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Economic Terrorism Against Russia Intensifies
The Russian ruble fell a further 7% Monday. What is the “reason” cited in the Corporate media for this latest, further plunge in its “value” (i.e. exchange rate)? An “economic report” which shows that Russia’s economy is shrinking. Here we see the pattern of the economic terrorism perpetrated by the One Bankexposed.
In 2010; the One Bank decided to destroy the economy of Greece. It did so for several reasons. It wanted to “make an example” of Greece for all the other European governments to see. This was deemed essential when (tiny) Iceland successfully broke-free of the control of this crime syndicate after the Crash of ‘08, and reclaimed its own sovereignty. It was not about to allow other European governments to follow that example, and begin to assert their own independence.
It also wanted to test its market-rigging capabilities from merely manipulating markets in order to destroy particular economic sectors, or corporations, to full-fledged economic terrorism: destroying nations(economically) with illegal market-rigging on a scale never before witnessed. Its modus operandi has been described in more detail previously, so the mechanics will only be summarized here.
In the case of the attack on Greece, because it shares a currency with other European nations; the One Bank could not use currency-manipulation as its tool of destruction (as it is presently doing against Russia). Instead, it launched its economic terrorism at the debt market of Greece.
As regular readers know; in fundamental terms the economy of Greece in 2010 was very similar to that of the United States – except obviously on a dramatically smaller scale. Like the U.S.; Greece was/is hopelessly insolvent. Like the U.S.; Greece had grossly over-invested in military spending and infrastructure, which was the primary means by which both nations became hopelessly insolvent.
But in 2010; the U.S. was (according to the Corporate media) already in the midst of “an economic recovery”: an exercise in economic mythology which is now six years long, and counting. Greece’s economy, on the other hand, with the same economic fundamentals as the U.S., suddenly took a nose-dive. Interest rates on Greece’s debts started to soar. As previously explained; it is no more difficult for the One Bank to manipulate interest rates than it is for these banksters to manipulate currencies. As Greece’s interest rate (on its gigantic debt) was pushed higher and higher, naturally this caused severe economic damage.
As the economic damage intensified; the Corporate media cited this economic damage as the “reason” for even further upward movement (manipulation) of Greek interest rates, doing still further economic damage. It was (literally) a vicious circle of crime. To put the criminal manipulation of Greece’s interest rates into perspective, if U.S. rates were driven/manipulated to a similar level; the U.S. would have to do the following merely to make interest payments on its debt:
a) Increase all taxation by 50%
b) Shut down the entire government (including mothballing the entire military)
Of course increasing all taxes by 50% and shutting down the entire government (for real, not anotherpretend “shut-down”) would do so much enormous, additional damage to the economy that even with those measures, it would be unable to continue to making interest payments on its debts for more than a few weeks. In short; if U.S. interest rates were ever manipulated to a similar level, it would experience an identical meltdown to Greece (except a hundred times larger). What happened with Greece was not “an economic collapse”, just pure economic terrorism.
With India, when the One Bank was desperate to blackmail India’s government into blocking gold-imports into that nation, it did use an attack on India’s currency. As India’s currency fell in value, we were told (by the Corporate media propaganda machine) that this was because of a rising “current account deficit”.
However, as with the vicious circle-of-crime directed against Greece; the lower the banksters drove the value of the Indian rupee with their illegal manipulation, the larger its current-account deficit grew, automatically. The evidence of the previous economic crime committed against India’s rupee was cited as the “reason” for more economic crime against India.
Supposedly, according to the propaganda machine; the real “culprit” for India’s current-account deficit was (surprise! surprise!) India’s gold imports. As soon as India’s government succumbed to blackmail, and blocked its gold imports, the rupee (magically) began to rise in value, and the “current-account crisis” dissipated.
Of course, as explained in previous commentaries; gold is a currency itself. Thus it is (was) mathematically/economically impossible for gold imports to contribute to a current-account deficit, since a current-account deficit is (essentially) a currency deficit. Obviously no nation can create a “currency deficit” for itself by importing a currency (gold).
Now, once again, we see the same pattern with the economic terrorism of the One Bank. It began with a sudden attack on the ruble, for more (fabricated) “reasons”, all conveniently supplied by the Corporate media. While a plunge in oil prices supposedly “devastated” Russia’s economy; in the U.S. – land of the mythological shale-oil “boom” – it claimed to have experienced its largest quarter of “economic growth” in 12 years.
