Benji’s Plight

In 1971, the French sent a gunboat to New York harbour to get their gold back because the USA was over-extending itself as per the Bretton-Woods agreement. It was President Nixon who was not playing by the rules. In this example, it was the Vietnam war which was being funded but without enough gold to back the expenditures. The US was inflating its own currency. Since the Franc was pegged to the dollar and the dollar was pegged to the gold that America held, there wasn’t enough gold to maintain the value of the French currency. This is why the French acted. This was essentially the beginning of what we now know as central bank money, or modern fiat money.

Why mention all this? Well it seems to me that the Chinese are de-evolving in monetary terms, going back to a Bretton-Woods type system in order that they can play the role that the US played but with their allies, instead. For that to happen, they need to back their currency with gold, and so they will need as much as they can get. Russia has also spoken about a gold-backed ruble.

Gaddafi was in the process of creating a gold-backed pan-African currency, but Libya did not have the clout to withstand the American onslaught, and we all know what happened after that. China does.

If we exclude QEII, the largest land-owners in the world are Russia, China, the King of Saud, the King of Thailand, the King of Morocco, and the King of Oman. All of these countries have large Muslim populations; even Russia is about 15% Muslim. All of them have been involved with some form of gold-backed currency, or are currently talking about implementing one. China is going to do it for them, and unite Asia in the process.

This is why Kazakh president Nursultan Nazarbayev said, at the UN, that the IMF must go and that the world reserve currency should no longer be dollars. He also said that the UN should be based in Asia. Kazakhstan is hugely rich in natural resources (oil, gold, uranium…) He gave this speech on the same day as Obama and Putin spoke, but nobody was listening.

This, in my opinion, is what we are seeing in China now. They are slowly trying to shed dollars without causing too much commotion. If they do it too quickly, they would lose a great deal of value in the process. Eventually, though, the dollar will be dumped. China did just get into the IMF’s basket, for credibility and support if nothing else, but this may be short-lived and not for the reasons most would think.

With Turkey looking east, they could collectively control all the oil and gas flowing into Europe (Turkish Stream pipeline,) and most of the water flowing into the middle-east. The east would have Europe by the short-and-curlies.

This is also why they want to ‘easternize’ Europe with a large influx of migrants. Terror is a serious issue for all these actors, not just an excuse for expansion like it is for America. Russia has an outpost called Ingushetia to guard against Chechen fighters. Even China has terror at its back door.

Energy-poor Europe really has no choice in the matter and America is powerless to stop it. This is what made Ukraine such a target. Russia is diverting all pipelines into Europe through Turkey instead of Ukraine, making the entire exercise there moot. This is what makes the middle-east, the Spratley Islands in the South China Sea, North Korea, and Lithuania so important to the west. This is why the west (and NATO) is trying to encircle Russia and break up Eurasia, but what’s the expression again…? A day late and a dollar short (pun definitely intended.)

One could draw a line from Beijing to Moscow and cross only one country, Kazakhstan. Kazakhstan may be where the new Prime Meridian passes, where the new UN headquarters might be located, and is where the world’s monopoly of low-enriched uranium (LEU) is kept. Buffett knows it, too. Kazakhstan is land-locked and so is very easy to defend.

It’s over.

China is starting to unwind, all of Eurasia will be dumping the dollar very soon (?this summer/fall?) the petro-dollar’s days are numbered (Saud has been in negotiations with Russia for years now over this very issue) and if America doesn’t wake up to this incontrovertible fact, war will be the only option. If the USA and NATO and the EU start making preparations now, perhaps there could be a way to draw this out nicely enough not to have to crash the western economy. They could also all be working behind the scenes together, east and west, knowing that the inevitable is coming. Hey, ya’ never know.

As it happens, last year, American private equity fund KKR bought Mexico’s Pemex Oil. They have secured rights to drill in the Gulf of Mexico, and now they are moving even further south. Venezuela seems to be the next target now that the Americans know they have lost the middle-east, and will soon have to leave.

