Russia’s Petro-Ruble Challenges US Dollar Hegemony. China Seeks Development of Eurasian Trade

China will re-open the old Silk Road as a new trading route linking Germany, Russia and China
by Peter Koenig
Peter Koenig is an economist and former World Bank staff. He worked extensively around the world in the fields of environment and water resources. He writes regularly for Global Research, ICH, the Voice of Russia and other internet sites. He is the author of Implosion - fiction based on facts and on 30 years of experience around the globe. 

QUOTE Peter König
Russia and China announce decoupling trade from Dollar - The End for the USA is nigh‏
Russia has just dropped another bombshell, announcing not only the de-coupling of its trade from the dollar, but also that its hydrocarbon trade will in the future be carried out in rubles and local currencies of its trading partners – no longer in dollars – see Voice of Russia
Russia’s trade in hydrocarbons amounts to about a trillion dollars per year. Other countries, especially the BRICS and BRCIS-associates (BRICSA) may soon follow suit and join forces with Russia, abandoning the ‘petro-dollar’ as trading unit for oil and gas. This could amount to tens of trillions in loss for demand of petro-dollars per year (US GDP about 17 trillion dollars – December 2013) – leaving an important dent in the US economy would be an understatement.


Added to this is the declaration today by Russia’s Press TV – China will re-open the old Silk Road as a new trading route linking Germany, Russia and China, allowing to connect and develop new markets along the road, especially in Central Asia, where this new project will bring economic and political stability, and in Western China provinces,where “New Areas” of development will be created. The first one will be the Lanzhou New Area in China’s Northwestern Gansu Province, one of China’s poorest regions.

“During his visit to Duisburg, Chinese President Xi Jinping made a master stroke of economic diplomacy that runs directly counter to the Washington neo-conservative faction’s effort to bring a new confrontation between NATO and Russia.” (press TV, April 6, 2014)
“Using the role of Duisburg as the world’s largest inland harbor, an historic transportation hub of Europe and of Germany’s Ruhr steel industry center, he proposed that Germany and China cooperate on building a new “economic Silk Road” linking China and Europe. The implications for economic growth across Eurasia are staggering.”

Curiously, western media have so far been oblivious to both events. It seems like a desire to extending the falsehood of our western illusion and arrogance – as long as the silence will bear.
Germany, the economic driver of Europe – the world’s fourth largest economy (US$ 3.6 trillion GDP) – on the western end of the new trading axis, will be like a giant magnet, attracting other European trading partners of Germany’s to the New Silk Road. What looks like a future gain for Russia and China, also bringing about security and stability, would be a lethal loss for Washington. 

In addition, the BRICS are preparing to launch a new currency – composed by a basket of their local currencies – to be used for international trading, as well as for a new reserve currency, replacing the rather worthless debt ridden dollar – a welcome feat for the world.

Along with the new BRICS(A) currency will come a new international payment settlement system, replacing the SWIFT and IBAN exchanges, thereby breaking the hegemony of the infamous privately owned currency and gold manipulator, the Bank for International Settlement (BIS) in Basle, Switzerland – also called the central bank of all central banks.

To be sure – the BIS is a privately owned for profit institution, was created in the early 1930’s, in the midst of the big economic melt-down of the 20^th Century. The BIS was formed precisely for that purpose – to control the world’s monetary system, along with the also privately owned FED and the Wall Street Banksters – the epitome of private unregulated ownership. 

The BIS is known to hold at least half a dozen secret meetings per year, attended by the world’s elite, deciding the fate of countries and entire populations. Their demise would be another welcome new development.

As the new trading road and monetary system will take hold, other countries and nations, so far in the claws of US dependence, will flock to the ‘new system’, gradually isolating Washington’s military industrial economy (sic) and its NATO killing machine.

