Regarding “He who controls the debt controls everything”:
Actually, I am reminded of the movie, “The International” (IIRC) with Clive Owen, which is a spy movie that includes international banking. International banks were footing the bills for arms deals to dictators in exchange not for a friend in the region, but, rather, for control of the debt on an international scale, which in turn controls events.
http://www.imdb.com/title/tt0963178/
Of course, we here would advocate getting out of all debt personally as the best defense. On a national scale, as a debtor nation, we are now not merely easy pickings for ChiComs and so forth, but also a vassal to their increasing demands. It’s the reiteration of the Ottoman Empire’s ‘concession’ lands to the likes of the Dutch (Royal Dutch Shell) during the demise of the empire.
Among the shadows of intrigue in DC lies a dark silence that hides the intent. The intent we note here does not serve the foundational values and issues of Ameircan exceptionalism and sovereignty.
My 2 cents.
Boots
‘Concessions’ links:
http://www.hri.org/docs/straits/concessions.html
Also:
“Oil development in Iraq took place against a backdrop of war, political intrigue, deception, secret agreements and oil company haggling. Iraq, historically known as Mesopotamia, was part of the Ottoman Empire since 1534. (”Iraq” was the name given by the British to their newly created mandate). Collapse of the Ottoman Empire in early 20th century gave the Western powers the opportunity to seek political influence and commercial benefits in new territory – in Iraq as well as the rest of the Ottoman territory. Oil was the major prize.
Discovery of oil in 1908 at Masjid-i Suleiman in Iran – an event that changed the fate of the Middle East – gave impetus to quest for oil in Mesopotamia. Oil pursuits in Mesopotamia were concentrated in Mosul, one of three provinces or “vilayets” constituting Iraq under the Ottoman rule. Mosul was the northern province, the other two being Baghdad (in the middle) and Basra (in the south) provinces. Foreign geologists visited the area under the disguise of archeologists.
For a good part of the last century, interests of national governments were closely linked with the interests of oil companies, so much so that oil companies were de facto extensions of foreign-office establishments of the governments. The latter actively lobbied on behalf of the oil companies owned by their respective nationals. The oil companies, in return, would guarantee oil supply to respective governments – preferably at a substantial discount.
This symbiotic relationship manifested itself superbly when Turkish Petroleum Company (TPC), founded in 1911 and named as such in 1912 to exploit Mosul oil, was reorganized in March 1914 at a meeting held in Foreign Office in London where British and German diplomats sat next to executives of British and German banks and British and Dutch oil companies. Notwithstanding its name, TPC did not have Turkish participation. At that time World War I had not broken out yet, and Germans were welcome at TPC.
The British and Dutch were attracted to German participation because German banks had obtained a concession from the Ottomans in 1904 – a concession that in fact had been allowed to lapse. Calouste Gulbenkian, the consummate deal-maker of Armenian origin that helped found TPC, was not present at the meeting, but his interests were well looked after. He ended up with 5 percent share in TPC, though with no voting rights.”
http://www.globalpolicy.org/component/content/article/185/40548.html
(From “Oil in Iraq: The Byzantine Beginnings”: By Dr. Ferruh Demirmen. Global Policy Forum, April 25, 2003)
Saw the movie you reference. Did not find it either entertaining or intellectually stimulating.
For the ownership of debt to give someone power, there must be a debt collection mechanism. If the system falls apart as comprehensively as some of the debt doom and gloom crown proclaim, that mechanism isn’t likely to be functioning.
In which case the holders of the debt have nothing but paper.
The recent housing bust is instructive. Many people held massive positions in the debt instruments created during the boom. Worked out well for them, didn’t it?
If the US experiences hyper-inflation, presumably it could pay off its international as well as its internal debt very cheaply. After WWI Germany couldn’t, because its international debt was denominated in some other currency, dollars or pounds, I forget which.
So if China pushed the US into hyperinflation, by the same act they destroy the value of all our debt they hold. Not a wise financial move.