Coercive Engineered Migration: Zionism’s War on Europe

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Coercive Engineered Migration: Zionism’s War on Europe

Postby seemslikeadream » Mon Jan 25, 2016 4:23 pm

Dissident Voice

(Part 1 of an 11 part series)


Gearóid Ó Colmáin is a journalist and political analyst based in Paris. His work focuses on globalization, geopolitics and class struggle. He is a regular contributor to Dissident Voice, Global Research, Russia Today International, Press TV, Sputnik Radio France, Sputnik English, Al Etijah TV, Sahar TV, and has also appeared on Al Jazeera and Al Mayadeen. He writes in English, Gaelic, and French.


Coercive Engineered Migration: Zionism’s War on Europe
Is Victor Orban the 'Chavez of Europe? (Part 1 of an 11 part series)
by Gearóid Ó Colmáin / January 16th, 2016

If aggression against another foreign country means that it strains its social structure, that it ruins its finances, that is has to give up its territory for sheltering refugees, what is the difference between that kind of aggression and the other type, the more classical type, when someone declares war, or something of that sort.
— Sawer Sen, India’s Ambassador to the UN

In an EU press conference on September 3rd, 2015 Hungarian Prime Minister Victor Orban candidly referred to the current refugee crisis in Europe as “Germany’s problem”. Orban was referring to the fact that refugees amassing at the border of Hungary were heading, for the most part, to Germany. The Hungarian Prime Minister stressed that most of the refugees did not intend to stay in Hungary. Orban has come under criticism for his decision to erect a security fence on the Hungarian/Serbian border in order to stem the flow of migrants entering Hungarian territory illegally.

While most of the European media have portrayed Orban as a xenophobic, far right dictator, the decision to erect a fence was carried out in compliance with EU regulations, which require that all immigrants entering the Shengen zone be registered by the police at the border. Yet, paradoxically, Brussels is criticizing the Hungarian Prime Minister for attempting to comply with EU laws!

France’s daily Le Monde refers to the Hungarian Prime Minister as the man who is attempting to ‘criminalise‘ illegal immigrants. It is indeed a strange country that would criminalize those who break its laws!

So why is Orban coming under fire? Since coming to power in 2010 Victor Orban has implemented domestic, social and political policies that run counter to those dictated by the EU commission. In 2013 Hungary closed down the office of the International Monetary Fund, bringing the country’s finance under state control.

The International Monetary Fund is a key institution of US/Zionist global governance and there are few countries who have escaped its clutches of permanent debt. Therefore, the decision of the Hungarian government to show the IMF the door was nothing short than an act of bold insubordination to US imperialism.

Hungary has also come under criticism for media laws which ban foreign interference from US propaganda outlets such as Voice of America, which the Hungarian government deems to be contrary to the public interest. Consequently, the European Union, which is perfectly happy to ban Iranian television stations, has criticized Hungary for violations of ‘freedom of speech’.

Orban told an audience in Chatham House in 2013 that he believed there was a “leftist and green conspiracy” in Europe against “traditional values”. Orban is no doubt referring to the constant tirades made by war mongering ‘leftist’ zionists such as EU MP Daniel Cohen Bendit against Hungary. Bendit has ironically called Orban the “Chavez of Europe”. This example of ideological name-calling epitomises the meaninglessness of the left/right political paradigm in the post-Soviet era.

Orban’s ‘nationalism’ is not an imperial project. It is, rather, a national philosophy which goes against, and weakens, imperialism. It is nationalism in the sense of national liberation from neo-colonial oppression in the form of international financial institutions and the EU.

Orban’s defense of ‘traditional values’ has brought him ideologically closer to the foreign policy agenda of Russian President Vladimir Putin, who visited the country in 2014. During Putin’s visit to Hungary, Orban praised the Russian leader’s role in attempting to find a peaceful solution to the Syrian war. In 2014 Orban told Hungarian media that the Ukrainian war was caused by the desire of the United States to gain control of Eastern Europe. He also pointed out that the United States wanted to draw Hungary into the crisis.

The Hungarian Prime Minister has made no secret of his desire to pursue an independent domestic and foreign policy. Hungary also has close ties to China and Iran. Therefore, to attempt, as some analysts have done, to portray Victor Orban as part of the reactionary, imperialist, xenophobic right is to oversimplify the complex interplay of ideological and geopolitical forces in the current global political arena and, in particular, the deep forces determining the generation and management of the refugee/migrant crisis. Therefore, to compare Orban’s opposition to immigration to that of British Prime Minister David Cameron is to oversimplify the matter.

British Prime Minister David Cameron plays up his opposition to immigration. But this has nothing to do with the real agenda of the British government. Cameron’s anti-immigration policies are simply the appeal to xenophobia which the Tories require to maintain their electoral votes. Cameron’s regime serves international finance capitalism in its most brutal form and finance capitalism needs constant immigration. Orban’s objections are based more on his conflict with finance capitalism and his criticisms of the liberal ideology driving globalisation.

Victor Orban has proposed that the refugees/migrants be sent back to Turkey until the end of the war in Syria. This is a sensible proposal. The ‘Refugees are Welcome’ slogan and the subsequent marches in favour of immigration served US/Israeli geostrategic objectives. Currently, few people seem to realise that and, as in the Arab Spring of 2011, the bandwagon of US imperialism has no shortage of passengers.

In this sense, Victor Orban of Hungary is, in a very limited way, worthy of the epithet ‘Hugo Chavez of Europe’. While many of Victor Orban’s political policies are far from left-wing, (for example, the banning of communist symbols) his embrace of a traditionalist, dirigiste form of capitalism with strong pro-family social policies and a multi-vectored foreign policy brings his country closer to countries such as Venezuela, Belarus, Eritrea and other nation-states attempting to maintain their sovereignty in the face of imperialism.

A deeply biased and hostile article on Le Monde nevertheless accurately describes Orban’s politics as ‘economically left wing while culturally right wing’. However, qualification is needed here. His policies are ‘left-wing’ from the point of view of global corporate finance but Orban’s economic policies favour the national, patriotic bourgeoisie and are therefore right-wing from the perspective of the working class.

Hungary’s multi-vectored foreign policy has had benefits for the country and especially for other Southern Hemisphere partner countries such as Venezuela. For example, a photo-voltaic energy technology product developed in Hungary and financed by China, was exported to Venezuela in 2013. It is believed that the new Hungarian technology could not only enable Venezuela to become self-sufficient in electricity, it could turn the country into a major exporter of electricity. Venezuela’s cooperation with Hungary is vital to the country’s industrialisation.

What all the countries mentioned above have in common is an attempt to construct a national voluntarism in order to stem the tide of ‘globalisation’ and all its concomitant social and economic ills. This involves a national, patriotic bourgeoisie in alliance with the working class against the ‘internationalist’ compradore bourgeoisie and the ‘New World Order’. It is, in many respects, a reversal of the class dynamics of the Second World War when the Soviet Union led an organised international working class in alliance with the remnants of the democratic bourgeoisie against international fascism.

Hungarian Prime Minister Victor Orban came to power in a country that had been ravaged by the IMF and a deeply corrupt ‘socialist’ party that had emerged from decades of welfare state capitalism under Janos Kadar. Kadar, a liberal, replaced the communist Rakossi during the counter-revolution in Eastern Europe in the 1950s, when capitalism with ‘socialist ‘ characteristics replaced Cominform socialism. The process was euphemistically referred to as ‘de-Stalinisation’ but was, in fact, an attempt to restore capitalist modes of production.

Hungary’s ideological crisis culminated in the attempted coup of 1956, when the CIA, operating out of Vienna, attempted to overthrow the embattled regime with the help of former Nazi collaborators. The 1956 ‘Hungarian Revolution’ was, in many respects, an intelligence prototype for many US orchestrated regime change operations to follow decades later.

Although, Orban is said to have ‘fought against communism’ as a student, he was, like many others of his generation, a fighter against a particular type of capitalism which he perceived as a “leftist conspiracy” against the people. Marxist Leninists have always considered the triumph of Khrushchevite revisionism in the USSR in 1956 and the subsequent ‘de-stalinisation’ of the USSR and of the Popular Democracies of Eastern Europe to have constituted a counter-revolution against the dictatorship of the proletariat.

Khrushchev’s reforms involved abandoning state-centralised planning, the re-introduction of profit as the regulator of production, combined with a cynical and anti-Marxist foreign policy of ‘peaceful co-existence’ between capitalism and socialism. In order to justify these policies Khrushchev wrote a long mendacious speech slandering Stalin. Every claim against Stalin in Khrushchev’s speech has since been proven to have been a lie. Soviet revisionism killed not only socialism in the USSR but, with the notable exception of Albania, the hope of socialism throughout the world. This destruction of Marxism Leninism by the Soviet and later Chinese revisionists led to a revival of Trotskyism in Western imperial countries. And it is this ‘New Left’ that constitutes the vanguard of contemporary Western imperialism.

In this sense, Orban is correct in his analysis of a “leftist” conspiracy against civilization, for what we see today is the triumph of Trotskyist ideology in the form of Zionism and neo-conservativism, where proletarian internationalism has been subsumed by the ‘human rights’ international on the one hand and ‘islamist jihad’ on the other, a new ‘revolutionary’ alliance waging war against the working class.

One only has to observe the clenched fist of the US colour revolutions and the constant appeal to youthful rebellion to understand how capitalism is now deepening its grip on humanity through the appropriation of leftist, revolutionary symbology. Indeed, contemporary US capitalism is, to employ a phrase of Trotsky’s, ‘permanent revolution’. Or, in the words of US Grand Strategist General Thomas Barnett, “US-style globalisation is pure socio-economic revolution.”

But it is a revolution which wages war on the working class. One of the results of the ‘Arab Spring’ in Egypt was the abrogation of labour laws requiring companies to pay workers during periods of factory closure due to lack of product demand. Many of the strikes that resulted in the overthrow of Mubarak’s regime were led by US funded ‘independent’ labour organisations.

Given Orban’s intransigence on the refugee issue, he is likely to face a US/Israeli backed ‘popular protest movement’ in an attempt to effect regime change. Colour revolutions often involve the transportation of thousands of foreigners to the place of protest by US intelligence agencies operating through NGOS. This happened in Belarus in 2010. Many of the youths attempting to get into Hungary could be used as a battering ram to destablize the Hungarian nation-state.

Since the fomentation of the ‘Arab Spring’ by the CIA and its numerous NGOS in 2011, NATO’s total destruction of Libya and its proxy war against Syria, millions of people have been turned into refugees. That is why they are fleeing to Europe. But it is not the principal reason for the ‘current crisis’, or rather the current phase of an ongoing and deepening crisis.

NATO’s invasion and destruction of Libya in 2011 has led to millions of desperate people attempting to cross the Mediterranean sea. This ongoing crisis has received varying levels of coverage from the mass media. For example, the sinking of a boat in the Mediterranean in July 2015 only received a four line report in the French Le Figaro newspaper, in spite of the fact that a hundred people were drowned!

However, since the publication of a drowned boy washed up on the shores of Turkey in 2015,the refugee crisis has entered a new phase, with the photo of the boy in question being used as an excuse to drum up public support for NATO air-strikes against Syria in order to “stop the massacres”

While no one seems to know just how many Syrians are among the migrants fleeing to Europe, there has been a media fixation on these particular migrants, in spite of the fact that they only represent a minority of the current migrants amassing at the Hungarian border.

The debate about what should be done to manage the refugee/migrant crisis turns on whether or not they should be welcomed into European countries. However, this pro or anti migrant debate masks a new and highly destructive phase in US/NATO geopolitical strategy. Many of the migrants at the Hungarian border are coming from refugee camps in Turkey. Austrian intelligence has reportedly revealed that US government agencies are funding the transfer of these refugees to Europe in an attempt to destabilize the continent. This new geostrategic initiative involves using desperate refugees as weapons for the purposes of US/Zionist divide and rule of the European continent.

France’s Radio Internationale has revealed that over 95 percent of migrants in the current flow into Europe are young males between 20 and 35 years old. Many are said to be fleeing conscription in the Syrian army, which has lost thousands of brave men and women since the start of the Zionist war on their country. The preponderance of young, fit males among the so-called ‘refugees’ has also been confirmed to this author personally by researchers of Russian state television RT. When asked about the refugee issue on France’s BMTV, Russian Ambassador to France Alexandre Orlov said “All I can see are young men fleeing the war instead of defending their country”. So, why are there so few vulnerable women and children among the refugees escaping the war in Syria?

The journey across the Mediterranean to Europe can normally cost up to 11,000 dollars, more money than most European workers manage to save from years of hard labour, yet we are told that millions of war-ravaged Iraqis and Syrians are suddenly able to pay this colossal sum to make the journey to Europe. How is this possible?

The glorification of the young men fleeing conscription in Syria, coupled with the demonisation of the heroic men and women in Syria fighting for their country’s freedom, is deeply indicative of the moral turpitude of our own ruling class for whom disloyalty and cowardice are the principal characteristics.

In September a Hungarian camera woman was filmed tripping a refugee carrying a child at the Hungarian border. The video soon went viral. The camera woman is now taking legal action against the man she tripped as he has changed his story to the police. Petra Laszlo has claimed that she panicked as refugees began to charge towards her. There was much indignation in the politically correct corporate media. But Syrian patriots did some research on the Laszlo’s ‘victim’. The man’s name is apparently Osama Abdel-Muhsen Alghadab and he is a member of Japhat Al-Nosra, the Al-Qaida affiliated terrorist group that has massacred thousands of innocents in Syria.

This is not to suggest by any means that all of the refugees attempting to enter Hungary are terrorists. But in the context of a global war involving complex international networks of terrorists operating under the aegis of American, Israeli and European intelligence agencies, this incident is another argument in favour of Orban’s policy of implementing normal immigration regulatory procedures.

In February 2011 Libyan leader Muammar Gaddafi warned Europe about the danger of an invasion by migrants and, in particular, Al- Qaeda terrorists if he were to be overthrown. Syria’s President Assad has also warned Europe of the danger of thousands of Al-Qaeda and Islamic State terrorists coming to Europe, disguised as refugees. It is quite possible that a similar scenario is now coming to pass.
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Re: Engineered Migration: Zionism’s War on Europe

Postby Harvey » Mon Jan 25, 2016 4:51 pm

A very interesting and informative article (which I enjoyed reading) and I'm indebted to you for bringing it to my attention. Please continue to do so! The wealth of diverse material you've brought to the board is a real asset.

But, do you for one moment buy it's central thesis? I don't know what to think. A lot of stuff I've encountered of late feels like it's directed toward a 'post conspiracy' audience with the intent to push other very specific agenda's. Perhaps there's a discussion to be had in that by itself, the appeal to what might be termed a 'post-conspiracy' awareness in order to sell what could otherwise be described as pre-packaged ideas. I'm not saying that's the case here, this merely sparked the reaction and to it's credit, there seems to be a decent amount of scepticism over some of the recent and notable media invitations to be outraged.
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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby seemslikeadream » Mon Jan 25, 2016 5:24 pm

thanks for that Harvey .....well this is one part of a 11 part series...and I have read the first 3 ...

I do try and check the authors of articles I post/the websites and with Gearoid O Colmain I believe he is very credible...being Irish can't hurt :)

websites that publish his writings are Counter Punch...Zero Hedge....Dissent Voice....Globalresearch.....Informationclearinghouse (I know AD doesn't like them but that's AD's opinion not mine) ...365Media....whatreallyhappened....Intifada Palestine

Now I know these websites lean....I also know how a number of websites lean...I just happen to believe these websites are credible as they lean :) and I happen to concur with the thoughts on those websites most of the time. And I am positive I will learn more truth from them than the NYT or Washington Post. It's a matter of balance..isn't it?

let's look at the author....from Zero Hedge

Perhaps the most overlooked passage in all of the leaked documents that have surfaced thus far is the following from a declassified Pentagon report dated August 2012 and obtained by Judicial Watch:

...there is the possibility of establishing a declared or undeclared Salafist Principality in eastern Syria (Hasaka and Der Zor), and this is exactly what the supporting powers to the opposition want, in order to isolate the Syrian regime, which is considered the strategic depth of the Shia expansion (Iraq and Iran).”
That’s it.

That’s the smoking gun and nobody seems to care.

The passage above clearly states that the US knew this was coming and viewed it as “exactly what the supporting powers to the opposition want” on the way to not only “isolating” Assad, but also to breaking Tehran’s Shiite crescent.

Although that’s such a critical excerpt, it has been habitually overlooked, and ironically, tragedies like that which occurred in Paris only serve to galvanize public opinion around an ideal rather than around the search for answers and that, is a dangerous, dangerous thing.

In that context and (importantly) in the context of French President Francois Hollande’s push to alter the French Constitution, we bring you the following interview with journalist Gearoid O’Colmain who pretty much blows apart the entire charade in the space of ten minutes.

"There is no such thing as ISIS. ISIS is a creation of the US, we know that from official sources of the US military themselves and declassified documents"...
Political author Gearoid O Colmain discusses the Paris attacks with RT International

https://www.youtube.com/watch?v=L7GAbVhjTSw
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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby Harvey » Mon Jan 25, 2016 6:14 pm

Thanks for the speedy and comprehensive reply my friend. I suppose I'm really lamenting our dependence upon our sources. I've watched at least one of his interviews, possibly linked to from RI and very much enjoyed it.

What do you think about the larger point (possibly better in a dedicated thread) the sense in which media hooks increasingly bait for our scepticism with a distinctly post conspiratorial flavour? Don't know how better to describe it.
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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby Occult Means Hidden » Mon Jan 25, 2016 6:57 pm


Perhaps the most overlooked passage in all of the leaked documents that have surfaced thus far is the following from a declassified Pentagon report dated August 2012 and obtained by Judicial Watch:

...there is the possibility of establishing a declared or undeclared Salafist Principality in eastern Syria (Hasaka and Der Zor), and this is exactly what the supporting powers to the opposition want, in order to isolate the Syrian regime, which is considered the strategic depth of the Shia expansion (Iraq and Iran).”
That’s it.

