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Michael Krieger On The Rebirth Of Barter

Tyler Durden's picture


Via Michael Krieger of 'A Lightning War For Liberty' blog,

Justice in the hands of the powerful is merely a governing system like any other. Why call it justice? Let us rather call it injustice, but of a sly effective order, based entirely on cruel knowledge of the resistance of the weak, their capacity for pain, humiliation and misery.
- Georges Bernanos


Outwardly we have a Constitutional government. We have operating within our government and political system, another body representing another form of government, a bureaucratic elite which believes our Constitution is outmoded.
- Senator William Jenner
(1908-1985) U.S. Senator (IN-R)


The Final Act of the Uruguay Round, marking the conclusion of the most ambitious trade negotiation of our century, will give birth – in Morocco – to the World Trade Organization, the third pillar of the New World Order, along with the United Nations and the International Monetary Fund.
- Government of Morocco
April, 1994   Source: New York Times, full page ad by the government of Morocco


The Rebirth of Barter
One of the most important articles I have read this week comes from Forbes contributor Gordon Chang.  In it he states that China is preparing to avoid U.S. sanctions on Iran by paying for oil with gold.  Not only that but he also mentions that China has already been bartering with Iran to get a hold of petroleum.  He states:

So how can Beijing keep both Iran’s ayatollahs and President Obama happy at the same time?  Simple, the Chinese can avoid the U.S. sanctions through barter.  China has already been trading its produce for Iran’s petroleum, but there is only so much gai lan and bok choy the Iranians can eat.  That’s why Iran is also accepting, among other goods, Chinese washing machines, refrigerators, toys, clothes, cosmetics, and toiletries.


The barter trade works, but Iran needs cash too.  As it is being cut off from the global financial system, the next best thing is gold.  So we should not be surprised that in late February the Iranian central bank said it would accept that metal as payment for oil.   Last year, China imported $21.7 billion in Iranian oil and exported $14.8 billion in goods and services.  As the NDAA goes into effect, look for Beijing to ship gold to Iran to make up the difference.

Thus, the leadership in America in its infinite stupidity has actually accelerated the demise of the U.S. dollar as the world’s reserve currency.  After its “kinetic action” in Libya succeeded in toppling the regime there, Washington’s geopolitical hubris grew and it has attempted to muscle Iran into a corner.  Instead, all it has done is alienated our “allies” that need Iranian oil to survive and in the process quickened a move away from the dollar to settle certain transactions.  Read Gordon’s article here.

In a similar move on a more micro level, the government of Spain in a similar desperation has banned the use of cash transactions above 2,500 euros (read this great article here on it).  How do you think citizens are going to respond to this?  People are already in the streets.  They are not pleased with what is going on.  Then the government is going to tell them they can’t use cash amongst themselves so that the authorities can track every single thing they do and bleed them with taxes until they are slaves on a banker plantation.  Everything is going to go black market and to a barter system.  It will happen country by country as governments get increasingly desperate and the authoritarian clamp down continues.  It will happen on an increasing level until all of these house of cards bureaucratic states fail and something new is reborn.  In case you haven’t seen it yet, this one town in Greece is already leading the way. This story outlines what will be a mega trend globally over the next decade.

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Fri, 04/27/2012 - 17:48 | 2381221 Tsunami Wave
Tsunami Wave's picture

But people in government may believe barter is bad because you avoid paying taxes, and you don't use cash for anything.

Fri, 04/27/2012 - 17:55 | 2381228 The Alarmist
The Alarmist's picture

I thought cash was the terrorist currency of choice. Didn't the FBI tell us so? all I know is that it is a huge waste of my time to stand behind someone in Starbucks who needs 3 minutes to pay for his mocha latte with a debit card. Just another form of taxation paid in the value of my time.

Fri, 04/27/2012 - 18:30 | 2381259 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Max Keiser said that Mike Krieger told him about the Buy Silver - Crash JPM Movement that was started here, on Zero Hedge, so I thought I would take the liberty to post the blog of the person who started the Buy Silver Movement on Mike's post, here on Zero Hedge.


