Category Archives: Cryptocurrency

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.

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)

Libra: Facebook’s Audacious Bid for Global Monetary Control

Payments can happen cheaply and easily without banks or credit card companies. This has now been demonstrated – not in the United States but in China. Unlike in the US, where numerous firms feast on fees from handling and processing payments, in China most money flows through mobile phones nearly for free. In 2018 these cashless payments totaled a whopping $41.5 trillion; and 90% were through Alipay and WeChat Pay, a pair of digital ecosystems that blend social media, commerce and banking. According to a May 2018 article in Bloomberg titled “Why China’s Payment Apps Give U.S. Bankers Nightmares”:

The nightmare for the U.S. financial industry is that a technology company—whether from China or a homegrown juggernaut such as Amazon.com Inc. or Facebook Inc.—replicates the success of Alipay and WeChat in America. The stakes are enormous, potentially carving away billions of dollars in annual revenue from major banks and other firms.

That threat may now be materializing. On June 18, Facebook unveiled a white paper outlining ambitious plans to create a new global cryptocurrency called Libra, to be launched in 2020. The New York Times says Facebook has high hopes that Libra will become the foundation for a new financial system free of control by Wall Street power brokers and central banks.

But apparently Libra will not be competing with Visa or Mastercard. In fact, the Libra Association lists those two giants among its 28 soon-to-be founding members. Others include Paypal, Stripe, Uber, Lyft and eBay. Facebook has reportedly courted dozens of financial institutions and other tech companies to join the Libra Association, an independent foundation that will contribute capital and help govern the digital currency. Entry barriers are high, with each founding member paying a minimum of $10 million to join. This gives them one vote  (or 1% of the total vote, whichever is larger)  in the Libra Association council. Members are also entitled to a share proportionate to their investment of the dividends earned from  interest on the Libra reserve – the money that users will pay to acquire the Libra currency.

All of which has raised some eyebrows, both among financial analysts and crypto activists. A Zero Hedge commentator calls Libra “Facebook’s Crypto Trojan Rabbit.” An article in FT’s Alphaville calls it “Blockchain, but Without the Blocks or Chain.” Economist Noriel Roubini concurs, tweeting:

It will start as a private, permissioned, not-trustless, centralized oligopolistic members-only club. So much for calling it “blockchain”. … [I]t is blockchain in name only and a monopoly to extract massive seignorage from billions of users. A monopoly scam.

Another Zero Hedge writer calls Libra “The Dollar’s Killer App,” which threatens “not only the power of central banks but also the government’s money monopoly itself.”

From Frying Pan to Fire?

To the crypto-anarchist community, usurping the power of central banks and governments may sound like a good thing. But handing global power to the corporate-controlled Libra Association could be a greater nightmare. So argues Facebook co-founder Chris Hughes, who writes in The Financial Times:

This currency would insert a powerful new corporate layer of monetary control between central banks and individuals. Inevitably, these companies will put their private interests — profits and influence — ahead of public ones. . . .

The Libra Association’s goals specifically say that [they] will encourage “decentralised forms of governance”. In other words, Libra will disrupt and weaken nation states by enabling people to move out of unstable local currencies and into a currency denominated in dollars and euros and managed by corporations. . . .

What Libra backers are calling “decentralisation” is in truth a shift of power from developing world central banks toward multinational corporations and the US Federal Reserve and the European Central Bank.

Power will shift to the Fed and ECB because the dollar and the euro will squeeze out weaker currencies in developing countries. As seen recently in Greece, the result will be to cause their governments to lose control of their currencies and their economies.

Pros and Cons

In a June 9 review in Forbes, Caitlin Long, co-founder of the Wyoming Blockchain Coalition, agreed that Libra was a Trojan horse but predicted that it would have some beneficial effects. For one, she thought it would impose discipline on the US banking system by leading to populist calls to repeal their corporate subsidies. The Fed is now paying its member banks 2.35% in risk-free interest on their excess reserves, which this year is projected to total $36 billion of corporate welfare to US banks – about half the sum spent on the US food stamp program. If Facebook parks its entire US dollar balance at the Federal Reserve through one of its bank partners, it could earn the same rate. But Long predicted that Facebook would have to pay interest to Libra users to avoid a chorus of critics, who would loudly publicize how much money Facebook and its partners were pocketing from the interest on the money users traded for their Libra currency.

But that was before the Libra white paper came out. It reveals that the profits will indeed be divvied among Facebook’s Libra partners rather than shared with users. At one time, we earned interest on our deposits in government-insured banks. With Libra, we will get no interest on our money, which will be entrusted to uninsured crypto exchanges, which are coming under increasing regulatory pressure due to lack of transparency and operational irregularities.

UK economics professor Alistair Milne points to another problem with the Libra cryptocurrency: unlike Bitcoin, it will be a “stablecoin,” whose value will be tied to a basket of fiat currencies and short-term government securities. That means it will need the backing of real money to maintain its fixed price. If reserves do not cover withdrawals, who will be responsible for compensating Libra holders? Ideally, Milne writes, reserves would be held with the central bank; but central banks will be reluctant to support a private currency.

Caitlin Long also predicts that Facebook’s cryptocurrency will be a huge honeypot of data for government officials, since every transaction will be traceable. But other reviewers see this as Libra’s most fatal flaw. Facebook has been called Big Brother, the ultimate government surveillance tool. Conspiracy theorists link it to the CIA and the US Department of Defense. Facebook has already demonstrated that it is an untrustworthy manager of personal data. How then can we trust it with our money?

Why Use a Cryptocurrency at All?

A June 20th CoinDesk article asks why Facebook has chosen to use a cryptocurrency rather than following WeChat and AliPay in doing a global payments network in the traditional way. The article quotes Yan Meng, vice president of the Chinese Software Developer Network, who says Facebook’s fragmented user base across the world leaves it with no better choice than to borrow ideas from blockchain and cryptocurrency.

“Facebook just can’t do a global payments network via traditional methods, which require applying for a license and preparing foreign exchange reserves with local banking, one market after another,” said Meng. “The advantage of WeChat and AliPay is they have already gained a significant number of users from just one giant economy that accounts for 20 percent of the world’s population.” They have no need to establish their own digital currencies, which they still regard as too risky.

Meng suspects that Facebook’s long-term ambition is to become a stateless central bank that uses Libra as a base currency. He wrote in a June 16 article, “With sufficient incentives, nodes of Facebook’s Libra network would represent Facebook to push for utility in various countries for its 2.7 billion users in business, investment, trade and financial services,” which “would help complete a full digital economy empire.”

The question is whether regulators will allow that sort of competition with the central banking system. Immediately after Facebook released its Libra cryptocurrency plan, financial regulators in Europe voiced concerns over the potential danger of Facebook running a “shadow bank.” Maxine Waters, who heads the Financial Services Committee for the US House of Representatives, asked Facebook to halt its development of Libra until hearings could be held. She said:

This is like starting a bank without having to go through any steps to do it. . . . We can’t allow Facebook to go to Switzerland and begin to compete with the dollar without having any regulatory regime that’s dealing with them. 

A Stateless Private Central Bank or a Publicly Accountable One?

Facebook may be competing with more than the dollar. Jennifer Grygiel, Assistant Professor of Communications at Syracuse University, writes:

. . . [It] seems that the company is not seeking to compete with Bitcoin or other cryptocurrencies. Rather, Facebook is looking to replace the existing global financial system with an all-new setup, with Libra at its center.

At least at the moment, the Libra is being designed as a form of electronic money linked to many national currencies. That has raised fears that Libra might someday be recognized as a sovereign currency, with Facebook acting as a “shadow bank” that could compete with the central banks of countries around the world.

Caitlin Long thinks Bitcoin rather than Libra will come out the winner in all this; but Bitcoin’s blockchain model is too slow, expensive and energy-intensive to replace fiat currency as a medium of exchange on a national scale. As Josh Constine writes on Techcrunch.com:

[E]xisting cryptocurrencies like Bitcoin and Ethereum weren’t properly engineered to scale to be a medium of exchange. Their unanchored price was susceptible to huge and unpredictable swings, making it tough for merchants to accept as payment. And cryptocurrencies miss out on much of their potential beyond speculation unless there are enough places that will take them instead of dollars . . . . But with Facebook’s relationship with 7 million advertisers and 90 million small businesses plus its user experience prowess, it was well-poised to tackle this juggernaut of a problem.

For Libra to scale as a national medium of exchange, its governance had to be centralized rather than “distributed.” But Libra’s governing body is not the sort of global controller we want. Jennifer Grygiel writes:

Facebook CEO Mark Zuckerberg . . . is declaring that he wants Facebook to become a virtual nation, populated by users, powered by a self-contained economy, and headed by a CEO – Zuckerberg himself – who is not even accountable to his shareholders. . . .

In many ways the company that Mark Zuckerberg is building is beginning to look more like a Roman Empire, now with its own central bank and currency, than a corporation. The only problem is that this new nation-like platform is a controlled company and is run more like a dictatorship than a sovereign country with democratically elected leaders.

A currency intended for trade on a national—let alone international—scale needs to be not only centralized but democratized, responding to the will of the people and their elected leaders. Rather than bypassing the existing central banking structure as Facebook plans to do, several groups of economists are proposing a more egalitarian solution: nationalizing and democratizing the central bank by opening its deposit window to everyone. As explored in my latest book, “Banking on the People: Democratizing Money in the Digital Age,” these proposals could allow us all to get 2.35% on our deposits, while eliminating bank runs and banking crises, since the central bank cannot run out of funds. Profits from the public medium of exchange need to return to the public, rather than enriching an unaccountable, corporate-controlled Facebook Trojan horse.

