July 29, 2019
(Notice to readers: This report and the next two reports will be pre-written, as I take my annual sabbatical. We will only report breaking news if some game-changing event takes place. The next report with weekly breaking news will appear on August 19th. Your understanding is appreciated.)
The system of global economic governance has become dysfunctional at the highest level. The institutions created by the victorious powers after World War II—the IMF, the World Bank, the United Nations, etc.—have led to an extinction-level ecological disaster and extreme concentration of wealth in the hands of a parasitical elite.
China, with is multi-trillion-dollar Belt and Road Initiative (BRI), is rapidly sinking the gridlocked Western powers into irrelevance. For this reason, the White Dragon Society has been proposing the creation of a Western-led Future Planning Agency (FPA) as a complement to the Chinese BRI. This plan has high-level support from the Pentagon, the Vatican, and the British Commonwealth.
The FPA would be modeled after the Japanese Economic Planning Agency (EPA) that was behind Japanese decades of spectacular (often double-digit) post-war economic growth. The system culminated in the mid-1980’s with Japan having the highest per-capita income in the world and the lowest gap between the rich and the poor in the OECD (Organisation for Economic Co-operation and Development). Therefore it would be a good idea to examine how the Japanese EPA worked before fleshing out plans for the FPA.
The heart of the Japanese system was an informal group of about 20 or so bureaucrats, industrialists, and politicians. The politicians would convey what the people wanted, the bureaucrats would say what was realistic, and the industrialists would advise as to what was profitable. Together they would come up with a plan of what they wanted to accomplish for the country over the next five years.
The plan would start with the Bank of Japan doing a systematic survey of the country. They would send officers to stores around the country to check the prices of goods. They would also survey businesses large and small as to what their business plans were, and in particular how much equipment they intended to buy. Based on this data, the BOJ would calculate exactly how much money would be needed to meet the investment plans without creating inflation.
The money was then allocated to the private banking sector. The private banking sector was divided into nationwide “city banks,” regional banks, and specialized banks. Each corporation had its “main bank” and these banks supplied the corporations with funds in accordance with the overall plan.
Once it was decided how much money was to be injected into the economy, then the other bureaucracies, especially the once-famous and feared Ministry of International Trade and Industry (MITI), would make their plans. MITI was staffed by some of the most intelligent people in Japan who passed the nearly-impossible-to-pass top-level civil service exams.
MITI was not like a communist central planning authority, but rather created a general roadmap for private industry to follow. For example, if the five-year plan called for doubling the number of highways in Japan, MITI would make sure the car companies were given whatever help they needed to build enough cars to fill the new roads.
The main point of this whole system was that the country as a whole had a sense of direction and an overall plan for the future. This made it easier for companies and individuals to plan their own futures.
Despite its incredible success, the Japanese system had a major flaw. This was caused by a system of forced retirement of bureaucrats. Any bureaucrat who did not make it past a certain level of promotion was forced to retire early. These bureaucrats would then take a “golden parachute” and land jobs in the private sectors that they formerly had supervised. This created what was in effect a system of deferred bribery. Bureaucrats would offer sweetheart deals to corporations in exchange for a promise of a lucrative job after their retirement. Very low pay for bureaucrats only made the system worse.
Singapore solved this problem by not forcing bureaucrats to retire, and paying them salaries that were competitive with the private sector. This meant they could concentrate on the greater good, not simply the good of whomever it was they were supposed to supervise.
Overall, the Singaporean and Japanese models combined the best of Western capitalism and East Asian Confucian meritocratic bureaucracy. Other countries like South Korea, China, and Vietnam copied their examples. The overall result was for Asia as a whole to have a larger GDP than the West as a whole.
This fundamental change in the balance of economic power led to Asian countries demanding more of a say in how the planet as a whole is run. Unless the West reforms its systems by incorporating and improving on the successful parts of the Asian model, the more time that passes, the stronger Asia will become as the West becomes weaker.
Now let us examine the failure of the Western system, especially after the end of the Cold War. The West experienced massive economic expansion as a result of World War II. This was because of industrial planning related to the war effort.
When World War II ended, the original impetus in the West was to dismantle the military apparatus and bring it back down to traditional and minimal peacetime levels. However, the industrialists who profited from the massive military buildup staged a coup and came up with a plan for a “cold war” to keep the massive military spending going.
This contrived Cold War was good for the economy as a whole until the early 1970’s. However, the military-industrial complex was basically dedicated to creating instruments of military-industrial mass murder. At a certain point, it became parasitical. As a result, the real living standard for 90% of Americans has been dropping since the early 1970’s.
The collapse of the Soviet Union and the end of the Cold War should have created a huge peace dividend for the victorious West. However, because there was no system of future planning such as exists in East Asia, this opportunity was squandered.
Instead, the oligarchs heading the West came up with what can only be described as a criminal and stupid plan to revive the Cold War by creating a nebulous “terrorist” enemy. Thus was born the fake War on Terror, combined with never-ending low-level conflicts in places like Afghanistan and Iraq. The end result was to squander trillions of dollars on meaningless military conflicts.
Western infrastructure, especially in the U.S., became dilapidated and the U.S. became the most indebted country in the history of the world. This worked as long as the debt was owed by captive slave states like Saudi Arabia and Japan. However, this is not the case with China. The Chinese, aware of Neocon plans to invade and dismember China, rightly asked, “Why should we pay for you to kill us?”
The inability of the Americans to pay their debts to China is the essence of the ongoing trade war. The administration of Donald Trump is saying, “Buy a bunch of our stuff so we can avoid bankruptcy.” The Chinese answer, “You don’t have enough stuff to sell.” The Americans are now upping the ante by trying to cut off Chinese access to semiconductors and may soon try to cut off oil as well. The Chinese have foreseen this and have waited until they had enough alternatives to Middle Eastern oil to make their move.
The only card the U.S. has to play now is World War III, but no matter how many times the Pentagon plays its war games, the result is the same—90% of humanity dies and the entire northern hemisphere of the planet becomes inhospitable.
The solution the White Dragon Society (WDS) has negotiated with the Asian secret societies—and that has received the support, as mentioned above, of the Vatican, the British Commonwealth, and the Pentagon—is to create a Western-led future planning agency.
This proposed agency, with a budget of trillions of dollars and a multinational meritocratic staff, would start a Western counterpart to the BRI. It would come up with big plans to turn the deserts green, replenish the oceans, explore the universe, etc. The actual work would be put out to the private sector via competitive bidding.
Currently the main obstacle to this plan being carried out is the fanatic Zionists who seized control of the Western central banking system. They cling to an apocalyptic vision of a war between Gog and Magog that would kill 90% of humanity and allow them to enslave the survivors.
The WDS and its allies therefore have been left with no choice but to hunt down and kill or arrest these genocidal fanatics until their final defeat and surrender is a fact. The process of removing them from power is well under way and, if all goes well, could be completed as early as this autumn.
Weekly Geo-Political News and Analysis
by Benjamin Fulford