All posts by Peter Koenig

Will the IMF, FED, Negative Interest and Digital Money Kill the Western Economy?

The IMF, has been instrumental in helping destroying the economy of a myriad of countries, notably, and to start with, the new Russia after the fall of the Soviet Union, Greece, Ukraine and lately Argentina, to mention just a few. Madame Christine Lagarde, as chief of the IMF had a heavy hand in the annihilation of at least the last three mentioned. She is now taking over the Presidency of the European Central Bank (ECB). There, she expects to complete the job that Mario Draghi had started but was not quite able to finish: Further bleeding the economy of Europe, especially southern Europe into anemia.

Let’s see what we may have in store to come.

Negative interest, we have it already. It’s the latest banking fraud stealing money from depositors to give to large borrowers. It’s a reverse cross-subsidy, the poor financing the rich. That’s the essence. It’s a new form of moving money from the bottom to the top. Now, a Danish bank has launched the world’s first negative interest rate mortgage. It provides mortgages to home owners for a negative rate of 0.5%. The bank pays borrowers to take some money off their books. Of course, as usual, only relatively well-off people can become home owners and benefit from this reverse cross-subsidy. It is a token gesture, duping the public at large into believing that they are benefitting from the new banking stint. The bulk of such operations serve large corporations.

The borrower pays back less than the full loan amount. Switzerland may soon go into the direction of Denmark. Bank deposits with central banks pay negative interest almost everywhere in the western world, except in the US – yet. It’s only a question of time until the average consumer will have to reimburse the banks for their central bank deposit expenses, meaning, the customers are getting negative interest on their deposits. That’s inflation camouflage. A sheer fraud, but all made legal by a system that runs amok, that does not follow any ethics or legal standards. A totally deregulated western private banking system, compliments of the 1990s Clinton Administration, and, of course, his handlers. As Professor Michael Hudson calls it, financial barbarism. We are haplessly enslaved in this aberrant ever more abusive private  fiat money banking shenaniganism.

RT’s Max Keiser recently interviewed Karl Denninger of Market-Ticker.org. Denninger told Keiser:

Negative yielding bond is forced inflationary instrument: you buy it, you’re guaranteed inflation in the amount of a negative yield.

He blasted the tool as plain “theft” by any government that issues these bonds, which is done in an effort to nominally expand a country’s GDP.

If the government is issuing more in sovereign debt their GDP is expanding in nominal terms. If you have negative interest rates on those government bonds, you’re creating excess space for the government to run the fiscal deficit […] in excess of GDP expansion. Nobody in any civilized nation should allow this to happen because it is theft, on the scale of that differential, from everybody in the economy,

To make sure the little saver doesn’t think about depositing his savings under his mattress or in a hole in the ground instead of bringing it to the bank, money will be digitized and cash will disappear. Madame Lagarde has already more than hinted at that, when she gave a pre-departure speech at the IMF – explaining on how she sees the future of monetary banking. The future, according to her, being no more than 15 to 20 years away, is a no-cash society. Just enough time for the elder generations, those that may still feel an instinct of rejection and have some consciousness about personal privacy, those that may resist money digitization, may have died out. The young, up-and-coming age groups may be brainwashed enough to find a cashless society so cool.

Since Madame Lagarde is moving to head the ECB in Frankfurt, it is fair to assume that Europe will be one of the largest test grounds for digitized money; i.e., towards a cashless society. In fact, it is already a test ground. Many department stores and other shops in Nordic countries — Sweden, Norway, Denmark, Finland — do no longer accept cash, only electronic money. In Denmark already up of 80% of all monetary transactions are made digitally.

Imagine, for your chewing gum wrapper, pack of cigarette, or candy bar, you swipe a card in front of an electronic eye, and bingo, you have paid, not touching any money – “that’s mega cool!”.  That’s what the young people may think, oblivious to leaving a trail of personal data behind, among them their bank account details, their GPS-geared location, what they are shopping, a pattern of data that is in ten years-time expected to amount to about 70,000 points of information about an individual’s characteristics, emotions, preferences, photos, personal contacts… what Cambridge Analytica in the superb documentary “The Great Hack” revealed as already today on average 5,000 points of data per citizen. The system will know you inside out better than you know yourself. And you will be exposed to algorithms that know exactly how to influence every action, every move of yours. Cool!

That, combined with face recognition which is advancing rapidly around the globe, will be super cool.

A horrendous trial on how an entire country, India, with the world’s second largest population, may react to demonization, was introduced in 2016 by President Modi, bending to the pressure of the western financial system, with support of the IMF and implementation funding by USAID. It amounted in a disastrous and cruel demonetization, invalidating almost over-night the most popular 100 Rupee (Rs) bank note, replacing it with a 200 Rs note which in most places, especially in rural towns, where banks are scarce, was not available. Never mind that less than half of the Indian population has a bank account, where the bank note exchange transactions had to be carried out.

The sudden disappearance of the most popular bank note – more than 80% of all monetary cash transactions in India took place in 100 Rs notes – was a proxy to digitization of money. Countless people starved to death especially in rural areas, because their 100 Rs were declared worthless and became unacceptable to buy food.

The 340,000 citizens of Iceland have already a fully digitized e-ID, now moving towards a mobile ID; i.e., accessible through your smart phone uniting every possible data that belongs to you, from medical records to insurance policies, all the way to dog, cat and car registrations. You name it. Most say they trust their government and are not unhappy with their divulging their most intimate data. Many have no or little idea, though, to what extent the private sector is involved in setting up such a hermetic countrywide data bank for the government. Even if the regulator is within the government and you trust your government, how much can you trust the profit-oriented private sector in protecting your data?

The surveillance state that you, among other clandestine intrusions into your privacy, will allow by willy-nilly accepting digitization of money, and eventually digitization of your entire private data, pales Orwell’s imagination of “1984”. Every citizen is registered in every western “security agency’s” electronic data bank, and, of course, those of the empire and Middle East affiliate, Israel, CIA, NSA, FBI, Mossad, and so on.  No escaping anymore.

It just so happens that you, dear citizen, are oblivious to all of what is going on behind your back, since your attention will be captured by massive marketing and directed towards the nefarious machinations of the corporate elite-ruled, globalized world, making you an eternal and ever-more intense consumer. You must spend the last penny of your income on trendy stuff, all those fashion things that will be pumped non-stop day-in-day-out into your brain, what’s left of it, by propaganda on television, radio, electronic cartoon-like billboards, internet, and that at every turn you take. And let’s not forget sports events.  They increase every year and are the most direct deviation tactic take-over from the Roman Empire.

The most aberrant trends will be cool, like shredded jeans, for which you pay a premium, body-paintings called tattoos, footballer hair styles, because they are fashionable and your looks are key to fit into a standardized, globalized society that has seized thinking for itself, no more interest in politics, in what your non-democratically elected representatives decide for you. It’s what Noam Chomsky calls the marginalization of the populace.

You are made to believe that you are living in a democracy where you can do what you want, shop what you want, watch what you want, and even when the elections or occasional referenda are offered to request your opinions, you are cheated into believing your choice is free. Of course, it is not. It is all programmed. Algorithms drawing on your profile of 70,000 points of information on emotions, desires and dreams, will clandestinely help the ‘system’ to enslave, cheat and master you, and you won’t even notice.

That’s where we are headed, largely thanks to digitalization of money – but not only, because surveillance will also follow all your steps on internet, on Facebook, Twitter, Instagram, Whatsapp – and many more of those especially created marketing tools, implanted in societies’ social media, that make life and communication so much easier.

And there is more to digital money. Much more. In 2014, the unelected European Commission (EC) has put on its books of regulations, following a similar decree in the US, the rule that an overextended bankrupt too-big-to-fail private bank will no longer be rescued by the state, by your tax money – which used to be called a “bail-out”. Instead, there will be “bail-ins”, meaning that the bank will seize your deposits, your savings and sanitize itself with money stolen from you. You have no choice. There will be no ‘run on the banks’  because there is no cash to withdraw. We have seen signs of this when Greece collapsed after 2010, and cash machines spitting out no more than 20 € per day, if at all. For many Greek citizens, especially the poorer class living from day to day, this meant often cruel starvation.

Bail-ins are little talked about, but they happen already today and ever more so. In 2014, the Austrian bank Hypo Alpe Adria – the Heta Asset Resolution AG, was given green light by the Austrian Banking Regulator, the Austrian Financial Market Authority (FMA), to refinance itself by a so-called “haircut” of an average 54%, meaning, stealing 54% of depositors’ money.

But the first and largest “haircut” test took place in Cyprus, when in 2013 the Bank of Cyprus depositors lost about 47.5% in a “haircut” to bail out their bank. Of course, the big sharks were forewarned, so they could withdraw their money in time and transfer it abroad.1

It could get worse. The state, tax authority, an institution, a corporation says you owe them money which you deny, possibly for a good reason, but they have access to your bank account and just seize the amount they pretend is their due. You are powerless against these tyrannical monsters and may have to hire expensive legal service to get your stolen money back if at all. Because the “system” is run by the “system”. And once that level has been reached, a form of Full Spectrum Dominance, a key target of the PNAC (Plan for a New American Century), there is hardly any escaping. That has all happened already, in front of our publicity-blinded eyes, little spoken about, the trend is growing and this even without necessarily a digitized world.

Is it that the kind of society you want?

Then there are the rather prominent gurus who bet on gold and bitcoins to replace the faltering dollar, like a last-ditch solution. None of them is any more viable than the fiat dollar. Gold is highly volatile due to its vulnerability for manipulation – as it is largely controlled by the BIS (Bank for International Settlement, in Basle, Switzerland, also called the central bank of all central banks, and yes, the same bank that helped the FED finance Hitler’s war against the Soviet Union.  (So you see where this bank is coming from.) It is entirely privately owned and largely controlled by the Rothschild clan. And as an associated side note — few people talk about it — there is in excess of 100 times more paper gold in circulation than you could ever cash in, if you needed it. It is another one of those bank-invented ‘derivative’ bubbles that will explode and serve to enrich them when the time is ripe.

Bitcoins, the most prominent of some 3,000 to 4,000 cryptocurrencies flooding the world, is totally unreliable. A year after it was created in 2008 allegedly by an unknown person or group of people using the name Satoshi Nakamoto, bitcoin’s value in 2009 was US$ 0.08, It gradually rose and eventually jumped in December 2017 briefly above US$ 20,000, but dropped within a year to about US$ 3,500. Today bitcoin is hovering around US$ 9,500 (August/September 2019). Bitcoin – along with other cryptocurrencies – is highly speculative, lends itself to Mafia-type money-laundering and other fraudulent transactions. It is about equivalent to fiat money and certainly inept to be the backing for a monetary system.

