In general, over the last several decades the world has experienced an unprecedented era of peace and prosperity. The opening up of relations with China and the "end of the Cold War" resulted in an extended period of cooperation between east and west that was truly unique in the annals of history. But now things are shifting. The civil war in Ukraine and the crash of MH17 have created an enormous amount of tension between the United States and Russia, and many analysts believe that relations between the two superpowers are now even worse than they were during the end of the Cold War era. In addition, the indictment of five PLA officers for cyber espionage and sharp disagreements over China's territorial claims in the South China Sea (among other issues) have caused U.S. relations with China to dip to their lowest point since at least 1989. So could the emerging division between the east and the west ultimately plunge us into a period of global chaos? And what would that mean for the world economy?
For as long as most Americans can remember, the U.S. dollar and the U.S. financial system have been overwhelmingly dominant. But now the powers of the east appear to be determined to break this monopoly. Four of the BRICS nations (China, Russia, India and Brazil) are on the list of the top ten biggest economies on the planet, and they are starting to make moves to become much less dependent on the U.S.-centered financial system of the western world. For example, just last week the BRICS nations established two new institutions which are intended to be alternatives to the World Bank and the IMF...
So in their summit, from July 14 to 16, the five BRICS announced two major initiatives aimed squarely at increasing their power in global finance. They announced the launch of the New Development Bank, headquartered in Shanghai, that will offer financing for development projects in the emerging world. The bank will act as an alternative to the Washington, D.C.—based World Bank. The BRICS also formed what they’re calling a Contingent Reserve Arrangement, a series of currency agreements which can be utilized to help them smooth over financial imbalances with the rest of the world. That’s something the IMF does now. Clearly, the idea is to create institutions and processes to supplement — and perhaps eventually supplant — the functions of those managed by U.S. and Europe. And they would be resources that they could control on their own, without the annoying conditions that the World Bank and the IMF always slap on their loans and assistance. This comes at a time when both China and Russia are seeking to emphasize their own currencies and move away from using the U.S. dollar so much.
Even in the western media, it is being admitted that China's yuan is "a growing force in global finance", and according to CNBC the use of Chinese currency in international trade is growing very rapidly...
Of the German companies profiled, 23 percent are using the renminbi to settle trades, up from 9 percent last year, while usage in Hong Kong rose to 58 percent from 50 percent and to 17 percent from 9 percent in the U.S. Usage of the renminbi among French companies - a new addition to this year's list - was high at 26 percent. And of course Russia has been actively pursuing a "de-dollarization strategy" for months now. Each new round of economic sanctions pushes Russia even further in the direction of independence from the U.S. dollar, and Gazprom has been working hard to get large customers to switch from paying for natural gas in dollars to paying for natural gas in euros and other currencies. For much more on this, please see my previous article entitled "Russia Is Doing It – Russia Is Actually Abandoning The Dollar".
At this point, it seems clear that Russia plans to permanently decouple from the U.S. economy and the U.S. financial system. Just today we learned that Vladimir Putin plans to make Russia less dependent on U.S. companies such as IBM and Microsoft, and any future rounds of sanctions are likely to cause even more damage to U.S. firms that do business in Russia.
But potentially much more troubling for the U.S. economy is the startling deterioration in the relationship between the Obama administration and China. Some analysts are even describing this as "a tipping point"...
