Sunday, January 31, 2016
The IMF’s Latest Move to Kill the U.S. Dollar
BY DAMON GELLER
As we predicted months ago, the IMF officially green-lighted the acceptance of China’s currency – the Yuan – into the IMF’s foreign exchange basket. According to Reuters, this move paves the way for the IMF to place the yuan on a par with the U.S. dollar. This is the latest in a series of global developments that threatens to eliminate the U.S. dollar as the world’s reserve currency. Experts predict this announcement will trigger one of the most profound transfers of wealth in our lifetime. So if you want to protect your savings & retirement, you better get your money out of U.S. dollar investments and into the one asset class that rises as currencies collapse.
The IMF Holds Supreme Power
The International Monetary Fund, or IMF, is one of the most secretive and powerful organizations in the world. They monitor the financial health of more than 185 countries. They establish global money rules and provide “bail-out” assistance to bankrupt nations. Some are warning that any move by the IMF to supplant the U.S. dollar could be catastrophic to American investments.
And now, the IMF has made the first move. As reported by The Wall Street Journal, the IMF officially green-lighted the acceptance of China’s currency – the Yuan – into the IMF’s foreign exchange basket. This marks the first time in history the IMF has expanded the number of currencies in the foreign exchange basket. This means that the Chinese currency will now become a viable global alternative to the U.S. dollar.
According to Juan Zarate, who helped implement financial sanctions while serving in George W. Bush’s Treasury department, “Once the [other currency] becomes an alternative to the dollar, rules of the game begin to change.”
Leong Sing Chiong, Assistant Managing Director at a major central bank, said this dollar alternative “is likely to transform the financial landscape in the next 5-10 years.”
Currency expert Dr. Steve Sjuggerud warned, “I’ve been active in the markets for over two decades now, but I’ve never seen anything that could move so much money, so quickly. The announcement will start a domino effect, that will basically determine who in America gets rich in the years to come, and who struggles.”
Dr. Sjuggerud says if you own any U.S. “paper” assets—and that includes stocks, bonds, or just cash in a bank account–you should be aware of what’s about to happen and know how to prepare. A number of experts believe a recent spike in gold and silver prices is a direct result of the IMF’s action. Precious metals notoriously rise when the U.S. dollar falls.
The Death of the U.S. Dollar in One Frightening Graph
For the last 600 years, there have been six different global reserve currencies controlled by world superpowers. The latest – the U.S. dollar – has dominated world currency for over 80 years. The alarming fact is, global reserve currencies have collapsed every 80-90 years for the last six centuries! What does this mean for America and the dominance of the U.S. dollar? Based on recent evidence and long-standing historical trends, experts predict the imminent collapse of the U.S. dollar! What’s more alarming? Many Americans aren’t yet doing the one thing that will save their savings & retirement from U.S. dollar collapse.
Just take a look at the graph below. It shows the lifespan of dominant currencies going back 600 years. Notice that the U.S. dollar has now been the dominant currency for 88 years, about the same length of time as its predecessors:
It’s obvious why experts say that the U.S. dollar’s days as the world’s reserve currency are coming to a climactic end.
All Fiat Currencies Collapse
“Fiat” currency is paper currency backed by nothing tangible. As opposed to “sound money” which is was backed by gold or some other valuable commodity, a fiat currency is backed by nothing more than faith in the government. The U.S. dollar has been a fiat currency since Nixon closed the gold window in 1971 in what was the greatest heist in American history. The scary fact is, the average life span of a fiat currency is 40 years, and the U.S. dollar has now exceeded 40 years as a fiat currency!
Prior to 1933 and for well over 100 years, the dollar was backed by gold, and $20 bought you an ounce of gold. But after the government stole all U.S. citizens’ gold in 1933 for a $20 paper certificate, gold was revalued at $35 U.S.D., meaning the dollar was devalued by 43% overnight and all foreign and domestic holders of dollars were effectively robbed.
