The world’s new monetary system, underpinned by a digital currency, will be backed by a basket of new foreign currencies and natural resources. And it will liberate the Global South from both western debt and IMF-induced austerity.
By Pepe Escobar, posted with the author’s permission and cross-posted at The Cradle.
Sergey Glazyev is a man living right in the eye of our current geopolitical and geo-economic hurricane. One of the most influential economists in the world, a member of the Russian Academy of Sciences, and a former adviser to the Kremlin from 2012 to 2019, for the past three years he has helmed Moscow’s uber strategic portfolio as Minister in Charge of Integration and Macroeconomics of the Eurasia Economic Union (EAEU).
Glazyev’s recent intellectual production has been nothing short of transformative, epitomized by his essay Sanctions and Sovereignty and an extensive discussion of the new, emerging geo-economic paradigm in an interview to a Russian business magazine.
In another of his recent essays, Glazyev comments on how “I grew up in Zaporozhye, near which heavy fighting is now taking place in order to destroy the Ukrainian Nazis, who never existed in my small Motherland. I studied at a Ukrainian school and I know Ukrainian literature and language well, which from a scientific point of view is a dialect of Russian. I did not notice anything Russophobic in Ukrainian culture. In the 17 years of my life in Zaporozhye, I have never met a single Banderist.”
Glazyev was gracious to take some time from his packed schedule to provide detailed answers to a first series of questions in what we expect to become a running conversation, especially focused to the Global South. This is his first interview with a foreign publication since the start of Operation Z. Many thanks to Alexey Subottin for the Russian-English translation.
The Cradle: You are at the forefront of a game-changing geo-economic development: the design of a new monetary/financial system via an association between the EAEU and China, bypassing the US dollar, with a draft soon to be concluded. Could you possibly advance some of the features of this system – which is certainly not a Bretton Woods III – but seems to be a clear alternative to the Washington consensus and very close to the necessities of the Global South?
Glazyev: In a bout of Russophobic hysteria, the ruling elite of the United States played its last “trump ace” in the hybrid war against Russia. Having “frozen” Russian foreign exchange reserves in custody accounts of western central banks, financial regulators of the US, EU, and the UK undermined the status of the dollar, euro, and pound as global reserve currencies. This step sharply accelerated the ongoing dismantling of the dollar-based economic world order.
Over a decade ago, my colleagues at the Astana Economic Forum and I proposed to transition to a new global economic system based on a new synthetic trading currency based on an index of currencies of participating countries. Later, we proposed to expand the underlying currency basket by adding around twenty exchange-traded commodities. A monetary unit based on such an expanded basket was mathematically modeled and demonstrated a high degree of resilience and stability.
At around the same time, we proposed to create a wide international coalition of resistance in the hybrid war for global dominance that the financial and power elite of the US unleashed on the countries that remained outside of its control. My book The Last World War: the USA to Move and Lose, published in 2016, scientifically explained the nature of this coming war and argued for its inevitability – a conclusion based on objective laws of long-term economic development. Based on the same objective laws, the book argued the inevitability of the defeat of the old dominant power.
Currently, the US is fighting to maintain its dominance, but just as Britain previously, which provoked two world wars but was unable to keep its empire and its central position in the world due to the obsolescence of its colonial economic system, it is destined to fail. The British colonial economic system based on slave labor was overtaken by structurally more efficient economic systems of the US and the USSR. Both the US and the USSR were more efficient at managing human capital in vertically integrated systems, which split the world into their zones of influence. A transition to a new world economic order started after the disintegration of the USSR. This transition is now reaching its conclusion with the imminent disintegration of the dollar-based global economic system, which provided the foundation of the United States global dominance.
The new convergent economic system that emerged in the PRC (People’s Republic of China) and India is the next inevitable stage of development, combining the benefits of both centralized strategic planning and market economy, and of both state control of the monetary and physical infrastructure and entrepreneurship. The new economic system united various strata of their societies around the goal of increasing common wellbeing in a way that is substantially stronger than the Anglo-Saxon and European alternatives. This is the main reason why Washington will not be able to win the global hybrid war that it started. This is also the main reason why the current dollar-centric global financial system will be superseded by a new one, based on a consensus of the countries who join the new world economic order.
In the first phase of the transition, these countries fall back on using their national currencies and clearing mechanisms, backed by bilateral currency swaps. At this point, price formation is still mostly driven by prices at various exchanges, denominated in dollars. This phase is almost over: after Russia’s reserves in dollars, euro, pound, and yen were “frozen,” it is unlikely that any sovereign country will continue accumulating reserves in these currencies. Their immediate replacement is national currencies and gold.
The second stage of the transition will involve new pricing mechanisms that do not reference the dollar. Price formation in national currencies involves substantial overheads, however, it will still be more attractive than pricing in ‘un-anchored’ and treacherous currencies like dollars, pounds, euro, and yen. The only remaining global currency candidate – the yuan – won’t be taking their place due to its inconvertibility and the restricted external access to the Chinese capital markets. The use of gold as the price reference is constrained by the inconvenience of its use for payments.
The third and the final stage on the new economic order transition will involve a creation of a new digital payment currency founded through an international agreement based on principles of transparency, fairness, goodwill, and efficiency. I expect that the model of such a monetary unit that we developed will play its role at this stage. A currency like this can be issued by a pool of currency reserves of BRICS countries, which all interested countries will be able to join. The weight of each currency in the basket could be proportional to the GDP of each country (based on purchasing power parity, for example), its share in international trade, as well as the population and territory size of participating countries.
In addition, the basket could contain an index of prices of main exchange-traded commodities: gold and other precious metals, key industrial metals, hydrocarbons, grains, sugar, as well as water and other natural resources. To provide backing and to make the currency more resilient, relevant international resource reserves can be created in due course. This new currency would be used exclusively for cross-border payments and issued to the participating countries based on a pre-defined formula. Participating countries would instead use their national currencies for credit creation, in order to finance national investments and industry, as well as for sovereign wealth reserves. Capital account cross-border flows would remain governed by national currency regulations.
The Cradle: Michael Hudson specifically asks that if this new system enables nations in the Global South to suspend dollarized debt and is based on the ability to pay (in foreign exchange), can these loans be tied to either raw materials or, for China, tangible equity ownership in the capital infrastructure financed by foreign non-dollar credit?
Glazyev: Transition to the new world economic order will likely be accompanied by systematic refusal to honor obligations in dollars, euro, pound, and yen. In this respect, it will be no different from the example set by the countries issuing these currencies who thought it appropriate to steal foreign exchange reserves of Iraq, Iran, Venezuela, Afghanistan, and Russia to the tune of trillions of dollars. Since the US, Britain, EU, and Japan refused to honor their obligations and confiscated the wealth of other nations which was held in their currencies, why should other countries be obliged to pay them back and to service their loans?
In any case, participation in the new economic system will not be constrained by the obligations in the old one. Countries of the Global South can be full participants of the new system regardless of their accumulated debts in dollars, euro, pound, and yen. Even if they were to default on their obligations in those currencies, this would have no bearing on their credit rating in the new financial system. Nationalization of extraction industry, likewise, would not cause a disruption. Further, should these countries reserve a portion of their natural resources for the backing of the new economic system, their respective weight in the currency basket of the new monetary unit would increase accordingly, providing that nation with larger currency reserves and credit capacity. In addition, bilateral swap lines with trading partner countries would provide them with adequate financing for co-investments and trade financing.
The Cradle: In one of your latest essays, The Economics of the Russian Victory, you call for “an accelerated formation of a new technological paradigm and the formation of institutions of a new world economic order.” Among the recommendations, you specifically propose the creation of “a payment and settlement system in the national currencies of the EAEU member states” and the development and implementation of “an independent system of international settlements in the EAEU, SCO and BRICS, which could eliminate critical dependence of the US-controlled SWIFT system.” Is it possible to foresee a concerted joint drive by the EAEU and China to “sell” the new system to SCO members, other BRICS members, ASEAN members and nations in West Asia, Africa and Latin America? And will that result in a bipolar geo-economy – the West versus The Rest?
Glazyev: Indeed, this is the direction where we are headed. Disappointingly, monetary authorities of Russia are still a part of the Washington paradigm and play by the rules of the dollar-based system, even after Russian foreign exchange reserves were captured by the west. On the other hand, the recent sanctions prompted extensive soul searching among the rest of the non-dollar-block countries. western ‘agents of influence’ still control central banks of most countries, forcing them to apply suicidal policies prescribed by the IMF. However, such policies at this point are so obviously contrary to the national interests of these non-western countries that their authorities are growing justifiably concerned about financial security.
You correctly highlight potentially central roles of China and Russia in the genesis of the new world economic order. Unfortunately, current leadership of the CBR (Central Bank of Russia) remains trapped inside the intellectual cul-de-sac of the Washington paradigm and is unable to become a founding partner in the creation of a new global economic and financial framework. At the same time, the CBR already had to face the reality and create a national system for interbank messaging which is not dependent on SWIFT, and opened it up for foreign banks as well. Cross-currency swap lines have been already set up with key participating nations. Most transactions between member states of the EAEU are already denominated in national currencies and the share of their currencies in internal trade is growing at a rapid pace.
A similar transition is taking place in trade with China, Iran, and Turkey. India indicated that it is ready to switch to payments in national currencies as well. A lot of effort is put in developing clearing mechanisms for national currency payments. In parallel, there is an ongoing effort to develop a digital non-banking payment system, which would be linked to gold and other exchange-traded commodities – the ‘stablecoins.’
Recent US and European sanctions imposed on the banking channels have caused a rapid increase in these efforts. The group of countries working on the new financial system only needs to announce the completion of the framework and readiness of the new trade currency and the process of formation of the new world financial order will accelerate further from there. The best way to bring it about would be to announce it at the SCO or BRICS regular meetings. We are working on that.
The Cradle: This has been an absolutely key issue in discussions by independent analysts across the west. Was the Russian Central Bank advising Russian gold producers to sell their gold in the London market to get a higher price than the Russian government or Central Bank would pay? Was there no anticipation whatsoever that the coming alternative to the US dollar will have to be based largely on gold? How would you characterize what happened? How much practical damage has this inflicted on the Russian economy short-term and mid-term?
Glazyev: The monetary policy of the CBR, implemented in line with the IMF recommendations, has been devastating for the Russian economy. Combined disasters of the “freezing” of circa $400 billion of foreign exchange reserves and over a trillion dollars siphoned from the economy by oligarchs into western offshore destinations, came with the backdrop of equally disastrous policies of the CBR, which included excessively high real rates combined with a managed float of the exchange rate. We estimate this caused under-investment of circa 20 trillion rubles and under-production of circa 50 trillion rubles in goods.
Following Washington’s recommendations, the CBR stopped buying gold over the last two years, effectively forcing domestic gold miners to export full volumes of production, which added up to 500 tons of gold. These days the mistake and the harm it caused are very much obvious. Presently, the CBR resumed gold purchases, and, hopefully, will continue with sound policies in the interest of the national economy instead of ‘targeting inflation’ for the benefit of international speculators, as had been the case during the last decade.
The Cradle: The Fed as well as the ECB were not consulted on the freeze of Russian foreign reserves. Word in New York and Frankfurt is that they would have opposed it were they to have been asked. Did you personally expect the freeze? And did the Russian leadership expect it?
Glazyev: My book, The Last World War, that I already mentioned, which was published as far back as 2015, argued that the likelihood of this happening eventually is very high. In this hybrid war, economic warfare and informational/cognitive warfare are key theaters of conflict. On both of these fronts, the US and NATO countries have overwhelming superiority and I did not have any doubt that they would take full advantage of this in due course.
I have been arguing for a long time for the replacement of dollars, euro, pounds, and yen in our foreign exchange reserves with gold, which is produced in abundance in Russia. Unfortunately, western agents of influence which occupy key roles at central banks of most countries, as well as rating agencies and key publications, were successful in silencing my ideas. To give you an example, I have no doubt that high-ranking officials at the Fed and the ECB were involved in developing anti-Russian financial sanctions. These sanctions have been consistently escalating and are being implemented almost instantly, despite the well-known difficulties with bureaucratic decision making in the EU.
The Cradle: Elvira Nabiullina has been reconfirmed as the head of the Russian Central Bank. What would you do differently, compared to her previous actions? What is the main guiding principle involved in your different approaches?
Glazyev: The difference between our approaches is very simple. Her policies are an orthodox implementation of IMF recommendations and dogmas of the Washington paradigm, while my recommendations are based on the scientific method and empirical evidence accumulated over the last hundred years in leading countries.
The Cradle: The Russia-China strategic partnership seems to be increasingly ironclad – as Presidents Putin and Xi themselves constantly reaffirm. But there are rumbles against it not only in the west but also in some Russian policy circles. In this extremely delicate historical juncture, how reliable is China as an all-season ally to Russia?
Glazyev: The foundation of Russian-Chinese strategic partnership is common sense, common interests, and the experience of cooperation over hundreds of years. The US ruling elite started a global hybrid war aimed at defending its hegemonic position in the world, targeting China as the key economic competitor and Russia as the key counter-balancing force. Initially, the US geopolitical efforts were aiming to create a conflict between Russia and China. Agents of western influence were amplifying xenophobic ideas in our media and blocking any attempts to transition to payments in national currencies. On the Chinese side, agents of western influence were pushing the government to fall in line with the demands of the US interests.
However, sovereign interests of Russia and China logically led to their growing strategic partnership and cooperation, in order to address common threats emanating from Washington. The US tariff war with China and financial sanctions war with Russia validated these concerns and demonstrated the clear and present danger our two countries are facing. Common interests of survival and resistance are uniting China and Russia, and our two countries are largely symbiotic economically. They complement and increase competitive advantages of each other. These common interests will persist over the long run.
The Chinese government and the Chinese people remember very well the role of the Soviet Union in the liberation of their country from the Japanese occupation and in the post-war industrialization of China. Our two countries have a strong historical foundation for strategic partnership and we are destined to cooperate closely in our common interests. I hope that the strategic partnership of Russia and the PRC, which is enhanced by the coupling of the One Belt One Road with the Eurasian Economic Union, will become the foundation of President Vladimir Putin’s project of the Greater Eurasian Partnership and the nucleus of the new world economic order.
Out of the frying pan and into the fire.
Sounds like a WEF wet dream, herding us into the digital ghetto.
No thanks.
Wanted to believe Russia was against these plans for our demise, but alas, ’tis not so.
digital is a tool. like a hammer or a gun.
its not intrinsically bad or good. it will all depend on its use.
Yes, and as Ringo Starr correctly stated:
“Everything government touches turns to crap.”
So maybe not at first but fairly quickly your digital will turn to crap.
History is on the side of crappiness wherever government is found.
‘crappines wherever govt is found’.
How curious that both the late 19th century anarchists and the early men, dwellers of the cavern times used to think exactly the same way.
Which later the Soros, the Rotchchilds, the Koch bros and a tiny crew of a kind also merrily espoused.
Not in China.
Almost everything Beijing touches turns to gold.
Their economy will grow by 5.9%, to $29 trillion ppp this year [Credit Suisse].
Ten years ago, it grew $1.3 trillion, to $12 Tn.
So everyone will continue doubling their real wages every ten years.
Meanwhile the rivers are clearing up fast, they’ve opened a nature reserve bigger than Massachusetts, their life expectancy has passed ours.
To our shame, there are more hungry children, drug addicts, suicides and executions, more homeless, poor, illiterate, and imprisoned citizens in America than in China.
Yes, not jailed, but murdered. See http://www.truedemocracy.net/td22/index.html especially the first section
What happened to Eric Zeusse. His last addition to fiction literature over Russian preemptive Ukrainian strike is like drinking sand.
what is de difference between a number on a piece of paper ,and a number on the screen?
The number on paper is inked permanent, the number on the screen can be changed/manipulated/hacked at anytime.
Its a step by step fraud.
