Today we’ll follow on (circle back?) from yesterday’s post on the potential for a day of reckoning looming for the collective West as a result of the disastrous war that the US initiated against Russia, and American attempts to drag most of the world into that war. One of the results has been that the use of sanctions has, far from coercing cooperation, induced many countries to jump ship and seek a safer haven outside the King Dollar regime—or, at least to diversify in order to be in a better resist unwelcome American pressure. An article at Zerohedge provides an overview of how the imminent debut of the new BRICS gold backed currency is a direct result of this misguided attempt to bully the world—brief excerpt, and one key is in the title: “implemented in stages”. So, slowly, then all of a sudden:
This Part II of a Tom Luongo podcast is helpful in understanding what the BRICs currency is for, how it will be used, and why it doesn’t rule out the use of the USD. I did not contemplate the role of the “banker’s bank”, the BIS, in this scenario and wondered if certain bankers are just fine with BRICs doing what it is doing. As always these are interesting times for sure.
Yes, I think it is this. The Great Reset needs a subjugated world. As I understand it, they thought take down Russia and the rest of the world could be rolled up into their CBDC/digital Gulag state.
Yamamoto talked about "awakening the sleeping giant" re: our country prior to WWII. I think NATO and its associated lackeys have done the same with Russia. I have no doubt that it is still an authoritarian government but it isn't the old Soviet Union. Putin doesn't appear to be in the same vein as Andropov or Khrushchev et al. From the outside, Russia appears more Westernized, etc.
The West miscalculated and their trying to tame the tiger they grabbed by the tail. Good luck.
Great observation about Yamamoto. It's just another way in which there has been a total role reversal between Russia and the West since The End of History in 1989/90. You are right to say that Russia isn't a perfect democracy, but it's astonishing how many of the values that people on Mark's blog believe in are now more strongly held by Russia than our own Western governments.
This is turning out to be a Wagner Coup Mk2, as in: "What the HECK is going on?!" Very hard to tell if Erdogan really has thrown his toys out of the pram, or whether it's just Kabuki theatre. I think Putin has to be careful without the optics here. The ordinary Russians might start asking why he's meeting with Prig after his coup, why those Azov killers are now free, and why Russia should be making grain deals with Erdogan.
Interesting observations and reflections of Jake the Snake. Triumphalism wasn’t what i was thinking. Rather eating some humble pie especially after his Nordstream adventures. I predict he goes away fairly soon. Late September or October wagging his tail behind him. Good riddance.
Just a thought, I’m far from an astute financial guy, but if BRICS want to back their currencies with gold and the current price of gold, wouldn’t many of them have to devalue their currencies?
Has anyone seen how this currency is composed? What's in the basket? Is gold actually in the basket? Is the Brick exchangeable for gold? I've not seen any details. So far all I've read is hype.
Well, my argument is that China has much more gold than it says it does.
There are two parts to this argument. First, China’s gold mining. In 2007, China overtook South Africa as the world’s largest gold producer. It has remained so ever since. This past decade it has produced about 15% of all the gold mined in the world.
Since 2000, China has mined roughly 6,830 tonnes. Over half of Chinese gold production is state-owned – the China National Gold Group Corporation alone accounts for 20%. And China keeps the gold it mines – the export of domestic mine production is not allowed.
I say that number again: 6,830 tonnes. Already that official 1,948 figure looks very dubious.
With reserves in decline at home, Chinese mining companies have also been buying assets abroad, across Africa, South America and Asia. International production exceeds domestic production – by about 15 tonnes in 2020.
Second, there is the fact that, as well as being the biggest producer, China is the world’s biggest importer. Gold imports via Switzerland and Dubai are not always declared, but we do know that via Hong Kong alone, over 6,700 tonnes have entered the country since 2000.
Add that to cumulative gold production since 2000, and you get a figure over 13,500 tonnes.
I'm not the guy to explain this, but I think the answer lies in the fact that this "currency" will for the time being only be used to settle international trade. African countries are jumping on this bandwagon because their earnings stem from export of commodities. They'll take payment in a variety of currencies, but for example the yuan and ruble will be backed by gold. The BRICS arrangement gets them out from under the US using the dollar to pressure them politically and economically.
