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.

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Бейбітшілік пен келісім сарайы - Astana

Astana Mean-Time?

Kazakhstan is an interesting place with a broad and diverse history. From Genghis Khan’s invasion to Stalin’s deportation of undesirables from the west of the country (which contributed to the region’s ethnic diversity) as inmates of the gulags to the unilateral dismantling of their nuclear program in the post-Soviet era, Kazakhstan has been down a long road to its present form of democracy/dictatorship.

The image above is of the The Palace of Peace and Reconciliation, a.k.a. Pyramid of Peace and Accord. Among its many features are stained glass panels at the top showing three doves in the middle triangle, two doves on the right, and two doves on the left. This motif is echoed below by lozenges, again three in the middle, two on the right and two on the left.

The Pyramid was specially constructed to host the Congress of Leaders of World and Traditional Religions. It contains accommodations for different religions: Judaism, Islam, Christianity, Buddhism, Hinduism, Daoism and other faiths. It also houses a 1,500-seat opera house, a national museum of culture, a new “university of civilization”, a library and a research center for Kazakhstan’s ethnic and geographical groups. This diversity is unified within the pure form of a pyramid, 62m (203ft) high with a 62x62m (203x203ft) base. The building is conceived as a global center for religious understanding, the renunciation of violence and the promotion of faith and human equality.”

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Kazakhstan has, of late, been on a building spree which would put pre-crisis Spain to shame. Financed by Kazakh supplies of oil, gold, and uranium (the world’s second largest producer and America’s largest supplier) as well as massive amounts of foreign investment (from the likes of Warren Buffet, no less,) universities, infrastructure projects, religious institutions, and sky-scrapers have all been popping up at a phenomenal rate. But there’s more. They have been building trade deals and international relationships, as well.

One of these deals was the foundation of the IAEA Low Enriched Uranium (LEU) Bank in Oskemen. “The IAEA LEU Bank, operated by Kazakhstan, will be a physical reserve of LEU available for eligible IAEA Member States. It will host a reserve of LEU, the basic ingredient of nuclear fuel, and act as a supplier of last resort for Member States in case they cannot obtain LEU on the global commercial market or otherwise.”

“The establishment and operation of the IAEA LEU Bank is fully funded through US $150 million of voluntary contributions from the Nuclear Threat Initiative, the United States, the European Union, the United Arab Emirates, Kuwait, Norway and Kazakhstan.”

Strangely enough, there are some other ‘improvements’ of note, which may seem, at first glance, contrary to the Kazakh stance on WMD. The USA is funding a bio-weapons research lab with the goal of fighting global terror. The lab will also serve as a storage facility for some of the most harmful and virulent strains of disease known (such as bubonic plague, yellow fever, anthrax, cholera, smallpox et al..) The BSL-2/3 (the highest level is BSL-4) lab will not only protect the diseases studied within from being stolen, but also protect the bio-chemists and engineers (and the knowledge they possess) from being hired by shady groups. There has been much unemployment in this field since the collapse of the Soviet Union, after all.

There is also the possibility that the US is funding the lab with other intentions in mind…

Russia Questions Peaceful Nature of US Biological Research

*Update* The CDC reports unususally high rates of bubonic plague (black death) in the US.

“The United States must target all attributes of the biothreat, using all available tools–from the cognitive realms of transparency and partnerships which have the potential to shape and dissuade, to the firm reality of denial and punishment through vaccinations and kinetic responses as necessary.”

But more on this later. *Update – some evidence of this plan coming to light: America has attacked a power plant and a water treatment facility in Aleppo, Syria with no military value against ISIS. This could lead to an outbreak of cholera.

