Reaping What Bretton Woods Has Sown

The International Forecaster
April 2, 2011

The seeds of today’s monetary problems were laid at Bretton Woods, NH in 1944, as a combination of socialists, communists and fascists laid the groundwork for the IMF, the World Bank and the eventual elimination of gold from the monetary world. The Federal Reserve’s role was to bring that about from behind the scenes.

In the intervening years in order to move toward those goals the banking system run by the privately run Federal Reserve, allowed banks, some of which were run by the owners of the Fed, such as JPMorgan Chase, Goldman Sachs and Citigroup, were allowed to run rough shod over the system, always knowing they would be bailed out by the public. These banks have had and continue to have a license to steal under the illegal Federal Reserve Act. Over and over again these banks, Wall Street, insurance companies and transnational corporations have been bailed out of their speculations under the aegis of too big to fail. The excuse has always been that it must be done to protect the public. These entities got to keep the gains and the public got to share in the losses. The public and 95% of those working on Wall Street and banking didn’t have a clue to what was really going on. The Fed and other major central banks were not only playing this Fed game domestically, but internationally as well. Over those years the Fed had been designated the lender of last resort. We saw them in action over the last 3-1/2 years during what was termed the credit crisis. The Fed’s job was to bail out not only the US banking system rent asunder by bank speculation in the mortgage market, but to also bail out the buyers of such mortgages, known as MBS and CDOs, sold to British and European banks and other financial entities, which had purchased 60% of the toxic waste. If you notice not one of these lenders or buyers ever filed a civil or criminal suit against these purveyors of what has become to be known as toxic waste. We can only speculate, but we believe the dumping ground for this mortgage garbage was preset and that some of the buyers if not all were guaranteed by the Fed that if problems arose they would be bailed out and one way or another made whole. The Fed attempted to hide what they were doing and a lawsuit has finally forced them to divulge, who received funds created by the Fed, some $13.8 trillion, why and what collateral was accepted for such loans and have such loans been repaid. Another program called TARP was set up by the Treasury to bail out Wall Street, banking and transnational conglomerates all involved in this tight little circle of anointed corporations. This bailout program was accomplished by Treasury Secretary Paulson. He told Congress if the funds were not forthcoming for the insiders to bail themselves out via speculation based on inside information, then he would see to it that the financial system was brought down and destroyed. The high-handed ruse or extortion worked and these miscreants received their funds from the public Treasury, as well as from the Fed.

Gold backing for the US dollar was part of the result of the conference at the Mount Washington Hotel in Bretton Woods in that July of 1944. We have to interject here that in 1946 or 1947 I climbed Mt. Washington and once I reached the hotel it started snowing. Yes, snowing in August. The group of us from the camp quickly raced back down through the forest to better climes, which the snow failed to reach. Thus, 2 or 3 years after that historic meeting, I briefly visited that hotel, of course, not knowing what had taken place there.

 

George Soros, one of the world's strongest pushers for Global Financial and Economic consolidation.

This UN Monetary and Financial Conference, which included the International Bank for Reconstruction & Development, which became the World Bank, which was to make loans to the rubble that was to be Europe in 1945, and to which those economies, promote monetary cooperation and fix exchange rates, and eventually to eliminate the use of gold, as the backing and basis for international currency exchange, replacing gold with a fiat paper standard controlled by the Federal Reserve. The discipline of gold was to eventually be phased out of the system, so that the fed could create money out of thin air. This would be a perpetual tax on Americans as their currency dropped in value versus gold over the years. Currencies would no longer be exchanged in terms of their gold value. This was called a gold exchange standard. The public could not exchange US notes or Federal Reserve notes for gold, but nations could. The value of currencies versus one another, all of which were backed by gold was set by supply and demand. If a nation created too much currency the value of their currency would fall versus gold and other currencies. This method of monetary policy had previously been set into law by the passage of the Federal Reserve Act. The concept was to eventually have a world bank that would create a fiat currency for all nations that would supersede all other currencies. That, of course, is still underway today as elitists strive for a one-world currency and a new-world order. These concepts were promulgated and put in place by well-known Fabian socialist John Maynard Keynes, who as we reflect back was the author of an economic system that was corporatists fascist and the then Treasury Secretary, Harry Dexter White, who was a communist. It took 27 years, and on August 15, 1971, President Richard Nixon removed the US dollar from the gold exchange standard. That is how the fiat dollar was generally planned and that is why we have non-gold Federal Reserve notes today, instead of a gold backed currency.

