Sep 012014
 

Zero Hedge: “UK Prime Minister David Cameron came out swinging this morning; not only at ISIS but in calling for European leaders to block Russia from the SWIFT banking transaction system. European leaders have already (via unnamed sources) denied any actual new sanctions will take place (though they will be discussing them at the NATO Summit) but – as we have noted previously – this is yet another unintended consequence-driven nail in the coffin of USD hegemony

The U.K. will press European Union leaders to consider blocking Russian access to the SWIFT banking transaction system under an expansion of sanctions over the conflict in Ukraine, a British government official said.

The Society for Worldwide Interbank Financial Telecommunication, known as SWIFT, is one of Russia’s main connections to the international financial system. Prime Minister David Cameron’s government plans to put the topic on the agenda for a meeting of EU leaders in Brussels Aug. 30, according to the official, who asked not to be named…

“Blocking Russia from the SWIFT system would be a very serious escalation in sanctions against Russia and would most certainly result in equally tough retaliatory actions by Russia,” said Chris Weafer, a senior partner at Moscow-based consulting firm Macro Advisory. “An exclusion from SWIFT would not block major trade deals but would cause problems in cross-border banking and that would disrupt trade flows.”

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Opinion: Possible escalating sanctions is one more reason why Russia is in the process, along with China and the rest of the BRICS (Brazil, Russia, India, China and South Africa) nations, of de-dollarizing trade.

Energy, or lack of it, is the Achilles heel of the European Union and Russia’s weapon.

Excerpts from our (fiction) Chapter 12, Antichrist: The Search For Amalek:

“At 10:00 a.m. New York time, China announced an expansion of its 2013 currency swaps with Australia and Brazil that would now also extend to the EU, Japan, India, and Russia. The transactions were meant to bypass the US dollar in purchasing global commodities and to bring in the Chinese renminbi as the new world reserve currency.

The G8 was fed up with a lack of US fiscal discipline, and with oil at 150 dollars per barrel, something had to be done. Global equity markets cratered again as gold rallied past three thousand dollars. Startled nations began selling Treasury bonds, driving up interest rates.”

I speculated that the fall of the US dollar as world reserve currency would take place after the rapture of the Church and shortly after the beginning of the 7 year tribulation period, since the event would be of apocalyptic proportions to the world’s largest economy.

There is an old Wall Street adage ‘when America gets a head cold the world gets pneumonia.’

 

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Aug 302014
 

Zero Hedge: “Several months ago, when Russia announced the much anticipated “Holy Grail” energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar’s stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative.

This changed in late June when first Gazprom’s CFO announced the gas giant was ready to settle China contracts in Yuan or Rubles, and at the same time the People’s Bank of China announced that its Assistant Governor Jin Qi and Russian central bank Deputy Chairman Dmitry Skobelkin held a meeting in which they discussed cooperating on project and trade financing using local currencies. The meeting discussed cooperation in bank card, insurance and financial supervision sectors.

And yet, while both sides declared their operational readiness and eagerness to bypass the dollar entirely, such plans remained purely in the arena of monetary foreplay and the long awaited first shot across the Petrodollar bow was absent.”

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Opinion: What is the Petro dollar?

In 1971 Richard Nixon was forced to close the gold window, taking the U.S. off the gold standard and setting into motion a massive devaluation of the U.S. dollar. In an effort to prop up the value of the dollar, Nixon negotiated a deal with Saudi Arabia that in exchange for arms and protection they would denominate all future oil sales in U.S. dollars. Subsequently, the other OPEC countries agreed to similar deals thus ensuring a global demand for U.S. dollars and allowing the U.S. to export some of its inflation.

Since these dollars did not circulate within the country they were not part of the normal money supply. Economists felt another word was necessary to describe the dollars received by petroleum exporting countries (OPEC) in exchange for oil, so the term petrodollar was coined by Georgetown University economics professor, Ibrahim Oweiss.

Because the United States was the largest producer and consumer of oil in the world, the world oil market had been priced in US dollars since the end of World War II.

Russia’s Gazprom was exempt from US/EU sanctions imposed on Putin’s Russia principally because the EU gets 30% of its natural gas from the Russian company.

With Gazprom’s moves to accept payment in euros and yuan (renminbi), 90% of Gazprom clients have “de-dollarized”, setting the stage for the day it finally would push the button to skip the dollar entirely. Which it just did.

The move away from the dollar as world reserve currency is not an overnight event but like a glacier, the move to replace the greenback is slow and powerful.

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Aug 142014
 

Stratrisks: ‘”EU ambassadors, holding an extraordinary meeting to discuss the crises in Iraq, Ukraine and Gaza, gave the green light for individual governments to send arms under set conditions.”

Vason’s Opinion: Let me see if I can keep this straight in one really big run-on sentence: We’re going to heavily arm the Kurds (Medes) so they can fight ISIS who we covertly armed while they were in Syria in order to fight a proxy war with Iran which then spilled over into Iraq when ISIS decided to take over Iraq to transform it into an Islamic Caliphate and then apparently stole the arms we gave to Iraq which we’re now bombing  and the only thing we know for sure with these groups is that the Kurds (Medes) will one day use these arms, which is primarily being used to quash an Islamic Caliphate from forming, against Israel so they can wipe out the Jew and form an Islamic Caliphate?

Our planners can’t keep this straight:

 

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Aug 132014
 
Ukraine Is Now Wide Open To Invasion

The Daily Beast: “For the last few days all media attention on the Ukrainian crisis has been focused on two topics: the advances made by Ukrainian forces around the city of Donetsk and, more worryingly, the threat of Russian invasion under the guise of “humanitarian intervention.” What has not been discussed anywhere near as much

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Jul 302014
 
President Obama To Explain How These New-New Sanctions Will Really Make Putin Mad

Zero Hedge: “We are sure President Obama must be happy that the European leaders finally stepped in behind him and layered in new goldilocks sanctions on Russia. With business leaders on both sides of the Atlantic urging him not to, for fear of the dreaded ‘boomerang’ from Putin (which has already been targeted at MSFT, IBM,

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Jul 282014
 
US Releases Satellite Images Allegedly Proving Russian Shelling Of East Ukraine

Zero Hedge: “A week after Russia revealed photos of Ukraine deploying Buk missiles in the east as well as radar proof of Ukraine warplanes in the vicinity of MH-17, the US has yet to present any of the incontrovertible evidence supposedly in its possession that proves it was the separatists who shot down the plane,

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Jul 222014
 
West Fails To Answer Threats To Its Very Existence

Investors Business Daily Op-Ed: “The downing of Malaysia Flight 17 casts new light on just how inept and decadent the United States and Europe have become. Faced with Russia’s annexation of Crimea and attempts to repeat in eastern Ukraine, the best Western Europe and the U.S. have mustered are strong words and token sanctions on top

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