Damaging The Deep State: Trump, Russia, And China

Tyler Durden's picture

Submitted by Alasdair Macleod via GoldMoney.com,

Even before he takes office, President-elect Trump is turning the world upside down.

It has become clear his attitude towards Russia and China is very different from that of his predecessors. Amazingly, he is already wresting power from the deep state, causing it great resentment, which under Obama, Clinton and the Bushes, ran geopolitical policy. From January, barring accidents the world will not be the same, the establishment up-ended.

This short article builds on information available to date and speculates how America’s relations with Russia and China are likely to evolve, and the implications for NATO and Europe. It attempts to cut through the disinformation and noise (from all sides) to assess how Trump will change super-power relations.


President-elect Trump has signalled his respect for President Putin as a leader, and Putin, who has been careful to not comment on the US presidential election, has indicated his respect for Trump. Furthermore, Trump, who admittedly said lots of contradictory statements to get elected, clearly wishes to reduce America’s funding commitment to NATO and to reduce American involvement in the Middle East. These objectives will obviously find favour with Putin, and could form the basis of a relationship reset between Russia and the West.

The American deep state was responsible for moving missiles within range of Moscow, under cover of targeting Tehran, in this year’s escalation of a new cold war. It follows the covert destabilisation by the US of Ukraine over the last decade and American backing for various terrorist groups in Syria, following Syria’s refusal to permit pipelines from the Gulf to cross her territory five years ago. Since the fall of the USSR, NATO has moved its eastern border to within 300 miles of Moscow. Elements in the CIA, working to their own agenda, are still trying to demonise Russia without any evidence, as the Washington Post story about Russian intervention in the election demonstrates.

The Trump team dismissed this attempt to blacken the Russians as disinformation, from the same sources that came up with the fiction of Saddam Hussain’s weapons of mass destruction. The timing of accusations over Russian involvement probably has much to do with influencing the electoral college’s votes, a last stand against Trump’s election, in which case the intervention is politically outrageous. But this is a side-show, and doubtless Trump will deal appropriately with those involved when he is in office.

Rather like super-tankers that need seven miles to stop, regional powers are also finding it hard to adjust to these new realities, but adjust they surely will. European governments and NATO members will have had background briefings, but the normal channels for this, the CIA, the US Military advisers and American diplomats are not on Trump’s page, so confusion still reigns. But one thing is becoming clear: Trump will not be diverted from a general policy of détente and de-escalation of military presence in both Europe and the Middle East.

The process of détente is reasonably predictable. A summit with Russia to agree strategic arms limitations (called SALT3 perhaps?) is a proven path to follow. It should be a step-by-step process scheduled over five or ten years, with pre-agreed conditions designed to satisfy concerns in the Baltic States and Poland that Russia might attempt border-creep. For their part the Russians must agree Ukraine’s independence (excepting the Crimea, Donetsk and Luhansk, which should be formally ceded to Russia). Ukraine and Belorussia will be independent buffer states between Russia and the European Union. Under a SALT3 both NATO and Russia will agree to a phased withdraw of all military hardware other than limited ground troops and their associated equipment.

In the Middle East, America will concede that Syria remains in the Russian sphere of influence, and will withdraw all support for rebel organisations. This is no more than reality. China, doubtless, will help in the physical reconstruction of Syria in due course. Agreement will be sought as to the means of destroying Daesh. Beyond that, a reduced American presence in the region will continue to ensure security for Israel and the Gulf states. Already, the British have announced they will step up their presence in the region, which should also contribute to regional stability.

Iran should be persuaded by Russia to take a more constructive approach to peace with Sunni states, such as Saudi Arabia, and towards Israel. This could be difficult, but should be possible, given Iran has become considerably more moderate since the days of Ahmadinejad, particularly if the right tone from America is forthcoming. Iran’s days of hiding from western sanctions behind Russia will be over, and should be replaced with an emphasis on trade. And Saudi Arabia can no longer afford to wage wars, such as that in the Yemen, contributing to a less belligerent outcome.