Someone slapped the bully. Confiscating Russia's dollar reserves and kicking them out of Swift may go down as one of the greatest foreign policy acts of modern history. The decoupling from the US was already happening, but it put it all into top gear.
"Biden should be 'a little concerned' about Cornel West" but he obviously isn't.
Headline in today's Zerohedge: "Biden DOJ Indicts Whistleblower Prepared To Testify Against Biden Family"
As Scott Adams puts it: "When the government indicts a whistleblower, the assumption of guilt has to be on the government. The truth might be different, but government corruption has to be your working assumption until and unless events show otherwise."
Perle: To be aware of objective dangers one must be sentient and you’ll never convince me that biden- lower case on purpose-knows what planet he’s on 90% of the time and the other 10% he is marginally aware of the real world, his only concern is if there’s any chocolate chip ice cream available. :-)
Truly a sad state of affairs that we find ourselves in.
My Biden mention was a quote from the article. What amazes me is how little concerned are those supposedly clever people who are running things with the sentiment of the Country. People don't have to love or even like Trump to be disturbed with the barrage of lawsuits (a fresh one out today where the DOJ is giving the green light for the Carroll lady to sue for more money) and the lack of any accountability on the part of the Bidens for matters affecting our government. Even assuming you can stay in control forever, wouldn't it make sense to curry favor with as large a segment of the population as possible?
Thanks for the update and the links, but the comparison to Nazi Germany and Operation Barbarossa is ludicrous. Hitler had every reason to expect a successful conclusion from his superb fighting machine, and was surprised that in Stalingrad the Russians kept fighting like animals when they should have realized they had been defeated. There is no substance to the hype and wishful thinking that dominates the Washington approach to everything they are doing. As MacGregor stated, Putin is preparing to continue to live with his neighbors. Our gov'mint doesn't even care that domestically half the Country do not respect or support them. Putin has apparently made common cause with Prigozhin. In America we have the latest 'trial du jour' against the popular Trump even as the Biden scandals go on unabated.
Maybe a comparison of the two campaigns doesn't fit exactly, but they both demonstrate exactly the same mindset toward Russia: they are backward barbarians who will recoil in fear and confusion at a resounding blow from the far more sophisticated West.
I think the point is, Perle, the private journals spoke of a foreboding that that Nazi leadership miscalculated the resilience and strength of their foe not to mention their courage. I see the early Nazi victories as similar to the USA running roughshod on the Middle East and other third world countries and then feeling they could rule the world.
The only point I was making is that whereas Germany posed a serious threat, America and the Ukraine could not mount a credible challenge. The Kursk battle was monumental in scope. That generation of Americans beat the Nazis. Quoth the raven, nevermore.
Thanks for the article and the analogy of the German triumphal attitude that presaged the disastrous loss to Russia. Today I have read a post by "Big Serge for Big Serge Thought" that dealt with this "German attitude" toward Russia in a later stage of ripening. Specifically the German planning before The Citadel" or the geographically the battle of Kursk.
The focus is how does an army already in the throes of defeat react to the reality of defeat. What was presented in the article was that Hitler and the entire German Command understood the battle would present a damned if you do and a damned if you don't situation.
How can a country best accept the reality fo defeat?
Along the “accepting the reality of defeat” lines, the Emperor of France, an erstwhile Great Power, has spoken:
“I have decided to increase deliveries of weapons and equipment to enable the Ukrainians to have the capacity to strike deeply," Macron said, while declining to say how many missiles would be sent.”
I’m sure MKB (the inimitable Bhadrakumar) is shaking his head in disbelief.
Yep. Even Manstein, one of the few military leaders who understood how to counter the Russians' deep war operations, wanted to carry on with the offensives, even when it was clear that the cream of the German panzer units were being ground into pieces. Group Think and wish fulfillment are very powerful.
"This means engaging with Russia in a near future and discouraging it from pressing ahead forthwith with any major offensive to end the war conclusively in its favour." Ha! I've already booked my popcorn and front-row seat for that one. I bet Putin won't be sleeping much tonight worrying about that.
NATO and the neocons believed what they wanted to hear. One example is the Western arms industry. Their representatives have a lot of influence, especially in DC, so for 8 years they've been telling the pols how "game-changing" the US weapons were that they were supplying to the Ukrainians. Add to that retired fools like Rumblossom Hodges and the rest telling DC how weak the Russian army was and you have a perfect storm of delusion and confirmation bias.
