Friday, September 15, 2017

On eve of UN General Assembly: America $20 trillion in debt threatens to cut China off from “Petrodollar” over sanctions

After tuning in to hear President Trump’s National Security Advisor, General H.R. McMaster and nitwit UN Ambassador Nikki Haley lay out Trump’s goals for the 72nd United Nations General Assembly meeting, I thought I was watching a Saturday Night Live skit.  A bespectacled McMaster trying to sound authoritative stated, “Trump’s goal at the UN meeting is to promote peace, promote prosperity and uphold sovereignty and accountability.” 

How those clowns keep a straight face as they spew out lie after lie actually believing that they have any credibility in the world is just amazing.  What’s even more astounding is with America $20 trillion in debt, Treasury Secretary Mnuchin is threatening to cut China off from the dollar!  How stupid is that?? 

This idiot is our Treasury Secretary??  According to Information Clearing House, “Washington runs a $350 billion annual trade deficit with Beijing. China also holds $1 trillion in US debt, which amounts to 28 percent of US Treasury bills, notes and bonds held by a foreign government.  Criminy, from Paul Craig Roberts:


An Economic Lesson for China and Russia

Is there anyone in Trump’s government who is not an imbecile?

After years of endless military threats against Russia—remember CIA deputy director Mike Morell saying on TV (Charlie Rose show) that the US should start killing Russians to give them a message, and Army Chief of Staff Mark Milley threatening “We’ll beat you harder than you have ever been beaten before”—now the US Treasury Secretary Steven Mnuchin threatens China.

If China doesn’t abide by Washington’s new sanctions on North Korea, Mnuchin said the US “will put additional sanctions on them [China] and prevent them from accessing the US and international dollar system.”  Here is the broke US government $20 trillion in public debt, having to print money with which to buy its own bonds, threatening the second largest economy in the world, an economy on purchasing power parity terms that is larger than the US economy.

Take a moment to think about Mnuchin’s threat to China. How many US firms are located in China? It is not only Apple and Nike…   What if China responded by nationalizing all US factories and all Western owned banks in China and Hong Kong?

Mnuchin is like the imbecile Nikki Haley. He doesn’t know who he is threatening. 

Consider Mnuchin’s threat to exclude China from the international dollar system. Nothing could do more harm to the US and more good to China. A huge amount of economic transactions would simply exit the dollar system, reducing its scope and importance.

Most importantly, it would finally dawn on the Chinese and Russian governments that being a part of the dollar system is a massive liability with no benefits…

If China and Russia want to be sovereign countries, they must pray that the imbecile Mnuchin does cut them off from the dollar system that exploits them. Then Russia and China will have to put in place their own system…

Well Dr. Roberts, China and Russia have started their own payment system and bank.  It is called the BRICS bank.  While dumb ass Mnuchin threatens China for not taking drastic enough steps against North Korea, Russia and China are wiping up the floor with U.S. dollars. From LaRouchepub:


BRICS Summit and Eastern Economic Forum Give Hope to Mankind

The western financial system is facing a catastrophic collapse, exceeding by an order of magnitude the crisis which began in 2007. Faced with this looming disaster, the British Empire, through its financial centers in the City of London, Wall Street, and across Europe, is resorting to extreme measures to sabotage this move by the majority of the world’s nations.

The Chinese and Russian-led process, in rejecting the “Washington Consensus…” is instead engaging in the “win-win” policies of the China-Russia New Silk Road (Belt and Road Initiative), offering nation-building through infrastructure and industrial development, without political dictates.

Perhaps even more frightening to the Lords of London and Wall Street, is the intention of President Donald Trump to join in this New Paradigm, to break the imperial East vs. West divide in favor of friendship with Russia and China, both in combatting international terrorism and through participation in the New Silk Road—including welcoming Chinese help in rebuilding the crumbling U.S. industry and infrastructure.


Xi Jinping’s address to the BRICS Business Forum, which included business leaders from the BRICS and 20 other countries, praised the role of the BRICS over the past ten years, which held steady against the global economic crisis unleashed by the bursting of the speculative bubble in the US and Europe in 2007-08…

A major topic of discussion at the Summit was the functioning of the New Development Bank (NDB), the BRICS bank set up at the BRICS Summit in Brazil in 2014, which has begun lending over this past year, beginning with four infrastructure investments in Russia, China and India, totaling $1.4 billion. The first regional center of the NDB, the African Regional Center, was established in South Africa in August…

He added that the NDB will oversee the establishment of a BRICS rating agency, to provide an alternative to the London-New York agencies Standard and Poors, Fitch, and Moody’s

Immediately following the BRICS Summit, over 3,500 people from 60 countries gathered in Vladivostok, Russia, for the third annual Eastern Economic Forum, targeting the development of the vast, resource-rich, but underdeveloped and under-populated Russian Far East.

The Russian Far East, together with the Arctic, can be considered the last New Frontier on Earth, comparable to the development of the American West during our first century as a nation…

The western media (and most governments) are warning that a war between the U.S. and North Korea is nearly unavoidable. This is not the view in Asia—including in South Korea.

The new South Korean President, Moon Jae-in, held a long meeting with Vladimir Putin on the sidelines of the Forum. Speaking to the press afterwards, the two men presented an inspiring vision, and several concrete programs, for working together towards the transformation of the Russian Far East, while creating the conditions for a solution to the escalating crisis over North Korea.

