Sitrep: China. Is. Dead. Serious.

October 04, 2021

Escalation?  Continuation of “Sitrep : China. Is. Dead. Serious.”

By Chris Faure for the Saker Blog

China will not be conquered again, even if every last Chinese has to join the fight.

In the past four days, China has sent first 28, then 29 fighters and bombers near Taiwan. (Taiwan itself reports different numbers). Then, the US announced on Sunday that this is provocative. So, China called the statement irresponsible and sent a massive number of 59 fighters and bombers near Taiwan in a ‘take that!’ move.

https://www.globaltimes.cn/page/202110/1235639.shtml

But first, why would China militarily get involved in Taiwan, as it is their own territory under the 1992 Consensus for “one-China”? Taiwan is clearly China’s internal affair.  What are their red lines?

  • Taiwan declaring a flash independence (they cannot really because they are umbilically connected to the mainland)
  • Internal turmoil inside Taiwan as we saw in Hong Kong
  • Taiwan may make a non-legal military alliance with another country
  • And any violation of the 1992 consensus.

None of these conditions are currently present, but we will need expert advice on the 1992 consensus. I do not know de jure how close Taiwan is to that red line. De facto the Taiwan announcement that they are preparing for war is completely provocative.

Currently China is not threatening, she is using her air force to deliver very strong warnings that the conditions are approaching red lines.

Lets look at Global Times. Bear in mind that the Global Times is not a bullhorn for Chinese people. It is for the dissemination of information to western people. That is its function. 

https://www.globaltimes.cn/page/202110/1235638.shtml

The Take Aways are:

– Time to warn Taiwan secessionists and their fomenters: war is real:

“The secessionist forces on the island will never be allowed to secede Taiwan from China under whatever names or by whatever means, and, the island will not be allowed to act as an outpost of the US’ strategic containment against China. “

– “The strategic collusion between the US and Japan and the DPP authorities is becoming more audacious, and the situation across the Taiwan Straits has almost lost any room for maneuver teetering on the edge of a face-off, creating a sense of urgency that the war maybe triggered at any time.”

Sunday, further Global times writing appeared, by a GT voice, warning the EU (GT voice should indicate to us that this is unified among the Chinese people).

EU warned not to play with fire on Taiwan question. https://www.globaltimes.cn/page/202109/1235387.shtml

The Take Aways are:

– China will reconsider the European trade agreement.

“If the EU simply wants to develop normal economic and trade relations with the Taiwan island, its unusual emphasis on the latter’s role in its Indo-Pacific strategy should be viewed with suspicion. Some European politicians may think that playing the “Taiwan card” will draw more attention and could help pressure the mainland to make more concessions. But confusing the right and the wrong on China’s bottom line is a dead end.

The Chinese mainland’s position on the Taiwan question remains clear and resolute. All exchanges with the island must be handled in strict accordance with the one-China principle. They cannot exceed the scope of normal nonofficial cooperation and exchange.”

So, this is where we stand in this face-off and more analysis will follow.

October 05, 2021

Escalation? Continuation of “Sitrep : China. Is. Dead. Serious.”

by Chris Faure for the Saker Blog

Continuation of “Sitrep : China. Is. Dead. Serious.”

Let’s take a look at what China overcame in our near history.

  • The NED and similar organizations’ sponsored “Color Revolutions” in Hong Kong, Tibet, and Xinjiang all collapsed. We can also be sure that this escalation that we see now is not really about Taiwan. Taiwan is playing its role, like the dissidents in Hong Kong did.
  • The Trump Trade War collapsed and his focus on tariffs is now taking a tremendous toll on the US West Coast Ports.
  • The western propaganda war on China is collapsing because of the efforts of blogs like The Saker Blog and many others that took up writing about this.
  • The economic war is collapsing. For this, we have to follow Michael Hudson who details the butt-hurt Soros types who cannot make China dance to their tune. China has done massive work so that they do not have monopolies and internal destabilization by ‘too big to fail types’.
  • The return of Meng Wanzhou as a figure of national pride, which was a very delicate operation if one follows all of the plane routes during the sensitive exchange. Meng was exchanged for two worthless Canadian spies. There is another theory and this is that Canada tumbled to pay back the US for not including them in AUKUS.
  • The idea that the Chinese are not soldiers. They are that now because they have to be. * More about this following.

Let’s see what China gained in our near history

  • The pride, persistence, and trust of the citizens.
  • Major developments in space, like their own space station (slated to be a launching platform for? For what really? I do not know but the west has declared space a warfighting domain.) Most nations are welcome to come and hook up their own module, but the western world is not. This is a little payback for not allowing Chinese astronauts on the international space station.
  • A top US general, Milley, is so fearful of China that he called his counterpart in the late days of the Trump administration and told them that the US will not attack. (General Miley called to deliver a madman message–we have a madman at the helm and he may send nukes your way, so don’t do anything to give him an excuse. The poor general also had to deliver a contradicting message–at the same time, America is not falling apart; everything is hunky-dory and the well-oiled machine is running smoothly. ) (I know this has been taken out of perspective by almost everyone, but I am thankful, no matter that he may be a sniveling idiot. He did the rest of the world a favor).
  • China is in the process of destroying the dollar hegemony slowly but surely with Russia already having done its part and divesting from the dollar in their sovereign wealth fund. This deserves an analysis all by itself. Needless to say, China is launching its digital Renminbi, or Digital Currency Electronic Payment, commonly referred to as E-CNY, a central bank digital currency issued by China’s central bank, the People’s Bank of China. It is the first digital currency to be issued by a major economy. The digital RMB is legal tender and has equivalent value with other forms of CNY, such as bills and coins.
  • The fight against a virus called Covid.
  • China is now exceeding the US in almost all economic metrics, although they still refer to themselves as the 2nd major economy.

