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.

Erdogan: Richest Man On Earth?

Maybe ‘the most powerful man on Earth’ would be more appropriate. Let me explain.

Turkey and the EU have been in limbo now for almost thirty years. Turkey has wanted to join, but there have been doubts about its stability… well-founded doubts.

Recently, the west’s relationship with Turkey has soured. Erdogan has been playing both sides of the conflict in Syria. There is little doubt that he has sponsored mercenary forces to overthrow Assad, that he has moved Daesh oil, and that he has attacked both the Russians (by downing a Sukhoi) and the Americans in Syria:

“The Turkish statement clearly dismissed speculations that Ankara forces hit US-backed fighters in Syria by mistake.”

It would seem that Turkey has said goodbye to its EU aspirations, and perhaps the EU has also:

“The European Union has warned that the bloc could redefine the entire status of its relations with Turkey in light of recent developments in the country and amid growing disputes between the two sides.”

As I have written in past articles, if Turkey looks to the west, America wins in the middle-east along with its allies Israel and Saud. They would essentially control all the pipelines through Turkey, the Euphrates river, and the Mediterranean. Assad would be ousted, eventually. The Russians would lose access to the Mediterranean, and would be blocked at the Bosporus. New terror groups would undoubtedly spring up to threaten Russia from Georgia and Chechnya. This would give the west more power over Ukraine and Crimea, where the focus would undoubtedly shift. The globalists would win, too, by the way.

If Turkey looks east then the New Silk Road will be a ‘fait accompli’ giving China land access to the EU and giving Russia more say about what happens near its borders (with Georgia and Ukraine.) New pipelines would be built to bring Iranian oil to markets in the EU. The China/Russia/Iran/Kazakhstan connection would win over India, in time, as well as Saudi Arabia. The price of oil in America could quadruple overnight, shale or no shale. Populism would soar across the west and the EU, and Assange would be free to leave the Ecuadoran embassy in London.

Turkey looking east would almost instantly save Assad, sever the links between America and Saud, which would lead to the destruction of the petro-dollar scheme, which would kill the US dollar, which would, in turn, bring down all the central banks in the EU. The world’s derivatives markets are highly sensitive, especially these days, to the effects of any downturns with the central banks, just ask Douchebank (ahem) I mean Deutsche Bank. Actually, don’t; they’ve been very tight-lipped about the whole situation.

Deutsche Bank Tells Investors Not To Worry About Its €46 Trillion In Derivatives

 

The entire derivatives market is worth an estimated 1 quadrillion dollars, and if anyone of its substantial pillars were to fall, well, let’s just say that things would not end well. If the whole thing fell apart, it would be the end of America, and the EU, as we know it.

See here for a nice graphic representation.

So there we have it, Erdogan looking east would blow up the western world’s economy more assuredly than any bomb Russia could drop. Putin could end up beating the Americans simply by making nice with Erdogan. He wouldn’t even have to launch a missile. Good thing the west was thinking ahead, allowing a scapegoat like Trump, who would certainly be blamed, to win the white house.

Who’d have thought that the entire populist movement, the western banking system, and the fate of the western world, for that matter, depends not on Trump, or Le Pen, or on Farage, or even on Wilders, but rather on a paranoid dictator worth 1 quadrillion dollars headquartered in Turkey named Recep Tayyip Erdoğan, and all so he can kill some Kurds?

Putin maybe, but he’s always been good at chess, and there ain’t no Bobby Fischers left.


UPDATE

It would appear that Turkey and Russia are indeed getting closer…

Russia’s Gazprom CEO Alexei Miller said Wednesday that the energy giant will begin the offshore laying of the Turkish Stream pipeline in the second half of 2017 and plans to complete the construction of two legs by the end of 2019.

…much closer.

Turkey, Russia clinch agreement on S-400 air defense system deliveries

Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan will meet face-to-face in Sochi on May 3 to discuss these and other matters. Clearly, the rapprochement since Turkey shot down a Russian jet is going well, much to the dismay of the west.

