Putin Chipping Away At America’s Empire on September 28th at the UN, Vladimir Putin asked, ‘Do you realize what you have done?’ He was referring to American Exceptionalism which is the core philosophy underlying Wall Street’s Empire of Debt.
Two days later Putin began bombing ISIS, Al Qaeda and their affiliates in Syria and began chipping away at America’s Empire. He said this Syrian campaign will take 3 to 4 months. Today I would like to discuss some issues the Russian leader can address in the next 12 months. These issues will greatly impact the 2016 American elections.
The first issue is Syria. We can see by his bombing campaign and the deployment of forces that Putin’s first objective is to seal the border with Turkey. He is attacking major cities in the area from Homs and Hama to Aleppo.
We should give them a month to force the terrorists out of the major cities. And another month to seal the border and establish order using the Syrian National Guard (NDF) and police with backup from the allied Armies on the ground.
His next target will be the ISIS controlled areas near Raqqa and Palmyra plus the border area with Anbar province in Iraq. The Iraqi government has given the Russians permission to pursue ISIS coming across the border from Syria.
One reason for the success of the bombing campaign is that the native Syrian population is giving the Russians through their allied ground forces reliable info on where the terrorists have hidden.
The Syrian people rightly regard ISIS and Al Qaeda as ‘battering rams’ used by the Americans to destroy governments disliked by Israel and the Major Oil companies. That list of 7 Muslim nations that General Wesley Clark reported were to be taken down by the Pentagon came from Israel and included Libya, Lebanon, Syria and Iran.
Syria has a border with Lebanon. That area was previously secured by a joint Hezbollah-Syrian offensive on the neighboring Qalamoun province that took over a month to accomplish.
The southern border with Jordan was secured in part early in the bombing campaign when a local tribe that had opposed the Assad regime switched sides and accepted a Syrian Amnesty offer. Subsequently, the Jordanian government set up an operation to share intelligence on the terrorists with Russia. ISIS had released a video of them burning a Jordanian pilot alive.
Iran has organized militias in Iraq with volunteers from as far away as Afghanistan and Pakistan. They have 100,000 men under their control. That outnumbers the Iraqi Army. They are also more motivated fighters than the regular Army. The US has bombed the militia fighters who were fighting ISIS. When they conduct operations against ISIS, the Iraqis do not tell the Americans because they believe the US will tell the terrorists where and when they are coming for them.
Iran has sent thousands of militia volunteers with Iranian commandos into Syria to fight along side the Syrian Army, Hezbollah and the Syrian National Guard (NDF).
Russia is not yet ready to take on ISIS in Iraq. They need to degrade ISIS in Syria and to seal the borders first.
Russia has a far better diplomat in Sergey Lavrov than America has had in either Hillary Clinton or John Kerry. The key to defeating ISIS in Iraq is to understand that Anbar province is the one safe zone for Sunni Muslims in that country. When the tribes in Anbar province see ISIS being degraded by Russian air power and cut off by the Iranians on the ground, they will eagerly – I hope – accept a diplomatic solution from the Russians and the Chinese.
China will want to invest tens of billions of dollars in the New Mideast. They will be paying for it with the US Treasury bonds they are dumping at alarming rates. Not all US bonds are sold. Tens of billions are being used to secure loans on development projects of enormous size and importance. Those bonds might not even be in Chinese hands anymore which is the whole point. Get rid of them but not all on the same day. Lots of things to buy before the Dollar Dies.
In the Spring of 2016 there will be secured truck traffic from Tehran to Baghdad to Damascus. There will be talk of a pipeline through Iraq and Syria to the Mediterranean. And there will be delegations of Chinese and Russians talking to the locals about development.
America will be frozen out.
Saudi Arabia borders Iraq which is to say that in 2016 they will border Russia, Syria, Iraq and Iran.
The new Saudi King Salman is said to be senile. 8 of his 11 brothers want him removed from power. He has the Saudis bogged down in a war with Yemen even though Yemen had made up half of the Saudi Army. Salman and his friends in the US and Israel are committing war crimes on a daily basis. Yemen has to import 90% of their food. The US and King Salman have cut off all food imports. That is a serious war crime. It is comparable to bombing that hospital in Afghanistan but doing so every day for a year.
