The following is a SputnikGlobe article by one of its best reporters, Ekaterina Blinova, “Developments to Dethrone Petrodollar Already Underway.” It should be noted the Saudis skipped the G-7:
"...European politicians are made a laughing stock.."
Indeed they are: no countries in the world have more to gain and less to lose in a multipolar world than states like France, Germany and Britain who watch impotently as their cultures, economies, living standards and societies are impoverished by submission to US rule.
It is notorious that European economies have been decimated, eviscerated, by their falling into line behind Washington sacrificing their access to cheap and reliable Eurasian energy sources, not to mention markets and other synergies.
The Belt and Road Initiative was virtually designed to embrace Europe into an Afro-Eurasian bloc substituting internal lines of communication and land based trade routes for the maritime links associated with the imperialist system. Defying all logic Europe's rulers have withdrawn from their initial embrace of the BRI not because it would not bring prosperity and peace to their peoples but because the US ordered otherwise.
Such conjunctures arise rarely, opportunities missed tend to disappear.
There's some excellent information there, which I think everyone should be aware of. Thanks Karl!
Under the present global circumstances, Saudi Arabia would be stupid to tie their oil to the American dollar. And they won't, if things go according to this article. Naturally the other Gulf states will follow suit. Iran works outside the US$ already. This isn't an attack on the USA, it's just business. But it is going to have a seriously negative impact on the US economy and those countries that are dependent on it. (My own being one of them.)
As far as international trade goes, be it for oil or anything else, it should be in whatever currency or currencies that the parties agree to. This is a long overdue change that will help the developing world.
Which segues nicely into the CBDC tectonic shift. No one nation or group of nations should control the flow of international money exchanges. The mechanism that supports international transactions should be completely neutral and impervious to pressure by countries that would try to exploit it. (Which at present they do with SWIFT.) If China, Russia, Saudi Arabia can get such a payment system up and running, I expect every country in the world would want to use it - except for the USA and its dependent vassals.
I don't want to be on CBDC. I also think it wrong for the USA to abuse their currency as the rule was if you are the international currency you are not supposed to weaponize it. We have to keep an eye on this as far as the one world/WEF kooks go. I am sure they are in the middle of this. CBDC will be a token of control and forced behavior by the likes of Larry Fink etc.
As I understand the concept, they're not talking about a digital currency that you and I would use in our day to day transactions. They're talking about a digital currency that central banks would use to settle international payments. But within those countries that are doing the trading, their regular currency would still be the norm.
If only one currency is used in international settlements, the country that can print that currency benefits greatly at the expense of everyone else. That's the situation now with the American dollar. The creation of Central Bank Digital Currency however is under no country's control. Those nations that choose to use it would not be able to influence how much of it there is. And so it becomes a neutral form of payment that doesn't penalize or reward any party.
Regarding the day-to-day use of digital currency by us plebes, I would prefer to stay with my national currency. However even so, I have to acknowledge that almost all the money I have is contained in a digital record by a bank. My daily transactions are 98% with a card, not cash. Even crooks use ATM's. So the whole thing is pretty digital already.
In the end, whether you have a piece of your government's fiat money or a digital version of it, you're relying on the same thing in the end: that the government won't dick with your ownership. But they can if they want, is what I'm saying.
Is your national currency owned by the public and housed in public institutions? That's the aim along with the new international system you described well.
Unfortunately, the dogs of war & Biden's controllers in the US weaponized it, instead of respecting that privilege. It will be good riddance when all those billions of newly printed dollars return back to the US economy, which has helped insulate the US from real inflation because of their position of controlling the reserve currency & constant printing.
“Don't expect that once you exploit Russia's weakness, you'll reap dividends forever. Russians always come for their money. And when they come - don't rely on the Jesuit agreements you made them sign. They are not worth the paper they are written on. Therefore, either play fair with the Russians or don't play at all.'' Otto von Bismarck
There’s been an odd failure to question the claims about the dollar being past its sell-by date date even as it trades at lofty levels, including relative to the Euro, renminbi, and rouble. For instance, the dollar is at .93 Euro, well above its 5 five-year low of .82 in January 2020, as in well before the US shock-and-awe sanctions against Russia and ring-leading an asset freeze (EU banks actually hold way more than US banks). As we will discuss below, a new column in the Financial Times describing how other data shows that the dollar’s position is still solid.
We have repeatedly said that even though the dollar is destined to become less important over time by virtue of the US economy becoming a smaller percentage of global GDP. However, it took two world wars for the US to replace pound sterling as the dominant international currency, and that was with the US actively weakening the UK in how America went about assisting Britain’s military.
