The well established financial institutions in place currently, such as The World Bank, International Monetary Fund (IMF) and Asian Development bank (ADB) lending to Asia for infrastructural development has been a challenge for many countries, for it is primarily the good old’ Bretton Woods system of the West. The Western conditions are unfair to other countries because they don’t have a say just where the money from these organization can be applied. China and India for years have tried to negotiate with U.S. congress for more voting power than the four percent China has, while America and Japan is a little over fifteen percent. U.S. congress has denied the shift in voting power even when China is now the second largest economy in the world. China along with many other countries see this as truly disabling economic growth and unfair. Many countries are looking at the Western decisions made so far and the repercussion of forced manipulation by the FED and blatantly see how well that is working for the west and Japan as well as Europe.
This set the stage for the shocking announcement from China’s President Xi Jinping that he will open a new investment bank, The Asia Infrastructure Investment Bank (AIIB) to create a new equality and strengthen cooperation and correlation in the international multilateral mechanisms. Asian developing countries needs are unfulfilled by the current situation and are in desperate need of such a bank. This would boost the Yuan and boost China’s employment securing contracts from Chinese firms along with investing some of the $3.9 trillion in foreign reserves in commercial firms, most of all it would boost China’s influence and power. This has made the U.S. and Japan uneasy China has invited many countries to sign the memorandum of understanding (MOU) they have till April 30 but opens April 15. I just wonder if it a coincidence it is on the U.S. tax day.
This move by China of course is to veer from the heavily U.S. influenced Asian Development bank (ADB) and The World Bank and International Monetary Fund (IMF). The system SWIFT has been the FEDs and U.S. Treasury’s money GPS system in Brussels, like when the U.S. government seized Japanese bonds worth over $134 billion, or tracked down and blocked $100 billion belonging to Iran. Since the U.S. levied the SWIFT sanctions and cut Iran off from the USD, the U.S. lost its leverage it didn’t matter to Iran. When the U.S. did it to Russia Putin went to China, truly anything he could have gained from the States China can fulfill. Over one hundred and thirty nations have major deals on using an alternative currency other than the dollar now. China and Russia have more in common than one would imagine regards to belief and history both leaders being very neologistic has gotten the attention from the Saudi empire they are enticed with the idea of a non-USD arrangement since drifting apart over Israeli settlements and conflict with the nuclear deal in Iran. The U.S. is dependent on Saudi oil and it holds the alliance together because the Saudi Kingdom needs (needed) U.S. security. The reduction in need for oil from America combined with profound disagreements on foreign policies has crumbled the alliance and friendship that served the two countries for many years. Since WW2 the two countries have had overlapping interests and the allies grew through the Cold War against the Soviet backed Egyptian force, the U.S. helped arm them though the 1960s civil war and again in the 1980’s against the soviets. The U.S. support for Israel with an oil embargo upset the Saudis in the 1970’s the Kingdom remained loyal to its alliance with the U.S. in fact pre Iran, it was Saudi money alone that funded Regan’s congressional ban ageist the rebels in Nicaragua. In the 1990’s Saudi Arabia welcomed over 500,000 U.S. troops inside their country to fight in the first war against Iraq. The former King of Saudi Arabia Riyadh not only lifted sanctions, then when rising prices in oil threatened the American economy he increased oil production for Washington. Why this is important? Because Riyadlh had lost confidence in the U.S. “security guarantee” Riyadlh showed his disdain by withdrawing the U.S. military air space used over Saudi Arabia forcing them to have to go around the Arabian Peninsula. After nine-eleven, the U.S. questioned the empires involvement and the rift between them didn’t stop with George Bush. Obama’s deal with Iran caused more conflict, adding the Palestine peace plan conflict between the two didn’t help. Obama embracing Mohammed Morsi the leader of the Muslim Brotherhood after turning his back on his American ally Hosni Mubarak infuriated Riyadh, so much so that he gave $12 billion to Abdel-Fattah El-Sissi for overthrowing Morsi and changed the relationship America had with Egypt for good. This has caused the Saudis to look elsewhere for a new alliance and China has welcomed them with open arms for the biggest oil producer in the world. China being the new chief customer for Saudi Arabia may have ensured the ideal place and time to move into the Petro-Yuan. The new King Salman bin Abdulaziz Al Saud has stated they want to punish Iran and Russia along with the U.S. trough the drop in purchasing price of their oil. This new found independence of Salman has extended in to world trade, he is on the market for new commercial relations and charting their very own policy path despite what the U.S. wants. The Saudi empire has enough cash reserves to do just about anything they want to. This is critical for the USD because of the Petrodollar agreement with Saudi Arabia and the U.S. free trade agreement with China. Good old Nixon was so eager to get involved in both situations. Now America could lose all allies and leverage for the now artificially propped up USD that was fought so hard for.
