To understand the real reasons for war, follow the money. . .
America’s Financial War Strategy
By Alasdair Macleod
April 20,
2017
EXTRACTS:
“America’s renewed desire to escalate
military tensions is a front for America’s continual financial war, this time
directed at North Korea, Syria and possibly Iran.
This is likely to be the
opinion of China’s strategic advisors. We analyse the geopolitics and economics
behind America’s war strategy from China’s perspective, concluding that it is
entering its final phase.
China’s exit plan appears to be to tie the pricing of
energy and then other major commodities to gold, returning to the pre-1971
status quo, when the dollar was just a settlement link between commodity prices
and gold. Except this time, the dollar itself will be side-lined, so far as
China is concerned, which will use the yuan instead for its empire, which will
be far larger than that of the US in time…
It is because of American-led
operations in Iraq, Afghanistan, Libya and Syria that Europe is flooded with
refugees, bringing undercover terrorists with them.
There can be little doubt
that a dispassionate analyst would recommend America abandons military action,
so there must be other reasons behind America’s war-mongering…
The relationship between Russia and
China is strong, and they are likely to coordinate their strategic responses to
American aggression in both Korea and Syria.
The question is, if America
continues to escalate its bellicose actions against North Korea, Syria, and
possibly Iran, what will their response be? For clues, we should look at this
from China’s point of view.
The People’s Liberation Army’s most influential
strategist, Major-General Qiao Liang laid out his overall strategic philosophy
at a book-study forum of the Communist Party’s Central Committee in Autumn 2015…
Qiao’s principal thesis is that America
uses the dollar to manage external trade and finance for its domestic benefit.
Many of us are familiar with the proposition that by exporting dollars and
dollar-denominated bank credit, America creates wealth for both the US
government and the major American banks, and that the dollar’s reserve status
is accordingly vital to the US economy.
But Qiao takes this much further,
claiming that since the dollar’s peg to the gold price was abandoned, America
has initiated a cycle of economic boom and bust among foreign users of the dollar
for its own benefit…
[Qiao] claims that Saddam Hussein was
overthrown because he instituted a policy of selling oil for euros, not
dollars. That was true, and there is little doubt that the threat to dollar
hegemony was discouraged. He claims the break-up of Yugoslavia was to undermine
the status of the new euro…
Qiao then turns his attention to the
contemporary cycle (in 2015) of dollar management, claiming it was now aimed at
China…
However, China has protected herself from America’s financial attacks
through its national ownership of the banks and by capital controls.
Consequently, only foreigners can sell yuan to buy dollars, or withdraw dollars
from their own operations to invest in Treasuries. Therefore, the damage was
always going to be limited…
China
also bends with the wind. While America increases her Naval domination of the
Pacific region, instead of fighting it she merely increases her influence
towards the West. This is the basis of the One Belt One Road project, which is
already running goods trains as far as Madrid and London.
China prefers her trade partners to take yuan in payment, and will
lend them yuan if called upon. In time, yuan payments will have convertibility
into gold using the Shanghai Gold Futures Market when it gains greater depth,
making it superior to the dollar as a settlement currency…
Embedded
in Qiao’s analysis is an understanding that the Chinese empire will not only
become far larger than the US in terms of trade, but by understanding the
weaknesses of American financial imperialism, it will be more enduring…
Let us
assume for a moment that his thesis is valid, then Trump’s threats to escalate
a regional war over North Korea and/or Syria/Iran takes on a wholly different
light…
By
threatening North Korea, dollar investment is likely to flow out of trade and
investment in South Korea and Japan, back to US Treasuries… this could solve
two pressing problems: the first is to persuade Congress to sanction an
increase in the deficit limit, it always being easier to persuade Congress to
finance a government at war, and the second is to attract the necessary
dollar-denominated capital to buy Treasury debt, without having to increase interest
rates…
…China will avoid
being undermined by these negative capital flows. Unknown to the public,
America has already failed in its financial war against China, and needs new
victims, which is why the attention has switched to the Korean peninsula as
well as the Middle East.
