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De-Dollarization Complete: Iran Abandons US Dollar In Foreign Trade
Since last May (and likely long before) when the topic of "de-dollarization" was first uttered in official circles (and not just tin-foil-hat-wearing blogs), the rest of the world (un-isolated as they are) has been warming to the idea that perhaps - just perhaps - it is time to de-dollarize (more or less depending on the despotic region in question). From currency swap agreements to bi-lateral trade agreements to selling US Treasuries and greatly rotating USD reserves into gold, the world's nations (small and large) appear less and less comfortable holdings dollars in this tempestuous world. Among the supporters of that first "de-dollarization" meeting were China and Iran and while the former continues to work down its exposure, the latter - Iran, according to Tasnim news agency, has almost entirely eliminated USDollars from its reserves and is no longer using dollars in foreign trade.
Nothing lasts forever...
As Bloomberg reports, Iran is no longer using US Dollars in foreign trade
“In trade exchanges with foreign countries, Iran uses other currencies including Chinese yuan, euro, Turkish lira, Russian ruble and South Korean Won,” Gholamali Kamyab, deputy head of the Central Bank of Iran, tells Tasnim news agency.
Iran to “soon” sign bilateral currency swap agreements with some countries, Kamyab says, without naming countries
As a reminder, The Central Bank of Iran said back in June 2014 it had “almost rid” U.S. dollar from forex reserves, replacing it with U.A.E. dirham... it appears to have completed that transition.
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De-dollarization complete... and all this as the US tries to broker anti-nuclear accords and delays sanctions...
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As we detailed previously, this move should not be a great surprise to any foreign nation.
America’s global economic dominance has been declining since 1998, well before the Global Financial Crisis. A large part of this decline has actually had little to do with the actions of the US but rather with the unraveling of a century’s long economic anomaly. China has begun to return to the position in the global economy it occupied for millenia before the industrial revolution. Just as the dollar emerged to global reserve currency status as its economic might grew, so the chart below suggests the increasing push for de-dollarization across the 'rest of the isolated world' may be a smart bet...
As Deutsche Bank's Jim Reid explains,
In 1950 China’s share of the world’s population was 29%, its share of world economic output (on a PPP basis) was about 5% (Figure 98). By contrast the US was almost the reverse, with 8% of the world’s population the US commanded 28% of its economic output.
By 2008, China’s huge, centuries-long economic underperformance was well down the path of being overcome (Figure 97).
Based on current trends China’s economy will overtake America’s in purchasing power terms within the next few years. The US is now no longer the world’s sole economic superpower and indeed its share of world output (on a PPP basis) has slipped below the 20% level which we have seen was a useful sign historically of a single dominant economic superpower. In economic terms we already live in a bipolar world. Between them the US and China today control over a third of world output (on a PPP basis).
However as we have already highlighted, the relative size of a nation’s economy is not the only determinant of superpower status. There is a “geopolitical” multiplier that must be accounted for which can allow nations to outperform or underperform their economic power on the global geopolitical stage. We have discussed already how first the unwillingness of the US to engage with the rest of the world before WWII meant that on the world stage the US was not a superpower inspite of its huge economic advantage, and second how the ability and willingness of the USSR to sacrifice other goals in an effort to secure its superpower status allowed it to compete with the US for geopolitical power despite its much smaller economy. Looking at the world today it could be argued that the US continues to enjoy an outsized influence compared to the relative size of its economy, whilst geopolitically China underperforms its economy. To use the term we have developed through this piece, the US has a geopolitical multiplier greater then 1, whilst China’s is less than 1. Why?
On the US side, almost a century of economic dominance and half a century of superpower status has left its impression on the world. Power leaves a legacy. First the USA’s “soft power” remains largely unrivalled - US culture is ubiquitous (think McDonald’s, Hollywood and Ivy League universities), the biggest US businesses are global giants and America’s list of allies is unparalleled. Second the US President continues to carry the title of “leader of the free world” and America has remained committed to defending this world. Although more recently questions have begun to be asked (more later), the US has remained the only nation willing to lead intervention in an effort to support this “free world” order and its levels of military spending continues to dwarf that of the rest of the world. US military spending accounts for over 35% of the world total and her Allies make up another 25%.
In terms of Chinese geopolitical underperformance there are a number of plausible reasons why China continues to underperform its economy on the global stage. First and foremost is its list of priorities. China remains committed to domestic growth above all other concerns as, despite its recent progress, millions of China’s citizens continue to live in poverty. Thus so far it has been unwilling to sacrifice economic growth on the altar of global power. This is probably best reflected in the relative size of its military budget which in dollar terms is less than a third the size of Americas. Second China has not got the same level of soft power that the US wields. Chinese-style communism has not had the seductive draw that Soviet communism had and to date the rise of China has generally scared its neighbors rather then made allies of them. These factors probably help explain why in a geopolitical sense the US has by and large appeared to remain the world’s sole superpower and so, using the model of superpower dominance we have discussed, helps explain why global geopolitical tensions had remained relatively low, at least before the global financial crisis.
However there is a case to be made that this situation has changed in the past five or so years. Not only has China’s economy continued to grow far faster than America’s, perhaps more importantly it can be argued that the USA’s geopolitical multiplier has begun to fall, reducing the dominance of the US on the world stage and moving the world towards the type of balanced division of geopolitical power it has not seen since the end of the Cold War. If this is the case then it could be that the world is in the midst of a structural, not temporary, increase in geopolitical tensions.
Why do we suggest that the USA’s geopolitical multiplier, its ability to turn relative economic strength into geopolitical power, might be falling? Whilst there are many reasons why this might be the case, three stand out. First, since the GFC the US (and the West in general) has lost confidence. The apparent failure of laissez faire economics that the GFC represented combined with the USA’s weak economic recovery has left America less sure then it has been in at least a generation of its free market, democratic national model. As this uncertainty has grown, so America’s willingness to argue that the rest of the world should follow America’s model has waned. Second the Afghanistan and in particular the Iraq War have left the US far less willing to intervene across the world. One of the major lessons that the US seems to have taken away from the Iraq war is that it cannot solve all of the world’s problems and in fact will often make them worse. Third, the rise of intractable partisan politics in the US has left the American people with ever less faith in their government.
