Financial Collapse Leads To War

Tyler Durden's picture




 

Submitted by Dmitry Orlov via Club Orlov blog,

[With the new year, a sea change seems to have occurred in the financial markets: instead of “melting up,” the way they used to, they have started “melting down.” My original prediction is that this will lead to more armed conflict. Let's see if I was right.]

Scanning the headlines in the western mainstream press, and then peering behind the one-way mirror to compare that to the actual goings-on, one can't but get the impression that America's propagandists, and all those who follow in their wake, are struggling with all their might to concoct rationales for military action of one sort or another, be it supplying weapons to the largely defunct Ukrainian military, or staging parades of US military hardware and troops in the almost completely Russian town of Narva, in Estonia, a few hundred meters away from the Russian border, or putting US “advisers” in harm's way in parts of Iraq mostly controlled by Islamic militants.

The strenuous efforts to whip up Cold War-like hysteria in the face of an otherwise preoccupied and essentially passive Russia seems out of all proportion to the actual military threat Russia poses. (Yes, volunteers and ammo do filter into Ukraine across the Russian border, but that's about it.) Further south, the efforts to topple the government of Syria by aiding and arming Islamist radicals seem to be backfiring nicely. But that's the pattern, isn't it? What US military involvement in recent memory hasn't resulted in a fiasco? Maybe failure is not just an option, but more of a requirement?

Let's review. Afghanistan, after the longest military campaign in US history, is being handed back to the Taliban. Iraq no longer exists as a sovereign nation, but has fractured into three pieces, one of them controlled by radical Islamists. Egypt has been democratically reformed into a military dictatorship. Libya is a defunct state in the middle of a civil war. The Ukraine will soon be in a similar state; it has been reduced to pauper status in record time—less than a year. A recent government overthrow has caused Yemen to stop being US-friendly. Closer to home, things are going so well in the US-dominated Central American countries of Guatemala, Honduras and El Salvador that they have produced a flood of refugees, all trying to get into the US in the hopes of finding any sort of sanctuary.

Looking at this broad landscape of failure, there are two ways to interpret it. One is that the US officialdom is the most incompetent one imaginable, and can't ever get anything right. But another is that they do not succeed for a distinctly different reason: they don't succeed because results don't matter. You see, if failure were a problem, then there would be some sort of pressure coming from somewhere or other within the establishment, and that pressure to succeed might sporadically give rise to improved performance, leading to at least a few instances of success. But if in fact failure is no problem at all, and if instead there was some sort of pressure to fail, then we would see exactly what we do see.

In fact, a point can be made that it is the limited scope of failure that is the problem. This would explain the recent saber-rattling in the direction of Russia, accusing it of imperial ambitions (Russia is not interested in territorial gains), demonizing Vladimir Putin (who is effective and popular) and behaving provocatively along Russia's various borders (leaving Russia vaguely insulted but generally unconcerned). It can be argued that all the previous victims of US foreign policy—Afghanistan, Iraq, Libya, Syria, even the Ukraine—are too small to produce failure writ large enough to satisfy America's appetite for failure. Russia, on the other hand, especially when incentivized by thinking that it is standing up to some sort of new, American-style fascism, has the ability to deliver to the US a foreign policy failure that will dwarf all the previous ones.

Analysts have proposed a variety of explanations for America's hyperactive, oversized militarism. Here are the top three:

1. The US government has been captured by the military-industrial complex, which demands to be financed lavishly. Rationales are created artificially to achieve that result. But there does seem to be some sort of pressure to actually make weapons and field armies, because wouldn't it be far more cost-effective to achieve full-spectrum failure simply by stealing all the money and skip building the weapons systems altogether? So something else must be going on.

 

2. The US military posture is designed to assure Americans of their imagined “full-spectrum dominance” over the entire planet. But “full-spectrum dominance” sounds a little bit like “success,” whereas what we see is full-spectrum failure. Again, this story doesn't fit the facts.