 

The elitists’ corporatist fascist model is not working very well. The Fed, the Bank of England and Western banks have serious problems and throwing money at the problems is not working. Of course, do they want the solution to work? This depression they have deliberately created is not working the way they envisioned it would. In fact they are having trouble keeping it under control. We have just seen what is called a “black Swan” event. An earthquake, an untoward event, which ostensibly came from out of the blue. We’ll surmise that until we have empirical evidence that man did not create it. These are the kind of unplanned events that throw the elitist plans off kilter. It throws the direction of neo-liberal capitalism in several different directions. This is the system so prevalent in Europe, where profits are privatized and losses are socialized and become a debt that has to be paid by the people. This system, which we now have in America, keeps Wall Street and banking in power. This is accomplished by bailouts when the anointed corporations get themselves in trouble as we see in America today and in Europe as well. The state in our case by the privately owned Federal Reserve losses are monetized and appear in part in the form of higher inflation. It also comes in the form of public debt that has to be repaid by the taxpayer. Eventually the debt consumes the host.

As a result it is only a matter of time before the system unravels. The fractional banking system does not work and never has worked. The players who run the system know that. History is replete with instances of failure, which are well known to elitists. The collapse of the Lombard System in 1348, the year of the plague, and the collapse of the Hanseatic League in the early 1600s, are but two of scores of failures, most of which were deliberately planned. Fractional banking for those of you who do not know what it is, takes place when a lender lends more money than he can collateralize. The rule of thumb over the centuries has been to lend no more than eight times assets. Today that number is 40 times as assets. That is why most major western banks are broke. Any major untoward event could presently collapse the current system. In addition, some 10% of the basic assets of these banks are worthless. These banks are still in serious trouble in spite of receiving trillions of dollars in bailout funds of one kind or another. What happens when interest rates rise, which they must? The banks will be in trouble, as inflation rages. If that wasn’t bad enough contagion could also affect the banking system. That is when one bank borrows from another and then cannot get their funds back. That happened 3-1/2 years ago and the Fed stepped in and secretly guaranteed deposits. In this process of saving Wall Street and banking the public is put at enormous risk, which is a pattern used over and over again over the centuries.

These events naturally lead us to the dollar, which for months has had little sustainable strength either fundamental or technical. The run to 89 on the USDX ended in failure, and the recent strength at and near 75 was tepid at best. The recent intervention by the G-7 to weaken the yen, which has moved from 76 to 83, was really a backhanded attempt to stage a dollar rally, especially when you consider the absorption of Japanese Treasury sales, which is really what the exercise was all about. Needless to say, the NYC elitists needed the Japanese problem like they needed a hole in the head. The baggage the US dollar has is overwhelming. The government is being 70% to 80% financed by the Fed, which creates money and credit out of thin air. The federal deficit for the fiscal year will be $1.7 trillion. The US has two occupations and two ongoing wars costing billions of dollars a month. Municipalities and states are in dire financial straights and the economy would collapse without quantitative easing and stimulus. A rather sad state of affairs. Incidentally, we called the recent bottom on the dollar, but more importantly, we called the top at 89. Dollar and Treasury bond weakness will be exacerbated by the Middle East and North African revolutions and the ultimate result will be the demise of the petro dollar, which has always been the underlying strength to the dollar. The US, UK and France guaranteed safety for the oil producers, they denominated oil in US dollars, and they deposited their profits in NYC, London and Paris for management. The policy may well be at an end. If so that will be the end of regional purchases of US T-bonds. Thus, the loss of Chinese, Japanese and Gulf purchases will cancel out 70% of US Treasury purchases. These events could very well lead to the collapse of the Treasury bond market essentially leaving only the Fed as a buyer. As we predicted months ago the second half of 2011 will bring an implosion of US Federal debt, municipal and state debt, British debt and a collapse in EU debt and the beginning of the end for the euro. Along with 14% inflation gold and silver will rocket upwards.

The latest insult to American consciousness is a proposed cut in the budget deficit of $33 billion. That isn’t even cosmetic. In a budget with a $1.7 trillion deficit that isn’t even chump change. Can you imagine what the rest of the world is thinking? Try to sell treasuries under those conditions? The House is totally out of touch with reality. It takes its orders from Wall Street and banking. That has never been more obvious.

Hundreds of municipalities will fail in 2011 as well as some states. Austerity will continue for the average American citizen. That means GDP will fall from 70% by consumers to 68.5% with more bad news to come next year. All of these events have already, as displayed recently, begun to end the safe-haven status of the US dollar. Not only will the dollar be under pressure, but also so will the sale of Treasuries. It is possible the dollar could go to 65 on the USDX and the Treasury market could collapse. The plight of the dollar has not gone unnoticed. In 2001, the dollar’s share of official global foreign-reserves was 71.5%. At the end of 2010 it was 61.3%. Those moves do not instill confidence in the dollar.