The net result of these changes in sentiment of the US people and its government has been the diminishment of its global geopolitical dominance. The events of the past 5+ years have underlined this. Looking at the four major geopolitical issues of this period we raised earlier – the outcome of the Arab Spring (most notably in Syria), the rise of the Islamic State, Russia’s actions in Ukraine and China’s regional maritime muscle flexing – the US has to a large extent been shown to be ineffective. President Obama walked away from his “red line” over the Syrian government’s use of chemical weapons. The US has ruled out significant intervention in Northern Iraq against the Islamic State.
America has been unable to restrain Pro-Russian action in Ukraine and took a long time (and the impetus of a tragic civilian airplane disaster) to persuade her allies to bring in what would generally be considered a “first response” to such a situation - economic sanctions. And so far the US has had no strategic response to China’s actions in the East and South China seas. Importantly these policy choices don’t necessarily just reflect the choice of the current Administration but rather they reflect the mood of the US people. In Pew’s 2013 poll on America’s Place in the World, a majority (52%) agreed that “the US should mind its own business internationally and let other countries get along the best they can on their own”. This percentage compares to a read of 20% in 1964, 41% in 1995 and 30% in 2002.
The geopolitical consequences of the diminishment of US global dominance
Each of these events has shown America’s unwillingness to take strong foreign policy action and certainly underlined its unwillingness to use force. America’s allies and enemies have looked on and taken note. America’s geopolitical multiplier has declined even as its relative economic strength has waned and the US has slipped backwards towards the rest of the pack of major world powers in terms of relative geopolitical power.
Throughout this piece we have looked to see what we can learn from history in trying to understand changes in the level of structural geopolitical tension in the world. We have in general argued that the broad sweep of world history suggests that the major driver of significant structural change in global levels of geopolitical tension has been the relative rise and fall of the world’s leading power. We have also suggested a number of important caveats to this view – chiefly that a dominant superpower only provides for structurally lower geopolitical tensions when it is itself internally stable. We have also sought to distinguish between a nation being an “economic” superpower (which we can broadly measure directly) and being a genuine “geopolitical” superpower (which we can’t). On this subject we have hypothesised that the level of a nations geopolitical power can roughly be estimated multiplying its relative economic power by a “geopolitical multiplier” which reflects that nations ability to amass and project force, its willingness to intervene in the affairs of the world and the extent of its “soft power”.
Given this analysis it strikes us that today we are in the midst of an extremely rare historical event – the relative decline of a world superpower. US global geopolitical dominance is on the wane – driven on the one hand by the historic rise of China from its disproportionate lows and on the other to a host of internal US issues, from a crisis of American confidence in the core of the US economic model to general war weariness. This is not to say that America’s position in the global system is on the brink of collapse. Far from it. The US will remain the greater of just two great powers for the foreseeable future as its “geopolitical multiplier”, boosted by its deeply embedded soft power and continuing commitment to the “free world” order, allows it to outperform its relative economic power. As America’s current Defence Secretary, Chuck Hagel, said earlier this year, “We (the USA) do not engage in the world because we are a great nation. Rather, we are a great nation because we engage in the world.” Nevertheless the US is losing its place as the sole dominant geopolitical superpower and history suggests that during such shifts geopolitical tensions structurally increase. If this analysis is correct then the rise in the past five years, and most notably in the past year, of global geopolitical tensions may well prove not temporary but structural to the current world system and the world may continue to experience more frequent, longer lasting and more far reaching geopolitical stresses than it has in at least two decades. If this is indeed the case then markets might have to price in a higher degree of geopolitical risk in the years ahead.
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This is capitulation by Iran, not victory.
Iran is neither Russia, nor China.
This is grand standing by Iran.
Those other two have been bypassing the dollar on every large trade deal and that's what matters. Circulation via size and velocity.
China is returning to it's rightful place as the center of human civilization.
when dollars are no longer used for trade, they can assume their rightful place: being loaned for tranches of triple-A bond obligations (and other similarly good instruments) in order to lever up derivatives that are anchoring the strong global financial system
As a staunch liberal, I strongly believe this is all motivated by racism! We must force Iran to adopt our affirmative action policy.
Hmmm.
But the Grand Mufti has blue eyes;)
Good time to bring over Bibi and give our Congress an earful, oh wait....
The great what's the best shitty currency debate. I like gold personally. Silver too.
How about enriched uranium?
How many Israeli shekels is an ounce of that worth?
At Least gold cant be charged a negative interst rate Unless one considered the storage costs.
This is so weird. When has China ever been the center of civilization? Even in the times they've been the most advanced, they were isolated and reactionary. Hence, the times they were the most advanced were a long long time ago. China is trying to work to be number one in some worthless number GDP. I feel sorry for the ravaged country when all those lost lives striving will be found to be wasted for nothing.
"wasted for nothing" Au contraire, they have many empty and beautiful cities to live for, to strive for, to die for.. Mankind is a foolish breed, most doomed at birth to never truly open their eyes. For a long time I was among them and still feel for them but I am starting to harden as the shades of myopia constantly pulled down over their eyes should clue more of them in. It doesn't and that belies the truth: willful ignorance, empathy but never sympathy for that self imposed malady..
"Willful ignorance"...now that I believe. I find that most can not see what is happening around them, and if you try and point it out, they are quite adamant about telling you how they don't care. Ask them how big Kim K's butt is and they know that, ask them about the latest reality show, they know that. Ask them about some meaningless sports game, they know that. Ask them about the economy or the state of the world, they have no idea. The information is all out there to be had, with little effort, so the only thing that truly describes these folks is "willful ignorance" with a large dose of appathy thrown in for good measure.