• This article was first posted under a different title on Truthdig.org.

Venezuela: The Straw that Breaks the Empire’s Back?

Venezuela in the limelight on practically all the written, audio and visual mainstream media, as well as alternative media. A purposeful constant drip of outright lies and half-truths, “fake news”, as well as misleading information of all shades and hues about Venezuela is drumming our brains, slowly bending our minds towards believing that – yes, the US has a vital interest in meddling in Venezuela and bringing about “regime change”, because of primarily, the huge reserves of oil, but also of gold, coltan and other rare minerals; and, finally, simply because Washington needs full control of its “backyard”. BUT, and yes, there is a huge BUT, as even some of the respected progressive alternative media pretend to know: amidst all that recognition of the AngloZionist empire’s evil hands in Venezuela, their ‘but’ claims that Venezuela, specifically Presidents Chavez and now Maduro, are not blameless in their ‘economic chaos’. This distorts already the entire picture and serves the empire and all those who are hesitant because they have no clue, whom to support in this antagonistic US attempt for regime change.

For example, one alternative news article starts:

It is true that some of Venezuela’s economic problems are due to the ineptitudes of the Bolivarian government’s “socialist command” economy, but this overlooks the role played by the United States, the United Nations, and the European Union…

Bingo, with such a low-blow beginning, the uninformed reader is already primed to ‘discount’ much of the interference by Washington and its minions. Some of the-so-called progressive writers have already been brain-smeared, by calling Nicolás Maduro a “dictator”, when, in fact, there is hardly any country farther away from a dictatorship than Venezuela.

In the last 20 years and since Comandante Hugo Chavez Frias was first elected in 1998 and came to power in 1999, Venezuela had another 25 fully democratic elections, of which 6 took place in the last year and a half. They were all largely observed by the US based Carter Institute, the Latin American CELAC, some were even watched by the European Union (EU), the very vassal states that are now siding with Washington in calling President Maduro an illegitimate dictator and instead, they support the real illegitimate, never elected, US-CIA trained and appointed, Juan Guaidó. Former President Carter once said of all the elections he and his Institute observed, the ones in Venezuela were by far the most transparent and democratic ones. By September 2017, the Carter Center had observed 104 elections in 39 countries.

Despite this evidence, Washington-paid and corrupted AngloZionist MSM are screaming and spreading lies, ‘election fraud’; and Nicolás Maduro is illegal, a dictator, oppressing his people, depriving them of food and medication, sowing famine – he has to go. Such lies are repeated ad nauseam. In a world flooded by pyramid-dollars (fake money), the presstitute media have no money problem. Dollars, the funding source for the massive lie-propaganda, are just printed as debt, never to be repaid again. So, why worry? The same Zionists who control the media also control the western money machines; i.e., the FED, Wall Street, the BIS (Bank for International Settlement, the so-called Central bank of central banks), the European Central Bank, the Bank of England and the banks of London. The western public, armchair warriors, all the way to caviar socialists, believe these lies. That’s how our unqualified brains apparently work.

A recent independent poll found that 86% of all Venezuelans, including from the opposition, want no interference by the US and her puppet allies, but want to remain a sovereign state, deciding themselves on how to resolve their internal problem – economics and otherwise.

Let me tell you something. If Mr. Maduro would be a dictator – and all the diabolical adjectives that he is smeared with were to apply, he would have long ago stopped the western propaganda machine, which is the western controlled media in Venezuela; they control 90% of the news in Venezuela. But he didn’t and doesn’t, because he believes in freedom of speech and freedom of the ‘media’ even if the “media” are really nothing more than abject western lie-machine presstitutes. Mr. Maduro is generous enough not to close them down – which any dictator – of which there are now many in Latin America (take your pick: Argentina, Chile, Ecuador, Brazil, Colombia, Paraguay, Uruguay, Guatemala, Honduras….) would have done long ago.

*****

From the very beginning, when Hugo Chavez was first elected in 1998, Washington attempted to topple him to bring about “régime change”. The first real coup attempt took place on 11 April 2002. Under full command by Washington, Chavez was ousted for less than 2 days, when an on-swell of people and the vast majority of the military requested his reinstatement. Chavez was brought back from his island seclusion and, thus, the directly Washington-led coup d’état was defeated (“The Revolution Will Not Be Televised”). But the pressure mounted with economic sanctions becoming ever bolder and, in the case of Venezuela, they had severe economic and humanitarian impacts because Venezuela imports close to 90% of her food and medication – still today – and most of it from the US.

Both Chavez and Maduro had very little leeway of doing differently what they have already done. Sanctions, boycotts, outside money manipulations, driving inflation to astronomical levels and constant smear propaganda, these predicaments are biting hard. The US has a firm grip on Venezuela’s dollar dependency.

Last week, Washington confiscated about US$ 23 billion of Venezuela’s reserve money in US banks, blocked them from use by the legitimate Maduro government, and, instead, handed them to their US-appointed, puppet, never elected, “president”, Juan Guaidó.  He is now able to use Venezuela’s money in his US-EU-and Lima-Group supported “shadow” government. Will he dare?  I don’t think so. However, he has already invited US petrol companies to come to Venezuela and invest in and take over the petrol industry. Of course, it will not happen, as President Maduro stays in power, firmly backed by the military.

All of this sounds like a bad joke. Did you ever hear of Juan Guaidó, before the US and her European vassals almost unanimously and obediently aped Washington in supporting him?

Likewise, the Bank of England withheld 1.2 billion dollars’ worth of Venezuelan reserve gold, refusing to respond to the Maduro Government’s request to return the gold to Caracas. Both cases represent an extreme breach of confidence. Up to now, it was ethically, commercially and financially unthinkable that reserve money and gold deposited in foreign banks would not be safe from hooligan theft – because that’s what it is, what the US is doing, stealing other countries’ money that was deposited in good faith in their banks.

In a recent interview with RT, President Maduro said there was absolutely no need for “humanitarian aid”, as the UN suggested, prompted by the US. This so-called humanitarian aid has everywhere in the world only served to infiltrate ‘foreign and destabilizing’ elements into countries, just look at Syria, Libya, Iraq, Afghanistan, to name just a few. While the US$ 23 billion blocked in New York banks could have supplied Venezuela with 20 years-worth of medication for the Venezuelan people, Maduro asserted, Venezuela has enough liquidity to feed and medicate her people.

However, what this latest Trump plunder (the money and gold confiscation) does, is hammering one more nail in the western monetary system’s suicide coffin. It sends an ever-clearer signal to the rest of the world, to those that haven’t noticed yet, the AngloZionist empire cannot – I repeat – CANNOT – be trusted. Ever. And the European Union is intrinsically and “vassalically” linked to the Washington rogue state – not to be trusted either. There is virtually no circumstance under which a country’s assets in western foreign lands – as bank deposits, or foreign investments – are safe. It will prompt a move away from the dollar system, away from the western (also entirely privately-owned) SWFT international transfer system by which sanctions can be enacted.

Indeed, the Russia and China and much of the SCO (Shanghai Organization Cooperation) members are no longer dealing in US dollars but in their own currencies. We are talking about half the world’s population broke free from the dollar hegemony. Europe has started a half-assed attempt to circumvent the dollar and SWIFT system for dealing with Iran. Europe’s special purpose vehicle, or SPV, is called INSTEX — short for Instrument in Support of Trade Exchanges. It is a project of Germany, France and the UK, suspiciously chaired by the latter, to be endorsed by all 28 EU members.

It aims in a first instance at shipping “humanitarian aid” to Iran. Similarly, to Venezuela, Iran’s foreign Minister, Javad Zarif, after learning about the details, considered the conditions of INSTEX as insulting and rejected any dealings with Europe under this system. Iran, he said, does not need “humanitarian aid”, not from Europe, not from anybody. In the meantime, what was to be expected, has already happened. The Trump Administration issued a stern warning of “sanctions” to the EU, if they would attempt to deal with Iran outside of the dollar system. Europe is likely caving in, as they always do.

*****

Back in Venezuela, the NED (National Endowment for Democracy), the extended arm of the CIA, has, for the last two decades, trained funded and infiltrated ‘traitor’ agents into Venezuela, with the goal to assist the opposition to foment unrest, to carry out assassinations and other ‘false flags’, and to simply create chaos and unrest. However, some of these agents are also lodged in Venezuela’s financial institutions, as the Fifth Column, where they sabotage – often with threats – any economic policies that could rescue Venezuela from its economic predicament.

In June 2017, I was privileged to be a member of an economic advisory team to Mr. Maduro. During three days of intense discussions with government, a number of potential short- medium and long-term solutions emerged. They were well received by Mr. Maduro and his economic team. What became of these recommendations?  Well, maybe there are strong foreign-directed forces at play to prevent their implementation.

Clearly, any accusation that the Maduro Government may bear the blame for some of the economic chaos, have to be vigorously rejected. Mr. Maduro has very little space to maneuver the economy other than what he is already doing. His actions are severely limited by the ever-stronger squeeze by western claws.

