The World Financial System – Shape of Things To Come …

The US President, flanked by Treasury Secretary, Jack Fleischacker, and Paul M.Gruber, Governor, European Central Bank, in a stunning move, announced the merger and re-capitalisation of the IMF and World Bank – a plan to rescue world economy.

IMAR

The new entity has been named as International Monetary Authority & Reserve (IMAR) – and will operate from Paris. It has been given the responsibility for world’s economic stabilisation.

The Governing Council Members will initially comprise of 3 internationally respected financial authorities and investors. The Chairman is likely to be Barran Wolfet and his team members are Sorg Goros and Rim Joggers. “The selection of the Governing Board was done on the basis of consensus and the expertise of the incumbents. This is not the time for being narrow – when the future of the global financial system is at stake.”, said Governor Gruber.

Capital Subscriptions

The US has subscribed to promissory notes worth 25,000 tons of gold, currently held at Fort Knox. The ECB will subscribe to the tune of 20,000 tons of gold – to be held at various European national Government vaults. Australia and Canada have also announced subscriptions to the tune of 10,000 tons of gold each to be held in bonded vaults at Montreal and Canberra respectively. Britain and Switzerland have committed 5000 tons – out of the Bank of England and Schweizerische Nationalbank (SNB) reserves. These countries will be allocated voting rights proportionately, based on IMAR gold reserve subscriptions.

The US dollar will now be backed by IMAR promisorry notes – which President Jack Boucher, asserted will create confidence in the US dollar – and in the world financial system.

Governor Gruber remarked,”The Bretton Woods Agreement has facilitated a “historic economic expansion in the global trade” – and this new measure will further strengthen the Bretton Woods system. IMAR single-point agenda is stabilization of the global economy.” Country reserves will be nominated on the basis of IMAR promissory notes – and countries will report on these regularly. Total monetary aggregates for the national economy will also see a change. “Old economic measures like M3 money figures will no longer be relevant in the era of derivatives and options”, said Gruber.

The ASEAN, Chinese and Japanese Governments have cautiously welcomed this move, with a joint declaration saying “this will hopefully lend some stability to the US dollar – and the trillions of reserves that we maintain”. The new martial law administrators in the South African Government are due to the announce their subscriptions soon. Saudi Arabia, Iraq, the UAE and Singapore have announced that they will be committing substantial assets towards their share of subscriptions. Russia is still undecided – and expected to approve soon.

Criticism

India has criticised the move strongly. Prime Minister, Sonia Gandhi said, “this new system will perpetuate existing economic systems and divisions.” Iran’s President, Mohammed Hussaini bluntly dismissed this development and said, “the developing world will not have a voice in the new organization.”

The new Indian Finance Minister Banta Singh said,”This will not help in restructuring the international finacial systems. This is not the ‘new financial architecture’ that we are want.” When asked what his ideas were were declined to reveal them, as “it too premature.”

The IMAR Governor, Wolfet rejected the criticism, saying, “IMAR will be a international body – for implementing a rescue plan for the world economy. Developing Countries will have 50% representation on the Director’s Register. They, can get even higher voting rights by increased subscriptions. Our past experience shows that countries print currency – and risk global financial equilibrium. We cannot allow that to happen again.”

US and the EU have also announced a doubling in aid allocations. Instead of outright grants in aid, transfers will now be based on mutual trade norms. African countries, for instance, will be able to develop trade with the West – while receiving aid. EU and USA will commit to specific trade volumes, such that Africa will be able to develop, for instance, its mining and resource based industries.

Currency Fluctuations

Governor Gruber claimed that “currency fluctuations are a thing of the past, as trade will now be denominated by currency demand and supply. International currency acceptance will be determined by IMAR reserves of each currency system.”

Gold Reserves

The most interesting part of this development is the quantum of gold being committed by the subscribers. The ECB and the Federal Reserve have been able to fulfill their subscriptions based on gold reserves that they have enhanced in the last few months.

It is being whispered that Barran Wolfet and his team members, Sorg Goros and Rim Joggers had played a major role in the enhancement of these gold stocks – and the formation of IMAR. Initially named as Global Financial Reserve Authority for Development, the IMAR idea was first tossed out over a dinner at the famous Les Ambassadeurs eatery – which offers a classic cuisine by the Ducasse-trained chef, Jean-François Piege.

