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China Daily: "Western Sanctions Will Make Moscow Back The Chinese Yuan Against The Dollar"
Op-Ed posted in China Daily
West's Antics Pushing Russia closer to China
The recent NATO summit in Wales, held against the background of the armed conflict in Ukraine, has brought back the Cold War atmosphere to Europe. NATO's partnership with Russia remains formally suspended. In fact, NATO is treating Russia more as an adversary than a partner.
The alliance is setting up a "Rapid Reaction Force" to deal with emergencies on Europe's eastern flank. The alliance's military infrastructure is moving toward that exposed flank, and closer to Russia's borders. NATO forces will now spend more time exercising in the east, and their presence there will visibly grow. NATO-leaning Ukraine, which the alliance alleges is an object of "Russian aggression", has been promised financial and military support.
The Ukraine crisis is not just about Eastern Europe, it is also about the world order. The Kremlin is seeking Washington's recognition of what it regards as its core national security interest: keeping Ukraine as a buffer zone between Russia and the West, particularly NATO. Washington, on principle, denies Moscow this "imperial privilege", and insists on the freedom of all countries, including Ukraine, to choose alliances and affiliations.
The stakes are high. Should Russia be rolled back in Ukraine, not only will its international position materially suffer, but also the power of the Kremlin inside the country might be dangerously undermined. On the other hand, if the US were to eventually accept Russia's demand for a "zone of comfort" along its borders, Washington's credibility as the global dominant power, the norm-setter and arbiter will suffer.
The Shanghai Cooperation Organization, of course, is no military alliance, and even less a rival of NATO. Its member states, however, are closely watching the US-Russian match being played out at the western end on the great Eurasian continent. Some, like the Central Asian states, are essentially ducking, hedging, or running for cover. China, which seeks to defend its own core interests in East Asia and the Western Pacific, looks at the current Russian-American competition through the prism of its own relations with Washington and Moscow.
China has a very important relationship to keep with the US. Playing a long game, Beijing usually avoids direct collisions with Washington, and means to profit from the US-initiated globalization to the fullest extent possible. Like Russia, however, China would also want to carve out a comfort zone for itself along its eastern borders and shores, and, like Russia again, it faces the reality of the US' physical presence and US-led alliances there. What Washington is now doing in an effort to contain Moscow in Eastern Europe provides important information to Beijing in East Asia.
There is more to Beijing's reaction than just watching and drawing conclusions. The apparently long-term rupture of Russia's relations with the West offers an opportunity to the Chinese leadership to enhance its already close relationship with the Kremlin and thus turn the global geopolitical balance in its favor - not unlike former US president Richard Nixon and former secretary of state Henry Kissinger who reached out to Chairman Mao Zedong in 1972. The Russians, angry with Washington, are now more amenable to giving China wider access to their energy riches and their advanced military technology. The Western sanctions pushing Russia out of the international financial system are also making Moscow more ready and willing to back the Chinese yuan against the US dollar.
A Sino-Russian military alliance against the US is still a rather long shot. Yet the two countries' political, economic and military alignment is getting thicker. An expellee from the G8, which is now back to G7, Russia is now eagerly embracing the non-West, particularly in Asia and Latin America. Within the non-West, China is unquestionably the premier power. Managing Russia will not be easy for anyone, but the country is a precious resource for China. So far, Beijing has displayed more tact in dealing with Moscow than any other major player in the world. Building on this success, it can now set its bar higher.
To a China which is rising and raising its global profile, BRICS is an asymmetrical equivalent of the G7, albeit in a very different shape and form. The SCO, to use a similar analogy, is an asymmetrical analogue to NATO, but as a political organization of continental Asia (including Russia), rather than a military bloc. The inclusion of India and Pakistan into the SCO is a logical next step. Iran, currently an observer, can follow later. Turkey, an SCO dialogue partner and a member of NATO, can become a useful link to the North Atlantic alliance.
Enhancing the SCO's security credentials and extending its reach requires a major qualitative upgrade of China's strategic thinking and diplomacy, and an even closer partnership with Russia. The SCO summit in Dushanbe, Tajikistan, will probably not see this yet, but it might become a point when the balance of Eurasia has decisively turned in China's favor. Beijing would need to thank Washington for it.
* * *
Indeed, "thanks Obama" for firmly cementing the anti-western military, monetary and political alliance.
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And the price of Chinese goods begins to rise, rise rise...........
Checks and Balances makes for a Happy MerryGoRound.
Unfortunately it's WE write the checks ( cheques ) and if you're not happy with it WE will Balance this baton on your skull.
Now that's a deal very few of us can refuse!
As much of a CUNT as Nuland is, to coin her popular phrase ' FUCK THE EU ', you cowardly LOWLIFE SCUMBAGS.
Yes, due to U.S. / European shortsighted meddling, Russia-China will become guten-tight mit each other.
That will increasingly produce a stronger and stronger gravitational pull and most of the rest of Eurasia will be drawn into that alliance, along with the rest of the BRICS.