First barter,
then your exchange is based on real value metal (gold, silver, copper),
then your exchange is based on coloured paper backed by a trusted government real gold deposit,
then your exchange is based on coloured paper backed by your trust in private central bank bonds,
then your exchange is based on coloured paper backed by your trust in private central banks derivatives,
then your exchange is based on a bank card and a number from the thin air on your screen and ATMs,
then your exchange is based on an Iphone,
then your exchange is based on a chip in your stupid right forehead or your hand.
and you own nothing, and goofy is happy, goofy is shining all over his head :-D.
@Tommy Jensen
but i thought QE ,made fiat currency what it is, an illusion en obsollete,after all the the dollar do not have any value but a monopole in transaction,we can add détails and pension funds, but behind the nummer on the paper,it only rely on subversion and perception of
All money in the western banking system is created as interest bearing debt by private banks, that turns 90% of their population into debt slaves. All wealth is created by the workforce. The banks are just the parasites on industrial capitalism.
For Vladimir Putin to fire Elvira Nabiullina would require an Amendment to the present Russian Constitution that was concocted by US financial advisors when Yeltsin was supposedly at the the helm.
But did they have to re-appoint her?
Probably better with the devil you know.
“All wealth is created by the workforce. ” That is a false statement. A lot of the workforce can’t create anything.
That is why there is a minimum wage.
The US Bureau of Labor Statistics reduces the number of unemployed by re-categorizing most of them as “not in the workforce”.
“To give you an example, I have no doubt that high-ranking officials at the Fed and the ECB were involved in developing anti-Russian financial sanctions.” — – from article.
I cannot understand why Vlad cannot not only sack her but end her priveledged life! In taking orders from the IMF she is a Traitor & should be treated as one. Not the time to f about !
the digital ghetto will be a reality for the whole world. Russia is looking to be creative to overcome sanctions. We all now have to be insightful. We cannot be deceived. Here we all think Biden is weak, crazy and has dementia. I wonder if Biden is faking dementia to fool his opponents? Instead of being foolish and demented, wouldn’t Biden be a genius who beat the smart Trump?
Biden offers an imaginary friend handshake now in a speech, and everyone immediately thinks Biden is deranged and going crazy. We must question all things. Without insight we will not overcome evil. Russia must seek all ways, to get out of the pursuit that the west is doing.
Please be objective, instead of making a failed entity like WEF credible. What are WEF’s successes?
Central bank notes (cash) didn’t replace coins, similarly digital currencies won’t replace cash. Digital currencies are nothing but electronic cash. Most nations limit carrying more than $10,000 in cash outside their borders. Why? Please try withdrawing more than $10k in the U$A. Even the CBR is limiting foreign currencies conversion to $10k. What % of your payments are in cash?
Digital currencies are good for international trade as payment can be executed instantaneously. Nations can do currency swaps and have minimum reserves. Nations would do better by keeping their assets within their borders and eliminate the challenge of sanctions and freezing of assets. The Financial Empire is pushing its privately controlled cryptocurrencies to capture sovereign digital currencies. Why use private money?
The privilege of issuing money is synonymous with economic power. When it comes to Russia, its CBR has weakened its Ruble’s power & performed poorly. It has enabled outflows of nearly a trillion of dollars. It has weakened Ruble by limiting its global usage. If nation’s currency power is weak then it will devalue, causing inflation. Is this so hard for Russia’s CBR and Vladimir Putin to understand this reality? Why does the CBR talk about managing inflation by increasing the interest rate, when it is driving this negative cycle. Many Russian traitors then talk about Russia needing foreign capital, when it can create its own sovereign money. Until Russia addresses its major important monetary challenges it is lost and not sovereign.
Any nation whose majority of international trade (50+%) is happening in foreign currencies, cannot claim to be a global power. This is a better and objective way to identify global powers.
You may have missed a critical, single sentence. *The single digital currency is limited to, and used for, cross-border trade only.*
Within country, local currency is created & used as sovereign nations see fit for their country’s needs. Iow, no centralized IMF-style debt-slave control over loans with forced austerity programs.
Each country runs their own financial system & creates their own currency.
A single currency, to which local currencies are pegged, is used for cross border trade & nothing more.
Hi Mary,
Didn’t miss that sentence. Maybe you know better. Please explain, “The single digital currency is limited to, and used for, cross-border trade only,” who creates this single digital currency? Who defines the conversion ratio between the Single Digital Currency (SDC) and the local currency? What happens in the case of deficits for a short term and many decades (structural problem)?
Until this is explained in a detailed manner, the currency swaps and national currencies drive the international trade. Deeds and details reveal reality. Details, please.
A joint body including EAEU + China, India, Iran, and some other countries creates this Digital trading currency. it has nothing to do with each of the individual countries financial policy within their own sovereign nations
It looks to me like the financial leaders of the involved countries are working out those details. The best person to answer your questions re details would be Sergey Glazyev!
If you can trace it, it’s not currency.
They don’t need a currency for that. A simple conversion ratio to a common unit for each nation will do and it be published along with the monetary data. This happens in the stock market where companies share the total number of shares without disclosing the allocation details (executive shares are public).
What happens if the Empire’s financial institutions refuse to transact in that digital currency? The West likes to trade only in its currencies. How will Russia, China, India,… overcome this challenge? They can also make a declaration that the earned income won’t be sanctioned or frozen. The challenge for China, Russia, India, … is to have a better & fair system than their adversaries.
Russia’s credibility depends on how it ensures that the unfriendly nations pay in Rubles. Russia needs to show resolve and accomplish it successfully. Its reputation is at stake. It should have a put a simple clause in its agreements of switch to other currencies if it can’t use the currency of the payment. Russia’s agreements lack basic safeguards to protect its interests.
Fiat Digital Currency is far, far, more dangerous than fiat paper currency. No digital money please, it will surely lead to more inequality, control and rape of already subjugated resources rich countries like India.
This recommendation of digital money is ringing alarm bells as if this entire Z episode is a Machiavellian “Cause and Effect” where we are unsuspectingly ushered into the era of Digital Money. Digital Money is terrifying.
The inequality in the currency values of nations of the world should be eliminated if we really desire equality and justice. Otherwise, even resources rich poorer countries kept in perpetual poverty through the existing IMF currency valuing system will continue to suffer poverty, inequality and injustice under the proposed new non IMF system as well. The only apparent change would be from IMF to non IMF, just like a change of masters for those held in slavery.
Zayi,
Credit cards are nothing but digital credit and transactions. What % of your payments are in the physical cash? In the U$A for most people already 95+% of payments are digital (gas, oil, Internet, insurance, wireless, loans, mortgage, …). When it comes to businesses nearly 100% of transactions are digital. Same in most Western countries. Many parking meters only take digital payments. In summary, the world has moved to the digital arena.
Central Bank Digital Currency (CBDC) are nothing but like Central Bank Debit Card. Checkout Chinese e-CNY wallet. These central bank accounts offer 100% insurance protection, compared to current FDIC limit of $250k. We the people need to push for better protection of our rights and double authorization, where the individual authorizes all transactions from their account. Many safeguards need to be in place to protect citizen rights.
No individual uses IMF currency. IMF deals with nations. Please understand the key differences and push for sovereign money and demand end to private currencies. The real conflict is between sovereign vs private money.
fantastic interview thank you so much we are so priveledged to have you here.
Wikipedia scumbags are blaming him for Odessa. Wow. There is no limit to how low they will go.
“Further investigation also demonstrated significant involvement of Glazyev into the events that led to the tragedy in Odessa on 2 May 2014”
Sounds like the work of “Philip Cross”. Philip Cross is not a real person but an entity of the “intelligence” services (something like Winston in 1984 rewriting history):
https://www.craigmurray.org.uk/archives/2018/05/the-philip-cross-affair/
The 77th Brigade, Integrity Initiative – now Zinc. An Army Unit of internet warriors in Rapid Response mode.
Wikipedia = CIA.
Thanks Pepe for this large brush-stroke fresco of a possible future monetary system. But, as in all matters political, the difficulty is always the implementation. Sergey Glazyev’s views are interesting as a theoretical exercise but I’m afraid that the process to a global monetary system will be tortuous and very chaotic. So its real outcome could be a reality that your fresco fails to capture.
If interested to have a glimpse about what I’m talking about check Western moment of madness at the end of Modernity ! .
The Russians and Chinese still continue on a very moderate path concerning the entire Western objectives and continue to hope for a win-win solution, whereas in reality everybody know that the west wants nothing short of a regime change in Russia followed by the Chinese capitulation. The real enemy NATO has drawn long term plans and want the Russians absolutely stuck in the Ukrainian quagmire until their US-5th columnists inside Russia are in an ideal position for some kind of a coup followed by a civil war and finally the breakup of the state, that’s why they’re supplying weapons to Ukraine. If the SCO, EAEU, BRICS want a new global trading system, then they must do better coordination amongst themselves and make sure the Satan in Washington and London understands that.
What fantastic news and thanks ever so much to TS and Pepe for bringing this to us… you guys just made my Easter.
This is arguably the most important event in global economics since 1913. It is not Bretton Woods 3 at all that would be a massive undersell. This is exponentially bigger than Bretton Woods ever was. This new system could be well permanently stable and sustainable because it is not founded on debt entrapment and a fiat Ponzi scheme.
And it is Glazyez who comes up with a new global economic system that will spell the end of the hegemonic global private banking cartel and by extension Mr Global’s nemesis… and guess what… shock, horror, Glazyez is RUSSIAN!!!
Glazyez will make mincemeat of the current Anglo-American economic morons so desperately trying to put Rome back together again. Welcome to the exciting new Troika… Putin, Lavrov, and Glazyez… what a team!!!
…and my favourite paragraph… weeeeell, very much a case of what’s good for the goose…
“Transition to the new world economic order will likely be accompanied by systematic refusal to honor obligations in dollars, euro, pound, and yen. In this respect, it will be no different from the example set by the countries issuing these currencies who thought it appropriate to steal foreign exchange reserves of Iraq, Iran, Venezuela, Afghanistan, and Russia to the tune of trillions of dollars. Since the US, Britain, EU, and Japan refused to honor their obligations and confiscated the wealth of other nations which was held in their currencies, why should other countries be obliged to pay them back and to service their loans?”
Beers, cheers and popcorn downunder
Col
Not wanting to spoil your Easter and good to see you.
There are problems in implementation here that must be looked at before we get very happy.
Unlike many, I am a little skeptical. Just a list.
Odious debts – take a good look at Michael Hudson’s question. Odious debts have the opportunity to be defaulted on. OK, so far so good. But the stuff that collateralizes the odious debts? Simple example .. IMF gives a loan to say .. aarch .. Brazil. Brazil collateralizes with forests. Odious debt is defaulted on. Who owns the forest? (If you collateralize the same forest twice over .. can anyone say derivatives – there is major legal problems here).
Russia – where is Russia? To me it looks like there is a sales process here, to ‘sell a system’. If you look carefully and I know you do, this system is in operation already in the east and in some Zone B countries. Countries are already doing currency swops. One of my Chinese correspondents put it very humorously .. He says .. OK, says the two countries, you give me a very big bunch of ducks and I give you bunch of Baht. Crude, simple and effective. We’ve done our swop, let’s trade. This is off-book, so we do not know how big it is but from what I hear, extensive.
I miss Russia in this whole interview.
There are other problems in my view.
The gold issue – selling gold in open markets. The State Duma is partially to blame for this – because they did not pay enough – simply said. But, Russia’s gold is in Russia and they have no problems to trade it in ‘friendly countries’. A lot of people made a lot of money selling gold on open markets.
The freezing of Russia’s foreign exchange .. Despite the theft of gold of say Venezuela, or say Iran and the sanctions, there was never a wholesale grab of foreign exchange. The thefts were smaller. Never in anyone’s view could this foreign exchange grab have been foreseen. Reason is simple, you don’t expect your enemy to cut his own foot off right above the knee.
OK, so I’m not so bullish. At this moment I’m going with China and with Asean and with SCO – because I know Russia is there.
Glazyev should not be so harsh in criticizing Nabiullina and then by definition, Putin. I think he is shortsighted there. Which country will buy his system with criticizing the current leadership and the current leadership not buying the system? Something is off here.
Have a wonderful Easter and regards to your loved ones!
Glazyev is completely off in asserting that his ideas are “scientific” or that there are “laws” of economics (in the scientific sense rather than the legal). There are theories, hypotheses, heuristics, schools of thought – but no laws or science. That does not make his ideas wrong, of course.
Putin does have a knack of convincing people to be more loyal to his cause – Medvedev, Lukashenko among others. Perhaps Central Bank policy will be less Washington aligned in the future while still keeping the same board.
There are indeed scientific principles of physical economics – totally unknown to Harvard or Chicago School monetarists. Glazyev could explain better, as he has written various books.
Monetarism, whether MMT, Hayek, Friesman, London School of Economics, is the cul-de-sac he refers to. All monetarist roads lead to a dead end in the City of London ( a corporation by the way.)
I agree with you! That captured foreign reserves were the bait on Putin’s hook to spin the world in another direction. Quite prepared to write it off, I think, as would China with their Treasury bills…
some have suggested that China and other holders of significant unfriendly Dollar/Euro reserves use those to buy out IMF debt from developing/debtor countries and refinance in Yuan or other friendly reserve currency – that way kill two birds – China or other country preserves “value” of their reserves and no disputes over collateral for the debtor nation. Ships inflation back to US & EU.
All good Amarynth… and how utterly boring would it be if we agreed 100% on everything?
What a wealth of informed commentators there are here… all doing their level best to interpret and sort out the myriad of nuances in this new financial game of thrones. We are so blessed to have the likes of Pepe, Michael, and Fabian this week as well to help us all brainstorm this thoroughly fascinating new development.
I still see this event as every bit as important as the unconstitutional incorporation of the FED in 1913. I remain tremendously uplifted by the massive developments the last 2 weeks.
The fear of my life is that I would die and never get to see the world’s thieving private banksters exposed and dismembered once and for all. It is all happening now at a speed I could never have anticipated in my wildest dreams. The end of all banker’s wars is a very now real and imminent prospect.
The fact that the hegemon’s fall is fully self-inflicted by its extraordinarily greedy psychopathic membership makes it all the more satisfying to watch.
You and your family have a wonderful weekend too and I hope your orchard is doing great.
Cheers and hugs
Col
@Col…NZ “why should other countries be obliged to pay them back and to service their loans?”. Simple dear Watson.
Because they are threatened and forced to do so, as they have been threatened and forced for several centuries.
Thanks for the interview, very informative but also depressive.
Russia got some impressive military weapons, but even in this critical situation when $400 billions in Russian foreign reserves are frozen, Russia is still deep dependent on a bunch of US/IMF fifth colonne lapdogs in their Central Bank.
A too big “Achilles’ heal” and too much hopium for my taste. Zhririnovsky should have been in the chair for just some 6 month for a chock treatment of the chatting community of liberals.
Hi Tommy
You said… “Simple dear Watson.
Because they are threatened and forced to do so, as they have been threatened and forced for several centuries.”
Are you not missing the entire point here?…
IOW a completely new paradigm where “they” will now have a workable and sustainable alternative and they are no longer “forced” to do anything… simply because the financial/military hegemon has been defanged and now faces humiliating irrelevance.
Payback time perhaps… even for the minions, who always had sand kicked in their faces. Look how much of the world has crossed over already, pretty much half the world’s population in the first couple of weeks, and this is only the beginning.
Huge single sovereign reserve currencies were always a bad idea. So too debt entrapment by private banking cabals using fairy tale fiat to keep the productive sector on an economic treadmill.
This new system is the nemesis for all of that entrenched bullshite.
What’s not to like?
Cheers
Col
In my own opinion I got the point :-D. I agree the solution is charming, but seeing all the regime changes and threats also pt from a mad mad dog Im concerned about the huge pressure all these countries faces.