And let’s not forget, the latest Facebook initiative — a cryptocurrency, the Libra, to be launched in 2020 out of Geneva, Switzerland – is expected to dominate within a few years 70% to 80% of the international money market. You see, the same clan that has been manipulating and cheating you with the dollar, is now ‘banking’ on you falling for the Facebook currency  as it will be so easy to use your smart phone for any kind of monetary transaction, thus, avoiding traditional predatory banking. Looks like a good thing at the outside – right? – Nope! It’s entirely privately owned and run by an unscrupulous mafia that is being set up to continue milking the masses for the benefits of an ever-smaller elite.

There is ,however, a role for blockchain cryptocurrencies, to circumvent private banking, those that are government controlled and regulated. China and Russia are about to launch their government-controlled cryptocurrencies and others – Iran, Venezuela, India – are following in the same steps. But they all ban privately run cryptocurrencies in their countries and rightly so. A combination of government-regulated blockchain cryptos and public banking, where no private profits are in the fore, but rather the well being of the citizen and the country’s economy, may be a viable solution into a new monetary scheme, protected from the kleptocracy of western banking.

Desperation about the dollar losing its world hegemony is growing – and growing fast. To salvage the western fiat monetary system, Madame Lagarde and others are also talking about some kind of Special Drawing Rights (SDR) to replace the dollar as a reserve currency, since there is no escaping – the dollar as reserve currency is doomed. The current IMF SDR basket consists of five currencies, the US-dollar (weighing 41.73%), the British Pound (8.02%) the Euro (30.93%), the Japanese Yen (8.33%) and since 2017 the Chinese Yuan, the currency of the world’s largest economy compared by Purchasing Power GDP (10.92%).

At this point thinking of any reshuffling of the SDR basket’s contents is purely speculative. However, it can easily be assumed that the dollar would remain in a very prominent position within the basket, as it should remain the leading hegemon of world economy. Let’s not forget, the US Treasury controls the IMF with an absolute veto, in other words, 100%. It can also be assumed that the Chinese Yuan would either be kicked out altogether or would be given a minor weight in the basket so to diminish its role. If this was to become the chosen option by the US Treasury, it could and probably might prompt China to withdraw the Yuan from the SDR basket, as the Yuan does no longer need SDR recognition in the world to be considered a primary reserve currency.

Unless this is stealthily done — outside of public sight and in disguise of countries still holding major US-dollar reserves — the world would unlikely accept such an alternative, especially since it is widely known among treasurers of countries around the globe that the Chinese Yuan is rapidly raising to become the key world reserve currency.

As reported by William Engdahl’s analytical essay “Is the Fed Preparing to Topple the US Dollar?”, the outgoing Governor of the Bank of England, Mark Carney, delivered at the recent annual meeting of central bankers in Jackson Hole, Wyoming, a set of ideas that went into a similar direction, towards a shift away from the dominant role of the US dollar as a reserve currency. Similar to Mme. Lagarde’s earlier remarks about an SDR-type reserve currency, he made it understood that though the Chinese Yuan, the currency of the key trading nation, may have a role in the basket, it would – for now – not be an important one. He also was clear about the current disturbing and destabilizing imbalance where a faltering dollar still pretends to hold the hegemonic scepter over the world economy.

Keeping the dollar still in a leading role, while the US economy is declining, was no longer a viable option for an increasingly globalized world economy. Carney was hinting at a multipolar monetary and reserve system for a multipolar globalized world. Similar remarks came from former New York Federal Reserve Bank chief, Bill Dudley. However, Dudley, hinted that for the United States to give up her dollar dominance, the backbone for her world hegemony, may not come voluntarily. Might that lead to a major, maybe armed world conflict?

Much of this is speculation from the western perspective. It is, however, clear that there is a tremendous and mounting uneasiness about the western dollar-based fiat monetary system, backed by nothing, not even by the western economy. You compare this with the Chinese Yuan and the Russian Ruble, both backed by gold and – more importantly – by their own economy. It becomes increasingly clear that much of the speculation and efforts by influential central banking figures to save the western monetary Ponzi scheme maybe just propaganda to calm the minds of western financiers – holding them back from jumping ship.

• First published in New Eastern Outlook (NEO)

  1. See: Peter Koenig: “Infringing upon the Eurozone’s Sovereignty on behalf of Wall Street.  The EBC’s “Haircut” Measures, Undermining Trade and Investment with Russia and China“, Global Research, November 7, 2015; and Peter Koenig, “Retrenchment, Robotization and Crypto-Currencies: The Runaway Train Towards Full Digitization of Money and Labor“, Global Research, December 27, 2017.

G7: The Cost of Uselessness

The G7 Summit is an obsolete, useless talking shop, as Finnian Cunningham so adroitly says. RT calls it The Unbearable Pointlessness of G7. Canada, France, Germany, Italy, Japan, UK, and the United States constitute the G7 gang. It should strike any logical thinker as extremely odd that the world’s largest economy (by purchasing parity-based GDP), China, is not part of the club. Why is that?  It’s clear.  The club is for western turbo-capitalist ideologues only; the self-proclaimed world hegemons.

Yes, the G7 are, no doubt, a useless talking shop – and much worse. These seven self-nominated leaders of the world are also among the greatest war criminals of the globe. They are involved in, and initiate, conflicts and wars that have in the last 20 years, roughly since 9/11 gave them a ‘free pass’ to raise in the name of fighting endless terrorism havoc around the globe, killed an estimated 15 to 20 million people, either directly or by proxy and mercenary armies.

That is, of course, much worse than uselessness.

Does anyone ever talk about the value and cost, of these ‘summits’?  The value; i.e., the output, is at best zero and in most cases negative. These conferences highlight conflicts, create new ones and add to the fire that was just smoldering. And I am not talking about the Brazilian Amazon fires. This was the case of the G7 in Biarritz. The high-ranking delegates were insulting each other, plus, as this was not enough, barbs were thrown back and forth across the Atlantic between Macron and Bolsonaro. That just shows about what level of human consciousness we are talking.

Trump was confusing the lot, or those who paid any attention to the outbursts of the creator of pure chaos, more tariffs on Chinese goods, then not, then again, levying tariffs for French wines, new sanctions against Iran, Venezuela, threats of new aggressions and even war with Iran; and surprise-surprise “Kim Jon-un, North Korea’s President, is a friend”. Peace talks were not even on the back-burner. So, it would be fair to say, the benefits or values of this summit were less than zilch, they were negative. It was a laughable propaganda stint, but an expensive one at that.

Defining the costs of the event is a rather complex algorithm. However, any cost for an event that produces a sum of negative values, is money thrown into a bottomless pit. The costs, of course, do not just amount to travel, lodging, good food and drink. They include for starters also the entire entourage of the megalo-politicians, police and military security. Biarritz alone was protected by about 20,000 police and military troops combined. They shielded the worldly leaders (sic) from anti-G7 / anti-establishment demonstrators.

Protests are widely justified against this clan of smiling tyrants and despots, with the audacity to appoint themselves to the world’s rulers. No UN or other international body has selected or ratified them. Their arrogance with impunity is meant to irradiate power around the globe. The smoke of grandeur emanating from their heads can most likely be seen from space. The sad story is that the vast majority of this world, especially the western world, takes them seriously. They bow to the G7 nonsense; they accept their often-criminal decisions for wars, conflicts and killer-sanctions, as God-given. The G7 decide over the fate of sovereign nations, like Iran, Venezuela, Cuba, Syria, Afghanistan – and who is next? If it wasn’t for Russia and China the damage they cause would indeed be unbearable.

They selected themselves as rulers of the universe. Unheard of, only half a century ago, that something so aberrant like the G7, the G20, the WEF (World Economic Forum that meets every January in lush Davos, Switzerland), are able to assemble many of the same rulers to hold the scepter of power over the planet. How come the peoples of this world allow their supremacy with impunity? One can but shake one’s head about this lunacy.  What has humanity become?

The Trump delegation usually travels with a flock of aids, journalists, advisors, let alone his bodyguards, and the blinding cars he brings from Washington by special air carriers. And all the others? Maybe slightly less, as they are, as vassals of the Great US Emperor, bound to be a bit more modest. Nevertheless, the total cost must be in the hundreds of millions – all counted, including shadow costs, environmental damage, CO2 emissions, and ‘externalities’ – which includes everything that establishment economists don’t want you to know, say, a total cost of 200 to 300 million dollars?

Maybe that’s an underestimate. The published figure on what Biarritz alone spent on this illustrious event is around US$ 41 million equivalent,15,000 police and about 5,000 troops, but not counting for the damage caused by the authorities fighting peaceful protesters. Add to this the cost of all the other attendants. Never mind the exact cost. The sheer fact that a grotesque amount of money in the range of 200 to 300 million dollars, is spent for nothing, zilch, for the bolstering of egos of some megalos, is an absurdity of our western civilization.

Hundreds of millions of dollars – a fiat currency produced at will and whim by the Federal reserve (The FED, the entirely privately owned US Central Bank) – nevertheless a currency that still drives much of the world, is used to pay for basics, like food, housing, clothing, health care and what’s left of education  – meaning what the world rulers are still allowing young people to be educated with.

Just think about it. Who pays for all these hundreds of millions of dollars, euros, yen, or whatever other fiat currency? You, the tax payer. So, you, the tax payer, have something to say about how your money is spent, don’t you think?

Therefore, we the people have to stop this arrogant nonsense that leads to less than zero, or worse, but costs hundreds of millions that could be spent on education and health services and other public services, including taking care of refugees in the G7 countries, or alternatively in countries to be rebuilt after the destruction by wars for greed and hegemony by the very G7.

So far – and every time more – the money spent on G7 and similar events, is like negative interest — destructive. You, the citizen and tax-payer, spend money for something that has a negative return. It is as nefarious as if you deposit your savings in a bank and the bank, instead of giving you an interest on your savings, charges you interest for keeping your money, then lends it to, say, a corporation, but the corporation has to pay back less than it borrowed. In other words, you the ‘small saver’ subsidize the big corporation, or anybody who can afford and is considered ‘eligible’ and solvent enough by the bank to borrow money.  It’s a new form of transferring resources from the bottom to the top.

The money spent on the G7 – or other comparable events – is similar. The event rulers take your money (taxes) and transfer it upstairs, where you will never see it again. Not only do you get nothing for it, but it costs you more, as the G7 foment wars and conflicts which kill millions, annihilate entire countries’ infrastructure, housing, schools, health facilities and generate an influx of refugees, for all of which you pay again.

Let’s see.  A year of primary education, say in Africa, costs about US$ 400 / per student, and about US$ 650 for high school education (2017). Providing decent health care, preventive and curative, per person in Bangladesh amounts to about US$ 650 per year. Assuming the money spent on the G7 Biarritz summit was about 250 to 300 million, you could provide education for a year to about 550,00 students in, say, Kenya, or provide a year of decent health care to about 430,000 Bangladeshi. Or the G7 funds could build drinking water and sanitation facilities for about 2.5 million people in developing countries. These figures may have a margin of error of plus or minus 20%. But you get the picture.