In the late 18th century, China had the world's largest economy.
The British send a famous trade mission in the last decade of the 18th century in order to open the door to trade. The Chinese emperor said that China did not need any British goods!
Well, after a battle or two, they learned they "needed" opium.
Opium WAS to China as debt IS to US.
The chinese word for china literally means middle country because they thought they were the center of the universe. The Chinese have used the Ron Paul method of diplomacy, trade. They refused to get involved in wars and creating a global military empire.
How has global war treated the US? Does China have their military men and women coming back in body bags or having its service members with blown off limbs? What is the true cost of warfare?
The US believes it is the center of civilization as its empire crumbles begore its eyes. $18 trillion debt, fighting Muslim bogeymen, blatant corruption, growing socialism, dumbing down of the population and complete moral decay.
American arrogance will be its downfall. When it realizes it is no longer the center of the universe (militarily and economically) it will be too late. The Brits once thought they were the center of the universe. They had the world reserve currency and a global empire. The sun, at one time, never set on the british empire. Where are the Brits now?
Now we all know that's Jamaica, mon.
China has a long way to go... all those charts are based on PPP bullshit... nominal GDP, bitchez... run it like that and see what you get, China would have to double just to meet US current and, last I checked, US current isn't standing still to wait on them...
more red meat for the fifth column here... carry on, feel good about yourselves, you're "winning" lol
Take the 40% financialization out of US GDP, and its the US that has a long way to go to
catch up with China.
Judging by Putin's recent statements,pre cleared with Peking, things are about to
get interesting.
WC, what do you make of "after the election I'll have more flexibility", the training of Russian troops in the US & the colonization of the Chinese in the USSA?
I don't see a benevolent cooperation here.
Me neither.
There is no honour amongst thieves, or thieving psychopaths.Its only a matter of time
until you get doublecrossed.
The US has been led down the garden path to the woodshed, IMO.
pro tip, advanced economies are highly financialized... when China becomes an advanced economy their GDP contributing sectors will look similar to EU's and US'
so, no, that dog won't hunt...
Long gas masks! they might outsource back the pollution to the West.
Who needs Bankrupt $ when you have black and yellow gold.
Iran is giving a big FUCK YOU to the usa and the zionist.
so if everyone is selling dollars why is the price rising!!
Sell low Buy high is what they are and will be doing.
We all know the USD is not backed by anything but our military might, and the smart money is already running to daddy for protection.
I love my Gold but if its not protected by the US it will be wise to hedge.
...are you one of those anti-zionists freedom browlers?
No i am a man who belives in live and let live and dont think a dollar is worth killing or dying for.
Plus, life is a hell of a lot easier, safer, cheaper, funner and interesting when everybody honestly cooperates.
"missle defense isn't really meant to protect America. It's a tool for global dominance...BMD's will provide the US with absolute freedom in using or threatening to use force in international relations (China's complaint),cementing US hegemony and make Americans masters of the world.....A version of Wilsonian idealism to be so authoritative as to be virtually immune from challenge"
- Noam Chomsky 2004 Hegemony or Survival
Chomsky has been pretty much right in all his writings going back to 1967. If you read now what he wrote then about Vietnam and what was really happening it's like reading the same playbook being used all over the world again in present day. Very prophetic.So.....
if the next administration dusts off the Raygunite playbook on "missile defense" once again heed his words above when thinking about what the real US/China realtionship is all about. The US wants and needs complete dominance around the globe and everything we're witnessing is to this end."Missile Defense" is code for we're near the end of the US playbook. Iran is just an interloper in this tale
Had you quoted anyone but Chomsky, I would agree.
then you haven't really read his work, his libertarianism is real and in the spectrum of anarchinstic while he's been portrayed by pundits as a "commie" so everyone avoids his writing. He makes libertarians look like sissies. He hasn't gotten much wrong either in the last 50 years when calling out the American .Gov and all their bullshit. Just nobody listens becasue group think has branded him a commie. LOL lots of people need to wake up and stop using that word, it's dead.
TPTB label everyone who challenges their power as evil socialists, Marxists and/or terrorists. It works pretty well on most Americans, even among those who think they know better.
yes! and it's exatly that type of group think that will thwart any real change. It's too easily manipulated by the propoganda machine and too few are immune to it. If there was to be a real revolution, the first thing to attack is the propoganda machine and the group think that is controlled by it, otherwise there'll never be enough numbers to extract real change....sounds like a total long shot fantasy the more i write this down...
Chompsky wrote a book about 9/11 and said it was not an inside job. Then a few years ago he recinded and on firther inspection it does appear to be an inside job.
I am a fan.
I actually emailed the man when he did that and he responded. Nice to see him on board.
"Then a few years ago he recinded and on firther inspection it does appear to be an inside job."
I follow developments pretty closely and have never heard that from Chomsky.
Link?
Chomsky practices what he wrote about in Manufacturing Cansent and Neccessary Illusions. He is an important author for what he doesn''t say. I donated all his books to the local library a while back.
My problem with Chomsky is his lack of critical thinking on deep events such as JFK & 9/11 -- he takes them at face value. While Chomsky sees a unified establishment that is rational, Peter Dale Scott describes a ruling class that has competing factions and is irrational. I support Scott's descriptiion and critique. Chomsky completely ignores what the reaction would be in the US public mind if they as a group understood that 3000 Americans were sacrificed for US/elite geo-political gains as opposed to the bankrupt official narrative.
that's a great point and doesn't go unnoticed for sure. No this is not in defense of him as your critique is accurate but the rational behind your point is more a function of the rigors of academic discourse. He is a highly regarded academic and the pressure of intense peer review I think curtails his desire to venture into the scope of "conspiracy". He knows full well he can't definitively answer those questions and as such a peer reviewed academic opens up his "broadside" to very real and visceral attack if he steps off the path into the subjectivity of classified operations. His real strength is in breaking down the fundamentals of power that lead to JFK's and 911's. The events themselves are too difficult to discuss inside the rigors of academic discourse without definitive proof as leverage. Think in quasi-legal terms. Instead he attacks the broader issues of power and control which are the fundamentals that lead to these events.
