Category Archives: the yuan

Very Short Observations IV

The knowledge is intentionally withheld that the EU nations use dollars, not euros, in trade among themselves, as well as with other nations. It is amazing and true. So, the dollar is not only the petro-dollar, but the official currency of international trade. The most important world trade is in oil, and until now, it has been traded in dollars. Most international debt is also denominated in dollars. The dollar is used as the chief instrument of enforcing sanctions against nations who do not follow US policy. The dollar is the Thunder Bolt of Zeus that I mentioned in my earlier posts from 2015-16.

But the exceptionality of this currency which makes the US the exceptional nation may be coming to an end. China will be trading oil in the yuan, convertible to gold. Oil nations will be able to sell their oil for the yuan on the Shanghai Exchange, avoiding dollars. The yuan will be freely exchangeable for gold. Many oil nations will flock to the “Petro-Yuan”. This new development is of great geo-economic significance. Venezuela, for instance, would be able to sell its heavy crude from Lake Maracaibo for yuan. How the US will react to this challenge remains to be revealed. Will the US react aggressively to China?

A commodity that is necessary for all life on Earth is water. Mother Nature provides us water free of charge. Fortunate are those nations or people who have an abundance of it. Those nations who feel they are powerful enough are willing to go to war to get it. The countries of the Mediterranean basin that have an abundance of water are the new republics of the former Yugoslavia. Other countries are Turkey, Lebanon, and possibly Syria because of the two rivers that flow through North East Syria from Turkey: the Euphrates and the Tigris, which touches Syria as it leaves Turkey and enters Iraq.

Countries that are water poor: Libya and Israel. Libya was intentionally destroyed in 2011, killing and sodomizing its leader, Gaddafi, in order to plunder its resources, especially its oil. Gaddafi wanted a gold dinar for all of Africa. Israel, a water-poor yet highly advanced country, whose water needs are increasing daily, needs a source of free water. Presently, Israel imports about 50% of its fresh water from Turkey. If a confrontation develops between Israel and Turkey, in the future, Turkey could shut off its water exports to Israel. De-salination is an inadequate substitute; it is also very expensive.

And so Lebanon beckons. To get the waters of Lebanon, war is inevitable. Hezbollah, whether one likes it or not, is the guardian of Lebanese independence vis a vis Israel, so war is inevitable. Israel experienced Hezbollah in 2006 war. Hezbollah is no joke.

Saudi Arabia is not a country in the normal sense of the word, because it is owned by 50,000 to 100,000 royals who take most of its oil wealth for their own personal use. But the Saudis are now in trouble. They’re losing their war in Yemen. Oil revenues are down. A confrontation with Iran looms in the distance. Internal dissension exists. The situation in the Saudi Arabia is precarious. They have pushed themselves into a Zugzwang situation. An alliance with Israel and the dismissal of the Lebanese prime minister are possibly related. The official dogma: Hezbollah and Iran have become mortal enemies of Israel and the Saudis. Big war is inevitable for water, oil, and hegemony of the Middle East and the world. The US and NATO will side with the Saudis and Israel, unconditionally; most of the rest of the world will side with the Palestinians, Hezbollah, and Iran. Will this war turn nuclear? Possibly!

The Ukraine cannot be ignored; it is on the verge of collapse. The Ukraine’s internal and external policies are totally absurd. For example, certain nationalists want to break diplomatic relations with Russia. Also, they are buying expensive  anthracite hard coal from the US rather than cheaper and better quality coal from Russia or Donbass for its power plants; Ukrainians will be freezing this winter! Also they are trying to mpose the Ukrainian language on minorities such as Hungarians and Russians. Kiev will gamble war in order to save itself; it will not work.

Contrary to Main Stream Media propaganda, the US economy is not doing well. Both, debt and stocks are precariously high. The EU not much better; just ask the Greeks.

Truly, a very precarious time; very unique in history!

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Brief Observations

North Korea, I have said in my tweets, is a side show. The US is caught in Zugzwang. If it opts for war it will lose all its teeth and lower jaw. South Korea and Japan would be severely damaged or even destroyed. The US fighting North Korea is like a lion fighting the porcupine. If a porcupine quilt gets into the lions mouth, the lion will have a miserable fate. The US will huff and puff, but will back off. The nuclear option is off. However, tension could increase to war if the dollar position as reserve currency is threatened. China will start trading oil in yuan backed by gold. The US is upset and may sanction China. The chance of war with the Koreans will considerably increase?

The Ukraine situation is critical. The Ukraine is dying. Ukrainians are ready to revolt. Most of the Ukraine is Ethnically Russian. The Ukraine will rebel. The uprising will be massive. Donbass will help liberate the Ukraine. Poroshenko and company will be hunted like rats. The Ukraine will return to Russia. The US and EU will huff and puff but will be helpless.

Venezuela will not buckle. The opposition has no credibility. They are sold souls. External forces with the help of the opposition will try to overthrow Chavismo but they will fail. The barrios and armed forces will not allow Chavismo to fail. Venezuela is abandoning the dollar. It will set an example for the rest of Latin America.

