Will Middle East Turmoil & Future War Be A Pretext For Selected Treasury Debt Repudiation?

by Ron Holland

It is political suicide for politicians in the west to make the necessary cuts in government expenditures to limit the explosive growth in government debt at the federal, state or local level. It is also impossible without force for governments to steal enough additional revenue and private wealth from Americans and the productive working citizens of other nations to generate enough government revenue to make a dent in the growth of the national debt. In addition, overt hyperinflation or massive government debt repudiation is unacceptable to foreign nations, central banks and investors who hold much of dollars and national debt. Therefore:

  • What course of action is left open to Washington politicians to get out of the national debt and dollar crisis they have created?
  • How do they create an enemy and blame another nation for the wealth and property confiscation necessary to survive?
  • Also how do they cut the government payrolls, benefits and expenses in an equal measure to guarantee their survival against the power of entrenched union power?
  • Finally how do the politicians and financial elite cover-up their actions to avoid the blame and retribution for what they have done to the global financial system?

When there is no way out the political answer is always WAR! Carl von Clausewitz said it best in his quote, “War is merely the continuation of politics by other means.” This is what we may be facing soon in the Middle East.

The Daily Bell article, “The West Builds Islam To Create A New War” is certainly not to be missed in understanding the wave of violence and revolution sweeping the Middle East. “Anglo-American elites are indeed attempting to destabilize the Middle East, creating a spectrum of national unity governments that must evolve in some cases into “militant” Islam. This too is apparently part of the plan…as an expanded Muslim scourge justifies further authoritarianism in the West and simultaneously a necessity for ongoing military preparedness and even expansion.”

The article goes on to describe how the Obama Administration has appeared clueless and unprepared for the social media organization of the opposition to Mubarak and the possible end to his 30-year dictatorship. US intelligence again has egg on its face and Hillary is attempting to create an “orderly transition” from Mubarak to his new Vice President while the people in the street want a total end to the regime now.

As usual, Washington will do whatever is necessary to make the worst possible decision and come out as the real loser in the Middle East revolutions. Remember, what is best for the Anglo-American Axis doesn’t have to be what is best for America or our government. Their control over Washington is a means to an end, not their ultimate goal and right now these few, privileged wealthy families, their mega banks and investment firms as well as the central banks they control are in serious trouble far exceeding the Great Depression.

They Need A War!

Therefore I want to submit a hypothesis which goes even further than using a future war to create a more unassailable police state at home and further military expansion abroad. I want to make the case, how a future limited war in the Middle East involving relatively fundamentalist regimes and even China as a co-belligerent just might be the ultimate plan by the Anglo-American elites. A war could protect the financial elites from full retribution due to their central bank created mania, bubble and collapse they have inflicted on the world now over-shadowed by 100’s of trillions in sovereign debt and unfunded social program liabilities.

Over time, their establishment media and opinion makers need to set the stage for the following to happen during a war. There is a tried and true playbook for this as most wars are manufactured and created for economic purposes just as this one will be. Most of America’s wars have been started this way as dictators can just attack and invade other countries while democracies are forced to go through the charade of creating an enemy and then responding to popular enthusiasm or some contrived black-flag event.

They need to create war hysteria, manufacture patriotism and the spirit of shared sacrifice so much of the private wealth in the western world can be transferred to governments to meet war crisis revenue needs. At the same time benefits and programs will be slashed and we will part with our remaining wealth and freedoms while our leaders protect us from a manufactured foreign threat. This is their goal but whether they will succeed is up to us.

Given past Washington policies, actions and Arab resentment, the revolutions however originally incited will tend to take on a life of their own. Causes of revolution can range from American-supported policies and dictators, the falling world economy or a real desire for freedom from the status quo, it really doesn’t matter. The movements will likely spiral out of control due to the power of the internet and social media organizational capabilities.

While the Obama Administration would certainly prefer the usual open-door policy of simply replacing one authoritarian leader with another allied to Washington to release internal social pressures, this time it could be different. Still in the region, the present grab bag of dictators and false monarchies is likely to be replaced temporarily with transitional fragile democracies which will fail and evolve over time into somewhat fundamentalist regimes.

America can put whatever spin it wants on the outcomes but the bottom line is they will be far more unfriendly and uncooperative with the United States and Israel than those in power now. Second, since fundamentalist leaderships will often put religion and culture above wealth and the fair-weather friendship of the USA, the new crop of leaders might be far more difficult to buy off and or blackmail.