However, after fabricating the original “reason” for the ruble’s decline, from that point onward (as with Greece, as with India) the economic terrorism itself became its own “reason” for further declines in the ruble. Obviously if the currency of any nation is (suddenly) cut in half in value this will cause an economic contraction.
The reality is that we are seeing nothing more with Russia’s “currency crisis” than a self-fulfilling prophesy (of economic terrorism). The more the One Bank attacks the ruble, the greater the damage to Russia’s economy, causing the drones of the Corporate media to claim that the ruble “deserves” to continue falling still lower.
Meanwhile, a comparison of the economic fundamentals of Russia and the U.S. make the existence of this economic terrorism crystal-clear. As recently noted by Simon Black; Russia’s financial system is ten times as strong as that of the U.S. (in terms of the reserve ratios of its banks). Furthermore, its national interest rate is at 17%, while the (ultra-fraudulent) U.S. interest rate is permanently frozen at 0%.
In any rational/legitimate world; the exchange rate of the two nation’s currencies would be precisely reversed. Indeed, as regular readers are already well aware; the U.S. government has already hyperinflated its own currency. The chart below is unequivocal:
It shows a currency well past the point-of-no-return, in terms of triggering a hyperinflation spiral. With the U.S. dollar already fundamentally worthless, based on three different, objective metrics; every “fall in value” of any other currency versus the U.S. dollar is prima facie evidence of yet another currency crime by the One Bank.
As knowledgeable readers are well aware; even our blind/deaf/dumb financial regulators were recently forced to acknowledge the “disgusting” serial manipulation of currencies by the Big Banks (i.e. the One Bank). It is mind-numbingly obvious that in a global financial system ruled by a cabal of psychopathic currency-manipulators that every “currency crisis” experienced by a sovereign government today will be (at least) triggered by this crime syndicate – if not (illegally) manufactured in its entirety.
We’re not seeing “a currency crisis” in Russia’s economy. Rather, we are witnessing the most-extreme manifestation of economic terrorism yet perpetrated by the One Bank. And it’s continuing to get worse.
But it also must be noted that despite appearances, and the self-serving hype of the Corporate media; this Western financial crime syndicate is anything but omnipotent. Yes, it succeeded in destroying Greece’s economy, but that was after it failed to maintain its choke-hold on Iceland.
Its economic terrorism against India didn’t merely fail, it backfired. While having little long-term impact on India’s gold consumption (gold imports) thanks to rampant gold-smuggling; its currency blackmail against India’s government produced a series of unintended/undesirable consequences which were so unpalatable to the One Bank that it reversed itself, and allowed India’s government to normalize its gold market again.
Now, while the short-term damage to Russia’s economy is undeniable; we’re seeing indications that over the longer term that this, too, will be another failed exercise in economic terrorism by the One Bank. It begins with how this attack has caused Russia and China to forge even closer political and economic ties. China has essentially offered to back-stop Russia’s economy, and (with its large war-chest of U.S. dollar instruments) even the One Bank dare not launch its economic terrorism at that target.
We’re now also seeing Russia setting up a parallel electronic currency system, outside of the “SWIFT” electronic straitjacket which the One Bank uses to bully most of the nations of the world into economic compliance with the demands of these financial terrorists. If that new system succeeds (when it succeeds?) it will suddenly appear to be a very tempting financial “life-boat” which other nations may wish to embrace – to attempt to escape the One Bank’s economic choke-hold on their own economies.
The stakes here could not be more important. It is utterly imperative to the Rest of the World that Russia not be economically destroyed (and thus bludgeoned into submission) by these financial psychopaths. Conversely, it is of equal importance to the One Bank that its efforts to destroy Russia’s economy be successful.
Once a community (in this case the international community) sees someone stand up to the resident Bully – successfully – not only does it embolden other members of that community, it brings them together. United we stand. Divided we fall. Today, we are all “Russians”.
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Palestinians won't pay their bills.
What else is new?
Has Arafat's health condition changed?
what a DOLT
For those keeping track of these things...
Generalissimo Francisco Franco is still dead.<--- Putin will bend over and take it.
<--- Putin will unleash a can of whoop-ass soon.
you both need to get a room-smoking crack and posting here when you could both be 'doing' each other in private, is a waste of our time
Putin is getting hit with the can of whoop-ass quicker than he can duck or bend over.
you both need to get a room-smoking crack and posting here when you could both be 'doing' each other in private, is a waste of our time
Flawed analysis.
