Nexus 1201 - new times magazine

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Nexus 1201 - new times magazine

  1. 1. NEXUS NEW TIMES MAGAZINE Volume 12, Number 1 DECEMBER 2004 – JANUARY 2005 UK/Europe edition Website: http://www.nexusmagazine.comLETTERS TO THE EDITOR.............................................4 NEW SCIENCE NEWS.................................................48 Comments from readers on NEXUS-related topics. Suppressed scientist James Fauble tells what heGLOBAL NEWS.............................................................6 knows of top-secret US government research into Groundbreaking news, including a RICO lawsuit magnetic monopoles, which hold great promise for filed over aspartame, massive vote-counting fraud developers of permanent magnetic motors. in the US elections, and the Pentagons objections SIBERIAS "VALLEY OF DEATH"—Part 2.....................51 to the EUs Galileo satellite navigation system. By Dr Valery Uvarov. Eyewitness accounts of theTHE ENDANGERED US DOLLAR...............................11 1908 Tunguska explosion reveal the existence of an By Richard Heinberg. The US dollar may collapse ancient high-tech installation in remote Siberia that if the OPEC nations decide to sell their oil for euros sent huge plasma spheres to destroy a meteorite in or if the "mortgage bubble" bursts, causing the US flight, preventing a major catastrophe. stockmarket to crash in the process. THE TWILIGHT ZONE................................................58TRUTH ABOUT VACCINES COVER-UP—Part 1.........17 Strange tales from on and off our world. This issue By Russell Blaylock, MD. US health agencies we feature Debbie Paynes exposé of files available realise that vaccines containing mercury and in the Australian National Archives that confirm aluminium have severe neurological effects, but are government knowledge of the UFO phenomenon. yet to force manufacturers to remove these toxins. REVIEWS—Books........................................................65DEATH BY MEDICINE—Part 3...................................25 "Censored 2005" by Peter Phillips & Project Censored By Carolyn Dean, MD, ND, Martin Feldman, MD, "The Seventh Sense" by Lyn Buchanan Gary Null, PhD, and Debora Rasio, MD. "The Encyclopedia of Medical Breakthroughs..." by MRA Assoc. Unnecessary medical treatments for women and "The Fourfold Path to Healing" by Thomas S. Cowan, MD poor care of the elderly are symptomatic of a "Why Arent I Learning?" by Rafaele Joudry health-care system in need of an urgent overhaul. "Crossing the Rubicon" by Michael C. Ruppert "The Canopus Revelation" by Philip CoppensSHORT HISTORY OF THE ROUND TABLE—Part 1....31 "Matrix of Creation" by Richard Heath By Will Banyan. Cecil Rhodes, Prime Minister of "Lemuria and Atlantis" by Shirley Andrews the Cape Colony in the 1890s and founder of De "Chemtrails Confirmed" by William Thomas Beers, had dreams of establishing an elite secret "Suns of God" by Acharya S society and creating a unified British Empire. "Shopped" by Joanna Blythman "Not on the Label" by Felicity LawrenceNIKOLA TESLAS AETHER-POWERED CAR................37 "Hoodwinked" by Uri Dowbenko By Igor Spajic. In 1931, Dr Nikola Te s l a REVIEWS—Videos & DVDs.........................................72 successfully road-tested a luxury Pierce-Arrow car "NEXUS 2004 Europe Conference" produced by Bert Janssen fitted with an AC electric motor and a tuned "NEXUS 2004 Brisbane Conference" by E&E Productions receiver hed designed to tap aetheric energy. REVIEWS—Music........................................................73THE WANDS OF HORUS...........................................43 "Caribbean Playground" by various artists By Dr Valery Uvarov with Carl Agar. The ancient "Om Mani Padme Hum" by Buedi Siebert Egyptian pharaohs and priests held copper and zinc "A Drop in the Ocean" by Sultan Khan and Krishna Das cylinders filled with crystals or minerals to tune "Tassoumakan" by Issa Bagayogo into the power of the pyramid and facilitate their "Sound Medicine Man" by Tim Wheater communication with the cosmos. NEXUS BOOKS, VIDEOS, ADS, SUBS...................80–88DECEMBER 2004 – JANUARY 2005 www.nexusmagazine.com NEXUS • 1
  2. 2. EditorialNEXUS MAGAZINE Volume 12, Number 1 DECEMBER 2004 – JANUARY 2005 I have often wondered how the people of Nazi Germany allowed their country to fall under the gradual but hypnotic spell of corporate fascism under Hitler and his Western financial backers. Looking at the USA today, I can see how easily this was achieved. PUBLISHED BY The world is watching in shock and horror as Americans allow their freedoms and any NEXUS Magazine Pty Ltd, ABN 80 003 611 434 shred of international respect to slip away. And we can only expect things to go from bad to EDITOR worse. Voting in these last elections was rigged on a massive scale, but the other story here Duncan M. Roads is that the media and the main "losing party" fear raising the issue of this grand fraud. CO-EDITOR Truly, America has become a nation of fear. The public fears the terrorists (manufactured Catherine Simons by Bushs backers for the very reason of inducing fear), activists and journalists fear the new ASSISTANT EDITOR/SUB-EDITOR gestapo (aka Homeland Security), and the world, in turn, now fears America. The fact that Ruth Parnell the governments of Australia and the UK are supporting the Bush government in its every UK OFFICE ADMINISTRATION aggressive action should be of great concern to us all—but too many of us are too busy to Marcus Allen notice, too apathetic to care or feel too disempowered to think we can change anything. CONTRIBUTORS THIS ISSUE So is there any hope for a future where people of all races and religions can live together Richard Heinberg; Russell Blaylock, MD; in peace and harmony on a clean and fruitful planet? I hear that many of the elite "secret Carolyn Dean, MD, ND, Martin Feldman, MD, societies" have this same goal, as you will read in the article on Cecil Rhodes and the Round Gary Null, PhD, Debora Rasio, MD; Table. I have a problem with people prepared to commit foul deeds for a supposedly noble Will Banyan; Igor Spajic; Valery Uvarov; Carl Agar; James Fauble; Debbie Payne outcome, in that the final result is "tainted" by the foul deeds they commit on the way. In CARTOONS other words, the ends do not justify the means. Think very carefully before you ever choose Phil Somerville to believe that the ends justify the means. It is a catchphrase used by the elite to coerce people COVER GRAPHIC with a conscience into committing unconscionable acts against their fellow humans. John Cook, jscook@ozemail.com.au Still on American gloom and doom, the value of the US dollar started falling just as I PRINTING received an article on this subject by Richard Heinberg, so I decided to run it this issue. The Goodhed Print Group, Bicester, Oxon., UK dollars value is still falling and speculation is rife about its future. If the author is right, well be lucky to have another year of relative economic stability. DISTRIBUTION There are still people out there who believe the lies told by doctors, drug companies and Seymours, London, UK health bureaucrats that vaccines are safe and effective. The article in this issue contains yet UK OFFICE - 55 Queens Rd, East Grinstead, West Sussex, RH19 1BG. more evidence of the incredible array of poisons inside each and every shot given to children Ph: 01342 322854; Fax: 01342 324574 and adults. And while we are on the subject of modern medicine, this issue we conclude the e-mail address: nexus@ukoffice.u-net.com three-part series, "Death by Medicine". You should realise by now that if you are admitted Website: www.nexusmagazine.com to hospital, you have a 50:50 chance of coming out worse than when you were admitted, due to medical mistakes, adverse reactions, unnecessary medical procedures or infections. Six EUROPE OFFICE - PO Box 48, 1600 AA Enkhuizen, The Netherlands. jumbo jets full of people every day—thats how many Americans die from modern medicine Ph: +31 (0)228 324076; Fax: +31 (0)228 312081 every day of the year. And it is getting worse, not just in the USA but all over the med- e-mail address: nexus@fsf.nl icalised world. Maybe someone should tell those terrorists that all they have to do to bring HEAD OFFICE - Articles, Reviews, etc. the evil West to its knees is wait, for we are eating, drinking, breathing and medicating our- PO Box 30, Mapleton, Qld 4560, Australia. selves to death anyway (NEXUS readers aside!). Ph: +61 7 5442 9280; Fax: +61 7 5442 9381 Turning to something completely different, we finally have the second article on the e-mail address: editor@nexusmagazine.com mysterious "Installation" in the "Valley of Death" in remote Siberia. Youll be amazed by this ITALY OFFICE - c/- Avalon Edizioni, Piazza article, and it is definitely a subject to keep an eye on. Its taken nearly a year for the intrepid Mazzini 52, 35137 Padova, Italy Valery Uvarov to assemble this next instalment and have it translated, and there is still more Ph/Fax: +39 (0)49 912 6006 e-mail address: info@nexusitalia.com to come. In essence, the article purports that someone, a very long time ago, constructed an advanced technology installation inside several parts of this planet, with the purpose of USA OFFICE - 2940 E. Colfax, #131, Denver CO 80206 USA protecting Earth from asteroid and meteorite impacts. The article presents little-known Tel: 303 321 5006; Fax: 720 941 9352 evidence that the Tunguska event was the result of the Installation sending out plasma balls E-mail: nexususa@earthlink.net to destroy a heavenly intruder of significant size. STATEMENT OF PURPOSE On another note, our NEXUS Conference in Brisbane in September was a tremendousNEXUS recognises that humanity is undergoing a success. We extended the format to three days, with two evenings of networking and min-massive transformation. With this in mind, NEXUS gling. I would like to thank our speakers for their thought-provoking presentations, ourseeks to provide hard-to-get information so as to readers/attendees for their support, and our sponsors (especially Joshua Shaw of Bionicassist people through these changes. NEXUS is notlinked to any religious, philosophical or political Products), who made the event possible. DVDs of both the Brisbane Conference as well asideology or organisation. the Europe Conference, held in Amsterdam in March 2004, are now available (see Reviews). PERMISSION-TO-REPRODUCE POLICY I would also like to take this opportunity to announce that the next northern hemisphereWhile reproduction and dissemination of the infor- NEXUS Conference will be held in Amsterdam on 13–14–15 May 2005.mation in NEXUS is actively encouraged, anyone And finally, youll be pleased to know that soon youll be able to hear NEXUS subjectscaught making a buck out of it, without our express and contributors on Internet radio at www.RadioOutThere.com. Listen and read on...permission, will be in trouble when we catch them! Duncan WARRANTY AND INDEMNITYAdvertisers upon and by lodging material with the Publisher for publication or authorising or approving of the publication of any material INDEMNIFY thePublisher and its servants and agents against all liability claims or proceedings whatsoever arising from the publication and without limiting the generality of theforegoing to indemnify each of them in relation to defamation, slander of title, breach of copyright, infringement of trademarks or names of publication titles, unfaircompetition or trade practices, royalties or violation of rights or privacy AND WARRANT that the material complies with all relevant laws and regulations and thatits publication will not give rise to any rights against or liabilities in the Publisher, its servants or agents and in particular that nothing therein is capable of beingmisleading or deceptive or otherwise in breach of the Part V of the Trade Practices Act 1974. All expressions of opinion are published on the basis that they arenot to be regarded as expressing the opinion of the Publisher or its servants or agents. Editorial advice is not specific and readers are advised to seek professionalhelp for individual problems. The publisher reserves the right to refuse any advertising material for any reason. © NEXUS New Times 2004–20052 • NEXUS www.nexusmagazine.com DECEMBER 2004 – JANUARY 2005
  3. 3. DECEMBER 2004 – JANUARY 2005 www.nexusmagazine.com NEXUS • 3
  4. 4. Letters to the Editor ...Dr Holts Anti-Cancer Therapy microscopy, Dr Bob Becks pro- (untested, unregistered as medi- contact me at my email address, Hi, Duncan: I have been read- tocols, Dr Hulda Clarks proto- cines, part II poisons under the Phil.Hoyle@ic24.net.ing a bit about Dr Holts cols, Ozone Lab ozone genera- Poisons Act), contravenes the More information can be foundmicrowave treatment for cancer tors, ozonated colonics, chelation, Biomedicine Convention of the at our website, http://uk.geocities.[see Letters, NEXUS 11/06], as I FIR sauna, Grander water system Council of Europe and the com/ufoiru/mutilation.htm.am someone who may benefit hydrotherapy and superfoods European Unions fundamental Many thanks in anticipation.from this treatment. from Brisbane. All are found human rights legislation. Phil, United Kingdom First, the TV story has had a somewhere in NEXUS! This crazy and dangerous prac-huge response. According to the We have developed our own tice of fluoridation must be Mycoplasma Link to CancerDr Holt support group, there were system of using ozone-oxygen stopped. Dear Sir: I found your articlethousands of enquiries after the and ultraviolet light irradiation to Yours sincerely, on mycoplasma as biowarfarestory ran. This shows the need convert cancerous blood into nor- Elizabeth A. McDonagh, agents quite intriguing [see 8/05].for a treatment that is not damag- mal blood patterns within 60 min- BSc(Hons), Doncaster, South Just wanted to pass along that Iing to the body. utes! Yorkshire, UK have a website fully dedicated to Dr Holt spoke to an Australian Malaysia is still a country the connection between cancer,Senate committee in 2000 about where complementary medicine Animal Mutilations Mystery mycoplasma and in vitrothe effects of electromagnetic is accepted and encouraged by a Dear Duncan: For the past five bacteria—all facts that are notradiation on the body. He said government which seems to years I have been working with supported by conventionalthat EMR promotes the growth of realise that this is the way to go, many researchers from around the and health tourism is becoming a medicine (having been lambastedcancer cells. He referred to evi- world to try to unravel the large part of the economy. for nearly a century), althoughdence from Western Australia mystery concerning animal Malaysia is a place where we can scientists are now starting towhich showed that after TV tow- mutilations. still get raw milk from cows, "come around" to the idea. If youers were built, the life expectancy In the course of our research, goats or buffalo! care to visit my site, please do soof people with leukaemia became we have noted that mutilationssignificantly reduced. We have chosen to keep our at http://members.aol.com/ always conform to a repeated set CAbacteria/homepage.html. Ironically, it is a similar princi- operation low key because we of characteristics. An eye and earple that he uses in his treatment. would rather work quietly and Regards, are often missing, flesh from the Ron Falcone, Florida, USA,The cancer cells are prompted to achieve our successes than jaw is stripped off on one sidegrow with the microwaves of 434 become a high-profile target for CAbacteria@aol.com only, bones are cut cleanly with-MHz; then, with the injection of a the pharmaceutical-medical out trace of bone chipping, indi-glucose-like substitute that has machine. cating a saw was not used. The Ancient Culture in Bulgariabeen injected into the patient, the Dr Bernard W. Barber, PhD, tongue is always severed with a Dear Sir: Ill be glad if youcancer cells are deprived of ener- BSc, Kuala Lumpur, Malaysia, vertical cut deep in the throat, the find my articles interesting [seegy (glucose) and then die. telephone +603 2144 4876, fax animals rectum is always cored Twilight Zone 11/06, "Ancient The link for more information +603 2144 2876, drbarber@ out and various internal organs Electrical Device Unearthed inon Dr Holt and his work is integratedbiologics.net are removed. It is normal for Bulgaria"]. I work at a museumhttp://www.drholtsupport.com/. these animals to be subjected to in Bulgaria; my first degree was Regards, The Fluoridation Threat exsanguination, i.e., completely in Art History and my second was Damian D., Melbourne, Vic. Dear Duncan: Thank you very drained of blood. in History, focusing on much for the brilliant article, The phenomenon has been Prehistory.Integrated Medicine vs Cancer "The Absurdities of Fluoridation" reported not just in the USA but In the course of my long-time Hello, Duncan: For the last 18 by Prof. Paul Connett, and for the in other countries around the research work on the proto-months I have been setting up an open letter to the Premier of globe, including Russia, Canada, Neolithic culture that existed dur-Integrated Medical Healing Queensland with so many emi- Puerto Rico, Mexico and parts of ing the 5th millennium BC in theCentre in Kuala Lumpur, nent and knowledgeable signato- Europe. Bulgarian lands, I have comeMalaysia ("integrated" meaning ries [see NEXUS 11/06]. Although victims of the mutila- across many interesting andthe combining of natural reme- The UK is currently threatened tions were generally cattle and unique findings which are authen-dies with medical doctors and with fluoridation as never before. horses, in recent years a wide tic artefacts and have not beenprocedures). Last autumn, the Water Act 2003 variety of animals including publicised up till now. So, reading your articles about was passed by Parliament. Water foxes, rabbits, deer, sheep, pigs, Years ago I found a proto-enzyme therapy, parasites/micro- companies will be obliged in goats, mice, badgers, birds, kan- Neolithic settlement on an area oforganisms and mental issues, can- future to fluoridate when asked to garoos, wombats and even 20 dkr (20,000 square metres).cer, diabetes, bio-oxidation, elec- do so by the health authorities; domestic pets such as cats. The people who lived there weretromedicine, OOBEs, etc., I felt previously they had the right to There are no traces of a strug- the carriers of the most archaicall these articles could have been refuse. gle. Even in snow-covered European civilisation, whichwritten around the foundations of Meanwhile, the medical and ground, there are no tracks or began around the coast of thethis clinic and the 25 years of dental authorities continue to seri- footprints near the carcass. It Black Sea beside the presentexperience leading up to it. ously underestimate the toxicity appears as if the animals are Bulgarian land and disappeared The clinic incorporates a lot of of fluoride. A review published somehow lifted off the ground quite mysteriously about 3,600technology from Australia, e.g., on the National Pure Water and later dumped from the air. BC. The lodgings were burned toJosh Shaws Elanra which we use Associations website shows that If you know of any farmers or destruction and some of thein therapy, computerised iridolo- mass medication without individ- veterinarians who wish to add to ceramics were melted to a glass-gy from Melbourne, live blood ual consent, using silicofluorides or partake of our research, please like substance.4 • NEXUS www.nexusmagazine.com DECEMBER 2004 – JANUARY 2005
  5. 5. ... more Letters to the Editor NB: Please keep letters to approx. 150 to 250 words in length. Ed. I have magnificent pottery with tem. He used them in composi- person you knew is no longer now for some years.exquisitely beautiful geometric tion, as have many architects there. Has anyone else noticed The reason "over unity" cannotdecorations. Ive ascertained that since (your servant included). If this? possibly exist is simply becausethese prehistoric inhabitants had Le Corbusiers architecture is not Yours sincerely, the Universe is at unity, and unityastounding knowledge in micro- modern art, what is? Gloria Prema, Aberdeenshire, cannot be transcended. "Underbiology, anatomy, mathematics, And this is but one example, UK, gloria@the-coppings.fsnet. unity" exists and can be tran-physics, astronomy and construc- because contemporary painters, co.uk scended, but once unity has beention. Ive found many, many sculptors, etc. have made as wide [This is a very timely letter, reached it cannot be exceeded orinteresting things... a use of the Golden Section as Gloria. French researchers have eclipsed. Yours faithfully, have their ancestors. discovered that exposure to Sincerely, and best wishes, Stilian Hristov Yanchev, 5. French mathematician Jean- mobile phones is changing the Robert Adams, New Zealand,Varnensky, Bulgaria, stilcoliny@ Marie Souriau and astrophysicist acetylcholine levels in the body. http://www.aethmogen.comyahoo.com Jean-Pierre Petit recently showed These chemicals are directly that the law of Titus–Bode, which linked to memory. Many people Best NEXUS Conference Yet!The Golden Section Explained establishes a proportional rela- are now forgetting the entire con - Dear Duncan: I have been to Dear Duncan: As you know, I tionship between the distances of versation after using a mobile many marvellous N E X U Stranslate for the French edition of the planets to the Sun, is but an phone. It is a big problem, and Conferences over the years, butNEXUS. I have just finished approximation. Based on recent, we will have an article on this the one in Brisbane just gonetranslating the Letters to the accurate measurements, Souriau subject in our next issue. Ed.] was the best yet. I felt very privi-Editor in NEXUS 11/06 into has shown that the progression of l e g e d to be there and to learnFrench, and I wish to react to orbital distances is, in fact, that of Designing a Better Future about so many astounding things.JoNos letter about the Golden ϕ, the Golden Section! Dear Mr Roads: I have thor- I found myself—literally—on theSection. I entirely share his Greetings from Dordogne. oughly enjoyed your magazine edge of my seat at times, which isenthusiasm for this particular André Dufour (architect, trans- these last few years, as it has rare for me.aspect of geometry, but I am lator for NEXUS France), brought unprecedented informa- The three-day-long formatafraid he is rather ill-informed Cherval, France tion to the public on a wide vari- worked brilliantly and helped meabout certain points. ety of "hot" topics. get over the end-of-conference 1. The ratio 1.618... (ϕ) should Mobile Phones and Memory Loss I am writing, however, to solic- "blues" really well because thebe written with a few dots at the Dear Duncan: Thank you for a it exposure for Future by second day was not the last and Iend because it is an irrational great magazine. Im writing with Design—an organisation dedicat- didnt have the feeling it wasnumber, thus infinite in decimal my concerns over a recent trend ed to bringing to public con- over almost as soon as it hadform. It is the result of the frac- which Ive noticed and wonder if sciousness a vision for a compre- begun.tion (√5+1)/2. As you see, it is a other NEXUS readers have hensive plan of social reclamation I liked the way there was afunction of five. The geometric noticed a similar trend. in which human beings, technolo- "mingling" during the firstconstruction of the Golden Its that people seem to be los- gy and nature can coexist in a evening and I felt a lot of ice gotSection is the basis of the penta- ing their memory and are unable long-term, sustainable state of broken that way, particularlygram, hence Michelangelos to focus concentration on any- dynamic equilibrium. b e t w e e n the speakers and thedrawing. thing longer than for a few sec- Future by Design can be con- attendees. 2. The properties of this ratio onds or minutes. The latter could tacted at: 21 Valley Lane, Venus, I also felt a strong sense of fit-were first developed by the Italian be due to our media culture FL 33960, USA, tel (863) 465 ting in and "belonging" this time.mathematician Fibonacci nowadays, which is based on the 0321, fax (863) 465 1928, email The "NEXUS" part of me is actu-(Leonardo of Pisa) in the 12th two-minute sound bite. fbd@futurebydesign.org, website ally far bigger than I realised, andcentury. He showed that the geo- My main concern, however, is http://www. futurebydesign.org. it was great to be able to chat tometric progression, the multiplier the loss of memory. Ive noticed Best regards, different people about anythingof which is phi (ϕ), possesses a that, amongst people I know well, Marco Scorcelletti, Torrance, for a change. Having ones ideasunique property: each number of a range of ages, the ones who California, USA tolerated by ones friends is notequals the sum of the two preced- are suffering memory loss and the same thing as being able toing ones. unable to pay attention are the "Over Unity" an Impossibility discuss them fully and openly 3. At least 20 years before ones who use their mobile phones Dear Duncan: Greetings from with others.Schwaller de Lubiczs enormous and cordless phones a lot. The Margaret and me to you and all at So NEXUS, thank you, thankwork (three volumes), Matila very worrying thing is, they seem your office. I am emailing you you, thank you for putting it allGhyka published a very thorough to be completely unaware of it. to advise that a rather serious together so beautifully well.study of the Golden Section in his With typical memory loss, peo- error appears in your editorial My kind regards,Le Nombre dOr (ed. Gallimard, ple often recall something when regarding permanent magnet C. W. Lees, Victoria, Australia1931), which is considered to be you remind them; theyve tem- motors. [And thank YOU for attending!the basic reference on the matter. porarily forgotten, in other words. This error pertains to the usage We will be using the new format 4. I entirely disagree with But with the type of memory of the term "over unity". I at all our conferences from nowJoNos denigration of modern art. loss Im talking about, when these would like to point out that there on, including at the upcomingShortly after World War II, people are reminded they have is no such condition, either on NEXUS Conference inFrench architect Le Corbusier absolutely no recall of the event; Earth or in the Universe. "Over Amsterdam on 13–14–15 Maycreated two geometric progres- in other words, it didnt even reg- unity" cannot possibly exist, as I 2005. See our website,sions of measures, based on ϕ, ister at the time. Its like dealing have explained to many people http://www.nexusmagazine.com,which he called the Modulor sys- with an Alzheimers patient: the and have done so in my writings for more information. Ed.]DECEMBER 2004 – JANUARY 2005 www.nexusmagazine.com NEXUS • 5
  6. 6. US$350 MILLION RICO or throat, burning urination, chest LAWSUIT FILED OVER pains, chronic cough, chronic ASPARTAME fatigue, death, depression,A US$350 million class-action lawsuit was filed on 15September 2004 in United States diarrhea, headaches/migraines, hearing loss, heart palpitations, hives (urticaria), hypertension,District Court in San Francisco, impotency and sexual problems,California (case no. C 04 3872). memory loss, menstrual problemsThis racketeering (RICO) law- or changes, nausea or vomiting,suit was filed against the slurring of speech, tremors,NutraSweet Corporation, the tinnitus, vertigo and/or visionAmerican Diabetes Association, loss".Dr Robert H. Moser and others. The lawsuit also states,Plaintiffs maintain that this law- "Further, Aspartame diseasesuit will prove how deadly the mimics symptoms or worsens thechemical sweetener aspartame is following diseases: Fibromyalgia,when consumed by humans. Arthritis, Multiple Sclerosis, Contained in the lawsuit is the Parkinsons Disease, Lupus,key role played by current Diabetes, Epilepsy, AlzheimersSecretary of Defense, Donald Disease, birth defects, ChronicRumsfeld, in helping to get Fatigue Syndrome, Lymphoma,aspartame pushed through the Lyme Disease, Attention DeficitUS Food & Drug Administration (FDA). humans. The National Justice League Disorder (ADD), Panic Disorder,Back in the late 1970s to mid-1980s, filed three other lawsuits on 26 April 2004, Depression and other psychologicalRumsfeld was the President and CEO of in three separate California courts. The disorders".G. D. Searle & Co., which originally defendants in those lawsuits number (Source: News With Views, 16 Septemberowned the patent on aspartame. Plaintiffs twelve, and all produce or use the artificial 2004, www.newswithviews.com/)maintain that Rumsfeld used his political sweetener aspartame as a sugar substitutemuscle to get aspartame approved by the in their products. BIOMETRIC ID SYSTEMSFDA, despite the objections of many FDA This lawsuit charges the defendants with SWEEPING THE WORLDhealth researchers and the negative studies. According to the press release issued onthis RICO lawsuit, "double blind studies being engaged in unlawful acts of "knowingly and intentionally using the neurotoxic Aspartame as a sugar substitute I n Russia, President Vladimir Putin has signed an order for the establishment of an interdepartmental working group to pre-showed conclusive evidence that aspar- in the manufacture of Equal™, while pare the introduction of new-generationtame caused severe health problems and knowing that exposure to Aspartame passport and visa documents.even death to the exposed study group". causes among other diseases/symptoms: The group has been instructed to This isnt the first lawsuit filed alleging abdominal pain, arthritis, asthma, brain develop, before 1 January 2006, athat aspartame is hazardous to the health of cancer, breathing difficulties, burning eyes regulatory and legal framework for the implementation of a state-run system of manufacture, filling out and control of these new-generation documents that will also include biometric information. It has also been ordered to create the financial/economic terms for the develop- ment and introduction of technologies that would meet world standards, as well as for the unification of requirements for individ- ual passport/visa identification documents. (Source: Itar–Tass, 20 September 2004, http://www.itar-tass.com) I n Europe, the Draft Council Regulation on standards for security features and biometrics in passports and travel documents issued by European Union (EU) member states—if not overturned by the Council of Justice and Home Ministers—will mean that every one of the “After unanimous passage through the Congress and Senate, President Bush solved 450 million people with passports in the the problem of getting America out of Iraq by declaring it the 51st state...” EU will have to queue up in "processing6 • NEXUS www.nexusmagazine.com DECEMBER 2004 – JANUARY 2005
  7. 7. ... GL BAL NEWS ...centres" and compulsorily have their in October by the World Wildlife Fund Some 86 per cent of the 2,500 chemicalsfingerprints taken and have a facial scan. (WWF). The chemicals found in the used in large quantities do not haveThe biometric data gathered will be stored European officials include those used in enough safety information publicly avail-on a chip embedded in the new passports. fire-resistant furniture, non-stick pans, able to do a basic safety assessment, Personal details and the biometric data greaseproof pizza boxes, flexible polyvinyl according to WWF.will be held on national databases and on chloride, fragrances and pesticides. The study of the European Union minis-an EU-wide database of European Register "The ministers are all contaminated with ters can be found at http://www.world-for issued passports. The latter will be on industrial chemicals whose effects are wildlife.org/toxics/pubs/badblood.pdf.the Schengen Information System (SIS II) largely unknown," said Karl Wagner, (Source: Environment News Service, 20and will be accessible by law enforcement director of WWFs DetoX Campaign. "It October 2004)agencies. Regulations will be binding in is hard to believe that legislators have beentheir entirety on all 25 member states. willing to allow this uncontrolled experi- THINGS GROW BETTER(Source: Statewatch, 24 October 2004) ment to continue for so many years." WITH COCA-COLA!I n the UK, a Bill on identity cards will introduce the compulsory taking of fin- The 14 environment and health ministers were found to have a total of 55 industrial chemicals in their blood—53 per cent of I ndian farmers have come up with what they think is the "real thing" to keep crops free of bugs. Instead of paying heftygerprints and a facial scan for all new and the 103 chemicals tested. The highest fees to international chemical companiesreplacement passports and driving licences number of chemicals found in any one for patented pesticides, they are reportedlyissued—meaning that these new micro- minister was 45, and the lowest was thirty- spraying their crops with Coca-Cola.chipped cards will also be identity cards. three. Gotu Laxmaiah, a farmer in AndraThe "processing" is expected to start in All the officials tested positive for 25 of Pradesh, is one of hundreds of farmers2006, and is expected to deal with over the same chemicals, including one flame delighted with his new cola spray, whichfive million people a year needing pass- retardant, two pesticides and 22 polychlo- he applied this year to several hectares ofports. It is estimated that after six to 10 rinated biphenyls (PCBs). cotton. "I observed that the pests began toyears, 80% of the population will have an WWF tested ministers from Great die after the soft drink was sprayed on myID card—at which point it will become Britain, Cyprus, the Czech Republic, cotton," he told the Deccan Herald news-compulsory for the rest. Denmark, Estonia, Finland, France, paper.(Source: StateWatch.org, 24 October 2004, Hungary, Italy, Lithuania, Slovakia, Spain It is clearly not Cokes legendaryhttp://tinyurl.com/58at6) and Sweden. "secret" ingredient that is upsetting the The conservation group carried out the bugs. The farmers also swear by Pepsi,I n the USA, all visitors who are not required to have a visa will now be fin-gerprinted and photographed. This even tests in a bid to rally support for tougher European laws on chemical testing and identification, in particular for the draft Thums Up, and other local soft drinks. The properties of Coke have been dis- cussed for years. It has been reported thatapplies to 27 nations which have so far European Union proposal known as it is a fine lavatory cleaner, a good wind-escaped the new security controls—includ- REACH (Registration, Evaluation and screen wipe and an efficient rust-spoting several European nations, Australia, Authorisation of CHemicals), a law that remover.New Zealand and Japan. Immigration could lead to the identification and phasing (Source: The Guardian, 2 November 2004,officials will take a digital photo of each out of the most harmful chemicals. http://www.guardian.co.uk)visitor and inkless prints of both index fin-gers. The data will be cross-referencedagainst "no-fly" lists held by anti-terroristand law enforcement agencies. From October 2005, all passports issuedin the 27 countries on the visa waiverprogram must contain a barcode and adigital photo. By the end of next year, allUS border-crossing officials will becarrying out the new checks.(Source: BBC News, 30 September 2004) CHEMICAL COCKTAIL FOUND IN BLOOD OF EU MINISTERST he blood of ministers from 13 European Union countries has beenfound to be contaminated with dozens ofindustrial chemicals, including some thatwere banned decades ago. The officials have an average of 37industrial chemicals in their blood, accord-ing to tests conducted in June and releasedDECEMBER 2004 – JANUARY 2005 www.nexusmagazine.com NEXUS • 7
  8. 8. ... GL BAL NEWS ... US AIR FORCE RESEARCHING Francisco Chronicle, the Air Force forbade QUADRIPLEGIC CONTROLS ANTIMATTER WEAPONS its employees from publicly discussing the COMPUTER VIA BRAIN CHIPT he US Air Force is quietly spending millions of dollars investigating waysto use antimatter in future weapons. antimatter research program. Still, details on the program appeared in numerous Air Force documents distributed over the A pill-sized brain chip has allowed a quadriplegic man to check email and play computer games using his thoughts. Antimatter has been intensively studied Internet prior to the ban. The device can tap into a hundred neuronsby physicists since the 1930s. In a sense, (Source: San Francisco Chronicle, 4 October at a time, and is the most sophisticated suchmatter and antimatter are the yin and yang 2004, http://tinyurl.com/6lv7r) implant so far tested in humans.of reality: every type of subatomic particle Many paralysed people control comput-has its antimatter counterpart. But when FDA APPROVES VERICHIP FOR ers with their eyes or tongue. But thesematter and antimatter collide, they annihi- HUMAN IMPLANTATION techniques are limited by muscle functionlate each other in an immense burst ofenergy. During the Cold War, the Air Force A pplied Digital and Digital Angel Corporation have announced that VeriChip™, the worlds first implantable and require a lot of training. For over a decade, researchers have been trying to find a way to tap directly into thoughts.funded numerous scientific studies of the radiofrequency identification (RFID) In June 2004, surgeons implanted abasic physics of antimatter with a view to microchip for human use, has been cleared device containing 100 electrodes into thepotential military uses, e.g., antimatter by the US Food and Drug Administration motor cortex of a 24-year-old quadriplegic.bombs small enough to hold in ones hand, for medical uses in the USA. The device, called the BrainGate, wasand antimatter engines for 24/7 surveil- The VeriChip Health Information developed by the company Cyberkinetics,lance aircraft. More cataclysmic possible Microtransponder System consists of an based in Foxborough, Massachusetts.uses include a new generation of super- implantable RFID microtransponder, an Each electrode taps into a neuron in theweapons—either pure antimatter bombs or inserter, a proprietary hand-held scanner patients brain. The BrainGate allowed theantimatter-triggered nuclear weapons; the and a secure database containing the patient to control a computer or televisionformer wouldnt emit radioactive fallout. patient-approved healthcare information. using his mind, even when doing otherAnother possibility is antimatter-powered About the size of a grain of rice, VeriChip things at the same time. The researcherselectromagnetic pulse weapons that could is a subdermal radiofrequency microchip reported that, for example, he could controlfry an enemys electric power grid and that is inserted under the skin in a brief out- his television while talking and moving hiscommunications networks, leaving him lit- patient procedure. head. The team now plans to implanterally in the dark and unable to operate. While the VeriChip cannot be seen by devices into four more patients. On 24 March, Kenneth Edwards, director the human eye, each chip contains a unique Rival teams are building devices to readof the "revolutionary munitions" team at 16-digit verification number that is cap- brain activity without touching neurons.the Munitions Directorate at Eglin Air tured by briefly passing a scanner over the Neural Signals, based in Atlanta, hasForce Base in Florida, was keynote speaker insertion site. The captured 16-digit num- patented a conductive skull screw that sitsat the NASA Institute for Advanced ber links to the database via encrypted outside the brain, just under the skull.Concepts (NIAC) conference in Arlington, Internet access. The previously stored Other researchers are developing non-Virginia. He explained in his speech that information is then conveyed via the invasive technologies, e.g., using anthe energy from colliding positrons and Internet to the registered requesting health- electroencephalogram to read a patientsanti-electrons is "10 billion times...that of care provider. thoughts.high explosive". (Source: VeriChip press release, 13 October (Source: N a t u r e , 13 O c t o b e r 2 0 0 4 , Following an initial inquiry from the San 2004, http://tinyurl.com/3jp5u) http://www.nature.com/news/index.html) DID BUSHS BUDDIES HACK THE US ELECTION? T he underground media in America are united in their belief that the US elec- tion was "stolen", with not just one tactic but several used in the process. • Electronic Voting Machines: The key to it all was the use of electronic voting machines that produce no paper trail. These were manufactured mainly by two companies, ESS and Diebold. Both of these companies are big supporters of the Republican Party and have good connec- tions with the same military/industrial/ intelligence complex backing Bush. A bill introduced in the House and Senate to outlaw these machines and require a paper printout of each vote, so that the votes could be verified and/or8 • NEXUS www.nexusmagazine.com DECEMBER 2004 – JANUARY 2005
  9. 9. ... GL BAL NEWS ...recounted, was stalled by the Republican PENTAGON WOULD ATTACK EU SATELLITES IN WARTIMEParty and not allowed to go the vote. Shortly after the 2 November election,countless stories of problems with the S enior Pentagon officials have warned Brussels that they will not hesitate to blow European Union satellites out of the sky if they are used against America by a hostile power such as China.machines began to surface. In an astonishing confrontation at a private conference between the United Many people who tried to vote for Kerry States and the European Union (EU), European delegates insisted they would notsaid that when the final screen confirma- be prepared to turn off or jam signals from their proposed Galileo navigation satel-tion came up, it said theyd voted for Bush. lites, even if they were being used in a war against the US. In response, the USIn one precinct in Ohio, 4,258 votes weregiven to Bush, where there were only 638 delegates replied that they understood this and intended—if faced with such aregistered voters! threat—to take whatever action they felt appropriate. Many more stories about the black-box Galileo is a joint European Union–European Space Agency initiative for avoting machines, their problems and the global navigation system. A constellation of 30 satellites orbiting the Earth at aninvestigation into their tampering are circu- altitude of 23,300 kilometres, it is scheduled to be fully operational worldwidelating. Blackboxvoting.org is leading the before the end of this decade. Earlier this month, the EU announced that Chinaway in the investigation to prove that the had become a partner in its 3.5 bn (US$4.4 bn, £2.4 bn) Galileo satellite system.results were tampered with. The state of Pentagon thinking on Galileo is confirmed in a US Air Force doc- • Exit Polls: Exit polls were taken in trine document issued on 2 August 2004. In a foreword, Peter Teets, Under-every state. In those states that had verifi- Secretary of the US Air Force, asks: "What will we do 10 years from now whenable paper trails for their ballots, the exit American lives are put at risk because an adversary chooses to leverage the globalpolls were virtually the same as the real positioning system of perhaps the Galileo constellation to attack American forcesresults. However, in the states where elec- with precision?"tronic voting machines were used, the exit The conference, on the "Future of Transatlantic Military Space Relations", waspolls were mysteriously very different from held at Londons Royal United Services Institute, this month [October]. A seniorthe final reported totals. European delegate said: "The Americans were very calm. They made it clear that • Unusual Results: In the areas where they would attempt what they called reversible action, but, if necessary, theycomputers were used to cast votes or tally would use irreversible action." The US would first try unilaterally to jam Galileosthem, some very strange results have sur- signals, but if this failed it would use attack-satellites to destroy one or all of itsfaced. Here is just one example. In BakerCounty, Florida, there are 12,887 registered units in an unprecedented Star Wars–style raid.voters, 69.3% of whom are registered The London meeting also confirmed that the EU and US are well aware ofDemocrats and 24.3% Republicans. The Galileos military potential, a fact until now denied by the UK government. Itvote count was only 2,180 for Kerry and reflects mounting US anger at the EUs decision, formalised this month, to include7,738 for Bush. Are we supposed to China in its space program. Some Pentagon figures are believed to suspect thatbelieve that five out of every seven regis- the EU may even have given China secret assurances that it would never shuttered Democrats voted for Bush? This down the system, giving China a massive boost if it were ever to attack Taiwan—akind of pattern was seen in many Florida key US ally.and Ohio counties. Speakers at the meeting included Robert Dickman, Deputy for Military Space, • Intimidation: In addition to the elec- US Department of Defense; Luc Tytgat, head of the Space Unit, Europeantronic voting machine fraud, there was Commission; Major General Robert Kehler, Director of the National Securitywidespread voter intimidation and disen- Space Office, US Department of Defense; Gerhard Brauer, head of the Securityfranchisement on election day. In many Office, European Space Agency; and Major-General Michael Hamel, CommanderDemocratic areas, people waited hours to 14th Air Force, USAF Space Command. Top UK delegates were also present.vote, while Republicans "challenged" vot- The USAF is working on a new generation of so-called "killer satellites" as parters rights to vote, forcing them to fill out a of a secretive project called the Experimental Satellite Series (XSS). It followsprovisional ballot instead of a real ballot. recommendations contained in the Air Forces 1999 Microsatellite Technology andThe provisional ballots were not counted Requirements Study of a need for the deployment of satellites "to intercept, imageon election day, and we may never know and, if needed, take action against a target satellite". A test satellite, coded XSS-how many of them there were or what ruleswill be used to qualify them. 10, was successfully launched in 2003, and the contract to build its successor, Three Congressmen have sent a letter to XSS-11, with a more specific sensor payload, has already been awarded.the Government Accountability Office, Top Brussels officials are recommending that EU member states should pool allrequesting urgent action and an investiga- space navigation resources, fuse their civilian and military programs and allowtion. Ralph Nader is leading a consumer collective access to them. This plan was discussed on 8 September by theinvestigation into voter fraud countrywide, European Councils political and military strategy group, and it will be debated atand has already filed an official challenge ministerial level by the end of the year. The European Commission recently said:to the voting results in New Hampshire. "Space systems can also provide direct contributions to the Unions Common(Source: from Gary Beckwith, The Solar Bus, Foreign and Security Policy and its European Security and Defence Policy."8 November 2004, http://www.solarbus.org/ (Source: by Allistar Heath and Tracy Boles, The Business [Europes global businessstealyourelection) news], 24 October 2004, http://tinyurl.com/6j44p, http://www.thebusinessonline.com)DECEMBER 2004 – JANUARY 2005 www.nexusmagazine.com NEXUS • 9
  10. 10. 10 • NEXUS www.nexusmagazine.com DECEMBER 2004 – JANUARY 2005
  11. 11. To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude. — Thomas Jefferson A Brief History of Money F or decades, the US dollar has served as the worlds default currency. The phrase The US dollar may "sound as a dollar" has expressed the faith and confidence of generations of not only be due for a Americans but people worldwide. That situation is coming to end, and the conse- quences will be far-reaching. collapse if the In order to understand why this sea change is about to occur, and what is at stake, it is necessary to begin by examining in the briefest terms the history of money, banking and the OPEC oil-producing dollar. Hunter-gatherer societies typically enjoyed a gift economy in which trade and barter nations decide to occurred only with people external to the tribe or band. Everyone within the band was treat- ed as family: whatever was available was shared without expectation of reciprocal exchange. sell oil for euros The story of the rise of social complexity is also the story of the gradual shrivelling of the gift economy and the expansion of the scope of trade—a story that culminates in our situa- instead of dollars, tion today in which the market mediates nearly all categories of transactions between and or if the "mortgage among humans, sometimes even within families. Even many relatively complex societies of the past (such as the ancient Egyptian and Incan bubble" bursts the civilisations) managed to do without money. However, this new tool, wherever it appeared, served to facilitate and accelerate trade. Its effects were predictable; French Historian US economy from Fernand Braudel, writing of Europe in the Middle Ages, described them as "steep variations in prices of essential foodstuffs; incomprehensible relationships in which man no longer within. recognised himself, his customs or his ancient values". The individual caught up in mediae- val Europes monetisation process found, again in Braudels words, that "his work became a commodity, himself a thing". The kinds of money people have used are almost endless; however, in societies that have adopted the widespread use of money, coins made of precious metals long ago became favoured over other options (including shells, beads, cattle and, in China, paper) due to their relative durability, portability and rarity. Since money serves several possible functions—a store of value, a measure of value, a medium of exchange and a standard of deferred payment—in some cases individual societies have used two or more forms of money simultaneously. Monetary history took a decisive turn with the emergence of banking in Europe during the by Richard Heinberg © 2004 Middle Ages. Since travelling traders were frequently robbed of their coins or metal ingots, they took to depositing their metallic currency in the strongboxes of silversmiths and Editor/Publisher, MuseLetter goldsmiths, and carried redeemable receipts instead. Gradually these receipts came to be 1604 Jennings Avenue regarded as being equivalent to the metal itself. This was the first paper money. Santa Rosa, CA 95401, USA Meanwhile, goldsmiths and silversmiths discovered that it was possible to issue receipts Email: rheinberg@museletter.com for metal coins which they did not actually possess—a practice that would eventually give Website: http://www.museletter.com rise to fiat currencies and fractional reserve banking. Fiat currencies did not appear in the West in any significant quantity until the 19th century, from MuseLetter #149, August 2004 when governments and national banks began issuing notes not backed by any precious metal coinage whatever.DECEMBER 2004 – JANUARY 2005 www.nexusmagazine.com NEXUS • 11
  12. 12. Fractional reserve banking emerged at about the same time as a began to redeem greenbacks for gold, which effectively put the USsystem whereby banks were legally permitted to lend more money back on the gold standard until 1933.than they retained in deposits (regardless of whether those deposits In general, the Republicans were married to gold, while Populists,were in the form of gold or fiat money). This process seems myste- Democrats and the "Greenback Party" promoted silver and/or therious and perhaps even a tad unethical to most people when they ini- printing of lots of paper money. They argued that gold had becometially learn of it. However, it has become the foundation of modern concentrated in the hands of the bankers; if money were to get intobanking and currency systems. the hands of "real people", the government would have to issue In effect, when a commercial bank makes a loan, it creates money more fiat or silver-backed paper notes. The monetary question splitfrom nothing. When the loan is repaid and is struck from the books, the nation for decades.that money effectively disappears. Since it has been lent into exis- Clearly, gold as money acts as a barrier to the expansion of credittence, virtually all fiat currency in modern money economies is tied money. This can be both good and bad: it prevents hyperinflation,to debt, which requires the payment of interest. but it can also put a brake on economic activity, leading in the worst The regulation of the money supply therefore depends on some- instances to deflation and depression. In 1896, the conflict came toones ability to set interest rates and thus encourage or discourage a head as Populist William Jennings Bryan ran against pro-goldthe seeking of more loans. Republican William McKinley. Though McKinley won, golds time had passed.Early Life of the US Dollar Following the Depression of 1907, Congress passed the From this point on, we will focus our attention on a particular cur- Owen–Glass Federal Reserve Act of 1913, which established therency: the US dollar. national banking cartel that controls the nations currency to this During the Revolutionary War the provisional authorities issued day. The Federal Reserve (known colloquially as "the Fed") is apaper money, which led to counterfeiting by the British and to vari- peculiar hybrid government–private institution whose chairman isous other forms of fraud. appointed by the US President but whose stock is entirely owned by The 1792 US Coinage Act provided for a national Mint where sil- member banks. In effect, the Fed is a private corporation owned byver dollars were to be produced along the interests that it nominally regulates onwith gold coins, beginning in 1794. The behalf of the people.Act states: "The Dollar or Unit shall be After the Feds establishment, theof the value of a Spanish milled dollar government quickly recalled itsas the same is now current, to wit, three Treasury Notes and the Fed began issu-hundred and seventy-one and one-quar- In effect, when a ing Federal Reserve Notes with ater grains of silver." The Act also pre-scribed the death penalty for anyone commercial bank makes promise to redeem them for gold upon demand. Congress also handed the Feddebasing the national currency. a loan, it creates money control of the nations gold. The Fed The framers of the American then began lending back the gold, atConstitution were divided on the ques- from nothing. interest.tion of whether their new nation should The Feds tools for controlling thehave a national bank. Proponents (who economy are few but powerful. It setswere themselves bankers or future the rules for member banks for fraction-bankers) argued that a national bank al reserve banking (money creation) andwould be necessary for the proper regula- sets the discount rate (the rate of interesttion of a national currency; opponents argued that such an institution charged to member banks for the privilege of creating money).would effectively give a tiny banking elite control of the nations When the federal government wishes to take out a loan to pay for aeconomy. The opponents won: Article I of the US Constitution new bomber or highway, it effectively borrows the money from thegave Congress the power to coin money. Fed (though the debt usually then gets spread around to various However, the proponents of a national bank, led by Alexander domestic and foreign investors), which thus controls not only theHamilton, did not give up. At the time, local banks issued other cur- nations monetary system but government credit as well. The bene-rencies in addition to the fledgling national currency. The nation fits issuing from the flow of insider information that results fromneeded a single currency and a way of financing the government. that control are unknown but surely considerable. The Feds deliber-All of the governments financial needs, said the Hamiltonians, ations occur in secret and the institution has never been audited.should be underwritten by funds borrowed from the national bank Even after the Feds creation, several kinds of currency existedand repaid by the government with funds raised by taxation from the from time to time during the early 20th century, including Unitedpeople. Thomas Jefferson led the opposition. States Notes, Gold Certificates and Silver Certificates. But, from Twice in the 19th century a national bank was established (in about 1965 to the present, virtually all US currency has consisted of1791 and 1817), and twice abolished (the first time in 1811, the Federal Reserve Notes—i.e., money created not by the governmentsecond in 1832, both times on charges that the bank was corrupt and (which merely prints the paper notes themselves, which it sells tounconstitutional). Further attempts were made to establish a the Fed for the cost of printing), but by the Federal Reserve and itsnational bank until the early years of the 20th century, but these member banks.were rejected on constitutional grounds. On March 9, 1933, at the deepest point of the Great Depression, The nations money, controlled by the government, was some- Franklin Roosevelt issued Executive Orders 6073, 6102, 6111 andtimes a fiat paper currency and sometimes backed by gold or silver. 