I simply don't buy the argument that 'Western intelligence' failed. It had to have been Western decision-makers who wouldn't listen and decided to gamble. Out of desperation? Well, yes, since part of the war rationale is a coverup (in all likelihood a criminal coverup) for a decade (or more) of government lies about our role in Ukraine.
There is one fundamental truth...which has been apparent (to me, at least) since I first listened to and read (and re-read) John Mearsheimer and the realist community 16 months ago. This war is an existential threat to Russia. Existential means...a threat to its survival...it means that there is no alternative. Russia could be losing today on the battlefield, and going bankrupt from sanctions and confiscations, and facing global opprobrium for 'war crimes' and...starving...and I am certain that it would not quit. It would not quit if 'Ukrainian' troops were on the road 12 miles outside Moscow. It explains why Putin (in fact as much a 'democratically' elected leader as virtually anyone in the West...certainly as much as 'Joe Biden') has huge support from the Russian 'establishment' and the Russian people. They 'know' this. As we have been reading here in Meaning recently, the 'West' has been trying this stunt (defeating Russia) for hundreds of years, at great cost in blood and tears to Russia. The last time a coalition of 'Western' forces tried to conquer Russia it cost the Russians (according to RT) 26 million casualties. https://russiapedia.rt.com/russian-history/the-great-patriotic-war/. I doubt the Russians are under any illusions (or delusions) about the consequences of defeat. Which are simply unacceptable. They are existential.
While the stakes are undoubtedly very high...some have argued also existential... for the West...and perhaps they are for the likes of 'Joe Biden', I would argue that they are better characterized as 'aspirational'. Wouldn't it be nice for the American Empire if we took down Russia and established political/military control over a federation spanning eleven time zones, with the largest nuclear arsenal in the world, and the world's most valuable reservoir of natural resources. https://www.basicplanet.com/top-10-countries-natural-resources-world/.
If you look at the chart at the basicplanet link, the BRICS countries plus Saudi Arabia, Iraq and Iran have resources valued in the hundreds of trillions of dollars, far exceeding the US and Canada, and this does not include the resource wealth of almost all of Africa. And haven't Saudi Arabia and Iran expressed a formal interest in an alliance with the BRICS? So, yes, knocking off Russia and splitting up the BRICS would be a nice accomplishment for our global hegemonic class. But its not existential. That's the major difference and why, I simply believe, Russia will never concede.
"I simply don't buy the argument that 'Western intelligence' failed. It had to have been Western decision-makers who wouldn't listen and decided to gamble."
Having worked for over two decades inside 'Western intelligence' I can say that I don't find the idea of an intel "fail" to be unbelievable. Groupthink is a powerful thing, especially when promotion depends upon it. Also ideological blinders--very effective. I think there was a combination of these influences in play: Ideological blinders on the part of the Neocons, to include ingrained belief in Russian inferiority, and a careerist give 'em what they want 'analytical' mentality, which included a bit of brainwashing from the ideological side.
Which brings us back to the original anti-Russian conflict in WW2. The group think in the upper reaches of the Nazi hierarchy concerning the feasibility of defeating Soviet Russia must have been off the charts.
I don't know, Rascal. For me, the key issue isn't what blacks think or how Biden is polling. No, the key issue is voter fraud in the swing states. It doesn't matter how terrible Biden is doing, if that is not sorted, then the Dems will clean up again in 2024. And the GOP is doing nothing about this key issue.
This Part II of a Tom Luongo podcast is helpful in understanding what the BRICs currency is for, how it will be used, and why it doesn’t rule out the use of the USD. I did not contemplate the role of the “banker’s bank”, the BIS, in this scenario and wondered if certain bankers are just fine with BRICs doing what it is doing. As always these are interesting times for sure.
Podcast or article? Podcast = the Vince Lanci one? So behind on my vids and podcasts.
Yeah, to be honest I wanted to do something with Part II but it was a bit over my pay grade as far as the monetary aspects went.
Did some sort of cover up or blackmail in order to protect Baidan require what has turned into the destruction of Ukraine and possibly much more?
Yes, I think it is this. The Great Reset needs a subjugated world. As I understand it, they thought take down Russia and the rest of the world could be rolled up into their CBDC/digital Gulag state.