This Economic Sea Change may bring the empire to its knees, without spilling a drop of blood. An area of new hope for justice and more equality, a rebirth of sovereign states, may dawn and turn the spiral of darkness into a spiral of light.
UNQUOTE Peter König
Accounts regarding the topic published on this blog
Thursday, March 26, 2009
CHINA - urges new global reserve currency - People's Bank of China governor Zhou Xiaochuan is on the right trackhttp://thomasramseyervolkart.blogspot.ch/2009/03/china-urges-new-global-reserve-currency.html



Friday, May 18, 2012
OIL - IRAN - CHINA - USA - Iran's oil sales are credited in Chinese Renminbi - US-$ as well as EUR to be crowded out as world currency in the futurehttp://thomasramseyervolkart.blogspot.ch/2012/05/oil-iran-china-irans-oil-sales-are.html

Saturday, June 22, 2013
Belgium based SWIFT - fully controlled by US-authorities - China's Renminbi to be used as alternative http://thomasramseyervolkart.blogspot.ch/2013/06/belgium-based-swift-controlled-by-us.html

Wednesday, April 24, 2013CHINA - CURRENCY RESERVES - Renminbi the currency reserve to come - Renminbi Währungsreserven der Zukunft
http://thomasramseyervolkart.blogspot.ch/2013/04/china-renminbi-als-wahrungsreserven.html

Tuesday, April 30, 2013
RENMINBI to become RESERVE CURRENCY - RBA June 2012RESERVE BANK of AUSTRALIA: June 2012 Bulletin - account on Renminbihttp://thomasramseyervolkart.blogspot.ch/2013/04/renminbi-to-become-currency-reserve-rba.html

Thursday, May 8, 2014
Russia’s Petro-Ruble Challenges US Dollar Hegemony. China Seeks Development of Eurasian Trade http://thomasramseyervolkart.blogspot.ch/2014/05/russias-petro-ruble-challenges-us.html

Belgium based SWIFT - fully controlled by US-authorities - China's Renminbi to be used as alternative

Author thomas ramseyer
Wikipedia: US Control over Transactions within the European Union
On 26 February 2012 the Danish newspaper Berlingske reported that US authorities evidently have sufficient control over SWIFT to seize money being transferred between two EU countries (Denmark and Germany), since they have seized around U$26,000 which were being transferred from a Danish to a German bank. The money was a payment by a Danish businessman for a batch of Cuban cigars previously imported to Germany by a German supplier. As justification for the seizure, the U.S. Treasury has stated that the Danish businessman has violated the United States embargo against Cuba.^[23]

Remarks
As the example shows the US are in a position to get hold of any information they want. Threatened to be cut off the moneytransfer in USD, the banks would rather be looking for another solution than the USD. How about the Renminbi???
http://thomasramseyervolkart.blogspot.ch/2013/04/renminbi-to-become-currency-reserve-rba.html

http://thomasramseyervolkart.blogspot.ch/2013/04/china-renminbi-als-wahrungsreserven.html

http://thomasramseyervolkart.blogspot.ch/2009/03/china-urges-new-global-reserve-currency.html

It looks like the US consider themselves rulers of the entire world. Together with England they virtually are sitting right on the edge of everybody's matrimonial bed.

As China's currency is backed by a huge economy the Renminbi may become an alternative to the USD in a Transfersystem totally separate from the actual infrastructure.

China is empowered to build a transfer system similar to SWIFT for the purpose of cutting off some of the information from the US and GB. It is only a matter of time that this will happen.

It is about time to disturb the monopol of the US. As the US do not grant transparency about themselves the nonUS nations must try to build up secrecy and privacy again. 

also readhttp://thomasramseyervolkart.blogspot.ch/2013/04/western-union-forget-western-union.html http://thomasramseyervolkart.blogspot.ch/2013/01/western-union-vale-of-tears.html
copyright  thomas ramseyer

CHINA - urges new global reserve currency - People's Bank of China governor Zhou Xiaochuan is on the right track

Author Thomas Ramseyer

China's Zhou Xiaochuan on the right track

It is very wise to ask for a new widely accepted currency like Poeple's Bank of China's governor Mr. Zhou Xiaochuan does. 

The USD has seen its peak already long time ago. The decay was eased off when the government started building up huge debt to the bad of the american people which was lured into saving only after having bought. 

The result is evident; the system has failed. It is proven by all; by politicians, managers as well as the priests and professors.

Gold convertibility's cessation in the 70ties proves faltering american way of doing business

The very first warning about the deadbeat american system of interest and debt has been given by the termination of the gold convertibility. (President Nixon's speech to the American people on air)

Don't forget, remember the USD nosedived just as a lame duck from a longtime maintained stable - was it really stable ? - level of some e.g. Swiss CHF 4.30 to agonizing CHF 1.43 within only seven years. 

