Keep in mind that a currency isn’t “gold-backed” unless it’s exchangeable for gold from the issuer. We’re still a long way from that. From Pepe Escobar at thecradle.co:
The adoption of commodity-backed currencies by the Global South could upend the US dollar’s dominance and level the playing field in international trade.
Let’s start with three interconnected multipolar-driven facts.
First: One of the key take aways from the World Economic Forum annual shindig in Davos, Switzerland is when Saudi Finance Minister Mohammed al-Jadaan, on a panel on “Saudi Arabia’s Transformation,” made it clear that Riyadh “will consider trading in currencies other than the US dollar.”
So is the petroyuan finally at hand? Possibly, but Al-Jadaan wisely opted for careful hedging: “We enjoy a very strategic relationship with China and we enjoy that same strategic relationship with other nations including the US and we want to develop that with Europe and other countries.”
Second: The Central Banks of Iran and Russia are studying the adoption of a “stable coin” for foreign trade settlements, replacing the US dollar, the ruble and the rial. The crypto crowd is already up in arms, mulling the pros and cons of a gold-backed central bank digital currency (CBDC) for trade that will be in fact impervious to the weaponized US dollar.
A gold-backed digital currency
The really attractive issue here is that this gold-backed digital currency would be particularly effective in the Special Economic Zone (SEZ) of Astrakhan, in the Caspian Sea.
Astrakhan is the key Russian port participating in the International North South Transportation Corridor (INTSC), with Russia processing cargo travelling across Iran in merchant ships all the way to West Asia, Africa, the Indian Ocean and South Asia.
The success of the INSTC – progressively tied to a gold-backed CBDC – will largely hinge on whether scores of Asian, West Asian and African nations refuse to apply US-dictated sanctions on both Russia and Iran.
The supremacy of the dollar may soon be a thing of the past. From Pepe Escobar at thesaker.is:
Challenging the western monetary system, the Eurasia Economic Union is leading the Global South toward a new common payment system to bypass the US Dollar.
The Eurasia Economic Union (EAEU) is speeding up its design of a common payment system, which has been closely discussed for nearly a year with the Chinese under the stewardship of Sergei Glazyev, the EAEU’s minister in charge of Integration and Macro-economy.
Through its regulatory body, the Eurasian Economic Commission (EEC), the EAEU has just extended a very serious proposal to the BRICS nations (Brazil, Russia, India, China and South Africa) which, crucially, are already on the way to turning into BRICS+: a sort of G20 of the Global South.
The system will include a single payment card – in direct competition with Visa and Mastercard – merging the already existing Russian MIR, China’s UnionPay, India’s RuPay, Brazil’s Elo, and others.
That will represent a direct challenge to the western-designed (and enforced) monetary system, head on. And it comes on the heels of BRICS members already transacting their bilateral trade in local currencies, and bypassing the US dollar.
This EAEU-BRICS union was long in the making – and will now also move toward prefiguring a further geoeconomic merger with the member nations of the Shanghai Cooperation Organization (SCO).
Much of world is following Russia’s lead and challenging the American empire. From Pepe Escobar at thesaker.is:
Six months after the start of the Special Military Operation (SMO) by Russia in Ukraine, the geopolitical tectonic plates of the 21st century have been dislocated at astonishing speed and depth – with immense historical repercussions already at hand. To paraphrase T.S. Eliot, this is the way the (new) world begins, not with a whimper but a bang.
The vile assassination of Darya Dugina – de facto terrorism at the gates of Moscow – may have fatefully coincided with the six-month intersection point, but that won’t change the dynamics of the current, work-in-progress historical drive.
The FSB may have cracked the case in a little over 24 hours, designating the perpetrator as a neo-Nazi Azov operative instrumentalized by the SBU, itself a mere tool of the CIA/MI6 combo de facto ruling Kiev.
The Azov operative is just a patsy. The FSB will never reveal in public the intel it has amassed on those that issued the orders – and how they will be dealt with.
One Ilya Ponomaryov, an anti-Kremlin minor character granted Ukrainian citizenship, boasted he was in contact with the outfit that prepared the hit on the Dugin family. No one took him seriously.
What’s manifestly serious is how oligarchy-connected organized crime factions in Russia would have a motive to eliminate Dugin as a Christian Orthodox nationalist philosopher who, according to them, may have influenced the Kremlin’s pivot to Asia (he didn’t)
Ultimately the world will not be defined by whether countries are with or against the U.S. or any other wanna-be empire. For the next few years, chaos and collapse will probably be the themes. What emerges from that? Who knows? Pepe Escobar, as he frequently does, tries his hand at predicting the future. From Escobar at thesaker.is:
After all we’re deep into the metaverse spectrum, where things are the opposite of what they seem.
