The G Word Begs Americans To Fall Back in Love with Uncle Sam


Adam Conover of "The G Word"

The confused and muddled messaging of The G Word, a six-part Netflix documentary miniseries about federal government bureaucracies hosted by Adam Conover and produced by former President Barack Obama, is well illustrated toward the end of the very first episode.

Conover has spent much of the episode explaining how the U.S. Department of Agriculture (USDA) works and its role in monitoring our food supply. He takes viewers to a meat processing plant for an explanation of the relationship between USDA inspectors and domestic meat suppliers, heavily weighted toward the importance of having the federal government overseeing the process.

When Conover visits a supermarket, though, the episode shifts and explains the less savory side of the USDA. Conover notes how federal crop subsidies distort the natural food marketplace, line the pockets of wealthy agricultural corporations, and contribute to a flood of cheap but unhealthy junk food.

“It sure feels like the government’s mission to help farmers is getting in the way of its mission to help eaters,” he says. “Especially since the same USDA that keeps agriculture afloat is also responsible for crafting the dietary guidelines that advise us what to eat. I wonder if that’s a little bit of a conflict of interest.” It is, of course.

Conover knows that junk food is junk, even if it’s delicious, regardless of whatever food pyramids the government may shove in front of us. And he says so, but as he’s opining in the checkout line, he complains, “Every article and ad tells us that the key to healthy eating is to make better choices. But why is it all on us? Maybe instead of worrying so much about what we choose off the shelves, we should pay more attention to what the government chooses to put on them. Because only it has the power to determine if our food is safe and fit to eat.”

Wait, what? Only the U.S. government has the power to determine if our food is safe and fit to eat? He just noted that he has the ability to independently evaluate the quality of the food he’s consuming and yet consumes food that he knows is unhealthy because he likes the taste. He knows full well that we have experts completely outside the realm of government who can adequately advise us on healthy eating. And he even just noted that part of the corruption of the USDA’s dietary guidance was the result of the government ignoring these experts for the benefit of agriculture interests.

This is the weirdness of The G Word in a nutshell. Across the six 30-minute episodes, released in late May, Conover details what various federal agencies do and notes how they frequently fail to do what we need them to do. Nevertheless, the purpose of The G Word is to sell to viewers that a large and powerful federal government is good and that citizens need it for protection. Essentially, Conover’s flipped his typical script and is trying to unruin the government.

Obama appears in just the first and last episode, but his fingerprints are all over the show’s sense of technocratic optimism, a consistent belief that government is supposed to be big and broad and deployed to serve our best interests, whatever those might be. There’s an emphasis on what I call the imaginary “we,” a familiar refrain of Obama’s presidency: the insistent and utterly mistaken belief that “we” all largely want similar things from our government. We do not.

To the extent that the federal government fails or struggles, the show largely lays the blame on two factors—outside corporate manipulation and reductions in funding and staffing. In the second episode, the show calls out AccuWeather’s attempts to restrict public access to National Weather Service data so that it can profit off providing them, a very specific claim of meddling. But when talking about the many, many failures of the Federal Emergency Management Agency (FEMA), it’s somewhat vaguely attributed to differing goals and agendas of the various organizations under the agency’s umbrella and funding being unfairly distributed based on the political power of differing states (also known as democracy in action).

The funniest moment in the series comes not from the various attempts at humorous sketches. The segment that presents the Defense Advanced Research Projects Agency (DARPA) as a parody of Willy Wonka & the Chocolate Factory is cringe-inducing to the very edge of unwatchability. The only time I laughed out loud was purely unintentional. At one point, when explaining FEMA’s failures to adequately respond to the needs of Puerto Ricans in the wake of Hurricane Maria in 2017, Conover blames “red tape,” which he then describes as “the archnemesis” of government. If I had been drinking, I would have done a spit-take here.