Fri, 04/27/2012 - 18:53 | 2381346 Pladizow
Pladizow's picture

Even for oil, I dont see China giving up its gold - at least not yet.

Unless they get it immediately back in the form of payment for something else - a phantom transaction.

What, China ships its gold to Iran, so that the US can later invaid and take it along with the oil?

Fri, 04/27/2012 - 19:03 | 2381367 NotApplicable
NotApplicable's picture

It's all a question of price. They keep the gold in hand until enough barrels are offered to make it worthwhile. As much value as their is to be gained from holding wealth through a dollar collapse, they still have to have sufficient energy to keep their society from collapsing along with it.

It's a very fine line. One which we all walk.

Fri, 04/27/2012 - 19:24 | 2381393 goldfish1
goldfish1's picture

Banning transactions above $2500EU ?


They are really pushing those digit cards.


Fri, 04/27/2012 - 19:53 | 2381398 hedgeless_horseman
hedgeless_horseman's picture




Paying the Imperial Tax to Caesar, from Mark 13

13 Later they sent some of the Pharisees and Herodians to Jesus to catch him in his words. 14 They came to him and said, “Teacher, we know that you are a man of integrity. You aren’t swayed by others, because you pay no attention to who they are; but you teach the way of God in accordance with the truth. Is it right to pay the imperial tax[b] to Caesar or not? 15 Should we pay or shouldn’t we?”

But Jesus knew their hypocrisy. “Why are you trying to trap me?” he asked. “Bring me a denarius and let me look at it.”16 They brought the coin, and he asked them, “Whose image is this? And whose inscription?”

“Caesar’s,” they replied.

17 Then Jesus said to them, “Give back to Caesar what is Caesar’s and to God what is God’s.”

And they were amazed at him.

From the Book of Revelation, verses 16-17, the last book in The Bible, thought to be written by the apostle John.

It also forced all people, great and small, rich and poor, free and slave, to receive a mark on their right hands or on their foreheads,17 so that they could not buy or sell unless they had the mark, which is the name of the beast or the number of its name.

What's in your wallet?

Fri, 04/27/2012 - 20:03 | 2381439 TBT or not TBT
TBT or not TBT's picture

Revelations, the original ZH post.

Fri, 04/27/2012 - 20:43 | 2381502 CIABS
CIABS's picture

Hey Mike, how about "born" rather than "reborn"?  I don't see much that I would like to see reborn when the time comes.

Fri, 04/27/2012 - 21:44 | 2381583 Thomas
Thomas's picture

Classic: "Who run Bartertown?"...


Fri, 04/27/2012 - 23:17 | 2381697 forexskin
forexskin's picture

Everything is going to go black market and to a barter system.  It will happen country by country as governments get increasingly desperate and the authoritarian clamp down continues.  It will happen on an increasing level until all of these house of cards bureaucratic states fail and something new is reborn.

when the corrupt fall, a little push to move things along a bit more quickly - barter helps starve them. they can print and tax to take our productivity, but only if they can see it, like when we use their currency

this is, and has been historically, just one of many effective responses to tyrrany - good news.

Sat, 04/28/2012 - 00:50 | 2381762 Oh regional Indian
Oh regional Indian's picture

Forex, the reality probably is that the "dream scenario" for th ePTB is a small, wild, bartering community doing their thing while hundreds of millions get stamped.

Northern Europe, the home of Mobile Everything is clearly going CAshless. Norway, recently Sweden. In India, coinage is fast going all aluminium and tin.... bigger and bigger denomination banknotes....

Same story everywhere.... The fact that they can even dream of corralling a country of INdia's size and diversity should be a tell. GST/VAT/Unique ID number, Cell phones for everyone.

You will really HAVE to disconnect to disconnect.

Unless a big ole CME comes and puts electronics in it's place.


My Music on le Tube

Sat, 04/28/2012 - 07:51 | 2381958 buckethead
buckethead's picture

Scary truth.


Another point which I have yet to see presented is how so many Europeans demand greater social services/pensions/mass transit... get them and don't like the tax tally at the end of the day.

Things and stuff are neato until the bill comes.


simplistic, I know, but still very relevant.

