Ukrainian Currency Peg and U.S. Military Reduction

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By JC Collins

Ukraine Revolution

News over the last few days is coming fast.  The modus operandi which we have been discussing as the old system transitions to the new system of SDR composition and allocation is becoming clearer.

Through the multipart series titled SDR’s and the New Bretton Woods we have learned how the problem/reaction/solution process of the Hegelian Dialectic will be used  to manipulate and direct the sovereign debt crisis and currency crisis around the world.

The transition from old to new, micro to macro, will not be all in one shot.  It will happen piecemeal from country to country and region to region.

What is happening in the Ukraine right now is a good example of the type of methodology which will be used.  Ukraine has a sovereign debt crisis, as do all other countries, and a natural division which exists within the demographics of the country has been used to explode the country into civil unrest and violence, leading to a coup or series of coups, as regional and international powers strategically position themselves for the greatest return in the new system as it emerges.

It is strategically important for Russia to remain in control of the Ukraine as it borders with Russia itself.  If Nato and the West control the Ukraine it will give them the opportunity to position forward bases on the border with Russia.  The Carpathian Mountains run through the Ukraine and act as a natural defensive wall to any invasion of Russia.  Without this shield the Russian army would have to be dramatically larger than it is now in order to defend the border effectively.

Carpathians

Not to mention that the West would have great control of the natural gas exports from Russia which feed the European market.  Russia simply cannot allow the west to gain permanent control of the Ukraine.

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Today we are hearing that the Ukraine has de-pegged its currency from the U.S. dollar.  Its not clear where it has been pegged but rumors coming out of Russia would suggest that the currency has been pegged to the ruble.  I would suppose that before this is all over the currency will be pegged to the SDR through the International Monetary Fund, just as we have been predicting on this site.

The end goal is to have all the worlds currencies pegged to the SDR.

The sovereign debt of the Ukraine will be consolidated through the I.M.F. and currency pegged to the SDR.  This is exactly what will happen to each country and its currency as the world moves from crisis to crisis between now and 2018.

The International Monetary Fund has no direct interest in who controls the Ukraine as long as the end goal is achieved.  Remember we stated in a previous essay that the Ukraine would be the hinge between the European Economic Zone and the Central Asian Economic Zone which will include the Upper Middle East.

Considering Afghanistan, Iraq and Iran will all be part of the Upper Middle East and Central Asian zone, is it any wonder that the U.S. was attempting a similar coup through violent revolution in Syria, which is the hinge between the Upper Middle East and Lower Middle East.  To bypass Russian exports of natural gas to Europe, the west would have required to control the gas exports from Syria and into Europe from alternate routes.

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Russia and China put the U.S. in check mate over Syria.  So the western interests shifted their attempts towards the Ukraine, which was always their back up plan.  If Russia can also check mate them in the Ukraine then it will force the western interests to accept the inevitability of equal SDR allocation based on equal weights and measures.

And remember that Syria has already pegged its currency to the SDR.

Going back to our hinge concept for the Ukraine, it could be debated that the country should be split  in a similar fashion as Germany was during the Cold War, but the position of the Carpathian Mountains in the west of the country would suggest this as a very bad idea for Russia.

Also yesterday, Defense Secretary of the U.S. Chuck Hagel has stated that the military will be reduced to pre WW2 levels, with the retiring of equipment and the closing of bases.

This makes perfect sense with our theory of economic system transition considering the U.S. military was built up to such a level after the dollar became the worlds primary reserve currency in the Bretton Woods agreement of 1944.

As the dollar is removed from primary reserve status it will have to reduce its military spending by receding back within its borders.  The money will not be there to support a large military war machine.

The G20 has collectively stated that the I.M.F. Code of Reforms must be passed through the American Congress by April.  This will be a huge step in removing the dollars reserve status and allowing other countries to peg their currencies to the SDR.

Things are moving fast.  Even if it doesn’t appear so.  JC Collins