Recent events have become too obvious to ignore in the context of the ongoing covert war between the Alliance and the Deep State. Right after what we believe as an electromagnetic attack on Ukrainian arms and ammunition depot, Crimea plunged into a day of terror when “face masked terrorists” stormed a public school in Crimea, which even Putin later on acknowledged as an individual unable to adjust to “globalization” – a generic term which may apply to economic, geopolitics and terror.
Nevertheless, what used to be mere rumors prior to 2012, when the world “as we knew it” was ending, are now fast becoming a reality. Russia and a number of its allies are already shedding much of their US-denominated bonds, and is opening its SWIFT alternative to foreign banks.
Foreign banks will soon be able to become part of Russia’s money transfer network which serves as an alternative to the traditional SWIFT (Society for Worldwide Interbank Financial Telecommunication) system.
“Non-residents will start connecting to us this year. People are already turning to us,” said First Deputy Governor of the Central Bank of Russia Olga Skorobogatova. Earlier, the official said that by using the alternative payment system foreign firms would be able to do business with sanctioned Russian companies.
As of September, 416 Russian companies have joined the System for Transfer of Financial Messages (SPFS), including the Russian Federal Treasury and large state corporations including Gazprom Neft, Rosneft, and others, the Central Bank said.
The Central Bank of Russia has continued getting rid of US Treasury bonds in August. The share of Russian investments in American debt is getting close to zero.
Russian investments in US securities as of August have fallen to just $14 billion. Back in 2011, Russia was one of the largest holders of US debt with a $180 billion investment.
The reason is not only about politics and US sanctions against Russia, a broker at Otkritie bank Timur Nigmatullin told RIA Novosti. The US Federal Reserve is hiking interest rates, which makes American bonds cheaper, he said. “Russia has almost dropped out of the list of holders of US government debt, being the 54th largest holder.”
“A further sale of US Treasury bonds by Russia will most likely be compensated by buying gold and opening short-term deposits at banks,” he said. The share of precious metals in the country’s foreign reserves has reached a record 18 percent, closely approaching the share of dollar investments.
The largest investors in US debt, China and Japan, have also cut their holdings. Chinese holdings of US sovereign debt dropped to $1.165 trillion in August, from $1.171 trillion in July, marking the third consecutive month of declines. Japan has slashed its holdings of US securities to $1.029 trillion in August, the lowest since October 2011.
The reason for holding money in US bonds is global trade, which is still dominated by the dollar, director of macroeconomic analysis at Expert RA Anton Tabah told Izvestia daily. So, countries are forced to have a lot of dollars in cash, and US bonds are the best option for that.
India and Turkey have followed Russia’s lead. Turkey has dropped out of the top-30 list of holders of American debt, while India has been liquidating its investment for five consecutive months to $140 billion in August.
The RIC Alliance Russia, Iran and China are all defying sanctions imposed upon them by the US Deep State. China has halted its purchase of US LNG, some of which are actually sourced from Russian LNG producers. Iran is also doubling down the US sanction before it begins by sending a “huge armada of oil tankers” to China’s northeast port of Dalian.
Huge Iranian oil armada heads to China before US sanctions kick in
An unprecedented volume of Iranian crude oil is set to arrive at China’s northeast port of Dalian this month and in early November before US sanctions on Iran take effect.
More than 20 million barrels of oil have been shipped to Dalian by the National Iranian Tanker Company (NITC), Reuters reports, citing an unnamed Iranian shipping source.
“As our leaders have said, it will be impossible to stop Iran from selling its oil,” the source said, adding: “We have various ways of selling our oil and when the tankers reach Dalian, we will decide whether to sell it to other buyers or to China.”
Russia & China preparing to ditch dollar for national currencies in trade – top official
Russia’s Ministry of Economic Development said on Thursday that Moscow and Beijing are working on an inter-governmental agreement to boost the use of the ruble and yuan in mutual trade settlements.
India offloading US Treasuries to support national currency & buy gold
The Reserve Bank of India (RBI) is cutting down on its holding of US Treasuries, joining a number of countries which have been dumping US debt to bolster domestic economies.
The country’s share of US sovereign debt saw a gradual decline from $157 billion in March to $140 billion as of the end of August, according to the latest US Treasury report. RBI needed US dollars to sell in the market to stop the steep slide of its currency, the rupee. The bank has sold foreign currencies worth $18.6 billion in the spot market since April to rein the value of the rupee.
Europe is also now playing along with the RIC Alliance and is actively courting the ASEAN Community in a highly coordinated move to defeat the US-based Nazis. Both Germany and France are expressing their approval of the entry of Russian gas into the EU.