 

3. The US acts militarily to defend the status of the US dollar as the global reserve currency. But the US dollar is slowly but surely losing its attractiveness as a reserve currency, as witnessed by China and Russia acting as swiftly as they can to unload their US dollar reserves, and to stockpile gold instead. Numerous other nations have entered into arrangements with each other to stop using the US dollar in international trade. The fact of the matter is, it doesn't take a huge military to flush one's national currency down the toilet, so, once again, something else must be going on.

There are many other explanations on offer as well, but none of them explain the fact that the goal of all this militarism seems to be to achieve failure.

Perhaps a simpler explanation would suffice? How about this one:

The US has surrendered its sovereignty to a clique of financial oligarchs. Having nobody at all to answer to, this American (and to some extent international) oligarchy has been ruining the financial condition of the country, running up staggering levels of debt, destroying savings and retirements, debasing the currency and so on. The inevitable end-game is that the Federal Reserve (along with the central banks of other “developed economies”) will end up buying up all the sovereign debt issuance with money they print for that purpose, and in the end this inevitably leads to hyperinflation and national bankruptcy. A very special set of conditions has prevented these two events from taking place thus far, but that doesn't mean that they won't, because that's what always happens, sooner or later.

 

Now, let's suppose a financial oligarchy has seized control of the country, and, since it can't control its own appetites, is running it into the ground. Then it would make sense for it to have some sort of back-up plan for when the whole financial house of cards falls apart. Ideally, this plan would effectively put down any chance of revolt of the downtrodden masses, and allow the oligarchy to maintain security and hold onto its wealth. Peacetime is fine for as long as it can placate the populace with bread and circuses, but when a financial calamity causes the economy to crater and bread and circuses turn scarce, a handy fallback is war.

 

Any rationale for war will do, be it terrorists foreign and domestic, Big Bad Russia, or hallucinated space aliens. Military success is unimportant, because failure is even better than success for maintaining order because it makes it possible to force through various emergency security measures. Various training runs, such as the military occupation of Boston following the staged bombings at the Boston Marathon, have already taken place. The surveillance infrastructure and the partially privatized prison-industrial complex are already in place for locking up the undesirables. A really huge failure would provide the best rationale for putting the economy on a war footing, imposing martial law, suppressing dissent, outlawing “extremist” political activity and so on.

And so perhaps that is what we should expect. Financial collapse is already baked in, and it's only a matter of time before it happens, and precipitates commercial collapse when global supply chains stop functioning. Political collapse will be resisted, and the way it will be resisted is by starting as many wars as possible, to produce a vast backdrop of failure to serve as a rationale for all sorts of “emergency measures,” all of which will have just one aim: to suppress rebellion and to keep the oligarchy in power. Outside the US, it will look like Americans blowing things up: countries, things, innocent bystanders, even themselves (because, you know, apparently that works too). From the outside looking into America's hall of one-way mirrors, it will look like a country gone mad; but then it already looks that way. And inside the hall of one-way mirrors it will look like valiant defenders of liberty battling implacable foes around the world. Most people will remain docile and just wave their little flags.

But I would venture to guess that at some point failure will translate into meta-failure: America will fail even at failing. I hope that there is something we can do to help this meta-failure of failure happen sooner rather than later.

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Thu, 01/14/2016 - 22:14 | 7048973 Itchy and Scratchy
Itchy and Scratchy's picture

Leads to war? Just what the hell has been going on for the past 20 years?

Thu, 01/14/2016 - 22:18 | 7048981 Seek_Truth
Seek_Truth's picture

Answer: Battles.

When you see WW3, you'll know it.

I expect it to start in earnest this Spring.

Thu, 01/14/2016 - 22:22 | 7048996 Not Victor E. O...
Not Victor E. Overbanks's picture

Good to see someone else calling the Boston Bombings what they were... a HOAX.

Thu, 01/14/2016 - 23:12 | 7049006 BuddyEffed
BuddyEffed's picture

It's my guess that failed states with significantly reduced populations and less mouths to feed and less people to clothe and teach and supervise too, can then export more of their resources to the corporate/oligarchy profit streams than if that country was still an intact state that has to look after a larger population.

