Guest post by Sven von Storch
The Great Reset and Great Recession
The world is currently facing two major challenges: First, the fight for a possible New World Order. The global leadershipof the United States has turned into a struggle between the USA and China for world domination. And secondly, the international financial and currency system is facing a historic collapse.
These two factors pose a grave threat to the order, stability and security of the world, at the moment of Chile in particular, which faces national elections this Sunday. Like in the Cold War, Latin America is in danger of becoming a pawn in the Great Game of the superpowers. Chile and other countries could be crushed between these forces.
The Patriots: Defenders of National Sovereignty
This power struggle between the superpowers is also a struggle over two opposing visions of the New World Order, and the future of the world we will live in. The competing visions are those of the Globalists and the Patriots. The ongoing struggle we see in the United States is also a struggle between Globalists and Patriots.
Patriots want to preserve the traditional international order of sovereign nation-states established with the Treaty of Westphalia 1648, and provided peace and stability even during the Cold War. Patriots want to defend national borders, economies, democracy, the balance of powers, constitution, rule of law, parliaments, governments, freedom of speech, cultural heritage, the family as the basic unit of society, etc.
The Globalists: The Alliance of Global Corporations and International Left
On the other side, we have the Globalists, an alliance of supranational corporations and the international left. This alliance wants to gradually abolish the nation-state, and replace it with Global Governance. Through a process they call globalization, our inherited protective mechanisms such as national borders, national economies, civil rights, free speech, democracy, cultural heritage, etc., with which nations defend the rights of their citizens against outside threats, are to be dissolved and replaced with a New World Order. The Globalists’ interests are not local or national, they are global – represented by supranational institutions like UN, EU, IMF, etc. as well as by so-called “Non-Governmental” but massively taxpayer-funded organizations like WEF, IFF, WHO, Foro de Sao Paulo, Grupo de Puebla, etc., by Big Tech, the new global bureaucracy of Global Governance, plus international think tanks run by Big Business and Big Finance.
Neo-Marxism is Globalist Eschatology
The alliance of the two globalist camps is united by a shared ideology: Neo-Marxism. Philosopher and totalitarianismexpert Eric Voegelin calls it a gnostic ideology, one which promises heaven on earth, and liberation from all earthly pain and suffering. The price is the destruction of the sovereign nation-states with their old orders, traditions and symbols.
Russian General Gerasimov describes this three-step process in his doctrine of Hybrid Warfare: 1.) Destabilization of nation-states, 2.) Revolution or destruction of the old order 3.) Annexation and transition to the New Order. The promised earthly paradise will never come about, of course, only the destruction of the old order.
The Currency Battle between Patriots and Globalists
At the center of this global struggle for the next 10 to 20 years is the question of which currency will be the international benchmark: The US Dollar or the Chinese Yuan. American MAGA patriots and Trump supporters want to defend not only the preeminence of their nation, but also the preeminence of the US Dollar as world reserve currency. For the globalists, it doesn’t matter whether the Yuan or the Dollar win out in the long term. What matters to them is the abolition of the nation-state and replacement by Global Governance. As long as the world reserve currency serves this goal, it doesn’t matter if it’s American or Chinese, so long as the globalists’ interests are protected.
The Threat of Global Hyperinflation
Even Twitter boss Jack Dorsey warns of the dangers of global hyperinflation. The central banks of this world no longer serve to maintain monetary stability, but to finance sovereign debt. Fiscal responsibility and a tight budget are the prerequisites for a stable currency. Instead, the big players in world politics, the USA, China and the EU, are livingbeyond their means, and thereby threatening the stability of the international financial system. Total global debt is currently around USD 300 trillion. That corresponds to 3.5 times the global economic output. The ECB’s total assets amounted to 8.37 trillion Euros in October 2021 – compared to 5.06 trillion Euros the previous year. Since the introduction of the Euro, the ECB balance sheet total has increased tenfold. The ECB currently prints 30 billion Euros every week. The US Federal Reserve currently prints 40 billion Dollars a week. Its total assets are growing at the same rate as that of the ECB. China’s currency, the Yuan, is no alternative: Since the 2008 financial crisis, Chinese money supply has grown even faster than that of the Dollar. Jack Dorsey is right: Global hyperinflation is an imminent threat.
Nations like Chile are in Danger of Being Crushed Between Superpowers
This process of the destruction of the nation-state, threatens to wipe out smaller nations like Chile. The dissolution of the institutions of the nation-state and the abolition of borders bring chaos, anarchy and poverty. Chile has watched this development passively for too long, under the false assumption it is at the mercy of these forces and can’t do anything to influence the future course of events. This fatal fatalism, this unquestioned passivity, has put Chile in great danger and shaken the foundations of the Chilean success story. While Chile was considered a role mode in Latin America just a few years ago, today its future is in doubt, as is whether Chile can assert itself as a politically stable, economically prosperous and sovereign country in the 21st Century.