While the show is happy to get specific about corporate malfeasance in attempts to capture and control government, it treats the excesses of government bureaucracy as things that just come up out of nowhere and uninvited, like mold growing on bread. The G Word does not in any way approach bureaucracy as itself a form of internal corruption designed to make government more expensive and more powerful in the service of various interested parties that fiscally benefit with contracts and jobs when government is bigger and more intrusive. At no point when the show mentions FEMA’s failures in Puerto Rico does anybody mention anything like the federal Jones Act, a deliberately protectionist law that benefits the maritime industry (and its unionized employees) and at the same time makes it extremely expensive to ship anything to the island. It’s an example of bureaucracy that is not just some magical evil force showing up out of nowhere. It’s there deliberately, and it made it exorbitantly expensive for Puerto Ricans to recover from the disaster caused by the hurricane. Yet, President Joe Biden’s administration continues to support it because the maritime unions support it.

Later in the series, Conover expresses confusion that his mother—a public school teacher—was one of those types of people who believed that government is big and wasteful. Rather than tackling any of the many, many, many examples of government being wasteful, The G Word essentially insults the intelligence of the audience by suggesting that the push to shrink the size of government is a modern movement pushed by certain types of people (including think tanks, so presumably Reason falls into this category) as a reaction to the civil rights movement. The G Word says the call for smaller government only really began to build under President Ronald Reagan, shown as an actor performing comically inept surgery on a hunky Uncle Sam.

And while it’s true that Reagan did run on the promise of reducing the scope and size of government, federal employment numbers actually increased during his eight years of office, from 2.9 million to 3.1 million. Today’s numbers are back down to 2.8 million. Most of the job cuts actually took place under President Bill Clinton (and the show does note that both he and Obama agreed to cutting the size of government), but the data just simply doesn’t support the claim that the federal government has actually been reduced in size and scope. If Conover wanted to make the claim that the money going to government isn’t being used how it’s needed, the problem then lies in the show’s unwillingness to explore the reality of the “red tape” or the waste. When the show vaguely references the lack of affordable housing in our cities, it doesn’t properly blame it on NIMBYs abusing environmental protection procedures to halt construction or labor unions suing to block projects unless they get a cut of the money but on “anti-housing capitalists,” because capitalism apparently somehow hates providing goods in exchange for money?

To its credit, the show is, in a limited sense, willing to explore how federal and local government power is used to cause harm. The DARPA segment discusses the positive private use of drones (to film a wedding) contrasted with our government’s deadly deployment of them to assassinate targets in countries we aren’t even officially at war with. The G Word even rejects the Obama administration’s lackluster undercounting of civilian victims and instead uses independent observer numbers to show how our drone strikes have killed hundreds of unintended targets. (The show, however, stops short of pointing out that the federal government has imprisoned Daniel Hale, the whistleblower who helped reveal how poorly the drone program operated.)

Toward the end, the final 15 minutes of the final episode, The G Word turns its sights toward local government in an attempt to optimistically encourage local election engagement. Here the show notes that this is where, in particular, criminal justice reform needs to take place because most who are serving prison time are in state custody, not in federal prisons. But even here the show is strangely vague, turning to some activists in Philadelphia who were involved in getting District Attorney Larry Krasner elected. But the show apparently no longer has any time to elaborate on why Krasner’s election was important or even really explain much of his platform other than a vague reference to reducing cash bail. Krasner doesn’t even appear on the show. It doesn’t engage with the backlash against progressive district attorneys and their proposed reforms. It doesn’t discuss the awkward public safety balancing act that comes from trying to make sure citizens feel safe while also not unnecessarily imprisoning people who would be better served by other systems.

After attributing attempts to reduce the size of government to people with bad intentions, it completely ignores the “Defund the Police” part of the criminal justice reform movement. It doesn’t engage with it or attempt to even push the conversation in the direction of getting more mental health and social service experts to respond to certain emergency needs. It just completely ignores it.

On this Independence Day weekend, it’s worth noting this series because of the tendency of some people to worship at the altar of big and powerful government as a solution to all our ills even when they absolutely know how frequently it fails, how frequently it hurts people, and how frequently it serves only itself and its friends. There’s nothing unusual about Conover (and Obama) thinking that government is failing because it’s just somehow not powerful enough or effective enough. It’s very American, in fact. But The G Word shows that holding onto this belief that our government isn’t funded enough requires completely ignoring huge chunks of what the government does with its money and authority.

