After the Helsinki Summit, Trump Threatens Iran in ALL CAPS tweet

After the Helsinki Summit, Trump Threatens Iran in ALL CAPS tweet

A week has passed since the Trump-Putin summit, and a RogueMoney reader asked me for my thoughts on the outcome. Rather than give the stock answer of ‘it’s too soon to say’, I thought I’d do what analysts do and emphasize the knowns, then contrast those with the greater part that remain ‘known unknowns’ in the ongoing negotiations to defuse Cold War II (or more accurately, to revive the USA’s geoeconomic fortunes because Kissingerian realists in Washington realized by 2016 fighting Russia, China and Iran all at once while dominating the EU, Japan and the Koreas was no longer feasible). The problem with this traditional analytical framework including labels like ‘realism’ vs. neo-conservativism, is that Trump defies easy characterization.

On the one hand, Trump appears to sincerely want to improve U.S.-Russia relations because he has taken more heat for this than any other aspect of his platform, culminating in this week’s insane allegations that he has committed ‘treason’ by questioning the ‘intelligence community’ finding that Russia interfered in the 2016 elections in support of his candidacy. On the other hand, on Sunday night Trump escalated his anti-Iran rhetoric, hours after Secretary of State Mike Pompeo and Sen. Tom Cotton (R-AR) delivered a speech in southern California calling for a 1980s Reaganesque policy of rollback against the Islamic Republic.

Screen shot from: Russia’s Vesti News/First Channel

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Washington's 12 point demands to Iran look eerily like Austro-Hungary's demands to Serbia in 1914 where both were doomed to fail

Washington's 12 point demands to Iran look eerily like Austro-Hungary's demands to Serbia in 1914 where both were doomed to fail

The Trump administration laid out a new and 'upgraded' Iran deal on May 21 which would facilitate the U.S. getting back on board with what they stepped away from when the President 'tore up' the previous agreement engineered by Barack Obama.  And perhaps what is most interesting is that the upgrades appear to actually be meant to fail as the entire scheme looks eerily similar to what Austro-Hungary did to Serbia back in 1914 following the assassination of the Arch-Duke.

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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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Trump's tearing up of Iran deal could backfire by opening up more nations to trade oil in China's new Yuan denominated market

Trump's tearing up of Iran deal could backfire by opening up more nations to trade oil in China's new Yuan denominated market

With President Trump announcing last week that the U.S. was pulling out of the 'Iran Deal', and subsequently threatening economic sanctions against any and all countries that continue with the agreement, the U.S. may have inadvertently shot themselves in the foot as this aggression may have provided an opening for faster expansion in China's new Yuan denominated oil market.

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С Днем Победы Биби! (Happy Victory Day Bibi)

С Днем Победы Биби! (Happy Victory Day Bibi)

In a spectacle that could cause cognitive dissonance for Americans who view Israel as America’s best friend and Russia as our worst enemy, Prime Minister Benjamin Netanyahu was Vladimir Putin’s guest of honor for the annual Victory Day parade on Red Square. Of course, Netanyahu’s presence and the perceived appeasement of Tel Aviv by Moscow is unpopular with many Russians at home and abroad, who view Israel’s military actions in Syria as unchecked aggression against two Russian allies — including last night’s Israeli Air Force missile strike against a Damascus suburb where Iranian personnel are said to operate (which reportedly missed any IRGC soldiers, and killed a civilian Syrian couple who operated a gas station). At least two of the five missiles fired by IAF jets while flying over Lebanon using heavy jamming support to confuse Syrian radars were shot down, according to Syrian Army sources.

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Russia accepts Iran into the EEU while also extending oil for goods program meant to bypass the dollar

Russia accepts Iran into the EEU while also extending oil for goods program meant to bypass the dollar

On April 24, Russia's Prime Minister Dmitry Medvedev announced that they had accepted Iran's proposal to join the Eurasian Economic Union (EEU).  And this comes just a few days after Russia extended a program with the Middle Eastern power to facilitate their year old oil for goods trade which was created so that Iran could completely bypass the dollar.

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As China Retaliates for and Mocks Trump Tariffs, Eurasian Consolidation Accelerates

As China Retaliates for and Mocks Trump Tariffs, Eurasian Consolidation Accelerates

Team RogueMoney, Jim Willie, London Paul, Pepe 'empire of chaos' Escobar have all been saying it for years: a new Eurasian axis centered on China and Russia with Iran and soon Turkey is rising. But the obvious connection between the second Cold War the legacy media has incessantly pushed against Russia since 2013 if not 2008 and the Trump Administration's bemoaned 'trade war' with China remains deliberately obscured for mainstream 'informed' Americans.

It's as if The New York Times, Washington Post and others cannot, or more accurately do not wish to admit, that American sanctions or tariffs on Moscow and Beijing respectively inevitably make either pole of the Eurasian axis increase its support for the other and points in between (like Tehran). That would require them to then logically concede that attacking the Russian economy through sanctions means Russia gets more diplomatic and economic help from China, at the very moment when they are demanding President Trump take a tougher line on the former while seeking conciliation in trade talks with the latter. That is, they would have to admit waging Cold War 2 is economically asinine, so long as China remains determined to support Russia, and mainline Washington is locked in a geoeconomic struggle the USA cannot win but can only lose, so long as Americans remains outside the One Belt One Road (OBOR) New Paradigm.

Nonetheless, there are signs that official Washington and especially London are having to belatedly cope with the new reality. British media went into damage control mode to defend the integrity of UK intelligence agencies if not Theresa May and Boris Johnson this weekend, after the UK FM was exposed as lying about Porton Down identifying nerve agent that supposedly poisoned Sergei and Yulia Skripal as coming only from Russia. Even CNN has had to report Gen. Wei Fenghe's blunt statement this week at the Moscow International Security Conference that "I am visiting Russia as a new defense minister of China to show the world a high level of development of our bilateral relations and firm determination of our Armed Forces to strengthen strategic cooperation...to support the Russian side in organizing the Moscow International Security Conference the Chinese side has come to show Americans the close ties between the Armed Forces of China and Russia, especially in this situation. We’ve come to support you." With Moscow accelerating completion of mega-gas pipelines and other infrastructure forward financed by China's newly introduced petroyuan, this trend will continue...until the 'double helix' as one Vineyard of the Saker contributor calls Russia's integration into Beijing's financial, military/industrial and energy/scientific megaproject, becomes unbreakable.

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