And at this stage, China makes major military flights near Taiwan.

A few statements:

  • China has no interest in military action against Taiwan
  • Taiwan has no real desire for military action against China (it would be somewhat like swatting a fly for China and will be over in an hour whichever method China chooses).
  • Here is Taiwanese Foreign Minister warning that his country is preparing for war with China.  He asks Australia for help and Australia’s 60 minutes distributes the war propaganda.
  • https://www.abc.net.au/news/2021-10-04/taiwan-preparing-for-war-with-china/100511294.
  • Is the US interested in a war against China over Taiwan? We simply do not know.

What do we know?

Taiwan is a smaller copy of the economic miracle of China and there is no question of its economic success and high tech ability. But China mainland purchases over 40% of Taiwan’s production in both high-tech and agricultural products.

By studying Taiwan’s financial reports, MintPress has ascertained that the semi-autonomous island of 23 million people has, in recent years, given out millions of dollars to many of the largest and most influential think tanks in the United States.

It is then easy to conclude that with this revolving door, the US decided that Taiwan is an easy ingress to their hope for regime change in China itself (stated publicly by Mike Pompeo) and the AUKUS deal started the new range of increased provocations: It looks like any of the old color revolution tactics or initiatives, just now with an added threat.

This one, could end up in a hot war with both Russia and China.

Taiwan will not have a referendum for independence, because independence is not a done deal for the Taiwanese people. The ruling class fears that such a referendum will not be successful. We all know the ‘call to democracy’ and we all know that this is invoked over and over by hegemonic powers to justify their own excesses. Well today, Taiwan’s Tsai is invoking ‘a call to democracy’ via an article in Foreign Affairs Magazine. China is not impressed as she knows as well as you and I, what that really means. https://www.globaltimes.cn/page/202110/1235658.shtml

China’s interest is peace and security in the region, which is now being called Indo-Pacific. Martyanov says this terminology is hegemon speak, and I’m inclined to agree with him. It used to be Asia Pacific. I so hope someone can draw me the borders (even a dash line) where the Indo pacific and the Asia Pacific exists. Wikipedia, instead of being obscurantist as usual, this time gives the plot away.

The term first appeared in academic use in oceanography and geopolitics. Scholarship has shown that the “Indo-Pacific” concept circulated in Weimar Germany, and spread to interwar Japan. German political oceanographers envisioned an “Indo-Pacific” comprising anticolonial India and republican China, as German allies, against “Euro-America”.[2] Since 2010s, the term “Indo-Pacific” has been increasingly used in geopolitical discourse. It also has “symbiotic link” with the Quadrilateral Security Dialogue, or “Quad”, an informal grouping of in the region, comprising Australia, Japan, India, and the United StatesIt has been argued that the concept may lead to a change in popular “mental maps” of how the world is understood in strategic terms. https://en.wikipedia.org/wiki/Indo-Pacific

Martyanov says that the US has clear dominance in submarine capability and he also says that escalation is something that is very hard to predict. Here we see escalation toward war, with the US using probably the only card that they have to play, trying to kick off an ocean-wide domination conflict on the shipping lanes of communications, with probably the only weapon that they have left, submarines to try and consolidate at least something of US economy and influence across the world. Right here the issue of escalation becomes complex. Russia will not stand out of this and what happens when the Zircons start flying? How soon until Japan, Australia and Taiwan are demolished? We will leave this here for professional analysts to opine.

With that as a backdrop, let’s return to China, specifically the general belief that the Chinese are not born soldiers. That is true, yet the difference is that they prefer to solve problems non-kinetically. (Which is 100% fine with me!) But, they have other abilities, one of which is that they do not give up. The Saker has often said that morale is the greatest weapon of a military force. In this case, I would add to that: preparedness. Again Martyanov said that this thinking on the dominance of sea-lanes is not new. Well, China knows that as well, and they have prepared.

Every school child and university student in China now goes through military training. For the school kids, it is part of the initiative by the Chinese leaders to relieve the school kids from absurd requirements for STEM learning and to get them outside to take part in healthy play and strengthen them physically.

Every city has a local militia and they are armed to the teeth and drill and practice continually. This alone is estimated at 1 million feet on the ground (from Chinese sources).

If kinetic action breaks out in their own backyard, they have the numbers and home team advantage.

Following are some comments from our China correspondents. I don’t have the necessary 2 sources plus another for these, but I put them here to give you an idea of the chat.

China is known to be able to set together production lines very quickly. In these comments, this one is comical and says that China is mass producing nuclear warheads like they crank out paper lanterns. The only thing on earth that is faster is the US money machine.

It may be a comical comment, but the underlying issue here is that the average Chinese person has no doubt that China will, and is able to build whatever is necessary, any war materiel of any kind, to withstand kinetic action.

Is this meaningful in discussing this escalation? I would say yes.

More comments:

If you think a war against China (and Russia – we have to call in Russia at this stage) will be a perpetual war, kindly think again. This is not a win or a lose – it is total destruction of the one that fires the first shot or shoots the first missile or positions the first submarine to destabilize sea-lanes.

This represents the average Chinese and their chat and it is not the type of barroom soldier chat. These are ordinary people.