After Nixon closed the gold window completely in 1971, it took $67 to buy an ounce of gold, devaluing the U.S. dollar by 50% again. Today, it takes well over a thousand U.S. dollars to buy that same ounce of gold. Why? Because the U.S. dollar is now nothing more than a fast-declining Federal Reserve note backed by a corrupt government that is saddled with $18 trillion in unpayable debt — growing by $10 million per minute!
Saturday, January 30, 2016
The US is starting to think that North Korea might actually have tested hydrogen-bomb components
North Korea’s claim that it detonated a hydrogen bomb during an apparent nuclear-weapons test on January 6 were widely dismissed by experts and the US government as well. But it turns out that Pyongyang might have tested components from a hydrogen bomb after all.
According to CNN, inconclusive sampling of air near the test site by US spy aircraft, along with the unusual depth at which the test is believed to have occurred, have led some US officials to suspect that North Korea actually did test elements of a hydrogen device.
“The test was conducted more than two times deeper underground than originally assessed — at a depth consistent with what might be needed for a hydrogen bomb,” CNN reports, while cautioning that “the size of the seismic event and other intelligence indicates it was not likely a fully functioning device.”
Seismic information indicates that North Korea tested a weapon with a comparable explosive yield to the nuclear device the country detonated during its last previous test in 2013 — a 10-kiloton bomb that created a fireball one-fifth of a mile wide. After the January 6 test, numerous arms-control experts said it was highly unlikely that North Korea had tested a hydrogen bomb, though possible it had tested a more typical fission-based atomic weapon “boosted” with hydrogen isotopes for increased yield.
Even a failed test of hydrogen-bomb components could signal an alarming shift in North Korea’s weapons capabilities.
A hydrogen bomb, aka a thermonuclear weapon, uses a plutonium- or uranium-based reaction to heat hydrogen isotopes, creating a kind of nuclear-feedback loop with the potential to dramatically boost the amount of energy that reaction ends up releasing. A thermonuclear weapon is more complicated and destructive than a typical atomic bomb.
As Alex Wellerstein, a nuclear historian at the Steven Institute of Technology and creator of Nuke Map, told Business Insider on January 6, a country that’s mastered thermonuclear-weapons design suddenly has a number of possible options open to it.
For instance, a country with a thermonuclear capability could build “a very thin-cased bomb of low yield [in this case 1 to 10 kilotons, or 1,000 to 10,000 tons of TNT] that would emit a lot of radiation relative to its blast power.”
The so-called neutron bomb, or “enhanced radiation,” weapon isn’t all that hard to develop once a country has mastered more basic hydrogen-bomb technology.
North Korea would still face the technical hurdle of miniaturizing a hydrogen device for delivery by ballistic missile. The US wasn’t able to construct a functioning neutron bomb of any size or weight without extensive testing, and North Korea may not have the testing data or carried out the trial-and-error process needed to actually build a functioning hydrogen device.
A Russian Su-27 jet fighter came within 20 feet of a US RC-135 reconnaissance aircraft over the Black Sea on Monday in Moscow’s latest military provocation involving dangerous aerial encounters.
“On Jan. 25 an RC-135 aircraft flying a routine route in international airspace over the Black Sea was intercepted by a Russian Su-27 in an unsafe and unprofessional manner,” Navy Capt. Daniel Hernandez, chief spokesman for the US European Command, told the Washington Free Beacon. “We are looking into the issue.”
Defense officials said the Su-27 flew alongside the RC-135, an electronic intelligence-gathering aircraft, and then performed what they said was an aggressive banking turn away from the intelligence jet.
The thrust from the Su-27 “disturbed the controllability” of the RC-135, said one official familiar with details of the incident.
A second official said the reconnaissance aircraft was flying 30 miles from the coast—well within international airspace and far away from any Russian territory—at the time of the encounter.
The Pentagon announced Thursday that it has concluded a flight safety memorandum with Russia after holding a video conference with Russian Defense Ministry officials.
