“Supreme Excellence” Pt. 5: The World’s Plan to Leave the Dollar Behind
In truth, the financial system which exists was set up by Anglo-American bankers, and for their benefit. As we have seen though, the world desperately wants to be free to conduct its political policies and trade settlements as it wants. Yet, it cannot do this while it’s held hostage by the U.S. dollar(USD), and the global military force that backs it. No successful alternative can be launched, unless it is done jointly by a large swathe of the world population at once. Thankfully, the world realized this, and is now dead set on rejecting the dollar in a collective effort.
A New Hope
In 2006, a series of very high-level meetings began among a group of nations, in New York City, eventually moving eastward, to Yekaterinburg, Russia in 2008. These meetings were held to development a ground-floor plan to create an alliance which could step forward to challenge the current “uni-polar world” model, where D.C. and London called the shots for everyone else.
This alliance, originally known as “BRIC”(Brazil, Russia, India, China) was forged in the hope that a new and better world system could be devised for the benefit of its members. In 2010, they officially invited South Africa to join their alliance, changing the name to “BRICS”. This alliance has grown larger, not only in its membership roster, but in political and financial influence as well.
The Real Source of Power
Although the BRICS understand quite well that the USD is backed by the world’s most powerful military, the key point to understand is that the real power behind the Anglo-American financial system is not a military one. The real power of the U.S. and Great Britain has always been a money power. Without the world reserve currency, they’d never have been able to amass such a military. Without the world reserve currency, the U.S. could never have doubled down on both a warfare and a welfare state, at the expense of the rest of the world. Without the world reserve currency, D.C.’s huge credit card would be cut off, and the printing of new currency would be greatly curtailed. Without the world reserve currency, Washington D.C. would have to resort primarily to taxes, as the manner in which it paid for things. In short, if D.C.’s reserve currency could be stripped, then other imbalances and injustices will take care of themselves. The real trick is in how exactly to accomplish this goal.
The Real Challenge
The great challenge that the world faces in replacing the USD for trade, isn’t in simply staring down Washington’s military. The challenge is: what will replace the USD? It’s not enough to know what the problem is, they have to have a viable solution which they can implement in its place.
After all, the USD has been the world reserve currency for decades, and as such, it’s the currency that’s most-owned by the world’s central banks. It makes up the core position of many countries’ spendable cash reserves. Therefore the BRICS must have an answer to the issue of not only what they will replace it with, but how will they do it.
I once heard Jim Willie say that the unique problem with replacing the USD in the world, is that it’s like a 1,000-storey building. Picture a building in a busy downtown metropolis, which is 1,000 floors tall. Over time, this building has grown dangerous to occupy, and the foundation has been compromised. It needs to be taken down, for sure, but great care must be taken in doing so, because tens of thousands of people are not only inside it, but tens of thousands more people are within the periphery of the building. In order to bring down the building with minimal casualties, many announcements and warnings have to be made, that the building is, in fact, going to be demolished. When it is demolished though, it must be done professionally, with greatest care. In short, the demolition must be controlled. Doing so will ensure that any potential harm to others is greatly diminished when the building finally does come down.
To accomplish all that, the building has to be evacuated, and then isolated, in order to be brought down more safely. That is exactly what’s happening right now.
Currency Swap Agreements
Can you imagine an 18 year old boy, laying down quietly, and taking milk from a baby’s bottle? I have a hard time imagining it, too. Yet, that description is what aptly fits, when I try to picture planet earth still taking the USD for payments. The world should’ve quit the dollar a long, long time ago, and yet, it’s all the world knows, right? It’s the lifeblood flowing through the system, and because of that, you can’t simply yank the bottle out, and make the world quit “cold-turkey”. You have to wean the nations of the world off the dollar, slowly. Here’s a big step in how that’s being done.
The major BRICS nations, particularly Russia and China, have all agreed to trade with each other using only those nations’ currencies in bilateral trade. What this means is that if China and India want to exchange goods, they’ll use the Chinese currency(the Renminbi, or Yuan for short), and the Indian currency(the Rupee) to settle those trades. Nowhere in the picture will the USD be used for exchanging goods, but only the currencies of the countries in question. Each BRICS nation has signed currency swap agreements with the rest for bilateral trade.
When you consider that the 5 BRICS countries have a combined population totaling almost 3 billion people(or 40% of all the people on earth), which have a cumulative GDP of about 20% of the globe, the magnitude of this starts to sink in. Nearly half the people on earth will soon be using their own peoples’ currencies to settle trade with, without using the world reserve currency anywhere in the picture. That’s an astounding thought.
This arrangement goes beyond the BRICS though, as many non-BRICS nations are joining these bi-lateral currency arrangements. Such as the recent agreement between Russia and Iran, in trading with one another. By the way, if you wondered about the real reason why D.C. hates Iran, look no further than announcements like this: Iran, like Iraq and Libya, has become a threat to the petro-dollar as well, in that it has stopped using USD for its oil and energy payments.
It goes well beyond simply bi-lateral trading arrangements though, as it appears China is positioning its currency, the Yuan, to be a key, preferred tool for trade settlement in the years to come. In fact, within the past 5 years, the Yuan has gone from being used in about 3% of the world’s trade settlement, to nearly 20%!
If you’ll remember, the petro-dollar arrangement only worked if oil-producing nations all used the USD for payments. That is quickly becoming history. Another phase in the BRICS plan has been to address, specifically, what other forms of payment the world will now take for oil and natural gas payments. More and more, energy-producing nations are boldly stepping forward to abandon the USD in payment for its oil and natural gas.
