WAR Between U.S. and Russia! Senate Passes Bill to Fund Ukraine

Gen_Douglas MacArthur_National Emergency
Economic war, Trade war, Currency war, Economic Sanctions, Proxy war, Undeclared war, call it what you will, it still is war!

*U.S. Congress sent White House “Bill” with tougher sanctions to punish Russia
*Citigroup now towers over Congress, with new Headquarters.
Waging Financial War
http://www.bloomberg.com/news/2014-12-14/congress-sends-obama-measure-pushing-for-more-russia-sanctions.html
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U.S. Army Sending 100 Tanks to Eastern Europe to Deter ‘Russian Aggression’

The U.S. Army plans to send 100 Abrams tanks and Bradley Fighting Vehicles into Eastern Europe as a deterrent to “Russian aggression.”
Lt. Gen. Frederick “Ben” Hodges, the commander of U.S. Army Europe, told reporters of the decision while in Lithuania.
http://www.washingtontimes.com/news/2014/dec/2/us-army-sending-100-tanks-eastern-europe-deter-rus/
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RELATED:
Recall recently Congress passed war propaganda against Russia

https://ronmamita.wordpress.com/2014/12/14/ruled-by-bankers-corporate-government/
https://ronmamita.wordpress.com/2014/12/07/prepare-for-the-next-major-crisis/
https://ronmamita.wordpress.com/2014/11/15/war-mongers-crash-the-g20-summit/
https://ronmamita.wordpress.com/2014/10/16/conspiracy-watch-u-s-plunge-protection-team/
https://ronmamita.wordpress.com/2014/08/18/governments-hidden-agendas-and-diabolical-plans/
https://ronmamita.wordpress.com/2014/05/29/reminder-world-war-3-has-already-begun/
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5 comments on “WAR Between U.S. and Russia! Senate Passes Bill to Fund Ukraine
  1. RonMamita says:

    When Is A War Not A War?

    *When you are The Elite!

    Money as Debt = Debt-Bondage = Debt slavery

    The very essence of the banking system. To make us all slaves to debt. Those who control the debt, control everything.

    *The elite are not at war with each other, not even when their factions are competing for leadership!

    *The Elite fund all sides of the War!

    *The Elite are safe and out of harms way with additional security!
    Review past wars and note what was designated as off limits for targeting. Even during WWII certain German regions were not targeted, in Vietnam some regions were designated and not targeted…

    Elite central bankers, and elite families are not targeted even if they reside in enemy nations.

  2. RonMamita says:
    The Elite, the ‘Great Game’ and World War III

    This article was originally published in June 2011

    The Elites’ ‘Great Game’ and World War III

    The control of the US, and of global politics, by the wealthiest families of the planet is exercised in a powerful, profound and clandestine manner. This control began in Europe and has a continuity that can be traced back to the time when the bankers discovered it was more profitable to give loans to governments than to needy individuals.

    These banking families and their subservient beneficiaries have come to own most major businesses over the two centuries during which they have secretly and increasingly organised themselves as controllers of governments worldwide and as arbiters of war and peace.

    Unless we understand this we will be unable to understand the real reasons for the two world wars and the impending Third World War, a war that is almost certain to begin as a consequence of the US attempt to seize and control Central Asia. The only way out is for the US to back off – something the people of the US and the world want, but the elite does not.

    The US is a country controlled through the privately owned Federal Reserve, which in turn is controlled by the handful of banking families that established it by deception in the first place.

    In his interesting book The Secret Team, Col. Fletcher Prouty, briefing officer of the US President from 1955-63, narrates a remarkable incident in which Winston Churchill made a most revealing utterance during World War II:

    “On this particular night there had been a heavy raid on Rotterdam. He sat there, meditating, and then, as if to himself, he said, ‘Unrestricted submarine warfare, unrestricted air bombing – this is total war.’ He continued sitting there, gazing at a large map, and then said, ‘Time and the Ocean and some guiding star and High Cabal have made us what we are’.”

