Adonis Diaries

Posts Tagged ‘speculative financial institutions

Two-head world presidency: Time to bite the bitter pills

Global institutions for trade, commerce, and finance have faltered after the latest financial crisis, and the world superpowers were unable to remedy for the dwindling economic production and market stability.

Every powerful nation is acting on his own to stabilizing its internal problems:  cooperation in the many economic and financial summits proved to be weak and short-sighted.

Most powerful States know that soon the world will be led by the two-headed presidency: The US and China. 

The US, supported by the western powers and Japan, will be responsible for the planning and providing the know-how; while China, supported by the Far Eastern countries will be responsible for the execution of the programs and production. 

The emerging powers (vast lands and large population) such as Russia, India, Brazil, Turkey, Nigeria, and Indonesia will play the current role of the US:  Mainly absorbing the excesses in production and exporting the needed raw materials.

Why the US and China?

The US currently dominate the world’s institutions such as the World Bank, the International Monetary Fund, the World Trade and Commerce organization and the most powerful multinational financial institutions; it has the institutions and the know-how for setting the programs in this Capitalist market.

China has the cheap manpower and a dictatorial central power to moving and transferring millions of workers to far away locations in order to quickly execute programs that “democratic” political structures are slow to perform within tight schedules.

Currently, several members of the old club of the G8 (specifically the US and England), within the G20 of the States that grab 80% of global commerce, had implicitly agreed to resume their old-time preferred method for quick money generation: by accelerating speculations on overvalued currencies and higher interest rates in banks of emerging nations such as Brazil, Turkey, South Africa, Argentina, South Korea, Russia, and China.

Thus, the US and England got their money printing machine in full gear, producing liquidity that far exceeds the need of their internal trade market.  They lend money at reduced interest rates (1 to 2%)  to speculative financial institutions so that they invest the money in emerging State banks.

The old club of the G8 are instituting harsh budget cuts affecting primarily the lower middle class in their societies, this class that consumes 70% of internal trade and effectively shoulders the economy.  Thus, economies in the G8 are not to experience any improvement.

The two-head world power system is inevitable; but for this new world order to be swallowed, a major war is to be created for effective demonstration of its feasibility.

Consequently, WikiLeaks has targeted the diffusion of so-called secret foreign policies that are meant to point out the main next enemy (agreed upon by most powerful States such as US, China, and Russia):  Iran.

The North Korean conflict is but a smokescreen or preliminary military joint maneuver by the major States and ironing out the sphere of influence.

Note:  Current currency speculation by major powers has the following consequences:

First, it destabilizes the financial order in the emerging nations and slows down the expansion of its economy with the implicit political message: “You have accelerated your economic plans to counter-weight the political clout of the G8 club.  This policy is premature and done at the wrong timing.  Take a deep breath before confronting us head on so quickly”

Second, the major drawback for the G8 is that their internal trades will be handicapped since liquidity is not infused to the small and medium industries and enterprises that account for real changes in economic development.




June 2023

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