Venezuelan Invasion – “A New System of International Payments”

Economics, Geopolitical, Premium POM15 Comments

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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15 Comments on “Venezuelan Invasion – “A New System of International Payments””

  1. The Venezuelan story began when they wouldn’t sell their gold to Goldman Sachs. The “economic hit” was put into place and the story has unfolded from there. Your analysis of the go-forward situation seems logical and well grounded. It will be interesting to watch how this aspect of the human tragedy unfolds. These Western criminal oligarchs’ time seems to be running out – how long it will take is anyones guess, but it appears the EAEU, BRICS, BRI and SCO have their sights set on sooner rather than later, especially in light of some of the news coming out of the recent BRICS Summit.

  2. “The United States, will join forces with several South American countries to carry out military exercises in the Brazilian Amazon with the aim of increasing cooperation among the various armed forces.

    The joint military exercises are named AMAZONLOG17 and will include the security forces of 16 countries. Brazil, Colombia, and Peru, will be providing troops and logistics, while the United States will be providing only logistics.”

  3. “Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar.”

    Given the history of USA invasions and subjugation of Iraq and Libya because their respective leader rejected the US Petro-Dollar, I can understand why Venezuela might likely be invaded and subjugated.

    Based on history, the Neocons and MICC enjoys invading, killing, and controlling the remaining brown people they conquer.

  4. What a mess, having the status of the worlds reserve currency seems to come with great blessing and a horrible curse. Just look what the US has become, for all it’s greatness in fiat wealth and military power, a debtor nation, run lawless, disrespected and despised around the world. With a population gorged on GMO’s, satiated on fluoridated water, and drugs , drugs, drugs of all manner. Drugs from poppy farms to big daddy pharma flowing like a currency through our lives, our veins and our minds. We are fragmented to the point that we all wander about with our heads bowed down and faces plastered into the screens of an iphone, instead of walking tall looking each other in the eye.

    Some say, I personally do not know for sure, that the nation blew it’s chance for greatness in 1848 when the under tutelage of puppet James K Polk. We shipped a contingent of US marines, that maritime force of the day, down to the Halls of Montezuma, and with guns to the Mexican’s heads, the Treaty of Guadalupe Hidalgo was signed. I wasn’t there but I do remember a conversation I overheard between General Santa Anna and Capitan Poncho Dallas, it went something like this.

    Poncho, “God damn Santa you gave most of the country away. What the hell??”

    Santa, “Poncho my good man, my brave and daring, faith full Capitan, you not only had to be there. Sure, we were under the gun, they called it gun boat diplomacy, it was a very sensitive situation. You know I would give my life for our beloved Mexico. But there is something else at work here, some kind of a force, I can’t exactly explain it. You would have to take a trip to New York City to see and begin to understand what I’m trying to tell you.”

    Poncho, “What are you trying to say, My honorable Santa??”

    Santa, “This gringo he is something else, working from can’t see to can’t see. They have something called a dead line, and if they can’t meet it the torches come out and they work 24 hours a day. Working, working, working, building, building, building. Roads, canals, bridges, railroads. All manner of engineering wonderment, they brought a science with them and their money has no end, it is like a magic. I swear Poncho, this gringo, this fucking gringo he is like a beaver on meth, nothing can stop him. Anything gets in his way he either kills or destroys. It doesn’t matter 50 degrees below zero, or 115 degrees in the shade, there is no siesta, no fiesta, the gringo he drinks, hell he drinks like crazy but he doesn’t seem to enjoy it, it is like he can’t relax.”

    Poncho, “Sum a bitch Santa, what are we do to??

    Santa,”Here is what I reckon, now you listen to me Poncho and you listen good. Then you pass it on and on. OK? We still have a great piece of country, coast lines up the ass, and that nice little Baja. So we cool it for now, let that loco gringo do the heavy lifting, he seems to thrive on it. When he is done with the roads, rails, dams, and irrigating, and all manner of wonderment, then we will begin to go home. We will go home.”

    Poncho, “Damn that ain’t bad Santa, or at least it could be worse. Huh?”

    Santa, “Si, in the meantime walk with me Poncho, I want to show you the gorgeous palomino’s and the beautiful silver inlaid saddle they gave me.”

    Poncho, “Fucking Gringos.”

    Santa, “Si.”