Sat, 04/28/2012 - 10:48 | 2382169 sun tzu
sun tzu's picture

They want someone else to pay the bill, preferable in some other country or even the future generations.

Fri, 04/27/2012 - 20:26 | 2381471 donsluck
donsluck's picture

Who cares? This is ZH, we are not concerned with your sole (sp?). Just another irrelevant Christian fundamentalist.

Fri, 04/27/2012 - 21:45 | 2381584 Yes_Questions
Yes_Questions's picture



This damned soul cares.

Fri, 04/27/2012 - 22:48 | 2381667 Bolweevil
Bolweevil's picture

I'm with the replicant.

Fri, 04/27/2012 - 22:54 | 2381673 CrockettAlmanac.com
CrockettAlmanac.com's picture

we are not concerned with your sole


What a heel.

Sat, 04/28/2012 - 01:29 | 2381795 CvlDobd
CvlDobd's picture

"You gotta pay the troll toll, if you want inside this boys hole!"

Sat, 04/28/2012 - 08:48 | 2382010 Gene Parmesan
Gene Parmesan's picture

You gotta pay the troll toll to get in.

Sat, 04/28/2012 - 10:38 | 2382156 Midas
Midas's picture

My avatar does not appreciate you getting the lyrics wrong.  There is no rape scene.

Sat, 04/28/2012 - 01:44 | 2381806 lemonobrien
lemonobrien's picture

my gold coin has a dead indian on it; guess its mine now.

Sat, 04/28/2012 - 04:46 | 2381882 Cast Iron Skillet
Cast Iron Skillet's picture

I have one of those, too. How do you know he's dead? ... I always figured I'd meet him someday ...

Sat, 04/28/2012 - 11:50 | 2382269 Antifaschistische
Antifaschistische's picture

What's in my wallet?  Cash.  

It's not the time for those of us who know what's coming to start trading washing machines for gasoline.   It's time for us to use cash only, and shop at independent owner operated businesses ONLY.   Leave the rest to the business owners.   This is our underground today.   Sure, I've got metals and if you want to buy your buddies pistol for 1/2 an oz of gold that's cool.  It's just not necessary and I'd rather keep my gold.

I spent a week on the big island of Hawaii last month and saw at least 100 places with this sign out front "cash only".   When I see that, I'm there.   When Hawaiian's start experiencing the wrath of the Tax Collector that's when they should resort to torches.  And when we all sit on a jury of people who are fighting back against the machine we ignore the judge's "instructions" and say "not guilty"!!  That IS our power, and it's the ONLY power we have left...and when they take that power away, which they will, then we know what's next.

Fri, 04/27/2012 - 19:34 | 2381404 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I agree Plad, but if this is going to happen, my guess is that the BRICS States are lining up future trade deals by using payments other than dollars.

Fri, 04/27/2012 - 20:56 | 2381520 AldousHuxley
AldousHuxley's picture

American hegemony rests on four powers of empire:

  1. Control of energy
  2. Control of currency
  3. Control of food & labor
  4. Control of military


Poor countries found out if they band together they don't need Uncle Sam after all.


Energy: Iran and Russia

Food: Brazil

Labor: China & India

Military: Russia


Only thing they are lacking is the common currency. With internet and computers, they can easily create their own exchanges.


Fri, 04/27/2012 - 21:20 | 2381538 BigDuke6
BigDuke6's picture

Good. Its time for it to end.

i'm an isolationist more every day.

leave them to it and let them fuck camels and wank over jerusalem.

Sat, 04/28/2012 - 05:32 | 2381899 mc_LDN
mc_LDN's picture

Well its really 2.

1 - Currency

2 - Military Full Spectrum Dominance - this covers resources such as energy, food and water

So the BRICS are knocking out Pillar 1.

Sat, 04/28/2012 - 08:27 | 2381981 SWRichmond
SWRichmond's picture

Caucasus, bitches.  The next big thing will be in the Caucasus.  Everyone with a big military has a stake there: Europe, China, Russia, U.S.  The other thing to watch for is the growing Chinese naval presence / influence in the western Pacific and the IO.

