How the US Uses War to Protect the Dollar

The Gods of Money

William Engdahl (2015)

The first video is a 2015 presentation by William Engdahl about his 2010 book The Gods of Money. It focuses on the use of US economic and military warfare to maintain the supremacy of the US dollar as the global reserve currency.

As his point of departure, he begins with the 1944 Bretton Woods agreement, in which the Allied powers agreed to use the gold-backed US dollar as the world’s reserve currency. In 1971 when Nixon was forced to end the gold standard,* the gold-backed US dollar was replaced by the “petrodollar.” According to Engdahl, it was so named because of a secret agreement the US made with Saudi Arabia – in return for a guarantee that OPEC would only trade oil in US dollars, the US guaranteed the Saudis unlimited military hardware.

In this way, oil importing nations (most of the world) were forced to retain substantial US dollar reserves. This was the only way they could provide their economies with a continuous supply of oil.

The petrodollar remained supreme until the mid-1980s, when the collapse of the US Savings and Loan industry (a pre-cursor of the 2007 banking collapse) raised concerns in Europe that the US was failing as a super power. Fearing the US economy was collapsing, they created the euro and the Eurozone, to prevent the Soviet Union or China from filling the power vacuum.

The financial warfare unit of the US treasury responded by feeding hedge fund manager and currency speculator George Soros secret information that enabled him to lead an attack on the British pound. This, in turn, destabilized the British economy to the point the UK no longer qualified to join the euro.

In 1997 the US Treasury and Soros made a a similar attack on economies of Southeast Asia (Thailand, South Korea, Indonesia, Hong Kong, Laos, Malaysia, Philippines) that attempted to use currencies other than the dollar as their reserve currencies.

In 2010, after the US government had run three years of $1 trillion deficits, China, Russia and Japan announced their intention of selling US Treasury bonds (which the US government sells to finance its debt) to increase their euro reserves. Concerned this placed the US dollar on the brink of catastrophic collapse, the US Treasury and Soros attacked the Euro directly by collapsing the Greek economy. The mechanism Soros used was to direct his hedge funds to dump the sovereign treasury bonds that financed Greek debt.** When the European Central Bank announced its commitment to a Greek bail-out, the US Treasury and Soros followed up with an attack on Irish, Spanish and Portuguese sovereign bonds.


*A US economic crisis led to massive foreign demand for US dollar redemption that threatened to deplete US gold reserves.

** The immediate effect of bondholders dumping Greek bonds raised interest rates on Greek debt to a level that threatened to bankrupt their government.

 

 

The second clip is a Guns and Butter radio interview with Engdahl. It focuses on a second area the Gods of Money covers, namely the long US battle to abolish their private central bank (aka the Federal Reserve) and end the ability of private banks to create money out of thin air (see How Banks Create Money Out of Thin Air).

After a brief explanation of fractional reserve banking, whereby 97% of our money is created by private banks, Engdahl traces the history of the First Bank of the United States, created by Alexander Hamilton in 1791. The latter was the first US central bank, 80% owned by private (mostly Rothschild-controlled) banks in the City of London and 20% owned by the US government. President James Madison’s refusal to renew the bank’s charter in 1811 would result in Britain and the US going to war in 1812.

When the war ended in 1815, the American war debt was so substantial, the US had no choice but to charter the Second Bank of the United States, which once again was 80% controlled by London banks.

In 1832, Andrew Jackson refused to renew the bank’s charter, and the US had no central bank between 1832 and 1913. In 1913 when President Woodrow Wilson secretly colluded with the global banking establishment to create the Federal Reserve.

Both Lincoln and Kennedy challenged the exclusive role private banks play in creating the US money supply – Lincoln by issuing greenbacks (rather than borrowing money from private banks) to pay for the civil war and Kennedy by issuing silver certificates directly redeemable by the US Treasury. In both cases, Engdahl feels their defiance of the international banking establishment played a role in the decision to assassinate them.

How Corporations Used Podesta to Corrupt the Clintons and Obama

The Empire Files: Abby Martin Exposes John Podesta

(2016)

This segment of The Empire Files focuses on the Wikileaks reveal about the obscenely corrupt relationship between John Podesta, the Clintons and Barack Obama. My immediate reaction on watching it was relief and gratitude that Hillary lost the presidency.