That’s the smoking gun and nobody seems to care.



http://www.judicialwatch.org/wp-content ... sion11.pdf

I just read the report from Judicial Watch. No, I don't think this is a smoking gun. Just a statement among many scenarios discussed in an analysis paper. Would the West at that time like to see a splinter group in Eastern Syria to further isolate Assad? Yes, of course. The opposition in the report includes Saudi Arabia and they are more so implicated than the United States because of the salafi element. This appears to be the case because we are considering the anti-shia implications in this paragraph. Obviously, it is written from an understanding that many elements in the opposition are Sunni, and thereby, also for our purposes - not of the "West". The next paragraph, not quoted above but in the report, discusses what such a scenario would entail. In it, the author makes it clear that the scenario creates "dire consequences" and "grave danger" to Western "dissenters" and the Iraqi government. None of which makes much sense if we assume the motive behind the statement was a policy action pushing for establishment of what would later become ISIL.

The USA created ISIL concept is particularly strong from Russia, where we have alot of RT commentary on this subject. Again, RT stands for Russia Today.

Meanwhile, what is up with the OP's mention of Zionism?
Rage against the ever vicious downward spiral.
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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby seemslikeadream » Mon Jan 25, 2016 7:09 pm

Harvey » Mon Jan 25, 2016 5:14 pm wrote:Thanks for the speedy and comprehensive reply my friend. I suppose I'm really lamenting our dependence upon our sources. I've watched at least one of his interviews, possibly linked to from RI and very much enjoyed it.

What do you think about the larger point (possibly better in a dedicated thread) the sense in which media hooks increasingly bait for our scepticism with a distinctly post conspiratorial flavour? Don't know how better to describe it.



I wouldn't be the one to ask .....been looking through conspiratorial eyes since 1963 :)


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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby seemslikeadream » Mon Jan 25, 2016 7:13 pm

Occult Means Hidden » Mon Jan 25, 2016 5:57 pm wrote:

Perhaps the most overlooked passage in all of the leaked documents that have surfaced thus far is the following from a declassified Pentagon report dated August 2012 and obtained by Judicial Watch:

...there is the possibility of establishing a declared or undeclared Salafist Principality in eastern Syria (Hasaka and Der Zor), and this is exactly what the supporting powers to the opposition want, in order to isolate the Syrian regime, which is considered the strategic depth of the Shia expansion (Iraq and Iran).”
That’s it.

That’s the smoking gun and nobody seems to care.



http://www.judicialwatch.org/wp-content ... sion11.pdf

I just read the report from Judicial Watch. No, I don't think this is a smoking gun. Just a statement among many scenarios discussed in an analysis paper. Would the West at that time like to see a splinter group in Eastern Syria to further isolate Assad? Yes, of course. The opposition in the report includes Saudi Arabia and they are more so implicated than the United States because of the salafi element. This appears to be the case because we are considering the anti-shia implications in this paragraph. Obviously, it is written from an understanding that many elements in the opposition are Sunni, and thereby, also for our purposes - not of the "West". The next paragraph, not quoted above but in the report, discusses what such a scenario would entail. In it, the author makes it clear that the scenario creates "dire consequences" and "grave danger" to Western "dissenters" and the Iraqi government. None of which makes much sense if we assume the motive behind the statement was a policy action pushing for establishment of what would later become ISIL.

The USA created ISIL concept is particularly strong from Russia, where we have alot of RT commentary on this subject. Again, RT stands for Russia Today.

Meanwhile, what is up with the OP's mention of Zionism?



If anyone knows about forced migration it's an Irishman


5 page RI thread
How the US Helped Create Al Qaeda and ISIS


Since this is a 11 part series I think that will be made clear as one continues to read

The Weaponisation of the Refugee
Coercive Engineered Migration: Zionism's War on Europe (Part 2 of an 11 Part Series)
by Gearóid Ó Colmáin / January 20th, 2016

Artificial mass migration as imperial policy has a long history. To illustrate this, we will cite a few historical examples. According to Bulgarian historian A, Eminov, civil wars in the Balkans in the 13th and 14th centuries led to significant population decline, which greatly facilitated colonisation of the Balkans by the Ottoman Empire. The deportation of nomads and organised transportation of Muslim refugees by the Ottoman Empire played a significant role in the colonisation of this region.

Though Turks comprise over 8 percent of the Bulgarian population today, Turkey’s neo-Ottomanism has sparked accusations from Bulgaria’s nationalist party Attack that Turkey has plans to re-colonise the country. Bulgaria has the highest number of mosques in Europe per capita.

Given the fact that Turkey is supporting the Islamic State in Syria, while harbouring neo-colonial plans for the Balkans, the decision by the Bulgarian government to erect a fence along the border with Turkey is the right one. Opposition politicians in Bulgaria have described the subservience of their government to the EU and NATO as treachery and tantamount to genocide against ethnic Bulgarians, whose population has been declining drastically since the fall of communism.

In the 19th century the British Empire organised the mass migration of Bengali Muslims to Burma to work plantations in the predominantly Buddhist Rakhine State. The purpose of the migration was to create an artificial ruling class that would depend on the protection of the British Empire. The result was more than a century of tension with the indigenous Buddhist inhabitants and the Muslim settlers, a tension that has led to the ethnic cleansing of today, whereby Takfiri fanatics, financed by Pakistan and Saudi Arabia are committing genocide against local Buddhist peasants with the full complicity of ‘human rights’ organizations and the mass media as part of a US/Israeli geostrategic initiative to kossovise the Rakhine State by separating it from Myanmar, thereby securing a foothold for Western neo-colonial interests in the highly strategic Bay of Bengal. The so-called ‘Rohingya crisis’ attests to a new phase in imperialist policy; namely, the ruthless weaponization of the refugee.

In the nineteenth century, Imperial Belgium imported hundreds of thousands of Rwandan Tutsi workers to the Congo to staff their work colonies. This artificial migration policy of Belgian imperialism has played a major role in the context fueling the current ethnic cleansing and ongoing neo-colonial proxy wars being carried out by the US/Israeli and European powers in the Democratic Republic of Congo, where the US /Israeli Tutsi puppet regime of Paul Kagame is murdering and pillaging on behalf of Western corporations. The Wall Street Journal has ironically described Kagame’s Zionist puppet regime ‘The Israel of Africa’.

Here Hutu refugees fleeing Kagame’s genocidal regime have been systematically bombed and slaughtered by the Zionist backed Rwandan military. Refugees fleeing war have been used by the aggressors as a pretext to wage further war and conquest. The US and EU have been destabilizing Burundi since April 2015. Now, terrorists are attacking the country from refugee camps in Rwanda, with full backing by Western powers.

A population explosion in London in the 16th and 17th centuries provided much of the impetus behind the colonisation of America. Over two-thirds of the first settlers in North America were indentured servants, 75 percent of whom were young men under the age of 25. The youth were needed to expand the labour capacity of the Empire’s colonies. The settler culture, imbued with religious fanaticism and a complex of superiority, did not take long to decimate the native American population. One of the reasons for the population decline of the Powatan native peoples was their tolerance and kindness towards the settler culture.

Comparing the mass migration of people from the Global South to Europe today to the European colonisation of the United States might appear strained and inappropriate but there are important similarities, nonetheless. Like the 16th and 17th centuries, the world is experiencing a recrudescence of religious war, while population explosions and war in the developing world are driving mass migration. This time, however, as the world has already been divided through centuries of European colonisation, people of the Global South are now moving North. The potential for conflict between a declining native population and an assertive, Muslim-dominated settler culture is great, particularly when this serves the interests of Europe’s ruling elite who are in cahoots with the Wahhabi sheiks of the Middle East. Whilst the people of the Global South are fleeing the consequences of European imperialism, the indoctrination of Wahhabi Islam among Muslim immigrants constitutes a serious impediment to an awakening of class consciousness necessary for the unification with non-Muslim natives against their internationalist bourgeois oppressors.

In seventeenth century Ireland the British government settled lands in the northern province of Ulster with Protestant and Presbyterian settlers who lived in fear of the Catholic neighbours they had displaced. It was an imperial policy of divide and rule which lasted for centuries. In the nineteenth century, famine and mass emigration from Ireland to America were caused by the British state’s refusal to allow Irish peasants the right to eat the fruit of their labour. The mass migrations benefited the emerging ruling class of the United States who required cheap labour as well as the British government who wanted to reduce the population of Ireland. In other words, mass migration enabled the trans-Atlantic Anglo Saxon financial elite to turn the very social and economic problems they had created to their own advantage. The loss for Ireland was irreparable. Western Europe’s oldest literary vernacular language was reduced to minority status, while the loss in youthful resourcefulness worked in favour of the status quo, ensuring Ireland’s subjugation to the British imperial elite, both before and after formal independence.

A more recent example of migration used as a tool of imperialism is Eritrea. Since the country’s independence from Ethiopia in 1993, Eritrea has chartered a unique independent path to national liberation and socio-economic development. The results have been astounding, with economic growth rates surpassing most other developing countries. However, the socially-oriented policies of the Eritrean government have brought it into conflict with neo-colonial interests. As a consequence, sanctions were imposed by the United States in 2009 on the only country in the Horn of Africa that has never failed to feed, clothe and educate its children.

Meanwhile, millions flee hunger and poverty in the US client state of Ethiopia, which is currently occupying part of Eritrea since the US backed Ethiopian invasion of that country in 1998. US geostrategy against Eritrea involves smuggling Eritreans into Europe in a vast, logistical operation involving officials in the United Nations and ‘human rights’ NGOs such as Watch the Met.

This neo-colonial outfit is heavily involved in the smuggling of Middle Eastern and Central Asian refugees from Turkey.

Watch the Med is a cogent example of how petty bourgeois European prejudice against developing nations is harnessed by elites to further their globalisation agenda. The NGO, which claims to oppose the EU ‘militarization’ of the Mediterranean and fortress Europe’ slammed Colonel Gaddafi’s Libya for its alleged ‘abuse of migrants’ rights’, in spite of the fact that Gaddafi’s Libya was praised by the UN for its respect for human rights and was integrating thousands of sub-Saharen migrants in the Libyan Jamahirya, where they were able to work and benefit from free health care, education and accommodation.

A key figure in this criminal operation is a Nobel Prize candidate who goes by the name of “Father” Mussie Zerai, a phony Catholic priest who has been coordinating the smuggling of East Africans to Europe from war-torn Libya, earning him lots of cash, kudos and the epithet ‘Archangel of Refugees’. Zerai collaborates closely with Watch the Med.

It is impossible to tell if Watch the Med is receiving funding from captains of globalisation such as George Soros, but these European do-gooders would certainly deserve decent salaries from the Jewish oligarch.

As part of the destabilisation of Eritrea, the EU is giving preferential treatment to refugees if they register as Eritreans. Eritrean researchers have shown that most of the migrants from East Africa are from Ethiopia and Somalia. Yet, they register upon arrival in the EU as Eritreans. The migrants are often lost at sea. Al Jazeera recently did an interview with a trafficker from Ethiopia who confirmed that thousands of citizens from that country are being smuggled into Europe. Yet Eurostat figures for 2013-14 show no Ethniopian citizens whatsoever while Eritreans are astonishingly high.

In a Market Watch article entitled “Here’s my plan to solve the asylum chaos”, George Soros slams Victor Orbans’ policies stating that they threaten to ‘divide and destroy the EU’. Soros strongly advocates the creation of ‘NGOs’ to facilitate the mass migration into Europe.

Orban has pointed out that those welcoming the refugees/migrants into Europe are playing into the hands of Soros and global financial oligarchs.

The Eritrean government has proof of the CIA’s role in smuggling desperate people from the Horn of Africa. They also have proof of Amnesty International’s attempt to foment political unrest and violence in the country.

The phony ‘Eritrean’ refugee crisis is being cynically used by the corporate media to slander Africa’s only free and truly democratic, post-colonial nation, hampering its development while filling the coffers of the heinous ‘human rights’ murder machine, all in the service of empire. This again attests to the weaponization of the refugee. The current escalation of the refugee crisis in Europe should be analyzed in this context.

So what is the purpose of weaponizing refugees?

In the book Weapons of Mass Migration: Forced Displacement, Coercion and Foreign Policy, Kelly M. Greenhill, US foreign policy consultant, argues that coercive engineered migration is a strategy which has been used by governments to gain concessions from other governments. In other words, governments often use refugees as weapons in order to exert pressure on other governments for political ends. Greenhill documents over 59 examples of refugees being used as weapons since the Second World War.

While there are undoubtedly many women and children and innocent victims of NATO/Zionist fomented war among the flux of people migrating to Europe who deserve all the help they can get, it is deeply reactionary and dishonest to ignore the obvious instrumentalisation of migration by imperialism. Rational and honest analysis of this complex phenomenon tends to prevail in developing countries such as Russia and Iran, whose press agencies have provided extensive evidence of this problem. However, spurious political correctness often stifles constructive debate in Western countries with some analysts such as this author being slandered on social media as ‘fascists’ and ‘racists’ by soi-disant ‘leftists’ for discussing these facts. George Soros and company would certainly agree with them.
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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby Occult Means Hidden » Mon Jan 25, 2016 7:37 pm


The International Monetary Fund is a key institution of US/Zionist global governance



Well now. Where have I read about the big bad international banks run by Jews before? This isn't off to a good start. Also there is little to no evidence linking the IMF to "Zionism".

Who would benefit most by creating an impression that Israeli nationalists (along with their evil American companions) would want to hurt or destroy Europe? It's nonsense of course. But you can bet Russia would LOOOOOOVE for you to believe it. Write it to address enough atrocities over history and Western leftists will eat this stuff right up. It's practically tailor made for our viewership. But perhaps i'm being too presumptuous and I should give the full 11 articles a try...
Rage against the ever vicious downward spiral.
Time to get back to basics. [url=http://zmag.org/zmi/readlabor.htm]Worker Control of Industry![/url]
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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby seemslikeadream » Mon Jan 25, 2016 7:49 pm

DECEMBER 18, 2015
The IMF Changes its Rules to Isolate China and Russia
by MICHAEL HUDSON


The nightmare scenario of U.S. geopolitical strategists seems to be coming true: foreign economic independence from U.S. control. Instead of privatizing and neoliberalizing the world under U.S.-centered financial planning and ownership, the Russian and Chinese governments are investing in neighboring economies on terms that cement Eurasian economic integration on the basis of Russian oil and tax exports and Chinese financing. The Asian Infrastructure Investment Bank (AIIB) threatens to replace the IMF and World Bank programs that favor U.S. suppliers, banks and bondholders (with the United States holding unique veto power).

Russia’s 2013 loan to Ukraine, made at the request of Ukraine’s elected pro-Russian government, demonstrated the benefits of mutual trade and investment relations between the two countries. As Russian finance minister Anton Siluanov points out, Ukraine’s “international reserves were barely enough to cover three months’ imports, and no other creditor was prepared to lend on terms acceptable to Kiev. Yet Russia provided $3 billion of much-needed funding at a 5 per cent interest rate, when Ukraine’s bonds were yielding nearly 12 per cent.”[1]

What especially annoys U.S. financial strategists is that this loan by Russia’s sovereign debt fund was protected by IMF lending practice, which at that time ensured collectability by withholding new credit from countries in default of foreign official debts (or at least, not bargaining in good faith to pay). To cap matters, the bonds are registered under London’s creditor-oriented rules and courts.

On December 3 (one week before the IMF changed its rules so as to hurt Russia), Prime Minister Putin proposed that Russia “and other Eurasian Economic Union countries should kick-off consultations with members of the Shanghai Cooperation Organisation (SCO) and the Association of Southeast Asian Nations (ASEAN) on a possible economic partnership.”[2] Russia also is seeking to build pipelines to Europe through friendly instead of U.S.-backed countries.

Moving to denominate their trade and investment in their own currencies instead of dollars, China and Russia are creating a geopolitical system free from U.S. control. After U.S. officials threatened to derange Russia’s banking linkages by cutting it off from the SWIFT interbank clearing system, China accelerated its creation of the alternative China International Payments System (CIPS), with its own credit card system to protect Eurasian economies from the shrill threats made by U.S. unilateralists.

Russia and China are simply doing what the United States has long done: using trade and credit linkages to cement their geopolitical diplomacy. This tectonic geopolitical shift is a Copernican threat to New Cold War ideology: Instead of the world economy revolving around the United States (the Ptolemaic idea of America as “the indispensible nation”), it may revolve around Eurasia. As long as the global financial papacy remains grounded in Washington at the offices of the IMF and World Bank, such a shift in the center of gravity will be fought with all the power of the American Century (indeed, American Millennium) inquisition.

Imagine the following scenario five years from now. China will have spent half a decade building high-speed railroads, ports power systems and other construction for Asian and African countries, enabling them to grow and export more. These exports will be coming on line to repay the infrastructure loans. Also, suppose that Russia has been supplying the oil and gas energy needed for these projects.

To U.S. neocons this specter of AIIB government-to-government lending and investment creates fear of a world independent of U.S. control. Nations would mint their own money and hold each other’s debt in their international reserves instead of borrowing or holding dollars and subordinating their financial planning to the IMF and U.S. Treasury with their demands for monetary bloodletting and austerity for debtor countries. There would be less need for foreign government to finance budget shortfalls by selling off their key public infrastructure privatizing their economies. Instead of dismantling public spending, the AIIB and a broader Eurasian economic union would do what the United States itself practices, and seek self-sufficiency in basic needs such as food, technology, banking, credit creation and monetary policy.

With this prospect in mind, suppose an American diplomat meets with the leaders of debtors to China, Russia and the AIIB and makes the following proposal: “Now that you’ve got your increased production in place, why repay? We’ll make you rich if you stiff our New Cold War adversaries and turn to the West. We and our European allies will help you assign the infrastructure to yourselves and your supporters, and give these assets market value by selling shares in New York and London. Then, you can spend your surpluses in the West.”

How can China or Russia collect in such a situation? They can sue. But what court will recognize their claim – that is, what court that the West would pay attention to?

That is the kind of scenario U.S. State Department and Treasury officials have been discussing for more than a year. The looming conflict was made immediate by Ukraine’s $3 billion debt to Russia falling due by December 20, 2015. Ukraine’s U.S.-backed regime has announced its intention to default. U.S. lobbyists have just changed the IMF rules to remove a critical lever on which Russia and other governments have long relied to enforce payment of their loans.

The IMF’s role as enforcer of inter-government debts

When it comes down to enforcing nations to pay inter-government debts, the International Monetary Fund and Paris Club hold the main leverage. As coordinator of central bank “stabilization” loans (the neoliberal euphemism for imposing austerity and destabilizing debtor economies, Greece-style), the IMF is able to withhold not only its own credit but also that of governments and global banks participating when debtor countries need refinancing. Countries that do not agree to privatize their infrastructure and sell it to Western buyers are threatened with sanctions, backed by U.S.-sponsored “regime change” and “democracy promotion” Maidan-style.