Chile is at a Crossroad
Chile stands at a crossroad today. Will Chile be crushed, destroyed and dominated by these international forces? Or willChile today decide to take its own future and sovereignty into its own hands and proactively shape and defend it? What does Chile need to shape its future as a sovereign nation?
1. In this international context, Chile must formulate a foreign policy based on its national security, which guarantees its sovereignty, and protects its national democratic and constitutional institutions.
2. Chile needs to develop a stable currency system and system of trade routes.
3. Freedom of expression may no longer be restricted by Big Tech, so the democratic process will not be endangered.
4. Chile needs secure borders and strong security forces.
5. Chile must end terrorism, organized crime, drug trafficking and the actions of subversive groups from abroad, by any means necessary.
6. Chile must protect its historical identity and national culture.
What Should Chile Do?
1. Chile has to form alliances with other countries in Latin America, Asia and Europe, which also want to maintain the sovereign nation-state, defend the international order based on the nation-state, and actively develop it further in this global crisis.
2. Chile has to decisively expand its international cooperation against terrorism, organized crime and drug trafficking.
3. Chile has to seek cooperation with countries that export raw materials in order to reach greater independence on the international stage, and strive for its own stable currency that guarantees people’s purchasing power and prevents inflation.
4. Chile has to establish alliances to secure and stabilize trade routes.
5. Chile has to improve and strengthen its security services, and combat further intrusion by foreign powers who want to promote the destabilization of Chile.
6. Chile has to regulate transnational organizations like Big Tech, that manipulate and censor social and political life.
7. Chile has to better control and manage immigration and the awarding of citizenship in order to attract skilledand law-abiding migrants, and to deny entry to people with bad intentions.
National Security: The Most Important Resource in and Age of Insecurity
The nation-state and its internal stability are not only threatened by transnational criminal organizations and uncontrolled migration. The global world financial system can destabilize states and entire continents, too. If Chile succeeds in creating an oasis of freedom under a strong national protective umbrella through a new security strategy, it will attract investment and capital from all over the world. Switzerland and Singapore are considered safe havens for capital not only because they have strong bank secrecy, but also because they are able to defend themselves against foreign threats. National security is not everything, but without national security, everything becomes nothing. Security is one of the most important resources and one of the greatest strategic advantages a state can offer in the 21st century.
The Israeli Model: Chile Lacks a National Security Strategy
The state of Israel has 9 million inhabitants, is surrounded by a world of enemies, has few natural resources, and yet manages to protect its borders, successfully fight terrorism and secure its existence. Even in the years when President Barack Obama put massive pressure on Israel and pursued pro-Arab policies, Israel was able to protect its interests. Why shouldn’t Chile, with its incomparably better location, also succeed at this? Chile has highly motivated and well-trained security forces. What is missing is a national security strategy that harmonizes internal and external security, military and intelligence services, diplomacy, and its alliances and information-sharing.
Modernize Forces and Seek Allies
In 21st Century Hybrid Warfare, external and internal security can no longer be separated. Terrorism, organized crime, drug and human trafficking, corruption, mass migration – all of this is carried out across borders and the boundaries between states, so-called non-governmental organizations, terrorism and crime are becoming blurred. Hezbollah in the Middle East is cooperating with the drug cartels in Latin America, and the globalists are teaming up with smugglers to promote illegal migration. In order to repel this attack on order and security, Chile must modernize its security forces and cooperate internationally with like-minded states.
Fiscal Policy: How to Safeguard your Money in and Age of Hyperinflation
Global inflation and the deficit economy creates the basis for global financial speculation that toys with national economies. A fiscal and strategic battle is now ongoing between the USA and China over the question of who will be the world’s leading currency in the future – that is, who will own the more powerful money printing machine. This comes at the expense of the states that hedge their export profits in these currencies, whose currencies are linked to them, whose reserves and savings are invested in paper currency and bonds, and which export real value, such as raw materials and agricultural products, and are paid for them in inflationary currency. The great task in the coming years will be to create secure stores of value, and means of exchange in order to secure the stability of prosperity and trade.
The Russian Model: Hoard Gold Reserves
There is a way out of this destructive game, however: The Russians have already prepared for a possible collapse of the world financial system. The Russians have been systematically buying up gold since the 2007 financial crisis. Russian gold reserves have grown from 400 tons to 2300 tons in this period. The logic is simple: Russia exports real values such as oil and natural gas, and in return acquires a treasure trove of real values, namely gold. This model is an example for Chile, to secure the profits from its exports, and to protect itself from global inflation and speculation. In the global financial system, Chile has to be a player, not the ball.
