The pentagon and US intelligence establishment is now mostly in support of the White Dragon Society but only if certain conditions of theirs are met, a US representative told the WDS. The Pentagon wants Obama to remain as president. They also want a debt jubilee and a gold backed dollar. They also support the projects to turn the deserts green and replenish the oceans with fish. The pentagon and the agencies also say that if their conditions are not met, they will open the “black screens” and reveal information that will lead to “thousands of arrests.” These positions will be discussed at a meeting in China later this week.
The Pentagon seems to be trying to strengthen its bargaining position by heating up disputes in places like Vietnam and Korea. They are also, of course, still keeping open the threat to close off the straits of Hormuz. This is all just for bargaining purposes.
What the Western Oligarchs need to remember, as they battle over control of the global debt facility, is that above the global debt facility is something known as the global credit facility. The ability to create new dollars and Euros out of the ether and put them into bank computers is meaningless unless these currency units are actually backed by something that exists in the real world. In other words, right now world annual GDP is worth about $60 trillion and yet these banks claim to have a 1 with 46 zeros after it amount of dollars in their accounts. Clearly a lot of those zeroes will have to be erased if the Western financial system is to return to reality.
The Chinese proposal to use a basket of 30 or so commodities, including gold and platinum, to back these currencies, makes sense. The Americans also need to realize that they will not be able to rebuild a competitive industrial structure unless they decouple their own national currency from the international currency now known as the US dollar. The devaluation would lead to a temporary drop in international purchasing power but the boom set off by the civilian development of some of the 6,000 patents now suppressed for “national security reasons,” would make this a very quick adjustment prior to a new boom-time.
The Mediterranean countries like Greece, Italy and Spain probably also need to issue their own currency. Without a unified work ethic and fiscal policy, a unified currency does not work. A cheap Mediterranean currency would boost tourism and exports and lead to real economic improvements.
Endless bail outs will only kick the can down the road a bit more but result in greater ultimate pain.
Meanwhile, a bank account for the White Dragon Foundation has been approved and the WDF will solicit institutional donations to be used towards the establishment of an international economic planning agency.
The agency would carry out long term economic development projects too large for individual governments or corporations to carry out. This would be a meritocratically staffed agency. It would complement rather than replace functions now carried out by the IMF and the World Bank. These institutions, of course, will need to undergo a major audit and change in culture.
The Chinese have now, this Xinhua article:
implies, begun to back Agustin Carstens, the Mexican central bank governor, as the new head of the IMF. They correctly argue that since the next big IMF bailout will be to help Europe, there would be a conflict of interest if a European was put at its head at this time. Carstens also supports a reform of the voting structure at the IMF to reflect current, as opposed to post-World War 2, economic realities.
The timing for the announcement of the new financial system is still not clear. There is still some very serious horse-trading, accompanied by nuclear blackmail etc. going on in the background. However, the summer solstice and a full lunar eclipse will coincide on June 21st so that might be an auspicious day for an announcement. It is best not to get too fixated on dates though.