Showing posts with label De-Dollarization. Show all posts
Showing posts with label De-Dollarization. Show all posts

Thursday, April 17, 2025

China is Ready for Any Type of Conflict and Economic Decoupling | Victor Gao

China will fight to the end, as the government has declared, and it has now imposed a retaliatory tariff of up to 125 percent on all US exports to China. If things are not handled properly, this could mean a complete halt to China-US trade—both ways. No goods will be exported from the United States to China, and everything made in China will cease to be sent to the United States. This is decoupling. 

»
 In essence, China is now declaring that it is prepared to fight to the end
—whether in a trade war, tariff war, technology war, or even a real war. «

If the United States truly welcomes this, China will reciprocate, leading to the breakup of China-US relations. Whether this situation evolves from peace to war remains to be seen, but we must all be prepared. In essence, China is now declaring that it is prepared to fight to the end—whether in a trade war, tariff war, technology war, or even a real war. So, the ball is in Trump's court. He decides, and China will reciprocate. China will never succumb to US pressure.


This is the moment of truth. China wants to defend free trade; the United States wants to destroy it. The rest of the world is watching, and a choice will be made by the end of the day. However, China will not accept being held at gunpoint, forced to swallow impossible demands. 
China is a country that values dignity and decency above economic gains or losses. So, if you want to hold a gun to China’s head, China will hold a gun to yours. If you want to strike China on the cheek, China will strike back. That is the decision and determination of the Chinese nation.

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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.

Saturday, April 12, 2025

The Last Tariff: China Ended the US’s Trade War With a Whisper | Gerry Nolan

It happened with no fanfare. No saber-rattling. No choreographed press conference. Just one quiet statement from Beijing’s Customs Tariff Commission: "Tariffs on US goods will rise to 125% — and this will be our final adjustment. Regardless of future US actions, China will no longer respond." In Washington, they saw a concession. In reality? Beijing walked away from the last imperial leverage DC had left.

 » Tariffs on US goods will rise to 125% — and this will be our final adjustment.
Regardless of future US actions, China will no longer respond. «
China's Customs Tariff Commission, April 11, 2025.

In Trump's chaotic circus, tariffs are sold as economic patriotism, blunt-force trauma marketed as “tough negotiation.” But tariffs are the last resort of a hollowed-out empire that no longer produces, competes, or innovates, only thinks it can still dictate.

Trump’s latest move, slapping a 125% tariff on Chinese goods, was meant to flex dominance. Beijing waited, matched it perfectly, then froze the board. "There is no possibility of market acceptance of US goods in China." Translation: “We don’t need you anymore.” No further hikes are necessary. The US is de facto cut off from the colossal Chinese market. That's not de-escalation. That's de-dollarization in practice. Geoeconomic Aikido, using the empire’s aggression to accelerate the break from it.

Chinese Embassy in the US, April 10, 2025.

Washington still believes in a world that no longer exists. It thinks it can dictate trade terms while running trillion-dollar deficits, threaten its way into solvency while its factories rust, and that China will forever tolerate economic warfare just to retain access to Walmart shelves and US Treasury bonds, bonds that are a ticking time bomb for the hollowed empire.

But that world is gone. China has reoriented trade through Belt & Road. It’s fortified currency alliances with BRICS+, hardened internal markets, and invested across the Global South. Most importantly, it has shifted away from Western export dependency.


So when Beijing says, “we will ignore further US tariff moves,” it’s not a concession. It's sovereignty. The US has already been priced out, there’s no need for more theaters. This is the reckoning of a rentier empire built on financial parasitism, not production.

The definition of narcissism.

America doesn't have the tools to win a trade war, it doesn't make the tools anymore. Wall Street eviscerated its industrial base. Labor was deskilled by decades of outsourcing. Infrastructure crumbled while $10 trillion burned in forever wars. Trump’s 125% tariff isn’t policy, it’s a symptom. An empire in late stage declined. The power of Beijing’s response isn’t the tariff, it’s the refusal to respond again. No escalation. No panic. Just a clean break from a failing system.

A message to the Global South: “We won’t be dragged into Washington’s chaos. We won’t fight over a burning house. We’ll build new ones.” It's multipolar maturity. Let the US isolate itself, tariff its own supply chains, and raise rates until its middle class fractures. Beijing will trade in yuan with the Global Majority, while America tariffs itself into irrelevance.