This was the setting on December 8, when Chief IMF Spokesman Gerry Rice announced: “The IMF’s Executive Board met today and agreed to change the current policy on non-toleration of arrears to official creditors.” The creditor leverage that the IMF has used 2KillingTheHost_Cover_ruleis that if a nation is in financial arrears to any government, it cannot qualify for an IMF loan – and hence, for packages involving other governments. This has been the system by which the dollarized global financial system has worked for half a century. The beneficiaries have been creditors in US dollars.

In this U.S.-centered worldview, China and Russia loom as the great potential adversaries – defined as independent power centers from the United States as they create the Shanghai Cooperation Organization as an alternative to NATO, and the AIIB as an alternative to the IMF and World Bank tandem. The very name, Asian Infrastructure Investment Bank, implies that transportation systems and other infrastructure will be financed by governments, not relinquished into private hands to become rent-extracting opportunities financed by U.S.-centered bank credit to turn the rent into a flow of interest payments.

The focus on a mixed public/private economy sets the AIIB at odds with the Trans-Pacific Partnership (TPP) and its aim of relinquishing government planning power to the financial and corporate sector for their own short-term gains, and above all the aim of blocking government’s money-creating power and financial regulation. Chief Nomura economist Richard Koo, explained the logic of viewing the AIIB as a threat to the US-controlled IMF: “If the IMF’s rival is heavily under China’s influence, countries receiving its support will rebuild their economies under what is effectively Chinese guidance, increasing the likelihood they will fall directly or indirectly under that country’s influence.”[3]

Russian Finance Minister Anton Siluanov accused the IMF decision of being “hasty and biased.”[4] But it had been discussed all year long, calculating a range of scenarios for a long-term sea change in international law. The aim of this change is to isolate not only Russia, but even more China in its role as creditor to African countries and prospective AIIB borrowers. U.S. officials walked into the IMF headquarters in Washington with the legal equivalent of financial suicide vests, having decided that the time had come to derail Russia’s ability to collect on its sovereign loan to Ukraine, and of even larger import, China’s plan for a New Silk Road integrating a Eurasian economy independent of U.S. financial and trade control. Anders Aslund, senior fellow at the NATO-oriented Atlantic Council, points out:

The IMF staff started contemplating a rule change in the spring of 2013 because nontraditional creditors, such as China, had started providing developing countries with large loans. One issue was that these loans were issued on conditions out of line with IMF practice. China wasn’t a member of the Paris Club, where loan restructuring is usually discussed, so it was time to update the rules.

The IMF intended to adopt a new policy in the spring of 2016, but the dispute over Russia’s $3 billion loan to Ukraine has accelerated an otherwise slow decision-making process.[5]

The Wall Street Journal concurred that the underlying motivation for changing the IMF’s rules was the threat that Chinese lending would provide an alternative to IMF loans and its demands for austerity. “IMF-watchers said the fund was originally thinking of ensuring China wouldn’t be able to foil IMF lending to member countries seeking bailouts as Beijing ramped up loans to developing economies around the world.”[6] In short, U.S. strategists have designed a policy to block trade and financial agreements organized outside of U.S. control and that of the IMF and World Bank in which it holds unique veto power.

The plan is simple enough. Trade follows finance, and the creditor usually calls the tune. That is how the United States has used the Dollar Standard to steer Third World trade and investment since World War II along lines benefiting the U.S. economy.

The cement of trade credit and bank lending is the ability of creditors to collect on the international debts being negotiated. That is why the United States and other creditor nations have used the IMF as an intermediary to act as “honest broker” for loan consortia. (“Honest broker” means in practice being subject to U.S. veto power.) To enforce its financial leverage, the IMF has long followed the rule that it will not sponsor any loan agreement or refinancing for governments that are in default of debts owed to other governments. However, as the afore-mentioned Aslund explains, the IMF could easily change its practice of not lending into [countries in official] arrears … because it is not incorporated into the IMF Articles of Agreement, that is, the IMF statutes. The IMF Executive Board can decide to change this policy with a simple board majority. The IMF has lent to Afghanistan, Georgia, and Iraq in the midst of war, and Russia has no veto right, holding only 2.39 percent of the votes in the IMF. When the IMF has lent to Georgia and Ukraine, the other members of its Executive Board have overruled Russia.[7]

After the rules change, Aslund later noted, “the IMF can continue to give Ukraine loans regardless of what Ukraine does about its credit from Russia, which falls due on December 20. [8]

Inasmuch as Ukraine’s official debt to Russia’s sovereign debt fund was not to the U.S. Government, the IMF announced its rules change as a “clarification.” Its rule that no country can borrow if it is in default to (or not seriously negotiating with) a foreign government was created in the post-1945 world, and has governed the past seventy years in which the United States Government, Treasury officials and/or U.S. bank consortia have been party to nearly every international bailout or major loan agreement. What the IMF rule really meant was that it would not provide credit to countries in arrears specifically to the U.S. Government, not those of Russia or China.

Mikhail Delyagin, Director of the Institute of Globalization Problems, understood the IMF’s double standard clearly enough: “The Fund will give Kiev a new loan tranche on one condition that Ukraine should not pay Russia a dollar under its $3 billion debt. Legally, everything will be formalized correctly but they will oblige Ukraine to pay only to western creditors for political reasons.”[9] It remains up to the IMF board – and in the end, its managing director – whether or not to deem a country creditworthy. The U.S. representative naturally has always blocked any leaders not beholden to the United States.

The post-2010 loan packages to Greece are a notorious case in point. The IMF staff calculated that Greece could not possibly pay the balance that was set to bail out foreign banks and bondholders. Many Board members agreed (and subsequently have gone public with their whistle-blowing). Their protests didn’t matter. Dominique Strauss-Kahn backed the US-ECB position (after President Barack Obama and Treasury secretary Tim Geithner pointed out that U.S. banks had written credit default swaps betting that Greece could pay, and would lose money if there were a debt writedown). In 2015, Christine Lagarde also backed the U.S.-European Central Bank hard line, against staff protests.[10]

IMF executive board member Otaviano Canuto, representing Brazil, noted that the logic that “conditions on IMF lending to a country that fell behind on payments [was to] make sure it kept negotiating in good faith to reach agreement with creditors.”[11] Dropping this condition, he said, would open the door for other countries to insist on a similar waiver and avoid making serious and sincere efforts to reach payment agreement with creditor governments.

A more binding IMF rule is that it cannot lend to countries at war or use IMF credit to engage in warfare. Article I of its 1944-45 founding charter ban the fund from lending to a member state engaged in civil war or at war with another member state, or for military purposes in general. But when IMF head Lagarde made the last IMF loan to Ukraine, in spring 2015, she made a token gesture of stating that she hoped there would be peace. But President Porochenko immediately announced that he would step up the civil war with the Russian-speaking population in the eastern Donbass region.

The problem is that the Donbass is where most Ukrainian exports were made, mainly to Russia. That market is being lost by the junta’s belligerence toward Russia. This should have blocked Ukraine from receiving IMF aid. Withholding IMF credit could have been a lever to force peace and adherence to the Minsk agreements, but U.S. diplomatic pressure led that opportunity to be rejected.

The most important IMF condition being violated is that continued warfare with the East prevents a realistic prospect of Ukraine paying back new loans. Aslund himself points to the internal contradictions at work: Ukraine has achieved budget balance because the inflation and steep currency depreciation has drastically eroded its pension costs. The resulting lower value of pension benefits has led to growing opposition to Ukraine’s post-Maidan junta. “Leading representatives from President Petro Poroshenko’s Bloc are insisting on massive tax cuts, but no more expenditure cuts; that would cause a vast budget deficit that the IMF assesses at 9-10 percent of GDP, that could not possibly be financed.”[12] So how can the IMF’s austerity budget be followed without a political backlash?

The IMF thus is breaking four rules: Not lending to a country that has no visible means to pay back the loan breaks the “No More Argentinas” rule adopted after the IMF’s disastrous 2001 loan. Not lending to countries that refuse in good faith to negotiate with their official creditors goes against the IMF’s role as the major tool of the global creditors’ cartel. And the IMF is now lending to a borrower at war, indeed one that is destroying its export capacity and hence its balance-of-payments ability to pay back the loan. Finally, the IMF is lending to a country that has little likelihood of refuse carrying out the IMF’s notorious austerity “conditionalities” on its population – without putting down democratic opposition in a totalitarian manner. Instead of being treated as an outcast from the international financial system, Ukraine is being welcomed and financed.

The upshot – and new basic guideline for IMF lending – is to create a new Iron Curtain splitting the world into pro-U.S. economies going neoliberal, and all other economies, including those seeking to maintain public investment in infrastructure, progressive taxation and what used to be viewed as progressive capitalism. Russia and China may lend as much as they want to other governments, but there is no international vehicle to help secure their ability to be paid back under what until now has passed for international law. Having refused to roll back its own or ECB financial claims on Greece, the IMF is quite willing to see repudiation of official debts owed to Russia, China or other countries not on the list approved by the U.S. neocons who wield veto power in the IMF, World Bank and similar global economic institutions now drawn into the U.S. orbit. Changing its rules to clear the path for the IMF to make loans to Ukraine and other governments in default of debts owed to official lenders is rightly seen as an escalation of America’s New Cold War against Russia and also its anti-China strategy.

Timing is everything in such ploys. Georgetown University Law professor and Treasury consultant Anna Gelpern warned that before the “IMF staff and executive board [had] enough time to change the policy on arrears to official creditors,” Russia might use “its notorious debt/GDP clause to accelerate the bonds at any time before December, or simply gum up the process of reforming the IMF’s arrears policy.”[13] According to this clause, if Ukraine’s foreign debt rose above 60 percent of GDP, Russia’s government would have the right to demand immediate payment. But no doubt anticipating the bitter fight to come over its attempts to collect on its loan, President Putin patiently refrained from exercising this option. He is playing the long game, bending over backward to accommodate Ukraine rather than behaving “odiously.”

A more pressing reason deterring the United States from pressing earlier to change IMF rules was that a waiver for Ukraine would have opened the legal floodgates for Greece to ask for a similar waiver on having to pay the “troika” – the European Central Bank (ECB), EU commission and the IMF itself – for the post-2010 loans that have pushed it into a worse depression than the 1930s. “Imagine the Greek government had insisted that EU institutions accept the same haircut as the country’s private creditors,” Russian finance minister Anton Siluanov asked. “The reaction in European capitals would have been frosty. Yet this is the position now taken by Kiev with respect to Ukraine’s $3 billion eurobond held by Russia.”[14]

Only after Greece capitulated to eurozone austerity was the path clear for U.S. officials to change the IMF rules in their fight to isolate Russia. But their tactical victory has come at the cost of changing the IMF’s rules and those of the global financial system irreversibly. Other countries henceforth may reject conditionalities, as Ukraine has done, and ask for write-downs on foreign official debts.

That was the great fear of neoliberal U.S. and Eurozone strategists last summer, after all. The reason for smashing Greece’s economy was to deter Podemos in Spain and similar movements in Italy and Portugal from pursuing national prosperity instead of eurozone austerity. Opening the door to such resistance by Ukraine is the blowback of America’s tactic to make a short-term financial hit on Russia while its balance of payments is down as a result of collapsing oil and gas prices.

The consequences go far beyond just the IMF. The fabric of international law itself is being torn apart. Every action has a reaction in the Newtonian world of geopolitics. It may not be a bad thing, to be sure, for the post-1945 global order to be broken apart by U.S. tactics against Russia, if that is the catalyst driving other countries to defend their own economies in the legal and political spheres. It has been U.S. neoliberals themselves who have catalyzed the emerging independent Eurasian bloc.

Countering Russia’s ability to collect in Britain’s law courts

Over the past year the U.S. Treasury and State Departments have discussed ploys to block Russia from collecting under British law, where its loans to Ukraine are registered. Reviewing the repertory of legal excuses Ukraine might use to avoid paying Russia, Prof. Gelpern noted that it might declare the debt “odious,” made under duress or corruptly. In a paper for the Peterson Institute of International Economics (the banking lobby in Washington) she suggested that Britain should deny Russia the use of its courts as an additional sanction reinforcing the financial, energy, and trade sanctions to those passed against Russia after Crimea voted to join it as protection against the ethnic cleansing from the Right Sector, Azov Battalion and other paramilitary groups descending on the region.[15]

A kindred ploy might be for Ukraine to countersue Russia for reparations for “invading” it, for saving Crimea and the Donbass region from the Right Sector’s attempt to take over the country. Such a ploy would seem to have little chance of success in international courts (without showing them to be simply arms of NATO New Cold War politics), but it might delay Russia’ ability to collect by tying the loan up in a long nuisance lawsuit.

To claim that Ukraine’s debt to Russia was “odious” or otherwise illegitimate, “President Petro Poroshenko said the money was intended to ensure Yanukovych’s loyalty to Moscow, and called the payment a ‘bribe,’ according to an interview with Bloomberg in June this year.”[16] The legal and moral problem with such arguments is that they would apply equally to IMF and US loans. Claiming that Russia’s loan is “odious” is that this would open the floodgates for other countries to repudiate debts taken on by dictatorships supported by IMF and U.S. lenders, headed by the many dictatorships supported by U.S. diplomacy.

The blowback from the U.S. multi-front attempt to nullify Ukraine’s debt may be used to annul or at least write down the destructive IMF loans made on the condition that borrowers accept privatizations favoring U.S., German and other NATO-country investors, undertake austerity programs, and buy weapons systems such as the German submarines that Greece borrowed to pay for. As Foreign Minister Sergei Lavrov noted: “This reform, which they are now trying to implement, designed to suit Ukraine only, could plant a time bomb under all other IMF programs.” It certainly showed the extent to which the IMF is subordinate to U.S. aggressive New Cold Warriors: “Essentially, this reform boils down to the following: since Ukraine is politically important – and it is only important because it is opposed to Russia – the IMF is ready to do for Ukraine everything it has not done for anyone else, and the situation that should 100 percent mean a default will be seen as a situation enabling the IMF to finance Ukraine.”[17]

Andrei Klimov, deputy chairman of the Committee for International Affairs at the Federation Council (the upper house of Russia’s parliament) accused the United States of playing “the role of the main violin in the IMF while the role of the second violin is played by the European Union. These are two basic sponsors of the Maidan – the symbol of a coup d’état in Ukraine in 2014.”[18]

Putin’s counter-strategy and the blowback on U.S.-European and global relations

As noted above, having anticipated that Ukraine would seek reasons to not pay the Russian loan, President Putin carefully refrained from exercising Russia’s right to demand immediate payment when Ukraine’s foreign debt rose above 60 percent of GDP. In November he offered to defer payment if the United States, Europe and international banks underwrote the obligation. Indeed, he even “proposed better conditions for this restructuring than those the International Monetary Fund requested of us.” He offered “to accept a deeper restructuring with no payment this year – a payment of $1 billion next year, $1 billion in 2017, and $1 billion in 2018.” If the IMF, the United States and European Union “are sure that Ukraine’s solvency will grow,” then they should “see no risk in providing guarantees for this credit.” Accordingly, he concluded “We have asked for such guarantees either from the United States government, the European Union, or one of the big international financial institutions.” [19]

The implication, Putin pointed out, was that “If they cannot provide guarantees, this means that they do not believe in the Ukrainian economy’s future.” One professor pointed out that this proposal was in line with the fact that, “Ukraine has already received a sovereign loan guarantee from the United States for a previous bond issue.” Why couldn’t the United States, Eurozone or leading commercial banks provide a similar guarantee of Ukraine’s debt to Russia – or better yet, simply lend it the money to turn it into a loan to the IMF or US lenders?[20]

But the IMF, European Union and the United States refused to back up their happy (but nonsensical) forecasts of Ukrainian solvency with actual guarantees. Foreign Minister Lavrov made clear just what that rejection meant: “By having refused to guarantee Ukraine’s debt as part of Russia’s proposal to restructure it, the United States effectively admitted the absence of prospects of restoring its solvency. … By officially rejecting the proposed scheme, the United States thereby subscribed to not seeing any prospects of Ukraine restoring its solvency.”[21]

In an even more exasperated tone, Prime Minister Dmitri Medvedev explained to Russia’s television audience: “I have a feeling that they won’t give us the money back because they are crooks. They refuse to return our money and our Western partners not only refuse to help, but they also make it difficult for us.”[22] Adding that “the international financial system is unjustly structured,” he promised to “go to court. We’ll push for default on the loan and we’ll push for default on all Ukrainian debts.”

The basis for Russia’s legal claim, he explained was that the loan was a request from the Ukrainian Government to the Russian Government. If two governments reach an agreement this is obviously a sovereign loan…. Surprisingly, however, international financial organisations started saying that this is not exactly a sovereign loan. This is utter bull. Evidently, it’s just an absolutely brazen, cynical lie. … This seriously erodes trust in IMF decisions. I believe that now there will be a lot of pleas from different borrower states to the IMF to grant them the same terms as Ukraine. How will the IMF possibly refuse them?

And there the matter stands. As President Putin remarked regarding America’s support of Al Qaeda, Al Nusra and other ISIS allies in Syria, “Do you have any idea of what you have done?”

The blowback

Few have calculated the degree to which America’s New Cold War with Russia is creating a reaction that is tearing up the world’s linkages put in place since World War II. Beyond pulling the IMF and World Bank tightly into U.S. unilateralist geopolitics, how long will Western Europe be willing to forego its trade and investment interest with Russia? Germany, Italy and France already are feeling the strains. If and when a break comes, it will not be marginal but a seismic geopolitical shift.

The oil and pipeline war designed to bypass Russian energy exports has engulfed the Near East in anarchy for over a decade. It is flooding Europe with refugees, and also spreading terrorism to America. In the Republican presidential debate on December 15, 2015, the leading issue was safety from Islamic jihadists. Yet no candidate thought to explain the source of this terrorism in America’s alliance with Wahabist Saudi Arabia and Qatar, and hence with Al Qaeda and ISIS/Daish as a means of destabilizing secular regimes seeking independence from U.S. control.

As its allies in this New Cold War, the United States has chosen fundamentalist jihadist religion against secular regimes in Libya, Iraq, Syria, and earlier in Afghanistan and Turkey. Going back to the original sin of CIA hubris – overthrowing the secular Iranian Prime Minister leader Mohammad Mosaddegh in 1953 – American foreign policy has been based on the assumption that secular regimes tend to be nationalist and resist privatization and neoliberal austerity.