Fast but not furious, the Global South is revving up. The key takeaway of the BRICS+ summit in Beijing, held in sharp contrast with the G7 in the Bavarian Alps, is that both West Asia’s Iran and South America’s Argentina officially applied for BRICS membership.
The Iranian Foreign Ministry has highlighted how BRICS has “a very creative mechanism with broad aspects”. Tehran – a close partner of both Beijing and Moscow – already had “a series of consultations” about the application: the Iranians are sure that will “add value” to the expanded BRICS.
Talk about China, Russia and Iran being sooooo isolated. Well, after all we’re deep into the metaverse spectrum, where things are the opposite of what they seem.
Moscow’s obstinacy in not following Washington’s Plan A to start a pan-European war is rattling Atlanticist nerves to the core. So right after the G7 summit significantly held at a former Nazi sanatorium, enter NATO’s, in full warmongering regalia.
The division increasingly takes shape: the West vs. the BRICS and much of the rest of the world. From Pepe Escobar at unz.com:
If the South can break free, it’s a whole new world. From Pepe Escobar at thesaker.is:
n his latest book, economist Michael Hudson pits socialism against finance capitalism and tears apart the ‘dream civilization’ imposed by the 1 percent.
By Pepe Escobar, posted with the author’s permission and cross-posted with The Cradle
Michael Hudson’s new book on the world’s urgent global economic re-set is sure to ruffle some Atlanticist feathers. Photo Credit: The Cradle
With The Destiny of Civilization: Finance Capitalism, Industrial Capitalism or Socialism, Michael Hudson, one of the world’s leading independent economists, has given us arguably the ultimate handbook on where we’re at, who’s in charge, and whether we can bypass them.
Let’s jump straight into the fray. Hudson begins with an analysis of the “take the money and run” ethos, complete with de-industrialization, as 90 percent of US corporate revenue is “used to share buybacks and dividend payouts to support company stock prices.”
That represents the apex of “Finance Capitalism’s” political strategy: to “capture the public sector and shift monetary and banking power” to Wall Street, the City of London and other western financial centers.
The whole Global South will easily recognize the imperial modus operandi: “The strategy of US military and financial imperialism is to install client oligarchies and dictatorships, and arm-twist allies to join the fight against designated adversaries by subsidizing not only the empire’s costs of war-making (“defense”) but even the imperial nation’s domestic spending programs.” This is the antithesis of the multipolar world advocated by Russia and China.
Posted in Book Reviews, Business, Currencies, Debt, demographics, Economics, Eurasian Axis, Geopolitics, Governments, Imperialism, Intelligence, Military, Nonfiction, Politics, Propaganda
Tagged Global South, Multipolarity, U.S. reserve currency
Most of the world has grown disgusted by the pointless war and regime-change antics of the U.S. government. From John V. Walsh at unz.com:
Russia pivots to the dynamic East and fast developing Global South
The first, familiar to all, was the coup in Ukraine in which a democratically elected government was overthrown at the direction of the United States and with the assistance of neo-Nazi elements which Ukraine has long harbored.
Shortly thereafter the first shots in the present war were fired on the Russian-sympathetic Donbass region by the newly installed Ukrainian government. The shelling of the Donbass which claimed 14,000 lives has continued for 8 years, despite attempts at a cease-fire under the Minsk accords which Russia, France and Germany agreed upon but Ukraine backed by the US refused to implement. On February 24, 2022, Russia finally responded to the slaughter in Donbass and the threat of NATO on its doorstep.
Russia Turns to the East – China Provides an Alternative Economic Powerhouse.
The second pivotal event of 2014 was less noticed and in fact rarely mentioned in the Western mainstream media. In November of that year according to the IMF, China’s GDP surpassed that of the U.S. in purchasing power parity terms (PPP GDP). (This measure of GDP is calculated and published by the IMF, World Bank and even the CIA. Students of international relations like economics Nobel Laureate, Joseph Stiglitz, Graham Allison and many others consider this metric the best measure of a nation’s comparative economic power.) One person who took note and who often mentions China’s standing in the PPP-GDP ranking is none other than Russia’s President Vladimir Putin.
Posted in Foreign Policy, Geopolitics, Governments, History, Military, Politics, Technology, Trade, War
Tagged China, Global South, Russia, Ukraine-Russia War