 » The reckoning of a rentier empire built on financial parasitism, not production. « 

Markets have lost nearly $6 trillion net since February, despite brief rebounds. Wall Street knows: this isn’t 2001. China isn’t cowering. It now holds the keys to rare earths, battery tech, and semiconductors. Trump framed the tariffs as punishment for “ripping off the USA.” 
 
But who really gutted America’s industries? China? Or Goldman Sachs? Who looted pensions, turned homes into hedge fund fodder, and spent trillions on wars that only enriched Raytheon and BlackRock? The real theft wasn’t done in Beijing. It was done in boardrooms, think tanks, and Senate halls under the banner of “free markets” and “security.”

 » There is no possibility of market acceptance of US goods in China. «
The US is de facto cut off from the colossal Chinese market.

This moment isn’t the climax of a trade war. It’s the end of illusion, that the US can sanction, tariff, and bully its way to eternal dominance. Beijing just called time. 125% is the ceiling. From here forward, they won’t play the empire’s game. They're building a new one, with bricks, not bombs. With real trade, not tribute. With allies who don’t need threats to stay loyal.

 
 
Trump economic counselor Peter Navarro accuses China of killing "1 million Americans with fentanyl" and "destroying over 60,000 American factories and 5 million manufacturing jobs". Who prescribes opioids to millions of Americans, leading to addiction? Did China choose to ship these factories offshore and deindustrialize for tax evasion and cheap labor?


See also:

And, of course, no one understands tariffs—only Trump does.

Wednesday, March 12, 2025

Trump Managing the Collapse of the American Empire | Thierry Meyssan

On January 21 and 22, Donald Trump had gathered the central bankers and finance ministers of the G7 in his Mar-a-Lago residence. He is said to have welcomed them by telling: "No one will leave this room until we have found an agreement on the dollar." The agreement in question would therefore have been approved by the allies. The main idea would be for the US Treasury to issue government bonds that do not pay interest (what are called "zero coupons") and that would not mature for a century (that is, could not be exchanged for cash for 100 years). Washington would therefore have to force its allies to convert their debts into "zero coupons". 
 
 » No one will leave this room until we have found an agreement on the dollar. «
 
[...] The US public debt has now reached the astronomical sum of 34,000 billion dollars, of which only a third is held by foreign investors, according to Forbes. If some of the US creditors, mainly China and Saudi Arabia, were to ask for repayment, a gigantic economic crisis would occur as in 1929. Many economists regularly warn of this prospect. According to Jon Hartley of the Hoover Institution, central banks have not reduced the share of the dollar in their foreign exchange reserves since the war in Ukraine. However, on February 20, a videoconference by analyst Jim Bianco, taken up by the Bloomberg agency, rekindled concerns. According to this analyst, the Trump administration is following a plan, the "Mar-a-Lago Accord". It intends to radically restructure the US debt burden by reorganizing world trade through tariffs, devaluing the dollar and, ultimately, reducing the cost of borrowing, all with the aim of putting US industry on an equal footing with its competitors in the rest of the world. [...] De-dollarization, that is, using the dollar only at the national level of the United States and no longer in international trade, is the sea serpent of finance.

[...] If we accept this analysis, we must reinterpret various actions of President Trump, in terms of customs duties or the creation of a sovereign wealth fund. They no longer seem as erratic as the international press describes them, but on the contrary very logical. We must therefore consider that Donald Trump is trying to manage the possible economic collapse of Joe Biden’s "American empire" as Yuri Andropov, Konstantin Chernenko and Mikhail Gorbachev tried to manage that of Leonid Brezhnev’s "Soviet empire". I am all the more attentive to this hypothesis because, in my opinion, the coup of September 11, 2001 had no other goal than to postpone the foreseeable collapse of the “American empire”. The last two decades have been only a reprieve that, far from solving the problem, have only made it much more complex. 
 
[...] This time, cautiously, President Trump is lulling his public opinion to sleep by evoking the annexation of the entire North American continental shelf, from Greenland to the Panama Canal, while liquidating the war in Ukraine and the European Union. If my hypothesis is correct, we must not believe a word of the threats of annexation of new territories, such as Canada, and not imagine that the United States is withdrawing militarily from Europe to confront China, but admit that it is militarily abandoning its European allies. We see that it is abandoning Germany and relying on Poland to organize Central Europe, even if it means letting Warsaw annex Eastern Galicia (currently Ukrainian). Similarly, we must prepare to see the United States abandon its Middle Eastern allies, with the exception of Israel. Indeed, it has just resumed arms deliveries to Tel Aviv and begun secret talks with Iran via Moscow. They let Saudi Arabia and Turkey divide up the Arab world.

