Good morning, worker drones: This Week In Mayhem
by Project Mayhem
Chavez threatens speculators with military force, currency crises will go global, CIA predator drones destabilize Pakistan, Af-Pak war for control of Central Asian energy, Secret negotiations on health care anti-democratic, China is #1 exporter, 'domestic extremism' (wtf!) team investigates Climategate, California requests bailout.
LAST WEEK IN MAYHEM
Venezuela's President Chavez warns price 'speculators'
Shoppers look at imported appliances in Caracas (9 January 2010)
Venezuelans have rushed to the shops to buy imported luxury goods
Venezuela's President, Hugo Chavez, has said troops will seize control of any business that raise prices in response to the devaluation of its currency.
He said there was no reason for prices to go up, and speculators' businesses would be handed over to the workers.
Okay this one is pretty interesting. Part of what we are expecting in 2010 and beyond is a combination of debt and currency crisis. That is, sovereign funding issues by governments around the world. Venezuela is relatively high up the list of sovereign CDS spreads, so it would only make sense that the beginnings of a currency crisis would occur there.
Sovereign CDS Spreads: 12/08/2009
What is happening in Venezuela is that there are a series of government-imposed exchange rates, which in a sense are sort of like capital controls. Chavez has created a dual-tier system of exchange rates, one for 'priority imports' and another for 'non-essential imports'. What essential occurred in Venezuela in the past few days was a 50% currency devaluation of the Bolivar for all practical purposes.
As many know, when we start get into 'period doubling' the math can become ridiculous very quickly. Cendas, a Venezuelan economic think tank, now predicts inflation will move past 33%. Which is sort of a ridiculous forecast, considering with the recent devaluation inflation is now well past 50%, so duh, obviously inflation is higher than 33%.
The comical part of this whole fiasco is that Chavez urged his supporters to "publicly denounce the speculator". Government cannot impose price controls. Or rather they can -- but it only makes things worse. Price controls create black markets. There are only two ways of rationing -- rationing by price, and rationing by lining up.
Practically speaking, governments can ban the export of food, or back the currency with oil revenues, or any number of other practical solutions that would be in the public interest. But the attempt to use the Venezuelan National Guard to enforce limits on speculation during a government devaluation will only make things worse. It will drive commerce underground, and will cause goods to disappear from the shelves, as the velocity of M0 and M1 narrow money increases in order for people (in particular the small Venezuelan middle class) to protect themselves from the currency devaluation.
These symptoms of currency crisis in Venezuela are the beginning of a larger global trend, and we expect currency and debt crises to spread worldwide between 2010 and 2013.
Af-Pak war for control of Central Asian energy
As mentioned before, the objective in Afghanistan is four-fold. To protect the drug trade (which runs into the hundreds of billions of dollars) , to control Central Asian oil and natural gas in Kazakhstan and Turkmenistan, to get access to the Pakistani deep-water ports, and to cause conflict with Russia and China (or better yet the entire SCO).
Pakistan's government has reported US drones killed ONLY civilians in 39 of 44 attacks during 2009. This includes attacks on weddings and so forth. People need to ask themselves here Cui Bono? Who benefits? The obvious geopolitical objective here is national destabilization. With Brzezinski in the drivers seat of US foreign policy in Central Asia, the purpose is to fracture Afghanistan and Pakistan into a series of micro-states which can be easily controlled during the next century. In order to do this, society must be destabilized, the government must collapse, and civil war must ensue. This is what we are heading towards in this region of the world.
Fortunately, people seem to be catching on to the cynical machinations of their 'leaders' , who care nothing for the public, and so we can only hope this trend of exposure of various national elites will continue thanks to the Internet.
Pakistan’s government reported US drones killed only civilians in 39 of 44 attacks on their country in 2009; with over 700 innocent civilians killed, according to Pakistan's most widely-read English newspaper. Pakistan has repeatedly publicly denounced the US attacks, making the US guilty of War Crimes as they do not have explicit permission from Pakistan’s government.
Afghanistan: only the first move in the grand chess game for control of Central Asian resources
So if anyone still thinks that the surge in Afghanistan is strictly intended to defeat the Taliban and the remnants of Al-Qaeda, it's time to think again. This is the new launching point for the eventual control of the Balochistan region. The threat of Iran becoming a major player because of its gas and oil resources and the desire of China to also become involved in that area must be neutralized at all costs.
The Military-Industrial Complex is Ruining the Economy
"War always causes recession. Well, if it is a very short war, then it may stimulate the economy in the short-run. But if there is not a quick victory and it drags on, then wars always put the nation waging war into a recession and hurt its economy."
You know about America's unemployment problem. You may have even heard that the U.S. may very well have suffered a permanent destruction of jobs.
Domestic extremism' (wtf!) team investigates Climategate.
As mentioned previously , with the unfolding of Climategate, we see the real purpose behind the global warming scam, and that is the implementation of a new international banking system complete with carbon taxes. Two interesting stories on this subject have emerged in the past week -- the first , that on a prominent liberal site with an anonymous comment suggested executing or imprisoning climate 'deniers'.
We must understand this sort of thinking is the root of fascism -- the all or nothing politics behind some of the most destructive movements of the past century. The complete sublimation of individuals to a movement which gives meaning and purpose, and the expensive of destruction of individuality This is only possible because of the atomized and fragmented individual seeking meaning from a larger social movement-- as characterized by Hannah Arendt in her 1951 work The Origins of Totalitarianism.
