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Posted on 09/21/2001 8:17:32 AM PDT by Boonie Rat

The Party is over.

Hans Schicht

A few fatal minutes rudely changed the destiny of mankind. One by one the guests are leaving. The host, still in utterly confusion, is left with the mess. The loss of human lives is a tragedy and the material damage horrendous. The subsequent loss of confidence, prestige and pride are even worse. Not only has the exuberance emptied the kitty, the accumulated debts are killing. No more parties, suvs, gadgets, holidays or luxury. A feeling of insecurity, doubt, and fear has crept in.

The consequence of this act of terror will be as profound as the Fall of the Berlin Wall. But whereas the Fall of the Berlin Wall led to freedom, September 11th Ash Tuesday has opened the road to chaos and suppression.

The technical organization and the execution of the diabolical plan were near perfectly masterminded: the preparation, the time of the day, the type of airplanes, the maximum fuel for cross continental flight, the selection of the structures and at what angle and height to hit. No terrorist organization would ever be able to set this up alone. The Israelis view the action being far too complex for the Palestinians or even Bin Laden. The Israelis suspect Sadam Hussein of having recruited Osama Bin Laden with his suicide volunteers.

However, it is the whole concept of the attack and the reasoning behind it, which makes me wonder. The strike was aimed at the very nerve center of America. It hit like a brain-stroke. It could not have been more damaging for American prestige and confidence. It has been so thoroughly thought through to inflict the greatest harm to the mightiest Super State with the least effort, under cover of anonymity. It cannot have been the brainchild of a single person or a small group of people. It did not smell of pure revenge. Neither can I see it as grasp for power by the Merchants of Debt. New York is their imperial capital and the strong dollar their foundation. They would have hurt themselves much more than they would have gained. That is not to say, they will not take advantage. Not only to cover the trail of their manipulations and deceit, but to tighten their stranglehold on finance, economy and people even more so.

No, this was a master opening chess stroke in a yet undeclared war by a still anonymous (reborn) power.

Rumors are abounding of possible second waves of attacks. That may be, but I have the feeling that, for the moment at least, we should be more aware of subsequent undercover financial and information subversion. The attack might not have been aimed so much to cause maximum physical, structural financial and moral, but more sinisterly, its main intent might well have been to sway western finance out of equilibrium. Thus, besides the danger of further physical acts of terrorism, a follow up with subtle veiled attacks, specifically aimed at western finance and the dollar in particular, could very well be in the cards. Such might come in the form of undercover financial moves destabilizing markets, in the form of disinformation and who knows what else.

Some recent events stand out. One is the discussion held last June in the Russian Parliament, the Duma, which highlighted the possibility that the recent policy decisions adopted by the Russian government on gold and currency could trigger an American centered financial and economic crash. Something, which in my mind would be impossible. A second is the suspension on August 25th of all Russian precious metal in- and exports. A third one, only days after Russia had stopped all their precious metal exports, is a call by left wing Venezuela at last weeks meeting of Latin American Central Banks in La Paz, Bolivia, for Latin America, to limit its sales of national gold reserves to stabilize prices. For your guidance Hugo Chavez is a great friend of Fidel Castro.

Putin is an ex-KGB man and the first foreign visit Putin undertook after becoming president, was visiting Iraq and Sadam Hussein. Saudi Arabia is the world’s biggest oil exporter and Russia is the world’s biggest oil producer. Iraq is the pivot Middle East oil policies turn around.

Putin is moving to get Russia on track again, the KGB track. Two years ago he made Russia to default on its debts in order to get Russia’s finances back on an even keel. The consequent collapse of Long Term Credit Management and the violent reverberation of the Western financial markets by the failure of just one company must have surprised the Russians and have made them think.

The old establishment under the political guidance of the KGB is firmly back in power. They will never forgive Yeltsin and the West for the years of looting Mother Russia has suffered.

For the KGB the Cold War was never over, but for the West the Cold War has become history. The KGB leaves the West with its illusions and shifts quietly to their new type of Cold War: Undercover Cold War by Proxy. Sadam Hussein, a trusted alley is engaged. Russia itself, now a recognized civilized country and member of the Group of Eight, would not fall under suspicion.

The trail left behind on Ash Tuesday, September 11th, was carefully planned to lead to Muslim fanatics. Sure, they were the easily recruited executioners, but never ever could they have thought through the concept and set-up of the diabolical plan. Easy to make the Palestinians, Bin Laden, and the Taliban harboring him, the scape-goats. Branded, they were already as ultimate terrorists. How easy to direct the fury of the American people toward them. And how convenient to try to entice the Americans to clean up the Taliban and Afghanistan for them, a job the Russians themselves were unable to do in all their six years of fighting there. Do you think a clever man like Bin Laden would not have understood the dangers of American retaliation, and putting himself and his followers at severe risk?