Remember how many African and Latin American Presidents were murdered, and the paid corrupt fifth colonne and stay behind network in nearly all countries, the latest threats to Pakistan and even Yellen up on threats to countries, I am big of concerns for any country who just lay off their obligations to not pay the bully.
And off course this lead me to be deeply concerned with weaknesses inside our favourite strong hero Russia.
Allons, enfants de la Terre! Oui, l’imagination et le rêve au Pouvoir!
The idea of universal debt-forgiveness is interesting – what if, say, the UK wanted to join?Just forget the 40 tons of gold owed to Venezuela? (etc, etc).
Hey is not that gold in SOLID bars/bullion/etc? It was / is not a loan-it was for “safe holding” until such time the Venezuelan government requested same.That forty (40) metric tonnes of tangible / physical gold was never used for / as any collateral by Venezuela, nor was to be held indefinitely by perfidious Albion.Therefore that scenario of not “paying back’ and “seizure” does not arise.
Glazyev has London/WallStreet totally and hysterically rattled!
Here is why : read on if you dare !
FROM EIR DAILY ALERT Academician Glazyev Memorializes LaRouche as ‘A Great Thinker of Our Time’
https://larouchepub.com/pr_lar/2019/190218_glazyev_memorializes_lar.html
Quote : “I remember one of the leaders of the Brookings Institution urging me, in a whisper, not to have any contact with LaRouche, so as not to spoil my reputation. For me, who had come to the U.S.A. to take part in a scientific forum on issues of developing democratic institutions in the post-Soviet region, this was shocking.”
This is from Glazyev, and there are many more with videos of conferences.
“History repeats itself twice: the first time in the form of a tragedy, the second — in the form of a farce.” The tragedy occurred in 1991, when the USSR collapsed, which wanted to make the whole world happy with “communism”. In parallel, the United States wanted and still wants to make the whole world happy with a “new world order”. Will we be witnessing a farce this time? Taking into account the fact that “this jerk” is often added to the surnames of many world “leaders” nowadays.
Almost all ‘western leaders’ are comedians. Funny thing, that?
lembre-se sempre de Ronald Reagan,o primeiro representante …
no Brasil,o apelido do presidente Bolsonaro é Bozo,desde o primeiro momento
At least Bolsonaro did get a good chat with Putin, and deals with China, defying Guaido’s D.C. masters….
Lula would do much better…. Dilma praises China’s model.
na verdade ,Putin orientou-o a respeito do que não fazer ,afinal o Brasil é B do BRICS e todas as responsabilidades decorrentes
com certeza ,com Lula ou Dilma estaríamos numa situação mais equilibrada em todos os sentidos
vide o que Lula fez no Irã de Ahmadinejad,contrapondo todo o Ocidente ,apoiando o programa nuclear e se colocando dentro de visão claramente multipolar
lá em 2010…
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Google-translate from mod:
In fact, Putin oriented him about what not to do, after all Brazil is B of BRICS and all responsibilities
Surely, with Lula or Dilma we would be in a more balanced situation in every way
See what Lula did in Iran of Ahmadinejad, contraping all the West, supporting the nuclear program and putting himself within clearly multipolar vision
There in 2010 …
you need to understand that bolsonaro defends the interests of the nationalist, patriotic military. He may be a bozo, but he was bold and insightful in shaking Putin’s hand in Moscow, and telling Putin a bossa nova song “on the sweet swing of the sea,” in defiance of the Biden administration and the CIA. Bolsonaro is a complex personality, you won’t understand him with just a video, or with just a paragraph. The military of the Bolsonaro profile around the world respect and admire Putin, like the “military” Donald Trump. Conservative militaries across the planet see truth in Putin.
The Brazilian forest is not important. What is important is what is under the forest, underground. Let’s not be childish and hasty. After Russia, Brazil is the country on the planet that has the most diverse natural resources (the second largest diamond reserve in the world on indigenous land, one of the largest amounts of gold on the planet, all types of ores, the largest amount of fresh water of the planet, and even more oil to be discovered along its extensive ocean coastline, and many other things). The US and CIA know this, and will do everything possible to create a new hybrid war and chaos in Brazil. India is already being subtly treated by the CIA. I am a prudent person, and I am not guided by anxiety, therefore I prefer to believe that the Satanic Empire will not be solved with magic formulas. Many twists await us on the planet.
Me desculpa, muitas Brasileiros fica com raiva de mim porque eu como gringo vi Bolsonaro positiva para voces Brasileiros.
Pra nos na fora, Bolsonaro estava defendendo voces em muitas assuntos, e tinha couragem pesoal para manter opinoes sinceres dele contra opinoes populares e contra as mentiras da MSM e EUA.
Nossos politicos tem um muito dificio trabalho e frentar muito pesado pressao. A culpa nao e so deles.
————————-
Google-translate from the moderator:
I’m sorry, many Brazilians get mad at me because I eat gringo vi positive bolsonaro for Brazilian vocals.
For us on the outside, Bolsonaro was defending voices in many matters, and had weighting weight to keep his sincere opinions against popular opinions and against MSM and US lies.
Our politicians have a very difficult work and frent very heavy pressure. It’s not your fault.
. . . . . . and the single most reason for America’s attempted derussification of Russia.
I have to wonder, considering the abject failure of the CBR (for years now) why any of their board members are still not in prison or at least charged with treason to defraud the RF, or why Putin still seems to be backing those utter imbeciles that clearly follow the contra Russian atlanticist agenda.
A diferença fundamental, o sinal fundador de uma nova era nas relações econômicas e sociais da humanidade, será quando a usura deixar de ter o peso mastodôntico que teve e tem nas relações de poder entre as “elites” econômicas e o restante da sociedade.
The fundamental difference, the founding sign of a new era in the economic and social relations of humanity, will be when usury ceases to have the massive weight it had and still has in the power relations between the economic “elites” and the rest of society.
Like charity, “comnplete overhaul of the financial system” begins at home.
Get rid of Niabulina already! Put Glazyev in charge of the Central bank.
As always, Escobar’s contributions are insightful and thought-provoking. How does he keep up with his atsounding output? I was particularly interested in the argument that a new financial system could open the way to widespread defaults on dollar denominated debt. This must cause nightmares on Wall Street, London and Washington and would be a fitting karma after the blatant theft of other countries’ assets. I have one question to which so far I’ve never seen a satisfactory answer, and a couple of observations about Glazyev’s analysis. My question is that, given the article’s criticism of the RCB is so widespread not only in Russia but also among independent commentors in the West (Paul Craig Roberts for instance has been railing about Nabuillina for years), why is she and her team still in place? One must presume that either Putin rates her leadership or else is somehow constrained not to remove her. Moving on, I believe Glazyev is too complacent about the long term strength of the critical China-Russia relatuonship. It’s – to put it mildly – disingenuous to claim that “the Chinese government and the Chinese people remember very well the role of the Soviet Union in the liberation of their country from the Japanese occupation”. Apart from the fact that for the younger generation these events are already shrouded in the mists of time, the Soviet Union only declared war on Japan at the last minute to take advantage of Japan’s military collapse. The Chinese (themselves would consider their own armies (Nationalist and Communist) played a far greater role in their liberation. Today’s partnership is clearly based on a combination of the personal chemistry between Putin and Xi, and pure realpolitik. Neither situation will last. As the American empire fades, tensions are bound to arise it’ll become increasingly clear that Russia is the junior partner. Apart from anything else, there must be worries that China is eyeing up part of the Russian Far East, where there are already major Chinese economic interests and settlements, I understand. Looking ahead, it would make sense for Russia to work on disengaging Germany from American suzerainity. No country (including Russia itself) is being more seriously impacted by the Washington imposed sanction regime. A Russo-German partnership would make strategic sense to both parties and could act as a counterweight to China is the New World Order.
Geopolitics is the intellectual cul-de-sac. Let it go.
“Russo-German partnership ”
What would be in it for Russia? Germany is done. You might dream of the “famous” German engineering and entrpreneurship, that went downhill from the 80s.
If need be, Russia could take a handfull of marketing “”experrts” just for fun, otherwise Germany can offer gazillions of gender-study graduates, but not enough rainbow unicorns for those, in Russia.
If Russia has some natural resources to spare,after it served Eurasia, Germany could be a well behaving customer and buy in currency and at the price, Russia determinse.
@ManintheMoon –
I would fundamentally disagree with your statement that:
“Today’s partnership is clearly based on a combination of the personal chemistry between Putin and Xi, and pure realpolitik. Neither situation will last. As the American empire fades, tensions are bound to arise it’ll become increasingly clear that Russia is the junior partner. Apart from anything else, there must be worries that China is eyeing up part of the Russian Far East, where there are already major Chinese economic interests and settlements, I understand.”
There is no “junior partner” in a symbiotic relationship. In this case, Russia has much to offer the Chinese and the Chinese have much to offer Russia. IMO, this will continue to be a relationship of equals, regardless of the size of their relative economies. Your assertion that China “is eying up part of the Russian Far East” is unproven and absurd. You’ve clearly been reading too many corporate media websites (aka USA deep state talking points).
I have suggested in previous posts to the Saker blog that one critical area where Russia and China could work together is in the naval arena. China is a master ship builder but has struggled to develop a nuclear-powered aircraft carrier. It also needs energy to fuel its industrial processes. Russia could supply both the expertise to create nuclear powered aircraft carriers and has vast energy reserves that could power China’s industry. Russia, on the other hand, could benefit from China’s track record of productivity in building naval vessels. I could see the two collaborating on new aircraft carriers and other ships that would reduce US naval advantages in the Pacific and expand Russia’s naval advantages in the Arctic and European theaters. There are other areas of mutual benefit such as outer space collaboration (space station, lunar station and Mars exploration).
I would also take umbrage with your belief that a Russian-German partnership would make more sense. Germany is a vassal state to USA interests. I challenge you to indicate where a Russian-German partnership makes sense when Germany does not have ship-building capacity nor does it have a space program.
I don’t think we are as far apart as you think and I take your points. I agree that Russia and China and economically complementary and have much to offer each other. That is self-evident but surely this is as much “realpolitik” as sharing a common enemy out to destroy both of them? However, Russia for all the limitations of its political system is basically a democracy and a reasonably free society – or at least was. China is not. I do not share the starry eyed view of their society which some on this site seem to have – Escobar for one. One does not have to subscribe to all the Sinophobia of Beltway think tanks to accept it is a nasty totalitarian system with very little personal freedom, and which is still some some way ahead of our own rulers in being able to make life hell for their citizenry.. Take a look at the recent videos of people screaming from Shanghai skyscrapers as they are locked down for a month, fed a dit of spam – if they’re lucky and have their pets taken away and killed. I think these are as real as those of the wretched Russian POWs being tormented by Azovs.
(Ok, much of the brainwashed west has kowtowed to slightly less draconian madness, but we at least still have sizeable minority able to think for themselves). Russia has been at least since Peter the Great broadly part of European Christian culture. If European countries had not become such lapdogs of Washington, this should have been recognised after the fall of the Soviet system and Russia welcomed into the fold. If you take away economic and political self-interest, what have China and Russia in common? As for the Germans, their main enemy has been their own ruling class. German technical and industrial know-how is still there. However, I fear you are right that they may have already destroyed themselves with mass immigration, chronic wokeness and mass compliance with the covid/”vaccination” nonsense. As to Russia being the junior partner, I am referring to the size of the respective economies. I’d back the Russians to play a weaker hand as well as possible, but I doubt the leadership are in any doubt that China would eat them for breakfast if it suits them in future.
@ManintheMoon
I repeat my challenge from my 10:15 post: “I would also take umbrage with your belief that a Russian-German partnership would make more sense. Germany is a vassal state to USA interests. I challenge you to indicate where a Russian-German partnership makes sense when Germany does not have ship-building capacity, nor does it have a space program.” Your post at 12:09 simply ignores this challenge.
Regards the gist of your other statements in your 12:09 post, it boils down to this as far as I can tell: “Russia has been at least since Peter the Great broadly part of European Christian culture.” Therefore, Russia should align itself with European interests and not Chinese as China is “a nasty totalitarian system with very little personal freedom, and which is still some way ahead of our own rulers in being able to make life hell for their citizenry.”
This I would simply say is not true. Russia is a multi-ethnic, multi-religious society. It is not solely beholden to European Christian culture. Again, your point-of-view seems colored by too much Euro-USA corporate media reading.
Have you ever been to China? I’ve been there twice and loved both of my visits. I spoke to several business entities at a conference, shared meals, and was treated with profound respect and honor by those I met. In fact, I was surprised at this behavior given what I had been indoctrinated to believe – summed up nicely in your statement that China is “a nasty totalitarian system with very little personal freedom, and which is still some way ahead of our own rulers in being able to make life hell for their citizenry.” The persons I met were quite happy and productive in their lives. So, your viewpoint is simply one of ignorance to me.
Furthermore, I was amazed at the massive improvements in the quality of life for the Chinese population at large. I was surprised at how clean their cities were. Food was abundant. Modern interstate highways were going up at lightening speed. The high-speed rail system was a joy to travel on, as were the modern subways that whisked citizens to destinations throughout major metros. All of this has been quickly and efficiently developed – in a matter of a few years.
Compare this to the years it takes to improve a small 10-mile stretch of interstate highway in the USA at huge costs, the lack of any public high speed rail throughout the entire country, the handful of cities that offer its citizens any kind of mass transit that would obviate the need to spend hours in a vehicle virtually parked on a freeway in traffic commuting to and from work – its own special hell – and those cities with mass transit systems in place are mostly systems that are dilapidated relics to investments made a century ago.
There is nothing that supports your thesis that somehow the broad citizenry of China is faced with “hell.” China has made great strides, IMO, to improve the standard of living not just for its billionaire class (although they have benefited from the strides China has made), but for all its citizens – from bottom to top. Capitalism as practiced in the USA is what has made its society hell, as evidenced by the increasing accumulation of wealth at the very top (multi-billionaires) while at least half of the citizenry (if not more) lives in dire economic situations or paycheck to paycheck – and in the inflationary economy of today, paycheck to paycheck quickly leads to foreclosure, homelessness, bankruptcy, limited healthcare, and food deprivation.
Along with the USA’s penchant for militant racism and bigotry (e.g., cancel Russia) and its ongoing militancy throughout the word (purchased on a credit card fiat-based currency), anyone advocating such a system for Russia should be automatically discredited.
Yep,
As somebody who was in Shanghai in early 1980’s and the sea of bicycles and it taking “all day long” to cross the city in a car
Then in 1990’s a new subway system where you could go anywhere in city in a few minutes, all the bikes on the streets gone, and a brand new loop ‘highway’ going around the city making it easy to get anywhere
In the meantime since 1950’s USA hasn’t spent a nickel
Then say 2010 with the super trains in China & Japan that go 300 mph, so fast when you look out the window you see nothing but a blur, and then consider that in all of USA there is nada super-train, and even in EURO the french train is a joke
“Take a look at the recent videos of people screaming from Shanghai skyscrapers as they are locked down for a month, fed a dit of spam – if they’re lucky and have their pets taken away and killed.”
I’m in shanghai and we’ve been given three deliveries of fresh greens, meats, oil, rice. My fridge is completely stocked for two weeks. Some were given less. Others more, depending on how hardworking your neighbourhood leaders are in securing food supplies from the government.
A few neighbourhood committees do not know how to deal with pets when their owners were taken to isolation centers. This is not a Beijing policy, it was a stupid act done by dimwits in local vicinities. There are millions of pet owners in Shanghai, fyi. You’d have seen a lot more videos of pet killings if this was a central govt policy.
Shanghainese are the most spoiled people in the entire country. They are used to dining and wining every weekend, and the old people love their walks. It’s also a matriarchal society where women rule the households, and sometimes they get very naggy and drive their husbands insane. Of course everyone needs to vent their frustration one way or another.
