Wed, May 2, 2018Having abandoned any attempt to join the Western global political order, Russia seems to have quickly found a new self-image: as the center and core of the Eurasian supercontinent, it can reach in (…)
Martin Zeis 18.04.2018. 19:00
In einem seiner letzten Blogeinträge „Herzland, Weltinsel und die “Novichok”-Saga“ hat Mathias Bröckers zum wiederholten Mal auf die große geopolitische Konzeption hingewiesen, die in letzter Konsequenz den Aktionen Großbritanniens und der USA seit Anfang des 20. Jahrhunderts zugrunde liegt: die geopolitische „Heartland“-Theorie des britischen Geographen und Direktors der „London School of Economics“ Mackinder.
„Wer dieses Herzland, das Zentrum des eurasischen Kontinents beherrscht, beherrscht die Welt, so Mackinders These, und da durch die kommenden Technologien der Eisenbahnen und des Automobils der Handel und Wandel zwischen Europa und Asien unausweichlich sei, wäre das auf seiner Seeherrschaft beruhende britische Weltreich chancenlos, vor allem wenn das rohstoffreiche Russland mit dem industriestarken Deutschland zusammenwachse. »Wer Osteuropa regiert, beherrscht das Heartland; wer das Heartland regiert, beherrscht die Weltinsel; wer die Weltinsel regiert, beherrscht die Welt.«, brachte Mackinder seine Theorie 1919 auf den Punkt, nachdem er zuvor noch erfolglos versucht hatte, die Weiße Armee des Zaren gegen die von Deutschland finanzierten Bolschewiken Lenins aufzurüsten.“
Es geht verstärkt nach der Auflösung der Sowjetunion „noch immer um das Heartland (..), um Mackinders “Weltinsel”, die auf keinen Fall zusammen wachsen darf: mit der globalen Dominanz des anglo-amerikanischen Imperiums hat es ein Ende, wenn auf der Achse Paris – Berlin – Moskau – Peking Friede, Handel und Wandel ausbricht.
Dies mit Nadelstichen, Konfrontationen und Krieg zu verhindern steht nach wie vor auf der Agenda des Imperiums – und bildet auch den logischen Hintergrund von scheinbar irrsinnigen Operationen wie dieser ganzen “Novichok”-Saga …“
Herzland, Weltinsel und die “Novichok”-Saga
Wer die “Pivot Area”, den Drehpunkt beherrscht, beherrscht die Welt
In der aktuellen Ausgabe von “Lettre International” (No.120/Frühjahr 2018) ist erstmals auf Deutsch der Aufsatz „Der geographische Drehpunkt der Geschichte“ erschienen, den der britische Geograph und Direktor der “London School of Economics” 1904 veröffentlichte, der Schlüsseltext seiner geopolitischen “Heartland”-Theorie. Wer dieses Herzland, das Zentrum des eurasischen Kontinents beherrscht, beherrscht die Welt, so Mackinders These, und da durch die kommenden Technologien der Eisenbahnen und des Automobils der Handel und Wandel zwischen Europa und Asien unausweichlich sei, wäre das auf seiner Seeherrschaft beruhende britische Weltreich chancenlos, vor allem wenn das rohstoffreiche Russland mit dem industriestarken Deutschland zusammenwachse. »Wer Osteuropa regiert, beherrscht das Heartland; wer das Heartland regiert, beherrscht die Weltinsel; wer die Weltinsel regiert, beherrscht die Welt.«, brachte Mackinder seine Theorie 1919 auf den Punkt, nachdem er zuvor noch erfolglos versucht hatte, die Weiße Armee des Zaren gegen die von Deutschland finanzierten Bolschewiken Lenins aufzurüsten.