    Prouty further states:

    “This was a most memorable scene and a revelation of reality that is infrequent, at best. If for the great Winston Churchill, there is a ‘High Cabal’ that has made us what we are, our definition is complete. Who could know better than Churchill himself during the darkest days of World War II, that there exists, beyond doubt, an international High Cabal? This was true then. It is true today, especially in these times of the One World Order. This all-powerful group has remained superior because it had learned the value of anonymity.” This “High Cabal” is the “One World Cabal” of today, also called the elite by various writers.

    The High Cabal and What They Control

    The elite owns the media, banks, defence and oil industry. In his book Who’s Who of the Elite Robert Gaylon Ross Sr. states: “It is my opinion that they own the US military, NATO, the Secret Service, the CIA, the Supreme Court, and many of the lower courts. They appear to control, either directly or indirectly, most of the state, county, and local law enforcement agencies.”

    The elite is intent on conquering the world through the use of the abilities of the people of the United States. It was as far back as 1774 that Amschel Mayer Rothschild stated at a gathering of the twelve richest men of Prussia in Frankfurt: “Wars should be directed so that the nations on both sides should be further in our debt.” He further enunciated at the same meeting: “Panics and financial depressions would ultimately result in World Government, a new order of one world government.”

    The elite owns numerous “think tanks” that work for expanding, consolidating and perpetuating its hold on the globe. The Royal Institute of International Affairs (RIIA), the Council on Foreign Relations (CFR), the Bilderberg Group, the Trilateral Commission, and many other similar organisations are all funded by the elite and work for it. These think tanks publish journals, such as Foreign Affairs, in which these imperialist and anti-mankind ideas are edified as publications, and then, if need be, expanded in the form of books that are given wide publicity.

    Zbigniew Brzezinski and Henry Kissinger et al, as well as the neo-con “thinkers,” owe their positions and good living standards to the largesse of the elite. This is an important point that must be kept in full view at all times. These thinkers and writers are on the payroll of the elite and work for them. In case someone has any doubts about such a statement, it might help to read the following quotes from Professor Peter Dale Scott’s comprehensively researched book The Road to 9/11 – Wealth, Empire, and the Future of America (University of California Press, 2007):

    …Bundy’s Harvard protégé Kissinger was named to be national security adviser after having chaired an important “study group” at the Council on Foreign Relations. As a former assistant to Nelson Rockefeller, Kissinger had been paid by Rockefeller to write a book on limited warfare for the CFR. He had also campaigned hard in Rockefeller’s losing campaign for the Presidential nomination in 1968. Thus Rockefeller and the CFR might have been excluded from control of the Republican Party, but not from the Republican White House. (Page 22)

    The following quote from page 38 of the book is also very revealing:

    The Kissinger-Rockefeller relationship was complex and certainly intense. As investigative reporter Jim Hougan wrote: “Kissinger, married to a former Rockefeller aide, owner of a Georgetown mansion whose purchase was enabled only by Rockefeller gifts and loans, was always a protégé of his patron Nelson Rockefeller, even when he wasn’t directly employed by him.”

    Professor Scott adds:

    Nixon’s and Kissinger’s arrival in the White House in 1969 coincided with David Rockefeller’s becoming CEO of Chase Manhattan Bank. The Nixon-Kissinger foreign policy of detente was highly congruous with Rockefeller’s push to internationalise Chase Manhattan banking operations. Thus in 1973 Chase Manhattan became the first American bank to open an office in Moscow. A few months later, thanks to an invitation arranged by Kissinger, Rockefeller became the first US banker to talk with Chinese Communist leaders in Beijing.

    How They Manipulate Public Opinion

    In addition to these strategic “think tanks” the elite has set up a chain of research institutes devoted to manipulating public opinion in a manner the elite desires. As pointed out by John Coleman in his eye opening book The Tavistock Institute on Human RelationsShaping the Moral, Spiritual, Cultural, Political and Economic Decline of the United States of America, it was in 1913 that an institute was established at Wellington House, London for manipulation of public opinion. According to Coleman:

    The modern science of mass manipulation was born at Wellington House London, the lusty infant being midwifed by Lord Northcliffe and Lord Rothmere. The British monarchy, Lord Rothschild, and the Rockefellers were responsible for funding the venture… the purpose of those at Wellington House was to effect a change in the opinions of British people who were adamantly opposed to war with Germany, a formidable task that was accomplished by “opinion making” through polling. The staff consisted of Arnold Toynbee, a future director of studies at the Royal Institute of International Affairs (RIIA), Lord Northcliffe, and the Americans, Walter Lippmann and Edward Bernays. Lord Northcliffe was related to the Rothschilds through marriage.

