Shaun BRADLEY: The End Of The (Petro)Dollar: What The Fed Doesn’t Want You To Know; antimedia/zerohedge 27.06.2017

Below Shaun BRADLEY surveys the increasingly loss of the Petro-Dollar’s importance and indicates, that the (US-backed) attacks on Qatar are motivated among other reasons by the country’s cautious shift away from the US currency …

Greets,
Martin Zeis

27.06.2017 — www.zerohedge.com/news/2017-06-27/end-petrodollar-what-fed-doesnt-want-you-know

The End Of The (Petro)Dollar: What The Fed Doesn’t Want You To Know

Authored by Shaun Bradley via TheAntiMedia.org

The United States’ ability to maintain its influence over the rest of the world has been slowly diminishing. Since the petrodollar was established in 1971, U.S. currency has monopolized international trade through oil deals with the Organization of the Petroleum Exporting Countries (OPEC) and continuous military interventions. There is, however, growing opposition to the American standard, and it gained more support recently when several Gulf states suddenly blockaded Qatar, which they accused of funding terrorism.

Despite the mainstream narrative, there are several other reasons why Qatar is in the crosshairs. Over the past two years, it conducted over $86 billion worth of transactions in Chinese yuan and has signed other agreements with China that encourage further economic cooperation. Qatar also shares the world’s largest natural gas field with Iran, giving the two countries significant regional influence to expand their own trade deals.

Meanwhile, uncontrollable debt and political divisions in the United States are clear signs of vulnerability. The Chinese and Russians proactively set up alternative financial systems for countries looking to distance themselves from the Federal Reserve. After the IMF accepted the yuan into its basket of reserve currencies in October of last year, investors and economists finally started to pay attention. The economic power held by the Federal Reserve has been key in financing the American empire, but geopolitical changes are happening fast. The United States’ reputation has been tarnished by decades of undeclared wars, mass surveillance, and catastrophic foreign policy.

One of America’s best remaining assets is its military strength, but it’s useless without a strong economy to fund it. Rival coalitions like the BRICS nations aren’t challenging the established order head on and are instead opting to undermine its financial support. Qatar is just the latest country to take steps to bypass the U.S. dollar. Russia made headlines in 2016 when they started accepting payments in yuan and took over as China’s largest oil partner, stealing a huge market share from Saudi Arabia in the process. Iran also dropped the dollar earlier this year in response to President Trump’s travel ban. As the tide continues to turn against the petrodollar, eventually even our allies will start to question what best serves their own interests.

Many E.U. member states are clashing with the unelected leadership in Brussels over immigration, terrorism, and austerity measures. If no solutions are found and things deteriorate, other countries could potentially follow the U.K.’s lead and vote to leave, as well. It is starting to become obvious that countries in Eastern Europe will look to the East to get the resources their economies need.

China, Russia, and India are all ahead of the curve and started stockpiling gold years ago. They recognize that hard assets will be the measure of true wealth in the near future — not fiat money. The historic hyperinflation that has occurred in these countries solidified the importance of precious metals in their monetary systems. Unfortunately, most Americans are ignorant of the past and will likely embrace more government bailouts and money printing when faced with the next recession. Even Fed officials have admitted that more quantitative easing is likely the only path going forward.

Several renowned investors have warned about this ongoing shift of economic power from West to East, but bureaucrats and central bankers refuse to admit how serious things could get. The impact on the average person could be devastating if they are not properly educated and prepared for the fallout. (…)

F. W. ENGDAHL: Eastern Europe Tilts to OBOR and Eurasia

Elke Schenk

globalcrisis/globalchange NEWS

http://www.williamengdahl.com/englishNEO27May2017.php

Eastern Europe Tilts to OBOR and Eurasia
By F. William Engdahl
27 May 2017

Small but geopolitically important steps were taken by key members of the European Union from the EU’s Eastern periphery. While largely ignored in Western mainstream media and in Brussels, they could well portend a longer-term alternative economic space to the failing construct known misleadingly today as the European Union with its bankrupt Eurozone single currency and European Central Bank. I refer to the talks recently in Beijing at the major Belt and Road Forum, between leaders of 29 nations and China’s President Xi Jinping with the Prime Ministers of Hungary, Greece, Italy, Spain as well as the President of the Czech Republic and the President-elect of the Republic of Serbia .