Vladimir Putin believes that Russia and Turkey are restoring full-format relations

“I’m sure that those steps that we are taking together will change the fate of the whole region,” Erdogan said.”

And they lived happily ever after…


Follow up to this article is here.

Putin and the UN – Is Change in the Air?

Based on a recent interview with Charlie Rose, Vladimir Putin made some subtle comments regarding the status of the UN and what the future might hold in store. This is simply speculative interpretation, but did he hint at the possibility of an overhaul of the foundations of global governance? The BRICS association analogy may be a valid comparison to draw at this point.

“…I will have to say a few words about…the fact that the United Nations remains the sole universal international organisation designed to maintain global peace. And in this sense it has no alternative today.”

This is an interesting comment. Of course, everybody knows that the UN is unique, so why mention it here? Is there a plan amongst the developing economies to overhaul the UN, or is the plan to replace it with a less partisan body? His qualification of the comment with the word ‘today’ leads one to believe that tomorrow might be a different story. With Russia being a founding member (since its inception at Yalta after WWII,) and if Russia can convince the other members of the BRICS countries to follow suit, they could withdraw from the UN and create their own body to uphold international law without granting the US veto power over all its decisions. On the 25th of September, Putin met with the other members of the UN’s security council to discuss the situation in Syria, as well as current domestic policy issues. One wonders what these issues might be, but given recent comments by Putin (such as those given at Valdai) as well as those given by Assad (here and here,) not to mention the rift which is developing between Germany and France against the US over NATO’s involvement in the Ukraine and US involvement in Syria indicate that the world’s opinion about the US and its activities in the middle-east and elsewhere are changing (or worsening, depending on your point of view.)

“It is also apparent that it should adapt to the ever-changing world, which we discuss all the time: how it should evolve and at what rate, which components should undergo qualitative changes. Of course, I will have to or rather should use this international platform to explain Russia’s vision of today’s international relations, as well as the future of this organisation and the global community.”

It is very clear, based on these statements that the UN is an ever-evolving entity, but it is also clear, given the prevalence of this comment at the beginning of the interview, that there is a will amongst the participants (not including the US) to reform the role of the UN in the near future.

“…in my opinion, provision of military support to illegal structures runs counter to the principles of modern international law and the United Nations Charter. We have been providing assistance to legitimate government entities only.”

This comment was clearly meant to demonstrate US support for the forces opposing Assad – ISIS/ISIL et al. – and its illegality. Will the international community continue to allow the Western forces’ ‘carte blanche’ towards the middle-east, and will it stand idly by as Syria is turned into Libya v2.0? It would not appear to be the case. China has also decided to support Assad’s forces by sending its navy to the port at Tartus in Syria. Has the BRICS military coalition started?

“There is only one regular army there. That is the army of Syrian President al-Assad.”

And in another quote from a past interview,

“It’s my deep belief that any actions to the contrary in order to destroy the legitimate government [of Syria] will create a situation which you can witness now in the other countries of the region or in other regions, for instance in Libya, where all the state institutions are disintegrated. We see a similar situation in Iraq,” Putin stressed.

“There is no other solution to the Syrian crisis than strengthening the effective government structures and rendering them help in fighting terrorism. But at the same time, urging them to engage in positive dialogue with the rational opposition and conduct reform.”

The Russian leader stressed that US-led coalition partners need to understand that only the Syrian people are entitled “to decide who should govern their country and how.”

With this, Putin is upholding the democratic process by which Assad was elected, and legitimizes his presence in the discussion.

That which the future holds, only time will reveal, but clearly the winds of political change are blowing squarely in the face of the US, its official policies, NATO, and the UN.

*Update* Given what the Kazakh president said at his speech to the UN, there are more massive changes coming to the ‘International Order’ as we know it. Buckle up!