    Bernays was a nephew of Sigmund Freud, a fact never mentioned, and developed the technique of “engineering consent.” When Sigmund Freud moved to Britain he also, secretly, became associated with this institute through the Tavistock Institute. According to Coleman, Bernays “pioneered the use of psychology and other social sciences to shape and form public opinion so that the public thought such manufactured opinions were their own.”

    The Tavistock Institute has a 6 billion dollar fund and 400 subsidiary organisations are under its control along with 3,000 think tanks, mostly in the USA. The Stanford Research Institute, the Hoover Institute, the Aspen Institute of Colorado, and many others, devoted to manipulation of US as well as global public opinion, are Tavistock offshoots. This helps explain why the US public, by and large, is so mesmerised as to be unable to see things clearly and to react.

    Bilderberg researcher Daniel Estulin quotes from Mary Scobey’s book To Nurture Humanness a statement attributed to Professor Raymond Houghton, that the CFR has been clear for a very long time that “absolute behaviour control is imminent… without mankind’s self realisation that a crisis is at hand.”

    Also keep in mind that currently 80% of US electronic and print media is owned by only six large corporations. This development has taken place in the past two decades. These corporations are elite owned. It is almost impossible for anyone who is acquainted with what is going on at the global level to watch, even for a few minutes, the distortions, lies and fabrications, incessantly pouring out of this media, a propaganda and brainwashing organ of the elite.

    Once your picture is clear it is also easy to notice the criminal silence of the media on crimes being perpetrated against humanity at the behest of the elite. How many people know that the cancer rates in Fallujah, Iraq are higher than those in Hiroshima and Nagasaki because of the use of depleted uranium, and maybe other secret nuclear devices, by US forces? Fallujah was punished for its heroic resistance against the American forces.

    The Importance of Eurasia

    Why is the US in Central Asia? In order to understand this, one has to look at the writings of the stooges of the elite – Brzezinski, Kissinger, Samuel P Huntington, and their likes. It is important to note that members of these elite paid think tanks publish books as part of a strategy to give respectability to subsequent illegal, immoral and predatory actions that are to be taken at the behest of the elite. The views are not necessarily their own – they are the views of the think tanks. These stooges formulate and pronounce policies and plans at the behest of their masters, through bodies like the Council on Foreign Relations, Bilderberg Group, etc.

    In his infinitely arrogant book The Grand Chessboard, published in 1997, Brzezinski spelled out the philosophy behind the current US military eruption. He starts by quoting the well-known views of the British geographer Sir Halford J Mackinder (1861–1947), another worker for the elite. Mackinder was a member of the ‘Coefficients Dining Club’ established by members of the Fabian Society in 1902. The continuity of the policies of the elite is indicated by the fact Brzezinski starts from Mackinder’s thesis first propounded in 1904:

    “Who rules East Europe commands the Heartland: Who rules the Heartland commands the World-Island: who commands the World-Island commands the world.”

    Brzezinski argues that for the first time in human history a non-Eurasian power has become preeminent and it must hold sway over the Eurasian continent if it is to remain the preeminent global power: “For America the chief geopolitical prize is Eurasia… About 75 percent of the world’s people live in Eurasia… Eurasia accounts for about 60 percent of the world’s GNP and about three fourths of the world’s known energy resources.”

    It is not just the geostrategic location of this region – it is also its wealth, “both in its enterprises and beneath its soil,” that holds such attraction for the elite whose greed for money, and lust for power, remain insatiable, as if there was a sickness afflicting it.