In “Wir sind die Guten” habe ich ausführlich über die Bedeutung dieses Grundlagentextes der westlichen Geopolitik und die Linien geschrieben, die sich von dort aus über Hitlers Geostrategen Karl Haushofer zu Zbiginew “Zbig To Jail” Brzezinski und die aktuelle Politik des US-Imperiums ziehen, das pünktlich 110 Jahre nach Mackinders Vortrag – und nicht zufällig an einem zentralen Achsenpunkt des “Heartlands” – einen Putsch in der Ukraine inszenierte. Über die Aktualität Mackinders schreibt in “Lettre” jetzt auch der Historiker Alfred McCoy, dessen eminentes Grundlagenwerk “Die CIA und das Heroin -Weltpolitik durch Drogenhandel” für ein Verständnis der aktuellen internationalen Konflikte und Kriege unverzichtbar ist. Ebenso wie eine Kenntnis der Generalstrategie im “Great Game”, die auf Mackinder zurückgeht und im geopolitischen Match auf dem “eurasischen Schachbrett” (Brzezinski) nach wie vor auf der Agenda steht.
Auf diesem Hintergrund kann man dann auch den ganzen Irrsinn der Tagesnachrichten ein wenig besser verstehen, etwa warum aus Afghanistan immer neue Produktionsrekorde für Opium und Heroin gemeldet werden, während in USA Tausende an dieser Überproduktion krepieren; oder warum eine Gas-Pipeline zwischen Russland und Deutschland (Nord Stream 2) ein “Problem” darstellen soll, während der ökonomische und ökologische Hochgrad-Schwachsinn, Fracking-Gas mit Riesentankern von Amerika nach Europa zu schippern, von der EU gefördert wird. Oder warum Polen sich von den USA für irrsinige Milliarden “Patriot”-Luftabwehr andrehen lässt, die “gegen die Russen” und ihre neuen Hyperschall-Raketen sowieso keine Chance haben. (…).
vollständiger Text abrufbar unter: https://www.broeckers.com/2018/04/07/herzland-weltinsel-und-die-novichok-saga
Anmerkung m.z.: Die seit 2013 öffentlich erklärte und zunehmend reale Konturen annehmende eurasische Entwicklungsstrategie/-Politik Chinas in engem Verbund mit Russland über Eisenbahnschnellverbindungen, Wirtschaftskorridore, Öl-/Gas-Pipelines, Seeverbindungen (auch über die arktische Nord-Ost-Passage) ganz Asien mit Europa eng zu vernetzen (Seidenstraßenprojekte zu Land und zu Wasser – OBOR – One Road – One Belt) zeigt an, dass die Eliten dieser Länder nach über einem Jahrhundert der Kriege, Spaltungen und Zerwürfnisse den Kern von Mackinders Weltbeherrschungs-Theorie verstanden haben und deshalb fortgesetzt auf immer erbitterteren Widerstand (militärisch, finanztechnisch, handelspolitisch) des Imperiums stoßen.
In einem kürzlich erschienenen Buch von Stefan Baron und Guangyan Yin-Baron „Die Chinesen – Psychogramm einer Weltmacht“ (Econ – Berlin 2018) schreiben die Autoren im Schlusskapitel „Konvergenz, Koexistenz oder Kampf der Kulturen?“ an die europäischen Eliten gerichtet u.a.:
„Besonders seit Trumps Amtsantritt sind in den USA Kräfte auf dem Vormarsch, die Peking wie einst Moskau niederringen und den endgültigen Sieg als Vormacht des westlichen Lagers und dominierende Weltmacht errichten wollen. ‚,Ich möchte’’ so der ehemalige Präsidentenberater Bannon gegenüber dem Economist, ,,dass die Welt in 100 Jahren zurückschaut und sagt, Chinas merkantilistisches, konfuzianisches System hat verloren. Der liberale jüdisch-christliche Westen hat gewonnen.“
Von Europa, insbesondere Deutschland verlangen die Autoren eine der Ostpoltik unter Brandt entsprechende Fernostpolitik, deren Ziel es sein müsse, „den geopolitischen Konflikt zwischen Peking und Washington zu entschärfen und zu verhindern, dass die Thukydides-Falle * zuschnappt oder es auch nur zu einem offenen Handelskrieg bzw. neuen Kalten Krieg kommt. Europa darf bei dem Ringen um die Weltordnung der Zukunft nicht an der Außenlinie verharren und dessen Ausgang abwarten, sondern muss Partei ergreifen. Partei für eine wahrhaft multipolare Ordnung: kein US-Monopol mehr, kein neues China-Monopol, auch kein Duopol von China und den USA, sondern eine Ordnung, die global für mehr Mitbestimmung, Wettbewerb und Gerechtigkeit sorgt und in der auch Deutschland und Europa weiter einen wichtigen Platz einnehmen.“ (Baron, a.a.O., S. 419 – 421)
