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"New Silk Road" Part 1: Changing Global Economics Forever

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Submitted by Robert Berke via OilPrice.com,

Part 1: The New Silk Road

Beginning with the marvelous tales of Marco Polo’s travels across Eurasia to China, the Silk Road has never ceased to entrance the world. Now, the ancient cities of Samarkand, Baku, Tashkent, and Bukhara are once again firing the world’s imagination.

China is building the world’s greatest economic development and construction project ever undertaken: The New Silk Road. The project aims at no less than a revolutionary change in the economic map of the world. It is also seen by many as the first shot in a battle between east and west for dominance in Eurasia.

The ambitious vision is to resurrect the ancient Silk Road as a modern transit, trade, and economic corridor that runs from Shanghai to Berlin. The 'Road' will traverse China, Mongolia, Russia, Belarus, Poland, and Germany, extending more than 8,000 miles, creating an economic zone that extends over one third the circumference of the earth.

The plan envisions building high-speed railroads, roads and highways, energy transmission and distributions networks, and fiber optic networks. Cities and ports along the route will be targeted for economic development.

An equally essential part of the plan is a sea-based “Maritime Silk Road” (MSR) component, as ambitious as its land-based project, linking China with the Persian Gulf and the Mediterranean Sea through Central Asia and the Indian Ocean.

When completed, like the ancient Silk Road, it will connect three continents: Asia, Europe, and Africa. The chain of infrastructure projects will create the world's largest economic corridor, covering a population of 4.4 billion and an economic output of $21 trillion.

Politics and Finance:

The idea for reviving the New Silk Road was first announced in 2013 by the Chinese President, Xi Jinping. As part of the financing of the plan, in 2014, the Chinese leader also announced the launch of an Asian International Infrastructure Bank (AIIB), providing seed funding for the project, with an initial Chinese contribution of $47 billion.

China has invited the international community of nations to take a major role as bank charter members and partners in the project. Members will be expected to contribute, with additional funding by international funds, including the World Bank, investments from private and public companies, and local governments.

Some 58 nations have signed on to become charter bank members, including most of Western Europe, along with many Silk Road and Asian countries. There are 12 NATO countries among AIIB´s founding member states (UK, France, Netherlands, Germany, Italy, Luxembourg, Denmark, Iceland, Spain, Portugal, Poland and Norway), along with three of the main US military allies in Asia (Australia, S. Korea and New Zealand).

After failed attempts by the US to persuade allies against joining the bank, the US reversed course, and now says that it has always supported the project, a disingenuous position considering the fact that US opposition was hardly a secret. The Wall Street Journal reported in November 2014 that “the U.S. has also lobbied hard against Chinese plans for a new infrastructure development bank…including during teleconferences of the Group of Seven major industrial powers.

The Huffington Post’s Alastair Crooke had this to say on the matter: “For very different motives, the key pillars of the region (Iran, Turkey, Egypt and Pakistan) are re-orienting eastwards. It is not fully appreciated in the West how important China's "Belt and Road" initiative is to this move (and Russia, of course is fully integrated into the project). Regional states can see that China is very serious indeed about creating huge infrastructure projects from Asia to Europe. They can also see what occurred with the Asia Infrastructure Investment Bank (AIIB), as the world piled in (to America's very evident dismay). These states intend to be a part of it.”

Buttressing this effort, China plans on injecting at least $62 billion into three banks to support the New Silk Road. The China Development Bank (CDB) will receive $32 billion, the Export Import Bank of China (EXIM) will take on $30 billion, and the Chinese government will also pump additional capital into the Agricultural Development Bank of China (ADBC).

The US: Unlikely Partner on the Silk Road:

Will the US join the effort? If the new Trans-Pacific Partnership (that pointedly leaves out both Russia and China, two Pacific powers) is any indication, US participation seems unlikely and opposition all but certain.

But there's no good reason that America should sacrifice its own leadership role in the region to China. A project as vast and complicated as the Silk Road will need US technology, experience, and resources to lower risk, removing political barriers for other allied countries like Japan to join in, while maintaining US influence in Eurasia. The Silk Road could enhance US objectives, and US support could improve the outcome of the project.

An editorial in the Wall St. Journal argues that the US proposed trade agreement and China's sponsored Silk Road project are complimentary, with the trade agreement aimed at writing rules for international trade, while the Chinese aim at developing infrastructure is necessary for increased trade.

Initial Project:

A look at the first project, currently under development, provides a good example of how China plans to proceed.

The first major economic development project will take place in Pakistan, where the Chinese have been working for years, building and financing a strategic deepwater port at Gwadar, on the Arabian Sea, that will be managed by China as the long-term leaseholder.

Gwadar will become the launching point for the much delayed Iran-Pakistan natural gas pipeline, which will ultimately be extended to China, with the Persian section already built and the Pakistan-Chinese section largely financed and constructed by the Chinese.

The pipeline is also set to traverse the country, following the Karakoram Mountain Highway towards Tibet, and cross the Chinese western border to Xinjang. The highway will also be widened and modernized, and a railroad built, connecting the highway to Gwadar.

Originally, the plan was to extend the pipeline to India, with Qatar joining Iran as natural gas suppliers, forging what some considered a “peace pipeline” between India and Pakistan, but India withdrew, under pressure from the US along with its own concerns over having its energy supplies dependent upon its adversary, Pakistan.

India's Counter:

Not surprisingly, India, a US ally, countered China's initiative with one of its own, announcing a new agreement to build a port in Iran on the Arabian Sea, only a few hundred miles from Gwadar, bringing Iranian energy to India via Afghanistan, bypassing Pakistan.

Although it would offer an alternative to the Chinese-backed Gwadar initiative, the US warned India not to move ahead with the port project before a final nuclear agreement between Iran and the West is actually signed.

