The Economic Collapse of 2012 on a Global Scale

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A Look at the Big Picture. A full understanding of the coming economic meltdown by lead investors and economists.

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Prognosis 2012: Towards a New World Social Order

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Richard K. Moore | Global Research

Historical background – the establishment of capitalist supremacy

When the Industrial Revolution began in Britain, in the late 1700s, there was lots of money to be made by investing in factories and mills, by opening up new markets, and by gaining control of sources of raw materials. The folks who had the most money to invest, however, were not so much in Britain but more in Holland. Holland was the leading Western power in the 1600s, and its bankers were the leading capitalists. In pursuit of profit, Dutch capital flowed to the British stock market, and thus the Dutch funded the rise of Britain, who subsequently eclipsed Holland both economically and geopolitically.

In this way British industrialism came to be dominated by wealthy investors, and capitalism became the dominant economic system. This led to a major social transformation. Britain had been essentially an aristocratic society, dominated by landholding families. As capitalism became dominant economically, capitalists became dominant politically. Tax structures and import-export policies were gradually changed to favor investors over landowners.

It was no longer economically viable to simply maintain an estate in the countryside: one needed to develop it, turn it to more productive use. Victorian dramas are filled with stories of aristocratic families who fall on hard times, and are forced to sell off their properties. For dramatic purposes, this decline is typically attributed to a failure in some character, a weak eldest son perhaps. But in fact the decline of aristocracy was part of a larger social transformation brought on by the rise of capitalism.

The business of the capitalist is the management of capital, and this management is generally handled through the mediation of banks and brokerage houses. It should not be surprising that investment bankers came to occupy the top of the hierarchy of capitalist wealth and power. And in fact, there are a handful of banking families, including the Rothschilds and the Rockefellers, who have come to dominate economic and political affairs in the Western world.

Unlike aristocrats, capitalists are not tied to a place, or to the maintenance of a place. Capital is disloyal and mobile – it flows to where the most growth can be found, as it flowed from Holland to Britain, then from Britain to the USA, and most recently from everywhere to China. Just as a copper mine might be exploited and then abandoned, so under capitalism a whole nation can be exploited and then abandoned, as we see in the rusting industrial areas of America and Britain.

This detachment from place leads to a different kind of geopolitics under capitalism, as compared to aristocracy. A king goes to war when he sees an advantage to his nation in doing so. Historians can ‘explain’ the wars of pre-capitalist days, in terms of the aggrandizement of monarchs and nations.
A capitalist stirs up a war in order to make profits, and in fact our elite banking families have financed both sides of most military conflicts since at least World War 1. Hence historians have a hard time ‘explaining’ World War 1 in terms of national motivations and objectives.
In pre-capitalist days warfare was like chess, each side trying to win. Under capitalism warfare is more like a casino, where the players battle it out as long as they can get credit for more chips, and the real winner always turns out to be the house – the bankers who finance the war and decide who will be the last man standing. Not only are wars the most profitable of all capitalist ventures, but by choosing the winners, and managing the reconstruction, the elite banking families are able, over time, to tune the geopolitical configuration to suit their own interests.
Nations and populations are but pawns in their games. Millions die in wars, infrastructures are destroyed, and while the world mourns, the bankers are counting their winnings and making plans for their postwar reconstruction investments.

From their position of power, as the financiers of governments, the banking elite have over time perfected their methods of control. Staying always behind the scenes, they pull the strings controlling the media, the political parties, the intelligence agencies, the stock markets, and the offices of government. And perhaps their greatest lever of power is their control over currencies. By means of their central-bank scam, they engineer boom and bust cycles, and they print money from nothing and then loan it at interest to governments. The power of the banking elites is both absolute and subtle…

“Some of the biggest men in the United

States are afraid of something. They

know there is a power somewhere, so

organised, so subtle, so watchful, so

interlocked, so complete, so pervasive

that they had better not speak above

their breath when they speak in

condemnation of it.”

— President Woodrow Wilson

The end of growth – capitalists vs. capitalism

It was always inevitable, on a finite planet, that there would be a limit to economic growth. Industrialization has enabled us to rush headlong toward that limit over the past two centuries. Production has become ever more efficient, markets have become ever more global, and finally we have reached the point where the paradigm of perpetual growth can no longer be maintained.

