New World Order University Forum

We live in interesting times. NWOU believes that the Era of Cooperation ended with the global economic crash, hence we are on the verge of a new era of the New World Order. Before the crash, the World Order was dominated by the U.S.-China relationship, the aggressive militarism of the American Empire in Iraq and Afghanistan, and the socialist stranglehold over the EU. The many “free trade” agreements had created a worldwide framework for multinational corporations to enter almost every country, take market share, and destroy local businesses. The Neocommunist movements of feminism, multiculturalism, and environmentalism provided an ideological framework for global takeover that enlisted millions of dupes into “thinking globally” and cooperating with the plan to enslave the entire world and reduce its population. Today all of these pieces of the New World Order remain in place, but the global financial network that supported the takeover is broken, and world leaders disagree about what to do next. But global leaders have had a few months to air their differences, and a new consensus may emerge in April at the G20 meetings.

Before the financial collapse, Russian President Vladimir Putin was the head of an anti-U.S. coalition that linked Iran, Venezeula (and by extension various Latin American Communists), North Korea, and China as the main opponent of U.S. militarism and monopoly capitalism. China was the weak link in this alliance as China profited greatly from the “free trade” agreements and Western investment in China, led by Goldman Sachs and its fellow-travelling Wall Street investment banks. The Clinton administration initiated China into the World Trade Organization and presided over the transfer of U.S. technology to Communist China, in return for cash. The Bush administration did nothing to alter these policies. The Obama administration is a Third Clinton Administration and should follow these policies, but the drop in U.S. consumer demand has cut China’s exports in half, and China is worried about U.S. Treasury debt default. During the past few months, China and the United States have been sniping at each other, and China has edged toward closer support for Putin’s anti-U.S. alliance.

Press reports on China’s economy tend to focus on China’s ownership of U.S. Treasury bills (currently estimated at around $2 trillion), but China also invested in the U.S. stock market and took losses due to a feminist affirmative action hire at China’s State Administration for Foreign Exchange. The Telegraph has the story on China’s bad stock investments. The Chinese believe that they should be insured against their investment losses by the U.S. government, and they are worried about U.S. dollar devaluation, deficit spending, and Treasury debt downgrades. The Wall Street Journal reported on Premier Wen Jiabao’s criticisms of the United States at the Davos meeting of the World Economic Forum in January. When China decided to cut back its purchase of U.S. government debt, the Federal Reserve had to step in and make purchases to keep the debt market afloat. Inside China, Lou Jiwei, head of China’s sovereign wealth fund, has come under criticism for his cozy relationship with Treasury Secretary Henry Paulson and associated investment losses connected with failures at Fannie Mae and Freddie Mac and Lehman Brothers.

The China-Russia alliance emerged at Davos, where Wen and Putin took the lead in criticizing the United States for the global financial meltdown. (See articles on Davos at the Financial Times, and elsewhere, for Putin’s leadership at Davos.) The failure of Barack Obama to attend Davos left the floor to Putin and Wen and signaled that Obama was not ready to meet their challenge.

The global financial collapse was only one of several issues involving Russia that the United States and Europe must deal with. But for the moment, let’s focus on Putin’s new global financial leadership. Putin has proposed a reform of the global financial system, based on five principles, for consideration of the G20 ministers. One of these proposals is for a new global reserve currency, called global drawing rights.

Immediately following the Davos meeting, Chinese Premier Wen toured Europe’s capitals to get support for Putin’s new global currency initiative. (Wen also signed a long-term energy deal with Russia to cement their new alliance.) The new alliance includes Germany, Japan, and Saudi Arabia. The new currency platform agreements already exist and will be fully functional by next year. The only question is, which countries will join the new currency system and which will not?

Obama’s failure to attend Davos cost him the opportunity to get off on the right foot with the anti-U.S. coalition. Sending Treasury Secretary (nominee) Timothy Geithner did not help matters as Geithner joined Paulson in criticizing the Chinese for currency overvaluation and malinvestment in U.S. bonds. Davos futher solidified the line of resistance against the United States. It is doubtful whether Secretary Hillary Clinton’s visit to China did much to repair relations.

Meanwhile, in the last months of 2008 and the first months of 2009, Russia was busy initiating military cooperation with Hugo Chavez and Raul Castro. Russia’s fleet visited Cuba. Russia also invaded Georgia, then withdrew. Russia is taking many initiatives while the United States appears to be a hobbled giant in decline. How President Obama encounters Vladimir Putin will be the telling move on the world chessboard.

Charles Krauthammer has smelled Obama’s weakness. See “Obama’s Supine Diplomacy” at the Washington Post. Iran, Pakistan, North Korea, and Venezuela have provoked and insulted Obama, with no response. Does Obama have a foreign policy? Can a girly man defend the United States? Does Obama have any vision other than a domestic socialist takeover? Ralph Peters offers another conservative standard-issue commentary echoing Krauthammer’s points.

Exposing LIberal LIes has reported on the confusion over Obama’s single public initiative toward Russia, to cancel the U.S. missile deployment in Eastern Europe in return for Russia’s withdrawal of support for Iran’s nuclear program. NWOU has no insight into how this dispute will be resolved.

The geopolitical background for the present U.S.-Russia confrontation involves U.S. militarization of Georgia, Ukraine, Bulgaria, and Romania as bases for a “Black Sea” expansion of U.S. power, most likely using NATO as a front. Condoleeza Rice’s last days were spent pulling these countries under U.S. control. Rick Rozoff has details at Global Research. Russia will hold a summit meeting with the EU in May to negotiate differences over Eastern Europe, Ukraine, and Georgia.

Russian President Dmitri Medvedev announced a Russian military buildup and new deployment of Russian missiles ahead of Medvedev’s planned meeting with President Obama in April. The story is at the Guardian.

Russia’s response to Obama’s initiative was probably the topic of discussion at Henry Kissinger’s meeting with high-level Russian officials, including Putin, last week. The LA Times story is annoying for its gee-whiz naivete. Kissinger is still chief fixer. George Schulz, Sam Nunn, and global mafia architect Robert Rubin accompanied Kissinger. Nothing was revealed. Gorbachev visited Biden and Obama a few days later at the White House to add his plea for peaceful coexistence. Similar reporting from China here.

How this dispute plays out will depend on the relative strength of the two leading parties. Reuters reports that the worst of the economic crisis is over for Russia. Russia’s stock market is up sharply, and oil prices have stabilized. But it seems unlikely that Russia wants to invest heavily in a military upgrade and missile deployment during hard economic times. Nevertheless, Russia is playing a strong hand smartly to block further U.S. (and NATO) threats to dominate Russia’s southwest. The wild card in this story is, of course, Iran.

Money Morning puts the Russia-China plan on the front burner for the G20 meeting. This article also explains Gordon Brown’s sudden trip to Brazil. Brazil is now on board with Putin’s anti-U.S. alliance. We expect all of Latin America to unite in a Communist/socialist alliance and align with Russia and China against the United States.

The set-up for the G20 meeting is geopolitical as well as financial. So far it looks like Putin and Wen have mustered enough support to dominate Gordon “You’ve Spent All Our Money” Brown and the strangely passive new U.S. president when the new global financial system is negotiated next week.

Tags: Barack Obama foreign policy, Dimtri Medvedev, G20 meeting, Gorbachev, Henry Kissinger, new world order, Robert Rubin, Vladimir Putin, World Economic Forum meeting at Davos, world reserve currency

This entry was posted by Director on Saturday, March 28th, 2009 at 4:25 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.