Britain Announces Joint Russia/China/India Development Bank Venture: US Freaks Out

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The US has become quite addicted to all the world trade flowing to the US while we pay for this via a massive mountain of trillions in debts.  Few people know this but ‘dollars’ and any paper money are actually DEBT promises.  Way back before the Great Depression, all paper money printed in the US had words to this sort, that first, paper money can be handed over for gold and then later, silver.  Then this was dumped after Nixon cut the metal connection to paper money and debt took off like a rocket.  As did inflation which the government fixed via letting in a flood of foreign exports which drove down prices somewhat.

 

Britain says in ‘national interest’ to join China-backed bank  because London is the banking center of the world and the Queen runs many offshore banks at various islands that swear fealty to her and the government of London, not the ‘country’ of Britain.   Immediately, the Obama administration hits out at UK after Britain signs up to $50bn Beijing bank :

 

But the Financial Times has quoted a US administration source as saying Britain took its decision after showing ‘virtually no consultation with the US’ and as G7 was still discussing how to approach the new bank.The source said: ‘We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power.’

 

The Financial Times reports that the comments are an apparent breach of the ‘special relationship’ between Britain and America.

 

It reports that relations between David Cameron’s government and Washington were already strained amid concerns over the level of Britain’s defence spending.Twenty-one other governments including India, New Zealand and Thailand have said they want to join the new bank.

 

The State Department is highly aware of the Chinese 50 Year Plan because I told them all about it way back in the Reagan era.  This is why the US hot shots in DC are all in a lather, they ceased reading me years ago out of arrogance (the Elaine is very stupid storyline has a downside!) and I warned everyone 8 years ago that the time schedule is roaring way ahead of expectations and that the Chinese, back then, crossed the trillion dollar FOREX reserve threshold meant they now have enough power to control the value of the dollar to the point, they can destroy it at any time they choose.

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Money Matters: China Wonders How To Invest The World’s Biggest FOREX Fund

This scary information has been concealed from the public and the Federal Reserve doesn’t mention the fact that $4-5 trillion held overseas by foreign bankers is a very bad thing, instead they lie about this and claim this makes America Stronger!  Indeed!

 

Nothing sillier has ever been said by bankers and they say many silly things.  During the run up to China’s rise, the price of gold has stagnated or fallen.  This is because gold is not needed for destroying the US dollar so why buy lots of it, the Chinese thought.  Unlike India which beefed up on gold for a while before the government began taxing the purchase of gold and way back when, I warned gold buyers that they were in for a very long bear market when this happened which caused a number of people to cuss me out and storm off to lose money betting that gold would shoot upwards. Sad cases, all of them.

 

The Chinese, once I explained how banking works with international trade way back in 1987 when the officials lived with me in New Jersey thanks to an arrangement my father made in Beijing with the communist leaders there, the students were very excited and one of them who ended up running Shanghai’s trade commission yelled, ‘I be bank!’ meaning, using trade with the US that would be entirely in China’s favor would mean he would also end up controlling our central bank this way!  Easy to understand and utterly murky to the average economics professor in the US.

 

Putin knows the importance of this bank and how it will change trade:  China’s Silk Road initiative promises gains for Russia and India…

 

The initiative has three components: linking India, Bangladesh, Myanmar and China; linking China’s western part through the Karakoram Range to Pakistan’s port with possible extension to further West; and linking China’s eastern part to countries through a sea route. These routes are to be connected to the old network of routes called the Silk Road. The benefits will be mainly three-fold. It will foster regional economic integration. It will help develop infrastructure for the flow of energy. It will also help develop coordination among participating countries to fight religious extremism and terrorism. Other benefits include promotion of tourism, coordination for environmental protection.
Once this initiative takes a concrete shape, it will help India to have access to Russia through the Central Asian region. It will also help move the idea of North-South corridor from Russia to India in a positive direction.