Indeed, that point was actually reached by about 1970. Since then capital has not so much sought growth through increased production, but rather by extracting greater returns from relatively flat production levels.  Hence globalization, which moved production to low-waged areas, providing greater profit margins. Hence privatization, which transfers revenue streams to investors that formerly went to national treasuries. Hence derivative and currency markets, which create the electronic illusion of economic growth, without actually producing anything in the real world.

If one studies the collapse of civilizations, one learns that failure-to-adapt is fatal. Continuing on the path of pursuing growth would be such a failure to adapt. And if one reads the financial pages these days, one finds that it is full of doomsayers. We read that the Eurozone is doomed, and Greece is just the first casualty. We read that stimulus packages are not working, unemployment is increasing, the dollar is in deep trouble, growth continues to stagnate, business real estate will be the next bubble to burst, etc. It is easy to get the impression that capitalism is failing to adapt, and that our societies are in danger of collapsing into chaos.

Such an impression would be partly right and partly wrong. In order to understand the real situation we need to make a clear distinction between the capitalist elite and capitalism itself. Capitalism is an economic system driven by growth; the capitalist elite are the folks who have managed to gain control of the Western world while capitalism has operated over the past two centuries. The capitalist system is past its sell-by date, the banking elite are well aware of that fact – and they are adapting.

Capitalism is a vehicle that helped bring the bankers to absolute power, but they have no more loyalty to that system than they have to place, or to anything or anyone else. As mentioned earlier, they think on a global scale, with nations and populations as pawns. They define what money is and they issue it, just like the banker in a game of Monopoly. They can also make up a new game with a new kind of money. They have long outgrown any need to rely on any particular economic system in order to maintain their power. Capitalism was handy in an era of rapid growth. For an era of non-growth, a different game is being prepared.

Thus, capitalism has not been allowed to die a natural death. First it was put on a life-support system, as mentioned above, with globalization, privatization, derivative markets, etc. Then it was injected with a euthanasia death-drug, in the form of toxic derivatives. And when the planned collapse occurred, rather than industrial capitalism being bailed out, the elite bankers were bailed out. It’s not that the banks were too big to fail, rather the bankers were too politically powerful to fail. They made governments an offer they couldn’t refuse.

The outcome of the trillion-dollar bailouts was easily predictable, although you wouldn’t know that from reading the financial pages. National budgets were already stretched, and they certainly did not have reserves available to service the bailouts. Thus the bailouts amounted to nothing more than the taking on of immense new debts by governments. In order to fulfill the bailout commitments, the money would need to be borrowed from the same financial institutions that were being bailed out.

With the bailouts, Western governments delivered their nations in hock to the bankers. The governments are now in perpetual debt bondage to the bankers. Rather than the banks going into receivership, governments are now in receivership. Obama’s cabinet and advisors are nearly all from Wall Street; they are in the White House so they can keep close watch over their new acquisition, the once sovereign USA. Perhaps they will soon be presiding over its liquidation.

The bankers are now in control of national budgets. They say what can be funded and what can’t. When it comes to financing their wars and weapons production, no limits are set. When it comes to public services, then we are told deficits must be held in check. The situation was expressed very well by Brian Cowan, Ireland’s government chief. In the very same week that Ireland pledged 200 billion Euro to bailout the banks, he was being asked why he was cutting a few million Euro off of critical service budgets. He replied, “I’m sorry, but the funds just aren’t there”. Of course they’re not there! The treasury was given away. The cupboard is bare.

As we might expect, the highest priority for budgets is servicing the debt to the banks. Just as most of the third world is in debt slavery to the IMF, so the whole West is now in debt slavery to its own central banks. Greece is the harbinger of what is to happen everywhere.

The carbon economy – controlling consumption

In a non-growth economy, the mechanisms of production will become relatively static. Instead of corporations competing to innovate, we’ll have production bureaucracies. They’ll be semi-state, semi-private bureaucracies, concerned about budgets and quotas rather than growth, somewhat along the lines of the Soviet model. Such an environment is not driven by a need for growth capital, and it does not enable a profitable game of Monopoly.

We can already see steps being taken to shift the corporate model towards the bureaucratic model, through increased government intervention in economic affairs. With the Wall Street bailouts, the forced restructuring of General Motors, the call for centralized micromanagement of banking and industry, and the mandating of health insurance coverage, the government is saying that the market is to superseded by government directives. Not that we should bemoan the demise of exploitive capitalism, but before celebrating we need to understand what it is being replaced with.