Or closer to home, how many refugees could xenophobic Europe, especially France and Italy,  take care of – refugees driven from their countries, precisely for wars started and sustained by the G7s, to line their weapons industries with huge profits, to dominate the world’s natural resources and eventually put all the people under one hegemonic, globalized roof — one culture, one currency, and only one kind of thinking and ideology allowed — their final goal.

Well, these refugees streaming to Europe, children without parents, divided families, sick people, people dying in the ditches, on the sides of roads in self-built camps, camps exposed to the climate elements, camps that are eventually erased by bulldozers – these human beings put into misery by the very G7 – why not use the money spent on such nefarious fora to impress the lot of the well-off populations on either side of the Atlantic, instead on a little humanitarian act, act of consciousness — what’s left of it — taking care of the trans-Mediterranean refugees?

Mr. Macron, you are besieged by the Yellow Vests, who will not go away. What do you think canceling the event and instead pledging the funds for humanitarian shelter for refugees, and lobbying with the remaining G6 to do the same would have done to your Presidency, to your ever-sinking popularity? Maybe some uplifting? You could badly need it. But the image – that’s what it is — the image of grandeur, rubbing elbows with the so-called “leaders” of the world, is of all-overarching importance, isn’t it?  Never mind the unbearable suffering of many of the people you claim to democratically represent.

• First published by the New Eastern Outlook – NEO

Amazonia in Flames

On 28 October 2018, Jair Bolsonaro was elected President of Brazil with 55.1% of the vote and with a gigantic help from Cambridge Analytica.

At the World Economic Forum (WEF) in January 2019 in Davos Switzerland, Bolsonaro made a sumptuous presentation, “We Are Building a New Brazil”. He outlined a program that put literally Brazil up for sale, and especially the Brazilian part of Amazonia. He was talking particularly about Brazil’s water resources, the world’s largest, and the rain forest – offering a huge potential for agricultural development and mining.

None of the world leaders present at the WEF, precisely those that regularly meet pretending to save the planet, reacted to Bolsonaro’s statement on the Amazon region. They all knew who Bolsonaro was and is. They knew that the man had no scruples and would destroy – literally – the world’s lungs. They did nothing. They stayed silent in words and deeds, applauding the neonazi for his openness to international business and globalization.

Today, on the occasion of another similar world event, the meeting of the G7 in Biarritz, France, French President Macron accused Bolsonaro of lying when he talked and pledged environmental consciousness after taking office, about protecting the Amazon area. Macron was joined by Germany in threatening Brazil with canceling the trade agreement with Mercosur, if he would not immediately undertake to stop the “wildfires”. They have most likely nothing to do with ‘wild’ as they, according to all circumstantial evidence, were planted in a concerted effort to rid the rich Amazon territory of the life-sustaining jungle, so as to make the newly gained flame-deforested land accessible for private agri-business and mining.

Mind you, the G7 is another self-appointed totally illegal group of industrialized, rich countries (similar to the G20); illegal, because they have been approved by nobody, not by the UN or any international body. They became rich mostly on the back of poor developing nations that were and are still colonized for hundreds of years. The G7 count today about 10% of the world population and are controlling 40% of the globe’s GDP.

Despite the fact that nobody, other than themselves, ratified their existence and their machinations, they believe they can call the shots of how the world should turn and function. They have no official backing by anybody, especially not the people across the globe, who, with a vast majority are fighting globalization. It’s a useless structure – RT refers to them as “The Unbearable Pointlessness of G7” – but their power lays in the rest of the world’s silence, their silent acceptance of the G7’s arrogant wielding of the scepter of power.

So, would Bolsonaro take them seriously, knowing that he is one of them and they are fully sharing his ideology of profit first, shoving environmental and social values down the muddy waters of the Amazon River? Hardly. He knows they are hypocrites. He knows that they make a bit of noise, because they have to. It makes for good public relation and propaganda – so people don’t go on the barricades. He knows that starting this coming Monday, 26 August, when the G7 summit will be history, that anything the Macrons of this world so impressively said, will fade away. The media will concentrate on other ‘news’ – and the forest fires will burn the life stream of Amazonia away – to make room for corporate profit-making by the elite few.

Never mind the Constitutional protection of indigenous people and their land. Bolsonaro backed by evangelists and his military junta will rapidly dismantle any remaining protection for the ecosystem and native communities. His argument goes that the native people’s land is sitting on huge reserves of natural resources that belong to Brazil and may be concessioned to private corporations for mining, exploitation of agriculture and lumber.

The indigenous folks are people who have for thousands of years made a peaceful living in the Amazon. They are the gatekeepers of Amazonia; they are the people who may carry our genes from the present killer civilization to the next, hopefully less of a killer one, when mankind has finally managed to destroy itself. It will not destroy the planet. Never. The planet will just get rid of the nefarious elements of annihilation – mankind – and renew itself. As has happened many times in the past – a new civilization will eventually be born – and, yes, the world’s indigenous people, the likely only survivors, may carry on our DNA, possibly to the next attempt at humanity.

The fires have so far in about 20 days since they were discovered, consumed at least 74,000 ha of tropical rain forest. The smoke is already trespassing the border to Argentina and affecting the provinces of Formosa, Jujuy, Corrientes, Catamarca, La Rioja, Santa Fe and may have already reached Buenos Aires. NASA reports that about 3.2 million square kilometers of South America are covered by smoke.

The flames are massive and are devastating the jungle at a rapid pace. Amazonia comprises one of the world’s largest rainforests, also known as Mother Earth’s lungs – without which humanity – and fauna and flora might not survive.

According to the Brazilian National Institute for Space Research (INPE), the fires increased by 83% – almost double – from what they were last year, and, not coincidentally, at least 68% of protected areas have been affected. The Brazilian Space Research spotted 72,000 fires, of which 9,000 last week alone. The Amazon is home to 34 million people, including over 350 indigenous groups.

At the onset of the G7 conference, Mr. Macron twittered:

“Our house is burning. Literally. The Amazon rain forest – the lungs which produces 20% of our planet’s oxygen – is on fire. It is an international crisis. Members of the G7 Summit, let’s discuss this emergency first order in two days!”

The destruction of the Amazon is indeed a crime of first degree. Accordingly, there are protests around the world against Bolsonaro’s “free for all” mining, lumbering, land and water grabbing policies. The eco-warriors Extinction Rebellion (XR) organize widespread protests, and in front of London’s Brazilian Embassy protesters chanted, “Hey hey, ho ho, Bolsonaro’s got to go!”.

While the Brazil fires catch world attention, there are jungle fires even larger than those in Amazonia burning down other parts of the world’s oxygen-generating lungs. Bloomberg cites NASA data, according to which last Thursday and Friday, 22 and 23 August – in two days alone – more than 6,900 fires were recorded in Angola and about 3,400 in the Democratic Republic of Congo (DRC), about 5 times as many as in the same two days in the Brazilian Amazon region. The destruction of the jungle in Africa progresses virtually unnoticed and is hardly reported in western media. Bloomberg is an exception. Why is that?

Could it be that the same globalized corporations interested in Brazil’s natural resources underlaying the Amazon forests are also interested in those enormous reserves of minerals and hydrocarbon resources of Central Africa? Have they – DRC, Angola and possibly others been encouraged tacitly or directly by Bolsonaro and his clan to let the jungle burn? There are plenty of Brazilian corporations which have a vivid interest in Angola, another former Portuguese colony.

Despite the G7 apparent concern to protect the world’s lungs in Amazonia, they seem to be oblivious about the Central African rain forest devastation. The massive African fires too advance rapidly and extinguish another part of the world’s lungs. But these fires are not on the G7 radar or agenda for discussion, and nobody is threatened with sanctioning if the respective governments remain hapless onlookers.

In 2008, a so-called Amazon Fund, the first UN REDD+ initiative for the protection, preservation and monitoring of the Amazon region was created (UN REDD+ = reduce emissions from deforestation and forest degradation, and foster conservation, sustainable management of forests, and enhancement of forest carbon stocks).

Germany and Norway – and others – have accused Brazil for not having properly invested their contribution into the Fund. Norway has recently blocked a payment of US$ 30 million destined for the Fund. Germany had blocked already in early August the equivalent of US$ 39 million for different Amazon protection programs to be financed by the Fund. But Bolsonaro, in a nonchalant manner, dismissed the blocked payments, suggesting that Germany should use the funds for reforestation of Germany.

In the case of Brazil, the threats by the Macron-Merkel duo – and others – seem to have had at least at the outset the effect that Bolsonaro is mobilizing the military to help extinguish the fires. Will he succeed? Does he want to succeed? In any case will the media continue reporting on progress once the G7 have gone home?  Will the world’s outcry be loud enough to force a concerted effort, possibly UN led to fight and extinguish these fires that are menacing not only to destroy a key oxygen generator for life on mother earth, but also a UNESCO protected world heritage?

Hong Kong and the Audacity of the United States

People often ask and hint at the similarities between the Hong Kong protests and the French Yellow Vests. The former started on 31 March and are approaching their 19th week. The Yellow Vests (YV) have celebrated last weekend their 40th week of protests. As of recently some voices of Macron-infiltrates into the YV movement – or Fifth Columnists – have suggested that the YVs may support the Hong Kong protesters in solidarity for freedom….

Well, that didn’t go down well with the highly educated and well informed YV. Many of them actually felt insulted by the Macronites – ‘for whom does this guy [Macron] take us?’  And right they are. There is not a shred of comparison between the two movements, except that they are protests but for widely different reasons, and serving widely different agendas. The YV can in no way be associated with the Hong Kong “protests” which are equal to US funded Color Revolutions.

We, the YV leaders said, are fighting against an ever more totalitarian French government that is ever more stealing our legitimate income in the form of all sorts of taxes and keeps a minimum wage on which ever more French families cannot survive. Life is unaffordable on a regular workers pension. The Macron Government is creating poverty, by shifting the financial resources, the few that are left, from the bottom to the top. That’s what we are fighting and protesting against. We want a fundamental change in the French economic structure and the French leadership. You see, all of this has nothing to do with the Washington funded Hong Protests that are directed on Washington’s behalf by Hong Kongers against the Government of Mainland China.

It couldn’t be clearer. The French Yellow Vests know what they are fighting for. The Hong Kong protesters, most of them, follow a few leaders under false pretenses against their country, against Beijing. Granted, many of the protesters are pro-westerners, they sing the US National Anthem, and wave the British flag – the flag of their former colonialists.

Actually, funding to destabilize Hong Kong in the future has already started at the latest in 1994, three years before the official Handover of Hong Kong by the UK to the Beijing Government. Way before the official date of returning Hong Kong in 1997 to the Peoples Republic of China (PRC), the US built up a network of Fifth Columnists in Hong Kong.

