THE DROPPING DOLLAR, WHERE IS THIS LEADING?
What is Money
What is money?
Money, printed paper or a stock certificate, often translates to NOTHING but confidence in the issuer, be that a government, corporate
management, or a bank.
In essence, it's a paper promise.
- ZetaTalk: Paper Promise, written Sep 17, 2004
- The banking system or any paper money system is built on confidence, confidence that a note will be paid out in something solid,
something other than a paper promise, which is what all money systems and bank notes are. Centuries past, when the world was
operating primarily on the barter system, such promises were few and were backed by gold or silver, or land, or a herd of horses or
cows, something solid. Villages and towns, farmers and those in the trades, all operated primarily by barter, a cabinet built by a
carpenter and payment in a quarter of a slaughtered hog, a bushel of apples getting a tooth pulled by a dentist. Financial
sophistication developed slowly, based on the growing confidence that the backer of a money system, a paper promise, could be
counted upon to deliver something solid. Thus it was, until recently, that gold was considered the backing. When the press to use
paper money to support a debtor economy ran beyond the supply of gold, the money systems were taken off the gold standard. In
the past, a creditor could put his house and property up as backing for a loan, his herd, perhaps even his pending harvest of wheat,
but could not get credit unless he had something solid as collateral.
But today it is the norm for every person, without substance to his name, to have access to credit cards that allow him to go into
debt beyond his ability to repay. The creditor is given credit on the assumption that he will repay. The funds he is loaned are
assumed to have worth. And all pass paper promises around as though these were based on things that could be brought forth upon
demand. As can be seen when whole countries default on the paper money they float out under their flag, the value of a dollar can
collapse quickly. Argentina is a case in point, the money becoming worthless almost overnight. In days past when banks and paper
money were closely tied to things, such a panic would result in the banks who had loaned money to farmers demanding payment in
things, and any who deposited savings in the banks demanding payment in things, so that at the end of the shuffle those having
made savings deposits would find themselves with a herd of cattle or some acreage, rather than paper money.
When money became unhinged from solid backing, speculation crept in, resulting in inflated stocks, loans without collateral, a
pyramid scheme that is a house of cards that would collapse with few left after the shuffle with anything solid in their hands. Most
would be left holding worthless notes, uncollectable, standing atop a deep pile of bankruptcies. During the Great Depression, it was
no secret that banks were in default, farmers and corporations bankrupt, but this was ignored as demanding payment that could not
be produced would only put properties and empty buildings in the hands of banks who could not sell them as the market itself was
dead. So a bankrupt status was ignored, and all floated along until life came back into the system and payments began to be made
again, extension after extension made. This is what is occurring today, among countries and creditors and banking entities, to avoid
a breach of confidence that would start a panic in the world at large. Say nothing, make no demands for payment in things, give
extension after extension, and the house of cards, built on paper promises, stands. This assumes cooperation among all parties, and
where this is holding today, as it did during the Great Depression, there is a difference. During the Great Depression, the world was
not beset with natural disaster after natural disaster, as is starting to occur today. Commerce, trade, was reduced due to lack of
confidence but at the base, the economies were solid and recovery followed renewed confidence. Today, all countries are in a crisis
affecting their base economies.
We mentioned that Crop Failure would follow the irregular weather, and it did. But buildings collapsing in earthquakes, trains
running off suddenly twisted tracks, factories exploding as gas lines breach, and storms tearing at coastlines without remorse do
more than represent an opportunity to rebuild. They represent insurance companies unable to pay for rebuilding, factories laying off
workers or unable to function, and distribution of goods blocked. In other words, paralysis, rather than a fever of economic activity,
results. When those at the top of the financial pile, or those whom they command, see the structure starting to become a pile of
bankruptcies likely to tie up their ability to reach down and grab a thing, so they will not be left with worthless paper promises, all
want to move first in order to get a thing before the other financial giants beat them to it. They are holding notes, and at the base
these notes translate to land, buildings, inventories, oil deposits, ships, food stocks, herds, and virtual slavery of those who cannot
pay but need to eat and have shelter. Indentured servitude, returned.