Hillary’s campaign manager John Podesta is, first and foremost, is a corporate lobbyist who highest loyalty is to his clients. The Podesta Group, which he owns with his brother, Tony, lobbies for the most powerful corporations in the world, as well as the brutal governments of Saudi Arabia, Qatar, Kuwait and al-Maliki (Iraqi prime minister 2006-2014). The Wikileaks emails reveal unequivocally that John Podesta systematically (and illegally) used high ranking positions in both the Clinton and Obama administration to advance the profit interests of his private clients.

Under Bill Clinton, it was also John Podesta’s role to covered up numerous instances in which Bill and Hillary Clinton used his position as Arkansas governor for personal financial gain.

When Obama became president, Podesta (who would become Obama’s senior White House advisor), allowed his client Citibank to dictate nearly all of Obama’s cabinet appointments. Podesta would go on to form the Center for American Progress, a supposedly non-profit group that illegal lobbied for private clients of the Podesta Group to receive federal subsidies and lax regulatory treatment.

The Billionaires Who Helped Destroy Democracy

The Mayfair Set: Four Stories About the Rise of Business and the Decline of Political Power

Directed by Adam Curtis (1999)

Film Review

The Mayfair Set is a four part documentary series profiling the right wing financiers responsible for the financialization of the British-American economy in the seventies and eighties. It also explores the simultaneous transfer of real power away from elected representatives to banks and financial markets. “Mayfair Set” refers to a private London gambling club – the Clermont Club – where many of these future billionaires were members.

Part 1 – concerns British aristocrat Colonel David Sterling, founder of the British SAS (Special Air Service). In the sixties and seventies, Sterling created a series of private mercenary armies to fight independence movements in Africa and elsewhere. In addition to secretly fighting Egypt’s invasion of Yemen in 1962, he also set up numerous arms deals for Saudi Arabia,* with the assistance of notorious Saudi arms dealer, Adnan Khashoggi.** He also created the Saudi air force.

Part 2 – concerns two right wing Clermont Club members John Slater and Tiny Rollin. Slater was a corporate raider who almost singlehandedly wiped out Britain’s manufacturing sector in the seventies and eighties. He did so by targeting specific companies for hostile takeover, stripping their assets, sacking thousands of workers, and investing the proceeds in the share market. Rollin was responsible for bilking newly independent African nations of their mines, factories and plantations.

Part 3 – concerns Slater’s fellow corporate raider, Michael Goldsmith, who emigrated to the US in 1980 and paired up with junk bond guru Michael Milken to destroy America’s manufacturing base by initiating dozens of hostile takeovers of US companies. In 1990 Milken was sentenced to 3 ½ years prison on 94 counts of fraud, racketeering and insider trading.

Part 4 – concerns the rise to power of Clermont Club darling Margaret Thatcher and her (controversial) embrace of Egyptian businessman Mohamed Al-Fayed. Al-Fayed saved her government when currency speculator George Soros led a vicious attack on the British pound in 1992. Al-Fayed would subsequently blow the whistle to the Guardian on all the British MPs who accepted bribes from him. Al-Fayed was father to Dodi, the boyfriend killed in the car crash with Princess Diana.


*British arms sales to Saudi Arabia, which continue to the present day, have become extremely controversial owing to the Saudis’ carpet bombing of Yemen and the resulting humanitarian crisis.  See Shelve UK arms sales to Saudis over Yemen, say two MPs’ committees

**Khashoggi first came to public attention for his role in the Iran-Contra scandal, in which George Herbert Walker Bush and other members of the Reagan administration illegally sold weapons to Iran to finance their illegal war against Nicaragua’s Sandinista government. Khashoggi also had direct links with the alleged 9-11 terrorists (see Spike the News) and was the uncle of Dodi Al Fayed, the boyfriend killed in the car crash with Princess Diana.

 

Falling Oil Prices: a Saudi Viewpoint

Inside Story – What’s Behind the Falling Oil Prices

Al Jazeera (2015)

Film Review

A most revealing documentary. Unlike western pundits who speculate about conspiracies to wipe out shale oil producers (ie fracking) and the oil  economies of Russia and Venezuela, these Middle East analysts stick to economic fundamentals.

The three analysts identify three main factors behind the present oil glut: shale gas production, a big increase in renewable energy production and dropping demand by emerging economies such as China.

They maintain Saudi Arabia’s primary motivation for current output levels is fear of losing “market share” if they unilaterally cut oil production.

There’s also an interesting discussion about the Saudi plan to introduce taxation to help reduce their $98 billion deficit.

