La Conserva de Jose

by Jaime O. Perez

Bienvenidos a LA CONSERVA DE JOSE. Este programa esta dedicado a informar sobre la mejor manera de prepararse para una eventualidad dificil social o economica.

Welcome to LA CONSERVA DE JOSE. This program is dedicated to informing the general public how to prepare for a major economic contraction.


Feb 2. INTRO – Preparacion para Desplome Economico –
Prepare for Economic Contraction
3. SALUD – Capitulo 1 – AGUA
Health – Chapter 1 – WATER
4. SOCIAL – Capitulo 1 – Pague Deudas Pequenas, Luego Grandes
Social – Chapter 1 – Pay Debts from Smallest to Largest
5. SALUD – Capitulo 2 – PRIMEROS AUXILIOS -Antibioticos, Recetas, Pomadas Arnica, Vitacilina etc.
Health – Chapter 2 – First Aid Kit
6. SOCIAL – Capitulo 2 – Compre al Contado
Social – Chapter 2 – Reject Use of Credit

Feb 9. FAMILIA – Capitulo 1 – Bebes y Ancianos – Teteras/Leche Polvo/Lata, Panales, Baby Wipes
Family – Chapter 1 – Babies and Infirm – Bottles et al.
10. SOCIAL – Capitulo 3 – No Use Bancos para guardar Dinero
Social – Chapter 3 – Get your money out of banks
11. PERSONAL – Capitulo 1 – Caridad
Personal – Chapter 1 – Compassion and Charity
12. SOCIAL – Capitulo 4 – Corto Plazo/Dolares $1/5/10
Social – Chapter 4 – Hold dollars at Home
13. EDUCACION – Capitulo 1 – Ensenanza Familiar
Education – Chapter 1 – Family Values

Feb. 16. SALUD – Capitulo 3 – Miel, Cacahuate, Galleta, Te
Health – Chapter 3 – Honey, Peanut Butter, Crackers, Tea
17. SOCIAL – Capitulo 5 – Mediano Plazo – Onzas de Plata Libertad
Social – Chapter 5 – Medium Term – Ounces – Silver Eagles
18. EDUCACION – Capitulo 2 – Aprenda Hablar Ingles
Eduction – Chapter 2 – Learn English
19. TRABAJO – Capitulo 1 – Gasolina, Aciete, Fluidos para Automovil
Work – Chapter 1 – Auto, gas, fluids
20. SOCIAL – Capitulo 6 – Bienes Reales
Social – Chapter 6 – Real Estate

Feb 23. SOCIAL – Capitulo 7 – Tradiciones, Ritos y Costumbres
Social – Chapter 7 – Traditions, Rituals and Customs
Feb. 24 – SOCIAL – Capitulo 8 – Fianzas y Carcel
Social – Chapter 8 – Bonds and Jail
Feb. 25 – SALUD – Capitulo 4 – Atun, Sopas, Jugo de Limon
Health – Chapter 4 – Tuna, Soups, Lemon Juice
Feb. 26 – SALUD – Capitulo 5 – Higiene y Jabones
Health – Chapter 5 – Higiene, Soaps and Bleach
Feb 27 EDUCACION – Capitulo 3 – Hacer Cuentas
Education – Chapter 3 – Learn Math

Mar 2. FAMILIA – Capitulo 2 – Familia y Dinamica de Grupo
Family – Chapter 2 – Family and Group Dynamics
3. FAMILIA – Capitulo 3 – La Mujer – Cosmeticos, Higiene Femina, Talcos, Cremas
Family – Chapter 3 – Female Sensitivities
4. SALUD – Capitulo 7 – Chocolates, Mieles, Jaleas, Dulces (Ninos)
Health – Chapter 7 – Chocolate, Candy
5. SALUD – Capitulo 8 – Acietes/Vinagre/Bicarbonato
Health – Chapter 8 – Oil, Vinegar, Baking Soda
6. SALUD – Capitulo 9 – AGRIGO GENERAL – Tenis/Bota/Zapato, Cambios de Ropa/Sueter/Boina
Health – Chapter 9 – Comfort Clothing