China is a merit nation and very serious. One can expect precision and ruthlessness. You may want to believe that the Chinese are not born warriors or you may want to believe that they cannot innovate. You can believe what you want, but take a look at these comments:

They do not believe in surgical strikes should anyone attack them. They believe in pounding the source of the attack and whatever is around it, into oblivion. They have their own history as a template.

Btw, does this remind you of the Russians, who said that any strike on Russia will not only take out the strike, but also the platform where the strike comes from? The interaction between Russia and China militarily has grown tremendously as well, but again, this is another analysis.

I expect full-on military readiness as the Chinese military has been on a readiness footing for about a year now.

An outstanding question is how unified Asia is around China. Again we come up against Martyanov’s principle of escalation and this is really difficult to predict.

There is the old saying that goes like this: Do not march on Moscow!. We need to add one. Do not militarily threaten Baba Beijing!. It does not matter how for how long, they do not count their own possible dead, but they will stay the course.

Can we hope for level heads in Washington DC? Realism tells us that we have to hope for the best, but prepare for the worst. China is doing that.

Iran – New Member of the Shanghai Cooperation Organization

Iran – New Member of the Shanghai Cooperation Organization

September 18, 2021

Peter Koenig and PressTV

On 17 September 2021 Iran has become a full member of the Shanghai Cooperation Organization (SCO). It is an extraordinary achievement and new beginning for US and wester sanction-badgered Iran. On the occasion PressTV interviewed me on what this great move might bring for Iran. See the transcript below.

PressTV Question:

1.       Iran is finally a member of the SCO. It is said this solidifies a block to stand up to the West and US hegemony: will it be able to do that, and is the era of unilateralism over?

PK Reply:

First, my deepest and heartfelt congratulations for this extraordinary event – Iran the latest member of the Shanghai Cooperation Organization – SCO.
Bravo!

Yes, this will definitely open new doors, prosperous doors with new relations in the East. SCO with the current membership covers close to 50% of the world population and accounts for about one third of the world’s GDP.

Being a member of this organization, will take a lot of pressure away in terms of western sanctions, western impositions, monetary manipulations via the US dollar as a remedy for payment.
No more.

Iran is now free to deal in her own currency and in Yuan as well as in any currency of the SCO members, because western-type trade currency restrictions do not exist in SCO member countries.

This will drastically reduce the potential for US / western sanctions and will increase on the other hand, Iran’s potential to deal with the East, i.e., especially China and Russia; entering partnership agreements with these and other SCO countries, benefitting from comparative advantages. It may open-up a new socio-economic era for Iran.

Also, in terms of defense strategy – although SCO is not a military defense organization per se, but it offers strategic defense assistance and advice – and as such is a solidifying force for member countries.
SCO also respects countries’ autonomy and sovereignty – and facilitates trade arrangements between member countries.

Having said this, Iran must not lose sight of potentially disrupting internal factors, like the so-called Fifth Columnists – those who will keep pulling towards the west, and they are particularly dangerous as infiltrates in the financial sector, Treasury, Ministry of Finance, Central Bank, and so on. They are everywhere, also in Russia and China. But internal Iranian awareness and caution will help manage the risks and eventually overwhelm it. Russia has gone along way in doing so. And so has China. And so will Iran. I’m confident.

Again, excellent momentum to celebrate. – Congratulations!

——-

2.       Iran will also be part of the different regional bodies in neighborhood regions, including Eurasia, that could spontaneously break the “sanctions wall” and lead to diversified fruitful foreign relations. Does this mean the US sanctions will not be as effective?

PK Reply

Yes, absolutely. Regional bodies and trading arrangements within Eurasia – such as The Eurasian Economic Union – EAEU – has an integrated single market of 180 million people and a GDP of some 5 trillion dollars equivalent and growing. It covers eight countries of which 3 have observer status.

Other than trading with the members of the Eurasian Economic Union, the EAEU also has trading agreements as an entity with other countries, for example with Singapore.

Then there is maybe the most important trade deal in world history, the ten ASEAN countries, plus China, as well as Japan, South Korea, Australia and New Zealand – but not the United States. Thus, no dealings in US dollars, no potential for US sanctions. This Trade Agreement is called The Regional Comprehensive Economic Partnership (RCEP). It was signed in November 2020 on the occasion of the annual summit of the 10-nation Association of Southeast Asian Nations (ASEAN).

RCEP countries have a combined GDP of US$ 26.2 trillion or about 30% of global GDP, and they account for nearly 28% of global trade (based on 2019 figures). Total population of RCEP countries is 2.3 billion, roughly 30% of the world’s inhabitants.

Negotiation of this trade deal took 8 years. The longest ever. And it will of course, take time to reach the full potential of integrating the sovereign countries economies. In contrast to the European Union, RCEP will to the utmost possible preserve each country’s sovereignty. This is important in the long-run, especially for conservation of national cultures, ideologies and national development strategies.

There maybe a good chance for Iran to negotiate early entry into the RCEP Agreement. It will definitely be a blow to US sanctions – and on the other hand a tremendous opportunity for diversification of markets, production and consumption.

Again, congratulations. Being a member of the SCO is an extraordinary achievement. As, I always say – the future is in the East.

Best of luck to Iran, with new partners and new friends.

—–
Peter Koenig is a geopolitical analyst and a former Senior Economist at the World Bank and the World Health Organization (WHO), where he has worked for over 30 years on water and environment around the world. He lectures at universities in the US, Europe and South America. He writes regularly for online journals and is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed; and  co-author of Cynthia McKinney’s book “When China Sneezes: From the Coronavirus Lockdown to the Global Politico-Economic Crisis” (Clarity Press – November 1, 2020)

Peter Koenig is a Research Associate of the Centre for Research on Globalization. He is also is a non-resident Sr. Fellow of the Chongyang Institute of Renmin University, Beijing.

