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RUSSIA: A New Financial System INDEPENDENT From Wall Street

Thursday, April 3, 2014
The 4th Media News

Putin Flushes the US Dollar: Russia’s Gold Ruble Payments System Delinked from Dollar?

A New Financial System independent from Wall Street and City of London begins to take shape concretely in Russia?

Russia “forced” by the sanctions to create a currency system which is independent from the US dollar.

Russia announces that it will sell (and buy) products and commodities – including oil – in rubles rather than in dollars. The move is towards the development of bilateral.

Putin has been preparing this move — the creation of a payment system in rubles completely independent and protected from the Dollar and the “killer speculations” (e.g. short-selling) of the big Western financial institutions — for a long time.

After sanctioning several Russian banks to punish Russia for Crimea, the Washington politicians were told by the financial power-to-be to step back because obviously, the Wall Street vampires understand that putting Russian banks outside the reach of their blood sucking teeth is never a good idea.

For Wall Street and the city’s financial services, countries like Russia should always have an open financial door through which their real economy can be periodically looted.

So Washington announced that it was a mistake to enforce sanctions on all Russian banks; only one, the Rossiya bank shall be hit by sanctions, just for propaganda reasons and to make an example out of it.

It is what Putin needed. Since at least 2007, he was trying to launch an independent Ruble System, a financial system that would be based on Russia’s real economy and resources and guaranteed by its gold reserves.

No tolerance for looting and financial speculation: A peaceful move, but at the same time a declaration of independence that Wall Street will consider as a “declaration of war”.

According to the Judo strategy, the sanction attack created the ideal situation for a “defensive” move that would redirect the brute force of the adversary against him.

And now it’s happening. Bank Rossiya will be the first Russian bank to use exclusively the Russian ruble.

The move has not been done in secret. On the contrary. A huge golden ruble symbol will be set up in front of bank Rossiya headquarters in Perevedensky Pereulok in Moscow “to symbolize the ruble’s stability and its backing by the country’s gold reserves,” the official agency Itar-Tass explains quoting the bank officials.

In fact, the officials  are very clear on their intention to punish the western speculators that have been looting their country for a long time:

“Russia, at its present stage of development, should not be dependent on foreign currencies; its internal resources will make its own economy invulnerable to political wheeler dealers.”

This is only the first step, declared Andrei Kostin, the president of VTB, another bank previously sanctioned:

“We have been moving towards wider use of the Russian rouble as the currency of settlement for a long time. The ruble became fully convertible quite a long time ago.

Unfortunately, we have seen predominantly negative consequences of this step so far revealed in the outflow of capital from this country. The influx of foreign investments into Russia has been speculative and considerably destabilizing to our stock markets.”

According to Itar-Tass, Kostin was very precise and concrete:

“Russia should sell domestic products – from weapons to gas and oil – abroad for roubles and buy foreign goods also for rubles….Only then are we going to use the advantages of the rouble being a foreign currency in full measure.”

Putin himself lobbied for the new siystem in meetings with members of the Upper House of the Duma, the parliament, on March 28, overcoming the last doubts and indecisions:“

“Why do we not do this? This definitely should be done, we need to protect our interests, and we will do it. These systems work, and work very successfully in such countries as Japan and China. They originally started as exclusively national [systems] confined to their own market and territory and their own population, but have gradually become more and more popular…”

Alea Iacta Est!

By Umberto Pascali, Information Clearing House

Source

After Hegemony: America’s Global Exit Strategy

http://socioecohistory.files.wordpress.com/2011/01/dollar-is-toast.png?w=400&h=290

14 Dec 2012
By Kenneth Weisbrode

What will America look like in a post-American world? The National Intelligence Council, with its just-released Global 2030 forecast, has become the latest voice to join the chorus of those who see U.S. hegemony giving way to a leading but less-dominant position. It is worth considering what the loss of hegemony is likely to mean for America in terms of its trade, influence, reach and voice in international forums. What impact will these and any other consequences have on the way America engages with the world, as well as on its ability to provide the kinds of leadership that make it a hegemon? And how will all this affect the ways Americans live?

