John:
My assessment is that 90% of the value of the U.S. dollar comes from the U.S. military. After we had our satellite systems in place, Cheney said “deficits don’t matter.” The US debt and deficit financing is no longer a debt system. It is a global taxation system.
Catherine
John wrote:
Could you expand on this thought just a little? This is one very sober line of reasoning.
John:
Global treasuries and sovereign wealth funds, central banks and a variety of large institutions buy Treasury securities or hold dollars not because there is economic value behind them or because these financial assets are sound fiscally or in terms of credit. They buy them because if they don’t buy them, their current holdings will drop in value faster (that is given their current holdings, they are better off with a managed fall that a precipitous one) and because they are forced to — both in terms of trade agreements — and because they have a gun at their head. If they don’t buy, they and their population will be subject to a wide variety of demonstrations of physical and financial force that will result in loss of life.
Hence, demand for U.S. dollars and government and agency bonds continues even as value falls. The losses on these holdings represents a tax paid to the “Empire.” The fundamental system is as old as the hills. It is based on force. However, this tax is not paid through the income statements, it is paid through the balance sheet. Hence, national legislators do not have to pass bills to authorize their people paying the tax. There is no disclosure.
This global taxation system can be implemented and enforced through the back door without the average global citizen understanding what is happening. Rather, it is invisible to all but the most financially sophisticated people.
What the implementation of this system means is that the household drain I describe here and the community drain I describe here are happening globally. That is, the Slow Burn (described here ) is draining everyone globally, not just in the U.S.
A recent Gallup poll published in the Wall Street Journal on June 26, shows that the American institution most respected is the military — 45% of Americans surveyed had a great deal of confidence in the American military and 26% had quite a lot of confidence in them. This compares to 6% and 6% for Congress and 7% and 13% for big business. Also in line with understanding who and what puts bread on the table, the next most respected institution after the military is small business with scores of 28% and 32%.
Abraham Lincoln was right, “You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time.”
Interesting articles. China has a strong military. Why would China fear the United States enough to buy junk bonds? There must be more to the story. America signed trade agreements with China which gave China an advantage and allowed them to generate the surplus it has. Maybe not so much a global tax as it is putting to use the surplus our leaders created. China bankers buy mortgage debt helping to create a housing bubble. They willing take a loss to create a housing bust. After which the U.S. government buys up and nationalizes the mortgage industry. A core principal of communism is property is owned by the state. China’s central bank is aiding the U.S. government in an effort to become more communist? Who centralizes the central banks? Do all roads lead to Rome?
Rees:
Yes. Thanks!
“The issue which has swept down the centuries and which will have to be fought sooner or later is The People vs. The Banks.” – Lord Acton
Catherine
Catherine
Have you read The Lost Science of Money by Stephen Zarlenga? See http://www.monetary.org
He traces how the structurally unjust money system has been created over centuries to concentrate wealth into the hands of a very few.
The book exposes how a gang secretly exercises its power over money thereby enriching itself to the detriment of society and how to reverse the process.
I don’t believe the U.S. has the military might to enforce a global taxation system, without destroying it outright with nuclear weapons. It is madness to think of things in those terms, but I have seen signs from this current group of pirates and thugs of the same nihilistic mindset that was present in Germany when the Allies were closing in on Berlin—if we can’t have it, we will destroy it so no one else can have it.
Force always eventually eats itself.
No exceptions.
Best not be underneath when it collapses.
Hi,
I’m new to this site and I am quite impressed. This blog post is quite interesting. One would seem to infer that foreign gov’ts purchasing t-bills to bolster the US military is mainly for protection purposes, particularly against China, Russia, N. Korea, and rogue gov’ts in the Middle-east. As a strong military requires a strong currency and a strong economy, I take it that the t-bills would be forfeit in the future if politically required, thus taking dollars out of circulation and rebalancing the global money supply.
It is an interesting point of view.
Thanks,
James
Turtling:
Thank you, Catherine. Turtles outdistance hares in rough weather. It is difficult to give the overall planetary military picture. We tend to think in the past. In the larger picture the power/information line has shifted GREATLY and is now South to North. It has been noted that historically ‘northern capitals’ tend to win in any conflict. This has reversed. Greater power is now below equator. It is also axiomatic that the world ‘feminizes’ at the equator. This tends to increase, not decrease, military resolve when conflict does occur.
Suggestion, (Opppps, I know, just for thought), and question:
Suggestion: I need avoid the word ‘international’ here, say ‘geographic expansion’. I was sitting outside and thinking of the best place that Catherine Fitts could place some turtles if only had a few. You are in line with all world turtles. Numbered in order: 1- Seychelles, 2- Sao Tome, 3- Barbados, 4- Andaman. Andaman last as is surrounded by UK firewalls. But if that would fly, would fly big. Many at top seeing same things you are, just not in news. I would write two (one former) military officers simultaneously, ‘cc’ing both: General Charles Krulac and General William E. Ward. (General Ward address on AFRICOM: General Krulac just write Pentagon & ask to pass to former Marine Commandant now in banking.) May come in sideways, not direct, but can see you in Switzerland talking to Nabisco.
Question: Many look to Solari for good overall picture. I am horrid in economics and keep wondering full significance of your world inflation area map. I was only seeing ‘adjustment’ problems re ‘free trade’. I know you saw much more. Three sentences would be helpful to many.
As things do ‘go local’ many giant problems will turn to nothing. I include the entire drug issue. All economies are, in one way or another, really fiat. To borrow on nothing you need a cause. Military protection has been best working ‘cause’, both real and created. Top also is thinking of what to, and how to, switch. ‘Environment’, if and of itself, is falling flat. As areas go local drug issue takes care of itself. I am thinking of Hawaii prior to White man coming. They had a town for doing drugs, getting drunk, and getting into stupid fights. Just a ‘let-off-steam’ place. To fund aforementioned ‘secret-non-use-of-nuke’ agreements control of drugs was needed both for funds and inner collective bonding, (i.e. trust). In a sense the ‘nut’ town took over the islands, (planet). As things go local areas will vary, policing will go local what allowed and what policed. It will quickly become a non-issue. As a short list of ‘causes’ fail they will need to climb on the back of the turtle(s).
The thing that has struck me most about you was the assistance you garnered from such as cabdrivers and elevator operators when in difficult situations. That is still turtle worldwide.
Thank you,
Michael