The post <em>The G Word</em> Begs Americans To Fall Back in Love with Uncle Sam appeared first on Reason.com.

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Once Again, the Firework Cops Failed To Stop People From Celebrating Freedom With a Boom


thumb (2)

Smugglers helped build America. It’s fitting that they’re crucial to the celebration of her special day.

In the run-up to the Fourth of July holiday, headlines were filled with the typical stories of police and politicians’ desperate efforts to control the flow of illegal fireworks into prohibitive jurisdictions. But odds are that, regardless of state law or county ordinance, your fellow citizens will be honoring freedom with a few resounding booms tonight.

Massachusetts is both the cradle of our revolution and the last place consumer fireworks are still illegal across the board. This past week, state troopers there seized some 1,500 individual rockets and roman candles being shipped into the state from neighboring New Hampshire.

The loot was valued at some $30,000 according to local news reports. But the deterrent effect of the seizures seems limited.

When Reason called around to a few fireworks shops on the other side of the New Hampshire border (including one literally called Fireworks Over the Border located a few feet from the state line), everyone said they were too busy handling customers to talk to the press.

Rampant fireworks smuggling is not just common. Often it was de facto encouraged by states’ consumer fireworks laws.

In Ohio, you could purchase consumer fireworks but only after signing a form promising you’d take them out of state within 48 hours. In neighboring Pennsylvania, only customers with out-of-state driver’s licenses could purchase fireworks that actually shoot up into the air.

The two states eliminated those restrictions over the past few years—part of a nationwide trend of liberalized fireworks.

Where consumer fireworks are still prohibited, however, smuggling abounds. Law enforcement is getting increasingly creative, if not increasingly effective, at cracking down on this black market.

Los Angeles County hosted a firework buyback event this past Saturday in an effort to get people to turn in their verboten cherry bombs and M80s. In exchange, people could receive gift cards for gas and groceries, reported LAist.

Last year’s buyback netted about 500 pounds of fireworks. Neither that buyback nor L.A. police’s botched detonation of a 32,000-pound illegal stash discovered in a backyard did much to whet the fuses of L.A.’s amateur pyrotechnicians.

Local media was awash with illegal fireworks lighting up the Independence Day sky. We can expect similar scenes tonight.

Oftentimes, it seems like state officials are in on the joke of illegal firework use. In Florida, fireworks are legal but only for pest control purposes. “With all the stand-alone fireworks-only superstores in the state of Florida, there shouldn’t be a critter left alive,” Julie Heckman of the American Pyrotechnics Association told Reason in 2018.

America was created by people who played it fast and loose with the laws on the books until they eventually decided to try and make something better. Tonight, people will honor that rebellious spirit by blowing up a small part of what the Founders built. God Bless.

The post Once Again, the Firework Cops Failed To Stop People From Celebrating Freedom With a Boom appeared first on Reason.com.

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Von Greyerz: This Implosion Will Be Fast… Hold On To Your Seats

Von Greyerz: This Implosion Will Be Fast… Hold On To Your Seats

Authored by Egon von Greyerz via GoldSwitzerland.com,

The massive money creation in the 2000s has led to a debt and asset bubble, which is about to burst. Investors will be shocked by the speed of the decline and won’t react before it is too late.

The massive money creation by central and commercial banks in this century has resulted in a growth of global assets from $450 trillion in 2000 to $1,540 trillion in 2020.

DEBT TO GDP GROWTH

As the chart below shows US debt to GDP held well below 25% from 1790 to the 1930s, a period of almost 150 years. The depression with the New Deal followed by WWII pushed debt to GDP up to 125%. Then after the war, the debt  came down to around 30% in the early 1970s.

The closing of the gold window in 1971 ended all fiscal and monetary discipline. Since then, the US and much of the Western world has seen debt to GDP surge to well over 100%. In the US, Public Debt to GDP is now 125%. Back in 2000 it was only 54% but since then we have seen a vote buying system with a money printing bonanza and an exponential increase in debt to 125%.

A major part of the debt increase has gone to finance the rapid growth in property values.