All this is practical, possible and predictable. Behind the change in geopolitical reality for the Middle East is the fact that Peak Oil is being pushed further into the future. Not only are large new oil fields still being discovered (such as the Kashagan Field in the north of the Caspian Sea), but modern technology is bringing other forms of ecologically-friendly energy supplies on stream and higher prices will unlock shale oil supplies. The strategic importance of the Middle East has therefore declined, particularly since insignificant quantities of oil from the region go to America. And with that decline goes less need for geostrategic intervention by the US.

For the first time since the Six Day War in 1967 there is a realistic possibility of stability in the area, assuming the super-powers take a constructive approach to détente, and are willing to jointly police the region.

Regional implications of détente with Russia

The benefits of regional peace to the Middle East will, hopefully, materialise. Turkey is important, and will need to be considered as well. The coup attempt earlier this year, which was likely supported if not actually instigated by the US, has resulted in Erdogan tightening his grip on all opposition to his rule. However, Erdogan may have become Russia’s puppet, because the Russians appear to have tipped him off ahead of the coup and ensured its failure. If this is indeed the case, not only does he owe his power to Russia, but Russia can take it away. Under Russian influence, we can expect Turkey to continue to lean away from her impractical and unrealistic hopes of joining the EU, and instead pursue her more recent ambitions for membership of the Shanghai Cooperation Organisation. That would offer Turkey the best long-term future.

With Turkey’s future direction appearing to be decided, far more important is the effect of a reset with Russia on Europe and the European Union. As NATO members, European nations have gone along with Russian sanctions, which have been detrimental particularly to Germany’s economy. Their removal will give Germany a new long-term trade market of considerable potential, reducing her dependence on trade with other EU states, particularly France, Spain and Italy. The possibility of a new Hanseatic League, about which I wrote last March, is now on the cardsi. I was very surprised that it hadn’t been considered by the British Government and discussed with the Germans as a Plan B in the event of a vote for Brexit. However, the prospect of détente with Russia leads to a new Hanseatic League now becoming a realistic possibility.

Briefly, the trade route to Russia, both by sea through the Baltic and overland by rail and road, offers enormous trading potential for Germany, Britain, Holland, and Scandinavia. To this we can add Poland, Czech Republic, Slovakia, Austria, Hungary, and to a lesser extent, Romania, Bulgaria and Serbia. Furthermore, a northern trade route will link into China’s One Belt One Road project, further enhancing its importance. In short, the long-term future of France, Spain, Italy and Greece will be challenged by the rehabilitation of Russian trade, and potentially become one of relative isolation. An overriding reason why Russia will become so important is because of her partnership with China in the Shanghai Cooperation Organisation. Russia is, with sub-Saharan Africa, the source of natural resources for China’s planned industrialisation of all Asia. And as a resource-rich country, Russia will benefit from the continuing rise in raw material and energy prices. Détente with America and NATO will improve her economic outlook considerably, but she needs European commercial technologies and manufacturing techniques to help rebuild her own middle class’s wealth.

The underlying reasons a SALT3 will work for Russia are all there, and Trump is likely to take the view that Western Europe should not be his responsibility. There is little US trade with Russia, so trade negotiations for America are not in this mix, simplifying matters considerably. The trade bun-fight will be mainly confined to negotiations with China.

We can be sure that there will be a summit between President Xi and President Trump early next year, because Henry Kissinger, who is trusted by the Chinese, and despite his great age has been sent by Trump to arrange it. Reports in the press that Kissinger’s visit last week was just to calm things down after Trump’s telephone call with the Taiwanese leader are wide of the mark. Trump is simply establishing his negotiating position from the outset.

Trump is of the opinion that businessmen, not diplomats, should control trade negotiations. While diplomats might view this approach as naïve, the fact is Trump will be setting the agenda. Consequently, he is likely to be dismissive of past agreements, and impatient with the snail’s pace common in diplomatic trade negotiations. He will most likely wish to handle trade negotiations with China himself.