Want to decode this news? What this really means for you! Ask St.Barnum, The Propaganda Slayer.

Post Script

On 8th October, 2008, it was reported, that both the Republican and Democratic  candidates concede that Warren Buffet …

would be a good replacement for current Treasury Secretary Henry Paulson who is standing down at the end of the current administration.

“I think the first criteria, would have to be somebody who immediately Americans identify with. Immediately say we can trust that individual,” said McCain. Buffett, chief of the Berkshire Hathaway holding company, has supported Obama in the race for the White House.

New Empire Builders – Neo-Cons Sneaking In

This North-South global compact … would consign … despotisms to the obscurity which the old “salt empires” of the Tortuga and Turks islands, critical to … Royal Navy, were reduced once we had overcome our saline dependency. Posted by Shri Brendan Simms (Reader in the History of International Relations at the Centre of International Studies at the University of Cambridge)

Meet The Neo-Cons

The Social Affairs Unit is a what is called these days a neo-con think tank. Unfortunately, it is neither neo nor about thought – but is definitely a con.

And the blog of one of their stars is published at their site. Shri Brendan Simms, a reader in History, I am sure, knows that what he is saying is wrong.

In this post, (linked above) Simms is proposing certain actions that “would consign the Middle Eastern despotisms to the obscurity which the old “salt empires” of the Tortuga and Turks islands, critical to the eighteenth-century Royal Navy, were reduced once we had overcome our saline dependency.”

Oil Prices – Western Democracies Are Being Held To Ransom

Simms, (like most neo-cons), has various problems in life. He starts with his “western capitalist democracies find themselves held to ransom.” Mr.Simms, how many of your glorious Western democracies, have elected a single Black head of state in the last 100 years? Or a Muslim head of State? America, your epitome of a Western democracy, is struggling to nominate a woman Presidential candidate after 200 years of Republican democracy? Or am I being naive in raising these questions?

Coming to the ransom bit, is Simmie-boy getting this feeling because of the price that the Middle East is charging for oil. Simms Dearie, I know the feeling, believe me! We Indians have been through that. It is the similar feeling that we in India, (and developing countries) used to get while negotiating for food purchases (called aid) after the Bengal Famine and while rebuilding collapsed agriculture economies in post colonial India.

All that OPEC wants is a market driven price. Any problems, Simmie? Why does the West not explore and drill for oil along their huge off shore areas and kill their dependence on oil. If the Oil producers are wary of the dollar price due to depreciating dollar, who can you blame.

If the West led by ‘helicopter Ben’ wants to print more dollars, who will pay the price ? The rest of this gullible world? Does Simms think, that oil rich countries will ship out limited oil resources with the same speed that Bernanke prints money – or helicopter drop dollars?

The Saudi Wealth

Simms feels bad that the Saudis “could buy General Motors with just six days of production.” At least, in this scenario, the Saudis are buying US companies with US currency as per the valuation done by US stock markets. It is not based on slave labour, which is what the British operated in the Turks and Tortugas – in the Caribbean.

Millions of captured Black Africans toiled (and died) in the Caribbean, to create wealth and luxury for Britain – the comfort of which he now uses to “consign the Middle Eastern despotisms to the obscurity … of Tortuga and Turks islands, were reduced once we had overcome our … dependency”

What Were The Turks & Caicos Islands

These were slave islands – and part of the Caribbean group of islands which were used by the British Navy to run their slave colonies. To call these ‘despotisms’ is right – but these were British slave despotisms.

The ‘salt colonies’ are not as well known as the ‘sugar colonies’ – Haiti, Cuba, Demerra, Trinidad and other West Indian Islands, and the millions of slaves that were imported and subsequently died. Similarly, millions of local Native American populations were wiped out. And of course, once their usefulness, was over, the European powers walked away.

Of course, some of these islands have become colonies, of the USA, Britain and the people there continue to serve the interests of these Western nations. Haiti, Cuba, Granada have been made an example of by Britain and USA, for trying to make a country of themselves. A lot of such places would be quite happy without the British attention they received – and subsequent ruin that they faced.