The reality that our world’s reserve currency is now debt based, the system we have implemented is not working on so many levels. The world’s reserve currency needs to be backed up by a real productive economy like China. The U.S. was warned by so many advisers that our Keynesian approach will fail and the debt based economic decisions will ruin the U.S. If the U.S. is judged by the company it keeps, what does it say when forty-six other countries are signed up and ready to go with AIIB except North Korea and the U.S. not saying that there is much in common, except both are run by delusional self absorbs governments. Others are jumping on board, the United Kingdom was the first NATO partners to announce they will be joining the AIIB and this sent shock waves through Washington as Spain France and Italy along with the Netherlands joined. Even Germany who is inching towards exiting out of the Euro has joined. The US, Japan along with North Korea is the only ones that stated that they have no intention or were rejected. North Korea was rejected and it is uncertain if the U.S. was as well, along with Japan it is said they refused. It seems that Russia is not so isolated anymore but the U.S. is. They are not invited to the party. Is this what happens when community organizer becomes president? I am sure he personally is not really making the decisions, but who then is the true puppet masters and why?
China along with the world has seen the empire of debt that the U.S. has created, sovereignty of client counties abused, disrespect to allies and the selfish nature of the U.S. Washington has not made too many friends along the way to global debt. Other countries would rather gamble on the historically corrupt Chinese empire and join a new unknown investment bank than deal with the reality of what our monetary system created. This move may not benefit the average Chinese citizen. However, the one percent of rich Chinese control more than a third of the country’s wealth, and in 2012 real estate accounted for 70 percent of all household wealth, and now the Chinese are buying massive amounts of land worldwide. A few years ago, the U.S. would have never even assumed that any country would trust the Chinese central communist party for a reserve currency. I have a feeling this plan China is showing has been in the works for sometime now. China has been buying up assets in the U.S. and all over the world; they even wanted and offered to buy out Canada’s oil. China’s anti corruption and transparency campaign is starting to make sense now paving the way for other countries trust. Many are disgusted with the secrecy and manipulating the U.S. government and Federal Reserve have been doing for so long. Anything the U.S. can offer another country China believes they can too. China wouldn’t mind helping Iran out with a few war toys, since the U.S. would intervene any weapons shipped to Iran but turn a cheek to a Chinese warship destroyer passing through. Let us not overlook the multitude of sanctions surrounding Iran, they would be fools not to join this new and intriguing entity. On the other hand, possibly the U.S. overlooked the Joint military exercises these countries have been partaking in, doubting there advancements towards new alliances is Washington’s big mistake
This time around the war plan that the U.S. had for Iraq wont stand up to the mass military that would surround the strait or the hundreds of miles of coastline involved. For all we know China and Russia have been dropping off weapons and picking up takers of oil for some time now. Or teaming up to solve China’s demographic issues along with Iran’s massive youth issues so they marry off the Iranian women for the overwhelming number of Chinese men in waiting.
Trying to make light of it all seems impossible this is a big move and Iran is looking at us wondering if they should pull the trigger because Hassan Rouhani saw first hand how powerful and calculating the U.S. military is when we started a war over the petro dollar with Saddam. Look at Gaddafi, he was our ally until he wanted to quit selling Libyan oil in USD. The U.S. doesn’t play around with the petro dollar. The WW3 everyone says is coming has already begun it is just a financial war, this time and I don’t know if the USD has that kind of arsenal with our debt. Therefore, we may have to blow something up or create other systematic events in our favor. The question is will the Obama Administration have the backbone needed for this war?
America has changed from the gun totting pro militant patriot it once was. American individuals have a different perspective when it comes loyalty to America and its military. Primarily Americans in general are individualists and don’t rely on community or value communal benefits of necessity that other countries must rely on to survive. Fighting for your country once involved protecting your property and spouse now Americans are just trying to defend themselves from American banksters and debt. Divorce rates have never been higher and the poor and poverty-stricken are joining the military for saviour not because of love for the great USA or loyalty to the nation. Why would they? The harsh reality is that we have been transferring all our money, industries, technology and employment to china for years…willingly on a silver platter, “here take our trillions you need it more than our people” Greed apparently has no consequences. I mean maybe some “other” country has a NSA tape with some amazing information or why would any of this be taking place. This AIIB is a huge game changer on a global scale and a direct threat to America.
China made some new friends; even the threats that Obama gave Australia and Israel about joining the new bank didn’t change their mind one bit. I though Bush made enemies, I would bet the Chinese Embassy hasn’t forgotten the U.S. bombing mistake and just to top it off with personal disrespect, the U.S. refused to apologize. The Obama Administration is on a whole new level of being hated by the world. Manipulation and lies are becoming more and more transparent and trying to cripple other counties by manipulation is becoming clear. I won’t even get into the Ebola and oil correlations or the U.S. efforts to keep China out of Africa; we sent three thousand troops to the borders of Africa to fight Ebola. Yet we will stand down and watch millions of people displaced knowing we could wipe Isis out in a day and do nothing.
