Showing posts with label State Banking. Show all posts
Showing posts with label State Banking. Show all posts

Monday, August 10, 2026

De-Dollarized Payment Rails For African Continental Free Trade Area

On July 20, 2026, the governors of the Central Bank of Egypt and the Central Bank of Eswatini met in Cairo to discuss expanding banking cooperation, Egypt's experience with the Pan-African Payment and Settlement System (PAPSS), and the Pan-African Gold Bank initiative already underway with African Export-Import Bank (Afreximbank, Cairo, Egypt).
PAPSS enables instant cross-border payments in local currencies through three core processes: instant payment, pre-funding and net settlement. Instant payments eliminate the need to convert into hard currencies and route funds outside Africa, while performing compliance, legal and sanctions checks in real time. This will save African nations an estimated $5 billion annually in Western bank transaction fees.
PAPSS, operated by Afreximbank together with the African Union (AU) and the AfCFTA Secretariat, had by then linked banks across a growing network. The African Continental Free Trade Area (AfCFTA), which entered into force on May 30, 2019, and by mid-2026 had been ratified by 49 of 54 signatory states, is the continent-wide free-trade area covering a market of more than 1.4 billion people; PAPSS was developed specifically to support payments and settlement under it. 
The African Continental Free Trade Area (AfCFTA) is the flagship project of the African Union's Agenda 2063. It creates a single market of more than 1.4 billion people across the 55 AU member states by liberalizing trade in goods and services, investment, intellectual property, competition, digital trade, and women and youth participation.
In July 2026 the Bank of Central African States joined PAPSS, bringing in the six CEMAC CFA-franc countries and raising the total to 28 nations served by more than 190 commercial banks and fintechs through 16 switches. 
Customer  payments move in local currencies: a payer instructs a bank,  PAPSS performs real-time validation, compliance, and sanctions checks,  and the beneficiary’s bank credits the recipient, typically in about  seven seconds against a 120-second design maximum. Because the credits  are irrevocable, direct participants pre-fund clearing accounts through  their national Real-Time Gross Settlement Systems (RTGS) while indirect  participants obtain liquidity through sponsorship. At 11:00 UTC each  day, PAPSS calculates the multilateral net position of every  participating central bank, settles the local-currency leg through the  central banks' RTGS systems, and sends any residual imbalance as a  hard-currency instruction to Afreximbank, which acts as settlement  agent. The residual step still uses dollars or other convertible  currencies, yet the front end largely bypasses external correspondent  chains and sharply reduces the volume of hard-currency settlement  required.
Separately, on December 29–30, 2025, the Central Bank of Egypt and Afreximbank signed a memorandum of understanding to establish a pan-African gold-bank program intended to formalize gold value chains, strengthen central-bank reserves, and reduce reliance on foreign refining and trading hubs. 
 
A feasibility study for an internationally accredited gold refinery, secure vaulting, and related financial services—potentially located in an Egyptian free-trade zone—was commissioned with McKinsey; by mid-2026 Afreximbank had signaled a $50–100 million commitment toward the refinery, with construction targeted for the end of 2026 and operations in 2027–28. The project remains at the planning stage.
 
From 2012–2022, industrial and semi-industrial gold mining operated in 26+ African countries, with output rising in most. Production nearly doubled in Mali and Burkina Faso and increased fivefold in Côte d’Ivoire (Ivory Coast), while declining elsewhere—most notably in South Africa (180 tons in 2011 to 84 tons in 2022). In 2022, Ghana led with 95.8 tons, followed by South Africa (84), Mali (66.2), and Burkina Faso (57.7).
Parallel developments are linking Africa more closely to Chinese and Hong Kong infrastructure. Afreximbank became a direct participant of China's Cross-Border Interbank Payment System (CIPS) and Standard Bank the first African commercial bank to join the system; in June 2026, Standard Bank and Industrial and Commercial Bank of China (ICBC) were authorized as the Renminbi Clearing Bank of Africa, covering 19 countries. 
 
Hong Kong's Christopher Hui advanced gold-market memoranda with Laos and exploratory discussions with Ghana, while the Hong Kong Gold Exchange partnered with Alibaba-backed AGTech on a digital trading and clearing platform. Chinese gold imports reached roughly 163 tons in May and 173 tons in June 2026, against official People's Bank of China (PBOC) purchases of about 10 and 15 tons respectively; the difference is absorbed by commercial banks and private demand.

See also:

Sunday, January 4, 2026

US Decapitation Operation "Absolute Resolve" in Venezuela | Ron Aledo

The operation in Venezuela is a multi-agency effort aimed at regime change, intended to install a pro-US, easily controlled government and eventually take indirect control of the country's oil. This is designed to maintain the US dollar's status as the world standard for global oil transactions. 
 
