Category Archives: Cryptocurrency

Bitcoin the Messiah: El Salvador Goes Crypto

In a particular deli store in South Melbourne, a tongue-and-cheek message is attached to the cash register.  “Bitcoin accepted there,” it proclaims brightly.  Naturally, it is nothing of the sort, a teasing ruse for the punters and those casting an eye in the direction of the store.  Cold hard cash remains king, albeit one with a tarnished crown; pandemic times have driven consumers towards such non-intimate transactions as contactless payment.

One country has decided to make using cryptocurrency a reality, sticking its neck out in adopting bitcoin as something akin to an economic messiah.  Few thought it would be El Salvador, whose government made the currency legal tender on September 7.  To mark the occasion, each citizen signing up to Chivo, the national digital wallet, has received US$30.  Foreigners adventurous enough to invest three bitcoins in the country are promised residency.

The introduction was far from spontaneous.  The surf town of El Zonte, with its Bitcoin Beach project, began an experiment to adopt the currency in 2018, a venture aided by the Californian cryptocurrency zealot Michael Peterson.  Through the Evangelical Christian church, Peterson combined God and crypto, proselytising the value of such currency.  Each local family received US$50, and the currency came to be used for such projects as rubbish collecting and lifeguarding.

Leaving aside Bukule’s own wish to mark the history books, this move into the world of digital currency has various motivations.  One is the portion of income received from international money transactions from citizens abroad, which amounts to something like a fifth of the country’s GDP.  With such transactions come high fees which whittle away the value of the transfer.  To this can be added the need for having a bank account.  (Only 30% of Salvadorans have one.)  Bitcoin alleviates any such need, while also facilitating cheap payments.

Then there is the prevalence of the US dollar, which is also accepted as legal tender.  President Nayib Bukele has been keen to give his citizens another option, a move intended to encourage greater expenditure in the country.  Over 200 bitcoin machines are being put in place across the country to convert cryptocurrency into dollars.

The introduction of such currency presents a paradox of mighty dimensions.  A degree of technological literacy is required, a challenge, to say the least.  The Bitcoin law stipulates that “the necessary training and mechanisms” will be supplied by the government to aid Salvadorans access bitcoin transactions.  This promises to be a herculean venture, given how many people actually understand how  the currency works.  A survey by the Central American University of 1,281 people found that a humbling 4.8% actually comprehended what the currency was and how it was used.  Of those, 68% took issue with using it as a legal tender.

The process of mining bitcoin is also a headache for policymakers, as it requires vast reserves of electricity and poses an environmental challenge.  (Elon Musk was at pains to emphasise the latter in reneging on his decision to permit customers to purchase Tesla cars using the cryptocurrency.)  The Cambridge Bitcoin Electricity Consumption Index, looking at figures generated last year, puts the amount of energy used by global bitcoin mining at 105 terawatt hours of electricity.

In June, the state-owned geothermal electric company was instructed by Bukele to come up with a plan to facilitate bitcoin mining “with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanoes.”

Then comes that testy issue of its status as legal tender.  Under general circumstances, currency deemed legal tender must be accepted as payment for a debt.  In the absence of a debt, the store owner, retailer or company may accept some other form of payment (credit card, online transactions).  El Salvador’s Bitcoin law, however, has muddied matters by stating that “every economic agent must accept bitcoin as payment when offered to him by whoever acquires a good or service.”

Such financial coercion did not sit well. It caused a flurry of protests.  Economists squawked in alarm.  President Bukele had to relent, issuing a grumpy clarification last month that businesses would not be compelled to accept bitcoin.  In doing so, he could not resist a snarky remark that those not seeking to win over customers with the currency were essentially discouraging growth and continuing the daft practise of paying fees on remittances.

The forces of orthodoxy have also balked.  When asked for assistance by El Salvador to implement the bitcoin scheme, the World Bank was dismissive.  “While the government did approach us for assistance on bitcoin,” a spokesperson revealed in June, “this is not something the World Bank can support given the environmental and transparency shortcomings.” The International Monetary Fund, severe as ever, disapproves of a currency that presents “macroeconomic, financial and legal issues that require very careful analysis”.

The response to the introduction has been fairly predictable.  Bond prices have fallen and bitcoin’s value has fluctuated.  The naysayers suggest that the general adoption by residents will be small, fearing the currency’s volatility.  Protestors fear that the cryptocurrency will simply enable further corrupt practices to take place.

The converse may also be true: given Latin America’s long history of fiscal instability, banking collapses, and failed economic advisors, bitcoin promises an unorthodox form of insulation from shock.  “With bitcoin, for the first time in a very long time, people in Latin America saw an asset appreciate in dollar terms,” Mauricio Di Bartolomeo, chief executive of the Toronto-based digital asset company Ledn remarked.  The time for this experiment, on the surface a quixotic one, is nigh.