And therein is the motive for desired failure.

Thu, 01/14/2016 - 23:34 | 7049177 Soul Glow
Soul Glow's picture

The BoJ looks like they are all out of arrows.  That's not good for their chances of escaping war.

Fri, 01/15/2016 - 00:20 | 7049251 NidStyles
NidStyles's picture

That this article says the Americans want this mess is quite offensive. This house of cards was set up by the Tribe, not Americans. 

Fri, 01/15/2016 - 00:30 | 7049297 Soul Glow
Soul Glow's picture

The royal Brits have been pissed they got beat back a few hundred years ago.  There's that.

Fri, 01/15/2016 - 02:52 | 7049460 ali_baba
ali_baba's picture

The juws just traded in the Brits for the Americans. Both have ultimately been used just as the browns were used by the whites. It's a hierarchy at the top of which sits the jude. They are preparing to jettison the u.s now as well but not before assuring their destruction by putting them against Russia and China. 3 birds, no stones.

Fri, 01/15/2016 - 04:43 | 7049549 giggler321
giggler321's picture

surveillance infrastructure only works when there is power and communication both of which is unpredicable in such situations.

Fri, 01/15/2016 - 06:56 | 7049680 Huh Reeeally
Huh Reeeally's picture

Precisely. The Fed and the Pentagon aren't failing, they are proceeding according to plan. Attempts to portray them as bumbling policy idiots is a charade. We've been down this path twice before in the last 100 years, the BIS and Central Banks are busy playing both sides of the trade, same as it ever was, only this time they can effeciently cull - nuke - the population and setup utopia according to the Georgia Guidestones. Or so they think.

We'll see how people respond when our value as people, our very existence, is threatened in a manner that all can plainly see, not just alt media. Aaah F^#k, what am I thinking, most will happily do as their told..... but maybe 10% or more will make a stand for humanity, and that's really the question/decision facing us all.

Thu, 01/14/2016 - 22:27 | 7049007 WTFRLY
WTFRLY's picture

Joo World Order loading ... ... ... ... ... 47%

Thu, 01/14/2016 - 22:57 | 7049100 Veriton
Fri, 01/15/2016 - 00:22 | 7049282 Pabloallen
Pabloallen's picture

Use your words .......

Fri, 01/15/2016 - 02:31 | 7049450 Veriton
Veriton's picture

The people who are orchestrating this economic collapse and artificial war are religious nutjobs, and their BRICS-fronted New World Order has political, economic, and religious aspects. To ignore any of those components is to be uninformed. If you have so far ignored the religious aspect like I did until a few months ago, here is a good primer on what to expect: “End Times” Programming [1.3]

Fri, 01/15/2016 - 04:25 | 7049541 Baron Munchausen
Baron Munchausen's picture

entirely wrong.

 

just hope we all survive the near miss asteroid in march.

Thu, 01/14/2016 - 22:47 | 7049070 Number 9
Number 9's picture

Wow I have to admit, I am impressed. This guy totally nailed it.

Thu, 01/14/2016 - 23:15 | 7049124 Radical Marijuana
Radical Marijuana's picture

Yes, a Number 9 article,

given some scale to ten.

My favourite statement:

"at some point failure will translate into meta-failure"

Successful capacities to back up lies with violence still never stops those lies from being false. Rather, the longer that sociopolitical systems are able to continue to enforce frauds, the more psychotic the overall situation becomes:

FINAL FAILURE FROM

TOO MUCH SUCCESS!

Fri, 01/15/2016 - 01:07 | 7049337 conscious being
conscious being's picture

My favorite line - "Russia, on the other hand, especially when incentivized by thinking that it is standing up to some sort of new, American-style fascism, has the ability to deliver to the US a foreign policy failure that will dwarf all the previous ones."

Big applause to Dimitri Orlov.