Not to worry, those "Classified" 28 pages of which everyone by now & their mothers knows exactly what's in them will clear the air from the False Flag of 911.
having read and posted on this site now for almost 5 years now under various alias's, it's plainly obvious to anyone paying attention that most of the good ideas expressed on ZH are really for all intents and purposes "Chomsky-Lite" in expression.
I dunno. You make some great points about Chomsky but my criticism is he doesn't talk about the banks, or the nature of money, or why its monopoly issuance leads to tyranny. These are major oversights. He talks about "states."
he's proven through his activism against "state" controlled exercises in power that he can't fundamentally change the paradigm, hence all we see is what he warns about just getting worse and worse in the geopolitical theatre and the US pursuit of hegemony getting more and more overt. In the end he describes human motives and how they can be discerned through their use of language (being a linguist), banks and money are tools like guns and bombs. His descriptions of events have more to do with language, control, persuasion and how they misdirect their populace with the just the tools of language. Fundamentally if that link in the chain is broken then TPTB are pulled out by the root and the tools like money and banks are no longer theirs to exploit because the language of control is no longer effective in creating action.
For example he recently said, "the problem isn't fiat money. The problem is excess capacity." Straight out of the Keynesian playbook. "Maybe the Federal Reserve will give you some money," basically. I've read almost everything the guy's written, was one of my personal heroes in my 20s, but these are fundamental limitations that cannot be explained away by nuance. He acts as an unwitting gatekeeper leading people right back to the state they are trying to escape. At least he did for me.
He caveats the above statement with "I'm all for ending state fascism, BUT..." Problem is, people have to act NOW. And directing their energy toward the state, instead of ignoring it, is not going to work. People become paralysed.
https://www.youtube.com/watch?v=XhXgKmar5mk
I've often heard the term "gate-keeper" when it comes to Chomsky. There to lead the sheeple on a path somewhat off what the establishment tells you where to go, but making very sure those same sheeple don't wander off the path too much on issues such as 9/11.
From the evidence I've seen, gate-keeper is appropriate.
re: gatekeepers
look at this very interesting chart showing how many foundations fund popular websites, and how it limit the discussion of those sites
http://tinyurl.com/k794ohl
Could you list your aliases?
No
Most of it was drunk posting. Quit drinking
I went the other way...
Many times what you say when you are a little incapacitated is more closer to what you truly believe. It might be most revealing if we knew the aliases.
http://newsoffice.mit.edu/1992/citation-0415
You did seem awfully tuned in, for a newbie.
Trying sober now
We'll wait for you to let us know how that turns out...
Given that political "debates" are usually so totally hidebound by prejudice, I was surprised by Money Boo Boo's reply to Ignatius, in that it was rational and open-minded explanation of that point, which I had also noticed in the past.
Yes agree that we need to drop the prejudice and help add to valid ideas instead of name calling
Speaking of debates, the format of thejuicemedia is debates hosted by "journalist" Robert Foster on Rap News. This one features Noam Chomsky:
https://www.youtube.com/watch?v=j-rxe9Ayb8c
2012 - with Noam Chomsky & Anonymous [RAP NEWS X]Chomsky appears closer to the end of the report but also in an out-take at the very end where he asks "can I get a job?"
----------
On a less humorous note, the Bulletin of the Atomic Scientists decided to update the "doomsday clock" last Thursday. In 1947 it was at 7 minutes to midnight, in 1953 it was 2 minutes, in 1991 it was 17 minutes, and in 2015 it is 3 minutes to midnight due to...
tick tick tick
The Bulletin of the Atomic Scientists does not appear to include the significance of false flag attacks into their estimates. When one does, then we are probably CLOSER to striking 12!
http://thebulletin.org/press-release/press-release-it-now-3-minutes-midn...
Similarly, they don't seem to include the significant risk of the Arctic Methane Emergency...
"if laughter is a straw for a drowning man" RUSH / Ceiling Unlimited
He can only go so far, before they strip his academic privileges and job security.
At least he stands up publicly for his ideas and beliefs. Do you? Does anyone here?
Chomsky seems to have failed the litmus test regarding 9/11
My basic concern with the article above is that the relative decline world's previous dominant super-power is taking place in the overall context where Neolithic Civilization itself has peaked, and therefore, no future superpowers may ever be able to become dominant again.
In my view, the USA has been controlled by the international bankers for a Century. When one is talking about the USA, one is talking about the biggest form of organized crime, that is the military muscle to back up the best organized gang of criminals, through their globalized, Anglo-American (Zionist) Empire, that pretty well dominated everything, everywhere, as one could see simply by looking at the history of the globalized monetary system.
The difficulty with being able to bomb the shit out of Iran, in order to make another example of any country that attempts to not be dominated by the international banker's control systems, is that is seriously crossing the line from a possible "police" action, backing up the global "rule of law" of the banksters, to becoming the threat of globalized destruction of the established systems.
Indeed, the bigger picture that I perceive is that the established systems of MAD Money As Debt, backed by MAD Mutual Assured Destruction, were always MAD, while always getting worse, faster, at an exponential rate. Since civilization was always controlled by systems of lies backed by violence, in which modern states simply became more sophisticated systems of legalized lies, backed by legalized violence, the exponential growth of those sorts of social pyramid systems through the series of the rise and fall of Neolithic styles of civilization was ALREADY globalized.
The world's natural resources have ALREADY been high-graded to hell. The entire system was based on being able to strip-mine the planet's natural resources at an exponentially accelerating rate, which was able to operate through the financialization of enforced frauds. That was the wave UP that the USA rode, as the major muscle behind the international bankers international systems.