Trump now realises the only way his presidency can
prosper is to encourage capital flight into America from abroad, and have the
debt limit raised to accommodate it…
Japan
and South Korea will most probably have studied Qiao’s paper, becoming wise to
America’s true motives, and are therefore more likely to distance themselves
from trading in dollars thereafter. Their private sectors will be slow to
understand these financial dynamics, so will remain victims.
But for
governments and large corporations, the American gaff has been blown. This is
likely to lead us into a new world, where the dollar’s decline as a reserve and
trade currency accelerates, as America runs out of its pump-and-dump victims.
And when that happens, the dollar is almost certain to rapidly lose its
purchasing power, leading to a global currency reset and a far higher dollar
price for gold…
China
places a great emphasis on hoarding gold, both for itself and its citizens… But
China has gone even further, seeking to control the global market by making the
Shanghai Gold Exchange the largest physical exchange by far.
She has now
introduced yuan gold futures contracts, which will be followed by yuan oil futures
contracts in time. This ensures that foreign traders in commodities and
wholesale goods can sell forward the yuan they receive in return for gold,
increasing the attractiveness of trade finance and settled in yuan compared
with dollars. And when the yuan oil contract is introduced, oil importers will
use the yuan contracts to sell oil for gold.
In one simple action, China is ready to change the pricing of oil
to gold instead of dollars…
This should come as no surprise to the American
state, close to being declared check-mate by China on the geopolitical chess
board. The dollar price of gold is likely to rise sharply, reflecting the loss
of purchasing power for the dollar, and it will end the American dollar’s
exorbitant privilege, enjoyed since the end of the gold standard in 1971.
It is
potentially the coup-de grace for both the paper dollar and American
imperialism.
Conclusion
China is thinking ahead, and has its own unique understanding of
how America manages its financial empire for the benefit of its domestic
economy, at the expense of everyone else.
China has protected herself, and
attempts by America to undermine China’s economy have already failed. Attention
is now focused elsewhere.
The latest war-mongering against North Korea, Syria
and possibly Iran has much to do with persuading Congress to raise the debt
ceiling, and to encourage capital flight back into a new wave of US Treasuries
without interest rates being raised. This neatly explains Trump’s change of
heart over foreign adventures…
China’s
publication of Qiao’s analysis has alerted government strategists everywhere to
the use of this tactic, reducing its efficacy. America is running out of fools
to fleece.
The
end game for the dollar and America’s harvesting of foreign countries is
therefore in sight, and it will likely end with a final dollar crisis. China
could bring this about at a time of its own choosing, simply by introducing the
planned oil futures yuan contract alongside the gold futures yuan contract…
This
explains the dynamics being played out at the highest levels, and America has
the most to lose. But because China still owns large quantities of US
Treasuries and dollar reserves, for the moment she might prefer more time
before executing the coup de grace.
But execute it, she will.
Her fundamental objective is to remove
America’s ability to profit from having everything priced in dollars.
Logically, that means getting oil and other key commodities referenced in gold,
as they were before the Nixon shock in 1971, with fiat currencies merely being
the settlement media.
America must be careful not to bring forth the date of
her own demise by attacking North Korea, Syria, or Iran.”
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Watch:
The West lives in debt – Putin
(YouTube, 5:05)
“They say that if you want to understand the values of a
particular society - take a look at its architecture and buildings. Which ones
stand out as the most glamorous in today's world? Why of course - the
international banks and financial institutions.
All countries live in debt,
albeit to much larger proportions in the West - but to whom? A handful of fat
cat CEOs.
In this quick outtake, Putin talks about the state of the
international economy. The key point to take away is that the US prints fiat
money, backed by nothing more than thin air, while the national debt level only
gets larger (19 trillion!)
The only way this situation can change is through the
imposition of a parallel financial system that steers away from the US dollar
as the reserve currency.
Gaddafi attempted to do this in his time, through the
use of the gold backed dinar. Russia and China are the only ones left that allude
to the possibility of a world in which the dollar is no longer the reserve
currency.
In theory, such a system would dismantle the 500 year old
Rothschild Empire. The empire that continually sponsors both sides of wars...”