Inside the Brutal Reality of Saudi Arabia

Inside the Dark Kingdom: Butchery, Slavery and History of Revolt

Abby Martin (2015)

Film Review

Inside the Dark Kingdom is a documentary celebrating the irony of Saudi Arabia’s selection to head the UN Panel of Human Rights. The blatant hypocrisy of the (successful) US campaign for this tyrannical kingdom to champion global human rights is obvious from the simple statement of facts. As is the duplicity of trying to depose the so-called “bloody dictator” of Syria while openly supporting the Saudi reign of terror.

The film investigates Saudi Arabia’s brutal and arbitrary criminal justice system, their brutal oppression of women, their virtual enslavement of migrant workers, their recent invasion of Yemen, their role in 9-11 and their reliance on US military assistance to suppress human rights organizing.

Saudi trials take place in secret, often without legal representation for the accused. Saudi subjects can be beheaded, stoned or crucified for crimes such as adultery, blasphemy, homosexuality and drug use and imprisoned and lashed for human rights advocacy or being victimized by sexual assault (typically rape victims receive more lashes than the men who rape them). Forty-five percent of Saudi executions are for non-violent drug crimes.

Saudi Uprisings

You rarely hear about Saudi Arabia’s long history of popular uprisings (and their brutal suppression) in the corporate media. The US first began collaborating with the Saudi royal family to suppress human rights in 1953, when Aramco (Arabian Oil Company workers) went on strike demanding a union. The US responded by establishing the US Training Mission in Saudi Arabia, which assisted the Saudi government in torturing and assassinating union leaders.

Saudi Arabia had their first failed revolution in 1962, when a Shia-led uprising demanded that oil profits be used to address poverty rather than to increase the wealth of American oil companies and the Saudi royal family.

Inspired by the 1979 revolution in Iran, rebels in the eastern Shia region of Saudi people launched massive street protests. These were crushed when the government tortured and assassinated key leaders and destroyed (via bombing) of dissident civilian enclaves.

The Saudi Arab Spring

Following the Arab Spring rebellions that blossomed in Tunisia and Egypt in 2011, there were Arab Spring rebellions in three major Saudi cities. The royal family responded by declaring martial law and banning any mainstream or social media favorable to the Arab Spring or unfavorable to the royal family. After arresting, torturing and/or assassinating of key organizers (and their families), the government immediately quadrupled their arms imports from the US.

The primary purpose of all this military hardware is to suppress dissent, not only in Saudi Arabia, but in Bahrain (the Saudi Army invaded Bahrain to suppress their Arab Spring uprising) and Yemen. Since April, 150,000 Saudi troops have invaded Yemen and killed 4,000 Yemenis – more than half of them civilians.

The 1945 Oil Protection Agreement

Martin also traces the history of the unique US-Saudi relationship, which started in 1945 with the signing of an official Oil Protection Agreement and the installation of a US naval base.

Dating back to 1988 the last four US presidents have had close business and personal relationships with the Saudi royal family. At present the Saudi princes are major donors to the Clinton Foundation.

Reducing Foreign Policy to Good vs Evil

Bitter Lake

by Adam Curtis (BBC) 2015

Film Review

By now, people will have noticed I’m a bit of an Adam Curtis fanatic (Curtis also produced The Century of the Self). Like all his documentaries, Bitter Lake focuses on propaganda and ideological manipulation by the political elite. This film traces how fanatical Muslim sects like the Taliban and ISIS are the direct result of western colonization of the Middle East – and how US and British leaders deliberately deceive their citizens by reducing foreign policy to a simple metric of good and evil.

In Afghanistan, this oversimplification created an extraordinary dilemma for US and British troops and confronting the spontaneous Afghan insurgency that opposed the occupation. They naively believed they were bringing democracy to Afghanistan. In reality, they were substantially increasing the power and brutality of corrupt, heroin-trafficking war lords. The documentary artfully intersperses great footage of the Soviet occupation of Afghanistan with video from the more recent US occupation. The parallels between the two are uncanny.

Roosevelt’s Meeting with the Saudi King

The film takes its title from a 1945 meeting Roosevelt had with Ibn Saud, the king of Saudi Arabia, at Bitter Lake on the Suez Canal. The purpose of the meeting was to draw up a mutual security agreement that would keep Saudi oil fields under US control.

Curtis goes on to trace the rise of Wahhabism in Saudi Arabia, starting with the Wahhabist Bedouins who first brought the House of Saud to power in 1932. There was constant tension between the Saudi princes, who sought to modernize Saudi Arabia, and the Whahhabists, who opposed all imperialist development and sought to transform the country into a seventh century caliphate.

