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Source: The Saker
February 06, 2023 | By Cynthia Chung for the Saker blog
As already discussed in my paper "Is Japan Willing to Cut its Own Throat in Sacrifice to the U.S. Pivot to Asia?", to which this paper is a follow-up, Japan has become the ticking time bomb for the world economy.
This is not an unexpected outcome for Japan but has been in the works for the last 50 years as a policy outlook of the Trilateral Commission (though is not limited to this institution). It is in fact the League of Nations' vision that has been on the wish list of those who began WWI in hopes that the world would accept a one world government of regionalisations in service to an empire. It is what orchestrated the Great Depression to again attempt an implementation of a League of Nations outlook through the rise of a "National Socialist" brand of fascism seen in Italy and Germany (which would not have been possible without an economic crisis). And it was what launched a Second World War in a desperate attempt to forcefully implement such a vision onto the world (for more this refer here and here.)
It has always been about obtaining a League of Nations organization for the world and those who have called themselves democrats have often found themselves in the same room as those who called themselves fascists in order to see such a vision through.
As Count Richard Coudenhove-Kalergi, the father of Pan-Europeanism (who happened to also be pro-fascist), wrote in his 1943 autobiography "A Crusade for Pan-Europe":
"The Anti-Fascists hated Hitler…yet they…paved the way to his successes. For these anti-Fascists succeeded in transforming Mussolini, Hitler's strongest enemy during the years of 1933 and 1934, into Hitler's strongest ally. I don't blame the Italian and Spanish anti-Fascists for their brave and very natural fight against their ruthless political enemies. But I blame the democratic politicians, especially in France…they treated Mussolini as an ally of Hitler till he became one."According to Kalergi, and many other 'elites' of similar pedigree, it was an inevitability that a fascist Pan-European rule should occur, and Kalergi expressed his clear disdain for anti-fascist and democratic resistance to this 'inevitability'. From Kalergi's standpoint, because of the anti-fascist and democratic resistance to a more 'peaceful' transference to fascism, they had created a situation where fascism would have to be imposed on them with violent force. It was a tragedy in the eyes of Kalergi that could have been avoided if these countries had simply accepted fascism on 'democratic' terms.
Count Richard Coudenhove-Kalergi would write in his other autobiography "An Idea Conquers the World":
"The use of mass hypnotism for propaganda purposes is most successful at times of crisis. When National Socialism made its bid for power, millions of Germans had been thrown completely off their balance: middle-class families had sunk to the level of the proletariat, whilst working-class families were without work. The Third Reich became the last hope for the stranded, of those who had lost their social status, and of those rootless beings who were seeking a new basis for an existence that had become meaningless…The father of Pan-Europeanism and spiritual father of the European Union, Count Richard Coudenhove-Kalergi, often spoke well of Austrian and Italian fascism and even Catholic fascism, and thus the above quote by him takes on another layer of eeriness. Kalergi acknowledges that Hitler's rise would not have been possible if there had not been two periods of extreme economic crisis for Germany. The question is, were these crises organic in their occurrence or rather engineered?
The economic background of the Hitler movement becomes apparent when one recalls that Hitler's two revolutions coincided with Germany's two great economic crises: the inflation of 1923 and the recession of the early 1930s, with its wave of unemployment. During the six intervening years, which were relatively prosperous for Germany, the Hitler movement was virtually non-existent." [emphasis added]
In Kalergi's 1954 autobiography "An Idea Conquers the World," he writes: "there is not doubt that Hitler's popularity rested mainly on the fanatical struggle which he waged against the Versailles Treaty."
If we look at the political ecosystem Kalergi was navigating in, we get some hints to such a question, which included such men as Max Warburg, Baron Louis Rothschild, Herbert Hoover, Secretary of State Frank Kellogg, Owen D. Young, Bernard Baruch, Walter Lippmann, Colonel House, General Tasker Bliss, Hamilton Fish Armstrong, Thomas Lamont, Justice Hughes. All of these men are named by Kalergi directly as his support base in the United States in his autobiography. They were adamantly supportive of Kalergi's Pan-Europeanism, aka a "United States of Europe," were staunch supporters of a League of Nations vision and were architects within the Paris Peace Conference (1919-1920) which was responsible for the Treaty of Versailles which launched Germany into its first wave of extreme economic crisis. (For more on this story refer here.)
In my previous paper, "Is Japan Willing to Cut its Own Throat in Sacrifice to the U.S. Pivot to Asia?" I discussed how this is the very goal of the Trilateral Commission, to create economic crises in order to push through extreme structural reforms.
Financial analyst and historian Alex Krainer writes:
"The [Trilateral] commission was co-founded in July of 1973 by David Rockefeller, Zbigniew Brzezinski and a group of American, European and Japanese bankers, public officials and academics including Alan Greenspan and Paul Volcker. It was set up to foster close cooperation among nations that constituted the three-block architecture of today's western empire. That 'close cooperation' was intended as the very foundation of the empire's 'three block agenda,' as formulated by the stewards of the undead British Empire."Its formation would be organised by Britain's hand in America, the Council on Foreign Relations (CFR), (aka: the offspring of the Royal Institute for International Affairs, the leading think tank for the British Crown).
On Nov 9th, 1978, Trilateral Commission member Paul Volcker (Federal Reserve Chairman from 1979-1987) would affirm at a lecture delivered at Warwick University in England: "A controlled disintegration in the world economy is a legitimate object for the 1980s." This is also the ideology that has shaped Milton Friedman's "Shock Therapy".