We have mentioned that the pending pole shift has resulted in Leveling Wars between the Puppet Masters and their restless Puppets
seeking to become opportunists during times when their masters might be unable to retain control. These wars will result in the pact
of cooperation between creditor countries and corporations and those who own them cracking. Fail to cooperate and I'll call your
notes due, and while you struggle under a rain of failures I will pluck what I wish from the pool and emerge owning you once again,
but with you wasted and discredited, is the threat. Thus, where banks default because those they have loaned money to are going
into bankruptcies, and where at base this is due to collapsing economies struggling with the effect of the current Earth changes,
natural disasters, there is also the element of warfare among the Puppet Masters and their Puppets. To the extent that the
rebellious Puppets are the political power in a country, that country may find itself fiscally undermined and corruption within that
power structure exposed. To the extent that the rebellious Puppets are corporate heads, those corporate heads will find themselves
unable to get the loans they need to continue, and forced into bankruptcy court. To the extent that a Puppet Master, and there are
many, senses that the enemy is another Puppet Master, the property holdings of that Master will be undermined, whether this
includes a country, a corporation, or financial holdings such as bonds. Watch closely, during this war of the titans in the financial
realm, and you will see the swords flash and parry.
Seeking wealth that will not disappear during a dollar devaluation or a dropping Stock Market, people seek things that will hold their value.
But these too, are ephemeral.
- ZetaTalk: Precious Possessions, written Aug 15, 1996.
- During stable times, civilizations build on the past, the past dragged forward as welcome or unwelcome baggage. The past is
intrusive, something the young and old are constantly reminded of, and serves as models for the young, rules to be guided by, and
social norms for the newborn to adapt to. During tumultuous times the grip that the past has on society is broken, and priorities are
reassessed. What are termed great works of art by humans are considered valuable only because they came from the past and carry
a long list of credits. Each new admirer is thus bolstered and each potential critic is thus intimidated. Even frankly ugly works are
thus floated forward, gaining in price. Possessions such as houses or land carry value as they are assumed to be permanent, the
house standing until deliberately torn down and the land maintaining its view or agricultural productivity on into the future. After
the coming pole shift surviving humans will be starving, broken, frightened, and will find that the price of a meal is nothing so
worthless as a painting or statue from the past. A sharp knife, a sewing needle and thread, some seeds, these things will become the
Does money buy love, security, good health and a long life, freedom from boredom and the wherewithal to be entertained.
To a great extent, it does.
May not buy love, but it can buy sex and physical attentions and the façade of love.
It buys security from the standpoint of walls and guards and a well stocked enclave, but it does not protect from the forces of nature or disloyal
servants and guards.
It can buy medical care, thus a longer life, but modern medicine cannot cure all ills.
It certainly buys entertainment and travel, toys galore.
Beyond love, security, health and entertainment, money also gives one stature and respect.
Or so goes the hope of those who cannot secure status any other way.
Thus, some cons masquerade as wealthy, or take on the vestiges of wealth.
- ZetaTalk: Status Symbols, written Oct 15, 1995
- Human society is rift with status symbols - big cars, big houses, titles after the name, designer clothing, the right neighborhood,
membership in elite groups, and name recognition. For many, the status symbol looms more important that any underlying
meaning, because the status symbol represents power. Those with money have more power than those without, almost invariably, as
money can buy cooperation. Thus, most status symbols denote money. Where it is difficult to put on the facade of big money without
the actual prop, those masquerading as well-to-do manage to do so surprisingly well on occasion by dressing well, acting arrogant,
and getting others to foot the bill. Those with membership in elite, exclusive groups have more power than those without, as the
membership cooperates with each other, doing favors, and thus each member has a larger reach. Thus, those with such
memberships almost invariably advertise them in any introduction or brief biography they provide. Rarely are those without actual
memberships able to assume this facade.
This is not due to any difficulty in making up counterfeit certificates or cards, but due to the clubby way members communicate with
each other. Phone calls on a first name basis, and introductions from someone known before a stranger is allowed into the midst.
This ploy, claiming membership one does not possess, is not tried often as it is invariably counterproductive. Those with name
recognition have more power than those without, as others are afraid of offending them for fear of the incident becoming widely
known. Thus hotel accommodations or fast and often free service is provided as everyone suspects the cameras may be running in
some manner. Scams where the power hungry assume the name of someone well known are usually short running, though all
humans can have look-alikes and some of the famous have many. A certain dress, a little make-up, practice the voice and posture,
and voile, one can walk about and pick up the perks at a party or convention. The counterfeit personage, emboldened by success,
tends to use this routine more and more often and linger, thus eventually getting caught and dealing with a lot of disgust and venom
thrown their way, outweighing any benefits gained.