The significance of the attendance of these specific European countries is underscored by the conspicuous absence of the leaders of Germany, France (maybe excusable due to presidential elections), and the remaining EU member countries, as well as the absence of the President of the EU Commission.

The list of Beijing attendees confirms that a tectonic fault line is developing across Europe between government leaders opting for national economic growth and development versus the nations whose leaders are still tied to the scelerotic, dying economies of the old Atlanticist order known as the American Century.

‘Historical Cusp’

China made clear to the USA and the EU that their OBOR infrastructure project was not at all exclusionary. Beijing made clear months ago that it genuinely wanted their participation in what Vladimir Putin called the development of an Eurasian Century.

Trump responded by sending a low-level National Security Council civil service bureaucrat named Matt Pottiger. Germany’s Merkel sent her Economics Minister who pompously declared in Beijing that Germany would not sign the Forum Joint Communique, complaining instead that she wanted a “level playing field,” newspeak for the old Anglo-American globalization midel that makes the rules for “less developed” countries and thereby gives superior advantage for the Western G-7 multinational giant corporations and states.

Notably, leaders of the EU countries most strongly objecting to Brussels policies in key areas of the economy and refugees, such as Hungary’s Viktor Orban, strongly embraced participation in China’s vast $22 trillion infrastructure project called One Belt, One Road or OBOR, more recently Belt and Road, for short.

In remarks in Beijing summarizing his talks there, Hungarian Prime Minister Viktor Orban spoke bluntly of an emerging global tectonic fault line. Orban declared that the old globalisation model is obsolete, noting that “a large part of the world has had enough of a world where “a few developed countries have been continuously lecturing most of the world on human rights, democracy, development and the market economy,” a direct slap in the face to the US-led “democracy and human rights” NGOs of George Soros and the CIA-tied USAID which have ferociously tried to topple the very popular Orban.

Orban added that the world today has, “arrived at a cusp between historical eras: the old model for globalisation – built on the assumption that money, profit and technological know-how are in the West, flowing ‘from there to less developed, eastern countries.’ That model, Orban stressed, has “lost its impetus.” The Hungarian leader emphasized the crucial point that Washington and the stagnating governments of much of the EU are in denial. “Over the past ten years, the global economy’s engine room is no longer in the West, but in the East. More precisely, the East has caught up with the West.”

The Hungarian Prime Minister noted the fact that in Hungary over the past year or so, “large American and European companies have been bought up by Chinese enterprises, leading to a sharp increase in the number of Hungarian development projects that are now Chinese-owned. This movement of capital is totally different to what we have been used to, and to what we have been taught about how the global economy operates.”

Orban obviously gets the very central point that Washington, Wall Street, Brussels and Berlin are in denial over: The emerging Eurasian Century represents an entire new quality of globalization. No longer are the colonial European powers or their American cousins holding the key cards or calling the shots.

During his private talks in Beijing with Xi Jinping and other Chinese officials, Orban signed Memoranda of Understnding in connection with linking the OBOR infrastructure with the economies of Europe.

For Hungary, Orban signed financial and economic agreements in Beijing. He stated that the “most spectacular” of these agreements was for modernisation of the Budapest, Hungary to Belgrade, Serbia railway line, including the financing. Serbian President-elect Aleksandar Vučić, together with Orban a major target of destabilization protests led by Washington NGOs of George Soros and the National Endowment for Democracy, also participated in the signing. […]

The Greek Connection

In addition to Hungary and Serbia, debt-ridden Greece is also drawing closer to Beijing and her OBOR initiatives. Prime Minister Alexis Tsipras, until recently a darling of the International Monetary Fund for bringing his Parliament to sign savage pension cuts and other austerity laws so that the EU and IMF debt deals go forward, is finding the Chinese OBOR option increasingly attractive.