Both the Chinese and Indian projects are clearly in defiance of international sanctions on Iran, but both countries appear unconcerned. The Chinese could also be accused of a ‘double dip’ sanctions violation, given the immense and continuing trade deals it negotiated with Russia.

The rest of the business world is sure to follow, or risk losing out in what is certain to be a new “gold rush” towards Asia in a world still struggling with the lingering effects of the great recession. And New Delhi pointed out the harsh truth: American energy companies are also trying to negotiate deals with Iran. Following on the heels of the US visit, the German mission is due in Tehran soon, with the French beating everyone to the punch in an earlier visit.

What then of sanctions? Sanctions only work in a world united behind them. If a large part of the world chooses to ignore sanctions, they become unenforceable.

Conclusions:

China and much of the world is intent on developing the largest economic development project in history, one that could have dramatic ripple effects throughout the world economy.

The project is expected to take decades, with costs running into the hundreds of billions of dollars, if not trillions. What that will mean for the world economy and trade is almost inconceivable. Is it any wonder then, that the world’s largest hedge funds, like Goldman Sachs and Blackstone, are rushing to market new multi-billion dollar international infrastructure investment funds?

No doubt a project as large and complex as this is likely to have failures, and is certain to face many western geopolitical obstructions. Assuredly, the “great game” will continue. Look no further than US President Barack Obama, who also senses the urgency. “If we don’t write the rules, China will write the rules out in that region,” he said in defense of the Trans-Pacific Partnership.

In a world where economic growth is tepid, with Europe still struggling with the aftermath of the global recession, along with China's growth slowdown, where else could a project that promises so much opportunity be found?

It's a good bet that giant iron mining companies like Vale, that have seen their business fall to a thirteen-year low, are currently busy figuring how much steel goes into construction of a new, high speed 8,000 mile railroad. If the project is successful, it could very well spark a boom across the entire depressed international mining, commodities, and construction sectors.

Consider how many jobs could be created in a decades-long construction project that spans a huge region of the world. In practically every sector, the prospects are enormous for a revival of trade and commerce.

The ancient Silk Road increased trade across the known world, but the Road also offered far more than trade. One of its least anticipated benefits was the widespread exchange of knowledge, learning, discovery, and culture.

Beyond the riches of silks, spices, and jewelry, it could be argued that the most important thing that Marco Polo brought back from China was a famous nautical and world map that was the basis for one of the most famous maps published in Europe, one that helped spark the Age of Discovery. Christopher Columbus was guided by that map and was known to have a well-annotated copy of Marco Polo's travel tales with him on his voyage of discovery of a new route to India.

For the world at large, its decisions about the Road are nothing less than momentous. The massive project holds the potential for a new renaissance in commerce, industry, discovery, thought, invention, and culture that could well rival the original Silk Road. It is also becoming clearer by the day that geopolitical conflicts over the project could lead to a new cold war between East and West for dominance in Eurasia.

The outcome is far from certain.

Coming soon, Part 2: Cold War or Competition on the New Silk Road.

 

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Sat, 05/23/2015 - 16:54 | 6125204 SmilinJoeFizzion
SmilinJoeFizzion's picture

So this would explain why every appliance in my kitchen is made in China and the soy sauce in the fridge was made in New Jersey

Go figure

Sat, 05/23/2015 - 16:57 | 6125211 y3maxx
y3maxx's picture

...and soon the planet's first language will still be Yiddish.

Jews control everything.

Sat, 05/23/2015 - 17:28 | 6125277 macholatte
macholatte's picture

 

 

Looks like another clever way for China to deposit millions of Chinese into the countries along the Road and colonize them. 

Sat, 05/23/2015 - 17:54 | 6125323 Captain Debtcrash
Captain Debtcrash's picture

China can misallocate as many resources as they want toward any project they want, but without the guidance of the free market it is, for the most part, busy work, digging ditches and filling them back in again, like their empty cities. Infrastructure is not always good spending.

China is doing amazing things but it may not end well. 

Sat, 05/23/2015 - 18:02 | 6125354 random999
random999's picture

empty or not the houses will have to be demolished and rebuilt before 50 yrs are past. Sure some houses will collaps before they take action. We squashed some folks.

Sat, 05/23/2015 - 19:59 | 6125603 philipat
philipat's picture

"Eurasia" is also known to the Chinese and Russians as "Home"?

Sat, 05/23/2015 - 18:40 | 6125404 crazytechnician
crazytechnician's picture

You can design and build an airport for a million travellers per day, it creates jobs for thousands of airline stewards , attendants , cleaners , builders , suppliers , fantastic.

Problem is , only one plane per week lands there , and it takes off with only half a load.

Socialists would say that is great , business is booming.

Paul Krugman would likely tell them to dig out a few more ditches at the end of the runway and plant some flowers and all will be well , especially if somebody is paid to tear the out the next day and re-plant.

The mis-allocation of capital is only sustainable for so long.

So Long, Suckers...

https://www.youtube.com/watch?v=Tb30nthVDWI

Sun, 05/24/2015 - 02:24 | 6126258 mkkby
mkkby's picture

This project is hardly a Renaissance.  It's more like a big wish.

For one thing, these trade routes already exist.  Asia is already exporting to the west.  If there is a need for an 8000 mile long rail line, it sure is coming late.

With easy oil peaking in the next few decades, I'd rather bet on economies becoming more local.  An 8000 mile long supply line is pretty damn expensive.

Sun, 05/24/2015 - 08:12 | 6126463 Winston Churchill
Winston Churchill's picture

Lots cheaper than having the USN blockade your transit over the sea lanes.

Its a strategic asset thats priceless in those terms.