With or without Venezuela’s new crypto currency, the oil-based Petro, the Venezuelan economy, including a major proportion of her imports, is strongly linked to the US dollar. With military threats and sanctions left and right, there is little that the Government can do in the immediate future to become autonomous. Yes, Russia and especially China will most likely help with balance of payment support loans, with investments in the oil industry to ease Venezuela’s US-dollar debt burden and vamp up oil production; and in the medium and longer run they may also help boost Venezuela’s agricultural sector towards 100% food self-sufficiency.

What is the real reason, you may ask, behind Trump’s intense ‘coup d’état’ attempt – aka, Bolton, Pompeo and Elliott Abrams (the ‘regime change’ envoy), or the diabolical troika’s killer mission?

  • Is it oil and other natural riches, like gold, coltan, diamonds and many more rare minerals? Venezuela with some 301,000 MMbbl (billions of barrels) of known reserves has about 12% more hydrocarbon reserves than Saudi Arabia. Shipping from the Gulf to Texas refineries takes 40-45 days and the risk of passing through the Iran-controlled strait of Hormuz. Delivering oil from Venezuela to Texas takes some 2-4 days.
  • Is it that Venezuela committed a mortal sin when circumventing the petro-dollar, when trading her hydrocarbons, notably with China and Russia in other currencies, like the gold-convertible yuan? – Remember, Saddam Hussein and Muamar Gadhafi attempted similar dollar-escaping actions – and look what it brought them. The US-dollar hegemony depends very much on oil and gas trade in US dollars, as per an agreement of the seventies between the US and Saudi Arabia, head of OPEC.
  • Is it that Washington cannot tolerate any socialist or socialist leaning country in its “backyard”?  Cuba and Nicaragua beware!
  • Is Venezuela a crucial stepping stone to fully dominate Latin America and her resources?  And, hence, a step closer to ‘full power dominance’ of the world?
  • Or all of the above?

I believe it’s all of the above, with a strong accent on Venezuela’s abandoning the US-dollar as hydrocarbon trading currency – putting the dollar-hegemony even more at risk. Once the dollar ceases to be the main reserve currency, the US economy will slowly collapse – what it is already doing. Twenty years ago, the US-dollar dominated world reserve coffers with about 90%. Today that proportion has sunk to less than 60%. The dollar is rapidly being replaced by other currencies, notably the Chinese yuan.

Now let’s cut to the chase.  It is clear that the Trump Administration with these stupid actions of dishing out sanctions left and right, punishing allies and foes alike, if they deal with Russia, Iran, or Venezuela – and this special blunt regime change aggression in Venezuela, nominating a 35 year old US puppet, trained in the US by CIA as Venezuela’s new ‘interim president’, confiscating Venezuela’s reserve assets in New York and London, stopping importing petrol from Venezuela and punishing anybody who imports Venezuelan oil except, of course, Russia and China. The ‘might’ of the US stops short of interfering in these non-dollar deals. With these and more ridiculous actions and military threats, Washington is actually not only isolating itself, but is accelerating the fall of the US economy. Ever more countries are seeking alternative ways of doing business with currencies and monetary systems other than the dollar-based fraudulent SWIFT, and eventually they will succeed. All they need to do is joining the China-Russia-SCO system of transfer in their local currencies and the currencies of the eastern SCO block and dedollarization is moving a step further ahead.

Dedollarization is the key to the end of the US (dollar) hegemony, of the US economic supremacy. The arrogant Trump, plus the impunity of the unfettered diabolical and outright dumb Bolton-Pompeo-Abrams approach of military threats and intimidations, may just make Venezuela the straw that breaks the Empire’s back.

China: A New Philosophy of Economics

China’s economic philosophy is a far cry from that of the west.

The west consistently seeks to undermine the interests of their partners, be it for trade or political agreements; be it partners from the west, their smaller and weaker brothers; or from the east; or from the south, there is always an element of exploitation, of “one-upmanship”, of outdoing a partner, of domination. Equality and fairness are unknown by the west. Or, when the concept was once known, at least by some countries and some people, it has been erased by indoctrinated neoliberal thinking – egocentricity, “me first”, and the sheer, all-permeating doctrine of “maximizing profits”; short-term thinking, instant gratification or more extreme, making a killing today for a gamble or deal that takes place tomorrow. Futures trading – the epitome of manipulating economic values. Only in the capitalist world.

This has become a key feature of western commerce and trading. It’s manipulation and exploitation over ethics; it’s Profits Über Alles! Doesn’t it sound like fascism? Well it is. And if the partner doesn’t fall for the ruse, coercion becomes the name of the game, and if that doesn’t work the western military move in with bombs and tanks, seeking regime change, destroying the very country the west wants to dominate. That’s western brutal economics – full hegemony. No sharing.

China’s approach is quite different. It’s one of sharing, of participating, of mutual benefits. China invests trillions of dollars equivalent in developing countries – Asia, especially India and now also Pakistan, Africa, South America, largely for infrastructure projects, as well as mining of natural resources. Unlike the gains from western investments, the benefits of China’s investments are shared. China’s investment and mining concessions are not coerced, but fairly negotiated. China’s investment relationship with a partner country remains peaceful and is not ‘invasive’ and abusive, as are most of those of the west which uses threats and guns to get what they want.

Of course, the west complains about Chinese investments, lying how abusive they are, when in reality the west is upset about Chinese competition in Africa and South America, continents that are still considered part of the western domain, as they were colonized for about thousand years by western powers and empires, and as of today, African and Latin-American countries are neo-colonized, no longer (for now) with brute military force, but with even more ferocious financial strangulation, through sanctions, boycotts and embargos; all highly illegal by any international standards. But there aren’t any international laws that are upheld. International courts and judges are coerced to obey Washington’s dictates, or else… literally “or else”; and these are serious threats.

Take the case of West and Central Africa, former French colonies. The French West African zone includes eight countries: Benin, Burkina Faso, Guinea Bissau, Ivory Coast, Mali, Niger, Senegal, Togo; and the French Central African area comprises six countries – Cameroon, the Central African Republic, Chad, Republic of the Congo, Equatorial Guinea and Gabon. All 14 countries have a common currency, the CFA franc (CFA = Communauté financière africaine – African Financial Community).

They are two separate currencies, though always at parity and therefore interchangeable. The Western and Central African monetary union have separate central banks, the Banque Centrale des États de l’Afrique de l’Ouest, BCEAO, headquartered in Dakar, Senegal; and the Banque des États de l’Afrique Centrale, BEAC, in Yaoundé, Cameroun. Both currencies are guaranteed by the French treasury. This means, in fact, that the economy of these 14 countries not only depends on France, but setting the value of the currency (at present one € = 655 CFA francs) is entirely the prerogative of the Banque de France (French Central Bank). This ultra-complicated setup between the two groups of former and new French colonies is not only a matter of French accounting, but foremost a means to confuse and distract the mostly innocent observer from a flagrant abusive reality.

With the French control over the West and Central African currencies, the foreign trading capacity of these countries is reduced to what France will allow. France has a de facto monopoly on these countries’ production. Should France stop buying their “former-new” colonies’ goods, the countries go broke, as they have been unable to develop alternative markets under the French yoke. Thus, they are always at the mercy of France, the IMF, World Bank and the African Development Bank. From labor slaves up to the early 1960s, they have become debt slaves of the neoliberal age.

In addition, to back this French Treasury guarantee, 85% of the countries’ foreign exchange reserves are blocked by the French Central Bank and may only be used by the respective counties against specific permission and as a loan. Imagine! The “former” French colonies have to borrow their own money from the French Central Bank. Similar debt enslaving is going on in former British and Portuguese colonies, though, none of them is as abjectly abusive as are the French.

Big wonder that Chinese investors are highly welcome in Africa. And knowing western manipulating and deranged mindsets, no wonder that China is demonized by the west as exploiting Africa to the bones, when exactly the contrary is the case. But almighty western lie-propaganda media has the brainwashed western populace believe China is stealing African natural resources. Chinese fairness is indeed tough competition against the usual western trickery and deceit.

In Africa, China is not only focusing on buying and trading natural resources, but on training and using local African brainpower to convert Africa from a western slave into an equal partner. For example, to boost African autonomy, China is using an approach, Gaddafi intended to apply – entering the wireless phone system, conquering some of the market with efficient batteries, and providing cheaper and more efficient services than the west, hence directly competing with the western exploited African telephone market. Chinese phones also come with their own browsers, so that internet may eventually be accessed in the remotest places of Africa, providing a top tool for education. Challenging the EU and US dominated multi-billion-dollar market, is just one of the reasons Gaddafi was miserably murdered by French-led NATO forces. Of course, China’s presence is a bit more difficult to kick than was Gaddafi’s.

This is just one more signal that China is in Africa – and Asia and Latin America – not just for the legendary American Quick Buck, but for genuine investments in long-term economic development which involves developing transportation networks, efficient and independent financial systems which may escape the western SWIFT and FED / Wall Street banking system through which US sanctions are imposed. This may involve the creation of government controlled blockchain currencies – see also Venezuela’s hydrocarbon-backed Petro – and linking African currencies to the Yuan and the eastern SCO (Shanghai Cooperation Organization) monetary system, freeing Africa from the dollar hegemony. With the help of China and Russia, Africa may, in fact, become the forerunner of crypto-currencies and, in the case of west-and central Africa, the 14 countries would be able to gain financial autonomy, and to the chagrin of the French Central Bank, manage their own financial resources, breaking loose from under the little-talked about French yoke. It is quite conceivable that with Chinese development assistance Africa will become an important trading partner for the east, leaving western exploiting and abusing business and banking magnates behind in the dust.

