Financial War: Russia & China vs U.S. & NATO

The financial war between Russia with China’s tacit backing on one side, and America and her NATO allies on the other has escalated rapidly. It appears that President Putin was thinking several steps ahead when he launched Russia’s attack on Ukraine.

We have seen sanctions fail. We have seen Russia achieve record export surpluses. We have seen the rouble become the strongest currency on the foreign exchanges.

We are seeing the west enter a new round of European monetary inflation to pay everyone’s energy bills. The euro, yen, and sterling are already collapsing — the dollar will be next. From Putin’s point of view, so far, so good.

Russia has progressed her power over Asian nations, including populous India and Iran. She has persuaded Middle Eastern oil and gas producers that their future lies with Asian markets, and not Europe. She is subsidising Asia’s industrial revolution with discounted energy. Thanks to the west’s sanctions, Russia is on its way to confirming Halford Mackinder’s predictions made over a century ago, that Russia is the true geopolitical centre of the world.

There is one piece in Putin’s jigsaw yet to be put in place: a new currency system to protect Russia and her allies from an approaching western monetary crisis. This article argues that under cover of the west’s geopolitical ineptitude, Putin is now assembling a new gold-backed multi-currency system by combining plans for a new Asian trade currency with his new Moscow World Standard for gold.

Currency developments under the radar

Unreported by western media, there are some interesting developments taking place in Asia over the future of currencies. Earlier this summer, it emerged that Sergei Glazyev, a senior Russian economist and Minister in charge of the Eurasian Economic Commission (EAEU), was leading a committee planning a new trade currency for the Eurasian Economic Union.

As put forward in Russian and EAEU media, the new currency is to be comprised of a mixture of national currencies and commodities. A weighting of some sort was suggested to reflect the relative importance of the currencies and commodities traded between them. At the same time, the new trade settlement currency was to be available to any other nation in the Shanghai Cooperation Organisation and the expanding BRICS membership. The ambition is for it to become an Asia-wide replacement for the dollar.

More specifically, the purpose is to do away with the dollar for trade settlements on cross-border transactions between participants. It is worth noting that any dollar transaction is reflected in US banks through the correspondent banking system, potentially giving the US authorities undesirable economic intelligence, and information on sanction-busting and other activities deemed illegal or undesirable by the US authorities. Furthermore, any transaction involving US dollars becomes a matter for the US legal system, giving US politicians the authority to intervene wherever the dollar is used.

As well as removing these disadvantages, through the inclusion of a basket of commodities there appears to be an acceptance that the new trade currency must be more stable in terms of its commodity purchasing power than exists with that of the dollar. But we can immediately detect flaws in the outline proposal. The mooted inclusion of national currencies in the basket is not only an unnecessary complication, but any nation joining it would presumably trigger a wholesale rebalancing of the currency’s composition.

Including national currencies is a preposterous suggestion, as is any suggestion that the commodity element should be weighted by trade volumes transacted between participating states. Instead, an unweighted average of energy, precious metals, and base metals makes more sense, but even that does not go far enough. The reasons are illustrated by the two charts in Figure 1.

The upper chart shows baskets of different categories of commodities indexed and priced in dollars. Between them, they represent a wide range of commodities and raw materials. These baskets are considerably less volatile than their individual components. For example, since April 2020 oil has risen from a distorted minus figure to a high of $130, whereas the energy basket has risen only 6.3 times, because other components have not risen nearly as much as crude oil and some components might be rising while others might be falling. Agriculture raw materials are comprised of cotton, timber, wool, rubber, and hides, not raw materials liable to undesirable seasonality. But the average of the four categories is considerably more stable than its components (the black line).

We are moving towards price stability. However, all commodities are priced in US dollars, which being undesirable, cannot be avoided. Pricing in gold, which is legal money, eventually resolves this problem because it can be fixed against participating currencies. The result of pricing the commodity categories in gold and the average of them is shown in the lower chart.

Since 1992, the average (the black line) has varied between 0.37 and 1.66, and is currently at 0.82, or 18% less than in January 1992. This is as stable as it gets, and even this low volatility would probably be less if the dollar wasn’t itself so volatile and the gold price manipulated by nay-saying western authorities. To further illustrate these points, Figure 2 shows the dollar’s volatility in terms of crude oil.

Before the abandonment of Bretton Woods in 1971, the price of oil hardly changed. Since then, measured by gold the dollar has lost 98% of its purchasing power. Furthermore, the chart shows that it is the dollar which is extremely volatile and not oil, because the price of oil in gold is relatively constant (down only 20% from 1950), while in dollars it is up 33.6 times with some wild price swings along the way. Critics of measuring prices in gold ignore the fact that legal money is gold and not paper currencies or bank credit: attempts by governments and their epigones to persuade us otherwise are propaganda only.

Therefore, Glazyev should drop currencies from the proposed basket entirely and strive to either price a basket of non-seasonal commodities in gold, or alternatively simply reference the new currency to gold in a daily fix. And as the charts above confirm, there is little point in using a basket of commodities priced in dollars or gold when it is far simpler for the EAEU nations and for anyone else wishing to participate in the new trade currency to use a trade currency directly tied to the gold price. It would amount to a new Asian version of a Bretton Woods arrangement and would need no further adjustment.

Attributing them to excessive credit, from recent statements by President Putin it is clear he has a better understanding of currencies and the west’s inflationary problems than western economists. Intellectually, he has long demonstrated an appreciation of the relationship between money, that is only gold, and currency and credit. His knowledge was further demonstrated by his insistence that the “unfriendlies” pay for energy in roubles, taking control of the media of energy exchange into Russia’s own hands and away from those of his enemies.

In short, Putin appears to understand that gold is money and that the rest is unreliable, weaponizable, credit. So, why does he not just command a new trade currency to be created, backed by gold?

Enter the new Moscow gold standard

Logic suggests that a gold-backed currency will be the outcome of Glazyev’s EAEU committee’s trade currency deliberations after all, because of a subsequent announcement from Moscow concerning a new Russian bullion market.