Africa and S. America are out of luck though.

Sat, 05/23/2015 - 19:31 | 6125549 Karaio
Karaio's picture

Obomer next address to the nation:

"-We Fuck some people at home ..."

hehe.

Sat, 05/23/2015 - 19:41 | 6125568 Karaio
Karaio's picture

When I read similar article think the actions of Caterpilar, IBM, and many other industries.

Stupid political decisions are creating economic chaos in the US.

If you only produces ammunition, eat your ammo.

The end will be sad, bloody and violent.

Save yourself who can.

: - /

Sat, 05/23/2015 - 17:51 | 6125328 NoPension
NoPension's picture

Great. Let's see how the Chinese deal with the Middle East and African populations who can't seem to escape the 5th Century.
Have at it.

A new day in America would be for us to become as self sufficient and reliant on this side of the world. Let the Chicoms have that side. Good luck and good riddance. Myopic view, I know. But it's the first thought that comes to mind.

Sat, 05/23/2015 - 19:28 | 6125545 petkovplamen
petkovplamen's picture

Oh, they can escape the 5th century quite easy. It's USA and UK along with France and all the others who still have colonies who are determined to keep those countries into the 5th century.

Sat, 05/23/2015 - 19:56 | 6125590 Things that go bump
Things that go bump's picture

I suspect those populations will go the way of the Native Americans. China needs Lebensraum. In Africa, particularly in the ghastly slums of big cities, they have become so degenerate that grandfathers and fathers and uncles and brothers routinely rape little girls. 

Sun, 05/24/2015 - 02:29 | 6126260 mkkby
mkkby's picture

Hard to believe given examples like Detroit, Baltimore, Fergusun... just about anywhere africans congregate. /s

Sun, 05/24/2015 - 04:31 | 6126315 Things that go bump
Things that go bump's picture

Among the Masai tribe the prepubescent girls have always belonged to the warriors for their companionship and sexual gratification. There are quite detailed sociological studies about it, but its not them I wrote about and its for them a cultural norm with strict rules. If you've ever seen a documentary that includes anything about the Masai you might have noticed that the prepubescent girls and the young men were always hanging around together. That's why. The young men are responsible for the upbringing of their future wives and initiate them sexually very early. But recently some actress (maybe it was Mia Farrow or Twiggy) filmed a documentary about the rape of young girls by family members in the slums. Its apparently become endemic.  

Sun, 05/24/2015 - 15:28 | 6127375 napper
napper's picture

A new day in America ... self-sufficient ... ???

 

LOL. Have you asked permission from the Establishment?

 

 

Sat, 05/23/2015 - 18:34 | 6125419 crazytechnician
crazytechnician's picture

y3maxx

You are a fucking eejit.

Sat, 05/23/2015 - 19:08 | 6125499 Kirk2NCC1701
Kirk2NCC1701's picture

Silk Road 2 (SR2) will invariably include carpet baggers.  They'll position themselves to control the choke points of the Value Chain and extract their Middleman Cut, same as always. 

Sun, 05/24/2015 - 02:30 | 6126261 mkkby
mkkby's picture

The article already mentioned goldman and blackstone were jumping right in.

Sat, 05/23/2015 - 19:25 | 6125537 asfffasfff
asfffasfff's picture

hebrew

Sun, 05/24/2015 - 01:54 | 6126241 jwoop66
jwoop66's picture

damn chinese joooz!

Tue, 05/26/2015 - 01:38 | 6131773 napper
napper's picture

not joooz chinese?

Sat, 05/23/2015 - 17:43 | 6125310 doctor10
doctor10's picture

Just exactly how is a highway going to lead to a "new cold war"? Even more to the point, WHY should it lead to a "new cold war"?

Inquiring minds would like to know.

The Eurasians are there. We are not.

Precisely then what business of ours are their decisions about whom to trade with and how to do it?

Sat, 05/23/2015 - 17:58 | 6125343 Totentänzerlied
Totentänzerlied's picture

"The Eurasians are there. We are not."

Oh really?

https://www.foreignaffairs.com/articles/asia/1997-09-01/geostrategy-eurasia

Sat, 05/23/2015 - 19:15 | 6125516 sun tzu
sun tzu's picture

Silly and stupid neocon article. The world will collapse if the US military doesn't have a base in every country. LOL

Sat, 05/23/2015 - 23:16 | 6126044 Doña K
Doña K's picture

One look at the name of the author and I stopped reading. A friend once sold him a Mercedes Benz and he could not figure out how to unlock the steering wheel.

Mon, 05/25/2015 - 23:58 | 6127368 napper
napper's picture

foreignaffairs dot com has been a US establishment propaganda mouthpiece since its inception. It's a place for pseudo-scholars writing ultra-verbose BS on behalf of the military industrial complex, Wall St., big oil, and corrupt politicians on Capitol Hill.

 

Most zerohedge readers are not interested in government propaganda

Sat, 05/23/2015 - 18:10 | 6125374 RECISION
RECISION's picture

Ohh you poor naive fool.

You are perfectly logical and correct of course.

But... since when has that EVER been relevant to power politics.

Sat, 05/23/2015 - 19:54 | 6125591 August
August's picture

Eurasians are not exceptional.

(aside from the special people of the City, and Israel, who are very exceptional indeed)

Sun, 05/24/2015 - 03:31 | 6126297 Laowei Gweilo
Laowei Gweilo's picture

cuz most chinese don't actually know wtf soy sauce is...