However, the easiest status symbol to attain, and the one most often used by the power hungry, is a title after the name. Doctor,
Judge, CPA, Representative, Director, Manager, Esquire, President, Captain, General - how often are the titles verified as genuine?
Almost never, unless the personage is applying for a job and even then this type of checking is seldom done if the personage has the
proper demeanor. Thus, the power hungry can assume a title and get away with it in the main, winning deference and rapt attention
at a minimum, entry where the doors were formerly locked, an audience where the message was formerly dismissed, and as any
good salesman knows, getting the foot in the door is half the battle! They are home.Thus, when one finds status symbols in the form
of titles after a stranger's name, particularly nebulous titles, one should not instantly assume they are dealing with a person who has
earned the title, or any title for that matter.
Because human society almost invariably bows to wealth, the lure of get-rich-quick schemes, like the lottery, is irresistable.
- ZetaTalk: Get Rich Quick, written Jun 15, 1996
- Money may not buy love but it certainly covers a lot of fronts - good nutrition, housing, the ability to travel, hand servants, sexual
gratification, life in a good climate, and a good view from the top of a hill. More significantly, money is a way out - out of having to
work, having to do chores that hirelings can do, out of having to be polite to employers and bankers, and the possibility of a way
out of any troubles with a quick cash settlement. Money can also allow the vision to be attained, and make the difference between
embarking on a visionary path or languishing. It is not surprising, then, that get-rich- quick schemes are popular and make a lot of
money for their promoters, who are themselves trying to get rich. In dealing with these assertions, that the secret is this or that, one
should bear in mind that if it were all that easy, then everyone would be rich. Is this a closely held secret when it is for sale? Is
anything being revealed that is special knowledge? These schemes generally include a lot of self confidence builders, which in and of
themselves are calculated to make a difference in the lives of those who buy the packaged scheme.
For the vast majority of mankind, on the bottom looking up and longing in most cases for better circumstances, the coming pole shift will bring a
change to most.
It will put us off the money system, in that the paper promise will be defunct, and the populace no longer have any confidence in printed paper or
stocks and bonds.
- ZetaTalk: Worthless Money, written July 15, 1995
- Money will begin to lose its value long before the cataclysms hit. This will be worldwide, and in almost all human cultures. Why
should this be the case, when, as we have stated, the majority of humanity will either be unaware of the coming cataclysms or in
denial? The financial structure of the world's financial empires is really quite fragile. Look to the swings of the stock markets, the
bond markets, and other speculations. Panic sets in at a moment's notice. The problem is that financial matters are based on human
perceptions of worth. This moves about, even in the most stable of times. The value of an item increases during shortage, plummets
during times of plenty, and otherwise is affected by various perceptions of being in the right place at the right time. There are
gamblers aplenty in the financial arenas. Look to history, to see how little it took to create financial panics. What with all the dire
predictions made by many, true or untrue, many people worldwide will be on edge. Add to this the increasing crop failures, with
consequent food shortages, affecting the markets in commodities. Humans of good heart concerned with survival through the
cataclysms are advised not to look to the money markets for assistance.
Changing Social Structure
Per the Zetas, the barter system will prevail, going into the pole shift and certainly afterwards, and skills will replace the paper promise.
- ZetaTalk: Barter System, written Dec 15, 2001
- We predict that long before the shift, a barter system will be replacing the current paper money system. The value of the dollar, in
allcountries, will be falling, such that in any transaction one or both parties will feel they are getting a fair deal only if a thing, not a
representation, is given or received. This is a common practice in countries where the dollar is falling, and a natural migration as
the thought occurs readily to mankind, the barter system being recent in their cultural evolution. What will this mean for the
common man, and what will it mean for the rich? The common man will find they are pleased with themselves if they have had the
foresight to secure goods of value, such as seeds or tools or dried food. The value of appliances that are dead and not able to run,
even of cars unable to run over broken roads, will be zero. The value of items that can increase worth, such as a needle and thread
which can repair clothing otherwise worthless, or a shovel that can create a garden otherwise a weed patch, will balloon. The rich
will of course whine endlessly, and try to convince anyone who will listen that their goods will return in value, which it will not.
