Clashing Elites: Failure and Fortune Re-Imagined

The trillion dollar stimulus package that has primarily gone toward bailing out American industry, was financed by its major debt-buyers, like Japan, UK and China. The US is once again selling debt through the Federal Reserve to to stabilize the US economy, other Western nations will likely follow suit– just as bad debt was sold to Japan and others in the years preceding the financial crises of 2008. The Dollar wasn’t un-pegged from gold until the 1970s, which made oil and its perceived trustworthiness to pay its debtors its major value. In 2012 that confidence was eroded when the US had its first Standard and Poor downgrade and the US congress’ displayed an unwillingness to raise the debt ceiling. With the erosion of trust, the last bastion of US currency strength fell to its position as a petro-currency.

As the world continues to reorder itself, it’s clear there are going to be winners and losers. It seems Japan—and Brazil might be on that losing end, as both are the largest holder of US debt. China at one time held a sizeable chunk of debt but eventually began to divest quickly as the cracks in the began to appear during the 2008 Economic Crisis. The idea of an elite China that held massive reserves of US Debt began to fade, and China sought to create a new stability—a new, more independent elite system that created real strength and long-term sustainability for China and its allies.

China at one time held a sizeable chunk of debt but eventually began to divest quickly as the cracks in the began to appear during the 2008 Economic Crisis.

In contrast, Japan has been grappling with its debt reality since it holds, 1.26 Trillion in U.S. treasury holdings as of April 2020, according to current U.S. Treasury data . Recall that the US Federal Reserve sold debt to shore up the flagging Covid-19 Struck economy. But, who is eating that bogus debt?–likely unwitting nations like Japan, UK, Ireland and African states who buy dollars to hedge their bets. Lehman Brothers were among the dubious mortgage giants selling bad debt to nations like Japan, with the help of credit rating agencies who gave them high AAA grades, despite their high risk. Japan and other debt-buying nations have been swallowing the failure of Western institutions and a flagging world system for years now. Even Ireland is the fifth largest holder of US debt. According to an official 2020 Executive Order, it was recently added to the expansion of E3 Migration Guidelines under the Australia United States Free Trade Agreement (AUSFTA) allowing more Irish migration to the US.

In the current order, it is important for nations to keep buying malignant debt, to keep the current system operating. Without it rich states like Canada could not afford trillion dollar stimulus packages aimed at salvaging its beleaguered industries. Without it, many rich nations that pull money out of thin air (their Federal Reserves) could not compete.

Without it rich states like Canada could not afford trillion dollar stimulus packages aimed at salvaging its beleaguered industries.

The emerging problem now, is that other nations who have upheld these unbalanced financial conventions are re imagining what it means to be truly elite. The impact of the corona virus illustrated how many “elites” got the short end of the stick. Trapped in dysfunctional systems and inert economies, leaders have had to re-think the poor-man-elite status. What if elite, could truly mean elite—without the need to tow the line to help keep already decadent nations on top? Many nations are beginning to re-envision an elite class that includes more of their own populations, provides a comparable standard of living for their rank and file citizens as well as provides greater protections and defense against disasters natural and manufactured.

The current post World War II elite structure is not only being questioned it is revealing itself to be faulty. While some old regime factions are trying to wrest loyalty from crow-barred “allies,” the impetus to keep such alliances look less and less viable. Allies are proving much more cautious, unilateral and diplomatic than in the past. It has been difficult to instigate old squabbles and draw a proverbial line in the sand when so many economies are sagging under the old order.

In fact it is the Saudi Nations to which the US must truly bow down and the American public ransomed as the US relies heavily on its relationship with Saudi Oil and US dollars. The control in oil prices helps the US currency remain not only viable in the purchase of oil, but legitimate in value. The UK, Canada, and Dutch all hold petro-currencies, and thus owes its wealth to the Saudi titans. The 1944 Bretton Woods Conference established the Us dollar as the worlds reserve currency and in 1945 an agreement between the US and Saudi Arabia established the petrodollar. In 1970, the petrodollar became principal for the US, after it un-pegged the dollar from gold and created an updated agreement with Saudi Arabia. The dollar, as well as the British Sterling Pound, the Canadian dollar and (at one time) the Dutch Guilder became Petro-currencies that ruled the market with the help of Saudi oil pricing. Petro-currencies correlate with oil prices.

Saudi is principally a titan in the West, because of its long history of both slavery and oil wealth. Currently, it seems the Judeo-Christian West has bowed the knee to the Imams of the Saudi crown to keep their economies afloat. In much the same way the US sold its manufacturing and trade birthright to the far east, it also staked its financial strength on the Middle East. In June, as many nations are struggling to gain footing, the US made a surprising Saudi human rights reversal. After only 12 month on the US List of top human traffickers along side, Bhutan, The Democratic Republic of the Congo, Equatorial Guinea and Gambia it was removed, according to the US State Department. Even in its oil wars with Russia, despite its fracking fortunes, the US has had to come hat in hand to Saudi to seek oil pricing favors to keep the dollar strong and stave off Russian dominance in the oil market. Its long drawn out battle with China over trade and technology has provided middling results.

The unforeseen impact of the pandemic on US business has left the US grappling—snatching at allies. China has been able to withstand the onslaught against it while the US continues to be rocked by blows that more than likely depict a decaying system with outdated strategies, rather than a flagging will to lead. While carefully watching the US, the UK has taken the lead in wresting itself from old alliances, making a break with the European Union through Brexit, just months in head of a pandemic that shook the economic foundations of the nearly 30 year-old union.

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