Based on this fatal long-term assumption, U.S. Cold Warriors have aligned themselves not only against secular regimes, but against democratic regimes where these seek to promote their own prosperity and economic independence, and to resist neoliberalism in favor of maintaining their traditional mixed public/private economy.

This is the back story of the U.S. fight to control the rest of the world. Tearing apart the IMF’s rules is only the most recent chapter. The broad drive against Russia, China and their prospective Eurasian allies has deteriorated into tactics without a realistic understanding of how they are bringing about precisely the kind of world they are seeking to prevent – a multilateral world.

Arena by arena, the core values of what used to be American and European social democratic ideology are being uprooted. The Enlightenment’s ideals of secular democracy and the rule of international law applied equally to all nations, classical free market theory (of markets free from unearned income and rent extraction by special vested interests), and public investment in infrastructure to hold down the cost of living and doing business are to be sacrificed to a militant U.S. unilateralism as “the indispensible nation.” Standing above the rule of law and national interests, American neocons proclaim that their nation’s destiny is to wage war to prevent foreign secular democracy from acting in ways other than submission to U.S. diplomacy. In practice, this means favoring special U.S. financial and corporate interests that control American foreign policy.

This is not how the Enlightenment was supposed to turn out. Classical industrial capitalism a century ago was expected to evolve into an economy of abundance. Instead, we have Pentagon capitalism, finance capitalism deteriorating into a polarized rentier economy, and old-fashioned imperialism.

The Dollar Bloc’s financial Iron Curtain

By treating Ukraine’s nullification of its official debt to Russia’s Sovereign Wealth Fund as the new norm, the IMF has blessed its default on its bond payment to Russia. President Putin and foreign minister Lavrov have said that they will sue in British courts. But does any court exist in the West not under the thumb of U.S. veto?

What are China and Russia to do, faced with the IMF serving as a kangaroo court whose judgments are subject to U.S. veto power? To protect their autonomy and self-determination, they have created alternatives to the IMF and World Bank, NATO and behind it, the dollar standard.

America’s recent New Cold War maneuvering has shown that the two Bretton Woods institutions are unreformable. It is easier to create new institutions such as the A.I.I.B. than to retrofit old and ill-designed ones burdened with the legacy of their vested founding interests. It is easier to expand the Shanghai Cooperation Organization than to surrender to threats from NATO.

U.S. geostrategists seem to have imagined that if they exclude Russia, China and other SCO and Eurasian countries from the U.S.-based financial and trade system, these countries will find themselves in the same economic box as Cuba, Iran and other countries have been isolated by sanctions. The aim is to make countries choose between impoverishment from such exclusion, or acquiescing in U.S. neoliberal drives to financialize their economies and impose austerity on their government sector and labor.

What is lacking from such calculations is the idea of critical mass. The United States may use the IMF and World Bank as levers to exclude countries not in the U.S. orbit from participating in the global trade and financial system, and it may arm-twist Europe to impose trade and financial sanctions on Russia. But this action produces an equal and opposite reaction. That is the eternal Newtonian law of geopolitics. The indicated countermeasure is simply for other countries to create their own international financial organization as an alternative to the IMF, their own “aid” lending institution to juxtapose to the U.S.-centered World Bank.

All this requires an international court to handle disputes that is free from U.S. arm-twisting to turn international law into a kangaroo court following the dictates of Washington. The Eurasian Economic Union now has its own court to adjudicate disputes. It may provide an alternative Judge Griesa‘s New York federal court ruling in favor of vulture funds derailing Argentina’s debt negotiations and excluding it from foreign financial markets. If the London Court of International Arbitration (under whose rules Russia’s bonds issued to Ukraine are registered) permits frivolous legal claims (called barratry in English) such as President Poroshenko has threatened in Ukrainian Parliament, it too will become a victim of geopolitical obsolescence.

The more nakedly self-serving and geopolitical U.S. policy is – in backing radical Islamic fundamentalist outgrowths of Al Qaeda throughout the Near East, right-wing nationalist governments in Ukraine and the Baltics – the greater the catalytic pressure is growing for the Shanghai Cooperation Organization, AIIB and related Eurasian institutions to break free of the post-1945 Bretton Woods system run by the U.S. State, Defense and Treasury Departments and NATO superstructure.

The question now is whether Russia and China can hold onto the BRICS and India. So as Paul Craig Roberts recently summarized my ideas along these lines, we are back with George Orwell’s 1984 global fracture between Oceanea (the United States, Britain and its northern European NATO allies) vs. Eurasia


“...while the IMF certainly failed the people of Asia, it did not fail Wall Street - far from it. The hot money may have been spooked by the IMF's drastic measures, but the large investment houses and multinational firms were emboldened...These fun-seeking firms understood that as a result of the IMF's "adjustments," pretty much everything in Asia was now up for sale - and the more the market panicked, the more desperate Asian companies would be to sell, pushing their prices through the floor.”


― Naomi Klein, The Shock Doctrine: The Rise of Disaster Capitalism
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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby Wombaticus Rex » Mon Jan 25, 2016 7:58 pm

The IMF is going to be making a lot of overtly political moves in the near future because of this debt.

I co-sign with OMH the notion that IMF is a "Zionist" institution is pretty absurd. Not much love for Israel in those halls.
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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby seemslikeadream » Mon Jan 25, 2016 8:01 pm

Naomi Klein: Successfully Tilting At Windmills
ASIDE ~ MARCH 21, 2013 ~ HAMMERING SHIELD


Of all the people Klein could have chosen as her story’s archfiend in The Shock Doctrine, she settled upon Milton Friedman, the famous conservative economist. She paints Friedman as the Doctor Moriarty of economic crimes against humanity, his tentacles stretching –dripping acidic ooze– into the palaces of tyrants all across the globe. It is Friedman whom Klein credits with providing the original outline for the evil plan which would eventually become (dun-dun-dunnn!)… “Disaster Capitalism.”

Klein pulls out the following famous quotation from Friedman: “Only a crisis– actual or perceived– produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around.”

Friedman was of course speaking of the observed historical fact that people become more open to economic innovations when they are out of work and prices are soaring and the economy is sinking down the drain faster than a dropped ring. But Klein goes farther than this; she implies that what Friedman actually had in mind was a more widespread and sinister agenda, one in which catastrophic events could be harnessed—perhaps even purposefully created or encouraged— in order to make the sweeping changes to a society that a determined minority (a determined, conservative, business minority, to be precise) has long lay coiled to make.

Klein describes several situations in Latin America in the 20th century in which the U.S. would back government coups, then—following Friedman’s advice—use each created crisis to push the countries toward the economic reforms (and loans, man, loans) that would benefit certain U.S. financial institutions and other companies.

When these countries and others in a similar plight later needed more loans in the 1980s, the International Monetary Fund (IMF) began using the financial crises of the countries as leverage.

Says Klein: “Officials with the World Bank and the IMF had always made policy recommendations when they handed out loans, but in the early eighties, emboldened by the desperation of developing countries, those recommendations morphed into radical free-market demands. When crisis-struck countries came to the IMF seeking debt relief and emergency loans, the Fund responded with sweeping shock therapy programs.”

These IMF dictates were euphemistically called “structural adjustments.” Klein says that the IMF began its hardline stance, demanding radical reforms before making loans, in 1983, and then “for the next two decades, every country that came to the fund for a major loan was informed that it needed to revamp its economy from top to bottom.”

Klein quotes former IMF senior economist Davison Budhoo as saying that, “everything we did from 1983 onward was based on our new sense of mission to have the south privatized or die; towards this end we ignominiously created economic bedlam in Latin America and Africa in 1983-88.”

But twisting Latin America’s already broken arm was just the beginning. Klein believes that the break-up of the Soviet Union in the early 1990s removed much of the “capacity for resistance” of the Third World against Western economic reforms. Without the threat of Russia, says Klein, “capitalism was suddenly free to lapse into its most savage form.” Using the extended metaphor Klein employs throughout her book, she compares the weakened state of the Third World to the weakened “capacity of resistance” of torture victims who have been worn down by sensory and sleep deprivation techniques: in both cases, the ability to maintain barriers against a determined and dominating force collapses.

After the fall of the Soviet empire, the opportunity for an uncontested Western economic victory was not long in coming. When the Asian Financial Crisis hit in the late 90s, the IMF, says Klein, used the “extraordinary leverage” granted by the crisis to extract “painful austerity measures.” A few examples: before offering assistance to the affected countries, the IMF insisted that each country: 1) strip trade and investment protections, 2) discontinue activist state intervention in the economy, and 3) make deep cuts in governmental expenditures.

What surprises Klein is: how brief the reign of all-powerful capital. Says Klein: “In retrospect, it is striking that capitalism’s monopoly period, when it no longer had to deal with competing ideas or counter-powers, was extremely brief– only eight years, from the collapse of the Soviet Union in 1991 to the collapse of the WTO talks in 1999.” I personally think she may be overstating the importance of that year’s Battle In Seattle; I believe the WTO is more powerful today than ever, but it learned in Seattle that it had become overexposed, thus giving the unsatisfied an open target. So the WTO went underground, well, as much as a worldwide uber-power can go underground. On the other hand, there was definitely a turn made that year along the road to the New World Order. Sometimes, when enough crazy kids share the same vision, tilting at windmills can accomplish more than a few broken lances.

The IMF, too, is still powerful, but it has dialed down the brute force and rhetorical volume after the abysmal record of economic performance in the wake of IMF-dictated reforms in Asia, Africa, and Latin America. Klein states that the IMF’s own internal auditor, the Independent Evaluation Office, was reporting by 2003 that the IMF’s “structural adjustment” demands of Asia during the financial crisis were “ill-advised” and “broader than seemed necessary” and “not critical to resolving the crisis.” The auditor also counseled that a “crisis should not be used as an opportunity to seek a long agenda of reforms just because the leverage is high.”
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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby seemslikeadream » Mon Jan 25, 2016 8:12 pm

THE CONSPIRACY THEORY

A moment's reflection on these events leads us to a crossroads of conscience. We must choose between two paths. Either we conclude that Americans have lost control over their government, or we reject this information as a mere distortion of history. In the first case, we become advocates of the conspiratorial view of history. In the latter, we endorse the accidental view. It is a difficult choice because we have been conditioned to laugh at conspiracy theories, and few people will risk public ridicule by advocating them. On the other hand, to endorse the accidental view is absurd. Almost all of history is an unbroken trail of one conspiracy after another. Conspiracies are the norm, not the exception.

The industrialized nations of the world are being bled to death in a global transfer of their wealth to the less developed countries. Furthermore, it is not being done to them by their enemies. It is being done by their own leaders. The process is well coordinated across national lines and perfectly dovetails with the actions of other leaders who are doing the same thing in their respective countries, and these leaders regularly meet together to better coordinate their activities. This could not happen without planning.

A spokesman from the IMF would answer, yes, there is a plan, and it is to aid the less developed countries. But, after forty years and hundreds of billions of dollars, they have totally failed to accomplish that goal. Would intelligent people believe that pursuing the same plan will produce different results in the future? Then why do they follow a plan that cannot work? The answer is they are not following that plan. They are following a different one: one that has been very successful from their point of view. Otherwise, we must conclude that the leaders of the industrialized nations are, to a man, just plain stupid. We do not believe it.




BUILDING THE NEW WORLD ORDER WITH IMF AND WORLD BANK AND TAXPAYERS PAY THE BILL
Dr PeterPalms's pictureOct. 9, 2015 10:50 am
By Dr PeterPalms


The Game-Called-Bailout reexamined and shown to be far more than merely a means of getting taxpayers to foot the cost of bad loans MADE DOMESTICALLY; the final play revealed as the merger of all nations into world government; the unfolding of that strategy as applied to Panama, Mexico, Brazil, Argentina, China, Eastern Europe, and Russia.

Let us return now to the game called bailout. Everything in the previous chapter has been merely background information to understand the game as it is played in the international arena. Here, finally, are the rules:

Commercial banks in the industrialized nations, backed by their respective central banks, create money out of nothing and lend it to the governments of underdeveloped nations. They know that these are risky loans, so they charge an interest rate that is high enough to compensate. It is more than what they expect to receive in the long run.
When the underdeveloped nations cannot pay the interest on their loans, the IMF and World Bank enter the game as both players and referees. Using additional money created out of nothing by the central b&lks of their member nations, they advance "development" loans to the governments which now have enough to pay the interest on the original loans with enough left over for their own political purposes.
The recipient country quickly exhausts the new supply of money, and the play returns to point number two. This time, however, the new loans are guaranteed by the World Bank and the central banks of the industrialized nations. Now that the risk of default is removed, the commercial banks agree to reduce the interest to the point anticipated at the beginning. The debtor governments resume payments
4. The final play is - well, in this version of the game there appears to be no final play, because the plan is to keep the game going forever. To make that possible, certain things must happen that are very final, indeed. They include the conversion of the IMF into a world central bank as Keynes had planned, which then issues an international fiat money. Once that "Bank of Issue" is in place, the IMF can collect unlimited resources from the citizens of the world through the hidden tax called inflation. The money stream then can be sustained indefinitely-with or without the approval of the separate nations-because they will no longer have money of their own.

Since this game results in a hemorrhage of wealth from the industrialized nations, their economies are doomed to be brought down further and further, a process that has been going on since Bretton Woods. The result will be a severe lowering of their living standards and their demise as independent nations. The hidden reality behind so-called development loans is that America and other industrialized nations are being subverted by that process. That is not an accident; it is the essence of the plan. A strong nation is not likely to surrender its sovereignty. Americans would not agree to turn over their monetary system, their military, or their courts to a world body made up of governments which have been despotic to their own people, especially since most of those regimes have already revealed anti-American hostility. But if Americans can be brought to the point where they are suffering from a collapse of their economy and from a breakdown in civil order, things will be different. When they stand in bread lines and face anarchy in their streets, they will be more willing to give up sovereignty in return for "assistance" from the World Bank and the UN "peacekeeping" forces. This will become even more acceptable if a structured demise of Communism can be arranged ahead of time to make it appear that the world's major political systems have converged into the common denominator of "social democracy."

THE FINAL PLAY

The underdeveloped nations, on the other hand, are not being raised up. What is happening to them is that their political leaders are becoming addicted to the IMF cash flow and will be unable to break the habit. These countries are being conquered by money instead of arms. Soon they will no longer be truly independent nations. They are becoming mere components in the system of world socialism planned by Harry Dexter White and John Maynard Keynes. Their leaders are being groomed to become potentates in a new, high-tech feudalism, paying homage to their Lords in New York. And they are eager to do it in return for privilege and power within the "New World Order." That is the final play.

The essence of socialism is redistribution of the wealth. The goal is equality, and that means taking from the rich and giving to the poor. At least that's the theory. Unfortunately, the poor are never benefited by this maneuver. They either do not get the money in the first place-too much is siphoned off by the bureaucracies which administer the programs-or, if they do get any of it, they don't know what to do with it. They merely spend it until it is gone, and then no one has any money- except, of course, those who administer the government programs. Nevertheless, politicians know that promises to redistribute the wealth are popular among two groups: the voters who naively believe it will help the poor, and the socialist managers who see it as job security. Supported by these two voting blocs, election to office is assured.

One of the early American advocates of socialism on a global scale-including the draining of wealth away from the "rich" United States-was John F. Kennedy. He undoubtedly learned the concept while attending the Fabian London School of Economics in 1935-36 just prior to his father's appointment as Ambassador to England. When JFK became President, his political views continued to carry the imprint of that training. In September of 1963, he addressed the finance ministers and central-bank governors from 102 nations at the annual meeting of the IMF/World Bank. He explained the concept of world socialism in glowing terms:

Twenty years ago, when the architects of these institutions met to design an international banking structure, the economic life of the world was polarized in overwhelming, and even alarming, measure on the United States.... Sixty per cent of the gold reserves of the world were here in the United States.... There was a need for redistribution of the financial resources of the world.... And there was an equal need to organize a flow of capital to the impoverished countries of the world. All this has come about. It did not come about by chance but by conscious and deliberate and responsible planning

CFR SETS STRATEGY

The brain trust for implementing the Fabian plan in America is called the Council on Foreign Relations (NYSE:CFR). We shall look at it closely in future chapters, but it is important to know at this point that almost all of America's leadership has come from this small group. That includes our presidents and their advisers, cabinet members, ambassadors, board members of the Federal Reserve System, directors of the largest banks and investment houses, presidents of universities, and heads of metropolitan newspapers, news services, and TV networks. 2 It is not an exaggeration to describe this group as the hidden government of the United States.

CFR members have never been shy about calling for the weakening of America as a necessary step toward the greater good of building world government. One of the CFR founders was John Foster Dulles, who later was appointed Secretary-of-State by CFR member Dwight Eisenhower. In 1939, Dulles said:

Some dilution or leveling off of the sovereignty system as it prevails in the world today must take place ... to the immediate disadvantage of those nations which now possess the preponderance of power.... The establishment of a common money ... would deprive our government of exclusive control over a national money.... The United States must be prepared to make sacrifices afterward in setting up a world politico-economic order which would level off inequalities of economic opportunity with respect to nations."

CFR member Zbigniew Brzezinski was the National Security Adviser to CFR member Jimmy Carter. In 1970, Brzezinski wrote:

... some international cooperation has already been achieved, but further progress will require greater American sacrifices. More intensive efforts to shape a new world monetary structure will have to be undertaken, with some consequent risk to the present relatively favorable American position. 4

"Text of Kennedy Speech to World Monetary Parley," New York Times, October 1, 1963, p. 16.

For an in-depth analysis of the CFR, including a comprehensive list of members, see James Perloff, Shadows of Power (Appleton, Wisconsin: Western Islands, 1988).

"Dulles Outlines World Peace Plan," New York Times, October 28, 1939.

Zbigniew Brzezinski, Between Two Ages: America's Role in the Technetronic Era (Westport, Connecticut: Greenwood Press, 1970), p. 300.

At the Spring, 1983, Economic Summit in Williamsburg, Virginia, President Ronald Reagan declared:

National economies need monetary coordination mechanisms, and that is why an integrated world economy needs a common monetary standard.... But, no national currency will do-only a world currency will work.

The CFR strategy for convergence of the world's monetary systems was spelled out by Harvard Professor Richard N. Cooper, a CFR member who had been the Under Secretary of State for

Economic Affairs in the Carter Administration:

I suggest a radical alternative scheme for the next century: the creation of a common currency for all of the industrial democracies, with a common monetary policy and a joint Bank of Issue to determine that monetary policy.... How can independent states accomplish that? They need to turn over the determination of monetary policy to a supranational body. [Emphasis in original]...