Mar 9. ABRIGO FAMILIAR – Sarapes, Colchas, Sleeping Bag, Impermeables
10. VALOR MATERIAL – Tabaco, Cafe, Azucar/Dietetica/Licor/Chocolates/Dulces
11. DEFENSA FAMILIAR – Machete/Armas/Balas/Punal
12. EQUIPO – Velas/Cerillo Grande/Encendedores/Linterna/Baterias
13. ESPECIALIDAD – Ninos Escolares/Papel y Lapiz/Pluma

Mar 16. COMUNICACION SOCIAL – Radio/Baterias, Instrumentos Musicales
17. TRANSPORTE – Bicycle, Motocicleta/Gasolina 5 galones
18. LUZ Y CLARIDAD – Luces/Extensiones
19. AUTOAYUDA- Drill/Saw/Calenton
20. VALOR COMUNITARIO – Grupos Barrio/Centro de Reuniones/Iglesia

Mar 23. RESERVA ENERGETICA – Generador
24. MICRORANCHERIA – Pollo/Conejo/Pescado Carpa/Siluro/Tilapia/Trucha
25. MICROHORTALIZA – Sembrar arbol frutales/Plantas Alimenticias/Especias
26. EQUIPO PEQUENO- Marro/Martillo/Wrench/Nails/Screws/Caja de Herramientos
27. COCINA DE CAMPO – Estufa – 1 litro/5galon propano,

Mar 30. COCINA FAMILIAR – Olla Grande/Chica/Platos/Bolsitas de Plastico/Cubiertos,
31. PRIMEROS AUXILIOS Atomizadores – Alejar o Matar Moscos/Bichos/Aranas etc.
Apr 1.

Monetarchy Seeks Conflation Solution

The massive deflation of the money supply (M2) being experienced in the US was met with an inflation policy by the Federal Reserve in the amount of $40 billion USD per month and ongoing purchases of valueless derivatives styled toxic assets from bank balance sheets on to its own on the order of $45 billion USD per month styled QEoo (Quantitative Easing ad infinitum).

At the same time, the Monetarchy’s principal bank, the Federal Reserve, coordinated a simultaneous inflationary policy from all world central banks. The idea behind the coordinated devaluation of national currencies is that the value of current sovereign and bank debts can be adjusted and managed without unduly increasing the supply of money (M1) onto the hands of citizen-consumers. Too much retail (citizen/consumer) inflation would create dislocations and misallocations that could threaten confidence in the system and potentially lead to street violence in the US as experienced in Spain, Greece et al.

The question is whether this conflation strategy, that is, the simultaneous pumping of liquidity by the Federal Reserve and other world central banks to meet the simultaneous deflation (contraction) of the money supply will succeed in its dual goals: the propping up of the global economic GDP and the gradual adjustment of inter-sovereign and inter-bank debt.

In other words, the Monetarchy’s current nominal leader, Ben Bernanke considers that eliminating zeros from the massive global debt through inflation and controlling the supply of money through the digital manipulation of the world’s reserve currency (the USD) by the Federal Reserve may buy sufficient time (on the order of three years) to allow the clearing out of housing, housing derivatives and other bubbles created by international speculation at the hands of world banks and private algorithmic traders.

A failure of confidence in the system or a regional war pose the only significant threats to this strategic thinking.

For example, a large movement of investment to precious metals would engender a loss of confidence in the stock market and provoke a swift and unstoppable downward movement. Such a movement might be provoked by the reality of a contracting world economy.

Moreover, a regional conflict, such as a potential one between Israel and Iran, would provoke a meteoric rise in the price of oil. Such an occurrence would also unravel the strategy. This is the primary reason President Obama is doing all he can to delay any potential military action against Iran.

Behind the scenes, therefore, the Monetarchy is working hard to replace traditional politicians with technocrats (Romney) that understand the importance of the current conflationary policy and will bring Sovereigns in line with fiscal reforms intended to appease the investment bankers and algorithmic traders.

It is clear the Monetarchy has nodded its preference for Mitt Romney in the US Presidential election because he can more effectively control Bibi Netanyahu and any rearing up of violence on American streets. Hundreds of US cities are passing population control ordinances and increasing public spending in line with Federal Reserve requests to banks to support inflationary spending under the guise of supporting jobs and recovery.
Nonetheless, the Monetarchy is satisfied to continue to work with President Obama who has supported its conflationary policy 100 percent.

The reality is that the nominal head of the US government has little room to maneuver within the context of the consolidation of the Monetarchy’s strategic fiscal policies and political consolidation.