The post Bitcoin the Messiah: El Salvador Goes Crypto first appeared on Dissident Voice.

“Democracy” vs. Covid:  A No-Go

Brussels (EU and European NATO Headquarters) – On 21 October 2020, the German Press Agency (dpa) reports that Germany pledges NATO soldiers for possible Covid-19 operations:

German soldiers could be sent on crisis missions to other NATO and partner countries during the second wave of the Corona pandemic. As a spokesman for the Ministry of Defense confirmed, the German government has promised NATO support for its “Allied Hand” emergency plan. According to this plan, medical personnel, pioneers and experts from the force would be made available for foreign missions to counter nuclear, biological or chemical hazards as required. The contingency plan is to be activated, for example, if a collapse of the health care system is imminent in allied or NATO partner countries due to very high infection rates and the affected state asks for support.

In clear text, this means that German soldiers may be deployed on covid-related “crisis missions” to other NATO partners. Covid-restrictions and related government oppression and tyranny may lead to massive civil unrest, and German soldiers, alias German NATO soldiers, along with soldiers from other NATO countries, could help the local governments suffocate such potential people upheavals, applying military force. Live bullets and killing, if “necessary”.

In some European countries, covid-unrests already clearly visible; i.e., Slovenia, Czech Republic, Poland, Hungary, Spain, and, of course, in the very Germany. Civil and societal unrest is also boiling hot in France, currently one of the most repressive regimes in the western world.

Worldwide people of these 15 countries staged this weekend a coordinated Global Resistance mass demonstration against their governments covid-related health tyranny: Argentina, Bolivia, Peru, Uruguay, Italy, Germany, Poland, Belgium, Netherlands, UK, Ireland, Sweden, Denmark, France, Austria.

All these countries were told and brainwashed into believing they live in a “democracy”, and in a democracy what is happening to them could and should never happen. They were never asked. Their governments didn’t even bother telling them that these “measures” were for their own good. Now, they are even being told by people like Boris Johnson, British PM, not to hope to go back to “normal”. There will be no more normal as we knew it, he literally said. Instead, there will be a Great Reset.

Thereby he is aping the words of Klaus Schwab, the founder and CEO of the World Economic Forum (WEF), who just published (July 2020) a book, called “Covid-19 – The Great Reset”. The book is available on Amazon (where else!), and I highly recommend reading it, not for Schwab to get richer, but for you and us the people to know what “their” plan is. Only if we know what the plan is, we may stop it if we organize in solidarity and resist.

There is no “democracy”, there has never been. The EU is one of the least democratic institutions there is. But, yet, we are being indoctrinated with this huge lie, we are living in a democracy. It is covid that finally brings this abject global deceit to light.

And our lie-prone politicians and their bought mainstream media, continue to praise our western beautiful democracy, while deviating our attention from the truth, by bashing western-made enemies, like China, Russia, Iran, Venezuela, Cuba, Syria, North Korea, and others just so we are blinded at home, but are told with false-propaganda that all these other countries are evil. They are evil, because they do not believe in our western greed-economy. The media does a very successful firing up of “cognitive dissonance’.  We know something is not right, but our feverish want for remaining in our comfort zone makes us believe that we are well protected by our “elected” masters, and those, for example, in the east, who may follow another life philosophy than is ours which is made up of greed and violence, are evil.

An interesting Pew poll, made public today in Switzerland, shows that on average more than two-thirds of the EU population thinks negatively about China and Russia. Why? China and Russia have never done anything harmful to Europe, to the contrary.  They have offered truthful cooperation against coerced collaboration US-style. So, the question “Why?” is answered with the corporate paid brainwashed media.

Is this “democracy”?  Is this democratic thinking? Do these people realize that their brains have been captured years ago by a consumer-comfort propaganda and gradually converted into a submissive slave-behavior that still believes in “democracy”?

The German people have not been asked whether they agree to sending German troops to other countries, nor whether they should participate in NATO exercises. The truce that is in force for Germany since the end of WWII allows no foreign intervention by German military. In fact, no formal Peace Agreement has (yet) been signed between Germany and the winning powers. The armistice accord contains a clause that dictates that Germany ought to never undertake any actions that go against the interests of the United States. This would explain, at least in part, why the German Government bends over backwards  to please Washington.

But most of the Germans are oblivious to this fact.  On purpose. Because “democracy” would dictate the ethical: Let the public know. Get a public debate going about the autonomy and sovereignty that Germany currently has and that she – and her people – deserve.

The decision of using German troops as NATO soldiers in other countries has nothing to do with “democracy”. It goes against the grains of democracy. Is Germany under a “covid emergency law”, which would be similar to Martial Law? As is France, Switzerland, Spain, the UK? If so, have the people been properly informed?