Fri, 01/15/2016 - 05:27 | 7049528 luckylongshot
luckylongshot's picture

While he nailed it he did not go far enough. That the system was going to collapse was clear from the moment the so called "Fractional Reserve" banking system was set up by the Rothschilds. The system is nothing but an elaborate scam designed to asset strip the public in countries that use it. Private banks (According to the Bank of England ,2014) do not lend based on fractions of deposits- instead they invent money which they loan and then account for as being a deposit. This means money is created out of thin air (counterfeiting)- then accounted for as being deposits (Fraud.the big 4 accounting organisations are criminal) then the debt is loaded onto the public either because they borrow or thanks to the state borrowing for them (This is an elegant form of Slavery) and the system collapses if borrowings are repaid (just like a Ponzi scheme).

What is astonishing is the level of corruption and stupidity amongst our leaaders and journalists- who have let this go on for so long without saying anything about it.

Thu, 01/14/2016 - 22:48 | 7049074 Jurgster
Jurgster's picture

Agree. Total HOAX. Like so many others. Besides, if financial collapse leads to war it's because our Wars in the Middle East led to financial collapse in the first place. Vicious cycle >> wp.me/p4OZ4v-2g9

Thu, 01/14/2016 - 23:01 | 7049114 FatTony7915726
FatTony7915726's picture

your links suck balls!

Fri, 01/15/2016 - 04:28 | 7049543 Baron Munchausen
Baron Munchausen's picture

boston bombings werent a hoax.  real lo-tech bombs.  real injuries.  

unless you think hundreds of doctors, nurses, emts, police, firefighters, etc etc all over boston and half a dozen area hospitals, and local news reporters doing stories for weks and months after were/are all in on it - in which case, seek psychiatric care.

 

On the other hand, those two brothers were very possibly patsies. 

 

But beware anyone claiming that there were no real injuries - it is fairly easy to check on the matter. 

Fri, 01/15/2016 - 00:26 | 7049289 123dobryden
123dobryden's picture

must laught, although you may be right

 

you remind me famous qoute from our czech movie: after WWII, comunist grab hold on power, believe it or not, there was a great shift forward with centraly planned economy, our motorcycles was one of the best in the world, our industry too, even comunists started to reform themselves, those were the greatest times of our nation, resemblying the time after WWI with the first republic, comunist even put the first satelite up there, this prosperity led to events of '68, called the Prague spring.

the story starts in '67, it is a comedy, the guy says "I give bolshevik 1 year max too" /before they are over/

well we all know what happened, summer '68 russian invasion,  20 years od comunist decay, mass emigration,100 thousands persecuted, to put salt into injury, after these 20 years we got another over 20 years of even bigger shit. so.....

so it is with every prediction, trends will always materialize, if you rational enough you can get it right but timing, is reserved only for geniusis or mere lucky, as if thousands says the same thing only with different timing one of them will certainly do it right

we all here know it is going to get ugly first, but it may drag on for years before WWIII starts, my guess is Europe is done, there was spring after WWII, there was summer, now we witness autumn, serious winter is coming, hope its not nuclear cold. If Russia wil survive this, it may bring peace and prosperity to Europe again,but as i said there is a deadly winter approaching here. loads of people are going to get masacred ina way never witnessed before, on a scale never witnessed in entire existence of our planet. Population here is not tough as our grand fathers were, they will panic

I am in netherland now, everyone is talking about it wherever i come /gym, coffee shop/ everyone except majority of dutch, they still live in denial

So for us it is important to stay calm and rational, dont get depressed on these bad news, as i see majority of people when they talk about this, there is always a way, we must and we will ADAPT AND SURVIVE protecting our loved ones..its hardcoded in our DNA, all our potential and limits, 

 

Fri, 01/15/2016 - 07:48 | 7049770 g speed
g speed's picture

if "they" are going to war they will do it without my sons and daughters---its the least I can do---

Fri, 01/15/2016 - 08:27 | 7049874 L_Estasi_dell_Oro
L_Estasi_dell_Oro's picture

Now I understand why the immigrants have relatively suddenly grown to become such a huge issue. They were always there, just not in such numbers. How was that caused.

 

Well, if the whole thing collapses, they will function as a lightning rod.