The table below shows that property has grown on average by 250% between 2000 and 2020. So individuals are creating wealth by swapping properties with each other. Hardly a sustainable form of wealth creation.

The exponential growth in property prices has been global although countries like China, Canada, Australia and Sweden stand out with over 200% gains since 2000. Most of the properties bought in the last 20+ years involve massive leverage. When the property bubble soon bursts, many property owners will have negative equity and could easily lose their homes.

So both private and government debt is continuing to grow rapidly. But nobody should believe that it will stop here. The Fed’s intention to reduce the balance sheet is not working and the debt is at best going sideways currently.

BIDEN BANS RUSSIAN GOLD

So it is happening again. The US has decided to ban imports of Russian gold and told the whole G7 to follow suit. President Biden sent the following Tweet last week:

So what will the consequences be?

Russia is the second biggest gold producer in the world after China. Just like  with oil, gas and many other commodities, the effect will be higher gold prices over time. The gold trade is international and the major buyers of gold are China and India. So Russia can continue to sell gold to the Far East, the middle East and South America.

Also, when the EU sanctions started, the LBMA (London Bullion Market Association) decided not to accept gold that had been refined in Russia. 

So the effect of the G7 ban will be minimal since gold deliveries from Russian refiners to the bullion banks already stopped in early March.

SANCTIONS ARE COUNTER PRODUCTIVE

Biden also signed an executive order on 15 March this year, prohibiting US persons to be involved with gold trading with Russian parties.

Still, more sanctions by the US and Europe will over time create shortages in gold just as it has in other commodities. So Russia will be able to sell its commodities including gold to other markets at higher prices.

But since Russia by far has the greatest commodity reserves in the world at $75 trillion, the value of these reserves are going to appreciate for years as we are now at the beginning of a major bull market in commodities.

The US and EU sanctions of Russia affect around 15% of the world population so there are still plenty of markets where Russia can trade.

The Roman Empire controlled parts of Europe, North Africa and the Middle East. The Empire prospered primarily due to free trade within the whole area with no sanctions. Sanctions hurt all parties involved. And since Russia is such a major commodity country that can continue to trade with major nations, they will over time suffer less than the sanctioning countries.

The consequences of these sanctions especially for Europe where many countries are dependent on Russian oil and gas will be totally devastating. So the US and Europe have really shot themselves in the foot.

GOLD, THE US DOLLAR & STOCK MARKETS

Coming back to gold, the US and G7 move is more likely to have a beneficial effect on gold over time with demand increasing and supply being restricted.

Gold started an uptrend in year 2001 that lasted for 10 years to 2011 when gold reached $1,920. After a major correction for 3 years until 2016, to $1,060, gold has resumed its exponential uptrend as can be seen in the chart below.

Although gold has not yet made sustained new highs in dollars, we have seen much higher highs in gold against most currencies. The temporarily strong dollar is making gold look weak measured in the US currency but that is unlikely to last for long.

MAJOR GOLD MOVE COMING

As the chart below shows, gold is finishing a Cup and Handle technical pattern. It does allow for a slightly lower price before the next move up although that is not certain. Regardless, the major trend for gold is substantial and I expect a sustained move up to at least 2026 but probably for much longer. Obviously there will be major corrections on the way.

DOLLAR FALL NEXT

If we look at the chart of the dollar against the Swiss franc since 1970, we can see that the 78% fall so far has gone sideways for 10 years.

The next move down is likely to be another 50% to 0.45-0.50 at least.

So the feeble and temporary dollar correction up is likely to end soon with a strong down move next.

MAJOR STOCK MARKET FALL AHEAD

Stocks globally are down around 20% this year.

The next move down in stocks could happen within the next few weeks. This is likely be a shocking move which will paralyse investors as they won’t have time to react.

So we could see stocks and dollar strongly down at the same time with the metals up. Even if gold and silver comes down initially, that move will not last. The uptrend in the metals is soon about to resume.

Wealth preservation

Our company made substantial purchases of physical gold at the beginning of 2002 for our investors and ourselves.  The price was then $300. We have never sold an ounce since then but added at opportune moments.

