Guest Blog

What is happening to our World? – An Essay by Clive Taylor-Sholl

What is happening to our World?  (Revised – please re-comment)

The UN General Assembly

The conduct of Nations on the International stage is almost never driven by moral considerations, but by money and geo politics.
For some time now Russia, China, Iran and Syria have been in the mainframe. I would like to try and make sense of this madness.

The US dollar is a unique currency in fact its relationship to geopolitics is unlike any other in history, though it has been the world reserve currency since 1944. This is not what makes it unique. What makes the dollar unique is the fact that since the early seventies it has been, with a few notable exceptions, the only currency used to buy and sell oil on the global market. Prior to 1971 the US dollar was bound to the gold standard.

Fort Knox, Kentucky.  US Gold Depository

In 1971 the US Federal Reserve was printing more money than it could actually account for, exactly as the Euro is doing now. The result was rampant inflation.
President Nixon removed the dollar from the gold standard completely, and the dollar became a pure debt-based currency. With debt-based currencies money is literally loaned , approximately seventy percent of the money in circulation is created by ordinary banks, which are allowed to loan out more than they actually have in their accounts. The rest is created by the Federal Reserve which loans money that they don’t have, mainly to the government.

For banks this practice which is referred to as “Fractional Reserve Banking” is regulated by the Federal Reserve. Now to make things even more interesting these “Fractional Reserve Loans” have interest attached, but the money to pay that interest doesn’t exist in the system. As a result there is
always more total debt, than there is money in circulation. In order to stay afloat the economy must grow perpetually, this is obviously not sustainable. The dollar has maintained this dominant position on the world stage for over 40 years.

‘Super Tanker’ Oil Transporter

This is where the dollar meets geo politics. In 1973, the Nixon administration began secret negotiations with the government of Saudi Arabia to establish what came to be referred to as the petro dollar recycling system. Under the arrangement, the Saudis would only sell their oil in US dollars. This would ensure a majority of their excess oil profits would go into US banks and capital markets.

The IMF would then use this money to facilitate loans to oil importers, who were having difficulties
covering the increase in oil prices. The payments and interest on these loans would of course be denominated in US dollars following the negotiations with Saudi Arabia.
The Federal Reserve was now free to increase the money supply will the ever-increasing demand
for oil, the dollar went from being a gold-backed currency to an Oil currency. It also became America’s primary export, which is why the US economy has been able to stay
positive, while running multi-billion dollar trade deficits for decades.
This also explains how it is that the US holds such a disproportionate amount of the world’s wealth, when seventy percent of the US economy is consumer based. Fossil fuels have become integrated into every aspect of civilisation, including agriculture, transportation, plastics, defence, medicine, even food and demand just keeps growing and growing, as long as the world needs oil, and as long as Oil is only sold in US dollars there will be a demand for dollars, and its value.

Saddam Hussein

This system was unchallenged until September 2000 when Saddam Hussein
announced his decision to switch Iraq’s oil sales from the dollar to Euros.
This was a direct attack on the dollar, and easily the most important geopolitical event of the Century.
In the same month that Saddam announced he was moving away from
the dollar, The US Government released a document entitled rebuilding America’s Defences Strategy. This document called for massive increases in US spending in a much more aggressive foreign policy, in order to expand its worldwide dominance, by maintaining the dollar as an Oil based currency.

As a result the Bush Administration was able to invade Afghanistan and Iraq in revenge for 9/11 without any significant resistance, although the actual attack is now being looked into, as serious doubt has been voiced about the actual destruction of the Twin Towers.

There were no weapons of mass destruction in Iraq, as we all know, and this wasn’t a question of “wrong” intelligence this was a cold calculated lie, and the decision to invade was made in full knowledge of the disaster which would follow. They knew exactly what was going to happen, but in 2003 they did it anyway. Iraqi oil fields were under now US control, and oil sales were immediately switched back to the dollar.

Soon after the invasion of Iraq the Bush administration with Tony Blair’s approval and blessing, extended these wars to Iran, supposedly the Iranian government was working to build a nuclear weapon after the Iraq Fiasco.   Washington’s credibility was severely damaged. This campaign against Iran continued into the
Obama administration. Why ?

It may well have something to do with the fact that since 2004 Iran has been in the process of organizing an independent oil market that wasn’t going to be tied to the dollar.

Unable to get the war they wanted, the US used the UN, to impose sanctions against Iran, the aim of the sanctions were to topple the Iranian regime. While this did inflict damage on the Iranian economy, the measures failed to destabilise the country.

