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”.