In order that trade negotiations progress without misunderstandings he has nominated Iowa Governor Terry Branstad for the post of Ambassador to China. Branstad has known President Xi through previous visits, and should be an effective communications channel. That’s the soft part of the deal. The hard part is Trump’s rhetoric, and his willingness to talk to Taiwan, which has established his opening gambit. His objective will be to get China to stop manufacturing copies of American goods, hacking into commercial websites to steal trade and technological secrets, and abusing intellectual property. It is likely China will agree to tighten up on this behaviour, in which case a new trade agreement can be reached.

While diplomats might find Trump’s style damaging to their careful construction of trade relations over time, there is little doubt his approach has merit. Success with China, even if it is limited in scope, is likely to be the outcome. It could alter not only the way trade agreements with China are set in the future, but could override the whole WTO process for other international trade relationships as well. And here again, we see the EU with its antiquated and obstructive approach to trade being most challenged.

At the end of the day, Trump’s language is one the Chinese will understand, and in return for backing off over Taiwan, they are likely to concede America’s beef over intellectual property abuses, hacking and commercial espionage. China’s focus is moving away from that sort of business anyway, towards higher-level services and improved infrastructure for its rapidly-growing middle classes, and she plans to spread the benefits of her industrialisation throughout Asia.

Furthermore, there are likely to be echoes from Trump’s big-bang on trade. Removing diplomats from the act of setting the trade agenda, disconnects trade from geopolitical considerations generally, allowing Japan, for instance, to join the Asian Infrastructure Investment Bank. It is even conceivable that the US itself might apply to join it at a future date, in which case, you heard it here first.

Trump’s trade negotiations with China, if successful, could have far-reaching effects. They could, of course, go badly wrong, but the Chinese are realists and will almost certainly adapt to the new reality. It is in their interests to strike a deal with Trump, swiftly giving him concessions that established diplomatic practice would be unlikely to yield.

Political and economic consequences for America

In the first half of 2017, Trump is likely to achieve both détente with Russia and a new, better trade deal with China. If so, his pre-election stance, that the American establishment was failing the people, will have been amply proven. Trump will likely be riding high in the opinion polls.

However, you cannot demolish the status quo without consequences. While much good will be achieved if Trump’s approach to Russia and China succeeds, the EU will be undermined both politically and financially. The European Union is already threatening to break up following Brexit, and Trump’s détente with Russia could give Germany a realistic opportunity to cast off from the European Project. The financial cost of a European break-up will be a difficult pill for Germany to swallow, and renewed trade links with Britain and Russia is her best shot at recovery. The future for the euro, whatever happens, is being challenged, more so if Germany decides to replace it with a new Deutschemark. If Germany replaces the euro, the Eurozone’s banking system and currency will be increasingly vulnerable to collapse. And if the Eurozone has a banking crisis, it will inevitably infect the global banking system, undermining America’s banks as well.

If we make the optimistic assumption that somehow the Eurozone and its currency manage to stagger on, there is a further problem for America. Industrial raw material prices have been rising strongly throughout 2016, measured in dollars, despite the dollar’s strength against other currencies. Trump’s stated ambition, to cause US infrastructure investment to rise significantly, coincides with China’s thirteenth five-year plan for building new Silk Roads and associated projects. Consequently, both America and China will be aggressively bidding against each other for raw materials in 2017.

Price rises in raw materials and energy will become a major factor driving the rate of price inflation sharply higher on America’s Main Street. Yet the ability of the Fed to raise interest rates in their traditional attempts to limit price inflation will be checked by the height of the nominal rate that will trigger widespread debt liquidation. Debt, as the cliché goes, is the gorilla in the room.

Trump’s basic problem is that he understands business, but not necessarily economics. He obviously thinks that trade deficits arise from unfair trade practices. It’s a common mistake, but they don’t. They arise from unfunded government spending and the expansion of bank credit. His fundamental belief, that fair terms of trade will make America great again is therefore badly flawed.

It is also difficult to see where he stands on monetary policy, if at all. In business, he has personally benefited from the expansion of bank credit, but does he understand the eventual price consequences of unlimited expansion of bank credit? Very few businessmen do, in which case we can only hope he will be well advised.