Examinations of hegemonic decline have historically focused on the world beyond the imperial center. The barbarian invaders get most of the glory and attention, with the subjects of historical empires who lived in what is called the “metropole,” that is, the imperial center or “homeland,” as understudied as the nature of these places following a hegemonic collapse. In fact, the fate of some more-recent metropoles has been relatively positive over the long run. Austria, Turkey, Britain and even Russia continue to survive as viable countries. Some of them even thrive and may offer useful lessons. Austria, for example, is a small, prosperous, secure and mainly conservative imperial successor state. So is Japan. The question is how Americans will cope with such a changed condition.

A loss of hegemony generally means a loss of access to markets and resources. In the case of the U.S., that would include the loss of global reserve status for the dollar, with implications for trade, government borrowing and interest rates. It will cost Americans more to get what they want, and, at the same time, they will have less to spend. As a result, they will have to do much more to live within their means.

This will make it more difficult to influence or even inspire other societies to follow America’s lead, but it won’t be impossible. Elements of the American character — creativity, pragmatism, adaptability — may continue to serve the country and other nations well, if under different circumstances. Adjusting to those changed circumstances will require a more collaborative and empathetic approach to the way Americans interact with the world.

Speculating about the American future in these circumstances requires a more precise understanding of the effect that global hegemony has already had on the United States and the global system. From the country’s founding to the peak of the industrial era,  some Americans went out of their way to abjure the idea and the reality of hegemony, deliberately eschewing international engagement in the name of what was later called exceptionalism. In the 20th century others did the reverse, also in the name of exceptionalism. Now, in the 21st century,  Americans seem to be doing both at the same time, while coping with ever more serious challenges at home and abroad.

These challenges will likely be exacerbated by a loss of hegemony. At home, it is likely to be accompanied by a decline in prosperity, with potential implications for domestic civility. The proportion of Americans who now live in poverty, currently at 15 percent, will probably increase. National cohesiveness may deteriorate when Americans realize that the cultural, ideological and economic foundations of national “success” are actually much weaker than they imagined.

Abroad, it will further constrain the effectiveness of America’s military as a tool for advancing American interests. America’s relative decline has already nurtured the increasingly widespread perception that the use of American military power limits American influence over the long term. Whereas hard power underwrote soft power — and sometimes vice versa — during America’s hegemonic rise, during its fall the two appear to be at cross-purposes. This reversal is consistent with much of the history of imperial decline.

How will Americans respond to such a world, in which U.S. influence, already limited, is no longer advanced by its military dominance? And if it is true that, as Henry Kissinger said recently, America will remain powerful but not hegemonic, how do you preserve one while losing the other? Will Americans, and the rest of the world, be content with an Austrian or Japanese future for the U.S.? That is hard to imagine. But the alternatives, perpetual empire and national disintegration, are too awful to contemplate.

If today’s preoccupation with decline is any indication, some Americans are in search of something like a grand global exit strategy. It may be better to imagine instead a post-hegemonic condition that retains some of the fruits of American exceptionalism — namely the exportability of its culture and technology — while multiplying the incentives, both domestic and foreign, against the frequent use of military power and other heavy forms of coercion. Time may be running out to shape these two goals in unison.

It is difficult to say what this will mean in practice. Making the world safe for a hegemonic retreat has always been, to some extent, a fantasy: a pre-emptive concession that is too clever by half. Even America cannot dictate the world’s reaction, least of all that of its adversaries and challengers. There also is no fixed or predictable pattern of retreat. Sometimes imperial states, even hegemons, simply just disappear, leaving only the successor states behind.

Kenneth Weisbrode is a diplomatic historian at the European University Institute and author of “The Atlantic Century” (Da Capo).

Source

Attempts to Bypass the Dollar

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The US has dominated trade for nearly a century. That is coming to an end as its manufacturing sector continues to shrink. Yet the dollar continues to be the world currency, providing numerous advantages for the US that other countries resent.