Switzerland has just recently extended her Covid Emergency Law until the end of 2021 – and then what? It could easily be extended again, as it was now. The law was rammed through a right-wing congress, regardless of political parties, congress men and women largely agreed. No questions asked. The people were never consulted.

Now a People’s Referendum (a privilege the Swiss still have) that would ban this so-called “Notrecht” (emergency Law), is under way. But by the time enough signatures will be assembled and the referendum will be “allowed” by the Government to be presented to the public for a vote, it may be too late to change the drastic measures that were implemented under the quasi-Martial Law.

That’s “democracy”?  Or is it?

France, under Mr. Macron, a Rothschild gnome, has reimposed a State of Health Emergency and introduced curfews, a ban on weddings and being out in the streets is permitted only with special permits. This as the result of a “sudden and spectacular acceleration” in the spread of the coronavirus, Jean Castex, the Prime Minister said, justifying this audacious draconian measure. He added that the national COVID-19 incidence rate over the past ten days had jumped from 107 to 190 cases per 100,000 population with “particularly alarming levels” in some large cities. But who checks the figures, the statistics, how they are assembled? Nobody.

That’s “democracy”?  For disobedience fines are €135 for first offenders, rising to as much as €7,500 and a six-month prison term. Well, is this dictatorship or what?

It is far away from “democracy”, that’s for sure. Especially if we know what covid really is; namely, nothing more than closely similar to a regular flu. This is according to Anthony Fauci, chief of NIAID/NIH of the US, when he writes peer-reviewed articles in the New England Journal of Medicine (NEJM), like “Covid-19 – Navigating the Uncharted”  …. “the overall clinical consequences of Covid-19 may ultimately be more akin to those of a severe seasonal influenza (which has a case fatality rate of approximately 0.1%) or a pandemic influenza (similar to those in 1957 and 1968) rather than a disease similar to SARS or MERS, which have had case fatality rates of 9 to 10% and 36%, respectively.

When Fauci speaks to the media in countless interviews to mainstream TV he uses the usual fear-mongering narrative of the deadliness of the corona virus.

This shows that there is clearly a different agenda behind covid than controlling the “Pandemic”, but rather controlling the people. We ought to wake up. It’s too late to talk about reinstating “democracy”. Truth is, we never had democracy. And now we have to fight for our sheer survival as human beings. Trust me.

“Democracy” is but a wishful slogan. Democracy in today’s world certainly doesn’t exist. It never did. Not even in ancient Greece it worked, where the term was invented some 2500 years ago by well-off, but admittedly well-thinking philosophers. Democracy was always for the educated, for the fortunate and wealthy, but it never played out in truth to all of the people to what the term in its original translation meant and means. As soon as the term “democracy” is given to politicians as a concept to be applied to ruling a nation, the meaning of “democracy” is vandalized into “the people choose, but the elite decides”. It is the same as of this day. Democracy is derived from the ancient Greek “demokratia,” literally meaning that power belongs to the people. It never did, and even less so today.

“The power belonging to the people” was and is conceded to the people, always to the extent that the controlling elite deems appropriate. If the people want to take over what’s theirs, the controlling elite brings out controlling forces and plays the propaganda game, misinformation, manipulated truth and outright lies. This was the case then and is practiced today in even more sophisticated ways.

Today, deceit is not just applied as the ruling elite sees fit and for personal gains, it is manufactured by algorithms, actually by Artificial Intelligence. Today’s elections, particularly in the west, are decided by oligarch or deep state-controlled algorithms. The voters play an alibi role. Not more. There is hardly any election in the (western) world which is not ultimately controlled and decided by the United States.

Back to the non-democratic European Union. It is using NATO troops for urban warfare, if you will. There is a not-much-talked about German/NATO military base in the small “Land” (State) of Saxony-Anhalt, not far from Hamburg. According to the German online journal “Pivot Area”, the urban warfare military base in Schnöggersburg is being built since 2012. It should be finished by the end of 2020. By then it will consist of more than 500 buildings stretched over 6.25 square kilometers. The so called “urban agglomeration“, as the Bundeswehr (German Armed Forces) labeled its training ground, has a whole city infrastructure; i.e., a canalization (water supply and sewerage), an underground (metro) line, a train station, an industrial park, as well as a sport stadium, slums, residential areas and a high-rise district. The German MoD (Ministry of Defense) planned to invest 140 million Euros into the project (by completion, it will likely be considerably more). According to lieutenant-general Frank Leidenberger, head of the land forces innovation-department, the last decade shows the clear trend, that “warfare moves from the field to the cities.“ Therefore Schnöggersburg should give the German armed forces a supreme training ground for state of the art operations in urban scenarios. Leidenberger says also that the Bundeswehr considers its new high training city as a strategic resource to push the framework of nation concept with partner armies.”