Yamamoto talked about "awakening the sleeping giant" re: our country prior to WWII. I think NATO and its associated lackeys have done the same with Russia. I have no doubt that it is still an authoritarian government but it isn't the old Soviet Union. Putin doesn't appear to be in the same vein as Andropov or Khrushchev et al. From the outside, Russia appears more Westernized, etc.
The West miscalculated and their trying to tame the tiger they grabbed by the tail. Good luck.
Great observation about Yamamoto. It's just another way in which there has been a total role reversal between Russia and the West since The End of History in 1989/90. You are right to say that Russia isn't a perfect democracy, but it's astonishing how many of the values that people on Mark's blog believe in are now more strongly held by Russia than our own Western governments.
T minus 6 days to renew the grain agreement. Turkey seems to be hedging to take it over.
This is turning out to be a Wagner Coup Mk2, as in: "What the HECK is going on?!" Very hard to tell if Erdogan really has thrown his toys out of the pram, or whether it's just Kabuki theatre. I think Putin has to be careful without the optics here. The ordinary Russians might start asking why he's meeting with Prig after his coup, why those Azov killers are now free, and why Russia should be making grain deals with Erdogan.
Interesting observations and reflections of Jake the Snake. Triumphalism wasn’t what i was thinking. Rather eating some humble pie especially after his Nordstream adventures. I predict he goes away fairly soon. Late September or October wagging his tail behind him. Good riddance.
Yep. Back to the crypt for him, and a stake through the heart.
Didn't napoleon try this same trick with same result?
Just a thought, I’m far from an astute financial guy, but if BRICS want to back their currencies with gold and the current price of gold, wouldn’t many of them have to devalue their currencies?
Has anyone seen how this currency is composed? What's in the basket? Is gold actually in the basket? Is the Brick exchangeable for gold? I've not seen any details. So far all I've read is hype.
"If gold is in the basket, that benefits Russia but hurts China."
How does that hurt China?
Where do you get your info? Or do you just make it up?
https://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/top-gold-producing-countries/
China, Australia and Russia are the largest producers of gold in the world, but which countries round out the list? Find out here.
https://moneyweek.com/investments/commodities/gold/603131/how-much-gold-does-china-own
Well, my argument is that China has much more gold than it says it does.
There are two parts to this argument. First, China’s gold mining. In 2007, China overtook South Africa as the world’s largest gold producer. It has remained so ever since. This past decade it has produced about 15% of all the gold mined in the world.
Since 2000, China has mined roughly 6,830 tonnes. Over half of Chinese gold production is state-owned – the China National Gold Group Corporation alone accounts for 20%. And China keeps the gold it mines – the export of domestic mine production is not allowed.
I say that number again: 6,830 tonnes. Already that official 1,948 figure looks very dubious.
With reserves in decline at home, Chinese mining companies have also been buying assets abroad, across Africa, South America and Asia. International production exceeds domestic production – by about 15 tonnes in 2020.
Second, there is the fact that, as well as being the biggest producer, China is the world’s biggest importer. Gold imports via Switzerland and Dubai are not always declared, but we do know that via Hong Kong alone, over 6,700 tonnes have entered the country since 2000.
Add that to cumulative gold production since 2000, and you get a figure over 13,500 tonnes.
I'm not the guy to explain this, but I think the answer lies in the fact that this "currency" will for the time being only be used to settle international trade. African countries are jumping on this bandwagon because their earnings stem from export of commodities. They'll take payment in a variety of currencies, but for example the yuan and ruble will be backed by gold. The BRICS arrangement gets them out from under the US using the dollar to pressure them politically and economically.
Hopefully somebody else can explain this better.
And in particular to be used for purchase of large scale commodities.
Yes. International trade only.
What, losing another war? One we shouldn't have gotten into in the first place? Standard Operating Procedure now.
True. Except the wars are getting bigger, closer and with higher stakes.
Russia was just the straw that broke the camels back.
The US / West has been confiscating countries foreign country reserves (Venezuela, Afghanistan, etc), but Russia signaled nobody was safe.
And denying use of Swift (Iran). Now Russia!
Ex Rulers have also had their assets seized. Marcos, Sani Abacha (Nigeria), Mobutu Sese Seko, etc.).
