Sunday, March 06, 2022

Situation Report On The Economic War With Russia

johnhelmer |  The ancient difference between the confiscation of your assets and a tax by force was the mandate of Heaven. This was the public announcement from God, transmitted through fellows wearing funny hats and costumes accompanied by drumbeats and whistles. When God wants to stick you up, they said, you’d better hand over your money or your life.

These days the rulers of the US, the European Union (EU) and Canada call this the “Rules Based Order”. That’s to say:  I make the rules, you take my orders. The meaning is still the ancient one – your money or your life.

The Chinese empire has been famous for a dress-up ceremony in which those who made the rules received the agreement of those who took the orders. It was called the kowtow. Nine kowtow was the standard,  plus expensive gifts.   The Roman empire and most of its successors, called it tributum, tribute.  Over the years, other names for it have been tax, protection money, and a gender specific form of kowtow popular in England and France called the ius primae noctis, droit de seigneur, or lord’s right.

The quaintness of the ceremony varies from place to place.  The British empire demanded its colonial peoples wave a small Union Jack in the left-hand corner of their independence flag. They also required their subject children’s pilgrimage at least once in their lives to the fence of Buckingham Palace in London for at least one performance of the Changing of the Guard.

In keeping with the times since 1945, the US empire has been more straightforward. It doesn’t require pilgrimages to the White House fence for children of tender age.  It does require you keep the US dollar in your pocket, or the local currency whose value is fixed in proportion, and whose state surpluses of taxation and pension funds must be stored in US Treasury notes, as well as the dollar.

In Russia, starting in 1991, Boris Yeltsin innovated on these measures by inviting US advisors  to run the Russian economy, which Yeltsin paid for by imposing a 100% tax on ordinary Russians’ salaries. This started the system of oligarchs whom Yeltsin allowed to dispatch and store, tax free, in the US, UK and EU as much state capital and income as they could carry off.  How that system has worked for the past thirty years, oligarch by oligarch, has been the subject of analysis here.    The effort has not gone without recognition.

At this very moment, the oligarchs are facing a Christian tax, but it’s not the Russian one you might think they have earned.  Instead, the 100% tax is being imposed in the form of  confiscation statutes by the US, UK and EU.   This is  not economic warfare so much as the application of the principle that what the oligarchs have been doing to Russians should now be done to them, according to the Mandate of Heaven as recorded in the Gospel of Matthew 7:12, Luke 6:31.

The Mandate of Heaven can also be found on the bottom of the US dollar note. That’s the signature line where the Treasurer of the United States and the Secretary of the Treasury promise to pay “all debts public and private”. Like other US treaty signatures, this no longer applies to  Russians, common ones, oligarchs, or the state, according to this novelty in the Rules Based Order. Russians must now sell everything in the country of value for US dollars – oil, gas, coal, uranium, aluminium, titanium, wheat, potash, urea, bank loan debts, airplane leases, etc. But  those dollars cannot be used by Russians to buy anything else. That value has been confiscated.

The response is still being formulated in Moscow. Russian government officials, members of the State Duma, the Central Bank of Russia, the General Staff, the oligarchs and their lobbyists have yet to agree. The terms of the debate are still largely secret; here was an opening shot against the Central Bank by Sergei Glazyev.

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