One day, the United States indicts five PLA officers for cybercrimes; the next, the United States claims victory in WTO disputes over car tariffs and rare earth minerals. All this is happening while the United States promises enduring support for Asian allies, and it has moved openly to challenge the legitimacy of Chinese territorial claims in the South China Sea. Meanwhile, China is busy creating facts on the ground and water. Last month, a $1 billion Chinese oil rig set up operations in territorial waters claimed by Vietnam. In the East China Sea, Chinese SU-27 fighter jets have come within 100 feet of Japanese surveillance aircraft. This was all capped at the recent Shangri-La Asian Security dialogue in Singapore (Asia’s annual defense-ministers meeting): Defense Secretary Chuck Hagel bluntly described China’s behavior as “destabilizing, unilateral actions.” The PLA deputy chief of staff, Lt. Gen. Wang Guanzhong, accused the United States of “hegemonism.” The mood has soured, more than the usual ups and downs of big-power relationships. The question now is not whether a “new type of relationship” is in the offing, but rather, whether U.S.-Chinese relations have reached a tipping point. Most Americans could not care less about what China is doing in the South China Sea, but to the Chinese this is a very, very big deal. In fact, China just sent a surveillance vessel to Hawaii as a bit of payback for what they regard as U.S. "provocations" in the region.
In the old days, China would have probably never have done such a thing. But China is gaining confidence as the gap between the U.S. military and the Chinese military rapidly closes...
Away from the Chinese military’s expanding capabilities in cyberspace and electronic warfare, Beijing is growing the size and reach of its naval fleet, advancing its air force and testing a host of new missiles, the Pentagon said Thursday. An annual report to Congress on China’s evolving military capability concluded that the modernization was being driven in part by growing territorial disputes in the East and South China seas, as well as by Beijing’s desire to expand its presence and influence abroad. In fact, the Chinese military has grown so powerful that we are now seeing headlines such as this one in The Week: "China thinks it can defeat America in battle".
And the Russian military has made tremendous strides as well. Putin has been working hard to modernize the Russian nuclear arsenal, the Russians now have a "fifth generation" fighter jet that is supposedly far superior to the F-22 Raptor, and they have nuclear submarines that are so incredibly quiet that the U.S. Navy refers to them as "black holes".
If Russia and China stay united, they are more than capable of providing a counterbalance to U.S. power around the globe.
But even if military conflict is not in our immediate future, the breakdown in relations between east and west could still have a dramatic impact on the global economy.
Over the years, the U.S. and China have developed a highly symbiotic relationship that fuels a tremendous amount of economic activity all over the planet. Each year, we buy hundreds of billions of dollars of products from the Chinese. Just imagine what our stores would look like if we took everything that was "made in China" out of them. And after we send them giant piles of our money, we beg the Chinese to lend it back to us at ultra-low interest rates. This arrangement has allowed China to become extremely wealthy and it has allowed Americans to enjoy a massively inflated standard of living fueled by ever increasing amounts of debt.
So what happens if this relationship starts breaking down?
Without a doubt, it could potentially lead to global chaos.
So keep a close eye on this emerging division between the east and the west. It could end up being far more important than most Americans would ever dare to imagine.
Russia practicing nuke attacks on America from Canada
While Selfie Supremos President Barack Obama and Prime Minister David Cameron were hosting NATO showbiz, complete with a flyover and kingly feast at Cardiff Castle, last Thursday and Friday, guess what the Russians were doing?
Two Russian strategic bombers were conducting practice cruise missile attacks on the United States of America at the same time the NATO summit was being held in Wales.
The Obama/Cameron NATO flyover was for show. Putin’s nuclear bombing practice for cruise missile attacks is for real.
“The Russian Tu-95 Bear bombers were tracked flying a route across the northern Atlantic near Iceland, Greenland, and Canada’s northeast.” (freebeacon.com, Sept. 8, 20140)
That’s a lot closer to home than the globe-trotting Obama was.
“Analysis of the flight indicated the aircraft were conducting practice runs to a pre-determined “launch box”—an optimum point for firing nuclear-armed cruise missiles at U.S. targets, said defense officials familiar with intelligence reports.(freebeacon.com)
“Disclosure of the nuclear bombing practice comes as a Russian general last week called for Moscow to change its doctrine to include preemptive nuclear strikes on the United States and NATO.” They’ve been here before:
“In June, Russian bombers flew over the arctic prompting intercepts by Canadian fighters on two occasions. The Canadian government called the stepped up bomber flights a “strategic message” from Moscow amid heightened tensions.” Problem is that while NATO leaders like Obama and Cameron, whose signature administrations come from ducking action, send out showbiz messages when holding summits to address Islamic terrorism, Russia sends out “strategic” ones.