* In Anlehnung an den „Peloponnesischen Krieg, in dem das um seine Vormachtstellung fürchtende Sparta im Altertum das aufsteigende Athen zerstörte und ganz Griechenland ruinierte. „Was den Krieg unvermeidlich machte, war der Aufstieg Athens und die Angst, die das in Sparta hervorrief“, so der griechische Geschichtsschreiber Thukydides. Diese Konstellation wird daher als „Thukydides-Falle“ bezeichnet. (vgl. Baron, a.a.o., S 12 ff)
Martin Zeis, 15.09.2017
Gold Oil Dollars Russia and China
We Should Take the Latest China-Russia Challenge to the Dollar Seriously
Wall Street and Washington are not amused, but they are powerless to stop it.
By F. William ENGDAHL
William Engdahl is one of the best in the world on this subject. He has been writing about the world monetary system for decades, and few writers have the wealth of insight and experience in the subject that he has. What Engdahl says, matters.
The 1944 Bretton Woods international monetary system as it has developed to the present is become, honestly said, the greatest hindrance to world peace and prosperity.
Now China, increasingly backed by Russia—the two great Eurasian nations—are taking decisive steps to create a very viable alternative to the tyranny of the US dollar over the world trade and finance.
Wall Street and Washington are not amused, but they are powerless to stop it.
Shortly before the end of the Second World War, the US Government, advised by the major international banks of Wall Street, drafted what many mistakenly believe was a new gold standard. In truth, it was a dollar standard in which every other member currency of the International Monetary Fund countries fixed the value of their currency to the dollar. In turn, the US dollar was fixed then to gold at a value equal to 1/35th of an ounce of gold. At the time Washington and Wall Street could impose such a system as the Federal Reserve held some 75% of all world monetary gold as a consequence of the war and related developments. Bretton Woods established the dollar which then became the reserve currency of world trade held by central banks.
Death Agony of a Defective Dollar Standard
By the end of the 1960’s with soaring US Federal budget deficits from costs of the Vietnam War and other foolish spending, the dollar standard began to show its deep structural flaws. A recovered Western Europe and Japan no longer needed billions of US dollars for financing reconstruction. Germany and Japan had become world class export economies with higher efficiency than US manufacturing owing to a growing obsolescence of US basic industry from steel to autos and basic infrastructure. Washington should then have significantly devalued the dollar against gold in order to correct the growing world trade imbalance. Such a dollar devaluation would have boosted US manufacturing export earnings and reduced the trade imbalances. It would have been a huge pus for the real US economy. However for Wall Street banks it spelled huge losses. So instead, the Johnson and then Nixon administrations printed more dollars and in effect exported inflation to the world.
The central banks of especially France and Germany reacted to the deafness in Washington by demanding US Federal Reserve gold for their US dollar reserves at $35 per unce s in the Bretton Woods 1944 agreement. By August 1971 the redemption of gold for inflated US dollars had reached a crisis point where Nixon was advised by a senior Treasury official, Paul Volcker, to rip up the Bretton Woods system.
By 1973 gold was allowed by Washington to trade freely and was no longer the backing of a sound US dollar. Instead, an engineered oil price shock in October 1973 that sent the dollar price of oil higher by 400% in a matter of months, created what Henry Kissinger then called the petrodollar.
The world needed oil for the economy. Washington, in a 1975 deal with the Saudi monarchy, insured that Arab OPEC would refuse to sell one drop of their oil to the world for any currency other than US dollars. The value of the dollar soared against other currencies such as the German Mark or Japanese Yen. Wall Street banks were awash in petrodollar deposits. The dollar casino was open and running, and the rest of the world was being fleeced by it.
