Shifting to a Multi-Currency System and Selling Crude on the Chinese Benchmark
Back on August 11, 2017, Donald Trump made the comment that US forces would take military action in response to the growing political unrest in the South American nation of Venezuela. As a failed socialist state, the Venezuelan people have been suffering under a slow motion economic collapse, as the government runs out of money and commerce grinds to halt in many regions.
It was not clear why America would need to take military action, or invade Venezuela, as a response to this domestic crisis. But the fact that Venezuela has the largest crude reserves in the world would likely have been an important part of any strategic decision making.
When we add to that understanding the development, and imminent role out of the Chinese crude benchmark, a bigger picture begins to emerge. Venezuelan’s President Maduro has made his own comments over the last few days regarding the the nations monetary situation and forthcoming changes to domestic policies:
“Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar.”
POM readers will understand this comment in the proper context, as it references the emergence of the multi-currency system to replace the unipolar USD based system. This system will work in conjunction with the SDR of the International Monetary Fund to substitute and diversify the large accumulation of USD reserves in the world.
Referencing a possible reason for the a US invasion of Venezuela, leftist President Maduro also stated the following:
“If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro.”
These are both important statements. Taken together they are strongly suggesting that Venezuela will be working towards establishing a regional basket of currencies based on the Optimal Currency Area of South America. We have covered the OCA’s in previous articles over the years, but are now beginning to see some preliminary implementation and discussions about them.
Such a South American regional currency would be a huge threat to the Anglo-American establishment. The efforts which are being made to surround and control the Eurasian continent, which is a much larger threat, would suggest that the Anglo-American establishment will do anything to prevent South America, located on its doorstep, from developing a regional power structure which could align itself with the developing Eurasian Union.
Ongoing geopolitical crisis, such as Syria, North Korea, Eastern Europe, are all about the Anglo-American establishment maintaining their beachheads against the Eurasian Union. Venezuela is not in a good place based on these conclusions.
In addition, Venezuela could sell oil for yuan on the Chinese crude benchmark. This would be another blow to the USD and the Anglo-American establishment. It is extremely unlikely that the power interests in the West will not act to prevent Venezuela from establishing a dollar alternative in South America. When Qaddafi attempted to set up a similar system for North Africa he was taken out and the nation of Libya was decimated.
Brazil is the obvious and immediate partner in this strategy as they are a member of BRICS and will provide direct communication and access into the BRICS institutions which have been created over the last few years.
These announcements coming during one of the largest hurricanes to ever hit America might not be a coincidence. The timing of such statements are well-thought out and are worded carefully to illicit specific types of responses from the target. How Trump and America responds will not be visible through regular channels. We will have to watch for movements against Venezuela which do not mention the dollar or any new international payment systems.
A military move against South American interests will be sold as humanitarian. This is standard textbook scripting from the Anglo-American establishment. The poor suffering people of Venezuela will be shown on television and the need to remove the vilified government which is doing nothing to assist them will be hammered into the mass consciousness of the West.
Based on the previous patterns and scripting which has taken place over the last few decades, we have no reason to think that such military action will not be taken by America. The fact that Trump planted a seed a month ago would suggest that they were aware of the monetary movements and goals of Venezuela.
Trump’s part in the Anglo-American establishment is to placate and negotiate with them from within the halls of power. Those Anglo-American interests span across banking, business, academia, and media. The power they weld is massive and cannot be taken for granted.
Where Venezuelan allegiance resides right now is hard to determine. Maduro’s message would suggest they are more aligned with powers outside of the Anglo-American establishment, but its leftist-socialist government would suggest otherwise. Venezuela could be used to drive a wedge between Trump and his international supporters outside of the Anglo-American establishment. We’ll have to keep watching for more information. – JC
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JC Collins can be contacted at email@example.com