The problem with that perception of the bigger picture is that one can not imagine how any new superpower could emerge after the USA. While it is obvious that the USA is getting worse, faster, at an exponential rate, that trajectory is not going towards anything "better" possibly replacing the decline and fall of the USA. Rather, the decline and fall of the USA is the decline and fall of a globalized system, where the ability to back up lies with violence no longer has enough natural resources lefts to strip-mine anywhere to continue to enable that to make overall sense.
As Money Boo Boo wrote, Chomsky "attacks the broader issues of power and control which are the fundamentals that lead to these events." Those fundamentals are the degree of success which is possible based organized lies being able to operate robberies, primarily through the enforced frauds of the financial systems.
To the degree that Iran, et alia, are able to relatively pull out of the globalized international banker's system, that is NOT any kind of better expression of rebalancing of the globalized systems of Neolithic styles of civilization, but rather signs of the overall decline and fall of Neolithic Civilization itself, in which the USA previously was the greatest example of, as that kind of Neolithic Civilization based upon being able to back up lies with violence becoming more globalized.
In that context, the article above was typical of how Zero Hedge tends to grossly understate the "higher degree of geopolitical risk in the years ahead." The basic problem was that the ability of social systems based on backing up lies with violence to be able to dominate the world (in order to rape the planet, regardless of the longer term consequences, because nothing else within the human world could stop that from happening), is reaching the limits of being able to do that to the overall environmental ecology of a finite planet Earth.
Chomsky, of course, is well aware of those sets of facts, and has expressed his opinions regarding them. However, in my view he continues to operate as another reactionary revolutionary in that regard, which is how I also perceive his apparent deliberate ignorance, or refusal to publicly state a better position on symbolic events like those on 9/11/2001.
My basic view is that those who rightly criticize the existing systems being based on the maximum possible deceits and frauds, as demonstrated by the currently combined money/murder systems, never tend to go beyond that to propose how to better operate death controls that could back up better debt controls, in order to develop some better integrated systems of human, industrial and natural ecologies. Rather, the deeper problems are that since human societies ARE controlled by being able to back up lies with violence, and NOTHING in the short-term can stop that from continuing to happen, it is IMPOSSIBLE for those social pyramid systems of Neolithic styles of civilization to adapt to having ALREADY raped the planet to the point where the ability for those systems to grow exponentially has been exhausted.
I see nothing good following from the international bankers, which dominated the world through one means after another, such as having the American Dollar and American Military being the combined money/murder systems that could dominate the planet, failing to continue to be able to do so. After all, Iran is actually another regressive, psychotic, social pyramid system, based on backing up their own kinds of lies, with the own kinds of violence. Therefore, Iran pulling out of the US Dollar as the world's reserve currency is a symptom of the globalized systems becoming even MORE PSYCHOTICALLY INSANE.
I have always regarded Chomsky as being one of the best examples of reactionary revolutionaries. His original genius in the area of basic, scientific linguistics, became his foundation to move on through analysis of "the broader issues of power and control." However, while doing that he has deliberately eschewed making any clearer statements about the, so far, most spectacular symbol of those things, which were the events on 9/11/2001.
In that context, I thought Money Boo Boo's explanation for Chomsky's attitude makes sense. However, at the same time, since Chomsky is one of the most cited authorities of all, his behavior is an indication of the overall tragedy of intellectuals. Neolithic styles of civilization, based on being able to back up lies with violence, in order to have organized systems of lies operate robberies, has apparently run out of room to continue to do that ... Since everything regarding how our society actually runs is based on thousands of years of psychological and political habits based on being able to successfully enforce frauds, there are no good reasons to doubt that we are going to run into the walls of real limits, and bounce off of those over the edge of cliffs whose bottoms are now not possible to see ...
Iran, et alia, going through some degree of "De-Dollarization" is an indication of the long ride UP of Neolithic Civilization having peaked. There is nothing genuinely good that follows from the dominate, globalized, social pyramid systems of the international bankers, using the USA (& NATO etc.,) to enforce their frauds reaching some real limits. After all, all the alternatives are just as psychotic, if not more so, at the present time.
Theoretically, we should develop some Translithic Civilization, which integrates different systems of human, industrial and natural ecologies. However, in fact, the established systems are all based on backing up lies with violence, while any of the alleged alternatives, are merely alternative systems of backing up lies with violence, most of which are just as bad, if not worse, and all of which are still primarily based on attitudes of evil, deliberate ignorance, because that is the "practical" way to adapt to the political realities which are based on systems of lies backed by violence, having been developed at an exponential rate for thousands of years. (In my view, that is what Chomsky has been doing, and he symbolizes thereby a host of other similarly situated intellectuals.) Social and political systems based on being able, within human civilizations, be successfully able to live by backing up lies with violence HAVE CREATED PROBLEMS WHICH HAVE BEEN ASTRONOMICALLY AMPLIFIED BY PROGRESS IN SCIENCE AND TECHNOLOGY
In that context, shying aware from the plainly obvious conclusion that the events on 9/11/2001 were an inside job, false flag attack, is to shy away from facing the bigger picture, which is NOT MERELY that the real world is controlled by systems of enforced frauds, BUT ALSO, that there MUST BE SOME SYSTEMS OF DEATH CONTROL. In that regard, I find Chomsky to be another typical reactionary revolutionary, who only superficially explains "the broader issues of power and control" based on social pyramid systems, whose foundations are the ability to successfully back up lies with violence, in order to dominate the systems of robbery through which human animals live in their environment.
Those systems were ALREADY GLOBALIZED, and have ALREADY high-graded the strip-mining of the planet to hell. Therefore, the "higher degree of geopolitical risk in the years ahead" could only be UNDERSTATED, as may be routinely read on Zero Hedge, or in the writings of Chomsky.