    1. Thanks Rossa. I was reading that one last night and the only thing I kept thinking was “Jim, Trump already knows the SDR transition plan and wants the dollar to depreciate.”

      The Trump admin has openly stated the need to depreciate the dollar. We have explored the benefits for Americans with a depreciated dollar. So you’re right. He is being a little doom and gloom. The timeline he presents is also unrealistic. The full substitution process will take years, if it’s ever fully complete.

  5. I’m w you JC. I think it will take longer than Mr. Rickards says, but when I read that article yesterday all I could think about was all you have written!! I am super grateful for all your insights. Never gets old and helps me see things so much more clearly.
    “It’s so hard looking through all these lies made of wool”

    1. Thank you Dane,

      I watched President Trump’s speech on Iran which he talked about for over 5 minutes was very interesting. In fact, his message is that the end of the Mullahs regime has arrived and his praise of Iranian people and how much they have suffered at the hands of the Pan-Islamist terrorism created by Khomeini since 1979 is unique since 1979 when the Globalists established Pan-Islamism alongside Marxist International as their favoured tool of destruction. Watching the speech several times, I came to the conclusion that a changeover from within the Iranian government is now on the horizon. Trump knows very well that Iranian civil society can and will be able to create a democratic government structure as long as they are supported and not hindered. I also felt that North Korea debacle will be resiolved either through China or in an indirect way by the US. Trump also knows the use of military will be the last resort to make North Korea as well as the Iranian Mullahs in check and most likely it will not be necessary.
      I felt his speech was accurate, to the point and realistic…and perhaps the best Presidential speech in the past 40 years!

      Here’s Trump’s speech begins from 17:00.

      1. I agree Carpe Diem. When he was speaking about Iran I had you in mind and felt a sense of joy for this opportunity given to the Iranian people.

        “The Iranian government masks a corrupt dictatorship behind the false guise of a democracy. It has turned a wealthy country, with a rich history and culture, into an economically depleted rogue state whose chief exports are violence, bloodshed, and chaos. The longest-suffering victims of Iran’s leaders are, in fact, its own people. Rather than use its resources to improve Iranian live, its oil profits go to fund Hezbollah and other terrorists that kill innocent Muslims and attack their peaceful Arab and Israeli neighbors.

        This wealth, which rightly belongs to Iran’s people, also goes to shore up Bashar al-Assad’s dictatorship, fuel Yemen’s civil war, and undermine peace throughout the entire Middle East. ”

        And hear his call,

        “If we desire to lift up our citizens, if we aspire to the approval of history, then we must fulfill our sovereign duties to the people we faithfully represent.”

        “If the righteous many do not confront the wicked few, then evil will triumph. When decent people and nations become bystanders to history, the forces of destruction only gather power and strength.”

    1. Thank you very much, Dear Dane,

      I think what President Trump said about Iranian Mullahs and the way they have destroyed a once prosperous and respectable nation is absolutely spot on. This is exactly what you hear from Iranians who have lived in the Imperial era and post-Islamic invasion of 1979. The clear distinction that the President drew between Iranian people and the Islamist regime was accurate and correct. The Islamist Republic of Mullahs is a globalist outfit that was installed under Jimmy Carter. They have been created to act as the belligerent and Anti-American regime from day one. Yet, ever since the inception the Islamist regime, the Iranian people have been the biggest victim group of this monstrous regime.

      Clearly, with President Trump now in charge, the time for the Islamism in general and Mullahs regime has come to an end. As I have mentioned in the past here on POM, the Russians and Iranians do not have the same strategic interests and if anything they have opposing ones, whereas the US and Iran have far more significant interests. The mutual interests were best served under the late President Nixon and like Trump, he wanted to reduce the conflicts by the US forces directly and to create regional powers to take care of the security of the region. At that time, Imperial Iran served the role of the moderator and policeman of the Persian Gulf where much of the world oil travels every day. Th current “co-operation: between Iran and Russia is tactical that serves the interests of both countries but sooner or later, and with a regime that has the national interests of Iran as its decision-making model, this closeness will evaporate.

      Also, Iran has the most profitable potential market for US goods and services which Russia and EU even combined cannot satisfy. I, therefore, see the powerful US both economically and militarily is the best guarantor of peace in the West Asia region and the entire world for that matter. However, the DC swamp MUST be cleaned up first and foremost…

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