 

India is cut off from territories to the north due to the Himalayan Mountains.  Penned in on the flatlands side by Pakistan, the initiative between Russia and China that includes India would open up trade greatly between the three with Russia being the Land of Plenty of Natural Resources for both Asian nations.  Russia used to have to aim almost all its trade to the EU but won’t much longer.  The EU sanctions simply moved up the timescale by about a dozen years.  The Chinese were quite delighted when Europe strangled its very important trade partner, namely, its source of cheap energy and other resources.

 

There is nothing the US can do to stop the UK from jumping the traces and running off with the Russia/China/India troika that will race across Asia.

 


sunset borger

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24 Comments

Filed under .money matters

24 responses to “Britain Announces Joint Russia/China/India Development Bank Venture: US Freaks Out

  1. Petruchio

    When Nixon “de-pegged” the US dollar to gold, EVERY nation that held physical gold in the USA, whether in the Federal Reserve’s vaults or at Fort Knox should have demanded their gold back. Only the French, to my knowledge actually did. They were told NO. This tells you all you need to know. Looting every nation stupid enough to trust the Fed to honor their promise regarding repatriating gold was the plan all along.

  2. emsnews

    Yup. I remember that day, Nixon and Burns chose a weekend to do the dirty work. No one could respond by moving money around unlike today with the 24/7 system that now exists.

  3. nclaughlin

    Nixon prioritized the Vietnam War over the health of the economy. The consensus to continue the war was fragile and would not have been able to withstand the necessary economic steps to pay for it. At it turns out, we lost both.

  4. melponeme_k

    That special relationship nonsense always made me laugh. We kicked those buggers out of the country. There is no relationship except the ones the elites fostered through greed. And really…who wants to be allied with a populace who doesn’t have enough sense to get rid of those family of leaches sucking their country’s life blood dry.

  5. Christian W

    ‘We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power.’

    No, we know! The only power that needs to be accommodated AT ALL TIMES is the “indispensable” US! How DARE anyone threaten the enforced world order? Oo

  6. aashild

    @Christian

    On the world stage, The US behaves like a spoiled brat, believing they are the centre of the universe.

  7. Christian W

    A very, very murderous and dangerous spoiled brat at that. The hood gangsta of the world.

  8. Ken

    So help me out here. Oil is getting hammered in part because the dollar is so strong. The low price of oil is hurting the Russians, who export a lot of energy. Russia is sitting on a ton of dollars (though not as much as the Chinese), and they could dump them whenever they wanted and seriously harm (maybe destroy) the dollar. If that happens, the US dollar goes down, oil goes up, and Russia is better off. What are they waiting for?

  9. emsnews

    Russia and China are now in an alliance and talk all the time with each other. Russia waits for the signal from China. China is EXTREMELY angry about Japan’s fascist warmongering and territorial demands backed by the US.

    So it will explode when China decides this is the best time.

  10. CK

    It is checkers versus Go.

  11. Christian W

    The low oil price is not all that bad for Russia. It is worse for the US as it is killing off the domestic oil industry that surged with the high oil price, maybe the only real green shoot in the US economy in recent years. Also a strong dollar is bad for US exports.

    Russia is not dumping dollars because the US has declared that any such dollar dump, by any nation, will be seen as hostile, as an outright act of war against the US. The US will react accordingly. (Iraq and Libya stopped using the USD system and both were destroyed by the US. Saddam Hussein and Ghaddafi were both Hitlers according to US propaganda, the same refrain is now played about Putin, with the addition that Putin is also Stalin).

    Now the main thing for Russia is to avoid war with the US. The Russians know that the US economy is completely fake and only kept together by US machinations (FED manipulation), US global enforcement (preventing other nations from getting out of the USD system) and systemic inertia (no other system has yet become a genuine alternative).

    With time all of that will change. China, Russia and many nations in Asia and Latin America are frantically working to create that system and free themselves from US dictatorship. The US is equally frantically working to overthrow those foreign governments to prevent them from doing exactly that. For that purpose the US just declared Venezuela an existential threat to the US, for example, which is of course utterly ridiculous but makes sense if you see Venezuela as one of your slaves about to break free, which the US does.