Past US presidents, from Herbert Hoover onwards, have been generally poorly advised on basic economic theory, thinking the state is well equipped to fix things that go wrong. The evidence for this error is found in the unremitting accumulation of public sector debt since the Wall Street Crash in 1929, confirmed when Roosevelt devalued the dollar against gold in 1934, and reconfirmed when Nixon temporarily abandoned all gold convertibility in 1971. That Trump might be better advised must remain a pipe-dream, unless contradicted by events.

Therefore, my broad expectations for 2017, the first year of the Trump presidency, is success in foreign and trade policy will be offset by rising price inflation and falling asset prices as interest rates rise (see my article dated 1st December, Credit cycles and gold), terminating in a credit-crunch from higher nominal interest rates. Good on the geopolitics, bad on the economy.


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TAALR Swift's picture

Q: Who gets the Deep Throat first?

A: Giving or receiving?

07564111's picture

the US has been receiving for 2 years ;)

The Saint's picture
The Saint (not verified) 07564111 Dec 18, 2016 9:42 PM

"The American deep state was responsible for moving missiles within range of Moscow, under cover of targeting Tehran, in this year’s escalation of a new cold war"

The author fails to mention an important point and implies that these are offensive in nature.  Not so.  These are DEFENSIVE missiles, NOT OFFENSIVE missiles. 

Dropthebomb's picture

Most people do not believe that these are defensive in nature. Why do you?

beemasters's picture

Because he read the missile labels: "NOT FOR OFFENSIVE USE...OR CHILDREN UNDER 10."

Déjà view's picture

Behind the ostensible government sits enthroned an invisible government owing no allegiance and acknowledging no responsibility to the people. To destroy this invisible government, to befoul the unholy alliance between corrupt business and corrupt politics is the first task of the statesmanship of today.

~ Theodore Roosevelt


Invisible/Deep been around a  l-o-n-g  time...

DavyRoySixPack's picture

L-o-n-g time .... perhaps the Deep State mountains will return to valleys ....

.... and the l-o-n-g-e-r time of balance will swing better times back towards populism .... for a season ...

new game's picture

one big asumption: arms dealers and sellers of human destruction(all mic entirties)are happy with shinking sales...

not so sure i can agree with this hope and change crap...

galant's picture

Describing any nuclear missiles as defensive weaponry is sophistry.

Their sheer offensiveness is the basis of their claimed psychological defense value.

Were the missiles Nikita Khrushchev placed in Cuba 90 miles from Florida defensive?

For defensive, think spikes on a porcupine's back. They don't leave home.



multicam mountainman's picture

0001 = defensive

1000  = offensive

DCon's picture

If a defensive missile hits a school or hospital nobody dies right?

SafelyGraze's picture

the deep state needs to bring racist netherlands to heel.

slavery is a very short period in the history of man, when brown men worked hard for awhile for us and not vice versa. slavery has made our small country great. there is nothing wrong with that. "slavernij heeft ons kleine landje groot gemaakt. daar is niks mis mee." -- geert wilders

you read that correctly.


where is Soros? where is NYT? where is CNN? where is NBC?

wake up and report the REAL NEWS about the racist netherlanders.


overbet's picture

You are on a board filled with deplorables who have been labeled racist for a long time. We dont give a flying fuck about you or your feelings. Stop re-posting your bullshit. Take it to wapo or huffington post homo.

SafelyGraze's picture

overbet, you have been here long enough to know when there is an implicit /s

get on board

zh isn't going to persuade MSM to cover pizzagate

however, zh could certainly generate enthusiasm enough for MSM to go into a frenzy about the santa-claus helper in the next few days before christmas.

and it would be Real News.

launched by zh.

to try to become indignant and infuriated about the netherlands. rail and point fingers at nyt and la times and cnn.

insist that they cover this crucial story about the insensitivity of the dutch.



SixIsNinE's picture

guess some folks are still gettin' bent out of shape about ol' MDB being gone ... place just ain't the same without 'im ...

maybe Overbet just got triggered and needs to kick a lil MDB type around a little bit ....

anyhows, thanks for widening it up for us there SG - i wasn't sure myself quite where you were going on that one :)

we zeros like to make the neighborhood a safe space where you can always Safely Graze


SafelyGraze's picture

more cowbell.

more outrage.