In a related news,
‘For the first time since 1986, Hungary’s central bank is buying gold bullion – a lot of gold bullion.
The Eastern-European country announced that it had boosted its gold reserves ten-fold, up to 31.5 tons. It not only dramatically increased its reserves but also repatriated the gold from the Bank of England to Budapest due to concerns about “financial stability”.
Central banks in Europe are diversifying into gold or moving to repatriate and take “possession in country.”
Hungary and Poland are the most recent central banks to do this but they follow in the footsteps of Austria, Netherlands and the powerful German Bundesbank all of which have been repatriating their gold from the Bank of England and the Federal Reserve in recent months and years. “
We don’t believe that this is still the same old game being played here, but a reconfiguration of the rules of engagement that will end the grossly one-sided EU-Asia economic cooperation. The Deep State could play the same two-faced engagement with Asia, but it doesn’t mean that it could just throw its weight without any form of resistance. In fact, the current situation has caused Jacob Rothschild some worries.
Jacob Rothschild has voiced concern about the global financial system that was established after WWII. The billionaire banker points to the US-China trade war and eurozone crisis as the key problems putting economic order at risk.
“In 9/11 and in the 2008 financial crisis, the powers of the world worked together with a common approach. Co-operation today is proving much more difficult. This puts at risk the post-war economic and security order… “In the circumstances our policy is to maintain our limited exposure to quoted equities and to enter into new commitments with great caution,” Rothschild warned in his investment trust’s half-year results commentary.
The Rothschild Group has been found in violation of anti-money laundering regulations by Switzerland financial regulators in August of this year. This violation occurred sometime in 2011, among other violations committed by Rothschild affiliated banks, which led to the mass resignations of financial CEOs worldwide in 2012.
Switzerland’s financial regulator has accused Rothschild Bank AG and its trust subsidiary of violating anti-money laundering law in relation to 1MDB, the troubled Malaysian sovereign wealth fund.
According to the regulator, both Rothschild Bank AG and Rothschild Trust AG failed to check where assets from a client came from. The firms reportedly disregarded signs that the funds could be connected to money-laundering and took the money anyway. The companies run by the Rothschild family are also accused of reporting on the issue too late.
These financial attacks are coupled with the acoustic threat of a fully tested hypersonic MARV missile system, among other still undisclosed highly advanced modern warfare.
It is under this situation that the Deep State is initiating another round of geo-economic extortion. Fortunately for Saudi Arabia, it finds support from Putin himself, when he said,
Here, people say that a murder happened in Istanbul, but no steps are taken. People need to figure out a single approach to these kinds of problems… Why do we need to take some steps towards the deterioration of our relations if we don’t understand what is happening? But if someone understands and someone believes that the murder occurred, then I hope that some evidence will be provided…”
Putin’s statement is obviously with the foreknowledge that it wasn’t the Saudis, but some “rogue elements” of the CIA, who were actually involved in the disappearance and murder of Kashoggi for the purpose of extortion.
The Saudi’s foreign minister has already apologized for the “terrible mistake,” but has not made any commitment as to when the body be returned to the Kashoggi family. Earlier reports said that it’s been diluted already with acid.
Meanwhile, in an unprecedented move, the King of Jordan Abdullah II has announced that the leased land in the border of Jordan and Israel will be reintegrated back to the country.
Jordan’s King Abdullah II announced on Sunday that Jordan has chosen to nix two annexes of the 1994 peace treaty with Israel, ending the Israeli lease of Baqura/Naharayim and Al-Ghamr/Zofar territories.
“Baqura and Ghamr are Jordanian territory and will remain Jordanian, and we exercise full sovereignty over our land,” the King said, as quoted by the state-owned Jordan News Agency (Petra).
This is just one of the immediate effects of the S-300 Russian SAM system installation in Syria, which effectively grounded Israeli Air Force after it caused the deaths of 15 surveillance plane crews last September.
All of the above leads the outgoing Deep State Ambassador to the UN Nikki Haley to quip,
Russia will “never be America’s friend.” Moscow can try to behave “like a regular country,” but the US will “slap them when we need to…”
While our eyes may be fixed on the Middle East most of the time, the battle for the control of the Arctic has just started. Already, Russia has the edge, but Europeans are beginning to realize the strategic importance of deterring Russia from gaining more economic advantage once its backdoor is fully utilized.
What this means is, most of the gravity of the global economy is now shifting away from the dark shadows of the Deep State, as a direct consequence of its failure to develop the entire globe for mutual prosperity, which has been the supposed rationale of why countries joined the United Nations in the aftermath of the Second World War – a Vatican banker’s war meant to steal Asian historical assets.