Alternatives to the Dollar and Yuan: Precious Metals Backed Currencies
As the global fiat currency system implodes, real value will become increasingly important. As the world’s largest producer of copper, Chile has a key position. If Chile were to issue a currency backed by its copper production, it would soon be more in demand than the Swiss Franc in times of inflation. If Chile were to agree to issue a global currency backed by a basket of precious metals, with other mining states such as South Africa, Australia, Mexico and Indonesia, it could win the international currency competition as an alternative to the US Dollar and the Chinese Yuan.
Freedom of Speech and Freedom of Information
Digitalization, the media and access to information belong both to the field of national security, and to the field of economic development. Democracy today is threatened by the fact that a small number of Big Tech billionaires can decide what information citizens receive via social networks and search engines, and which information is censored. Theycan manipulate elections and public opinion. Without freedom of expression and free access to information, democracy and a free society cannot exist. Society must not let an agenda be imposed on it from the outside, and allow itself to be destabilized by manipulation of the opinion-forming process. That is why free access to uncensored information and free communication are so vital. In the field of digitalization, the nation-state must guarantee free access to networks, transparency and competition, and prevent censorship.
Chile as Center of Innovation and Science
Not only can Chile be a bulwark in times of chaos, anarchy and global inflation, it can also be a breeding ground for ideas and scientific and technological progress. Many Western universities are currently hamstrung by political correctness and Cancel Culture. Working conditions for scientists are deteriorating. Chile should enter the competition for the best minds with a strategy for Chile as a science hub. Chile should make itself a beacon of freedom of expression and freedom of research, for good working conditions for scientists and students. Ideas developed in Chile today can change the world tomorrow. Instead of indoctrinating our youth with left-wing ideology in schools and universities, as happens today even at the best universities in the U.S. and Europe, we should arouse young people’s curiosity about science, engineering and technical innovation.
Trade Policy: Free Trade without Surrendering National Souvereignty
Chile needs a trade policy based on real free trade, without sacrificing its national sovereignty. The usual trade agreements today are tied to regulations that hinder, rather than promote, trade and competition. Linking the free exchange of goods and services with conditions for climate protection, labor-market regulation, or ideological rules from gender studies departments, has as little to do with a free economic order as arbitration panels that operate above and beyond national jurisdiction.
Trade, National Sovereignty and Economic Competition
The world economy needs tariff-free trade. This is not just about competition between companies, but also between national economic systems. Every nation-state has the right to determine its own regulatory policy. Labor market policy, environmental policy, energy policy and legal policy belong in the realm of national sovereignty. National elected parliaments have to decide, not unelected transnational organizations. While the Globalists strive for trade agreements that restrict national sovereignty, for example, through mandatory agreement to the Paris Climate Agreement, Chile should in principle advocate for tariff-free trade without sacrificing its national sovereignty, taking into account its national security needs.
Coordinate Trade Policy and National Security
Trade policy must take into account that subsidies and currency manipulation are unfair trade policies, which certain states employ to increase their power and harm other countries. It must also take into account that the nation’s strategic basic supply of food, medical care and military equipment, as well as the maintenance of social stability and public order, must be guaranteed even in serious crisis situations. To this end, national security experts should also be included in trade talks. The strategy for international trade must also include a strategy for major crises, such as war, blockade of trade routes, and health crises. Trade policy must be part of an integrated national security strategy.
International Communications Strategy: Success through Trust
Chile needs a vision of itself and the world for the 21st Century. The Globalist left has a vision, so they are currently on the offensive. Chile needs to renew its vision and actively promote it in the world. Chile needs an international communications strategy that its embassies, diplomatic missions and friends around the world can use to orient themselves. Chile’s reputation as a prosperous and safe country has suffered in recent years. Whether Chile can repair this reputation and strengthen its national identity at home, and its national image abroad, will depend on whether we can regain trust. Trust and reliability are the basis for success in international politics in the 21st Century.
Chile and the Future of Latin America: Broke like Venezuela or Rich like Switzerland
Chile stands at a crossroads, which will decide whether Chile will become a second Venezuela, or become the Switzerland of Latin Americas, or the new Pacific Hong Kong. On Sunday, the Chilean people must now decide whether the future of Latin American will be written in Havana or in Santiago de Chile. Chile has everything it needs to actively forge not justits own future, but that of all of Latin America and become a major player in international politics. Chile posses great talents and brilliant minds, a powerhouse economy, valuable raw materials and natural resources, and direct access to the Pacific sphere. All it lacks is courage and a vision for the 21st Century, which guarantees its national security, and a proactive foreign policy based on safeguarding its national sovereignty.
Publisher and editor-in-chief of FreieWelt.net, chairman of the grassroots movement Zivile Allianz, director of the Institute for Strategic Studies Berlin. He was born in Chile and is married to Beatrix von Storch, an influential member of the Bundestag of the German AfD party. Sven lives in Germany and Chile.