In my book, Gods of Money: Wall Street and the Death of the American Century, I detail how the major New York international banks such as Chase, Citibank and Bank of America used the petrodollars then to recycle Arab oil profits to oil-importing countries in the developing world during the 1970’s, laying the seeds for the so-called Third World Debt Crisis. Curiously, it was the same Paul Volcker, a protégé of David Rockefeller and Rockefeller’s Chase Manhattan Bank, who this time, in October, 1979 as Chairman of the Fed, triggered the 1980s debt crisis by pushing Fed interest rates through the roof. He lied and claimed it was to nip inflation. It was to save the dollar and the Wall Street banks.
Today, the dollar is a strange phenomenon to put it mildly. The United States since 1971 has gone from being a premier industrial nation to a giant debt-bloated casino of speculation.
With Fed Funds interest rates between zero and one percent the past nine years—unprecedented in modern history—the major banks of Wall Street, the ones whose financial malfeasance and murderous greed created the 2007 Subprime crisis and its 2008 global financial Tsunami, set about to build a new speculative bubble. Rather than lend to debt-bloated cities for urgently-needed infrastructure or other productive avenues of the real economy, instead they created another colossal bubble in the stock market. Major companies used cheap credit to buy their own stocks back, thereby spurring the stock prices on Wall Street exchanges, a rise fed by hype and myths about “economic recovery.” The S&P-500 stock index rose by 320% since the end of 2008. I can assure you those paper stock rises are not because the real US economy has grown 320%.
American households earn less in real terms each year over decades. Since 1988 median household income has been stagnant amid steadily rising inflation, a declining real income. They must borrow more than ever in history. Federal Government debt is at an unmanageable $20 trillion with no end in sight. American industry has been closed and production shipped offshore, “outsourced” is the euphemism. Left behind is a high-debt, rotted out “service economy” where millions work two even three part-time jobs just to keep afloat.
The only factor keeping the dollar from total collapse is the US military and Washington’s deployment of deceptive NGOs around the world to facilitate plundering of the world economy.
So long as Washington dirty tricks and Wall Street machinations were able to create a crisis such as they did in the Eurozone in 2010 through Greece, world trading surplus countries like China, Japan and then Russia, had no practical alternative but to buy more US Government debt—Treasury securities—with the bulk of their surplus trade dollars. Washington and Wall Street smiled. They could print endless volumes of dollars backed by nothing more valuable than F-16s and Abrams tanks. China, Russia and other dollar bond holders in truth financed the US wars that were aimed at them, by buying US debt. Then they had few viable alternative options.
Viable Alternative Emerges
Now, ironically, two of the foreign economies that allowed the dollar an artificial life extension beyond 1989 – Russia and China – are carefully unveiling that most feared alternative, a viable, gold-backed international currency and potentially, several similar currencies that can displace the unjust hegemonic role of the dollar today.
For several years both the Russian Federation and the Peoples’ Republic of China have been buying huge volumes of gold, largely to add to their central bank currency reserves which otherwise are typically in dollars or euro currencies. Until recently it was not clear quite why.
For several years it’s been known in gold markets that the largest buyers of physical gold were the central banks of China and of Russia. What was not so clear was how deep a strategy they had beyond simply creating trust in the currencies amid increasing economic sanctions and bellicose words of trade war out of Washington.
Now it’s clear why.
China and Russia, joined most likely by their major trading partner countries in the BRICS (Brazil, Russia, India, China, South Africa), as well as by their Eurasian partner countries of the Shanghai Cooperation Organization (SCO) are about to complete the working architecture of a new monetary alternative to a dollar world.
Currently, in addition to founding members China and Russia, the SCO full members include Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and most recently India and Pakistan. This is a population of well over 3 billion people, some 42% of the entire world population, coming together in a coherent, planned, peaceful economic and political cooperation.