In accordance with western sanctions, the London Bullion Market refused to accept Russian mined and processed gold. It was then natural for Russia to propose a new gold market based in Moscow with its own standards. It is equally sensible for Moscow to set up a price fixing committee, replicating that of the LBMA. But instead of it being the basis for a far larger unallocated gold deposit account offering by Russian and other banks, it will be a predominantly physical market.

Based in Moscow, with a new market called the Moscow International Precious Metals Exchange, the Moscow Gold Standard will incorporate some of the LBMA’s features, such as good delivery lists with daily, or twice daily fixings. The new exchange is therefore being promoted as a logical replacement for the LBMA.

But could that be a cover, with the real objective being to provide a gold link to the new trade currency planned by Glazyev’s EAEU committee? Timing suggests that this may indeed be the case, but we will only know for sure as events unfold.

If it is to be backed by gold, the considerations behind setting up a new trade currency are fairly straightforward. There is the Chinese one kilo bar four-nines standard, which is widely owned, has already been adopted throughout Asia, and is traded even on Comex. Given that China is Russia’s long-term partner, that is likely to be the standard unit. The adoption of the Chinese standard in the new Moscow exchange is logical, simplifying the relationship with the Shanghai Gold Exchange, and streamlining fungibility between contracts, arbitrage, and delivery.

Geopolitics suggest that the simple proposition behind the establishment of a new Moscow exchange will fit in with a larger trans-Asia plan and is unlikely to move at the glacial pace of developments between Russia and China to which we have become accustomed. The gold question has become bound up in more rapid developments triggered by Russia’s belligerence over Ukraine, and the sanctions which quickly followed.

There can be little doubt that this must be leading to a seismic shift in gold policy for the Russian Chinese partnership. The Chinese in particular have demonstrated an unhurried patience that befits a nation with a sense of its long history and destiny. Putin is more of a one-man act. Approaching seventy years old, he cannot afford to be so patient and is showing a determination to secure a legacy in his lifetime as a great Russian leader. While China has made the initial running with respect to gold policy, Putin is now pushing the agenda more forcefully.

Before Russia’s invasion of Ukraine, the strategy was to let the west make all the geopolitical and financial mistakes. For Putin perhaps, the lesson of history was informed by Napoleon’s march to the gates of Moscow, his pyrrhic victory at Borodino, and his defeat by the Russian winter. Hitler made the same mistake with Operation Barbarossa. From Putin’s viewpoint, the lesson was clear — Russia’s enemies defeat themselves. It was repeated in Afghanistan, where the American-led NATO enemy was conquered by its own hubris without Putin having to lift so much as a finger. That is why Russia is Mackinder’s Pivot Area of the World Island. It cannot be attacked by navies, and supply line requirements for armies make Russia’s defeat well-nigh impossible

Following the Ukraine invasion, Putin’s financial strategy has become more aggressive, and is potentially at odds with China’s economic policy. Being cut off from western markets, Putin is now proactive, while China which exports goods to them probably remains more cautious. But China knows that western capitalism bears the seeds of its own destruction, which would mean the end of the dollar and the other major fiat currencies. An economic policy based on exports to capitalistic nations would be a passing phase.

China’s gold policy was aways an insurance policy against a dollar collapse, realising that she must not be blamed for the west’s financial destruction by announcing a gold standard for the yen in advance of it. It would be a nuclear equivalent in a financial war, only an action to be taken as a last resort.

Developments in Russia have changed that. It is clear to the Russians, and most likely the Chinese, that credit inflation is now pushing the dollar into a currency crisis in the next year or two. Preparations to protect the rouble and the yuan from the final collapse of the dollar, long taught in Marxist universities as inevitable, must assume a new urgency. It would be logical to start with a new trade settlement currency as a testbed for national currencies in Asia, and for it to be set up in such a way that it would permit member states to adopt gold standards for their own currencies as well.

Possession of bullion is key

The move away from western fiat currencies to gold backed Asian currencies requires significant gold bullion ownership at the least. The only members, associates, and dialog partners of the Shanghai Cooperation Organisation and the EAEU whose central banks have not increased their gold reserves since the Lehman failure when the credit expansion of dollars began in earnest, are minor states. Since then, between them they have added 4,645 tonnes to their reserves, while all the other central banks account for only 781 tonnes of additional gold reserves.

But central bank reserves are only part of the story, with nations running other, often secret national bullion accounts not included in reserves. The appendix to this article shows why and how China almost certainly accumulated an undeclared quantity of bullion, likely to be in the region of 25,000 tonnes by 2002 and probably more since.

Since 2002, when the Shanghai Gold Exchange opened and China’s citizens were permitted for the first time to own gold, gold delivered into public hands has totalled a further amount of over 20,000 tonnes. While the bulk of this is jewellery and some has been returned to the SGE as scrap for re-refining, it is clear that the authorities have encouraged Chinese citizens to retain gold for themselves, which traditionally has been real money in China.

According to Simon Hunt of Simon Hunt Strategic Services, as well as declared reserves of 2,301 tonnes Russia also holds gold bullion in its Gosfund (the State Fund of Russia) bringing its holdings up to 12,000 tonnes. This is significantly greater than the 8,133 tonnes declared by the US Treasury, over which there are widespread doubts concerning the veracity of its true quantity.

Obviously, the Asian partnership has a very different view of gold from the American hegemon. Furthermore, in recent months evidence has confirmed what gold bugs have claimed all along, that the Bank for International Settlements and major bullion operators such as JPMorgan Chase have indulged in a price suppression scheme to discourage gold ownership and to divert bullion demand into synthetic unallocated accounts.

The secrecy that surrounds reporting of gold reserves to the IMF raises further suspicions over the true position. Furthermore, there are leases and swaps between central banks, the BIS, and bullion dealers that lead to double counting and bullion recorded as being in possession of governments and their central banks but being held by other parties.