In a meeting with Tsipras in Beijing before the opening of the OBOR forum, China’s Xi Jinping offered Tsipras proposals of expanding cooperation in infrastructure, energy and telecommunications. Xi told Tsipras, according to the official Chinese news agency, that Greece was an important part in China’s new Silk Road strategy. He put it in characteristic Chinese language: “At present, China and Greece’s traditional friendship and cooperation continues to glow with new dynamism.”

Greek infrastructure development group Copelouzos signed a deal with China’s Shenhua Group to cooperate in green energy projects and to upgrade power plants in Greece. The deals are worth more than $3 billion. In 2016, China’s largest shipping company, state-owned COSCO bought majority ownership stake in Piraeus Port Authority as preparation to turn Greece into a transhipment hub for the rapidly growing trade between Asia and Eastern Europe.

It is important to recall that, contrary to the religious dogma of economic simpletons such as Milton Friedman, there exist in nature no such entities as “free markets.” Markets are the careful product of man-made economic infrastructure developments. This is the core of China’s “globalization with Chinese characteristics,” as Deng might have termed Xi’s OBOR idea.

In recent months China has been a major investor in Greece’s economy, a sharp contrast to the demands of the EU and IMF for Greek austerity. The China State Grid last year bought a 24 percent stake in Greek power grid operator ADMIE for 320 million euros.

[…]

If we take the developments in Beijing’s OBOR forum of Hungary, Serbia, Greece, Czech Republic, and add to this the fact that Turkey’s President Recep Erdogan was also present and made a major committment to participate in the China-Russian-led OBOR, we have the seed crystal of a world geopolitical renaissance that contains the potential to replace the now-dead Anglo-American globalization model of top-down fascist economic domination, with a model truly based on mutual benefit among sovereign nations. As a traditional Russian saying goes, the select nations of Eastern Europe, along with Russia, China and perhaps also Turkey, are truly “making porridge together,” making rich nutritious Kasha. (emphasised ES)

F. William Engdahl is strategic risk consultant and lecturer, he holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics, exclusively for the online magazine “New Eastern Outlook”

China „Is Not Another US“, Does Not Seek „Yuan Hegemony“ 

 
China „Is Not Another US“, Does Not Seek „Yuan Hegemony“ 
 
—  E x c e r p t  —  (complete text attached)zerohedge-CHINA-is-not-another-US150326
 
(…)
 
The Global Times (a paper run by the state-controlled People’s Daily) is out with a story which purportedly describes China’s benign intentions and altruistic aspirations from the AIIB.
 
 
The establishment of the Asian Infrastructure Investment Bank (AIIB) has been depicted by a few overseas media outlets as if China is building its own version of the Bretton Woods system. 
The bank is not yet in operation, and it will take time for people to come to grips with its purpose. However, overblown hype from foreign media claiming that China is seeking financial hegemony could create preconceived notions for people who are not familiar with it…
Some foreign observers claim that the AIIB is the beginning of the Chinese yuan’s hegemony. What they are actually trying to imply is that „China is another US.“
This kind of statement is nonsensical, which uses historical experience to fool readers. It is divorced from the truth and shows no common sense and doesn’t stand up to any scrutiny.
Through the Bretton Woods system, the US was able to wield supreme influence over its allies which had been severely battered during the war. China today is in a totally different position. 
Founding the AIIB is only a China-led initiative. Over 30 countries from Europe and Asia have so far applied to join, some of which even have territorial disputes or political divergences with China. They are not courting Beijing, or pushing yuan hegemony. What they are pursuing is the win-win principle of cooperation. 
The AIIB will not confront the WB or IMF, nor will it turn the current international monetary order upside down. The spirit of the AIIB is diversity and justice.
International relationships are entering an era of democracy that means pursuing hegemony is a wrong path whether one is an existing power or a rising power.  
China always maintains a low profile when it comes to showing the strength of our nation. Moreover, the Chinese media resists the hype over describing China as „number one“ or a „superpower”…
The Bretton Woods system is a product of the old days. The new global trends created the AIIB and there is no room to look back to the old days of one currency’s hegemony. 
 