Certain terrible things that happens is a retaliation against illogical local bureaucracy; every district and sub-district has its own leaders, some are smart and kind and empathetic, some are dimwits. There are pockets of people being neglected, such as migrant workers. People do try to help them out, contrary to what you want to believe.
The central government will not sacrifice their GDP goals and social harmony for nothing. I suspect they suspect covid is a bio-weapon, with a long-term effect that is still unknown.
I share MoonMans question about why at this critical and perilous moment in Russian history the CBR can be allowed to continue undercutting Russia’s vital interests. Since i first became acquainted with Glaziev in 2013 i have used his ideas as a hypothetical framework for understanding Putin’s strategy and actions and so far this has never failed, except for his failure to curb the CBR. What does this say about the balance of forces inside Russia – the power of the kleptocracy (many of whom would no doubt be happy to sell out for dollars) vs. the power of the national security state and the regular people? That is of course the split the Empire is counting on. How can that be worked out? How will it come to a head? How will the Empire capitalize this seemingly inevitable crisis? And how deeply does Glaziev understand it? Does it require a kind of revolution? (Or counter-counter revolution?)
Can Putin ride that tiger?
I too have been fascinated by LaRouche’s ideas sinc e i first encountered them over 50 years ago, but i learned early and through hard experience that he was playing a treacherous role in the real struggles of the American people against our corporate masters. Does his folling of the Larouche- led conversation reflect somehow a limitation on how deeply Glaziev can see into Russia’s internal dynamics and the essential and inexorable struggles of Russia’s working people to survive,
RE: “As the American empire fades, tensions are bound to arise it’ll become increasingly clear that Russia is the junior partner. Apart from anything else, there must be worries that China is eyeing up part of the Russian Far East, where there are already major Chinese economic interests and settlements, I understand. Looking ahead, it would make sense for Russia to work on disengaging Germany from American suzerainity. No country (including Russia itself) is being more seriously impacted by the Washington imposed sanction regime. A Russo-German partnership would make strategic sense to both parties and could act as a counterweight to China is the New World Order.”
The subject matter in that paragraph is worth a few articles and no doubt many will be forthcoming over time.
I imagine that Putin has a dream of Russia as the new Central Kingdom a couple of centuries into the Age of the now emerging Eurasian civilization. This dream assumes that Europe is part of Eurasia and that Europe will have detached from the US (or that US has become a sane, normal country which is no longer ‘agreement incompatible’). To this end Russia doesn’t want Europe to become the victim of Russian bombardment. Not to mention such escalation with NATO is dangerous for all involved and potentially the rest of the planet.
I believe that Germany is the first sheep to prize from the flock. It is best poised to be a dynamic trade partner in Belt and Road and be the main conduit into the rest of Europe. Russia can provide abundant, affordable energy the lack of which is perhaps the main reason for Germany’s various wars on her Eastern flank. If Germany joins, then so will France and Italy, and the latter is already very friendly with China with over 500,000 Chinese living in textile district towns with Chinese street names etc.
The problem is the Anglozionist bankster Vampire Squid demonic possession of the West, some of whose tentacles seem wrapped firmly around the Russian Central Bank and no doubt many corridors in the Kremlin as well.
I didn’t at first but am beginning to think that Paul Craig Roberts is correct: Russia is not conducting this operation with sufficient ruthlessness and scope. If he insists on being so urbane and incremental he might find himself trapped in inertia, bogged down in a multi-year boondoggle with no end in sight, something which his enemies are banking on.
Plus if what Elon Musk and others have said about his vast wealth in Switzerland and elsewhere etc. is even half true, that raises questions about what side he is truly on. We now know decades later that both Hitler and Churchill were controlled assets and that the elites of the time were playing both sides. It is quite likely that we have another phony war (in which millions will die again) waged by nations following leaders who are jumped up secretaries and TV performers.
Glazyev notes the CBR intellectual cul-de-sac – it is precisely the same as the EU ECB, the US FED, and the City of London.
Now wonder why none of these deadbeat bankers were locked up after the 2008 bailouts?
It is this clique, that Glazyev identifies in practically every nation, that is threatened with obsolescence.
For these, the threat of Glass-Steagall – banking re-organization – is enough to start WWIII .
So who should fight for the Yanqui Eurodalla?
The Andrews Sisters – Rum And Coca-Cola 1944
https://www.youtube.com/watch?v=WiayZdPESno
from what i understand after researching ECB (probably mirrored on the fed, bis, etc), central banking system, wheter european (ecb) or national central banks of european countries, is not bound to national or european laws.
they arr actually quite open about it, the argument given is they are not bound to laws as to be independent of political implementations and turnovers.
e.g. in portugal, the president of the portuguese central bank which was complicit on one of the largest scandals of the past 20 years, not only was not charged or even subject to public opinion, as was promoted to ECB.
https://observador.pt/especiais/se-tu-julgas-que-consegues-manter-este-documento-na-gaveta-bastidores-o-que-levou-carlos-costa-a-nao-revelar-o-relatorio-do-bes/
Those who control commodities and a modest brain control the new geo- (monetary , economic , fiscal policy and reality and paradigm.
This is music to my ears. It may be difficult to remove the personnel in the CBR who are still stuck in the old Washington Consensus ideology, if they are competent at certain technical operations, but those skills are not really that rare. It should already be clear that enormous damage has been done to Russia by these policies since the early 1990s, even to those of us who (unlike Sergei Glazyev) have been unable to estimate the size of the damage. The new opportunities for investment and further import substitution are massive, and his estimate of ten per cent growth for the Russian economy in 2022 if such policies are pursued seems entirely reasonable.
It is worth reading Glazyev’s recent article, to which Pepe Escobar draws attention\:
https://www.stalkerzone.org/sergey-glazyev-the-results-of-american-aggression-that-are-positive-for-russia/
Given that knowledgeable observers including Scott Ritter are saying that Russian victory in Ukraine is now assured, it is already time to think about moving to implement Glazyev’s ideas by using the new oversight committee of the CBR to hasten the process of change. If Nabiulina and others at the CBR do not feel able to accept the new paradigm, they should resign or be fired.
I do not expect the USA, UK, Japan, NATO as a whole or the European Commission to accept the coming defeat for them in Ukraine, and the conflict is thus likely to escalate into global war, which Russia and China are bound to win. The required economic reforms should be implemented while the conflict continues.
The Western free lunch courtesy of the hard work of the rest of the world is coming to an end.
Avoid oversimplification.
Make it “The Western free lunch courtesy of the hard work of the rest of the world and of its own working and middle class (quickly disappearing).”
“This new currency would be used exclusively for cross-border payments and issued to the participating countries based on a pre-defined formula. Participating countries would instead use their national currencies for credit creation…”
Exactly what they should have done with the Euro. Oh well, EU, too late now.
Glazyev is very capable and above all thorough. He is the best possible person to implement this new system.
I get that there is political rivalry between Nabiullina and Glazyev, but we have to give her credit for capable management of the rouble. She also oversaw massive gold accumulation and de-dollarisation.
The free-floating rouble protected the Russian oil & gas industry. Did anyone want to see Russia wasting her precious reserves, like Saudi Arabia, on defending a peg?
By simultaneously implementing systems from such opposing views (Glazyev & Nabiullna) Russia will become financially very robust.
“By simultaneously implementing systems from such opposing views (Glazyev & Nabiullna) Russia will become financially very robust.”
Like having two horses pulling the cart in opposite directions, you mean?
Also, why did she leave such a huge RF reserve out in hostile foreign banks?
I meant building robustness in both current and upcoming systems.
Yes, the Euro reserves are gone, but I think that hurt the Euro more than the rouble.
I have not seen consistent numbers on reserve amounts that were stolen. First it was Euros and gold, then it was just Euros…so not clear to me what % of reserves this represented.
@Serbian girl
Glazyev’s accusations on selling gold in the international market is still valid.
Such shortsighted decisions which went against Russia’s national interests were made because Nebulina works according to the IMF instructions.
With its vast pool of material resources, Russia is still unable to become an economic powerhouse because of treacherous people such as Nebulina.
We’re seeing the Anglozionist empire at its weakest, both internally and externally. If Russia doesn’t seize this moment to permanently decouple from the Washington-made system, I doubt there will be a better chance in the future.
That’s the clearest exposition on the likely trajectory of the Eastern and Southern economies, though somewhat gold-centric in a nod to Russia’s strengths. Definitely not a Banker’s view of the world, nor supportive of cryptocurrency.
Meanwhile the West/WEF is using debt to pay interest, which can’t last, and intends cryptocyrrency in the form of CBDC’s to hold the world to ransom.
The IMF’s role post 2014 could bear some further examination.
Many thanks.
:The world’s new monetary system, underpinned by a digital currency, will be backed by a basket of new foreign currencies and natural resources. And it will liberate the Global South from both western debt and IMF-induced austerity.”
I find this quote to be a half truth or even an outright lie.
There will be no basket of currencies since the computer has reduced us all to a number with which it will funnel us all into that ‘electronic concentration camp.’ China’s Social Credit System is the goal eventually for the entire world. Its simple and straightforward and it has the added bonus of literally legislating morality by controlling ones bread and conscience.
The International Bankers true and ultimate wet dream.
Where is your basis that the Chinese social credit system is a precursor to a worldwide adoption? Do you understand what is morality? What rule do you abide by? I tend to believe every walking soul with an upright understanding about moral rules would agree it is better to abide by some basic rules of humanity to progress. The Chinese has more than many occasions in emphasizing she never intends to impose her model of development and governance on others. Are you deliberately blind and deaf to these claims? If autocracy is just and upright i am all for it – regardless of whether it creates inconvenience to our inconsequential individual liberty or not – it is for the betterment of the whole that counts for all onboard. We may differ on our approach but i believe again some fundamentally good principle go a longer way than chaos and confusion. The Chinese way is only adapted for that society and has no relevance to others. The Chinese leaves the rest of the world alone and I believe the enlightened nations would reciprocate likewise.
The international bankers have no bridgehead in China. They’d love to but they have no impact on self determination of the Chinese government. At the end of the day, I hardly see any congruence between the Zion controlled cartel and the communist government in China – there is an abyss between their philosophical foundation toward management of the masses.
China doesn’t need to impose anything on anybody. That it works means it will be adopted by others. They in fact in the eyes of the international bankers may look upon china as the premier test case for all others. The computer has revolutionized banking spectacularly and will continue to do so.
When I have time I’ll try to address the rest.
Thanks
The Anglo Americans and their allies are always soiling their panties about China’s social credit system as a form of diversionary psyops.
The agenda of this Anglo American psyops is:
1). To steer attention towards a “repressive bogeyman” (China) and distract from the reality that their own democracies do not represent “individual rights and liberties” and in fact are the world’s leaders in terms of repression and surveillance.
2). To discredit an enemy nation that, along with Russia, is one of the major obstacles to the Anglo American “Rules-Based” World Dictatorship that these Anglo-Americans lust for.
In fact, contrary to their endless propaganda, the Americans, British, and and other Anglo-dominated nations have NEVER stood for “individual rights and liberties”–and likely never will.
The oh-so-precious US Constitution, for example, was essentially a cynically political agreement that America’s Founding Oligarchs pushed in order to disarm rebellion among their own citizenry with some insincere promises about “protecting rights and freedoms.”
Today, America–the “Land of the Free”–has had a massive domestic surveillance system for *decades* in the form of the National Security Agency (NSA) and other security outfits, as partially exposed by Edward Snowden.
But wait, there’s more.
This US surveillance system is part of the infamous Echelon (or 5 Eyes) spying network led by the leading Anglophone nations (USA, UK, Canada, New Zealand, and Australia). This spying network is planetary in nature and allows individual Anglo regimes to spy on their own citizens–by having one of their allies do it for them!
Here is another issue: the Internet itself was created by the United States as a form of (planetary) surveillance with its origins in the Cold War.
As Sasha Levine has exposed in his book, _Surveillance Valley_, America wanted to create a real-time surveillance system against Communist guerilla movements in the Vietnam War. Towards this end, the Pentagon and its Advanced Research Projects Agency (ARPA) spawned what today known as the internet.
In other words, the internet was designed as a system of surveillance and control from the git go. That’s not a bug. That is a feature. And it was America that spawned this surveillance system.
Book Review: Surveillance Valley: The Secret Military History of the Internet
https://www.oif.ala.org/oif/book-review-surveillance-valley-the-secret-military-history-of-the-internet/
And if you want to go down the rabbit hole in general, you could say that origins of state surveillance go back well over a century to America’s colonial occupation war against the Philippines in the 19th Century.
The article below describe this centuries-long surveillance system and the different phases that is has undergone. A key point that it makes is that these surveillance control systems were designed and field tested by America’s through its many imperial wars abroad–which are eventually applied domestically to its own citizens.
Origins of State Surveillance
https://libya360.wordpress.com/2022/02/07/origins-of-state-surveillance/
The surveillance state has been around for *over* a century–long before the dreaded social credit system–and it has been spawned, directed, and promoted by the Land of the Free itself–the United States of America–and its self-styled democratic allies….
On the surface the Russian narrative regarding these events appears more legit, has a higher moral value, and justification. However, being in bed with the Chinese communists to create a new global order has little value morally.
On the contrary it is of high value. China is subject to the same propaganda lies that Russia is. Which only the foolish and hypnotised fall for. China also knows its next in line.
You are quite correct. A new style global communist system to replace what currently passes for “the International Community” – don’t expect utopia, it’s just a changing of the guard. The Bankers have it rigged.
Christofascists can take the walk.
Communism: a stateless, classless global system of solidarity and mutual determination in which the means of production are owned by those who produce, rather than absentee capitalist overlords. Sounds terrible.
China a state which has overseen the greatest number of folks brought out of crippling poverty in world history. Sounds terrible.
Christian Nationalism is nothing more than fascism wrapped in the flag and draped with the cross. I highly doubt your pathetic whinging is doing anything other than falling on deaf ears.
Communism has murdered many millions of people and denied personal liberties to countless more.
“Christian Nationalism is nothing more than fascism wrapped in the flag and draped with the cross.”
Bizarre and utterly devoid of any logic. Christianity respects free will and with the exception of ‘Just War’ calls it’s adherents to love ones enemies. You are confusing The Way with historical political opportunists.
However, there is no confusion about the reality of communism.
———————–
Please take any further discussion on this matter to the MFC.
The Moderator.
The key question is here:
“The Cradle: Elvira Nabiullina has been reconfirmed as the head of the Russian Central Bank. What would you do differently, compared to her previous actions? What is the main guiding principle involved in your different approaches?
Glazyev: The difference between our approaches is very simple. Her policies are an orthodox implementation of IMF recommendations and dogmas of the Washington paradigm, while my recommendations are based on the scientific method and empirical evidence accumulated over the last hundred years in leading countries.”
So why, why, why was Elvira Nabiullina reconfirmed?????
Have you taken a look at the Ruble exchange rate just lately :-)
People generally like to beat on Nabiullina, especially for their own kudus, but she is no fool.
Thank you Amarynth!
I’m getting a bit sick of the knocking of Nabiulina.
Thanks to her capable defence of the rouble, Russia has not gone into hyperinflation, like Venezuela.
Amarynth,
The exchange rate is measured against the USA dollar. This is the paradigm that must be shattered for a true liberation from the neo-liberal world order to emerge. As Glazyev points out there must be three stages to moving beyond the petro-dollar for world trade:
“In the first phase of the transition, these countries fall back on using their national currencies and clearing mechanisms, backed by bilateral currency swaps… and gold…. The second stage of the transition will involve new pricing mechanisms that do not reference the dollar…. The third and the final stage on the new economic order transition will involve a creation of a new digital payment currency founded through an international agreement based on principles of transparency, fairness, goodwill, and efficiency…. A currency like this can be issued by a pool of currency reserves of BRICS countries… (the) weight of each currency in the basket could be proportional to the GDP of each country (based on purchasing power parity, for example), its share in international trade, as well as the population and territory size of participating countries.”