As long ago as 2002 when the gold price was about $300 per ounce, Frank Veneroso, who as a noted analyst spent considerable time and effort identifying central bank swaps and leases, concluded that anything between 10,000 and 15,000 tonnes of government and central bank gold reserves were out on lease or swapped — that is up to almost half the total official global gold reserves at that time. His entire speech is available on the Gold Antitrust Action Committee website, but this is the introduction to his reasoning:[i]

“Let’s begin with an explanation of gold banking and gold derivatives.

“It is a simple, simple idea. Central banks have bars of gold in a vault. It’s their own vault, it’s the Bank of England’s vault, it’s the New York Fed’s vault. It costs them money for insurance – it costs them money for storage— and gold doesn’t pay any interest. They earn interest on their bills of sovereigns, like US Treasury Bills. They would like to have a return as well on their barren gold, so they take the bars out of the vault and they lend them to a bullion bank. Now the bullion bank owes the central bank gold—physical gold—and pays interest on this loan of perhaps 1%. What do these bullion bankers do with this gold? Does it sit in their vault and cost them storage and insurance? No, they are not going to pay 1% for a gold loan from a central bank and then have a negative spread of 2% because of additional insurance and storage costs on their physical gold. They are intermediaries—they are in the business of making money on financial intermediation. So they take the physical gold and they sell it spot and get cash for it. They put that cash on deposit or purchase a Treasury Bill. Now they have a financial asset—not a real asset—on the asset side of their balance sheet that pays them interest—6% against that 1% interest cost on the gold loan to the central bank. What happened to that physical gold? Well, that physical gold was Central Bank bars, and it went to a refinery and that refinery refined it, upgraded it, and poured it into different kinds of bars like kilo bars that go to jewellery factories who then make jewellery out of it. That jewellery gets sold to individuals. That’s where those physical bars have wound up—adorning the women of the world…

“We have gotten, albeit crude, estimates of gold borrowings from the official sector from probably more than 1/3 of all the bullion banks. We went to bullion dealers, and we asked, “Are these guys major bullion bankers, medium bullion bankers, or small-scale bullion bankers?” We classified them accordingly and from that we have extrapolated a total amount of gold lending from our sample. That exercise has pointed to exactly the same conclusion as all of our other evidence and inference—i.e., something like 10,000 to 15,000 tonnes of borrowed gold.”

Veneroso’s findings were stunning. But two decades later, we have no idea of the current position. The market has changed substantially since 2002, and today it is thought that swaps and leases are often by book entry, rather than physical delivery of bullion into markets. But the implications are clear: if Russia or China cared to declare their true position and made a move towards backing their currencies with gold or linking them to gold credibly, it would be catastrophic for the dollar and western fiat currencies generally. It would amount to a massive bear squeeze on the west’s longstanding gold versus fiat policy. And remember, gold is money, and the rest is credit, as John Pierpont Morgan said in 1912 in evidence to Congress. He was not stating his opinion, but a legal fact.

In a financial crisis, the accumulated manipulation of bullion markets since the 1970s is at significant risk of becoming unwound. The imbalance in bullion holdings between the Russian Chinese camp and the west would generate the equivalent of a financial nuclear event. This is why it is so important to understand that instead of being a longstop insurance policy against the Marxist prediction of capitalism’s ultimate failure, it appears that the combination of planning for a new trade currency for Asian nations centred on members of the EAEU, coinciding with the introduction of a new Moscow-based bullion standard, is now pre-empting financial developments in the west. That being the case, a financial nuclear bomb is close to being triggered.


China’s gold policy

China actually took its first deliberate step towards eventual domination of the gold market as long ago as June 1983, when regulations on the control of gold and silver were passed by the State Council. The following Articles extracted from the English translation set out the objectives very clearly:

Article 1. These Regulations are formulated to strengthen control over gold and silver, to guarantee the State’s gold and silver requirements for its economic development and to outlaw gold and silver smuggling and speculation and profiteering activities.

Article 3. The State shall pursue a policy of unified control, monopoly purchase and distribution of gold and silver. The total income and expenditure of gold and silver of State organs, the armed forces, organizations, schools, State enterprises, institutions, and collective urban and rural economic organizations (hereinafter referred to as domestic units) shall be incorporated into the State plan for the receipt and expenditure of gold and silver.

Article 4. The People’s Bank of China shall be the State organ responsible for the control of gold and silver in the People’s Republic of China.

Article 5. All gold and silver held by domestic units, with the exception of raw materials, equipment, household utensils and mementos which the People’s Bank of China has permitted to be kept, must be sold to the People’s Bank of China. No gold and silver may be personally disposed of or kept without authorization.

Article 6. All gold and silver legally gained by individuals shall come under the protection of the State.

Article 8. All gold and silver purchases shall be transacted through the People’s Bank of China. No unit or individual shall purchase gold and silver unless authorised or entrusted to do so by the People’s Bank of China.

Article 12. All gold and silver sold by individuals must be sold to the People’s Bank of China.

Article 25. No restriction shall be imposed on the amount of gold and silver brought into the People’s Republic of China, but declaration and registration must be made to the Customs authorities of the People’s Republic of China upon entry.

Article 26. Inspection and clearance by the People’s Republic of China Customs of gold and silver taken or retaken abroad shall be made in accordance with the amount shown on the certificate issued by the People’s Bank of China or the original declaration and registration form made on entry. All gold and silver without a covering certificate or in excess of the amount declared and registered upon entry shall not be allowed to be taken out of the country.

These articles make it clear that only the People’s Bank was authorised to acquire or sell gold on behalf of the state, without limitation, and that citizens owning or buying gold were not permitted to do so and must sell any gold in their possession to the People’s Bank.

Additionally, China has deliberately developed her gold mine production regardless of cost, becoming the largest producer by far in the world.[ii] State-owned refineries process this gold along with doré imported from elsewhere. Virtually none of this gold leaves China, so that the gold owned today between the state and individuals continues to accumulate.