Privateers, slave traders and pirates were licensed to operate from these islands, by the British Government to loot – and kill.

Come To The Middle East Despots

After the WW1, the victorious allies carved up the entire Ottoman Empire – which stretched from the Middle East to Central Asia to the Eastern Europe.

Out of the Ottaman Empire, Iraq was carved up and King Faysal was put on the throne. A British amatuer Gertrude Margaret Lowthian Bell made the selection of the King Of Iraq. This new King did not even know his kingdom – and he was taken around by his new makers. Similarly, an amateur like TE Lawrence (never mind the propaganda) was used to determine the fate of the Middle East.

WW1 resulted in the Balfour Declaration, which promised a Jewish homeland, to be carved out of the Ottaman Empire. Saudi Arabia was similarly made up.

By 1916, Britain, France and Russia had signed the secretive Sykes-Picot Pact – a framework for the division of the Ottoman Empire after the future defeat of the Turks. While the WW1 was going on, a civil war broke out in Russia. Kerensky, a member of the moderate Labor party, Lenin, Trotsky et al of the Bolshevik Party, overthrew the Tsar and assumed power in February 1917.

Till 1923, the Russian Civil War continued, to the defeat of Kerensky and his White Army in 1923. Kerensky wished to continue war alongside Britain and France. Lenin broke ranks, and in October 1917, the Russian-Communists started negotiations for a peace treaty with Germany. In 1918 the Treaty Of Brest Litovsk followed. After the end of WW1, Britain and France did not honor Russia’s claim under the Sykes Picot Pact. Russians retaliated and were actively involved in destabilizing the Middle East for the next 50 years, by playing of one Middle East Country against another.

Thus the entire Middle East was put on shaky political ground. Exploitative commercial contracts favoring Anglo Saxon bloc of countries were signed with these puppet governments – and the rest of the story is being played out for the last 90 years. Hobbyists decided fates of million of people.

So Mr.Simms, these Middle Eastern despots, are a creation of Western Foreign Policy – of which you claim a College Readership.

Western Investments

“West invest blood and treasure to make the Middle East a better place” out of the milk of human kindness Mr.Simms? All investments that the west has made is by the loot from Canada, Australia, Africa – and of course, India. Out of magnamity, if we call old accounts quits, current Western investments have been made for reasons of commercial self interest. Sell your Western assets, Mr.Simms, if they are not profitable enough. Possibly, it is equivalent to one hours oil production for the Saudis – and they will buy you guys out.

Regarding the blood in the Middle East, it is the poor Arabs, Palestinians, Iraqis, Kurds, Afghans, Pakistanis who are spilling it. Western blood (whatever little) is being spilt for brazen extortion. The Middle East has become a quagmire after the West decided to intervene.

Saudi foreign policy – Export of extremist Islamist ideology

And what is the foreign policy of the West Mr.Simms. Instability in Africa, Middle East. Every terror hotspot is a creation of the West – and specifically, America. And amongst others, we in India, pay a price for this. When you demonise Islam, they pay a price.

Partnerships With The West?

What partnerships are you talking about, Mr.Simms?

The kind that you has with the Turks and Tortugas? The kind that you had when the West put incompetent Emirs and Shaikhs on the various thrones of the Middle East – and now want to ‘consign to obscurity.’ After they helped you to weaken your Cold War enemy. After they have given you 60 years of luxury – with cheap oil.

Why Wont You Accept Criticism

Now these are the points that I made on your blog, Mr. Simms – 2 weeks ago. Why the hesitation in publishing those comments.

Run you can, Simmie boy, but at least, don’t hide.

Behind The Web Of Terror

“…one who knows the higher criminal world … for years …I have …been conscious of some power behind the malefactor, some deep organizing power which … stands in the way of the law, and throws its shield over the wrong-doer. Again and again …I have felt the presence of this force, …when I seized my thread and followed it, …it led me, …to ….” Arthur Conan Doyle – The Final Solution

The Root Of All Terror

In today’s world, behind all terror you will similarly see another baleful influence. No, it is not Osama bin Laden. Osama is either a minor reactionary (in Marxist terms) or a diluted repetition of the Hashishi influence.