It is my view, it is practically impossible to overstate the degree to which our society is terminally sick and insane, because of the degree to which we "successfully" operate our death control systems through the maximum possible deceits, which currently has the events on 9/11/2001 as its most spectacular symbol. Chomsky, as one of the leading Western intellectuals (demonstrated by the frequency with which he is cited) is an indication of that problem! NOT ONLY ARE THE ESTABLISHED SYSTEMS BASED ON THE MAXIMUM POSSIBLE DECEITS AND FRAUDS, BECAUSE THOSE WERE THE MOST SUCCESSFUL STRATEGIES AND TACTICS FOR THOUSANDS OF YEARS, BUT ALSO, ALL OF THE PUBLICLY SIGNIFICANT CONTROLLED OPPOSITION TO THOSE SYSTEMS STAYS WITHIN THE SAME FRAME OF REFERENCE.
That is our basic problem, as I see it, not only do the established death controls operate through the maximum possible deceits, but also, the apparent "opposition" to that continues to also stay within the same frame of reference of utter deceits regarding the issues of death controls. That makes developing any better, integrated systems of human, industrial and natural ecologies practically impossible. Instead of respecting real limits, and adapting to those, we are continuing to operate with attitudes of evil deliberate ignorance towards those limits, because everything regarding our social and political systems were based on thousands of years of successfully backing up lies with violence, including that the controlled opposition to those systems stays within that frame of reference too.
Overall, that means there is no reasonable hope for the future, and no practical political point to bother to attempt to explain the deeper nature of those problems. The probable decline and fall of the American Dollar as the global reserve currency is NOT going to be like any other in human history. The chart that Zero Hedge likes to show about the relative survival lengths of different previously dominant monetary systems shows that taking steps UP ... However, those are more probably steps DOWN.
The underlying processes were turning the world's natural resources into garbage and pollution as fast as possible. Since that had ALREADY been done, getting worse, faster, at an exponential rate, and had ALREADY been globalized, the decline and fall of the US Dollar is practically the same as the decline and fall of the globalized Neolithic Civilization, based organized lies operating robberies, having run out of room on a finite planet to continue to do that. (Moreover, any actually possible advancement would require more conscious artificial selection in some artificial environment, rather than continuing to be able to take for granted the natural environment, which was being destroyed by the human systems of artificial selection, based on lies, violence, and willful blindness towards the principles of human evolutionary ecology, within their existing environmental ecology.)
I would like to day dream that "we" may adapt to those basic changes better. However, I see no signs of that being possible, not only because the established systems are totally based upon enforced frauds, but also that all of their publicly significant controlled opposition agrees to stay within the frame of reference of those frauds ...
Sure, there are enough natural resources left to continue to strip-mine for a while, and therefore, everyone who was successfully living with the established systems, including the controlled opposition groups, could continue to live in similar ways, as long as some degree of continued strip-mining of the planet was still possible. Everyone alive today was born into those systems. The most socially successful people where those who best adapted to living inside of those systems based on backing up lies with violence, and their related attitudes of evil deliberate ignorance. Therefore, developing any better dynamic equilibria between the different systems of organized lies operating robberies is practically impossible. Instead, phenomena like Iran's "De-Dollarization" is an aspect of the psychotic breakdown of Neolithic Civilization, in that a regressive, atavistic form of Neolithic Civilization appears to be effectively resisting the previously dominant globalized systems of Neolithic Civilization.
The ONLY thing that really means is that the most dominant social psychoses, in the forms of the Western world's monetary and national security systems, are being resisted by other regressive, relatively localized, social psychoses. Meanwhile, the profound contradictions manifested through the phenomena of progress in physical sciences, WITHOUT any corresponding progress in political science, keep on getting worse faster ... developing GREATER CONTRADICTIONS INHERENT IN GLOBALIZED SYSTEMS OF ELECTRONIC MONKEY MONEY FRAUDS, BACKED BY THE THREATS OF FORCE MADE BY APES WITH ATOMIC BOMBS ...
We're fucked.
Yes, Aaronson.Jones...
that did summarize it!
Chomsky would be proud of you even if you outchomskied Chomsky himself
It will be the last one standing, or rather holding, who will suffer a 90% devaluation of dollar reserves.
And it will be pretty fast, a few weeks at max when the dollar will crash.
But what everybody should be wondering is what do they know?
Iraq is now a protectorate of America with a American puppet regime.
So this... looks a lot like a directed action.
And why not? America would love a 90% devaluation because that would wipe it’s debt away.
And wantto know something funny?
With a 90% devaluation, stockprices will explode to the upside. And guess who’s buying stocks hand over fist even at crazy PE’s.
Remember, these people are bastards but not stupid.
And for the FED for example, 4 trillion on the books of assets, if they explode to the upside, they’ll be pretty fucking powerfull!
It happened before and it will happen again. It’s called history.
And retail investors have a time horizon of a few weeks, months.
those guys... years, even decades.
And suddenly, all over the globe, they are all stepping it up.
Never think they’re stupid. They’re almost all more intelligent than us. Their problem is they work in group and groups dumb down. So whatever you’re thinking is, decide on your own and never follow the crowd because it will dumb you down.
And when?
Well, a 90% devaluation would justify a current PE of 100 To be a normal price.
A what are we seeing now? PE’s of over 100.
So it looks like everything is mostly priced in already.
When? I don’t know but I think not to long anymore because a lot of blocks have already fallen in place.
That theory worked really well in a place called Zimbabwe...
your confusing capitulation with capitalization
So we aren't giving them 12 billion anymore?
Yeah! I thought we were friends with them now?
Man...can't trust anyone anymore these days.
Sorry Haiti
Sorry Fukushima Japan!
Sorry commodity and currency trader folk!
Sorry "Middle Class" and hard working oil folk!
Sorry!
frenemies
http://www.bloombergview.com/articles/2015-01-08/iranbacked-militias-are...
Oh, "sorry King of Saudi Arabia."
Yep, sorry about that too.
Sure seems like the USA is going to get a FLOOD of competitiveness now.
Oil for a buck a barrel, copper under a dollar a pound, free rocket engines from Russia, Volvo's and Benz's up the ying yang.
who is buying any of this?
How 'bout that?...