Debt service of already outstanding bonds did not change from when they were issued.
Instead, Greece reduced that cost by giving holders of those bonds a haircut.
Presently Greece has the opportunity to enter the market and retire the generally low cost debt at a steep discount.
Russian ruble declines because Russians are selling rubles to get the money out of the country. No one else would hold rubles in the first place. Only thing to be purchased with rubles is cabbage and turnips.
maybe you should take course in economics math
and geography...
i think you confused Russia with one of those rectum countries like Lithuania Estonia etc...
the smaller the country the more the oil gas it gets from Russia
Yet it hates it like USA wants them to...
Economic Math is that when there sellers of something with very limited use - rubles - the price will decline. Ruble is only useful for buying cabbage and turnips. Maybe you can get a Russian girlfriend. Don't bring out or export as maintenance price will be in USD or Euro.
If the world got an enima, it would be inserted in rectum of Russia, whereever Putin is squatting.
Athens gets the douche.
So many morons. No wonder we are in the mess we're in.
I just knew your anal obsessions had a basis!
Europe isn't going to tolerate the U.S. -led sanctions on Russia much longer... they can't afford to do so.
http://www.globaldeflationnews.com/european-union-continues-to-suffer-fr...
Not quite, countries like France can't tolerate it because it's killing exports. It's hurting Germany too but the Merkel posse thinks they can ride the tiger. The EU economy is in a tailspin and will crash unless the smaller countries start calling Brussels bluff.
The end justifies the means.......where have I heard that before???
I wonder what will happen when the tables are turned. Will there be any mercy? I doubt it.
"It shows a currency well past the point-of-no-return, in terms of triggering a hyperinflation spiral."
There may eventually be a hyper-inflationary spiral, but the biggest deflationary debt destruction spiral will have to come first. You see, the dollar wil get incredibly stronger relative to the currencies of the rest of the world. It can't be helped. While the U.S. would probably like to debase the dollar, the collapsing economies of the rest of the globe will prevent it from doing so.
The biggest credit bubble in the history of the world just burst...
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
"You see"...?
No, I don't... But here is what IS:
Your kind said the EXACT same thing in 2008 - Prechter, Hochberg, et al. How did that turn out...?
the war has started. decentralize this paper. point the long guns toward bank one, goldman and the saudi / us / isis empire
Greece and Russia being targeted by the Western imperialismGreece targeted itself. They lived high on the hog after they let themselves into the euro by hiring Goldman to cook the books for them. Greece herself played a significant part in the mess she now is in. Maybe should deal in another and more swift and driect way with your own politicians...?
Greeks have always played a double-triple game between Moscow, Washington and Brussels. And they've always detested Pax-Americana and toyed with cutting away from it, but took on EU membership to see how far it would allow Athens to load-up with debt, again, before they tried to pull-out. But breaking up is hard to do, and Washington and Berlin will make it very hard to stay or to go. The price of their debt duplicity. I wouldn't call that an attack on Greece, more like quid-pro-quo and payback.
If however Greece were to exit and invite some 'Eurasian' trade partners in we might see actual attacks and an engineered domestic implosion thereafter. Greece will not be allowed to do that any more than Iceland would have been permitted to invite in Russia in, in 2008, if the bankers had not relented. Iceland is lucky they only threatened to invite the Russians in.
What does Greece think it's going to do? Is it going to Ally itself with Libya for cheap oil, thus giving their allied throat-cuts a base of operations in SE Europe?
As shitty as it is the geography and resource base flow of today requires Greece stays with the Euro or lose half century of economic development, and still end up a failed state if they left.
Correct. Russia & China need to make an example of Greece by rescuing it from the euro straitjacket.
This is in direct contrast to the EU/ECB/IMF/Merkel etc trying to make an example of Greece by punishing them.
Russia was supposed to be rescuing Cuba.
China was rescuing Venezuela.
Now they should take on Greece?
Expect the same result as from the previous attempts.
Greece knows that!
Things changed since. But CIA knows that too. So Merkel will not let Greece go,
they need that part of land,
Imagine if Greece leaves EU and start controlling its own territory?
And charging EU trucks trains ships, going through to middle east...
And imagine what else they can start charging Greek way, like tax for German EU owned property...
list is long...
The example might not be the one they want if Greece keeps going in the same direction it is now...