The key phrase is “the framework of nation concept with partner armies.”  That’s where NATO comes in.

How many Germans have been democratically informed about this Monster Project? It clearly indicates that urban social unrest, on massive scale, was already foreseen way before 2012 – probably around the time that the Global Great Reset started taking form, decades ago, in the criminal heads of the all-controlling Deep Dark State; those that started this new phase of societal digitization with 9/11 in 2001, curiously also the beginning of a new western calendar landmark, the Third Millennium. Starting with 9/11, the western empire and its minions went downhill. And the East started rising.

The downhill slide will undoubtedly mean the end of the empire. But on the way there, all the most mischievous powers will be used to enslave the population, digitally and with AI algorithms. Since this Deep Dark State has also eugenicists in its core, a massive population reduction is also part of the plan.

Monetary digitization is likewise part of the plan. In fact, it is already well under preparation, as an element of WEF’s Great Reset, or as the IMF calls it, “The Great Reformation”. The IMF (and the World Bank), both controlled by the US Treasury, are planning a so-called Bretton Woods 2.0, a Reset of the monetary system, where eventually the western dollar economy would be replaced by a digital crypto-currency, in which selected western currency may partake. The role of gold in it is not clear, nor is the role of the de facto strongest currency, the Chinese Yuan.

If this as of yet hypothetical new IMF-BIS controlled crypto-currency materializes, it would most likely wipe out all US debt and make lines of credit available – perhaps in the hundreds of trillions of dollars equivalent – to help bail-out small central banks of poorer, highly indebted countries. See:

Would these countries’ debt base just balloon out of proportion with the new IMF-BIS bail-outs, or would they simply (have to) concede their national asset base to the IMF-BIS managed Global monster fund to be able to limp along in “lockstep” and poverty, according to the Masters’ rules, is not clear.

In any case be prepared.  There is much to come, if, We, the People, allow the Covid-19 induced Great Reset to move forward. It is increasingly clear that covid is nothing more than an instrument for a much grander plan, The Great Reset. The Great Reset is the antidote to “democracy”. It is a further demolition of any hope towards a “democracy”.

Fortunately, there is China, also with a new digital (crypto?) currency, in test phase, under preparation, eventually to be rolled out for international payment use, as an alternative to the dollar economy, or the new IMF-BIS treacherous US Treasury controlled crypto-currency. In contrast, the digital yuan is meant as a peaceful means of trading among equals in view of a more balanced multi-polar world. Yes, this despite the negative wester thinking about China.  The Tao life philosophy that the west doesn’t want to know or understand, is not confrontational, not even when constantly confronted by the aggressive west.

In the meantime, to escape the new monetary tyranny (from fiat dollars to fiat-fiat crypto), countries could simply retake their sovereignty, take back their national central banks, their national currencies and start producing for local markets with local public banks and with local debt as much as possible towards a state of self-sufficiency, with cross-border trading in local currencies. If this happens, the IMF-BIS controlled crypto currency will bite the dust.

The post “Democracy” vs. Covid:  A No-Go first appeared on Dissident Voice.

China’s Economy and Globalization: A Look into the Future

After the corona crisis, may the world be facing a monumental paradigm shift of power towards a more balanced civilization, more social justice and equity? The global almost total lockdown, chosen by most governments around the globe in response to mastering the Covid-19 crisis, devastated the world economy, as we know it, and hundreds of millions of lives. Was it necessary? Will there be a time when those responsible for this universal, scientifically unnecessary lockdown be held accountable?

The last six months, governments around the world have almost unilaterally committed an auto-destruction of their socioeconomic fabric and collectively of the global economy. It may never return to the “normal” of the times before COVID. That, per se, may not be a bad omen, though, as our pre-corona existence, especially in the west, was everything else but an ethical “normal”.

Pre-Corona Globalization and Economic Development

Neoliberal economics have “normalized” greed, inequity, exploitation of people and depletion of resources. This was largely possible due to an ever more reckless ultra-capitalist globalization and privatization of everything – goods, services and assets through international corporatism and globalized private banking.

Global finance was – and still is to some extent – dominated by a fiat US-dollar system aiming at total control of the world’s riches towards a global economic and resources hegemony, enforced by sanctions and confiscation of assets, coercing dissenting nations under the dictate of the United States and her western allies. The countries that did not cave in – Cuba, Venezuela, Iran, Syria, Yemen, North Korea – and not least, of course, China and Russia are relentlessly assailed.