    Brzezinski writes:

    “But it is on the globe’s most important playing field – Eurasia – that a potential rival to America might at some point arise. This focusing on the key players and properly assessing the terrain has to be a point of departure for the formulation of American geostrategy for the long-term management of America’s Eurasian geopolitical interests.”

    These lines were published in 1997. Millions of people have died in the past two decades and millions have been rendered homeless in this region but it remains a “playing” field for Brzezinski and his likes! In his book Brzezinski has drawn two very interesting maps – one of these has the caption The Global Zone of Percolating Violence (page 53) and the other (page 124) is captioned The Eurasian Balkans. The first of these encircles a region which includes the following countries: Sudan, Egypt, Saudi Arabia, Turkey, Syria, Iraq, Iran, all Central Asian states, Afghanistan, Pakistan and parts of Russia as well as India. The second one has two circles, an inner circle and a wider circle – the outer circle encloses the same countries as in the first map but the inner circle covers Iran, Afghanistan, eastern Turkey and the former Soviet Republics in Central Asia.

    “This huge region, torn by volatile hatreds and surrounded by competing powerful neighbours, is likely to be a major battlefield…” writes Brzezinski.

    He further writes:

    “A possible challenge to American primacy from Islamic fundamentalism could be part of the problem of this unstable region.”

    These lines were written at a time when this kind of fundamentalism was not a problem – subsequently the US manipulated things and chose to make it one by its provocative and deceptive tactics. According to its strategic thinkers, the US might face a serious challenge from a coalition of China, Russia and Iran and must do whatever it can to prevent such a coalition from forming.

    For Brzezinski, “terrorism” – a Tavistock-type concept – is just a well planned and well thought out strategy, a lie and a deception, to provide cover for a military presence in the Central Eurasian region and elsewhere. It is being used to keep the US public in a state of fear, to keep Russia in a state of insecurity about further breakup (the US has trained and supported Chechen fighters, “terrorists,” throughout) and to justify presence of US troops in and around Central Asia.

    The Concocted War on Terrorism

    Terrorism provides justification for transforming the United States into a police state. According to the Washington Post of 20 & 21 December 2010, the US now has 4,058 anti-terrorism organisations! These are certainly not meant for those so-called terrorists who operate in Central Asia – the number far exceeds the number of so-called terrorists in the entire world. Unbridled domestic spying by US agencies is now a fact of life and the US public, as always, has accepted this because of the collusion of media and Tavistock type institutes owned by the elite.

    The US historian Howard Zinn puts it very well: “The so-called war on terrorism is not only a war against innocent people in other countries, but also a war on the people of the United States: a war on our liberties, a war on our standard of living. The wealth of the country is being stolen from the people and handed over to the superrich. The lives of our young are being stolen. And the thieves are in the White House.” Actually the thieves control the White House and have been doing so for a very long time.

    In his outstanding book Crossing the Rubicon, Michael Ruppert points out that much of the violence in the Central Asian region as well as in Pakistan, which has been encircled in two maps in Brzezinski’s book, was “initiated by the US proxies.” “Given that these maps were published a full four years before the first plane hit the World Trade Centre, they would fall in a category of evidence I learned about at LAPD [Los Angeles Police Department]. We called them ‘clues’.” This means that the eruption of US militarism after 9/11, and the event itself, were part of a pre-planned and coherent strategy of global domination in which the people of the US were also “conquered” through totalitarian legislation carried out in the wake of 9/11.

    As Brzezinski puts it:

    America is too democratic at home to be autocratic abroad. This limits the use of America’s power, especially its capacity for military intimidation. Never before has a popular democracy attained international supremacy. But the pursuit of power is not a goal that commands popular passion, except in conditions of a sudden threat or challenge to the public’s sense of domestic well-being… The economic self-denial (that is, defence spending) and the human sacrifice (casualties even among professional soldiers) required in the effort are uncongenial to democratic instincts. Democracy is inimical to imperial mobilisation.

    Certainly post 9/11 legislation, the extraordinary expansion of agencies and surveillance of the US public is a cause of great satisfaction for the elite – the US can hardly be called a democracy now. As reported by the Washington Post, the National Security Agency intercepts over 1.7 billion emails, phone calls and other communications every day and stores them. No wonder Bush called 9/11 “a great opportunity” and Rumsfeld saw it analogous to World War II to “refashion the world.”

