Wednesday October 26, 2011
I believe the Russian Foreign Minister Sergei Lavrov concerns are certainly valid with regards to the United States and the behaviour of the US Government and their decisions.
Russian Foreign Minister Sergei Lavrov, Russian President Dmitry Medvedev and Russian Prime Minister Vladimir Putin are three smart men and for years they have had to work / tolerate the elected government administrations of the United States.
By now the Russian government should be aware of these facts about the United States government.
1) Peak oil was reached in the United States in 1970 and between 2020 and 2030 is having exhaustion. The current United States model for transportation is based on fossil fuel energy. But it is more complicated than that because oil is used in so many other products today including fertilizer, plastics, cosmetics and so forth.
2) Because the United States is keenly aware of its vulnerability to oil and its availability it is a priority for the United States Government to secure oil and natural gas reserves where ever they may be in the world.
This problem has an increased urgency if one is aware that the Mexican oil fields are now in catastrophic collapse and will be depleted by 2020. These oil fields are now experiencing a year on year decline of 30% to 35%. It is very serious. Mexico exports their oil to the US.
Canada has become a major exporter of oil to the United States by mining is tar sand reserves in Alberta. In Northern Alberta the tar sands being strip mined and processed are very close to the surface. This will be the case until the year 2020. After 2020 the cost of strip mining tar sands is going to go up as deeper and deeper pits will be required. At the same time the tar sand supply will be be decreasing dramatically from what I have read. There will be insufficient oil to send to the United States to maintain their current oil based economy.
3) Around the world countries who are NOT willing to sell their oil and natural gas to the United States are being invaded and taken over. Afghanistan (for an oil and natural gas pipeline), Iraq for its light crude oil reserves, and Libya for its light crude oil reserves are the three most recent examples.
The Libyan conflict is better understood if one is aware that the North Sea oil reserve that supplies the British Isles is now in catastrophic collapse like Mexico. The North Sea oil fields are now declining year on year at 30% to 35% a year. Exhaustion of the North Sea Oil fields is expected by 2020.
So securing the light crude Libyan oil reserves was very important for Britain, Europe, the United States and Canada. The United States, Canada NATO were actively involved in the Libyan campaign in order to ensure that they could share in the oil and natural gas once they controlled the Libyan Government again.
The loser in the Libyan conflict was China who is now deprived of this energy resource.
Another valuable commodity in Libya is a vast underground fresh water lake. Whoever controls Libya now has access to these three natural resources to exploit and sell, oil, natural gas and fresh water.
4) Understanding how the United States Government works and democracy in the West.
There is only an illusion of democracy in the United States. The United States has two political parties the Republican Party and the Democratic Party. They are really two sides of the same coin. The real United States government is not elected by resides in another power base. This power base carefully plans and executes the political decisions that the elected Administration must follow. So the elected US Administration is really a puppet for a much more powerful organization running the country.
This is not to say the elected politicians cannot make recommendations for how they would like to change how their country runs, but their are definite limits to what they can do.
5) The money supply in the United States is NOT controlled by the United States Government. The money supply for the United States is controlled by the Federal Reserve Bank. The Federal Reserve Bank is a PRIVATE banking institution.
This private banking institution controls the money supply in the United States, Canada, the British Isles, and Europe from what I understand.
By controlling the money supply, this private institution of bankers can also control world politics. Money, power and control just go hand in hand in our civilization.
6) By setting the financial rules of the world, this group of people can literally control the economics of the world. This is accomplished with the WTO (World Trade Organization) and IMF (International Money Fund).
If a poor country needs money to play by the rules of this organization then they need US dollars which is the default currency for the world. This came about when the United States became the first major exporter of oil and became a dominant super power after the 1st and 2nd World Wars that destroyed the factory base in the British Isles, Europe, Russia, Japan and China. The United States was the ONLY modern industrial country not affected by the World Wars.
After World War I II, countries around the world were eager to adopt the US Currency as a global standard because it was the only way that they could quickly rebuild their economies and import goods. After the United States peaked in oil production 1970, the financial structure was now firmly in place for worldwide financial control.
This financial control was used to ensure that the United States Government and United States Power Base could control economies around the world that they could benefit from.
7) Changes to this financial power base in the United States will NOT be tolerated. Money, power and control go hand in hand.
When President John F. Kennedy attempted to pass legislation that would transfer control of the United States money supply back to the United States Government from the privately held Federal Reserve Bank he as assassinated. No further attempt by any other American politician has tried to change the American money supply back into the control of the United States Government.
8) The United States European Missile Defence Shield. Why is it being built?
There are two reasons why the United States European Missile Defence Shield is being built and why Russia is both interested and concerned about participating in its construction.
Russia now has the largest oil and natural gas supplies on the planet, surpassing even Saudi Arabia.
Demand for Russia’s oil and natural gas reserves comes from China, India, Europe, the United States, Canada and Russia itself.
Russia also has an abundance of other natural resources and territory for colonization.
Russia has a declining population of 135 million people, living beside China with a population of 1 billion, lack of living space, declining energy resources and an economy growing at 9% a year.
Russia is an acceptable country to be invaded and controlled by China to expand its empire out of simple necessity and demand.