All the world economies seem to be on the verge of a major bubble bursting one way or another. America pushed so hard predicting china to e the most epic bubble burst ever.
It just may be that China could be the next IMF. Last year China campaigned the de-dollarization of the only thing America would start a war over, the petro dollar. By leveraging its rise as an economic power with hydrocarbon exporters. This of course had Putin and most of the Middle East very interested, Putin has been attacked by the U.S. in every way since his petro dollar exit. This is a direct move to cut the dollar dominance in global energy scene. In fact, China even parked a Navy destroyer right in the Southern Iranian port along with a logistics ship just to say they were “combating piracy”, this was the first time in history they made a show of foreign support. Ironically, Russia docked at the same port on the way back from a mission. The aid offered by both was seen by Iran and was welcomed. The mouth of the Persian Gulf, The Strait of Hormuz is a passage that ships a fifth of the world’s oil. This is interesting because these ports are major locations, the same locations that ISIS and Hamas (really the U.S. and U.S. or Russia maybe China) are causing such turmoil with a “risk” of cutting off the ninety-five percent of Asian bound oil. Most of the Middle East has relied on the U.S. for security and direction. In 2012 China swapped around $5.5 billion with the United Arab Embassy for oil in the Chinese Renminbi, this showed others like Dubai and the Persian Gulf it could be done. This last year China also set a deal with Russia that over $500 billion in gas purchased will be in renminbi. When china expands to hydrocarbon bought and sold in renminbi, Americas influence will no longer be needed and our “foreign polices” that so many counties view as imperialistic will fold.
Our current practices are not set in stone and are sure to change. Putin must have seen this as a huge opportunity to merge with China and trade land or gold for a new reserve currency. Between Russia China and probably India, they have enough Gold to back the Yuan taking it back to the gold standard that so many are yearning for, or a basket currency. After seeing what Quantitative Easing has done many if not, all countries are looking for any alternatives. Not just oil for gold, other obtainable assets like arable land, or geo political positions. The Petro Yuan is already taking place and has been. The Peoples Bank of China (PBOC) has been swapping with more than thirty central banks internationalizing the Renminbi though external trade proving it could function just fine as the new reserve currency China has gotten the attention of energy producers, being one of the mass consumers, at the rate of growth they are the market in the future of hydrocarbons energy trade. Once the Saudis reject the USD for oil America will be done. Its no wonder Obama has been spending so much energy kissing up to Afghanistan and the Saudi empire because while he is worried about immigration so we will have a military in the future other world leaders are immigrating on the reserve currency
Until China unpegs its currency from the USD the dollar will remain strong and winning. The FED will reset the debt based currency one-way or another. The reality is the evil régime of America just may be preferred to what a mix of a Russian or Chinese overlord could possibly be like. .
China and Russia and most of all the FED all know all china really has to do is buyout the seventy to one COMEX gold contracts and demand that they delivery, POOF, the whole ponzi scheme is blown creating chaos. Possibly the FEDs worst nightmare. Don’t underestimate the power of the FED they are well aware what is taking place and the domino effect it will have, on every level. Not to give them too much credit but let me just say they are not naive by any means and extremely resourceful. America’s Powers That Be (TPTB) would never allow COMEX to default if MF Global formerly Man Financial is any indication of just how much influence TPTB have when needed. Was awarded primary dealer status in 2010 Primary dealers and unregulated by the FED to buy and sell U.S. treasuries at auction was counter party to the Federal Reserves Open Market operations. The same MF who ended up admitting to federal regulators in 2011 that around $1.2 billion was missing from customer accounts. Just several days before the bankruptcy, they transferred funds outside the country. MF Global acknowledged a shortfall, yet The Wall Street Journal reported that MF Global would seek chapter eleven-bankruptcy protection, after investing more than $6.3 billion in sovereign bonds issued by European countries that gave a chapter eleven grand total of $41 billion. When you see the reality and lack of real regulations for the chosen few, it gives you an idea proving they will do anything before allowing any kind of real default regarding COMEX or any other large entity, just like the London fix, COMEX would become irrelevant. America will just reset and this could be the master plan,
America will stay king by any means necessary we can’t forget that. Progress is what Obama keeps preaching, let us remember that Stalin killed thirty million of his own people in the name of progress, the Obama Administration is just killing an estimated 318,000,000 people slowly and financially.
Believe me, the next step is a currency crisis because there will be a rejection of the dollar, the rejection of the dollar is a big, big event, and then your personal liberties are going to be severely threatened.
Ron Paul