Hashishis were major source of terrorism in the Dark Ages in Europe and Middle East. Their influence was finally extirpated by Genghis Khan’s army – which systematically went after this band of mercenary killers. The English word assassin is derived from Hashishis.

The source of modern terrorism is the USA.

The formation of Israel

Similar to the Middle East carve-up after WW1, and the collapse of the Ottoman Empire, USA’s baleful story started immediately after WW2. The creation of the US cat’s paw in the Middle East – Israel. Less than 1,00,000 Jews were considered more important than the 5,00,000 Palestinian’s. This was American solution, aided by odious British legalities, (the Balfaour Declaration) to the Jewish persecution in Europe.

Just why, did Muslim Palestinians in Asia have to pay the price, for Christian persecution of Jews in Europe.

The Jews promptly forgot all about persecution – and started a new chapter in persecution. Palestinians became homeless – no passports. They could not go anywhere. Israel did not want them as Israeli citizens – but as a source of cheap labour, without rights. Jordan accepted a few. Syria was persuaded to accept some. They became stateless citizens – property of the UNHCR. And Palestinians started a new chapter in terrorism!

What Can Palestinians Do

The biggest successes in post WW2 world have been those that followed Gandhiji – Poland, South Africa, Martin Luther King and others. Odds are in favour of following the Gandhian way. The one unique military success in the last 60 years of struggle by emerging nations was Ho Chi Minh.

Like Haitian generals, time and again, Ho Chi Minh, drove back Western colonials – each time they went back on their word. The French had promised freedom and de-colonialisation after WW2. Thereafter, they tried wriggling. Ho Chi Minh wouldn’t let them move.

The French created a mess – before leaving in 1956. Just like Britain did in India (by creating a Pakistan and Kashmir). US decided that they could ‘clean up’ – and make Vietnam into another client state like other SEATO (now ASEAN) members. 20 years later, the US admitted defeat and decided to slink away. The Chinese decided to take swipe. Same story.

Three of the five permanent members of the Security Council, (supposed Super Powers or mini-Super Powers) tried their hand at Vietnam. All failed. And after defeating these ‘Super Powers’, the Viets did not flex their muscles with any of their neighbours.

Ho Chi Minh’s quiet leadership, his frugality, his unblemished personal life inspired the Viets to take on the world – and win. After becoming President of the Democratic Republic of Vietnam, he lived in a ‘gardener’s cottage and then a peasant house built on stilts beside a pond.’ Just like Gandhiji, he died just before seeing his dream came true. Ho Chi died in 1969 – a few years before the last of the colonialists was thrown out.

His was the kind of war that Gandhiji always believed in – ethical, moral. Without hate, rancour, ill-will or subjugative ambitions. Ho Chi Minh was truly the second coming of Gandhiji – the predicted Kalki. This is the success that Middle East freedom fighters need to learn from. Regressive practices by rag-tag terror outfits corrupt the freedom struggle – and dilute the stability of the outcome.

Next was Iran.

They foisted a corrupt Reza Shah Pahlavi in Iran. A king no one wanted. The Shah of Iran wrote new chapters in state repression.

In 1974, I was introduced to a visitor from Iran in Hyderabad, India – someone my father picked up an acquaintance with. He was afraid of speaking anything in our house in India – 2500 miles away. He was afraid as if the Savak (Shah’s secret police) was in the room next door. He was from an Iranian minority that spoke Aramaic – and the first time I came to know that Aramaic was one of the language in which the Bible was originally written (but that is another story).

The Shah of Iran worked against his own nationalist Prime Minister Mohammed Mossadeq – to protect Western Oil interests. To turn public opinion,

“declassified documents detailing the 1953 U.S. overthrow of Iran’s Prime Minister Mohammed Mossadeq reveal that something actually called the “CIA Art Group” produced cartoons to turn public opinion against the democratically elected leader.“

The CIA, led by Kermit Roosevelt Jr., and the British intelligence, launched Operation Ajax. Finally, in 1979, the Shah was replaced by the regressive regime of Ayatollah Khomeini, which has taken Iran out of the USA orbit – but kept Iran from progress for the last 30 years. Iran has become a source of de-stabilisation various parts of the world (Sudan, Iraq, Afghanistan, etc) – in its anti USA crusade.