What set the latest seizure was going after Russian Oligarchs, that’s a huge step of expansion.
“This started because the West forced these countries to prioritize confiscation risk by the US higher than default risk between each other.”
Someone slapped the bully. Confiscating Russia's dollar reserves and kicking them out of Swift may go down as one of the greatest foreign policy acts of modern history. The decoupling from the US was already happening, but it put it all into top gear.
"Biden should be 'a little concerned' about Cornel West" but he obviously isn't.
Headline in today's Zerohedge: "Biden DOJ Indicts Whistleblower Prepared To Testify Against Biden Family"
As Scott Adams puts it: "When the government indicts a whistleblower, the assumption of guilt has to be on the government. The truth might be different, but government corruption has to be your working assumption until and unless events show otherwise."
Zhou doesn’t even know who Cornel West is. Of course West would have to secure the Green Party ticket first.
Perle: To be aware of objective dangers one must be sentient and you’ll never convince me that biden- lower case on purpose-knows what planet he’s on 90% of the time and the other 10% he is marginally aware of the real world, his only concern is if there’s any chocolate chip ice cream available. :-)
Truly a sad state of affairs that we find ourselves in.
My Biden mention was a quote from the article. What amazes me is how little concerned are those supposedly clever people who are running things with the sentiment of the Country. People don't have to love or even like Trump to be disturbed with the barrage of lawsuits (a fresh one out today where the DOJ is giving the green light for the Carroll lady to sue for more money) and the lack of any accountability on the part of the Bidens for matters affecting our government. Even assuming you can stay in control forever, wouldn't it make sense to curry favor with as large a segment of the population as possible?
The Dems have their 40-50% who will always vote for them no matter what they do.
Police Investigating Corpse That Washed Up On Delaware Beach
https://twitter.com/TheBabylonBee/status/1678502381494079488
'OK, Take Us To A Different Leader,' Say Exasperated Aliens After Trying To Communicate With Joe Biden
https://twitter.com/TheBabylonBee/status/1678787532547407872
LOL
Times 2
Thanks for the update and the links, but the comparison to Nazi Germany and Operation Barbarossa is ludicrous. Hitler had every reason to expect a successful conclusion from his superb fighting machine, and was surprised that in Stalingrad the Russians kept fighting like animals when they should have realized they had been defeated. There is no substance to the hype and wishful thinking that dominates the Washington approach to everything they are doing. As MacGregor stated, Putin is preparing to continue to live with his neighbors. Our gov'mint doesn't even care that domestically half the Country do not respect or support them. Putin has apparently made common cause with Prigozhin. In America we have the latest 'trial du jour' against the popular Trump even as the Biden scandals go on unabated.
Maybe a comparison of the two campaigns doesn't fit exactly, but they both demonstrate exactly the same mindset toward Russia: they are backward barbarians who will recoil in fear and confusion at a resounding blow from the far more sophisticated West.
I think the point is, Perle, the private journals spoke of a foreboding that that Nazi leadership miscalculated the resilience and strength of their foe not to mention their courage. I see the early Nazi victories as similar to the USA running roughshod on the Middle East and other third world countries and then feeling they could rule the world.
The only point I was making is that whereas Germany posed a serious threat, America and the Ukraine could not mount a credible challenge. The Kursk battle was monumental in scope. That generation of Americans beat the Nazis. Quoth the raven, nevermore.
Thanks for the article and the analogy of the German triumphal attitude that presaged the disastrous loss to Russia. Today I have read a post by "Big Serge for Big Serge Thought" that dealt with this "German attitude" toward Russia in a later stage of ripening. Specifically the German planning before The Citadel" or the geographically the battle of Kursk.
The focus is how does an army already in the throes of defeat react to the reality of defeat. What was presented in the article was that Hitler and the entire German Command understood the battle would present a damned if you do and a damned if you don't situation.
How can a country best accept the reality fo defeat?
Along the “accepting the reality of defeat” lines, the Emperor of France, an erstwhile Great Power, has spoken:
“I have decided to increase deliveries of weapons and equipment to enable the Ukrainians to have the capacity to strike deeply," Macron said, while declining to say how many missiles would be sent.”
I’m sure MKB (the inimitable Bhadrakumar) is shaking his head in disbelief.
Right. Kursk was absolutely senseless--denial.
