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 beginning to focus on lifeblood of global economy in Trade War by halting oil purchases from U.S. in favor of Iran

China beginning to focus on lifeblood of global economy in Trade War by halting oil purchases from U.S. in favor of Iran

The Russian Analyst wrote about this trend in the previous article, and Ken Schortgen Jr. confirms it citing RT.com — the Trump Administration’s efforts to isolate Iran are mostly succeeding in diverting Iranian crude from European and Indian refiners to the Chinese. This may have interesting implications for the joint U.S.-Israel-Saudi efforts to squeeze Tehran, particularly given Dr. Jim Willie’s claim that Beijing has quietly been seeking to make two of its leading oil suppliers the Saudis and Iranians ‘play nice’. — JWS

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This Is the Moment for Change

This Is the Moment for Change

Two events of the day point the way for how the New Silk Road paradigm is the means to overcome what is currently being whipped up in the Trans-Atlantic as inevitable, insoluble strife: the migrant crisis and trade war.

In the Americas, Bolivian President Evo Morales met in Beijing today with President Xi Jinping, and signed commitments for Belt and Road collaboration between Bolivia and China. Morales said it will mean economic development and peace throughout the continent. Also in China, is a delegation from the Dominican Republic, conferring on economic projects and business in the Caribbean. Generalized across Ibero-America, this activity--along with defeating the narco-criminals--can end the poverty and danger driving millions to flee their homelands. At present, 200 million out of the 650 million-plus people in Ibero-America and the Caribbean live in poverty, which can all be changed.

Secondly, the Japanese government is now working on specifics for first-ever cooperation with China on joint ventures in third countries, under the Belt and Road framework. Prime Minister Shinzo Abe this week spoke of how Japan's "infrastructure exports" can be done on a collaborative basis. A task force is at work on selecting priority projects. This is a powerhouse arrangement.

Photo: Chinese President Xi Jinping (R) shakes hands with Bolivian President Juan Evo Morales Ayma during a welcoming ceremony at the Great Hall of the People in Beijing, capital of China, June 19, 2018. Xi Jinping held talks with Juan Evo Morales Ayma on Tuesday. (Xinhua/Li Xueren)

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As nations divide over keeping or discarding the dollar based financial system, the primary alternatives are the Yuan, Ruble, and gold

As nations divide over keeping or discarding the dollar based financial system, the primary alternatives are the Yuan, Ruble, and gold

Global leaders and the elite are converging this week on two key annual events, and from rhetoric already being provided from a number of sources, this year's conferences at Bilderberg and the G-7 are sure to result in massive changes going forward for the global financial system.

At the heart of course is whether the United States and their dollar hegemonic system still has the power to lead rather than divide what is shaping up to be a historic sea change in the fabric of politics and finance.  And ironically the upcoming conferences may prove to be one of the final definitive moments of a movement that has been dedicated towards killing globalism and U.S. hegemony since just after the 2008 financial crisis.

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Ken Schortgen Jr @FinanceExaminer on Mornings with CJ 08/03/2017

Ken Schortgen Jr @FinanceExaminer on Mornings with CJ 08/03/2017

Speaking on the August 3, 2017 Mornings with [V and] Producer CJ, Ken "The Shotgun Professor" Schortgen Jr. of The Daily Economist addresses the 'Hindenberg omens' in the stock market, a breakdown of the yen carry trade, the Federal Reserve's debt/interest rate trap (with an estimated $250 billion in additional debt service for every percentage point the Fed raises rates), and Congress exacerbating the global beggar thy neighbor trade war that's been underway since 2009.

Ken compares the recently passed H.R.3364 - Countering America's Adversaries Through Sanctions Act to the notorious Smoot-Hawley tariffs that worsened the Great Depression of the 1930s. However, Ken says American efforts to force shale natural gas shipped via expensive LNG tankers on Europe to muscle out Russian energy exports are unlikely to succeed. The EU itself is in crisis from members like Poland and Hungary defying Brussels mandates to accept Muslim migrants and is unlikely to handle the strain of additional energy costs imposed by the Americans. Ken adds that the Fed and the U.S. government don't have the ammunition to battle against the tsunami of dollar dumping and economic isolation coming upon the American economy. -- JWS

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