“Seventy percent of Petropiar is owned by the state-run Petróleos de Venezuela, and 30% by its overseas partner, Chevron. The government has now offered to sell a portion of its shares to the Russian Rosneft, along with a stake in the rights to extract oil from the premium-grade Orinoco Oil Belt. This, of course, is no less than a stab in the back for Chevron. (Rosneft faces sanctions from the US, which, of course, Chevron does not.)

Venezuela has also expropriated shares belonging to ConocoPhillips, for which it has not yet paid, at the same time as they’re negotiating with a Japanese investment bank to obtain further funding.”

These deals, in the American perspective, are worth protecting and fighting over especially if Russia’s Rosneft gets control of some of the oil in the Americas.

“The involvement of the U.S. military in an upcoming multilateral military drill in South America has raised concerns over potential ulterior motives on the part of the U.S.

 

The drill, dubbed “Operation: America United,” will involve the installation of a temporary military base on the triple border shared by the drill’s other participating nations: Peru, Brazil and Colombia.

Clearly, the Americans know that their time under the petro-dollar scheme is winding down, and they are desperately seeking alternative sources of oil. Now that Erdogan has refused the EU membership and is looking east, even the Germans are moving their troops from Incirlik to Jordan. They too must sense that something is changing within NATO and in the middle-east.

All this talk of populism vs. globalism (I was caught up in it, too) is like so many squirrels scurrying to hide their nutz. This is also why we needed the king of all squirrels, Donald Trump, to completely dominate our lives. After two years of him dominating the main-stream media scene, much of the groundwork has been done quietly, and in the shadows.

Yemen: Follow-Up

Clapper has called AQAP (Al Qaeda on the Arab Peninsula) the greatest threat to US national interests… now it’s Russia. Quite a shift in so little time. But what was the AQAP remark all about? Weapons sales, of course.

Terror has been the excuse for small corrupt governments, like that of Yemen, to milk hegemons (either global like the US, or local like Saud) of their money to combat terror. While strikes against both civilians and terror groups lead to more recruitment, the terrorists (considered by locals as freedom-fighters) are increasing acts of terror (read: liberation) to further the cycle. It is a self-fulfilling prophecy and a perpetual wheel, and US military contractors salivate at the prospect. If war is the most profitable industry, that is where capital (and capitalism) will flow… moral compass be damned. A corporation can be sued by its shareholders for acts of morality which cost the company money. Let the poor defenseless suckers pay for it all. This is disaster capitalism at its finest, the strong picking on the weak. This is why there is a wealth gap, in the first place.

Meanwhile, the poorest suffer, but they fight, for what other choice is there? Abandoning sovereignty is not a choice, it is a consequence of defeat.

America’s Dangerous Game In Yemen – (25:01)

 

Prince Charles is one of the world’s leading arms dealers (47:15) and should be brought to answer for his deeds especially concerning Saud and their war with Yemeni people. Unfortunately, there exists no legal mechanism in England to accuse any member of the royal family of having broken the law. They are the law. The UK, USA, Turkey, and Canada, amongst others, have sold the Saudis all the weapons which are now being used against the innocent people of Yemen including illegal cluster bombs and white phosphorus munitions. The mainstream media are silent and, in so being, complicit.

Prequel to this article here.

Meanwhile, In Yemen…

There are many images which have been foisted upon the west through its media sources. We all remember the picture of the Syrian boy who washed up on a beach in Turkey.

yemenAylan-migrant-child-dead-beach-turkey

There is also the Syrian boy who was rescued from the rubble of what once was his house. (What was the girl’s story? She was too old, and so was ignored by the media.)

yemen57b9b710c3618899768b461f

These are, of course, just two of the horrendous images of war in Syria. But releasing these images had a purpose, that of demonizing Assad.