Moneys will be used as a medium of exchange, as will jewels and art, in some settings, for a brief period of time.
This will occur until those being offered these at bargain prices realize the shift has happened worldwide, and rescue and a return to
civilization as they knew it will not occur. Perhaps months, but more likely weeks, and only in limited settings. We advise the
common man, as we have in the past, to relieve themselves of stock and jewels and paper money that will fall in value, perhaps
suddenly and without warning. Better to stock up on things that will have value, candles and matches, school books and a guitar,
than what the rich treasure. In that one's skill sets can be considered a bartering item, one should examine their own skill set by the
following exam. If you were in the middle of a wilderness, alone, what steps would you take to survive? What is the first skill that
you would need, and not have? Whom do you know that you would wish about you, in such as circumstance? What is that skill that
they possess, that you perhaps could develop? Imagine a group in such a setting, having arrived at a land dump where various
pieces of junk are about and could provide mechanical devices or shelter, if utilized creatively and resourcefully. How would you go
about creating a comfortable home for yourself, and others, in such as situation? If you are clueless on how to use junk to structure
a home, recycle and hook up, then perhaps you should work with a junk man, in his yard, and take lessons! What we are telling you
is that you should mentally put yourself in this setting, and you will have no difficulty determining what is useless or most
worthwhile, in a skill set. If you are an accountant, and cannot translate this skill into becoming a tailor or herdsman or cook, your
skill is useless!
What will this do to those used to having status, being on the top of the pile, because they had MONEY?
This is not a simple arrangment, because the wealthy class has layers, all looking up at those with more control over society and down at those
beneath them, and all quite used to their status.
There's going to be a lot of screaming and yelling, especially among those who care more about their status and money than they do about their
- ZetaTalk: Clash of Agendas, written Nov 15, 2003
- As the Earth changes leading up to the inevitable passage of Planet X with cataclysmic effects on Earth increases, pressure by all to
promote their agendas increases, leading to a clash of agendas. When times are comfortable the pace can be slow, without pain or
anxiety, but when time seems short, or when all seems to be crashing and about to be lost, agendas are pushed aggressively. What
are these agendas, and in what way do they clash? Since those in the Service-to-Other work cooperatively, and do so increasingly in
emergency situations, we will address primarily the agendas of those in the Service-to-Self, as affected by increasing Earth changes
and awareness of the big lie by the general public.
He with the gold, rules. The public assumes a broad ownership of corporations and media outlets, when the opposite is true. A very
few individuals control the wealth of the world, install politicians to their pleasing, create global conflicts and create or destroy the
fortunes of countries as well as individuals in the chess games they play with their control, and thus operate as Puppet Masters
during the cover-up. Their agenda is to retain control, retain their position, and thus as their gold rules, they want minimal impact
to their financial stature. No bank failure. No drop in stock value. No corporate bankruptcies. And as they assume this would occur
if knowledge of a rogue planet in the inner solar system were to be broad, they consider hiding this as long as possible of prime
Promised wealth, power, security, and opportunities outside of what their natural talents would afford them, puppets invariably
allow their strings to be pulled. They are chosen because they can be controlled, by blackmail, by bribery, by intimidation, and if
disappointed with the role they are assigned, they are alternately threatened and placated by their puppet masters, else eliminated.
Puppets run amuck of their masters when they sense their world will not continue, and make demands. Occasional restless puppets
are expected, with alternatives waiting in the wings, but when puppets panic en mass, malfunction, are absent, and many
replacements are happening simultaneously, the chess game the puppet masters play does not go as planned.
Accustomed to being secure due to ownership of goods and the power this brings, the upper class or moneyed class will react with
more than shock when their property, whether corporate interests or stocks and bonds or real property, is flushed down the toilet
during the increasing changes pummeling the Earth. Insurance companies will go under when their insured base surpasses their
wealth, corporate bankruptcy will ensue when all but the corporate name have been washed or blown away, and clutching jewels
and artwork, they will stand and wail. Banking empires, government security blankets, all run by puppets of the puppet master, will
receive demands to do something to return the comfortable class to their comfort. Simultaneous demands on nervous and
malfunctioning puppets creates an explosive situation. More malfunction. Wailing all around.
