Momentous economic developments
have been afoot since the Lehman collapse in 2008 among the developing BRIIIC
nations to unseat the US dollar as the primary payment vehicle in international trade after suffering enormously
from the ruthless corruption of Western banksters.
Jim Willie reports in his Hat
Trick newsletter that quiet preparations among Brazil, Russia, India, China, and South Africa, plus Iran and Indonesia for a Eurasian Trade Zone are
nearing completion and will draw many other nations into its orbit, including
Saudi Arabia and other resource rich nations seeking to break free from
imperial American abuse.
The formation of the Eurasian
Trade Zone will be accompanied by the establishment of a BRICS Development Fund
which will finance large infrastructure projects in partnering nations, a
partnership which explicitly excludes the United States, in part due to President
Obama’s recent efforts to create the Pacific Partnership which required Japan
and South Korea to exclude China. This overstep by the Obama administration
inflamed smoldering resentment of imperial American dictats to the region.
The development fund will be
financed by US Treasury paper which the Chinese, Japanese, and Russians hold in
abundance. These nations have been
working in concert since 2008 to divest themselves of these financial
albatrosses which have seen large devaluations and insolvencies. By using them
as collateral for financing infrastructure projects, the development fund will
return the treasury paper and dollars back to the US for burial, as Willie puts
it.
In addition, the BRICS
Development Fund will convert Treasury paper into gold, with American and
British banks the last holders of these sub-investment grade papers. Germany is
the locus of a great political conflict with an established cadre of Western
oriented leaders pitted against the emerging Eastern oriented leaders who have
forged much of the financial and trading infrastructure of the Eurasian Trade
Zone.
The “exorbitant privilege” of
which former French president Valerie Giscard d’Estaing spoke in the early
1970s is another source of much of the Eastern animosity. The United States has run
enormous trade deficits which are not reflected in currency valuations, but
which result in inflation and lost store of value for nations holding the debt
and currency. The Greenspan – Bernanke administrations at the Federal Reserve have
accelerated the abuse and debasement of the dollar. The United States is seen
as unable to pay its debts which will double under the Obama regime.
Easterners are also furious with
the continuous and treacherous manipulations of the precious metals markets,
FOREX, and SWIFT systems, the latter of which proved to be the final straw provoking
revolt against the dollar. The Petro-Dollar will disappear as the Saudis
establish bilateral trade agreements with trading nations, possibly to be
funded with gold.
Although Willie speaks of a new
Gold Trade Note with a “gold core”, we see it as another flop attempt at fiat
currency, though it will be marginally more attractive than the USD which is
built purely on debt. In this regard, we would point any serious student of internatioal trade to
Antal Fekete’s Real Bills Doctrine as a way of building a viable, prosperous,
long term trade infrastructure.
Willie also notes the overbearing
military operations of the United States to thwart these Eastern developments,
and the enormous resentment against the United States due to its interference
in domestic affairs of sovereign nations, all of which have been incessant since the establishment of the Rockefeller CIA.
The implications of these
developments are staggering. The United States faces the loss of its “exorbitant
privilege” and access to large foreign markets at a time when its fiscal and monetary
excesses have wiped out its solvency and credibility. History shows that such
nations backed into corners resort to wars to retain their vanishing prestige,
but this, too, will backfire and accelerate the demise of the nation.
In the long run, if the ruination
forecast by these events befalls the USA, and its people realize that they have
been ruled by treasonous Rockefeller Empire Nazis, and they call the bluff of
the two party system which these Nazis control, they might be able to redeem
themselves. Unfortunately, our optimism for such an outcome is most dim.
Reference
USDollar: Ring-fenced and Checkmate, Jim Willie, Goldseek.com, 3/29/2013
Copyright 2013 Tony Bonn. All rights reserved.
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