The US-Dollar's volatility then showed what the rest of the world was dealing with; a heavily indebted country living on the wealth of all others. Adventurous performing USD - 1977 CHF 1.43, 1980 2.93, then bumping up and down to 90ties' 1.10 to recover to some CHF 1.83 . . . . . . stable country? stable political system? never ! . . . It is rather the story of a dead man walking head over heal since quite some time.

USDollar paper flying like a boy's kite in the crosswinds

- kite on a boy's string or boy on the kite's string - this may be the question

The United States of Americas' Dollar in fact is the most manipulated currency all over the globe. The currency system has no clue about how much worthless paper is swamping over the entire world. How much fake money is lingering about. Misused to trick the ignorant citizens' system by hindering the desperate central banks' actions.

Real pirates even do not use ships nowadays - they volatiledly get hold of other countries's wealth - how to neatly get hold of quite some billions

What they did and what they will do again is to deprive other countries' economies of their wealth. Taxpayers are not directly impacted by the action taken, it happens through the backdoor of the central banks. 

For shedding a bit of light on it just read that tale. 1978 USD vs CHF 1.43 Swiss Central Bank has bought starting at much higher levels like hell, Swiss Franc liquidity to pour out of everybody's ears and nose. 

Similar situtation throughout Europe, Germany, France and all the others. Then the almighty states decided to "assist" the drowning they issued Carter bonds in Swiss Franc at levels never seen [2.125% in CH for two to three and a half years] as well as in DeutschMark denominations. 

The USA helped Europeans to neutralize their overshooting liquidity . . . . . It is true they helped ... by helping themselves as well. The Billions of Swissfrancs sold at levels of some 1.43 against US-Dollars were bound to be bought back at roughly 2.83 two to three and a half years later.

Individuals ripped off wide eyes shut

The calculus is easy: ONE $ bought for CHF 1.43 in 1978 sufficed to pay back CHF 2.83 at the redemption of the Bonds. CHF 1.40 were sneaking out of Swiss National Banks' backdoor, just cleared away right under the noses of Swiss taxpayers not noticed by the latter. 

They never got aware facts being covered by loud voices. It is about to happen again: Swiss National Bank got credit of some USD 68 Billion selling them against NON-US-currencies at levels of CHF 1.-- to 1.20 for one USD. 

Imagine when Switzerland has to pay this American loan back by buying USD at substantially higher levels - they will fix it - of .... let us just assume some CHF 2.-- per USD. What will this be?? A never ending nightmare: ONE USD will cost us twice as many Swissfrancs as at start. Twice as many ?  

Thus sixtysomething billion (roughly CHF 65'000'000'000) If this compared to GDP or actual internal debt we get the creeps.

The ancient remedy of pumping in liquidity won't work this time - the peoples' debt too heavy - internal as well as external

The USA have been struck by interest rate's gamble and are severly shaking; their president trembling, not very assuring like a priest of a lost religion. He is all but promise. Promise built on sand.

Glued to the past - antiquated view given extraordinary situation

USD considered the strongest currency all around the globe ? NEVER !!

US political system considered the most stable around the globe ? NEVER !! 

US citizens the most hardest working force in the world ?? NEVER !!

US President Obama is slapping the NON-US-world right in the face !!
What does he think? How arrogant; there still are all the others hey cannot survive without !! 

The US without the world ? The world without the US ? Who is indebted ?, the rest or them ?

Q & A - question and answer

Who was importing more than exporting ? The hardest working people in the world !

Who is living on the other countries' money ? The hardest working people in the world !
Who is consuming more than earning ? The hardest working people in the world !

Whose citizens have returned to live in tents at the cities' brims ? The hardest working people of the states !

Who is forcing countries all over the world ? The hardest working people's state !

Who is postponing all the sort of things by putting in a veto? The hardest working people's states.

The real remedy - looking forward into the future - no retrograde activities to apply

Facts

The actual system has collapsed. It already started collapsing just when durables were built without prior saving. Paper against the Marshall !
Buy first then save is the root of all the mess. Save first then buy is remedy.

M O N E Y   N O T   B A C K E D   B Y   R E A L   G O O D S    I S   U S E L E S S

Greedy managers' salaries - not really the reason - a marginal battlefield

The reason for the actual crisis is not the greed of certain individuals playing around with other people's wealth by putting it at stake. The noise about that bunch of skimming riders is just good enough to hide the truth. 