Pakistan – Old Story.

Pakistan was a part of the USA troika with Iran and Turkey in the CENTO alliance against USSR. Pakistan’s next ruler will be selected by the USA. During the Kargil war, India was talking to the USA. USA called the shots – and decided to replace Nawaz Sharif with Musharraf.

Pakistan was the training ground for New York sub-way bombing, 9/11 terrorists, for the Mujahiddin in Afghanistan and for the rogue trade in nuclear material with AQS Khan. India’s Kashmir and Khalistan problems – direct result of USA foreign policy.

Iraq

Iraq started a war with Iran in 1980 (prodded by USA) against Iran. As a reward. Saddam wanted Kuwait. Before the Kuwaiti invasion, Saddam took USA “permission”. By the time USA realized what was happening, Kuwait was over. USA did a volte-face – and Saddam became a demon. Today, Iraq has become a quagmire of a civil war amongst Iraqis. The cost of an alliance with the USA. The war on terror has become another foray for the America-Australia-Britain-Canada (ABC) Axis – at a cost to the rest of the world.

“By God, we’ve kicked the Vietnam syndrome once and for all!” So said President George Bush in a euphoric victory statement at the end of the Gulf War. Did Iraq have to pay the price for exorcising the Vietnam ghost in the American mind?

Osama was operating from Afghanistan.

What did the USA have to do there!! It started with USSR. The King Of Afghanistan – Zahir Shah was replaced by a USSR backed group. A despotic, directionless regime replaced Zahir Shah. The secular voice of Khan Abdul Ghaffar Khan, an avowed Gandhian, in Afghanistan was silenced by Pakistan – an USA ally.

Afghanistan decayed into a regressive nation – which the USSR decided to change! The civil war between the mujahideen (armed by the USA) and the Russians pushed back the character of the Afghans by 1500 years. An USA supply agreement flooded Afghanistan and Peshawar with for arms and armaments. Waziristan in Pakistan, NWFP has practically been conquered by the Mujahideen. The touch that kills.

Who’s next?

Saudi Arabia? One of the Central Asian Republics! Anglo Saxon propaganda overdrive tells us that Islam is to be blamed. Hardly!

Three causes for this US policy.

Oil – Cheap oil. Never mind the cost to others.

Oil – All it can get. And then some more.

Oil – For no one else. Uncle Sam wants it all.

Three Monkeys – Toshogu Temple

Amazingly, one of the US presidential hopefuls, John McCain, even blames a Muslim for killing Gandhiji. This was demonisation of Muslims by the American political establishment at its best.

Post Script

The first step

On February 22nd, 2008, the Deoband Seminary, the most respected Islamic seminary in South and South East Asia, issued a anti-terrorism declaration at a huge public meeting attended by hundreds and thousands of people. This set up a new direction in Islamic social dialogue – where a non-establishment, Islamic theological group came out against terrorism. Subsequently, some other ‘liberals’ jumped onto this bandwagon.

And then …

In October 2008, Pakistan was sent on a cold turkey … by Saudi Arabia, China and the US. Pakistan has been forced to go to IMF which is prescribing a heavy cut back in defence spending.

But most interestingly …

On October 3rd, 2008, the Frontier Gandhi’s grandson was the target of suicide bomber. The terrorists are obviously worried that Khan Abdul Khan Ghaffar Khan’s sensibility may make a comeback. Suddenly the world has been reminded about Khan Abdul Khan Ghaffar Khan.

Coincidentally, in India, a film was made on Khan Abdul Ghaffar Khan. The LA Times recently ran an column on him. The answer to the Pakistani problems in the North West tribal areas was Khan Abdul Ghaffar Khan.

And the tribal chiefs of Pakistan and Afghanistan Pashtuns decided to call for a ‘mini-jirga’ on violence – to decide on the future of the two countries.

Hopefully, this a new beginning for Pakistan …

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