In an era of capitalism and growth, the focus of the game has been on the production side of the economy. The game was aimed at controlling the means of growth: access to capital.  The growth-engine of capitalism created the demand for capital; the bankers controlled the supply. Taxes were mostly based on income, again related to the production side of the economy.
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Mass Media-How They Control You!

This is how they control the masses of this world through media – Yes we all are brainwashed.. doesn’t matters if we are in USA, Britain, France, India, Pakistan or any other part of the world.. we are being fed on deceptions, lies and personal agendas just to rule us.

The below amazing interview was done back in 1985 with a former KGB agent who was trained in subversion techniques. He explains the 4 basic steps to socially engineering entire generations into thinking and behaving the way those in power want them to. It’s shocking because our nation has been transformed in the exact same way, and followed the exact same steps.

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Pentagon Confronts Russia In The Baltic Sea

Rick Rozoff | Twelve months ago a new U.S. administration entered the White House as the world entered a new year.

Two and a half weeks later the nation’s new vice president, Joseph Biden, spoke at the annual Munich Security Conference and said “it’s time to press the reset button and to revisit the many areas where we can and should be working together with Russia.”

Incongruously to any who expected a change in tact if not substance regarding strained U.S.-Russian relations, in the same speech Biden emphasized that, using the “New World Order” shibboleth of the past generation at the end, “Two months from now, the members of the North Atlantic Treaty Organization will gather to celebrate the 60th year of this Alliance. This Alliance has been the cornerstone of our common security since the end of World War II. It has anchored the United States in Europe and helped forge a Europe whole and free.” [1]

Six months before, while Chairman of the Senate Foreign Relations Committee, he rushed to the nation of Georgia five days after the end of the country’s five-day war with Russia as an emissary for the George W. Bush administration, and pledged $1 billion in assistance to the beleaguered regime of former U.S. resident Mikheil Saakashvili.

To demonstrate how serious Biden and the government he represented were about rhetorical gimmicks like reset buttons, four months after his Munich address Biden visited Ukraine and Georgia to shore up their “color revolution”-bred heads of state (outgoing Ukrainian President Viktor Yushchenko is married to a Chicagoan and former Ronald Reagan and George H.W. Bush official) in their anti-Russian and pro-NATO stances.

While back in Georgia he insisted “We understand that Georgia aspires to join NATO. We fully support that aspiration.”

In Ukraine he said “As we reset the relationship with Russia, we reaffirm our commitment to an independent Ukraine, and we recognize no sphere of influence or no ability of any other nation to veto the choices an independent nation makes,” [2] also in reference to joining the U.S.-dominated military bloc. Biden’s grammar may have been murky, but his message was unmistakeably clear.

Upon his return home Biden gave an interview to the Wall Street Journal, the contents of which were indicated by the title the newspaper gave its account of them – “Biden Says Weakened Russia Will Bend to U.S.” – and which were characterized by the Center for Strategic and International Studies as “the most critical statements from a senior administration official to date vis-a-vis Russia.” [3]

It took the Barack Obama government eight months to make its first friendly gesture to Russia. In September of last year the American president and Defense Secretary Robert Gates announced that they were abandoning the Bush administration’s plan to station ten ground-based midcourse interceptor missiles in Poland in favor of a “stronger, smarter, and swifter” alternative.

The new system would rely on the deployment of Aegis class warships equipped with SM-3 (Standard Missile-3) missiles – with a range of at least 500 kilometers (310 miles) – which “provide the flexibility to move interceptors from one region to another if needed,” [4] in Gates’ words.

The first location for their deployment will be the Baltic Sea according to all indications.

The proximity of Russia’s two largest cities, St. Petersburg and Moscow, especially the first, to the Baltic coast makes the basing of American warships with interceptor missiles in that sea the equivalent of Russia stationing comparable vessels with the same capability in the Atlantic Ocean near Delaware Bay, within easy striking distance of New York City and Washington, D.C.