 

it's like sweet and sour pork. it's americanized "chinese food" lol

or red salsa... go to mexico and most restaurants have no clue what red salsa is lol

 

go to a real chinese restaurant and no one even knows wtf soy sauce is. it's probably just from one province, maybe a canton thing? anything north of shanghai or west of chonqing, never ever seen soy sauce before

Wed, 05/27/2015 - 10:54 | 6136194 napper
napper's picture

I have travelled across China and I have seen soy sauce everywhere ... Beijing, Shanghai, Canton, Harbin, Mongolia, Xinjiang, Tibet. Some rivers in China were filled with soy sauce.

Sat, 05/23/2015 - 16:56 | 6125206 Achilles Heel
Achilles Heel's picture

When China gets hold of the opium trade from East to West (aka Afghanistan 'poppy fields'), then uses it to fund a global covert spy, military, & paramilitary operation network (aka Mossad & CIA)

 

Then we'll talk

Sat, 05/23/2015 - 17:01 | 6125210 falak pema
falak pema's picture

The spice route and the silk route and the precious stones route.... What Asia gave to the world when Obscurantist West was in the doldrums of the Dark Ages...

We seem to be heading back there since GWB reversed the clock by becoming the new Saint Louis without his spirit; just his hubris. 

Same neocolonial knee jerk to use the ideological curtain to rob the Orient of its spices and silks, like today to rob it of its Oil and rare earths.

History repeats but where is Aristotle's legacy now gone "sour grapes of wrath" gonna end up ? 

In Harran/Carrhes of old like in 532, when the age of reason fled to Persia ? 

As today, in the great roll back of Cheney's search for Midas's black gold, we seem to be resurrecting Saladin and the Mamlukes! 

Great jumping Josephats! We have re-become the great obscurantist Templars and ethnic cleansers.

Sat, 05/23/2015 - 17:14 | 6125248 breadonwaters
breadonwaters's picture

 

.....and a wet bird never flys at night......

good golly FP, have you ever said anything in clear straight forward english?

...that is all.....

Sat, 05/23/2015 - 17:55 | 6125332 falak pema
falak pema's picture

remember what Eleanor roosevelt said: 

Great minds talk about issues, medium minds talk about events and small minds talk about people...

She forgot a fourth category to which I belong according to you : minutemen talk gibberish.

Amen. If thats your opinion I don't have a problem; but as the Lady said there are THREE other options

Sun, 05/24/2015 - 01:35 | 6126222 Max Steel
Max Steel's picture

Flaw in article : India is NOT an  US Ally . They have strategic relations but not an ally . usa allies are its vassals and India is an independent nation . 

Sat, 05/23/2015 - 17:57 | 6125341 Parsecs Taxi
Parsecs Taxi's picture

The prose may be purple, but it's a lovely shade of purple.

Oh, and James Joyce wasn't exactly transparent, either, but he's generally considered a pretty fair writer.

Sat, 05/23/2015 - 20:02 | 6125608 August
August's picture

I'd rate Joyce below the "greats" (e.g. Shakespeare, Cervantes, Goethe); maybe a cut above Fred Reed, but maybe not.

Sat, 05/23/2015 - 21:04 | 6125740 Parsecs Taxi
Parsecs Taxi's picture

While commonly regarded as the greatest author of English Modernism, he was Irish, so really that's all you need to know. Like all you need to know is Al Gore is for global warming. Same kind of analogy. It's free thinkers like you who help tell the real story.

But I think Cervantes wrote in Polish, or something.

Sat, 05/23/2015 - 17:57 | 6125342 Arnold
Arnold's picture

Bot speak.

Sat, 05/23/2015 - 20:09 | 6125626 oudinot
oudinot's picture

Extremely well said.

Thanks

Sat, 05/23/2015 - 16:59 | 6125218 Gab Timov
Gab Timov's picture

build some more ghost cities while yer at it. 

 

in case China and their big US and Euro banks and corporate pals didn't get the message...your attempts to parasitize the rest of the world's economies worked and now no one wants to buy your products. the end. good ruck.

Sat, 05/23/2015 - 17:44 | 6125317 litemine
litemine's picture

I think it was Corporate American Interest that funded them..........They seemed to learn well from you.

Walmart walmart    rah rah rah

Sat, 05/23/2015 - 16:59 | 6125222 debtor of last ...
debtor of last resort's picture

As we are running out of cheap oil, those riksja's will come in handy.

Sat, 05/23/2015 - 17:00 | 6125224 Sudden Debt
Sudden Debt's picture

And what has Europe and America done in the last 20 years?

more taxes... yes...

more bureaucracy... yes...

killing trade deals... yes...

any meaningfull investments? HELL NO!!!

Sat, 05/23/2015 - 17:10 | 6125238 Urban Redneck
Urban Redneck's picture

American Recovery and Reinvestment Act of 2009

$831 BILLION dollars

Could have bought a lot of Silk Roads and created a lot of jobs.

Should have bought a lot of Silk Roads and created a lot of jobs.

Would have bought a lot of Silk Roads and created a lot of jobs, but for...

Sat, 05/23/2015 - 18:08 | 6125367 gatorengineer
gatorengineer's picture

Sudden  you are usually spot on, however on this you are wrong.  Every interstate in the Northeast has been paved at LEAST once since lehmann, some like I78 3 or 4 times.  

Wed, 05/27/2015 - 10:58 | 6136215 napper
napper's picture

America did spend a few hundred billions piling up on all kinds of weaponry. It remains to be seen how well the investment is going to pay off.

Sat, 05/23/2015 - 17:03 | 6125226 Atomizer
Atomizer's picture

Old news. TPP is the renewed Silk Road. 

Sat, 05/23/2015 - 17:10 | 6125237 Sudden Debt
Sudden Debt's picture

There’s a new part.

look at the map, the first draft of the road didn’t pass through Russia first before it entered Europe so this is a mayor plus for Russia!!

It will make Russian trade better and China and Russia are showing their unity with this map.