I am shocked -- SHOCKED -- that racist blackfacism is going on here in the netherlands. (scene from casa blanca)



OverTheHedge's picture

Phew! I thought you had gone all leftie on us!

This article is all very sensible and reasonable sounding, until "Already, the British have announced they will step up their presence in the region, which should also contribute to regional stability."

I didn't stop reading, but I did think "WTF!!!???

And then you went all "save the slaves" on us......much cognitive dissonance this morning.

Dancing Disraeli's picture

'slavery is a very short period in the history of man, when brown men worked hard for awhile for us and not vice versa.'

Just end it there.


nmewn's picture

"You must respect mah authoritah!" - Congressional perjurer, James Clapper

Rich Monk's picture

War crime charges for both the Bush and Obama regime!

webmatex's picture

I wish...

Chilling fake news - more dots:

#PizzaGate EXCLUSIVE I Found the Basement https://www.youtube.com/watch?v=h2J-I7DPUgs

Clintons, Soros Implicated In Norway
Child Porn & Macedonia Fake News - Part 4


Soul Glow's picture

WHat amazes me though is just how stupid people are.  Not the government and the banks running them, but the people of the world.  Americanss, and maybe Europeans too, have already forgotten that ISIS is the "syrian rebels" and are back buying the shit the MSM is selling them that "government forces" are killing civilians.  I mean that was proven false last year when Russia intervened.  Yet now the narative is "Russia bad" because of a few leaked emails and the shitshow is back on.  Unfuckingbelievable.

Krungle's picture

The amazing thing is that you can go back to MSM reporting from 2011 before ISIS was unleashed and they openly (if begrudgingly) admitted that Assad was massively popular (to the point where he could drive himself to mosque for prayers or walk around public markets with little security) and that the opposition was jihadist in nature. One need merely go through the archives of mainstream publications--and then there is a sudden change, with no explanation, wherein Assad becomes a "regime" and "brutal dictator" and the jihadists are merely rebels wanting "freedom." No mention of how Assad's father fought with the Muslim Brotherhood for decades, no mention of how the opposition wanted to bring a misogynistic sharia rule to a formerly secular country where Christians and Muslims and various ethnic groups had gotten along for the most part. There is also the fact that if anyone actually bothered to watch interviews with Assad they'd see he is totally mild mannered, kind of wimpy really, and the opposite of a despot (in fact this is precisely why he couldn't put down ISIS/AQ on his own, and the reason Saddam had to go first since Saddam would have beheaded the jihadists with their own swords, probably after putting them halfway through a woodchipper). 

07564111's picture

both Saddam AND Muammar Gaddafi had to go first. Libya + Lebanon would have taken the fight to right to Israel.

Omen IV's picture

this was posted elsewhere - may be true:

According to reports coming from Aleppo, Syrian units Special Forces, 15 December have found a bunker with high-ranking officers of the Western coalition led by the United States. A list of 14 names was published, which was leaked to the Syrian and Western media. Note that the list is not complete captured officers. "Due to the information received, the Syrian authorities have discovered the headquarters of high-ranking officers of the West. The servicemen were found in the basement of one of the squares in the eastern Aleppo. During the special operation units of the Syrian special forces managed to capture them alive. Some names and details have been provided by the Syrian public and journalists. Among the detained officers are representatives of: United States, France, Britain, Germany, Israel, Turkey, Saudi Arabia, Morocco, Qatar, etc. Given their nationality and rank, it should be noted that the Syrian government has a very good catch, which will use it during the talks with representatives of the coalition ", - the journalist writes. According to other Syrian sources, the number of arrested officers is much higher, and we can talk about the capture of several groups of representatives of foreign intelligence working in Syria. According to reports in the territory of Aleppo were arrested (except for the previously published list of 14 people): American officers - 22 British officers - 16 French officers-21 Israeli officers - 7 Turkish officers - 62 Sources say that at a closed meeting of the UN Security Council, which was held on Friday, December 16, 2016, discussed the issue related to the detention in Syria coalition officers led by the United States.


