The EU’s Arrogance


BERLIN/LONDON(Own report) – With nearly double-digit billions in losses, the German business community would be the main loser of a “hard Brexit” among the remaining EU members, according to a recent analysis on the upcoming Brexit. The EU27 would thus face greater losses than the UK, should Brexit not be followed up with a comprehensive trade and tariff agreement. German companies must expect annual losses of around nine billion euros. The German automotive industry most likely will be the hardest hit. At the moment, a “hard Brexit” seems more likely, because Brussels refuses to include in a post-Brexit trade agreement not only the protection of EU interests but also access to UK financial services. Due to the EU’s obstructionist policy, public opinion is growing increasingly sour toward Brussels. Even British Brexit opponents are lamenting the “EU’s arrogance” and warning that “a Britain that feels humiliated by the EU could be an uncomfortable neighbor.”

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China Reveals Largest Defense Budget In Three Years


China’s government has been relatively vocal in transforming itself into a serious threat against the West — by modernizing its military in anticipation of future wars with Washington. It it therefore not surprising when the official Xinhua news agency reports that China will increase its defense budget by 8.1 percent in 2018, up marginally from last year’s 7 percent.

China has undoubtedly given America’s military-industrial complex and clueless politicians in Washington a stern message, by increasing its defense budget to the highest levels in more than three years, even as the country insists it does not mean harm. Continue reading

China’s Holdings of U.S. Debt Down 10%


( – Chinese holdings of U.S. Treasury securities are 10.0 percent below their peak level which was attained in November 2013, according to data published by the U.S. Treasury.

U.S. government debt held by entities in the People’s Republic of China peaked at $1,316,700,000,000 in November 2013, according to the Treasury. Continue reading

Now, a Trade War — Is a Shooting War Next?



A popular thesis since the 1930s is that a natural progression exists from currency wars to trade wars to shooting wars. Both history and analysis support this thesis.

Currency wars do not exist all the time; they arise under certain conditions and persist until there is either systemic reform or systemic collapse. The conditions that give rise to currency wars are too much debt and too little growth.

In those circumstances, countries try to steal growth from trading partners by cheapening their currencies to promote exports and create export-related jobs. Continue reading

Russia Claims to be Ready for SWIFT Cutoff


U.S. And Its Allies Are Considering The Move To Ensure Russia Complies To UN Sanctions On North Korea.

Russian Deputy Prime Minister Arkady Dvorkovich reportedly told state-run media his country’s banking system is fully prepared to “survive” if the U.S. and its Western allies cut off access to the Society for Worldwide Interbank Financial Telecommunication. Continue reading

EU goes Head-to-Head with USA in growing currency war – ‘We are Concerned!’


Washington and Brussels are locking horns in a dispute over currency, tax and trade [Getty]


THE EUROPEAN Central Bank has accused the US of manipulating exchange rates as tensions between Brussels and Washington continue to escalate wildly.

The ECB is concerned the US is attempting to exert “political influence” on exchange rates, with the issue set to explode into outright confrontation at an upcoming G20 meeting.

The eurozone bank said it was “certainly concerned” by perceived attempts to influence the exchange rate in favour of the US dollar.  Continue reading

Iran and Russia Just Revealed How They’ll Upend the Petrodollar


Iran and Russia just took a page out of Venezuela’s playbook.

Like Caracas announced on Dec. 4, Moscow and Tehran are looking into cryptocurrencies as a means of upending the U.S. petrodollar’s reign over the global oil market, Cointelegraph reported on Dec. 11.

For its part, crypto’s rise in popularity of late does make for an enticing investment choice, especially with Bitcoin’s 150% surge over the past month. Continue reading

Russia May Turn To Cryptocurrencies For Oil Trade



Russia may be looking to use cryptocurrencies for oil trade to avoid payments in U.S. dollars and limit the impact of the U.S. sanctions, Russia’s government-backed outlet RT reports.

The bitcoin mania—on which the jury is still out whether it will be the biggest bubble in history or a success—could be a “fresh catalyst” for countries that want to ditch the U.S. dollar in oil trade, according to Stephen Brennock, an oil analyst at PVM Oil Associates. Continue reading

Russia, China, India Unveil New Gold Trading Network

Deputy Governors of the People’s Bank of China and Bank of Russia sign Memorandum on Gold Trading, Sochi, September 2017. Photo: Bank of Russia


One of the most notable events in Russia’s precious metals market calendar is the annual “Russian Bullion Market” conference. Formerly known as the Russian Bullion Awards, this conference, now in its 10th year, took place this year on Friday 24 November in Moscow. Among the speakers lined up, the most notable inclusion was probably Sergey Shvetsov, First Deputy Chairman of Russia’s central bank, the Bank of Russia.

