Debts Collector Geopolitics

Introduction

Since 2008 global economic collapse triggered by bursting of United States housing market bubble, a new form of relationship between financial services providers & customers on one hand and between the state and finance/banking has emerged.  For most customers it has become a nightmare in some sense where the outcome has turned into double betrayal by both the banks and the state, while for the financiers, banksters and financial terrorists; they have become untouchables who have finally melded with the same unreconstructed state. Above all, United States reigns supreme not just for protecting the untouchables of their country, rather for appropriating the crisis for collecting ‘rent’ in any country. Anything short of challenging ‘too big to fail’! No prosecution, no legal challenge, just debt or rent collection externally to settle geopolitical score.

Retrogressive Pacesetting

By the time President Obama took office in 2008, there was a pregnant expectation of the unknown by the global banking elite especially their US branch of the intentions of the greenhorn president.  Pundits and media channels in the US ran endless bulletins of potential culling of banks, taming Wall Street and bailing out Main Street. However bearing in mind that Obama Presidential Campaign was in part managed and funded by the same Wall Street, Main Street had no chance. By the time the new president unveiled his new economic team, it became apparent that more of the same will emerge. In a sense the banking elite realised how powerful they are of course in concert with their political conspirators in Congress, as Obama rejected and quashed any suggestion of prosecution and therefore sustained ‘too big to fail’ toward orthodoxy.

Instead of moving for the jugular and prosecute the wheeler-dealers of the global economic debacle, bailout instruments were approved internally on the one hand while debt collection scheme in billions of dollars was deployed as a measure of geopolitical control. Huge banks like Bank of America were fined billions of dollars for failing one regulation or another. Apparently these fines where appropriated and presented as sufficient punishment when in actual fact these were slaps on the wrists. The train was set for reconfiguration of geopolitical banking structure with US extra-territorial judicial weapon of economic warfare to go after any bank/state suspected of running foul of her regulations.

Dollar World

As the world biggest economy with its money as global reserve currency, most of the major banks in the world trade in US dollars where in the commodities, currency and stock markets. This architecture gives US enormous power and influence which is enhanced with advanced telecommunication and internet technologies. On this stage, countries or states are mere building blocks for the sole superpower to managed, control, abjure and punish. As the biggest single market in the world, these banking operations are influenced more by US banking regulations than their national regulations.

On this count it becomes apparent that the fate of Euro and Yuan are still very remote and tied to the whims of US Federal Reserve Bank unless their supporting national politics projects sufficient power to breakout.  As a superpower with no room for challenge, these currencies have no chance to thrive within the global financial architecture designed and cultivated for sole US national interest. In the era of economic warfare, any country or bank that defies US authority will be subjected to the most ruthless response worse than any violent assault or aerial bombardment. US Treasury with the twin underlings of International Monetary Fund and World Bank are positioned to ensure that all or most central banks take orders to conform including but not limited to having ‘independent’ central banks, open stock markets, convertible and floating currencies and currencies & trade tied to the US dollars.

Punishment for the Big Lads  

One may surmise that United States intended to make the most from the global economic crisis without actually prosecuting those who oversaw the collapse as a new geopolitical weapon to put allies in line and in check. In 2009 Switzerland got the initial taste with massive fine of $885 million on UBS on charges of misrepresentation and tax evasion. Other fines related to currency manipulation may reach $8 billion dollars. Credit Suisse was then next to be hammered with a fine of $2.6 billion on charge of tax evasion. The government in Berne got full spectrum salvo of US power.

In 2012 HSBC, a UK bank was fined nearly $2 billion dollars for money laundering. As usual there were no prosecution for the bank executives just happy smile for increasing coffers of US Treasury.  Another British bank, Standard Chartered, received its fine of over $300 million for charge of money laundering.

In 2014, French bank, BNP Paribas was fined nearly $10 billion by US regulators on violating sanction rules. While other fines are equally healthy, the timing and context of BNP Paribas is interesting. One must recognise that towards the end of former President Sarkozy’s reign, he approved France rejoining of North Atlantic Treaty Organisation (NATO) military command. This was contrary to a decision made by General Charles De Gaulle as a counter-measure of ensuring French independence against his perceived Anglo-Saxon domination of global affairs. One must also consider that President Sarkozy was at one with Washington DC (leading from behind) in the betrayal and murder of Col. Ghaddafi and Libya in 2011.  It is also not lost on observers that Paris has reinvigorated her competition with London on US favourite on ‘special relationship’ starting with President Sarkozy and continued with President Hollande.

As a new war front opened up in Syria, France rose to stand shoulder-to-shoulder with Washington DC to potentially pound that defiant space into ruin & rubble having successfully completed earlier tasks in Libya and Mali. However opportunity for striking Russian near abroad on her under belly in Ukraine opened up new prospect for US to divide European relations with Moscow. While the rhetoric mounted across European media for sanctions against Moscow, the reality was different as many countries have strong economic ties with Russia including France.

Russian contract with France to supply her with military warships became subject to US interference or rather a test of French loyalty. French insistence of meeting the contract obligations including retain locals jobs was perceived as defiance by Washington DC. Of course as they say, they will be consequences with or without international law.

One Man Standing

US hegemony is intolerant of challengers in any sphere. Any suspicion of disloyalty is rewarded with consequences. Any aberration or infraction is an opportunity to bring its might to bear more so in the economic sphere hence economic warfare. In the hierarchy of hegemony, US allies has limited scope to express independence and follow it through. While some countries are presented and slammed as enemies, rogues and failed; it is evident that those termed allies, friends and moderates at different times suffer severe consequences even beyond experiences expected for enemies. 

Sections of global power elite in various allied countries are willing to accept these painful slaps and thumps as strategic prize to maintain their insertion in the good book of the single superpower. Therefore the context of friendship and enmity of United States is rather very complex and contradictory for observers. However it is important to concentrate on specific events and actions at particular times and locations in order to appreciate unique outcomes and responses.