Yep. Even Manstein, one of the few military leaders who understood how to counter the Russians' deep war operations, wanted to carry on with the offensives, even when it was clear that the cream of the German panzer units were being ground into pieces. Group Think and wish fulfillment are very powerful.
"This means engaging with Russia in a near future and discouraging it from pressing ahead forthwith with any major offensive to end the war conclusively in its favour." Ha! I've already booked my popcorn and front-row seat for that one. I bet Putin won't be sleeping much tonight worrying about that.
LOL!
NATO and the neocons believed what they wanted to hear. One example is the Western arms industry. Their representatives have a lot of influence, especially in DC, so for 8 years they've been telling the pols how "game-changing" the US weapons were that they were supplying to the Ukrainians. Add to that retired fools like Rumblossom Hodges and the rest telling DC how weak the Russian army was and you have a perfect storm of delusion and confirmation bias.
More simple thinking.
I simply don't buy the argument that 'Western intelligence' failed. It had to have been Western decision-makers who wouldn't listen and decided to gamble. Out of desperation? Well, yes, since part of the war rationale is a coverup (in all likelihood a criminal coverup) for a decade (or more) of government lies about our role in Ukraine.
There is one fundamental truth...which has been apparent (to me, at least) since I first listened to and read (and re-read) John Mearsheimer and the realist community 16 months ago. This war is an existential threat to Russia. Existential means...a threat to its survival...it means that there is no alternative. Russia could be losing today on the battlefield, and going bankrupt from sanctions and confiscations, and facing global opprobrium for 'war crimes' and...starving...and I am certain that it would not quit. It would not quit if 'Ukrainian' troops were on the road 12 miles outside Moscow. It explains why Putin (in fact as much a 'democratically' elected leader as virtually anyone in the West...certainly as much as 'Joe Biden') has huge support from the Russian 'establishment' and the Russian people. They 'know' this. As we have been reading here in Meaning recently, the 'West' has been trying this stunt (defeating Russia) for hundreds of years, at great cost in blood and tears to Russia. The last time a coalition of 'Western' forces tried to conquer Russia it cost the Russians (according to RT) 26 million casualties. https://russiapedia.rt.com/russian-history/the-great-patriotic-war/. I doubt the Russians are under any illusions (or delusions) about the consequences of defeat. Which are simply unacceptable. They are existential.
While the stakes are undoubtedly very high...some have argued also existential... for the West...and perhaps they are for the likes of 'Joe Biden', I would argue that they are better characterized as 'aspirational'. Wouldn't it be nice for the American Empire if we took down Russia and established political/military control over a federation spanning eleven time zones, with the largest nuclear arsenal in the world, and the world's most valuable reservoir of natural resources. https://www.basicplanet.com/top-10-countries-natural-resources-world/.
If you look at the chart at the basicplanet link, the BRICS countries plus Saudi Arabia, Iraq and Iran have resources valued in the hundreds of trillions of dollars, far exceeding the US and Canada, and this does not include the resource wealth of almost all of Africa. And haven't Saudi Arabia and Iran expressed a formal interest in an alliance with the BRICS? So, yes, knocking off Russia and splitting up the BRICS would be a nice accomplishment for our global hegemonic class. But its not existential. That's the major difference and why, I simply believe, Russia will never concede.
"I simply don't buy the argument that 'Western intelligence' failed. It had to have been Western decision-makers who wouldn't listen and decided to gamble."
Having worked for over two decades inside 'Western intelligence' I can say that I don't find the idea of an intel "fail" to be unbelievable. Groupthink is a powerful thing, especially when promotion depends upon it. Also ideological blinders--very effective. I think there was a combination of these influences in play: Ideological blinders on the part of the Neocons, to include ingrained belief in Russian inferiority, and a careerist give 'em what they want 'analytical' mentality, which included a bit of brainwashing from the ideological side.
Which brings us back to the original anti-Russian conflict in WW2. The group think in the upper reaches of the Nazi hierarchy concerning the feasibility of defeating Soviet Russia must have been off the charts.
I don't know, Rascal. For me, the key issue isn't what blacks think or how Biden is polling. No, the key issue is voter fraud in the swing states. It doesn't matter how terrible Biden is doing, if that is not sorted, then the Dems will clean up again in 2024. And the GOP is doing nothing about this key issue.