Although Washington canceled the earlier interceptor missile plans for Poland, on January 20 the defense ministry of that country announced that not only would the Pentagon go ahead with the deployment of a Patriot Advanced Capability-3 anti-ballistic missile battery in the country, but that it would be based on the Baltic Sea coast 35 miles from Russia’s Kaliningrad district. [5]

The previous month Viktor Zavarzin, the head of the Defense Committee of the Russian State Duma (the lower house of parliament), said “Russia is concerned with how rapidly new NATO members are upgrading their military infrastructure” and “that Russia was especially concerned with the reconstruction of air bases in the Baltic countries for NATO’s purposes which include signal and air intelligence radio of Russian territory.” [6]

As it should be.

Since the Baltic Sea nations of Estonia, Latvia and Lithuania were ushered into NATO as full members in 2004, warplanes from Alliance member states have shared four-month rotations in patrolling the region, with two U.S. deployments to date.

Shortly before the patrols began almost six years ago the Russian media reported that “Relations between Russia and Estonia have been tense ever since NATO built a radar station on the Russian-Estonian border last year. On March 23, Russian Foreign Ministry spokesman Alexander Yakovenko warned Russia would retaliate ‘if NATO planes fly over Russian borders after the Baltic nations join the alliance.'” [7] Read more of this post

Bases, Missiles, Wars: U.S. Consolidates Global Military Network

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Rick Rozoff | Afghanistan is occupying center stage at the moment, but in the wings are complementary maneuvers to expand a string of new military bases and missile shield facilities throughout Eurasia and the Middle East.

The advanced Patriot theater anti-ballistic missile batteries in place or soon to be in Egypt, Georgia, Germany, Greece, Israel, Japan, Kuwait, the Netherlands, Poland, Qatar, Saudi Arabia, South Korea, Taiwan, Turkey and the United Arab Emirates describe an arc stretching from the Baltic Sea through Southeast Europe to the Eastern Mediterranean Sea and the Caucasus and beyond to East Asia. A semicircle that begins on Russia’s northwest and ends on China’s northeast.

Over the past decade the United States has steadily (though to much of the world imperceptibly) extended its military reach to most all parts of the world. From subordinating almost all of Europe to the North Atlantic Treaty Organization through the latter’s expansion into Eastern Europe, including the former Soviet Union, to arbitrarily setting up a regional command that takes in the African continent (and all but one of its 53 nations). From invading and establishing military bases in the Middle East and Central and South Asia to operating a satellite surveillance base in Australia and taking charge of seven military installations in South America. In the vacuum left in much of the world by the demise of the Cold War and the former bipolar world, the U.S. rushed in to insert its military in various parts of the world that had been off limits to it before.

And this while Washington cannot even credibly pretend that it is threatened by any other nation on earth.

It has employed a series of tactics to accomplish its objective of unchallenged international armed superiority, using an expanding NATO to build military partnerships not only throughout Europe but in the Caucasus, the Middle East, North and West Africa, Asia and Oceania as well as employing numerous bilateral and regional arrangements.

The pattern that has emerged is that of the U.S. shifting larger concentrations of troops from post-World War II bases in Europe and Japan to smaller, more dispersed forward basing locations south and east of Europe and progressively closer to Russia, Iran and China.

The ever-growing number of nations throughout the world being pulled into Washington’s military network serve three main purposes.

First, they provide air, troop and weapons transit and bases for wars like those against Yugoslavia, Afghanistan and Iraq, for naval operations that are in fact blockades by other names, and for regional surveillance.

Second, they supply troops and military equipment for deployments to war and post-conflict zones whenever and wherever required.

Last, allies and client states are incorporated into U.S. plans for an international missile shield that will put NATO nations and select allies under an impenetrable canopy of interceptors while other nations are susceptible to attack and deprived of the deterrent effect of being able to retaliate.

The degree to which these three components are being integrated is advancing rapidly. The war in Afghanistan is the major mechanism for forging a global U.S. military nexus and one which in turn provides the Pentagon the opportunity to obtain and operate bases from Southeast Europe to Central Asia.

One example that illustrates this global trend is Colombia. In early August the nation’s vice president announced that the first contingent of Colombian troops were to be deployed to serve under NATO command in Afghanistan. Armed forces from South America will be assigned to the North Atlantic bloc to fight a war in Asia. The announcement of the Colombian deployment came shortly after another: That the Pentagon would acquire seven new military bases in Colombia.