Washington pours millions into creating unrest in Hong Kong, similarly as in Ukraine, when the US State Department financed the preparation of the 2014 coup at least 5 years ahead at the tune of US$ 5 billion, according to Victoria Nuland’s, Deputy Secretary of State, own admission, directly and through NED, the National Endowment for Democracy, an “NGO” which it isn’t. It is rather the extended or soft arm of the CIA, receiving hundreds of millions of dollars from the State Department for their ‘regime changing’ activities around the globe.

In 1991, The Washington Post quoted a NED founder, Allen Weinstein, as saying “a lot of what we do today was done covertly 25 years ago by the CIA”.  Couldn’t have been said better. We see the results all over the world.

Precisely this has happened in Hong Kong and is going on until this day and probably way beyond. The US will not let go. Especially now that most people who have at least a limited understanding on how these western manipulations work, comprehend and see for themselves who is sowing the unrests. Take the 22-year-old student and western hero of the 2014 Umbrella Revolution, Joshua Wong, trained. programmed and funded by the US State Department / NED / CIA. He is again a main player in the current protest movement. Wong is the on-the-ground boy for the local media tycoon, Jimmy Lai, who has spent millions of his own money in the 2014 “Occupy Central” protests (Umbrella Revolution).

The oligarch uses his funds widely to finance protest leaders and protest groups. He also created his own National Party, with significant xenophobic connotations. Yet Mr. Lai is very close to the Trump Administration and met, along with many of his protest leaders, with the US envoy in Hong Kong, as well as with National Security Advisor John Bolton and other US officials. On July 8, Mr. Jimmy Lai met US Vice President Mike Pence at the White House.

Lai has full support of the US Government to fire on and promote these protest groups. Yet, if asked, the protesters have no precise plan or strategy of what they want. The island is largely divided. By far not all protesters want to separate from the mainland. They feel Chinese and express their disgust with Jimmy Lai’s radical anti-Beijing propaganda. They call him a traitor.

Mr. Lai was born in 1948 in mainland China, in an impoverished family in Canton. He was educated to fifth grade level and smuggled to Hong Kong in a small boat at age 13. In HK he worked as a child laborer in a garment factory at about the equivalent of US$ 8 per month. In 1975 he bought a bankrupt garment factory for a pittance and created Giordano, producing sweaters and other clothing for mostly US clients, like J.C. Penny, Montgomery Ward and others. Mr. Lai today is openly criticized even by his own people as a conspirator behind the violence of the HK riots, or protests, as he prefers to call them.

The protests started with a ‘controversial’ extradition law – which, by the way, exists between most States in the United States, as well as between nations in Europe and to a large extent internationally. Therefore, this is nothing unusual. Yet, its importance was blown out of proportion by the western media and by Mr. Lai’s own local media to distort the picture. A minority, of course, would like their full independence from China which is totally against the agreement signed between the UK and Beijing at the so-called 1997 Handover.

A few days ago, the US sent a couple of war ships into China waters at Hong Kong. They had the audacity to ask Beijing to grant them the right to dock at Hong Kong harbor. Beijing, of course, refused and warned Washington – do not meddle in our internal affairs. Of course, Washington has no intention to heed China’s advice – they never do. They have been inoculated with the view that the exceptional nation calls the shots. Always. Nobody else should even dare to contradict them. Period.

On July 3, The China Daily pointedly reported:

The ideologues in Western governments never cease in their efforts to engineer unrest against governments that are not to their liking, even though their actions have caused misery and chaos in country after country in Latin America, Africa, the Middle East and Asia. Now they are trying the same trick in China.

The US tactics in Hong Kong, may be combined with Trump’s trade war, with the Pentagon’s greater presence – mainly new military bases and navy presence in the Indo-Pacific region – Obama’s (in)famous Pivot to Asia which prompted Obama to order 60% of the US Navy fleet to the South China Sea.

All of this and more are part of a destabilization war with China. Washington is afraid of China’s rising economic power in the world, of China’s monetary system, that is based on economic output and on gold, not fiat money like the US Dollar and the Euro and other currencies following the western turbo-capitalist system; and Washington is afraid of losing its dollar hegemony, as the Chinese yuan is gradually taking over the dollar’s role as world reserve currency.

Hong Kong was basically stolen by the Brits in 1842 at the heights of the Opium Wars. Under pressure of the British military might, China ceded Hong Kong under the Treaty of Nanking, signed on 29 August 1842. Hong Kong became, thus, a Crown Colony of the British Empire.  Under a convention of 1898, Hong Kong was leased to Britain for 99 years.

After 155 years of British colonial oppression of the people of Hong Kong, it was time to normalize the status of Hong Kong as what it always should have been, namely an integral territory of China. The “One Country, Two Systems” agreement of 1997, returned Hong Kong to the People’s Republic of China, but the parties agreed to leave the capitalist system in place for 50 years. The agreement also stipulated that all intervention and colonial claims on Hong Kong were supposed to end. Full sovereignty was to return to China. What’s happening now – US-UK fomented riots to seek independence of the island, is in total disregard of the 1997 Handover Treaty.

The US inspired and funded protests are destined to challenge the HK-China sovereignty clause, by mobilizing public opinion that wants full “freedom”; i.e., independence from China.

The 50 years of the usual abusive capitalist continuation would allow the imperialist US and UK to maintain economic control over Hong Kong and thereby exert economic influence over the PRC. How wrong they were!  In 1997 Hong Kong’s GDP constituted 27% of the PRC’s GDP.  Today that proportion shrunk to a mere 3%. China’s rapidly growing level of development, especially the Belt and Road Initiative (BRI), which the west chose to literally ignore until about a year ago, has become a vital threat to the US corporate world.

What the US and UK – and the rest of the West – is particularly interested in is HK’s special banking position in the world. Through Singapore and Hong Kong, Wall Street and key European banks, in cohorts with their not so ‘ethically-clean’ and often fraudulent HSBC partner, pretend to control and influence Asian economics and especially attempt to prevent China to take over the Asian financial markets. Hong Kong has the most liberal banking laws, possibly worldwide, where illegal money transactions, money laundering, shady investments in the billions can be carried out and nobody watches. Maintaining HK as long as possible with this special nation status and wielding influence and control over PRC’s financial markets is one of the western goals.

But little does the West understand that China and other eastern countries, plus Russia, India, Pakistan, have already largely detached, or are in the process of detaching, from the dollar economy and are members of the Shanghai Cooperation Organization (SCO). Let’s face it, the SCO comprises about half of the world’s population and controls about one third of the globe’s economic output.

Therefore, the SCO members do no longer depend on the western financial markets and monetary manipulations. In fact, Shanghai has in the last decades grown to become China’s financial hub with way more importance for China than Hong Kong. So, it is very unlikely that China will crack down on Hong Kong for the protests. There is too much political capital to be lost by interfering. The West and Hong Kong protesters may as well riot themselves into rot.

But if China gets tired of these incessant western provocations and really wants to put an end to them, the PRC could take over Hong Kong in less than 48 hours, abridge the 50 years of western capitalism and make HK a full-fledged province of China, no privileges, no special status, just a part of sovereign China. End of story.

• First published in New Eastern Outlook – NEO

Brexit or Not?

Brexit deadline is 31 October 2019. On 23 June 2016, the British people voted 52% against 48% to leave the European Union. In England alone, the margin was somewhat higher, 53.4% for leaving the EU, against 46.6% for staying. In the meantime we know that this result was influenced by Cambridge Analytica, the same as the Trump Presidency was apparently helped by CA, and according to CA’s own account, more than 200 elections or referenda worldwide during the last 5 years or so were decided by CA.

CA is said to have disappeared; however, the knowledge on how to manipulate voters’ opinions – the algorithm to do so – is by now well known by Google, social media and, of course, by the world’s key secret service agencies, foremost CIA, NSA, MI6, Mossad, DGSE (France), BND (Germany) and others. Therefore beware of believing even in a shred of democracy in upcoming elections, anywhere in the world.

Will Brexit actually happen?  Chances are it will not. Almost three-and-a-half years after the UK vote, and two-and-a-half years after the UK started the exit process, the Brexit “soap opera”, as it is often called – leave or stay – continues.

Both, Theresa May and Boris Johnson, and so far, also the opposition Labor Leader, Jeremy Corbyn, have assured British people they will respect their choice; no new referendum, no Parliamentary vote; and instead, they foresaw negotiating a “deal” with Brussels. If there is “no deal”, then Brexit will take place as a “No Deal, or Hard Brexit” – so the erstwhile verdict – which could change, of course, as just about everything that has been said and agreed upon in the Brexit saga. But what exactly is meant by a “deal”, or a “no-deal”, for that matter?

Though, the definitions of a “deal” are vague, a “deal” refers basically to a UK exit from the EU under as smooth as possible conditions for both business and individuals, meaning that current relationships; i.e., business licenses, trading relations, residency permits, free exchange of labor, would not stop at once, but a transition period would allow to work out specific conditions. In fact, this is precisely included in the Withdrawal Agreement (WA). However, the WA has not yet been ratified by the House of Commons. Why not?  Is there a hidden agenda? Once the WA is ratified, there is no way back? Is that it?  The Parliament’s holdout for a 180-degree change from “leave” to “stay” despite the popular vote?

The WA provides for a period up to 31 December 2020 after Brexit actually happens, or longer, if negotiated, to hammer out the post-Brexit details of trade, future tariffs, business licenses, transit of labor and capital and more before the new UK/EU divorce rules would enter into force. This is plenty of time to negotiate individual trade and peoples (free movement) agreements with EU partner countries. Everything – the current UK-EU relations agreements – would stay in place during the transition period; i.e., for at least another 15 months (or longer, if more time is negotiated as necessary), if Brexit would take place on 31 October 2019.

Some of the possible post-Brexit bilateral negotiations have already started behind the scenes, notably with China and the US and most likely with others, like Germany and France. The UK could, for example, look at the Swiss model. Switzerland, not a member of the EU, is de facto an EU member, just without voting rights. Switzerland has currently more than 120 multi and bilateral agreements with Brussels and the 28 EU members. And this despite a three-time direct popular rejection of EU membership by referenda (1992 – against joining the European Economic Area, 50.3% against; in 1997, EU membership referendum – 74.1% against; and in 2001 on “EU access negotiations” – rejected by 76.8%). Yet, Switzerland is still looked upon as a model for ‘democracy’ – where people decide.

So, everything is possible, direct negotiations with a selection (or all) of EU countries, following the Swiss model, and/or a wider scale of by- and multilateral negotiations with countries or trading blocks around the world.  Actually, Brussels has already hinted to the UK leadership at starting bilateral negotiations with EU members, even though the official line is “leave” or “stay”. No doubt, Brussels as well as Washington would like to do everything possible to keep the UK within the EU bureaucracy. The UK has an implicit reputation of being Washington’s mole in the EU, representing Washington’s wishes in crucial decisions — like when 10 new Eastern European member candidates had to be admitted — or not.

