While reading in the comments section of a Zero Hedge article I came across the following question/quote regarding U.S. response to the situation between Russia and Ukraine:
“Why, pray tell me why, US is shooting itself in the foot?
Maybe this is how they planned to exit the QE – by hyperinflation in the US (diluting the debt) and throwing the blame to the rest of the world (namely Russia, China, Iran). Of course the regular Joe will pay a hefty price, but hey Joe, Russia is to blame for your misery (sarcastic).
🙂 just occurred to me…”
I think I would tweak the initial question just a little bit and add the word “continually” because it seems as if each and every U.S. response has been one where the downside for the U.S. is far greater than any pain it could ever impose on Russia financially. In fact, just 2 days ago JP Morgan refused to clear a payment on behalf of a Russian consulate to an insurance company. What was the upside here? Jim Sinclair correctly termed this action as an act of war. Did JP Morgan do this on their own in interpretation of “sanctions?” Are you kidding? Didn’t anyone in Washington think this through as the “blockage” was being carried out? Apparently not. How do you think we would react if one of our ambassador’s checks was “bounced” for an insurance premium?
We are clearly painting Russia into the very corner that they WANT to be in! Our actions of placing “timid” sanctions on Russia are doing two things. First it is displaying and revealing our “weakness” (the dollar) which invites further “pushes” and secondly is giving Mr. Putin “cause” to abandon the dollar…which we really cannot afford. By pushing Russia away from the dollar we are showing the world that business CAN be done without using dollars and Mr. Putin is showing the world exactly “how” it can be done. The latest deal between Russia and Iran worth “$20 billion” is an example. First, notice that the press uses a “$” sign where no dollars will be involved in any way. Secondly, this deal will be a “barter” deal or possibly use rubles but is certainly a “template” if you will of how a deal can be struck without using dollars. Oh, and a little side benefit is that Iran now gets to “sell” their oil as Russia will import it…stir it up and mix it in with their own oil and presumably then be used in Europe. What happened here you ask? We have allowed Russia off of the dollar standard, displayed a template of how to not use dollars and lifted the sanctions on Iran. Do you think that maybe our “allies” in Israel and Saudi Arabia might have slightly elevated blood pressures?
Getting back to the comment quote above that I started with, maybe this is exactly how QE is ended. Maybe this is how the game is ended and the tent collapsed. Maybe we really are that close to the complete loss of control in the financial markets (I believe we are). But, there MUST be a “reason” or something to point at to blame. The system can’t just collapse all on its own for no reason because then the guillotines will be rolled out. Those in charge of the system cannot be seen as “fraudsters,” they must be able to point at something, anything, and be able to say, “Look, if XYZ didn’t happen we would be fine. Our policies were working, ‘they’ did it.” In a sense, “they” will do it. “They” being the Russians, the Chinese, Indians, Brazilians etc. but “we” are the ones who originally set up the system and made the rules (back when we had the gold) which were fraudulent from the inception.
The average person must be fooled into thinking that his “situation” is not the fault of U.S. policymakers. The average person will be wiped out financially and will look for retribution. Banks will close and dollars will devalue leaving anyone who had saved all their life holding the bag but they must be made to believe that it all happened from “external” sources. I truly believe this. The dollar will collapse completely on its own if left alone but then the populace will call for “blood.” By pushing Russia into a corner we will force them to “pull the plug” for us. Brilliant!
I do want to say that this “thought process” didn’t just recently hit the scene. This was the plan going all the way back to 1971 (maybe even 1913). When Nixon shut the gold window, we truly from both a legal and moral standpoint defaulted to (on) the world. Henry Kissinger cutting the deal with the Saudis where only dollars could buy oil was merely a “band aid” that bought some time (40 years). They knew then, they have known all along and they now know that the system itself would need to be changed because it was fraudulent. The system as I see it was designed to never ever “settle” and thus the term “never pay.”
I have used the term “everything is worth nothing” and this is where we are headed once the knees are cut out from under the dollar. Think about it, your bank accounts, insurance policies etc. are all based in dollars, what will they be worth should the world one day wake up and say “we don’t want dollars?” Actually, they are already saying this; the better phrase is “we will not accept dollars.” Our foreign policy now seems to be pushing the world toward this eventuality. I cannot believe that this was by mistake or that foolishness in Washington is this widespread (well, yes I can)…it had to be the plan all along as far as I’m concerned.