The corona pandemic temporarily slowed western pressure on China and Russia, as it brought about an abrupt stop to world economic activities, causing a melt-down of assets, plunging stock markets by over 30 percent, creating untold bankruptcies, unemployment and human misery unrecorded in past history. The calamity may be far surpassing the Credit Crisis of 1772, the Great Depression (1929 – 1933) and the Financial Crisis of 2007 – 2009, possibly by orders of magnitude, once the dust settles and a more accurate accounting can take place. This may take months, if not years.

Estimates from the International Labor Office (ILO) now predict unemployment and underemployment may reach up to 2.0 billion people worldwide, more than half of the globe’s total workforce, many of them living in precarious conditions well before the corona outbreak. The World Food Program (WFP) fears that hundreds of millions of people may be affected by famine and tens of millions may die. This is a somber base from which to look forward into – let’s hope – a brighter future.

The silver lining of this dark corona cloud is that the dollar hegemony is coming to an end, and instead the world is presented with a wide-open window of new opportunities to stitch a social fabric that fits all or most of humanity, forging a new social contract towards creating a common future for mankind.

Salient features under globalization as we know it

Economic development under unfettered globalized capitalism has in the past 70 years ravaged the globe and in the Global South has drastically increased inequality, injustice among peoples and nations. The Washington Consensus (1989) has given free reign for forging unequitable trade agreements which often undermined and even annihilated national sovereignties of poorer countries, for example, driving local farmers off their land by forcing subsidized western agricultural crops into their countries.

Globalization under the neoliberal concept has also brought privatization of everything, but especially of social services and infrastructure, destroying the peoples’ accumulated asset base,  shuffling social capital from the bottom to the top, to the western private banking sector and a few oligarchs, thereby destroying the little and often flimsy social safety nets poorer nations may have established – safety nets which would come in handy now with Covid-caused poverty skyrocketing. CNBC reports that America’s billionaires added US $434 billion to their fortunes during the 3 months of U.S. lockdown between mid-March and mid-May 2020.

China’s 1949 Revolution initiated by Chairman Mao presented a new concept of economic and social development, one that still holds as of today. After western devastation of China, it started wisely in building strength by seeking self-sufficiency in education, health and nutrition, and in eradicating poverty. The Chinese society worked — and keeps working — in a flux of constant creation with natural ups and downs and trials and errors, but steadily advancing, learning and succeeding which, in turn, motivates new creation, new achievements.

After reaching this first objective of basic autonomy, China opened her gates to the world to continue the harmonious flow of creating relationships for trade and investments, educational and cultural exchange and gradually moving into research and cutting-edge science to share with the world. It is the contrary of what the west is used to. It is cooperation instead of competition, a concept hardly understood in the profit-driven capitalist west.

The idea of cooperation in economic development coupled with an endless flow of creation – avoiding conflicts and moving forward, a solid Tao principle – has grown China to where she stands today, becoming the world’s second largest economy, after starting practically from zero only 70 years ago. China is a vivid example of socialist success. Or, as the Chinese would say, “socialism with Chinese characteristics”. A nation that never seeks conflicts or invasions of other countries, but strives for partnerships and peaceful cohabitation. This worries the west, especially the self-declared US empire.

On 7 September 2013, Visionary President Xi Jinping re-initiated the ancient 2100-year-old Silk Road at Kazakhstan’s Nazarbayev University. Adjusted to the 21st Century, it is called the Belt and Road Initiative (BRI), but it is based on the same old principles building bridges between peoples, exchanging goods, research, education, knowledge, cultural wisdom, peacefully, harmoniously and ‘win-win’ style.

In his inauguration speech, President Xi spoke about “People-to-People Friendship and Creating a better Future”. But he went further, pointing to the history of exchanges under the Ancient Silk Road among people from different creeds and cultures: “They had proven that countries with differences in race, belief and cultural background can absolutely share peace and development as long as they persist in unity and mutual trust, equality and mutual benefit, mutual tolerance and learning from each other, as well as cooperation and win-win outcomes.”

This is the corner stone for the development endeavor of the 21st century. It signals a globalization under different terms, a globalization under equals. And, yes, a New Social Contract. Partner countries are invited, not coerced, to participate in this mammoth enterprise to span the world with land and maritime routes, for trade, for joint research and scientific exchanges, leading to an endless flow of ideas for new technologies but also of social sciences to enhance peaceful human interactions. A case in point may be the new China-Cuba collaboration in health science that emerged from the corona crisis.

Globalization under a new normal

China will play a major role in the new emerging world order, not a One World Order as a small western elite envisions, but a new paradigm built on partnership, on equality on building bridges, instead of walls, avoiding and resolving conflicts peacefully and without violence. Call it a new Social Contract to span the world for all those who are interested in participating. The corona crisis is gradually bringing an awakening for a new consciousness, one that we always had but got buried in the rush of things – greed, power, comfort and also neglect for the less privileged and destitute.