Therefore, why the hype about a “no deal” Brexit?  Do people even understand what “no deal” means?  That it literally means all doors are open for negotiations during the transit period and that nothing changes during that period, which is even extendable, and, of course, that a myriad of options to negotiate new deals with new partners are open after the transit period, in the post-Brexit phase.

It’s all fearmongering, manipulation of public opinion — the stock market will crash, UK’s GDP will contract by between 2% and 4%  depending whom you ask, and who pretends having had all the details to calculate such nonsensical numbers; that unemployment will soar, especially as UK citizens will be expulsed from their EU host countries and come home to look for work, and so on. These threats emanating from Brussels, as well as from the UK elite, have, of course, only one goal in mind – No BREXIT; find a way to reverse the people’s opinion and Referendum decision.

Entering the realm of intimidation, the British Government warns in a “clandestine report” – “leaked” to the Sunday Times – that a Hard Brexit (a “No Deal” Brexit) will hit the UK with food, fuel and medicine shortages. RT reports this much-feared prospect is becoming increasingly likely since the changing of the guard in Downing Street. Yes, this is clearly part of spreading fear to coerce public opinion against Brexit. However, this could all be prevented by the British Parliament voting for the Withdrawal Agreement which is part of the sovereign deal – no approval from Brussels necessary – for any country wanting to leave the EU. How come, this is never mentioned in the media, thus preventing the public from knowing what the government could do to avoid a Hard Brexit havoc?

There are also other economic predictions, contradicting the fearmongers, and by all accounts of logic, more plausible ones; namely, that the UK would do much better after Brexit, free to deal and trade with whomever, no looking over the shoulders by Brussels, no impositions of complex and often very costly rules, frequently mere rules for the sake of rules by the European Commission. Regaining full sovereignty would do the UK good, both economically and socially.

The UK could also continue maintaining a relation at a distance with a body that is often mentioned in the same breath as corruption; a body that has shown little sympathy for solidarity among member countries. Examples abound. Greece, Italy, Spain, Ireland, Portugal were all “sanctioned” with troika-imposed rescue packages (troika = EC, European Central Bank – ECB, and IMF). It is also clear that Brussels favors a set of nations, unofficially, of course, stronger, mostly northern nations that do not have to follow the strict ECB debt limitation rules imposed by the ECB and mostly applied to southern EU members. This amounts to an unspoken two-tier arrangement.  But these voices of reason, who would promote Brexit for the sheer long-term socioeconomic betterment of the British citizenry, are not allowed to come to the fore. The media are controlled by the “Stay” proponents.

Brexit, stay or leave, is a delicate matter. Labor, hence Jeremy Corbyn, has a tendency to favor “stay” – oddly, along with some of the conservative Tories, for all the false, scare-evoking reasons propagated – unemployment, reduction in GDP, gap in trading partners, and so on. Then there is the extreme right, represented by Nigel Farage, the boss of the very Brexit party, who supports Brexit for the wrong reasons — anti-immigration, racism, bordering on xenophobia, a similar reasoning as is used by Madame Le Pen in France, who also would like to exit the EU for stricter border control, anti-immigration and racism. Ditto, for Italy’s right-wing Lega Norte Deputy PM, Matteo Salvini. This controversy of reason is confusing to the general public – and possibly even to Jeremy Corbyn, who does not want to be associated with Nigel Farage, has to vouch for “stay” – perhaps against his better understanding of Brexit’s socioeconomic advantages for Great Britain.

Of course, there are plenty of ways to reverse the promises of former PM Teresa May’s and today’s PM, Boris Johnson’s assurances that the 2016 vote result will be respected. The easiest one would be for the British Parliament to revoke Article 50 of the Treaty of Lisbon, which gives member states the unilateral right to quit EU membership. That’s precisely what the UK did, trigger Article 50 by the Prime Minister’s decision after the Brexit Referendum. Once this process was set in motion, it was understood that it couldn’t be stopped except by a Parliamentary vote canceling application of Article 50.

Today, that option is fully on the table. It can be done equally unilaterally and sovereignly by the UK, without the approval of the remaining 27 EU member states. Should that happen, the status quo would win, the UK would remain a EU member. No change.

Labor Leader, Jeremy Corbyn has recently hinted about introducing a no-confidence vote against PM Johnson. If Parliament accepts it, and if he wins, he would become interim PM, calling for new elections which he expects to win. His support base in the UK is growing, despite increasing – false – accusations of anti-Semitism. If he would become PM, he could indeed call for a new Brexit referendum, or simply call for a vote against Article 50. Bingo! And the UK would remain a EU member. Knowing about Cambridge Analytica’s coercive methods applied to swing public opinion, a new Brexit Referendum would likely be manipulated in favor of “stay”.

By the way, since CA’s admitted interference in the Brexit vote, it is totally conceivable that the 2016 Referendum result could be annulled as invalid, and a new referendum be launched. It’s a miracle that so far, no politician, no media, nobody, has talked about it.

In summary, might it be possible that the outcome of the June 2016 Referendum came as a surprise for the British Authorities and elite? Hence, the result was simply not acceptable? Therefore, to preserve the illusion of “democracy”, could it be possible that an entire complex construct had be conceived and built over a period of some three years, in which public opinion had to be confused to the point of losing track of the details and of specific conditions for exiting the European Union so that it could be more easily swayed into the direction of the Master’s wishes, while still pretending to be democratic? Let’s wait and see, but no surprise, if Brexit doesn’t happen.

• First published at New Eastern Outlook (NEO)

Venezuela and Iran in the Crosshairs of Murderers Inc.

Imagine just for a moment, the World would stand up in unison, sick and tired of the aggressive killer arrogance of the United States and her vassals – and their joint war-force called NATO – and this World, our World, what’s left of it when you deduct Washington and its Brussels allies, would at once block every shipment of everything destined for the ports of the United States of America; every sea port, airport and road port. Hermetically. Nothing would enter. Nothing, no food, no medicine, no electronics, no cars – no nothing. And nothing could leave. No exports, no petrol, no grains, no meat, no pharmaceuticals and foremost, no weapons. Nothing.

And now, take your mind a step further – and imagine the same – exactly the same, a total and full blockage of Israel – nothing would enter, no food, no fuel, no medication, no machinery and especially no weapons – and nothing would leave; a full and total blockage.

This would, of course, be totally illegal; illegal and unacceptable, by any international law, by the standards of the UN Charter, by the Human Rights Laws and Directives, by any ethical values of human morals. Wouldn’t it?  Yet, this is exactly what these countries are doing, have been doing for decades, sanctioning to strangle and murder entire populations into death or submission. The US with Cuba; Israel with Palestine. And the coercion and strangulation go on, unabated.

The longest embargo — illegal, inhuman and outright criminal — Washington imposed on Cuba 60 years. Because Cuba has chosen socialism as her form of state and government. Cuba survived and will never give in to the tyrant of the north.

Now the US is expanding her palette of killing by impunity to dominate and subjugate nation after nation which they do not consider bending sufficiently to the dictate of their masters. Venezuela has been targeted for two decades, ever since former President Hugo Chavez was democratically elected in 1998; and Iran, ever since the US-imposed Shah was deposed in 1979, exactly 40 years ago by Iran’s Islamic Revolution. Both Venezuela and Iran are rich in natural resources, especially hydrocarbons but also in gold, rare earths and other precious metals and stones.

Contrary to what one would like to imagine, international world bodies, like the United Nations and her sister and associated organizations remain just about silent. When a high-level official utters some benign criticism of the US or Israel it flairs up for a moment in the ‘news’, then it disappears again, as if it never happened. And indeed, nothing happens. They – the US and Israel – go on with their crimes in impunity.

The latest is an open declaration of economic warfare by Washington, a total embargo on Venezuela; the embargo is now being turned into a naval blockade. Similar steps are to be taken for Iran. That literally means that no merchandise, no matter how vital for survival, like food and medication, is allowed into Venezuela. Three days ago, the US seized, totally illegally, a cargo ship attempting to deliver food and medication to Venezuela in the Panama Canal, territory which the US does not own or control anymore.

The ship was carrying soy cakes, from which Venezuela was to produce food. Never mind, that the cargoes are fully paid for by Venezuela. And this seems to be just the beginning. Vessels leaving Venezuela with petrol deliveries to client countries are also targeted for blockage, thus confiscating, or rather stealing, Venezuela’s main source of income on which she intends to survive and feed and provide health care for her people. This, in addition to the more than 130 billion dollars total Venezuelan assets confiscated – stolen – by the US worldwide.

And nobody says beep. Almost. Yes, there are some collective protests by countries in solidarity – like key members of the Sao Paulo Forum, as well as more than 60 members of the Non-Aligned Movement (NAM – total 120 members) that have become especially active in recent years in defense of Venezuela within the United Nations. Protests and protest declarations also take place by ALBA members, a Latin American trade alliance (ALBA — Bolivarian Alliance for the Peoples of Our America — (11 members: Venezuela, Cuba, Bolivia, Nicaragua, Dominica, Ecuador, Antigua and Barbuda, Saint Vincent and the Grenadines, Saint Lucia, Grenada and the Federation of Saint Kitts and Nevis).

But most interesting are the hypocrites, those who write and scream that Venezuelans are starving to death, that the Maduro government neglects its people, yet these accusers-in-falsehood, let the US and her vassals strangle Venezuela and steal her foreign assets, including foreign reserves and gold, food and medical imports, they are saying zilch, nada, nothing. Just watching.

To top it all off, the Human Rights Commissioner, Madame Michelle Bachelet, Hypocrite-in-chief, who recently visited Venezuela, at the invitation of President Nicolas Maduro, on a Human Rights mission, and who delivered a devastating report about Venezuela’s HR, full of lies, half-truths and outright omissions, not mentioning with one word the US inspired coup attempts, the US-funded opposition and its bloody atrocities perpetrated on the Chavista population, and the strangulating and starving by the US and US-dictated European sanctions, Madame Bachelet now came forward condemning the naval blockade. Great. But she did not stand up against the deadly embargo by the US and the European Union.  What credibility remains for the Human Rights Commission?  The world can see it.  It’s all bought, coerced into submission, like so many other UN agencies by the Murderers Inc.

If we are not careful, they are soon going to rule the globe. Thanks god, for Russia and China, which are also subjects of US-EU sanctioning and targeted for take-over. But they are a tiny little bit too big and too strong for this sort of games by the decaying US empire and her obedient rats on the sinking ship.

Similarly, the European Union, despots as they have been for hundreds of years as colonialists in Africa, Asia and Latin America – and continue in a modern colonial role through economic control of much of Africa, this very EU has been sanctioning Venezuela for years on the orders of Washington, naturally, who else?  Now they condemn the naval blockade, but continue their routine sanctions regime.