Don't let your children enlist.


Excellent Oil Transport map (pdf), can be magnified: http://mondediplo.com/IMG/pdf/LMDjun07CaucasePR.pdf


Sat, 04/28/2012 - 13:12 | 2382371 Cathartes Aura
Cathartes Aura's picture

Don't let your children enlist.

worth repeating.  don't encourage anyone to volunteer to kill other people, and their children - while being filled with poisons used on those other people, and used by the pharma corps(e) to test pysche drugs and the insane inventions of  biowarfare on.

why on earth would anyone let this happen, and especially to their own?

Sat, 04/28/2012 - 12:17 | 2382300 ironsky
ironsky's picture

What do those counytries have in common for me? I wouldn't be caught dead in any one of them. However that doesn't invalidate your point. Many people have been caught prematurely dead in all of them. 

Fri, 04/27/2012 - 19:44 | 2381412 NewWorldOrange
NewWorldOrange's picture

"Even for oil, I dont see China giving up its gold - at least not yet."

China should just trade Iran nukes for oil. Then Iran has 'em and this whole Israeli proxy war bullshit is a moot point and we don't get in another expensive war based on a bunch of lies.

Fri, 04/27/2012 - 21:01 | 2381526 AldousHuxley
AldousHuxley's picture

Why would China give Iran nukes when comrad Russia is already doing that?



Fri, 04/27/2012 - 21:48 | 2381550 i-dog
i-dog's picture

One can never have too many nukes. Just ask the Axis of Evil powers -- the US and Israel....

Sat, 04/28/2012 - 07:53 | 2381964 Badabing
Badabing's picture

I'm looking for reson

what do you have to trade?



Sat, 04/28/2012 - 10:50 | 2382174 sun tzu
sun tzu's picture

Don't forget Western Europe....

Fri, 04/27/2012 - 21:18 | 2381554 NewWorldOrange
NewWorldOrange's picture

Interesting. Sounds like Russia may be at the very least providing them with materials and equipment for reactors. Not sure that's news. Gotta' wonder if the CIA/Mossad had a hand in that plane going down.

Fri, 04/27/2012 - 22:02 | 2381615 mkkby
mkkby's picture

Already done.  Wake up.  China to Pakistan to N. Korea to Iran.

Sat, 04/28/2012 - 00:28 | 2381749 Agent P
Agent P's picture

Reminds me of the time I flew from Minneapolis to Seattle via Atlanta.

Sat, 04/28/2012 - 08:03 | 2381973 DutchR
DutchR's picture

Actually it was  the US that gave nuclear technology to Pakistan.

Abdul Qadeer Khan was working in The Netherlands (at Urenco) and gathered information on nuclear technology to build a Islamic bomb.

The Dutch had him under surveillance but where asked ordered (by US) to let him go to Pakistan so they (cia) could have better knowledge of the Pakistani nuclear smuggling operations, right [rolleyes].

Fri, 04/27/2012 - 23:03 | 2381664 cranky-old-geezer
cranky-old-geezer's picture



What, China ships its gold to Iran, so that the US can later invaid and take it along with the oil?

US will not invade Iran.

China and Russia have drawn the line at Iran.  US invades Iran, it'll start WWIII, and US will lose (and they know it).

Cutting Iran off from US dollars is all this bankrupt government can do, and like the author says, Russia and China thumb their noses at America, using their currencies to buy Iranian oil, using gold, trading products for petroleum, etc.

No, Iran does not need US dollars, not when Russia can supply all the military stuff Iran needs, and China can supply anything else Iran needs.  

That's the point.  Iran doesn't need anything from America anymore, and it doesn't need US dollars either.

And no, Iran isn't afraid of US military action either, not when Russia and China are firmly on their side and have warned America do not invade Iran or they will destroy America.

Iran might retaliate by boycotting euros, demanding payment in yuan or gold.   This would put Europe in a real bind, unable to buy Iranian oil, as well as enhancing the status of the yuan in international trade.

There is no way a debtor nation like America can keep calling the shots around the world.   The US dollar is getting so weak now, a major geopolitical event could collapse it overnight. 

