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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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.

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.

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.


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?

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.

goldfish1's picture

Banning transactions above $2500EU ?


They are really pushing those digit cards.


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?

TBT or not TBT's picture

Revelations, the original ZH post.

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.

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.

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

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.

sun tzu's picture

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

donsluck's picture

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

Yes_Questions's picture



This damned soul cares.

Bolweevil's picture

I'm with the replicant.

CrockettAlmanac.com's picture

we are not concerned with your sole


What a heel.

CvlDobd's picture

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

Gene Parmesan's picture

You gotta pay the troll toll to get in.

Midas's picture

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

lemonobrien's picture

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

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 ...

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.

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.

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.


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.

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.

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


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?

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. 

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.

i-dog's picture

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

Badabing's picture

I'm looking for reson

what do you have to trade?



sun tzu's picture

Don't forget Western Europe....

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.

mkkby's picture

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

Agent P's picture

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

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].

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.

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).

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.

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.





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.

CompassionateFascist's picture

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

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!

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.



ironsky's picture

Want to provide some detail on that engineered cakewalk?

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.