We have contended for a year that a major meeting will be held with all countries attending to revalue and devalue currencies each against one another, there would be a multilateral default of some kind and a new devalued international world reserve currency backed by gold. That new currency could be the dollar. The status of old debt would be clear. How domestic debt would be handled remains to be seen. The collateralized gold backing would be today $6,000 and silver perhaps $300. The problem is that is now. The figures a year or two from now could be $8,000 and $400, who knows? All we know is the trend is clear.

The 2000-Page Power Grab any Dictator Dreams About

In the words of the very same legislators who created the new financial bill, ‘No one will know until this is actually in place how it works’…, said Christopher Dodd, democrat from Connecticut.  The new bill gives sweeping powers to the president, whoever it is, to determine what is done with many aspects of American citizen’s lives.  “…it deals with every single aspect of our lives,” added Dodd.

WSJ

After more than 20 hours of continuous wrangling, Congressional Democrats and White House officials reached agreement on the

Lawmaker Christopher Dodd (D), next to senator Richard Shelby.

final shape of legislation that would transform financial regulation, avoiding last-minute defections among New York lawmakers that had threatened to upend the bill.

After months of uncertainty about how the U.S. would craft new rules, the agreement offers the clearest picture since the financial crisis of how markets and the government will interact for decades to come. The common thread: large financial companies are facing a tougher leash.

he bill is expected to have enough support to become law. Both chambers plan to vote next week. The margin in the House and Senate will likely be close because most Republicans are expected to oppose the measure.

If the bill passes, President Barack Obama is expected to sign the package into law by July 4. Thursday’s agreement also gives the president leverage going into a weekend summit of world leaders in Canada, where he will prod other nations to rewrite their rules.

“This is about as important as it gets, because it deals with every single aspect of our lives,” said Sen. Christopher Dodd (D., Conn.), a chief architect of the compromise.

In two important ways, the agreement is tougher on the banking industry than officials in the Treasury Department anticipated when they first drafted their version of the bill 12 months ago.

Lawmakers agreed to a provision known as the “Volcker” rule, named after former Federal Reserve Chairman Paul Volcker, which prohibits banks from making risky bets with their own funds. To win support from Sen. Scott Brown (R., Mass.), Democrats agreed to allow financial companies to make limited investments in areas such as hedge funds and private-equity funds.

The move could require some big banks to spin off divisions, known as proprietary-trading desks, which make bets with the firms’ money.

The bill also includes a provision, authored by Sen. Blanche Lincoln (D., Ark), which would limit the ability of federally insured banks to trade derivatives. This provision almost derailed the bill following vehement objections from New York Democrats. Ms. Lincoln worked out a deal in the early hours of Friday morning that would allow banks to trade interest-rate swaps, certain credit derivatives and others—in other words the kind of standard safeguards a bank would take to hedge its own risk.

Banks, however, would have to set up separately capitalized affiliates to trade derivatives in areas lawmakers perceived as riskier, including metals, energy swaps, and agriculture commodities, among other things.

A panel of 43 lawmakers spent two weeks reconciling differences between a bill that passed the House in December and the Senate in May. They concluded their negotiations along party lines at a little after 5 a.m. ET in a Capitol Hill conference room marked by tension, levity and exhaustion. Senior administration officials, including Treasury Department Deputy Secretary Neal Wolin, arrived late in the afternoon to try and quell the feud between the New York delegation and Ms. Lincoln.

Major components of the bill, including the derivatives provisions, were negotiated in the hallway of the Dirksen Senate Office Building as the clock neared midnight. At one point, after hearing of an offer from Senate Democrats, Rep. Melissa Bean (D., Ill.) exclaimed: “Are you flipping kidding me? Are you flipping kidding me?”

Democrats hailed the agreement as a tool to prevent the kind of taxpayer-funded bailouts that stabilized the economy in 2008 but left divisive scars. Many Republicans said the bill could have unintended consequences, crimping financial markets and access to credit.

“My guess is there are three unintended consequences on every page of this bill,” Rep. Jeb Hensarling (R., Texas) said of the nearly 2,000-page bill.

The deal comes as the banking industry is still struggling to regain its footing. Hundreds of banks have been dragged down by bad loans and investments. The violent restructuring of the U.S. banking sector two years ago has left just a few companies controlling a vast amount of the deposits, assets and financial plumbing of the country.

Government-controlled Fannie Mae and Freddie Mac remain a multibillion dollar drain on the U.S. Treasury, and largely untouched by this proposal. And the banking sector in parts of Europe remains fragile.

The legislation would redraw how money flows through the U.S. economy, from the way people borrow money to the way banks structure complicated products like derivatives. It could touch every person who has a bank account or uses a credit card.

It would erect a new consumer-protection regulator within the Federal Reserve, give the government new powers to break up failing companies and assign a council of regulators to monitor risks to the financial system. It would also set up strict new rules on big banks, limiting their risk and increasing the costs.