The regulations quoted above formalised the State’s monopoly over all gold and silver which is exercised through the Peoples Bank, and they allow the free importation of gold and silver but keep exports under very tight control. The intent behind the regulations is not to establish or permit the free trade of gold and silver, but to control these commodities in the interest of the state.

This being the case, the growth of Chinese gold imports recorded as deliveries to the public since 2002, when the Shanghai Gold Exchange was established and the public then permitted to buy gold, is only the more recent evidence of a deliberate act of policy embarked upon thirty-nine years ago. China had been accumulating gold for nineteen years before she allowed her own nationals to buy when private ownership was finally permitted. Furthermore, the bullion was freely available, because in seventeen of those years, gold was in a severe bear market fuelled by a combination of supply from central bank disposals, leasing, and increasing mine production, all of which I estimate totalled about 59,000 tonnes. The two largest buyers for all this gold for much of the time were private buyers in the Middle East and China’s government, with additional demand identified from India and Turkey. The breakdown from these sources and the likely demand are identified in the table below:

In another context, the cost of China’s 25,000 tonnes of gold equates to roughly 10% of her exports over the period, and the eighties and early nineties in particular also saw huge capital inflows when multinational corporations were building factories in China. However, the figure for China’s gold accumulation is at best informed speculation. But given the determination of the state to acquire gold expressed in the 1983 regulations and by its subsequent actions, it is clear China had deliberately accumulated a significant undeclared stockpile by 2002.

So far, China’s long-term plans for the acquisition of gold appear to have achieved some important objectives. To date, additional deliveries to the public through the SGE now total over 20,000 tonnes.

China’s motives

China’s motives for taking control of the gold bullion market have almost certainly evolved. The regulations of 1983 make sense as part of a forward-looking plan to ensure that some of the benefits of industrialisation would be accumulated as a risk-free national asset. This reasoning is similar to that of the Arab nations capitalising on the oil-price bonanza only ten years earlier, which led them to accumulate their hoard, mainly held in private as opposed to government hands, for the benefit of future generations. However, as time passed the world has changed substantially both economically and politically.

2002 was a significant year for China, when geopolitical considerations entered the picture. Not only did the People’s Bank establish the Shanghai Gold Exchange to facilitate deliveries to private investors, but this was the year the Shanghai Cooperation Organisation formally adopted its charter. This merger of security and economic interests with Russia has bound Russia and China together with a number of resource-rich Asian states into an economic bloc. When India, Iran, Mongolia, Afghanistan, and Pakistan join (as they now have or are already committed to do), the SCO will cover more than half the world’s population. And inevitably the SCO’s members are looking for an alternative trade settlement system to using the US dollar.

At some stage China with her SCO partner, Russia, might force the price of gold higher as part of their currency strategy. You can argue this from an economic point of view on the basis that possession of properly priced gold will give her a financial dominance over global trade at a time when we are trashing our fiat currencies, or more simply that there’s no point in owning an asset and suppressing its value for ever. From 2002 there evolved a geopolitical argument: both China and Russia having initially wanted to embrace American and Western European capitalism no longer sought to do so, seeing us as soft enemies instead. The Chinese public were then encouraged, even by public service advertising, to buy gold, helping to denude the west of her remaining bullion stocks and to provide market liquidity in China.

What is truly amazing is that the western economic and political establishment have dismissed the importance of gold and ignored all the warning signals. They do not seem to realise the power they have given China and Russia to create financial chaos as a consequence of gold price suppression. If they do so, which seems to be only a matter of time, then London’s fractional reserve system of unallocated gold accounts would simply collapse, leaving Shanghai as the only major physical market.

This is probably the final link in China’s long-standing gold strategy, and through it a planned domination of the global economy in partnership with Russia and the other SCO nations. But as noted above, recent events have brought this outcome forward.

[i] See https://www.gata.org/node/4249

[ii] Following covid, China’s production has declined from over 400 tonnes annually to closer to 300 tonnes.

Source: GSI Exchange

Biden and the U.S.-Israel-GCC axis: It’s not the oil, it’s the money

The New Dark Age

Monday, 1 August 2022 — Struggle – La Lucha

U.S. oil giant Chevron plunders natural gas from the stolen waters off Palestine

Joe Biden didn’t go to Arabia in July to beg for oil. That’s not the nature of the U.S.-Saudi relationship.

He didn’t go to Palestine to promote peace. The U.S.-Israeli relationship is based on endless war. And war is what Biden’s trip was about.

View original post 2,126 more words

Forces Of Nature Prevail (in real time) #2

Electricity has been restored where I am located. However, the ISP is still down and therefore have no WiFi connection. Many roads and secondary highways are still blocked off, due to trees/large branches/downed telephone polls/etc..

Even still now, my mobile carrier is not functioning properly. Service dodgy – in and out. I am on a coastal town which seem to have gotten the worse of it (in greater Boston area)…

Blogs I read on the regular, due to this limited internet connectivity, have taken a long time loading, when they load at all.

Will be a quiet night…spending time re-reading a book from 20 years prior: “House of Bush, House of Saud”…it’s a deep investigation into the ties between these two families, furthermore, into the business transactions conducted between the two, if I recall correctly going back to Prescott Bush, the grandfather of POTUS #43.

Everyone have a great night!🙋⚡⚡⚔️🙂

Petrodollar System

Source: https://seancover.com/2021/08/20/the-petrodollar-system/

Many of us are familiar with the idea that the dollar is the global reserve currency. This means that when other countries conduct trade, goods are often priced and paid in US dollars, even when the US is not involved in the transaction.

This gives the US tremendous power both globally and at home. Internationally, having the global reserve currency gives us immense policy influence—for example, financial sanctions. When we impose sanctions on Iran, we can basically cut them off from the global banking system entirely by cutting off their ability to use the dollar and the SWIFT system in international trade. By essentially being able to ban them from using the dollar, they are cut off from the global economy, which is overwhelmingly priced in dollars.