Russia currently pays Kazakhstan $115 million annually to use Baikonur Cosmodrome, plus $50 million every year for maintenance, under a deal signed in 2004. That agreement is slated to expire in 2050.” This is a pretty good deal considering the following, “NASA Administrator Charles Bolden sent a letter to Congress Wednesday saying the agency would need to pay $490 million to Russia for six seats on Soyuz rockets for U.S. astronauts to fly through 2017. That comes to nearly $82 million a seat, up from $71 million a seat. Since the retirement of the space shuttle in 2011, NASA has relied on Russian federal space agency Roscosmos to provide seats on its Soyuz spacecraft to send U.S. astronauts to the space station.” Further, “At the moment, Russia is the only nation capable of launching astronauts to the International Space Station. Russia’s crew-carrying Soyuz spacecraft all launch from Baikonur…” In addition, the US buys its rocket engines used for satellite launches from Russia and will need to do so for years to come. The American space program seems to be completely dependant on both Russia and Kazakhstan. What would happen if they decided to cut the Americans off?

See also: “US Badly Needs Russia’s Technology to Keep Its Space Program Afloat

With all the new investment opportunities (mostly from the USA) as well as the very close ties to Russia, it seems odd that Nursultan Nazarbayev (who also attended a NATO summit on Afghanistan in 2010) would say the things he said at the UN during a speech he gave on September 28th (which, oddly enough, is not on the UN’s video channel,) to wit:

  • That the world should move towards a global currency (thus stripping the USA of its reserve currency status.)
  • That the International Monetary Fund (IMF) should be removed from USA control and folded into the UN.
  • That the headquarters of the UN should be moved from New York to somewhere in Asia (he did not say where.)

Granted, these recommendations were to take place over a rather long period of time, nevertheless, it demonstrates either a cunning international play against the hand feeding it, or a willingness to accede to a plan already long in the making. He did sign on to help in America’s ‘War on Terror’, after all.

Putin also said, during an interview with Charlie Rose, that there could be room for change at the UN, and the French and Mexican delegations pushed for a reform of the veto rules at the Security Council’s meetings, as well. It would seem that the winds of change are blowing squarely into American faces.

*Update

Now Putin is turning his nose up at the Saudis after a meeting in Russia. And what was Ingushetia’s Yunus-Bek Yevkurov doing there with the others’ Defense Ministers?

While You Weren’t Listening

The first and current President of Kazakhstan is Nursultan Nazarbayev. In his speech to the UN today, he made several recommendations to the council. They were monumental in scope, especially considering the limited international status of his 25 year old country. Then again, based on what Putin said about the UN (or rather, didn’t say,) perhaps there are things in the works about which we don’t yet know.

“When the Soviet Union collapsed in December 1991, Kazakhstan inherited 1,410 nuclear warheads and the Semipalatinsk nuclear-weapon test site. By April 1995, Kazakhstan had returned the warheads to Russia and, by July 2000, had destroyed the nuclear testing infrastructure at Semipalatinsk.”

“On 2 December 2009, UN Secretary General Ban Ki-moon and the Republic of Kazakhstan designated 29 August as International Day against Nuclear Tests, anniversary of the date the Semipalatinsk test site closed in 1991.”

Kazakhstan is the largest landlocked country in Asia and has the strongest economy in central Asia. They have enormous oil reserves and are a leading exporter of uranium (ironic as that is.) It is also a world leader in coal, iron, and gold production.

Their elections have been largely considered to be unfair and anything but free in the eyes of international observers.

Kazakhstan is vying for a non-permanent seat on the UN Security Council in 2017. They enjoy good diplomatic relations with both Russia and the Ukraine.

He proposed five main points:

  1. That there be one global currency to replace the favoured status of a reserve currency and the unfair advantages it confers upon the country that controls it.
  2. That the IMF be folded into the UN’s mandate removing it from US control (since they won’t have the reserve currency, anyways.)
  3. That the IAEA Low Enriched Uranium (LEU) Bank in Oskemen, Kazakhstan (agreement signed this August,) which removes the need for individual countries to enrich their own uranium by centralizing the distribution thereof, be the only source for enriched uranium. A kind of central bank for fissile material. This bank would be overseen by, and indeed, folded into the UN and included in its mandate.
  4. That nuclear weapons be banned, outright.
  5. That the UN headquarters be moved out of the US and into Asia.

Given that France and Mexico et al. have proposed that the veto right of the permanent members of the UN Security Council be severely limited, It doesn’t look like the world is going to leave a lot of meat on the bone for the US to cushion its fall from grace. Could this be the impetus for WWIII which the UN was formed to avoid?

There is a short follow-up article here.