 

Look at the old route:

http://www.east-site.com/images/silk_road_map.gif

 

They completly erased the Balkan from the route.

Sat, 05/23/2015 - 17:05 | 6125230 Raging Debate
Raging Debate's picture

The Silk Road plan marches right smack through the middle of oil producing countries. Trade is not the only thing that can flow on that route, so can a massive land army. Time will tell.

Sat, 05/23/2015 - 17:08 | 6125234 Xibalba
Xibalba's picture

I'm sure the Americans are already working hard on sabotage 

Sat, 05/23/2015 - 17:17 | 6125247 cwsuisse
cwsuisse's picture

The infrastructure projects such as railroad and road developments which will be part of "silk road" do not require american technology. Chinese railroad and construction expertise shall be sufficient to plan and complete the projects. The map in the article is not really telling. The new express railroad from Bejing to Moscow (volume approximately 242 billion dollars) shall likely follow the route of the existing transsiberian railroad via Irkutsk and Novosibirsk. 

Sat, 05/23/2015 - 17:54 | 6125334 The Blank Stare
The Blank Stare's picture

Thank you Xi Jinping

Sat, 05/23/2015 - 17:15 | 6125250 tarabel
tarabel's picture

 

 

Beyond the riches of silks, spices, and jewelry, it could be argued that the most important thing that Marco Polo brought back from China was a famous nautical and world map that was the basis for one of the most famous maps published in Europe, one that helped spark the Age of Discovery.

It could also be argued that, by opening trade between Europe and China, he brought back the bubonic plague, which would be an even more important thing for Europe than some dumb map.

But more to the point is what China is looking to get out of all this infrastructure investment in the shitholes of the world today.

And what it gets, or at least hopes to get, is a backdoor to its raw material partners that is not subject to blockade by the mighty USN.

Everything else is just rubbish to fool the brainless into providing part of the financing.

Revelation speaks of a time when the Arab world is united under a single ruler and allied with China. What seemed fantastically impossible ten or twenty years ago is rapidly taking place right before our eyes.

Sat, 05/23/2015 - 17:28 | 6125276 angel_of_joy
angel_of_joy's picture

"Mighty USN" ? What the hell are are you talking about ? USN will be wipped out in less than a week, in a conflict with a serious contender (like Russia or China). Then the question becames how much and how quickly would we be able to rebuild ? And with what money ?

Sat, 05/23/2015 - 17:33 | 6125292 macholatte
macholatte's picture

 

 

it could be argued that the most important thing that Marco Polo brought back from China was...

spaghetti.

 

 

Sat, 05/23/2015 - 18:35 | 6125421 Harbanger
Harbanger's picture

:) Thank goodness Columbus brought back some tomatoes.

Sun, 05/24/2015 - 00:45 | 6126168 Adahy
Adahy's picture

That cursed name and the word 'goodness' need not be in the same sentence.  You could have just asked for some tomatoes.

Sun, 05/24/2015 - 10:40 | 6126667 Lea
Lea's picture

"it could be argued that the most important thing that Marco Polo brought back from China was...

spaghetti."

It could also be argued that Marco Polo had nothing to do with the Silk Road other than travelling to the end of a well-known route which had been established for centuries (check the history of the Silk Road for further enlightenment). And also, bringing back pasta to Italians.

As for Chinese inventions, where should one begin? The Chinese have invented the paper, the ink, the gunpowder, the umbrella, the compass, the printing press, the writing, the movable sail, the porcelain, the coal and iron refining, the mechanical clock, the paper money, the spinning wheel, the silk, the pasta, the wheelbarrow, the seismograph, the kite, the abacus, the harness for horses, the crossbow, the gun, the cannon, the matches, the pasta, the tea, etc. 

Which means that today, each and every person ON EARTH is using daily at least one Chinese invention.

Wed, 05/27/2015 - 10:59 | 6136224 napper
napper's picture

don't forget pizza.

Sat, 05/23/2015 - 18:06 | 6125361 Arnold
Arnold's picture

That overseas dollar might come back to Uncle, Tax free, in the event of it being needed to invest in needed self defence projects.

Just sayin' it would only take a digital blink of an eye.

Mon, 05/25/2015 - 23:38 | 6127352 napper
napper's picture

The way things are going, overseas dollars will be coming back even if you want to stop them. You will have an opportunity to see what hyper-inflation looks like.

 

Invest in self defense projects??? LOL. Zimbabwe printed money with denominations in the billions and trillions not so long ago. Gosh Zimbabwe must be a military jugglenaut now, right???

 

How long have you been reading Zerohedge?

Sat, 05/23/2015 - 19:37 | 6125561 tarabel
tarabel's picture

 

 

You're dreaming, Bo.

But if it makes you happy, then go for it.

Sat, 05/23/2015 - 20:44 | 6125701 post turtle saver
post turtle saver's picture

good lord you're fucking stupid...

Sat, 05/23/2015 - 19:38 | 6125562 Kirk2NCC1701
Kirk2NCC1701's picture

China's greatest contribution on Silk Road 1 (SR1), was... Gunpowder, bitchez.

Sun, 05/24/2015 - 01:48 | 6126237 Max Steel
Max Steel's picture

our colaraduan tarabel schmuck has gone into full US navy is our savior . it can beat other nation on its own full retard mode . lol . whatever helps him sleep . cant shatter his glass house .

Sun, 05/24/2015 - 12:07 | 6126895 basho
basho's picture

"by the mighty USN"

funny.

Sat, 05/23/2015 - 17:19 | 6125256 breadonwaters
breadonwaters's picture

The US and Canada have plenty of silk road projects that are needed .....all in North America ....but ....oh never mind.....