There is another war going on. It is a  war few people speak of. There is far less coverage of it in the news, but the effects this war has on its population are just as devastating. It is the war in Yemen.

On one side are the Huthis, an armed group whose members belong to a branch of Shi’a Islam known as Zayidism. The Huthis are allied with supporters of Yemen’s former President Ali Abdullah Saleh. On the other side are anti-Huthi forces that are allied with the current President Abd Rabbu Mansour Hadi and the Saudi Arabian-led coalition.

Members of the coalition include the United Arab Emirates, Bahrain, Kuwait, Qatar, Jordan and Sudan. The USA and UK have been providing key intelligence and logistical support to the coalition.

The USA, UK, France, Spain, Canada and Turkey transferred nearly US$5.9 billion worth of arms to Saudi Arabia between 2015 and 2016, including drones, bombs, torpedoes, rockets and missiles, which risk being used to facilitate serious violations in Yemen.

Strangely enough, though the Amnesty International article I have quoted above is quite thorough, it fails to mention that many of the pilots flying Saudi-owned American jets, which seem to be indiscriminately bombing hospitals, schools, and markets, are from Israel.

So there we have it, all the countries currently fighting (or helping to fight) Assad in Syria (illegally) are now ganging up on a relatively small band of un-sophisticated fighters known as the Huthis, in Yemen.

There is, however, one notable exception absent from this coalition: the western media. In Syria, the media generates sympathy for civilians in order to discredit Assad; in Yemen, on the other hand, the coalition supports the government. Surely, if the truth about the situation there were to leak out, it would show the ‘allies’ for what they truly are. It would point the finger of atrocities straight at the west. It would show that WE are to blame (since the Huthis have no air-force.) So while massive resources go into scripting the overthrow of Assad in Syria and setting all sorts of traps for him (Ghouta, Khan Sheikoun, barrel bombs – because he has helicopters, etc…) the people of Yemen are forgotten and their images are forever put away, never to be shown for what they are.

(Follow-up to this article here.)

*** WARNING — The following contains VERY GRAPHIC CONTENT ***

Continue reading “Meanwhile, In Yemen…”

Of Bulls And Bears (and why they’re both screwed)

As a follow-up to two recent articles (here and here) on Turkey, Eurasia, and the coming crash of the US$, please consider the following.

As Russia’s Sergey Glazyev said, “As soon as we and China dump the dollar, it will be the end of the US’ military might…” Keep that in mind as you read the following.

China’s current credit crisis causes concern for the world’s economies, but not for China. China can amass all the debt it wants in order to finance its economic revolution and the New Silk Road. There is no limit because the money it is using is free money. This is why they support shadow banking, why they lend enormous amounts to institutions, corporations, entrepreneurs, and citizens; it’s not their money they are lending. They are using their manufacturing sector to pull as much cash as possible out of the west and using that to finance their future. Their own foreign debt is financed by Americans paying interest on obligations. Even their US holdings were financed with American money. Trillions of dollar-store knick-knacks can buy a lot of T-bills. Merry Christmas.

Once they have squeezed all the blood they can out of the dollar, they have no need for the US anymore. This is when they will start calling in their US debt, gradually at first, but accelerating until the dollar is out of breath and collapses, well short of the finish line. This will kill the US dollar, and remove its ‘reserve’ status.

America owes China about $1 trillion, give or take, and owes Japan about $1.1 trillion. Japan is very close to China, both physically and culturally (in many respects – much closer than it is to America in any case.) This will become important in the near-future.

Eric Clapton – Nobody Knows You (3:19)

 

The United States allowed China to become one of its biggest bankers because the American people enjoy low consumer prices. Selling debt to China funds federal government programs that allow the U.S. economy to grow. It also keeps U.S. interest rates low. But China’s ownership of the U.S. debt is shifting the economic balance of power in its favor. …Owning U.S. Treasury notes helps China’s economy grow by keeping its currency weaker than the dollar. It keeps Chinese exports cheaper than U.S. products. …China would not call in its debt all at once. If it did so, the demand for the dollar would plummet like a rock.”