At the base of the pyramid, the working man and woman observe the drama. From their standpoint, they are living in the Land of
Oz, where nothing is as it has been pronounced, the good guys doing bad deeds, the economic recovery putting them out of their
homes and jobs, and no one explaining why the Sun and Moon and seasons are not where they are supposed to be. The point of
working for the comfortable class is for food and a roof over one's head, and when both seem tenuous, loyalty fails. The working
class is thus simply not where expected to be, not the drones and robots anticipated, and the comfortable class now switches from
simply wailing to panic.
Insecurity translates to autocracy, so strong arm tactics against the working class are the first armament. This of course backfires
when cities are collapsing and the leadership proven inept, so the working class becomes the rebelling class, and is absent even
more. Thus, the clash of agendas means that none of the social structure operates as expected by those in the Service-to-Self, who
find their banking empires collapsed, their real and corporate properties vanishing, their puppets wandering around confused, and
the comfortable class fuming about the recalcitrant working class and lack of action by the puppets running the establishment's
empire. Chaos, just as the serious pole shift precursors are about to ensue!
I get a lot of email asking who the Puppet Master is, and would simply point out that the House of Rothchild funds ¾ of the US Federal Reserve,
the other ¼ funded by the Rockefellers.
Certainly Bush and Cheney and the CEO's of large corporations are selected with a lot of input from the Puppet Master. It has been pointed out
that Kerry was hardly different from Bush in this regard. Both were members of Skull and Bones at Yale.
What would life be like, for the wealthy, for the super wealthy, if the paper promise were to collapse, dollars and stocks and bonds be considered
- ZetaTalk: What They Fear, written Sep 7, 2004
- We have mentioned that the establishment fears losing their perch on top of the pile, and being reduced to the stature of the
common man. They fear, primarily:
1. A sudden panic in the masses to the extent they leave their jobs and the infrastructure collapses as maintenance is not done on
power grids or water mains, and security over corporate assets is not maintained.
2. Opportunistic looting which catches like wildfire when it becomes apparent that security is lacking, the police or private security
forces distracted by their own panic.
3. Military sent in to quell riots becoming brutal, as they have frankly been trained, creating in the populace a rebellion beyond
panic that sets the common man against the establishment, a class war seething under the surface boiling and not settling.
4. Stock markets collapsing under sudden sell orders in an effort to liquidate cash, and banks unable to meet the demands that
bonds and savings accounts be liquidated, so the financial system is no longer considered functional and squatters rights begins to
prevail as the mindset of the masses.
5. Military units or militias becoming breakaway units such that rogue states are formed, the world in the main becoming a
no-man's land where the safety of the elite cannot be assumed or assured.
6. The wealthy elite, and those in power when the big lies are exposed, becoming targets of those who have long resented them, with
more than focused looting and retaliation unleashed as starving masses of humanity become organized.
7. The power of the elite no longer recognized when it is reduced to paper ownership no longer enforced by the courts and control
over police and military forces no longer listening and consisting of paper money no longer having any value in a barter driven
To counter these possibilities, the establishment has desired a firm date when sudden and unexpected Earth changes would occur
that might throw the populace into a sudden panic, and the ability to close stock markets and banks in such an event, and to impose
martial law to prevent rioting. These steps were viewed as stopping the erosion of power and wealth by substituting fear of
punishment in the minds of the populace for their sense of self protection and opportunistic greed. Well timed martial law would
supplant what the elite fear with a controlled setting, where:
1. Travel would be prevented, and jobs attended to, by force, with workers returned to their jobs by gunpoint if necessary. Thus the
power and water utilities would work, and food distribution would continue.
2. Looting would be reduced greatly by curfews and travel restrictions, and the wildfire effect would never ignite.
3. Brutal military techniques would not incite rebellion as torture would occur behind doors, not in the streets, and the organization
needed to incite rebellion unable to occur due to curfew and travel restrictions and selective arrests of likely suspects.
4. Access to stock markets and banking would be controlled, so that the system never reaches collapse due to liquidation demands it
cannot meet and the populace feels they must continue to honor their bills and obligations, as the monster lives and has not died.
5. Spearheaded from central commands, martial law instituted to encompass all possible militia units would prevent breakaway by
exposing such maneuvers. A unit on its own can breakaway, a unit required to check in and coordinate with others finds this option
exposed, and thus inhibited.
