate by offering oil and natural gas in other currencies (or better yet, gold), pushing other oil-producing countries to do the same. This would destroy the value of the US dollar and devastate the US economy. America would descend into a death spiral of inflation, violence and repression.
Worse, all of that would destroy YOU.
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