The politics of posturing, rhetoric, grandstanding and showbiz have failed the populations of the Free West. This includes the abysmal failure of the far left over the last three decades in uselessly declaring cities ‘nuclear weapons-free zones’.
Rhetoric, particularly when it comes from double-talking politicians, scares no one.
“Google Earth analysis reveals that a Tu-95 launch box located in the Labrador Sea and firing AS-15 missiles would be in range of Ottawa, New York, Washington, and Chicago, and could reach as far south as the Norfolk Naval base.” The bear is on the loose and it isn’t weakling Barack Hussein Obama this time.
Ravening bears under the black flag of ISIS and the Russian Federation tri-colour are coming at the Free West from all directions.
While NATO members were swilling food at Cardiff Castle and watching specially arranged flyovers for their personal entertainment, Russia extended another of its octopus arms from Ukraine to Estonia.
...”But that era of post-cold war calm may have come to an end on Friday morning, when, according to several Estonian accounts, smoke grenades detonated at an Estonian customs post, and all radio and telephone signals were jammed as armed Russian men suddenly materialised and dragged away a local official. (Guardian, Sept. 7, 2014)
“His name is Eston Kohver, a counter-intelligence officer in the Estonian security agency, Kapo, whose job over the past few years has been to keep tabs on the smuggling cartels trying to sneak merchandise through the Luhamaa crossing. “But Kohver’s fate has now become entangled in a much bigger issue: the question of just how far Vladimir Putin’s Russia is prepared to go to goad the Nato allies on its doorstep.” “This is not something cooked up the day before yesterday,” said Eerik-Niiles Kross, a former Estonian intelligence chief and national security advisor. “I don’t know if it was an FSB shady deal that went wrong, but whatever it was, you have to put it in the general context. The timing is either an odd coincidence, or it is a signal.”
China firm in its resolve to build sea power People's Daily Online
(People's Daily Online) 09:47, August 27, 2014
It is reasonable that China should become a maritime power. In the face of groundless criticism, China will remain confident enough to transfer its strategic will to action.
Since China launched its strategy to become a maritime power , it has been criticized for a "unilateral attempt to change the status quo in maritime disputes", and labeled a "bully" and a "provocateur".
China's aspirations to become a sea power are perfectly reasonable. In its past as a traditional land power, China suffered invasion by the great powers from the sea. China remembers that period of history only too well, and it will spare no efforts to avoid any repetition by enhancing its maritime strategy. As a major international power, China needs to improve its ability to explore and manage the sea. Utilizing maritime resources to benefit modernization is a long term project. Building its sea power is clearly a reasonable step.
China's intention is to become a sea power peacefully, and to help to maintain order and peace on the oceans. Alfred Thayer Mahan, a United States Navy admiral and historian, came up with the influential concept of "sea power" claiming that "countries with greater naval power will have greater worldwide impact". History backs up his view, as The Netherlands, Spain and Britain were Europe's leading powers, their positions reinforced by sea power. But history also proves that the success of such countries was transient if they used their power to further expansionist strategies.
In the process of building China's sea power, maritime disputes are inevitable. Such disputes concern the core interests of China, including sovereignty, and directly affect national security and sustainable economic development. China is determined to resolve these disputes via negotiations with the other parties involved, maintaining regional peace and stability. Although confronted by a series of complex situations, China is well prepared to defend its legal rights on such matters as the Diaoyu Islands, the Huangyan Islands, and the Ren'ai Reef, and to return offshore oil drilling vessel 981 to service off the coast of Hainan island.
The ocean facilitates voyage and connection, making sea exploration more open and accessible than land development. Therefore, it needs win-win cooperation between countries to explore the sea. China depends on both individual efforts and cooperation with others in the process of building its sea power.