This cannot be done unless Russia moves beyond exchange rates based on USA dollar hegemony. The first phase is being implemented but it needs to be implemented quickly so that the second phase can begin. How is Nabiullina equipped to do this? What are her stands on this?
I’ve read that many of Russia’s bankers and financial experts are tied to Western/USA dollar hegemony paradigms. Breaking free from these is required to have fundamental change.
On a personal note – I love the work you do on this website and really appreciate it!
Thank you The Kansan. Yes, we’re kinda busy around here :-)
Exchange rate you change with looking at another screen on a computer. Russians already have the ability to have accounts in both Ruble and Yuan in their own banks.
Countries are to a massive extent falling back on their local currencies .. this is now and it is happening. The stellar example is Ruble Rupee.
Measurement of currency against one another? Do we really need to do a massive circle jerk exercise and make another ‘stablecoin’ he calls it, an unfortunate description from the sick side of the cryptocurrencies?
There must be an easier way. I can only describe this as somewhat of a circlejerk, inventing concepts which are already happening. I’m on SCO and ASEAN side where this is happening in reality now. Hard to measure as much is off book.
Nobody says she is a fool. This, however:
“Her policies are an orthodox implementation of IMF recommendations and dogmas of the Washington paradigm”
calls for a different sort of characterization….
Yes, and I have a problem with that characterization. Problem is, it does not take near history into account. Only about two years ago did Mr Lavrov start talking about decoupling with the EU for example – first real indication that Russia is ready to do without western banking and financial systems.
Up to that time, Russia had to keep pace with western banking systems, because how was she going to trade otherwise?
It’s a new world now.
I hope you are right. If so, she needs to prove it now.
Dear Amarynth,
Russia already had an alternative to SWIFT six years ago, and I have read somewhere that the volume of trade on the alternative to SWIFT recently was greater than on SWIFT itself. So Russia was already trading quite successfully while increasingly bypassing Western banking systems. The SMO in Ukraine, and the sanctions that followed it (already prepared beforehand, as Gazyev points out) have speeded up this process.
The reason that one needs a new currency based on a basket of gold and tradeable commodities, with the described weighting of existing national contributing currencies, is to enable comparatively weak economies to have an alternative form of reserve currency that escapes dependence on the US Dollar. [You are quite right Amarynth that this is not necessary if it was a matter of trade between, say, India and Russia.]
This proposed ‘stablecoin’ system would facilitate trade growth by making international payments more calculable and stable for such countries. You have already pointed out in your recent comment on China that ‘digital currency’ does not always mean the same thing, depending on how it is constructed and used.
Howie,
After reading the interview, thank you, I went back to a 2019 speech by Mark Carney.
https://www.bis.org/review/r190827b.pdf
To my recollection this was the first time a discussion of an alternate to US$ hegemony was promoted.
Further, this section may help us to better understand Nabiullina’s actions.
“Today, the combination of heightened economic policy uncertainty (Chart 2), outright protectionism and
concerns that further, negative shocks could not be adequately offset because of limited policy space is
exacerbating the disinflationary bias in the global economy.
What then must be done?
In the short term, central bankers must play the cards they have been dealt as best they can.”
It is a long read, does it relate to Mr. Glazyez’s ideas?
I read a good joke on one of the previous Sakes articles that I still chuckle at and describes the situation quite well.
The USA was laughing about luring the Russians into the bear trap of invading the Ukraine, but found themselves in an elephant trap dug by the Russians when the USA grabbed Russian financial reserves.
There was some speculation that Russia deliberately dangled those reserves knowing they’ll get them back at some point, but the loss of trust in the western system is permanent.
“There was some speculation that Russia deliberately dangled those reserves knowing they’ll get them back at some point, but the loss of trust in the western system is permanent.”
Loss of trust? What trust? The states ensnared in the system are not trapped by their naive “trust” but by a combination of coercion, blackmail and imposition (through ‘regime change’) of local governments made up of greedy and spineless traitors.
20/20 hindsight tells me that your assessment may be correct that that is a humongous trap set for the West to fall – similar to trading the castle for a checkmate. You have to set your lure up big enough to go for the kill shot. The West has totally and completely discredited its own financial system and Russia subsequently having usurped a set of significant financial counterstrikes means to me they had been carefully choregraphed and prepared in advance.
Simple – that CBR chief knows the ECB, IMF, WB and the FED.
They have not gone away, and are imploding on our heads.
Just to be clear these financial organs are totally and utterly bankrupt, are pumping liquidity at a level never before seen, especially since Sep 2019.
This hyper-inflationary blowout is here, not in Russia nor China, nor India. Biden tries to deflect people’s crazy prices at the gas station and Mall to Russia – who believes that guy?
The BRICS see this and prepare.
What are we doing?
@bonbon We are waiting for the bigplan to succeed. The bi plan was ousting Syria, Iran ($42 trillion gas reserves), Russia, and finally controlling the fat lamb now lonely China. This is still the plan.
Then all the excessive QE and Derivative -$300 trillion debt could be cancelled. US and City of London would live forever.
Ok there was stones on the way, some Putin clown got in the way. But this is only normal challenges when you roll out big. It can and will be dealt with.
The Plan, Great Reset – is to make you pay, gouged to the bone.
Russia, China refuse to be London’s Free Lunch – let them eat $2 QUADRILLION paper.
Much better now is to break up these banks, hive off the rotten swamp.
We need functioning banks for physical economic credit.
Hey, that is exactly what Glazyev is doing, how ’bout that!
Well, I’m sorry to say that backing a digital fiat currency with a basket of other fiat currencies is not an improvement over the US Dollar. Gold will win this war in the long run.
Aha, the enemy within, a counter-revolutionary force intent on mischief making and national destruction. Such political phenomena and intrigue has always been thus. The current Russian political blob is composed of the Central Bank of Russia (chairperson Elvira Nabiullina) the local oligarchs and opposition among the various state functionaries and departments. However, it should be borne in mind, that not all the genuine and legitimate opposition are acting against Russia’s interests, but in terms of the inner core of the well-heeled members such as Kudrin and his associates the loyalty remains, tepid, to say the least.
It seems legitimate to point out that Putin’s political and economic goals have been compromised by the hidden (and in some cases not so hidden) members of the nomenklatura who have knowingly thrown grit in the machinery of government. But this is of course nothing new in the world of political intrigue. It is as old as Machiavelli and beyond.
As an additional historical analogy In the early days of and during the English Civil War – 1642-1648 – cities and towns declared their sympathies for one faction or the other: either for Parliament or the King. In one particular instance the garrison of Portsmouth commanded by Sir George Goring declared for the King. But when King Charles tried to acquire arms from the city of Kingston upon Hull, the weaponry that was used in the previous Scottish campaigns, Sir John Hotham, the military governor appointed by Parliament in January, refused to let Charles enter the town, and when Charles returned with more men later Hotham drove them off.
Cromwell, and the New Model Army, as it was called, eventually defeated the Kings Army in two crucial battles – Marston Moor and Naseby – and England was changed forever.
The moral of the story is that those who would wish to change the status quo must be even more ruthless and prepared to defeat the internal opposition as well as the external opposition. I wonder to what extent Mr Putin has realized this?
Aha, the words of Benjamin Disraeli who declared before the British House of Commons July 4, 1856:
“The world is governed by very different personages from what is imagined by those who are not behind the scenes.”
And O what did Carroll Quigley really know when he confesses after being given access to all of the secret knowledge and papers of the international bankers he says on page 979-980 of his tome Tragedy and Hope:
“I know of the operations of this network because I have studied it for twenty years, and was permitted for two years in the early 1960’s to examine its papers and secret records. I have no aversion to it, nor to most of its aims, and have for much of my life been close to it and many of its instruments.
and added to the above from a W. Cleon Skousen:
“Dr. Quigley expresses the utmost contempt for members of the American middle class, who think they can preserve what he calls their “petty bourgeoisie” property rights and constitutional privileges.”
Wow? and todays date? 2022? Meaning it must be terribly difficult to want something so severely and yet still fumbling around with all the challenges?
Lastly a commentator PIP has some interesting info worthy of a look :
https://www.theoccidentalobserver.net/2022/04/09/russia-is-back-and-so-is-history/#comment-350229
Cheers
an interesting historical piece by Dr Cantelon:
Checks Obsolete
Members of the Federal Reserve warned that the nations’ banks could strangle on the 22 billion checks the
Americans wrote each year, pointing out that in a hundred months the number of checks would double. They urged the adoption of a computer system which would automatically transfer funds between bank accounts. A person’s pay would automatically be credited to his bank account by his employer, without the writing of a check. And the regular payments which the worker owed-car payments, rent,etc. -would automatically be sent to his creditors’ accounts when due.
George Mitchell of the Federal Reserve declared it was most urgent to reform the checking system before the economy smothered under a pile of paper.
I did not know George Mitchell personally, but I did know many honest and sincere bankers who shared his
sentiments. There was Carlos Verheek of the Kredietbank of Belgium, and Banker Keller of Germany.
Mountains of Paper
As I sat with Banker Keller in his Stuttgart office, I heard him heave a weary sigh. “We are being buried under
paper,” he said sadly. From the doorway of his office I could see the lines of people standing impatiently before the bank tellers. From the doorway of his office I could see the lines of people standing impatiently before the bank tellers.
I knew that back home our government was spending $350,000 a minute. The welfare program alone was costing the taxpayers more than a billion dollars a month’ In a four year period, the federal budget had increased 84% and in five years the money supply 47%
ln America, I had talked with my banker friends’ Without exception every banker realized we were coming to the end of an old regime and the dawn of a new era’ Our early ancestors had-used shells, iron, cotton’ or cattle as a medium of exchange. Then gold’ Now, the paper currencies were becoming as antiquated as all of the obsolete systems that man had used. A new system was about to dawn over the world and it would be a number system’ made possible by the birth of the computer in 1946.
So digital money is the wave of the future. A basket of currencies is hogwash. Sorry
SWIFT is already long digital – all FED, ECB central bank transactions are digital. HPT – High Performance Trading is already destroying the digital financial system.
Time for physical economics, not imperial monetarism – always the hallmark of empire from Babylon to Keynes to Hayek, to Friedman.
Glazyev knows full well what this is about.
Hear, hear! It is rather puzzling that VVP reconfirmed Nabiullina as head of CBR. Part of the long game I suspect. Perhaps it’s necessary to draw the IMF, World Bank, and BIS into the final checkmate?
@ Doug Hillman
Yes, this is my surmise also. If this Glazyev interview does anything at all it is to establish the historical context for today – he is talking about two prior imperial, global economic models, now to be followed by the third. All over 2-3 centuries prior.
Things take time.
I think Nabiulina is as much of a feint as the encirclement of Kiev. She holds the global bankers at bay. Meanwhile Glazyev is reshaping the world outside of Russia. I confess I don’t like it either, but there must be very strong internal Russian dynamics that keep this situation held statically in tension – frozen – so long as it has been.
Eventually, the world will tip to the next economic model and the success of this, with its evident prosperity for the future, will somehow carry Nabiulina away into retirement, and the Glazyev vibe will occupy even the Central Bank of Russia.
I’ve been following THESAKER posts and comments since the Russian invasion. It amazes me to see the blindness of pro-russian analysts and people on this website expecting Russia to combat the New World Order throughout unveiling evil deeds by the Western elites. The Soul Engineers at Rome (The Company) that are leading this transformational process again in History, after WWI, WWII and now WWIII, through hegelian dialectics, control both sides of the same coin. The ecumenical movement is 80% complete with COVID19+Nanographene Injection Project plus the Russian intervention (Moscow obeying the Script conceived long time ago at the top of the pyramid). The Klaus’ opportunity window points to a decade (2020-30) for culminating big efforts by the Internationalists since 1945 to rise Babylon. The next wave or sprint will be probably based on a Cyber attack on the Financial System (but other vehicles are equally possible).
Undoubtedly, Russia and China are in the WEF ship, on board, speaking about the same concepts that worry at Brussels, London and Washington (Integration, Convergence, Interoperability, Risk and Safety, Digital Transformation, Transhumanist Vision, Tacking-Surveillance economy, Sustainable Development, etc., etc.) The agreed-upon-by-both-sides Russia’s decoupling from Europe attends to the double vision of collectivizing Europe (an ecodigital neo-nazi camp) and diluting the heretic element of the Ortodox Christian community at Russia by forcing its alliance with the Chinese Dragon (an atheistic machine).
You can not really understand current events if you do not incorporate the critical religious dimension into your analysis (it is a battle for the mind, cognitive warfare to convey the new global – Cathos- sincretic religion officiated by the only candidate recognized by almost all to ceremony on the universal mass).
The GreatReset is better achieved (agility) through the configuration of two competing blocks on the same goals (each roleplayer knows that, while the unknowing citizen doesn’t, that’s way we have visceral reactions at both sides). There is a Plan, there’s is a Script, all of them are in the know. Nothing occurs by chance, all is pre-planned.
Daniel, Revelations, Matthew 24, etc, etc,. at the Book of All Times (the Bible) offers clear insight for all that really desire to understand worldly affairs from God’s vision. On top of this man-made transformational process (inspired by the dark side), the Trinity is managing to make sure most of people in Earth are saved at this final point of God’s Jubilee Calendar (the majority will unhear the message, with sad consequences for their salvation). There will be no Rupture but such a messy times as it never was before the second coming of our Lord Jesus Christ. WWIII will trigger the Great Tribulation (observe how they mimic the Bible even in terminology -Great Reset-), a (7 trumpets +7 bowls) set of actions by God as ‘the Judgement of the Living’.
@ Mcthama
I hope you not one of those who believe the hogwash about WW3 that Gog and Magog of Ezekiel 38 /39 are the current nations of Germany and Russia?
Well said! Russia is just playing her part in the Hegelian dialect of thesis vs antithesis equals synthesis, aka the NWO which has been planned for so long and is now being ushered in. I don’t want to believe it but all the evidence points to only this conclusion. The planned destruction of the west is here.
To generate some further debate I’m putting this link to a counterview in the hope that those more knowledgeable than I might offer some rebuttal:
https://www.zerohedge.com/markets/nice-narrative-no-why-one-strategist-thinks-zoltan-pozsars-bretton-woods-3-never-going?
ZH is strictly Austrian School. That had a major problem with Bretton Woods. Pozsar of Credit Suisse called it correctly.
Glazyev is not Austrian School.
Dave,
Zoltan says:
“We need to understand the details of commodity trading because the rules of the game are changing, and these changing rules will affect the price level, the level of interest rates (OIS), FX rates, and, in due course, OIS–OIS bases.”
Zoltan frames this in the context of NATO supported protection for Western oil deals in Libya. what is fascinating about these observations is what they reveal about how distanced finance has become — on account of decades worth of peacetime civility — from the fundamental realities it, as a simulacrum of the real world, powers.
It’s not the fact that finance people willfully ignore how much foreign policy and military action is conducted in the name of finance, trade supremacy and access to raw materials. It’s that the fundamental power structures involved have been muted in resonance due to how normalised this sort of activity has become in the mind set of those involved in the financing.
Civility has compartmentalised everyone’s role in the great power game in such a way that nobody in the West feels directly responsible for anything bad the system does. In fact, most people have no idea about the role they themselves play within the system, so sanitised everything is on the other side.
As a result, when John Pilger writes about how the Iraq war was motivated by access to oil, serious people in the finance world still tend to roll their eyes as if it’s a far fetched tale. They shouldn’t. It did. And unless the West face up to the realpolitik, and their roles in it, nobody in finance will be able to protect their wealth let alone make more of it.
I suspect the learning curve the West are about to go through will be significant. At the very least, it will force financial practitioners to face up to what it is they are really financing: western supremacy and the military industrial complex that supports it.
Zoltan says:
“Russia is now invoicing its commodity exports to “non–friendly” nations in ruble, not U.S. dollars or euros and Saudi Arabia is open to China paying for oil in renminbi. It used to be as simple as “our currency, your problem”. Now it’s “our commodity, your problem”.
