{"id":54472,"date":"2016-05-05T16:38:46","date_gmt":"2016-05-05T23:38:46","guid":{"rendered":"http:\/\/www.lankaweb.com\/news\/items\/?p=54472"},"modified":"2016-05-05T16:38:46","modified_gmt":"2016-05-05T23:38:46","slug":"the-collapse-of-the-western-fiat-monetary-system-may-have-begun","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2016\/05\/05\/the-collapse-of-the-western-fiat-monetary-system-may-have-begun\/","title":{"rendered":"The Collapse Of The Western Fiat Monetary System May Have Begun"},"content":{"rendered":"

By Peter Koenig<\/strong><\/em><\/span><\/h2>\n

April 24, 2016 “Information Clearing House<\/a>” – On 19 April 2016, China was rolling out its <\/em>new gold-backed yuan.<\/em> Russia\u2019s <\/em>ruble<\/em> has been fully supported by gold for the last couple of years. <\/em>Nobody in the western media talks about it. <\/em>Why would they? \u2013 A western reader may start wondering why he is constantly stressed by a <\/em>US dollar based fiat <\/em>monetary systems that is <\/em>manipulated<\/strong><\/em> at will by a small elite of financial oligarchs for their benefit and to the detriment of the common people.\u00a0<\/em><\/p>\n

In a recent Russia Insider article, Sergey Glaziev, one of Russia\u2019s top economists and advisor to President Putin said about Russia\u2019s currency, The ruble Is the most gold-backed currency in the world\u201d. He went on explaining that the amount of rubles circulating is covered by about twice the amount of gold in Russia\u2019s Treasury.<\/p>\n

In addition to a financial alliance, Russia and China also have developed in the past couple of years their own money transfer system, the China International Payment System, or the CIPS<\/strong> network which replaces the western transfer system, SWIFT<\/strong>, for Russian-Chinese internal trading. SWIFT, stands for the Society for Worldwide Interbank Financial Telecommunication, a network operating in 215 countries and territories and used by over 10,000 financial institutions.<\/p>\n

Up until recently almost every international monetary transaction had to use SWIFT, a private institution, based in Belgium. <\/strong>\u2018Private\u2019 like in the US Federal Reserve Bank (FED), Wall Street banks and the Bank for International Settlements (BIS); all are involved in international monetary transfers and heavily influenced by the Rothschild family<\/strong>. No wonder that the \u2018independent\u2019 SWIFT plays along with Washington\u2019s sanctions, for example, cutting off Iran from the international transfer system. Similarly, Washington used its arm-twisting with SWIFT to help Paul Singer\u2019s New York Vulture Fund to extort more than 4 billion dollars from Argentina, by withholding Argentina\u2019s regular debt payments as was agreed with 93% of all creditors. Eventually Argentina found other ways of making its payments, not to fall into disrepute and insolvency.<\/p>\n

All of this changed for Argentina, when Mauricio Macri, the new neoliberal President put in place by Washington, appeared on the scene last December. He reopened the negotiations and is ready to pay a sizable junk of this illegal debt, despite a UN decision that a country that reaches a settlement agreement with the majority of the creditors is not to be pressured by non-conforming creditors. In the case of Argentina, the vulture lord bought the country\u2019s default debt for a pittance and now that the nation\u2019s economy had recovered he wants to make a fortune on the back of the population. This is how our western fraudulent monetary system functions.<\/strong><\/p>\n

China\u2019s economy has surpassed <\/strong>that of the United States and this new eastern alliance is considered an existential threat to the fake western economy. CIPS, already used for trading and monetary exchange within China and Russia, is also applied by the remaining BRICS, Brazil, India and South Africa; and by the members of the Shanghai Cooperation Organization (SCO), plus India, Pakistan and Iran, as well as the Eurasian Economic Union (EEU \u2013 Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan). It is said that CIPS is ready to be launched worldwide as early as September 2016.<\/strong> It would be a formidable alternative to the western dollar based monetary Ponzi scheme.<\/p>\n

The new eastern monetary sovereignty is one of the major reasons why Washington tries so hard to destroy the BRICS, mainly China and Russia \u2013 and lately with a special effort of false accusations also Brazil through a Latin America type Color Revolution.<\/p>\n