The Overseas Private Investment Cooperation (OPIC), a US private lending as well as investment guarantee agency, is upset about US investors losing out to Chinese and wants US corporations to compete more aggressively which is precisely what Africa rejects, America’s violent bombing approach to impose her trade and concession rules with the coercing help of the IMF and the World Bank. Africa is seeking – finally – sovereignty, deciding over her own financial and political destiny. This includes choosing investors and trading partners of their liking.

Many African and South American countries prefer China’s yuan-investments, rather than Washington’s US-dollar investments. It’s ‘softer’ money coming from the Chinese. For China it’s also a way of diverting the world from the US-dollar, providing incentives for countries to divest their dollar reserves into yuan reserves. That is already happening at accelerating speed.

China’s outlook at home and abroad is nothing less than spectacular. On the home front, they are building cutting-edge technology transport infrastructure, such as high-speed railways, for example, connecting Shanghai and Hangzhou, cutting travel time from one and a half hour in half. China’s high-speed bullet train connects for the first time Hong Kong with the mainland, cutting travel time Hong Kong to Beijing from 24 hours to 9 hours.

In October 2018, after nine years construction, President Xi Jinping opened the world’s longest sea crossing bridge, linking Hong Kong to Macau and the mainland Chinese city of Zhuhai. The bridge is 55 km long, about 20 times the length of San Francisco’s Golden Gate bridge. In urban development, existing and new multi-million people cities are planned, expanded and stamped out of the ground in less than a generation.

China has just built a US$ 2.1 billion AI (Artificial Intelligence) industrial park, and is not sleeping either on the environmental protection and development front, investing billions in research and development of alternative clean energies, especially solar power and its storage potential, next generation beyond lithium batteries, ranging from lithium solid state to electrolyte materials to graphene batteries and eventually to copper foam substrate. And that’s not the end of the line. Each battery technology offers increased capacity, safety and charging and discharging speed.

On the domestic and international front, the Belt and Road (B and R) Initiative – the New Silk Road – is China’s President Xi’s phenomenal geo-economic initiative to connect the world from China with several transport routes and develop in a first step Western China, Eastern Russia, Central Asia and Eastern Europe – all the way to the frontiers of western Europe. This massive economic development program includes industrial parks, trade and cultural interchanges, research and development through existing universities and new science and learning centers. Maritime routes are also foreseen entering Africa through Kenya and Southern Europe and the Middle East via the Greek port of Piraeus and Iran. A southern route is also planned to enter the southern cone of Latin America.

The endeavor is so huge, it has recently been inscribed into the Chinese Constitution. It will mobilize in the coming decades and possibly century trillions of yuan and dollar-equivalent of investments, mostly from China, Russia, the other SCO countries, as well as European partners, and foremost the Beijing-based AIIB (Asian Infrastructure and Investment Bank) which has already 70 member countries, among them Australia, Canada, Western European nations and close to 20 prospective new countries; but not the United States of America.

This giant project, is, of course, not without challenges. While the need for proof of “credit worthiness” by being tied to the IMF and World Bank of the eighties and nineties had since long faded into oblivion, China is still bound to the IMF and WB. Why?  In my opinion it proves two things, The People’s Bank of China – the Chinese Central Bank – is still controlled by the FED and BIS (Bank for International Settlement, alias, central bank of all central banks), and a strong Fifth Column that doesn’t yield an inch of their power. The Chinese leadership could implement the necessary changes towards full financial sovereignty but, why is that not happening? Western threats and their secret services have become ever more sophisticated abduction and “neutralizing” machines over the past 70 years.

The next question is what’s the Chinese lending limit to countries who have already or will subscribe to the Belt and Road Initiative to help them repay western debt and integrate into the new eastern economic model and monetary system? The question is relevant, because China’s money supply is based on China’s economic output; unlike western currencies which are purely fiat money (hot air).

Also, how will ownership of foreign assets; i.e., infrastructure funded and perhaps built, be dealt with? Will they become Chinese property, increasing China’s capital base and flow of money? Or would they be negotiated as long-term concessions, after which a country may repay to acquire sovereign ownership, or transfer part or all of the assets to China as a shareholder. These are relevant considerations, especially with regard to the huge B&R investments foreseen in the coming years. These decisions should be made autonomously by Chinese leadership, totally outside the influence of western monetary czars, like IMF and WB.

Another issue which is steadily and increasingly cropping up in the west, of course, to demonize China and discourage “western civilized” (sic) countries to associate themselves with socialist China is China’s concept of “Social Credits”. It is largely based on what the west calls a dictatorial, freedom-robbing surveillance state with cameras and face-recognition everywhere. Of course, totally ignoring the western own Orwellian Big Brother Surveillance and lie apparatus which calls itself democracy, and, in fact, is a democracy for then the elite of the plutocrats, gradually and by heavy propaganda brainwashing converting what’s left of ‘democracy’ into outright fascism, we, in the west, are almost there. And this, to the detriment of the “Silent Lambs” as per Rainer Mausfeld’s latest book, in German, “Why are Lambs Silent” (German Westend-Verlag). Yes, that’s what we have become: “Silent Lambs”.

It is too easy to demonize China for attempting to create a more harmonious, cohesive and peaceful society. Granted, this surveillance in China as in the west, demolishes to a large extent individualism, individual thinking, thereby limiting human creativeness and freedom. This is a topic which the Chinese socialist government, independent of western critique, may have to address soon to keep precisely one of the key principles of Chinese society alive – ‘social cohesiveness’ and a sense of equality and freedom.

What is the “Social Credit” system? It is a digital footprint of everything the Chinese do, as private citizens, as corporate managers in production as well as banking, workers, food sellers, in order to basically create an ambiance of full transparency (that’s the goal – far from having been reached), so as to establish citizens’ and corporations’ “creditworthiness”, in financial terms, but also assessing crime elements, political inclinations, radicalism, to prevent potential terror acts (interestingly, in the case of most western terror acts, officials say the ‘terrorists’ were known to the police which simply leaves you to conclude that they acted in connivance with the forces of order); and to enhance food safety in restaurants and by other food sellers.

In other words, the aim is to establish corporate and individual “score cards” which will work as a rewards and punishment system, a “carrot and stick” approach. Depending on the crime or deviation from the rule, you may be reprimanded and get ‘debits’ which you may wipe out by changing your behavior. Living under the spell of debits may limit, for example, your access to comfortable or speedy travel, better and speedier trains, air tickets, certain cultural events and more.

Yes, the idea of creating a stable domestic society has its drawbacks – surveillance – demolition of much of individualism, creativity, by implanting conformity. The government’s axiom is “we want a society where people don’t desire to break the rules, but the earliest stage is that they are afraid to break the rules.”

In the end, the question is, will the “Social Credits” approach to societal living, meaning a total surveillance state with every data recorded into a network of total control, be beneficial or detrimental for the Chinese goal to push ahead with her extraordinary and mostly egalitarian economic development approach, transport and industrial infrastructure, scientific research and cultural exchange – called Belt and Road, alias the New Silk Road? Only the future will tell; but the Chinese are not alone. They have solid partners in the SCO and long-term economic development endeavors never work in linear values, but with the unknown of dynamics to which humans are uniquely adapted to adjust.

• First published in New Eastern Outlook (NEO)

New US Sanctions on Iran and their Impact

(PressTV referring to the New Sanctions regime imposed by the US, as of 7 August 2018.)

PressTV:  How do you see this?

Peter Koenig: First off, this is just another flagrant violation of international law, even of US law, after having ratified the Nuclear Deal. Any interference in another country’s economic affairs, including in a country’s trade sovereignty, is an international crime. That’s precisely what Trump, under the leadership of those who command him, is doing. For example, Netanyahu, is largely calling the shots in Washington.

The idea is weakening Iran to the point that a war would be easier. Although, I really do not believe that the US is daring to go to war with Iran. They know too well what’s at stake with Russia and China firmly behind Iran.

They may send Israel as a forerunner to attack Iran and wait for Iran’s reaction. But even that, I believe will be a losing proposition. The empire knows it’s on a descending course. This is fearmongering and warmongering, which will allow the war industrial complex to increase its profits as a last-ditch effort.

But Iran, in fact, has nothing to fear if she plays her cards according to what she knows is best: Applying the principles of resistance economy, meaning foremost de-linking from the dollar economy and becoming quickly food self-sufficient, with increased trading with the East; i.e., the Shanghai Cooperation Organization (SCO) countries.

PressTV: What are Iranian options to counter this?

PK: Well, as indicated before, Iran should gradually but ever so fast detach from the dollar economy. As a matter of fact, one of the sanctions prohibits Iran from dealing in dollars. All the better. Iran has other resources, or it must now look for other resources, like the Yuan and the Ruble – and other SCO currencies – and definitely do whatever is needed to hasten the pace towards full integration into the eastern economy. And, realize her plan of creating her own crypto-currency, similar to Venezuela’s Petro, based on and backed by Iran’s immense reserves of hydrocarbon.

Let’s not forget, and I have said this many time before – the future is in the East.

Always remember what President Putin has come to tell The Ayatollah last November, namely, that sanctions were the best thing that ever happened to Russia since the collapse of the Soviet Union. It forced Russia to rebuild its economy towards self-sufficiency, especially agriculture where in the 90s everything was imported from the EU. Now Russia is fully food self-sufficient. Actually Russia has become the world’s largest exporter of wheat by far, for the last two years, and this year also promises to be a record year.