Sat, 05/23/2015 - 17:19 | 6125257 reader2010
reader2010's picture

It ain't materialize without woars from Washington. 

Sat, 05/23/2015 - 17:24 | 6125270 geno-econ
geno-econ's picture

Because of US policy, motels along the Silk Road will discriminate against white Anglo Saxons with special seating in the rear of buses and trains.  No doudt KKK will march for equal rights.  President of US will deliver a speach---" I  have a dream that one day the silk road will be etc. "

Sat, 05/23/2015 - 17:29 | 6125279 Dixie Flatline
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Paid for with money created out of thin air!

Sat, 05/23/2015 - 18:15 | 6125387 RECISION
RECISION's picture

Perhaps not.

Gold might be involved.

Sat, 05/23/2015 - 17:35 | 6125294 WTFUD
WTFUD's picture

The Cabal says if we can't beat 'em let's fuck 'em up at every turn.

Once china ( and Russia ) suck in those Turkish bastards maybe we'll get some Middle-East Rational. I despise the 2 faced fucking Turkish Elite who provide logistics and resources to Isil/Al Nusrah to destabilise Syria and yet sit down with China/Russia to sign Infrastructure Builds.
Are you kidding ME/US? Want to hear from Putin on this CrockaShit. How do you negotiate with these lowlifes and not demand an end to Syria's plight?

Sat, 05/23/2015 - 18:03 | 6125351 Thirtyseven
Thirtyseven's picture

The Oligarchs of any given fiefdom are going to act in the best interests of the oligarchs in that fiefdom.  (Note: does not necessarily mean the best interests of the fiefdom itself or the serfs living there).

Sat, 05/23/2015 - 17:46 | 6125320 Allen_H
Allen_H's picture

Do not fear, the Western Imperialist fuckers will not succeed......EVER, they just a bunch of dumb brainless Fucks !

Sat, 05/23/2015 - 17:47 | 6125322 GreatUncle
GreatUncle's picture

Global economy slowing but if we were to just print what we need the global population would be up in arms.

So what we do is build a massive railway from east to west and we will finance it by creating trillions in paper because people will not notice it than outright in your face QE.

Question? What you going to do when the railway has been built? Build another 2x as big because keeping the global economy inflated is going to cost even more to keep inflated in the future.

Makes no difference the economic system remains the same with the borrowing of ever larger quantities to pump the global economy with liquidity that ends up servicing bad debt is the drag railway or not.

Sat, 05/23/2015 - 17:52 | 6125329 Lordflin
Lordflin's picture

Great plan...

And it perfectly compliments world war, and engineered social and economic collapse. Yes I can see it now, a glorious future filled with human cyborgs, uploaded human consciousness, the occult New Age and the purposeful reduction of the world's population...

 

Sat, 05/23/2015 - 17:59 | 6125346 Thirtyseven
Thirtyseven's picture

New Silk road is the old Silk road, the same silk road they just changed the name. 

......OLD new York was once New Amsterdam!

Why they changed it I can't say

People just liked it better that way! HEY!

Sat, 05/23/2015 - 18:01 | 6125349 Arnold
Arnold's picture

Not a bad premise to start an argument.ald

Sat, 05/23/2015 - 18:09 | 6125372 gatorengineer
gatorengineer's picture

Yeah, build a road through the Stans, Pakistan etc.... Yep,. that will work, good idea....  Muzzies on camels and horses attacking chinese Semi's.  And I thought Mad max was made up...

Sat, 05/23/2015 - 19:05 | 6125487 Duc888
Duc888's picture

 

 

gangitoreneer: , build a road through the Stans, Pakistan etc.... Yep,. that will work, good idea....  Muzzies on camels and horses attacking chinese Semi's.  And I thought MYeahad max was made up...

 

...and why not?  US troops are already protecting the Chinese built railroads in the areas as well as facilitating the transfer of the Poppy crops thus ensuring safe delivery to their westward destinations and keeping the banks afloat.

Sat, 05/23/2015 - 19:03 | 6125484 10mm
10mm's picture

It's only a new cold war because it's all designed. 

Sat, 05/23/2015 - 19:03 | 6125485 kchrisc
kchrisc's picture

I rarely discuss my faith, as who gives a shit, and too many others are pushing their faith/religion, so I usually don't.

With that said, as a teenager I discovered the book Late Great Planet Earth which is about biblical end-times.

In it one learns about some strange, even scary, coincidences to our times. One of the end-time prophecies is that the Chinese will come to the aid of Egypt after a Russian invasion of Israel and Egypt. The author in that book wrote that to move a military so quickly to western Asia, the Chinese will have had to have built a road thru the very inhospitable area of central Asia and Afghanistan.

Scary.

Liberty is a demand. Tyranny is submission.

 

*Not an endorsement, or inducement of any one faith or religion.

Sat, 05/23/2015 - 19:12 | 6125505 Bobbo
Bobbo's picture

China is building the world’s greatest economic development and construction project ever undertaken

Not all that surprising, really.  The chinese have history of such undertakings all the way back to Yu The Great.  Could have seen this coming with a deep look at Chinese archetypes (starting with the I Ching, for example).

Oh, referring to something I wrote elsewhere today:  The I Ching is the greatest example of a book wherein the meanings of the words have been altered regularly by dictate.  The rulerOwner simply says, That Word ACTUALLY has always referred to me, your rulerOwner!  All other use is criminal.  It seems odd, I know, but that precise example has in fact happened, thereby preserving the I Ching from the Burning of the Books.  Imagine what they could have done 1800 years ago with TV.  2500 years ago (King Wen).  4500 years ago (the time of Yu?).