Russia and China working together are capable of such an event, and both would love to see the dollar collapse.

Sat, 04/28/2012 - 07:39 | 2381956 Marco
Marco's picture

China can't handle collapse of the dollar ... to allow the dollar to collapse would mean they would have to significantly increase their internal consumption or face an economic collapse.

The billionaires in the diet don't want their peons to get uppity, they like them starving and eager ... of course they don't really want to get paid in devaluing dollars either, but for the moment that's still what they are going for. They imagine themselves in between a rock and a hard place (with the obvious solution, sharing a bit of the wealth, not even entering their thoughts).

Sat, 04/28/2012 - 10:08 | 2382104 DaveyJones
DaveyJones's picture

China can't handle the collapse of the dollar and can't handle not having the dollar collapse. Their actions reveal which option they're betting on.

Sat, 04/28/2012 - 00:07 | 2381739 GlenD
GlenD's picture

Russia might have something to say about that, they have already massed troops on Irans northern border. Not to mention the Chinese general that has promised nucleur retaliation if Iran is attacked.

But idiots think US is unbeatable. They don't realize the cake walk into Iraq was nothing but a show for the sheeple. Gadaffi wrote in his will that he was offered asylum which he refused. Did Hussen refuse? Was it really Hussein they hanged? Truth can be stranger than fiction.

Iran has 3.8 million in their army that have experienced the taste of US domination. 

China has the industrial might to win a conventional war against any nation of earth.

US air force has an ageing fleet of jet fighters, its oldest in history. Its carrier fleet were surprized recently by a surfacing of Chinese submarine inside its fleet, totally undetected. Its replacement of 30 yo nucleur missles delayed because unskilled engineers. US can't even build bridges without importing chinese workers!

The US will be real sorry for starting WW3. They cannot win a convential war so it will end-up nucleur.





Sat, 04/28/2012 - 00:32 | 2381752 i-dog
i-dog's picture

"the cake walk into Iraq was nothing but a show for the sheeple."

Not true. The neocons have fallen right out of favour in the Central Planning Committees™ since they fucked up in Iraq.

Sat, 04/28/2012 - 02:14 | 2381818 CompassionateFascist
CompassionateFascist's picture

Not true. Romney is completely cacooned by neo-conz.

Sat, 04/28/2012 - 07:34 | 2381832 i-dog
i-dog's picture

Not true. The neocons in the CNP are doing everything they can to diminish Romney and get Santorum back into the race. Check out their mouthpiece sites.

The fact is that the neocons are out of favour and the left hand of the cabal will be continuing with Obomber. Romney is a weak-as-piss Obomber-wannabee tool.

Hillary is the only neocon in the mix at the moment!

Sat, 04/28/2012 - 08:46 | 2382005 Oh regional Indian
Oh regional Indian's picture

What about the story of Jeb Bush and the brokered convention?

That, would be something. Yet another Burning Bush Atop Capitoline Hill.

Plus the cake walk in Iraq was totaly engineered. No way that many battle hardned troops just gave up.

Most of the "fighting" has been with militia, not military. 

I'm sure many liked to believe the story of the Iraqui Republican Guards coming knees knocking at the might of the US army bearing down on them. Too funny.



Sat, 04/28/2012 - 12:20 | 2382301 ironsky
ironsky's picture

Want to provide some detail on that engineered cakewalk?

Sat, 04/28/2012 - 14:09 | 2382442 mick_richfield
mick_richfield's picture

I especially enjoyed the part of the cake walk that involved the use of a fuel-air weapon that made the Brits think we had used a nuke.  They were furious at not being notified -- it blinded one of their spy satellites. 

The Marines had to wait a while before going through the hole that was opened in the Iraqi lines, to make sure that the air would be breathable.  Pussies.  Real men breathe pure carbon dioxide and ask for more!

This, by the way, was the point at which all the military geniuses on CNN were saying that we would lose at least 5000 troops in the invasion.  We lost 38. 

And the frosting on that cake must have been 73 Easting -- the largest armored battle since WWII.

Right, ORI.  Too damn easy.  We'll make sure the next one looks harder.

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