Weaponizing Dollar | 10 Minutes

Sep 1, 2021

Watch this episode of 10 minutes to find out more

Nixon ‘opened’ China, but only superpower China could ‘open’ Iran (1/2)

Friday, 02 April 2021 2:52 PM  [ Last Update: Friday, 02 April 2021 2:52 PM ]

US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo)
Nixon ‘opened’ China, but only superpower, socialist China could ‘open’ Iran (1/2)
Ramin Mazaheri is the chief correspondent in Paris for Press TV and has lived in France since 2009. He has been a daily newspaper reporter in the US, and has reported from Iran, Cuba, Egypt, Tunisia, South Korea and elsewhere. He is the author of ‘Socialism’s Ignored Success: Iranian Islamic Socialism’ as well as ‘I’ll Ruin Everything You Are: Ending Western Propaganda on Red China’, which is also available in simplified and traditional Chinese.

By Ramin Mazaheri  cross-posted with The Saker

One thing about Western business media is that whenever any imperialism-opposing nation has a major success their subsequent understatement speaks volumes, as evidenced by an article in the oil trade press, The Iran-China Axis Is A Fast Growing Force In Oil Markets, at the website OilPrice. For trade journalists they are quite behind the trends of their industry: Iran and China are now a permanent force in the oil world, but far beyond that realm as well.

In reading OilPrice over the years I am not surprised: they have repeatedly reacted to the bilateral 25-year strategic agreement — which has just been fully signed — as though it was something which had not been in discussion for years; with total consternation as to why these two countries could want to ally with other; with an Iranophobia so enormous that their bias is rarely even barely concealed.

The outlook of their journalists is that of businessmen, and thus it’s the incredibly narrow and self-serving point of view of a specialist. It is unsurprising that — when compelled to formulate a political or moral viewpoint — OilPrice has a totally Cold War view of the world, which is typical in the West, and which explains why their headline calls it an “Iran-China Axis” instead of an “Alliance.” The use of such a term is typical Western media propaganda designed to conflate the right-wing Germans of the World War II era with modern Iran and China, even though the latter are totally different from the former in political ideology, economic structure and social morality.

It’s a nonsensical and historically-nihilist conflation, but when examining OilPrice’s take on the Iran-China deal, we are reminded that Western business media is quite content to sensationalize, to warmonger and to create sustained market panic in order to increase the grip of militarism in the Western psyche and to continue the inequitable Western domination of the oil trade. OilPrice, specifically, also wants the price of oil to always increase.

Thus the article is full of many stupidities worthy of the idiocies of George W. Bush, the paranoia of J. Edgar Hoover, the anti-socialist hysteria of the Dulles brothers and the hypocritical phoniness of Barack Obama. Things of the lowest order of political analysis and knowledge abound, such as: “The first is they are both absolute dictatorships,” “the rogue Islamic country,” China’s Belt and Road Initiative is “a shield for China’s true intentions” and a “Trojan horse” for “military expansion,” etc.

(Of course, few international projects as transparently pragmatic and non-ideological as China’s BRI — if you accept China’s offer of mutually-beneficial cooperation there is no additional demand to also legislate acceptance of their “universal” values.)

But we benefit from knowing the oil trade’s viewpoint because while there are so very many financial shenanigans in the Western economy, there is still a “real” economy, and oil is its lynchpin.

Oil is also the lynchpin of the US dollar’s global preeminence and overvaluation. Indeed, this article’s concluding paragraph is a reminder of those very fundamental — yet often forgotten — facts: “Finally, the introduction of a war premium to oil prices will cause a commensurate re-evaluation of oil equities in non-belligerent countries. The modern economy runs on petroleum products and derivatives, and will for many decades.”

 The Great Financial Crisis and subsequent Great Recession proved that the Western economy is indeed incredibly vulnerable to many types of phonily-inflated equities, economic fundamentals-untethered financial products, sham derivatives concocted by high finance and more besides. However, the author is correct when he writes that paragraph because the Petrodollar — the forced sale of oil in dollars — is the most important and longest-running financial sham. It replaced the gold standard, after all.

But China and Iran’s unprecedented petrodollar end run (and via a new joint China-Iranian bank) is just one part of why their bilateral agreement is such a huge deal. Not only does the pact upset the delicate balance of Western financial chicanery, but it permanently upsets longstanding Western geopolitical advantages, global geopolitical reality and especially the idea that the United States is the sole portal through which modern history can enter.

US has fallen so very far since 1971— now they are even behind China, and Iran just proved it

The bilateral deal’s importance can’t be understated for either side, and I have written about it for years. It’s as if — in the year 1545 — the Bolivian silver miners at Potosi struck a fair deal with the Spanish crown: Instead of getting enslaved, sham conversions and colonized Bolivia would still be an Incan cultural force today, with almost 500 additional years of illustrious history, learning and advancement. Thankfully, China is socialist — thus it is anti-imperialist and mindfully chooses cooperation over enslavement (either literally, through local puppets or through debt). Thankfully, Iran is not the shell-shocked Inca — they know who their enemies are, and also who works with enough goodwill to be welcomed.

For a more modern take, the deal is the equivalent of Richard Nixon’s “Opening of China” in 1971, except in a total role reversal: What is historically vital is no longer the position of the US, but the attitude of the superpower China.