Similar, with renewing Russia’s industrial park, Russia today has a cutting-edge technology industry, and can compete everywhere in the world. Russia is immune to sanctions.

Iran can do the same. Mr. Rouhani, a few weeks ago, said something to this effect, namely, that the course of moving away from the west – meaning also the EU/Europe and the Euro – may hurt at the beginning for a short while, but once that hurdle is overcome, they will be independent, gained new political and economic sovereignty. And that’s the way to go.

However, Iran has a strong Fifth Column which will not shy away from starting internal protests and upheavals against the government. These are people trained by the US/CIA, NATO to do exactly that – bringing an internal conflict about – that the US and its vassals hope will eventually lead to Regime Change, forced from within.

This, I believe is the biggest challenge, confronting and combating the Iranian Fifth Column.

Mind you Fifth Columns are everywhere. They are also in Russia, China, Venezuela, North Korea…

This is the means the empire uses.

Fifth Columnists were largely responsible for the Arabs Spring and for what was eventually called the ‘civil war’ (sic) in Syria.

PressTV: How will EU, Russia and China hold up to their side of the deal?

PK:  Surely Russia and China will stand up for Iran. They are true allies.

I would not trust Brussels; i.e., the EU – not for an inch.

They say now they will stand up to the Nuclear Deal, respect it. But when it comes down to it, they will abandon it all the same.

I think their saying so now is maybe just a ruse to incite Iran to trust them and to continue doing business with them. But you know, doing business with the EU, meaning with euro as trading currency, is the same as doing business in dollars. The euro is but a foster child of the US dollar, and therefore Iran would still be bound and linked to the US dollar hegemony.  And, worse, would continue being vulnerable to US sanctions.

The Balkanization of South America and the Role of Fifth Columns Throughout the World

During the recent meeting in Caracas of the Venezuelan Presidential Economic Advisory Commission, in mid-June 2018, President Maduro said something extremely interesting, but also extremely disturbing, nonetheless highly important for the region to be aware of. Mr. Maduro mentioned Yugoslavia, the foreign induced local conflicts, the breakup and dismemberment of Yugoslavia, starting with the “Ten Days War” on Slovenia in 1991, the Croatian War (1991-95); the Bosnia War (1992-95); the Kosovo War (1998-99), culminating with the Clinton induced 69-day NATO bombing of Kosovo, under then European NATO leader Wesley Clark (today the Repentant – in retrospect it’s easy to be sorry), pretending to save the Kosovo Albanians from Serbian Milosevic’s atrocities. How Milosevic served as a patsy for the imperial forces is another story.

All of this would not have been possible without a decade long preparation by several Fifth Columns infiltrated and trained in and outside of Yugoslavia, the only country in Europe that in the 1980s and 90s flourished, with general well being above that of the average Europeans, who were suffering recessions and increasing inequality, the beginning of xenophobia in the age of nascent neoliberalism. There was no extreme poverty in Yugoslavia, but prosperity without excesses for everybody. There was economic growth under a loose Mao-model socialism which could, of course, not be allowed to persist, lest it might serve the world as an example. Besides the breakup of Yugoslavia into chaos was needed to create mini-states that are in conflict with each other, some of them still today, and that could be ‘accommodated’ against a hefty ‘fee’, of course, to accept the installation of NATO bases ever an inch closer to Moscow’s door step.

Well, Mr. Maduro saw and sees it clearly. History repeats itself all too often, especially when it comes in the form of western neoliberal-neofascist atrocities, as people’s memories are dulled with lie-propaganda. In fact, there is hardly any real news, only ‘fake news’ in the western mainstream media. Mr. Maduro envisions that “their” plan for Latin America is similar to what “they” did to Yugoslavia. He is probably right. All signs point into this direction.

A pact between Colombia and NATO, a so-called “Security Cooperation Agreement” was first signed in June 2013 but prepared way before. Records of first communications to this effect, by Juan Manual Santos, then President of Columbia and Peace Laureate in 2016 for his traitorous Peace Agreement between the Colombian Government and FARC (vaya-vaya! Doesn’t this speak volumes by itself?), can be traced back to early 2012.

President Hugo Chavez was the first one to warn his Latin American partners of the imminent clandestine infiltration of NATO into South America. Nobody listened. Today it’s a fact, too late to fight against. NATO troops are occupying gradually all seven American military bases in Colombia. They are just simply converting from US to NATO bases – sounds more palatable than US bases – for sure. In the minds of unfortunately still most uninformed or mal-informed people, NATO stands for security. NATO – the North Atlantic Treaty Organization – in South America. What an oxymoron! Well, it is the same ‘security’ farce as is NATO in Afghanistan and bombing the Middle East.

Venezuela is full with Fifth Columnists. They are the ones that facilitate the highly speculative and inflationary manipulation from Miami of the black-market US dollar rate in the streets of Caracas; they are the ones that emulate the food shortages in Chile 1973, successfully disappearing duly paid-for imported merchandise, mostly food and medical supplies, ending up as smuggle-ware in Colombia, leaving empty supermarket shelves in Venezuela. All meant to instigate people to stand up against their government.

So far, this strategy has failed bitterly. On 20 May 2018, President Maduro has been overwhelmingly re-elected, under the most internationally observed elections the world has ever experienced, and the result was “the cleanest, most democratic elections we have witnessed in our history of worldwide 92 election observations”. So said the US-based Carter Institute.

Yet, the Fifth Columnists are relentless. Worldwide. They are immersed in the government apparatus, institutions, military, police – even Parliament and very important in the financial system, possible in the central bank. They “allow”, or rather promote, the manipulation of the US-dollar black market, causing sky-rocketing inflation and lack of food and medicine on supermarket shelves. They disrupt electricity, internet and water services. The approach is similar in every country that refuses to bend to the empire’s dictate. In Russia, Iran, China, Syria, South Sudan, possibly even in Cuba they are in control of the financial system – that’s also how they are easily being financed, through the dollar-based monetary fraud of the west, to which most countries still have some links – fortunately every day less.

Take Russia, the Central Bank is still largely run by the Fifth Columnists, whose ‘chief’ is Putin’s just recently re-appointed Prime-Minister, Dmitry Medvedev, an arch-Atlantist. The structure of the Russian Central Bank is even today mainly a remnant of the Russian Reserve Bank, designed by the FED after the collapse of the Soviet Union, with the help of the UN-masked Bretton Woods crooks, the IMF, World Bank.

Similarly, part of the masked international promoters of instability, are the Bretton Woods regional associates, the so-called regional development banks, the Inter-American Development Bank (IDB), the Asian Development Bank (ADB), African Development Bank (AfDB) and their sub-regional cohorts. In the nineties, the Gang was joined by WTO (the World Trade Organization). And here they are, the world’s three most hated international UN-backed financial and trade organizations, IMF, World Bank and WTO. All three are promoting fundamentalist “free-marketeering” across the globe, especially throughout the southern hemisphere (though Greece and southern Europe do not escape), indebting and enslaving countries to the western corporate oligarchs. All well-structured to control the world’s financial system – so as to march towards world hegemony of a One World Global Economy. We are almost there, though not quite yet. There is always hope. Man’s last shred to hang on to life is HOPE. And only Man can translate hope into reality. So, as long as we have life, it’s not too late.

Why is it so difficult, say, impossible to get rid of them, the Fifth Columnists, the vermin of any unaligned political system? Why did President Putin re-assign Medvedev as his PM?  Mr. Putin knows that he supports a network of Atlantist oligarchs that seek nothing more than to ‘putsch’ him, Mr. Putin, and ultimately to destroy the rather egalitarian, though capitalist-based, economic system Russia has enjoyed for the last almost 20 years, becoming self-sufficient in agriculture, food, industry, high-tech science, pharmaceuticals. Russia has developed herself into an exemplary “Resistance Economy”, ready to be emulated by any western-named ‘rogue’ state that is sick and tired of the Empires boots and bombs and forced ‘democracies’ through ‘regime change’.

There are many western countries that just wait for a leader, one that moves head-on. Russia, China, Venezuela, Iran, Cuba, are shining examples. They are gradually escaping the yoke of the dollar-dominated western economy.

So, why are countries like Russia, Iran and maybe Venezuela afraid to get rid of their Fifth Columnists? For fear of a civil war, of a blood bath? Yes, we have seen the violent unrest they caused in preparation of the two major democratic elections in Venezuela in the last 12 months, the National Constituent Assembly (30 July 2017) and the Presidential Elections on 20 May 2018, when altogether close to 200 people died. The media immediately blamed the death on police and military oppression and violence but the only armed protesters were those armed and funded by Washington, and responsible for more than 80% of the death. Chavistas cheered for their Government with their bare fists.

The question remains in the room – why does Mr. Putin not get rid of them, the Fifth Columnists?  Would they cause a civil war?   It seems to me they wouldn’t have sufficient supporters in Russia, but they could disrupt the internal economy, as the Russian internal financial systems, especially private banking, is still in the hands of these Atlantists. They are also in China, but it appears that President Xi Jinping has better control of them.

How about Iran? Why are they still able to hold on to and fight for ‘western deals’; i.e., the upholding of the Nuclear Deal that Trump has stepped out from and now is sanctioning Iran ‘with the most severe sanctions the world has ever seen’, sounding similar to what he said to Mr. Kim Jong-un, the ‘Little Rocket Man’, with whom Trump then made peace a few weeks later?  Or something like it. One never knows with the Donald what the meaning of Trump’s trumpeting is, other than screwing up alliances and creating physical and sociopsychological chaos. He is also threatening European corporations, mostly oil companies, with heavy sanctions if they dare maintain their contracts with Iran.

