Showing posts with label BRI. Show all posts
Showing posts with label BRI. Show all posts

Wednesday, April 16, 2025

NATO Is Now A Zombie Alliance Without Legitimacy | Admiral Cem Gürdeniz

We are witnessing the second great breakdown of a global security order since World War II. The first came after 1990, when the Soviet Union voluntarily dissolved, and Washington rapidly expanded its influence across Eastern Europe. But today, 80 years after the end of that war, the US is beginning its own retreat – shifting its strategic center of gravity from Europe to the Asia-Pacific.

» Israel’s genocide in Gaza, supported openly by Washington, 
shattered any remaining legitimacy. «

[...] Its strategy is no longer about global control but about retrenchment and preparing for great power rivalry in the Pacific, particularly with China. This isn’t a tactical adjustment – it’s a systemic collapse. NATO’s defeat in Ukraine was not just a battlefield loss – it was the end of an illusion.

The post-1990 order was built on the illusion of unipolarity. The US declared liberal capitalist democracy as the universal model. In this system, the West controlled finance, China was tasked with manufacturing, and resource-rich states were expected to supply energy and raw materials. But this model encountered fatal contradictions. US military power failed in Iraq, Libya, and Afghanistan. Instead of stability, it brought destruction. Russia reasserted itself militarily after 2008. China rose economically and technologically, challenging Western hegemony.


And together, they built a Eurasian counterbalance. Most crucially, the Global South saw through the facade. Israel’s genocide in Gaza, supported openly by Washington, shattered any remaining legitimacy. The Western system now lies exposed – economically overleveraged, diplomatically isolated, and militarily vulnerable.

Trump is not the architect of this collapse – he is the product of it. […] He knows NATO is a burden, not an asset. His challenge is not ideological – it’s existential. He wants to keep the American empire alive by cutting it down to a sustainable size. NATO is now a zombie alliance. It exists more as a myth than a functional military bloc. Its expansion has been reckless. Its operations – from the Balkans to Libya to Ukraine – have destabilized entire regions, and its credibility is collapsing.

» 
The way forward is to secure our geopolitical destiny in Eurasia – on our terms«

[…] BRICS is growing. The Shanghai Cooperation Organization is expanding. Trade is moving away from the dollar. Regional powers like Iran, India, Brazil, and Türkiye are asserting themselves. This is not a return to Cold War blocs. It’s a rebalancing – a world where no single center dominates.

[...][Türkiye] must abandon the illusion that foreign direct investment and EU integration will save us. That model has failed. It brought debt, privatization, and dependency. Our economy must be built on production, not speculation. This means reindustrialization, food and energy sovereignty, and regional trade in local currencies. We must protect strategic sectors from foreign ownership. Our Central Bank must be independent not just from the government, but from foreign influence. […] The way forward is not to chase illusions in Brussels. It is to return to Kemalist principles, integrate with the rising Asian century, and secure our geopolitical destiny in Eurasia – on our terms, not theirs.

Monday, April 14, 2025

Digital Yuan Reshaping Global Trade And Power | G. Valiachi & S. Murugan

The global financial order is witnessing a seismic shift, and at its epicenter is China’s digital yuan. The recent launch of the Digital RMB Cross-Border Settlement System (CIPS) by the People’s Bank of China (PBoC) is more than just a technological breakthrough—it is a geopolitical maneuver with far-reaching implications for global trade, financial sovereignty, and the dominance of the US dollar.

The
Digital Yuan’s rise is not merely a financial evolution
 
Will the rest of the world, particularly the West, adapt to this new reality, or will they be left navigating a financial ecosystem where China dictates the rules? One thing is certain: the era of uncontested dollar dominance is coming to an end. The world must prepare for a future where digital currencies, led by China's digital yuan, reshape global finance in ways we are only beginning to comprehend.

A Disruptive Technological Edge: For decades, international transactions have relied on the SWIFT system, where dollar-dominated settlements often take 3-5 days to clear, involving multiple intermediary banks and high transaction costs. China's digital RMB, powered by blockchain technology, has completely upended this model. With settlement times reduced to just seven seconds and handling fees slashed by 98 per cent, the efficiency gains alone are compelling enough for emerging markets and strategic trade partners to make the switch. The first successful real-time settlement between Hong Kong and Abu Dhabi using digital RMB has already demonstrated its disruptive potential. By bypassing SWIFT and eliminating reliance on correspondent banks, China has effectively engineered an alternative financial network—one that reduces the influence of US-dominated monetary systems and reshapes the global trade paradigm.

» Settlement times reduced to just seven seconds and handling fees slashed by 98 per cent. «
Digital RMB vs SWIFT.

Redefining Financial Sovereignty: The ramifications of this development extend beyond mere efficiency. For years, the US has wielded its control over the SWIFT system as an instrument of economic coercion, particularly through sanctions. The digital RMB offers an alternative, allowing countries under Western financial pressure—such as Iran and Russia—to conduct transactions without US oversight. This is already materializing: six ASEAN nations, including Malaysia and Singapore, have incorporated the RMB into their foreign exchange reserves, and Thailand has completed its first oil trade settled in digital yuan.

The Global De-dollarization Trend: The cross-border RMB settlement volume in ASEAN exceeded 5.8 trillion yuan in 2024, a staggering 120 per cent increase from 2021. As China strengthens its digital payment network, the US dollar’s role as the world’s reserve currency faces an existential challenge.

» Over 87 per cent of the world’s countries are now digitally integrated with the RMB settlement system. «

Strategic Integration: The digital yuan’s role extends beyond financial transactions; it is a foundational pillar of China’s broader economic expansion strategy. The Belt and Road Initiative (BRI), already a monumental undertaking spanning over 140 countries, now has a digital counterpart in the “Digital Silk Road.” By integrating the digital RMB with Beidou satellite navigation and quantum communication, China is creating a seamless trade infrastructure that enhances efficiency by 400 per cent. This convergence of digital currency and physical trade infrastructure fundamentally alters the balance of economic power. European car manufacturers are already settling Arctic route freight costs in digital RMB, and Middle Eastern energy traders have reduced settlement costs by 75 per cent. If this momentum continues, the dollar-based financial order could soon become a relic of the past.

The Future of Global Finance: With over 87 per cent of the world’s countries now digitally integrated with the RMB settlement system, China has successfully built a financial architecture that challenges traditional banking norms. The total volume of cross-border digital RMB transactions has already surpassed $1.2 trillion, and this figure is set to grow exponentially as more nations join the digital currency bridge test. Meanwhile, the US and Europe remain embroiled in regulatory debates over digital currency frameworks. The Federal Reserve’s hesitancy on Central Bank Digital Currencies (CBDCs) and the European Central Bank’s slow progress on the digital euro underscore the West’s lack of preparedness for this revolution. While Washington deliberates, Beijing executes.


» China is no longer playing by the old rules. It’s a war for the future of global finance. «
Former Greek Finance Minister Yanis Varoufakis, April 14, 2025.