6. The infrastructure of power and water utilities intact and supporting an intact financial system, the political and thus the legal
system is likely to prevail and not collapse, and thus fear of the courts could be used to prevent retaliatory acts against the wealthy
7. The status quo continues, paper money and deeds and stock ownership of corporations still has the strong arm of the law behind
it, and the common man sees the fist above them, uneroded, and continues to walk in the ruts of their workaday world, despite new
dangers such as earthquakes and a tottering and wobbling Earth.
For martial law to succeed at all, there must be a problem extreme enough to be recognized as a rationale for extreme protection,
such as the continent rent in two by earthquake, a tidal wave tearing away all the cities along a coastline, or a wave of disease
threatening to wipe out the country if not controlled by quarantine. And this threat must be real, else support for the strong arm of
martial law would not be in place, and erosion would occur quickly. Thus, martial law imposed just ahead of such disasters would
succeed, but attempts to impose it during such disasters would likely fail as the components of martial law are subject to panic too,
and disrupted communications and lack of reassurance on the outcome feed that panic in the very control system the elite counts
upon. Once again, the Catch-22 for the elite, as without a firm date on changes likely to incite panic, they cannot stop the wildfire
they fear, but a firm date will not be forthcoming unless the public is informed about what is coming and likewise has the date, and
thus cooperation with any martial law maneuvers serving the elite over the common man would be reduced.
Is any of this happening?
- Renowned Funds Manager Predicts Global Economic Collapse
May 30, 2005
- There was an interview on CNBC of the renowned funds manager Julian Robertson. They used to call him, still do call him Never
Been Wrong Robertson. He has predicted every economic cycle, every debacle, every bull market, and every bear market. "Where
does it end?" And he said, "Utter global collapse."
Not simply economic collapse; complete disintegration of all infrastructure and of all public structures of governments. Utter, utter
collapse. That the end is collapse of simply epic proportion. In 10 years time, he said, whoever is still alive on the planet will be
effectively starting again. And the comments were so negative. That the planet is not simply sinking into a sea of red ink; it is
already sunk. He said that it will be necessary to control, in 5 years' time, food and water riots. Huge detention compounds on
federal lands, probably in the West where the land is available, to potentially house 50 million or more citizens that will be in
financial ruin. Food production will fall. Total collapse of public infrastructure. Total collapse of medical care systems. All public
pension plans, Social Security will collapse. All corporate pension plans will collapse. He was moving into one of the new
super-secure compounds for wealthy Republicans for when the "barbarians will be at the gate." '
My comment at the times was that during the Great Depression, the homeless lived on the street or with relatives, and food production did not stop.
Is he talking about economics here, or a pole shift?
Does word of the pending pole shift, and its impact on the wealthy, get around?
I quote from an email I received in the Summer of 2005.
- A high level manager I know has been invited to join a firm sponsored building project somewhere in the US (didn't tell me where)
that would get him a bunker of sorts in their survival project, which is said to be quite luxurious. Seems only top managers were
invited until the last six months. Suddenly they've become much more inclusive. Apparently they've revealed to him that they have
had inside info on Planet X for several years and have been planning to survive for a year or two now. Poured lots of money into
land acquisition and construction. The senior guys have flatly told him he won't have much more time - the end as they call it is that
near in their opinion. Their inside info source is reputed to be the Federal Government at some very highly placed persons. This info
has been disseminated to selected parties for several years. It's nothing new to them. They are telling my friend that they believe
they're all going to be starting over and beyond food and shelter, their material possessions won't be worth a damn. No need for
Bentley's and Jaguars. No need for much of anything but a way to seal ones self off from the world for a while - and make sure that
they can eat while sealed off.
How wide spread are these discussion among the wealthy?
From another email received June, 2005.
- Your public profile is increasing lately. More radio, more comments quoted, etc. While of course you're aware of the increased
interview schedule, are you also aware that ZT and you are being quoted in water cooler conversations at some large (Century City
/ $500 hr plus / kind of) lawfirms in LA? I've some minor connections to a HUGE lawfirm that represents presidents and former
kings, dictators, entertainment industry players, major celebs, etc. Even in those rather lofty circles, they do seem to have some
passing familiarity with ZetaTalk and you. Thought you'd be interested (if not exactly flattered) to know that fact!
If financial disaster is right around the corner, what would be the trigger?
For the US, riding into Iraq to capture the oil fields of the Middle East, and floating a huge debt to do so, the road to disaster is obvious.
