Thursday, a gang of violent thieves and drug lords decided to counterfeit an additional 500 billion US Dollars in order to prop up their criminal empire. The move undermines the savings and production of the American economy, while at the same time allowing the gang to retain its stranglehold on the banking sector and drug trade. The move by the criminal organization to counterfeit the massive amount of money arises as an outgrowth of their various drug and racketeering schemes.
The gang had previously invaded and replaced the government of Afghanistan with their own drug kingpins after the Taliban had shut down opium production in the country. Prior to the Taliban shutting down opium production, Afghanistan had been the cartel’s primary location for the cultivation of opium products. The money generated from the sale of Afghan opium products is laundered through the US banking cartel, and serves to prop up the banking cartel with a large influx of reserve capital. Had the Taliban been allowed to remain in power, it is quite possible that the entire shadow US banking sector could have collapsed.
Antonio Maria Costa, executive director of the UN Office on Drugs and Crime (UNODC), noted, “In the second half of 2008, liquidity was the banking system’s main problem and hence liquid capital became an important factor…It appears that interbank credits have been financed by money which comes from the drug trade and other illegal activities. It is naturally hard to prove this, but there are indications that a number of banks were rescued by this means.”
The gang concluded that printing the 500 billion was necessary in order to keep their war and racketeering machine, and with it their drug and banking syndicates, operational through the remainder of the year. Normally the gang acquires the money to operate its criminal empire through direct looting of businesses and consumers, but recently it determined that direct looting simply could not provide the kind of money it needs in order to keep its various criminal enterprises operational.
In conjunction with using violence to impose its fiat money system on a hapless public, which ultimately allows to them to get away with their present counterfeiting operation, the gang has also waged a very violent global campaign to force the entire global economy to buy their fiat money in order to purchase oil products.
By forcing all major oil producing nations to price their oil in US Dollars, the gang has successfully been able to loot the rest of the world for their products and services. Because oil is priced in US Dollars, other nations must buy US dollars (debt) in order to purchase oil products on the open market. This allows the US to crank out an obscene amount of funny money in exchange for the sweat and labor of foreign nations without the US having to give them any real goods or services in return. Syndicate whipping boy Ron Paul has authored an article that explains the cartel’s operations in more detail here.
Recently the Libyan government had attempted to implement a gold backed Dinar standard, which would have undermined the US government’s ability to keep African oil priced in US Dollars. The move by Gaddafi to implement a gold standard necessitated swift and violent action on the part of the criminal syndicate to eliminate Gaddafi from power. If Gaddafi had been successful in his endeavors to price oil in terms of gold, while simultaneously implementing a gold backed currency system, the Libyan Dinar would have almost certainly become the de facto currency of the entire African continent.
Unfortunately for the American public, the criminal syndicate’s measures are ultimately self-defeating. As the crime syndicate massively expands its counterfeiting operations, it cannibalizes the economy that keeps it in power. Because the printing of money drives the production of goods and services overseas, it erodes the industrial base of the nation, ultimately leading to an impoverished welfare state that lacks the ability to feed, fuel, and sustain itself.
The crime syndicate really is caught between a rock and a hard place. The crime syndicate could dismantle itself voluntarily, which would lead to the collapse of its criminal empire, or it could choose to continue its money printing operations in order to sustain itself, but ultimately destroy itself anyway by causing a failure of the monetary system through hyperinflation.
Markets forces ultimately cannot be ignored or avoided through the use of violence. The market always manages to dismantle violently imposed currency systems and governance structures. The crime syndicate is finding out the hard way that looting destroys the incentive of private citizens to produce goods and services that improve the condition of humanity. As the public is cannibalized by criminal parasites, the parasites will eventually kill the host that keeps them alive. This leads us to the obvious conclusion that the only sustainable form of government is one that is funded voluntarily.
This article first appeared on Michael’s website LibertarianNews.org