Think this might have anything to do with the Israeli government's full court press on the Republican Congress to ratchet moar shit up on Iran to use our military to fight another front for WWIII?... And I didn't even get to what is going down right now in Lebanon, Syria and Ukraine that they want us to fight for them?!!!
Just like Saudi Arabia that USD is of significant importance if you're entitled by the U.S. taxpayer at $6 billion every year!!! Or is that $6 trillion adjusted with fresh QE???...
To the men and women in the United States military. For the U.S.S. Liberty for 9/11...
Now is your chance to "walk" away with what is left of your soul!
Or is it a functioning brain???!!!
USA, USA, USA!
usa is done.
All based on the Criminal Fraud UNITED STATES, CORP. INC. "Full faith $ Credit" of The American Peoples souls / Birth Cert which are nothing more than financial instruments / Bonds secruritized & traded Slaves on the Global markets.
The death of empire always results in war. USSA/Israel will not go quietly. If they can't control it all, then they will destroy it all.
If you allow yourself to think like a sociopath, then the endgame becomes crystal clear.
Global thermonuclear annihilation.
You only need to cut off the head of the snake, and burn its den.
Hey, don't forget Oceania.
Medes are still pissed about Marathon, Thermopylae, Salamis and Plataea. The West has always been at war with the East.
Medes are still pissed about Marathon, Thermopylae, Salamis and Plataea. The West has always been at war with the East.
Certainly hope we do a better job with the "win" "loss" buckets in the cost of those "war" occupations! If the last 14 years is any measuring stick I'd say we've had our "tail between our legs" since 2007!
Looking forward to seeing how that Eastern European adventure we started last February turns out???!!!
Great News, Buy UAE Dirham in your reserves. UAE will use proceeds to buy US dollar for their peg. Oh yes, its Fed terminology to not buy Dollar.
We should send Lurch Kerry and J.Taylor over to give them a hug & kiss... You got a freind!
:yawn: i doubt they have enough foreign reserves to make a hill of beans
No problem buzz.
They are going back to the used donkey standard.
Bingo, Buzz. I'm disappointed that I had to scroll this far down to find someone pointing out what should be obvious: that Iran's economy amounts to a rounding error in global dollar terms.
This amounts to exactly nothing.
I thought they were in the top twenty in terms of GDP. Maybe I'm wrong.
Sorry but the Rial is still pegged to the USD, which means that American inflation = Iranian inflation. So, um, they're still "dollarized."
Until they completely abandon the peg, they are still a subject of the Great Eye.
In fact, look at at it this way. We all know that Rothschilds does not *directly* control their central bank, which is the genesis of all their geopolitical problems (i.e. they've been continuously accused of being a nuclear terror threat for...what, almost fifty years now? "We believe they are only months away from having a nuke..."). If they would surrender their bank to Lord R., peace would reign. I believe the concession, the fallback position, that keeps them from being slaughtered immediately is the currency peg. That means they serve as another USD dumping ground, just like China and yes, Venezulea.
They break that peg and watch - bombs would drop on the very same day.
and so is China.
Funny how little financial facts matter in this echo chamber.
Yep.
"De Nile" ain't just a river.
Any country can de-peg whenever it feels like. They stay pegged only as long as it is convenient for them. Besides, they can always de-peg and re-peg back at a different, more convenient. No need to import anybody's inflation, and BS...
oh yeah, it's just so fuckin' easy, a stroll in the park I tells ya...
so why isn't it happening all over the place at every opportunity? hmmm...
Of course it is. The reason why they don't do it is because pegging is convenient, stability wise, for a while. That's the advantage in having your own currency, you can do whatever the heck you want with it, WHENEVER you decide to...
Your perception about bombing on depegging is wrong though . Ever heard of Kuwait? Its a nation
Kuwait is not a nation, it's an American satellite, like Saudi or Japan. They have absolutely no say in their own affairs. Try to keep up...
China was in the crapper until 1998 - and what happened then? MFN status, lowest level of customs duties for China to have access to US market - and the great sucking sound began. Thanks Clinton!
true... I look at it more like a "tar baby" strategy, though... now they're stuck... "you got a hold on me, I got a hold on you"
It's not about a transition from the US to China, all nations are headed for a mighty fall, including and especially China.
"... and America has remained committed to defending this world."
Nothing like a good joke to start off the day.
The dollar really doesn't deserve reserve status anymore BUT Iran isn't doing this for strategic reasons but to poke America in the eye. The article is pushing China hard but if you actually look, the Chinese are much bigger printers than we are and relies very heavily on foreign trade to prop their system up. I don't see any currency successfully becoming the new reserve any time soon since it's all fiat based. Gold is going to make a big comeback but I think everybody is going to try to destroy everybody else first, which means it'll all fall apart and we get to start over.
Valerie Jarrett= Mission Acomplished
"De-Dollarization" is complete when you see a line of ruskies at ATM trying to take their cash in USD and dump RUB as they did few weeks ago :D
you paid by the post or is it more of an hourly?
Now you have upset him. He didn't know they were prepared to pay him.
He is stupid enough to do it for free...
truth hurts doesn't it... despite everyone's downvote to the contrary
IridiumRuble,
When you dipped your drinking water from the creek, you should have been going upstream from the outhouse.
Is your comment a metaphor for bothering to reply to freedom123's piss and crap?
Im kinda bored with the "end of the USA empire" articles written in a tone its a bad thing. Its a good thing.
The end of the empire is a fact, but....it's certainly not anything to look forward to and it's certainly not a good thing. You sound like the type of millennial that will starve when McD's closes, shit you'll probably lose your job too.
Not trying to be a dick, but fuck off with "it's a good thing".
.
Who knows how things will turn out? But the likeliest outcome IMHO will ultimately be good for the American people in that there will be a Great Reset whereby the current parasites and their parasitical system will be overthrown.
The only thing missing after the reset will be the middle class. THAT'S what happens when empires fade. The rich are still rich and the poor remain poor. The middle class goes broke (90%) and a few move up to rich class (10%). If you have any debt, you'll be poor. Good luck out there America!