Release of the Kraken

The world’s Monetarch, Ben Bernanke, ordered the release of the fiat currency Kraken against the underperforming economy. Calculating a temporary boost to his nominal sponsor, President Barack Obama, and a decisive boost to the stock market, the Monetarch has consolidated the global central banks into a powerful inflationary force.

The outcome will, more than likely, result in a consolidated fiat currency. Bankers and traders on wall street and the major world exchanges have responded with great enthusiasm and the stock market is rising dramatically.

The decision to adopt quantitative easing ad infinitum (QEoo) will result in a prolonged devaluation of the US dollar. Many commentators believe the fact the dollar is the reserve currency will ensure it will survive a gradual and massive devaluation over time. In addition, the enlistment of the world’s printing presses in the Eurozone, Japan and China to the inflationary effort will help to collectively manage the global debt to GDP imbalance.

The intervention by the Federal Reserve is so gargantuan there remains no question the tactic is intended to cement the strategic consolidation of the Global Monetarchy by forcing the birth of a negotiated and single global currency.

There is, however, still one very important impediment to fiscal consolidation: Gold and Silver. The disparate allocation of precious metals viz. nominal nation-states and private sector agents is a threat for two of the most important players – the US and UK. Therefore, there is furious behind the scene negotiation to create a reasonably equitable allocation of the planned global currency. This may or may not include a return to a gold standard which is why so many are turning to silver. Silver has an industrial use and, as such, has a highly manipulable character that makes it ideal as the precious metal of choice and value standard for the Monetarchy.

The US can now look forward to hyperinflation. This is necessary as a strategic goal by the Monetarchy in order to gain political support for a unified global currency. It will be sold to the public as a creation of the Federal Reserve to “save” the economy rather than a currency of the US government.

In addition, look to massive public works spending by the next US administration as the public sector (federal, state and local) seeks relentless to reinflate the economy. The public works policy will ensure support by a shrinking labor force and local banking and development interests.

Economy Looks Up, Economy Looks Down

It is fascinating to watch MSNBC and others at work pumping up what is happening on the stock and world markets.

If you don’t follow the financial and political institutional players, allow me to provide a synopsis.

According to financial media and large financial conglomerate (Goldman Sachs, JP Morgan et al.) spokesmen, the economy, as of August 2012, is improving. There is some jobs growth, high corporate earnings reports, a rising stock market, sideways movement of precious metals that promise to go lower while the bond market continues to be attractive to world investors. The lesson to be gleaned from the downturn in precious metals is to encourage investors to move to equities. Moreover, the dollar is getting stronger relative to other currencies.

The Federal Reserve Governors, Ben Bernanke and new potential Governors continue to broadcast they are committed to Quantitative Easing until such time as economic growth can sustain itself. China and Asia, the Eurozone and North and South American countries –all are working on stimulus strategies to maintain economic momentum. Expect the reelection of the current President in November.

If you follow the Austrian and Post-Keynesian analysts such as Peter Schiff, Max Keiser, Marc Faber etc, you get a different view.

According to them and others listed in the links attached to this website, both the US and the world economy are worsening dramatically. The Federal Reserve and large financial groups are artificially maintaining the stock market to give the illusion of improvement in order to prop up the current leaders of sovereign governments who favor current inflationary policies. In their view, now is the time to get out of the bond market and into precious metals. The volume, of videos relative to privacy and free speech violations by sovereign governments as well as ‘prepper’ videos portending imminent economic collapse, is increasing. Most expect a dramatic downturn in December and early 2013.

Who is right? They both are.

I suspect that in September 2012, the Federal Reserve will probably continue its “twist” and a small QE program to keep the fiction of a recovering economy going to year end. But, it will not be so dramatic in order to provide cover for the President. Nor will anything happen in October. It won’t be until after the election that a new massive QE policy will be unleashed under the (discredited) theory that a massive injection of liquidity (paper money) will jump start the economy. The rich will get massively richer and the poor massively poorer. Interestingly, the Federal Reserve time horizon for this inflationary strategy is 5 to 6 years. In the interim, expect a slowdown of the world economy, an increasing unemployment in the US and the first signs of real poverty and hunger among the lower 20 percent of the American population in rural areas and small cities. Medium and large cities will devolve into increasing violence (crime) and inconsistent delivery of energy and services.