America, as it turns out, is at China’s mercy. China and Russia have become very close, best buds, if you will. The New Silk Road is a plan to bring the Chinese economy to Europe’s doorstep. Beijing and Moscow are connected by a rail line which passes through Kazakhstan. Russia now controls most of the energy going into Europe through pipelines that run (or are being built) through Turkey. Turkey has a virtual stranglehold on the EU because it will have all the pipelines supplying European energy running through its territory as well as having control of the Euphrates river which delivers water to the middle-east. Because of Russian military strength, Turkey listens to Russia. Saud will soon see (or already does) that it makes a lot more sense to sell their oil to China and Europe, and now that Russia can protect them in the middle-east, they have no need for America anymore, nor Israel, for that matter. The petro-dollar will die the same death, America will leave the middle-east once and for all, and Israel will stop settling Arab land, one way or another. They will never have felt so alone. ISIS will be eradicated in short order, to boot.

Once the dollar is crippled, the stock markets will obviously take a nose-dive, but here’s where the insidious part of the plan goes into action – all western investors will be wiped out in one fell swoop. Sure lots of slick investors have a bearish hedging strategy against a Chinese credit crunch, but just think about it. If you are bullish and bet long stocks or dollars or whatever, you will lose it all; but even if you are bearish, what will you be paid with, dollars? Sure you will win all your bets, but your dollar rewards will then be worthless, too… and I haven’t even mentioned derivatives.

There will be nowhere left to turn. Only stackers will be able to eat, and only those heavily invested in crypto-currencies will manage to keep up their standards of living… in another country, of course.

In this new reverse alchemy, defenestration would become a popular pastime and paper gold would turn into lead, one bullet at a time.


Europe will suffer greatly as their currencies collapse, and Saudi and Russian energy will be very expensive (Saud has to make up all that money they’ve lost trying to kill US shale,) but they could still pull through. They might even sell a lot of luxury cars to the new billionaires in the east. Canada could also survive, as it could simply trade one global hegemon for another and sell its resources to China, instead. A very weak dollar would be good for exports, after all.

America, on the other hand, would finally be punished for all its bull-y-ing as city after city would very swiftly be turned into so many Detroits.

America would be rid of its arrogant bull’, and bears would once again roam free, smirking.


 

*UPDATE*

If anything ever goes wrong with the Chinese economy, they always have the option of selling their American holdings (T-bills) despite the fact that this would weaken USD.

Is North Korea The Excuse China Needs To Launch Monetary Armageddon?

The BIS, since its reporting is lagged, can provide cover for secret Chinese plans to crush the USD.

“This collapse in foreign exposure to China is confirmed by Bank of International Settlements (“BIS”), although this data is only to q3 2016.”

This may be hiding the underlying move by the Yuan.

“The forced deleveraging of China’s WMP-driven excess was not helped overnight by disappointing trade data as both import and export growth slumped.”

“The question now is not if China’s economy will slow, but rather how fast,” Mr Frieda added.

If ever there was a good time to sell some US assets, now might be it.

Is It Teats-up For The American Empire?

Eurasia may be a new term all Americans will be forced to learn.
The Euro’s collapse may well be due to Turkey’s geo-political shift.
China’s debt crisis is no big deal, they’ll just liquidate their US holdings.

Kremlin advisor Sergey Glazyev reveals ‘cure for US aggression’
“The more aggressive the Americans are, the sooner they will see the final collapse of the dollar and by getting rid of the dollar this would be the only way for victims of American aggression to stop this onslaught. As soon as we and China dump the dollar, it will be the end of the US’ military might…

“In objective terms, they are conducting a global hybrid war [an American invention, btw] and in subjective terms, this war is aimed at us. Moreover, as it always happens when a global leader is changed, the war is for control over rimland nations. During WWI and WWII, Britain acted as an instigator in a bid to keep its global leadership. Now the United States is doing the same. And Trump expresses these interests,” he said.”