There was, as the gold chart above shows, a major move until 2011 and then a vicious 3 year correction to $1,060 before the bull trend resumed. As I mentioned above, gold has made much higher highs above the 2011-12 highs in Euros, Pounds,Yen, Swedish kronor, Australian dollars etc.

US dollar highs are just around the corner.

As we bought gold for wealth preservation purposes, it was essential that it was physical with direct ownership and control for the investor. To be able to inspect your own gold is also a requirement. 

It is also imperative to store the gold outside an increasingly fragile financial system. If you buy gold as insurance against such an over-leveraged and weak system, it obviously serves no purpose to store it within that system.

To store your insurance asset in a safe jurisdiction is clearly critical. Especially with the current geopolitical unrest it is essential to take advice on location. Also important is to be able to move the gold quickly if necessary.

The reputation and values of the company that assists you with your gold investments must be impeccable.

It serves no purpose to make your choice based on the lowest cost of storage, insurance and handling when you are protecting one of your most important assets. 

BE CAREFUL

So there are likely to be major moves in markets next.

No one can of course time these moves exactly. But what is critical to understand is that risk is now extremely high and investors are not going to be saved by central banks.

And remember that fire insurance can only be bought before the fire starts!

Tyler Durden
Mon, 07/04/2022 – 07:10

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Once Again, the Firework Cops Failed To Stop People From Celebrating Freedom With a Boom


thumb (2)

Smugglers helped build America. It’s fitting that they’re crucial to the celebration of her special day.

In the run-up to the Fourth of July holiday, headlines were filled with the typical stories of police and politicians’ desperate efforts to control the flow of illegal fireworks into prohibitive jurisdictions. But odds are that, regardless of state law or county ordinance, your fellow citizens will be honoring freedom with a few resounding booms tonight.

Massachusetts is both the cradle of our revolution and the last place consumer fireworks are still illegal across the board. This past week, state troopers there seized some 1,500 individual rockets and roman candles being shipped into the state from neighboring New Hampshire.

The loot was valued at some $30,000 according to local news reports. But the deterrent effect of the seizures seems limited.

When Reason called around to a few fireworks shops on the other side of the New Hampshire border (including one literally called Fireworks Over the Border located a few feet from the state line), everyone said they were too busy handling customers to talk to the press.

Rampant fireworks smuggling is not just common. Often it was de facto encouraged by states’ consumer fireworks laws.

In Ohio, you could purchase consumer fireworks but only after signing a form promising you’d take them out of state within 48 hours. In neighboring Pennsylvania, only customers with out-of-state driver’s licenses could purchase fireworks that actually shoot up into the air.

The two states eliminated those restrictions over the past few years—part of a nationwide trend of liberalized fireworks.

Where consumer fireworks are still prohibited, however, smuggling abounds. Law enforcement is getting increasingly creative, if not increasingly effective, at cracking down on this black market.

Los Angeles County hosted a firework buyback event this past Saturday in an effort to get people to turn in their verboten cherry bombs and M80s. In exchange, people could receive gift cards for gas and groceries, reported LAist.

Last year’s buyback netted about 500 pounds of fireworks. Neither that buyback nor L.A. police’s botched detonation of a 32,000-pound illegal stash discovered in a backyard did much to whet the fuses of L.A.’s amateur pyrotechnicians.

Local media was awash with illegal fireworks lighting up the Independence Day sky. We can expect similar scenes tonight.

Oftentimes, it seems like state officials are in on the joke of illegal firework use. In Florida, fireworks are legal but only for pest control purposes. “With all the stand-alone fireworks-only superstores in the state of Florida, there shouldn’t be a critter left alive,” Julie Heckman of the American Pyrotechnics Association told Reason in 2018.

America was created by people who played it fast and loose with the laws on the books until they eventually decided to try and make something better. Tonight, people will honor that rebellious spirit by blowing up a small part of what the Founders built. God Bless.

The post Once Again, the Firework Cops Failed To Stop People From Celebrating Freedom With a Boom appeared first on Reason.com.

