Is the US Sacrificing Europe to Maintain Global Dominance?

 

Posted Sep 8, 2022 by Martin Armstrong

Vladimir Putin believes that Washington is sacrificing Europe to maintain global dominance. The United States has always been the world police, and the top country that others turn to in times of crisis. America’s post-World War II status left it as the financial capital of the world, and the dollar has remained the world’s reserve currency. Nothing has topped the dollar.

Europe attempted to create the European Union in an effort to prevent European conflicts, but it also created the euro to compete against the dollar. I explained various times how their attempts have failed. However, the euro is now beneath the dollar and on the decline. Nations maintain diplomatic relations, but only Schwab wants a one-world government as everyone is competing for global dominance.

Putin claims that the West rushed to place sanctions on Russia. There was indeed a rush to place sanctions on Russia despite Joe Biden himself coming out and admitting sanctions never work. Peace talks were never an option. Returning land or promising to curtail NATO was never an option. Sanctions and threats were immediately imposed. Why?

“The pandemic has been replaced by new challenges of a global nature, carrying a threat to the whole world, I’m talking about the sanctions rush in the West and the West’s blatantly aggressive attempts to impose their modus vivendi on other countries, to take away their sovereignty, to submit them to their will,” Putin told delegates at Russia’s Eastern Economic Forum in the port city of Vladivostok on Russia’s Pacific coast, as reported by CNBC.

It is true that Europe is facing the brunt of these sanctions as they sacrificed their main supplier of energy to save a nation with a GDP of roughly only $200 billion. Europe did not want to allow Ukraine to join the euro, and they had no interest in the country prior to this conflict. The hatred for Russia runs deep in Europe, especially in Germany after Russia took hold of the east after the last World War. The politicians are certainly old enough to remember when Germany was split in two until 1989. There is a reason Russia’s integral support for the axis powers during World War II is diminished in Western history books.

Putin went on to say that the standard of living in Europe and overall social and economic stability was “being thrown onto the fire of sanctions.” The United States has been eager to sanction Russia since the war in Syria began. Obama tried but failed to kick Russia out of the SWIFT system in 2014, with Christine Lagarde offering her support. Zelensky, who rand the NYSE bell this week remotely, admitted that he needed America to place harsh sanctions on Russia to accelerate the war.

“So far, I think that the United States of America is the accelerator of the sanction policies and I think they do more than any other country. And this is the way it should be because they are the most powerful country right now. I see the same support with respect to sanctions from the United Kingdom,” Zelensky told reporters at Fox in May.

The dollar remains strong and is the last safe haven. The war in Ukraine has only promoted capital to rush into the dollar. So is Europe “being sacrificed in the name of preserving the US dictatorship in global affairs,” as Putin claims? Europe will suffer more than the United States due to these sanctions. In fact, had Biden not eliminated domestic oil production, the US would not be facing an energy crisis at all. One thing is clear – the support to Ukraine is not an act of kindness. The invisible hand is at play

Interest Rate & Currency Pegs

Posted Jun 13, 2019 by Martin Armstrong

QUESTION: Martin,

I went over three blogs this morning (both public and private); they are The FED Between a Rock & a Hard Place, Manipulating interest rates & Public vs Private Interest Rates. A common theme of the FED possibly pegging interest rates and inflation. My question is: If the FED is induced to peg rates at artificially low levels and the traditional method of combating inflation is raising rates, something must give, so are metals and commodities getting ready for “prime time?”

CF

ANSWER: Behind the curtain the system of pegging rates, as I have stated, is viewed substantially differently than QE. The rates on the U.S. debt will be pegged, but not the Fed funds rates. They will be able to raise rates to the marketplace, but the bonds will be “pegged” like the Swiss attempted to “peg” the franc/euro.

This is a hybrid interest rate system that would eventually collapse as all pegs do. But it will allow, initially, for a bifurcation of rates.

They REALLY REALLY REALLY REALLY REALLY do not want me to talk about this publicly.

This is feeding into what we see coming for the next wave. They realize QE has failed. They cannot allow rates to rise as it would blow out the budgets.

This is not a long-term solution. The interest rate peg collapsed in 1951 due to Korean War inflation.

Roosevelt's socialist agenda shifted power of interest rates to Washington DC. Fed raises interest rates to stop market bubbles in NY but harms the commodity regions

The Separatist Movements in Canada

Posted Dec 15, 2017 by Martin Armstrong

Many people are aware of the various attempts of Quebec to separate from Canada. What they are unaware of is the supporters of the Western Independence Party of Alberta. There has been an undertone of the separatist movement in Alberta which actually stems from the Great Depression usurpation of the Federal Reserve by Franklin D. Roosevelt.

Why is Western Canada separatist movement caused by Roosevelt’s usurpation of the Federal Reserve? Everyone looks to the United States and assumes whatever structure they adopt must be correct. The Euro was crafted because the USA has a single currency. They did not consolidate all the debts and that has created a nightmare.

So what is the link with the structural usurpation of the Federal Reserve? When the Fed was created, it was the solution to the Panic of 1907, which was set in motion by the disruption of the internal domestic capital flows caused by the San Francisco earthquake of 1906. The insurance companies were in New York. Consequently, the cash flowed to the West and a shortage developed in the East.

The original structural design of the Fed was to establish 12 branches to manage the capital flows domestically. Interest rates would decline where there was an excess of cash and rise where there was a shortage. This, they believed, would cause capital to move between the branches to balance the national capital flows and economy.

When Roosevelt comes to power, he wanted to control the economy for his socialist agenda. He usurped the power of interest rates to Washington DC. He, therefore, abandoned the structural design of the Fed and ever since the capital flows have been concerned internationally, not domestically.

As a result, the regional problems have resurfaced. The central bank raises interest rates to stop real estate or stock market bubbles in New York and that harms the commodity regions. When commodities have boomed, the financial regions are normally suppressed. We have called this the Texas-New York arbitrage.

What is resurfacing is the regional differences within Canada as well as the United States. One-size fits all of the interest rates pits East v West in both Canada and the United States. Farmers and miners are forced to pay higher interest rates when their economies are declining because of speculative booms in Toronto or New York.

This is the root cause of the regional separatist movements we are witnessing in Canada.