 
Venezuelan President Nicolás Maduro kidnapped in US military strike,
Caracas, January 3, 2026, 4:30 AM local time.
 
In recent years, China, Russia, and other BRICS nations have attempted—with some success—to shift global oil transactions away from the US dollar toward the Chinese Yuan. Trump views this as a threat to the strength of the dollar and US global hegemony. This operation against Venezuela makes such a move away from the dollar more difficult.

 
Operation "Absolute Resolve" was a multi-agency effort involving US intelligence agencies, the military, law enforcement, and the Department of Justice. The steps of the operation were likely as follows:
 
1. CIA and DIA Intelligence Covert Actions: The intelligence agencies recruited dozens of Venezuelan military personnel, primarily Generals and Colonels in charge of Nicolás Maduro’s security and the air defenses of Caracas. Additionally, the CIA, DIA, and NSA provided real-time intelligence for the military operation, including the locations of air defenses, military leaders loyal to Maduro, and the movement of bodyguards and security systems. 
 
The US war machine struck Venezuela just hours after President Maduro met
Chinese envoy Qiu Xiaoqi on January 2 to renew 600 bilateral trade deals.
 
2. Military Action: The US military destroyed multiple targets, likely air defense systems and command-and-control centers manned by military and political elements loyal to Maduro. This was a massive attack that neutralized all air defenses in the area and disabled military units that could have protected Maduro. US Delta Force arrived via helicopter at Maduro's location; facing neither bodyguards nor defenses, Maduro and his wife surrendered. They were then transported via helicopter to the USS Iwo Jima, a US Navy amphibious assault ship. As of 17:30 ET, Maduro arrived in New York escorted by civilian officers from the Department of Justice (DEA, US Marshals, and FBI). This is significant for Trump, as it depicts the mission as a "police/law enforcement" and "counternarcotics" operation.
 
» For Venezuela, we are prepared to give even our own blood! «
 
3. Transfer to the Department of JusticeThe US military transferred custody of Nicolás Maduro to law enforcement officers to maintain the appearance of a legal operation against an indicted narcotics trafficker. This provides legal authority to the mission and protects the Trump administration from future court challenges or potential impeachment attempts by a Democratic-controlled Congress following the November 2026 elections. This phase mirrors the actions taken against the former ruler of Panama, General Noriega.
 
» We are going to run the country. «
 
4. Transition Inside VenezuelaThe Trump administration will likely negotiate with the Vice President—now President—Delcy Rodríguez to complete a transition to a new pro-US government. While María Corina Machado is a potential candidate for the presidency, Trump may appoint someone more widely accepted by the Venezuelan military to reduce the risk of a counter-coup in the immediate future.
 
 
other areas, including the center of the capital Caracas.
 
As the Maduro government remains in charge—at least in appearance—via Delcy Rodríguez, the possibility of escalation remains high. If Trump negotiates a peaceful transition with Rodríguez, the crisis may be resolved without violence. However, if Rodríguez resists due to pressure from pro-Maduro military elements or Cuban intelligence officers in Caracas, violence is likely. Trump may then push for a military coup against Rodríguez using CIA-recruited officers, supported by US airstrikes on the command posts of pro-Maduro generals.

» An attack of this nature undoubtedly has a Zionist tinge. «
 
Alternatively, Trump may leave Rodríguez as the nominal President if she agrees to follow all directives from the administration. However, the potential for unrest and armed resistance from segments of the population remains possible under all options.
 
» Trump's Plan A is the less bloody one. The people change 
hats very easily. The king is dead, long live the king. «
Ron Aledo on US Plans A and B for Venezuela, January 4, 2026.
 
Real Reason for the Operation: The primary motivation is likely an attempt to slow the efforts by Russia and China to replace the US dollar as the universal currency for oil transactions. Global oil trade is conducted in US dollars, which bolsters the dollar's strength and US global trade dominance. Recently, Russia, China, India, and other BRICS nations have challenged this by moving toward the Chinese Yuan. Trump views this as a threat to US dominance. By executing regime change, the US aims to install a friendly, manageable government in Venezuela and secure indirect control over its massive oil reserves, thereby reinforcing the dollar's position.
 
the most significant geopolitical realignments of the 21st century. «

» Vassalize Mexico, to complete a North American internal
economic circulation, replacing China in its supply chain. «

Secondary Objectives: A secondary goal is the defeat of the Cuban regime. By cutting the flow of Venezuelan oil and funding to Cuba, the regime will likely collapse within a year, potentially leading to a negotiated transition and a new pro-US government on the island.