Is that big a deal considering that it’s mostly an FX intervention in disguise. The point that matters is that Russia is opting to shift the goal posts on how trade is conducted in the world, and who carries the exorbitant privilege as a result.
The problem Russia has is that coffers of its own currency are pretty useless unless foreign counterparts accept them for trade.
The reason the move is important nonetheless, however, is because of the message it sends to the world about Putin’s desire, and what he and Russia are willing to sacrifice for the sake of protecting their own ideological standpoints. That makes it much more like a 1973 OPEC-style moment than anything else.
The analogy is Sheikh Zaki Yamani, the Saudi Oil minister, threatening to destroy his own oil supplies if the West doesn’t toe the line:
https://m.youtube.com/watch?v=KJCxIr3SXJM&feature=emb_imp_woyt
What Putin is seemingly trying to do in that context, is meddle with the primal forces of multistakeholder capitalism and depoliticised “neutral” money — which he sees as ideological in its own right.
One could say he is purposefully politicising the money system so as to reassert political control and his own ideological perspectives on the international community.
Zoltan says:
“… a lack of VLCCs to move oil around (and other ships for other stuff) is the real–world equivalent of year–end G–SIB constraints in the financial system.
One aim of this dispatch is to hammer home the parallels between the (nominal) world of money and its four prices and the (real) world of commodities, and just as G–SIB constraints around year–end gum up the free flow of money, VLCC constraints during times of warcan gum up the free flow of commodities– can commodity prices spike like FX forward points when we run out of ships? We can’t QE oil (= reserves) or VLCCs (= balance sheet).”
The West can’t make the VLCCs quick enough. This is true. And it is also true that any bottlenecks could be life threatening to the stability of the system.
Another interesting observation is that Egypt, one of the biggest importers of Ukrainian wheat, has its own trump card to play if it becomes threatened with undersupply of wheat. It can shut down the Suez canal until other nations’ wheat supplies are diverted to it — an chaos-inducing experience we recently went through when the Ever Given got stuck in the canal.
Zoltan says:
“Bretton Woods II served up a deflationary impulse (globalization, open trade, just–in–time supply chains, and only one supply chain [Foxconn], not many), and Bretton Woods III will serve up an inflationary impulse (de–globalization, autarky, just–in–case hoarding of commodities and duplication of supply chains, and more military spending to be able to protect whatever seaborne trade is left).”
What will influence the foundations of the new BWIII system, Zoltan argues, is the reality that we no longer live in a unipolar world dominated by American military supremacy or the soft power of its cultural exports. In that context, “our commodity, your problem” becomes a meaningful threat, especially when it comes from nations which feel increasingly disenfranchised from the international community because their views on certain subjects simply won’t be tolerated in the “neutral” global order.
Perspectives and ideologies, we should add, that those countries are prepared to self-sabotage, die and sacrifice for — which may not be the case for the “spoiled” West.
Through the Waste own arrogance be inadvertently pursuing a policy of mutual assured economic destruction without even knowing it.
On which note Zoltan also says:
“Don’t get me wrong – we need to tighten financial conditions, but it is now time to think about how to do QT such that we minimize the destruction of reserves while maximizing the amount of duration delivered into the bond market…”
“…to undo the mistake of believing that we can craft sanctions that maximize pain for Russia while minimizing financial and price stability risks for the West. Did OFAC coordinate with the FOMC and FSOC when crafting sanctions on Russia?
Which is why we could expect this sort of thing from Biden soon:
https://m.youtube.com/watch?v=0bUA-uFNAYc&feature=emb_logo
In short Dave,
Zoltan has brought up some very interesting points worth debating.
Zero Hedge is mainly just noise Austrain/ Hayek gold bug noise. Sometimes good often terrible.
People will get mad at me. No need. What I am saying, has already been said. I am just saying it is much further along than indicated here.
Lets take this piece: “You correctly highlight potentially central roles of China and Russia in the genesis of the new world economic order. Unfortunately, current leadership of the CBR (Central Bank of Russia) remains trapped inside the intellectual cul-de-sac of the Washington paradigm and is unable to become a founding partner in the creation of a new global economic and financial framework. At the same time, the CBR already had to face the reality and create a national system for interbank messaging which is not dependent on SWIFT, and opened it up for foreign banks as well. Cross-currency swap lines have been already set up with key participating nations. Most transactions between member states of the EAEU are already denominated in national currencies and the share of their currencies in internal trade is growing at a rapid pace.”
OK this sentence: “Unfortunately, current leadership of the CBR (Central Bank of Russia) remains trapped inside the intellectual cul-de-sac of the Washington paradigm and is unable to become a founding partner in the creation of a new global economic and financial framework.”
Russia is unable to become a founding partner?]. Well, I don’t know where he has been these last years, but he surely did not take good note of the Putin/Xi meeting at the opening of the Olympics.
Then, he did not take a good look at Lavrov with his last China visit – where the new system was announced in so many words.
Next sentence: “At the same time, the CBR already had to face the reality and create a national system for interbank messaging which is not dependent on SWIFT, and opened it up for foreign banks as well. Cross-currency swap lines have been already set up with key participating nations. Most transactions between member states of the EAEU are already denominated in national currencies and the share of their currencies in internal trade is growing at a rapid pace.”
So, Russia is unable to take part, but there is a system for interbank messaging (integrated with China and in the process of being integrated with Iran for example). So, where is Russia not unable to take part?
Cross currency swap lines and growing at a rapid pace .. yeah, as I said, they are working. So where is Russia unable to take part?
Something is off here.
I’m confirming something here.
So, India has just bought coal from Russia. A hell-of-a-bunch of coal.
And Russia is delivering more S400’s
The trade consultant from India says: Negotiations on a local currency mechanism might help “bypass some of the financing challenges in the market”.
What stops SCO and BRICS, EAEU, AIIB, ASEAN, BRI and the raft of other multilateral alliances negotiating a benchmark? Or more than one benchmark. Do you really think some stable coin benchmark suitable for Ruble/Rupee is truly suitable than a benchmark for Ruble or Yuan vs Cuban Peso? I really think what Glazyev says here, is simply one method.
And any theoretical economist that tells me that they work according to “scientific method and empirical evidence” really makes me worried. And any theoretical economist that loses Russia out of his calculous makes me more worried.
OK, I’m done :-)
Glazyev means study, dig into physical economics, something Americans are notoriously reluctant to do – hard work.
Russians have not lost that scientific approach, the Empire can only exist without it.
So Russia is not left out….
I’m not talking about Americans here …
Amarynth,
Nothing is off.
Just your thinking. I told you how roubles for gas was going to work.
In the end Who was right ?
Trust me Sergey Glazyev knows what he is talking about. This guy is for real.
Sorry Billy, you did not tell me anything and true, I don’t trust you .. gee man .. we’re on the internet here.
He is for real, and he is for real not serving the Russian cause.
“the CBR already had to face the reality and create a national system for interbank messaging which is not dependent on SWIFT, and opened it up for foreign banks as well.”
I am sure that Russia and China have to keys to the SWIFT system. The former Vice President and chief systems analyst of SWIFT married a Chinese with Belgium citizenship a couple of decades ago. She also worked as a go-between between Belgium and Chinese governments.
Is this still in a theoretical stage or do we have a basic timeline?
I would love for this to happen. It is overdue.
Be wary of what one wishes!
The Empires financial system is tottering , and implosion to make 2008 look like a coffee chat.
Glazyev knows full well, as does Putin. So called sanctions will only blow the transatlantic out.
Bonbon
It will definitely be incredibly bad, but right now it feels as if we are playing chicken.
There isn’t a way to mitigate the coming disaster to a point where it won’t be a disaster, so can we get it over with in order to be able to go on (and maybe reach a point of improvement)?
The British people generally are better off now than at the height of the Empire when Victoria had a last Jubilee with pageantry and display of power that would have stunned into silence Persian or Roman kings of kings. Everything is relative
Question: Elvira Nabiullina has been reconfirmed as the head of the Russian Central Bank. What would you do differently, compared to her previous actions? What is the main guiding principle involved in your different approaches?
Glazyev: The difference between our approaches is very simple. Her policies are an orthodox implementation of IMF recommendations and dogmas of the Washington paradigm, while my recommendations are based on the scientific method and empirical evidence accumulated over the last hundred years in leading countries.
I hope that means he recognises they have the whole interest rate thing backwards.
This is what you call scientific evidence and it sounds as if he gets it.
https://d3fy651gv2fhd3.cloudfront.net/charts/russia-inflation-cpi@2x.png?s=rucpiyoy&v=202204081622V20220312&url2=/russia/interest-rate
And
https://d3fy651gv2fhd3.cloudfront.net/charts/russia-inflation-cpi@2x.png?s=rucpiyoy&v=202204081622V20220312&d1=20120417&url2=/russia/interest-rate
He understands the West have the interest rate thing backwards. Or at least I hope so.
Hi Billy
I think it does and perhaps we will see a gradual change now.
Surely CBR’s membership of the BIS was simply a sign of Russia’s stubborn but now forlorn hope that they could actually somehow work and trade beneficially and sustainably with the old western fiat-based central banking cabal type model.
Clearly, this was never going to come to pass, and just as they found this Anglo-American collective completely agreement incapable in all diplomatic, economic and security matters. So too has it proven to be the case in trying to use common financial instruments that facilitate trade. The hegemon chose to weaponize his position of incumbent reserve currency status… now he must pay the piper.
The West simply can’t play nice in any of these theatres. The RF showed incredible patience in striving to achieve this harmony and it simply didn’t work. The old ‘cold war’ could well now morph into the ‘frozen war’ for the real victims… this could well be a large swath of Europe.
I notice that the CBR President is appointed in 4-year terms by the RF President and I can only assume, under the constitution, that Putin could still dismiss her before the current term is up… I am merely surmising… is anyone here on TS clear on this point?
The primary mandate for the CBR is the protection and stability of the ruble. Clearly, Nabiullina has accomplished this amidst an onslaught of a thoroughly vicious western bag of tricks that was being deployed in blatantly trying to wreck the Russian economy and to put every possible obstacle in its way in trading… in particular in regard to Germany and the EU.
Russia has survived this onslaught and now is perhaps the time to revisit the whole concept of their CBR model. In its present form, it is clearly incompatible with Glazyev’s vision of this completely new system of international trade and settlement practices. The whole point is a move away from this debt-based fiat money and currency construct, and into one that is based on instruments that are multi-commodity based and inherently much more stable.
It would have been bad optics anyway if Nabiullina had departed right in the middle of the current Ukrainian escalation. The West would have had an absolute field day with this news in demonstrating how Putin and the RF had completely lost the plot .
Perhaps Putin, ever the master strategist, weighed this all up and in doing so paid tribute to her successful management of the ruble, and especially during the huge challenges involved after the 2014 Maidan coup.
In the meantime, he chose to minimise any further rocking of the boat whilst he consolidated his countrys position and whilst the new trade instrument was still being conceptualised and implemented. Rome certainly was not built in a day… neither was this new trade instrument going to be either.
This is where I fundamentally disagree with commentators like PCR who claim that Putin has been far too slow in cleaning up the steaming Nazi cesspool in Ukraine and also the last of the opportunistic thieving Russian oligarchs and 5th coumnists. I list the following reasons…
#1 Putin is STILL ALIVE. He also retains one of the highest leadership approval ratings in the history of modern politics
#2 In 22 years he has taken the USSR remnants of a complete financial wreckage and transformed it into an economy with the strongest balance sheet of any major country on the earth. The RF’s Govt debt is currently so minuscule it hardly even warrants bothering to eliminate it. This is all in spite of the fact that the West has used everything at its disposal to try to wreck any prospect of a Russian recovery.
#3 In 2014 Russia was not in a position militarily to deal with the Ukrainian situation and the inevitable fallout
#4 In 2014 Russia was not consolidated enough financially to withstand the overwhelming western onslaught that would have been guaranteed.
#5 The clean up of the 5th columnists and oligarchs in the newly formed RF. These were remnants of the 1990s free for all and this task was not something that could be accomplished overnight… refering back to #1.
#6 As if all 1-5 weren’t enough for the #13th GDP ranked economy in the world, then Putin also had to deal with the hegemon lighting bonfires in many other parts of the world as well. He and Lazrov kept putting these bonfires out, and on many occasions stopped them from escalating into major regional wars and even more humanitarian tragedies.
Billy, I’m sure too that Glazyez knows the western economic morons have the entire interest rate thing backwards. The CBR has until now had the polar opposite approach with huge CB rates up to a mind-boggling 20% CB rate… Glazyez knows that these high rates are unsustainable and that they will only constrain the potential development of the economy. As the storm subsides and the new trade instrument consolidates I see the RF completely reinventing their CB model and resigning their BIS membership as the two concepts are completely incompatible.
Glazyev has also hinted at the need for long term easing of interest rates. It will be fascinating to see the extent they are lowered, how quickly this can be achieved, and also to see how long Nubiullina will stay on as CBR President.
So there we have it… Putin is still alive. A new militarily multipolar global reality has emerged. The ruble is in good shape and the Russian economy is now well positioned to develop even further.
Also humanity has a new trading block that has cooperation and mutual benefits as its fundamental mandate and a brand new money/currency/debt paradigm that is tied to a multitude of commodities rather than debt-based bankster fairy tale fiat… what’s not to like!
Cheers from the south seas
Col
“Over a decade ago, my colleagues at the Astana Economic Forum and I proposed to transition to a new global economic system based….”
When this guy points out how smart he was over 10 years ago, smarter than all the normal’s around, I lose interest.
Mainly because he’s obviously tooting is own horn. I’ve learned that those who toot their own horn invariably put out a barrage of impressively foggy notions and, in the end, don’t come up with anything accurate much less useful.
Everyone wants an easy ride…
Who said changing the global economic system was for weak nerves?
Pepe Escobar is blocked on Twitter. :(
Elon Musk is buying Twitter – an epic battle – for $45 billion….
And there was I thing the 1st Amendment, freedom of speech, was free!
In the first phase – Their immediate replacement is national currencies and gold.
In the second phase – The use of gold as the price reference is constrained by the inconvenience of its use for payments.
I hope this clarification puts to bed the gold bug nonsense that clogs up the internet and spews out of Zero hedge. What I have been saying for weeks now.
Exactly!
Gold bugs are actually for a return to the British Gold Standard that FDR dumped in 1934. FDR’s Bretton Woods was a gold RESERVE system, killed by Nixon in 1971 – ushering in the 1974 Petrodollar, now running on fumes.
ZH batts Austrian School, Hayek and Mises London School of Economics .
A Gold Reserve system takes the physical economy into account. There was never a Bretton Woods 2 nor 3.
Sochi is not far from Yalta – what’s in a name?
Great read as always from Glazyev. Thanks so much for these. To me, this is the crux of the matter:
“…imminent disintegration of the dollar-based global economic system…”
Is it imminent? Ordinary ‘Muricans, the people who don’t benefit from global fascism, have been perplexed for half a century now, especially the past three decades, about why* foreign entities continue using dollars in the post-Bretton Woods and post-Cold War era, usage that merely props up an increasingly parasitical ruling class. Not merely central banks holding US Treasuries as assets, but entities actually issuing USD-denominated debt and doing business with the various criminal banksters and media/academic elites.
The dollar-based system specifically (or the broader imperial quad of USD/GBP/Euro/Yen) didn’t die when the people of Crimea voted for independence over three decades ago now, or when LTCM was bailed out, or when Glass-Steagal was repealed, or media consolidation, or ‘Battle for Seattle’ around global institutions like WTO/GATT, or when Hussein in Iraq offered a slight change of Euros for oil instead of USD, or any of the myriad more recent events of the past couple decades.