In addition, the Yuan late last year was accepted by the IMF in its SDR basket as the fifth reserve currency<\/strong>, the other four being the US dollar, the British pound, the euro and the Japanese yen. The SDR, <\/strong>or Special Drawing Right, functions like a virtual currency<\/strong>. It is made up of the weighted average of the five currencies and can be lent to countries at their request, as a way of reducing exchange risks. Being part of the SDR, the yuan has become an official reserve currency. In fact, in Asia the yuan is already heavily used in many countries\u2019 treasuries, as an alternative to the ever more volatile US dollar.<\/p>\n

It is no secret, the western dollar-led fiat monetary system is on its last leg \u2013 as eventually any Ponzi scheme will be. What does \u2018fiat\u2019<\/strong> mean? It is money created out of thin air. It has no backing whatsoever; not gold, not even the economic output generated by the country or countries issuing the money, i.e. the United States of America and Europe. It is simply declared legal tender\u2019\u2019 by Government decree.<\/p>\n

No pyramid scheme is sustainable in the long run and eventually will collapse. It was invented and is used by a small invisible upper crest of elite making insane amounts of profit on the back of the 99% of us. Since these elitists are in control of the media with their lie propaganda, as well as the warmongering killing machine, US armed forces, NATO, combined with the international security and spy apparatus, CIA, MI6, Mossad, DGSE, the German Federal Intelligence Service (BND) and more, we are powerless \u2013 but powerless only as long as we ignore what\u2019s really going on behind the curtain.<\/p>\n

Our western monetary system is based on debt has all the hallmarks of a failing global monster octopus. The US banking system was deregulated <\/strong>in the 1990\u2019s by President Clinton. The European vassals followed suit in the early 2000\u2019s. About 97% of all the money in circulation in the western world is \u2018made\u2019 by private banks by a mouse click<\/strong> in the form of \u2018loans\u2019 or debt. Every loan a private bank hands out is a liability on that bank\u2019s books; a liability that bears interest, the key generator of the banks\u2019 profits. Profit from thin air! No work, no production, no real added value to the economy.<\/p>\n

If and when the banks within this web of debt begin recalling their outstanding liabilities, they may set a non-stoppable avalanche in motion \u2013 leading to a chaotic end of the system. This end-run may have just begun. We have seen a gradual build-up since the end of WWII with the armament of the Cold War farce, and a high point with the manufactured sub-prime crisis of 2007 \/ 2008 \/ 2009, prompting an artificial and endless global economic crisis which may come crashing down in 2016 \/ 2017.<\/p>\n

The damage may be humongous, leaving behind chaos, poverty, famine, misery \u2013 death. With the invisible ruling elite having cashed in, remaining on top and being liable to start again from scratch. \u2013 If we let them. It always boils down to the same: An uninformed people can be manipulated at will and is left in awe when hit by unexpected events, like acts of terror by bombs or banks.<\/p>\n

Let us be crystal clear \u2013 we are all uninformed as long as we listen to and believe in the mainstream media \u2013 which are controlled by six Anglo-Zionist media giants<\/strong>, feeding the western public with 90% of the information, the so-called \u2018news\u2019 that we consume so eagerly every day; the barrage of lies that repeat themselves in every western country every hour on the hour \u2013 and, thus, become the truth. Period.<\/p>\n

We must get out of our comfortable armchairs, listen to that innermost spark in the back of our minds, telling us against all avalanches of lies that there is something wrong, that we are being fed deception. We have to dig for the truth. And it is there \u2013 on internet, on alternative media, like Global Research, Information Clearing House, VNN, The Saker, NEO, Russia Today, Sputnik News, PressTV, TeleSUR \u2013 and many more credible sources of truth-seekers.<\/p>\n

Back to the impending collapse. \u2013 The ground rules for our pyramid monetary scheme have been laid in 1913 by the creation of the FED. Again, the FED is an entirely private, Rothschild dominated banking institution that serves as the US Central Bank. It is the omnipotent dollar making machine. It was fraudulently and secretly<\/strong> conceived in 1910 on Jekyll Island, Georgia, and described by Jekyll Island history (http:\/\/www.jekyllislandhistory.com\/federalreserve.shtml<\/a> ) as the duck hunt\u201d which<\/p>\n

included Senator Nelson Aldrich, his personal secretary Arthur Shelton, former Harvard University professor of economics Dr. A. Piatt Andrew, J.P. Morgan & Co. partner Henry P. Davison, National City Bank president Frank A. Vanderlip and Kuhn, Loeb, and Co. partner Paul M. Warburg. From the start the group proceeded covertly. They began by shunning the use of their last names and met quietly at Aldrich\u2019s private railway car in New Jersey.\u201d<\/p>\n