The legislation gives the Securities and Exchange Commission new powers to regulate Wall Street and monitor hedge funds, increasing the agency’s access to funding. The Commodity Futures Trading Commission would also have new powers under the bill, which would try and force most derivatives to face more scrutiny from regulators and other market participants.

To pay for some of the new government programs, the bill would allow the government to charge fees to large banks and hedge funds to raise up to $19 billion spread over five years. The assessment is designed to eventually pay down a part of the national debt.

The broad contours had been set for weeks and mostly mirror a proposal the White House has pushed since last summer. But the last few days represented a mad dash of political maneuvering to iron out final details.

Negotiations went into Friday morning, with New York Democrats and White House officials meeting to address the bill’s potential impact on New York, which relies on the financial industry for employment and tax revenue.

To win broader support, Democrats softened the bill’s impact on community banks, auto dealers, and small payday lenders and check cashers.

From the beginning, lawmakers opted against a dramatic reshaping of the country’s financial architecture. Instead, they moved to create new layers of regulation to prevent companies from taking on too much risk.

For example, regulators decided not to order a sweeping consolidation of the regulatory agencies policing finance. They also decided not to bust up large financial companies, despite pressure from liberal groups.

But they did create a process for seizing and dismantling faltering companies, tools the government lacked in 2008 during the seemingly chaotic events surrounding Bear Stearns, Lehman Brothers, and American International Group Inc.

Democrats are banking on stronger government regulators to constrain risk in the financial system and prevent a future banking crisis—or at least blunt its impact.

Russian President: New World Order with new Global Currency

By Luis R. Miranda
The Real Agenda
June 19, 2010

As many other puppet presidents have done it before, Russia’s Dmitri Medvedev is taking his opportunity to call for a new world

Russian President, Dmitri Medvedev

order and to push the Russian currency up, as the new reserve paper.  “What had seemed untouchable has collapsed. The bubbles that created the illusion of flourishing economies have burst,” said the Russian president in St Petersburg.  As he opened Russia’s annual economic forum, Medvedev said the times when western corporations dominated the economy had ended and the new interest in Russia was a sign that the world was changing.

“For Russia this situation is a challenge and an opportunity.  And we should use it to build a modern, flourishing and strong Russia … which will be a co-founder of the new world economic order.” he added.  Talking in front of many businessmen from around the world, the Russia leader followed the steps of other governments and presidents as well as of non-governmental institutions.  In the past, George H.W. Bush, Tony Blair, Gordon Brown, Mahmoud Ahmadinejad and Barack Obama, among others, have called for the formation of a new world order.  In fact, all those leaders have cited the creation of a centralized global entity as the only way to cure the many illnesses the world suffers from today.

Together with governments, there are supranational institutions such as the World Bank, the International Monetary Fund, the European Central Bank and their respective leaders, who have echoed the same calls for the creation of a new global order.  This order would have the power, will amass the resources of the planet and will decide how to use them.  The plan also includes the creation of a single monetary policy to which all countries will have to submit to.  The adherence to such policy will enable the countries to receive loans and aid packages that will make them more dependent on the foreign centralized organization, and less dependent on their own Constitutions and laws.  In fact, in the world seen through the eyes of people like Medvedev and the other power men, there is no need for nationality, sovereignty or identity.

Russia has already taken significant steps to aid the lifeline of the new world order -which has existed for many years now-.  The country will introduce a policy of zero taxation on capital gains which will indeed allow the free flow of monies in and out of, much like it happens in corrupt countries where this policy aides and enables money laundering through the banking system.  This would transform Russia into the new United States when it comes to moving large amounts of money coming from all places -drug trade, arms trade, slave trade- to circulate and make its way across the world.  Of course Medvedev did not present it like that.  Instead, he said his policy would allow companies working on long-term investments.  Russia, he said, “was improving the legal system to offer better protection for businesses against the long arm of bureaucracy.”  In other words, crime, of the kind recently experienced through Wall Street banks around the world will have a safe heaven in Russia.  What Mr. Medvedev’s words mean is that all the policies that allowed the bankers to suck countries dry of their resources will also exist in the world order he dreams about, where Russia is the new leader and he’s the new Al Capone.  Limits to bureaucracy means zero regulation or a perfect environment for the corporations to run their shady Ponzi schemes.

The Russian president also talked about something that would make any corporate businessman smile, even in the rainiest day.  Russia has completed the process of simplifying migration procedures, so that workers can go in the country; or better, Russia just like China will allow corporations to pay some of the lowest wages to its citizens in exchange for long working days with no benefits and no rights.  Again, it’s clear he did not present it this way.  He said Russia had changed to attract “highly-qualified specialists” from the financial and technology sectors.  “The state should not tear down the apples from the tree of economics,” he said.