According to a study carried out by the Washington DC based Center for Economic and Policy Research (CEPR), under guidance of Mark Weisbrot, CEPR co-director and Jeffrey Sachs, economics professor, Director, Center for Sustainable Development, Columbia University, New York, US and EU sanctions have cost some 40,000 Venezuelan lives. This mainly since August 2017, when Washington escalated its unilateral coercive measures against Venezuela and her state oil company, PDVSA, cutting them off international financial markets.

Yes, the world would have plenty of reasons to stand up and dish out similar naval and air blockades against the US and Israel. Just as a teaser to begin with, and if that doesn’t send a strong enough wake-up message, perhaps such embargoes should be considered on a longer-term indefinite scale. It’s illegal. But we are living in a world where international laws don’t count, where laws are made, as we go, by the self-declared hegemon, the US of A, and her symbiotic Middle East ally, Israel. So, why not nudge the legal, moral and ethical order back into balance?

The Western Alliance is Falling Apart

Ever since Imran Khan became the 22nd Prime Minister of Pakistan in August 2018, the winds have changed. While his predecessors, though generally leaning eastwards, have often wavered between the US and the China orbit, Khan is in the process of clearly defining his alliances with the east, in particular China. This is for the good of his country, for the good of the Middle East, and eventually for the good of the world.

A few days ago, RT reported that China, in addition to the expansion of the new port in Gwadar, Balochistan, has entered into agreements with Pakistan to build a military/air base in Pakistan, a new Chinese city for some half a million people, as well as several road and railway improvement projects, including a highway connecting the cities of Karachi and Lahore, reconstruction of the Karakoram Highway, linking Hasan Abdal to the Chinese border, as well as upgrading the Karachi-Peshwar main railway to be completed by the end of 2019, for trains to travel up to 160km/hour.

This rehabilitation of dilapidated Pakistani transportation infrastructure is not only expected to contribute between 2% and 3% of Pakistan’s future GDP, but it offers also another outlet for Iranian gas/hydrocarbons, other than through the Strait of Hurmuz, for example, by rail to the new port of Gwadar which, by the way, is also a new Chinese naval base. From Gwadar Iranian hydrocarbon cargos can be shipped everywhere, including to China, Africa and India. With the new China-built transportation infrastructure Iranian gas can also be shipped overland to China.

In fact, these infrastructure developments, plus several electric power production projects, still mostly fed by fossil fuel, to resolve Pakistani’s chronic energy shortage, are part of the Chinese Belt and Road Initiative (BRI), also called the New Silk Road. They are a central part of the new so-called China-Pakistan Economic Corridor (CPEC) which was first designed in 2015 during a visit by China’s President Xi Jinping, when some 51 Memorandums of Understanding (MoU) worth then some US$ 46 billion were signed. Pakistan is definitely out of the US orbit.

Today, in the CPEC implementation phase, the projects planned or under construction are estimated at over US$ 60 billion. An estimated 80% are direct investments with considerable Pakistani participation and 20% Chinese concessionary debt. Clearly, Pakistan has become a staunch ally of China and this to the detriment of the US role in the Middle East.

Washington’s wannabe hegemony over the Middle East is fading rapidly. See also Michel Chossudovsky’s detailed analysis “US Foreign Policy in Shambles: NATO and the Middle East. How Do You Wage War Without Allies?

A few days ago, Germany refused Washington’s request to take part in a US-led maritime mission in the Strait of Hormuz, under the pretext to secure hydrocarbon shipments through this Iran-controlled narrow water way. In reality it is more like a new weaponizing of waterways, by controlling what ships do what to whom and applying “sanctions” by blocking or outright pirating of tankers destined for western ‘enemy’ territories.

Foreign Minister Heiko Maas announced last Wednesday in Warsaw, Poland, that there “cannot be a military solution” to the current crisis in the Persian Gulf and that Berlin will turn down Washington’s request to join the US, British and French operation “aimed at protecting sea traffic in the Strait of Hormuz, and combating so-called “Iranian aggression.”

This idea of the Washington war hawks was conceived after Iran’s totally legal seizure of the British-flagged Stena Impero oil tanker, after it rammed an Iranian fishing boat a couple of weeks ago. However, nothing is said about the totally illegal and US-ordered British piracy of the Iranian super tanker Grace I off the coast of Gibraltar in Spanish waters (another infraction of international law), weeks earlier. While Grace I’s crew in the meantime has been released, the tanker is still under British capture, but western media remain silent about it, but lambast Iran for seizing a British tanker in the Strait of Hormuz.

Germany remains committed to the 2015 Joint Comprehensive Plan of Action, JCPOA (the Iran nuclear deal), from which the United States unilaterally withdrew a year ago, and Germany will therefore not intervene on behalf of the US.

Add to this Turkey – a key NATO member both for her strategic location and NATO’s actual military might established in Turkey – moving ever closer to the east, and becoming a solid ally of Russia, after having ignored Washington’s warnings against Turkey’s purchasing of Russian S-400 cutting-edge air defense systems. For “sleeping with the enemy”; i.e., moving ever closer to Russia, the US has already punished Turkey’s economy by manipulating her currency to fall by about 40% since the beginning of 2018. Turkey is also a candidate to become a member of the Shanghai Cooperation Organization (SCO), and so is Iran.

Turkey has become a de facto lame duck as a NATO member and may soon officially exit NATO which would be a tremendous blow to the North Atlantic Alliance and may tempt other European NATO nations to do likewise. Probably not overnight, but the idea of an ever more defunct NATO is planted.

All indications are that the future, economically and security wise – is in the East.  Even Europe may eventually ‘dare’ making the jump towards better relations with primarily Russia and Central Asia and eventually with China.

And that especially if and when Brexit happens, which is by no means a sure thing.  However, just in case, the UK has already prepared bilateral trade relations with China, ready to be signed, if and when, the UK exits the EU.

Will the UK, another staunch US ally, jump ship?  Unlikely. But dancing on two weddings simultaneously is a customary Anglo-Saxon game plan. The Brits must have learned it from their masters in Washington, who in turn took the lessons from the Brits as colonial power for centuries, across the Atlantic.

Western, US-led war on Iran is therefore unlikely. There is too much at stake, and especially, there are no longer any reliable allies in the region. Remember, allies — shall we call them puppets or peons — are normally doing the dirty work for Washington.

So, threatening, warning and annoying provocations by the US with some of its lasting western allies may continue for a while. It makes for good propaganda. After all, packing up and going home is not exactly Uncle Sam’s forte. The western alliance is no longer what it used to be. In fact, it is in shambles. And Iran knows it.

Greece:  Suicide or Murder?

Pundits from the left, from the right and from the center cannot stop reporting about Greece’s misery. And rightly so because the vast majority of her people live in deep economic hardship. No hope. Unemployment is officially at 18%, with the real figure closer to 25% or 30%; pensions have been reduced about ten times since Syriza – the Socialist Party – took power in 2015 and loaded the country with debt and austerity. In the domain of public services, everything that has any value has been privatized and sold to foreign corporations, oligarchs, or, naturally, banks. Hospitals, schools, public transportation – even some beaches – have been privatized and made unaffordable for the common people.

While the pundits – always more or less the same – keep lamenting about the Greek conditions in one form or another, none of them dare offer the only solution that could have rescued Greece (and still could) – exiting the euro zone; return to their local currency and start rebuilding Greece with a local economy, built on local currency with local public banking and with a sovereign Greek central bank deciding the monetary policy that best suits Greece, and especially Greece’s recovery program. Why not? Why do they not talk about this obvious solution? Would they be censured in Greece, because the Greek oligarchy controls the media as oligarchs do around the (western part of the) globe?

Instead, foreign imposed (troika: IMF, European Central Bank (ECB) and European Commission (EC) — the latter mainly pushed by German and French banks and the Rothschild clan — austerity programs have literally put a halt on imports of affordable medication, such as like for cancer treatments and other potentially lethal illnesses. So, common people no longer get treatment. They die like flies; a horrible expression to be used for human beings. But that’s what it comes down to for people who simply do not get the treatment they humanely deserve and would have gotten under the rights of the Greek Constitution; however, they simply do not get treated because they can no longer afford medication and services from privatized health services. That is the sad but true story.

As a consequence, the suicide rate is up, due to foreign imposed (but Greek government accepted) debt and austerity, annihilating hope for terminally ill patients, as well as for pensioners whose pensions do no longer allow them to live a decent life and especially as there is no light at the end of the tunnel.

Now, these same pundits add a little air of optimism to their reporting, as the right wing New Democracy Party (ND Party) won with what they call a ‘landslide’ victory on the 7 July 2019 elections; gathering 39.6% of the votes, against only 31.53 for Syriza, the so-called socialist party, led by outgoing Prime Minister Alexis Tsipras, who represents a tragedy that has allowed Greece to be plunged into this hopeless desolation. The ND won an absolute majority with 158 seats in the 300-member Greek parliament. Therefore, no coalition needed, no concessions required.

The new Prime Minister, Kyriakos Mitsotakis (51), son of a former PM of the same party, in his victory speech on the evening of 7 July, vowed that Greece will “proudly” enter a post-bailout era of “jobs, security and growth”. He added that “a painful cycle has closed” and that Greece would “proudly raise its head again” on his watch.

We don’t know what this means for the average Greek citizen living a life of despair. What the “left” was unable to do – stopping the foreign imposed (but Greek accepted) bleeding of Greece; the strangulation of their country – will the right be able to reverse that trend? Does the right want to reverse that trend? Does the ND want to reverse privatization, buy back airports from Germany, water supply from the EU managed “Superfund”, and repurchase the roads from foreign concessionaires, or nationalize hospitals that were sold for a pittance and – especially – get out from austerity to allow importing crucial medication to salvage the sick and dying Greek, those who currently cannot afford treatment of their cancers and other potentially deadly diseases?

That would indeed be a step towards PM Mitsotakis’ promise to end the “painful cycle” of austerity, with import of crucial medication made affordable to those in dire need, with job creation and job security – and much more – with eventually a renewed Greek pride and Greek sovereignty. The latter would mean – finally – it’s never too late to exit the euro zone. But, that’s an illusion, a pipe-dream. Albeit  it could become a vision.

If the ND is the party of the oligarchs, the Greek oligarchs that is, those Greeks who have placed literally billions of euros outside their country in (still) secret bank accounts in Switzerland, France, Lichtenstein, Luxemburg and elsewhere, including the Cayman islands and other Caribbean tax havens, hidden not only from the Greek fiscal authorities, but also impeding that these funds could, crucially, be used for investments at home, for job creation, for creation of added value in Greece. If the ND is the party of the oligarchs, they are unlikely to make the dream of the vast majority of Greek people come true.