But why is the dollar the global reserve currency? Well – one huge reason is because of oil. Oil is priced globally in dollars. If Russia wants to buy oil from Saudi Arabia, they do it in dollars. Why though?

In the mid-1970s, the US agreed to provide military protection to Saudi Arabia in exchange for the global pricing of oil in dollars. This is the backbone for the dollar’s international strength and provides a global demand for dollars that no other country or region can compete with.

Understanding this is where things start to get complicated and morally grey. In exchange for the power we receive in return – oil priced in dollars globally – we are protecting the regime of a country with longstanding problems and human rights abuses (https://www.hrw.org/world-report/2021/country-chapters/saudi-arabia#). Furthermore, we are also supporting the global oil trade.

In a way, the US is reliant on oil. We need other countries to keep demanding oil because, without that, $USD would not be as needed globally, and we would lose significant international power.

It is almost hypocritical for our leaders to talk about green energy in the US when not only are we protecting the Saudi oil trade, but we need it to continue, to enforce the global dollar hegemony that has been present since the end of WWII. Hypocritical isn’t really the right word though, since most politicians don’t understand the dynamic at play here any more than the average person does.

Can we just stop protecting Saudi oil? It’s not so simple.

The global soft power we would lose is considerable. Sanctions against Iran don’t do nearly as much if they can just buy whatever they want in Russian rubles instead of dollars.

And it’s not just international either. Global demand for dollars sucks USD out of the country, which is good since we print a ton of new dollars. If global demand for USD falls, yet we keep increasing the money supply, those dollars will stay in the country, and price inflation would likely rise. If you want more deficit spending, more social programs, more stimulus, etc., you need global demand for the dollar to stay high. This is why the US can create much more new money than, for example, Nicaragua can.

To summarize – it’s complicated. We’re protecting a corrupt Saudi oil regime and we’re protecting the global use of oil itself. We need countries to keep buying oil priced in dollars to maintain the dollar’s dominance, even though it’s at odds with the green future that we want. And if we stop that protection, it causes a ton of other problems for the US.

While the dollar may not be ‘backed’ by anything, the backbone of its strength is oil.

If you have time, check out this piece by Lyn Alden https://www.lynalden.com/fraying-petrodollar-system/. It’s like a 45-minute read, so you might want to break it into chunks.

Iran Opens Major Energy Port on Persian Gulf – Posted by INTERNATIONALIST 360° August 2, 2021

Source: https://syria360.wordpress.com/2021/08/02/iran-opens-major-energy-port-on-persian-gulf/

TEHRAN (FNA)- Iran’s Oil Ministry brought online a major port on the coasts of the Persian Gulf to expedite exports of petroleum products from the South Pars giant energy hub.

The Siraf Exports and Service Port was inaugurated upon an order by Iranian President Hassan Rouhani.

The port, located in the southwestern province of Bushehr, has two wharfs which will be dedicated to exports of liquefied petroleum gas (LPG) and sulfur. The products will be directly supplied from nearby refineries that run on natural gas pumped from the South Pars, the world’s largest gas reserve which is shared between Iran and Qatar in the Persian Gulf.

Pipelines linking five South Pars refineries to Siraf would allow exports of 5,000 cubic meters per hour of cold LPG from the port which is one of the deepest in the region.

Construction of the port began in 2014 by Khatam Headquarters, a major engineering energy company.

More than $350 million has been spent on the port, and the project will create 200 permanent jobs in the region.

As the port came on line, the end of development works at Phase 14 of South Pars with the rollout of few remaining installations was also announced.

Iran has spent $2.4 billion to fully develop Phase 14 over the past 11 years. That means that the country has built out all 28 phases of the giant gas field except for one where works stalled in 2018 because of pressure on foreign contractors.

In relevant remarks on Sunday, Iranian Oil Minister Bijan Zangeneh said that production from Phase 11, which is now being developed by a domestic contractor, will begin before March 2022.

Holocaust Warriors Created Holy Warriors – by Sajjad Shaukat (written in 2017)


By Sajjad Shaukat

Source: https://bit.ly/3f4YE4w

Like other religions, Islam is a religion of peace and does not permit acts of terrorism such as bomb blasts suicide attacks etc. But, the Holocaust warriors and the typical Jews who created holy warriors are misguiding the international community by equating the ideology of Islam with terrorism. Control of these Jews on the mainstream media houses of the world is so strong that terms such as Islamic militants, Jihadist groups and holy warriors (Mujahideen) have become popular. While reporting regarding global and regional events of terrorism, they do not use the terms like Hindu militants and Jewish terrorism or Christian militants.

Everyone knows that Al-Qaeda and Afghan Taliban were created by the American CIA to fight against the former Soviet Union in Afghanistan.

In this respect, former British Foreign secretary, Robin Cook stated, “Throughout the 1980s, he [Bin Laden] was armed by the CIA and funded by the Saudis to wage jihad against the Russian occupation of Afghanistan.”

The then US National Security Advisor Zbigniew Brzezinski met Al-Qaeda leader Osama Bin Laden and said about the militants (Mujahideen), “We know of their deep belief in God, and we are confident their struggle will succeed…because, you are fighting against the infidel Russians.”

However, after obtaining the political and economic interests of the US-led Israel, Washington had left Afghanistan in particular and Pakistan in general to face the fallout of a prolonged conflict—terrorism and instability. These Mujahideen who pulled the Russians out of Afghanistan, later become the Taliban, Al-Qaeda (New version) and the Muslim Brotherhood, Islamic State group (Daesh, ISIS, ISIL). They got the label of terrorists.