Why talk about some USD 140 Billion when Trillions are at stake. Why concentrate on collateral damage while the house is set on fire? It's just to mislead the people having kept ignorant. 

Presidential outcry is but a show we know. It is just to hit the sack instead of hitting the donkey.

Reason is the system has been built on illusions - paper for the real

The illusion is that paper keeps the wealth which is not true; it's proven. Paper is only meant to transport the value for a short lapse of time. Never to preserve. 

For to preserve real goods resources such as soil and manpower are needed. Capital for capital; never capital for paper. This has to be understood again.

Suggestion to renew the financial System
ALL currencies finally are useful only in their home-countries. For that reason it is not possible to manage currency reserves by diversification. 

At the end of the day any currency will be converted back into the original currency thus working but at home. 

This is the reason why concerted action has to be taken by all countries during the very same lapse of time.

a) The whole currency system has to be altered by the following measures taken:

1) All bills are collected and subsequently destroyed.

2) In the case old bills are replaced by modern new ones it is NOT possible to exchange central bank money (giralgeld) for bills. Individuals do not need more bills than are afloat all of a sudden.

3) All credit cards are collected for extinction. Consumers are to first pay down their debts then save and only after saving to cosume or invest in durable goods. Thus economy becomes sustained while having long-term goals to achieve. 

Financial intermediaries are not to use misleading expressions such as SAVING afterwards; saving is always BEFORE buying. Only debit cards are allowed; there are no credit lines allowed anymore.

4) Paper always buys durables or nutrition. Options are traided only on a fully covered basis; no delta hedges allowed. Futures always are paid against physical delivery. People in the need are buying from producers. Inflation thus is impossible, illusive structures whatsoever beyond control are not allowed. 

As it can be seen illusions turn the people down. Americans sell their blood, their sperm, their hair. They are about to sell even more.

5) To protect firms from takeover - friendly or unfriendly - they simply unlist from the stock exchange. No reason needed to bar somebody from the shareholders' book. The law will alter.

6) Uneven tradebalances are settled by the exchange of real goods. The biggest debtors of all times is in austerity, they cure themselves. If they do not there will be even spuds' convertibility cessation

b) replace the USD by a new worldwide economy based currencyThe example of Europe shows the way - ECU first artificiel currency proves useless
1) First Europe invented the ECU which was a currency not backed by one sole economy. The ECU only was a basket of different european currencies exchangeable only at fixed rates the latter being altered from time to time because of misbehaveing governments in terms of policies influencing the money.

2) Europe invented then the EURO, one single money meant for the whole European Community. Before inventing all the countries were to streamline their economies. The convergence of the Interest rates took place. All the countries actually had same rates.

3) X-DAY The European dealt out new money exchanged the balance sheets' currencies as well as all the bills. ECB European central bank for once had full controll on central bank money knowing about the entire mass of bills roaming about the countries up and down. [Meanwhile the US-Dollars' - fake and real - amount of bills still was, is and will be unknown to federal reserve thus US-administration. See the vital difference?!]

4) As all the countries had same relative figures inside their domestic economies there were only slight differences in yield along the whole yealcurve up to fifty years. The slight differences never the less proved the expected behaviour of different politicians thus influencing their countries' interest rates. 

Interest rates now are the price for money. The market exchanges discounted cashflows - e.g. Italy's 10 years present value against Germany's 10 years present value. First only slight spreads . . . . . have a look at them now ! Frenchs are Frenchs, Germans are Germans, Italians are Italians, others are others . . . they stay for ever what they are.

5) Only Problem all countries' individual central bankers become sheer statistical bureaucrats, no power anymore thus not on stage. They leave their vessels. The manipulative power by cheap or expensive money thus the control is surrendered to the most powerful - are they ? - economies. 

The more they count the more power and influence they have. Driven by the people's foreseen riots threatened to lose their seats.

6) In case of a unified sole currency overall the countries only decent behaving of the parliaments each member thereof elected by the souvereign, individuals, taxpayers, will lead to stability and sustainable prosperity. Each country's interest rates [the yield curve] reflect the measures taken by the parliaments then executed by the administrations' presidents or multiple headed crews.

Recommendation

Destroy the paper, deprive the crooks of measures to be taken by manipulating money

Do it ! Walk NOT talk !

copyright Thomas Ramseyer
http://www.xing.com/profile/Thomas_Ramseyer5