One Two Punch: Russia's Game Changing Intervention in the Mideast and the Failure of Engineered Lower Oil Prices to Break Moscow's Will While Draining Saudi Coffers Forced Riyadh to Beijing Hat in Hand
China has read out an inescapable verdict on the petrodollar -- it will be used less and less with each passing month in global trade, specifically transactions in petroleum that have been pegged to the greenback by agreement between Washington and its allied Persian Gulf producers led by Saudi Arabia since the 1970s. Without a radical shift that American elites appear utterly incapable of humbling themselves to achieve, China and its allies led by the Russians and Iranians' influence will grow stronger, while Washington and its relevance will grow weaker. Washington's failure to topple the Russian defended Assad government of Syria, a losing war of occupation for the Saudi kingdom in Yemen, and Riyadh's humiliating failure to break the will of liquefied natural gas exporter and rival Sunni Islam patron Qatar all demonstrate that the petrodollar's time is up.
The Increasingly Not So Subtle Saudi Shift to the Eurasian Camp, as Riyadh's Syria and Yemen Wars Fail and the Failed Qatar Blockade Humiliates the Kingdom
Seeing the writing on the wall, the young and ambitious Saudi Crown Prince Mohammed has softened his hard line stance in support of the Syria jihadists while looking for a way out of the Yemen quagmire which Iranian support for the Houthis has deepened. A Saudi withdrawal from Yemen that spares the Kingdom internal revolt may be possible, but not without Riyadh making the mother of all concessions to the Eurasian giants if not the arch rival Iranians -- abandoning the petrodollar in favor of the petroyuan. A development Russia's Deputy Foreign Minister Sergei Ryabkov warned this summer would be an inevitable consequence of the desperate, extraterritorial sanctions passed by the Congress to wreck Russian energy trade with Europe and force Europeans led by the Germans to buy expensive American LNG exports.
BRICS Summit to Accelerate De-Dollarization
V the Guerrilla Economist has described the U.S. deep state pushed coup d'etat that deposed Brazilian President Dilma Rousseff, in favor of Wall Street stooge Michel Temer. After this development it seemed the chaos sweeping Brazilian politics and economy would block any further integration of South America's largest economy into the BRICS alliance. Yet as Brazilian journalist Pepe "Empire of Chaos" Escobar observed in early August, slow but steady progress on standardization and the removal of trade barriers continues between China and the fettered Brazilian giant:
The Bigger Picture and the Missing Soft Power/Social Media Transactions Component of Global Dollar Dumping -- Systems for the Next Billion Coming Online
From a cultural perspective, Russia's hosting of the 2018 World Cup, which is bound to see terrorist and funded subversive efforts by you know who to tarnish, should strengthen the cultural ties between Latin Americans and Russians. But when it comes to breaking free from Washington's sanctions and failing efforts at intimidation, giving both sides a non-dollar reserve currency in yuan linked to gold and a basket of cryptocurrencies to hedge in is much more important than soccer. So too, is the long rumored and discussed project of creating a parallel Internet that leverages encryption and China's quantum satellite/computing technologies to make financial and government communications far less visible to the snooping Anglo-American 5 Eyes. But as London Paul frequently reminds Rogue Media listeners, these are processes and not events.
It is one thing to tell Uncle Sam where to shove his sanctions and G-NGO fueled color revolutions, and another thing to build out the infrastructure to bypass the dollar, while developing international trust in a new system of systems. Hence the steady build out of the CIPS/Mir alternatives to the U.S./UK/EU dominated payment processor SWIFT, the Eurasian Economic Union which aspires to eventually absorb the failing EU, and the BRICS/Asian Infrastructure Investment Banks (AIIB) to rival and eventually takeover the International Monetary Fund (IMF) and World Bank.
In the Russia Analyst's opinion all that's missing so far, are online soft power tools beyond state funded media like RT or CCTV, that would invite non-Russians or Chinese into social networks linked to trustworthy transaction platforms. This is what VKontakte founder and Telegram CEO Pavel Durov, who sold shares of his firm to Facebook and knows a thing or two about Silicon Valley Big Tech bolstering U.S. soft power and surveillance, recently advocated on his personal VK page (sounding a lot like longtime Kremlin economic adviser and anti-dollar hawk Sergey Glazyev):
Alt-Tech, Just Like 'Alt' Left and Right, Will Be 'Linked' to Russia in MSM Propaganda
Alt tech created by and for people in the (post)Western world which makes accessing the so-called 'dark web' easier could of course, hamper Washington or London's efforts to prevent their citizens from using the Eurasian (and especially the large and relatively youthful Spanish speaking population within the U.S.) Latin American social networks on pain of being labeled 'tools of Russian/Chinese influence'. Naturally, in addition to being the haunt of terrorists and pedophiles, Americans will be warned to stay off the dark web because it's riddled with Russian and Chinese hackers (whether Crowdstrike labels them Fancy or Panda Bears) ready to instantly steal your identity.
Such a combination of alt-tech and blockchain with state sponsored alt-Internet infrastructure, without necessarily requiring active collaboration, could foil (at least among the most savvy) efforts by Google and YouTube to manipulate news flows and omit details embarrassing to Washington's foreign and economic policies. The 20th century analogy would be to the ways technologies like cheap transistor/short wave radios and the fax machine bypassed the efforts of late Communist Bloc regimes to block information from the West. If one sees the hysterics of the German Marshall Fund globalists and their Hamilton 68 project attempting to link every single counter-establishment or 'alt right' hashtag or meme trending online to the Kremlin's dreaded troll army, one can only imagine their reaction if Americans started ditching Twitter and Instagram for Eurasian (or Eurasia friendly and 'neutral' possibly Latin American country hosted) competitors.
Dogs Bark at Russian Consulates But the New Paradigm Caravans Roll On
In the meantime, as Executive Intelligence Review (EIR) reported on September 1, Foreign Minister Sergey Lavrov basically blamed those determined to block President Trump's campaign promise of improving bilateral relations for the recent escalation in U.S. moves against Russia's diplomatic properties. Moscow has been hesitant to further escalate the tit for tat moves that followed the U.S. closure of Russian properties used for spying in New York City and on the Maryland shore in the lame duck phase of Obama's presidency, allegedly in retaliation for Russia's 'election interference'. However the recent moves may leave the Russians with little recourse other than to swallow continued harassment, or retaliate in kind by closing the American consulates in Yekaterinburg or Vladivostok -- and giving Americans stationed there less than 36 hours notice to clear out before the Federal Security Service (FSB) search their offices and living quarters.
However, all of these efforts to encase U.S.-Russia relations in the worst deep freeze since the last Cold War should be viewed for what they are: lashing out by a deep state that, notwithstanding its neutering of the Trump presidency, is running out of time and options to maintain declining superpower status.
Do you want to prepare yourself for the global economic reset? Then start surfing the web with privacy and get your encrypted crypto-currency wallet at MyGoldUSB.com today!