Medvedev complemented his speech on a new world order by forcefully attacking the dollar and claiming that it was time for a new reserve currency.  “Only three, five years ago it seemed like a fantasy” to create a new reserve currency. Now we are seriously discussing it.”  He does not seem to be alone in that ride.  It seems China is up to the challenge as well.  In the meantime, Bank of Israel Governor Stanley Fischer added his voice to the Russian’s, but from a very different point of view, one that is rarely heard.  He said: “New reserve currencies don’t emerge by fiat. They emerge as countries change.”  A fiat currency is paper or electronic  money that is not backed up by a nation’s industry or production, but by an inflated system of blind trust on what a piece of paper says it is worth.

Apparently, both Russia and China think it is time for the East to drive the world and its markets.  “We really live at a unique time, and we should use it to build a modern, prosperous and strong Russia, a Russia that will be a co-founder of the new world economic order,” he said.  The problem with Medvedev’s vision is that his plan will not work, at least not for as long as he wants.  Although he intends to build something new, better and different, he plans on using the same old policies that brought us to the disaster he so clearly criticizes.  He wants prosperity, a modern economy and a strong Russia, but he wants zero regulation, a centralized dictatorial government and no sovereignty.  Maybe he forgets that Capitalism, the real Capitalism, was born from free independent nations that based their development on the use of their resources to produce quality goods that benefited the world.  Instead, he wants a global economy filled with cheap, slave-made products that need to be changed every few months.  He wants the best workers, but will follow the same old low-paying policies that maintains Asia’s and Latin America’s people in a continuous feudal model of development.

“If the world depended completely on the dollar, the situation would have been more difficult,” Medvedev reminded the audience.  So why does he want a single global currency, then?

Prince Charles calls for Eugenics in poor countries

London Telegraph

The Prince of Wales has called for greater population control in the developing world and hailed the success of “family planning services” in some countries.

He said more needs to be done because of the “monumental” problems that face the environment as population numbers “rocket”

Prince Charles of Wales is, along with Bill Gates, one of the strongest pushers for eugenics in the developing world.

and traditional societies become more consumerist. There needed to be more “honesty” about the fact the “cultural” pressures keep the global birth rate high.

The Prince also said the traditional religious views of the sanctity of life, which are often used to oppose the use of condoms and other contraceptives, must be balanced with the imperative to live within the limits of nature.

His comments, made in an important speech on Islam and the environment, will be seen as controversial within both the green lobby and some religious circles.

Although the heir to the throne is a long-standing champion of ecological causes and the benefits of faith, some believe that Western commentators do not have the right to tell residents of less wealthy nations that they should have fewer children or consume less in order to keep carbon emissions down. Many of the world’s great religions, meanwhile, oppose the widespread use of contraception.

Speaking at the Sheldonian Theatre, in a lecture to mark the 25th anniversary of the Oxford Centre for Islamic Studies of which he is patron, the Prince told how the population of Lagos in Nigeria has risen from 300,000 to 20 million during his lifetime.

He went on: “I could have chosen Mumbai, Cairo or Mexico City; wherever you look, the world’s population is increasing fast. It goes up by the equivalent of the entire population of the United Kingdom every year. Which means that this poor planet of ours, which already struggles to sustain 6.8 billion people, will somehow have to support over 9 billion people within 50 years.”

He acknowledged that long-term predictions are for a fall in global population but insisted: “In the next 50 years, we face monumental problems as the figures rocket.”

The Prince said the Earth could not “sustain us all”, particularly if a “vast proportion” is consuming natural resources at “Western levels”.

“It would certainly help if the acceleration slowed down, but it would also help if the world reduced its desire to consume.”

Talking about the “micro-credit” schemes developed in Bangladesh, he said: “Interestingly, where the loans are managed by the women of the community, the birth rate has gone down. The impact of these sorts of schemes, of education and the provision of family planning services, has been widespread.

“I fear there is little chance these sorts of schemes can help the plight of many millions of people unless we all face up to the fact more honestly than we do that one of the biggest causes of high birth rates remains cultural.”

He admitted it raised “very difficult moral questions” but suggested we should come to a view that balances “the traditional attitude to the sacred nature of life” with religious teachings that urge humans to “keep within the limits of Nature’s benevolence and bounty”.

Roman Catholics believe it is against “natural law” to use artificial methods to prevent conception while some conservative Muslim scholars teach that birth control is wrong. Condoms are opposed by Orthodox Judaism and some contraceptive techniques are unacceptable to Buddhists.

However the Prince also expressed his view that religion is needed to solve the world’s environmental and financial crises, which he claimed reflect the fact that “the soul has been elbowed out” in the quest for economic profit.