Iran is often described as the last great “untapped market” — against all odds, expectations and supposed historical inevitabilities they chose the East as partners, not the West. That’s gigantic.

The deal will mark the “Opening of Iran” because it is not a mere “lifeline” to Iran – as it is often falsely described – but a guarantee of real prosperity, as it will be administered by Iran’s successful, revolutionary political structure. It is absolutely not more than just the achievement of stability, which Iran achieved entirely on its own starting in 1979, when the slogan was “Neither East nor West but the Islamic Republic.”

To quote from the OilPrice article:

“The New York Times is quoted as saying-

 ‘The partnership, detailed in an 18-page proposed agreement obtained by The New York Times, would vastly expand Chinese presence in banking, telecommunications, ports, railways, and dozens of other projects. In exchange, China would receive a regular — and, according to an Iranian official and an oil trader, heavily discounted — supply of Iranian oil over the next 25 years.’

 And there you have it.”

And there you have it, indeed.

Iranian Foreign Minister Mohammad Javad Zarif, right, and his Chinese counterpart Wang Yi are seen in this photo while signing the “Comprehensive Strategic Partnership” deal between the two countries in Tehran on March 27, 2021. (Via IRNA)

Oil-based cars and machines may be significantly phased out by greener technologies in 25 years or so, but Iran has made a superb bargain to sell as much oil as they can while they still can. The “heavy discount” is only about 4%, but I can see how – as a Western “oilfield veteran” – this OilPrice author expects everyone to scratch and claw for every penny he or she can grab. For Iranian bureaucrats, however, a longer-term economic view is required, as is less greed.

War —  and sanctions (what used to be called “blockades” in English) are indeed war — certainly does force civilians and civil servants into more moral and more intelligent behaviors: self-sacrifice, unity, collective action, planning, determination, study, reflection, etc. The West’s sanctions have been perhaps praised in Iran nearly as often as they have been derided because Iran has had no choice but to build up its domestic capabilities — economic, intellectual, moral and natural — which naturally demanded a long-term commitment of domestic effort, political policies and acceptance of the national consensus.

But if the economic impact of illegal Western sanctions encouraged Iran’s leaders to make a 25-year oil bargain at only a 4% loss, then I say: take the money and run. If Washington, London, Paris and Tel Aviv fully had their way Donald Trump would have succeeded in forcing Iran to get 0% value from China —instead Tehran settled for 96% value over 25 years. If Iran doesn’t get yuan for every barrel that’s fine —China has technologies and skills which Iran can learn from, assimilate into future domestic projects and then likely export.

But this is what nobody seems to get about the indubitably socialist-inspired modern Iranian economy: Iran doesn’t do Western capitalism, i.e. it doesn’t sell out. Chinese companies will work alongside Iranian industries, all of which are state-owned and state-controlled to a degree which is unthinkable in the neoliberal West. China is not “buying” Iranian corporations – this is not $400 billion in “mergers” and “take-overs” — they are buying Iranian products or bartering for them via techniques Iran can learn from and projects which Iran needs to see built.

And there you have it: Iran secured money and intellectual investment for 25-years, and there is no danger of this investment being hijacked by foreign capital from any nation, which is how foreign investment works in Western neoliberalism. If the Iranian government can redistribute money downwards so effectively over four decades of hot and cold war, then surely they can do better in times of economic prosperity —this is the argument many Iranians have made over and over and over, and the West is fearfully aware of this rationale.

$16 billion per year in cash/goods/skills, and throw in a little thing called diplomatic unity, over 25 years – remember to compare that with what the West just offered: In 2019 France proposed a one-time $15 billion credit line. It was shot down by Washington, and of course Europe complied because neither want Iran to be prosperous or stable.

An incredibly ‘woke’ cooperation between 2 different ethnicities, cultures, regions & religions

Iran has proven to the world that America no longer has the ability to control the main global gate, and that is indeed a real achievement, but this achievement was equally fueled by Western incompetence, cruelty, intolerance and greed. Iran and China have risen, thanks to their modern and revolutionary cultures and structures — of course — but just look at how far the West has fallen since 1971?

As for China it’s vital to remember that it was an oil embargo which pushed fascist Japan into war with the United States, but China now has a guaranteed source of oil stability. China, which imports 75% of its daily needs, is almost as oil-poor as Japan but now no matter what Western adventurism produces in the Straits of Hormuz Beijing can count on the certainty of enough oil supplies to get by.

Iranian oil is already serving as Beijing’s backup against Western imperialist immolation, as the OilPrice article relates in detail: “China is stockpiling oil at a pace unrivaled in the developed world.” Doing so is, “In a marked dichotomy with the U.S., China is building oil inventories by design.” China, in contrast to Western liberal democracy, actually has competent civil service motivated — not by “universal” values, perhaps — by actual values instead of personal greed.

And there you have it: good governance based on modern political ideas which value the individual citizen over the aristocrat’s dollars. That’s the reason why Iran and China rankle the West so much.

So how could the West possibly like the 25-year strategic pact – it’s a “permanent” sea change. It’s a “permanent” step up in class for both Iran and China, and via an incredibly unprecedented cooperation. “Our relations with Iran will not be affected by the current situation, but will be permanent and strategic,” said China’s Foreign Minister Wang Yi at the signing.

But it’s not based on mere dollars — it’s a “pact” in a very broad cultural and political sense, and that’s both a shocking rejection of the Western model and the exciting proposal of something new for global humanity.