 
It is important to note that Tulsi Gabbard and Vice President J.D. Vance were likely not active participants in this operation. The primary driver was Marco Rubio, who has long promised the fall of the Venezuelan and Cuban governments. Rubio views this as a "victory card" for a 2028 vice-presidential or presidential bid, potentially replacing J.D. Vance on the ticket.
 

Sunday, September 7, 2025

State Central Banking vs Private Central Banking | Wen Tiejun

Let's delve into the core reasons underlying the strategic confrontation between the People's Republic of China and the United States of America, as this unveils a significant systemic discrepancy: [...] The issuance of the renminbi (RMB) is fundamentally based on the authority of the Chinese government, specifically through the People's Bank of China (PBC). The basis for the issuance of the renminbi is definitely not gold. The reason this money is valuable is because it is a sovereign currency issued by the state and backed by state authority. Empowering a sovereign currency establishes credit. The currency creates credit, and the sole resource available is political authority. Thus, political authority, governmental power, and the administration in control align with the currency system.
Wen Tiejun (温铁军) is a Chinese agricultural economist and a professor at the Renmin
University of China, best known for his studies on the Three Rural Issues in Mainland China.
 
On the other hand, the source of the US dollar's credit is an institution established by private bankers, not a country. Pay attention, this difference matters: The US dollar is actually issued by an institution called the Federal Reserve. The Federal Reserve is neither an official entity nor a government institution; instead, it is an organization operated by private bankers. This particular organization possesses the authority to issue the national currency and determines the financial policy of the United States, which the government then implements.
 
 
» The root cause of global chaos is financial capital globalization, which is
supported by military hegemony. « Wen Tiejun's complete discourse video.  
 
This occurrence is quite rare across the globe, both in terms of nations and systems. In the majority of countries, it is the political power of the state that grants authority to its national currency, forming a sovereign currency. In a select number of nations, such as the United States, institutions are established by private banking entities, and the government subsequently enacts the policies of these private banker collectives.

[...] Therefore, throughout the extensive history of the United States, numerous influential presidents have attempted to reclaim monetary authority. All of them ultimately failed. Almost every president who was resolute in their determination to reclaim monetary authority ended up deceased, including the widely recognized Kennedy assassination. These events all share similar demands to restore monetary rights back to the government, yet none of these plans have been fully realized.

[...] China continues to maintain its national control over financial capital. For what specific purpose? In recent years, when China faced global crises and a decline in exports, the Chinese government mainly relied on national finance, investing in infrastructure that may not yield immediate profits. A straightforward example is the allocation of funds for the construction of roads and railways in rural, mountainous, and even desert regions. All these investments cannot be recovered in the short term, and it's also difficult to recover them in the long term. So, should we invest? We should, because if we don't, businesses will have no market and workers will become unemployed. On the other hand, the government would have to use its finances to pay for unemployment benefits. Rather than doing that, it's better to invest. 

» The United States exploits the world's wealth with the help of "seigniorage." It costs only about 17 cents to produce a 100 dollar bill, but other countries had to pony up 100 dollar of actual goods in order to obtain one. It was pointed out more than half a century ago, that the United States enjoyed exorbitant privilege and deficit without tears created by its dollar, and used
the worthless paper note to plunder the resources and factories of other nations. The hegemony of the US dollar 
is the main source of instability and uncertainty in the world economy. «
Ministry of Foreign Affairs of the People's Republic of China, 2023. 

[...] I perceive this as one of Trump's most proactive and forward-thinking policies—to focus on the advancement of infrastructure development. His most significant challenge is that the US lacks the so-called state-owned enterprises (SOEs) similar to those in China. Additionally, it doesn't have a state-owned banking system. China's system uses state banks to receive currency from the government, which is directly paid to state-owned enterprises. These enterprises then directly engage in infrastructure construction, maintaining China's economic growth and sustaining employment. The US uses private banks to issue more currency to buy government bonds, which then leads to a virtual capital expansion, with two hands shifting the crisis to the whole world.

[...] Analyzing this with American theory suggests China's state-owned banks and state-owned enterprises are inefficient. They don't provide tax revenue and occupy a large amount of capital. But just because financial resources are utilized doesn't mean nothing is produced. A significant amount of wealth is indeed generated, but this wealth manifests in the form of airports, seaports, train stations, highways, and high-speed railway systems. None of these investments can generate returns in the immediate short term. Consequently, a substantial amount of capital in China's state-owned banks is currently tied up. According to general free-market economic theory, those that can't be recovered soon should all go bankrupt. As long as you genuinely and sincerely execute what is purportedly stated in the media today, China's economy should have gone bankrupt long ago because its large investments can't be recovered quickly.

