Jas Jain comments on what he predicts lies ahead for large democracies:
Blood Will Conquer Money! Therefore, there is lot of blood in the future of America, India and all large democracies. More ethnically diverse a country more blood will flow. Ethnic violence, and not a plague, will cause hundreds of millions of deaths, worldwide, before plagues become a major threat due to loss of law and order following the collapse of the current forms of governments.
-------- Original Message --------
Rich : “Jas. How would this outlier article mesh with your thinking?”
http://www.oftwominds.com/blogaug09/KaPoom2CHS.htm
Hello Rich,
Inflation trend in Argentina as a guide to what lies ahead for America? America is not Argentina, or “Weimar Germany,” or Zimbabwe. America is the latest standard-bearer of the greatest economic and cultural empire, a hegemon, in the world history. The geographical extent of its influence is due to the advances in communications and transportation. If one were to find a single cause for the success of the Anglo-American Empire, rather than a French or a German empire, it is the power that the creditors have exercised over the government, for the past 400+ years, and how these governments have protected and served the creditors at the expense of the rest.
In the case of America it is crystal clear. Bankers of London, then Philadelphia, and later New York City, have had enormous influence on the US govt since its founding as an independent nation except for a brief period under Jackson. Madison, an aristocrat, who had great deal of influence in the writing of the Constitution of the United States of America, wanted no part of the ordinary people having influence over the federal govt and he wanted to make sure that creditors are protected because all landed aristocrats and kings have depended on the god graces of wealthy creditors. I don’t even need to mention what Hamilton thought on the subject. The Jay’s Treaty, in 1795, protected all the British creditors’ claims in the US despite the British defeat in the war. American public was incensed; Jay’s effigy was burned all over the country and Jay, a very able Founding Father, took a huge political fall. Thomas Jefferson owed quite a bit of money to the British creditors most of his life. Wars were won and lost, in most cases, by nations who could borrow more money. The Anglo-American victories in WW I and WW II over Germany had everything to do with much greater access to the capital, or credit, by the governments of the Great Britain and, especially, the United States.
As an aside, the main reason that the Congress Party has ruled India for the most part is that it was supported by the local moneyed interests, even during the British Raj. Before Gandhi came on the scene, Motilal Nehru was one of the most powerful persons in the Congress Party. An elected President of the old Congress party under the British Raj, Subhas Chandra Bose, was forced to resign because he was too radical for the taste of the rich and Motilal forced Bose to resign. We have a Nehru clan ruling India because Motilal Nehru was smart enough to keep the local rich, marwaris, Parsees, etc., happy and remain influential. After being snubbed by Congress leaders Bose fled India and fought on the side of the Germans and the Japanese with support from the two governments! Moneyed people could care less what is fair and what is just as long as they can protect their money and power. India's rich knew that the local (Indian ethnics) politicians were far more corrupt than the British rulers and they would do very well under a local democracy. They have done splendid. What a coincidence!
What is your point, Jas? The point is that there is no evidence of the governments of the Great Britain and the USA ever attempting to inflate away their sovereign debt and screwing the creditors. One simple reason is that the creditors control these governments. The two famous Morgans, during their tenure, were not the wealthiest Americans, by a long shot, but they were more powerful then Carnegie, Chase, Gould, Harriman and the Rockefellers combined. Goldman Sachs and the rest of the gangs took over where the Morgans left even though the Morgan name is still alive and well in two large financial firms. If someone can present a convincing case to me that inflating away the USG debt would be good for Goldman Sachs and the rest of the banking and financial gangs that control the Fed and the USG I will sell my US Treasury holdings and become an inflationist. The Fed has been pursuing a controlled-inflation policy and for the most part it has been fighting deflation with policies to induce ever-increasing consumption debt. The Fed is already losing the fight! The easiest way to incite nationwide riots in America is if the inflation rate reaches 10% and stay there for a year or two and the government does nothing to bring it under control. Depressions are bad enough but inflationary depressions are a threat to the governments and law-and-order, in general.
Inflationists simply don’t understand who all will gain from the Fed and the USG pursuing an inflationist policy and who all will be on the losing end. Any born-and-bred dope that can be made to believe that democracy is the best form of political system, a pure propaganda, is ignorant of history and is incapable of understanding what drives the economic process in America and elsewhere because his, or her, economic view is a propaganda view point. These people are bred so as to be easy to brainwash with “facts” from “experts.” If you think that Americans consume too much junk food you have no idea how much junk ideas they consume in the areas of economics, investments and politics. Doping of Americans has been a systematic process. Inflation dopes are a fine products of that propaganda system.
Are We Approaching the End of the Anglo-American Empire?
Democracy = Domination of Money, or de facto rule of the wealthy. What will end the excesses of the moneyed crooks of Bombay, London, Moscow, NYC, etc? People will fight the crooks with their votes?? For all practical purposes the common voters are politically impotent but since they have been doped since birth they love to vote and feel good about this idiotic ritual.
Blood Will Conquer Money! Therefore, there is lot of blood in the future of America, India and all large democracies. More ethnically diverse a country more blood will flow. Ethnic violence, and not a plague, will cause hundreds of millions of deaths, worldwide, before plagues become a major threat due to loss of law and order following the collapse of the current forms of governments.
Be Safe!
No “expert” on economics and politics,
Jas
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