China and the USSR never cooperated as closely as this. Impressive Cuba, all alone in the New World, just can’t bring the heft which Iran brings to the table. North Korea is so beset upon and so war-scarred that they reject diplomatic ties like what Iran just accepted. You’d have to go back to the Eastern Bloc’s cooperation with Moscow to find something similar.

But what makes this cooperation so incredibly and excitingly “woke” is that it’s between two totally different cultures, religions and ethnicities. It’s truly a meeting of minds, as equals. We could truly go on and on about this aspect, and we should. We should also repeatedly point out that Western liberal democracy demands homogeneity via total submission to their hive mind, whereas socialist democracy protects, accepts and elevates differences and minorities in a consensus-based democracy.

It’s a meeting of two longtime empires whose modern political structures now explicitly forbid empire-building. But that’s a point which stresses the past and looks backward.

This is a meeting of two countries bravely and excitingly looking forward to this new century, whether it’s the 15th (less than two weeks ago the Iranian calendar reached the year 1400), or the 48th (it’s year 4719 in China).

It’s an incredible cooperation, and one so very long in the making.

Part 2 of this article examines how Western media responds to Sino-Iranian unity with hysterics at the prospects of reduced income from the Western imperialism machine. The article is titled: The Iran-China pact is a huge blow for Western imperialists who want war in Asia

(The views expressed in this article do not necessarily reflect those of Press TV.)


Press TV’s website can also be accessed at the following alternate addresses:

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No, the dollar will only strengthen post-corona, as usual: it’s a crisis, after all

April 16, 2020

by Ramin Mazaheri for the Saker Blog

No, the dollar will only strengthen post-corona, as usual: it’s a crisis, after all

There is a lot of chatter about how the coronavirus economic overreaction and subsequent US bailouts will end the dollar’s reign as the global reserve currency – such wishful thinking is shortsighted and ignores even recent Western capitalist history.

Last November, in a then-boring but now-prescient 10-part series (I socialistically re-interpreted ex-Wall Streeter Nomi Prins’ book Collusion, which chronologically detailed the QE-spreading collusion between G20 central banks since 2008), I wrote the following in Part 3: QE paid for a foreign buying spree: developing countries hurt the most:

“Yet by flooding the world with trillions of dollars via QE the US was able to, paradoxically, maintain dollar dependence despite their crimes. The US dollar share of global reserves today is 62%, almost exactly what it was in 2008. Combined with the other source of the crisis – the euro – the two combine for 82% of global reserves. By comparison, the yuan – which so many predict is about to dethrone the dollar – is at below 2%; I wouldn’t hold my breath.”

But corona is different, right? Two percent and 62% will suddenly change places, right?

No, more QE is more of the same thing, and this is a “thing” which has worked exactly as designed; it is also a “thing” which is never broached in the Mainstream Media: “A way to create debt traps which increase Western control over their neo-imperial subjects. … Neoliberal-capitalism financial policies must be viewed as a neo-imperial tool, of course.”

People are acting as if Western neoliberalism hasn’t worked, LOL? It has worked spectacularly well… but only for their 1% and not for “the nation”, exactly as designed.

Many fine semi-dissident commentators apparently do not follow high finance, nor can they interpret their actions, even though high finance is the West’s vanguard party (thus the theme of my recent series – “bankocracy”); they often incorrectly focus on an easier-to-grasp storyline of nationalist competition, which (like racism, sexism or tribalism) simply cannot ultimately take precedence over class warfare.

I’m not being dogmatic – this simply provides the fullest explanation of economic events. Reject what socialists could call the “conspiracy” of the 1% via class warfare? Then you likely move on to absurd, unprovable “conspiracy theories” involving secret cults, elaborate handshakes, ritual sacrifice, etc.

This is the bottom line which (whom I will call) “dollar-demisers” simply do not understand: For better or for worse (certainly worse), the US and their greenback are still the gold standard when it comes to 1%er perceptions of a safe harbour in a crisis.

This will hold true in 2020 just as it did in 2008.

Many semi-dissident analysts unwittingly take a rather Trotskyist view that capitalism will eventually implode under the weight of its own contradictions. It won’t – some rats always find a way to survive a sinking ship, eh? Thus, open socialist combat is the only way to defeat modern Western capitalism, and also to satisfyingly explain what is going on in the Western Great Recession/Depression 2.

So maybe the yuan will become the dominant currency… but not in two months, nor two years – maybe two decades? That’s a big “maybe”. In my lifetime, I think.…

Until then, please believe me: Western globalisation/neoliberalism has a LOT of ammo, clout, clients, banks, real money, real gold, fake money and paper gold to keep their mighty dollar on top. Socialism teaches us: it is NOT just Americans who will deploy these weapons.

Just look at what high finance did when the corona crisis hit – journalism is just recent history

As soon as the lockdowns hit Western Europe you couldn’t buy a dollar from high finance. Why? Because people were panicking and wanted a safe haven (and had huge bills to pay) – they did not run to the yuan, but the greenback. The yuans ran to the greenback!

(Some Western commentators often act as if China doesn’t know what they are doing by being the second-biggest holder of US Treasuries – as if Beijing is somehow being suckered or something? Similarly, but from the other side of misunderstanding, Trotskyism faults China for playing along with capitalist-imperialists in order to strengthen Chinese socialism. Both views are absurd.)

As the corona overreaction progressed, and even as it became clear that a country with third-world inequality and gaping structural flaws was about to go on lockdown and impoverish half its populace within a season, this country’s currency did not drop in value as it should have – I am speaking of the US.

