The World is Reordering and What It Means for the US


For years literally, we have been chronicling the demise of the US’ power in the world as it has been wrought by the FED. We have witnessed the systemic theft of the wealth of the US by the bankers. Most think that is not a reality. They are all consumers of the “blue pill”. Trillions of dollars have been siphoned from our economy, our infrastructure is crumbling, our CONgress is a joke run by paid clowns, and we have been saddled with the debt of conflict after conflict.

Now, as they say, the final shoe is dropping, and here are a few examples of why is not being covered in our so-called media, which is also a sham. For many months we have been following the actions of the BRICS as they methodically are re-organizing the way the world’s financial markets operate, and the associated trade that will be conducted. Many scoffed at these efforts with the rationale even if the BRICS (Brazil, Russia, India, China, and South Africa) were to be successful, they still wouldn’t be large enough to effect any change.

The FED continued to print money with no asset backing and shipped it to the EU banks to continue the façade that all is well, and the economies of the US and the EU were great, when in fact they were collapsing. Literally the US taxpayers have been indentured to the tune of several trillions of dollars. Here we are seven years later, and even with the draconian measures meted out by the IMF and World Bank on it’s member nation governments in the form of austerity programs, the economies of those nations continues to collapse.

It is not a surprise that these same elite in the US are banging the war drums once again and this time the Russians are once again the bad guys. However, you must put everything in its true context and look at what has happened in Iceland, who now says joining the EU is out of the question or watch what is going on in Greece as they begin to “buck” their bondage.

Panos Kammenos, Greece’s defense minister, spoke to German newspaper “Bild” on Saturday, saying his country’s leaving the euro could precede an exit by Italy and Spain, followed by Germany in the future. “If Greece explodes, Spain and Italy will be next and then at some point, Germany. We therefore need to find a way within the eurozone, but this way cannot be that the Greeks keep on having to pay,” Kammenos told Bild.

Instead of a bailout, Greece needed a debt “haircut” like the one Germany’s creditors had to accept in 1953, Kammenos proposed. He also argued that Berlin should pay World War II reparations to Athens. “All European countries have been compensated for crimes committed by Nazis, except for Greece,” Kammenos said, referring to the gold Nazi soldiers brought back from Athens during the war.

The defense minister also accused Germany of “interfering” in its domestic affairs. His criticism was aimed at German Finance Minister Schäuble, who earlier warned of a “Grexident” which could push Athens out of the euro. “I don’t understand why he turns against Greece every day in new statements. It’s like a psychological war and Schäuble is poisoning the relationship between the two countries through that,” he said.

Meanwhile Germany and France are on a sinking ship, and for all intent and purpose are looking to bail as well. The head of the private intelligence agency Stratfor has for the first time publicly said that the US government considers it to be its overriding strategic objective to work on the prevention of a German-Russian alliance. Blocking that alliance is the only way to prevent an alternative world power capable of challenging extension of the American position of being the world’s lone superpower. He says that the U.S. will fail in that overriding objective; German technology and capital will combine with Russian natural resources and “land-power,” to produce a truly bipolar world: U.S. v. Eurasia. So: he sees the U.S. strategy as being to block that, by weakening both Germany and Russia. That strategy would explain what Obama is doing in Ukraine, and the sanctions that are hurting both Russia and Germany, but Friedman thinks that nothing can work.

On the Asian front, consolidation is also occurring, again without US involvement. Although the US is desperately trying to “fast track” a trade program (TPP), it is not happening. This program is a desperate move executed way too late and would have a devastatingly negative effect on the US economy. In the meantime, Russia and China announced this week that as of today, 17 March, the Moscow Exchange has started trading in a futures contract on the currency pair Chinese Renminbi — Russian Rouble.

The launch has been driven by a substantially increasing Renminbi turnover on the Exchange, growing volume of settlement in the currency between Russia and China as well as newly arising demand for hedging of such transactions. Andrey Shemetov, First Deputy CEO of Moscow Exchange, said: “The launch of the CNY/RUB futures is the next step made by the Moscow Exchange to offer a full range of Renminbi instruments and hedging tools to participants. We expect that the new contract will be liquid and in-demand as other Exchange’s derivatives, and facilitate the trade turnover between China and Russia”.

The contract is cash-settled against the Moscow Exchange CNY/RUB fixing. The contract’s expiry dates are every 15th day of March, June, September and December. IM size is 12%. Metallinvestbank will act as the market maker for the contract. Moscow Exchange’s turnover in the Chinese Renminbi grew 700% in 2014 to RUB 395 bln (CNY 48 bln). The record average daily trading volume of CNY 541 mln was seen in October. Currently, the Moscow Exchange’s derivatives market offerings include nine FX futures: USD/RUB, EUR/RUB, EUR/USD, AUD/USD, GBP/USD, USD/JPY, USD/CHF, USD/UAH, USD/CAD, and USD/TRY, as well as three options: USD/RUB, EUR/USD, and EUR/RUB.

The dominoes are falling fast now. UK, Australia, New Zealand, Singapore and India All Sign On … South Korea Next? The Financial Times now reports that France, Germany and Italy have all agreed to join the China-led international development bank as well, “delivering a blow to US efforts to keep leading western countries out of the new institution.”

This week, 2 major U.S. allies – 2 of the “Five Eyes” – have disregarded American pleas and joined China’s new development bank … alternative to the US-dominated IMF and World Bank lending order. (A third member of the Five Eyes – New Zealand – previously signed onto the Chinese bank.). Specifically, the UK and Australia signed on this week.

The Financial Times reports, quoting a senior US Official: The decision of the UK to join the Chinese development bank was made with virtually no consultation with the US. We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power.

The New York Times reported last week: Fundamentally, Washington views the Chinese venture as a deliberate challenge to those postwar institutions, which are led by the United States and, to a lesser extent, Japan, and the Obama administration has put pressure on allies not to participate.

Zero Hedge predicted last week: In short order Australia and South Korea will likely be on board and at that point, the stigma the US has created around membership will have completely disappeared (if it hasn’t already), opening the door for other US “allies” to join ….

An Op-Ed in The Australian argues: The decision by the Abbott government to sign on for negotiations to join China’s regional bank … represents another defeat for Barack Obama’s diplomacy in Asia. Canberra’s move follows similar decisions by Britain, Singapore, India and New Zealand.

If there is anyone out there who still honestly believes we are not in for a huge devaluation of the dollar and the devastating blows to our world economic position, they are delusional. All we can say at this point is two things. 1). Why do we still continue to allow the FED to establish our monetary policy? And 2). Brace for impact, this is going to be real ugly.

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Author: redhawk500

International business consultant, author, blogger, and student of life. After 35 years in business, trying to wake the world to a new reality. One of prosperity, abundance, and most importantly equal opportunity. it's time to redistribute wealth and power.

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