It is highly doubtful whether the American public, to take just one example, could ever accept that countries with oppressive autocratic regimes should vote on the monetary policy that would affect monetary conditions in the United States.... For such a bold step to work at all, it presupposes a certain convergence of political values.... 1

Phrases such as, monetary coordination mechanisms, modern world economic order, convergence of political values, or new world order are not very specific. To the average person, they sound pleasant and harmless. Yet, to the insiders of the dub, they are code phrases which have a specific meaning: the termination of national sovereignty and the creation of world government. CFR member, Richard Gardner-another adviser to President Carter-explains the meaning of these phrases and also calls for the Fabian strategy of deception and gradualism.

In short, the "house of world order" will have to be built from the bottom up.... An end run around national sovereignty, eroding it piece by piece will accomplish much more than the old-fashioned frontal assault.

As for the programmed decline of the American economy, CFR member Samuel Huntington argues that, if higher education is

"A Monetary System for the Future," by Richard N. Cooper, Foreign Affairs, Fall, 1984, pp. 166, 177, 184.

"The Hard Road to World Order," by Richard Gardner, Foreign Affairs, April, 1974, p. 558.

considered to be desirable for the general population, "a program is then necessary to lower the job expectations of those who receive a college education." 1 CFR member Paul Volcker, former Chairman of the Federal Reserve, says: "The standard of living of the average American has to decline.... I don't think you can escape that."

By 1993, Volcker had become the U.S. Chairman of the Trilateral Commission. The TLC was created by David Rockefeller to coordinate the building of The New World Order in accordance with the Gardner strategy: "An end run around national sovereignty, eroding it piece by piece." The objective is to draw the United States, Mexico, Canada, Japan, and Western Europe into political and economic union. Under slogans such as free trade and environmental protection, each nation is to surrender its sovereignty "piece by piece" until a full-blown regional government emerges from the process. The new government will control each nation's working conditions, wages, and taxes. Once that has happened, it will be a relatively simple step to merge the regionals into global government. That is the reality behind the so-called trade treaties within the European Union (NYSEARCA:EU), the North American Free Trade Agreement (NAFTA), the Asia-Pacific Economic Cooperation agreement (APEC), and the General Agreement on Tariffs and Trade (OTC:GATT). They have little to do with trade. In the Trilateral Commission's annual report for 1993, Volcker explains:

Interdependence is driving our countries toward convergence in areas once considered fully within the domestic purview. Some of these areas involve government regulatory policy, such as environmental standards, the fair treatment of workers, and taxation. 3

In 1992, the Trilateral Commission released a report coauthored by Toyoo Gyohten, Chairman of the Board of the Bank of Tokyo and formerly Japan's Minister of Finance for International Affairs. Gyohten had been a Fulbright Scholar who was trained at Princeton and taught at Harvard Business School. He also had been in charge of the Japan Desk of the International Monetary Fund. In short, he represents the Japanese monetary interests within The New World Order.

Michael Crozier, Samuel P. Huntington, and Joji Watanuki, The Crisis of Democracy (New York: New York University Press, 1975), pp. 183-84.

"Volcker Asserts U.S. Must Trim Living Standard," New York Times, October 18, 1979, p. 1.

Washington 1993: The Annual Meeting of the Trilateral Commission, Trialogue 46 (New York: Trilateral Commission, 1993), p. 77.

New World Order. In this report, Gyohten explains that the real importance of "trade" agreements is not trade but the building of global government:

"Regional trade arrangements should not be regarded as ends in themselves, but as supplements to global liberalization.... Regional arrangements provide models or building blocks for increased or strengthened globalism.... Western Europe [the EU] represents regionalism in its truest form.... The steps toward deepening [increasing the number of agreements] are dramatic and designed to be irreversible.... A common currency.... central bank.... court and parliament-will have expanded powers.... After the Maastricht summit [the Dutch town where the meeting was held], an Economist editorial pronounced the verdict: "Call it what you will: by any other name it is federal government."... In sum, the regional integration process in Europe can be seen as akin to an exercise in nation-building.1

Applying this same perspective to the NAFTA treaty, former Secretary-of-State, Henry Kissinger (CFR), said it "is not a conventional trade agreement but the architecture of a new international system.... the vital first step for a new kind of community of nations." The newspaper article that contained this statement was appropriately entitled: "With NAFTA, U.S. Finally Creates a New World Order."2 David Rockefeller (CFR) was even more emphatic. He said that it would be "criminal" not to pass the treaty because: "Everything is in place-after 500 years-to build a true 'new world' in the Western Hemisphere." 3

By early 1994, the drift toward the New World Order had become a rush. On April 15, the government of Morocco placed a full-page ad in the New York Times celebrating the creation of the World Trade Organization which was formed by the signing of the General Agreement on Tariffs and Trade (OTC:GATT) which took place in the Moroccan city of Marrakech. While Americans were still being told that GATT was merely a "trade" agreement, the internationalists were celebrating a much larger concept. The ad spelled it out in unmistakable terms:

Toyoo Gyohten and Charles E. Morrison, Regionalism in A Converging World (New York: Trilateral Commission, 1992), pp. 4, 7-9,11.

"With NAFTA, U.S. Finally Creates a New World Order," by Henry Kissinger, Los Angeles Times, July 18, 1993, pp. M-2, 6.

"A Hemisphere in the Balance," by David Rockefeller, Wall Street Journal, October 1, 1993, p. A-10.

1944, Bretton Woods: The IMF and the World Bank

1945, San Francisco: The United Nations

1994, Marrakech: The World Trade Organization

History knows where it is going.... The World Trade Organization,
the third pillar of the New World Order, along with the United

Nations and the International Monetary Fund.

A RARE GLIMPSE INTO THE INNER WORKINGS

So much for the final play. Let us return, now, to the game called bailout as it is actually played today on the international scene. Let us begin with a glimpse into the inner workings of the Presidential Cabinet. James Watt was the Secretary of the Interior in the Reagan Administration. In his memoirs, he described an incident at a Cabinet meeting in the spring of 1982. The first items on the agenda were reports by Treasury Secretary Donald Regan and Budget Director David Stockman concerning problems the less-developed countries were having with their bank loans. Watt said:

'Secretary Regan was explaining the inability of those destitute countries to pay even the interest on the loans that individual banks such as Bank of America, Chase Manhattan and Citibank had made. The President was being told what actions the United States "must" take to salvage the situation.'

After the Regan and Stockman briefings, there were several minutes of discussion before I asked, "Does anyone believe that these less developed countries will ever be able to pay back the principal on these loans?" When no one spoke up, I asked, "If the loans are never going to be repaid, why should we again bail out the countries and arrange payment for their interest?"

The answer came from several voices at once, "If we don't arrange for their interest payments, the loans will go into default, and it could put our American banks in jeopardy." Would the customers lose their money? No, came the answer, but the stockholders might lose dividends.

In amazement, I leaned back in my large, leather chair, only two seats from the President of the United States. I realized that nothing in the world could keep these high government officials from scrambling to protect and bail out a few very large and sorely troubled American banks.2

New York Times, April 15, 1994, p. A9.

James G. Watt, The Courage of A Conservative (New York: Simon and Schuster, 1985), pp. 124-25.

PANAMA

The first major score in the game had been made under the Carter Administration when Panama fell in arrears on the payment of its loans. A consortium of banks including Chase Manhattan, First National of Chicago, and Citibank brought pressure to bear on Washington to give the Canal to the Panamanian government so it could use the revenue to pay interest on its loans. Although there was massive opposition to this move among the American people, the Senate yielded to insider pressure and passed the give-away treaty. The Panamanian government inherited $120 million in annual revenue, and the interest payments to the banks were restored. As Congressman Philip Crane observed:

At the time of the Torrijos-backed coup in 1968, Panama's total official overseas debt stood at a manageable and, by world standards, modest $167 million. Under Torrijos, indebtedness has skyrocketed nearly one thousand percent to a massive $1.5 billion. Debt-service ratio now consumes an estimated 39 percent of the entire Panamanian budget.... What it appears we really have here is not just aid to a tinhorn dictator in the form of new subsidies and canal revenues the treaties would give to the Torrijos regime, but a bailout of a number of banks which should have known better than to invest in Panama and, in any event, should not escape responsibility for having done so. 1

The Panama bailout was a unique play. In no other country did we have an income-producing property to give away, so from that point forward the bailout would have to be done with mere money. To pave the way for that, Congress passed the Monetary Control Act of 1980 which authorized the Federal Reserve to "monetize foreign debt." That is banker language meaning that the Fed was now authorized to create money out of nothing for the purpose of lending to foreign governments. It classifies those loans as "assets" and then uses them as collateral for the creation of even more money here in the United States. That was truly a revolutionary expansion of the Fed's power to inflate. Until then, it was permitted to make money only for the American government. Now, it was able to do it for any government. Since then it has been functioning as a central bank for the entire world.

MEXICO

By 1982, almost every Third-World government was running behind in payments. Mexico led the way by announcing it could not send any more money that year on its $85 billion debt. Federal Reserve Governor Henry Wallich rushed to Switzerland to negotiate an IMF loan of $4.5 billion through the Bank of International Settlements. The central banks of Europe and Japan provided $1.85 billion (about 40%); the rest came from the Federal Reserve. Commercial banks postponed payments on the principal for two years; but, with the infusion of new loans, payment on the interest was resumed. That did not solve the problem. Within a few years, Mexico was in arrears again and, in 1985, the banks agreed to postpone $29 billion in payments and rolled over another $20 billion, which means they issued new loans to pay off the old.

In that same year, Secretary of the Treasury James Baker announced the government's plan to solve the world's debt crisis. It was a formal statement encouraging banks to continue lending to Third-World governments provided they promised to enact economic reforms favoring a free market. It was more of a philosophy than a plan, because there was no hope that it would be implemented by any of the socialist governments receiving the loans. Behind the announcement was the implication that the federal government, acting through the Federal Reserve System, could be counted on to assist if the loans went sour. Baker called for funneling $29 billion over three years primarily to Latin American countries, of which Mexico was a prime recipient.

CURRENCY SWAP

Shortly after the Mexican government had loaned $55 million to Fidel Castro, it announced to the banks: "We will pay only what we have, and no more." Whereupon Paul Volcker, head of the Federal Reserve, rushed to meet with Mexico's finance minister, Jesus Silva Herzog, and offered to put the American taxpayer into the breach. A $600 million short-term loan was extended to get Mexico past its election date of July 4. It was called a "currency swap" because Mexico exchanged an equal number of pesos which it promised to redeem in U.S. dollars. Pesos, of course, were worthless in international markets-which is the reason Mexico wanted the dollars.

The importance of this loan was not its size nor even the question of repayment. It was the manner in which it was made. First, it was made by the Federal Reserve directly, acting as a central bank for Mexico, not the U.S.; and secondly, it was done almost in total secrecy. William Greider gives the details:

The currency swaps had another advantage: they could be done secretly. Volcker discreetly informed both the Administration and the key congressional chairmen, and none objected. But the public reporting of currency swaps was required only every quarter, so the emergency loan from the Fed would not be disclosed for three or four months.... By that time, Volcker hoped, Mexico would be arranging more substantial new financing from the IMF.... The foreign assistance was done as discreetly as possible to avoid setting off a panic, but also to avoid domestic political controversy.... Bailing out Mexico, it seemed, was too grave to be controversial. 1

DEBT SWAP

The currency swap did not solve the problem. So, in March of 1988, the players and referees agreed to introduce a new maneuver in the game: an accounting trick called a "debt swap." A debt swap is similar to a currency swap in that the United States exchanges something of real value in return for something that is worthless. But, instead of currencies, they exchange government bonds. The transaction is complicated by the time-value of those bonds. Currencies are valued by their immediate worth, what they will buy today, but bonds are valued by their future worth, what they will buy in the future. After that differential factor is calculated, the process is essentially the same. Here is how it worked.

Mexico, using U.S. dollars, purchased $492 million worth of American Treasury Bonds that pay no interest but which will pay $3.67 billion when they mature in twenty years. (Technically, these are called zero-coupon bonds.) Then Mexico issued its own bonds with the U.S. securities tied to them as collateral. This meant that the future value of Mexico's bonds, previously considered worthless, were now guaranteed by the United States government. The banks eagerly swapped their old loans for these new Mexican bonds at a ratio of about 1.4 to 1. In other words, they accepted $100 million in bonds in return for canceling $140 million in old debt. That reduced their interest income, but they were happy to do it, because they had swapped worthless loans for fully-guaranteed bonds.

1. Greider, pp. 485-6.

This maneuver was hailed in the press as true monetary magic. It would save the Mexican government more than $200 million in annual interest charges; it would restore cash flow to the banks; and-miracle of miracles-it would cost nothing to American taxpayers.1 The reasoning was that the Treasury bonds were sold at normal market rates. The Mexican government paid as much for them as anyone else. That part was true, but what the commentators failed to notice was where Mexico got the American dollars with which to buy the bonds. They came through the IMF in the form of "foreign-currency exchange reserves." In other words, they were subsidies from the industrialized nations, primarily the United States. So, the U.S. Treasury put up the lion's share of the money to buy its own bonds. It went a half-billion dollars deeper in debt and agreed to pay $3.7 billion more in future payments so the Mexican government could continue paying interest to the banks. That is called bailout, and it does fall on the American taxpayer.

IMF BECOMES FINAL GUARANTOR

The following year, Secretary of State, James Baker (CFR), and Treasury Secretary, Nicholas Brady (CFR), flew to Mexico to work out a new debt agreement that would begin to phase in the IMF as final guarantor. The IMF gave Mexico a new loan of $3.5 billion (later increased to $7.5 billion), the World Bank gave another $1.5 billion, and the banks reduced their previous loan values by about a third. The private banks were quite willing to extend new loans and reschedule the old. Why not? Interest payments would now be guaranteed by the taxpayers of the United States and Japan.

That did not permanently solve the problem, either, because the Mexican economy was suffering from massive inflation caused by internal debt, which was in addition to the external debt owed to the banks. The phrases "internal debt" and "domestic borrowing" are code for the fact that government has inflated its money supply by selling bonds. The interest it must pay to entice people to purchase those bonds can be staggering and, in fact, interest on Mexico's domestic borrowing was draining three times as much from the economy as the foreign debt service had been siphoning off.

2. "U.S. Bond Issue Will Aid Mexico in Paying Debts," by Tom Redburn, Los Angeles Times, December 30, 1987.

"With Foreign IOUs Massaged, Interest Turns to Internal Debt," Insight, October 2, 1989, p. 34.

Notwithstanding this reality, Citicorp chairman, John S. Reed (CFR), whose bank is one of Mexico's largest lenders, said they were prepared to lend even more now. Why? Did it have anything to do with the fact that the Federal Reserve and the IMF would guarantee payments? Not so. "Because we believe the Mexican economy is doing well," he said. 1

At the end of 1994, the game was still going, and the play was the same. On December 21, the Mexican government announced that it could no longer pay the fixed exchange rate between the peso and the dollar and that the peso would now have to float in the free market to find its true value. The next day it plummeted 39 per cent, and the Mexican stock market tumbled. Once again, Mexico could not pay the interest on its loans. On January 11, President Clinton (CFR) urged Congress to approve U.S. guarantees for new loans up to $40 billion. Secretary of the Treasury Robert Rubin (CFR) explained: "It is the judgment of all, including Chairman Alan Greenspan [CFR], that the probability of the debts being paid [by Mexico] is exceedingly high." But, while Congress debated the issue, the loan clock was ticking. Payment of $17 billion in Mexican bonds was due within 60 days, and $4 billion of that was due on the first of February! Who was going to pay the banks?

This matter could not wait. On January 31, acting independently of Congress, President Clinton announced a bailout package of over $50 billion in loan guarantees to Mexico; $20 billion from the U.S. Exchange Stabilization Fund, $17.8 billion from the IMF, $10 billion from the Bank of International Settlements, and $3 billion from commercial banks.

BRAZIL

Brazil became a major player in 1982 when it announced that it too was unable to make payments on its debt. In response, the U.S. Treasury made a direct loan of $1.23 billion to keep those checks going to the banks while negotiations were under way for a more permanent solution through the IMF. Twenty days later, it gave another $1.5 billion; the Bank of International Settlements advanced $1.2 billion. The following month, the IMF provided $5.5 billion; Western banks extended $10 billion in trade credits; old loans were rescheduled; and $4.4 billion in new loans were made by a Morgan Bank syndication. The "temporary" loans from the U.S. Treasury were extended with no repayment date established. Ron Chernow comments:

The plan set a fateful precedent of "curing" the debt crisis by heaping on more debt. In this charade, bankers would lend more to Brazil with one hand, then take it back with the other. This preserved the fictitious book value of loans on bank balance sheets. Approaching the rescue as a grand new syndication, the bankers piled on high interest rates and rescheduling fees.'

By 1983, Third-World governments owed $300 billion to banks and $400 billion to the industrialized governments. Twenty-five nations were behind in their payments. Brazil was in default a second time and asked for rescheduling, as did Rumania, Cuba, and Zambia. The IMF stepped in and made additional billions of dollars available to the delinquent countries. The Department of Agriculture, through its Commodity Credit Corporation, paid $431 million to American banks to cover payments on loans from Brazil, Morocco, Peru, and Rumania. At the conclusion of these agreements, the April 20, 1983, Wall Street Journal editorialized that "the international debt crisis ... is, for all practical purposes, over."

Not quite. By 1987, Brazil was again in default on its monstrous $121 billion debt, this time for one and a-half years. In spite of the torrent of money that had passed through its hands, it was now so broke, it couldn't even buy gasoline for its police cars. In 1989, as a new round of bailout was being organized, President Bush, Sr. (CFR) announced that the only real solution to the Third-World debt problem was debt forgiveness. Thirteen years later, President Bush, Jr., was continuing the tradition and calling for another $30 billion IMF loan to Brazil, backed by the U.S taxpayer.

At the risk of running this history into the ground through repetition, here are just a few more examples before moving along.

ARGENTINA

By 1982, Argentina was unable to make a $2.3 billion payment that was due in July and August. The banks extended their loans while the IMF prepared a new infusion in the amount of $2.15 billion. This restored the interest payments and gave the Argentinian politicians a little extra spending money.

1. Chernow, p. 644.

Seven months later, Argentina announced it could not make any more payments until the fall of 1983. The banks immediately began negotiations for rollovers, guarantees, and new IMF loans.