Many cave in. Among them, the French-UK owned Total, Italy’s Eni and Saras, Spain’s Repsol and Greece’s Hellenic Petroleum. In the case of Total, according to the director of the Venezuelan branch, instead of filling their contracts with US-“fracking” oil, as Trump would expect, they are negotiating with Russia, to fulfill their obligations in Europe and elsewhere. “We cannot trust Brussels to fend for us, therefore we have to fend for ourselves”, the Total representative said.

Iran doesn’t really need the Europeans to buy their oil. Europe constitutes only about 20% of the Iranian hydrocarbon market – an amount easily taken up by China. The same with other European corporations that may choose similar ways of self-protection – cutting ties with Iran – like the Peugeot-Citroen automobile giant. Iran doesn’t need them. That these sanctions and EU corporate reactions to the US sanctions, are causing hardship and unemployment in Iran is just western propaganda, a vast exaggeration, at worst a temporary affair. As Mr. Rouhani said, we might go through a short period of difficulties but will recover rapidly by becoming self-sufficient. And that’s true. Iran is well embarked on their “Economy of Resistance”, aiming at self-sufficiency through import-substitution and orienting themselves towards eastern markets.

In fact, Iran is already part of the Eurasian Economic Community and will soon become a full-fledged member of the Shanghai Cooperation Organization (SCO).  So why can Iran not get rid of their Fifth Columnists? This is a question I can only answer with “fear from bloody civil unrest, prompting possibly western military intervention”.

Back to Venezuela, it could be similar fears that prevent the Maduro Government from taking drastic actions, like declaring a temporary state of emergency and drastic measures of de-dollarization to stop inflation and speculation, and strengthen the local currency, the Bolivar, by backing it with their internationally accepted cryptocurrency, the Petro.

On 20 May 2018, six million Venezuelan’s mostly Chavistas, voted overwhelmingly for President Maduro and his Government, a 68% majority, representing a solid block of people supporters. If you have the choice between an artificially made-to-starve population and a crumbling what used to be a solid block of 6 million Chavistas behind you but gradually disappearing because of lacking actions by the government, what do you do? Perhaps the only way is to economically isolate the Fifth Columnists or Atlantists, despite their apparent control of the economic system. What Atlantists are actually controlling is the dollar-based economy. Quitting the dollar-base, they may become rather powerless.

Venezuela faces a dire dilemma: Die or be killed. Venezuela has already started moving out of the dilemma, with the creation of the totally dollar-detached Petro, the government controlled blockchain currency based on hydrocarbons and precious minerals. Today, Venezuela imports about 70% of their food, and guess from where?  You guessed right – from the US of A. Thus, de-dollarization at first sight is a challenge.

Therefore, a massive diversification of imports, and efforts to become food self-sufficient, is in the order. Venezuela has the agricultural potential to become 100% food self-sufficient. In the meantime, Russia, China and other Eurasian countries will substitute. Venezuela may apply for SCO membership. Why not? After all, China has already about 50 billion dollars’ worth of investments in Venezuela, mostly in hydrocarbons, and just declared making another 5-billion-dollar equivalent loan to refurbish the Venezuelan petrol industry. China and Russia have big stakes in Venezuela, an excellent defense strategy. Now, Venezuela’s membership in the SCO would be another big step away from the dollar economy.

The Balkanization of Latin America is already happening. When Mr. Maduro referred to the 7 US bases in neighboring Colombia, aka, now NATO bases, with a porous 1,500 km (out of a total of 2,000 km) uncontrollable jungle border with Venezuela, and even open and welcoming borders with Peru, Ecuador and Brazil, he said it all. It will be easy to suffocate any uprising – NATO will do it, by now the generally accepted world police, as generally accepted as the recently intact, totally unelected and self-appointed world government, the G7. They are now crumbling, thank heaven for Mr. Trump’s egocentric pathology, his “Let’s make America Great Again”; and thanks to Mr. Putin’s non-intervening but strategic sideline observance.

Will Trump continue to provide majority support for NATO? He recently warned the Europeans to contribute their share; i.e., increasing their NATO contribution to 2% of their GDP – or else. Well, what is “else”?  Reducing NATO, an enormous cost to the US?  And counting on the CIA-trained and NED-funded destabilizing insurgents (NED = National Endowment for Democracy, a state department financed “regime change’ and “democratization” NGO) throughout the world? Insurgents in alliance with the local Atlantists? Will this be enough in a rapidly changing international monetary and payment system?

The US scheme for Balkanizing Latin America, and by extension the world, is as porous as the 1,500 km long tropical forest border between Colombia and Venezuela. The hegemony of the dollar-economy hangs in the balance. Only drastic actions by victimized but courageous countries, like Venezuela, Iran and Russia can break the balance and destroy the western monetary hegemony.

Venezuela: Towards an Economy of Resistance

The Government of Venezuela called an international Presidential Economic Advisory Commission, 14-16 June, 2018 to debate the current foreign injected economic disturbances and seeking solutions to overcome them. I was privileged and honored to be part of this commission. Venezuela is literally being strangled by economic sanctions, by infiltrated elements of unrest, foreign trained opposition leaders, trained to disrupt distribution of food, pharmaceutical and medical equipment. Much of the training and disturbance in the country is financed by the National Endowment for Democracy (NED), an “NGO” that receives hundreds of millions of dollars from the State Department to “spread democracy” and provoke “regime change” around the world, by boycotting and undermining the democratic processes of sovereign nations that refuse to bend under the yoke of the empire and its ‘allies’ — meaning vassals, afraid to stand up for inherent human values, and instead dance spinelessly to the tune of the murderous North American regime and its handlers.

Imagine, Venezuela has by far the world’s largest known reserves in hydrocarbon under her territory. more than 300 billion barrels of petrol, vs. 266 billion barrels, the second largest, of Saudi Arabia. Venezuela is a neighbor, just across the Caribbean, of the United States’ arsenal of refineries in Texas. It takes about 3 to 4 days shipping time from Venezuela to the Texan refineries, as compared to 40-45 days from the Gulf States, from where the US imports about 60% of its oil to be shipped through the high-risk Iran controlled Strait of Hormuz. And on top of this, Venezuela, is a socialist country defending the rights of the working class, fostering solidarity, human rights and sheer human values, so close to the borders of an abject neoliberal and increasing militarized greed-driven dictatorship, pretending untouchable ‘exceptionalism’. Daring to stand up against the threats of boots and bombs from the North, is simply intolerable for Washington.

A real foreign imposed economic crisis is in full swing. Venezuela’s black money market is manipulated by Twitter mainly from Miami and occasionally corrected from Colombia, depending on the availability from Venezuela stolen contraband, offered to better-off cross-border customers. This is missing merchandise on Venezuela’s supermarket shelves. It’s imported merchandise – mostly food and medical supplies – fully paid by the government. This has nothing to do with Venezuela being broke and unable of paying for needed imports. The media which propagate such slander are criminal liars, typical for western “journalism”. It is merchandise stolen, captured at the ports of entry by US trained gangs and deviated as smuggle-ware mostly to Colombia, the new NATO country. The scheme is a carbon copy of what happened in 1973 in Chile, orchestrated by the CIA to bring the Allende Government to fall. People have a short memory – or they like to forget – to keep implementing their disastrous neoliberal agenda.

The big difference though is that Chile’s socialist government was then barely 3 years old, whereas Hugo Chavez, who brought and solidified socialism to Venezuela, was elected in 1998, some 20 years ago. Chavismo has survived relentless attacks, including the Washington induced failed coup on 11 April 2002. A month ago, on 20 May 2018, Presinet Nicolas Maduro was overwhelmingly re-elected with 68% – with a solid block of 6 million Venezuelans, who withstood constant attacks, physical violence, foreign induced slander propaganda, empty supermarket shelves, at times sky-rocketing inflation. But this solid socialism is a basis the empire cannot so easily sway its way.

However, Venezuela is in a State of Emergency. A State of Emergency, exacerbated by NATO newly stationed on 7 US military bases throughout Colombia, and by a 2,200 km border with Venezuela, of which about 1,500 km is a porous jungle, difficult to control. Accordingly, State of Emergency measures ought to be taken. Fast. Among them: de-dollarization of Venezuela’s economy, diversification of imports and an ardent strive towards food autonomy, as well as import-substituting industrial, pharmaceutical and medical production. Today, Venezuela imports about 70% of her food, though the country has the capacity, arable land and human resources-wise, to become self-sufficient.

As Mr. Putin said already two years ago, the sanctions were the best thing that happened to Russia since the fall of the Soviet Union. It forced the new Russia to reorganize her agricultural sector, as well as to rebuilding her defunct industrial arsenal and become a scientific vanguard, all of which has happened since 2000 under the leadership of President Putin. For the last three years, Russia has been the world’s largest wheat exporter and has one of the world’s most modern industrial parks, and cutting edge scientific learning and development institutions.

Venezuela has similar potentials. Venezuela also has solid allies in Russia, China and Iran – and indeed in the entire Shanghai Cooperation Organization (SCO), an association of currently 8 members, including China, Russia and India, comprising close to half the globe’s population with one-third of the global GDP. Venezuela has already started decoupling from the dollar, by launching the world’s first government owned and controlled cryptocurrency, the hydrocarbon and mineral backed Petro which has already been accepted internationally — foremost by China, Russia, Turkey and the Eurozone.