»
I think he [US Fed chairman Jerome Powell] is a very stupid person, actually. «

Not-calling-the-shots POTUS, July 13, 2025.
 
[...] How Trump might approach the situation? He doesn't have China's methods. So, how will he do it? By relying on private bankers to reform America's railways? How long will it take to recoup the investment? Why would private individuals invest in rebuilding American roads and airports? Private investment is dropping. This is similar to what's happening in China: whenever there's an economic crisis, China's private investment decline is inevitable. So, how do you counter it? You have to rely on state investment to push it up. One goes down, the other goes up. That's how it is. 
 
»
The US uses private banks to issue more currency to buy government bonds, which then 
leads to a virtual capital expansion, with two hands shifting the crisis to the whole world. «
 
A significant number of individuals are critical of China's system. I don't intend to imply anything else; I'm merely suggesting that you observe the actual impact. I also don't wish to defend this so-called closed system of China because I equally dislike this bureaucratic system, but it actually maintains the nation's foundational employment and crucial economic development.
  

Sunday, August 10, 2025

Money Creation—Banking’s Best-Kept Secret | Richard A. Werner

In an era when gold was money, people believed it was essential for transactions. But carrying gold was perilous—dangerous even today in cities like London, let alone in the 15th-17th centuries amid bandits on lawless roads. So, people sought safe storage. Professions handling gold, like goldsmiths crafting jewelry for kings, aristocrats, and the wealthy, had secure vaults and private guards. Naturally, individuals deposited their gold with these goldsmiths for safekeeping.
 
» We don't need to lend actual gold. «
"The Moneychanger and His Wife", painted by Quinten Matsijs, 1514.
 
To prove ownership, depositors received receipts—crucial evidence in case the goldsmith died and his son denied the claim. Goldsmiths charged a fee for this service, which seemed fair. Now, imagine we’re neighbors in Hampshire. I’m buying a plot of land from you, and we agree on a price in gold. My gold’s stored with a goldsmith in London. “I’ll go fetch it,” I say. You reply, “What’ll you do with it? You’ll risk your life fetching it, and then I’ll have to risk mine carrying it back.” We pause, then realize, “We might as well leave it there, and I’ll give you my deposit receipt.” Thus, these receipts for deposited gold evolved into Europe's first paper money—gold certificates, transferable and convenient.
 
Goldsmiths soon noticed that depositors rarely withdrew their gold; it stayed put, which was handy. This led to secrecy-shrouded practices. People knew goldsmiths held gold reserves, so they approached them for loans when in need. But until about 350 years ago, lending at interest was illegal in most European countries, forbidden by Christian doctrine and Biblical prohibitions against usury. A goldsmith might whisper, "Maybe I can lend, but keep it secret because I'll charge interest." The borrower agrees: "I'll pay, and we'll keep it secret." Goldsmiths began lending out portions of the deposited gold—especially standardized bullion—while swearing everyone to secrecy to evade arrest for illegal interest.
Shylock in The Merchant of Venice, Act IV, Scene I, by William Shakespeare, 1596.
 
As guilds do, goldsmiths convened to discuss trade secrets: “How do we handle lending too much gold? We need to work together—if one runs short, the others help, or else the whole scheme unravels, and we all get arrested for interest altogether.” One innovative goldsmith proposed, "I've got an idea—we don't need to lend actual gold. The next guy who comes begging every Monday—I've turned him down before. But now I'll lend to him to show you."
 
»
 All banks have always created money out of nothing. 
That's the secret of banking. «
 
The borrower arrives, pleading. The goldsmith says, “Today I’ll lend. Standard contract: small print, interest, your daughters sold into slavery if not repaid.” “Fine,” the borrower consents. “One more thing: 300 grams of gold. Sign here, I sign, and I lend it—but you must deposit it with me immediately.” The borrower protests, “I need the gold.” “You get the deposit receipt,” replies the goldsmith. “Yes, that’s all I need.” With the loan contract signed, the goldsmith records it as an asset on his balance sheet. He hands over the 300 grams of gold momentarily—now you see it, now you don’t—and it’s redeposited. The borrower leaves with a receipt for a new deposit.
 
» 
Banking has not been very well understood: legally, a "deposit"
is a loan to the bank, now owned by the bank, not the depositor. «
 
Double-entry accounting, invented for banking to obscure such maneuvers, made it appear legitimate: “All correct; the borrower deposited.” But it is fraudulent—the borrower enters with no gold and leaves with a document claiming a deposit, without increasing the goldsmith’s actual reserves. This is the essence of modern banking: fractional reserve lending and money creation out of thin air, born from these historical practices.
 