When the U.S. deploys Patriot missile batteries to that nation – on its borders with Venezuela and Ecuador – the triad will be complete.

Afghanistan is occupying center stage at the moment, but in the wings are complementary maneuvers to expand a string of new military bases and missile shield facilities throughout Eurasia and the Middle East.

On January 28 the British government will host a conference in London on Afghanistan that, in the words of what is identified as the UK Government’s Afghanistan website, will be co-hosted by Prime Minister Gordon Brown, Afghanistan’s President Karzai and United Nations Secretary General Ban Ki-moon and co-chaired by British Foreign Minister David Miliband, his outgoing Afghan counterpart Rangin Spanta, and UN Special Representative to Afghanistan, Kai Eide.

The site announces that “The international community are [sic] coming together to fully align military and civilian resources behind an Afghan-led political strategy.” [1]

The conference will also be attended by “foreign ministers from International Security Assistance Force partners, Afghanistan’s immediate neighbours and key regional player [sic].”

Public relations requirements dictate that concerns about the well-being of the Afghan people, “a stable and secure Afghanistan” and “regional cooperation” be mentioned, but the meeting will in effect be a war council, one that will be attended by the foreign ministers of scores of NATO and NATO partner states.

In the two days preceding the conference NATO’s Military Committee will meet at the Alliance’s headquarters in Brussels, Belgium. “Together with the Chiefs of Defence of all 28 NATO member states, 35 Chiefs of Defence of Partner countries and Troop Contributing Nations will also be present.” [2]

That is, top military commanders from 63 nations – almost a third of the world’s 192 countries – will gather at NATO Headquarters to discuss the next phase of the expanding war in South Asia and the bloc’s new Strategic Concept. Among those who will attend the two-day Military Committee meeting are General Stanley McChrystal, in charge of all U.S. and NATO troops in Afghanistan; Admiral James Stavridis, chief U.S. military commander in Europe and NATO’s Supreme Allied Commander; Pakistani Chief of the Army Staff General Ashfaq Parvez Kayani and Israeli Chief of General Staff Gabi Ashkenazi.

Former American secretary of state Madeleine Albright has been invited to speak about the Strategic Concept on behalf of the twelve-member Group of Experts she heads, whose task it is to promote NATO’s 21st century global doctrine.

The Brussels meeting and London conference highlight the centrality that the war in Afghanistan has for the West and for its international military enforcement mechanism, NATO.

During the past few months Washington has been assiduously recruiting troops from assorted NATO partnership program nations for the war in Afghanistan, including from Armenia, Bahrain, Bosnia, Colombia, Jordan, Moldova, Mongolia, Montenegro, Ukraine and other nations that had not previously provided contingents to serve under NATO in the South Asian war theater. Added to forces from all 28 NATO member states and from Partnership for Peace, Mediterranean Dialogue, Istanbul Cooperation Initiative, Adriatic Charter and Contact Country programs, the Pentagon and NATO are assembling a coalition of over fifty nations for combat operations in Afghanistan.

Almost as many NATO partner nations as full member states have committed troops for the Afghanistan-Pakistan war: Afghanistan itself, Armenia, Azerbaijan, Australia, Austria, Bahrain, Colombia, Egypt, Finland, Georgia, Ireland, Jordan, Macedonia, Mongolia, Montenegro, New Zealand, Pakistan, Singapore, South Korea, Sweden, Ukraine and the United Arab Emirates.

The Afghan war zone is a colossal training ground for troops from around the world to gain wartime experience, to integrate armed forces from six continents under a unified command, and to test new weapons and weapons systems in real-life combat conditions.

Not only candidates for NATO membership but all nations in the world the U.S. has diplomatic and economic leverage over are being pressured to support the war in Afghanistan.

The American Forces Press Service featured a story last month about the NATO-led International Security Assistance Force’s Regional Command East which revealed: “In addition to…French forces, Polish forces are in charge of battle space, and the Czech Republic, Turkey and New Zealand manage provincial reconstruction teams. In addition, servicemembers and civilians from Egypt, Jordan and the United Arab Emirates work with the command, and South Korea runs a hospital in the region.”

With the acknowledgment that Egyptian forces are assigned to NATO’s Afghan war, it is now known that troops from all six populated continents are subordinated to NATO in one war theater. [3] Read more of this post

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