As I said, I would hope Lavrov and Putin put forward a diplomatic solution to the ISIS problem in Anbar province that avoids a blood bath of non-ISIS Sunnis. That will pave the way for massive Russian and Chinese developments in Iraq, Iran, Syria, Lebanon, Egypt, Saudi Arabia and the other Gulf Coast states.
It will also put an end to the Petrodollar. The US used to be independent when it had a much smaller population. The Americans had a high wage because they could use skilled labor to add value to natural resources they could develop from its mines, forests, farms and oil fields. Americans were warned by economists that when their population was increased beyond their ability to supply natural resources domestically that their wages would have to be cut to pay for the imports.
US wages have been stagnant and declining since 1970. Government workers have made gains because the federal government can run up huge deficits due to the Petrodollar which was created by Henry Kissinger in 1973 during the Arab Oil embargo. In 1971 President Nixon could no longer redeem gold for dollars at $35 an ounce so he stopped gold redemption. In 1973 the price of oil rose 400% despite the fact that the Arabs were sending more tankers to US ports than in the past.
The Petrodollar agreement forced the world to pay for their oil imports in US dollars. That meant the US no longer had to make anything that foreigners wanted to buy. That made trade treaties like NAFTA, TPP and TTIP possible. America lost 57,000 manufacturing plants since NAFTA was passed but gained 55 million immigrants. And the politicians can’t seem to figure out why so many people can’t find jobs.
The Petrodollar had meant that America could buy foreign products for free. Just print some money and buy cars, electronics, clothes and the like for free. It also meant that foreigners were paying for the 900 US military bases occupying their lands by accepting I Owe You Nothing Federal Reserve Notes.
Some time in the Spring of 2016 the Petrodollar will officially be declared dead. Zero Hedge has been documenting its decline for the past 6 months. Jim Rickards is a consultant to the CIA and the US Defense Department. He has said that the dollar will be devalued 80% in a series of stages over a couple of years. He said that imports will cost Americans 500% more. That also means foreigners can buy the food off our grocery store shelves at what would appear to be bargain basement prices.
The US managed to delay for one year the acceptance of the Chinese yuan as the fifth currency to be part of the IMF’s basket of currencies in the SDR. The Chinese admitted they needed to do more to increase their ability to financial transactions directly without American controlled mechanisms like SWIFT (Society For Worldwide Interbank Transfer of Funds). They have set up many financial hubs where euros, pounds, pesos and other currencies can be directly exchanged for yuan without using dollars.
China and Russia have formed an alliance with Brazil, India, China, South Africa called BRICS. More than 120 other nations support BRICS which seeks to lower the value of the dollar so their currencies and resources will become more valuable. This will impoverish tens of millions of Americans.
The dollar is temporarily buoyed up in value because bad loans and derivatives denominated in dollars have to be liquidated by buying dollars. There is no demand for dollars to buy American products. There will be far less demand after the Saudis and the Gulf States accept euros, yuan and yen. A decline in the value of the dollar will accelerate the dumping of both US Treasury bonds and cash.
For the time being the Federal Reserve has propped up the dollar by buying Treasury bonds being dumped by China. That will not last long. By October 15, 2016 the dollar will have lost quite a bit of value, the US stock market will have suffered a severe correction and the IMF will be forced to accept the Chinese yuan in its basket of currencies along with the dollar, the euro, the pound and the yen.
There is a limit to how many tricks the Federal Reserve can play because Putin has removed the US military’s ability to threaten the oil states in the Mideast. China is doing the same in Asia.
And the dollar will be declining in value as the Federal Reserve will soon be printing a trillion dollars a month to absorb foreign dumping of Treasury bonds and to also cover both the US Treasury deficit and Wall Street’s bad investments. The Federal Reserve bought $1.73 trillion in fraudulent Mortgage Backed Securities to keep Wall Street criminals out of jail.
We will soon have a $19 trillion public federal debt. The interest on that at 5% would be $950 billion a year. At 10% that would be $1.9 trillion a year.
The dollar is going down. Putin is prepared for the future. Are you? Can you name anyone running for President who has a plan for worldwide Debt Cancellation and the creation of a non-interest bearing currency? How about the repeal of fractional reserve banking? Has anyone in the Congress mentioned arresting the Bankers and seizing their assets to pay for Debt Cancellation so we could end this Depression?
I do not see Putin as our Savior. He is working in his interests which are temporarily close to those of us who are in rebellion against Wall Street. But situations can and will change.
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