How do you reap economic benefits for your country? By intervention of the political structures of other countries.
Many totalitarian regimes are backed by US aid or donations if they support US regional policies. Although the USA advocates democracy yet they always turn a blind eye to the governance of such rulers.
These regimes, many of which, have fallen by the wayside over the years – Shah of Iran, Marcos of Philippines, Noriega of Columbia and Mubarak of Egypt in modern times are good examples. 1973 is the year when oil prize quadrupled to USD34 per barrel, Shah fell in 1976. 2008 is the year of the once a century credit crisis, 2011 is the year when Mubarak fell. Marcos fell in 1986, one year after 1985 [the plaza accord] when USD reached its peak. Each fall happens after the US economy reaches a top, are their falls caused by the tide or by plan? History indicates that it could be both.
After each fall, US assets of these rulers are usually freezed. Although you can say new governments will be formed and will launch their search of state assets siphoned off by these rulers and then put forward such claims to the USA, the US government will send them back without hesitation, the reality is much more complex. How about when one government in the past is now split into two or more governments, do you need agreement between these new governments to launch concerted claims against such assets? Do not forget the US legal system involves considerable costs and also the US government does not volunteer such information. Along the way you need US accountants to forensic track and trace such funds’ whereabouts, draw up the claims list while US lawyers are required to represent the new regime[s] on such claims in courts.
When assets are freezed by US state department, the following parties will benefit:
- Banks or financial instutitions – gets something like interest free bonds or perpetual capital for 10, 20 or 30 years as the amounts banked by these rulers are huge even by bank standards. Depending on when such claims are launched and processed, the assets can only be unfreezed after a long and winding claim process, it’s not easy.
- Law firms – representing the new government(s) on such claims resulting in good honest fees;
- Accountancy firms – draw up the assets list, helps track and trace the funds’ whereabouts charging their clients huge fees along the way.
How much will the US benefit if China falls and split into many countries – HUGE, HUGE!!! China has 1000+ billions invested in US government treasuries and bonds of government sponsored agencies like FREDDIE and FANNIE. Imagine if China does fall, then the deficits or debts of the US government will go away for 10, 20 years at least, this can buy time for the US to recover.
If you are wondering whether QE3 is going to happen, look at what is happening now in Libya, QE2 is suppose to create inflation to avoid the USA falling into deflation [which increases the debt burden while inflation helps alleviate it], getting Libya into chaos has a QE3 effect, crude prices have shot up USD20 from about USD90 to what is now USD110+. Such policy drives up a lot of activities to explore and dig up crude oil, USA will hit the bottom faster, after the USD devalues so much, goods from the USA become much more competitive. Higher crude prices is the policy against China as it will hinder fast development in this emerging country and also generates a lot of social unrest within China.
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