Of course, the backdrop to this scenario requires something that muzzles the public from strident criticism of their respective sovereign governments. Expect increased tensions and military action against Syrian and Iranian regimes.

Why No Crash?

Many of my readers have asked why the economy, or the dollar, has not crashed yet as expected and predicted by post-keynesians and non-keynesians.

The reason is that Bernanke, Geithner, Christine Legarde and other world banking and finance leaders will continue to push money printing as the only option to maintaining the economy afloat. They believe they can manage the deflation occurring across the globe and then gradually inflate the economy to promote, at minimum, meager growth.

How long can this last?

I have written previously that I expected sideways movement in the economy with a sharp possibility of a major downturn near the end of this year. In fact, I have advised the acquisition of physical silver and gold and a beefing up of home pantries.

Interestingly, Steve Keen, who has argued the situation is untenable, admitted the process can continue for some time. He seemed shocked, for example, that England has such a high private and public debt burden and has not experienced a crash in the economy.

As I have written before, most analyses do not take into account the lower 20 percent of the US workforce which has now achieved chronically unemployed status. The current US administration has tried to manage this by increasing food stamps, disability status and unemployment benefits. At the same time, the Obama administration has increased the power of government to manage “crises” by eliminating habeas corpus and, more recently, by issuing an executive order to control the internet in case of emergency. This is a classic case of hope for the best and prepare for the worst.

I believe we are 6 months away from a major crisis that may unleash unexpected convulsions around the country and the world. Yet, I believe it is likely the lower strata and the elderly will feel it more while things will remain seemingly calm on the surface. In my view, it is not surprising depression and suicide has jumped among those over 65.

Ironically, the banks and the bankers are flush with cash but the thinking among Bernanke and friends is that bankers should get the cash instead of people because they will loan it out to businesses. I have yet to hear how they intend to generate demand from people for the products those businesses will produce. Trickle down economics is alive and well.

In the meantime, I am eating squash and cucumbers and tomatoes and peas from my garden as well as eggs from my chickens. You may want to consider such a lifestyle as we move into the Greatest Depression circa 2012-2013.

Halftime at QE headquarters

The general malaise of the stock markets around the world and the inexorable slowdown of economic growth in China and Europe have brought the world to the brink of financial disaster.

Yet, Ben Bernanke and his allies around the world firmly believe that with enough monetary inflation, it is possible to deleverage private and sovereign debt in a manageable fashion. They are convinced they can manage the deleveraging such that retail hyperinflation does not occur. Post-keynesians don’t believe this is possible.

One commentator asked whether the economic system can simply be reset by eliminating zeros from the fiat currency as happened in Mexico and Argentina. Is it possible? It certainly is, however, it poses a severe risk to the bottom 20 percent of the population that would have to absorb the loss of wealth.

Another analyst asked if there is anything President Obama could do to help the system recover. There are three things he could do, none of which he will do. Cut spending, raise taxes and establish a new currency outside the control of the Federal Reserve.

Unfortunately, Mitt Romney will similarly refrain from doing what is necessary. Most current analysts are predicting lower unemployment and a sluggish recovery in 2013 regardless of who is President. The underlying support of the system by the Federal Reserve lends support to this idea.
However, it is more likely the fourth quarter of this year will see massive QE from the Federal Reserve. As I suggested in my article in December 2011, if QE3 goes public, Obama goes down.

The reason is simple, QE3 will be an admission by the Federal Reserve that artificial support of the banking system has not, is not and will not work.

Expect talk about a new currency system, a sharply correcting stock market and continued financial stress among the middle and lower income strata of Americans.

The time has come for last minute stocking of emergency food pantries and safeguarding your money away from the banking system. Don’t be caught flatfooted. By the time the panic sets in, you may lose your bank deposits. If you have any kind of flexibility, you are well-advised to acquire silver ounces such as the American Eagle or the Mexican Libertad ounces. They offer a fallback security in case the banks seize your assets.

May Day May Day

If monetarchy sycophants are to be believed, the second quarter of the year is revealing a moderate recovery and the stock market continues to move sideways with a gradual inflation of its value. Never mind that behind the so-called recovery is a monetarchy working furiously to prop up the system with federal reserve notes.