Death To Skeptics
A public appeal has been issued by an influential U.S. website asking: "At what point do we jail or execute global warming deniers." The appeal appeared on Talking Points Memo, an often cited website that helps set the agenda for the political Left in the U.S. The anonymous posting, dated June 2, 2009, referred to dissenters of man-made global warming fears as "greedy bastards" who use "bogus science or the lowest scientists in the gene pool" to "distort data."
The second interesting story was that instead of investigating the millions , if not billions in fraud committed by the corrupt scientists involved in the UN 'global warming' scandal, the resources of the investigation are being spent on uncovering the source of the 'leak' or 'hack' -- whichever it was -- related to the data coming out of the corrupt British CRU , affiliated with the UN IPCC.
This is rather hilarious If uncovering the objective truth is what is now meant by 'domestic extremism' , we are in for a wild ride over the next five years. Though we should have known this sort of Orwellian thought dystopia was coming, considering the sorts of laws being passed in the United States over the past several years. One which comes to mind is the Violent Radicalization and Homegrown Terrorism Prevention Act of 2007. Another law which frames the public as the enemy.
In a time of universal deceit - telling the truth is a revolutionary act.
Climategate investigated by national 'domestic extremism' team
Norfolk Constabulary continues its investigations into criminal offenses in relation to a data breach at the University of East Anglia. During the enquiry officers have been working in liaison with the Office of the Information Commissioner and with officers from the National Domestic Extremism Team. The UEA continues to co-operate with the enquiry however major investigations of this nature are of necessity very detailed and as a consequence can take time to reach a conclusion. It would be inappropriate to comment further at this stage.
California approaches funding crisis
A month or so back, we published latest sovereign CDS spreads showing the list of nation-states where we expected debt or currency crisis. As if on queue, as today with the Venezuelan currency devaluation, another contender on the list -- California -- has requested a bailout from the Federal Government (also known as Uncle Sugar).
The California budget crisis has been dragging on a long time, and probably could drag on a good bit longer, but we can only realistically expect the funding crises in various US states to worsen -- causing another classic example of problem-reaction-solution where more power is given to the Feds and central banks around the world. Ultimately power is flowing upward, away from the localities and states, towards the US Federal Government -- and ultimately towards global institutions such as the UN and the IMF.
California Requests Bailout from Uncle Sugar
Republican Gov. Arnold Schwarzenegger asked for $6.9 billion in federal funds in his state-budget proposal Friday and warned that state health and welfare programs would be threatened without the emergency help.
A Call to the People of the World to Support Iceland Against the Financial Blackmail of the British and Dutch Governments and the IMF
Birgitta Jónsdóttir is the leader of The Movement, a group within the Icelandic Parliament which has emerged from the mass struggle of Icelanders against the financial blackmail brought to bear against their country by the governments in London and The Hague, with the backing of the IMF, in the wake of the insolvency of three large Icelandic banks in the midst of the Lehman Brothers-AIG world financial panic of September-October2008. Birgitta Jónsdóttir is a courageous leader in the fight for national sovereignty, independence, dignity, and the economic well-being and future of her country.
Secret negotiations on health care anti-democratic
For those who are on one side of the idiotic partisan divide or the other, the hallucinated , ephemeral, and corrupt nature of politics should quickly become apparent. It is a show, and the politicians are the actors. Democracy is passé, and you have absolutely no control over your leaders.
As if to illustrate this point, we now see the negotiations on the trillion dollar bank-pharmaceutical-healthcare giveaway to corporate monoliths are occurring in secret, not exposed to the pesky light of the blogs. Expect these trends in government to continue, with transparency decreasing by the day, and authoritarian government becoming all the more brazen and tyrannical.
Secret negotiations on health care are scandalous
In what has to be the most despicable, sleazy and unethical display of political arrogance, President Barack Obama and Democrats have decided to bypass conference committees and continue to have the writing of the health care bill done in secret.
China , past , present, and future
And lastly, we should take a look at China. Over the past century, first with the Open-Door Policy, and later with Kissinger's Chinese policy in the 1960s and 1970s, US manufacturing has steadily and deliberately been given to China by US elites. This policy has finally come to fruition in 2010, where China has exceeded Germany as the world's largest exporter.
This will be important for the future of US policy in Central Asia, where both the Chinese and the Americans have a stake for the next 100 years.
China becomes biggest exporter
China has overtaken Germany as the world's biggest exporter of goods after exports rose for the first time in 14 months, data has shown.
THIS WEEK IN MAYHEM
Project Mayhem Research (PMR) is a DC/Baltimore-based grassroots think tank dedicated to exposing corruption worldwide. PMR is affiliated with Zerohedge.com, a popular and growing anti-corruption site, through contribution of free articles for the public. Topics include the politics of war and weapons systems, unexpected applications of cybernetics, the growing international surveillance state, global warming 'deindustrialization' economics, broad systemic international corruption , in-depth policy analysis of studies from bank and military funded research groups, genetic analysis and surveillance of pandemic influenza, corruption in the international gold market, the power structure and history of the global elite, and analysis of their political objectives expressed through monopolistic international finance capital (read: powerful banks) between now and 2050.
Sign up for free news updates and future subscription information--