Notably, massacre of Jews through various tactics of torture in the concentration camps, erected by Hitler before and during the World War 11 is still shocking and condemnable. It was a big tragedy, popularly known as the Holocaust, conducted by the forces of state terrorism. But, before and in the aftermath of the 9/11 tragedy, the Zionist-Israeli-led America has been taking unjustified revenge of the Holocaust from the Muslims in particular and the Christians in general, including persons of some other religious communities, who were not responsible for the Holocaust. These Holocaust warriors have been trying to convert the entire world into holocaust, as terror-related attacks have shown in various Islamic countries, including America, Europe and other Western countries.

Zionist-controlled American leading think-tanks and media have propagated that “genocide of 5 million Jews was carried out at the extermination camps, using tools of mass murder, such as gas chambers of Germany, Poland, Austria and Alsace”, while some Jewish-influenced Western scholars have estimated the genocide of the 7.8 million Jews.

On the other side, impartial writers, researchers and authors have opined, “Following the rise of Hitler there were no more than 4 million Jews, living in areas occupied by the Third Reich at the height of its power. Yet on June 30, 1965, the West German government announced that some 3,375,000 Jewish holocaust “survivors” had applied for reparations money. The International Red Cross had already reported in 1946 that of registered Jewish camp inmates no more than 300,000 could have died, and their audit to December 31, 1984 records a total 282,077 registered deaths of all internees in all German Concentration Camps from all causes.”

Regarding the present holocaust, it had already started when the US emerged as the sole superpower in the unipolar world after the disintegration of the former Russia. American former President Bush, (The Senior) replaced the old bipolar order with the New World Order, with the US acting as a kind of global policeman to protect the political and economic interests of Israel and the American Jews who are owners of many big cartels—multinational corporations, arms factories, oil companies, banks etc., including print and electronic media of the US in particular and the world in general. By dominating American internal policies, Zionist Jews mould country’s foreign policy for their own interests. And, by changing America into corporate industry, they have converted the world into corporate industry.

In the unipolar world, the United Nations became an instrument of the US policy to establish American hegemony in the world. In order to obtain the hidden agenda of Jews, the US imposed its sudden terms of globalization such as free markets, privatization and de-nationalization etc. on the ill-prepared developing countries and the Muslim states which left behind shattered nations and a global financial crisis, increased poverty in most of these countries, which resulted into deaths of many persons due to diseases and lack of medical treatment. It further widened the gap between the poor and the rich countries or G-7 countries. The corporations and international financial institutions like IMF and World Bank which are indirectly controlled by the Jews have continued to drive the project of globalization through the sole superpower. Besides, America’s child-killing sanctions against Iraq and Iran; late action to curb ethnic cleansing in Kosovo—genocide of the Bosnian Muslims annoyed the Muslims all over the world.

After the collapse of the Soviet Union, American former President Bush (The Senior) in connivance with his Zionist-advisers and neoconservatives took the Islamic fundamentalism as a great threat. Since then, sometimes, Al-Qaeda has continuously been used by the US and some Western countries as a scapegoat to malign Pakistan, as the latter is the only nuclear country in the Muslim World. Sometimes, they accused Iran of harbouring terrorism, and to propagate against Tehran’s peaceful nuclear progragmme—sometimes to achieve the goals of external policy and sometimes to pacify their public, including the opposition in relation to the prolonged war in Afghanistan and the anti-Muslim ‘different war’. In all cases, the purpose behind has been to safeguard the interests Israel and Zionists who consider themselves God’s chosen people to rule over the world.

As regards the double game, on November 13, 2009, a Reuters report quoting Labeviere’s book “Corridors of Terror” (Released in November 2003) points to negotiations between Bin Laden and CIA, which took place two months prior to the September 11, 2001 attacks-at the American Hospital in Dubai, United Arab Emirates, when Bin Laden was under a kidney dialysis treatment.

Meanwhile, while making Osama and Al-Qaeda as scapegoats, a number of fake video messages were telecast on various TV channels and websites by some Zionist Jews to obtain Israel’s anti-Muslim goals. For example, during the November 2004 elections in the US, a fake video tape helped the ex-president George W. Bush to get lead over John Kerry.

It is well-known that in a tape released on December 27, 2001, the authenticity of which is not in question, Osama denied any involvement in the September 11 tragedy. However, later, two video tapes appeared to validate his guilt in relation to 9/11, because the main aims of the Bush administration were to provoke American public against the Muslims and to justify the fake global war on terror—the occupation of Afghanistan and Iraq to possess energy resources of Central Asia and Iraq, including proxy wars in other Middle Eastern countries. Besides other actions of Bush era such as America’s state-sponsored terrorism in the volatile Islamic countries, persecution of Muslims through torture, detentions and arrests, CIA and FBI-operated facilities, promotion of sectarian violence and divide between Sunnis and Shias in the Islamic World—radicalizing the Western Christians against the Muslims.

It was because of the dual strategy of Bush through phony war on terror, and on the other side, response of Al-Qaeda militants by clandestine terror attacks, as shown through a number of the past suicidal missions such as on Indonesian resort island of Bali, Saudi Arabia, Spain etc., and a series of bomb attacks on London’s transport network, including those ones in other Afro-Asian countries have clearly pointed out that Al-Qaeda was organized on world level. But, the outfit lost control on its affiliated militant groups. Al-Qaeda’s decimated old guard may no longer be able to mount elaborately detailed plots, executed by other trained terrorists of various new groups which claim their links with Al-Qaeda, but, are not under its direct command. For example, in Somalia—splitting away of a hardliner-faction Al-Shabaab is an offshoot of the Islamic Courts Union, though the US defined Al-Shabaab as Al-Qaida allies.

In this connection, in March 2004, the former CIA Director, George Tenet said, “Al-Qaeda has become a loose collection of regional networks working autonomously-[they] pick their own targets, they plan their own attacks…in this new phase of franchise terrorism, Al-Qaeda has been described as an idea rather than an organization.”

It is mentionable that some Holocaust deniers claim, “The mass extermination of the Jews by the Nazis never happened…the Nazi command had a policy of deporting Jews, not exterminating them”, while some remark that the number of Jewish losses has been greatly exaggerated…that the Holocaust was not systematic nor a result of an official policy…only 600,000 Jews were killed rather than six million. All Jews were not killed through gas chambers, but also due to hunger, diseases and depression.”