It won't be just a monetary, economic and political alliance - but eventually will become a military alliance as well. That military dimension is already coming into formation, don't kid yourself. And it will be very, very potent in 7-10 years.
I guess this is what Hillary really meant with her "reset" button. It was actually a "war" button.
Grimaldus
The US is for self-determination of states to join alliances, but not for the self-determination of those within those states to choose who forges the alliances. That's the Russian argument in Ukraine. The government currently in Kiev was installed via a coup. It is not the will of people and especially eastern Ukrainians.
It spells out exactly the disconnect in the global order. The only people agreeing to this shit are governments. Not the people who give those governments authority. Someone else votes away your freedom.
It's always been this way since WWI. Especially in Eastern Europe. This global order is most certainly anti-freedom
"Washington, on principle, denies Moscow this "imperial privilege", and insists on the freedom of all countries, including Ukraine, to choose alliances and affiliations".... they didn't finish the sentence.....-- so long as those alliances and affiliations agree with Washington. If they don't, we'll engineer a coup to overthrow a democratically elected government and impose one of our choosing. After all, we represent 'American exceptionalism', and if you don't respect that, we'll drop bombs in your back yard until you do.
I'm cheering for Putin, even though that likely means I will be impoverished if he succeeds.
Oh well, at least Putin doesn't lie his face off like the Zionist psychopaths. Bird Flu, haha, that was a good one.
Ho Lee Dump Ling!
I feel sorry for the Dollar. With the Fed forced to weaken it so the massive deficit is paid bakc in weaker, cheaper dollars ... and the Russians, Chinese and many other ocuntries working on avoiding the dollar ... it's very worrisome. Might wake up on e morning and find my dollars are worth 40% less ?!
This must be the 'Pivot to Asia' Obama was hoping for.
When the history books are written which explain how Cold War II began, they will record that it was caused by Russia and Putin resulting from behaviour in the Ukraine and elsewhere whereby Putin attempted to re-create USSR II by re-annexing important old Soviet satellites.
This will be the first Big Lie of the 21st century.
Anybody paying attention already knows that Cold War II is not a consequence of Russian behaviour but a planned and deliberate outcome of Western foreign policy behaviour, driven from Washington and its misguided acolytes in Britain and Western/Eastern Europe. All of whom want to isolate Russia for the minimum purposes of weakening its economy, overthrowing Putin and neutralising it on the global stage before they move on and face the other manufactured enemy: China.
None of the Western nation policy actions being taken are remotely in the interests of their respective populations. Far from it. They are dragging the world into economic disintegration and WWIII.
And just like WWI, it will be the end of empires. Especially ours.
It is more accurately called 'GAS WARS'.
Syria, Libya, Georgia, and Ukraine all have a common denominator.
In the year of their respective invasions by Russia they were all the site of gas pipeline construction to Europe from someone other than Russia.
Er. I don't recall Russia invading Syria and Libya. Nor Ukraine come to that.
Given its track record against people of color how come the USA thinks that it can assume a global leadership position again ?
http://www.youtube.com/watch?v=DtcDTV-Bxf4
How serious is an alliance with a currency that is itself pegged to the US Dollar?
The Chinese will need to truely 'float' their currency for any such approaches to make sense.
RE:
But wouldn't an economic alliance essentially necessitate a military alliance? How can you have one without the other?
Nazi Germany and Norway...
China: Showing the world how to play both sides of the chessboard; like a boss
Definition of Hubris: ratifying a sovereignty eviscerating agreement with a three decade expiry date when your 'majority' (based on ~26% approval from the eligible electorate) mandate is to be tested in an election NEXT year.
"And we cannot be effective at major economic matters any longer unless we work with our economic partners around the world and work with them closely and intimately. That is essential. I know some people don't like it. It is a loss of National Sovereignty but it is a simple reality. It is a simple reality."
- Canuckian PM Stephen Harper (You have to admit that he's doing his level best to realize his 'simple reality')
In light of these sentiments/events for Canada I suggest,
A Modest FIPA Proposal:
Tired of having to go through all the hard work of actually producing a good or performing a service to accumulate your wealth? Or maybe your company’s ‘worth every penny’ CEO wearies of endlessly consulting with democratically elected governments constantly legislating that your profitable but ubiquitously polluting industry be responsible for cleaning up this, and denying it permits to externalize that?
Well relax, FIPA has your business model covered. Now what were once egregiously irritating and expensive setbacks at the hands of some godforsaken backwater’s dirt-munching treehugger politician/judge (alleging they’re imposing some ridiculous ‘mandate from the masses’) will become FIPA levers at your disposal. Populist rulings against your company now can be employed to catapult your balance sheet deep into the black later, perhaps even without your labour ever having to turn a shovel! Play your cards right and to make your bundle you won’t even need employees at all anymore, save a few connected international lawyers and your own good eye for an opportunity.