*and of course, if the ‘why’ is because USUK imperialism successfully forces bad choices onto actors (including domestically, within the rest of Zone A, and all across Zone B) then all this really has nothing to do with monetary plumbing or economics. The hard part is the political part of political economy: problem-solving how to actually implement a system of international relations that promotes and protects basic concepts like self-determination and sovereignty.
Even at this late hour, Syria doesn’t control its oil and Pakistan doesn’t have a legitimate government and Israel isn’t a party to the NPT framework and both the EU states and Japan seem to be more tightly controlled vassals rather than demonstrating any capacity for independence and so on…
Excellent article. I was struck by:
participation in the new economic system will not be constrained by the obligations in the old one. Countries of the Global South can be full participants of the new system regardless of their accumulated debts in dollars, euro, pound, and yen. Even if they were to default on their obligations in those currencies, this would have no bearing on their credit rating in the new financial system.
__________
I cannot find a copy of Glazyev’s book The Last World War: The U.S. to Move and Lose
I would prefer a hard copy but without that digital will be fine.
Any pointers would be appreciated.
The third and the final stage on the new economic order transition will involve a creation of a new digital payment currency founded through an international agreement based on principles of transparency, fairness, goodwill, and efficiency. I expect that the model of such a monetary unit that we developed will play its role at this stage. A currency like this can be issued by a pool of currency reserves of BRICS countries, which all interested countries will be able to join. The weight of each currency in the basket could be proportional to the GDP of each country (based on purchasing power parity, for example), its share in international trade, as well as the population and territory size of participating countries.
In addition, the basket could contain an index of prices of main exchange-traded commodities: gold and other precious metals, key industrial metals, hydrocarbons, grains, sugar, as well as water and other natural resources. To provide backing and to make the currency more resilient, relevant international resource reserves can be created in due course. This new currency would be used exclusively for cross-border payments and issued to the participating countries based on a pre-defined formula. Participating countries would instead use their national currencies for credit creation, in order to finance national investments and industry, as well as for sovereign wealth reserves. Capital account cross-border flows would remain governed by national currency regulations.
The 3rd and final stage is also what I have been saying for weeks now.
Countries need commodities for consumption, not to act as means of settling transactions. So we cannot really think of “commodity-backed currencies,” rather that the fiat currencies of commodity producers will become more attractive.
It is very clear to me Sergey Glazyev is a man to be trusted and knows what he is talks by about.
Clearly knows more than the gold bugs who will hate this analysis.
Thank God Russia’s future is in good hands.
In practical terms, we read this article as “future tense.” Meaning, little of it has been applied. Hopefully, It will in the future, but like any world system, it could take years to iron out all its weaknesses and faults.
Surely, the US Hegemonic system was years in the making.
You see, the US Hegemon, thinks in “the present tense.” It will seek every means to destroy these theoretical concepts from ever bearing fruit.
“Full spectrum dominance” is espoused by most US Neo-cons in the US Financial/Political/Military & Foreign Relations Networks. It is not some theoretical concept — instead, it is a reality, a mind set revealing the dangerous predatory behaviors that we have seen all around the world.
All we can say at this point is: “Know who is your enemy.”
“Currently, the US is fighting to maintain its dominance, but just as Britain previously, which provoked two world wars but was unable to keep its empire and its central position in the world due to the obsolescence of its colonial economic system, it is destined to fail.” A horrendous oversimplification by Glaziev. WW1 was initiated by Britain because it had no answer to competition from Germany, in part because the gold standard forced it to keep interest high. US almost got the reserve currency after WW1 but was thwarted by Bank of England/Montagu Norman. An unstable construct with the pound on top ensued. Britain purposefully blew up the system in 1931 in a last attempt to stave off loss of hegemony. Before WW2 both UK and US built up Germany, US also USSR. Their aim was to come out on top, all contenders ruined but US won by supplying Germany so the Blitz was possible (ruining Britain), and leaving USSR to fight alone long enough. I’m not reassured by this shallow analysis from Glaziev.
The concept of a basket of currencies to underpin financial/trade transactions has been discussed and even implemented modestly (the SDR). There are many obstacles which prevented, and continue to prevent adoption. While attempting to include the global south in this new synthetic currency, Glazyev proposes that the basket include such factors as global south currencies, but also a large menu of commodities and other components.
This, laudably, stabilizes the “stable coin”. Contrarily, the many moving pieces, even if agreed upon initially for a launch of some sort, invites discord.
Astute market-engaged observers will recognize that the major trading patterns today reflect the predominance of China for finished goods and commodities for three or four nations, primus inter pares being Russia. So Russia and China can simply continue to trade between themselves as they are doing presently. And barter is a much unsung but relevant reality to what China and others are engaged in with its global south trading partners.
No one should be deluded into believing that commodity prices are not volatile — commodities are grouped by the industrial sector that drives prices (eg copper in housing, lithium in batteries etc).
The missing element in this wayward discussion is simply this: commodity prices reflect demand or perceptions of future demand. Demand is driven by utilization, ie ability to economically use these inputs to produce other downstream inputs or finished goods. For the last 20 years, the country has proven itself able to process commodities and raw materials across all sectors into an ascending value chain (ending, say with an airport and everything that the concessions therein actually seek) is China, par excellence.
Informed readers should read last month’s astonishing papers by Zoltan Pozsar (Credit Suisse) on “Bretton Woods III”, if they haven’t already. Pozsar was a wake-up call to global financial fiduciaries and wealthy private investors. His ideas clearly originate from a different viewpoint than the posters here, but it cannot be omitted in any serious discussion of the next stage of “reserve currencies”.
Glazyev is a blow hard who hardly is the “world’s most influential economist.”
Putin bounced him for his vicious attacks on the head of Russia’s central bank, Elvira N. who defers to Putin’s decisions.
Putin then threw Glazyev a bone by making him Head of Macroeconomics of the Eurasian Economic Alliance, hardly an “influential” position,
I dare anyone to read this blowhard’s pipe dream ‘new global finance system’ in one tedious sitting.
He will do. The current Putin team and even more the Chinese know where the global system should be headed.
I saw a Chinese statement that summed it up in a sentence: alternatives to debt based national currencies were needed. Put the global hegemon in its place and take it from there.
if the west continues on this path pushing for war against russia now and china later to divert attention from their own now rapidly failing economic model instead of virtual digital money which will arrive at some point down the road irrespective of war or no war what may well be the interim monetary step before digital fully arrives is going to be barter. globalizing is dying rapidly, supply chains are fracturing everywhere, shortages are becoming the ”new normal”, mistrust or outright refusal of this nations money or that nations money only spells the breaking down of the division of labor.
well before the world arrives digital money the way things are headed we may see currency become things not symbols, instead of distrusted or cancelled papers banknotes we may see bags of rice or cans of soup or even ammunition as valued items with a universal recognizable worth.
i think national monitary money would be used for in country trade and out of country trade in gold backed digital amounts
The gold standard had its own insurmountable problems. The actual problem is not in ‘national’ but in ‘debt based’. Debt and interest multiplying exponentially is not a workable model now. In societies historically famous for wealth there was an everyday currency that worked on the opposite of interest, called demurrage currencies. In ancient Egypt this was potshards that were receipts for wheat delivered into storage. They lost value over time to reflect costs of storage etc. So money had to be spent and invested constantly and kept circulating.
China solves the debt problem by writing off debt while pretending to run by Western rules.
Good Pepe piece–with a bit more meat on the bones than in some of his recent efforts.
Each time I read these commentaries on Russia’s Central Bank I see disconcerting evidence of:
a) senior Russian managerial incompetence
b) 5th-columnist sabotage
c) demonstrations of the power of the 5th column that this is not treated as sabotage.
d) demonstration of an unseen power–historical banking cartels, Wall Str., WEF, other?
e) anti-statist, anti-collectivist legacy from the rejection of Communism.
Any thoughts from someone with better knowledge of Russian society?
Which country today has the greatest domestic stability and political-economic sovereignty in the world? China. The Russian-Chinese partnership is the Russian guarantee of intern/domestic stability against its internal threats.
Thanks Pepe!
Great article on how Capitalism is exploiting this war in Ukraine and how USA is using it to maintain its global Empire.
https://braveneweurope.com/richard-d-woolf-the-role-of-capitalism-in-the-war-in-ukraine#comment-169098
Comment on this article:
We marvel at the architecture in Madrid, Lisbon, Rome, Vienna, St. Petersburg, Paris, and London and never think that this was accomplished on the backs of the working people in the colonial empires.
Philosophically, Capitalists are selectively opposed to business subsidies, but what exactly are lower labour standards, attacks on union wages, and benefits, reduction in trade standards, user-fee increases, and the monopoly rights of media companies, but subsidies to business through the back door.
Supply-side policies, which have also been called the “trickle down” theory or “Reaganomics,” feed the production side of the market with incentives. These policies call for governments to stimulate the economy by significantly reducing taxes (primarily for higher-income individuals and businesses), lowering interest rates, restricting spending on social programs, and selling government services to the private sector.
Government regulations, often designed to protect investors, workers, consumers, children, and the public, are eliminated to reduce business cost. But this often puts workers and the public at risk.
Ted Lowie has suggested that what America has done is to introduce a new form of socialism; it leaves profit to the private market, but it socializes risk, which is in effect assumed by the government, which then spreads the cost across the backs of the taxpayer. This is exactly what we are doing now with billions in military aid for Ukraine to stop de-dollarization even at the expense of supporting a regime taken over by Nazis. This is a threat to all of us, not just to Russia.
Yes I agree on Ted Lowie. Sounds like Canada.
I thank you put more emphasis on Glazyev’s credentials than they’re worth. In fact, he’s more or less a communist. Communist economics was tested for 70 years and it had major flaws. So major, the system collapsed. Sergei Glazyev is a voice in Russian debates, but you assign him far far too much influence.
You should have a link to the book “The Last World War” on this page. You’d sell a ton. I’m very curious and now going to read it.
His part about digital currency:
“the final stage on the new economic order transition will involve a creation of a new digital payment currency founded through an international agreement based on principles of transparency, fairness, goodwill, and efficiency”
has me a bit concerned but as long as it is NOT tied to a “Digital ID” and just used for country to country settlements then I’m okay with it.
I agree wholeheartedly with him about the central bank. Long overdue to fix that one but I’m thinking it will happen sooner than later.
Excellent article. Glad to see Russia has a superb economist like Glazyev. Constitution should be changed so Russia can have a state owned central bank like China does.
Hi John
They don’t need to change the constitution, 100% of the shares of the Central Bank of Russia are already owned by the State.
According to the constitution, the CBR is an independent entity. However, it could be argued that it is independent in name only as it remains a paid-up member of the BIS.
In this way, it is like the Bank of England which is also 100% Govt owned. Of course the BOE is a paid-up BIS member too… so just how ‘independent’ is it in reality?
Most CBs have a theoretical separation between ownership and control as their statutory mandates are based on economy type goals eg, control of inflation, financial stability, and employment rather than any objectives for the organisation itself.
As far as I know, the only banks around the world that are not fully Govt owned are…
State Ownership share
Belgium 50%
Greece 35%
Italy 0%
Japan 55%
San Marino 67%
South Africa 0%
Switzerland 51%
Turkey 51%
United States 0%
The shares of the central banks of Belgium, Greece, Japan and Switzerland are publically traded stocks.
The two glaring outliers are of course the FED and Italy’s Central bank… 100% of the shares in each case are owned by Private Banks!
It seems to me it would be child’s play to rob a bank if you own it… especially if they are never audited!
Cheers
Col
Having several main currencies is a good idea as it removes control of money supply and interested from the elite few in the EU who use it for their own evil ends.
But while a digital currency is a functional portable idea it must only be a extra to the usual paper and metal coinage. Attempting to remove the old type of money will be opposed and result in civil war.
Any recently frozen Russian reserves will only be a fraction of Russia’s real wealth and monetary position so they are in the long term meaningless.
Who need money as debts, bearing compound interest? Germany in the 1930’s, did rather well by issuing, ‘one mark of money, against one mark of labour’!
Gold does not build pyramids, it is the life-force and skills of the people.
Why then do people find money, defined as a scientific measure of human life-force, to be an absurd concept?
What do you want to use – a bag of wheat, a cow, a shadow of fiat debt, in Plato’s Cave of Usury?
I promised that I was done with this thread, but there is something else to say.
In my heart and soul, I want to be with Col…’the farmer from NZ’ who stated: “What fantastic news and thanks ever so much to TS and Pepe for bringing this to us… you guys just made my Easter.”
I had wished that this was the fantastic news and on reading this at least 30 times (I kid you not), I cannot help but say again that this is a plan, an idea from a theoretical analytical economist. There are parts that deserve further study, but it is theoretical and I don’t see the ’empirical’ tests here.
Second, Nabuillina – there is much knee-jerk against the woman here. It is fashionable to beat her up. But this is my question. If she was taking orders from the IMF, why is 5,000 sanctions against Russia still needed? Clearly, she is not. She may be a 5th or 6th column, but it is easy for Glazyev to say if she only did this or that, Russia could have been better off and theoretically give numbers for the so-called damage that the so-called Russian Central Bank did to Russia. This is not a linear process. With sanctions I wonder if we can call the bank still a ‘central bank’, or is it now a Russian-owned bank in word and deed?
I am deeply suspicious that he is saying this now again. Of course it is easy to be critical now, because of the freezing of assets and the advent of sanctions.
If we talk about this column or that column, I think he is one too. Does anyone see him in his own words here being supportive of Russia? I just don’t see it.
My own theory here is that trade is happening. Of course, those benchmarks (stablecoin theory) are being set in various trades even now. And the trades are massive. Nothing has stopped.
I cannot go with an imposition of a ‘system’ at this time, even though it may be exciting and sexy and a fist in the face of empire. I would rather give this process some more time, see what these various trade initiatives come up with, (example Russia-Iran-China), and then figure if countries by themselves can come up with their own methods, or see whether a Zone B benchmark is needed.
BRICS in any event is working on this. Russia’s Finance Minister Asks BRICS For Non-Dollar Financial Trade Settlement Agreement
https://www.russia-briefing.com/news/russia-s-finance-minister-asks-brics-for-non-dollar-financial-trade-settlement-agreement.html/
All good Amarynth!…
Nothing wrong with a little bit of caution and measured scepticism.
Perhaps I am getting a little ahead of myself in some ways, simply from eagerness and on account of working so hard for more than 20 years in trying to expose the horrible hegemon and its funding source.
The link you provide is very encouraging too. Especially if you graphed the fact that…quote…
“Intra-BRICS trade accounted for 15% of all global trade in 2019, with some analysts suggesting it could reach 50% of all trade by 2030.”
That was a pretty spectacular trend in itself. But of course, it was all based on the realities that existed before this current extraordinarily bad behaviour of the Anglo-American hegemony.
If we look at the recent UN vote the tally was 93 nations voting for expelling Russia from the Human Rights Council, 24 against and 58 abstained. Clearly, countries that abstain are potentially exposing themselves to almost as much wrath and vitriol as the against votes.
Adding in the 58 and the 24 you get 93:82 which is not that one-sided at all. However, if you start delving into the populations involved. Indeed the ‘fors’, on this basis, are then vastly outnumbered.
Looking at the populations of the ‘against’ votes countries with populations over 20 million…
Algeria/ China/ Congo/ Korea/ Ethiopia/ Iran/ Mali/ Russia/ Ubekistan/ Vietnam… which of includes of course one absolute behemoth at 1.439 billion.
In the 58 ‘abstentions’, these countries of over 20 million people included…
Angola/ Bangadesh/ Brazil/ Cameroon/ Egypt/ India/ Indonessia/ Iraq/ Kenya/ Uganda/ Tanzania/b Yemen/ Malaysia/ Mexico/ Mozambique/ Nepal/ Niger/ Nigeria/ Pakistan/ Saudi Arabia/ South Africa/ Sudan/ Thailand…
The monster here of course is India at 1.38 billion that sits in this group.