Meanwhile, on main street the closure, of entertainment and retail venues that thrive on disposable income, has become epidemic. Unemployment continues to rise and the underemployed that usually took the crumbs of those changing jobs or taking a holiday are now chronically out of work. This army of unemployed poses a direct threat to local urban stability and neighborhood security.

Look for continued sideways movement of the stock market through the summer and masterful political spin by the Democratic administration. On the Republican side, expect Republican challenger Mitt Romney and Paul Ryan to continue the drumbeat of the need for changing economic priorities. The problem, of course, is that neither party will propose real solutions to the underlying shift in political and economic power. They are powerless to challenge the monetarchy that now dominates the world.

It is important to note that some political leaders, such as those in Israel, believe they can still act unilaterally without considering the consequences of their actions to the monetarchy.

In the conventional political models of international relations, war is a means of acquiring resources or shifting attention of the people from their direct self-interest. Many, in the US for example, continue to decry “false flag” events. However, under the monetarchy model of globalism, war cannot serve that previously useful function. It destroys value and inflates fiat currencies.

If Israel continues to build up its military preparedness and pushes its war policy, it will be interesting to see how the monetarchy will exercise its power. The case study will be critically important because it will set a precedent that other so-called independent “nations” cannot afford to ignore.

As for the global financial system, the instant quantitative easing and twists and shouts from the monetarchy stops, the stock market will collapse and with it the dollar. Already, there are reports of substantial acquisitions of gold by major banks distributed throughout the globe. This indicates the monetarchy has no intention of stopping the flood of reserve notes and is, in reality, shoring up its position for a major change in its internal organization and asset distribution and control system. In other words, it is implementing its global consolidation of power through its financial and banking arms.

For the time being, the flood of federal notes will continue in the trillions of dollars. The only question is how long it can prop up the international system as currently configured. It is unlikely the system, as it is now constituted, can survive for very much longer.

Interestingly, most regular people will notice the quiet desperation of people sinking financially while banks accumulate stronger and stronger balance sheets. The irony will not be lost on those minimally educated in conventional economics.

The Monetarchy will have to make its move soon and it is likely that some form of gold/silver backed currency will come into existence. However, this may not necessarily translate into a benefit for individuals holding metals. It is too early to tell whether the monetarchy will outlaw metals sales of institutions and agents that exist outside its direct control.

In the meantime, the major challenge facing those in power is how to manage the social upheaval the collapse of the current fiat currencies will bring with it. Already the current US administration has wrought a substantial rewrite of cherished constitutional freedoms through various so-called anti-terrorist executive orders. These have become necessary in order to control the population in a condition of civil upheaval.

It behooves for those with minimal financial security to prepare for major changes in short-order. This is not a prediction but rather a description of a process that is already underway, in the present – NOW.

Civil war, Inflation and Peace

As predicted, the Federal Reserve and world central banks continue with money-printing in order to prop up the system. More on this later, but suffice for now to know that the unhinging of the “quantitative easing” and “twist” pump priming is causing internal malinvestments and misallocations. Thus, civil strife within nations will increase dramatically over the next few months. Conversely, international wars will diminish in number and ferocity as predicted by the monetarchy analysis. In this latter regard, expect openings of negotiations among major world powers to calm things down.

The key for the federal reserve strategy to prop the system through massive and ongoing infusions of federal reserve debt notes (dollars) depends entirely on the ability of the monetarchy to control inflation.

Massive transfers of junk assets to the federal reserve and central bank balance sheets will serve to manage the inflation on paper. However, if the bubbles building as a result of the growth in bank liquidity burst, the entire system will face a massive deflation and, in short order, a massive inflation as the paper transactions tear down the firewall built by the federal reserve.

This threat is what is giving pause to a potential Israeli attack on Iran. The debate is not about Israeli security vs a nuclear threat as much as it is about the potential consequences of a preemptive strike that could elicit a devastating bursting of the inflation bubbles being created.

2012 Financial Predictions

The new year will bring with it tremendous changes and a continuing shift in wealth from the world’s working populations to the banking sector controlled by the Federal Reserve. Generally, the financial direction will be toward the downside for working people in the form of increasing inflation and rising unemployment and to dramatic upside for the global financial sector. Concentration of wealth will also continue within each national financial sector relative to the general citizenry.

