Financial War: Quantitative Easing as a Weapon
V. Susan Ferguson, Contributor
For those of us who thought quantitative easing, QE, was just another incomprehensible mad policy created by the helicopter-Ben Bernanke guy, the book “Currency Wars: The Making of the Next Global Crisis” (2011) by James Rickards, an economist and investment banker, corrects this misunderstanding with intelligent evidence that quantitative easing is a weapon.
War is always inevitably about money. Currency wars reoccur throughout history, and there are instructive precedents. Currency wars are an “attack on every stock, bond and commodity in the world.” Rickards says that currency wars always end badly. The investor Jim Rogers has also been warning that this is going to end badly. No one knows when.
The Global Currency War is waged to gain an employment advantage for one’s population. Rickards says that after the crash of the housing bubble in 2008, the Federal Reserve (FED) began the policy of quantitative easing (QE) to make the U.S. dollar competitive against the Chinese currency, which the Chinese had maintained at artificially low levels to gain a trade advantage.
Flooding the world with dollars makes the dollar go down in value, and thus US goods can be sold abroad more cheaply. This adds to employment in the USA – and decreases employment elsewhere. China needs to create employment for the millions of people flooding from the farms to the cities looking for work, while the USA needs to create jobs for the millions of people who have lost their jobs since the housing meltdown in 2008.
Losing faith in the U.S. Dollar
When the rest of the world understood what the FED was up to, they decided to do the same, to protect the jobs for their populations. Thus began a Global Currency War which is destroying faith in the USD and has been throwing world markets into disarray ever since. The recent debt ceiling crisis in Washington DC only exacerbated this.
James Rickards explains that the U.S. dollar is on the verge of losing its status as world currency, and in danger of virtual collapse; that collapse may be weathered, but with great loss to individuals and even to the threat to national security. Because the USD is now the currency used in world trade and petroleum (petro dollars), the collapse of the USD will bring about catastrophic consequences – some intended, others unknown. As Rickards explains, “When the dollar collapses, the dollar-denominated markets will collapse too. Panic will quickly spread throughout the world.”
A currency war, just like any other war, demands secrecy. World governments absolutely do not want anyone to know what they are up to regarding their endeavors in financial wars. That would be stupid. Therefore no one has made an effort to inform the general public that we are in the middle of a currency war and have been so since at least 2008. There are reports from intelligent financial sources, but most of us don’t have the knowledge required to understand the scope and consequences of a currency war.
Quantitative easing is a weapon
China was ignoring demands made by the U.S. government, and so it became useful to continue QE. These men are not stupid, neither are they saints. They are Machiavellian brilliant strategists, who like all ambitious egotists, hope to win a dangerous high-stakes game. The outcome will change our world.
Rickards paints a possible scenario for the collapse of the U.S. dollar. One day, really this could happen any day now, a European bond auction fails and like the proverbial falling dominoes: the Euro, the USD, pension funds, hedge funds, panic ensues, spreads to New York, around the world, and the “avalanche begins” as all investments held in U.S. dollars, which are now perceived as worthless, collapse in value. Money searches for hard assets, gold, oil, and farmland.
Rickards says that the IEEPA, the International Emergency Economic Powers Act is already in place and will allow the U.S. President to take control – as in close markets, freeze assets, confiscate gold, etc. Rickards’ future speculations can be wrong, like all predictions. You will want to read them and decide for yourself, once you have read his illuminating history of currency wars.
If the U.S. dollar collapses…
I’m not suggesting that this collapse is going to be a cakewalk, or that we have nothing to worry about. But I want to make it clear that there are historical precedents for both currency wars and paper money collapse. This has happened before. Most of us, including myself, do not know enough about economics or the recent developments in this ‘dismal science’ that have evolved with the digital age to fully understand. How many of us know that much about derivatives, algorithms, repos, swaps, and SDRs? Rickards’ book is a good way to learn.
Confusion is control!
When the people we trust keep secrets, or worse lie to us, we begin to imagine, to make things up, anything that will give us explanations – even if they are wrong. This in my view is what has happened on the Internet and the reason we are drowning in a tsunami of misinformation, rubbish conspiracies bordering on fearful hysteria, many of which have been brewed up by those stand to profit – and who like the old carnival sharks, know just how to keep the crowd worked up.
If we, and I include myself in this, spent even half our time studying history and economics as we do reading titillating conspiracy websites, we might have some idea of the real world – and not some fear-loaded half-baked nonsense! The word conspire means to breathe together.
Metaphysics in the Sanskrit texts is what I usually write about. I am not an economist – but like you, I want to know the truth. I am sick and tired of being lied to by my own government, the media, and by self-serving snake-oil peddlers. Yes, there are globalists who want to control the world, but they have tried before and failed. They will fail again and soon. Russia, China, Iran and Brazil are diversifying out of the U.S. dollar and forming their own alternatives to the petrodollar.
Obfuscation, distraction and ignorance serve those in control. I urge you to read James Rickards’ book for yourself. It is the best assessment of our current predicament and financial warfare I have found to date. As they say, follow the money.
Watch the video Rickards recommends, linked below that clearly and simply explains how the Federal Reserve creates currencies and debt. How can we hope to win, when we don’t even know how the game is played? Until we become correctly and intelligently informed, we remain Quixote’s charging at windmills.
About the Author
V. Susan Ferguson is the author of Inanna Returns, Inanna Hyper-Luminal; her own commentary on the Bhagavad Gita and the Shiva Sutras; and Colony Earth & the Rig Veda. Her website is Metaphysical Musing.
~~ Help Waking Times to raise the vibration by sharing this article with the buttons below…