He said the Islamic world has one of the “greatest treasuries of accumulated wisdom and spiritual knowledge”, but lamented the fact that it is now often “obscured by the dominant drive towards Western materialism – the feeling that to be truly ‘modern’ you have to ape the West”.

The Prince said it was a “tragedy” that traditional Islamic crafts are being abandoned, and called upon Muslims to use their heritage to protect the environment.

He concluded that the world is “on the wrong road” and should not be “pigheaded” about refusing to acknowledge that fact, but should instead “retrace our steps” and return to working within nature rather than against it.

It is the first time the Prince has spoken at length about birth control since 1992, when he appeared to include the Vatican among “certain delegations” who are “determined to prevent discussion of population growth”. He spoke about birth control to politicians and community project workers in Bangladesh five years later.

The Geopolitical Hegemony of the Anglo-Saxon Empire in Latin America

The Military Presence to Maintain Neo-colonialism, Instability and Poverty

by Luis R. Miranda
The Real Agenda
May 1, 2010

By obtaining its independence, the colonies were preparing for what will inevitably come: the road to development andanglo-saxon empire modernization. Many countries, was suggested, would be developed quickly; politically and economically. But these nations soon realized the sad reality. The dream would not be realized. Underdevelopment in Latin America found strong allies: the colonizers and their new social, economic and military agendas to ensure that those who had recently proclaimed its independence did not come out of their reach.

The Anglo-Saxon empire, mainly supported by a banking system without military or economic boundaries, swallowed the first semi-democratic bastions left in the planet now known as G7, and once these were controlled, it was a matter of time before the rest of the planet was well absorbed. Working through proxy governments like the United States, Canada, France, Spain, England, Italy, Australia, Colombia and more recently Iraq and Afghanistan, the empire used mainly three tools: the model of dependence, foreign aid and military hegemony .

With the dependency model, the empire was guaranteed, and still is today, that countries could not compete with their former owners. The unit includes illegal policies of protectionism, subsidies, establishing trading programs (FTAA, NAFTA, CAFTA)-to flood markets with cheap products, which together amount today to a perpetual trade imbalance tilted to favor bankers. This resulted in the fact that developing countries were never competitive in international markets and rather remained as subjects of the Anglo-Saxons to a greater degree. Developing countries continued to be territories where the globalist-controlled developed nations got their materials to perpetuate their development, while taking advantage of third world countries’ cheap labor to strengthen the corporatist system that has ruled the planet for nearly 200 years.

With financial aid, the corporatists inflicted a second blow that destroyed more dependent countries on the intentions of reaching the much desired development. When third world countries failed to develop, it just seemed like a great idea to borrow money to boost their economies towards development. However, the trojan horse with this new method was to keep the borrowing countries deep indebted to prevent their development. Most of the money from the World Bank, IMF and governments dominated by European bankers were given as loans. These loans are so attractive because of the time is provided for the repayment, but at the same time are brutal due to their high interest rates of 30%, 40%, etc., which makes it mathematically impossible to pay the accrued interests, let alone the capital. This effectively tied up the wings of any development momentum the third world had. Along with high-interest loans, the agreements contained in them also requires the adoption of austerity policies that further restrict governments from encouraging development; less money is spent on education, health, infrastructure, creation of projects that in turn generate jobs, etc.. Also attached to these limitations exists an obligation on the part of the debtors to pass on the debt to three or four generations to ensure that countries cannot allocate resources and/or plan ahead.

While the globalists plundered -and continue plundering resources-, developing are also the markets for selling finished products with added value, which transformed them not only in slaves, but also in mindless consumists molded through the Madison Avenue hollow propaganda. Then, a third strategy was implemented. The creation of military conflicts in the region by where corporatists simply collapsed large areas, almost the entire continent. This is very clear in Latin America today. The U.S. proxy government, led through the decades by various puppets of the Anglo-Saxon empire, flooded Latin America officially and unofficially, using his terrorist organizations like the Central Intelligence Agency (CIA). They used for operations in countries like Colombia, Mexico, Venezuela, Panama, Argentina and others to create resistance movements to destabilize the nations. This is one of the most common strategies used to create divisions among the people who end up eating away any country that shows a vestige of independence. The corporatists also ensure that only their pawns are elected presidents in these countries. Only those who attend the most famous universities in the U.S. and Europe, where they are indoctrinated or bribed, have a real chance to “steer” the destinies of their people.

The existence of common understandings through these governments ensures access to the country, establishing policies that assure more underdevelopment and the continued plundering of more resources. Today, the bankers who control the U.S. government has established military bases throughout Latin America. Along with this armies, the implementation of aid packages and coporatist policies, have also secured access to unlimited sources of energy, water and biodiversity. Some of the most influential are: the Plan Colombia, the FTAA, Plan Puebla Panama, and soon in 2010, the new carbon emissions agreement to be negotiated in Mexico under the command of the Prince of change, Barack Hussein Obama .