The areas of discussion included air safety over the skies in Syria as well as “the means to avoid accidents and unintended confrontation between coalition and Russian forces whenever the two sides operate in close proximity,” Pentagon spokesman Peter Cook said in a statement.
The statement made no mention of Monday’s dangerous aerial encounter.
The Black Sea encounter was the latest in a series of aggressive Russian military activities aimed coercing or harassing US military aircraft and ships in both Europe and Asia.
The provocations are not limited to US forces. On Tuesday, Japan’s Defense Ministry revealed that Japanese interceptor jets were scrambled to chase two Russian Tu-95 Bear bombers that approached the northern end of Japan and flew just outside that country’s airspace in maneuvers described by analysts as unusually close.
Other incidents included a similar near-collision between a Russian fighter and RC-135, a militarized Boeing 707, over the Black Sea on May 30. Around the same time, a Russian Su-24 jet buzzed the destroyer USS Ross in the Black Sea near occupied Crimea.
Earlier, on April 7, another Su-27 flew within 20 feet of an RC-135, this time over the Baltic Sea.
The RC-135 intercept over the Black Sea took place around the same time as a Russian Su-24 jet interceptor buzzed the destroyer USS Ross in the Black Sea, near occupied Crimea.
Navy footage showed the jet made several low-level passes over the Ross.
In October, two Russian Tu-142 bombers made low passes near the aircraft carrier USS Reagan as it sailed in the Sea of Japan near the Korean peninsula.
Navy F-18 jets were scrambled to intercept the bombers during that incident.
And last July 4, two Tu-95 nuclear-capable bombers flew within 40 miles of the California coast and communicated a “happy birthday” message to intercepting US pilots. That incident took place the same day President Obama held a telephone conference with Russian leader Vladimir Putin.
Russian Tu-95 bombers also circumnavigated Guam in December, for the second time in two months. Guam is the US military’s major hub and a key facility in the American military rebalance to Asia.
“Much of what Russia is doing today is aimed at generating fear of Russian military power and the possibility of war,” said former Pentagon Russia expert Mark Schneider.
“That is broadcast on a daily basis in the state media and through Russian military actions,” Schneider added. “Provocations involving aircraft are now common place. Russia also tends to be paranoid concerning foreign espionage and the protection of state secrets.”
Adm. Cecil Haney, commander of the US Strategic Command said Russian military activities, including aircraft flights, are an increasing concern as Moscow seeks to reemerge as a world power.
Haney voiced concerns about Russian nuclear-capable bomber flights around the world, and large-scale ground forces nuclear exercises, along with vocal statements threatening the use of nuclear weapons.
Russian military aircraft have been conducting flights in Europe without the use of air-traffic control tracking transponders, a practice Haney called “reckless.”
Russia has stepped up aggressive military activities in response to NATO’s deployment of forces closer to Russian borders following Moscow’s military annexation of Ukraine’s Crimea and continuing covert military destabilization of eastern Ukraine.
NATO has increased its force posture with additional military exercises, troop deployments and increased intelligence-gathering to support NATO allies that are threatened by Russian military revanchism.
Russia announced a new military strategy in December that increases the country’s reliance on nuclear forces over conventional troops and weapons.
Russia also is expected to announce a new military doctrine, a senior Russian commander announced on Tuesday.
Maj. Gen. Sergey Chvarkov, deputy chief of the general staff academy said the United States is seeking to weaken Russia and is creating new national security threats to Moscow.
“At the foundation of the negative development of the international situation lie the USA’s actions, which in striving for global hegemony intentionally forms global instability to weaken strategic opponents, primarily Russia, creating national security threats to our country,” Chvarkov said, according to the state-run RIA Novosti news agency.
Western policies are fomenting global and internal conflicts that have produced the flood of refugees in Europe, Chvarkov said. He added that the West is waging “information war” on Russia.