Argentina then signed an agreement with 350 creditor banks to stretch out payments on nearly a fourth of its $13.4 billion debt, and the banks agreed to lend an extra $4.2 billion to cover interest payments and political incentives. The IMF gave $1.7 billion. The United States government gave an additional $500 million directly. Argentina then paid $850 million in overdue interest charges to the banks.

By 1988, Argentina had again stopped payment on its loans and was falling hopelessly behind as bankers and politicians went into a huddle to call the next bailout play. They came out of the huddle with yet another package of new loans, rollovers, and guarantees. As summarized by Larry A. Sjaastad at the University of Chicago:

There isn't a U.S. bank that would not sell its entire Latin American portfolio for 40 cents on the dollar were it not for the possibility that skillful political lobbying might turn up a sucker willing to pay 50 or 60 or even 90 cents on the dollar. And that sucker is the U.S. Taxpayer. 1

The IMF bailed out Argentina again for $40 billion in 2001 and another $8 billion in 2002.

This history can become repetitious and boring. It would be counterproductive to cover the same sordid story as it has unfolded in each country. Suffice it to say that the identical game has been played with teams from Bolivia, Peru, Venezuela, Costa Rica, Morocco, the Philippines, the Dominican Republic, and almost every other less-developed country in the world.

THE NEED FOR CONVERGENCE

This sets the stage for understanding the next phase of the game which is unfolding as these words are being written. It is the inclusion of China and the former Soviet bloc into the Grand Design for global government. As with all the other countries in the world, the primary mechanism being used to accomplish this goal-at least in the field of economics-is the IMF /World Bank.' The process is: (1) the transfer of money from the industrialized nations-

"Another Plan to Mop Up the Mess," Insight, April 10, 1989, p. 31.

Other mechanisms which involve culture, education, political sovereignty, and military power are embodied in agencies of the United Nations.

-which drags them down economically to a suitable common denominator-and (2) the acquisition of effective control over the political leaders of the recipient countries as they become dependent upon the money stream. The thing that is new and which sets this stage apart from previous developments is that the apparent crumbling of Communism has created an acceptable rationale for the industrialized nations to now allow their lifeblood to flow into the veins of their former enemies. It also creates the appearance of global, political "convergence," a condition which CFR theoretician, Richard Cooper, said was necessary before Americans would accept having their own destinies determined by governments other than their own.

CHINA

Red China joined the IMF/World Bank in 1980 and immediately began to receive billions of dollars in loans, although it was well known that she was devoting a huge portion of her resources to military development. By 1987, China was the INIF's second largest borrower, next to India, and the transfusions have grown at a steady pace ever since.

The Bank has asserted that loans will encourage economic reforms in favor of the private sector. Yet, none of the money has gone to the private sector. All of it is funneled into the government bureaucracy which, in turn, wages war against the free market. In 1989, after small businesses and farms in the private sector had begun to flourish and surpass the performance of similar government enterprises, Red China's leaders clamped down on them with harsh controls and increased taxes. Vice Premier Yao Yilin announced that there was too much needless construction, too many private loans, and too much spending on "luxuries" such as cars and banquets. To stop these excesses, he said, it would be necessary to increase government controls over wages, prices, and business activities.

Then there is the question of why China needs the money in the first place. Is it to develop her industry or natural resources? Is it to fight poverty and improve the living standard of her citizens? James Bovard answers:

The Bank's defense of its China Policy is especially puzzling because China itself is going on a foreign investment binge. The World Bank gives China money at zero interest, and then China buys property in Hong Kong, the United States, Australia, and elsewhere. An economist with Citibank estimated that China's "direct investment in property, manufacturing and services [in Hong Kong alone] topped $6 billion." In 1984, China had a net outflow of capital of $1 billion. Moreover, China has its own foreign aid program, which has given more than $6 billion in recent decades, largely to leftist governments. 1

THE GREAT DECEPTION

It is the author's contention that the much heralded demise of Communism in the Soviet bloc is a mixture of fact and fantasy. It is fact at the bottom level of Communist society where the people, in truth, rejected it long ago. The only reason they appeared to embrace it for so many years was that they had no choice. As long as the Soviets held control of the weapons and the means of communication, the people had to accept their fate.

But at the tip of the pyramid of state power, it is a different story. The top Communist leaders have never been as hostile to their counterparts in the West as the rhetoric suggests. They are quite friendly to the world's leading financiers and have worked closely with them when it suits their purposes. As we shall see in the following section, the Bolshevik revolution actually was financed by wealthy financiers in London and New York. Lenin and Trotsky were on the closest of terms with these moneyed interests-both before and after the Revolution. Those hidden liaisons have continued to this day and occasionally pop to the surface when we discover a David Rockefeller holding confidential meetings with a Mikhail Gorbachev in the absence of government sponsorship or diplomatic purpose.

It is not unreasonable to imagine a scenario in which the leaders of the Communist bloc come to realize they cannot hold themselves in power much longer. There comes a point where even physical force is not enough, especially when the loyalties of those who hold the weapons also begin to falter. With economic gangrene creeping up the legs of their socialist systems, they realize they must obtain outside financial assistance or perish.

In such a scenario, quiet agreements can be worked out to the mutual advantage of all negotiators. The plan could be as simple as a statue-of-liberty play in a college football game: the appearance of doing one thing as a cover for accomplishing something else.

1. Bovard, pp. 18-19.

Americans are prepared to accept such deception on a football field, they cannot believe that world financiers and politicians are capable of it. The concept is rejected out of hand as a "conspiracy theory."

Nevertheless, in this scenario, we theorize it is agreed among the negotiators that the Soviet Bloc needs financial support. It is agreed that the Western nations have the capacity to provide it. It is agreed that the best way to move money from the industrialized nations into the Soviet bloc is through international agencies such as the IMF /World Bank. It is agreed this cannot happen until hostility between world systems is replaced by political convergence. It is agreed that future conflict is wasteful and dangerous to all parties. Therefore, it is finally agreed that the Soviet bloc must abandon its posture of global aggression while the Western nations continue to move toward socialism, necessary steps for the long-range goal of merger into a world government. But, in doing so, it must be insured that the existing Communist leaders retain control over their respective states.

COMMUNISTS BECOME SOCIAL DEMOCRATS

To that end, they change their public identities to "Social Democrats." They speak out against the brutal excesses of their predecessors and they offer greater freedom of expression in the media. A few dispensable individuals among their ranks are publicly purged as examples of the demise of the old order. States that once were held captive by the Soviet Union are allowed to break away and then return on a voluntary basis. If any leaders of the newly emancipated states prefer true independence instead of alignment with Russia, they are replaced.

No other changes are required. Socialism remains the economic system of choice and, although lip service may be given to free-market concepts, the economy and all means of production remain under state control. The old Communists are now Social Democrats and, without exception, they become the leaders in the new system.

The West rejoices, and the money starts to move. As an extra bonus, the former Bolsheviks are now hailed by the world as great statesmen who put an end to the Cold War, brought freedom to their people, and helped to forge a New World Order.

When did Communism depart? We are not quite sure. All we know is that one day we opened our newspapers and it was accomplished. Social Democrats were everywhere. No one could find any Communists. Russian leaders spoke as long-time enemies of the old regime. Peristroika was here. Communism was dead. It was not killed by an enemy. It voted itself out of existence. It committed suicide!

Does it not seem strange that Communism fell without a struggle? Is it not curious that the system which was born out of class conflict and revolution and which maintained itself by force and violence for almost a century just went away on its own? Communism was not overthrown by people rising up with clubs and pitchforks to throw off their yoke of tyranny. There was no revolution or counterrevolution, no long period of fragmentation, no bloody surges between opposing forces. Poof! It just happened. True, there was blood in the streets in those areas where opposing groups vied for power, but that was after Communism had departed, not before. Such an event had never occurred in history. Until then, it had been contrary to the way governments act; contrary to the very nature of power which never surrenders without a life-and-death struggle. This, indeed, is a great curiosity-which should cause people to think.

Our premise is that the so-called demise of Communism is a Great Deception-not awfully different from many of the others that are the focus of this volume. We see it as having been stage managed for the purposes outlined previously: the transition to world government. In our view, that scenario is the only one that makes sense in terms of today's geopolitical realities and the only one consistent with the lessons of history.

We realize, of course, that such a view runs contrary to popular opinion and conventional wisdom. For many, it is shocking just to hear it spelled out. It would not be possible to convince anyone of its truth without extensive evidence. Certainly, such evidence abounds, but it is not within the scope of this study. So, now that we have stated it, we shall leave it behind merely as a clarification

of the author's point of view so the reader can step around it if he wishes.

EASTERN EUROPE

American aid to Eastern European governments, while they were still puppet states of the Soviet Union, has been justified by the same theory advanced on behalf of China: it would improve their economies, show their people a better way of life, and wean them from Communism. Advocates of that theory now point to the demise of Communism as evidence of the soundness of their plan. The truth, however, is that the money did not improve the economy and did not show the people a better way of life. In fact, it did not help the people in any way. It went directly to their governments and was used for government priorities. It strengthened the ruling parties and enabled them to solidify their control.

It is well known that one of the reasons Poland's economy was weak is that much of her productive output was shipped to the Soviet Union at concessionary prices, primarily to support the military. Polish-built tanks fought in the Vietnam war; 20% of the Soviet merchant marine was built in Poland; 70% of Poland's computer and locomotive production and 80% of her communications equipment was shipped to the Soviets; American grain purchased by Poland with money borrowed from American banks was sent to Cuba. Poland was merely a middle man, a conduit to Russia and her satellites. The banks were really funding Russia.

It was in 1982 that Poland first defaulted on bank loans which had been guaranteed by the U.S. government through the Commodity Credit Corporation. Under the terms of the guarantee, taxpayers would make payments on any bank loan that went into default. That was what the banks were counting on when they made those loans, but to classify them as "in default" would require the banks to remove them from their books as assets. That was unacceptable, because it would make their balance sheets look as bad as they really were. So the Treasury agreed to bend the rules and make payments without requiring the loans to be in default. That was eventually stopped by an irate Congress, but not until the Reagan Administration had stalled long enough to pay $400 million directly to the banks on behalf of Poland.

In November, 1988, the World Bank made its first loan to Poland in the amount of $17.9 million. Three years later, in a dramatic demonstration of what the President had meant when he advocated "debt forgiveness," the Bush Administration canceled a full 70% of the $3.8 billion owed to the United States. Taxpayers picked up the bill

The same story has been unfolding in all the former Soviet-bloc countries. In 1980, for example, just before Hungary was brought into the IMF/World Bank, her annual per-capita GNP was $4,180. This was a problem, because the policy of the World Bank was to make development loans only to countries that had per-capita GNPs of less than $2,650. Not to worry. In 1981, the Hungarian government simply revised its statistics downward from $4,180 to $2,100.1 That was a drop of 50% in one year, surely one of the sharpest depressions in world history. Everyone knew it was a lie, but no one raised an eyebrow. It was all part of the game. By 1989, the Bush Administration had granted "most favored nation" trade status to the Hungarian government and established on its behalf a special $25 million development fund.

RUSSIA

American banks had always been willing to make loans to the Soviet Union, except for short periods of expediency during the Cuban Missile Crisis, the Vietnam War, the Soviet invasion of Afghanistan, and other minor business interruptions. In 1985, after the public had lost interest in Afghanistan, banks of the "free world" reopened their loan windows to the Soviets. A $400 million package was put together by a consortium of First National of Chicago, Morgan Guaranty, Bankers Trust, and Irving Trust-plus a London subsidiary of the Royal Bank of Canada. The loan was offered at unusually low interest rates "to buy American and Canadian grain."

Public indignation is easily disarmed when the announced purpose of a loan to a totalitarian government is to purchase commodities from the country where the Wn originates-especially if the commodity is grain for the assumed purpose of making bread or feeding livestock. Who could possibly object to having the money come right back to our own farmers and merchants in the form of profits? And who could fault a project that provided food for the hungry?

The deception is subtly appealing. It is true that the money will be used-in part at least-to buy grain or other locally produced

commodities. But the borrowing nations are like a homeowner who increases the mortgage on his house "to enlarge his living room." He probably will make the addition, but he borrows twice as much as he needs so he can also buy a new car. Since the government allows a tax deduction on mortgage interest, in effect he now gets a tax deduction for the interest paid on his car as well. Likewise, the borrowing nations usually borrow more than they need for the announced purchase, but they receive all the money at favorable rates.

Yet, this is not the most serious fault in the transaction. In the case of Russia, the grain was no small item on her list of needs. After repeated failures of her socialist agriculture, she was not able to feed her population. Hungry people are dangerous to a government. Russia needed grain to head off internal revolt far more than the homeowner needed to increase the size of his living room. In other words, Russia had to have the grain, with or without the loan. Without it, she would have had to curtail spending somewhere else to obtain the money, most likely in her military. By giving her the money "to buy grain," we actually allowed her to spend more money on armaments.

But even that is not the primary flaw in making loans to Russia. The bottom line is that most of those loans will never be repaid! As we have seen, the name of the game is bailout, and it is as certain as the setting sun that, somewhere down the line, Russia will not be able to make her payments, and the taxpayers of the industrialized nations will be put through the IMF wringer one more time to squeeze out the transferred purchasing power.

BUSINESS VENTURES IN RUSSIA INSURED BY U.S.

In 1990, the U.S. Export-Import Bank announced it would begin making direct loans to Russia. Meanwhile, the U.S. Overseas Private Investment Corporation was providing free "insurance" to private companies that were willing to invest in the ex-Soviet state. In other words, it was now doing for industrial corporations what it had been doing all along for banks: guaranteeing that, if their investments turned sour, the government-make that taxpayers- would compensate them for their losses. The limit on that insurance had been $100 million, a generous figure, indeed. But, to encourage an even greater flow of private capital into Russia, the

Bush Administration authorized unlimited protection for "sound American corporate investments."

If these truly were sound investments, they would not need foreign-aid subsidies or government guarantees. What is really happening in this play is a triple score:

International lending agencies provide the Social Democrats with money to purchase goods and services from American firms. No one really expects them to repay. It is merely a clever method of redistributing wealth from those who have it to those who don't-without those who have it catching on.

American firms do not need money to participate. Since their ventures are guaranteed, banks are anxious to loan whatever amount of money is required. Efficiency or competitiveness are not important factors. Contracts are awarded on the basis of political influence. Profits are generous and without risk.

When the Social Democrats eventually default in their contracts to the American firms or when the joint venture loses money because of socialist mismanagement, the federal government provides funds to cover corporate profits and repayment of bank loans.

There you have it: The Social Democrats get the goodies; the corporations get the profits, and the banks get the interest on money created out of nothing. You know what the taxpayers get!

By 1992, the wearisome pattern was clearly visible. Writing in the New York Times, columnist Leslie H. Gelb gave the numbers:

The ex-Soviet states are now meeting only 30 percent of their interest payments (and almost no principal) on debts to the West of $70 billion.... Various forms of Western aid to the ex-Soviet states totaled about $50 billion in the last 20 months, and the money has virtually disappeared without a trace or a dent on the economic picture.'

The interesting thing about this report is that Leslie Gelb has been a member of the CFR since 1973. Why would a CFR spokesman blow the whistle on one of their most important maneuvers toward The New World Order? The answer is that he is doing just the opposite. Actually he is making a plea for more loans

and more outright aid on the basis that the need is so great! He advocates the prioritizing of funding with first attention to aiding Russia's nuclear-power facilities, agriculture, and industrial capacity. At the end of his article, he writes: "The stakes could not be higher. All the more reason for substantial, practical and immediate aid-not for grand illusions."

The excuse for all of this is that, if we do not keep the money flowing, Russia may fall back into the hands of those "bad Communists" who are just waiting to unleash nuclear war against us. Congress hears and obeys. In spite of the fact that all the preceding billions have "disappeared without a trace or a dent," the transfusion continues. In 1993 the World Bank advanced another half-billion-dollar loan to Russia; before leaving office, President Bush arranged for another $2 billion loan through the Export-Import Bank; and Congress authorized hitting the voters with another $2.5 billion in foreign aid specifically for Russia. In July of that year, at the meeting of the Group-of-Seven industrialized nations, another $24 billion was promised, half of which was to come from the IMF. In 1998, Russia defaulted on several billions of its debt, so the IMF restructured the old loans and issued new ones. In 1999, it was discovered that Russian officials had "laundered" (stolen) about $20 billion of this funding. The IMF publicly expressed shock and dismay; but soon resumed negotiations to issue new loans. As this book goes to print, there is no end in sight.

THE CONSPIRACY THEORY

A moment's reflection on these events leads us to a crossroads of conscience. We must choose between two paths. Either we conclude that Americans have lost control over their government, or we reject this information as a mere distortion of history. In the first case, we become advocates of the conspiratorial view of history. In the latter, we endorse the accidental view. It is a difficult choice because we have been conditioned to laugh at conspiracy theories, and few people will risk public ridicule by advocating them. On the other hand, to endorse the accidental view is absurd. Almost all of history is an unbroken trail of one conspiracy after another. Conspiracies are the norm, not the exception.

The industrialized nations of the world are being bled to death in a global transfer of their wealth to the less developed countries. Furthermore, it is not being done to them by their enemies. It is being done by their own leaders. The process is well coordinated across national lines and perfectly dovetails with the actions of other leaders who are doing the same thing in their respective countries, and these leaders regularly meet together to better coordinate their activities. This could not happen without planning.

A spokesman from the IMF would answer, yes, there is a plan, and it is to aid the less developed countries. But, after forty years and hundreds of billions of dollars, they have totally failed to accomplish that goal. Would intelligent people believe that pursuing the same plan will produce different results in the future? Then why do they follow a plan that cannot work? The answer is they are not following that plan. They are following a different one: one that has been very successful from their point of view. Otherwise, we must conclude that the leaders of the industrialized nations are, to a man, just plain stupid. We do not believe it.

These men and women are following a higher loyalty than to their respective countries. In their hearts they may honestly believe that, in the long run, the world will be better for it, including their fellow countrymen. But, for the present, their goals are not shared by those who have placed them in office, which is why they must conceal their plan from public view. If their fellow citizens knew what they were really doing, they would be thrown out of office and, in some cases, might even be shot as traitors.

If all of this is accidental, then there is no plan, no cooperation, no goal, and no deceit, just the blind forces of history following the path of least resistance. For some it is easier and more comfortable to accept that model. But the evidence speaks against it; not just the evidence in the previous chapters, but everything that follows in this book. By contrast, the evidence for the accidental theory of history is - a blank page.

