In These New Times

This is indeed a war and as we have seen in Libya the centralised command over military, terrorist, intelligence, media and political players across the spectrum makes many things possible, even the entry of a ragbag army into Tripoli. The author is absolutely correct to point out the Anglo-Americans’ ability to continually seize the initiative even using the most outrageous methods such as the deployment of rating agencies which should have been behind bars years ago. Still, from the Clausewitz point of view, they can, I think, be criticized for doing too much: they are throwing everything at Europe and people are beginning to notice it’s war. If you conspire enough against people they will become conspiracy theorists. The whole world has to learn this simple lesson: the only way to be at peace with the Washington/London axis is to prepare for war. Europe have a simple devastating weapon which they can unleash against Wall street/City of London; the Eurobond, backed by the world’s emerging economies.

Pravda 

20th September, 2011

Dollar exchange rate continues to rise, despite the enormous national debt and virtually pre-default state of the USA. Why? 
Mikhail Fedorov, analyst of “RIC-Finance”:
 “Today, because of the debt crisis the Eurozone and the U.S.  became competitors in terms of their attractiveness to outside investment, and therefore their ability to fund their own public loans. In fact, they are competitors in terms of attracting investment. The world today simply does not have enough funds to finance both the euro area and the U.S. simultaneously. The flow of investments in one region will pump blood from another one. This creates a conflict of interests between the two largest economies in the world.
Of course, we are not talking about an economic war (perhaps not yet), but the presence of the opposing sides, in my opinion, suggests that the laws of war are relevant.

“The strategy is using the battle for the war, therefore, it should give the military action the goal that would correspond to the meaning of the war. … A monarch or military leader who knows how to direct a war he is leading in strict accordance with his objectives and means, and who is doing not too much, not too little, provides the best proof of his genius. But the influence of the genius effect is not so much in the newly found design steps that immediately catch the eye, but in the final happy outcome of a business.”

Europe is like a powder keg: Greece yesterday, Italy today, and again, Greece. In the meantime, there was Spain. But these are separate instances without a common strategy. Europeans do not have it because there is no unity of command and consistency. In the U.S., by contrast, is not the case, the authorities have their fingers on the pulse and conduct the ongoing processes, not allowing the particulars take the initiative.
Therefore, even if Europe manages to “plug” another hole, there will be a new one. Accordingly, the U.S. has a better chance of winning the competition for cash flow.

If you look at it from this perspective, the dollar at the moment seems preferable to the euro, and in the medium term, the euro exchange rate will only decline. Even though the dollar is now much more expensive than the euro, mathematically the dollar should be worth much less. Much more important than any mathematics is the fact that with this administration, the worst case scenario with the defaults of some European countries and the collapse of the euro area in general is not ruled out.