Qaddafi of Libya immediately proposed the formation of a unified state called the “African Union” with a single currency, it was a proposal that got him killed in March of 2009.

The African Union released a document towards a single African currency, the gold backed Dinar running the African Central Bank under a gold standard. Libya had committed the unforgivable crime of challenging the US dollar.

The intervention in Libya by Cameron and Sarkozy in a cynical bid to improve their personal ratings as ‘Statesmen’ resulted in what they chose to call the ‘Arab Spring’.  Supposedly to bring ‘democracy’ to Arab Nations.  It spread initially to Egypt where Hosni Mubarak was forced to resign and was replaced by the elected ‘Muslim Brotherhood’ Candidate; Mohamed Morsi.  Morsi himself was deposed around a year later by the Egyptian People.

In the mean time, the so called ‘Arab Spring’ escalated to much of the Levant and the Gulf area.  The Government of Qatar brought down the insurrection but it had also spread to Syria where multiple factions including recognised ‘terrorist’ organisations, vied for the overthrow of President Assad to take control of Syria.

Assad, though far from being a benign Dictator, allowed the historical right of non-Muslim religions to, if not flourish, at least exist peacefully.  

It was already clear at this point that many of these fighters had ties to fundamental terrorist organizations.

However, US National Security viewed this as a necessary evil. This was an attempt to frame Assad and muster international support for military intervention. Fortunately they were exposed by Russia, and the push for airstrikes by both the US and Cameron’s Government completely fell apart when Russia stepped in to broker a diplomatic solution.

The campaign for regime change in Syria, as in Libya has been presented in terms of Human Rights but were more akin to political expediency.

Obviously this isn’t the real motive. In 2009 Qatar put forth a proposal to run
a natural gas pipeline through Syria and Turkey to Europe. Qatar forged a pact with Iraq and Iran to run a pipeline eastward cutting Saudi Arabia out of the loop completely.
The push to topple the Syrian government intensified as this pipeline would significantly strengthen Iran’s position allowing them to export to European markets, without having to pass through any of the US allies. This obviously reduces the US government’s leverage to Syria, who happens to be Iran’s closest ally

Baroness Ashton and Herman Van Rompuy

In February of 2014 this problem escalated into a new venue….. Ukraine. The real target however was Russia. Russia just happens to be the world’s second largest oil exporter.

The ludicrous and persistent misrepresentation in the West of the reason for the tragic shambles unfolding over Russia and Ukraine has been presented as wholly the fault of the Russian “dictator” Vladimir Putin for his “annexing” of Crimea and for the armed uprising in eastern Ukraine.

Almost entirely missed, has been the key part played in triggering this crisis by the remorseless urge of the EU to draw Russian identity into its own empire.  This was overseen by Baroness Ashton, the ‘High Representative’ of the EU though never having held an actual position of authority in her whole career.  The insult to Putin was completed by the statement of Herman Van Rompuy, who was the then President of the EU Parliament, who boasted to Putin that the EU would represent the whole of Russia’s Western Border, which of cause, was unconscionable to the ‘Russian Bear’.

It was entirely predictable that Russia and the ethnic Russians of eastern Ukraine would respond as they have done in their Referendum reflected by the wish of the vast majority of Crimean’s, 82 per cent of them Russian speakers, to rejoin the country of which they were part for most of two centuries. The real significance is it marks the moment when the remorseless expansionism of the EU, founded to eradicate nationalism, finally ran into that implacable sense of national identity by President Putin.

The EU’s reckless bid to absorb Ukraine will eventually be seen as delusional and reckless.  Russia immediately accepted the results of the Crimean referendum and quickly consolidated the territory as they did not want to lose their Naval Base in Crimea.

Meanwhile in eastern Ukraine two regions declared independence from Kiev and held referendums of their own. The results of which overwhelmingly favoured self-rule.

The EU and US then imposed sanctions with Russia. This has already backfired as the sanctions have pushed Russia and China into closer cooperation. In spite of the rhetoric this has not led to Russia being isolated. The US and NATO have only succeeded in putting a wedge between themselves in Russia.

In the wake of the Ukrainian crisis, China has proposed an Asian security pact which would include Russia and Iran.

The complete insanity of the EU, USA and the UN has almost succeeded, into ensuring the public is sleep walking into this tragedy, started by greed and ending with the uncontrolled illegal immigration from North Africa now in our midst, which will destroy the UK and Europe as I cannot see any political will or desire to stop it. We must therefore, whilst we have the chance, leave the EU and remove at least one of the factors.

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