SUMMARY

The international version of the game called Bailout is similar to the domestic version in that the overall objective is to have the taxpayers cover the defaulted loans so that interest payments can continue going to the banks. The differences are: (1) instead of justifying this as protecting the American public, the pretense is that it is to save the world from poverty; and (2) the main money pipeline goes from the Federal Reserve through the IMF /World Bank. Otherwise, the rules are basically the same.

There is another dimension to the game, however, that involves more than mere profits and scam. It is the conscious and deliberate evolution of the IMF/World Bank into a world central bank with the power to issue a world fiat currency. And that is an important step in an even larger plan to build a true world government within the framework of the United Nations.

Economically strong nations are not candidates for surrendering their sovereignty to a world government. Therefore, through "loans" that will never be paid back, the IMF /World Bank directs the massive transfer of wealth from the industrialized nations to the less developed nations. This ongoing process eventually drains their economies to the point where they also will be in need of assistance. No longer capable of independent action, they will accept the loss of sovereignty in return for international aid.

The less developed countries, on the other hand, are being brought into The New World Order along an entirely different route. Many of these countries are ruled by petty tyrants who care little for their people except how to extract more taxes from them without causing a revolt. Loans from the IMF/World Bank are used primarily to perpetuate themselves and their ruling parties in power-and that is exactly what the IMF/World Bank intends. Rhetoric about helping the poor notwithstanding, the true goal of the transfer of wealth disguised as loans is to get control over the leaders of the less developed countries. After these despots get used to the taste of such an unlimited supply of sweet cash, they will never be able to break the habit. They will be content-already are content-to become little gold-plated cogs in the giant machinery of world government. Ideology means nothing to them: capitalist, communist, socialist, fascist, what does it matter so long as the money keeps coming. The IMF/World Bank literally is buying these countries and using our money to do it.

The recent inclusion of Red China and the former Soviet bloc on the list of IMF /World Bank recipient countries signals the final phase of the game. Now that Latin America and Africa have been "purchased" into the New World Order, this is the final frontier. In a relatively short time span, China, Russia, and the Eastern European countries have now become the biggest borrowers and, already, they are in arrears on their payments. This is where the action will lie in the months ahead.









Losing Credibility: The IMF’s New Cold War Loan to Ukraine by Michael Hudson
Posted on September 16, 2014 by dandelionsalad |
by Michael Hudson
Writer, Dandelion Salad
September 16, 2014

In April 2014, fresh from riots in Maidan Square and the February 22 coup, and less than a month before the May 2 massacre in Odessa, the IMF approved a $17 billion loan program to Ukraine’s junta. Normal IMF practice is to lend only up to twice a country’s quote in one year. This was eight times as high.

Four months later, on August 29, just as Kiev began losing its attempt at ethnic cleansing against the eastern Donbas region, the IMF signed off on the first loan ever to a side engaged in a civil war, not to mention rife with insider capital flight and a collapsing balance of payments. Based on fictitiously trouble-free projections of the ability to pay, the loan supported Ukraine’s hernia currency long enough to enable the oligarchs’ banks to move their money quickly into Western hard-currency accounts before the hernia plunged further and was worth even fewer euros and dollars.

This loan demonstrates the degree to which the IMF is an arm of U.S. Cold War politics. Kiev used the loan for military expenses to attack the Eastern provinces, and the loan terms imposed the usual budget austerity, as if this would stabilize the country’s finances. Almost nothing will be received from the war-torn East, where basic infrastructure has been destroyed for power generation, water, hospitals and the civilian housing areas that bore the brunt of the attack. Nearly a million civilians are reported to have fled to Russia. Yet the IMF release announced: “The IMF praised the government’s commitment to economic reforms despite the ongoing conflict.”[1] A quarter of Ukraine’s exports normally are from eastern provinces, and are sold mainly to Russia. But Kiev has been bombing Donbas industry and left its coal mines without electricity.

This loan is bound to create even more dissension among IMF staff economists than broke out openly over the disastrous $47 billion loan to Greece – at that time the largest loan in IMF history – prompted a 50-page internal document leaked to the Wall Street Journal acknowledging that the IMF had “badly underestimated the damage that its prescriptions of austerity would do to Greece’s economy.” Staff economists blamed pressure from eurozone countries protecting their own “banks [that] held too much Greek government debt. … The IMF had originally projected Greece would lose 5.5% of its economic output between 2009 and 2012. The country has lost 17% in real gross domestic output instead. The plan predicted a 15% unemployment rate in 2012. It was 25%.[2]

The IMF’s Articles of Agreement forbid it to make loans to countries that clearly cannot pay, prompting its economists to complain at last year’s October 2013 annual meeting in Washington that their institution was violating its rules by making bad loans “to states unable to repay their debts.” In practice, the IMF simply advances however much a government needs to bail out its bankers and bondholders, pretending that more austerity enhances the ability to pay, not worsen it. Ukraine looks like a replay of the Greek situation with an exclamation mark! One official last year called its Debt Sustainability Analysis, “‘a joke,’ a [European] commission official described it ‘a fairy tale to put children to sleep’ and a Greek finance ministry official said it was ‘scientifically ridiculous.’”[3]

John Helmer’s Dances with Bears calculates that “of the $3.2 billion disbursed to the Ukrainian treasury by the IMF at the start of May, $3.1 billion had disappeared offshore by the middle of August.”[4]

This raises the question of whether the IMF’s loan is legally an “odious debt,” being made to a military junta and stolen by government insiders. The IMF acknowledged that the central bank was simply turning money over to the kleptocrats who run the country’s banks as part of their conglomerates (as well as funding the government’s military attack on the East, largely on behalf of the leading kleptocrats behind the Maidan coup). “The proportion of government securities and loans to banks increased from 28 percent of NBU total assets at end-2010 to 56 percent at end-April 2014.” The financial situation is getting so much worse that to stave off insolvency, Ukraine’s leading banks are reported to need another $5 billion over and above the IMF’s $17 billion commitment.

In preparation for October’s scheduled elections, the eastern provinces are in no condition to vote, and the junta has banned the Communist party as well as TV and media reporting that it does not like (mainly in the Russian language). The leading pro-war parties are polling very low even in the West (as of early September), prompting warnings of a coup by the Right Sector and allied neo-Nazi Ukrainian nationalists, headed by the oligarch Igor Kolomoyskyy, who fields his own private army.

A defeat in war frequently leads to regime change. The spectre of a coup is once again roaming the streets and squares of Kyiv. Surviving National Guard fighters are threatening to turn their weapons on Poroshenko. A third Maydan [Independence Square protest movement] is taking shape, which is to sweep aside the present regime. The instigators of this Maydan are militants from the punitive battalions created with Kolomoyskyy’s money. It is obvious that the oligarch is playing his game against Poroshenko. Subordinate to him Kolomoyskyy has quite a strong private army capable of carrying out a coup.[5]

IMF- and US-backed privatization plans for Ukraine

Ukraine’s main problem is that its debt is denominated in dollars and euros. There seems only one way for Ukraine to raise the foreign exchange to repay the IMF: by selling its natural resources, headed by gas rights and agricultural land. Here the shadowy figure of Kolomoyskyy resurfaces, with support from the United States. Recent Senate Bill 2277 “directs the U.S. Agency for International Development to guarantee loans for every phase of the development of oil and gas” in Ukraine, Moldova and Georgia.

Vice President Joe Biden’s son, R. Hunter Biden, recently was appointed to the board of Burisma, a Ukrainian oil and gas company registered in Cyprus, long a favorite for post-Soviet operators. The firm has enough influence over Kiev politics to make prospective gas-fracking lands a military objective. “Ukrainian troopers help installing shale gas production equipment near the east Ukrainian town of Slavyansk, which they bombed and shelled for the three preceding months, the Novorossiya news agency reports on its website citing local residents. Civilians protected by Ukrainian army are getting ready to install drilling rigs. More equipment is being brought in, they said, adding that the military are encircling the future extraction area.”[6]

One report notes the extent to which “pro-Russian” means opposing a gas grab:

The people of Slavyansk, which is located in the heart of the Yzovka shale gas field, staged numerous protest actions in the past against its development. They even wanted to call in a referendum on that subject. … Countries like the Czech Republic, the Netherlands and France have given up plans to develop shale gas deposits in their territories. Not only them but also all-important Germany, which two weeks ago announced it would halt shale-gas drilling for the next seven years over groundwater pollution concerns.[7]

U.S. and IMF backing seems intended to help reduce European dependence on Russian gas so as to squeeze its balance of payments. The idea is that lower gas revenues will squeeze Russia’s ability to maneuver in today’s New Cold War. But this strategy involves a potentially embarrassing U.S. alliance with Kolomoyskyy, reportedly the major owner of Burisma via his Privat Bank. He “was appointed by the coup regime to be governor of Dnipropetrovsk Oblast, a south-central province of Ukraine. Kolomoysky also has been associated with the financing of brutal paramilitary forces killing ethnic Russians in eastern Ukraine.”[8] The term “ethnic Russian” is a kakaism for local protest against fracking by kleptocrats privatizing the economy’s natural resource wealth.

It will be expensive to restore power and water facilities that have been destroyed by the Kiev forces in Donetsk, which faces a cold dark winter. Kiev has stopped paying pensions and other revenue to the Eastern Ukraine, all but guaranteeing its separatism. Even before the Maidan events the local population sought to prevent gas fracking, just as Germany and other European countries have opposed it.

Also opposed is the appropriation of land and other properties by Ukrainian kleptocrats and especially foreigners such as Monsanto, which has invested in genetically engineered grain projects in Ukraine, seeing the country as Europe’s Achilles Heel when it comes to resisting GMOs. A recent report by the Oakland Institute, Walking on the West Side: the World Bank and the IMF in the Ukraine Conflict, describes IMF-World Bank pressure to deregulate Ukrainian agricultural land use and promote its sale to U.S. and other foreign investors. The World Bank’s Investment Finance Corporation (IFC) has “advised the country to ‘delete provisions regarding mandatory certification of food in the listed laws of Ukraine and Government Decree,’” and “to avoid ‘unnecessary cost for businesses’” by regulations on pesticides, additives and so forth.[9]

Yet neither Russia nor many European countries accept genetically engineered foods. It would seem that the only way Ukraine can export GMO crops is if U.S. diplomats pressure Europe to drop its GMO labeling. This would drive yet another wedge between the United States and European NATO members, much as U.S. pressure to impose sanctions on Russia (“Let’s you and him fight”) has done.

U.S. stratagems to save Ukraine from having to pay its debts to Russia

The “inner contradiction” in the IMF loan is that Ukraine owes the entire amount to Russia for gas arrears and current needs as winter nears, and also for the euro loan by Russia’s sovereign wealth fund on strictly commercial terms with cross-defaults if Ukrainian debt rises above 60 percent of GDP. The U.S. Cold War response is to try to craft a legal argument to minimize payments to Russia out of IMF and NATO “reconstruction” lending. The Peterson Institute for International Economics has floated a proposal by former Treasury official Anna Gelpern to deprive Russia of legal means to enforce its claims on Ukraine. “A single measure can free up $3 billion for Ukraine,” she proposed. Britain’s Parliament might pass a law declaring the $3 billion bond negotiated by Russia’s sovereign wealth fund to be “foreign aid,” not a real commercial loan contract worthy of legal enforcement. “The United Kingdom can refuse to enforce English-law contracts for the money Russia lent,” thereby taking “away creditor remedies for default on this debt.”[10]

The problem with this ploy is that Russia’s sovereign wealth fund lent Ukraine euros with strict financial protection aimed at limiting the country’s overall debt to just 60 percent of its GDP. If debt rises above this level, Russia has the right to demand full immediate payment, triggering cross-default clauses in Ukraine’s foreign debt.

As recently as yearend 2013, Ukraine’s public debt amounted to just over 40 percent – a seemingly manageable $73 billion. But in view of the fact that Ukraine had only a B+ rating – below Russian sovereign fund normal limits of requiring at least an AA rating for bond investments – Russia acted in a prudent financial way by inserting protection clauses precisely to distinguish its investment from general purpose aid. Unlike foreign aid, Russia’s loan gives it “power to trigger a cascade of defaults under Ukraine’s other bonds and a large block of votes in any future bond restructuring. This is because all of the government’s bonds are linked among themselves. When one bond defaults, the rest can do the same.”

What the U.S. Government classifies as foreign aid also typically takes the form of loans to be repaid, and insists on matching funds in local currency, e.g. for Public Law 480 food exports. Congress insisted already during the Kennedy Administration that the U.S. balance of payments, and specifically its farm exports, must benefit from any such “aid.”[11]

Waging civil war is expensive, and Ukraine’s currency is rupturing. The black market exchange rate already is reported to have plunged by one-third. If recognized officially (once the kleptocrats have moved their money out at IMF-supported hernia rates), this would raise the country’s debt/GDP ratio to the 60 percent threshold making the debt to Russia payable immediately.

“Governments do not normally sue one another to collect their debts in national courts,” Prof. Gelpern points out. But if this should occur, the pari passu rule would prevent some debts from being annulled selectively. She therefore raises another possibility for how to prevent IMF and NATO credit from being paid to Russia for its bondholdings and gas arrears. Ukraine may claim that its debt to Russia is “odious.” This applies to situations where “an evil ruler signs contracts that burden future generations long after the ruler is deposed.” She adds that “Repudiating all debts incurred under Yanukovich would discourage lending to corrupt leaders.”

The double standard here is that instead of labeling Ukraine’s entire series of post-1991 kleptocratic governments odious, she singles out only Yanukovich, as if his predecessors and successors are not equally venal. But an even greater danger in trying to declare Ukraine’s debt “odious”: It may backfire on the United States, given its own support for military dictatorships and kleptocracies.

In contrast to IMF loans to support the kleptocrats’ banks and new Cold War asset grabs from the Eastern border provinces with Russia, Ukraine’s sale of bonds to Russia’s sovereign debt fund and its contracts signed for gas purchases were negotiated by a democratically elected government, at prices that subsidized domestic industry and also household consumption. Unlike the case with Greece, there was no removal of a national leader to prevent a public referendum from taking place over whether to approve the loan or not. If the Ukrainian debt is deemed odious, what of Eurozone loans to Ireland and Greece or U.S. loans to Argentina’s generals installed under Operation Condor? Gelpern acknowledges that Ukrainian refusal to pay the bonds by invoking the odious debt principle “is fraught with legal, political and market risks, all of which would play into Russia’s hands.” Indeed!

This leaves the most promising solution to hurt Russia to be the above-mentioned ploy for Britain’s Parliament to pass a sanctions law invalidating “the Yanukovich bonds.” Such a sanctions law would reduce Russia’s “ability to profit from selling the debt on the market” simply by denying Russia legal rights to grab Ukrainian assets. It also would destroy London as a leading global financial center.

Gelpern concludes her paper by suggesting a universal principle: that contracts “used to advance military and political objectives … should lose their claim to court enforcement.”

I love this suggestion!

It certainly would open a can of worms in view of the fact that “[t]he United Kingdom and the United States have both used military force in the past to collect debts and influence weaker countries. Is it legitimate for them to punish Russia for doing the same?” Are not the vast majority of inter-governmental debts either military or political in character?

On this logic, shouldn’t most inter-governmental debts be wiped out? Do not Gelpern’s arguments cited for not paying Russia serve even more to provide a legal basis for nullifying Ukraine’s debt to the IMF and subsequent NATO loans on terms that force it to forfeit its natural resource rights for gas and land to foreign investors?

Prof. Gelpern’s legal review is ostensibly seeking reasons to isolate Russia economically. It thus has the seemingly ironic effect of showing the legal and political difficulties in trying to achieve this. If Ukraine borrows from the IMF and/or EU, and then breaks up – with the East becoming independent – who will be obliged to pay? Certainly not the East, attacked by the military coup leaders.

So we are brought back to this month’s financial news in preparation for next month’s IMF annual meeting: Where then does the Ukrainian loan leave the IMF’s credibility?
Last edited by seemslikeadream on Mon Jan 25, 2016 8:15 pm, edited 1 time in total.
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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby seemslikeadream » Mon Jan 25, 2016 8:14 pm

Harvey » Mon Jan 25, 2016 5:14 pm wrote:Thanks for the speedy and comprehensive reply my friend. I suppose I'm really lamenting our dependence upon our sources. I've watched at least one of his interviews, possibly linked to from RI and very much enjoyed it.

What do you think about the larger point (possibly better in a dedicated thread) the sense in which media hooks increasingly bait for our scepticism with a distinctly post conspiratorial flavour? Don't know how better to describe it.



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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby backtoiam » Tue Jan 26, 2016 9:18 pm

Cross posted from another thread.

Weapons Of Mass Migration
About the author.

Greenhill currently serves as Research Fellow and Chair of the Conflict, Security and Public Policy Working Group at Harvard Kennedy School of Government’s Belfer Center…

Greenhill’s research has been supported by the Social Science Research Council, the MacArthur Foundation, the Mellon Foundation, the Eisenhower Foundation and the Neubauer Foundation. Outside of academia, Greenhill has served as a consultant to the Ford Foundation and to the United Nations High Commissioner for Refugees (UNHCR), as a defense program analyst for the U.S. Department of Defense, and as an economic policy intern in the Office of Senator John F. Kerry. She sits on the editorial boards of Sage Publications as well as the journals Security Studies and the Journal of Global Security Studies. She previously served as Associate Editor of Security Studies.


A few quotes from her paper. Its a pdf and the formatting is not transferring so I won't quote much. Its chock full of information though.

Measuring Incidence
In fact, well over forty groups of displaced people have been used as pawns in at least fifty-six discrete attempts at coercive engineered migration since the advent
of the 1951 United Nations Refugee Convention alone. An additional eight
cases are suggestive but inconclusive or “indeterminate.”

Employment of this kind of coercion predates the post-World War II era. However, I focus on the post-1951 period because it was only after World War II—and particularly after ratification of the 1951 Refugee Convention—that international rules and norms regarding the protection of those fleeing violence and persecution were codified.

It was likewise only then that migration and refugees “became a question of high politics” and that, for reasons discussed later in this article, the potential efficacy of this unconventional strategy really began to blossom.