The concoction of these secretive duck hunters\u201d became in 1913 the privately owned Rothschild dominated Federal Reserve System, the US central bank by deceit.<\/p>\n

After signing the FED act into existence, President Woodrow Wilson declared,<\/strong><\/p>\n

I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.\u201d<\/strong><\/p>\n

The Anglo-Saxon system had a central bank in England <\/strong>since way back in 1694. It was then already controlled by the Rothschilds,<\/strong> as was the entire banking system. Baron Nathan Mayer Rothschild once declared:<\/p>\n

I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man that controls Britain\u2019s money supply controls the British Empire, and I control the British money supply.\u201d<\/p>\n

The Rothschild family\u2019s fortune cannot be properly estimated, but it must be in the trillions. What Baron Nathan Mayer Rothschild may have said some 300 years ago, still holds true to this day.<\/p>\n

No wonder, breaking loose of this sham monetary scheme is number one priority of most countries that treasure sovereignty, autonomy and freedom, though they do not dare say so openly, lest the empire lashes out at them punishing them with the very financial terror<\/strong> they want to escape from. And lashing out at the unaligned world the empire does, like a dying beast, attempting to pull with it much of the living world into its own shoveled grave.<\/p>\n

Is it therefore coincidence or a rather a purposefully planned convergence of several events as a last ditch effort first to ravage then to salvage as much as possible before the collapse?<\/p>\n

On 10 April, Zero Hedge reports Austria Just Announced A 54% Haircut of Senior Creditors in First Bail In\u201d Under New European Rules<\/em>\u201d. The Austrian bad bank\u201d, the failed Hypo Alpe Adria, that became Heta Asset Resolution AG after the government\u2019s nationalization, found a US$ 8.5 billion hole in its balance sheet, enough to trigger the new European \u2018bail-in\u2019 rule. Is it coincidence that also in Austria a major bank failure triggered the Great Depression also on a 10th<\/sup> of April \u2013 in 1931? \u2013 This is a first in Europe. Be prepared for others to follow, as over-extension of European banks is estimated in excess of a trillion dollars<\/strong>.<\/p>\n

On 15 April, the New York Times reported that \u2013 Five of Wall Street\u2019s eight largest banks are in defiance of the US banking regulator. The FED and FDIC said that JP Morgan, Chase, Bank of America, Wells Fargo, State Street and Bank of New York, all lacked \u2018credible\u2018 plans to enter bankruptcy in the event of a financial crisis.\u201d These banks have until October 2016 to comply.<\/strong> Under the new rules a tax-payer bail-out would be unlikely. Hence \u2018bail-ins\u2019 could affect millions of depositors and shareholders, their funds being stolen in order to self-rescue the too-big-to-fail banks. After all, non-compliance with the regulator\u2019s requests, or insolvency, can easily be manufactured as a legal base for stealing common people\u2019s savings. No worries, the TBTF banks will not go away, but your savings may.<\/p>\n

The CIA released Panama Papers<\/strong> (for who still doubts about the CIA involvement in the release of the Panama Papers,<\/p>\n

read here http:\/\/journal-neo.org\/2016\/04\/09\/the-panama-papers-the-people-deceived\/<\/a>),<\/p>\n

aimed in a most rudimentary way at defaming<\/strong> the \u2018usual suspects\u2019, Presidents Putin and Assad, as well as Iran, Venezuela, Brazil, of course \u2013 and others. Strangely no notable EU or US citizens or corporations were on the list. Would anybody seriously believe that Mr. Putin, a former KGB agent, would be so ignorant as to putting his fortune (even if he had any to hide) into Panama, the epitome of a US puppet state, where you can\u2019t flush a toilet without Washington knowing it?<\/p>\n

Some token neocons appear in the published papers, like Argentina\u2019s new \u2018Washington appointed\u2019 President Mauricio Macri, who is running amok ruining his country. Within less than four months he has rolled Argentina\u2019s economy back by ten years, raising poverty from below 10% in November 2015 to 34% by the end March 2016. The Empire needs him to keep gradually turning Argentina into chaos, however not too quickly, lest he may be \u2018deposed\u2019 and replaced by a US adversary \u2013 that would not at all be appreciated in Washington. For the types of Macri that made it on the list, the Panama Papers are a warning signal to keep them in-check.<\/p>\n

The publication of the Panama Papers may also be an incentive for US citizens and corporations to bring home trillions of undeclared dollar holdings stacked away in overseas tax havens into homeland financial shelters like those in Delaware, Wyoming, South Dakota and Nevada, thereby helping strengthen the gradually decaying dollar.<\/p>\n