    The last thing on earth the US wants to see are free governments outside of it’s control, free to choose and act as they see fit according to their own interests (ie not slaves to the USD system).

    Russia knows this, the US knows this. The US is trying to overthrow the Russian government and install a puppet government in Russia. Russia knows this, the US knows this. The key question is time, will Russia manage to break free before the US succeeds in it’s political and financial attack, or before the US launches it’s full military attack (WWII)?

    Everybody knows the US is a deranged bully. Even the Brits just hedged their bets by joining up with the Chinese and Russia as Elaine describes above.

    The best thing for everyone, including the US, would be for a quiet, sane and smooth transition to take place but as it happens the US is a psychopathic bully who simply must “win” at all costs and all times. The US will not “go quietly into the good night”, it will not take the sane option. The US leaders are quite insane, to a man/woman at this point, a gallery of narcissists, psychopaths and sociopaths, and they will create war, war more war and as much misery they can before their precious “system” crashes around their ears.

  12. e sutton

    Christian W, you sum it up very well. The only absolute certainty is that the U.S. will be destroyed. The biggest question in my opinion, beyond when, is will we take 98% of the Earth’s inhabitants with it. The Jews who are behind this mess never, ever seem to learn from their past mistakes. Ever.

  13. Christian W

    The Jews are a fantastic people, warm, talented, gifted, highly intelligent, fantastic musicians and artists, “echt Menschen” in the best meaning. Unfortunately that also means when they are “bad” (ie in their shadow side eg Zionist/Shylock side) they are equally dreadful, which says something.

    Sometimes I see the US as this weird experiment by God. What would happen if you took all the world’s best and most talented Snake Oil Salesmen and let them run an entire continent for 200 years or so. The entire political, financial and business models of the US has over time become geared to promoting and rewarding psychopathy and narcissism. This is very scary.

    The US is not only run by the Jews (even if they dominate the FED, Wall Street and Washington today). There is also the North European efficiency and engineering side (as seen when the North won the Civil War, today the Pentagon) combined with the English back room deal culture and divide and conquer politics (Washington DC). And all of this fed by a relentless drive for profit. What a combination.

    God knows the nations in the rest of the world (all over the world) have screwed themselves, and each other up, over and over again, so there is no ‘schadenfreude’ in my comment whatsoever. Probably it is just a human trait. I simply hope all of us live to see better days and that the crazies don’t blow the planet up.

  14. Seraphim

    @ when they are “bad” they are equally dreadful, which says something.

    Corruptio optimi pessima est (excuse my French!). When they are bad they are not equally dreadful, they are worse.

  15. Christian W

    Yeah, “pardon” my sloppy English🙂. I’m too quick to hit the send button…

  16. joseppi

    All of us, when we hold and exchange a dollar must be cognizant of the fact, that Elaine pointed out, that this green paper represents someone in debt. That someone is all citizens of the US who are the collateral for the US Treasury/FED to issue trillions of paper/electronic debt.

    In the present monetary system, credit and debt are inextricably linked. Credit is conceptually conjured up by the elite of the monetary system, which enters the system as debt masquerading as money, while real capital has migrated to the rich to be hidden.

    Those who argue that it’s the US military that guarantees the US dollar reserve currency system, hopefully, are living in the past. The main combatants in the currency war, all are nuclear powers, which checkmates the nuclear threat.

    If we Google “How much gold is China importing” we see that besides Russia and India, China is importing large quantities of gold. In an attempt to de-link gold as international money, the price of gold has been suppressed by the western banking system, which is enabling physical gold to flow to east. Does this fact mean anything in the next phase in the break down of the US dollar reserve system?

    Elaine, an important question is, at least to those gold-bug fantasists, in the future, will the value of money be connected to something tangible and real, or will value be an arbitrary concept mutually accepted by the international community?