Sat, 05/23/2015 - 19:14 | 6125514 sam site
sam site's picture

The upshot of this important article is that

 

"It is also becoming clearer by the day that geopolitical conflicts over the project could lead to a new cold war between East and West for dominance in Eurasia. 


The outcome is far from certain."

 

 

That uncomfortable elephant in the room in the Asian Silk Road Union that will be redeeming their separate currencies in gold and silver coins.  The author would call this show-stopper in the West - a "geopolitical conflict"

 

If the West had to redeem their currencies in gold and silver, fraud and counterfeiting the currency would become harder to get away with. 

 

Gold is like Kryptonite to counterfeiting central bankers like the Fed.  This means that the free government money from counterfeiting is coming to an end. 

 

The New Asian Silk Road represents Asia eating our lunch and we had better get rid of this old world parasite that's been ruling the West and adjust to this fiercely competitive and over-populated world and we need to start with massive government cost cutting. 

 

I propose a new amendment be added that takes priority over all others and that's to eliminate the power of government to coerce individuals.  Private Contracts among private entities are only  allowed - along with shame, guns and the internet to take the place of all former government functions at all levels.

 

For instance, if several people in a neighborhood want to hire a security guard, they all have to put up their money to fund the job.  That leads to the next proposed amendment and like Thomas Jefferson fought for and lost - was the abolition of public debt.  In the future, there is no government borrowing authority.  There's only private contracts among paying individuals.  Like Tip Oneal said, "All politics is local"  

 

 

 

Sat, 05/23/2015 - 19:36 | 6125560 silverer
silverer's picture

US citizens could put an end to it, but they are too stupid to know what to do.  They can barely make change accurately, and few can to math without a calculator.  Crippled, mentally.

Sat, 05/23/2015 - 19:25 | 6125538 Jack Burton
Jack Burton's picture

I think this is what is behind the last couple year's of rabid anti Russian and now anti Chinese rhetoric and measures to undermine both states. The Ukraine fiasco has allowed NATO to approach the Russian border with increasing levels of army and air force weapons and troops. The South China sea now has the US vowing to react and to send at least 60% of America's modern fighting capabilites to China's doorstep. Behind the scenes is where the action is. Radical Jihadists in China's far western provinces are now being organized by US and Israeli intelligence services, with the prospect of unleashing as large a revolt as possible, including wide scale terrorist attacks. The West is also doing the same in Central Asia on Russia's southern border. So it looks like a dual approach. A full on conventional armed forces advance onto Russian and Chinese borders and a covert Islamic terror war against China and Russia. As well as the Ukraine thing in former Soviet territory. China seems all too well aware of Washington's plans for them.

The new Silk Road is nothing new, it is an old and well established economic link all the way to Europe and Germany. It cuts American economic power out of this vast new market area. It makes irrelevant much of Israel's and Washington Neocon's plans for world hegemony. How did Israel every think it was going to be world hegemon? Using the USA naturally, and the world banking system. The plan was to use Banks to control nation's economies, all backed up by the Neocon's giant American war machine. So far, this has worked in Western Europe and now in Eastern Europe, but is fast reaching it's limits, limits set by Russia and China. THUS the move towards war!

Sun, 05/24/2015 - 06:24 | 6126376 doctor10
doctor10's picture

"banks and weapons"

What a vision and opportunity to offer the world.

Who the hell would want to be one of the 300 million who successfully impose that upon 7.5 billion fellow planet eartheans?

You'd spend the rest of your short life sleeping with one eye open-and that's the BEST part.

Sun, 05/24/2015 - 12:03 | 6126884 basho
basho's picture

the story is out on these assclowns

UE fell on its ass.

RU & CN pledged coop in these matters.

i don't think i would like to be a cia or moosad in these districts.

you won't be reading too much about the results of these forays.

mass graves.

the cia and moosad are more vulnerable than hollywood would have you believe.

Sun, 05/24/2015 - 15:28 | 6127366 Lea
Lea's picture

"How did Israel every think it was going to be world hegemon? Using the USA naturally, and the world banking system."

Jack, you're not making any sense. If there is one thing that's common to all the bankster shmucks, it's that loyalty means zilch to them. Only money (be it in dollars, yuans, gold, your aunt's Ming vase, whatever), is relevant.
The Jewish bankers have already put their investments in the New Silk Road, you can bet your boots they have, and fuck 'Murika. 'Murika is the only one who stands to lose its hegemony, not the "Jew cabal" that, according to you, rules the whole world and the known universe.
Get it? The only loser is plain old imperial WASP 'Murika.
And there'll be no war.
Because for war against major powers, a resource that's sorely missing in 'Murika is needed, and that's cojones. Not Hollywood cojones, but the genuine article.
Forget it.

Game over.

Sat, 05/23/2015 - 19:38 | 6125547 silverer
silverer's picture

Finally, some people have decided that with our sun in the middle of its main sequence, we have a "bit of time" in front of us.  Somebody, finally, realizes that the goal is not be the world's best criminal and screw everyone around them out of everything possible.  Because some people realize that incredible things can be achieved by working together, instead of in one's own self-interest. The USA is through.  Finished.  My new goal will be maybe to lobby all the BRICS countries to find and imprison any of these criminal bankers that flee the USA to their territory.  it would, after all, be in their best interest to stop them before they do the same damage in the eastern world.

Sat, 05/23/2015 - 20:09 | 6125629 q99x2
q99x2's picture

May I make a suggestion that the designers put in roadstops every 100 miles where people can have a scenic view of western NWO globalist banksters hanging.

Sat, 05/23/2015 - 20:12 | 6125635 NoWayJose
NoWayJose's picture

China builds this as a stimulus to establish trade and commerce - the US tries to raise the minimum wage. Which country will be better off 20 years from now.

