Russia-Ukraine War: The Turning of the Great Ship of History

On the afternoon of October 6, 1973, the fourth Middle East war began with two loud explosions in Israeli fortifications on the eastern bank of the Suez Canal.

At the same time as the explosion, the Egyptian army launched more than 200 air strikes on Israel, and then Egyptian soldiers shouted “God is great” as they stormed across the canal. Under the fierce attack of the Egyptian army, the Israeli people were caught off guard, and the elaborate Bale defense line was suddenly broken down, and Israel was once again faced with the danger of substrate…

October 6 is the Muslim festival of Ramadan, which is also the Jewish Day of Atonement. During Ramadan, Arabs do not eat during the day, cut down on working hours and activities. Yom Kippur is also a day of absolute rest for Jews, who do not eat, drink, smoke or broadcast from sunrise to sunset — so the war is also known as the “Yom Kippur War”.

As for the loud explosions in the Israeli fortifications that signaled the beginning of the war, they came from two explosive bags that Egyptian frogmen had planted in the water before the war.

Before the war, Egyptian President Anwar Sadat had arranged a united front in advance, and almost all Arab countries responded. Syria and Egypt sent troops at the same time, and Iraq also massed troops on the border.

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“If we can take back 10cm of land in Sinai and stand firm, then we can completely change the attitude of the East and the West towards us, and change everything, especially the humiliation in our lives after we lost [the third Middle East War] in 1967.”

— Former Egyptian President Anwar Sadat

Based on Soviet-made weapons and caught off guard, the allied forces of Egypt and Syria won a huge victory in the early days of the war, but Israel quickly responded with massive aid from the United States. First, it concentrated its forces to contain the Syrian attack, and then, with the help of American satellites, it saw a gap in the Egyptian army. Using this gap, Israel fought its way back to the Suez Canal.

The tide of war was turned, and the Israeli army was on Egyptian soil, closing in on Cairo…

In the midst of this, on October 14, 1973, the United States airlift of arms to Israel was made public. As a result, the Arab oil exporting countries, led by Saudi Arabia, directly increased their crude oil exports to the United States from $3.01 per barrel to $5.11. On October 17, they decided to cut their oil production by 5 percent every month and threatened an outright embargo.

On October 20, Saudi Arabia announced an oil embargo against the United States, which was later joined by other Arab oil producers and extended to western countries supporting the United States, such as the Netherlands. The oil supply in the world was reduced by 5 million barrels per day, and the Western oil crisis broke out in full swing.

On October 22, 1973, after negotiations between the United States and the Soviet Union, the United Nations passed a cease-fire resolution ordering an immediate halt to fighting between Israel and Egypt.

Under intense pressure from the two superpowers, Israel halted its attack, Egypt and Syria also opted for a ceasefire, and Iraq withdrew its troops.

By 26 October, the fighting had ceased completely, but the Egyptian 3rd Corps was cut off from supplies and held hostage by Israel, and the two sides remained in a military standoff.

By the end of November 1973, the European Community and Japan had expressed their support for the Arabs in the Middle East issue. Only the United States and the Netherlands were left on the blacklist of crude oil embargo.

By January 1, 1974, when Israel still did not withdraw its troops, Arab oil producers again raised export prices to $11.65 / BBL, a nearly three-fold increase from $3 / BBL in early 1973.

On 5 March 1974, Israel withdrew its combat forces from the occupied territories;

On March 18, 1974, OPEC announced the end of the “oil embargo”.

Although the “oil embargo” ended, international oil prices never went back to the past, and under the influence of high oil prices, Western countries officially began their nearly 10-year era of “economic stagnation and high inflation”.

The years after World War II were quiet and the good times were over.

Of course, the cause of the West’s full-blown stagflation is not Egypt or Syria, nor is it the oil price spike caused by the oil embargo. The real cause is the US government and the Federal Reserve.

On the eve of the end of the Second World War in 1944, under the leadership of the United States, the global Bretton Woods system of currency, trade and finance was established. The agreement clearly stipulated that 1 ounce of gold was worth 35 dollars, and “the dollar is equivalent to gold”. The paper money of other countries was all pegged to the dollar, implementing a fixed exchange rate system.

Ordinary people can only exchange their gold for paper money at financial institutions in other countries, but they cannot exchange their paper money for gold. Only foreign central banks or governments can go to the U.S. Treasury Department and exchange their dollar bills for gold.

This rule gives the dollar, the Federal Reserve and the United States the most transcendent position in the world economy.

And if you think about it, for thousands of years of civilization, the only thing that could be exchanged for goods and services in other countries and used as the world’s currency was natural gold or silver or copper, God’s gold is good, money, something that only God could make, and now the dollar is equal to gold, As the currency of any country, the Federal Reserve can print scraps of paper and go to any country in the world to buy goods or services that the United States needs as long as it needs them…

The pound notes before World War I had a similar status, but the pound, after all, was just a certificate of gold, and anyone could take a pound note and find someone to exchange it for gold, but very few countries used the pound as a reserve currency, unlike the “gold equivalent” status of the dollar — to put it plainly, the transcendent status of the dollar, It’s just turning paper into gold.

Based on the dollar’s status as the world’s currency, coupled with America’s great industrial potential inspired by World War II, the American economy is a God-like presence around the world:

More than 80 percent of the world’s cars are made in the United States;

Steel production, accounting for 60% of the worlds;

Industrial capacity, accounting for nearly 50% of the world’s total;

Economic size, a monopoly of the Western world two-thirds;

Foreign trade scale, a monopoly of the Western world one-third;

As for gold as a currency, one central bank holds 75% of the world’s reserves;

The point is that even with that size, the United States regularly grew by more than 5 percent in real terms in the decade after World War II, and even grew by 13 percent in 1950 — when the dollar was on a rock-solid gold standard and every bit of economic growth was a real increase in real wealth.

The question is, when you have the power to turn paper into gold all over the world, how can you possibly resist the urge to use it?

Born a man, armed with a weapon, killing heart since

From the end of 1950s, the US economy suffered many recessions, and the expenditure of the Vietnam War made the US government overwhelmed, so they began to issue more national bonds. Then, the Federal Reserve would direct a trick of “cutting interest rates and printing money”. Such a double-spring show would continue, and the M2 money supply of the US would naturally soar all the way, with a higher and higher growth rate…

It is self-evident what the continuous rapid printing of money and water will eventually lead to.

By the end of the 1960s, the rapid printing of money over the past decade had already created an undercurrent of dollar inflation. Even though the U.S. government and the Federal Reserve had 30,000 tons of gold at one point, that was nothing compared to the dollars that the Federal Reserve was frantically printing and the dollars that were being flooded overseas, and foreign governments and central banks were no fools, and they started taking dollars to the U.S. Treasury and converting them into gold.

In August 1971, when the dollar flood finally broke its levees, President Richard Nixon was forced to close the gold exchange window and impose for three months sweeping wage and price controls that had been in place only during the war.

The fabric of the Bretton Woods system is broken and inflation is about to explode.

After Nixon closed the gold window, the price of crude oil quickly rose from around $2 a barrel to around $3 a barrel, down from $1.05 in 1946, just after World War II. At the same time, the exchange rates of major Western countries and the US dollar began to fluctuate greatly, and some countries even began to refuse to accept the US dollar. The international financial market became unstable.

 

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