And the US Petro dollars are beginning to scream frantically. Why? Because they are being slaughtered. By what, or by whom? By increasing numbers of nations far and wide who are tired of endless US sanctions and threats of sanctions and are bolting out of the US dollar altogether. The biggest bolters are Russia, China and Iran, following more timidly are India and Turkey. Even some of the European nations are mulling over other possibilities rather than remaining glued to the US Petro dollar. More and more nations want gold backed currencies, not fiat paper from the US press that is so debt ridden it can hardly hold its head up.
China, which holds most of the US debt in US paper dollars, is hastily dumping as much of this debt as they can. However, it is not as easy as it once was to get rid of US Petro dollars. The US has to essentially buy back some, if not most, of its own debt. Which is making the US very angry as this weakens the US dollar. Yes, the US, including the president, his cabinet, both houses of Congress, the mainstream press and the corporate billionaire class along with the international bankers are all ( with few exceptions) very, very angry at China . They think China should not be allowed to have gold backed currencies that other countries are finding more attractive than their own increasingly troubled debt ridden fiat currency backed with nothing but military might.
But the US military might is something. Something scary. It has been this military might that has kept the US dollar strong. When countries try to escape the hegemony of the US dollar they can expect to be bombed by the US military such as the countries of Libya, Iraq. Afghanistan, parts of Syria and the on- going nightmare of the Saudi backed carnage in Yemen. But would the US in its final frustration and fear of failing to keep the US Petro dollar afloat as the world’s reserve currency actually physical attack China?
China thinks so.
Over the past week most of the world (except for the US, Canada, and the other national citizens who are ‘discouraged’ from having factual international news) has been learning that China seems to be preparing for a shooting war. As reported by the Business Insider (Oct. 29th, 2018) and other international news outlets, China’s Commander-in Chief has ordered the military command to “concentrate preparations for fighting a war”. What has prompted this tough talk about war from the Chinese? Is it the never ending US tariffs? Perhaps. Or maybe it’s more about the US sending two US warships through the Taiwan Strait and also sending more US military hardware to Taiwan. China is very touchy about Taiwan. As Taiwan has always been part of China, China wants the Americans out.
The Chinese minister of Defense Wei Fenghe warned that the US should be beware of messing around with what the Chinese consider the right to their own territory. He said that China would not give up one single piece of its territorial holdings and that “challenges to its sovereignty over Taiwan could led China to use military force”.
What do we Canadians hear of this in the Canadian press? Nothing that I know of. Or the mainstream US press? Nothing. We may be at the brink of war with China but we know nothing about it from our governments and national news sources. Trying to prop up the Petro dollar is leading us all into social and environmental chaos. It has to stop. We can stop it if we try. We can try right here in Canada by insisting that our public Bank of Canada be returned to us so that we can be taken out of the madness of the struggle to prop up the Petro dollar by sinking even deeper into the debt crisis. Next time.
The Bank of Canada Act was first created as a private bank
in 1935. In 1938 The Bank of Canada was nationalized and has been wholly owned
by the Canadian people ever since.Let’s
digest this for a moment.The Bank of
Canada is still wholly owned by the Canadian people.Can any other nation in the entire world
boast of such a thing? Well, a public sector bank can be classified as a public
bank if more than fifty per cent is held by a government which is, of course,
supposed to represent the people.And
there are a few of these kinds of public-private banks in countries like
Germany and India. But are there other wholly owned public banks, with no
private interest involved at all, like the Bank of Canada?
Not so much.Well,
there is at least one.The People’s Bank
of China.Perhaps having their own
public bank is one the reasons for their rapid rise in the financial
world?When the Chinese people
themselves lend their government the money for all of the incredible infrastructure
taking place in China at little or no interest? I think their public banking system
has a lot to do with it.If true, why
aren’t we doing the same with our public banking system?We have our own public bank but it isn’t
being used for the purpose it was created for.
