Over the years, our blog has made a number of forecasts, which seemed outrageous when we made them, but turned out to be correct over time. Please ponder over the today’s one and feel free to comment. I am leaving for airport and will add full post after finding a good wifi somewhere.
Who is your ruler?
One of the first things newcomers to USA notice is that the state capitals are not located in the largest and most well-accessed cities within the states. The capital of New York state is in Albany, not New York. The capital of Illinois is in unknown Evansville, not Chicago and the capital of California is neither in San Francisco or Los Angeles, but in Sacramento. Boston, Massachusettes is possibly the only exception. The reason for this, as is explained, is that the largest cities are already burdened with trade, commerce, manufacturing and transportation. Therefore, it is prudent to decentralize and take away the extra load of government activities on top of existing ones.
That explanation presents one with another dilemma - why did not anyone else think of it before? The act of moving the government away from the largest city ended in disastrous failures in two rare examples of the last thousand years of Indian history. One of them got the ruler labeled as a crazy guy forever, and the other one marked the beginning of the end of British Raj in India. Rulers and their associates love to be the center of attention and stay right in the middle of the largest cities.
It took me a decade to figure out the real answer. As it turns out, the rulers of US states and nation are indeed located right at the centers of the biggest cities, but we do not (or rather did not) know them as such. If you go to the centers of the big cities in USA, you see large banks. USA is a country run by banks and bankers, whereas the politics is subordinate to them. That is not an unique insight any more in 2015, and many have come to the same conclusion since the financial crisis of 2008.
Peculiarities of banking-led empires
Within US, the northern states followed the above model since early days of the country and south was fully brought in after the civil war. Post-WWII, US has been trying to take over most other countries by expanding this banking empire. The process involves -
(i) control of central bank through organizations like IMF
(ii) control of money and credit through central bank
(iii) control of media
(iv) support of ‘democracy’ without losing control of (i-iii).
Once the banks are controlled, the remaining industries can be easily taken over through a process of credit inflation, deflation and selective violence.
One can write an entire book on the above process, but I do not need to because many such books are already out there. John Perkins’ Confessions of an Economic Hit Man is fairly good.
According to his book, Perkins’ function was to convince the political and financial leadership of underdeveloped countries to accept enormous development loans from institutions like the World Bank and USAID. Saddled with debts they could not hope to pay, those countries were forced to acquiesce to political pressure from the United States on a variety of issues. Perkins argues in his book that developing nations were effectively neutralized politically, had their wealth gaps driven wider and economies crippled in the long run. In this capacity Perkins recounts his meetings with some prominent individuals, including Graham Greene and Omar Torrijos. Perkins describes the role of an economic hit man as follows:
Economic hit men (EHMs) are highly paid professionals who cheat countries around the globe out of trillions of dollars. They funnel money from the World Bank, the U.S. Agency for International Development (USAID), and other foreign “aid” organizations into the coffers of huge corporations and the pockets of a few wealthy families who control the planet’s natural resources. Their tools included fraudulent financial reports, rigged elections, payoffs, extortion, sex, and murder. They play a game as old as empire, but one that has taken on new and terrifying dimensions during this time of globalization.
Violence in a banking-led empire
Banking-led empires cyclically go through violent phases, coinciding with the terminal phases of debt deflation. They are essentially a part of the debt- collection process. The way it works is that the bankers, through their control of politicians, pass the debt on to people. The people eventually revolt and are brought under control by use of force. A country can also externalize violence and WW II is a classic example for the banks of New York.
Russia in the above context
The above introduction is necessary to provide context for the main topic of this blog post. The banking-led empire is going through another cycle of debt deflation, and everyone realizes that it will end in a war. The question is where.
US learned from the experience of WW II that they became strong, when the Europeans fought each other. So, US has been trying hard to start a war between European countries and Russia. Russian government, on the other hand, has figured out the game-plan of the banking-led empire and is trying neutralize them. One such action, which will surprise everyone when it is announced in 2-3 months, is unification of Korea.
Those failures in starting a large scale war in Europe are frustrating Americans immensely, and they are increasing the amount of propaganda. As an example of extreme propaganda, in the video attached in the top of the post, a Fox news analyst announced that US government should start killing Russians. They realize that if they cannot externalize the deflationary war to Europe, then it will come to US. Either way, Russian scientists and engineers, who emigrated to US after 1990, will increasingly feel pressurized to move to Russia.
Russia as a country
At present, Russia is one of the strongest countries culturally, socially and scientifically. Therefore, moving to Russia for Russians under politically humiliation in USA will not be the same as Somalian Muslims moving to Somalia after being harassed after 9/11. The population growth in Russia will soon exceed US, and a growing country always offers more opportunities.
To summarize, the combination of above dynamics - (i) deflation and declining quality of life in US, (ii) hostility toward Russians due to US elites’ desire to externalize war and (iii) improving quality of life in Russia - will result in exodus of Russians from US.