Worse even, these Greek oligarch-billionaires call the shots in Greece not the people, not those who according to Greek tradition and according to the Greek invention, called “democracy” (Delphi, some 2500 years ago) have democratically elected Syriza and have democratically voted against the austerity packages in July 2015. Now, that they are officially in power, they are unlikely to change their greed-driven behavior and act in favor of the Greek people. Or will they?

Because, if they do, it may eventually also benefit them, the ND Party and its adherents — a Greece that functions like a country, with happy, healthy and content people, is a Greece that retains the worldwide esteem and respect she deserves — and will, by association, develop an economy that can and will compete and trade around the world, a Greece that is an equal to others, as a sovereign nation. A dream can become a reality. It just takes visionaries.

Back to today’s reality. The Greek Bailout Referendum of July 5, 2015, was overwhelmingly rejected with 61% ‘no’ against 39% ‘yes’, meaning that almost two thirds of the Greek people would have preferred the consequences of rejecting the bailout, euphemistically called “rescue packages”, namely exiting the euro zone, and possibly, but not necessarily, the European Union.

Despite the overwhelming, democratic rejection by the people, the Tsipras government reached an agreement on 13 July 2015 – only 8 days after the vote against the bailout with the European authorities for a three-year bailout with even harsher austerity conditions than the ones rejected by voters. What went on is anybody’s guess. It looks pretty obvious, though, that “foul play” was the name of the game which could mean anything from outright and serious (life) threats to blackmail, if Tsipras would not play the game and this to the detriment of the people.

President Tsipras’ betrayal of the people resulted in three bailout packages since 2010 and up to the end of 2018, in the amount of about €310 billion (US$ 360 billion). Compare this to Hong Kong’s economy of US$ 340 billion in 2017. In that same period the Greek GDP has declined from about US$ 300 billion (€ 270 billion) in 2010 to US$ 218 billion (€ 196 billion), a reduction of 27%, hitting the middle- and lower-class people by far the hardest. This is called a rescue?

The democracy fiasco of July 2015 prompted Tsipras to call for snap elections in September 2015, hélas – he won, with a narrow margin and one of the lowest election turnouts ever in Greek postwar history; but, yes, he ‘won’. How much of it was manipulated – by now Cambridge Analytica has become a household word – so he could finish the job for the troika and the German and French banks, is pure speculation.

Today, the ND has an absolute majority in Parliament, plus the ND could ally with a number of smaller and conservative parties to pursue a “people’s dream” line policy. But they may do the opposite. Question: How much more juice is there to be sucked out of broken Greece? Of a Greece that cannot care for her people, for her desperate poor and sick, cannot provide her children with a decent education, of a Greece that belongs into the category of bankruptcy? Yes, bankruptcy, still today, after the IMF and the gnomes of the EU and the ECB predict a moderate growth rate of some 2%?  But 2% that go to whom?  Not to the people, to be sure, but to the creditors of the €310 billion.

Already in 2011, the British Lancet stated “the Greek Ministry of Health reported that the annual suicide rate has increased by 40%”, presumably since the (imposed) crisis that started in 2008. From this date forward the suicide rate must have skyrocketed, as the overall living conditions worsened exponentially. However, precise figures can no longer be easily found.

The question remains: Is the Greek population dying increasingly from diseases that could be cured, but aren’t due to austerity- and privatization-related lack of medication and health services and of suicide from desperation? Is Greece committing suicide by continuing to accept austerity and privatization of vital services, instead of liberating herself from the handcuffs of the euro and very likely the stranglehold of the EU?  Or is Greece the victim of sheer murder inflicted by a greed-driven construct of money institutions and oligarchs, who are beyond morals, beyond ethics and beyond any values of humanity? You be the judge.

• First published by the New Eastern Outlook – NEO

Iran Seizure of a British Tanker: More than Tit for Tat

The British-flagged tanker “Steno Impero”, heading for Saudi Arabia, was seized on Friday, 19 July 2019, by the Islamic Revolutionary Guard Corps (IRGC), in the Strait of Hormuz, after it rammed an Iranian fishing boat, whose distress call it ignored.

The tanker was taken to an Iranian port, because it was not complying with “international maritime laws and regulations,” Iran’s Revolutionary Guard said. Most importantly, the ship did not respond to several warnings from helicopters and Iranian boats, as apparently it turned off its transponder. How could that happen under control of professional sailors, other than as an open provocation.

Shipping safety in the Strait of Hormuz is crucial. Between 20% and 30% of the world’s hydrocarbons are shipped through this narrow passage of international water way before entering the Gulf of Oman. The strait is closely watched by Iran, as it is of utmost security concern for Iran. If this passage were to be closed due to conflict, it could bring down the world economy.

Do those that play these provocations, the UK as a handler dancing to the strings pulled by of Washington, realize what’s at stake?  Do they want to bring the Middle East to the brink of war? A regional war that could easily convert into a world war? That may well be the longer-term intention. In the short-run, though, it looks like pushing the escalation to a point where US ‘Client Europe’ may be discouraged from insisting on maintaining their part of the Iran Nuclear deal, or the Joint Comprehensive Plan of Action (JCPOA), and to blackmail Iran into a bilateral negotiation with the US on Iran’s nuclear program.

The first objective may be achieved; the second – no way. Iran is not falling for such fraud, especially with the country that pulled unilaterally out of the deal that was negotiated for two years (since November 2013) before it was signed in Vienna, Austria on 14 July 2015, by the 5+1 (the five permanent members of the UN Security Council – China, France, Russia, UK and US – plus Germany and the European Union, and, of course, Iran).

Not only did President Trump, guided by his buddy, Israel’s Netanyahu, tear up the agreement unilaterally, but he also reinstated one of the most severe economic sanctions programs on Iran, plus all the western lies and smear propaganda launched against Iran. It is sheer insanity to believe that Iran would, under these circumstances, go to the negotiating table with her hangman. That will not happen. But war tensions are being further raised which is fully in the direction of the war criminal-in-chief, John Bolton’s dream, ever since the invasion in 2003 of Iraq which he also helped to engineer. It is like this sick man’s raison d’être. Mass killing by war and conflict is in his genes. The world can only hope that Trump, or those who pull the strings behind Trump, will eventually dismiss Bolton.

Iran has already said that they will launch a full investigation into the British tanker’s, Steno Impero’s, sailing off course and ramming a fishing boat and that the UK is invited to participate in the investigation.

Backtracking to 4 July, when the British Royal Marines seized the Iranian tanker Grace 1 in Spanish waters, off the coast of Gibraltar, under the pretext that the super tanker was carrying oil destined for Syria which was under the EU’s sanction program. Iran’s Foreign Minister Javad Zarif, denied that the oil was destined for Syria; did, however, not elaborate further.

Spanish Foreign Minister, Mr. Josep Borrell, said that Washington informed Spain about the impending capture by the UK of the Iranian tanker in Spanish territorial waters. Spain could have said “no” but didn’t. Why not? Afraid of sanctions?

The UK did the bidding of Washington against her own interests, because the UK was one of three EU countries – Germany, France and UK – who at least made it appear as if they wanted to preserve their part of the Iran Nuclear Deal. Mind you, this is not for love of Iran, but pure business interest. Iran should be aware of that – meaning, Iran could be shot in the back at any time by the EU, by the very countries that try – or make appear they try – to circumvent the US sanctions.

What happened on 4 July was an act of sheer piracy, nothing less. A crime on high seas which the west just tolerated. The vessel is still under British control, while the arrested crew has since been liberated. Aside from the fact that Iran’s capture of the British oil tanker may look like tit for tat, Iran acted fully legitimate, as its Revolutionary Guard is policing the Strait of Hormus for security of other ships sailing through the narrow passage.

In one of his typical outbreaks of a madman, President Trump warned in a televised ‘fire and fury’ speech at the white House on Friday 19 July, “We have the greatest ships – the most deadly ships, we don’t want to have to use them. We hope for [Iran’s] sake they don’t do anything foolish. If they do, they will pay a price like nobody’s ever paid.”

Why would Trump not use the same language to warn the Brits for their pirating an Iranian vessel in Spanish waters? Well, we know this is the crazy, unbalanced and off-kilter world we live in. It’s so normal, people in the west take this imbalance and injustice, this double-talk and hypocrisy as the gospel.

All indications are, however, while building up a war scene, the US are seeking justification for what they had already called out – an alliance of the willing to send war ships to the Straight of Hormus to assure safe passage for ‘everybody’. Well, this would certainly not fly with Iran. But important to know is what’s behind this idea. Imagine the US navy and her puppet allies controlling the sea passage through which almost a third of all the world’s hydrocarbon sails every day. Washington would have one more tool to sanction, strangle countries they feel do not bend enough to Washington’s dictate. Their oil shipment would be withheld, to bring their economy down.  This might be the most effective weapon yet.

World beware! Even those who are in favors with the self-declared hegemon, you never know when the pendulum may swing the other way, simply because the Israel-driven US of A may be on a whim aggression course against an imaginary enemy, or corporate interests are shifting.  In conclusion nobody would be safe and, the world economy could come crashing down, like a house of cards, making 2008 look like a walk in the park.

The World is Dedollarizing

What if tomorrow nobody but the United States would use the US-dollar? Every country, or society would use their own currency for internal and international trade, their own economy-based, non-fiat currency. It could be traditional currencies or new government controlled crypto-currencies, but a country’s own sovereign money. No longer the US-dollar. No longer the dollar’s foster child, the Euro. No longer international monetary transactions controlled by US banks and – by the US-dollar controlled international transfer system, SWIFT, the system that allows and facilitates US financial and economic sanctions of all kinds – confiscation of foreign funds, stopping trades between countries, blackmailing ‘unwilling’ nations into submission. What would happen? Well, the short answer is that we would certainly be a step closer to world peace, away from US (financial) hegemony, towards nation states’ sovereignty, towards a world geopolitical structure of more equality.

We are not there yet. But graffities are all over the walls signaling that we are moving quite rapidly in that direction. And Trump knows it and his handlers know it which is why the onslaught of financial crime – sanctions, trade wars, foreign assets and reserves confiscations, or outright theft – all in the name of “Make America Great Again”, is accelerating exponentially and with impunity. What is surprising is that the Anglo-Saxon hegemons do not seem to understand that all the threats, sanctions, trade barriers, are provoking the contrary to what should contribute to American Greatness. Economic sanctions, in whatever form, are effective only as long as the world uses the US dollar for trading and as reserve currency.

Once the world gets sick and tired of the grotesque dictates of Washington and the sanction schemes for those who do no longer want to go along with the oppressive rules of the US, they will be eager to jump on another boat, or boats, abandoning the dollar and valuing their own currencies. Meaning trading with each other in their own currencies and that outside of the US banking system which so far even controls trading in local currencies, as long as funds have to be transferred from one nation to another via SWIFT.