A few examples of this are Russia and China, who recently signed a “holy grail gas deal”, worth nearly half a trillion dollars, in which Russia will supply China with all the natural gas it needs for decades. In return, Russia will receive regular payments outside of USD. More specifically, they’ll be paid in Chinese Yuan, which will be convertible into Russian Rubles. More recently too, the world has learned that nearly 90% of Gazprom’s customers in Europe have already de-dollarized.
It is happening. The petro-dollar is rapidly being replaced. No one has to “go it alone” anymore, since two world powers, Russia and China, have dipped their toes in the pool, and have assured the rest of the world, “Come on in, the water’s fine”.
This trend will continue and accelerate.
BRICS Development Bank
For the last several centuries, banks from London and Wall Street have controlled much of the world, both politically and financially. Remember, the real power of the British and American empires, hasn’t been a military power, but rather a money power. London and Wall Street Banks turned the act of leveraging the debts of the nations into an artform. They honed this practice into a powerful weapon, by amassing enough capital to overrun rival governments, both on the field, and off it. This is the real reason why the United Kingdom, a political alliance the size of the State of Oregon, was able to invade roughly 90% of the world’s countries.
Which brings us to the next phase of the BRICS’ strategy: to create their own bank. Only within the last several years have the BRICS nations announced their intent in creating their own lending arm, the BRICS Development Bank. I don’t blame them for keeping it secret. They realize that this new Bank is striking at the root of their opponents’ power.
For years, if the governments of the world wanted a loan for something, and simply offering more bonds wasn’t going to cut it, they had few options. Their only choices were mainly either the IMF or the World Bank. Since both of those institutions are largely owned and controlled by Washington D.C. and London, many have really avoided them. Other unfortunate parties who have entered into agreements with the IMF however, have found their sovereignty and freedom severely compromised. A prime example of this, is Ukraine. Ukraine told the IMF they needed a multi-billion dollar loan to pay off their natural gas bill to Russian companies, and to stay solvent in the months ahead. Many in the Ukraine were shocked though, when the IMF told them that in order to receive this loan in the form they wanted, they were going to have to fight a territorial war in the Donbass breakaway regions. This is how Washington D.C. works: they use both the carrot and the stick, and sometimes they even use the carrot as the stick!
Remember, whoever controls someone’s debt, holds all the cards in that situation. Control the debt, and you control the man. Any real financial and monetary reform without banking reform is an exercise in futility. The BRICS know this very well, and have been keen to include this as part of their strategy.
This BRICS Bank setup is quite interesting, to say the least. First of all, it will have an initial capital threshold of $50 billion dollars, which is to be contributed, in equal shares of $10 billion, by each of the 5 BRICS members. Eventually, the amount of reserves will be bumped upward, to $100 billion(which at that point, will be unequally funded). Furthermore, if new member countries want to join in the formation and ownership of the BRICS Bank, they can do so by applying and contributing. Yet, the original 5 nations who’ve created it have put in a bylaw which states that their collective ownership of the bank can never drop below 55%. This ensures that Western countries can’t come in afterward and establish control over this new Bank, by buying out the BRICS’ members shares.
They also stipulated that each country cannot increase its ownership stake without the approval of every single other BRICS member. This will ensure that less dominent powers like Brazil or South Africa, will be able to maintain and assert their interests in how the Bank functions.
Lending will begin at the BRICS Bank in 2016, and folks, that’s not very far off, is it? In fact, the spectre of this new financial lending arm in the world has Washington D.C. and London quaking in their boots, too. This hilarious piece, written, of course, by someone in the Anglo-American nexus, attempts to explain why this new BRICS Bank venture will fail, and why the world will always need the Anglo-American Monetary Meth Labs to get by! Can’t you just see the beads of sweat running down that writer’s forehead, as he hopes(vainly), that if brow-beaten enough, the world will believe that it’s utterly lost without D.C. and London to guide it?
If a wife happens to find herself perennially cheated on, and even physically abused, she doesn’t have to fight her husband to gain her freedom, she just has to find the courage to leave him. Likewise, the world is finding the inner strength to demand respect, by asserting itself in a system which they, not Washington or London, will create. They are leaving their abusive spouse behind.
No one knows if this new “multi-polar world” system will be able to function, or whether the “powers that be” won’t try to find a way to torpedo it in its infancy. If the last 6 years are any indication however, it seems the world will find a way, not simply to survive, but to thrive.
All we know is that through currency swaps, trade agreements, vast gold reserves, and the boldness of conviction to seize their futures, the world is ensuring that a more fair, and equitable system of trade and lending will exist. The isolation of the condemned, 1,000 storey-building known as the U.S. dollar, is now in full-swing, only the demolition stage remains.
This financial war between East and West, between Washington/London and BRICS is coming to a head, but the world, it seems, holds most of the important cards now. The BRICS have given plenty of advance warning that this building, the U.S. dollar, is going to be demolished. Whether you decide to evacuate the USD from here on, shield brother, is entirely on you, and you alone will bear the results of the decisions you make right now.
So, what is “supreme excellence” in warfare?
Over 2,000 years ago, Sun Tzu said:
“To fight and conquer in all your battles is not supreme excellence; supreme excellence consists in breaking the enemy’s resistance without fighting.”
Twenty centuries later, I feel confident that the BRICS’ multi-pronged, battle strategy is a plan of action which even that master of warfare, himself, would’ve been proud of.
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