    In order to achieve the objectives of the elite, the US destroyed Yugoslavia while Russia stood by mesmerised and impotent, carried out regime changes in Central Asia, set up military bases in East Europe and Central Asia, and staged highly provocative military exercises testing Russia’s and China’s will. It set up a military base in Kyrgyzstan that has a 500 mile or so border with China. When the Chinese protested recent naval exercises with South Korea were too close to Chinese territory, a US spokesman responded: “Those determinations are made by us, and us alone… Where we exercise, when we exercise, with whom and how, with what assets and so forth are determinations that are made by the United States Navy, by the Department of Defence, by the United States government.” As journalist Rick Rozoff notes: “There is no way such confrontational, arrogant and vulgar language was not understood at its proper value in Beijing.”

    The US has acquired bases in Romania, Bulgaria, Poland, and the Czech Republic – and set up the largest military base ever built in the region, Camp Bondsteel, in Kosovo. According to a report in the Russian Kommersant newspaper on 3 March 2011, a four-phase plan for deployment of a US missile system in Europe is to be fully implemented by the end of 2020. The US is also busy setting up bilateral military ties in Russia’s backyard with Azerbaijan, Kazakhstan, Uzbekistan, Turkmenistan and is pursuing the goal of a “Greater Central Asia” from Afghanistan right up to the Middle East, a great corridor from where the oil, gas, and great mineral wealth of this region will flow to the coffers of the US elite, at bloody expense to the local people.

    As remarked by the Indian career diplomat M.K. Bhadrakumar: “The time is not far off before they begin to sense that ‘the war on terror’ is providing a convenient rubric under which the US is incrementally securing for itself a permanent abode in the highlands of Hindu Kush, the Pamirs, Central Asian steppes and the Caucasus that form the strategic hub overlooking Russia, China, India and Iran.” The scene for a great war involving the great powers of the time – US, Russia and China – is now set, by design of the elite. It is just a matter of time.

    Time and again the US elite has taken its good people into great wars through documented and proven deceptions – the sinking of the Lusitania during World War I, Pearl Harbour in World War II, and so on. The elite considers us “human garbage” – a term first used by the French in Indo-China. It is also generating a good deal of “human garbage” in the US. A World Bank report points out that in 2005, 28 million Americans were “insecure” – in 2007 the number had risen to 46 million! One in every five Americans is faced with the possibility of becoming “destitute” – 38 million people receive food coupons!

    Michael Ruppert laments:

    My country is dead. Its people have surrendered to tyranny and in so doing, they have become tyranny’s primary support group; its base; its defender. Every day they offer their endorsement of tyranny by banking in its banks and spending their borrowed money with the corporations that run it. The great Neocon strategy of George H.W. Bush has triumphed. Convince the America people that they can’t live without the ‘good things’, then sit back and watch as they endorse the progressively more outrageous crimes you commit as you throw them bones with ever less meat on them. All the while lock them into debt. Destroy the middle class, the only political base that need be feared. Make them accept, because of their shared guilt, ever-more repressive police state measures. Do whatever you want.

    A global economic system erected on inhuman and predatory values, where a few possess more wealth than the billions of hungry put together, will end, but the end will be painful and bloody. It is a system in which the elite thrives on war and widespread human misery, on death and destruction by design. As Einstein said, “I do not know how the Third World War will be fought, but I can tell you what they will use in the Fourth – sticks and stones!”

    Prof. Mujahid Kamran is Vice Chancellor, University of the Punjab, Lahore, Pakistan, and his book The Grand Deception – Corporate America and Perpetual War has just been published (April 2011) by Sang e Meel Publications, Lahore, Pakistan.

  3. RonMamita says:

    U.S. Senate Wants War With Russia Passes Ukraine Freedom Bill

    Posted 15 Dec 2014

  4. RonMamita says:

    Russian Roulette: Taxpayers Could Be on the Hook for Trillions in Oil Derivatives

    The sudden dramatic collapse in the price of oil appears to be an act of geopolitical warfare against Russia. The result could be trillions of dollars in oil derivative losses; and the FDIC could be liable, following repeal of key portions of the Dodd-Frank Act last weekend.