You hear that Bibi !!!
The USA threatens Iran, sanctions it, laughs at Iranian leaders.
China is a friend. It buys Iranian oil, gives money, provides cheap clothes and electronics.
Whom will ordinary Iranians like more?
Nobody likes to step in dog shit and nobody likes to use the dollar; therefore there is a correlation between dog shit and the dollar...
"Why do we suggest that the USA’s geopolitical multiplier, its ability to turn relative economic strength into geopolitical power, might be falling? Whilst there are many reasons why this might be the case, three stand out. First, since the GFC the US (and the West in general) has lost confidence."
Underlying USA's fall from power is corruption of the elites as represented above. Also the Iraq war that was based on lies and the undemocratic political system that has evolved. USA only has itself to blame for its fall from grace.
The sad part is that the 'elites' number only around 3000 in this country. That is, there are about only 3000 of them herding 350 million of us off a cliff. Take this 3000 out of the equation and you're on your way to real change. On a side note, Sheldon Silver, the assembly leader in NY could be counted as one of the 3000 (because of his tremendous power over the resources of one of the largest states in the nation). He's off to jail for a little while so he can't make too much mischief.
If he's off to jail then he is not one of the "3000" you speak of. That's a solid litmus test.
Absolutely true, our adventures in Libya, Syria, Ukrainia and Russia, not to mention the encirclement of China, are all best described as friendly helpfulness, not intervention or threats of war.
I'm not trying to generate controversy here but how do we really know Iran has abandoned US dollars? They have a history of 'exaggerating' things.
Pretty soon the American working girls will likely replace those Russian collegues who flooded the Chinese market in the early 90s. The cost in RMB is likely to be very affordable for average Chinese consumer.
I was in Dubai a decade ago. A saw a few Russian working girls. Like gold, Russian girls flow to where the wealth is.
The UAE dirhamis is pegged to the USD at 3.6725 to 1.
Thus, indirectly Iran is still has USD reserves.
Don't try to explain that to this bunch of morons.
When UAE depeggs from the USD it will be the same as Zim depegging from GBP.
Prior US government santions spanning over 25 years is working efficiently. The IMF, World Bank or Bank of International Settlements cannot steak in global debt. UN is just a troll for global governance /sarc.
With the new EUROTRASH blowing money into the wind fire, how will this be resolved?
http://www.globalgovernance.eu/
Go fuck yourselves, we will not merge into your train wreak EU FX currency vision. No matter how big the security guard you keep, you will be gunned down.
The godfathers end up dead at every movie. That includes you! Think about that long and hard.
Was this a serious article or a new lee greenwood song?
Read thru the tea leaves. Only a knowledgeable ZH Poster can see through the fog.
There is hardly any trade between Russia and the US, or Iran and the US - so the de-dollarization will have minimal effect (for now). As long as the Fed and TBTF control Wall Street, they can manipulate any 'paper' currency exchange rates (similar to gold price suppression).. For real de-dollarization, it will take OPEC or China to say 'No Mas' and require the US to pay in gold or some other currency.
Speaking of which - with oil priced in dollars, and the US dollar being 'stronger' - the net negative effect on the Saudis selling oil to non-US countries is actually is lessened. Even with oil down 50%, with Euros down 25% the Saudis are only down 25% in Euros.
It is not the net effect of Russia and Iran dedollarizing and its signififance in global trade. The concern is that this is the start of the dedollarization domino and the end of American hegemony.
If the Brits are any indication of things to come, the military crumbles first followed by the reserve currency
Honestly Iran is a tick on a dog and nothing more. Having said that many countries are aligning trade agreements using sovereign domestic currencies and not the US dollar. The world is tired of being bullied. The USA has/had responsibilities and we blew it. The real turning point in my mind was when we started screwing with the SWIFT system that was suppose to remain neutral and allow businesses transact in the system. This administration is using this now for a weapon of mass destruction of other sovereign nation economies and many coutries of the world do not like and wonder if they will be targeted if they piss the USA off. This screws the general public over in said country/s and we wonder why we have enemies. Most here know all about our interventions into other countries all in the name of terrorism and that is another nail in the USD coffin.
The mouthpieces and the pundits rattling their sabres and cheering our politicians for basically invading other countries without real proof honestly are either stupid or they are paid schills. I know I served in two wars and love this country but that does not mean I have to stop thinking.
Right now the Ukrainians are battling it out over their country and if the West Ukrainians start to really take a beating we will indeed stop in. Most likey they are going to take an ass whooping following the foreign news agencies in my mind. They are already rounding up men 18 to 60 and sending them in with minimal training to fail. They know if you have the money you can get out of the fighting. Not good for morale or anything else for that matter. Vlad has openly stated he would use tactical nukes and no amount of missle defense is going to stop them when you can shoot a tactical nuke thru a howitzer. This is a very dangerous situation.
The EU is really cutting its nose off to spite its face and their politicians are already whining. I hope they wake up and realize war is not an option and lift the sanctions.
Even though Iran is a tick too many ticks can kill you.
"The USA has/had responsibilities and we blew it. The real turning point in my mind was when we started screwing with the SWIFT system that was suppose to remain neutral and allow businesses transact in the system."
There is no WE in this unless you are CIA,NSA,a Central Bank Chairman, the pschopaths comprising the US Government, Chairman or CEO of the MIC.
You're not in the club. WE get real.
There are so many problems with this article. It perpetuates a number of fallacious narratives throughout its length, extending even into the concluding para.
Surprisingly, despite the authors fantastical world view, their conclusion seems sound.
BOMB those Iranian bastards!
Sadly, that's the plan. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&...
A bomb is one thing but turning your back on US hedgemony is unforgivable, the attack starts a 7.
Just when I thought it was gone, that reserve currency chart is back - again. AAAAAHHHHHHHH!!!!!!
You all realize that this puts Iran even more directly in the cross hairs of the USA. Lets face it, if we cant manipulate a country economically then we destroy it militarily.