If we add to the SCO member countries the official Observer States—Afghanistan, Belarus, Iran and Mongolia, states with expressed wish to formally join as full members, a glance at the world map will show the impressive potentials of the emerging SCO. Turkey is a formal Dialogue Partner exploring possible SCO membership application, as are Sri Lanka, Armenia, Azerbaijan, Cambodia and Nepal. This, simply said, is enormous.
BRI and a Gold-Backed Silk Road
Until recently Washington think tanks and the Government have sneered at the emerging Eurasian institutions such as SCO. Unlike BRICS which is not made up of contiguous countries in a vast land-mass, the SCO group forms a geographic entity called Eurasia. When Chinese President Xi Jinping proposed the creation of what then was called the New Economic Silk Road at a meeting in Kazakhstan in 2013, few in the West took it seriously. The name officially today is the Belt, Road Initiative (BRI). Today, the world is beginning to take serious note of the scope of the BRI.
It’s clear that the economic diplomacy of China, as of Russia and her Eurasian Economic Union group of countries, is very much about realization of advanced high-speed rail, ports, energy infrastructure weaving together a vast new market that, within less than a decade at present pace, will overshadow any economic potentials in the debt-bloated economically stagnant OECD countries of the EU and North America.
What until now was vitally needed, but not clear, was a strategy to get the nations of Eurasia free from the dollar and from their vulnerability to further US Treasury sanctions and financial warfare based on their dollar dependence. This is now about to happen.
At the September 5 annual BRICS Summit in Xiamen, China Russian President Putin made a simple and very clear statement of the Russian view of the present economic world. He stated, “Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.” To my knowledge he has never been so explicit about currencies. Put this in context of the latest financial architecture unveiled by Beijing, and it becomes clear the world is about to enjoy new degrees of economic freedom.
China Yuan Oil Futures
further see attachment (pdf)
Martin Zeis, Sep 07, 2017
below wellknown „Roving Eye“ Pepe Escobar boils the landmark Xiamen-BRICS-move – challenging the USD-hegemony – down to an essence.
More substantial articles relating to the Korea-Crisis, the geopolitical shift in the Pacific Rim and the importance of the Shanghai/Hongkong-established Crude-Oil-Yuan-Gold-Futures see:
Three Dangerous Delusions About Korea
By James Jatras, Sep 02, 2017
Proposal for a Lasting Korea Peace Agreement: Signing of a Bilateral North-South Korea Peace Treaty
By Prof Michel Chossudovsky
Global Research, September 05, 2017
America’s Financial War Strategy
By Alasdair Macleod, May 02, 2017
China Readies Yuan-Priced Crude Oil Benchmark Backed By Gold
By Tsvetana Paraskova – Sep 01, 2017
Greets, Martin Zeis
05.09.2017 — http://www.atimes.com/article/real-brics-bombshell/
The real BRICS bombshell
Putin reveals ‚fair multipolar world‘ concept in which oil contracts could bypass the US dollar and be traded with oil, yuan and gold
By Pepe Escobar
The annual BRICS summit in Xiamen – where President Xi Jinping was once mayor – could not intervene in a more incandescent geopolitical context.
Once again, it’s essential to keep in mind that the current core of BRICS is “RC”; the Russia-China strategic partnership. So in the Korean peninsula chessboard, RC context – with both nations sharing borders with the DPRK – is primordial.
Beijing has imposed a definitive veto on war – of which the Pentagon is very much aware.
Pyongyang’s sixth nuclear test, although planned way in advance, happened only three days after two nuclear-capable US B-1B strategic bombers conducted their own “test” alongside four F-35Bs and a few Japanese F-15s.
Everyone familiar with the Korean peninsula chessboard knew there would be a DPRK response to these barely disguised “decapitation” tests.
So it’s back to the only sound proposition on the table: the RC “double freeze”. Freeze on US/Japan/South Korea military drills; freeze on North Korea’s nuclear program; diplomacy takes over.
The White House, instead, has evoked ominous “nuclear capabilities” as a conflict resolution mechanism.
