Adonis Diaries

Archive for November 21st, 2019

If most States are reeling under Sovereign debt, including USA and Japan, from where credit is supplied?

Except China, Norway, Sweden, Denmark, Netherlands and Syria (before the world war on it in 2011), almost all the states in the UN  are reeling under Sovereign debt. The USA alone is over $20 trillion under and Japan over $3 trillion under.

Question: if recently China managed to be a creditor, whatever saving China made, cannot cover a tiny part of world’s debt, (excluding the USA and Japan debts that are beyond comprehension in any scale), then how this financial system is still working?

The USA ceased to be a productive country around 1967 and rom the Gold. Since then, most of US goods , are produced by a third country, and US consumers are relying on third parties to supply their demands.

In fact, the USA has been functioning within a Ponzi system: country buy US treasury bills because the dollars is the world main currency, and the US use this influx to pay its civil servants and its military infrastructure.

Do you know that Japan with a huge sovereign debt buys US treasury bills by the trillion every year? Sure China also buys these bills by a trillion each year. and at a lower scale follow Britain and Saudi Kingdom.

Obama warned the British before the Brexit vote (Exiting the EU):Do Not rely on the USA to back you in your troubles years“. The tiny Brexit majority didn’t take his warning seriously.

Donald Trump has dropped the mask on this Ponzi scheme that has been going on for 6 decades. Trump has started to blackmail any country with surplus money if they still want to rely on US (psychological) military support.

Recently, Trump demanded from Japan and South Korea to pay for US military presence, though Japanese masses have been pressuring the US to withdraw their forces for decades now.

Trump even backed down on his will to withdraw his military presence in Syria in order to exploit the Syrian oil fields, and for free (US highway robbery that doesn’t give a damn of any UN principles).

With shortage of money to buy ridiculous weapons they don’t need, the Saudi Kingdom and the Gulf Emirate are reverting to finance US mercenaries for protection of their unstable “absolute monarchic” powers

So far, US federal budget is covered by China and Japan buying treasury bonds by the trillion.

The Western colonial powers have been supporting one another through short loans at very low interest rate (less than 3%) and then re-lending to the developing nations at 8%.

Now and then, the USA creates a world financial crisis in order to erase part of its past sovereign debts through financial “engineering” malevolent practices that punish the poorer classes around the world, with No exception.

And the USA then rely on the International Monetary Fund (IMF) to lend money at exorbitant interest rates with conditions to charge the poorer classes to cover the deficit in their States.

Actually, Not a single State that borrowed from the IMF managed to deal with its conditions without a major mass upheaval. Even European countries are No exceptions.

This mechanism of transferring fictitious wealth through engineered financial transactions is at an end, as China and Russia have decided to have their own financial transaction scheme.

Lebanon, a non-productive tiny country with no raw material, is Not the first State that lived on a Ponzi scheme for 3 decades. The USA has been sustained in a Ponzi scheme for 60 years by now, since it ceased to be a productive country.

So far, the financial structure in the world is still functioning under a Ponzi scheme, a scheme that cannot be sustained. Basically, Asia Far Eastern countries (China, India, Viet Nam, Malaysia, Cambodia, Indonesia….) are shouldering the burden by hard working productive activities.

Once China decides that great “growth” is Not the name of the game, but enough productive scale for self sufficiency and to satisfy its close allies, then China will desist from buying US bonds, and the US will have to face this calamity of relying on its Ponzi mechanism.

World World III is not possible against direct war with China or Russia, and China will play the “deep pocket” for the countries resisting US military hegemony.

Note: In all of the financial crashes of 1982, 1990, 1997 and the 2008… the presidents of central banks of the (colonial powers) meet in Bale (Switzerland) to swap papers. The rich get richer and the small creditors are buried under papers




November 2019

Blog Stats

  • 1,522,310 hits

Enter your email address to subscribe to this blog and receive notifications of new posts by

Join 770 other subscribers
%d bloggers like this: