Broken Promises

15 Mar

[courtesy Google Images]

[courtesy Google Images]

According to Reuters (“Crimea Votes To Join Russia, Accelerating Ukraine Crisis”):

“The EU summit in Brussels seemed unlikely to adopt more than symbolic measures [against Russia] . . . .  The European Commission has announced an aid package of up to 11 billion euros ($15 billion) for Ukraine over the next couple of years provided it reaches a deal with the International Monetary Fund, entailing painful reforms like ending gas subsidies.”


The Russian’s will take Crimea by implied force and the West will take the western Ukraine by monetary subjugation. The eastern Ukraine’s fate remains to be discovered.  Either way, the former Ukraine will lose some or all of its former sovereignty.

The major powers of the world have allegedly promised to “help” the Ukraine, but no one will truly help the Ukrainians remain independent or sovereign.  Instead, the big predators will carve up the Ukraine like a dead water buffalo.


“France has a deal to sell warships to Russia that it is so far not prepared to cancel, London’s banks have profited from facilitating Russian investment, and German companies have $22 billion invested in Russia.”


Those facts indicate that while right and wrong may be noble concepts, when it comes to geopolitics an in general and the Ukraine in particular, it’s all about the money.  Insofar as France, England and Germany are making more money off their relationship to Russia than they are off their relationship to the Ukraine, they will not impose any serious sanctions against Russia.

•  Last week, Mish Shedlock reported in his Global Economic Trend Analysis that Russian President Putin had said,

 “The tense situation in the Crimea, associated with the possible use of the armed forces, just dissipated, the need for that did not arise. The only thing which was necessary, and which we did, was to strengthen the protection of our military installations . . . Therefore I believe that it will not be necessary for us to do anything like that in eastern Ukraine.”

Translation?  The “war” in the Ukraine is about over.

Russia has annexed the Crimea and will hold it.

Russia won’t go further into the Eastern Ukraine—at least, not for now.

Six months from now, a year from now, maybe two years from now, Russia will take the Eastern Ukraine and once again, the world will do nothing but wring its hands.

Putin got away with “half a loaf” today.  He’ll take the other half, tomorrow.

•  The Israeli newspaper Arutz Sheva which published in article entitled “Ukraine’s Lesson for Israel: ‘US Guarantee Worthless”:


“Ex-Member of the Knesset Aryeh Eldad notes that in 1991, the US and Britain guaranteed Ukraine’s security in exchange for nuclear disarming.”

But as we can see, the US and UK promises of 20 years ago are no longer worth as much as they were then.  The Ukraine, relying on US and UK protection against Russia, gave up its nuclear arsenal in the 1990s.  However, Ukraine now finds itself unarmed in a face-off with Russia (which has the world’s largest arsenal of nuclear weapons) and unprotected by the US/UK.

Result?  The Ukraine is out-gunned and can therefore kiss the Crimea goodbye.

The Arutz Sheva article continues:

“The lesson for Israel from Ukraine’s current plight, according to ex-Member of the Knesset Aryeh Eldad, is that Western guarantees of Israel’s security must never be trusted.

But that’s not exactly true.

That lesson isn’t a result of the “Ukraine’s current plight”—it’s the result of the US government’s financial plight.  Our government is insolvent and can’t afford to keep the treaty promises it made to the Ukraine.

On the face of it, our inability to make good on treaty obligations to Ukraine may not seem so important.  However, our government’s inability to keep its treaty promises in the Ukraine implies that it might also be unable to afford to keep its treaty promises made to Israel or Japan.

If our government fails to honor treaty obligations to the Ukraine, we can reasonably suppose that some middle-eastern countries will be encouraged to step up their attacks against Israel.  Likewise, we have to believe that China will view the US failure to back the Ukraine as evidence that the US might also fail to fully perform its treaty obligations to defend Japan.   China must be at least slightly encouraged to step up pressure on Japan over the Senkaku islands.

The drama in the Ukraine will ultimately affect geopolitics far beyond the Ukraine, itself.

Given its financial plight, the US government may not only be unable to keep all of its treaty promises to foreign countries.   It may also be unable to keep its retirement promises to So-So Security beneficiaries, pension promises to former government employees, promises to repay the National Debt, or even the implied promises to maintain some fairly stable value of the fiat dollar.

Because our government is broke, a lot of promises made in the past will go unkept.

Our government’s abandonment of the Ukraine is simply one concrete instance of many such broken promises that may be headed our way.

•  If foreign nations conclude that some or many of the treaty promises made by the formerly mighty U.S. government can’t be kept, those nations will stop relying on the bankrupt US government and start seeking security from other sources like Russia and China that are not insolvent.

It may seem odd, but a primary casualty of the Russian annexation of the Crimea could be the fiat dollar’s status as World Reserve Currency.  Insofar as the foreign public and foreign governments lose confidence in America’s military power and ability to keep former treaty promises, foreign confidence in the fiat dollar will also wane.  As foreign public confidence in the dollar wanes, the dollar’s status as World Reserve Currency will also wane, and the fiat dollar’s purchasing power will decline.

I doubt that the loss of confidence reflected in the Arutz Sheva article will be critical.  But I also doubt that such confidence, once lost, will be easily regained.  If so, our Ukrainian adventure may result in a small but permanent devaluation of the dollar.  Similar future instances of government’s inability to keep its promises will also tend to devalue the dollar.  Each individual devaluation, each individual broken promise, may be small–but their effects will be cumulative.

If government can’t keep its promises, the public won’t maintain their confidence in the government, the economy or the fiat currency.  Without public confidence, the entire con-game will collapse.

Got gold?


Posted by on March 15, 2014 in Fiat Currency, Lies, Values


Tags: , , ,

12 responses to “Broken Promises

  1. John Bruder

    March 15, 2014 at 10:53 AM


  2. Sapone

    March 15, 2014 at 10:57 AM

    Russia has had naval forces and a base in Crimea for decades, if not centuries. If Crimea was ceded to Ukraine at sometime in the past, I imagine that agreements were made to guarantee Russian access to its base in Crimea and that staffing levels are also maintained. Despite depictions by mainstream media to the contrary, the Russians appear to be working within restrictions already in effect. I would not trust the U.S. federal government or the mainstream media any farther than I could throw a 1950s-vintage teletype machine. Whatever the truth of the situation may be, the American people will not learn of it by customary means.

    • John Bruder

      March 15, 2014 at 11:01 AM

      Think your absolutely right….so does Ron Paul.

  3. Adrian

    March 15, 2014 at 12:31 PM

    Ukrane should stay out of EU,Globalism.
    Crimea belongs to Russia.
    Those two countries should forge an alliance against Globalism.

  4. Toland

    March 15, 2014 at 4:15 PM

    That’s what happens when a country’s people let a lawless gang co-opt their government: the country goes to pieces. We’re watching this happen in the Ukraine. And it’s well underway in the United States, too.

    The new lawless government of the Ukraine just handed over the eastern (Russian speaking) regions to that country’s billionaire oligarchs to administer (read: subdue and privatize). Watch something similar happen in America, if we let it.

    A well informed article by Paul Craig Roberts, member of the genuine alternative media:

  5. jamesnicholas2047

    March 15, 2014 at 5:17 PM

    The U.S. Government with its ever increasing list of broken promises. From my position as a Chalkboard Theoretician of U.S. Self-aggrandizement (Phew, what a job) when/as further deterioration continues — watch when the influential politically connected begin to eat their young, among their own caste. The Best Horror Movie to watch for free. Just bring your own mop…or maybe a WetVac.

  6. Jethro!

    March 15, 2014 at 6:43 PM

    One minor correction (as made clear to me by my Ukrainian sis) — it’s “Ukraine”, not “the Ukraine”. “The Ukraine” implies a region, like “the Alps”, instead of an independent country. And during its time as a satellite of the U.S.S.R., the Russians called it “the Ukraine” as if it were a region of their country, which is why Ukrainians bristle at its usage now. So just “Ukraine” is correct.

    Carry on.

    • J.M.

      March 15, 2014 at 11:58 PM

      @ Carry on.

      Who are you giving permission to, “carry on?” I need to know, in case I want to make a comment. I will know by your answer as to whether or not I am one who can carry on. Ohhhh that’s right, you are another one who only make comments & NEVER answer questions about your comments.

  7. MPK

    March 15, 2014 at 10:07 PM

    Ukraine is just a diversion to create chaos within nations. The United Nations also known as the “United Nuts, of the power elites, but unfortunately with the power to destroy, punish, and create chaos in any nation on earth” Russia or the west both sides are of the same coin, called corruption it just depends which one you choose to be corrupted by.

    One must learn you can’t teach an ignorant man truth when everyone else is ignorant also and wishes to remain so. Its where most lack the intelligence to be able to gain wisdom and then are able to understand, 99.9999999% of the all the population’s of the nations, are lacking and will remain that way until the truth slaps them in the face, then its too late. That’s why man are like sheep without the Shepard to protect them, and why wolves occupied the seats of power.

    If the people of the Ukraine knew the truth they would reject both Russia and the west and become independent of all, but the ignorance of the uneducated always wins out. Man is a great creator of hell on earth to the poor, the sick,

    One must understand there are criminals at the top of the food chain and they are well educated to pull the wool over the eyes of the majority of the people who are basically made and kept ignorant of the truth how and who runs the world and what the final outcome will be for all.

    Lets all read what the elites have in stall for all of you’ even you in Ukraine.

    People will do nothing to save themselves or others, the young are dumb down by technology without guidance, the old who have been and remain ignorant are as useless as an old dish rag retied to the bin without any wisdom what so ever to give back to the future generation, and they suck at the milk of life as they are now once more like demanding babies of their next generation, they have becoming like leeches on the back of society that can no longer sustain a retired older useless generation.

    “”A future NWO world, by the United Nations steps towards a sustainable earth and on towards a utopian world made by Man and the Gods of this world.

    Under A NWO a culling must come of the useless, the old, the mental, the criminal, and the lame. One must be responsible to the NWO and to each other, and one must always pay to live, if not’ then death must take them, and the governments of the world must take the responsibility to cull for the continued survival of mankind, and to allow peace and safety in a NWO to win this major war now effecting all nations.

    Its the responsibility of the many to sacrifice them selves for the few elites’ who’ like Gods’ are on earth are engaged in funding and directing the biological research in the term “Holy Grail”, for within the DNA of man which was made by a GOD long ago and now for the search to regain that immortality that was denied man, and was forced to become mortal like the animals around him.

    This gift of immortality will only be given to the few who become the best in their fields as an everlasting reward of their services, and is for all to strive for in a utopia world that we the elites are striving to create for all of humanity.””

    How can anyone own a man and make him do what you want? offer him immortally, and he will be your slave forever. The elites have been bought by the promise of immortally to become immortal if they obey. Research in the DNA is showing immortally does exist, and can, and will be obtained. Of course its all for a very few, and why many will even kill for it and will kill the many for the few.

    This is the truth and the reality of what is going on and why change is happening now in the world, the future has already arrived and its in full swing.

    Truth mixed with lies’ the same as Hitler did use now used again but on a world wide campaign of chaos and destruction, for without it a change can not come and a NWO can not take the final total control over all nations, people, and their belief systems.

    Remember this’ there is no hell, but to what men of power makes for others to live in and judge the weak for a life of misery and then condemned them to death by any means be it natural or at the hands of the power they have been given to rule over, by the many of total ignorance to the truth that none wish to hear. The UN has been doing this for over 60 years of its existence and it acts in the same way as the Vatican did and does still today, two of the most corrupted man made systems on earth one that long ago came up from the sea and the other in the 20th century the UN from the earth.


  8. Ritchard

    March 16, 2014 at 8:42 PM

    How can anyone figure out what is really going on in the Ukraine? There is so much disinformation, information suppression, and lies thanks to the controlled mass medias. Who can take sides and know who is on moral ground? The way I see it, certainly is not America by backing the rebels. The Ukraine destabilization looks like Syria, Libya, Egypt, all over again with the accompanied bloodshed, gold reserves being held for safe keeping, newly installed US friendly government officials, and finally IMF loans to rebuild and fund US mandates with interest of course. It looks like Russia might hold the moral high ground being most Ukrainians identify with and speak Russian, and economically, Russia’s energy pipe lines interlace the country. Why would Ukraine want to ally with the failing EU? I am afraid control of the Ukraine will go to the city of London Zionist bankers through shills placed there by US covert intervention and bribery.
    Although, the whole thing could be a charade with the whole cast of characters involved including Russia, much like the charades we experience like the Boston bombing and school shootings. Sapone said it best in an earlier post,” Whatever the truth of the situation be, the American people will not learn of it through customary means.”

  9. Sam Kadasky

    March 16, 2014 at 10:20 PM

    A classic book about, and blueprint for, the anti-Russian geopolitical strategy of the NWO was published in the 1990s by a famous Washington insider.


    The Grand Chessboard: American Primacy and Its Geostrategic Imperatives is one of the major works of Zbigniew Brzezinski. Brzezinski graduated with a PhD from Harvard University in 1953 and became Professor of American Foreign Policy at Johns Hopkins University before becoming the United States National Security Advisor during 1977-1981 under the administration of President Jimmy Carter.

    Regarding the landmass of Eurasia as the center of global power, Brzezinski sets out to formulate a Eurasian geostrategy for the United States. In particular, he writes, it is imperative that no Eurasian challenger should emerge capable of dominating Eurasia and thus also of challenging America’s global pre-eminence.

    (end of quote)


    One of the reasons Russia is getting away with so much in the Ukraine is that the Kremlin has publicly threatened to sell off their US dollar-denominated reserves and thus implode the dollar, if economic sanctions are imposed on Russia.

    • J.M.

      March 18, 2014 at 2:43 PM

      Sam Kadasky
      @ >March 16, 2014 at 10:20 PM

      Spot on message.


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