(…)
 
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Martin Zeis
globalcrisis/globalchange NEWS

US Hegemony, Dollar Dominance Are Officially Dead As China Scores Overwhelming Victory In Bank Battle

— Full text attached — zerohedge-US-Hegemony-dead150325
US Hegemony, Dollar Dominance Are Officially Dead As China Scores Overwhelming Victory In Bank Battle
It’s official: everyone has caught onto the fact that the Asian Infrastructure Investment Bank story is extremely important. We’ve covered this exhaustively over the past month, but to summarize, the China-led development bank essentially marks an epochal shift away from traditionally US-dominated multinational institutions like the IMF and the ADB. Meanwhile, it also represents an implicit attempt by the Chinese to usher in a kind of sino-Monroe Doctrine and solidify their regional — and, to a certain extent their international — ambitions. In a desperate attempt to undermine the effort and preserve what’s left of US hegemony, Washington aggressively lobbied its allies last year to refrain from supporting the effort. Then the UK decided to join calling the bank an “unrivaled opportunity.” That effectively opened the floodgates and in short order, a bevy of Western nations and close US allies suddenly reversed course and indicated they were likely to support the new institution. Here’s more:
With the deadline for applications fast approaching, news coverage has picked up markedly of late. Here’s Bloomberg* for instance:
China’s clout has been expanding for decades, as its rapid growth allowed it to snap up a rising share of the world’s resources, its exports penetrated global markets, and its bulging financial assets gave it power to make big individual loans and purchases. Now, the creation of international lending institutions is leveraging that economic influence closer to the political and diplomatic arenas, as U.S. allies defy America to back China’s initiative.
(…)
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Martin Zeis
globalcrisis/globalchange NEWS
martin.zeis@gmxpro.net

„Colossal Defeat“ For Obama As Australia Joins China’s Regional Bank

„Colossal Defeat“ For Obama As Australia Joins China’s Regional Bank
Having attacked its „closest ally“ UK for „constant accomodation“ with China (1), we suspect President Obama will be greatly displeased at yet another close-ally’s decision to partner up with the Chinese-led Asian Infrastructure Investment Bank (AIIB). As The Australian reports, „make no mistake,“ the decision by Australia’s Abbott government to sign on for negotiations to join China’s regional bank, foreshadowed by Tony Abbott at the weekend,  „represents a colossal defeat for the Obama administration’s incompetent, distracted, hamfisted diplomacy in Asia.“  (…)
*  *  *
As we have detailed recently, Australia is in trouble economically and its pivot to China makes perfect self-preservation sense… as Sheridan notes:
Obama treats allies shabbily and as a result he loses influence with them and then seems perpetually surprised at this outcome.
The Asian professionals in Washington regard the Obama administration as particularly ineffective in Asia.
The consensus is that the Obama White House is insular, isolated, inward-looking, focused on the President’s personal image and ineffective in foreign policy.
* * *
Britain and Australia might be too polite to tell the US straight up– “Look, you have $18.1 trillion in official debt, you have $42 trillion in unfunded liabilities, and you’re kind of a dick. I’m dumping you.”
So instead they’re going with the “it’s not you, it’s me” approach.
But to anyone paying attention, it’s pretty obvious where this trend is going.
It won’t be long before other western nations jump on the anti-dollar bandwagon with action and not just words.
*  *  *
Bottom line: this isn’t theory or conjecture anymore. Every shred of objective evidence suggests that the dollar’s dominance is coming to an end.
Notes
The bank, which will fund infrastructure projects across the region and may indeed be part and parcel of China’s implicit attempt to establish a Sino-Monroe Doctrine, represents “an unrivaled opportunity for the UK and Asia to invest and grow together,” according to Britain’s George Osborne. Unsurprisingly, the US doesn’t see it that way and although Washington was generously willing to concede that this was the UK’s decision to make for itself, US officials are clearly perturbed that Britain didn’t ask for permission …
David Cameron thinks about appeasing a country that is a possible threat to US hegemony, he really needs to ask first…
“[The decision was made with] virtually no consultation with the US.”   “We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power.” —  From FT, quoting a senior US Official
2  Simon BLACK: Et tu, Britain? United Kingdom to join China in the anti-dollar alliance; Sovereign Man, March 13, 2015 – URL: http://www.sovereignman.com/finance/et-tu-britain-united-kingdom-to-join-china-in-the-anti-dollar-alliance-16482
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Martin Zeis
globalcrisis/globalchange NEWS
martin.zeis@gmxpro.net