    Senator Elizabeth Warren charged Citigroup last week with “holding government funding hostage to ram through its government bailout provision.” At issue was a section in the omnibus budget bill repealing the Lincoln Amendment to the Dodd-Frank Act, which protected depositor funds by requiring the largest banks to push out a portion of their derivatives business into non-FDIC-insured subsidiaries.

    Warren and Representative Maxine Waters came close to killing the spending bill because of this provision. But the tide turned, according to Waters, when not only Jamie Dimon, CEO of JPMorgan Chase, but President Obama himself lobbied lawmakers to vote for the bill.

    It was not only a notable about-face for the president but represented an apparent shift in position for the banks. Before Jamie Dimon intervened, it had been reported that the bailout provision was not a big deal for the banks and that they were not lobbying heavily for it, because it covered only a small portion of their derivatives. As explained in Time:

    The best argument for not freaking out about the repeal of the Lincoln Amendment is that it wasn’t nearly as strong as its drafters intended it to be. . . . [W]hile the Lincoln Amendment was intended to lasso all risky instruments, by the time all was said and done, it really only applied to about 5% of the derivatives activity of banks like Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo, according to a 2012 Fitch report.

    Quibbling over a mere 5% of the derivatives business sounds like much ado about nothing, but Jamie Dimon and the president evidently didn’t think so. Why?

    A Closer Look at the Lincoln Amendment

    The preamble to the Dodd-Frank Act claims “to protect the American taxpayer by ending bailouts.” But it does this through “bail-in”: authorizing “systemically important” too-big-to-fail banks to expropriate the assets of their creditors, including depositors. Under the Lincoln Amendment, however, FDIC-insured banks were not allowed to put depositor funds at risk for their bets on derivatives, with certain broad exceptions.

    In an article posted on December 10th titled “Banks Get To Use Taxpayer Money For Derivative Speculation,” Chriss W. Street explained the amendment like this:

    Starting in 2013, federally insured banks would be prohibited from directly engaging in derivative transactions not specifically hedging (1) lending risks, (2) interest rate volatility, and (3) cushion against credit defaults. The “push-out rule” sought to force banks to move their speculative trading into non-federally insured subsidiaries.

    The Federal Reserve and Office of the Comptroller of the Currency in 2013 allowed a two-year delay on the condition that banks take steps to move swaps to subsidiaries that don’t benefit from federal deposit insurance or borrowing directly from the Fed.

    The rule would have impacted the $280 trillion in derivatives primarily held by the “too-big-to-fail (TBTF) banks that include JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo. Although 95% of TBTF derivative holdings are exempt as legitimate lending hedges, leveraging cheap money from the U.S. Federal Reserve into $10 trillion of derivative speculation is one of the TBTF banks’ most profitable business activities.

    What was and was not included in the exemption was explained by Steve Shaefer in a June 2012 article in Forbes. According to Fitch Ratings, interest rate, currency, gold/silver, credit derivatives referencing investment-grade securities, and hedges were permissible activities within an insured depositary institution. Those not permitted included “equity, some credit and most commodity derivatives.” Schaefer wrote:

    For Goldman Sachs and Morgan Stanley, the rule is almost a non-event, as they already conduct derivatives activity outside of their bank subsidiaries. (Which makes sense, since neither actually had commercial banking operations of any significant substance until converting into bank holding companies during the 2008 crisis).

    The impact on Bank of America, Citigroup, JPMorgan Chase, and to a lesser extent, Wells Fargo, would be greater, but still rather middling, as the size and scope of the restricted activities is but a fraction of these firms’ overall derivative operations.

    A fraction, but a critical fraction, as it included the banks’ bets on commodities. Five percent of $280 trillion is $14 trillion in derivatives exposure – close to the size of the existing federal debt. And as financial blogger Michael Snyder points out, $3.9 trillion of this speculation is on the price of commodities.