Despite the Yankee boot on her neck, Venezuela has demonstrated the audacity to launch a dollar-independent incorruptible cryptocurrency that is slated to become a new world reserve currency, especially as other countries are having similar plans; i.e., Iran, Russia, China, India, to name just a few, and as the dollar is rapidly losing ground as the world’s major reserve asset. In the last 20 years the dollar has lost from a worldwide 90% reserve-security to less than 60% today, a trend that continues, especially as hydrocarbon trade is increasingly detached from the dollar and carried out in local currencies, gold-convertible Chinese yuan, rubles and now also the Venezuelan Petro.

This is a heavy blow to the dollar. Though, it isn’t enough. As long as the dollar is still a major player in Venezuela’s economy, the battle and related hardship goes on. Radical measures are in order. This is all the more difficult, since Venezuela, like Russia, Iran and most other non-obedient countries, are heavily infested with disastrous and destructive Fifth Column elements which are primarily controlling or manipulating the financial sectors. But the east is full with successful examples on how to detach from the fraud and greed-driven western monetary system. It is a simple model of “Resistance Economy” — local production for local markets with local money through local public banks that work for the local economy. China followed this example until she reached food- health- education and shelter self-sufficiency around the mid-1980s, when Beijing started opening up to the world, including the west, but with primary trade focus on ‘friendly’ nations. The Russian example is mentioned above, and Iran is now following her own track of “Resistance Economy”.

An Economy of Resistance is also applicable for Venezuela. It is a matter of urgency and a question of political will and perseverance. President Maduro, his Cabinet, as well as the solid and broad-based socialism in solidarity of over 6 million citizens will prevail.

Venezuela: Vanguard of a New World

Venezuela is a champion in democracy, in democratic elections, as proven twice within the last twelve months and more than a dozen times since 1999. Never mind that the lunatic west doesn’t want to accept it simply because the west – the US and her handlers – and her European vassals, cannot tolerate a socialist country prospering, one that is so close to the empire’s border and on top of it, loaded with natural riches, like oil and minerals. Venezuela’s economic success could send intellectual “left-wing” shock waves to the dumbed and numbed American populace, with shrapnel ricocheting all the way to blindfolded Europe.

That would be terrible. That’s why Venezuela must be economically strangled, literally, by illegal sanctions, by totally unlawful outside interventions within sovereign Venezuela, by corrupting internal food and medicine distribution, literally buying off bus drivers to stay home rather than driving their assigned routes to take people from home to work and vice-versa; and corrupting truck drivers not to deliver the merchandise, so that supermarket shelves are empty. They can be photographed, to make the world believe that Venezuela is at the brink of collapse. Those who are not too young may recall exactly the same pattern of outside (CIA) interference on the Chilean system in 1973, leading up to the CIA instigated coup that killed the democratically elected President, Salvador Allende and put hard-core neonazi Augusto Pinochet in power. Outside interference, CIA and other State Department funded secret services, was also widely responsible for trying boycotting and influencing the Venezuelan democratic election process. To no avail. They did not succeed.

A similar situation exists with Iran, a mighty powerful nation with a high level of intellect, research, industrial and agricultural potential and – foremost – with a collective mindset that does not want to be trampled by the west, let alone by Washington. Iran is the leader in the Middle East and eventually will be the pillar of stability of the region. No Israel Government would dare to mess with Iran. Netanyahu’s threats are just empty saber-rattling. Iran has also strong and reliable allies, like China and Russia. China is buying the bulk of Iran’s hydrocarbon production and would not stand idle in an Israel-US confrontation with Iran. Hence, Iran doesn’t need to submit to the dictate of Washington. Iran is a sovereign nation, having already embarked on a path of ‘Resistance Economy’, meaning, a gradual decoupling from the western fraudulent dollar-based monetary system. Iran is considering launching a government-owned and managed cryptocurrency which would be immune from western sanctions – same as is the Venezuelan oil-backed Petro.

If Venezuela was allowed by the west to prosper, the people of North America could wake up. And, for example, demand explanations why their government is actually so undemocratic as to interfering in other countries affairs around the world, overthrowing other sovereign governments – killing millions, who do not want to bend to the rules of the US dictator; and at home planting fear through false flags and staged terror acts; i.e., multiple school shootings, sidewalk car rampages (Manhattan) and Marathon bomb attacks (Boston).

Never mind whether the US Presidents behind such terror are called Trump, Obama, Bush, or Clinton – and the list doesn’t end there. One could go way back to find the same pattern of attempted submission through fear, propaganda, acts of terror. They are all pursuing the same sinister agenda, world hegemony at any price.

Venezuela – and Iran for that matter – are in a totally different league. Venezuela voted on 29 July 2017 for the National Constituent Assembly, an elaborate, transparent process to establish a true People’s Parliament. The idea is brilliant, but was, of course, condemned by the west as fraud – because the reigning elite of the west could and will not allow the people to be in power.

When Iran’s President Rouhani was re-elected in May 2017, Washington was happy, believing Rouhani would bend to the rules of the west. He didn’t. In fact, he stood his course, though trying to maintain friendly – and business – relations with the west, but at Iran’s terms. As this doesn’t seem to be possible, specially after Trump’s unilateral stepping out of the Joint Comprehensive Plan of Action (JCPOA), also called the Nuclear Deal, and re-imposing “the strongest sanctions the world has ever seen”, what is there left, other than decisively detaching from the west and joining the eastern alliances, the Eurasian Economic Union (EEU), the Shanghai Cooperation Organization (SCO). This is precisely what Venezuela is doing, calling her losses, but moving on to more friendly pastures – and to certainly a more prosperous future.

Western parliaments have become smoke screens for hiding financial dictatorships, and lately worse, police and military oppression for fear people might stand up — which they actually do, right now in France against Macron’s new labor law, intent of stripping workers of their benefits acquired through decades of hard work. Basically, since last February, people take to the streets of Paris, fearless, despite France being the most militarized country of Europe. They are exposed to tear gas, water cannons and rubber bullets, but do not give up defending not only their labor rights but also defending theirs and the peoples of France’s democratic right of freedom of expression which in most EU countries has died a silent death.

On 20 May 2018 Venezuela held another peaceful and absolutely democratic Presidential Elections, witnessed by international observers from more than 40 countries, including former President of Ecuador, Rafael Correa, and former President of Spain, José Luis Zapatero. They all have confirmed the transparency of the Venezuelan electoral system and called upon the international community to respect the election results. Indeed, the United States as well as Europe could learn a lot from the Venezuelan electoral process and from Venezuelan democracy.

Washington, its European Union vassals and the Organization of American States (OAS), again – what else – condemned the elections as a fraud before they actually took place, urging President Maduro to cancel them (what an abject arrogance!). Similarly, the so-called Lima Group – a collective of 14 Latin American nations – has accused the Maduro Administration of manipulating the elections, declaring the results “illegitimate, also before the ballots were cast. But former U.S. President Jimmy Carter, founder of the Carter Center, said: “Of the 92 elections that we’ve monitored, I would say that the election process in Venezuela is the best in the world.”

Zapatero said at a press conference that the EU, who was invited directly by President Nicolas Maduro to join international election observers, didn’t send delegations because of “prejudice”. Zapatero said, “There is prejudice, and life and political experience consists of banishing prejudices and getting to know the truth firsthand.” He also pointed to the OAS’s double standards against Venezuela: “What are they saying about what’s happening in Brazil and Honduras?” – And allow me to add, “and currently in Nicaragua”?

Correa doubled up, saying, “No one can question the Venezuelan elections… in the world there is no election as monitored as Venezuelan elections.” – The absolute correctness of the Venezuelan election was further confirmed by CEELA, the Latin American Council on Electoral Experts. Mr. Moscoso, the head of CEELA, stated that the CEELA delegation has met with experts and candidates ahead of last Sunday’s [20 May 2018] elections and confirmed “harmony in the electoral process.”

There is no doubt by any member of the high-powered and professional electoral observation delegations that the Venezuelan elections were correct and that Nicolas Maduro has legitimately been re-elected with 68% of the votes for the next 6 years – 2019 to 2025. The “low” turn-out of 54% is blamed by the west on Venezuela for barring the opposition candidates and opposition parties from voting. In fact, the turn-out is “low”, because of the west (EU and US) instigating the opposition to boycotting the elections. Under these circumstances, 54% is a great turnout, especially when compared to the only slightly higher numbers – 55.7% – of   Americans who went to the polls in 2016, when Trump was elected; and 58% in 2012, for Obama’s second term.

It is actually a horrendous shame that we, independent journalists and geopolitical analysts, have to spend time defending the transparency and correctness of the Venezuelan elections and democratic system – the best in the world – in the face of governments where fraud and lies are on their every-day menu and where initiation of conflict and wars – mass killings – is their bread and butter. Yes, bread and butter, because the economy of the United States could not survive without war, and the elite puppets in Europe might be trampled to mulch, if they had not become militarized oppressive police states.

That’s the state of the neoliberal/neofascist world of the 21st Century – defending the honest and correct from accusations by the criminal lying hooligans – is what the west has become, a bunch of mafia states without ethics, where laws are made by white collard criminals for their corporate dominated governments.