It's not the price of the dollar versus other currencies but how much it can purchase. When oil is selling for 100 yuan, how much will it be in dollars--200 or more? And there're a few other problems like the depressed commercial real estate sector and its weight around the neck of the banking system. The Overseas Tribute System is ending and we can look at the UK for an example of the USA's future.
Commercial real estate is being pummeled by big increases in vacant office space (major layoffs not only in the tech sector) and mortgage debt exacerbated by the Fed’s exorbitantly high interest rate (supposedly to bring down the inflation rate) which has created a ‘perfect storm’ where huge numbers of commercial properties are underwater (the outstanding mortgage debt exceeds the depressed value of the property). The Fed has recently signaled there will only be one rate adjustment before the end of 2024 even though inflation has slowed significantly- “greedflation” seems to be the biggest driver of increased consumer prices lately. To borrow from the Coen brothers, “There will be blood”.
thanks karl... i am a bit confused over the bank of international settlements involvement in mbridge... as i understand it, bis is a tool that the usa and friends largely control.. is it possible they could take this down at some point?? regarding pepes overview here - i completely agree..
" The world remembers perfectly well that after 2014, the Ukrainian authorities did not repay Russia a sovereign loan in the amount of $ 3 billion with interest. Of course, Kiev then did this by Washington's decision through the hands of the Supreme Court in the UK. But when debts need to be repaid to Washington, there are different "rules", or rather, gangster alignments."
these are gangster rules essentially and europe and other western vassals have completely signed off on them too..
President Putin proposes the Russian Federation's terms for a ceasefire of the SMO and peace with Ukraine. Masterfully lays out the legal, , historical case and the geostrategic context.
Yeah, I’ve just awoken to that meeting. It will follow my report on the Meeting of the Council for Science and Education that occurred yesterday after Putin’s meeting with the scientists. The pace is quickening.
If USD loses its world reserve currency status, it would mean no more infinite cheap borrowing for the US Federal Government, so no more huge budget deficits and trade deficits. That would mean they would either have to cut spending (which would end the empire, most likely) or print more money to cover their deficits (which would mean impoverishing the American population and possible subsequent domestic instability, given many other domestic problems).
Big news! It occurs to me if this departure from the petrodollar had happened 25 years ago, Muammar Gaddafi and Saddam Hussein would be sitting in a sunny spot of their palaces in their nice wheelchairs. I wonder why the US allows this move.
The US 'allows this move' because it has no alternative. The original agreement was attractive to the Saudi clan because the US was hegemonic in west Asia. It no longer is. It cannot force the Saudis to continue, in effect, to underpin the dollar because, if push should come to shove, Iran, China, Russia, the SCO and much else would protect them from US military action.
As Tom Friedman was wont to point out the iron fist of the US military was the backing behind the dollar. It no longer is except in Europe where America's closest allies and best friends are being punished by their master, because all the other 'worms have turned.'
I'm confused, because also came out of BRICS News, and no where has it been confirmed the "agreement" will definitely not be renewed. I smell a rat and do not trust them or the US. The Saudis never joined BRICS as planned in January. Much going on we don't know about yet..
Where'd you get this: "The Saudis never joined BRICS as planned in January"? Lavrov met with Saudi FM Faisal bin Farhan Al Saud on the sidelines of the meeting of BRICS foreign ministers in Nizhny Novgorod. Here's the readout:
"The foreign ministers of the two countries discussed in detail the prospects for the further development of multifaceted Russian-Saudi cooperation. A thorough exchange of views took place on topical issues of the global and regional agenda. They reaffirmed their common position in favour of the need to consolidate collective efforts to ensure an early political and diplomatic settlement of acute crises in the Middle East, including the Palestinian-Israeli conflict." https://mid.ru/ru/foreign_policy/news/1955705/
All part of the globalist one world digital economy. My only concern is if Russia will try to remain sovereign. Did they make a deal to shift the economy to the digital one world to reamin sovereign OR because they want to remain sovereign is this the reason for this war. Many questions.
"...European politicians are made a laughing stock.."
Indeed they are: no countries in the world have more to gain and less to lose in a multipolar world than states like France, Germany and Britain who watch impotently as their cultures, economies, living standards and societies are impoverished by submission to US rule.
It is notorious that European economies have been decimated, eviscerated, by their falling into line behind Washington sacrificing their access to cheap and reliable Eurasian energy sources, not to mention markets and other synergies.
The Belt and Road Initiative was virtually designed to embrace Europe into an Afro-Eurasian bloc substituting internal lines of communication and land based trade routes for the maritime links associated with the imperialist system. Defying all logic Europe's rulers have withdrawn from their initial embrace of the BRI not because it would not bring prosperity and peace to their peoples but because the US ordered otherwise.
