Putin BRICS Remarks Imply Need for New Monetary System

Putin BRICS Remarks Imply Need for New Monetary System

Friday’s 4.1% GDP growth rate announcement was an encouraging sign for President Trump’s #MAGA agenda, as are the first signs of real wage growth in over a decade. But the core problems of massive debt at all levels of government, plus the unfunded liabilities of bloated American military and ‘health care’ spending remain. Private borrowing — particularly in the overheated Anglosphere housing markets from London to Vancouver — is also unsustainable (including the stupid headlines about how Millennials should throw fewer bachelor parties if they want to save for a house and inexplicably sluggish sales amidst 2007-08 exceeding prices for homes). Commercial real estate from failing North American shopping malls represent the first canaries dropping in the coal mine before a worse crash than the 2008 collapse — though President Trump is buying Americans critical time.

Emerging market crises, while beneficial to the dollar in the short run, remain corrosive to the greenback’s dominance over the long haul, as countries like Turkey and Argentina seek to escape the boom-bust dollar loans cycle. Another factor undermining King Dollar is of course, the failing U.S./EU sanctions imposed on Eurasian energy giant Russia as part of Cold War II, which have spurred Moscow to make oil transactions outside of the SWIFT payments structure and in rubles, yuan or local currencies. Mindful of the foreign debt and liquidity traps Latin Americans (including the Brazilians) have repeatedly fallen into through the 20th and 21st centuries, Russian President Vladimir Putin spoke on the topic of inevitable de-dollarization at this year’s BRICS Summit in Johannesburg. — JWS

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The most important thing people missed from yesterday's trade agreement with the EU is that Trump's end goal is elimination of all tariffs

The most important thing people missed from yesterday's trade agreement with the EU is that Trump's end goal is elimination of all tariffs

Politics and geo-politics are anything if not ironic.  And we saw this play out again yesterday following the positive outcome and remarks made between the EU's Jean-Claude Junker and President Trump after three hours of trade talks.

Heading into yesterday's discussions, both the U.S. and the European Union were prepared to immediately institute tariffs on automobile exports as analysts and pundits continued to ignorantly promote a trade war scenario as a means to try to vilify the President.  However the reality that appears to have been overlooked by the mainstream propaganda media is that from the beginning, Trump's end goal has always been the elimination of all tariffs, not the implementation of them.

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Trump Confounds the Nuclear Warmongers; Now For the Wall Street Free-Traders!

Trump Confounds the Nuclear Warmongers; Now For the Wall Street Free-Traders!

The European geopoliticians around London, and the American neo-cons and liberal imperialists, are so "deranged" by the continuing series of impossible summits which began in Singapore with President Donald Trump and Kim Jong-Un of North Korea, that is is clear their policy can really be eradicated.

The substantive problems being discussed at these meetings, especially involving the United States and Russia, are very difficult to solve. But the threat of thermonuclear war these geopoliticians are all too willing to risk, is being driven down. And the new economic and diplomatic paradigm launched around China's Belt and Road Initiative, is providing the means to replace it entirely, with great-power cooperation for the economic and scientific progress of mankind.

But geopolitics can't be killed off while the menace of "free trade" runs rampant. 

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China appears to be setting up Dubai to be the gateway to both Europe and Africa along their new Silk Road

China appears to be setting up Dubai to be the gateway to both Europe and Africa along their new Silk Road

While there are countless theories as to why President Trump has helped plunge the world into a global trade war at this time, it has not stopped China from continuing their quest to rebuild the old Silk Road here in modern times.

And not unlike the Silk Road of the past, where trade was conducted freely at ports, cities, and even outposts all along a route that encompassed thousands of miles, China's new version is very similar in that they are working towards bypassing bureaucratic authorities over trade (WTO, reserve currency use, sovereign regulation) and bringing a return to a time when nations set trade agreements based on each other's respective needs, and in their own currencies.

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China appears to feel now is the time to fully internationalize the Yuan as rest of the world deals with chaos and turmoil

China appears to feel now is the time to fully internationalize the Yuan as rest of the world deals with chaos and turmoil

Whether it is the global trade war, populist movements in Europe seeking to end the Euro and EU, anti-dollar sentiment from Middle Eastern oil producers, or collapsing economies in South America, it appears that the ground is now set for China to go full bore towards internationalizing their currency.

In March China instituted the first real attack on the Petrodollar in the 45 years of its dominion by introducing a yuan-denominated oil futures contract.  And in just two months they have siphoned off 12% of the global oil trade formerly done in dollars.  And according to many sources, especially in Africa, desire for the Yuan over the dollar is growing an at ever increasing rate.

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SPIEF 2018: Economic forum dedicates first day of conference to alternative ways nations can ditch the dollar

SPIEF 2018: Economic forum dedicates first day of conference to alternative ways nations can ditch the dollar

With Russia already fully prepared to not only move away from the dollar themselves in international trade, but also able to offer the rest of the world an alternative to the global reserve currency system, perhaps it should not be surprising that they have dedicated a full day of their annual economic forum to discussion on ways nations can join them in this crusade.

The first day of the 2018 St. Petersburg International Economic Forum (SPIEF) has seen some fireworks come out right off the bat at the threat of the U.S. imposing even more sanctions on nations such as Iran, France, North Korea, and even Germany has made talks on how businesses and nations can use alternative financial platforms to evade any and all restrictions Washington may impose through their use of the dollar as a financial weapon a high priority.

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U.S.-China Trade and a Needed Burst of Optimism for Americans

U.S.-China Trade and a Needed Burst of Optimism for Americans

Direct collaboration between President Donald Trump and President Xi Jinping at the end of this week pulled China and the U.S. back from the brink of a highly dangerous potential trade war between the two countries, a scenario devoutly desired and orchestrated by the British Empire and their free-trade acolytes in Washington. The problem is not over, but a collaborative course has been struck for a win-win approach, and further negotiations will now proceed. Similarly, the extremely dangerous situation on the Korean Peninsula, which the British have also been trying to use as a trigger for a strategic showdown between the U.S. and Russia and China, has instead moved in the direction of cooperation for a peaceful resolution based on combined economic development in the region. In this case it was again the direct Trump-Xi channel that was decisive.

As both cases demonstrate, the worst of strategic dangers can be transformed into "the best of all possible worlds," when there is the political will to do so—as Helga Zepp-LaRouche has stressed.

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Repercussions from the Iran Deal could see the dollar rejected as a trade currency, but kept by central banks as a monetary reserve

Repercussions from the Iran Deal could see the dollar rejected as a trade currency, but kept by central banks as a monetary reserve

Despite the fact that the many nations are quickly tiring of dollar hegemony, and especially in Washington's use of the reserve currency to impose their will over the rest of the world, the dollar remains the standard by which country's set their own course for monetary policy.

However following President Trump's decision to tear up the Iran Deal, what began originally as an Eastern based policy in 2013 (Russia and China) to dump the dollar has suddenly shifted over to Europe.  And what could potentially emerge is a new paradigm where nations reject the dollar for use in trade settlement, while at the same time holding dollars as a monetary reserve to support their currencies.

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