6260, effectively declaring the US bankrupt. On April 5, 1933,Periods of inflation or deflation led to depressions. Private banks Roosevelt declared a National Emergency that made it unlawful forcontinued to issue their own banknotes as currency until the end of any citizen of the United States to own gold, and ordered all goldthe Civil War, during which Lincoln floated millions of dollars in coins, gold bullion and gold certificates turned in to Federal Reservefiat "greenbacks" in order to finance the army. In 1878, Congress banks by May 1 under the threat of fines and imprisonment. On12 • NEXUS www.nexusmagazine.com DECEMBER 2004 – JANUARY 2005
  13. 13. June 5, 1933, Congress enacted a joint resolution outlawing all gold 1973–1999: The Petrodollar Eraclauses in contracts. The members of the US-dominated consensus, while agreeing to Henceforth, for the next 40 years in the US, a dual monetary sys- cooperate, still had their own interests at heart and sought advan-tem would prevail which denied gold redeemability to Americans tages wherever possible. F. William Engdahl, in an essay inwhile retaining it for foreigners. Current Concerns titled "Iraq and the Hidden Euro-Dollar Wars" (http://www.currentconcerns.ch/archive/2003/04/20030409.php),The Dollar Triumphant describes the subsequent unravelling: This brings us to the story of the dollars rise to international "All during the 1960s, Frances de Gaulle began to take...dollarprominence. export earnings and demand gold from the US Federal Reserve, legal Prior to World War II, the British pound sterling came close to under Bretton Woods at that time. By November 1967 the drain ofbeing a globally accepted standard currency, largely as a result of gold from US and Bank of England vaults had become critical. Thethe fact that it was issued by an Empire upon which the Sun never weak link in the Bretton Woods Gold Exchange arrangement wasset. However, neither the Empire nor the British economy survived Britain, the sick man of Europe. The link broke as Sterling wasthe war intact. The US economy, meanwhile, though having been devalued in 1967. That merely accelerated the pressure on the UShammered by the Depression, emerged from World War II more dollar, as French and other central banks increased their call for USrobust than ever. gold in exchange for their dollar reserves. They calculated that, with A postwar economic and geopolitical regime gradually emerged the soaring war deficits from Vietnam, it was only a matter of monthsduring the years 1944 to 1948. Postwar geopolitics would consist of before the United States itself would be forced to devalue againsta long political Cold War (which was also an economic war between gold, so better to get their gold out at a high price."the US and the USSR, itself a major oil producer and goods exporter By May 1971, even the Bank of England was demanding gold forwithin its sphere); meanwhile, the non-Soviet-dominated global dollars, and the drain on US reserves had become intolerable.economy would be shaped in agreements settled on at international Nixon did the only thing he could under the circumstances: hemeetings held in Bretton Woods, New abandoned the Gold Exchange programHampshire. The Bretton Woods meetings of 1944 The Bretton Woods altogether, and in August of that year a system of floating currencies wasled to the establishment of the meetings of 1944 led to instituted. Engdahl again:International Bank of Reconstruction the establishment of the "The break with gold opened the doorand Development (which later became to an entirely new phase of thethe World Bank) and the International International Bank of American Century. In this new phase,Monetary Fund (IMF). control over monetary policy was, in The chief feature of the Bretton Reconstruction and effect, privatized, with large internation-Woods system consisted of the obliga- Development (which later al banks such as Citibank, Chasetion for each country to maintain the Manhattan or Barclays Bank assumingexchange rate of its currency within a became the World Bank) the role that central banks had in a goldfixed range—plus or minus 1%—in and the IMF. system, but entirely without gold.terms of gold. This well suited the Market forces now could determine theUnited States, which at the time happened dollar. And they did with a vengeance."to have the largest gold reserves of any nation. In 1973, with the dollar now floating freely, the Arab nations of The arrangement worked reasonably for all concerned, as long as OPEC embargoed oil exports to the US in retaliation for AmericanAmerica remained the worlds foremost energy producer and goods support for Israel in the Ramadan/Yom Kippur War. By this time itexporter—which permitted it, in turn, to maintain its gold reserves. was clear that US oil production had peaked and was in permanentThe US extended dollar credits by way of the Marshall Plan to decline, and that America would become ever more dependent uponfinance the rebuilding of postwar Europe, while American oil com- petroleum imports. As oil prices soared 400%, the US economypanies (and the Texas Railroad Commission) maintained stable took a nosedive.prices for petroleum globally. The US and Saudi Arabia had formed a cooperative partnership in During this period, US foreign policy and domestic policy were 1945, following meetings between FDR and King Ibn Saud. US oilcharacterised by liberalism: at home, economic inequality was at companies (Exxon, Mobil, Chevron, and Texaco) were already con-the lowest point in modern American history; while abroad, the trolling Saudi discovery and production through a partnership withUnited States maintained minimal trade barriers between itself and the Kingdom, the Saudi Arabian Oil Company (Aramco). In 1973,Western Europe, Japan and South Korea. It could easily afford to the Saudi government increased its partners share in the company toabsorb exports from these nations in return for their commitment of 25%, and then 60% the next year. In 1980, the Saudi governmentsupport for the duration of the Cold War. retroactively gained full ownership of Aramco with financial effect The US exercised leadership by consensus—again, because it as of 1976.could easily afford to do so. This consensus evolved through both In 1975, the Saudis agreed to export their oil for US dollars exclu-GATT trade negotiations and geostrategic Bilderberg meetings, in sively. Soon OPEC as a whole adopted the rule. As a result, thewhich the main Western powers conspired to effectively control the dollar was backed not by gold but in effect by oil. Had the US per-economies and political destinies of most of the rest of the worlds mitted the Saudis to nationalise their oil industry in return for thisnations. extraordinary favour? Because the Saudi royal family and the oil However, this first relatively benign phase of what Henry Luce companies are all notoriously tight-lipped, we may never know.called "the American Century" came to an end as a result of the con- In any case, the oil shock created enormously increased demandfluence of three factors: the decline of US oil production, spiralling for the floating dollar. Oil importing countries, including Germanynational debt brought on by the Vietnam War, and increasing and Japan, were faced with the problem of how to earn or borrowEuropean and Japanese economic strength. dollars with which to pay their ballooning fuel bills. Meanwhile,DECEMBER 2004 – JANUARY 2005 www.nexusmagazine.com NEXUS • 13

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