China may be a guiding light for the realization of this new paradigm. Why? Because China experienced in her 70 years of Revolution what the corona-devastated world needs today to rebuild and to restart with a new set of values towards a better equilibrium of access to goods, services and resources, while maintaining a healthy environment.

What propelled China forward was the simple principle of local production for local markets and local consumption with a local currency through a public banking system managed by a sovereign central bank working for the good of the people (not for shareholders), gearing towards an equitable development and self-sufficiency for all. This does not preclude private sector participation at all. But the State sets rules and parameters within which private interests may move. That’s why China is “A socialist nation with Chinese characteristics.”

Prospects for a new concept of globalization

China’s economy is strong. Despite a practical standstill of about two months, China has almost recovered, while the west is still struggling to find common denominators for collaboration and for revamping their economies. The IMF had originally predicted a global GDP decline of 3% for 2020, and a slight growth for 2021. In the meantime, the IMF adjusted the decline to 5.5 %; still way too little, since the world hasn’t even seen the tip of the iceberg yet of this global mammoth socioeconomic disaster. For China the IMF foresees a modest growth of 1.1% in 2020. Both figures are likely underestimates. Given the massive wipe-out of much of the global economy, 2020 negative GDP for the world may be as high as 10% to 15% when the chips are down and counted.

On the other hand, China having recovered rather quickly and with a public banking sector destined to address the economy’s weak spots, 2020 growth might be in the order of 3% to 3.5%. But as a leading economist from the International Monetary Institute (IMI) of Beijing’s Renmin University says – “we are talking about quality growth”, meaning, growth will focus on the social dimension of people’s needs.

China will forge ahead with the socioeconomic development program of the century – the BRI –and expand her partner and associate members, already more than 160 today. Due to the corona catastrophe, foreign debt has been rising almost in reverse proportion as GDP has declined. President Xi has pledged 2 billion dollars to fight the virus. Additional debt relief especially to the poorer debt-strangled Belt and Road partners, might facilitate progress towards a better-connected world.

A new kind of globalization will rise from the ashes of the corona crisis. Restoring individual countries sovereignty, as well as their monetary, financial and economic autonomy and without a debt stranglehold preventing them from prospering, is crucial for becoming equal partners in a new globalized world. BRI is the new vehicle promoting self-assured partners that do not have to fear “sanctions” for wanting to preserve their sovereignty.

The west, especially Washington, may not like this “game changer” approach. Therefore, China may not be spared in the foreseeable future from western bashing and aggressions. The reasons are NOT corona guilt or mismanagement, or unfair trade, reasons Washington likes to propagandize. These false accusations are meant to denigrate China to break or weaken the world’s trust in China’s economy and in particular her strong and gold backed currency, the yuan.

China’s central bank (People’s Bank of China – PBC) has just launched a trial run in a number of cities, including Shenzhen, Suzhou, Chengdu, and Xiong’an of her new crypto-currency, the e-RMB (Ren Min Bi, meaning People’s Money), or Yuan.

Eventually the new cyber money will be rolled out internationally for trade, commodity pricing – and even as a safe and stable reserve currency. The digital block chain money assures the users total security, no interference from outside. It is a protection from” sanctions” and arbitrary confiscation. This will add a new dimension to China’s economic strength. Not only will her economy soon outrank that of the United States, but the yuan may also shortly become the key reserve currency in the world.

Look at the huge continent of Eurasia which is also connected to Africa. To serve this enormous landmass no seas have to be crossed. Its easy trading, friendly relations, no conflicts, because equal partners strive for the real meaning of trade, no losers, only win-win. Then there are the countries of the Shanghai Cooperation Organization (SCO), which in addition to China include also Russia, India and Pakistan – and soon also Iran, with Malaysia and Mongolia in observation status waiting in the wings.

China is also boosting trade among the ASEAN+3 countries (Association of Southeast Asian Nations – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam; plus 3 = Japan, South Korea and China). Monetary transactions will take place in local currencies, not the US dollar. They will be using CIPS (Cross-Border Interbank Payment System), avoiding the dollar controlled SWIFT payment scheme.

SCO and ASEAN+3 account for about half the world population and for one third of the globe’s economic output. It is a formidable market and most of it on this huge landmass called Eurasia. No need for the belligerent west.

This new form of non-aggressive and non-invasive globalization may make example and evoke reflection. Perhaps it may serve others, Europe, for instance, as a vehicle to recover from the colossal corona collapse. Imagine a globalized world among equals – a community seeking a common future for mankind.

• First published by the New Eastern Outlook – NEO

China’s new Crypto-Currency:  First Step to Full Dedollarization?

 ‘We’ll cut off the whole relationship’ –Trump threatened China in a recent Fox-Business interview, suggesting he may cut diplomatic relations with China and thereby saving US$ 500 billion. He didn’t say how, though.