In his speech, Shvetsov provided an update on an important development involving the Russian central bank in the worldwide gold market, and gave further insight into the continued importance of physical gold to the long term economic and strategic interests of the Russian Federation.

Firstly, in his speech Shvetsov confirmed that the BRICS group of countries are now in discussions to establish their own gold trading system. As a reminder, the 5 BRICS countries comprise the Russian Federation, China, India, South Africa and Brazil. Continue reading

Russia Warns of ‘Financial War’ With U.S.

Russia Warns of ‘Financial War’ With U.S.

Russian Finance Minister Anton Siluanov has warned of a possible “financial war” with the U.S. if its central bank assets are frozen or seized as part of economic sanctions.


In a sudden and somewhat shocking declaration, Russia’s financial minister has declared that any attempt by the U.S. to seize his country’s gold reserves would be deemed an act of war.

Anton Siluanov was announcing his government’s new budget and how it was crafted with likely U.S. sanctions in mind. Then, he added:

“If our gold and currency reserves can be arrested, even if such a thought exists, it would be financial terrorism.” Continue reading

Russia, China Mull Payment System to Bypass U.S. Sanctions

After signing an agreement with Chinese Premier Li Keqiang on Wednesday, Russian Prime Minister Dmitry Medvedev suggested the two countries consider linking their payment systems in a move that would allow both countries to skirt much of the economic pressure created by U.S. sanctions.


In the face of withering sanctions imposed by the U.S., Russia has reached out to China to consider a payment system that allows them to bypass the American banking system, thereby avoiding sanction restrictions. Continue reading

The Home Game Has Arrived: Lessons from the 10th Asymmetric Threat Symposium


Last week I was privileged to attend the 10th Asymmetric Threat Symposium. It’s not the first of these I’ve attended but was clearly the best. Maybe the participants felt less restrained by politics and thus spoke more directly to the issues we truly face. Or maybe the quality of experts is rising. For whatever reason, the event was candid and sobering, even for me. The event was held near our nation’s capitol and was sponsored by CACI International, the Center for Security Policy, and ISW (Institute for the Study of War). The title:  What Does It Take to Protect America? Combatting Global Asymmetric Threats.

While the rules of the event require that comments be shared without attribution, I’m pleased to offer a recap for our readers. You can read the agenda and see information about prior versions at www.asymmetricthreat.netThe speakers and panelists were impressive. In fact, I counted 36 stars on the shoulders (Admirals and Generals) of about a dozen participants, both active and retired, not to mention academic and civilian experts.

There were many important points covered and I’ll recap just a few:

First, the question was asked and answered. Are we already at war? Continue reading

China Takes Aim At The Petrodollar


China continues to pursue its ambitious plan to make its currency—the yuan—more international.

The world’s top crude oil importer and key oil demand growth driver is now determined to get as many oil exporters as possible on board with accepting yuan payments for their oil.

China is now trying to persuade OPEC’s kingpin and biggest exporter, Saudi Arabia, to start accepting yuan for its crude oil. If the Chinese succeed, other oil exporters could follow suit and abandon the U.S. dollar as the world’s reserve currency. Pulling oil trade out of U.S. dollars would lead to decreased demand for U.S. securities across the board, Carl Weinberg, chief economist and managing director at High Frequency Economics, tells CNBC. Weinberg believes that the Chinese will “compel” the Saudis to accept to trade oil in yuan.

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The Rise of China as a Superpower

Shanghai, China (ISTOCK.COM/LIUFUYU)



It is one of the most impressive economic and political miracles in modern times. And it isn’t over yet.

China is a sovereign state with a population of over 1.3 billion people. The nation possesses the world’s largest economy by some measurements, the world’s largest population and the fourth-largest territory.

These are the building blocks of a superpower. While the world anticipates China gaining superpower status, analysts debate over when and whether its rise will be peaceful.

The Trumpet forecasts that China will continue to grow as a formidable power, combining its strength with Russia. Further, we forecast that it will play a major role in waging economic war that will devastate America.

Where do these forecasts come from? Continue reading

De-Dollarization & Disintermediation – Russian Mobile Phone Operator Issues First Blockchain-Backed Bond


For months now Russia has been moving into the blockchain space in a serious way. I’ve talked about these moves in previous articles(herehere and yes, even here)

But, the latest news is one that should have every one stand up and take notice.

Russian Mobile phone operator, Megafon, issued RUB500 million in zero-coupon blockchain-based bonds recently. This was purely a proof of concept issuance. Continue reading