Quantitative easing (money-printing) by the Federal Reserve and its central banks will continue outside the public view which will give the impression of a “slow growth” recovery until very close to the November elections. At this point, the Federal Reserve will decide whether it will change from Democratic President to a Republican one by adopting a “public” quantitative easing policy. A public QE will have the effect of dumping the current Democratic President.

The Federal Reserve will also adopt a “social fairness” policy of assisting those with “underwater” home mortgages with direct grants through Fannie Mae and Freddie Mac in order to mitigate public opposition to Twist and quantitative easing policies.

Thus, 2012 will be a year of robust activity on the world stock markets boosted by the Federal Reserve in the first half of the year that will hide the fiscal reality from most people. After the November election, there will be a significant “adjustment” to allow the real economy to absorb the malinvestments caused by the easy money policies, in other words, a recession to allow housing market and the dollar to find their real bottom.

Given the above, below are the top 12 predictions for 2012 from

1. Quantitative Easing – The Federal Reserve, in conjunction with world central banks and sovereign states, will continue an accelerated quantitative easing policy outside the view of the public that will temporarily boost the world stock markets and support the idea that a “recovery” is occurring;
2. Stock Market Wins and Loses – The price of the stock market in dollars will continue to rise consistently for the first two quarters of the year. Volatility will diminish, largely in response to the Fed Reserve quantitative easing policy but it will lose, at least, 25 percent of its current value by the end of the third quarter and continue to slide the remainder of the year propped up only until the November election in the US;
3. Global Recession – The largest trading nations will experience a global decline in GDP output and the UK, Europe (including Germany) will experience a deep recession;
4. US Flat Growth - The U.S. will experience flat growth (less than 1 percent);
5. 10 percent inflation – US price inflation will increase at a rate of 10 percent;
6. Civil War – There will be a marked increase in civil conflict across the globe between citizens and their police and military forces;
7. Israel-Palestine Talk – Conversely, there will be a major, behind the scenes effort to reduce middle east tensions because of the impact such a war might have on global economic activity;
8. Dollar Devalues – The dollar will lose half of its value;
9. Silver ComeBack – Precious metals will rise in price and value gradually in first three quarters and then increase dramatically by fourth quarter;
10. US Unemployment Up - Unemployment in the US will rise to 11 percent (19 overall) by the third quarter and 15 percent (24 overall) by the end of the year;
11. Global Bank Mergers - Major banks will experience short-lived and periodic bank holidays across the globe as smaller banks merge into bigger institutions;
12. Riots- U.S. bill of right protections and social internet communication will come under stress as internal stresses due to unemployment and inflation devolve into riots in major cities.

Man, the State and Empire – The Rise of Monetarchy

Man, the State and Empire – The Rise of Monetarchy – Rule by Banks

The world is coming upon a significant transformation. From villages to fiefdoms to monarchies to empires to sovereign states, the world is now poised to transition to its most significant integrative transformation since the middle of the 20th century that saw the consolidation of the nation state.

The world is moving to what President George Herbert Walker Bush referred to as a New World Order. This NWO is a Monetarchy or Rule by Banks.

Monetarchy has sucessfully implanted itself in the internal state governance of those participating in the world fiat currency markets. It has achieved sufficient integration to be rightly considered an empire (overarching entity composed of various countries and nationalities) that exercises global management of multi-state fiscal, and by extension – social, policies through a synarchic financial banking sector led by a Federal Reserve system. The Federal Reserve system is led by a Chairman who functions as the Monetarch of the transnational banking empire.

The monetarchic system is interlinked with the most powerful unipolar, devolving, constitutional and polycratic state – the United States. Polycratic refers to the exercise of the three branches of government.

Kenneth Waltz’s anarchic world order has shifted to a unipolar system supported by a fiscal matrix of fiat currency institutions. The U.S’s unipolar refers to its productive and military capacity relative to other world states. Despite enormous advances by China and Russia in developing their internal market capacity, the U.S. continues to outpace them.

Many states are in a process of nation-state devolution. Devolution is defined here as the transfer of power from the sovereign constitutions to the transnational monetarchy. This transfer of power is best illustrated by the number of technocrats filling important positions in sovereign governments. A technocrat is one that has served as a senior transnational bank official that shares the prevailing ‘equilibrium’ economics ideology, also referred to as Keynesianism.

