by Ruby Henley
As President Trump is in deep contemplation on the North Korean dilemma, he understands that the military might of the United States is now also its currency. Nations around the world are being led by China and Russia to remove the US dollar as the primary world reserve currency. This is a gang-up against the United States to destroy its long-held standing as the number one world economic power.
But how does this current economic battle to circumvent the US dollar affect President Trump’s decision to show North Korea the military might of the United States? If the United States loses the present currency wars, what do we have left in dominance? Of course, the answer lies in our military might, and that is why President Trump is increasing our military budget and showing our military strength.
Do sanctions work with North Korea? No they do not. North Korea will continue its nuclear program at any cost, as Kim Jong-un will never allow his country to become Iraq or Libya. He knows he has two choices: be overthrown or become a nuclear power. In becoming a nuclear power, he will have a “currency” to trade.
In walks Iran to save North Korea from economic sanctions. As China backs off from North Korea, Iran has been kissing up with Lil’ Kim. In fact they are offering to export oil to North Korea, which the Asian power desperately needs. North Korea may be short on dollars to pay for Iranian oil, it has a “nuclear currency” in technology and materials. Thus, we see North Korea unwilling to allow sanctions to stop it in its display of nuclear power.
Is the United States preparing to lose the currency wars? I think so, and we need to brace ourselves now, for we are entering a valley of the dollar death. The dollar in foreign holdings has been on a rapid decline, and it is now in a death spiral. The United States will see devastation in everything from our investments, our wealth, and our social well-being.
What will really signal our breaking point? You could say that we have already reached the beginning of the end. Five of the biggest emerging national economies: Brazil, Russia, India, China, and South Africa united to create a $100 billion BRICS Development Bank with the headquarters in Shanghai. This will enable developing economies to grow without leaning on the shoulder of lending firms in the United States. BOOM goes the dollar!
China puts it this way: “The agreement ushers in a long-awaited alternative to the Western-dominated institutes in global finance. The development of the BRICS Development Bank gives poor developing nations the option to potentially receive better lending terms. In addition, these nations no longer have to rely on the harsh lending terms from Western banks.”
Oil enters the picture to create the storm of all storms for the United States. These countries are rich in energy resources; thus, we encounter the issue of the “petrodollar.” China is busy shaking hands with Saudi Arabia, and make no mistake about it: this is a major threat to the United States and its petrodollar. China is the bully and the gangster threatening the United States behind the scenes. It does not matter how many visits, dinners, or handshakes we have with China, I think it is a little too late for us to save our necks.
Yet, you cannot blame any country seeking to gain its independence from the United States, as we have waged war for gold and world dominance. Look what we did in Libya and why. Muammar Gaddafi sought to create a African currency backed by gold, which would circumvent the US dollar.
NOTE: Hillary Clinton leaked email shows Gaddafi was primarily overthrown to put a dead stop to his plan for the gold-backed currency – to prevent oil from being priced outside the US dollar. Here is an instance in which military might saved the US dollar.
Lets look at the United States’ relationship with the kingdom of Saudi Arabia. Since 1974, Saudi Arabia has accepted payment for its oil exports to all countries in dollars. This is per an agreement which goes back to the Nixon days, and the United States protects Saudi Arabia with its military might in return for its use of the US dollar as the dominant petrodollar.
China has become a major importer of Saudi oil, and China wants more than anything to circumvent the US dollar. Make no mistake about it, this is going to happen sooner than later. China is shaking hands with Saudi Arabia while lowering its oil purchases from the militarily needy country.
In walks the forsaken gold standard. The United States is presently watching and waiting as the Chinese plan to replace the US dollar as the petrodollar with the yuan, backed by the gold standard, on the Shanghai Exchange is being put in place. Saudi Arabia is not going to be left behind by China, so we are about to see a betrayal take place between the Country and the United States. If Saudi begins accepting yuan for oil, the US petrodollar will be no more. Think about that.
We’re already witnessing the groundwork that Saudi Arabia and China are paving to price/trade oil in yuan. But if China ends up buying a stake in Aramco, the pricing of Saudi oil could include yuan, and even shift from dollars to yuan.
If this happens, China would influence nearly 40% of the global oil and gas production through its interests in Russia, Iran, and Saudi Arabia – maybe more when you consider Venezuela.
But will the Saudis allow China to own a stake in Aramco and risk losing US military support?
I think so, but only if it has access to other military support – say, from China.
In March, Saudi Arabia and China struck a massive $65 billion investment cooperation deal. Within that deal was an agreement to set up the first factory for Chinese hunter-killer aerial drones in the Middle East.
Via South China Modern Post:
“Saudi Arabia’s key science and technology organization has confirmed that one of the deals sealed during Saudi King Salman’s visit to China this month was an agreement to set up the first factory for Chinese hunter-killer aerial drones in the Middle East.”
Furthermore, via Defense News:
“Security ties between the two have also grown significantly, with the Royal Saudi Air Force deploying Chinese unmanned attack drones and the two militaries holding joint counter-terrorism exercises in western China. Chinese naval defense vessels have also visited the Saudi port of Jeddah as part of increasingly active maneuvers in the Gulf of Aden.”
Soon we will see a massive arms deal between China and Saudi Arabia to cement their relations. Or we will see the US block it? END OF QUOTE
As we listen to President Trump threaten North Korea with military might, you may want to refer back to this article. If the United States loses the petrodollar to the Chinese yuan, what power do we have left? If we do not dominate as a military power, where will be on the world stage? This is only my opinion and theory. However, I think it is worth considering.
In fact, where do we stand on the world stage in relation to other countries as a world military power? The graph below taken from the following link: www.businessinsider.com/the-worlds-most-powerful-militaries-2017-3 is the best I could find to illustrate or military standing.
END OF QUOTE.
by Ruby Henley