Let the common people fight against distractions in the form of other cultures.

 

Meanwhile, other parties wait silently until the storm is over. (and pick up where they left)
 

Fri, 01/15/2016 - 06:13 | 7049641 1033eruth
1033eruth's picture

Alright, since you dialed it downn to a season, how about your next prediction.  Who are going to be the participants?  

Thu, 01/14/2016 - 22:33 | 7049026 junction
junction's picture

Face the facts! The whole world is broke and the credit cards (2 trillion dollars in derivatives) are maxed out.  For circus, it is too bad we can't have cage matches between the presidential contenders to determine gets to be President for the NWO.  I put my money on Hillary beating Bernie in a cage match, she will fight dirty, she has nothing to lose, what with her terminal brain cancer.

Thu, 01/14/2016 - 23:00 | 7049110 IPA
IPA's picture

It isn't the debt thats the problem, it what the debt was used for,

Fri, 01/15/2016 - 01:17 | 7049353 conscious being
conscious being's picture

Terminal brain cancer? What, like former CIA Director William Casey?

"Iran–Contra affair

Hours before Casey was scheduled to testify before Congress related to his knowledge of Iran–Contra affair, he was reported to have been rendered incapable of speech during an operation to remove a brain tumor."

Wiki

Fri, 01/15/2016 - 00:59 | 7049331 Takeaction2
Takeaction2's picture

Over on the CNBC page....I was looking at the Asian Markets fall again.....THey come up with most incredible descriptions...

You ready for the one just now...

"Asian Stocks trim gains further..."

HAHAHAHAHAHA  Really? Asian markets are crashing again...  Can't they just tell it like it is....Like BLOOD BATH CONTINUES....

Fri, 01/15/2016 - 04:24 | 7049538 Baron Munchausen
Baron Munchausen's picture

its not a blood bath its a meta-correction.

Fri, 01/15/2016 - 06:24 | 7049654 snodgrass
snodgrass's picture

Perhaps the collapse of the dollar is to bring in a digital currency and complete the total enslavement of the population.

Fri, 01/15/2016 - 08:43 | 7049899 strangewalk
strangewalk's picture

Orlov is a Russian born US citizen and America hater of the highest order, just read his books. While many of his points are valid, like many rabidly anti-US sentiments expressed here they lack balance. Russia is just as messed up as the US if not more so. Then, look at Europe,  Japan, Latin America, Africa or the Middle East--all completely screwed up, sorry examples of failure at economics and governance. Or, you could move to China just to find out if the impending economic collapse there doesn't kill you before the god-awful poisoned environment does. Face it, the whole world is a festering, corrupt, hate and violence filled garbage pile and there are no safe spaces. As Solzhenitsyn said, the only way for us now--is upward. 

Thu, 01/14/2016 - 22:17 | 7048977 WernerHeisenberg
WernerHeisenberg's picture

Bring it on!  Seriously, I am starting to envy those crazy bastards who get to shoot people and blow things up while screaming Ally Hu's Snackbar!

Thu, 01/14/2016 - 22:25 | 7049003 Chupacabra-322
Chupacabra-322's picture

"Currency Wars, Trade Wars, World Wars."
-Gerald Celente.

Thu, 01/14/2016 - 23:34 | 7049178 bunnyswanson
bunnyswanson's picture

Meet your new regional govt, nonelected sustainability problem brach - Regional Transportation Plan/Sustainable Communities Strategy

SCAG war

http://scagrtpscs.net/Pages/DRAFT2016RTPSCS.aspx

SCAG's half trillion dollar plan to convert Southern California into the Southern California Megaregion

https://www.scag.ca.gov/about/Pages/GoverningStructure.aspx

"

Policy Committees and Task Forces

As a Regional Councilmember, you will have a voting seat on one of SCAG's three major policy committees:

  • Community, Economic and Human Development Committee (CEHD)
  • Energy and Environment Committee (EEC)
  • Transportation Committee (TC)

Members of the Regional Council are appointed to one of the policy committees for two-year terms. Most of the discussion and debate on the "nuts and bolts" of a policy issue occurs in the committees. Issues to be considered by the Regional Council must come through one or more of the committees. As opposed to Regional Councilmembers, members of policy committees do not have to be elected officials."