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Top German Trade Union Head Warns Entire Industries May Collapse Amid Worsening Energy Crisis

Top German Trade Union Head Warns Entire Industries May Collapse Amid Worsening Energy Crisis

Last month, Russia reduced Nordstream natural gas flows by 60% because of an alleged disruption. German industries, heavily reliant on cheap Russian NatGas, face skyrocketing energy costs that have put many in danger of collapse. 

“Because of the NatGas bottlenecks, entire industries are in danger of permanently collapsing: aluminum, glass, the chemical industry,” Yasmin Fahimi, the head of the German Federation of Trade Unions, told the newspaper Bild am Sonntag

Fahimi warned: “Such a collapse would have massive consequences for the entire economy and jobs in Germany.”

Economics Minister Robert Habeck was quoted by Bloomberg on Saturday saying the government is working to address surging energy costs for utilities and power costs for businesses and households. He warned weeks ago Germany should prepare for further cuts NatGas

Germany recently triggered the “alarm stage” of its NatGas-emergency plan to address shortages as the energy crisis in Europe’s largest economy is far from over.

Habeck had also likened the squeeze on Russian NatGas supplies and its damaging effects on industries to a catalyst that could spark a Lehman Brothers-like crisis

Deutsche Bank’s chief FX strategist George Saravelos told clients days ago he was becoming increasingly concerned about the unfolding energy crisis in Germany.

Saravelos pointed out that dwindling NatGas supplies to Germany and the resulting surge in electricity prices have created massive problems for industries and utilities.

The biggest blowup last week was German gas and power utility Uniper. Shares in the company crashed because it only received 40% of NatGas from Russia, and the rest had to be purchased in the open market (outside of long-term contracts), where prices have soared. This has created an immense strain on the utility, losing upwards of $30 million per day, or if annualized, could be an $11 billion loss. 

Risks are mounting of a full NatGas disruption: “Europe should be ready in case Russian gas is completely cut off,” IEA head Fatih Birol recently told FT. 

Saravelos also told clients if NatGas supply woes via Nordstream aren’t resolved in the coming weeks, this would lead to a broadening out of energy disruption with material upfront effects on economic growth, and of course, much higher inflation, or as he put it, “beyond the market’s worries about slower global growth in recent months, what is unfolding in Europe in recent days is a fresh big negative supply shock.”

Sooner or later, Germany will learn if that’s because of economic disruption, that getting virtue signaled into supporting the Ukraine war was a bad idea.  

Tyler Durden
Mon, 07/04/2022 – 06:35

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Is Saudi Arabia In Discussion To Join BRICS?

Is Saudi Arabia In Discussion To Join BRICS?

Authored by ‘sundance’ via The Last Refuge,

It is very curious timing in this article from Newsweek, containing massive geopolitical implications, using identified Saudi Arabia sources, would come in advance of Joe Biden’s visit to the Kingdom of Saudi Arabia.

Is this strategic geopolitical pressure from Saudi leader Mohamed Bin Salman (MbS) ahead of the meeting with Biden; or is this a genuine possibility that looms as likely?  If the former, then Joe Biden is being geopolitically slow roasted by Saudi Arabia for his previous disparagements and ideological hypocrisy in his visit.  If it is the latter, well, then the tectonic plates of international trade, banking and economics are about to shift directly under our American feet.

We have been closely monitoring the signs of a global cleaving around the energy sector taking place.  Essentially, western governments’ following the “Build Back Better” climate change agenda which stops using coal, oil and gas to power their economic engine, while the rest of the growing economic world continues using the more efficient and traditional forms of energy to power their economies.

This article from Newsweek is exactly about this dynamic with Saudi Arabia now potentially joining the BRICS team.

NEWSWEEK – Finland and Sweden’s green light to join NATO is set to bring about the U.S.-led Western military alliance’s largest expansion in decades. Meanwhile, the G7, consisting of NATO states and fellow U.S. ally Japan, has adopted a tougher line against Russia and China.

In the East, however, security and economy-focused blocs led by Beijing and Moscow are looking to take on new members of their own, including Iran and Saudi Arabia, two influential Middle Eastern rivals whose interest in shoring up cooperation on this new front could have a significant impact on global geopolitical balance.