On the one hand, the Jews have made the Holocaust the greatest device of gaining sympathy, while, on the other, they have used it for wars, anti-Muslim policies, expansion and foreign-aid, and to fulfill the Zionist ambition of greater Israel. With the support of American-Zionist Jews who manipulate the Holocaust, Israel has also become the sixth strongest military power of the world owing to the US assistance.

Once Henry Kissinger stated “legitimacy is not natural or automatic, but created.” Under the cover of the 9/11 tragedy, the US President George W. Bush who was in collaboration with the neo-conservatives and the Zionist Jews, orchestrated the drama of global war on terror to obtain the illegitimate interests of Israel by targeting the Islamic countries and persecution of the Muslims.

Bush who used the words, “crusade against the evil-doers” adding to the perception that the ongoing ‘different war’ against terrorism is actually a war against the Muslim countries also warned the world to choose sides by saying, “either you are with us or with terrorists.” It was due to employment of pressure-diplomacy on the weak states—Muslim countries like Pakistan, Indonesia, Libya etc., including almost all the Arab states joined Bush’s anti-terrorism war. By manipulating the 9/11 carnage, Bush also got the sympathies of almost all the major Western countries, including NATO states which also joined the fake global war on terror.

By justifying the unjustified war on terror, several Muslim countries were deliberately destabilized and converted into concentration camps to attain the political, economic and religious goals of the Jews and Israel. For the purpose, double game and false flag operations which still continue became the part of the American CIA, Israeli Mossad and Indian RAW.

In case of Iraq, many of the Iraqis including some members of the former Interim Governing Council were shocked at the violence in Fallujah. Even the US weekly, ‘Newsweek’ admitted in its publication of April 19/April 26, 2004 that the US forces “used very heavy hand in Fallujah where more than 400 people were killed. Four members of the [former] Governing Council resigned in a protest against America’s crackdown in Fallujah…according to doctors figure of the deaths was impossible to check and it is more than 400…an airstrike dropped a 500 pound bomb. Arab language TV claimed that the bomb killed more than a score of civilians at prayer.”

Like Afghanistan, American soldiers also massacred several wounded people and civilians in Iraq. In November, 2004, a number of world’s televised channels including those of America showed footage of a US marine who was shooting and killing an already captive and wounded Iraqi prisoner at close range in a mosque in Fallujah where civilians had taken shelter.

No one can deny the fact that these were the worst examples of the US-led state terrorism or use of abnormal force.

It is of particular attention that the US-led troops, assisted by CIA have carried out indiscriminate mass round-ups in catching up suspected Muslim men and women in Afghanistan and Iraq, including some Arab countries without evidence. Mossad has helped the CIA officials in arresting the Muslim men, having beard and ladies, wearing scarves. Besides Guantanamo Bay and Iraq’s Abu Ghraib prison, CIA torture cells were present in several Islamic countries and were also set up in ships where US secret agencies and military personnel employed various methods of torture on the militants and suspected persons like physical violence and even murder. American notorious private military firm Blackwater also eliminated countless Muslims in Iraq and Afghanistan.

When America implemented the suggested plan of Rand Corporation and sparked a civil war (Sectarian violence) between the Sunnis and Shias in wake of war on terror to promote the objectives of Israel in the Muslim World, the horrible scenes of deaths were witnessed in Pakistan and especially in Iraq.
In March, 2013, an investigative report by the British Guardian/BBC disclosed that acting under the direction of the top US officials; the CIA utilized a global network of secret prisons, foreign intelligence agents and torture centers in various Islamic countries including Belgium, Thailand etc. where torture was conducted directly by American intelligence operatives.

The report also mentioned atrocities of the US-backed entities, carried out in Bagram Airbase (Afghanistan), Guantanamo and Iraq—unleashed a deadly sectarian militia which terrorized the Sunni community and germinated a civil war between Sunnis and Shias, and claimed tens of thousands of lives.

It revealed, “At the height of that sectarian conflict, 3,000 bodies a month were strewn on the streets of Iraq. Rounding up Sunnis in American pickup trucks, the captives were thrown into secret prisons established in libraries, airports, and ministries. Anti-occupation politicians, human rights activists, and journalists were murdered. The purpose was also to terrorize ordinary Iraqis who opposed the US occupation.”

In this regard, the report focuses on the role of retired Colonel James Steele who worked with the Defense Secretary Donald Rumsfeld and Gen. David Petraeus who also served as Obama’s CIA director. Steele sent regular memos to Donald Rumsfeld who forwarded them to Vice-President Dick Cheney and President George Bush, while, hundreds of thousands of Iraqis died and millions were displaced as a result of the chaos and brutal practices.

As exact details of the death toll in Afghanistan and Iraq are not available due to the Jewish controlled media and their dominated concerned strategic institutes, some independent organizations have published their reports on the basis of randomly selected interviews of the household persons and the military officials. Some reports suggest that more than 3 million people including civilians died in Afghanistan and Iraq.

Following his predecessor, President Barack Obama had also continued the ruthless killings of the Muslims to complete the unfinished agenda of the Zionist Jews and Israel. Apart from air strikes on funerals, marriage-ceremonies and mosques in Afghanistan, and extrajudicial killings of the innocent people through illegal CIA-operated drone attacks in Afghanistan, Somalia, Yemen etc. in general and Pakistan in particular, he converted Egypt, Libya, Syria, Yemen etc. into concentration camps. As part of the US double game, CIA which created Al-Qaeda and then ISIL, including Al-Qaeda’s Al-Nusra Front and Syrian rebel groups in fighting against the Syrian President Bashar al-Assad and Iraqi regime is responsible for the mass murder of more than 7 million Muslims and Christians who were killed in civil wars—ground and aerial strikes of the US-led Western countries, including various terrorism-related assaults like suicide attacks and bomb blasts, conducted by Al-Qaeda and ISIS. Besides, during the phony global war on terror, in these countries and Afghanistan and Iraq, especially in Syria, millions of Muslims became homeless. The plight of refugees—countless deaths, particularly of children owing to lack of medical treatment and starvation has displayed the holocaust on larger scale.