In 1964, King Faisal sought to alleviate this tension by sending the Wahhabists abroad to fight the growing influence of communism in the Muslim world. With US support, he used them to set up up madrassa throughout the Muslim world to train low income boys in Wahhabism.

The Economic Impact of Higher Oil Prices

In 1973 the US-Saudi relationship experienced a major breakdown when the US sided with Israel in its war against its Arab neighbors. By quintupling the price of oil, King Faisal forced the US and Israel to agree to a ceasefire.

The higher oil prices led to a total transformation of the global economic system. It caused mucho petrol dollars to flood into the Middle East, which the Saudis and other Mid East governments turned over to US and British banks to invest for them. This would provide the impetus for the “financialization” of the global economy, in which western capitalism would abandon manufacturing to focus on creating and selling financial products.

Higher prices for all commodities would also result in massive economic instability in the western world over the next seven years. A steep reduction in manufacturing jobs and wages would led to widespread popular unrest, which would bring right wing governments to power in most western democracies.

The Soviet Invasion

Curtis carefully outlines the historical events in Afghanistan that would lead to the overthrow of the monarchy in 1973, the Marxist revolution in 1978, the Soviet invasion in 1979 and the US/Saudi collaboration to recruit Saudi Wahhabists to defeat the Soviet occupation. The most prominent of these freedom fighters, known as the Mujahideen, was a Saudi highway engineer and CIA asset known as Osama bin Ladin.

Reducing Foreign Policy to Good vs Evil

Like Ronald Reagan, George W Bush attempted to reduce the US role in Afghanistan to a simple battle of good vs evil. The political reality was far more complex. US and Saudi intervention during the Soviet occupation brought corrupt warlords to power who supported their fiefdoms through Afghanistan’s heroin trade.

The Taliban, consisting mainly of Afghan orphans raised in Pakistani Madrassa, were primarily driven by a desire to end the heroin trade and this endemic corruption, which they (rightly) blamed on the interference of western imperialists in their country’s domestic affairs.

http://www.dailymotion.com/video/x2hdcji_bitter-lake-2015-adam-curtis-documentary-1-of-3-720p_shortfilms

http://www.dailymotion.com/video/x2hdd54_bitter-lake-2015-adam-curtis-documentary-2-of-3-720p_shortfilms

http://www.dailymotion.com/video/x2hde2l_bitter-lake-2015-adam-curtis-documentary-3-of-3-720p_shortfilms

Obama Gives Republicans (and Israel) the Finger

Khamenei

 “The F***s Up Everything”

There’s an article on the Fox News site this morning entitled “Source Says Reported Letter from Obama to Ayatollah F***s Up Everything.”

It quotes a pre-election article from the Wall Street Journal that Obama secretly wrote Ayatollah Khameni in mid-October stressing that any cooperation on dealing with the Islamic State, or ISIS, was tied to Iran striking a deal over its nuclear program. The U.S., Iran and other negotiators are facing a Nov. 24 deadline for such a deal.

The congressional source told Fox News that the letter would upset the inroads they’ve tried to make with “the Sunni league,” noting that the president should have informed Congress of this back-channel if it was in fact going on.

“This f***s up everything,” the source said.

Just to clarify “the Sunni league” refers to the despotic dictatorships in Saudi Arabia and Qatar that stone people for blasphemy and behead even more people than ISIS. And which have been the primary funders and arms suppliers for ISIS and the jihadist mercenaries attempting to overthrow Syrian president Bashar al-Assad.

Republican Sens. John McCain of Arizona and Lindsey Graham of South Carolina issued a joint statement Thursday night saying it was “outrageous that, while the cries of moderate Syrian forces for greater U.S. assistance fall on deaf ears in the White House, President Obama is apparently urging Ayatollah Khamenei to join the fight against ISIS.”

The move will also anger AIPAC, the powerful pro-Israeli lobby group. Israel seems really keen on provoking an all-out war between the US and Iran.

It’s gratifying to see the President show some backbone. The move, in my view, is long overdue.

Read more here:  Reportedly letter fs up everything

Photo credit: Wikimedia commons

Also posted at Veterans Today

Covert US War Hands Syria to Al Qaeda

 

isis

US Suspends Non-lethal Aid to Syrian Rebels

According to the BBC, both the US and Britain have suspended “non-lethal” aid to northern Syria. The decision follows the seizure of Western-backed Free Syrian Army bases by Islamist rebels.