In 1975 the CFR launched a public study of global policy titled the 1980's Project. The general theme was "controlled disintegration" of the world economy, and the report did not attempt to hide the famine, social chaos, and death its policy would bring upon most of the world's population.
This is precisely what Japan has been undergoing, and which economist Richard Werner demonstrated in his book Princes of Yen, to which a documentary by the same name was made. That Japan's economy was put through a manufactured bubble in order to create an economic crisis that would then justify the need for extreme structural reform.
We will now briefly discuss how the United States, the Tiger Economies and Europe have also been put through the same process of manufactured economic crises and what this means for the world today, what has been the consequence for Europe in following a "United States of Europe" model and how does the one world government model of a League of Nations differ from the multipolar framework made up of sovereign nation states. I will conclude this paper with remarks on why Shinzo Abe was assassinated.
Colonialism 2.0: The Asian Economic Crisis of the Tiger Economies
Japan was not the only high-performance economy in Asia that in the 1990s found itself in the deepest recession since the Great Depression. In 1997, the currencies of the Southeast Asian Tiger Economies could not maintain a fixed exchange rate with the U.S. dollar. They collapsed by between 60-80% within a year.
The causes for this crash went as far back as 1993. In that year, the Asian Tiger Economies – South Korea, Thailand, Indonesia – implemented a policy of aggressive deregulation of their capital accounts and the establishment of international banking facilities, which enabled the corporate and banking sectors to borrow liberally from abroad, the first time in the postwar era that borrowers could do so. In reality, there was no need for the Asian Tiger Economies to borrow money from abroad. All the money necessary for domestic investment could be created at home.
The Princes of Yen documentary remarks:The IMF knew well what the consequences of its policies would be. In the Korean case, they even had detailed but undisclosed studies prepared, that had calculated just how many Korean companies would go bankrupt if interest rates were to rise by five percentage points. The IMF's first agreement with Korea demanded a rise of exactly five percentage points in interest rates.
"Indeed the pressure to liberalise capital flows came from outside. Since the early 1990s, the IMF, the World Trade Organization and the U.S. Treasury had been lobbying these countries to allow domestic firms to borrow from abroad. They argued that neoclassical economics had proven that free markets and free capital movement increased economic growth.
Once the capital accounts had been deregulated, the central banks set about creating irresistible incentives for domestic firms to borrow from abroad by making it more expensive to borrow in their own domestic currencies than it was to borrow in U.S. dollars.
The central banks emphasised in their public statements that they would maintain fixed exchange rates with the U.S. dollar, so that borrowers did not have to worry about paying back more in their domestic currencies than they had originally borrowed. Banks were ordered to increase lending. But they were faced with less loan demand from the productive sectors of the economy, because these firms had been given incentives to borrow from abroad instead. They therefore had to resort to increasing their lending to higher-risk borrowers.
Imports began to shrink, because the central banks had agreed to peg their currencies to the U.S. dollar. The economies became less competitive, but their current-account balance was maintained due to the foreign issued loans, which count as exports in the balance-of-payments statistics. When speculators began to sell the Thai baht, the Korean won and the Indonesian rupee, the respective central banks responded with futile attempts to maintain the peg until they had squandered virtually all of their foreign exchange reserves. This gave foreign lenders ample opportunity to withdraw their money at the overvalued exchange rates.
The central banks knew that if the countries ran out of foreign exchange reserves, they would have to call in the IMF to avoid default. And once the IMF came in, the central banks knew what this Washington-based institution would demand, for its demands in such cases had been the same for the previous three decades: the central banks would be made independent [and subservient to the IMF diktat].
On the 16th of July the Thai Finance Minister took a plane to Tokyo to ask Japan for a bailout. At the time Japan had USD $213 billion in foreign exchange reserves, more than the total resources of the IMF. They were willing to help but Washington stopped Japan's initiative. Any solution to the emerging Asian Crisis had to come from Washington via the IMF.
After two months of speculative attacks the Thai government floated the baht.
The IMF to date has promised almost $120 billion USD to the embattled economies of Thailand, Indonesia and South Korea. Immediately upon arrival in the crisis-stricken countries, the IMF teams set up offices inside the central banks, from where they dictated what amounted to terms of surrender. The IMF demanded a string of policies, including curbs on central bank and bank credit creation, major legal changes and sharp rises in interest rates. As interest rates rose, high risk borrowers began to default on their loans.
Burdened with large amounts of bad debts, the banking systems of Thailand, Korea, and Indonesia were virtually bankrupt. Even otherwise healthy firms started to suffer from the widening credit crunch. Corporate bankruptcies soared. Unemployment rose to the highest levels since the 1930s."
Richard Werner stated in an interview: "The IMF policies are clearly not aimed at creating economic recoveries in the Asian countries. They pursue quite a different agenda and that is to change the economic, political and social systems in those countries. In fact, the IMF deals prevent the countries concerned, like Korea, Thailand, to reflate."
Interviewer: "Interesting. So you're saying it's making the crisis worse and you're suggesting that the IMF has a hidden agenda?"
Please go to The Saker to continue reading.
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For a more nuanced and detailed analysis of this Count Richard Coudenhove-Kalergi character please read:
Link to above article on Japan:
More:
Related:
In order to break free from the IMF here is a good start:
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