There is one country which is bound to gain much from the situation and that is Russia. In one single move Russia inflicted a near fatal blow against the dollar and western finance and in the same move reestablished itself as a world power to be reckoned with. Financially, with a reborn ruble backed by oil and precious metals. Politically, with its nuclear strike capability still in place and its adversary out of balance, bleeding from a first ever direct hit on its own soil.

I do not foresee an immediate second wave of terror striking the US. The terrorists will first have to make sure their cells, lines of communication and contacts in the US are still safe and unknown before they will endeavour to proceed with further action. The present danger lies more in American forces involving in retaliatory action overseas falling into a trap, where in comparison the Iranian hostage crisis might look like a holiday.

The danger for Western Finance lies in possible undercover sabotage of measures taken or to be taken by the US financial authorities to stabilize the markets and the dollar. Even with Communism gone in Russia, the KGB is still in power and still works for the death of Western Capitalism.

The dollar is bound to plummet in the coming weeks. Americans themselves might be patriotic but all foreigners, holding substantial US share and bond investments, will be sellers, and will be moving out of dollars on a big scale.

For the Merchants of Debt, in order to safeguard their insane speculative positions of trillions of dollars of financial derivatives in currencies and interest instruments, nearly all of them linked to the dollar, the sole control and freezing of the price of gold will not suffice any longer.

Till September 11th everything went according plan. Their derivative positions were only subjected to the normal run of the markets, relative to small variations in exchange and interest rates. Alas for them however, the out of the blue terrorist attack has thrown their hedging in disarray.Currencies and interest rates under strain are beginning to show increasing fluctuation and gyration. The sole control of gold must have lost its effectiveness in keeping the derivative positions stable. For the time being at least and as long as instability and uncertainty reigns.

For the Merchants of Debt the importance of the control of gold has shifted to the derivative position of gold proper. And the defense of the breach opened up by the terrorist attack in their financial derivative position will have to come from new, additional initiatives.

The June discussion in the Duma must have been a set-up with the veiled intent to prepare the Russian parliamentarians and people for financial changes to expect in a subtle way, without the need to have to reveal any pre-knowledge of the events planned by the KGB. The Venezuelan Central Bank might have been primed in the same careful way. The halt of Russian precious metal exports speaks for itself. So beware of more unexpected and sudden happenings hitting the markets!

The times of the one super power and the pax americana are over. From now on, it will again be three super powers vying for world domination. China caught up, Russia rejoined, and the US haemorrhaging from loss of prestige and slaved under the Merchants of Debt. Europe, the Hydra without any heads, turning into a political miscarriage, but it does not know so yet. Japan still lost in its homegrown labyrinth.

A full world dominated by three super powers at one another throat is not a pleasant prospect. There is no place left for expansion except to the detriment of others. For humanity to survive on our limited planet we cannot have super powers bullying around. To survive mankind needs drastic changes.

What the terrorist attack on Manhattan has taught us, is that big powers and power concentration in itself are outdated. One well planned terrorist attack by a small group even on the biggest power can create havoc. Small has become powerful, big unmanageable, vulnerable. May it be in weapons, in computers or organization, the balance of power has decisively shifted to small.

The European Union composed of nation states and governed by Brussels is an anachronism. A Europe of Regions represented in a broad European parliament would be more appropriate. Nations like the USA, Russia, China, India, Indonesia, Brazil etc. have become ungovernable. Too many diverging interests and people under one roof. Only by applying ever increasing controls are super governments still able to cling to power. A not to enjoyable prospect for the citizen and a danger for the rest. A world with many little regional nations would run smoother, would be more adaptable and accommodating. Maybe with a risk of occasional localized wars but not any longer with the prospect of all out destructive world wars.

Under the present circumstances the US could make a first step in decentralizing power and divide its territory into more manageable, more harmonious and strategically more efficient sizes. Why keep all power concentrated in one single vulnerable spot, the political power in Washington and the financial power in New York? Instead of rebuilding Manhattan, why not spend the money more efficient country wide? Smaller is not only beautiful, it is stronger! So it counts for finance, commerce and industry. Megalomania has grown into the absurd. The entrenched government establishment has become arrogant. Take the CIA, the FBI and the Pentagon, riddled with intrigue corruption and mismanagement. In any parliamentarian society the CEOs of such institutions would have had at least the decency to resign, after they failed so disgracefully in protecting their country. Why has President Bush not fired them yet? Their constant meddling and interventions in foreign countries affairs and politics are one important reason for the flare ups of revenge full acts against the US. The Cato Institute has found empirical evidence linking US military interventions to retaliatory acts of terrorism.

The people of the United States are facing three adversaries: China, Russia and at home the Merchants of Debt. The latter enslaved America with debts to over U$ 60.000 per household. They corrupted the democratic institutions and gave the United States a bad name with their aggressive loan peddling and usury practices.

Poor America, betrayed at home, menaced by foreign powers, unjustly vilified, never recognized for its contribution to freedom and human progress. America, the world needs you. Become free again in every sense!

September 18, 2001 Hans Schicht For other essays by Hans Schicht go to www.gold-eagle.com/research/schichtndx.html

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