There are other reasons why Venezuela has become a vanguard of a new emerging world – a world that is separating itself gradually from the west. Other than China and Russia, Venezuela is among the first countries to abandon the US dollar as trading currency. Caracas has been selling its hydrocarbons to China for gold-convertible Yuan. Venezuela is also the world’s first country to introduce a government controlled, petrol backed cryptocurrency, the Petro which will soon be enhanced by the Petro-Oro, another government-controlled cryptocurrency, based on gold and other minerals.

None of the other privately launched block chain currencies, like Bitcoin, Ethereum, Litecoin, Monero, Ripplel, and literally more than 3,000 digital blockchain currencies, have any backing. They can be considered similar to fiat money, highly speculative, lending themselves to money-laundering and other fraud.

When the Petro was launched in March 2018 it attracted presale interests from 133 countries of US$ 5 billion equivalent. The first day presale raised US$ 735 equivalent; impressive record figures indicating a huge interest of the world at large to find an alternative to the US currency dominated western monetary system – the one and only tailored to hand out sanctions, block international monetary transfers and confiscate foreign funds abroad. And this is because all international dollar transactions have to transit through a US bank either in London or in New York.

Without divulging many details about the Petro – for good reasons – President Maduro has praised the Petro as a key weapon in his fight against what he describes as an “economic war” led by the United States. The oil-backed digital cryptocurrency is convertible into: yuan, rubles, Turkish liras and euro – all of which is indicative that the world wants an alternative – and Venezuela has initiated this alternative.

In the meantime, Russia and Iran have also announced the introduction of a government-owned cryptocurrency. They are formidable shields against US-dollar intrusion and interference. Government-owned and managed cryptocurrencies are, in fact, master tools for an approach of “Economic Resistance” against economic sanctions. Russia is way ahead of the pack. As President Putin said already two years ago, the sanctions were the best thing that could have happened to Russia, which was economically devastated after the collapse of the Soviet Union. Sanctions allowed Russia to promote self-sufficiency, rebuild agriculture and her outdated industrial park, put new energy and savvy into research and development, and actually become in the last three years the world’s first wheat exporter.

Similar approaches are already happening large-scale by other nations, subject to Washington’s sanctions regime; i.e., Iran, Cuba, North Korea and, of course, China. Independence from the western economy also means moving away from globalization and especially the globalized US-dollar hegemony. Venezuela is the vanguard of a slowly growing movement of countries that have already abandoned the use of the US-dollar for international trade, like India, Pakistan, Iran. This growing trend may become a groundswell of independent nations, that may bring the US economy to its knees. It is a war without aggression, but with alternatives for circumventing economic hostilities from Washington, from the US led attempts to subjugate the world to the dollar dictate; i.e., to US-dollar hegemony. The resistance movement shall overcome.

First published in New Eastern Outlook (NEO)

The Venezuelan “Petro”: Towards a New World Reserve Currency?

Imagine an international currency backed by energy? By a raw material that the entire world needs, not gold – which has hardly any productive use, but whose value is mostly speculative – not hot air like the US dollar. Not fiat money like the US-dollar and the Euro largely made by private banks without any economic substance whatsoever, and which are coercive. But a currency based on the very source for economic output – energy.

On February 20, 2018, Venezuela has launched the “Petro” (PTR), a government-made and controlled cryptocurrency, based on Venezuela’s huge petrol reserves of about 301 billion barrels of petrol. The Petro’s value will fluctuate with the market price of petrol, currently around US $61 per barrel of crude. The Petro was essentially created to avoid and circumvent illegal US sanctions, dollar blockades, confiscations of assets abroad, as well as to escape illegal manipulations from Florida of the Bolivarian Republic’s local currency, the Bolívar, via the black-market dollars flooding Venezuela; and, not least, to trade internationally in a non-US-dollar linked currency. The Petro is a largely government controlled blockchain currency, totally outside the reach of the US Federal Reserve (FED) and Wall Street – and it is based on the value of the world’s key energy, hydrocarbons, of which Venezuela has the globe’s largest proven reserves.

In a first batch Venezuela released 100 million Petros, backed by 5.342 billion barrels of crude from the Ayacucho oil fields of Orinoco; a mere 5% of total proven Venezuelan reserves. Of the 100 million, 82.4% will be offered to the market in two stages, an initial private Pre-Sale of 38.4% of so-called non-minable ‘tokens’, followed by a public offering of 44% of the cryptomoney. The remaining 17.6 million are reserved for the government; i.e., the Venezuelan Authority for Cryptomoney and Related Activities, SUPCACVEN.

When launching the currency, on 20 February 2018, Vice-president Tareck El Aissami declared:

Today, the Petro was born and we will formally launch the initial pre-sale of the Venezuelan Petro. Venezuela has placed herself in the vanguard of the future. Today is a historic day. Venezuela is the first nation to launch a cryptomoney, entirely backed by her reserves and her natural riches.

President Maduro has later affirmed that his country has already entered contracts with important trading partners and the world’s major blockchain currencies.

Can you imagine what this means? It sets a new paradigm for international trade, for safe payment systems that cannot be tampered with by the FED, Wall Street, SWIFT, New York courts, and other Washington puppets, like the European Central Bank (ECB), the unelected European Commission (EC) and other EU-associated Brussels institutions. It will allow economic development outside illegal ‘sanctions’. The Petro is a shining light for new found freedom from a hegemonic dollar oppression.

What is valid for Venezuela can be valid for other countries eager to detach from the tyrannical Anglo-Zion financial system. Imagine, other countries following Venezuela’s example, other energy producers, many if not most of whom would be happy to get out from under the Yankee’s boots of blood dollars inundating the world thanks to uncountable wars and conflicts they finance – and millions of innocent people they help kill.

Rumors have it, that in a last-ditch effort to salvage the faltering dollar, the FED might order the IMF to revert to some kind of a gold standard, blood-stained gold. Of the 2,300 to 3,400 tons of gold mined every year around the globe, it is estimated that about a quarter to a third is illegally begotten, so called ‘blood’ gold, extracted under the most horrendous conditions of violence, murder, opaque mafia-type living (and dying) conditions, child labor, sexual enslavement of women, many of whom way under-age, abject poisoning of humans with heavy metals, mercury, cyanite, arsenic and more, contamination of surface and underground water ways, vast illegal deforestation of tropical rain forests – and more. That’s the legacy of gold, the MSM, of course, doesn’t talk about.

That’s what the west based its monetary system on until 1971, when Nixon decided to replace gold with the fiat dollar which then became de facto the world’s major reserve currency, albeit declining rapidly over the last twenty years. In desperation, Washington might want to apply another gold-based international norm to salvage the faltering dollar. Of course, a norm designed to favor the US, with the rest of the western and developing world destined to absorb the astronomical US debt.

Since the world’s major goldmining corporation and the illegal gold-digging mafia networks work hand-in-hand, smuggled gold works its way intricately into the dominium of shady traders, many of whom also deal with so-called white gold (drug powder), washing gold and drug-money simultaneously, thereby confounding and obscuring the origins of either. Eventually this illegal gold is purchased by major gold mining or refining corporations mixed with ‘legal’ gold, so that the illegal portion is no longer traceable.

Therefore, every ounce of gold that would back our money, the purchases of our livelihoods would be smeared in blood, in children’s abuse and death, in murdered and enslaved women and men, in poisoned water ways and in a contaminated environment. But the world wouldn’t go for it. No more. There are healthier and more transparent physical assets to back up international currencies, i.e. the Petro, backed by energy. Though not free from socio-environmental damage, petrol-energy may gradually convert into alternative sources of energy, like solar, wind and aquatic power or a combination of all of them.

What the world is to aim for is a monetary system based on each nation’s or group of nations or societies economic output. Today it’s the other way around – it’s the fiat money, designed by the Anglo-Zionist masters of finance, that defines economies. Thus, economies in our western world are prone to be manipulated by the rulers and their institutions – FED, IMF, World Bank, World Trade Organization (WTO) – that support the debt/interest-based monetary rules. They are purposefully maneuvered into booms and busts. With every bust, more capital is transferred from the bottom to the top, from the poor to an ever-smaller elite. The energy-based Petro is a first step away from this sham.

Imagine the Petro was to become the new OPEC currency! The world would need Petros, as it used to need US dollars to buy hydrocarbon energy. But Petros are blockchain-safe, less vulnerable for manipulation. They are not coercive, they are not made for blackmailing ‘unwilling’ nations into submission; they are not tools for violence. They are instruments of equitable production and trade. They are also instruments of protection from the fiat money abuses.

Source: TeleSUR

The world’s ten largest hydrocarbon reserve holders have a capital base of 1.4 trillion barrels of crude. Not bad to start a worldwide cryptocurrency, based on energy, controlled by energy and by all those who will use energy – that might become a world reserve currency, at par with the Chinese economy and gold-backed Yuan, but much safer than the fiat currencies of the US-dollar, Euro, British Pound and Japanese Yen.

We are talking about a seismic paradigm shift. Its potential is unfathomable. The move away from the US-dollar hegemony might result in an implosion of the western monetary structure as we know it. It may stop the predator empire of the United States in its tracks, by simply decimating her economy of fraud, built on military might, exploitation and colonization of the world, on racism, and on a bulldozing scruple-less killing machine. The Petro, a secured cryptocurrency based on energy that everybody needs, might become the precursor for an international payment and trading scheme towards a more balanced and equitable approach to worldwide socio-economy development.