by Harley Schlanger, Rogue Money:
January 26 — In the first weeks of the new year, four inter-related dynamics of the global strategic situation are coming to a head, in a manner which means that, unless the coup underway against U.S. President Donald Trump is stopped, the world is moving on a fast track to a potential nuclear confrontation between the United States, and Russia and China.
First is the ongoing financial component of the crisis. Despite the lies from leading Trans-Atlantic governments, from the swindlers of the Too Big to Fail banks and shadow banking operations, and from their facilitators running central banks — such as the Bank of England, the U.S. Federal Reserve, and the European Central Bank — all proclaiming that a robust global economic recovery is underway, the debt-bloated financial system is in reality headed for a collapse more devastating than that of 2008. There has been a proliferation of warnings to that effect, which echo the analysis of U.S. economist Lyndon LaRouche, who accurately forecast the collapse in 2008 of the mortgage-backed securities bubble.
This was further usefully amplified by the former chief economist of the Bank for International Settlements, William White, who told the Daily Telegraph‘s Ambrose Evans Pritchard on the sidelines of this week’s Davos gathering that the collapse of the present debt bubble is inevitable, due to the “Catch 22” caused by the virtually zero percent interest policy of the central bankers. This has been “pouring more fuel on the fire,” White said. “Central banks are now caught in a ‘debt trap.’ They cannot keep holding rates near zero as global inflation pressures build because that will lead to an even more perilous financial bubble, but they cannot easily raise interest rates either because it risks blowing up the system.” White has repeatedly argued that the economic models in use today for trading such financial instruments as derivatives, swaps, etc., are terribly flawed, and that they would lead to “unintended consequences”, including possibly a chain-reaction debt collapse. Like LaRouche, White forecast the financial crash of 2008.
Even as the financiers and corporate elites are toasting each other in Davos for their genius in running up the world’s biggest bubble ever, there must be an awareness among some of them that the collapse of this empire of debt could mean the end of their dominance and privilege, perhaps giving them an “apres moi, le deluge” moment!
Second, is the resurgence of the utopian neocons, from both inside and outside the Trump administration, scheming to prevent the president from fulfilling his campaign promise to end their domination of foreign and military policy. Trump’s pledge to seek positive, collaborative relations with Russia and China poses an existential threat to the neocons and their imperial financial and corporate patrons, who have employed geopolitical manipulations to maintain their power since the end of the Second World War. They dominated the strategic policy of the Bush and Obama administrations, launching numerous wars, running a coup in Ukraine, extending the NATO deployment eastward to the borders of Russia, and engaging in a confrontational military posture with China in the South China Sea. During his campaign, Trump warned that the provocative policies and the “endless wars” of the two previous administrations would be continued were Hillary Clinton elected. He pledged he would put an end to “regime change wars”, which he charged had cost trillions of dollars and resulted in millions of casualties, worsening the security situation facing the U.S. and its allies. He also promised to establish friendly relations with Vladimir Putin, to collaborate in defeating terrorism.
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