Reference:
 
» Today, due to the institutionalisation of interest and the advent of digital money, roughly 97 percent of modern money comes into existence as interest-bearing debt—i.e., it “comes into being only when someone promises to pay back even more of it.” «
Yusuf Jha, 2013.
 
See also: 

Sunday, November 10, 2024

The Illusion of Control: The Fed's Quiet Coup d'État | Gerry Nolan

As Mike Lee states, the Executive Branch was meant to be under the President’s executive branch and direction. And yet, the Fed remains the ultimate untouchable, a fortress of financial power immune to democratic oversight or any real accountability. Let’s face it: The Fed is not about serving the people; it’s the nerve center of a Ponzi scheme so vast that it makes Wall Street look like pocket change.

 » The Federal Reserve isn’t a public service, it’s the vault where the
sovereignty of the American people was locked away a century ago. «

For over a century, the Fed has held the American economy in a chokehold, dictating monetary policy in ways that serve the banking elites and global financiers, while keeping citizens in perpetual debt-enslavement. It’s not a “politically independent institution” as they like to spin it - it’s a profit machine, designed to siphon wealth upwards and keep the masses at bay with breadcrumbs of credit and endless inflation.

 » The Fed is a profit machine, designed to siphon wealth upwards and keep
 the masses at bay with breadcrumbs of credit and endless inflation. «

The Fed controls interest rates, injects trillions into the economy at will, and manipulates the currency supply, all without a single vote from the American people. True sovereignty would mean a government with control over its own currency, accountable to its citizens, not be held to private bankers. But ending the Fed? That would mean dismantling the very backbone of U.S. financial imperialism, a move that would bring about sovereign economic control, yet will never happen under the current system of oligarchic “democracy.”

The real question isn’t whether Trump (or any president) could rein in the Fed; it’s whether the American people will ever realize that the Federal Reserve isn’t a public service, it’s the vault where their own sovereignty was locked away a century ago.

The Fed's Ponzi machine may be untouchable, but the illusion of freedom is slipping. How long until the curtain falls?

Quoted from:

Thursday, October 31, 2024

BRICS Will Not Kill the Dollar—War Will | Martin Armstrong

The BRICS currency was created for geopolitical reasons when the neocons transformed the SWIFT system into an economic weapon and even threatened China with the same fate if they supported Russia. Once this occurred, the neocons turned the entire world’s monetary system into a weapon of war. This is why we have BRICS; it had nothing to do with killing the dollar or backing their currency with gold.

 » All currency is fiat, even when it is gold. Just because a currency is
backed by gold does not eliminate inflation or deflation. «

Many hoped for an official announcement regarding a gold-backed currency, which failed to materialize. A gold-backed currency would be massively deflationary. The money supply could not expand with the population or in times of need without new discoveries. Just because a currency is backed by gold does not eliminate inflation or deflation. The gold discoveries of the 19th century in California, Alaska, and Australia caused significant economic upheaval, followed by wars. The fact that gold was the currency did not prevent inflation.

Spain defaulted seven times. The gold and silver they brought back from the New World led to massive inflation in Europe. Those who preach that a gold standard is the solution lack an understanding of history. They blame “fiat currency,” as if eliminating it will solve all problems. There were booms and busts throughout ancient times long before paper money existed. All currency is fiat, even when it is gold. I have shown that Southern India routinely imitated Roman gold coins because they held a premium over gold—this is fiat. Northern India and the Kushan Empire issued their own coinage primarily because they traded more with China. Southern India used imitation Roman gold coins for about 250 years, confirming that the Roman coinage was worth more than its metal content.
 
 » The purchasing power of gold fluctuated at all times. The value of a currency is determined 
by the productive capacity of its people, not by its gold reserves. «

Similar claims were made about the Euro, which also did not work out well. Why? The value of a currency is determined by the productive capacity of its people, not by its gold reserves. Japan and Germany lost the war yet rose to the top of the economic hierarchy because their populations were productive. The United States has the largest consumer-based economy, which means that everyone needs to sell their products here, requiring transactions in dollars. The US is also strong militarily, which further supports the currency's foundation.

It is time to abandon these outdated economic theories, remnants from the 18th and 19th centuries. The economy has evolved since then. The neocons are destroying the dollar and undermining the future of the United States. When we lose another one of their endless wars, financial capital will shift from New York to Beijing. Just as war diminished Britain, so will it diminish the dollar and the United States.