Shared Sacrifice Is a Powerful Motivator

Looking back at history we see how citizens will usually pay any cost and take any deprivation during a war which threatens their nation or homeland. We saw this very clearly during World War Two in England during the Blitz and in Germany during the American and British nightly terror bombing of cities and civilian targets. The same outcome happened in the Philippians at Corregidor and in the trenches on both sides during World War One. Similar situations took place across the American southern states with civilians in Vicksburg living on rats, the burning of Atlanta, the bombardment of Charleston and countless other towns and villages.

Shared sacrifice brings people together and you can see it during major snowstorms, hurricanes, power outages and terror attacks like 9/11 on New York City. Often the same thugs who would rob you at gunpoint during normal times will be transformed into a lifesaver, friend or protector during disasters.

Nothing brought the German population together more and solidified the people behind Hitler during World War Two than the allied bombing raids. Although people were hungry and many had already lost everything there was very little looting or unrest. After 9/11 the American people and much of the world were behind the United States, even Syria and Iran for a time because of our misfortune. Remember, 9/11 wasn’t perceived as just an attack on a building, Wall Street or America, it was an attack on all civilized people. We certainly wasted and destroyed all of the resulting goodwill but this is a subject for another article.

We also see the result of shared sacrifice in the Moslem world today as every drone attack, every battle in Afghanistan and every action by Washington puppets in the Middle East angers most Moslems even those far removed from the conflicts, occupations and latest civilian attack. America has built up tremendous anger and hatred aimed at us because of our actions and this resentment can last for decades and generations.

Force or Coercion Creates Opposition

A simple definition is when individuals and groups are forced to act or think in a certain way due to outside pressure, threats or intimidation they tend to oppose such actions.

Here in a modern context think of how you feel about paying taxes, penalties and fines just to fund more make-work jobs for bureaucrats and vote buying schemes for politicians. Or consider the draft if you oppose the military action or war in progress. Note how Saddam Hussein’s army of conscripts melted away within a few days of the Washington invasion of Iraq. But compare this to the voluntary resistance of individual Iraqis after the invasion probably never exceeding 5% of the conscripted army were able to hold the most powerful army in the world at bay for several years.

Other historical examples might be the wholesale desertion of Russian armies during World War One or the Christmas Truce in the trenches of the western front when the soldiers began to realize they were suffering excessively for fools in political and military leadership in the high commands of France and England. In the United States, consider the New York draft riots against Lincoln’s unfair draft rules which targeted the poor while allowing the wealthy to buy conscripts to take their place

Again shared sacrifice is a far stronger motivator than force or coercion and we have seen an identical result in Afghanistan. Another way to look at this is the forced trillions in bailouts for Wall Street placed on the American taxpayers and future generations by Congress while their corporate profits and salaries soared. Everyone would have been glad to pull together during the crisis but the force and coercion will be remembered for decades.

The American people will not be fooled again and agree to selective coercion and sacrifice with the coming dollar and Treasury debt collapse; hence, maybe we see another reason for the madness in the Middle East.

War Always Brings Out Shared Sacrifice at Home and on the Battlefield

In the coming decade, America, Europeans and the Chinese will like have more economic destruction and wealth loss to deal with than in many years. For China, when their economic bubble bursts, they will face relative economic hardships not seen since Mao’s Great Leap Forward, for Europe World War Two and for the US, the Great Depression and Civil War.

For Chinese politicians and China, the largest holder of US treasury debt outside the Federal Reserve, they cannot sit idly by if the US should repudiate the treasury debt. Chinese leaders like politicians everywhere want to stay in power and they would look stupid and lose face before the nation. A limited war where they were just allied with Islamic factions would provide the necessary political cover while the US and China traded sanctions, debt repudiation and currency threats back and forth all for public show.

Should America’s over-sovereign-indebted allies in Europe join with us against the Islamic nations and oil-producing regions, we could under cover of war, repudiate our sovereign debts, move to a new world crisis currency, confiscate much of the private wealth and drastically cut government payrolls and Social Security and welfare payments and blame it all on the war. The West would have shared sacrifice, shared poverty and a war-hysteria-driven police state at home, a strong military abroad and most of the world’s oil resources directly under our control.

While they might not get away with this today because of alternative news and communications, don’t think for an instant properly conditioned people would not fall for something like this. This happened to our parents, grandparents and past generations. All wars are economic in nature and usually looting expeditions by powerful interests. The propaganda, patriotism, hate, revenge and prejudice and historical cover-up is just for public consumption.

Washington: Tear Down Your Neocon & Financial Empire Walls!

Neocons have controlled American foreign policy for decades and their Middle East actions have been to install and support dictatorships to control the nations and people in a plantation overseer type arrangement. This guaranteed that favored international oil conglomerates and financial elites made big money off Arab natural resources, primarily oil which is why the Anglo-American Axis has controlled the region since the First World War.