Gold mining in the Amazon, anyone?
On the Doklam plateau front, at least New Delhi and Beijing decided, after two tense months, on “expeditious disengagement” of their border troops. This decision was directly linked to the approaching BRICS summit – where both India and China were set to lose face big time.
Indian Prime Minister Narendra Modi had already tried a similar disruption gambit prior to the BRICS Goa summit last year. Then, he was adamant that Pakistan should be declared a “terrorist state”. The RC duly vetoed it.
Modi also ostensively boycotted the Belt and Road Initiative (BRI) summit in Hangzhou last May, essentially because of the China-Pakistan Economic Corridor (CPEC).
India and Japan are dreaming of countering BRI with a semblance of connectivity project; the Asia-Africa Growth Corridor (AAGC). To believe that the AAGC – with a fraction of the reach, breath, scope and funds available to BRI – may steal its thunder, is to enter prime wishful-thinking territory.
Still, Modi emitted some positive signs in Xiamen; “We are in mission-mode to eradicate poverty; to ensure health, sanitation, skills, food security, gender equality, energy, education.” Without this mammoth effort, India’s lofty geopolitical dreams are D.O.A.
Brazil, for its part, is immersed in a larger-than-life socio-political tragedy, “led” by a Dracula-esque, corrupt non-entity; Temer The Usurper. Brazil’s President, Michel Temer, hit Xiamen eager to peddle “his” 57 major, ongoing privatizations to Chinese investors – complete with corporate gold mining in an Amazon nature reserve the size of Denmark. Add to it massive social spending austerity and hardcore anti-labor legislation, and one’s got the picture of Brazil currently being run by Wall Street. The name of the game is to profit from the loot, fast.
The BRICS’ New Development Bank (NDB) – a counterpart to the World Bank – is predictably derided all across the Beltway. Xiamen showed how the NDB is only starting to finance BRICS projects. It’s misguided to compare it with the Asian Infrastructure Investment Bank (AIIB). They will be investing in different types of projects – with the AIIB more focused on BRI. Their aim is complementary.
‘BRICS Plus’ or bust
On the global stage, the BRICS are already a major nuisance to the unipolar order. Xi politely put it in Xiamen as “we five countries [should] play a more active part in global governance”.
And right on cue Xiamen introduced “dialogues” with Mexico, Egypt, Thailand, Guinea and Tajikistan; that’s part of the road map for “BRICS Plus” – Beijing’s conceptualization, proposed last March by Foreign Minister Wang Yi, for expanding partnership/cooperation.
A further instance of “BRICS Plus” can be detected in the possible launch, before the end of 2017, of the Regional Comprehensive Economic Partnership (RCEP) – in the wake of the death of TPP.
Contrary to a torrent of Western spin, RCEP is not “led” by China.
Japan is part of it – and so is India and Australia alongside the 10 ASEAN members. The burning question is what kind of games New Delhi may be playing to stall RCEP in parallel to boycotting BRI.
Patrick Bond in Johannesburg has developed an important critique, arguing that “centrifugal economic forces” are breaking up the BRICS, thanks to over-production, excessive debt and de-globalization. He interprets the process as “the failure of Xi’s desired centripetal capitalism.”
It doesn’t have to be this way. Never underestimate the power of Chinese centripetal capitalism – especially when BRI hits a higher gear.
Meet the oil/yuan/gold triad
It’s when President Putin starts talking that the BRICS reveal their true bombshell. Geopolitically and geo-economically, Putin’s emphasis is on a “fair multipolar world”, and “against protectionism and new barriers in global trade.” The message is straight to the point.
The Syria game-changer – where Beijing silently but firmly supported Moscow – had to be evoked; “It was largely thanks to the efforts of Russia and other concerned countries that conditions have been created to improve the situation in Syria.”
On the Korean peninsula, it’s clear how RC think in unison; “The situation is balancing on the brink of a large-scale conflict.”
Putin’s judgment is as scathing as the – RC-proposed – possible solution is sound; “Putting pressure on Pyongyang to stop its nuclear missile program is misguided and futile. The region’s problems should only be settled through a direct dialogue of all the parties concerned without any preconditions.”