The US debt has been supported largely by China's purchase of our bonds.
China has lots of dollars it needs to invest, US dollars it needs to do something with, because the US is buying lots of China goods.
China has made sure this trade imbalance stays in place, keeps their price low, by tying their currency to the dollar.
Thus, as the dollar drops, and it is dropping, their goods do not go up in price.
Thus, the US consumer keeps buying Chinas goods, China keeps collecting US dollars, and is forced to invest these dollars in US bonds, returning
the dollars to the US.
China, like any other trading partner, does not want the dollar to bottom out, as their investment would go be utterly gone, then, but other factors
Iran is one of the largest oil producers, in 4th place, and holds the 3th largest oil reserves.
Total oil production
1. Saudi Arabia 10.37,
2. Russia 9.27,
3. United States 8.69,
4. Iran 4.09,
And 14th, Iraq
Greatest Oil Reserves by Country, 2005
1. Saudi Arabia 261.9,
2. Canada 178.81,
3. Iran 125.8,
4. Iraq 115.0,
And guess who one of Iran's biggest customers is? You guessed it - China!
All the threats lately, out of the blue, really, against Iran.
Almost like it was timed to happen NOW, the umbrage about Iran's potential nuclear material, which is years away from ever happening, per the
It has been know for months that Iran was planning to open an oil bourse, a market, and have this based on the Euro.
Other oil producing nations have already moved to the Euro - Venezuela and Norway, for instance, but this would be a BIG player in the oil
production business, based not on the dollar, but the Euro.
What does this mean for China?
They now would not need a dollar reserve, in order to buy oil in DOLLARS, the former standard enforced for decades by the Saudis, so could
dump their dollars.
No longer a need to buy US bonds that lose more by the time they are cashed in that they were worth when purchased, even with interest.
They can dump the dollars, and this would start a dollar dumping and a precipitous drop in the value of the dollar.
- Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse
Aug 3, 2005
- The Bush administration is prepared to undertake a desperate military strategy to thwart Iran's nuclear ambitions, while
simultaneously attempting to prevent the Iranian oil Bourse from initiating a euro-based system for oil trades.
Iran's oil bourse was scheduled to open on March 20, 2006, though it has now been delayed.
In anticipation of China no longer investing in US bonds, the US has stopped reporting its M3 funds as of March 23, 2006.
M3 is the report that would show WHERE the money comes from. It would show the money invested in the Fed is no longer coming from China, or
similar sources, but from the printing presses.
And a country printing its own money to stay afloat is a banana republic.
This only goes one way. Down.
- ZetaTalk: Iran Boondoggle, written Mar 17, 2006
- Right on schedule, leading up to the Iran announced date for the opening of its petroeuro oil bourse on March 20, 2006, the Bush
administration is saber rattling and making threats, implying military action is not off limits and listing Iran as the worlds
bogeyman. Reminiscent of the buildup to the Iraq War, Iran is listed as assisting terrorism by assisting the resistance in Iraq,
perhaps harboring Bin Laden, and desiring nuclear weapons. Never mind that North Korea and all the other countries around the
world produced nukes and thumbed their noses at the world while making threats against neighbors. Has the Bush administration
gone mad? The US military is exhausted by Iraq, not able to get recruits even at a time of high unemployment in the US, unable to
call a draft with an increasingly rebellious Congress defying Bush and a public in revolt on all fronts. The national debt is
skyrocketing, with countries like China buying our bonds the only way the US is staying afloat other than to print money like a
banana republic. The M3 reporting, which shows the source of the funds being pumped into the central banks, due to go secret on
March 23, 2006, shows the relationship of the current press on Iran to financial, rather than terrorism or nuclear proliferation
What do they hope to accomplish? Deflecting a precipitous drop in the dollar, at the very least. The world has used the dollar in oil
trades for decades, due to a Saudi promise to hold to the dollar. What this does for the US is force countries around the world to
retain dollars, as they need them to buy oil from the primary producers. Iraq slipped to the Euro in the years preceding the 2003
invasion, but was quickly returned to the dollar in 2003 by the US administrators who took over the Oil Ministry in Iraq. But the
steady slide to slip to the Euro from the dollar has continued, with Norway, Venezuela, and Syria moving to the Euro of late. Even
Dubai moved to put a portion of their oil trade in Euros, a reaction to the rebuke by America over the ports management debacle.