De-Dollarization: Russia Ratifies $100 Billion BRICS Bank

zerohedge, Feb 22, 2015 — http://www.zerohedge.com/news/2015-02-21/de-dollarization-russia-ratifies-100-billion-brics-bank

De-Dollarization: Russia Ratifies $100 Billion BRICS Bank

A BRICS Bank – as an IMF alternative and to enable nations to become less dependent on the global reserve currency – was originally discussed at The BRICS Summit in 2012. Then at the 2014 BRICS Summit, the framework for The BRICS Bank was approved as „a system of measures that would help prevent the harassment of countries that do not agree with some foreign policy decisions made by the United States and their allies.“ Headquartered in Shanghai and chaired by Russia, this week saw what appears to be the final step in the creation of BRICS New Deverlopment Bank as RT reports, The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa. It is expected to start fully functioning by the end of 2015. Isolated?

zerohedge, Feb 22, 2015 — http://www.zerohedge.com/news/2015-02-21/de-dollarization-russia-ratifies-100-billion-brics-bank

De-Dollarization: Russia Ratifies $100 Billion BRICS Bank

A BRICS Bank – as an IMF alternative and to enable nations to become less dependent on the global reserve currency – was originally discussed at The BRICS Summit in 2012. Then at the 2014 BRICS Summit, the framework for The BRICS Bank was approved as „a system of measures that would help prevent the harassment of countries that do not agree with some foreign policy decisions made by the United States and their allies.“ Headquartered in Shanghai and chaired by Russia, this week saw what appears to be the final step in the creation of BRICS New Deverlopment Bank as RT reports, The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa. It is expected to start fully functioning by the end of 2015. Isolated?

As RT reports,

The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa, and challenge the dominance of the Western-led World Bank and the IMF.

The New Development Bank is expected to start fully functioning by the end of 2015, according to the Russian Finance Ministry.

Russia has agreed to provide $2 billion dollars from the federal budget for the bank over the next seven years.

It will have three-tiers of corporate governance, with a Board of Governors, Board of Directors and a President.

The bank’s board of directors will hold its first meeting in Ufa in Russia in April. Russian Finance Minister Anton Siluanov is likely to become the bank’s first Chairman of the Board of Governors,according to Deputy Finance Minister Sergei Storchak talking on the Russia 24 TV channel.

The decision to establish the BRICS bank, along with a $100 billion reserve currency pool, was made in July 2014. Each of the five member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded to $100 billion.

The bank will be headquartered in Shanghai, India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will come from Brazil.

Simply put, as Sovereign Man’s Simon Black warns, „when you see this happen, you’ll know it’s game over for the dollar…. I give it 2-3 years.“

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Martin Zeis

globalcrisis/globalchange NEWS

martin.zeis@gmxpro.net