Fair? No. Reality? Proven. Predictable? Entirely.

Equally unprecedented during these March days was a historic run on physical gold, history’s nostalgic (not current) safe haven, which I would have bought if I could have found any (I actually did not even look, as I have no money). This was a major step in a vital historical trend – let’s call it “fiat regoldification” – but please note: here we are, still using fiat (paper) money. Please note #2: individual 1%ers are still buying (parking their assets) way more in dollars than they are in bars of gold, even if central banks have edged more towards gold than dollars only recently.

What also happened in March? Just like in 2008, the US immediately opened more “currency swaps” – loaning scores of billions of dollars to their main client states to satisfy dollar demand… and make them even more beholden to maintaining dollar supremacy.

And by the end of March the US announced (effectively) $6 trillion in new bailout money. Yet no dollar devaluation, still? Return back to that 62% figure: yes, dollar dominance didn’t increase significantly since 2008, but there was no stagnation because the total reserves held by all central banks has expanded by more than half since 2008.

The “dollar-demisers” just don’t get it – they must live in nationalist vacuums? Germany just announced $1 trillion, after all, right? (France finally announced theirs – just $120 billion… because the global 1%’s plan continues to be “strangle the French model”.) Many nations have announced a similar “devaluation” as well, and they didn’t benefit from the dollar’s perception of unrivalled stability to begin with. The US $6 trillion comes within this critical context. But now extend out your timeframe to 2008 – how much new money has been printed across the G20? In this global context of recent history $6 trillion isn’t much, certainly not enough to ruin the dollar.

But beyond the unshakable perception of stability, the dependance entrapment, and the global money printing bonanza, what’s the biggest reason why everyone is rushing to the dollar? Simple – everyone else’s debt and collateral sucks even harder than it did in 2008: Eurozone bonds, corporate bonds, mortgage/credit card/auto loan-backed securities, overinflated stocks, overinflated real estate, overinflated Da Vincis, Third World investments about to go bust, any-World investments about to go bust post-global corona lockdown – US bonds are still the best, safest place for the 1% to park their savings.

So – don’t get it twisted – the dollar is now stronger than ever in 2020.

Just check the dollar index – it’s up over 20% since 2008, even though they were the cause of the crisis, and for the reasons I listed. The dollar will only strengthen post-corona, as usual: it’s a crisis, after all.

You’re underestimating people, and you underestimate how much room the US has

Here’s the thing about people not understanding high finance – they also are too dismissive of them (like with China’s treasury-holding bankers): People mistakenly assume that US bankers are a bunch of rich-kid idiots, and that they do not realise that being viewed so positively by the rabid capitalists of the global 1% undoubtedly gives them unparalleled leverage. No – the US is well-aware that its money machine can go brrrrrr, to use the top meme on this subject, and the dollar will not crater.

So when Neel Kashkari goes on TV and says the Fed has an “infinite amount of cash” it is wrong to make fun of him – the focus should be on the fact that he is taken SOMEWHAT seriously despite making such an economically-illogical claim. He is taken seriously because that is HOW VERY much money the US can print before they imperil the dollar’s reserve currency dominance.

The dollar is used in 40% of the world’s debt, 80% of global payments and nearly 100% of its oil sales – again: the world’s rich want to use dollars. Again, China doesn’t even want to use their own currency – in the past two decades dollar-denominated debt has exploded, and this trend was led by China. And yet we should assume the yuan is on the cusp of replacing the dollar? This unwind will not, I’m sorry to say, happen at corona-speed.

How much room does the Fed have to inject? A lot, depressingly.

(So we’re clear: What is this injecting doing? It is assuming the bad debts/failed investments of multinational high finance dominated by NYC. That total is not some infinite, abstract, undefined mathematical variable. This is what the phrase “picking the winners” means. Nobody is holding a marker with “quadrillion” after the number. )

From $2 trillion in 2008, in late March it was suggested it could hit $10 trillion to stem the corona craziness. That won’t be enough – and the hidden “10-to-1” lever in the $450 billion section of the $2.2 trillion bailout implies that already – but the US probably has $20-30 trillion worth of room before difficulty sets in.

People will fly off the handle at that (mainly Austrians and Chicagoans), but they don’t seem to comprehend reality: the unparalleled demand, the importance of competitive context in currency wars, as well as the political reality that the US as well as their allies (capitalism is collusion) will use all their political and probably military tools to postpone the monetary/political/historical revolution which is fundamentally implied by the end of dollar dominance.

And there’s even more advantages, because bankers are not as dumb as you think.

First of all: duh, they aren’t going to inject it overnight. Did they inject their $4 (or $8) trillion since 2008 overnight? Of course not – the US colluded with other G20 nations for over a decade so that the QE machine could keep going “brrrrrrr” – just at different nodes, as Prins’ books an my series related. The Fed works with other G20 central banks, it must be recognised – nationalism does not supersede a class analysis.

Secondly, it’s crucial to recall that the global 1% forced first Japan then the Eurozone (the biggest competitors of the US, at least until the 2008 crisis & response allowed China to rise so high) to take on austerity, bailouts and multiple Lost Decades which made their debt-to-GDP ratios explode. So this bringing down of the competition is only giving US Treasuries more leeway and power. Modern capitalism IS always international collusion – this didn’t start in 2008.

Of all the major Western economies only Germany and South Korea have good debt-to-GDP ratios, but Washington the global 1% have simple solutions to force them to increase their debt in order to protect THEIR dollar: Korean reunification, and an end to German strangulation of the Eurozone. If you don’t think they would force to protect THEIR dollar, then you fatally overrate the power of nationalism.