 » Russia needs the United States to avoid finding itself face to face with China. «

The competition between Paris and London to take the lead in European defense should therefore not be understood as opposition to peace in Ukraine. Neither the French nor the British armies have the possibility of replacing Washington’s military support. It is rather a question of determining the role that the two capitals will subsequently play on the continent. Emmanuel Macron, the French president, hopes to develop his defense concept around the French strike force, while Keir Starmer, the British prime minister, intends to take advantage of the situation. The former is aware that the European Union, around Germany, is disintegrating and that President Trump prefers the "Three Seas Initiative", around Poland. He could therefore reawaken the Weimar Triangle (Germany/France/Poland) to maintain some room for maneuver. While, from the same analysis and taking into account the disappearance of NATO, the second will ensure that Germany is kept as far away from Russia as possible, thus continuing his country’s foreign policy for a century and a half. 
 
»
Fuhrer Ursula is mobilizing everybody to re-militarize Europe. «
 
Note that if the European allies, the Chinese and the Saudis should consider it a scam to exchange their debts for “zero coupons”, Russia should on the contrary support the United States in this maneuver. Indeed, during the dismantling of the Soviet Union, Russia went through a decade of recession and unrest, but today it needs the United States to avoid finding itself face to face with China.

 
ooooOO0OOoooo
 
Trump’s Special Envoy, Steve Witkoff, is making his way to Moscow this week to “urge” Russia to agree to a ceasefire in Ukraine, or else, the White House announced today. It remains unclear whether President Vladimir Putin will even meet with him. Putin has already made Russia’s position clear: No “temporary” ceasefires. A whole new multipolar security order. Yalta 2.0. Long-term peace or nothing.

 » I hope it's not going to be necessary. «
GOAT One-Trick ZioCon MIGA-MAGA Don, March 12, 2025.

After the complete trainwreck in Saudi Arabia, where Washington bent over backwards to appease Ukraine’s fascist regime, agreeing to rearm the Nazi terrorists and give them a 30-day breather, it’s hard to see what’s even on the table. Russia doesn’t do ceasefires for Western rearmament. Russia dictates battlefield reality, not White House wishful thinking. Putin won’t waste more time on US theatrics unless there’s something real to discuss.

 Efforts to reasonably deal with the Trump administration failed, and on March 12,
Putin appears in military uniform for the first time since the start of the war.
 
If the US wants a real negotiation, it should finally realize where to start: First, stop this hollow and ridiculous propaganda charade of 'Trump aiming to broker a ceasefire and peace deal between Russia and Ukraine,' and acknowledge that Russia has defeated the US and all of NATO in Ukraine. The US has lost, is exhausted, humiliated, and bankrupt, and Russia has offered the new US administration a chance to at least save face and improve relations, instead of escalating into nuclear Armageddon. Second, stop financing and rearming the Zelensky regime, and cut its access to Starlink.

 
The GOAT fiscal MIGA-MAGA Ponzi scheme beyond repair.

If it's just about another silly PR stunt to please BlackRock and the 
deluded MIGA-MAGA gaga-crowds, you’d better DOGE the airfare, Witkoff.

Sunday, August 18, 2024

Mexico Pivoting Away From Washington’s Grip

In Mexico City, Washington is accused of sponsoring opposition NGOs such as Mexicans Against Corruption and Impunity (MCCI) through USAID programs and various private foundations, including Ford, Rockefeller, and Soros. The US government has sent nearly $5 million to MCCI since 2018, according to Mexico’s Financial Crimes Unit (UIF). Outgoing President Andrés Manuel López Obrador, also known as AMLO, whose term ends on September 30, 2024, has publicly condemned these actions, stating that his Foreign Ministry has sent a diplomatic notice to the US and that he will write directly to President Joe Biden about it. 

 Outgoing Mexican President Andrés Manuel López Obrador
and President-elect Claudia Sheinbaum Pardo, in the shadow behind him - August 16, 2024.