The military hegemony and the exercises that assure it are practiced in various countries by the Southern Command, which is an American paramilitary organization that for years has eaten away the independence and sovereignty of all countries in which it operates. Its main purpose is to train Latin American militaries to fight “terrorism”; that deluded idea created during the administration of George Bush and that is based on the assumption that Islamic extremists want to destroy the American dream and that if it was achieved, we would all suffer. Military exercises are conducted throughout Latin America, with recruits from countries like Brazil, Argentina, Peru, Paraguay, Chile and Bolivia. The most notorious example of these military exercises took place in 2001 when international troops invaded the Argentine territory of Salta to practice against suspected insurgents. New military bases are opened each year through the signing of new agreements for the establishment of more bases in Latin American and Caribbean territories. “The plan of economic and political domination, which has spearheaded the U.S. military dominance, goes also to monitor and control the dynamics of popular movements in the region or, as the Mexican teacher Ana Esther Cecena calls, deter, prevent the enemy from forming. ”

The creation of military and naval bases is the daily bread for more and more Latinos. The facilities vary in names and sizes: the Tres Esquinas, Colombia; Iquitos, in Peru, Manta in Ecuador; Palmerola, Honduras; Comalapa, El Salvador, Queen Beatrix, on the island of Aruba, Liberia, Costa Rica. Resistance by many Latino citizens has had few positive results. In Brazil and Argentina, the banker controlled Washington, DC has developed a possible handover of the base of Alcantara, installed in Brazilian territory, and the possibility of installing a base in Misiones, on the triple border between Argentina, Paraguay and Brazil is almost a reality as well. The military hegemony not only consolidates the imperialist war power, but also enables the control of resources in the region. As bankers have done it in Asia, Latin America is also a source of precious materials. The 21st century colonialists who are the same for the past two centuries, have sacrificed the lives of millions of people in their desire to grab more territory. The United States in particular, has mechanisms of domination and overexploitation of the FTAA and NAFTA policies promoted by the IMF and World Bank, which are agencies of the Anglo-Saxon imperialist power. And why is there so much interest in what Latin America can provide? “Latin America and the Caribbean possesses 11 percent of the world oil reserves and produces nearly 15 percent of the oil extracted in the world,” cites the website visionesalternativas.com. “In addition, Latin America accounts for about 6 percent of natural gas reserves, large coal reserves – enough for about 288 years of exploitation – and abundant hydro-energy resources, estimated at over 20 per cent the global potential.

The Latin American natural wealth should be added to the fact that the globalists seek to implement more comprehensive policies in order to get more control over the population. Brazil, for example, has already adopted the RFID technology to impose property taxes on animals and in 2010 for the identification of individuals. Also in Brazil, the president recently signed a law that transferred huge tracts of land in the Amazon to the hands of the UN. A new “green police” also limits the development of projects and land use for food crops, thereby jeopardizing the supply of products to local and international markets. Mexico is currently the country with the continent’s most oppressive government where citizens are targeted by the military and paramilitaries, both groups are funded and controlled by the United States in order to ensure easy traffic of drugs to North America. Mexican cartels that do not obey the imperialists are exterminated and those who do pay their share of the goods and profits are free to murder anyone who opposes their reign. Just as in Afghanistan and Colombia, the U.S. army trained and armed Southern Command, controls the planting, harvesting and selling of tons of drugs that are then sent in the U.S., Canada, Europe, and of course in Latin America. The proceeds are then laundered through the big banks on Wall Street. The Anglo-Saxons have also hijacked the continent through the imposition of restrictions on commerce and military agreements between Latin American countries and other competitors such as China and Russia.

And what is the common denominator of imposing economic, political and military rules on the continent? The result is very clear. All you have to do is to review the overall state of the countries to realize that the objective of limiting or nullifying the development has been reached. According to the World Bank, the external debt only from the Mercosur countries increased from $185 million in 1990 to $325 million in 2005. The crime continues to increase in countries like Costa Rica, Mexico, Brazil, Colombia, Argentina, where gangs and drug cartels control populations on the outskirts of the metropolis, and remains highly stable in Guatemala, Honduras, Dominican Republic, Haiti and others. But perhaps the clearest result of policies imposed on Latin America is the underdevelopment in which all countries are maintained. No country in this block is considered to be developed after having proclaimed themselves independent nations for decades. Poverty in Latin America has gotten worse in many countries due to their internal and regional conflicts as well as corrupt governments that serve the globalists.