As a newcomer to the seas, modern China enhances international exchanges and theoretical research on the frontiers of sea science, and takes an active part in international maritime affairs.
Editor's Comment: In addition to the above information, it should be noted that China has also moved physically into the Fiji Islands, after agreeing to build at least two power plants. They will be using ports at Fiji for their Navy, giving rise to China’s continued expansion in the Pacific. This certainly is a continuing shift in strategic power that should be watched very closely by the American Patriot.
Background information: Border Issue
The Origins of Central American Child Sex Trafficking for U.S. Bound Juvenile Illegal Immigrants
The Border Patrol is fully aware that most illegal immigrant juveniles making the journey north are abducted and sex trafficked before reaching the United States. In June of 2014, I was watching the one and only episode that I have ever watched of the television show, Border Wars. In the 15 minutes that I watched this episode, a Border Patrol agent was interviewed on camera as he was standing next to several underage Central American females. He proclaimed that their apprehension in the desert probably saved these young girls, as young as age 11, from being forced into prostitution and child trafficking. I was shocked by the candor of the Border Patrol agent and that his statements actually made it past the producers of the show and this portion of the episode was aired.
To obtain the rest of the story, it is necessary to review major facts as revealed by my DEA informant regarding the role that the SANCHEZ-Peredes plays in the fate of the welfare and whereabouts of the Central American children trying to make it to the United States.
1. The SANCHEZ-Peredes drug cartel provides the bulk of drugs to the Mexican Sinaloa cartel. The Sinaloa cartel has been trained in El Salvador in paramilitary tactics using weapons supplied by Hamas via the Peruvian based SANCHEZ-Peredes drug cartel.
3. The last three DEA special agents who attempted to investigate the SANCHEZ-Peredes were fired by former DEA station director, Patrick Stenkamp. Therefore, one must conclude that there is a U.S. government cover-up in place to obscure the activities of the SANCHEZ-Peredes cartel and its role to what is happening on our border.
4. The Peruvian military not only protects the SANCHEZ-Peredes drug cartel, they are a part of its operations.
5. The Russian mafia has moved into Peru, formed an alliance with the SANCHEZ-Peredes cartel with regard to the formation of gambling establishments located in Peru.
6. Where one finds Russian mafia gambling operations, one also finds a variety of sex trafficking operations. The Russians typically traffic Russian women to various locations around the world, including the Middle East, through its Hamas connections. Many of these women end up in places such as Saudi Arabia and Israel. However, the Russians are not above getting their hands dirty with regard to child sex trafficking.
What is completely provable, is the fact that there are tens of thousands of missing Central American children who, at one time, boarded a train presumably were headed to the United States. We know from the Stone investigation which revealed that reported train derailments of the Beast train have been faked and that only a small fraction of these Central American children ever make to the United States border.
These aforementioned facts are bolstered by the fact that there is incontrovertible evidence that criminal drug cartels, such as the Sinaloa cartel and the Los Zetas, have not only used MS-13 gangsters as hit men and child sex traffickers, but so has the Juarez Cartel and the Barrio Azteca. Los Zetas and the Sinaloas have also conducted training in parts of Central and South America, and have even allowed MS-13 gangsters to lead in operations as when "El Comandante Kilo" operated in San Fernando on behalf of Los Zetas. This training consists of several parts: paramilitary training, assassination, gun running while being supported by drug running and child sex trafficking. In this unholy arrangement, the Sinoloa cartel obtains arms from Hamas, via the SANCHEZ-Peredes cartel from which to train groups like MS-13 in El Salvador in the art of paramilitary tactics. MS-13 hit men are making to the U.S. border, but most of the children are not. It is very probable that the children are being removed from the Beast trains and sent to the SANCHEZ-Peredes cartel and their Russian Mafia allies who in turn are providing these newest sex slaves to Hamas in the Middle East in this modern day version of an Iran-Contra style operation.