Nowadays this is where the big money lies: in proposing grossly environmentally/financially destructive start-ups that you have no real intention of ever bringing to fruition (see, you have a conscience after all! Who knew?). Simply go through the motions, make all the initial calls and then, once the purposefully loathsome plan runs up against the inevitable brick wall of public outrage, as you so altruistically intended, you proceed to make your case of woefully oppressed capital before your fine group of friends at an inscrutably opaque FIPA tribunal; friends who have been handpicked to ‘hear you out’. True, they are answerable to no other beings on the planet, perhaps excepting those who worship Mammon; but, as luck (lol) would have it, that is just like you! Note: it behooves you to bear in mind their support when it is your turn on the judges’ side of the table; Moo.
So does it matter that three quarters or more of the affected nation’s population don’t want you to open up shop in their country? Does it matter that they have had populist legal checks in place for decades in order to balance industry with sustainability and responsibility? Heck no! In fact, so long as someone representing them signed a FIPA sometime somewhere at some point, the more the people of the targeted nation are against your repulsive idea the better because in turn that means that in all likelihood there will be vast reams of regulations and legalities making it ever so difficult for your company to turn an unmitigated profit at the expense of everyone and everything else!
So let it be 100 percent of the troglodyte homunculi against you! Be bold: design your business plan to target the destruction of a sensitive ecosystem of some endangered frou-frou that is protected by their precious constitution. In fact, the more outrageously horrific the damage to be caused by your 'ruse' the better. It may seem counter-intuitive, but greater public resistance will actually serve to increase your bottom line, thanks to your colleagues at FIPA’s unelected, unaccountable, and otherwise inscrutable tribunals composed of your partners and peers.
How? Because, damnit, you could have made that money, if only that population of self interested citizenry had allowed you to externalize enough of the costs for you to easily extract the wealth you so richly deserve. Really, it’s their own fault for electing representatives that refuse to recognize just how far beyond regulation you really are, and for such insolent transgressions you and your FIPA friends are entitled to hold their entire economy hostage until the selfish population pays you whatever amount it is you and your friends feel they owe you.
You can’t lose, but you can’t win if you don’t play.
Don’t believe me my skeevy-hearted, avaricious little friend? Such opportunities sound too good to be true to such a high personage as yourself in possession of an indubitably superior business acumen? Well, quit being so cynical; get off your spotty behind and start pretending like you’re actually trying to do something. If it doesn’t pay out the first time, fine; try and try again. Indeud, if your team is slick enough all you will ever really risk is the legal fees, and the return on a single tribunal ruling in your favour could cover such costs for a lifetime of litigation. Heck, who knows? You may even end up goading some of your more ignorant, or otherwise pocketed, ‘authorities having jurisdiction’ into accepting what was previously unacceptable, so allowing you to proceed with your unconscionable but immensely profitable enterprise; it’s win-win!
Like I have said before, China should be careful what it wishes for. Were the scenario laid out in this article were to become reality there would be a global economic temblor.
If the US dollar is unseated by the Yuan:
The US would see hyperinflation that would destroy any residual ability to purchase Chinese, European and Russian goods. Driving the would into recession.
China would see it's exporting advantage dry up in a matter of seconds due to the giant increase in the value of the Yuan. If they try quantitative easing to limit this growth it would undermine the Yuan as a global alternative to the Dollar... a loose loose for China.
Russia would face economic Armageddon because the global economic shock that would inevitably result from such a re balancing of global currencies. The value of gas exports to Europe would be substantially lower due to the downward pressure on prices of primary goods a deep recession always brings in.
(Mixed metaphor warning...)
That is not to say, many times in the past leaders have cut off their noses to spite their faces, and that it will not happen again.
Ah yes, the good old 'America: The only game in town' chestnut.
RE: If the US dollar is unseated by the Yuan:
The US would see hyperinflation that would destroy any residual ability to purchase Chinese, European and Russian goods. Driving the would (sic) into recession.
Wait, if the dollar is unseated by the yuan, doesn't that imply that over one billion (to the US' ~310 million) people will suddenly find they have a currency in hand that is (relatively) worth something more than it used-to-was on a global scale? That's quite a market to sell to; not to mention the advantage of having a well-developed (relatively) local manufacturing industry to meet the new demand, and lower shipping costs even further.
That doesn't sound very 'loose-loose' (sic) for China to me.
China has been exploring brand new markets for years.
It's very active in Africa, for example. It builds roads and infrastructure; sometimes, for free in exchange for oil and resources.
It can sell its cheap products there.
Indeud, a la
China Safari: On the Trail of Beijing's Expansion in Africa
Reserve currency is a place for exporters to dump gains outside their currency. China would have dump on itself....not going to happen.
They are stuck now because rising US rates will hurt face value, so they are looking for new places to dump their trade gains. Nothing more
DOLLAR DEFENDER INFOGRAPHIC:http://blog.chinadaily.com.cn/blog-1453444-22570.html