Our public Bank of Canada was created for our government
(the Canadian people) to be able to borrow for capital expenditures with little
or no interest. Between 1938 and 1974, the Canadian government borrowed many
times over from the Bank of Canada and financed debt-free big infrastructure
projects like the construction of the Trans-Canada Highway, the St. Lawrence
Seaway, airports and subways.It was our
public bank that largely paid for establishing Medicare and family allowances
and still left Canada with little debt.But in 1974 things changed drastically.
Under Pierre Trudeau the Canadian government stopped
borrowing from our own public bank and started borrowing from private
banks?Why? Well, it seems that Trudeau
came under the influence of the Bilderberg Group, and the Basil Committee that
was spawned by the Bank for International Settlements which is the global bank
for central bankers.Their argument
was that public banks created the money they loaned out, thus causing
inflation, while private banks only recycled pre-existing money.This was Milton Friedman’s idea.Pierre Trudeau and his government bought it
and it isn’t even true.
The respect banking specialist Ellen Brown puts it this
difference is simply that a publically owned bank returns the interest to the
government and the community, while a privately owned bank siphons off the
interest into its capital account, to be reinvested at further interest,
progressively drawing money out of the productive economy”. So in 1974 our powerful economic tool of
using our democratic public banking system was yanked out of our hands by the
Liberal Trudeau government of that time and placed into the hands and control
of a cabal of foreign bankers.We all
know the obscene amounts of money the private banks are making now along with the
obscene amount of power they have accrued to themselves accompanied by the
obscene amount of debt that Canada and other nations have acquired under this
neoliberal order.So can anything at all
be done about this now, or is it too late?I don’t think it is too late because as more Canadians become aware that
we still have a public bank although it has been temporarily and cruelly
wrested from us, more eyes have been turning toward Canadian Courts.Next time.
I’ve talked about how the Petro dollar has been ruling the world of commerce since the 1944 Agreement of Bretton Woods which made the US more or less the world’s reserve currency. At the time the US currency was backed by gold. But in 1971 the US dumped gold and chose to use a fiat dollar with nothing to back it except the strength of its workers and the US military. This meant that when nations wanted to trade with the US they must first buy US dollars. The buying nations were also encouraged to use US dollars to buy US bonds. The US was strong, most of the other nations had been devastated by the Second World War. These nations desperately needed energy to rebuild. The US had the energy and know- how. Thus the entire trading word fell under the tight grip of the American dollar that came to be known as the Petro dollar.
All of the wars in the Middle East and Africa, Libya, Iraq, Afghanistan and Syria were all fought (and are still being fought) over their resistance to the Petro dollar and the US takeover of their oil fields. People have died in the millions in the struggle to get off the Petro dollar and reclaim their country’s independence. Ancient towns and cities have been leveled, entire countries such as Libya and Afghanistan are on their knees. The citizens of these countries are left to try to find new shelters in mostly unfriendly lands where many have little in common with the values of modern European society. The newcomers will have bread, but not roses. At least any time soon. All this unimaginable suffering and there is more in the offering if the war hawks in the US have their way. Currently in Syria there is a last ditch struggle going on by the US to stay in Syria. For what? To try to protect the Petro dollar.
But Syria wants to determine its own fate, joining with Russia, China, North Korea, and Iran. They are all in the process of ditching the Petro dollar, or planning to, and using their own currencies. This is the death knell for the Petro dollar being the world’s currency. It will be only one of many currencies. The US will fight to the death to prevent this. Which is why they won’t leave Syria when they have no right to occupy a sovereign country that does not want them there. But regardless of what happens in Syria the death of the Petro dollar is imminent. What will that mean for the US? So long awash in Petro dollars there will be a devaluation of US currency which will bring inflation. And Canada?
There is one chance for Canada to escape devaluation and inflation. Even though we Canadians may be financially glued bone to bone with the US, unlike most other nations (including the US) we have our own public bank. Our public bank is not tied to any private banking systems including the Federal Reserve systems. Why is Ottawa not using our public bank now that it would allow the Canadian government to borrow with little or no interest for public expenditures? Next time.