During the McMaster-Haley press conference to outline President’s objectives for next week’s United Nation McMaster said,

“Sovereignty and accountability are the essential foundations for peace and prosperity.  America respects the sovereignty of other countries, expects others to do the same and expects all governments to be accountable to their citizens.”  “That accountability has broken down in Venezuela and Syria…

Oh that’s rich “America respects the sovereignty of other countries” and then McMaster cites as examples Venezuela and Syria.  Two countries the CIA has been attempting to overthrow their elected governments since the Bush Administration.  Well Venezuela is fighting back.  From The Free Thought Project:


Venezuela Just Stopped Accepting US Dollars for Oil As Countries Join Forces to Kill US Petrodollar

Venezuela just announced they will no longer accept US dollars for oil, as Russia and China create a system to bypass US petrodollar hegemony.

Caracas, Venezuela – In what is the latest move to undermine the imperial world order maintained by the United States, which is underpinned through use of the petrodollar as the world reserve currency, the Wall Street Journal reports that Venezuelan President Maduro has officially followed through on his threat to stop accepting US Dollars as payment for crude oil exports in the wake of recent US sanctions.  Last Thursday, President Nicolas Maduro said that if the US went ahead with the sanction, Venezuela would “free” itself from the US Dollar…

According to Reuters:

“Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,” Maduro said in a multi-hour address to a new legislative “superbody.”

Unsurprisingly, Maduro noted that his country would look to the BRICS countries, and begin using the Chinese yuan and Russian ruble instead — along with other currencies — to bypass the US Dollar stranglehold.  “If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,” Maduro said…  Venezuela has told oil traders that it will no longer send or receive payments in dollars, according to people familiar with the new policy.

Oil traders who export Venezuelan crude or import oil products into the country have begun converting their invoices to euros…

Interestingly, the decision by Venezuela – the nation with the world’s largest proven oil reserves – comes just days after China and Russia unveiled an Oil/Yuan/Gold plan at the recent annual BRICS conference. This plan would strongly undermine the hegemonic control the US enjoys over the global financial system…

The Neolibcons in Washington – bent on eventual regime change in Russia and China – are in for an extremely rude awakening.  

The DC War Party’s petrodollar imperialism, which funds the US war machine and allows for a constant war footing, is quickly running out of allies to maintain its global hegemony.

While the Trump Administration speaks to the UN Assembly about promoting prosperity, and countries being held accountable to their people, let’s take a look at America’s record on these matters.  From Veterans Today:


The Hurricane of our Lives – America goes broke and nobody seems to care

The Ruling Cabal has just about completed their 100-year plan to asset-strip America bare...  The working men and women of America have been asset-stripped bare since the recession of 2008.

After 2008, CD interest rates have fallen from 6% to the current 1/2% – 1%, and the middle class has lost an estimated 42.5% of their accrued assets.  Many in the middle class are now running bare, with no more savings at all and scraping to just survive and keep the lights on.

The stock market has been artificially “kited up” by the secret “plunge protection team” which shortstops all electronic stock purchases for an instant; it is calculated, and then buys or sells to attain its goals…

Soon the market will drop substantially, and many of the big boys will make huge fortunes by selling short, because they know when it will drop. Can you say “insider trading”?..

The upper middle class and the rich will be the last to be squeezed by falling wages due to a worsening economy; and many feel a false sense of security. But as time goes on, their sources of income will dry up as the middle class shrinks and loses discretionary income…

Physician incomes (especially family practice) have become reduced due to the corporatization of medicine. Most large health insurance providers are now for-profit instead of non-profit, with their CEOs often making an income in excess of 100 million USD per year. This would pay for about 20,000 employees, or could be used to greatly reduce premiums...

All Pension funds in general are soon to be a sinking ship and cannot be saved from implosion, even government funds – unless the private Federal Reserve System is eliminated and all their assets are seized and clawed back into the US Treasury…

The Black Budget is the major factor in this massive and unprecedented asset-stripping of Americans.  Add to this the secret Black budget for spying, surveillance, Deep Underground Military Bases (DUMBs), and the Secret Space War program, which total between 1.75 Trillion USD and 2.0 Trillion USD against a federal budget of about 3.3 Trillion USD. You can see why Americans are being asset-stripped bare.

These Deep State holdovers from the W. Bush and Obama Administration never change their agenda according to the reality on the ground.  On the eve of the UN General Assembly is it wise to barge in, demanding to reform the United Nations into a more pliable tool for American hegemony? 

With America $20 trillion in debt is it wise for Treasury Secretary Mnuchin to belligerently demand unquestioning support from China for draconian sanctions that will do nothing to defuse the situation nor promote a peaceful resolution.   While America sashays around the UN blathering platitudes about peace, prosperity and sovereignty with accountability, people around the world know, America is not peaceful, prosperous nor accountable. 

America’s only chance lies with President Donald Trump.  During his campaign for the presidency Donald Trump declared his intention as President Donald Trump to join the New Paradigm ushered in by Russia and China.  President Trump promised to welcome China to help in rebuilding the crumbling U.S. industry and infrastructure.

On the eve of the UN General Assembly we wait to see if Trump is able to overcome the Deep State’s global hegemony and begin a new era of cooperation in promoting peace, prosperity and respect for other countries sovereignty.  It is long overdue and America’s future depends on it.  Can Trump pull it off or will America bite the dust?

By Patricia Baeten

No comments:

Post a Comment