What makes Iran so important, given the trend? Norway could hardly be invaded, as what would be the excuse? Venezuela has
been put on the enemy list, but any invasion would be opening a second front, something the military has refused to even consider.
But, as we mentioned, inciting the Iraq violence to spill over into Iran is possible, in the Bush mind, as it would be an extension of
the Iraq front. This in essence forces the US military into Iran, bypassing debate, or so they hope. Iran is the 4th largest in oil
production, and holds the 3rd largest oil reserves, so securing this under US occupation has been a goal of the Bush crowd all
along. But the timing of the saber rattling indicates a financial issue as the precipitator. Few in the US, watching the financial
experts drone on about the DOW as though it were holding steady on its own, would suspect the financial manipulations that go on
behind the scene. The Plunge Protection Team, authorized into law during the Reagan era, allows the government itself to line up
buyers for sellers; insist that sell orders be held until such buyers are arranged; allow military industrial contractors who put their
pension funds at risk to assist in this manner to be compensated via their DOD contracts; and, if all else fails, simply manipulate the
price of stock.
Who would investigate this, the SEC? The SEC is a co-conspirator! Then take the good news the media chirps at the public, the
economy is strong, unemployment down, and inflation in check. None of this is even remotely true, the opposite true in fact, with the
numbers given to the media cooked. Employment statistics are cooked up from birth/death statistics, of all things, and not even
related to actual employment! Then there is the matter of the debt, which requires huge amounts of cash infusions from countries
like China, buying US bonds, to stay afloat. What happens, then, if the US dollar is no longer desired, because it is no longer needed
for the oil markets? The dollar gets dumped. As it drops in value, as it has been dropping in value, it does not make financial sense
for a country or individual to hold onto dollars. One day a dollar bill is worth $1.00, and the next worth only $.75 as the trading
value of the dollar has dropped. Who in the financial markets wants to lose money? For those in the US, this means an increased
price for products produced overseas, and this includes oil and gas.
For countries like China, which have been buying US bonds only because they have such a glut of dollars from the US trade deficit,
the motivation to buy US bonds vaporizes when they no longer have a glut and the dollar begins to drop at an accelerating rate.
The US, to date, has been buying Chinese products more than China as been buying US products, thus the glut. But if the US
citizen, pushed to the brink on credit card debt and now facing a housing bubble burst, can no longer shop, then China loses its glut
of dollars and is no longer inclined to be nice to the US. Thus, the purchase of US bonds by China stops, and the US debt is no
longer funded in a legal manner.
Printing dollars also has a steady eroding effect, which would within months manifest. Each dollar printed without proper backing
dilutes the worth of every other dollar afloat in the markets. So in addition to the rising cost of goods from overseas, due to the
dropping US dollar, the US public would be dealing with horrific inflation. Even a compliant media, told to issue government
statistics without question or comment, would not go along when the price of bread or gas doubles. Desperate times result, the
Great Depression revisited. To prevent this seemingly inevitable future from emerging, the Bush administration hopes to intimidate
Iran into giving up its oil bourse plans, thereby retaining the dollar supremacy in the oil markets, and in particular an oil market
that China uses. This ensures China bond buying, which keeps the tenuous US afloat. Given all of this, what is likely to happen?
The Puppet Master, as we have stated, set out to decapitate the Bush crowd, to eliminate them as rogue Puppets who were
determined to secure the world's oil fields for themselves, for kingship of the world. His weapons have been primarily financial,
raising the interest rates, thus creating problems at home for Bush, but leaks to expose Bush and erode public support have also
been used. These decapitation thrusts have succeeded, but what is the Puppet Masters goal? Beyond weakening the Bush
administration into virtual ineffectiveness, he wants the US out of Iraq, where it has created a mess. The Puppet Master is likely to
create a financial crisis in the US to force the Congress to withdraw from Iraq. Dumping US dollars does not require an oil bourse
in Iran, as it could occur at the request of the Puppet Master instead. The likely outcome is that the US will threaten and bluster,
plant evidence against Iran that the US citizen and the world does not believe, rumble tanks and planes up to the border of Iran,
and there the conflict stops. Support for the US debt will steadily drop, with the US quietly going banana republic at least to some
degree. The US public will suffer the consequences, keeping the pressure on to stop the financial hemorrhage in Iraq that the US
can no longer afford.