By partnering with the United States Europe to build the European Missile Defensive shield, Russia can help to protect its vast resources of oil, natural gas, other resources and agricultural land. In exchange for the export of oil and natural gas of course. Nothing is free.
However between the year 2020 and 2030 all known oil reserves around the world will have declined to such a degree that it may become a necessity of the United States to take control of the Caspian Sea oil and natural fields. In this case the European Missile Defence Shield would be turned against the Russian military to disable them and ensure an easy invasion and military occupation.
The problem with this scenario is that China will want the same oil and gas Russian reserves and will not tolerate being cut off.
9) So Russia needs to find an economic solution that will make it independent of the western money supply that is created by the Western European private banks like the US Federal Reserve and used to control countries economically and politically.
Only by having an independent financial structure can Russia navigate its own future course. Otherwise these private banks will dictate terms through WTO and IMF agreements. Where WTO = World Trade Organization and IMF = International Money Fund.
One suggestion being proposed to Russia is the new financial concept of “Work Credits”.
The financial concept of “Work Credits” changes how a country values its money supply for the purpose of empowering all of its citizens to do work that benefits their community, city, state and country.
In a “Work Credit” based society the people of the country become its most valuable natural resource. The people are assigned a lifetime value to do work to benefit their economy and it is added to the country’s money supply.
For this example I will use $50,000 a year as it is the amount the Russian President Dmitry Medvedev would like every Russian citizen to earn. This is COMPLETELY feasible in a “Work Credit” based Russian society.
Person’s Economic Value to Country = (100 years – Person’s age) x $50,000 a year
Country’s Money Supply = ( 100 years – Median age of population) x $50,000 x population
Country’s Working Capital = Country’s Money Supply x 7% (for example)
Immediate benefits to Russian society.
Unemployment is impossible. People now come with a built in economic value of $50,000 a year to work for the government (local, republic or federal), military, corporation, small business, be an entrepreneur, be a stay at home parent raising a family of children, going to school K to 12, college or university.
Poverty ceases to exist. Everyone has a built in economic value of $50,000 a year to do work that benefits their community, city, republic, country.
Homelessness ceases to exist as people can be paid to build their own homes or pay to have others build it for them.
Children become economic assets to a family encouraging couples to have children. Each child comes with an economic value of $50,000 a year to go towards food, clothes, shelter, education and other expenses associated with raising children.
Russian children abandoned due to lack of funds to raise them ceases to exist.
Russian population increases and is stronger, better educated, and happier than any other point in history.
Russia’s population becomes the most educated in the world. Education is now a paid occupation for both students 4 to 24 years of age and older adults improving and updating their skills after years of working to benefit their community, city, republic and country.
Russian government has NO lack of funds to employee its citizens to help govern their country. This is because each government employee now comes with $50,000 in built in economic value a year.
The Russian military has NO lack of funds to employee soldiers to defend Russia and develop new defensive weapons to protect Russia from invasion. Each Russian soldier now comes with a built in economic value of $50,000 a year.
Russian corporations have NO lack of funds to employee Russian citizens to help run their businesses. This is because each employee now comes with $50,000 in built in economic value a year.
Russian entrepreneurs with an idea to contribute to their community, city, republic or country now have a built in economic value of $50,000 a year to do this entrepreneurial work.
Student entrepreneurs with new and exciting ideas will for the first time flourish in Russia knowing that they will be paid for work effort performed.
The entire Russian economy surges in job creation, productivity, entrepreneurialism, education, immigration , population growth, and overall population happiness.
“Work Credits” are not about equality in Russian society.
“Work Credits” are all about empowering a country’s population to do work that benefits their community, city, republic and country.
People have a built in economic value of $50,000 a year. Positions that require certain skills will compensate more in “Work Credits”. Natural greed will fill these positions.
Let people do what they love, and what is legal, pay them for this work effort and watch Russia grow and prosper like never before in history.
“Work Credits” are valued independently of energy supplies. This means that when fossil fuels run low around 2030, the Russian economy and the Russian banking system will continue to function without any problems.
This will not be true of the Western and European banking system that is only possible because of cheap fossil fuel energy. When affordable fossil fuel energy in the form of oil and natural gas in no longer available the Western European Banking system will collapse as millions of people become unemployed and corporations go bankrupt.
“Work Credits” ensure a more stable financial system.
10) The biggest threat to those who hold financial power and control in the United States and Europe is that Russia will be able to establish a “Work Credit” based society that can exist without their influence and control. And if Russia can do it, then China, India and other countries can follow their lead and implement “Work Credit” based financial systems and revalue their money supplies.
11) The financial concept of “Work Credits” does not replace Capitalism but rather supports it.
12) Implementation the financial concept of “Work Credits” in Russian society solves all of their current problems with regards to empowering all of their citizens to work to benefit their community, city, republic and country, and make $50,000 a year, eliminate unemployment, poverty and homelessness, increase the population, increase immigration, better protect Russia’s borders, better protect Russia’s energy resources. Remain independent of Western financial control through the use of the WTO and the IMF. Where WTO = World Trade Organization and IMF = International Money Fund.
Arnold Vinette
UVM Economics
University of Vermont
Burlington, Vermont