This 1%er collusion is what so many good commentators just can’t see because they reject the class struggle. This is why they are rather absurdly expecting to use only yuan – or maybe euro or yen or loonies – by next Tuesday. The reality is that a socialist victory against predatory capitalists is long, hard and unyielding – this provides great inspiration and creativity when accepted. It does hurt your job opportunities in journalism, though. But many journalists and analysts are happy with just complaining.

So the corona bailouts are NOT going to end global dollar dominance, for all the reasons I’ve listed.

QE provokes inflation, but do you understand inflation? I mean, REALLY?

Corona’s “Great Lockdown” is sure to provoke falls in subservient currencies, but it won’t cause the dollar to double in value, either. That won’t be permitted:

A weak dollar hurts the average American but it certainly helps the sectors of society supported by the 1%: export-driven corporations, debtors (banks) and landlords (rentier exploiters). I explained this in my “bankocracy” series – Part 5: Understanding the West’s obsession with inflation. The 1% only cares about inflation which hurts their investments – they could not care less about rises in the price of bread, metro tokens, rent, etc. This is precisely why the MSM keeps saying how inflation is low… when 99% of their readers think, “No it isn’t.”

Due to this widespread misunderstanding/misinformation regarding inflation, many commentators confuse a rise in domestic prices for key goods with the international strength of the dollar. The former is a domestic concern – domestic inflation will be a result of money-printing. Domestically the dollar has lost an estimated 80% of purchasing power since Nixon went off the gold standard. However, the latter is an international concern and – while no one stays at the top of the hill forever – the US dollar is (of course!) protecting and re-protecting itself via international 1%er collusion to stay there as long as possible regardless of the effect on the average US consumer. What “1%er patriotism” are you talking about, and in the age of globalisation, too?!

Yes, rents and food will go up: No, the dollar will not stop being the international reserve currency. Yes, because you won’t openly support socialism you suffer under a bundle of unjust contradictions and cognitive dissonances.

Again, a class analysis provides a fuller explanation of corona-related high finance machinations than does an analysis based around mere nationalism.

But many of you older readers can, sadly, take this to your graves: the dollar’s dominance is unquestioned and will be defended by the international 1%, just as it has been since 2008, and just as it has been since it ascended the bloody capitalist heap. The 1% has never known eras, epochs, patriotisms, etc., and certainly not since the rise of industrial capitalism.

The problem is not QE, nor is it the “dollar system” – it is the entire system of values encapsulated by “capitalism-imperialism” and undoubtedly in “capitalism with Western characteristics”.

You can find the odd article like Pandemic proves there is only one world reserve currency, but this article gave the real reasons why; only a socialist microscope can reveal the core economic truth.

I could be wrong – and so could that article – about 20-30 more years of dollar dominance. Maybe the corona overreaction will set off a Great Depression so unmanageable that a socialist revolution occurs quite soon? That’s the only possible way the dollar is dethroned earlier.

(Of course, according to logic, any uprising which is not openly pro-socialist – and is thus pro-capitalist – cannot be a “revolution” at all. The development of post-corona “coups” would produce regimes which would – at best – still certainly collaborate with the dollar for national benefit.)

The West has no solution – wants no solution – wants only more of all this capitalist-imperialist chaos for the 99%… and thus corona immediately kicked off the “solution” of QE Infinity. No Western nation’s 1% is going to stop colluding to make that continue.

So keep your yuan under your mattress – infinity won’t end next Tuesday. I hope you find this article useful in your leftist struggle!

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Corona contrarianism? How about some corona common sense? Here is my list of articles published regarding the corona crisis, and I hope you will find them useful in your leftist struggle!

Capitalist-imperialist West stays home over corona – they grew a conscience? – March 22, 2020

Corona meds in every pot & a People’s QE: the Trumpian populism they hoped for? – March 23, 2020

A day’s diary from a US CEO during the Corona crisis (satire) March 23, 2020

MSNBC: Chicago price gouging up 9,000% & the sports-journalization of US media – March 25, 2020

Tough times need vanguard parties – are ‘social media users’ the West’s? – March 26, 2020

If Germany rejects Corona bonds they must quit the Eurozone – March 30, 2020

Landlord class: Waive or donate rent-profits now or fear the Cultural Revolution – March 31, 2020

Corona repeating 9/11 & Y2K hysterias? Both saw huge economic overreactions – April 1, 2020

(A Soviet?) Superman: Red Son – the new socialist film to watch on lockdown – April 2, 2020

Corona rewrites capitalist bust-chronology & proves: It’s the nation-state, stupid – April 3, 2020

Condensing the data leaves no doubt: Fear corona-economy more than the virus – April 5, 2020

‘We’re Going Wrong’: The West’s middling, middle-class corona response – April 10, 2020

Why does the UK have an ‘army’ of volunteers but the US has a shortage? – April 12, 2020

No buybacks allowed or dared? Then wave goodbye to Western stock market gains – April 13, 2020

Pity the lives of post-corona Millennials… if they don’t openly push socialism – April 14, 2020

Ramin Mazaheri is the chief correspondent in Paris for Press TV and has lived in France since 2009. He has been a daily newspaper reporter in the US, and has reported from Iran, Cuba, Egypt, Tunisia, South Korea and elsewhere. He is the author of the books ‘I’ll Ruin Everything You Are: Ending Western Propaganda on Red China’ and the upcoming ‘Socialism’s Ignored Success: Iranian Islamic Socialism’.

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