Sat, 05/23/2015 - 21:20 | 6125776 AssN9
AssN9's picture

Great to see someone has a positive plan for the future, .gov in the west is too busy stealing what productive capital remains in the rapidly shrinking middle class to put any productive policy into action. Any recovery can only come from the middle class but when your busy converting that class (intentionally or not) into the welfare class not only are you placing a greater burden on an already unviable economy but also eliminating any chance of ever making it viable again. "Where intention goes results show" East and West will both get results. One side is building a middle class, the other, destroying it.

Sat, 05/23/2015 - 21:31 | 6125797 besnook
besnook's picture

dumb fucks. china is just reestablishing, pre western plunder, trade routes when everyone in the region essentially got along for longer than the west existed. they got all the oil. they got all the resources. they got all the people. the billion or so westerners are going to have to learn to deep throat.

Sat, 05/23/2015 - 21:47 | 6125832 Cityzerosix
Cityzerosix's picture

By Jove! Has anyone told the Queen? Damned if the Empire is going to stand for the natives getting away with it! Pass the Gin, Colonel.

Sat, 05/23/2015 - 22:08 | 6125888 not a yahoo
not a yahoo's picture

Sounds pretty stupid to me. The only new routs is western China to Moscow, and a pretty curvy one. Much easier to produce and load at a big sea port city and ship to Greece or thereabouts and then to Moscow, instead of shipping the huge distance from the eastern big Chinese production centers to the western part and then on the crazy land route.

If they want easier trade with Moscow, I suggest to move Moscow closer to the sea.

Sun, 05/24/2015 - 11:58 | 6126873 basho
basho's picture

not a talent in geopolitics either

Sat, 05/23/2015 - 22:37 | 6125952 DipshitMiddleCl...
DipshitMiddleClassWhiteKid's picture

i wish ww3 would start already!

Sun, 05/24/2015 - 11:57 | 6126871 basho
basho's picture

definitely a dipshit

Mon, 05/25/2015 - 23:40 | 6127323 napper
napper's picture

.

Sun, 05/24/2015 - 15:09 | 6127324 napper
napper's picture

It had started years ago. Financial and economic warfare is every bit as real and deadly as shooting war on a battlefield. The US is losing right now.

Sun, 05/24/2015 - 00:06 | 6126116 user2011
user2011's picture

We fucking spent a Trillion to bomb and destroy desert cities. And the Chinese spent a Trillion to build a network of trades.

We kill lives and they create jobs.

What the hell is going on...

Sun, 05/24/2015 - 00:39 | 6126156 Cityzerosix
Cityzerosix's picture

A large part of it is the old Mongol Empire of of the Great Genghis Khanate.

Sun, 05/24/2015 - 02:37 | 6126266 Ohne Deckung
Ohne Deckung's picture

When completed, you can buy flying saucers at your grocery store.

Sun, 05/24/2015 - 03:43 | 6126304 hedgiex
hedgiex's picture

Clasping at the straw of hope (the silk road) out of pains. Hope China is that moronic to pursue global hegemony in underwriting the silk road.

Like the Great Wall, such ambitions will implode its own economy already faltering from high internal debts and crawling to downsixe its export gargantum to become more consumption based.

Of course, they will take advantage incrementally to exploit pieces in the silk road but no reason for excitements. Surely, much better for US and EC to collapse on their own energy than to engage full scale.

Sun, 05/24/2015 - 08:57 | 6126536 Lea
Lea's picture

"Beginning with the marvelous tales of Marco Polo’s travels across Eurasia to China, the Silk Road has never ceased to entrance the world."

One would dearly appreciate it if 'Murikans knew something about something, sometimes. I mean, even only once would do. The relentless, obdurate ignorance they deploy on any given subject is nothing short of extraordinary, to say the least.
The Silk Road didn't start with Marco Polo (13th century). He merely documented it. The Ancient Silk Road had begun in 125 BC, and its founder is and will remain the Chinese imperial envoy Zhang Qian (Western Han Dinasty).
http://www.travelchinaguide.com/silk-road/history/zhangqian.htm

Thank you for your attention. You can go back to your television.

Sun, 05/24/2015 - 08:59 | 6126539 Brazen Heist
Brazen Heist's picture

The standard US response will be opposition and bullying those against joining.

When your foreign policy objectives are all about denying others theirs, you are pretty much fucked and on the wrong path. That's America today, trying hard to deny the unfolding reality.

Sun, 05/24/2015 - 10:27 | 6126647 Ajax_USB_Port_R...
Ajax_USB_Port_Repair_Service_'s picture

"extending more than 8,000 miles"

A BP, a 7-11, a Shake Shack, a McDonald's and a Starbucks every 90 miles!

Sun, 05/24/2015 - 11:55 | 6126868 basho
basho's picture

"Will the US join the effort? If the new Trans-Pacific Partnership (that pointedly leaves out both Russia and China, two Pacific powers) is any indication, US participation seems unlikely and opposition all but certain."

the ussa is becoming more irrelevant each day.

a bit of cooperation with other lands on this world would demonstrate that it is a viable player.

as it stands it is no more than a rogue state.

the author seems to be of the 'we are exceptional' school.

nothing new here from that jaundiced perspective.

Sun, 05/24/2015 - 12:19 | 6126928 autofixer
autofixer's picture

It's ALWAYS about the "MacKinder Heartland."

Sun, 05/24/2015 - 15:03 | 6127306 napper
napper's picture

India is a US ally???????? LOL

 

I believe the love affair is a trifle one-sided.

Sun, 05/24/2015 - 19:07 | 6127883 Keyboard Kommando
Keyboard Kommando's picture

Kind of like with those parasites in Israel?!? Only, I'd trust Indians more than Satanic Jews!

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