Many countries have also realized that the dollar is increasingly serving to manipulate the value of their economy. The US-dollar, a fiat currency, by its sheer money mass, may bend national economies up or down, depending in which direction the country is favored by the hegemon. Let’s put the absurdity of this phenomenon in perspective.

Today, the dollar is based not even on hot air and is worth less than the paper it is printed on. The US GDP is US$ 21.1 trillion in 2019 (World Bank estimate), with current debt of 22.0 trillion, or about 105% of GDP. The world GDP is projected for 2019 at US$ 88.1 trillion (World Bank). According to Forbes, about US$ 210 trillion are “unfunded liabilities” (net present value of future projected but unfunded obligations (75 years), mainly social security, Medicaid and accumulated interest on debt), a figure about 10 times the US GDP, or two and a half times the world’s economic output.

This figure keeps growing, as interest on debt is compounded, forming part of what would be called in business terms ‘debt service’ (interest and debt amortization), but is never ‘paid back’. In addition, there are about one to two quadrillion dollars (nobody knows the exact amount) of so-called derivatives floating around the globe. A derivative is a financial instrument which creates its value from the speculative difference of underlying assets, most commonly derived from such inter-banking and stock exchange oddities, like ‘futures’, ‘options’, ‘forwards’ and ‘swaps’.

This monstrous debt is partly owned in the form of treasury bonds as foreign exchange reserves by countries around the world. The bulk of it is owed by the US to itself – with no plans to ever “pay it back” – but rather create more money, more debt, with which to pay for the non-stop wars, weapon manufacturing and lie-propaganda to keep the populace quiet and in lockstep.

This amounts to a humongous worldwide dollar-based pyramid system. Imagine, this debt comes crashing down, for example, because one or several big (Wall Street) banks are on the brink of bankruptcy, so, they claim their outstanding derivatives, paper gold (another banking absurdity) and other debt from smaller banks. It would generate a chain reaction that might bring down the whole dollar-dependent world economy. It would create an exponential “Lehman Brothers 2008” on global scale.

The world is increasingly aware of this real threat, an economy built on a house of cards, and countries want to get out of the trap, out of the fangs of the US-dollar. It’s not easy with all the dollar-denominated reserves and assets invested abroad, all over the globe. A solution may be gradually divesting them (US-dollar liquidity and investments) and moving into non-dollar dependent currencies, like the Chinese Yuan and the Russian Ruble, or a basket of eastern currencies that are delinked from the dollar and its international payment scheme, the SWIFT system. Beware of the Euro, it’s the foster child of the US-dollar!

There are increasingly blockchain technology alternatives available. China, Russia, Iran and Venezuela are already experimenting with government-controlled cryptocurrencies to build new payment and transfer systems outside the US-dollar domain to circumvent sanctions. India may or may not join this club – whenever the Modi Government decides which way to bend – east or west. The logic would suggest that India orients herself to the east, as India is a significant part of the huge Eurasian economic market and landmass.

India is already an active member of the Shanghai Cooperation Organization (SCO) – an association of countries that are developing peaceful strategies for trade, monetary security and defense, comprising China, Russia, India, Pakistan, most Central Asian countries and with Iran waiting in the wings to become a full-fledged member. As such, SCO accounts for about half of the world population and a third of the world’s economic output. The east has no need for the west to survive. No wonder that western media hardly mention the SCO which means that the western average public at large has no clue what the SCO stands for, and who are its members.

Government-controlled and regulated blockchain technology may become key to counter US coercive financial power and to resist sanctions. Any country is welcome to join this new alliance of countries and new but fast-growing approach to alternative trading – and to finding back to national political and financial sovereignty.

In the same vein of dedollarization are Indian “barter banks”. They are, for example, trading Indian tea for Iranian oil. Such arrangements for goods to be exchanged against Iranian petrol are carried out through Indian “barter banks”, where currencies; i.e., Iranian rials and Indian rupees, are handled by the same bank. Exchange of goods is based on a list of highest monetary volume Indian trade items, against Iranian hydrocarbon products, for example, Iran’s large import of Indian tea. No monetary transaction takes place outside of India, therefore, US sanctions may be circumvented, since no US bank or US Treasury interference can stop the bilateral trade activities.

At this point, it might be appropriate to mention Facebook’s attempt to introduce a globe-spanning cryptocurrency, the Libra. Little is known on how exactly it will (or may) function, except that it would cater to billions of Facebook members around the world. According to Facebook, there are 2.38 billion active members. Imagine, if only two thirds – about 1.6 billion – opened a Libra account with Facebook, the floodgate of Libras around the world would be open. Libra is or would be a privately-owned cryptocurrency – and coming from Facebook – could be destined to replace the dollar by the same people who are now abusing the world with the US-dollar. It may be projected as the antidote to government-controlled cryptocurrencies, thus, circumventing the impact of dedollarization. Beware of the Libra!

Despite US and EU sanctions, German investments in Russia are breaking a 10-year record in 2019, by German business pouring more than €1.7 billion into the Russian economy in the first three months of 2019. According to the Russian-German Chamber of Commerce, the volume of German companies’ investments in Russia is up by 33% – by € 400 million – since last year, when total investments reached € 3.2 billion, the largest since 2008. Despite sanctions which amounted to about € 1 billion combined for 140 German companies surveyed and registered with the Chamber of Commerce, and despite western anti-Russia pressure, Russia-German trade has increased by 8.4 percent and reached nearly € 62 billion in 2018.

In addition, notwithstanding US protests and threats with sanctions, Moscow and Berlin continue their Nord Stream 2 natural gas pipeline project which is expected to be finished before the end of 2019. Not only is the proximity of Russian gas a natural and logical supply source for Germany and Europe, it will also bring Europe independence from the bullying sales methods of the United States. And payments will not be made in US dollars. In the long-run, the benefits of German-Russian business and economic relations will far outweigh the illegal US sanctions. Once this awareness has sunk in, there is nothing to stop Russian-German business associations to flourish, and to attract other EU-Russian business relations – all outside of the dollar-dominated banking and transfer system.

President Trump’s trade war with China will eventually also have a dedollarization effect, as China will seek – and already has acquired – other trading partners, mostly Asian, Asian-Pacific and European with whom China will deal in other than dollar-denominated contracts and outside the SWIFT transfer system, for example, using the Chinese International Payment System (CIPS) which, by the way, is open for international trade by any country across the globe.

This will not only circumvent punishing tariffs on China’s exports (and make US customers of Chinese goods furious, as their Chinese merchandise is no longer available at affordable prices, or no longer available at all), but this strategy will also enhance the Chinese Yuan on international markets and boost the Yuan even further as a reliable reserve currency, even outranking the US-dollar. In fact, in the last 20 years, dollar-denominated assets in international reserve coffers have declined from more than 90% to below 60% and will rapidly decline further as Washington’s coercive financial policies prevail. Dollar reserves are rapidly replaced by reserves in Yuan and gold, and that even in such staunch supporters of the west as is Australia.

Washington also has launched a counter-productive financial war against Turkey, because Turkey is associating and creating friendly relations with Russia, Iran and China, and foremost, because Turkey, a NATO stronghold, is purchasing the Russian S-400 cutting-edge air defense system, a new military alliance which the US cannot accept. As a result, the US is sabotaging the Turkish currency, the Lira which has lost 40% since January 2018.

Turkey will certainly do whatever it can to get out from under the boot of the US-dollar stranglehold and currency sanctions and further ally itself with the East. This amounts to a double loss for the US. Turkey will most likely abandon all trading in US dollars and align her currency with, for example, the Chinese Yuan and the Russian ruble, and, to the detriment of the Atlantic alliance, Turkey may very likely exit NATO. Abandoning NATO will be a major disaster for the US, as Turkey is both strategically, as well as in terms of NATO military power one of the strongest – if not the strongest – nation of the 29 NATO members, outside of the US.

If Turkey exits NATO, the entire European NATO alliance will be shaken and questioned. Other countries, long wary of NATO and of storing NATO’s nuclear weapons on their soils, especially Italy and Germany, may also consider exiting NATO. In both Germany and Italy, a majority of the people is against NATO and especially against the Pentagon waging wars from their NATO bases in their territories in Germany in Italy.

To stem against this trend, the former German Defense Minister, Ursula von der Leyen, from the conservative German CDU party, is being groomed to become Jean-Claude Juncker’s successor as President of the European Commission. Mr. Juncker served since 2014. Ms. Von der Leyen was voted in tonight, 17 July, with a narrow margin of 9 votes. She is a staunch supporter of NATO. Her role is to keep NATO as an integral part of the EU. In fact, as it stands today, NATO is running the EU. This may change, once people stand up against NATO, against the US vassal, the EU Administration in Brussels, and claim their democratic rights as citizens of their nation states.

Europeans sense that these Pentagon initiated and ongoing wars and conflicts, supported by Washington’s European puppet allies, may escalate into a nuclear war, their countries’ NATO bases will be the first ones to be targeted, sinking Europe for the 3rd time in 100 years into a world war. However, this one may be all-destructive nuclear, and nobody knows or is able to predict the damage and destruction of such a catastrophe, nor the time of recovery of Mother Earth from an atomic calamity.

So, let’s hope Turkey exits NATO. It would be a giant step towards peace and a healthy answer to Washington’s blackmail and sabotage against Turkey’s currency. The US currency sanctions are, in the long run, a blessing. It gives Turkey a good argument to abandon the US dollar and gradually shift towards association with eastern moneys, mainly the Chinese Yuan, thereby putting another nail in the US-dollar’s coffin.

However, the hardest blow for Washington will be when Turkey exits NATO. Such a move will come sooner or later, notwithstanding Ms. Von der Leyen’s battle cries for NATO. The breaking up of NATO will annihilate the western power structure in Europe and throughout the world, where the US still maintains more than 800 military bases. On the other hand, the disbanding of NATO will increase the world’s security, especially in Europe – for all the consequences such an exit will bear. Exiting NATO and economically exiting the US-dollar orbit is a further step towards dedollarization, and a blow to US financial and military hegemony.

Finally, investments of the Chinese Belt and Road Initiative (BRI), also called the New Silk Road, will be mostly made in Yuan and local currencies of the countries involved and incorporated in one or more of the several BRI land and maritime routes that eventually will span the globe. Some US-dollar investments may serve the People’s Bank of China, China’s Central Bank, as a dollar-divesting tool of China’s huge dollar reserves which currently stands at close to two trillion dollars.

The BRI promises to become the next economic revolution, a non-dollar economic development scheme, over the coming decades, maybe century, connecting peoples and countries – cultures, research and teaching without, however, forcing uniformity, but promoting cultural diversity and human equality – and all of it outside the dollar dynasty, breaking the nefarious dollar hegemony.

• First published at New Eastern Outlook (NEO)