Last week, fighters from the Islamic Front ousted FSA-aligned fighters from the Bab al-Hawa border crossing with Turkey. The Islamic Front is a new alliance of rebel fighters dedicated to creating an Islamic state in Syria. The front does not include al-Qaeda affiliates like the Islamic State in Iraq and the Levant (ISIS) and the al-Nusra Front, but its charter welcomes “muhajirin”, or foreign fighters and expresses willingness to co-operate with them.

During the raid, the Islamic Front took over FSA warehouses believed to contain vehicles, communications equipment, and night-vision goggles donated by the US and Britain.

In the past few months, the foreign fighters in ISIS have also been making news  by shooting and beheading FSA fighters and civilians linked to the Syrian opposition.

The US and European countries have been reluctant to supply weapons and ammunition directly to Syrian rebel groups, out of concern they might end up in the possession of foreign jihadists affiliated to al-Qaeda.

However, according to numerous sources, the CIA is still facilitating secret arms shipments via Turkey, Qatar and Saudi Arabia.

The suspension of “non-lethal” support for rebels in northern Syria doesn’t include humanitarian aid distributed through the UN and non-governmental organizations. Moreover US deliveries of non-lethal aid to southern Syria (via Jordan) will continue.

Your tax dollars at work – creating a new Islamic state in the Middle East.

photo credit: Ars Skeptica via photopin cc

Originally published in Veterans Today

Al Qaeda Surges Ahead in Syria

  al nusra

 Rebels Decide to Fight Each Other

 While the major powers behind the proxy civil war in Syria go through the motions of working out a diplomatic solution, rebel forces have begun fighting each other, rather than the Assad regime. The al Qaeda-linked Islamist militants from Iraq and Libya have been fighting the Free Syrian Army in northern and eastern Syria. According to RT, the Islamists are winning.

The split became headline news last week when the Free Syrian Army (FSA) lost Azaz, a city on the Turkish border, to the Islamic State of Iraq and Syria (ISIS). The latter is sometimes referred to as Al-Nusra, the name for the Syrian branch of ISIS, or the Islamic State of Levant (ISIL). Levant is a historic name applied to the Eastern Mediterranean region comprising Syria, Lebanon, Israel, Jordan and Amman before it was divided up by the Europeans.

The Daily Mail reports that officers from the FSA are defecting to join ISIS because they are better resourced and “more effective.” Until recently, the ISIS mainly received funding and arms from Qatar and Saudi Arabia. However the Washington Post reveals they also receive “private donations” from “sympathetic Muslims.” According to the Post, the sums donated far exceed what the US and NATO supply the FSA.

With more than a dozen competing factions fighting the Assad regime, I find it an enormous challenge to keep all the names straight. Thanks to the Christian Science Monitor, the Economist and the Long War Journal, I have cobbled together the following scorecard to help make sense of the latest reports:

  • Supreme Military Command – armed wing of the Syrian National Coalition (SNC) and supported by the US and NATO. The SNC grew out of an exile group originally based in Turkey, though its headquarters moved to Qatar in 2012 when the US and NATO intervened to try to reduce infighting among member groups. The Free Syrian Army (a group of defected Syrian military officers) fights under the SMC umbrella.
  • Syrian Islamic Front – “moderate” Syrian Islamic fighters consisting of the Muslim Brotherhood and other Salafist (Sunni) groups. Cooperates with SMC (at least most of the time).
  • Syrian Liberation Front – coalition of Islamic fighting groups, with Saqour al Sham the largest. Fights independently of SMC but sometimes cooperates with them.
  • Democratic Union Party – Syrian offshoot of Turkey’s Kurdistan Workers Party (PKK). Its mainly pro-Assad militias control Kurdish areas in north-east Syria and support Kurdish autonomy. In July, a Kurdish guerrilla group with links to the al-Assad regime and the Turkish Kurdistan Workers’ Party ( PKK)  forcefully expelled Al-Nusra from the Syrian border town of Ras Al-Ayn.
  • Anti-Assad free speech Alawites (a branch of Shiite Islam) led by Bassam al Youssef. A a political group with no organized military wing.
  • Al Qaeda linked groups:
    1. Al-Nusra Front or Jabhat al-Nusra (the Syrian branch of the al Qaeda linked ISIS (ISIL). Controls Aleppo and has established Sharia law there.
    2. Ahrar al  Sham – a Syrian Islamic group sympathetic to al Qaeda groups, which the Economist has mistakenly labled as sympathetic to the FMC.
    3. Ahfad al Rasoud Brigade.
    4. The Islamic Kurdish Front

Reprinted from Veterans Today