Types of Coercers, Their Objectives and Rates of Success

Coercive engineered migration can be exercised by three distinct types of
challengers: generators, agents provocateurs, and opportunists. Generators direct
ly create or threaten to create cross-border population movements unless targets concede to their demands. Agents provocateurs by contrast do not create crises directl
y, but rather deliberately act in ways designed to incite others to generate outflows. Many see themselves as engaging in a kind of altruistic Machiavellianism, whereby the ends (e.g., autonomy, independence, or the restoration of democracy) justify the employment of these rather unconventional means. Finally, opportunists play no direct role in the creation of migration crises, but simply exploit for their own gain the existence of outflows generated or catalyzed by others. So, when these would-be
coercers—be they opportunists, generators, or agents provocateurs—employ coercive
engineered migration, what do they seek, and how effective have past attempts been in helping these challengers achieve their aims?Just as is the case with traditional military coercion, the demands of challengers who engage in
migration-driven coercion have been highly varied in scope, content, and magnitude. Demands have been both concrete and symbolic and have comprised entreaties both to undertake actions and to cease undertaking them. They have run the gamut from the simple provision of financial aid to the termination of insurgent funding to full-scale military intervention and even regime change

http://calhoun.nps.edu/bitstream/handle ... ll_116.pdf
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Re: Coercive Engineered Migration: Zionism’s War on Europe

Postby seemslikeadream » Fri Jan 29, 2016 12:46 pm

JANUARY 29, 2016
Half-a-Million Refugees Who Don’t Exist: Ben Rawlence’s “City of Thorns”
by CHARLES R. LARSON


Unmarked on any official map, Dadaab—in eastern Kenya—is still today home to roughly 500,000 refugees, mostly from Somalia. You can follow it on Dadaabcamps.com. Dadaab was formed in 1992 to hold what was anticipated to be 90,000 refugees from Somalia’s civil war. When the war did not end and famine in the Horn of Africa exacerbated conditions, it grew to half a million refugees, though some estimates add a couple hundred thousand more. Its residents are forbidden from leaving, from building permanent homes, and from working. Entire families have grown up in the camp, initially fleeing al-Shabaab fundamentalism in Somalia. The United States and other Western governments have supported the camp, the UN managed it, and the Kenyan forces policed it—all this until the Kenyan government officially closed it, in 2014.

The existence of Dadaab (composed, actually, of several camps) has always been complicated. Kenya didn’t want the Somalis, who considerecityhtornsd the area, historically, their own land. The camp’s explosive growth, especially during the drought of 2011, was not anticipated. UN resources for refugees are always stretched thin. As BenRawlence says in City of Thorns, his scathing indictment of the authorities, “Early warning [of the famine] was a waste of time—there would have to be people dying on
television before the money from rich governments would flow. And when it finally did, it would come in a flood. And the markets for the local farmers would collapse entirely. The same thing happened every time.” Ten thousand children had been dying each month, trying to walk to Kenya. “The mortality rate was seven times over the emergency threshold.” Eventually, 260,000 people would die, half of them children. The site became a circus, with TV journalists everywhere and the profiteers of misery, who are always waiting for tragedy in order to pounce.

The rains eventually came and things were somewhat better, though too much rain can make matters worse. Then, because of infiltration by al-Shabaab, two Spanish women, aid workers, were kidnapped. The international agencies suspended their work and Kenya declared war on al-Shabaab, with the intent of forming a buffer zone known as Jubaland between the two countries (but within Somalia borders). That war was largely ineffective. The residents of the Dadaab camps experienced increased violence. The Kenyan government (“less a state than a corrupt collection of rival cartels, some of whom probably had an interest in prolonging the fighting”) and the Kenyan police, an “assortment of drunk and overweight…officers staring at the television,” were largely motivated by corruption and profit.

And the refugees themselves? Rawlence describes them as mostly trapped in Dadaab. Some waited for years for papers for immigration to the few countries that would accept them. Some fled to Nairobi in spite of the restrictions on them. Some returned to Mogadishu, believing that it might be safer than continuing to live in the camps. There was social breakdown, a blurring of traditional gender roles, especially for men, who had a difficult time being providers. People gave up as their lives dried up. Then, to make things even worse, external events changed all of the parameters. The UNHCR had to cut food rations for the refugees in Dadaab, because the money was needed elsewhere, especially for Syria and Iraq. September 21, 2013, masked gunmen attacked shoppers at the Westgate Mall in Nairobi, amidst shouts of “Allahu Akbar” and “We are al-Shabaab,” killing at least 67 people over several days. The ineptitude of the Kenyan forces was on full display and video caught their looting of the mall. But that hardly mattered. The outcry was, once again, for closing down Dadaab, described as an al-Shabaab breeding ground. Rawlence does not agree with that assessment.

Following the rulebook of other countries in recent decades, the Kenyan government simply declared “Dadaab Camp Officially Closed.” No matter that there were still 400,000 people living there and conditions in Somalia had not significantly improved. The refugees (including Somalis in Nairobi) were expected to return to Somalia, and some did, sent on Kenyan busses. Rawlence describes the situation as “the pogrom against Somalis.” Nor does he mince words when he states that Dadaab had “the structure of punishment” like a prison, though the residents had committed no crimes. The crime was somewhere else: “There was a crime here on an industrial scale: confining people to a camp, forbidding them to work, and then starving them; people who had come to Dadaab fleeing famine in the first place.” With nowhere else for people to go, Dadaab actually grew larger, instead of smaller.

City of Thorns is a perfect metaphor for our time, a perfect storm of human misery because of mismanagement. It doesn’t take much imagination to realize that other similar refugee camps are springing up all over the Middle East. The wonder of Rawlence’s book is its emphasis on the human dimension, in spite of the writer’s massing of historical evidence. (Rawlence worked for Human Rights Watch in the area for several years.) The book’s sub-title is Nine Lives in the World’s Largest Refugee Camp, although, sadly, since the book was completed, there are several camps in the Middle East competing in their size.

The lives of nine refugees fleshes out the horror of the story by providing it with a human context. Thus, one of the first people we encounter is Guled, who was born in Mogadishu in 1993, and, years later, fled the country, arriving in Dadaab late in 2010. Before that, he’d been conscripted by the fundamentalists, forced to join the moral police (boy soldiers), checking the market. He describes some of their tactics. “Beating was routine. If you had music or inappropriate pictures on your phone you might be forced to swallow the SIM card. Smokers often had their faces burned with their own cigarettes. One man who had been beaten for smoking…later broke down crying when he recounted the story—not for the physical pain he had suffered but the heartbreak of being assaulted by children.”

After some weeks of policing the market, Guled managed to escape and flee to Kenya, soon after marrying a girl named Maryam. In Dabaab, he had to register with the UNHCR and claim asylum “in order to be given a ration card, personal items like a blanket and a bucket….” Guled remained frightened that al-Shabaab’s infiltrators would recognize him. He had to struggle to find a job but eventually found day work as a porter. Since he was single, he’d not been given a plot of land and a tent but had to share space with a family. After some months, Maryam arrived, pregnant, and the two were united. Their lives and that of their two children were tenuous. Guled’s jobs are never adequate for supporting his family; he’s also addicted to “playing and watching football.” Eventually, Maryam gives up on their marriage and returns to Mogadishu with their children. Guled remains in Dabaab for fear that al-Shabaab will recognize him.

Another marriage—between Monday, who was born in the camp, and Muna, who was brought to the camp by her parents—falters because Muna became addicted to khat. Her addiction occurred after the birth of two children and after the family was put on “fast track” for resettlement in Australia. Fast track is an oxymoron; the time often stretches into years. Muna became so compromised by the khat that she tried to kill herself. Monday was left for a time raising their children. Rawlence’s inclusion of their story is obvious. As he notes, “Muna was perhaps the ultimate child of her generation. Raised in the limbo of the camp, the true daughter of Dabaab, Muna had relinquished responsibility for herself entirely to the testing mercy of events,” simply giving up. Yet, months and months later, after the two were reunited and Muna was pregnant again, their paperwork (which had been lost) finally resulted in their resettlement in Australia. Whether they would remain intact as a family—after so many years of disappointment—was doubtful.

In City of Thorns, Rawlence is anything but hopeful about the lives of the refugees he followed over several years. The book suffers from poor editing in a number of places, possibly because of an attempt to get it into print just as the refugee situation in other trouble spots of the world has gotten out of control. Still, Rawlence’s rage at the lackadaisical approach of donor nations (often the cause of the problems) about refugee crises is totally understandable and justified. As he concludes, “Ranged against the Kenyan desire to see Dadaab leveled was not just the law, but all the forces of human ingenuity and determination that had raised a city in this most hostile desert. Dadaab worked. It served a need, for the miracle of schools and hospitals and a safety net of food, and for respite from the exhaustion of the war. It had become a fact. Through the accumulated energy of the generations that had lived there it had acquired the weight and drama of place. It was a landmark around which hundreds of thousands oriented their lives. In the imagination of Somalis, even if not on the official cartography, Dadaab was now on the map.”






https://www.youtube.com/watch?v=fC4PsrOeOqE

Barnett’s Five Flows of Globalisation
Coercive Engineered Migration: Zionism's War on Europe (Part 3 of an 11 Part Series)
by Gearóid Ó Colmáin / January 21st, 2016

As German independent TV station K-TV has revealed, the current refugee crisis is most likely the brain child of the afore-mentioned US military grand strategist General Thomas PM Barnett. Barnett was a strategic advisor to former US Secretary of Defense Donald Rumsfeld and currently works with the Israeli military consultancy firm Wikistrat. Wikistrat are close collaborators with US Africa Command (Africom). Barnett’s books The Pentagon’s New Map and Blueprint for Action have had a major influence on US/Israeli global military geostrategies.

A former student of Vice-Admiral Andrew K. Cebrowski, former director of the Office of Transformations in the US Department of Defense, Barnett’s work focuses on integrating Cebrowski’s concepts of Network Centred Warfare, Colonel Boyd’s OODA loop theory, and Lind’s Fourth Generation Warfare, by ‘simultaneously seeking to relate their yin-and-yang interplay to the larger economic reality of globalization’s emergence as the dominant characteristic of today’s strategic environment’.1

Barnett divides the world into ‘functioning core’, ‘non-integrating gap’ countries and ‘seam states’. The first category of ‘functioning core’ countries includes Europe and North America, Russia, China, Japan, South Korea, India, Australia, New Zealand, South Africa, Argentina, Brazil and Chile. These are economies which are actively integrating into the global economy. This category is subdivided into ‘old core’ Europe, the USA and Japan and ‘new core’, Brazil, Russia, China and India.

The second major category is the ‘non-integrated gap’. This is made up of the Caribbean Rim, Andean South America, Africa, parts of the Balkans, the Caucasus, Central Asia, Southeast Asia and the Middle East. The third category contains some members of the first two. This category is referred to as the ‘Seam States’, countries which surround the Gap — such as Indonesia, Thailand, Pakistan, Turkey, Greece, Algeria, Morocco, South Africa, Mexico and Brazil.

The former Pentagon general has developed the theory of the ‘Five Flows of Globalisation’ — five flows which must come about if US Zionist imperialism is to dominate the world. These involve the free flow of money, security, food, energy and people. The ‘free flows’ theory means breaking down nation-state structures, thus freeing up resources for pillage by US multinational corporations. The inundation of Europe with immigrants from the Southern Hemisphere is a key feature of Barnett’s geo-strategic thinking. That is why it would be wrong to see the immigrant crisis from Libya and Syria as an unintended consequence of NATO policy as some form of unforeseen blowback.

Europe’s top demographers have known for some time that the Southern Hemisphere countries are experiencing a population boom and what that means for Europe’s relative population decline. German sociologist and demographer Gunnar Heihsohn published a major book on this topic, Söhne und Weltmacht: Terror im Aufstieg und Fall der Nationen (Sons and World Power: The Rise of Terror and the Fall of Nations). In his book Heinsohn argues that population youth bulges were the driving factor behind European colonialism and world conquest. From 1900 to 2000 the population of the Muslim World has grown from 150 million to 1,200 million, an increase of 800 percent. He argues that large families tend to produce ‘superfluous’ sons, who, unable to find work at home, emigrate.

Heinsohn contends that these youth bulges can lead to extreme violence as the young men, needing to carve out a place for themselves in the world, often tend to resort to violence in order to survive. This is one of the many factors driving the Islamic State. The youth bulge means boom time for imperialism’s merchants of death, who are harnessing youthful anger and hatred for the fomentation of proxy wars against geopolitical enemies. Heinsohn predicted that Europe would be overwhelmed with Southern Hemisphere youths by 2015.

The German sociologist notes that Islamism is more a tool which enables disaffected ‘superfluous’ sons to justify genocide, rather than an ideology which they necessarily believe in. In other words, once demographic balances have been restored, the Korans will be for sale in second-hand book shops. He gives the example of Spanish and Portuguese conquistadores in the 15th and 16th century who, needing to kill in order to carve out colonies in the New World, made convenient use of the Bible in order to absolve themselves from feelings of guilt.

Heinsohn notes that Europe’s immigration policy contrasts markedly with that of Canada, Australia and New Zealand. In Europe, there are no requirements that immigrants possess the qualifications needed by European economies, whereas in Canada and Australia those with the highest skills are given preference. The result of these policies is that 98 percent of immigrants in Canada have higher qualifications than the native population, whereas in Europe only 10 percent have higher qualifications. At the same time, the percentage of highly qualified Europeans leaving the continent for the Anglophone world is rising steadily every year. In this sense one can understand the logic behind Anglo-Saxon imperialism of flooding Europe with uneducated immigrants, while simultaneously siphoning off the continent’s brains and skills, thus ensuring Anglo-American/Zionist global hegemony. It is the ability to take into account these complex demographic realities which constitutes the importance of Thomas P.M. Barnett’s grand strategy of US globalisation.

In her book Weapons of Mass Migration: Forced Displacement, Coercion and Foreign Policy Kelly M. Greenhill argues that one of the reasons for Europe’s rapprochement with Libyan leader Muammar Gaddafi was the latter’s offer to stem the tide of African emigration to Europe. It would be erroneous, therefore, to suggest that the chaos wrought by the Arab Spring was unintentional. While many European politicians may have wanted to prevent a chaotic overflow of immigration into Europe, the imperial agencies behind the Arab Spring wanted just that.

The mass exodus of migrants/refugees is a central part of the globalisation of class war in accordance with the Pentagon’s long term objectives of global hegemony or “Full Spectrum Dominance”. What we are dealing with here is a well-planned strategy of chaos. To paraphrase Shakespeare, it is madness but there is method in it.

General Barnett’s Wikistrat are heavily involved in the development of ‘crowd sourcing’ and ‘crowd leveraging’ technologies. Investigative journalist Andrey Fomine, using the analyses of the Russian Academy of Sciences, has convincingly shown that most of the twitter entries encouraging refugees/migrants in Turkey to travel to Germany come from the UK, USA and Australia.

What we are witnessing here is a covert war being waged by the Anglo-Saxon Zionist elite against the German Federal Republic. The low-intensity war is using people as weapons to create conditions of social chaos in order to prevent Berlin’s inevitable rapprochement with Moscow. The migrants cannot possibly integrate in German society if the German economy does inot integrate with Eurasia, as Germany will have no viable market for its exports.

Barnett has predicted that Muslim immigrants in Europe will form their own Islamist political parties. In his book Blueprint for Action he quotes approvingly from Oliver Roy’s Globalized Islam, who claims that while in the past working class Muslims would have joined Marxist political movements: “There are now in the West only two movements of radical protest that claim to be ‘internationalist’: the antiglobalization movement and radical Islam. For a rebel, to convert is to find a cause”

Both of these movements, that of ‘human rights’ and ‘jihad’, represent petty bourgeois objections to the global order, but as they do not have a scientific analysis of the capitalist mode of production, they cannot possibly change that order. That is why they are both backed by the forces they supposedly oppose. Hence Barnett welcomes this development:

By channeling their sense of economic and social disconnecteness into political action, Muslims in Europe achieve connectivitiy with governments there that allow for their integration into political life on a peaceful basis while preserving a sense of cultural identity. (p. 292)

In other words, these movements will help increase and further entrench globalization, imperialism and class warfare.

In Europe’s case, this isn’t just the political release valve for both sides but an economic one as well: Europe needs workers to balance its rapidly aging population, while the Middle East needs to be able to siphon off a portion of its huge youth bulge for emigration. (p. 292)

Barnett predicts that the mass migration of people from the Middle East into Europe will lead to a ‘revival of ethnicity’. He argues that their immigration into Europe will generate a paradoxical attitude that will marry Muslim identity politics at home with European human rights evangelism in their countries of origin. He writes:

So when Muslims emigrate from the Middle East and immigrate into Europe, both regions respond to this transaction by becoming, respectively, more Islamic and more European in the near term, until such time passes that new rule sets emerge to define these profound forms of social(family ties), economic( remittances), and ultimately political connectivity. While the movement of Core citizens into the Gap occasionally force Core powers to defend them through military means…. a far more potent form of political connectivity comes in expatriate populations living inside the Core and agitating for their adopted nations to intervene militarily or diplomatically in their countries of origin in response to instability or political repression there. A good example of this, of course, is the role of Iraqi expatriates in the US decision to lead a multinational coalition into that country in 2003 to topple Saddam Hussein’s regime. (p. 294)

This is imperialist grand strategy accounting for demographics, economics, religion and ethnicity. But its core function is similar to the imperialist ideologies of the past: divide and conquer the workers of the world on the basis of religious and ethnic sectarianism, as well as bourgeois values such as human rights, thereby making the world “safe for capitalism” and global imperialist domination.

A recent example of expats mobilising for imperialist intervention in their own country was provided by demonstrations by Eritreans in Germany against President Issias Afwerki in 2012, with the predictable US NGO inspired slogan “Down, down dictator”.

Barnett predicts that Europe and Russia will disintegrate in the 21st Century, leaving only India and China to rival the United States. The US strategist clearly believes that coercive engineered mass migration into Europe, coupled with American occupation of Eastern Europe and the Balkans, will prevent Eurasian integration, whilst securing the US/Israeli control of Europe and the conquest of Africa, thereby establishing US/Israeli global supremacy in the 21st century.

The choreography and mediatisation of the ‘Refugees Welcome’ campaign bears a striking resemblance to ‘Je Suis Charlie’ campaign launched less than 30 minutes after the first reports of the Paris terrorist attack in January 7th were broadcast.

Many of the migrants are receiving welcome booklets packed with maps and information distributed by an NGO called w2eu,which stands for welcome to the EU.

One is reminded of the non-violent revolution rule book by Zionist ideologue Gene Sharp which was used to train activists in the US/Israeli fomented counter-revolutions in North Africa in 2011.
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