This accusation is part of a broader pattern of strained relations between the US and Mexico under López Obrador's presidency. Mexico has curtailed military cooperation with the United States, closing its airspace to American military aircrafts and reconnaissance drones. Last year, López Obrador accused the US Department of Defense of spying and vowed to restrict military information after Mexican-related intelligence documents were leaked. 
 
 » [...] if a foreign enemy would dare to profane Your ground with their sole, think,
Oh beloved Fatherland!, that Heaven has given a soldier in every son. War, war! With no mercy  [...] «
Mexican National Anthem

The current row is part of a general pivot away from the US, driven by López Obrador and his left-wing populist MORENA political party, which has repeatedly asserted that Mexico will not be subservient to the US.

■  Last year, López Obrador rebuked “irresponsible” calls from some US lawmakers advocating military action against drug cartels. “We are not going to permit any foreign government to intervene in our territory,” he said.
■  López Obrador conditioned helping Biden with his southern border migrant crisis on lifting sanctions from Cuba and Venezuela – both of which are Mexican trading partners.
■  Mexico slashed imports of genetically-modified US corn in favor of boosting local production, sparking a trade dispute.
■  Mexico joined other major Latin American countries in pushing back on efforts by the US and EU to diplomatically isolate President Nicolás Maduro after the Venezuelan president was reelected to a third term in office.
■  Mexico has refused to support NATO’s proxy war in Ukraine and declined to impose economic sanctions on Russia.
■  Trade volume between Russia and Mexico increased by 9.8% in the first four months of 2024 compared to the same period in 2023, amounting to $759.99 million.
 
while Mexico remains chained by treaties to the sinking dollar-ship.
 
 
In the broader geopolitical context, Mexico is increasingly engaging with BRICS+ to diversify its global alliances and reduce reliance on the United States. This strategic shift includes substantial investments in the Mexican economy and strengthening ties with China, which offers significant trade and investment opportunities. Mexico's collaboration with BRICS+ presents huge potentials for growth in technology, energy, and agriculture. 
 
In 2024 IMF and World Bank rank Mexico 14th globally in terms of nominal GDP,  and 9th in terms of PPP.

The US attempts to influence the outcome of Mexican elections through its NGOs have been unsuccessful, and President-elect Claudia Sheinbaum Pardo, who received 60% of the vote in the June 2, 2024 elections, is expected to continue López Obrador’s policies. Should Donald Trump win the next US presidential election, the relationship between the two countries could deteriorate further, with heightened conflicts related to trade, migration, weapons- and drug-trafficking, potentially bringing the two nations to the brink of direct military conflict. Balancing the
BRICS+ alliances with existing commitments will be crucial for Mexico's strategic and economic goals.

Monday, May 13, 2024

Welcome to the UNIT - The De-Dollarization Bombshell | Pepe Escobar

Welcome to the UNIT – a concept that has already been discussed by the financial services and investments working group set up by the BRICS+ Business Council and has a serious shot at becoming official BRICS+ policy as early as in 2025.

  » The UNIT is a new form of international currency that can be issued 
in a de-centralized way, and then recognized and regulated at national level.  «

[...] The Global Majority has had enough of the centrally controlled monetary framework put in place 80 years ago in Bretton Woods and its endemic flaws: chronic deficits fueling irresponsible military spending; speculative bubbles; politically motivated sanctions and secondary sanctions; abuse of settlement and payment infrastructure; protectionism; and the lack of fair arbitration. In contrast, the UNIT proposes a reliable, quick and economically efficient solution for cross-border payments. The - transactional - UNIT is a game-changer as a new form of international currency that can be issued in a de-centralized way, and then recognized and regulated at national level.

  » Decoupling money from politics will undoubtedly offer unique opportunities 
for fair trade and investments across the globe removing economic bypasses created by 
political power plays and irresponsible fiscal and monetary policies.  «

The strength of the UNIT, conceptually, is to remove direct dependency on the currency of other nations, and to offer especially to the Global Majority a new form of apolitical money - with huge potential for anchoring fair trade and investments. It is indeed a new concept in terms of an international currency - anchored in gold (40%) and BRICS+ currencies (60%). It is neither crypto nor stablecoin. [...] The endgame is that everyone, essentially, may use the UNIT for accounting, bookkeeping, pricing, settling, paying, saving and investing.

 

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