The US is looked at as a declining power, hopelessly in debt. It is able, through the dollar, to export inflation to other countries.

The world views the US as fiscally and monetarily out of control and unwilling to make the proper, hard economic decisions. There is fear that continuance with the dollar risks massive inflation throughout the world and/or a collapse of  the world’s only international currency.

Fortunately for the US, there is no other fiat currency capable of replacing the dollar — at least now.  The Euro was a hope for awhile, but now it is apparent that the Euro will not survive much longer. The motives for finding an alternative to dollars is strong because the risks (and advantages) are so great.

One approach would be to create an international currency consisting of a basket of other currencies and/or commodities. How likely it is that one could be developed is moot. Suffice to say that there is strong motives on the part of many other countries to come up with such an alternative.

An important article on stirrings in the anti-US dollar and perhaps the beginnings to displace the dollar by Chris Blasi is presented below:

Sovereigns Declare War on U.S. Dollar

BY CHRIS BLASI01/24/2012

Profoundly significant news came out of the Middle East on Monday January 23, 2012. The headline via DEBKAfile* reads:

India to Pay Gold Instead of Dollars for Iranian Oil. Oil and Gold Markets Stunned

Within the body of the report were gleaned these crucial items:

  1. India has become the first buyer of Iranian oil to agree to settle purchases in gold.
  2. China is expected to follow India’s move.
  3. Approximately 40% of Iran’s total oil exports are consumed by India and China.
  4. Settling oil transactions in gold enables Tehran to circumvent the EU’s upcoming freeze on Iran’s Central Bank assets and the oil embargo announced Monday January 23rd.
  5. Due to the magnitude of the transactions proposed, the price of gold is expected to rise and the Dollar’s value depressed on world markets.
  6. The EU currently accounts for approximately 20% of Iran’s oil exports.
  7. The transactions are to be facilitated via two Indian state owned banks and a Turkish state owned bank.
  8. Financial mechanisms have also been implemented between Iran and Russia for the settlement of oil purchases in currencies other than the US Dollar.

Iranian Crisis Evolving into Dollar Hegemony and Western Power Challenge

At this point in time it is unnecessary to rehash the dismal state of fiscal and monetary affairs that plague the US. Excluding the willfully delusional, it is clear to any honest analyst that the gargantuan debts of the US can never be paid in full with dollars retaining current purchasing power. Further, with the insatiable need to issue exponentially growing volumes of debt to keep the welfare/warfare state hobbling along, who would willingly continue to finance such a debacle? All that’s left to supports this failing fiat experiment is an entrenched, yet deteriorating, reserve currency system to which there has not been a functioning alternative to date.

It is because of this macroeconomic environment, and the policies that gutted a previously productive goods producing economy, that the only tool left for the US to maintain the status quo is to defend at all costs the Dollar’s reserve currency status….and its foundational component the Petro Dollar. This is most likely the motive behind the quickening drumbeat to go to war with Iran. If keeping the world safe from rogue states with nuclear capabilities were the sole motive, than why have North Korea and Pakistan been given a pass?

Unlike the invasion of Iraq, whereby that oil rich nation had no allies come to its aid or at least none with the wherewithal to dare protest in a meaningful way, the Iranian crisis is developing into a far more serious geopolitical happening. Just as most wars are a smokescreen for behind the scenes power plays between the various ruling class, the events unfolding in the Persian Gulf look to be such in spades. What will shock the world when the actions reported above are fully digested is the choosing of sides and the clandestine development of alternative financial mechanisms by those nations previously believed not ready or unable to challenge the Western elites.

Following years of speculation as to the fate of the US Dollar and the lengths to which Western bankers would go to defend the system that serves them so well, could today’s headlines be the proverbial ringing bell? Unfortunately, the actions of most bankrupt and overextended empires is to march its people into a calamitous war. As with all historically recorded futile endeavors in defending the indefensible (i.e. a debt based paper monetary system), the most likely financial survivor will again be gold.

Source

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