Mr. Trump’s anger referred to what he calls China’s “mismanagement” of the corona crisis. This is consistent with the new China bashing hard line being pushed by his administration. “I’m very disappointed in China,” Trump said during the same Fox interview. “We asked to go over and they said no,” he continued, referring to the Centers for Disease Control and Prevention’s (CDC) February offer of assistance to the virus-stricken city of Wuhan. “They didn’t want our help. And I figured that was OK because they must know what they are doing. So, it was either stupidity, incompetence or deliberate.”

These are strong and unsubstantiated words, since there has never been a clearly documented accusation against China in how precisely China mismanaged the COVID-19 outbreak and is supposedly responsible for the COVID crisis in the US where real mismanagement, corruption, conflict of interest and particularly pharma-interests, competing private vaccine company interests  are written all over the walls, the walls of shame, falsifying corona statistics, by falsifying death certificates, paying hospitals for declaring any patient a COVID-patient, even if many of them aren’t, and for using ventilators, though it is widely known that ventilators are causing death in 60% to 80% of patients.

It is almost certain that the virus was created in a US bio-weapons lab from where it escaped deliberately or by accident and that patient zero was in the US and that the virus was brought to China in one way or another. President Trump knows it. He also knows about the real mismanagement of the crisis in his country, the United States. But he has always been good at self-promoting propaganda and slandering perceived enemies, as long as he thinks it may help him being reelected.

It is obvious that the US China bashing has nothing to do with China’s “mismanagement” of the corona epidemic, but rather with China’s bold move a step further away from the dollar-economy, by:

First, using the yuan and local currencies boosting trade among the ASEAN+3 countries (Association of Southeast Asian Nations – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam; plus 3 = Japan, South Korea and China). Monetary transactions will use the CIPS (Cross-Border Interbank Payment System), avoiding the dollar controlled SWIFT payment scheme. This is mostly to prevent US interference in international monetary transactions and also in response to the United States’ threat of cutting off Chinese supply chains.

The cutting off supply chains is, of course, sheer bluff, as literally 80 percent-plus of US industries depend in one way or another on supplies from China. This dependence is particularly significant in medical supplies, where the US depends for 80% to 90% on China. But China is China, and President Xi acted fast calling the bluff and the US may suddenly stand there with an empty cup, since such supply chains are not replaced overnight.

In the first quarter 2020, ASEAN countries have become China’s largest trading partner with 15.1 %, outpacing the European Union (EU). Trade with South Korea and Japan amounted to another 13.7%, bringing the total close to 30%. Adding China’s trade with Russia, another at least 15%, is getting close to a 50% tipping point of China’s closest partners abandoning commercial transactions in US-dollars.

Second, by launching a new People’s Bank of China (PBC = China’s Central Bank) controlled crypto-currency for international trade, thereby further circumventing the US-dollar and SWIFT controlled international money transfer system which makes all transactions vulnerable to US interference and sanctions.

China’s new cyber-money, e-RMB (Ren Min Bi, meaning People’s Money), or Yuan, is currently being tested in several Chinese cities, including Shenzhen, Suzhou, Chengdu, and Xiong’an. In these cities it has almost universal acceptance; i.e., for salary payments, public transportation, food and most retail shopping.

The use of digital money is nothing new in China. Today about 90% of all monetary transactions are electronic, for example, through WeChat and AliPay, but they do not replace the existing cash currency.

Commodity pricing today, mostly dollarized, will be priced by China in yuan and traded in crypto-yuan. Yuan pricing for commodities, such as gold, crude oil and iron ore, has already started. As China is recovering from the pandemic more quickly than the rest of the world, relatively high-returning yuan-denominated investments and commodity assets will become more attractive.

The non-interference factor of a Chinese Central Bank backed crypto-currency is an additional security element that will further boost the Chinese Yuan as a reserve currency. Already now, countries around the globe are sick and tired of US meddling in their international transactions and especially with US sanctions – that may come at a whim – every time a country demonstrates her sovereignty or disobedience to US dictates. This leads many countries that may not speak out publicly for fear of sanctions to gradually and quietly divesting their dollar holdings into Chinese yuan.

A tipping point may be reached when about 50% of world trade and world reserves are denominated in yuan. At this point it would be likely that the worldwide dollar hegemony will be no more, as it may be displaced by the yuan.

Several leaders of countries were killed for attempting to replace the dollar for trading with other currencies. For example, Saddam Hussein, for his intent to use the euro for trading Iraq’s hydrocarbon riches, and Libya’s Gadhafi, when he wanted to introduce the Gold-Dinar as a Pan-African trading currency, thereby freeing Africa from western monetary slavehood. As we all recall, he was literally lynched by NATO on 20 October 2011, at the initiative of Hillary Clinton with the strong support of then French President Sarkozy. By the way, this western monetary stranglehold on Africa prevails as of this day – a new-old kind of colonization, nobody in the western mainstream reports on.