Turkey is turning its back on the west which will have disastrous consequences for the US dollar and all of the EU’s central banks. The quadrillion dollar derivatives market is about to become the world’s biggest eraser, rubbing out the US and EU economy in one blow. Turkey controls all the ME oil flowing into Europe and most of the water flowing into the ME.

News conference following Russian-Turkish talks
“…expansion of trade and investment exchanges, and looked at the possibility of carrying out mutual settlements in our national currencies.

“We continue our joint work on building the new gas pipeline Turkish Stream.” This pipeline is the first step in making the Ukraine obsolete as far as supplying Europe with Russian gas.

“We discussed Turkey’s first nuclear power plant in Akkuyu, in which Russia is investing a total of $22 billion.”

“A third of Russians taking breaks abroad over this May holiday period have chosen Turkey as their destination.”


Russia hits another home-run while NATO tucks its tail between its legs. More and more countries are saying NO to NATO, Finland being the latest.

Press review: Syria’s warring sides back Russia’s plan and Finland says ‘no’ to NATO

“Syrian opposition forces are ready to implement Russia’s proposal on establishing four zones for reducing tensions. Most armed opposition groups have already agreed to take part in creating these territories, the leadership of Syria’s opposition delegation, which is heading to Kazakhstan’s capital of Astana for a new round of talks on Wednesday (see below,) told Izvestia. Russian armed forces should control the zones, the Syrian parliament said. However, Damascus has refused to accept the participation of UN forces.

Telephone conversation with President of Kazakhstan Nursultan Nazarbayev

“…satisfaction with the adoption of a Memorandum on establishing de-escalation zones. They noted that its implementation by all sides would strengthen the ceasefire, improve the humanitarian situation, and on the whole promote the political settlement of the Syria crisis.

Nazarbayev has openly called for an end to American hegemony through the reserve currency, wants the UN headquarters to be in Astana, and, oh yes, controls all the world’s LEU uranium, thanks in large part to Warren Buffet.


With Syria going Russia’s way, Turkey knows it better start playing nice with Asia. Russia controls over half of Turkey’s gas imports, and a third of its coal. It is also working out a deal to supply Turkey with the S-400 missile defense platform. The days of the petro-dollar are coming to an end.

Turkey shifts its gaze towards the Eurasian Economic Union

Ankara has decided to suspend its plan to become a member of the European Union… supported by the United States since 1987.”


Still, the US presses on with its belligerence, surrounding Russia with nuclear weapons, launching sanctions, gossiping all day on CNN, all with the goal of pushing Russia to launch a first-strike so it can retaliate and say, “You see… Russian aggression.” This is just silly because if Russia does launch a first strike, it won’t be with nukes, it will be to take out all American satellites, thus rendering all US missiles and defense systems useless. America cannot get astronauts to the ISS, nor can it get new satellites into space without Russian rockets. Russia controls space, therefore, it controls the battle-space.

U.S. defense secretary to visit Lithuania

“Mattis is to meet with President Dalia Grybauskaite next Wednesday to discuss strengthening security in Lithuania and the Baltic region, and bilateral cooperation.”

Lithuanian security? C’mon, just look at a map of Lithuania. Are they going to be attacked by Poland? The only territory in danger is a small part of the Russian Federation which Lithuania and Poland surround. Just another excuse for missiles to surround Russia. Bilateral cooperation with a country so small and remote, of course, means, “Do as we tell you.”


Is this an exercise in futility? You bet it is. It’s over, and Nero is tuning his fiddle.

Prequel to this article.


Postscript

Now you may ask yourselves why I quoted TASS, the Kremlin, Xinhua, and voltairenet.org & strategic-culture.org instead of mainstream western sources? It is for the simple fact that none of them have reported any of this.