I absolutely devour everything that Pepe and Hudson write on this subject, as I regard them as far and away the two standout commentators on the globe.
Then there was Hudson’s recent article suggesting…quote…
…” Europe might as well surrender its economy and go on like “a somewhat larger version of Puerto Rico.”
…and… “After all, Europe “has pretty much ceased to be a politically independent state, it is beginning to look more like Panama and Liberia – ‘flag of convenience’ offshore banking centres that are not real ‘states’ because they don’t issue their own currency, but use the U.S. dollar.”
Hudson then went on to ask…
“What may be seriously in dispute is whether the U.S., after “the economic conquest of Europe”, will be able to “lock in African, South American and Asian countries”. The Eurasia integration process, rolling in earnest for 10 years now, conducted by the Russia-China strategic partnership and expanding to most of the Global South, will go no holds barred to prevent it.”
/the-total-war-to-cancel-russia/
The UN nation vote, to me anyway, answered that question absolutely conclusively. This is a cold war on steroids now and one that the AA Hegemony has lost already if you analyse it simply on a population and trade alliance volume basis.
The next few years ain’t gonna be pretty… Ummm… sort of pretty much like the last 30 years really, when all said and done.
Cheers
Col
Why is it so hard to develop international currency swaps, between different nations, without using the US dollar?
Why not just use the spot price of gold as the medium of exchange, as gold is an international traded commodity.
A gold exchange can easily be converted into Rupees, Rubles, Yuan, whatever currency you need?
Physical gold, of course, does not need to be exchanged, the price of gold is just an international measuring stick.
Or make it more sophisticated with a basket of commodities, but the principle remains.
Anything but fiat banknotes, with no intrinsic value, spat out of a printing machine, owned by God knows who, and I don’t even think God knows!
Just what is the problem?? It is only a three-year-olds dilemma surely??
Or am I missing something?
What most people fail to understand is that since banks started to use computers some years ago is that 98% of money/currency is already created digitally ex nihilo. It is nothing new. Only 2% of money is now printed on paper. In general it is not the central banks who create the money supply, but they set the rules that apply to the private banks, who are members of their debt based system.
Even so, it is important to differentiate digital money that is created as debt, which is the case in the US, EU and the UK so that no debts = no money, and money that can be created ex nihilo without incurring debt.
China creates its domestic money supply the yuan/renminbi ex nihilo via its government owned central bank without incurring any debt whatsoever. This is why their industrial economy is surging ahead unconstrained by interest payments and debts to private banks and the US and EU are lagging behind.
Yes Kapricorn, the Chinese monetary system is deliberately hidden from the punters, or derided as communism.
But why not go one step further, and create the monetary supply, ex nihlo, as a national asset, our nation’s greatest treasure?
Why do we have this obsession with the ‘negative mathematics’ of debt, and why cannot the sovereign banks monetise customer collateral, as interest-free customer assets? The monetary power is then diffused within the people, and the people become their own central banks!
The monetary supply is now created as bank credits, and as customer assets. Where is the need for debt?
If the US fails to change its debt based monetary system issued and controlled by private banks, then its industrial economy will continue to be constrained by compound interest payments, and lag far behind that of China. The US strategy is not to change the US system, but to have regime change China, using Russia as a stepping stone.
It would be a simple matter to eliminate US Treasury debt in one fell swoop by nationalizing the Federal Reserve, so that it becomes subsumed into the US Treasury to create all the money needed for government spending debt free without the need for taxation. The only need for taxation by the IRS would then be to delete a fraction back out of existence to control the rate of inflation of the currency and reduce inequality.
State governments also would no longer need to charge sales or or real estate taxes that could be funded instead by direct grants from the US Treasury on a per capita basis.
For consumer and corporate loans, the private banks would then then have to BORROW money from the US Treasury at interest, and act as lending intermediaries instead of CREATING money as debt.
Of course this is going to be difficult to realize, since the enforcement arm of the central banks is the US military, who have ringed China with ballistic missiles. They took down Iraq because Saddam Hussein proposed selling oil in Euros, and Gaddafi had the effrontery to propose using a gold backed dinar.
I like all you say Kapricorn4. You are describing a natural, authentic money system. However, I think you will not only be fighting the military, the enforcers, but also the private bankers, accountants, pawn brokers, tax officials, etc, all those who make a living off the ‘price of money’!
If the power of money creation remains with the sovereign nation, then there is no need for ‘interest upon money’. Loan capital is simply created by monetising customer collateral, as bank credits, and as interest-free customer assets. The nationally owned banks then offer a profit-free service to their customers, such as individuals, private companies, and our nation’s Treasury!
When we allow banks to make profits, by imposing usury, we destroy every other business in the nation! When banks are profit-free national instruments, then all other businesses can flourish, free from racketeering!
There could be a case for private bankers to operate in their own independent ‘casino’ environment, for those who cannot access ‘interest-free’ money, (???), created against the value of their own collateral, but with the historical behaviour of these private bankers, I would not even give them a single rat hole in which to exist!
Money creation is a sovereign power, and if we allow the ‘price of money’ we open the door to Satanism.
Hi Kapicorn4
Man did you just absolutely nail this entire tragic scenario in a mere 5 short paragraphs. BRAVO!!!
I tried to explain this reality to Greg Hunter [USA Watchdog] more than 10 years ago. He responded by unceremoniously throwing me off his site and blathering on endlessly about how the NZ central bank is no better than dah FED! Weeeeell, there just happens to be a couple of things here that make a wee difference… at least in my world, they do…
NZ’s CB bank model is like most of the countries of the world… IOW it is entirely state-owned. That said… as stupid as it is for any country to allow 100% private ownership of their CBs [only two countries do… US and Italy], the next dumbest thing they could possibly do is to become paid-up members of the BIS ‘gentleman’s’ club. Newsflash… NZ is part of this club too… just as all the major central banks of the world are.
To me, any notion of a CB being either independent, or even sovereign for that matter, completely flies out the window with BIS club membership. Clearly, they follow a playbook of cabal directives. Trace back the ownership of the BIS… hullo… its pretty much owned by the global private banking cabal.
Herein perhaps lies Russia’s quandary, although I will hazard a guess that this situation might be tidied up in fairly short order now… we’ll see. Rightly or not, I’m eagerly listening for cues on this front from Mr Glazyev. He’s a little bit like Putin… he recognises the need to take very carefully measured steps in order to avoid looking like JFK or, in the banking world equivalent, the tragic example of DB Chairman Alfred Herrhausen.
https://larouchepub.com/eiw/public/1998/eirv25n32-19980814/eirv25n32-19980814_037-the_assassination_of_herrhausen.pdf
Of course, all of the Western AAZ alliance belong to this group including little old NZ [also curiously a very junior member of the Five Eyes]. BTW 61 countries belong to the BIS gentleman’s club and as such none of these banks could, in your wildest dreams, ever be described as completely independent, nor ‘sovereign either for that matter.
The one glaring exception to this would be China… it is a member but nothing they do could ever be remotely construed as following the BIS playbook. Most of their policy is the polar opposite, especially when you look at their banking model being run on state-owned and coop principles. It’s like they belong to the club, but only in as much as it allows them to know their enemy.
Getting back to the NZ example, if we were dumb enough to be both a BIS club member and have a 100% Private Bank Cabal owned CB, then it would be about as much consequence to the global economy as a lice on the arse of an elephant. We rank #50th in the world in GDP… similar to Portugal and Peru. If we make the comparion to US States then we sit at #25… right between Oregon and South Carolina.
Interestingly, not to mention alarming of course, although NZ only accounts for 2.1% of the volume of world trade, our NZ dollar is the 10th most traded currency on earth. I will let you guys draw your own conclusions as to how this glaring anomaly can be explained. My guess… our BIS membership might just be setting us up for a little extra extortion, rape, and pillage perhaps?
So yes Kapricorn, great to see you making these astute observations. In essence, the US has been able to endlessly print fiat fairy tale paper and sell outrageous levels of debt. This then gives the head of the hegemon the wherewithal to go about its business of preying on the entire globe.
Even more astonishing is the fact that so many countries glibly and routinely buy up all this debt. They seem to possess no clue whatsoever that they were actually signing up and financing their very own victimisation and subservience to the AAZ hegemon. Of course, the treasonous accomplices that Mr Global has as shills and plants are under no illusions, they know exactly what they are doing.
This will end, there is nothing surer… and probably with both a bang and a whimper.
Cheers
Col
economists know nothing about geopolitics:
the US chokehold on germany+EU just became stronger than ever, e.g., merkel refused the F-35 but now germany announced it will earmark ~10 billion for buying… F-35s.
this, together with the sales of ultra-expensive US LNG to the UE, is just the beginning.
US will force, if necessary manu militari, all non-eurasian producers of gas, oil, and raw materials to sell their stuff in dollars even more than before.
to this end the USA will soon fully subjugate the entirety of latin america and southern africa.
and fascistic euro-supremacists that now control the EU unopposed will prey for Lebensraum in the mediterranean and northern africa (with US permission).
RUS&CN cannot (yet?) oppose the armies/navies of US&EU in either region.
the US is about to be flush with cash again…
Well, a stunning intellect like Ringo Star can’t be wrong. His opiniojs dont sound like the sort of take big-capital likes to promote to prevent the curtailments of its own desires by mechanisms that might be charged by democratic forces in the ruling beaurocracy to promote the public good (yuck!)
Perhaps Ringo Star is just a drummer from a crap band reproducing sell known phrases of right-wing noise.
Well, a stunning intellect like Ringo Star can’t be wrong. His opinions don’t sound like the sort of take big-capital likes to promote to prevent the curtailments of its own desires by public mechanisms that might be charged by democratic forces in the ruling beaurocracy to promote the public good (yuck!)
Perhaps Ringo Star is just a drummer from a crap band reproducing well known phrases of right-wing noise.
There are lots of ironies on claim “how independent” e.g Baltic countries are from Russian energy. Estonia is one of them. However at this time around 11 a.m Sunday Helsinki time Finland is still importing 1371 MW electricity from Russia while exporting 703 MW to Estonia. And this is just tiny piece of facts unveiling this “out of Russian influence” pretense.
During the last 50 days I have found zero evidence showing Finland decreasing electricity imports from Russia. Quite the opposity. Russian electricity might have had effect to keep prices some 10% lower than without it. It seems to be that 1/4 of new nuclear power reactor produced electricity has been planned for needs of Estonia. Not for Finns. The plant project (French Areva) itself has been scandal and fiasco. Started production 13 years later than planned.
For Finland electricity is vital thing to keep forestry, steel and chemical industry alive and per per capita the consuming is over 3 times more than in UK. Cold winter explain less than half of gap. Even during spring and early summer Finland consums twice more per capita than UK and France. This all after high scale modernizations like ground-source heat pumps and air-to-air heat pumps + energy friendly houses. If you wanna have industry you need electricity 15,000 KWh per capita annually in Scandinavia and in Canada (or massive use of natural gas and oil for heating) . The UK figure of less than 5,000 KWh per capita is mostly telling how industry has left that country and skillfull working class decimated. Norway, likely the mostly wealthy society, uses annually 24,000 KWh per capita mostly because its impressive aluminium industry. One of the main reasons of high KWh consuming figures also in Gulf countries.
So all the talks how “energy is just small part of GDP” is utter nonsense. In fact when sources of energy are lost the industry will leave any country. Same if energy costs are absolutely too high. It’s still tabu to talk what will happen to nation which have lost its industry and culture of it. Some pathetic tries of “new economy” can’t repair that huge disaster. Jobs are 90% lousy paid which strangle whole middle class dream. No wonder why younger generation will have worse prospects for future than even their grandparents after WW2 had.
That is why Angela Merkel ordered the shut down of German nuclear power stations, that would destroy German industry. It was an order from the Soros backed Green party, otherwise she would not have been “re-elected”
Chancellorette.
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” – Thomas Jefferson in the debate over the Re-charter of the Bank Bill (1809)
“I believe that banking institutions are more dangerous to our liberties than standing armies.”
–Thomas Jefferson
“The modern banking theory of the perpetuation of debt has drenched the earth with blood, and crushed its inhabitants under burdens ever accumulating.”
-Thomas Jefferson
Imo. For cross border trade, a centrally planned/controlled digital currency is likely to be less efficient (example: Euro) compared to using national currencies whose strength and convertibility are determined by market dynamics within the trading bloc.
I used to be an international physical metal trader in Molybdenum, Cobalt, Nickel, Vanadium, Chrome, Tungsten, Tantalum, Manganese and Silicon. It was always far easier for both buyers and sellers to use US dollars for payment. Sometimes a consumer would insist on conversion to their national currency, but this involved fairly substantial bank charges.
Kapricorn4, was this ease of using US dollars done before the US started printing US dollars like a high pressure sluice pump, reducing the US banknotes to their intrinsic value of zero?
And were the additional bank charges deliberately imposed so that US dollars were the natural choice?
Surely it would be easy to remove the additional bank charges, between two consenting adult nations, perhaps simply by referring to the international measure of the spot gold price??
Interbank foreign exchange trading by major banks comes to $6.6 trillion per day on a bid/ask basis. The quotes are not negotiable. It’s take it or leave it, and the other variable is the date of settlement, that can be irksome when a customer is late in paying.
International trading is not for amateurs or the faint hearted, it is a very stressful occupation, that can, however, be very highly paid even as an employee. The most successful traders make most of their profits by speculation, that requires good judgement with regard to market direction. Getting involved in forex on every trade is not worthwhile, although I used to buy/sell dollar/sterling on occasion.
Yes, of course. In the envisaged trading bloc, I presume trading agreements between buyer and seller would stipulate currency of payment … nations treasury would hold different currencies, weightings determined by requirements of their trading relationships. Not much different to today … except relatively much smaller volume of dollars, euros and pounds etc.
I can see that the advantage of the US dollar for trade is that the US is the only nation with the printing press for US dollars. Two other trading nations have their own printing presses, for their own currencies, so there is the chance, in a direct trade between these two nations, that one of the nations will simply print the digital banknotes for their trade, and get the other nation’s products for nothing!
Each nation would have to be able to verify the other nation’s creation of their monetary supply, to ensure that there is fair trade?
A nation can only print their own currency, when they do, that results in domestic inflation and decline in competitiveness of the cost of their exports. The US, until recently, got a free ride because of the demand of dollars in global trade. The cost of EU printing Euros, is zombie corporates, banks and bankrupt countries … Italy, Greece etc.
The Euro seems to be a colossal failure, a bankers tool for control and power!
In normal banking operations, within a nation, the banks simply tally their trades, each night, and then settle the final difference of assets and debts, between their bank accounts, to balance their books. Millions of dollars in trades may be settled with a final $50 note!
In the same way, the Reserve Bank of each nation becomes the clearing house for trades, say between two nations, with a final adjustment made each night, to balance the accounts. The trades would be based on commodities and services, perhaps measured by the spot prices of gold. Who needs the US dollar?
This sounds pretty simple??
Amazing how prescient Pepe is:
August 4, 2020 Conversation between Pepe, Alistair Crooke and Mohammed Marandi
“Everybody is absolutely lost into this wilderness. Nobody talks about what the Joe Biden campaign actually proposes. They don’t seem to have a national or international program. In fact, their international foreign policy is very well organized like in the Obama years. The guy who’s running the people around Biden foreign policy is TONY BLINKEN. TONY BLINKEN is an extremely dangerous character. He was the guy behind Obama’s silent wars. Including those famous meetings every week to decide “okay who’s going to be decided this week in the kill list, so o he’s going to have a Hellfire missile on his back.”Just to give all of you watching this how dangerous this is in terms of if we have a “Dem” as President, WE’RE GOING TO HAVE A HOT WAR IN 2021. THIS IS PRACTICALLY CERTAIN. WE DON’T KNOW AGAINST WHO.”
Minute 31:3
https://www.youtube.com/watch?v=dSVKNS8xsbU