Thu, 01/14/2016 - 22:32 | 7049020 Omega_Man
Omega_Man's picture

need war to rid the world of evil that resides in USA and Israel....

Fri, 01/15/2016 - 01:20 | 7049359 cheech_wizard
cheech_wizard's picture

The "axle" of evil...

Standard Disclaimer: If that phrasing ever catches on, attribution, damn it.

Thu, 01/14/2016 - 22:33 | 7049025 sgorem
sgorem's picture

HISTORY 101................no reserve currency status(PETRO DOLLAR)=WWIII...................next question please.........

Thu, 01/14/2016 - 22:42 | 7049028 VWAndy
VWAndy's picture

That stall thing? Think about it. Just a few days without any honest work and everything stops. Including the printing presses and the war machine.

 That was wierd it posted without even a click. WTF!

Thu, 01/14/2016 - 22:40 | 7049040 surf0766
surf0766's picture

I think war wil lead to financial collapse

Thu, 01/14/2016 - 23:12 | 7049134 Uchtdorf
Uchtdorf's picture

We have had war and are still at war and the financial collapse is happening, in the form of a huge national debt. The collapse is here, it's just in slow motion, propped up by all the debt.

Fri, 01/15/2016 - 00:24 | 7049286 Pabloallen
Pabloallen's picture

Too late

Thu, 01/14/2016 - 22:40 | 7049041 Ms No
Ms No's picture

"..the fact that the goal of all this militarism seems to be to achieve failure"

This theory seems to carry over to how the US's economy is run.  It appears to be being systematically destroyed.

Thu, 01/14/2016 - 22:42 | 7049049 Jim in MN
Jim in MN's picture

In Soviet Amerikkka, collapse finances YOU.

Thu, 01/14/2016 - 22:43 | 7049058 ebworthen
ebworthen's picture

Trump is killing it in the GOP debate.

Jeb Bush falling down all over again.

WTF is John Kasich still doing there?

Cruz cruising, just like a Lawyer (ick).

Yes, the U.S. M.I.C. leading us to war.

Hand in hand with the Banksters!

Thu, 01/14/2016 - 22:52 | 7049086 besnook
besnook's picture

kasich made the mistake of thinking sounding bright and reasonable would be appealing. i think it is a matter of principle for him to say he tried.

Fri, 01/15/2016 - 00:16 | 7049269 JamaicaJim
JamaicaJim's picture

Trump..at some point...needs to be more "Presidential"....OK to throw verbal bombs now....but in time....tone it down Don...

Cruz is a Canadian born Goldmannite by marital deceit. The leftists will pound away on that like a nail at an Amish barn raising....not electable.

Carson is orbiting Neptune....

Kasich is plumbing for some type of post if the GOP wins the WH.

Fiorina needs to begin spending more time with her husband - starting....oh.....NOW.

Bush? LOL. Jebbie is in serious denial.

Rand Paul - also in denial. Makes his Dad look like a tireless campaign machine. Both run shitty campaigns....

Thu, 01/14/2016 - 22:44 | 7049060 Omega_Man
Omega_Man's picture

The chosen ones will lead us to war... but it is imperative that they are punished... 

Thu, 01/14/2016 - 22:53 | 7049092 Moccasin
Moccasin's picture

A serious revolt and the sooner the better. The temple is America and it is time to throw out the money changers. The plutocrats and oligarchs are a cancer, the more it metastasizes the worse it becomes. We deserve better and the notion that we can't change the system to a better system is the prison the oligarchs want us in. Nothing wrong with a tax revolt, leading to a bigger revolt, leading to a renewed democracy, a direct democracy would be healthy. You can't remove a cancer with out the patient bleeding and once the cancer is fully removed the patient recovers and regains health and strength. I suggest we kill the cancer cells without mercy before it/they kill us.

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