  17. CK

    Today, Germany announced that it is joining the AIIB. France and Italy had previously announced their memberships.
    The bank’s creation announcement was one year ago.
    It is a serious start to reducing $$ hegemony.
    The Silk Road project, the Maritime Silk Road project, The Asian Infrastructure Investment Bank, Ali Baba becoming an internationally traded public company, we are living in interesting times. Profitable and interesting outside the USA.

  18. emsnews

    Merkel is seriously changing direction now that Germany has had its balls squeezed.

  19. Christian W

    It simply makes NO sense for Germany to see the Russian and Chinese economies destroyed simply to appease American and Zionist Supremacists.

    The German economy is export based. The US economy has stalled as the US consumer is becoming poorer and poorer by the day and consequently German exports to the US, previously the number one market, have become less important. However the growth in the Russian and Chinese markets is the future of German prosperity. Destruction of those economies means the destruction of the German economy.

    The only people in whose interest it is to destroy Russia and China are the rulers of the US MIC, Wall Street, London City and Jewish supremacists who want to rule the Middle East and the world through their military, financial and media empires. The majority of US citizens do not benefit from these wars in the slightest.

  20. CK

    New Zealand had joined earlier ( I was unaware of that until just now) Australia intends to join. That is three of the five eyes countries as members, the current USA will not be invited, that leaves Canada for consideration. Canada does have an Asiatic interest and is becoming the lodestone for Chinese immigration.
    And then there is the BRICS development bank. The BRICS are the southward prong of the changing of the guard. Brazil Russia India China Union of South Africa are the founders and they have a functioning development bank that offers a choice against the World Bank and the IMF.
    When these nations develop two things they will be able to bypass American financial hegemony. The world needs an alternative to SWIFT
    http://www.swift.com/index.page?lang=en
    the system over which all international financial data flows. The threat to refuse to carry a countries trade information is huge. Sanctions proposed against Russia involve removing its access to SWIFT.
    And with an unbuggered system replacing SWIFT, they will need to develop a substitute for the Bank for International Settlements.
    Alternatives for the American dominated and controlled SWIFT, World Bank, IMF and BIS along with the Yuan becoming an alternative reserve currency; interesting times. It is to be hoped that these alternative institutions will be very very wary in their staffing to forbid an intellectually hostile minority from assuming any decision making positions.

  21. emsnews

    Yes, this utterly destroys the push to destroy Russia’s banking system.

    And…I PREDICTED THIS. I said China would never let this happen to Russia and that Russia and China together have the biggest FOREX funds on earth not to mention gold.

    Insane plot by the neocons.

  22. Lou

    so what happens?

  23. Jim R

    What happens is, the Dollar and the Euro gradually become less relevant. When the Ruble and the Renminbi are defacto world currencies, the Dollar will gradually come to resemble the Argentine Peso.

    It doesn’t mean the Dollar will be worthless, but it does mean that its value may be set in other precincts than Washington and New York.

  24. CK

    @Lou
    SWIFT is private internet for the world’s banks to settle trades and verify transactions. Other than by the NSA, The FSB, The Chinese Intelligence agency, MI 4,5, and 6, the Duxieme bureau, the Abwenr and Mossad; it is believed to be unhacked. Admittance can be denied by the private owners if they are pressured enough.
    It is a monopoly. Any monopoly is by definition a single point of systemic failure waiting to happen. Should it occur that Anonymous or some other collective of computer “freedom fighters” decided to take down SWIFT… or some nation believing that it’s independent existence was threatened. World trade would halt within hours. The USA is completely dependent on trade flows from other nations for food, transport, technology, just about everything you can name except coal and the bloviations of politicians.
    Single points of failure are always targeted.
    The internet was designed the way it was originally so that it had no single point of failure. Smart at the edges dumb at the center. The telephone system, which as a Bell monopoly was a potential single point of failure in the early Cold War years was designed with brains and smarts at the switching centers and stupid telephones at the edges.
    The Darpanet could route around damage while the Bell System could not.
    SWIFT cannot route around the USA.

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