A recent study by ECLAC, an organization of the UN reveals that at least 182 million people live in poverty in Latin America, and the number of those living in extreme poverty reached 12.9 percent. The study reveals that the number of people regarded as poor increased due mainly to higher inflation and higher food prices. The poverty rate is divided into four groups. The first highlights countries whose levels are below 22% such as Argentina, Chile, Uruguay and Costa Rica, the second poorest group includes Brazil, Mexico, Panama and Venezuela, the third and even poorer has Colombia, Dominican Republic, Ecuador, El Salvador and Peru, and the fourth is composed by the worse off countries such as Bolivia, Guatemala, Honduras, Nicaragua and Paraguay.

Neo-colonialism does not allow developing countries to prosper, that’s a fact. The patent monopoly, control of natural resources and energy sources stop any progress. The use of military and paramilitary terrorism by globalists also stifles the nations and makes them victims of a system that is aimed at undermining the sovereignty and independence of any State. However, there is another fact that does not help in implementing development policies in Latin America. The legal and illegal choice of tyrants like Hugo Chávez in Venezuela, Fidel Castro in Cuba, Daniel Ortega in Nicaragua, and puppets like Oscar Arias, Ernesto Cedillo, Luis Inacio da Silva, Kristina Fernandez, Felipe Calderón, Alvaro Uribe and many others, contributes to all countries in Latin America continued in the hands of the imperialists. The tyrants, restrict progress because of their thirst for power denies their people the real benefits of development. Venezuela and Cuba are hit daily with attacks on freedom of speech, assembly, property rights and others. The puppets also limit development because they follow directly and indirectly imposing on the continent the plans that seek to restrain their countries from developing at all costs. It is a deadly combination of corruption and selfishness.

We must remember that the Anglo-Saxon plan’s main objective is to increase their control over the rest of the planet, and thereby promote and impose their policies on the nations of Latin America and beyond by using their own governments or organizations such as Mercosur, the North American Union, the African Union, Asian Union and of course the UN, the European Union, the World Health Organization, the World Trade Organization. The only way to start the path to development is thus breaking any existing relationships with these organizations to which all countries subject their decisions.

No organization has power over any country. This power that seems so hard to break is only valid if people let it rule them. In Iceland for example, Congress is about to vote on a measure to not pay external debt incurred in with the World Bank and IMF which was created through their illegal schemes of development loans. In the U.S., member states have and continue to proclaim their independence from the federal government which is bound to them by the system of slavery of the globalists. In Europe, at least half of the countries question the installation of malicious scanners at airports under the pretext of terrorism. When we understand that we are free to do what our Constitution allows, and that this is the only document that governs each of our lands, is when we will hold the Anglo-Saxon imperialists at bay. Therefore, progress, independence and freedom are realistic and achievable goals that are will come when each of the citizens as individuals make the decision to educate themselves, to understand how to the globalists deceive them with names, ideologies, political parties, false choices and even with religious extremism to keep them as slaves. No individual, no ideology, no political party, no politician or religion is the solution to progress by itself. The solution begins with each one of us first as thinking individuals and groups of active citizens demanding their governments the results for which they were elected.


Sources for this article include but are not limited to the following:

United States Imperialism in Latin America
http://www.hartford-hwp.com/archives/40/index-dca.html

US Interventions in Latin America Since 1823
http://www.mindfully.org/Reform/2003/US-Interventions-1823.htm

Neocolonialism: a bibliography
http://science.jrank.org/pages/7920/Neocolonialism.html

U.S. Military Aid Before and After 9/11, Region Breakdown
http://projects.publicintegrity.org/militaryaid/regiondetail.aspx?REGION=Western Hemisphere

The Bush Effect: U.S. Military Involvement in Latin America Rises, Development and Humanitarian Aid Fall
http://www.commondreams.org/views05/1105-21.htm

Qué es el ALCA?
http://www.visionesalternativas.com/militarizacion/geoestrategia/alca.htm

El Plan Puebla Panama
http://www.visionesalternativas.com/militarizacion/geoestrategia/ppp.htm

El Plan Colombia
http://www.visionesalternativas.com/militarizacion/geoestrategia/pcolom.htm

La Triple Frontera
http://www.visionesalternativas.com/militarizacion/geoestrategia/3front.htm

US Navy Deploys Around Latin America
http://rinf.com/alt-news/war-terrorism/us-navy-deploys-around-latin-america/3375/

Honduras deal a boost for US influence in Latin America http://www.csmonitor.com/World/Americas/2009/1030/p06s19-woam.html

US Navy Re-establishes Fleet for Caribbean, Latin America http://rawstory.com/news/afp/US_Navy_re_establishes_fleet_for_Ca_04242008.html

US builds up its bases in oil-rich South America
http://www.independent.co.uk/news/world/americas/us-builds-up-its-bases-in-oilrich-south-america-1825398.html

US launches major military exercises in the Caribbean as a warning to Venezuela and Cuba
http://www.handsoffvenezuela.org/us_military_exercises_venezuela_cuba.htm