The two bodies in question are the Shanghai Cooperation Organization (SCO) and BRICS. The former was established in 2001 as a six-member political, economic and military coalition including China, Russia and the Central Asian states of Kazakhstan, Kyrgyzstan and Tajikistan before recruiting South Asian nemeses India and Pakistan in 2017, while the latter is a grouping of emerging economic powers originally consisting of Brazil, Russia, India and China (BRIC) upon its inception 2006, and including South Africa in 2010.

Here is the money quote:

[…]

“China’s invitation to the Kingdom of Saudi Arabia to join the ‘BRICS’ confirms that the Kingdom has a major role in building the new world and became an important and essential player in global trade and economics,” Mohammed al-Hamed, president of the Saudi Elite group in Riyadh, told Newsweek. “Saudi Arabia’s Vision 2030 is moving forward at a confident and global pace in all fields and sectors.”

[…]

“This accession, if Saudi joins it, will balance the world economic system, especially since the Kingdom of Saudi Arabia is the largest exporter of oil in the world, and it’s in the G20,” Hamed said. “If it happens, this will support any economic movement and development in the world trade and economy, and record remarkable progress in social and economic aspects as Saudi Arabia should have partnerships with every country in the world.” (read more)

That would essentially be the end of the petrodollar, and -in even more consequential terms- the end of the United States ability to use the weight of the international trade currency to manipulate foreign government.  The global economic system would have an alternative.  The fracturing of the world, created as an outcome of energy development, would be guaranteed.

Keep in mind, in early June Federal reserve Chairman Jerome Powell stated, “rapid changes are taking place in the global monetary system that may affect the international role of the dollar.”  {LINK}

The western alliance (yellow) would be chasing climate change energy policy to power their economies.  The rest of the world (grey) would be using traditional and more efficient energy development.  The global cleaving around energy use would be complete.

This is not some grand conspiracy, ‘out there‘ deep geopolitical possibility, or foreboding likelihood as an outcome of short-sighted western emotion.  No, this is just a predictable outcome from western created events that pushed specific countries to a natural conclusion based on their best interests.

You can debate the motives of the western leaders who structured the sanctions against Russia, and whether they knew the outcome would happen as a consequence of their effort, but the outcome was never really in doubt.  Personally, I believe this outcome is what the west intended. The people inside the World Economic Forum are not stupid – ideological, yes, but not stupid. They knew this global cleaving would happen.

For a deep dive on BRICS, as predicted by CTH, {SEE HERE}.  The bottom line is – the 2022 punitive economic and financial sanctions by the western nations’ alliance against Russia was exactly the reason why BRICS assembled in the first place.

Multinational corporations in control of government are what the BRICS assembly foresaw when they first assembled during the Obama administration.  When multinational corporations run the policy of western government, there is going to be a problem.

In the bigger picture, the BRICS assembly are essentially leaders who do not want corporations and multinational banks running their government. BRICS leaders want their government running their government; and yes, that means whatever form of government that exists in their nation, even if it is communist.

BRICS leaders are aligned as anti-corporatist.  That doesn’t necessarily make those government leaders better stewards, it simply means they want to make the decisions, and they do not want corporations to become more powerful than they are.  As a result, if you really boil it down to the common denominator, what you find is the BRICS group are the opposing element to the World Economic Forum assembly.

The BRICS team intend to create an alternative option for all the other nations. An alternative to the current western trade and financial platforms operated on the use of the dollar as a currency.  Perhaps many nations will use both financial mechanisms depending on their need.

The objective of the BRICS group is simply to present an alternative trade mechanism that permits them to conduct business regardless of the opinion of the multinational corporations in the ‘western alliance.’

The BRICS team, especially if Saudi Arabia, Iran and Argentina are added creating BRICS+, would indeed be a counterbalance to the control of western trade and finance.  This global cleaving is moving from a possibility to a likelihood.  If Saudi Arabia joins BRICS the fracture becomes almost certain.

Tyler Durden
Mon, 07/04/2022 – 06:00

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