    Among the banks’ most important commodities bets are oil derivatives. An oil derivative typically involves an oil producer who wants to lock in the price at a future date, and a counterparty – typically a bank – willing to pay that price in exchange for the opportunity to earn additional profits if the price goes above the contract rate. The downside is that the bank has to make up the loss if the price drops.

    As Snyder observes, the recent drop in the price of oil by over $50 a barrel – a drop of nearly 50% since June – was completely unanticipated and outside the predictions covered by the banks’ computer models. The drop could cost the big banks trillions of dollars in losses. And with the repeal of the Lincoln Amendment, taxpayers could be picking up the bill.

    When Markets Cannot Be Manipulated

    Interest rate swaps compose 82% of the derivatives market. Interest rates are predictable and can be controlled, since the Federal Reserve sets the prime rate. The Fed’s mandate includes maintaining the stability of the banking system, which means protecting the interests of the largest banks. The Fed obliged after the 2008 credit crisis by dropping the prime rate nearly to zero, a major windfall for the derivatives banks – and a major loss for their counterparties, including state and local governments.

    Manipulating markets anywhere is illegal – unless you are a central bank or a federal government, in which case you can apparently do it with impunity.

    In this case, the shocking $50 drop in the price of oil was not due merely to the forces of supply and demand, which are predictable and can be hedged against. According to an article by Larry Elliott in the UK Guardian titled “Stakes Are High as US Plays the Oil Card Against Iran and Russia,” the unanticipated drop was an act of geopolitical warfare administered by the Saudis. History, he says, is repeating itself:

    The fourfold increase in oil prices triggered by the embargo on exports organised by Saudi Arabia in response to the Yom Kippur war in 1973 showed how crude could be used as a diplomatic and economic weapon.

    Now, says Elliott, the oil card is being played to force prices lower:

    John Kerry, the US secretary of state, allegedly struck a deal with King Abdullah in September under which the Saudis would sell crude at below the prevailing market price. That would help explain why the price has been falling at a time when, given the turmoil in Iraq and Syria caused by Islamic State, it would normally have been rising.

    . . . [A]ccording to Middle East specialists, the Saudis want to put pressure on Iran and to force Moscow to weaken its support for the Assad regime in Syria.

    War on the Ruble

    If the plan was to break the ruble, it worked. The ruble has dropped by more than 60% against the dollar since January.

    On December 16th, the Russian central bank counterattacked by raising interest rates to 17% in order to stem “capital flight” – the dumping of rubles on the currency markets. Deposits are less likely to be withdrawn and exchanged for dollars if they are earning a high rate of return.

    The move was also a short squeeze on the short sellers attempting to crash the ruble. Short sellers sell currency they don’t have, forcing down the price; then cover by buying at the lower price, pocketing the difference. But the short squeeze worked only briefly, as trading in the ruble was quickly suspended, allowing short sellers to cover their bets. Who has the power to shut down a currency exchange? One suspects that more than mere speculation was at work.

    Protecting Our Money from Wall Street Gambling

    The short sellers were saved, but the derivatives banks will still get killed if oil prices don’t go back up soon. At least they would have been killed before the bailout ban was lifted. Now, it seems, that burden could fall on depositors and taxpayers. Did the Obama administration make a deal with the big derivatives banks to save them from Kerry’s clandestine economic warfare at taxpayer expense?

    Whatever happened behind closed doors, we the people could again be stuck with the tab. We will continue to be at the mercy of the biggest banks until depository banking is separated from speculative investment banking. Reinstating the Glass-Steagall Act is supported not only by Elizabeth Warren and others on the left but by prominent voices such as David Stockman’s on the right.

    Another alternative for protecting our funds from Wall Street gambling can be done at the local level. Our state and local governments can establish publicly-owned banks; and our monies, public and private, can be moved into them.

    _________________

    Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including the best-selling Web of Debt. Her latest book, The Public Bank Solution, explores successful public banking models historically and globally. Her 200+ blog articles are at EllenBrown.com.

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The Worldwide Wave of Action
Peaceful Global TransitionApril 4th, 2014
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