Duc888's picture



For an eyefull




Warning, extremely graphic

captain-nemo's picture

It's not very often we see such a collective and powerful attack by the globalists and the deep state that we are witnessing these days. In my lifetime i have never seen anything like it.

That is not a bad thing though, because it only strengthen my beliefs that Trump and his staff have to belong to the good guys.

Trump and his staff are anti establishments guys and anti globalists and so far no one of them are found to be CFR members . They hate the mainstream media and the political correctness that the globalists has forces on people and they want to change the power structure of NATO that the globalists have hijacked. They also wants to help the jews and strengthen their nation and prevent the muslems and the globalists from overtaking it. It also seems like they are interested in cooperating with Russia and China and threat them and their interests with respect. And best of all. He look upon the muslems and the immigration as a threat to the western civilization. Trump and his staff also rejects the mad environmental politics that the globalists have forced upon people, and he wants to reform the education system that has been hijacked by the globalists.  CIA,NSA and FBI and the justice system will also most likely be reformed.

ALL this is good and it's everything i ever wanted from a new american president.  He has even given us back "Merry christmas".

I for one had lost all hope. Now i find myself gaining hope. Trump is a gamechanger and everybody knows it. That's why the deep state and the globalists are furious and have brought in the big guns. They know they are about to lose most of their power and the power structure that they have built up the last decades.



thinkmoretalkless's picture

The deep state seems to be being slowly drag to the surface so even the most uninformed among us are beginning to see their stain on the water.

worbsid's picture

OT: Good one: 

MARIJUANA  & MARRIAGE  in Washington State

Recently, on a single day Washington State legislators passed two laws.


1. Legalized gay marriage and
2. Legalized marijuana.

Legalizing gay marriage and marijuana on the same day makes perfect Biblical sense.

Leviticus 20:13 says:

"If a man lies with another man they should be stoned."

Apparently, we hadn't interpreted it correctly before!

yttirum's picture

Yeah, I'm not sure China is going to be welcomed by Trump to rebuild Syria. Don't know why this article even states that. It's implying that the middle east should accept another super power on their land, to tell them what to do, own their businesses, etc.? By the way, China don't deserve shit! Them fucks can stay the fuck back in China. Jeebus! Did this author take a nunchuck to the dome?

07564111's picture

Try these Chinese bases/ports .. Djibouti, Gwadar, Greece and very soon Syria. Then there's Ethiopia and the money flowing into the rest Africa. Now, tell us exactly what you think Trump is going to do to China. ? Shit all is what he'll do.

webmatex's picture

It's implying that the middle east should accept another super power on their land, to tell them what to do, own their businesses, etc.?


China has had an invited military presence in Syria for months and are biting at the teeth along with Russia for the reinvestment and reconstruction stage - maybe early next year.

This will unite the countries of the area and lead to a prosperous and fast growing economis area.

Syria, Iran, Iraq, Libya, Egypt and probably Algeria and Tunisia - all old french and british colonies and creations, will unite through the Asian Infrastructure Bank, One Belt One Road, Brics, and eventually SCO.

They all have oil and will become a strong counterbalance to the Saudi/UAE puppet monarchys.

Those responsible for the mindless death and destruction across the region now tremble and pale, but continue, like the snowflakes, to deny the reality that is Trump and Putin.

Merry Christmas Vlad.

onmail1's picture

<-- Zooish Moneylords & MIC == deep state
The zooish act like locusts
they hijack a country's economic system by
setting up banks , take money from govt, (central bank)
& lend it at interest & manipulate customers
to snatch their properties then sell their property
at much high value & make profit(blood actually)
& also interfere in political system (for favorable climate)
& so when exposed they get evicted from one country after another
They want to punish Russia now for their old grudge
falsely assuming that USA is a much powerful country
and so they may bring the doom to the whole world
snatch their properties & assets now

quax's picture

Man, I'd hate to live in one of the Baltic states right about now.

Duc888's picture


Really good article.


The Fed is gonna fucking schlong Trump at it's earliest possible convenience though....