Simultaneously, some European countries and Japan introduced negative interest rates<\/strong>, so as to increase monetary liquidity, thereby hoping stimulating an ever stagnant economy. That\u2019s the pretext. In reality however, negative interests are but a precursor to a wholly bank controlled financial system. Normally \u2018bail-ins\u2019 and negative interest would cause a run on the banks. This has not happened yet.<\/p>\n

In Switzerland, one of the first countries to introduce negative interests, the Swiss National Bank reported that the demand of the 1,000 franc notes \u2013 one of the world\u2019s highest value denominations (apparently to be maintained despite ECB Draghi\u2019s call for elimination of high denomination bank notes) \u2013 increased by 17% (by CHF 4.7 billion \u2013 US$ 4.85 billion) in December 2014, the month following the introduction of negative interests. May it be an indication that the Swiss have quietly started hoarding big-denomination cash?<\/strong><\/p>\n

Future hoarding and runs on the banks<\/strong> will be countered by the introduction of a cashless society, i.e. all monetary transactions will gradually become electronic. The process has already begun. In Sweden and other parts of Europe, as well as Japan, cashless supermarkets and department stores claim big success, especially with the young consumers, who happily play along paying electronic cashiers by swiping their cell phones in front of an electronic eye.<\/p>\n

The Young and Innocent \u2013 if they only knew that the banking oligarchs want to control their money and enslave them with a \u2018fun gadget\u2019, they may decide to resist.\u00a0 But well know those who control the system that the young are the drivers of the future. We, the old resistance will eventually die out. Problem solved. \u2013 But we are not dead yet. The Times are A-Changing\u2026 (Bob Dylan, 1964)<\/em>.<\/p>\n

The nefarious trio \u2013 \u2018bail-ins\u2019, negative interests, and a cash free society \u2013 will make living in the industrialized \u2018first world\u2019 a sheer nuisance, a stressful dance on toes, as the emperor\u2019s proverbial Damocles Sword hangs intimidatingly above us.<\/p>\n

Washington may have one last joker up its sleeve \u2013 reintroducing the \u2018gold standard\u2019<\/strong>, the very gold standard that Nixon abandoned in 1971. The US have also been accumulating huge amounts of gold over the past 25 years. A new US dollar gold standard would most likely be set at a ratio that would wipe out all US debt<\/strong>, including future \u2018unmet obligations\u2019 (GAO \u2013 General Accounting Office) of about US$ 125 trillion. It would attempt to keep the western industrialized world in Washington\u2019s orbit, but might lose most of the developing world<\/strong> owning natural resources coveted by the west. These countries oppressed and colonized for centuries are likely to gravitate to the new China-Russia alliance \u2013 leaving the outsourced and outwitted west alone without workforce \u2013 and with a massive but outdated military power.<\/p>\n

To counter the build-up of this criminal last ditch sham by the western Zionist banking czars, China and Russia have been preparing over the last few years an independent financial system, delinked from the US dollar<\/strong> and which now incorporates the BRICS, the SCO nations, as well as the Eurasian Economic Union. This association of countries and economies account for about half the world\u2019s population and at least one third of the globe\u2019s economic output<\/strong>; a fact totally ignored by the mainstream media, for obvious reasons. The Machiavellian sinking ship does not want its passengers to jump to safety.<\/p>\n

The 19 April 2016, announcement by China of its gold-backed yuan, no longer convertible into dollars, may just trigger an economic shift into the \u2018eastern camp\u2019. Many countries are wary and tired of western exploitation, enslavement, threats of sanctions, oppression and an ever present danger of invasion by the killing machine. The decoupling of the dollar by a third of the world economy may indeed open new horizons, creating new alliances, new hope for a more equal and just world.<\/p>\n

Peter Koenig is an economist and geopolitical analyst. He is also a former World Bank staff and worked extensively around the world in the fields of environment and water resources. He writes regularly for Global Research, ICH, RT, Sputnik, PressTV, CounterPunch, TeleSur, The Vineyard of <\/em><\/p>\n

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By Peter Koenig April 24, 2016 “Information Clearing House” – On 19 April 2016, China was rolling out its new gold-backed yuan. Russia\u2019s ruble has been fully supported by gold for the last couple of years. Nobody in the western media talks about it. Why would they? \u2013 A western reader may start wondering why […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,12],"tags":[],"class_list":["post-54472","post","type-post","status-publish","format-standard","hentry","category-economy","category-forum"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/54472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=54472"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/54472\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=54472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=54472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=54472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}