Once the new e-RMB (yuan) has been successfully tested locally it will be launched internationally. While China’s new PBC-backed cyber-currency’s internationalization will make the yuan even more attractive among trading partners, and also as a reserve currency, China may simultaneously divest its huge reserves of US Treasury bonds (about US$1.2 trillion) into purchasing assets abroad paid in US-dollars. The Belt and Road investments maybe a suitable vehicle to reduce dollar holdings at home.

In the current high corona debt-crisis around the world, especially the Global South, China may also consider a program of Debt Jubilee (debt forgiveness) to the poorest partner countries which may be already, or potentially be, future Belt and Road associates.

At present and since October 2016, the Renminbi (Chinese yuan) is part of a 5-currency basket at the IMF that constitutes the Special Drawing Rights (SDR), the world’s ultimate virtual reserve currency. The SDR share distribution is US-dollar 41.73%, euro 30.93%, Chinese yuan 10.92%, Japanese yen 8.33% and the British pound 8.09%. This currency allocation to the SDR is disproportionate with regard to the economic strength of the respective countries, especially China, the world’s second largest economy, rapidly moving towards first place.

China may want to vigorously renegotiate with the IMF her currency proportion in the SDR, as well as reviewing country quotas which by now are out-of-line with member countries’ economic weight. An IMF capital increase is overdue. The IMF capital base today is SDR 477 billion (US$ 677 billion). In addition, there is the temporary New Arrangement to Borrow (NAB) which in January 2020 has been doubled to SDR365 billion (US$ 475 billion), a total resource-base of about US$ 1.15 trillion. Yet, the IMF already today foresees US$ 1 trillion for additional corona debt lending and debt forgiveness. Since the NAB is only a temporary arrangement, a quota increase and review; i.e., a proper adjustment for China’s economy is more than overdue.

A quota adjustment in favor of China and the corresponding adjustment of the yuan’s proportion in the SDR basket would further enhance China’s currency vis-à-vis the rest of the world. This coupled with an incorruptible cryptocurrency controlled by China’s Central Bank and possibly backed by gold, would be a formidable reserve currency that most countries would like as their chief reserve asset. This, of course, is what Washington is afraid of. It would clearly endanger and probably crush the global US-dollar hegemony.

The world would be a better place for it.

Therefore, the current China bashing and attributing guilt for spreading and mismanaging the corona virus is a sheer farce – a treachery of the
world, a deviation of the real reason behind Trump’s attempt to demolish China’s reputation around the globe, namely by doing so, hoping to destroy the rise of China and the appreciation of the Chinese yuan, and thereby the yuan’s attractiveness as an investment currency for most of the rest of the world.

This is pretty similar to the real reason for the 2018-2019 US-China trade war, initiated by President Trump, had the objective of ruining the yuan’s reputation in the world arena. To no avail. Washington eventually quietly and unceremoniously lost the conflict over trade. Despite Trump’s loud declarations to the contrary, the US needs China much more than vice-versa.  Just look at the Chinese supply chain which the west, in particular the US, cannot replace from one day to the other.

Under President Xi Jinping’s leadership, China has switched gears rather fast. Preparations to orient towards Asian markets are in full swing. China is enhancing relations with Asian markets; i.e., the ASEAN countries, plus Japan and South Korea.

Members of the SCO (Shanghai Cooperation Organization) are also a trading market China is already engaged in and may further strengthen it. The SCO, in addition to China and most of the Central Asian countries, include also Russia, India and Pakistan – and Iran is waiting for imminent admission. thers, like Malaysia and Mongolia are in observer status and also slanted to become SCO members in due course.

The combination of SCO, ASEAN-plus 3, amounts to more than half the world population and accounts for more than a third of the world’s economic output. This is a formidable global “market share” and will likely increase with every atrocity – military and economic – Washington is committing around the globe.

With her new crypto-currency, which eventually will be internationalized, China is well on her way to fully dedollarize, with the cyber-yuan replacing the US-dollar as the key trading and main reserve currency and to displace the United States as the world’s financial and economic hegemon.

The current China bashing does not prevent China from forging ahead with her economic activities – trade – and especially the unstoppable Belt and Road Initiative (BRI) via maritime and land routes, already counting on 160 partners (about 120 countries and some 40 multinational organizations) on four continents. This revolutionary global development scheme will require trillions of yuans and dollars for investments. It will also be generating trillions in revenues over time, shared with BRI partners. All towards a common future for mankind – a world moving towards an equilibrium with justice, harmony and peace.

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.