Middle East Conundrum. A huge Islamic Alliance is forming: Hesbollah of Lebanon, Syria, Iraq, Iran, Turkey, Qatar, Yemen, and others. This alliance has thrown its weight behind Assad of Syria. External forces will try to assassinate Assad, but they most likely will not succeed. Panic is gripping Israel and Saudi Arabia. Assad is winning and that is anathema to Israel and the US. Big war is in store over water, strategic resources, and control of the area.

The biggest problems facing the world are the debt and the dollar. Debt is  becoming unbearable for most countries. Most debt is denominated in US dollars. This has given the US a power that has no parallel in world history. It is unique and flawed. This system is neo-slavery. By trapping the Third World in dollar debt, the US gets all the natural resources on a dollar plate for free. The enforcers of this arrangement are the International Monetary Fund and the World Bank, backed by the Pentagon.

But the world is waking up and questioning this arrangement. Nations are moving away from subservience to economic independence, and this is the Achilles Heel of this economic arrangement. As more nations abandon the dollar, a huge economic crisis of epic proportions is unfolding.  The system is entering Kaput stage which could lead to war. We will see.

The Turkish Blow Back?

There is a lot of nonsense being written lately about the unsuccessful Turkish coup. The claim has been made in the Western press that Erdogan staged the event, or that it was carried out by junior rank officers and was doomed to failure. It is all lies, sheer fabricated lies. These lies convey a sense of disappointment on the part of the West that the coup had failed. There is absolutely no rejoicing in the West that the coup has failed, and that the democratically elected President Erdogan of Turkey was able to crush the revolt. Strange, very strange indeed!

The coup was very well organized, but the assumption on which it was based was false. The premise was that the people would support the coup, but the opposite happened, the people supported the President when he called the people to go out into the streets and oppose it. The only people who supported the coup were the pro-American elites in the military and in the government. But this was not enough, because the people were against it. (The previous four coups from 1960 to 1997 were successful because the majority of people did not oppose the revolt, or did not care. How things change!)

Turkey has been a faithful ally of the US and Israel. Turkey supplies nearly half of Israel’s supply of fresh water. No country is viable without fresh water. In Syria, it was supporting the US and Israeli attempt to overthrow President Assad and partition Syria into smaller regions which would be controlled by Israel. The Kurds would be allowed a state carved out of Syria and Northern Iraq which would then attract Turkish Kurds to form a larger Kurdistan, and which would be very destabilizing to the existence of the Turkish State.

The shooting down of the Russian unarmed bomber over Syria ordered by, at the time, Turkish prime minister Davutoglu in 2015 changed everything. The US regarded this event positively because it increased the animosity between Russia and Turkey, especially at a time when the US is building the Wall of Enmity between the West and Russia stretching from the Baltic States, Ukraine, Poland, The Balkans, Turkey, Persian Gulf, Indian Ocean, Straits of Malacca, Philippines, Japan to South Korea. It would be an unbreakable wall that would hem in Russia, Iran, China, and North Korea.

But things never work out exactly as planned. The Russian plane shoot down changed the Russia-Turkish relations from mutual reciprocity to mutual animosity. For downing its plane, Russia responded with a massive economic reaction, affecting tourism, agricultural products, construction, pipelines, and nuclear energy. Turkey was stunned. No aid was coming from NATO under Article Five. The Turks were on their own. The Syrian War intensified as Russia had intervened, ISIS and other groups which the US supported were on the run. Refugee crises were created which did not benefit the European Union.

The Turkish Kurds were getting restless and violence inside the Turkey was increasing. Wars in Syria and Iraq were not benefiting the Turks. Being member of NATO means only one thing being subservient to the interests of the US. Erdogan chose independence for Turkey and from now on, Turkey would have an independent foreign policy, if that means leaving NATO, it will leave NATO. He dismissed his pro-US prime minister, Ahmet Davutoglu and replaced him by Binil Yildirim, an individual who has national Turkish interests at heart. Erdogan apologized to Russia for the downing of the plane and Putin reciprocated by lifting the Russian tourist ban and  ban on construction. The two leaders will meet in early August. What a change!

President Erdogan announced his desire for rapprochement with Russia, Syria, Iraq, and Iran. It appears that ISIS and other terrorists are feeling the heat. The Americans panicked and a coup d’état was arranged that was doomed to fail, even though it was long in the planning.

There will be a black out on much of the news coming out of Turkey that will be perceived as negative to US interests. The Turkish purges that have been ordered by Erdogan for all levels of society that may be pro-western.  A great confrontation is developing between the US and Turkey. There is no turning back, unless, another pro-American coup succeeds, an event that is likely but will not succeed. Turkey will close Incerlik Air force base in south east Turkey, and, will leave NATO. The oxygen will be cut to ISIS and other similar groups. Assad will reclaim his country, as Iraq will reclaim its independence. There is certainty that there will be coups d’état in Saudi Arabia,  the Gulf States, and Jordan. All these countries, including Turkey, will join the Eurasian Union and the Shanghai Co-operation Organization. The currency of trade will be the yuan, gold, or the ruble.

This Turkish tectonic shift East will have a profound effect on world history. Only time will tell.