In return, these favored authoritarian leaders, their extended families and special interests shared in the wealth pillaged from their countries and they were protected by American military hardware, training and funding from the United States and the United Kingdom. Their successful administration and forced “regional stability” for overseeing and safeguarding our “Arab oil plantations,” allowed the vassal state leadership free rein to rule as they thought best.

As you can see with leaders like Mubarak, the priority is always profits and stability rather than human rights and overall prosperity. Yes Washington would sometimes wink and utter platitudes about jobs and democracy but as long as the puppet leaders followed the empire rules and directives, we generally left them alone.

On occasion, some national leaders of the empire states would fail to keep order or attempt to skim too much money off the top and our intelligence services would replace them in a faux revolution but only the leaders changed, seldom their policies. In extreme cases such as Panama under Noriega or Iraq under Saddam, our military would from time to time remove one dictator from power by military force and install a more pliable puppet to manage the individual nations in the empire.

The simple fact is British and American elites have ruled the Anglo-American Empire in the Middle East for well over 100 years in a way very similar to the Soviet control over the Warsaw Pact nations following World War Two. Indigenous leaders, powerless parties, fake elections always with the US behind the scenes guaranteed the 30-plus-year reigns of monarchies and dictatorships against the will of the people.

Recently while the initial overthrow in Tunisia may well have started as another leader replacement cycle by foreign intelligence, the outcome has been anything but what was expected due to growth of the internet and social media. Today, the internet, Twitter and Facebook allow oppressed citizens to organize and communicate across national boundaries (taxing jurisdictions) and Washington now has an uprising against US puppets and dictators growing across the Middle East.

This freedom virus using the internet to spread and organize across the region from Egypt, Yemen to Jordan may soon threaten the pro-Washington, oil-producing nations of Saudi Arabia, Kuwait and the gulf states with disastrous economic and financial consequences for oil prices, the dollar and the treasury debt. But as we’ve written earlier, there may be a silver lining and plan over all the perceived chaos.

While I normally would recommend that Washington stay out of the internal affairs of other nations, due to the actions of dictators and leaders under our past sponsorship and protection, I urge the Obama Administration to either get ahead of the political tidal wave now washing away our neocon empire across the Middle East or get out of the way.

  • A good place to start would be an apology for our past actions in the region, explain how some of this might have been warranted by the Cold War but declare an end to the practice and promise an immediate cessation of our backing for corrupt regimes.
  • Second we should announce plans to end our Neocon inspired wars in Afghanistan and Iraq as well as our drone attacks in Pakistan and other nations in the area.
  • Finally we should offer friendship and urge private financial and economic help for the region and for peaceful efforts to topple remaining corrupt authoritarian regimes.

Thanks to the internet and social media, the tides of politics and history are quickly changing in the Middle East and these actions may well move to China, Africa, Asia, Europe and yes even here in the United States.

I believe historians will someday write about how the internet or Facebook Revolution created more freedom and less oppression in the world. Historians should point out how the use of the internet to provide alternative news, organization and individual human action against powerful elites actually started in the United States during the Ron Paul For President Campaign in 2008. Who knows, these changes might well sweep the globe between now and 2012 and even begin to restore limited government to the United States.

As it all began here with Ron Paul, maybe it will blossom again with Ron Paul in 2012 but this is a political decision for Ron Paul. Still, if I were a member of one of the two party political establishments, the Federal Reserve or the financial elites, I would pay close attention to Egypt and the Middle East. Just maybe it is time for them to begin to worry if the eventual overthrow of Mubarak in Egypt might be the beginning of the end for political and financial tyranny over free people around the world. This could really upset Washington’s plans as well as the hidden motives of the Anglo-American elites.

By 2012 we might see rallies filling the Washington Mall against Bernanke, Treasury Secretary Tim Geithner and the closed two-party monopoly.

I can hear the crowds now, “Geithner, Go Back To Brooklyn, Bernanke, Go Back to Dillon SC,” and maybe even “Obama, Go Back To Somewhere.” It is certainly time to begin to dismantle the Neocon empire walls protecting dictators around the world as well as the Walls of Washington here at home.

As a child I often sang the old black spiritual about oppression, Go Down Moses in elementary school. Two lines I remember were, “Tell ole Pharaoh, To let my people go.” Contrary to the perception of the citizens of Egypt, Mubarak is not a modern-day pharaoh but rather just one of many petty dictators supported by Washington.

If there is a real pharaoh attempting to control the world today, it is a group of wealthy Anglo-American elites in Washington, the City of London and on Wall Street who manipulate our foreign policy and our markets through the central banks around the world. We need to tear down the empire walls abroad and build a high wall around the neocon advisors and Wall Street elites at home.

Reposted from LewRockwell.com