The international system is, currently, maintained through explicit alliance among the US and a small number of strategic global state regional partners also in a state of devolution: Europe, UK-Australia-Canada, Israel, Arabia-Turkey, Pakistan-India, China, Russia, Japan, Brazil-Latin America, Indonesia-Taiwan, Africa. Importantly, those alliances are maintained through various commercial and free market agreements. These agreements are key in any effort to re-balance the relations of power in the new unipolar system.

Undergirding this emerging hierarchical system is the the fact the monetarchic empire is managed through senior banking sector technocrats sanctioned by the Federal Reserve bank.

The singular characteristic of the empire is that it has designated the US dollar as the world reserve currency and regulates its quantity. This power over the world’s reserve currency and its control of the fiscal decision process provides it with the leverage to exercise a monopoly of force through its state partner and its allies.

Technocrats from the various financial sector corporations serve interchangeably in executive branches of devolving states. Devolving states are not necessarily autocratic. Indeed, they may be democratically-elected governments. They do however share one characteristic. They are plutocracies, that is, governments increasingly composed of members of a wealthy financial class, whose role it is to enforce laws, legislate new ones and arbitrate conflicts. They are also, at least nominally, nomocracies. The legitimacy of their rule depends on the rule of law.

Plutocratic regimes ensure policies consistent with the interest of the Monetarchy because they perceive it as being in their direct financial self-interest. At the top of this empire is the Monetarch. He heads the Federal Reserve International Banking system and, although subject to pro forma oversight by the governing body of the unipolar sovereign (US), is not accountable to it.

There is are opposing dynamics within the monetarchic empire that affect its long-term viability.

On the one hand, there is the ongoing reaffirmation of constitutional democratic institutions of the unipolar sovereign state (US). This sovereign state benefits most from the empire because the Monetarchy transfers its inflation to other lesser state allies. A constitutional reaffirmation tendency can theoretically lead the polycratic state to stop the transfer of wealth from the sovereign’s citizenry to the empire’s transnational financial institutions. This implies the elimination of implicit and explicit guarantees of fiscal international trade, exchange and commercial policies.

In addition, the sudden de facto integration of various classes of global labor pools is increasing the stress within the sovereigns who are forced to rapidly reallocate labor, raw materials and other resources to the needs of the empire.

These tendencies are counterbalanced by the reserve and world currency policies supported by global sovereign governments that continually increase the military and commercial leverage of the monetarchy relative to its principal nation-state partner and other allied devolving sovereigns.

Whether the Empire is long-lived or whether the system re-balances in favor of the sovereignty of the nation state will depend on which dynamic proves stronger with its consequent policy mix.

Many despair of the economic confusion that seems to rule the news of the day as we move into 2012. They simply do not understand what is happening. Single issue micro-analysis is highly cumbersome and often confuses the reader because various complex issues and subject areas considered in isolation from the broader picture are necessarily incomplete and limited. A broader theoretical model is required.

Macro-analysis can provide a brief formal overview but has the very real danger of oversimplifying a great many complex processes. This description of a monetarchic model is an attempt to synthesize the issues in a way that is accessible to the average reader.

If you accept the theoretical framework as presented, the conclusion is fairly simple relative to what steps must be taken to restore the primacy of the nation-state. Implicit in this assertion is the normative bias toward it.

The goal here is seek and recommend prescriptions for the ailments arising from the sudden globalization tipping point experienced in 2008 not, simply, to find short-term palliatives, mitigators or superficial treatments of the global fiscal challenges.

What must be done?

To bring down an empire, the enabling sovereign nations must transform themselves from within. That means each and every American, as well as, each citizen proud of all proud national traditions have a choice to make – Restore the sovereignty of their respective nation-state or allow the continued consolidation of the monetarchic empire.

For Americans, the question is: Can we find and bring back our Washingtonian revolutionary spirit, our tea party boldness, Lincoln’s fight for unity and equality; Wilson’s hope to end all wars; Roosevelt’s affirmation of democratic values relative to the centralized party hierarchies of communism/fascism; Kennedy’s man on the moon searching the stars; Johnson’s great society, and citizen’s multiple occupy (occtupy) passions — in constructive ways that restore sovereignty to the United States?

Most importantly, can we fight to restore sovereignty without resorting to Huntingtonian bigotry?

Can we as Americans reaffirm our values of Life, Liberty and the Pursuit of Happiness?

It remains an open question.