Putin’s – and Xi’s – concept of multilateral order is clearly visible in the wide-ranging Xiamen Declaration, which proposes an “Afghan-led and Afghan-owned” peace and national reconciliation process, “including the Moscow Format of consultations” and the “Heart of Asia-Istanbul process”.
That’s code for an all-Asian (and not Western) Afghan solution brokered by the Shanghai Cooperation Organization (SCO), led by RC, and of which Afghanistan is an observer and future full member.
And then, Putin delivers the clincher;
“Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.”
“To overcome the excessive domination of the limited number of reserve currencies” is the politest way of stating what the BRICS have been discussing for years now; how to bypass the US dollar, as well as the petrodollar.
Beijing is ready to step up the game. Soon China will launch a crude oil futures contract priced in yuan and convertible into gold.
This means that Russia – as well as Iran, the other key node of Eurasia integration – may bypass US sanctions by trading energy in their own currencies, or in yuan.
Inbuilt in the move is a true Chinese win-win; the yuan will be fully convertible into gold on both the Shanghai and Hong Kong exchanges.
The new triad of oil, yuan and gold is actually a win-win-win. No problem at all if energy providers prefer to be paid in physical gold instead of yuan. The key message is the US dollar being bypassed.
RC – via the Russian Central Bank and the People’s Bank of China – have been developing ruble-yuan swaps for quite a while now.
Once that moves beyond the BRICS to aspiring “BRICS Plus” members and then all across the Global South, Washington’s reaction is bound to be nuclear (hopefully, not literally).
Washington’s strategic doctrine rules RC should not be allowed by any means to be preponderant along the Eurasian landmass. Yet what the BRICS have in store geo-economically does not concern only Eurasia – but the whole Global South.
Sections of the War Party in Washington bent on instrumentalizing India against China – or against RC – may be in for a rude awakening. As much as the BRICS may be currently facing varied waves of economic turmoil, the daring long-term road map, way beyond the Xiamen Declaration, is very much in place. — emphasis, zerohedge —
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.
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”
Martin Zeis 13.05.2017
Tomorrow the two-day Belt and Road Forum for International Cooperation is starting in Beijing. Representatives from more than a hundred nations will converge in Beijing and most of them are from the 120-nation Non-Aligned Movement (NAM).
„Of course we will have Vladimir Putin, representing the Russia-China strategic partnership (BRICS, SCO) that spans everything from energy to infrastructure projects (including the future Trans-Siberian high-speed rail). But, crucially, we will also have Pakistani Prime Minister Nawaz Sharif and Turkish president Recep Tayyip Erdoğan, leaders of two key hubs of OBOR/BRI.
Most of the West still needs a weatherman to see which way the wind is blowing. And a lot of Western media revel in dismissing OBOR/BRI as a conspiracy, a “scheme”, or a Chinese attempt to “encircle” Eurasia. Only one G7 leader will be in Beijing; Italian Prime Minister Paolo Gentiloni, who is very keen to investigate symbiotic links between Italy’s Industry 4.0 program and China’s Made in China 2025 manufacturing initiative.
Angela Merkel might have turned down her invitation but it doesn’t really matter as German industrialists are all for OBOR/BRI.“ (1)
In an article „China widens its Silk Road to the world“ Escobar specifies the geopolitical/geoeconomic implications of this connectivity project — spanning 65 nations, 60% of the world’s population and a third of global economic output.
Escobar is one of the few world famous journalists covering the New Silk Roads since they were first announced in 2013. (2)
(1) Asia Times 13.05.2017 – see attachment (pdf) and URL: http://www.atimes.com/article/china-widens-silk-road-world
(2) Pepe Escobar: New Silk Roads and an Alternate Eurasian Century; TomDispatchOctober 5, 2014 URL: http://www.tomdispatch.com/post/175903/tomgram%3A_pepe_escobar%2C_new_silk_roads_and_an_alternate_eurasian_century/#more