[Half a year later, what our Cassandra was saying in Septerber 2007 stands up very well. -- Brilliant!! -Fred]

October 3, 2007

Elaine Meinel Supkis

The G7 dwarves can't figure out what is going on. ...........

[Reference to and quote from Financial Times story.]

This article about the 7 Dwarves is most interesting. I hope the Financial Times doesn't take offense if I quote this article rather frequently since it is a historic document and this is a mere 'blog' which is trying to put together an accurate history of the collapse of the global banking/trade systems. This is the central part of the greater Decline and Fall of the European Empires.

...........................

I beg everyone, the reformation of our system is of vital necessity for the US and this does NOT involve tax cuts or dropping interest rates! Quite the opposite. It means dropping our imperial self-image and embracing the concept of the United Nations or we can accept the reality that China will now be the world's top imperial power. At least, with the United Nations, we might keep some control over world events!

But the empire is finished. Will it be destroyed? Yes! Shall we do it peacefully or will we choose WWIII? I beg everyone to understand, there are only two choices: to peacefully withdraw like Russia did in 1990 or to violently collapse like Germany and Japan did and England finally did via WWI and WWII.

............................

The US has the most sovereign IOUs on earth, bar none. Japan is #2 in soveriegn debt. Indeed, its sovereign debts are 9X greater than Japan's FOREX reserves while China's is 4X SMALLER than their FOREX reserves! This is most astonishing.

And it means we can't bark at China to correct world trade via changing the value of the yuan. This is because China has a grip on the world banking system because...hold onto your hats, everyone....China is the bank!

........................................................

China will assent to this only if we resign our imperial powers. This means, Japan must form a strong alliance with China, Taiwan must be re-integrated with China, Korea reunited and in a strong military/economic alliance with China, etc. [This view of what China is getting includes Elaine's emerging notion of Japan's part in “the concessions that were demanded from Japan and the US” I referred to in my message to friends of September 21, 2007 - Fred] And...this means world history changes. I assure everyone, China will happily do this peacefully.

.....................

. So why are the Europeans joining JAPAN in attacking China's sound economic practices? Eh? Easy to see: Europe wants RUSSIA destroyed! [Just bear with her. She's not crazy!!]

......................................

And if everyone thinks the dollar can do what the pound failed to do in 1930: keep the world banking system going on a basis of an imperial currency of value when the empire has gone bankrupt....we are in the middle of watching the world's banking system crash and this is not due to the yuan, it is due to the dollar. Just like in 1930, there was nothing wrong with the dollar but the pound was dead as a dodo as a world currency.

.......................................................

“At other times, as well, the Federal Reserve has acted successfully to prevent potentially devastating financial seizures: notably, after the stock market crash of October 19, 1987, and after the terrorist attacks of September 11, 2001. ”

................

If the Fed considers both of these situations to be success stories, we are doomed. The solutions they applied were to create much worse monsters in the future. The distress of the 1987 stock market collapse was fixed by choosing policies that caused our trade deficit to balloon hugely.

.......................

So on 9/11, they did the same thing only this is a total lie! The Fed dropped rates well before 9/11. I wish he consulted with his own charts before making this stupid speech. Now on to the 'credibility' problem: no one believes a thing the Fed says anymore.

.............................no one goes to the deadly IMF for loans. Well, DUH. They go to the real bank, the one that has a trade surplus with the world, one that has the world's biggest FOREX reserves: China. The dragon is never mentioned as being the power behind all this. The Fed must pretend all this hinges on them and not on Hu and Wen over There.