New World Order University Forum

The U.S.-Communist China alliance broke apart in September of 2008 when China announced that its banks would no longer make loans to the United States. Reuters had a brief story on this announcement. Unfortunately the U.S.-China diplomacy from this point is shrouded in mystery, but we can infer a couple of points from subsequent actions. First, the Chinese are extremely aggressive about being made whole on their U.S. investments. The first point of contention probably revolved around Chinese holdings of agency (Fannie Mae, etc.) paper. China presssed the U.S. to bring “the full faith and credit” of the U.S. to bear on potential losses, which forced the Treasury and the Fed to shore up Fannie to continue paying off its bonds.

Second, in retrospect it is obvious now that the TARP bailout fund was set up to pay off foreign creditors who were outraged at having been sold bad debt by Wall Street investment banks. AIG was shored up to act as a conduit to pay off bad paper sold to British and European banks as well as to Wall Street investment banks. Treasury Secretary Henry Paulson didn’t want to announce the facts of U.S. firms’ issuance of bad debt around the world, so the TARP program was passed hastily, under the vague threat of “global depression.” The United States had to pay off angry creditors or risk completely losing the ability to participate in foreign markets. Everything the Federal Reserve and Treasury have done from that point has basically been a move to “buy time” in hopes that the United States can avoid total bankruptcy. See essential reporting at Global Research.

“The Fed has established relationships with some major banks, such as the European Central Bank and the Bank of Japan, but also with central banks overseeing smaller, more volatile economies, such as the Banco Central do Brasil….The full list of participating banks, according to the Fed, includes the Reserve Bank of Australia, Bank of Canada, Danmarks Nationalbank, Bank of England, Bank of Korea, Banco de Mexico, Reserve Bank of New Zealand, Norges Bank, Monetary Authority of Singapore, Sveriges Riksbank, and Swiss National Bank.”

The Federal Reserve Bank then went into the business of propping up central banks around the world. As national banks saddled with bad U.S. paper declared huge losses (and the stock markets crashed), the Fed provided liquidity to almost all of the central banks in the world. The good news is, these banks now have credit and can survive longer. The bad news is, all world central banks are linked, just like the global economy was linked through global trade agreements, so a system has been built that threatens financial catastrophe for the entire world rather than just a few countries. The Federal Reserve is not just propping up the U.S. Treasury, it is propping up the entire world economy by making funny money out of thin air.

The fatal flaw of the Era of Cooperation of the New World Order is its linking of diverse economies through systems integration. If the system fails, the whole world economy crashes. This is a very important point to grasp as a cornerstone of opposition to the New World Order. Localism, implying destruction of all systemic integration, is the key to human survival against the New World Order threat.

“The entire economic growth system, where one regional centre prints money without respite and consumes material wealth, while another regional centre manufactures inexpensive goods and saves money printed by other governments, has suffered a major setback.” Vladimir Putin.

Vladimir Putin’s speech at Davos signaled the formation of a coalition of opposition against the United States and Britain. We are calling this coalition The Aliens, just for fun. See the text of Putin’s speech here. Putin’s analysis is essentially correct, but he was a gentleman and did not name the names of the criminals who caused the crisis (the Democrats in Congress, Wall Street investment banks, the Bush administration’s undercutting of financial regulation), and he did not support a reversion to economic nationalism. Instead he suggested reform, greater regulation, a new sense of responsibility, etc. to shore up the global system. Putin’s metaphors of a “perfect storm” and a “crashing pyramid” now stand as placeholders for a proper analysis that names names, prosecutes irresponsible criminals, and dismantles the globalist architecture. Putin remains a globalist, but make no mistake, the Aliens (the rest of the world) are fighting mad about being exploited by the Monsters (the Wall Street firms that issued the bad debt bundles).

All subsequent events can be interpreted within this framework of a struggle between a new anti-U.S. coalition versus the U.S. Federal Reserve Bank and the U.S. Treasury to prevent further U.S.-British dominance of the world financial system.

Further reading on Putin’s plan at Russia Profile. Further reading on the U.S.-China financial relationship at The Atlantic. Background on the role of AIG at Rolling Stone (warning: crude language).

We assume everyone is by now familiar with Gordon Brown’s leadership in advance of the G20. Brown has proposed opening up tax havens, a global system of regulation of world banks, and increased funding for the IMF to act as a lender to shaky banks. Brown is very worried about a return to protectionist policies and maintanance of “free trade” agreements. Brown wanted Europe to commit to greater economic stimulus (deficit spending) to reinflate their economies, but resistance from Germany’s Merkel and France’s Sarkozy dealt defeat to Brown’s proposal. The Telegraph has the latest status on Brown’s leadership at the G20. Britain’s central banker, Mervyn King, essentially killed Brown’s dreams of greater coordinated stimulus spending by stating publicly that the Bank of England had no more money to loan for a British stimulus.

Brown’s defeat at the G20 should mark the end of Labour’s dominance in England. NWOU expects Brown to be defeated in the upcoming election and mark the end of an era of big capitalist/socialist cooperation in England. Not that we expect the Conservatives to do better. The Conservatives may be more financially responsible, but they are still committed to “free trade” above English nationalism.

Der Spiegel paints German Chancellor Merkel as the big winner in the G20 showdown. Merkel led a European coalition that defeated Brown’s plan for more deficit spending, but the question of contributions to IMF funding remains to be resolved, as does the issue of how the IMF is going to operate. Obviously the IMF now has increased ability to prop up national central banks. The question is whether the IMF will replace the influence of the U.S. Federal Reserve or be able to regulate the Fed’s activities. We believe this is now the central issue on the G20 agenda.

The outcome of shifting responsibility to the IMF will probably be to facilitate IMF bailout of the worst European economies, Ireland, Italy, Greece, and Eastern Europe. John O’Sullivan has commentary at National Review.

More conventional reporting on the G20 meeting by Fox News, The Telegraph, China View.

EU President Mirek Topolanek criticized U.S. deficit spending as “the road to hell,” then lost his position as Czech President in a no-confidence vote. Stories at The Telegraph and Foreign Policy. Topolanek may take a fall, but he was expressing the Alien position, in less than diplomatic language.

Treasury Secretary Geithner expressed support for Russia and China’s proposal for a new world reserve currency. Although President Obama contadicted Geithner, NWOU expects the IMF to control the new currency. The United States will have to go along, at least in public, as retribution for Monster sins. We expect President Obama to play no essential role in the G20 meeting, to go along with whatever his betters have in mind, and to issue a bland and meaningless statement.

Finally, Europe has a point of view regarding the General Motors bailout or bankruptcy. GM isn’t really a U.S. corporation.

The ability of the globalist bankers and multinational corporations to muddle national interests is keeping the failed global financial system afloat. For example, it really isn’t in the interest of China and Russia, the two largest holders of U.S. Treasury bills, to watch the United States go bankrupt and default on its debt. This fact keeps the criticism muted and keeps politics oriented toward globalist initiatives. There really is no single world leader who is governing in the interests of his nation today. All have been coopted into the New World Order and into thinking about how to adopt some globalist proposal to maximize economic return or blunt economic hardship.

Who should we root for in the current crisis? None of the above. We should support the first national leader that withdraws from the global system and vows to govern according to the interests of his people.

Tags: Angela Merkel, Davos World Economic Forum, European Union, Federal Reserve bank, G20 summit, global financial system, Gordon Brown, Timothy Geithner, Vladmir Putin

This entry was posted by Director on Tuesday, March 31st, 2009 at 5:30 pm and is filed under Global Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.