It is worth-mentioning that through the war against terrorism, President Bush and Obama provided a golden chance to Israel and India to accelerate the systematic genocide of the Palestinians and Kashmiris in the occupied territories of Palestine and Kashmir. Their forces have been employing military terrorism such as curfews, crackdowns, sieges, massacre and targeted killings to maintain alien rule on these territories.

In the recent years, the US-backed military regime in Burma (present Myanmar) has broken all the record of religious cleansing by encouraging Rakhine extremist Buddhists who butchered thousands of the Burmese Muslims belonging to the Rohingya Muslim through various brutal methods of torture. Eye witnesses disclosed that Buddhist extremists who are in majority in the country, torched several mosques, shops and houses of Muslims, while Burmese military and police have been found involved in genocide, targeted killings, disappearances and rape of Muslim women. Indian RAW which is in collaboration with the CIA and Mossad was behind the genocide of the Muslims.

According to reports, nearly one and half million Rohingya Muslims have been murdered since June 28, 2012, while more than 20,0000 are missing.

It is noteworthy that since September 2015, Russian-led coalition of Iran, Iraq, the Syrian army-the National Defense Forces (NDF) and Lebanon-based Hezbollah has broken the backbone of the CIA-Mossad-assisted ISIS terrorists, Al-Qaeda’s Al-Nusra Front and the rebel groups. Russian-supported Assad’s forces and Iraqi troops have retaken several territories from the control of the rebels and the ISIS terrorists who are on flee in Syria and Iraq. Recently, Iraqi forces have recaptured the city of Mosul by defeating the ISIL militants. Very soon, through the skilful diplomacy, Russian President Vladimir Putin will liberate entire Iraq and Syria from the control of the US and Israeli supported non-state actors. Moscow which is destroying the pillars of the New World Order has also exposed the sinister designs of Washington and Tel Aviv against the Muslims and the international community.

In this backdrop, there is an interrelationship of the terror attacks in the US, Europe, Turkey, Saudi Arabia, Afghanistan, Pakistan, Yemen, Philippines etc., and elsewhere in the world, which were false flag terror assaults, conducted by Mossad in connivance with the agents of Indian RAW and those of the vulnerable CIA operatives.

Through all these false flag terror operations, the US and Israel wanted to obtain their covert aims against Russia and the Muslims. Mossad had also provided the US President Donald Trump with an opportunity to manipulate various terror assaults of Europe and America to win the US presidential election and to reunite America and Europe, as a rift was created between America and its Western allies, especially Europe on a number of issues. And, pro-Israeli President Donald Trump have left no stone unturned in implementing anti-Muslim policies, while speaking openly against the Muslims and Syrian refugees.

Nevertheless, Israeli Mossad which was in collaboration with the vulnerable CIA operatives, particularly, organized terror assaults in the US and Europe. As part of the double game, these terror attacks were conducted by these secret agencies, especially Mossad with the assistance of the ISIS terrorists who used the home-grown terrorists of these countries. Main aims of the Mossad were to reunite Europe and America and keep NATO united, and to divert the attention of their public from internal crises and a prolonged war in Afghanistan. Other purposes of Tel Aviv were to muster the support of America’s Western allies against Russia in relation to the Syrian war and to instigate the Western Christians, particularly those of Europe against the Muslims. Exaggeration of the threat of Islamophia and persecution of the Muslims in America and these countries might be cited as instance.

Another regrettable point is that irresponsible attitude of Indian, Israeli and some Western politicians has introduced dangerous socio-religious dimension in their societies by equating the “war on terror” with “war on Islam” and acts of Al-Qaeda and ISIS with all the Muslims. Their media have also been contributing to heighten the currents of world politics on cultural and religious lines with the negative projection of Islam.

Although overtly President Trump has softened his external policy regarding Muslims and Islamic countries to some extent, yet covertly, he is acting upon the conspiracy of Mossad and RAW, which is, intentionally or unintentionally, being followed by America’s Western partners against the Muslims. If not checked in time by the peace-loving Muslims, Christians, Hindus, Jews and Buddhists, these policies of the President Donald Trump who is particularly completing the extremist agenda of Israel are likely to result into more recruitment in the militant outfits, especially in the ISIS group, inspiring the extremist Muslims for more terrorism-related attacks. Israel, who will never accept the two-state solution of the Israeli-Palestinian issue, will prefer to seek the final revenge by bringing about a major war between the Muslim and the Christian worlds or to cause a nuclear war between Russia and the US-led some Western countries.

Nonetheless, the Holocaust warriors who created holy warriors to fight against the former Soviet Union in Afghanistan are likely to create more holy warriors, while dividing the nations on religious lines which would convert the whole world into holocaust.

The ‘Great Reset’ for dummies…

This is a strikingly excellent analysis

The Wall Will Fall

This article was originally posted at https://tessa.substack.com

By Tessa Lena

What is “the Great Reset”?

The Great Reset is a massively funded, desperately ambitious, internationally coordinated project led by some of the biggest multinational corporations and financial players on the planet and carried out by cooperating state bodies and NGOs. Its soul is a combination of early 20th century science fiction, idyllic Soviet posters, the obsessiveness of a deranged accountant with a gambling addiction—and an upgraded, digital version of “Manifest Destiny.”

The mathematical reason for the Great Reset is that thanks to technology, the planet has gotten small, and the infinite expansion economic model is bust—but obviously, the super wealthy want to continue staying super wealthy, and so they need a miracle, another bubble, plus a surgically precise system for managing what they perceive as “their limited resources.” Thus, they desperately want a bubble providing new growth out…

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