Such conjunctures arise rarely, opportunities missed tend to disappear.
It begs the (unapologetically ’redneck’) question - “why do they wanna piss their own cheerios??”
There's some excellent information there, which I think everyone should be aware of. Thanks Karl!
Under the present global circumstances, Saudi Arabia would be stupid to tie their oil to the American dollar. And they won't, if things go according to this article. Naturally the other Gulf states will follow suit. Iran works outside the US$ already. This isn't an attack on the USA, it's just business. But it is going to have a seriously negative impact on the US economy and those countries that are dependent on it. (My own being one of them.)
As far as international trade goes, be it for oil or anything else, it should be in whatever currency or currencies that the parties agree to. This is a long overdue change that will help the developing world.
Which segues nicely into the CBDC tectonic shift. No one nation or group of nations should control the flow of international money exchanges. The mechanism that supports international transactions should be completely neutral and impervious to pressure by countries that would try to exploit it. (Which at present they do with SWIFT.) If China, Russia, Saudi Arabia can get such a payment system up and running, I expect every country in the world would want to use it - except for the USA and its dependent vassals.
I don't want to be on CBDC. I also think it wrong for the USA to abuse their currency as the rule was if you are the international currency you are not supposed to weaponize it. We have to keep an eye on this as far as the one world/WEF kooks go. I am sure they are in the middle of this. CBDC will be a token of control and forced behavior by the likes of Larry Fink etc.
As I understand the concept, they're not talking about a digital currency that you and I would use in our day to day transactions. They're talking about a digital currency that central banks would use to settle international payments. But within those countries that are doing the trading, their regular currency would still be the norm.
If only one currency is used in international settlements, the country that can print that currency benefits greatly at the expense of everyone else. That's the situation now with the American dollar. The creation of Central Bank Digital Currency however is under no country's control. Those nations that choose to use it would not be able to influence how much of it there is. And so it becomes a neutral form of payment that doesn't penalize or reward any party.
Regarding the day-to-day use of digital currency by us plebes, I would prefer to stay with my national currency. However even so, I have to acknowledge that almost all the money I have is contained in a digital record by a bank. My daily transactions are 98% with a card, not cash. Even crooks use ATM's. So the whole thing is pretty digital already.
In the end, whether you have a piece of your government's fiat money or a digital version of it, you're relying on the same thing in the end: that the government won't dick with your ownership. But they can if they want, is what I'm saying.
Is your national currency owned by the public and housed in public institutions? That's the aim along with the new international system you described well.
Unfortunately, the dogs of war & Biden's controllers in the US weaponized it, instead of respecting that privilege. It will be good riddance when all those billions of newly printed dollars return back to the US economy, which has helped insulate the US from real inflation because of their position of controlling the reserve currency & constant printing.
“Don't expect that once you exploit Russia's weakness, you'll reap dividends forever. Russians always come for their money. And when they come - don't rely on the Jesuit agreements you made them sign. They are not worth the paper they are written on. Therefore, either play fair with the Russians or don't play at all.'' Otto von Bismarck
Counterpoint on the "Dollar"
Yves Smith worth reading .....
“Dollar Doomsters Have Got It All Wrong”
Posted on June 13, 2024 by Yves Smith
There’s been an odd failure to question the claims about the dollar being past its sell-by date date even as it trades at lofty levels, including relative to the Euro, renminbi, and rouble. For instance, the dollar is at .93 Euro, well above its 5 five-year low of .82 in January 2020, as in well before the US shock-and-awe sanctions against Russia and ring-leading an asset freeze (EU banks actually hold way more than US banks). As we will discuss below, a new column in the Financial Times describing how other data shows that the dollar’s position is still solid.
We have repeatedly said that even though the dollar is destined to become less important over time by virtue of the US economy becoming a smaller percentage of global GDP. However, it took two world wars for the US to replace pound sterling as the dominant international currency, and that was with the US actively weakening the UK in how America went about assisting Britain’s military.
Read on:
https://www.nakedcapitalism.com/2024/06/dollar-doomsters-have-got-it-all-wrong.html
It's not the price of the dollar versus other currencies but how much it can purchase. When oil is selling for 100 yuan, how much will it be in dollars--200 or more? And there're a few other problems like the depressed commercial real estate sector and its weight around the neck of the banking system. The Overseas Tribute System is ending and we can look at the UK for an example of the USA's future.