General Titus's picture

Neocon Globalist Liberal "Fox News" recently did a very poor 'Cover" story for their fellow Globalist liberal Democrats, on the PizzaGate story.  Now 2 decades ago, all the "mainstream" Global Liberal liars in the media hide the "ChinaGate" treason which should have nailed the Clinton Administration & the DemocRat Campaign Finance Committee.  The Clinton Administration & the DNCFC tooktens of millions in illegal bribes from Communist China in return for Guidance Missile Technology, Permenant Normal Trade Relations (PNTR) & entry into the newly created WTO, which destroyed tens of millions of US jobs, and lost tax ratables in the US and created China into the super polluting nation which literally owns us now. Thats why they made jimmie Kimmel apologize for discussing the debt we owe China, and against Trump for reminding the g----, oops sorry I mean American people about that truth.  When do we march?

supermaxedout's picture

I share many of the views of the author but not as far as the Euro/DM and Germany is concerned.

Germany is not only geographical but also economical the heart of Europe. The Euro is going to stay because even today "Euro" is just another name for DM. And till now there are only very few people within Euroland really wanting to go back to the times of small aND THEREFORE VULNERABLE CURRENCIES of the past. Before the Euro there was only king Dollar and all the other currencies had to obey whatever the Fed had in its mind. The Euro is the cornerstone of European independence it will only fall when Germany falls. And that is not to see as long there is not another war in Europe involving Germany against other European states.  So the Euro is going to stay and will be also in the future one of the great and powerful currencies in the world. Yuan, Euro, Roubles are clearly the winners of the curency war while the Dollar, the Pound and the yen became weaker. 

But that might be a good thing soon for the US because a devalued Dollar opens the possibility to pamper the local busineses. At least that was the advice given to the Greeks, Spaniards, French, and all the other Euroland member states (except Germany) in the past.

Now we might have a chance to see how the medicine praised on many occasions during the last years for the PIGS etc. countries is actual going to work in the US.

Currency devaluation is working like a pain killer. It helps but it does not cure. Therefore the course of Euroland was not so bad. External competetive while internal stable. And the Euroland member states do not have to fear anymore pressure from Wall Street banks (or Rothschild banks) because the ECB owns now more and more of Eurolands souvereign debt at very affordable interest rates. 

The savers do get not much but they are more than compensated by low inflation if one takes a realistic view on the situation.

Great job Mario you are the banker of the century defending the wealth of Eurolands citizens against the attacks of the predator bankers.

Klatschman's picture

The deep state and obama have given the world the discrace in Syria, the holacaust of this generation and a scenario where Russia, Syria and IRAN will meet in Moscow to determine the settlement agreement. This after obama's 'red line' in Syria was ridiclued as another 'pajama boy' positon. kerry meanwhile is wind surfing his way far away.

MEFOBILLS's picture

This statement by author has within it, an economic trap:

 Russia will benefit from the continuing rise in raw material and energy prices. Détente with America and NATO will improve her economic outlook considerably, but she needs European commercial technologies and manufacturing techniques to help rebuild her own middle class’s wealth.


Middle class wealth depends on making goods.  Goods become prices, and prices fetch money from the market.

If Russia is the energy and material provider, then their earth is being exported.  When earth is exported, then other countries are making goods as prices (from that earth).

Example:  Rare Earth Metals are exported from Russia to Japan and Germany.  Japan and Germany then make high value catalytic converters, or platinum reactors ...etc.  The high value add redounds to German/Japan labor, thus building a working middle class.

Russia had recent experience with an extraction economy during Yeltsin years.  Putin has complained how that was a disaster as Russian's stopped having children.  More children were lost to not being born, than Russian's killed in WW2.

Russia economy, especially the land's minerals, had been grabbed by Oligarchs.  Yuko's is a good example of our (((friends))) machinations toward Oligarchy.  Be on guard against extraction economy, it is civilizational suicide.

A level of autarky is required to insure that high level goods are manufactured in your home country.  

ACP5gTG's picture

Doesn't mention anything about the future of the petro-dollar . . .