In a recent article (Psychopaths and ** udake that prevail in Washington are leading the world to the death), I promised to look into the question of whether the U.S. economy will collapse before Washington in its quest for hegemony will lead us to a military conflict with Russia and China.
Washington is in a state of war since October 2001, when President George W. Bush came up with a pretext for the U.S. invasion of Afghanistan. This war has receded into the background when Bush came up with one more reason now for the invasion of Iraq in 2003, the war that was 8 years old with no significant success, and left Iraq in chaos, and dozens of people a day continue to die or get injured.
Not content with this, the Bush regime Obama in violation of international law continues to conduct military operations in Pakistan, Yemen and Africa, organizing military coups in Libya, is currently working to overthrow the Syrian government, and the military continues to march against Iran.
Continuing to surround Russia with military bases, and Washington began to surround China. He announced that most of its military forces in the next few years will be moved to the Pacific region, while Washington is working on the restoration of its military bases in the Philippines, is building another one on the South Korean island, agrees on the naval base in Vietnam and bases in other Asian countries.
Encirclement of China and Russia (and Iran) is a great challenge for the financially devastated country. With these wars and rescue packages for banksters, Bush and Obama doubled the national debt, at the same time being unable to cope with the collapse of the U.S. economy and the growth of the difficulties for the citizens of the country.
Unemployment and inflation in the U.S. is much higher than reported. In previous articles, I explained that based on the statistics of John Williams from shadowstats.com, official figures from the government, which appear in the headlines, undervalued. The unemployment rate (U3), which is constantly referred to in the headlines, do not take into account discouraged workers, who have not given up trying to find work. The government has also a second level of unemployment (U6), which rarely write, and that includes short-term discouraged workers. This figure is 15 percent. If you add a lot of time workers desperate for work, the current U.S. unemployment rate is 22 percent — a figure close to the level of unemployment since the great depression, rather than to the recessions that occurred after the war.
In June, the Fed announced that it will continue its policy of reducing the nominal interest rates, this time focusing on long-term Treasury bonds. As stated in the Federal Reserve, they will buy 30-year bonds at $ 400 billion.
It makes no sense to invest in long-term bonds at negative interest rates, when the U.S. government is gaining debts, and the Fed monetizing them, and when other countries are moving away from the flow of dollars. The potential for growth in the rate of inflation is high due to the monetization of the debt and the fall of the dollar exchange rate.
Some private investors and foreign central banks expect the dollar would lose its value and accumulate gold and silver bullion. Realizing the danger to the U.S. and its policies from a sharp rise in the price of bullion in 2011, the Federal Reserve has taken a number of compensatory actions. When the demand for physical bullion is pushing prices up, short-selling bullion on the paper market exert downward pressure on prices.
Similarly, when investors begin to flee Treasuries, causing a rise in interest rates, JP Morgan and the other dependent on the Federal Reserve banks are selling swaps on interest rates, offsetting the impact of sales of bonds the interest rate.
From 2002 to 2011, the economy has lost 3.5 million manufacturing jobs. These places have been replaced by low-paid vacancies waiters and bartenders (1,189,000), sometimes in an outpatient service for nursing care (1,512,000) and jobs to provide social support.
Despite the absence of the economic base, Washington's hegemonic aspirations remain unpunished. Other countries do not cease to be surprised unconsciousness Washington. Russia, China, India, Brazil and South Africa to trade with each other formed an agreement not to the dollar as a currency for international payments.
Fourth of July, China Daily reported: "Japanese politicians and prominent academics from China and Japan on Tuesday urged Tokyo to abandon outdated foreign policy to rely on the West and accept China as a key partner of the same as the U.S.. Published at the end of the Beijing-Tokyo Forum joint statement also calls on the two countries to expand trade and promoting free trade agreement between China, Japan and South Korea. "
The Chinese government, being wiser than Washington, is responsible for its military threats that beats its key Asian allies. As the Chinese economy is now as big as the U.S., is based on much more solid ground, and when the volume of trade with Japan is now more than the same volume with the United States, such a temptation on the part of China seems attractive. In addition, China for them just around the corner, while Washington away and drowned in his arrogance.
Washington, featuring international and their right middle finger, and the killing of its own citizens and those of its allied countries, as is the case in Pakistan, making the U.S. a rogue state.
Washington continues to monitor your purchased NATO puppets, but these puppet states are drowning in debt derivatives from their problems. Europe is close to collapse, and she has no more money to support the war in Washington over its hegemony.
Washington is isolated and despised element of the world community. He bought Europe, Canada, Australia, the former Soviet republic of Georgia (and almost Ukraine), and Colombia, but the mood is gradually turning against the rising Gestapo state, which showed their iniquity, cruelty, indifference and even hostility to human life and human rights.
The government, whose army with the help of the UK was unable to occupy Iraq after 8 years, and is compelled to end the conflict by putting the insurgents on the salary and paying them for the fact that they did not kill American soldiers and the government, whose army after 11 years have not been able to conquer having only light weaponry Taliban can not afford to organize a dignified war against Iran, Russia and China.
The only prospect, which relies on Washington, DC, is the first to use nuclear weapons, catching actively demonized their opponents by surprise, surprise bombing them to smithereens. In other words, destroying life on Earth.
Is not this program in Washington disclosed fomenting war Neocon Bill Kristol, who unabashedly declared publicly, "What good is a nuclear weapon if it can not be applied? '.
Paul Craig Roberts