Commercial real estate is being pummeled by big increases in vacant office space (major layoffs not only in the tech sector) and mortgage debt exacerbated by the Fed’s exorbitantly high interest rate (supposedly to bring down the inflation rate) which has created a ‘perfect storm’ where huge numbers of commercial properties are underwater (the outstanding mortgage debt exceeds the depressed value of the property). The Fed has recently signaled there will only be one rate adjustment before the end of 2024 even though inflation has slowed significantly- “greedflation” seems to be the biggest driver of increased consumer prices lately. To borrow from the Coen brothers, “There will be blood”.
I have also covered the end of the petrodollar and the rise of the BRICS bridge, as well as the raging economic war between the West and Russia, in my latest article here: https://geopolitiq.substack.com/p/economic-wars-the-end-of-the-petrodollar?r=25fc37
The end of the hegemony of the decrepit Outlaw US Empire is approaching faster and faster!
thanks karl... i am a bit confused over the bank of international settlements involvement in mbridge... as i understand it, bis is a tool that the usa and friends largely control.. is it possible they could take this down at some point?? regarding pepes overview here - i completely agree..
" The world remembers perfectly well that after 2014, the Ukrainian authorities did not repay Russia a sovereign loan in the amount of $ 3 billion with interest. Of course, Kiev then did this by Washington's decision through the hands of the Supreme Court in the UK. But when debts need to be repaid to Washington, there are different "rules", or rather, gangster alignments."
these are gangster rules essentially and europe and other western vassals have completely signed off on them too..
Nazis were gangsters, Yes?
and we know who are supporting the present day nazis too, don't we?
Karl,
I'm sure you're on to this already:
Transcript of Meeting (of President Putin) with the leadership of the Russian Foreign Ministry... via Kremlin.ru, in russian.
http://kremlin.ru/events/president/transcripts/74285
President Putin proposes the Russian Federation's terms for a ceasefire of the SMO and peace with Ukraine. Masterfully lays out the legal, , historical case and the geostrategic context.
Kind regards,
Andrew Celestina
Yeah, I’ve just awoken to that meeting. It will follow my report on the Meeting of the Council for Science and Education that occurred yesterday after Putin’s meeting with the scientists. The pace is quickening.
"This is either madness or some kind of money laundering fraud."
'Nuff said.
On the impacts of de-dollarization I recommend these three articles by Paul Craig Roberts.
https://www.unz.com/proberts/the-us-dollar-is-finished/
https://www.unz.com/mwhitney/doomsday-for-the-buck-a-reserve-currency-is-no-longer-needed/
https://www.unz.com/proberts/the-real-debt-problem/
If USD loses its world reserve currency status, it would mean no more infinite cheap borrowing for the US Federal Government, so no more huge budget deficits and trade deficits. That would mean they would either have to cut spending (which would end the empire, most likely) or print more money to cover their deficits (which would mean impoverishing the American population and possible subsequent domestic instability, given many other domestic problems).
Big news! It occurs to me if this departure from the petrodollar had happened 25 years ago, Muammar Gaddafi and Saddam Hussein would be sitting in a sunny spot of their palaces in their nice wheelchairs. I wonder why the US allows this move.
The US 'allows this move' because it has no alternative. The original agreement was attractive to the Saudi clan because the US was hegemonic in west Asia. It no longer is. It cannot force the Saudis to continue, in effect, to underpin the dollar because, if push should come to shove, Iran, China, Russia, the SCO and much else would protect them from US military action.
As Tom Friedman was wont to point out the iron fist of the US military was the backing behind the dollar. It no longer is except in Europe where America's closest allies and best friends are being punished by their master, because all the other 'worms have turned.'
Yes! The equation has changed.
I'm confused, because also came out of BRICS News, and no where has it been confirmed the "agreement" will definitely not be renewed. I smell a rat and do not trust them or the US. The Saudis never joined BRICS as planned in January. Much going on we don't know about yet..
Where'd you get this: "The Saudis never joined BRICS as planned in January"? Lavrov met with Saudi FM Faisal bin Farhan Al Saud on the sidelines of the meeting of BRICS foreign ministers in Nizhny Novgorod. Here's the readout:
"The foreign ministers of the two countries discussed in detail the prospects for the further development of multifaceted Russian-Saudi cooperation. A thorough exchange of views took place on topical issues of the global and regional agenda. They reaffirmed their common position in favour of the need to consolidate collective efforts to ensure an early political and diplomatic settlement of acute crises in the Middle East, including the Palestinian-Israeli conflict." https://mid.ru/ru/foreign_policy/news/1955705/
All part of the globalist one world digital economy. My only concern is if Russia will try to remain sovereign. Did they make a deal to shift the economy to the digital one world to reamin sovereign OR because they want to remain sovereign is this the reason for this war. Many questions.