Cracks in Dollar Are Getting Larger

 

Many Daily Reckoning readers are familiar with the original petrodollar deal the U.S made with Saudi Arabia.

It was set up by Henry Kissinger and Saudi princes in 1974 to prop up the U.S. dollar. At the time, confidence in the dollar was on shaky ground because President Nixon had ended gold convertibility of dollars in 1971.

Saudi Arabia was receiving dollars for their oil shipments, but they could no longer convert the dollars to gold at a guaranteed price directly with the U.S. Treasury. The Saudis were secretly dumping dollars and buying gold on the London market. This was putting pressure on the bullion banks receiving the dollar. Continue reading

Chinese spy ship arrives at giant U.S.-led naval exercise off the coast of Hawaii

A giant U.S.-led naval exercise with 22 nations from around the world got an unexpected visitor on Sunday — a Chinese spy ship perched in international waters.

The 24th Rim of the Pacific exercises (RIMPAC) in and around the Hawaiian Islands features more than 200 aircraft and 25,000 personnel. China is part of a host of nations taking part, which also includes Australia, Canada, France, Japan, the Republic of Korea, the Republic of the Philippines, the United Kingdom and others. Continue reading

China plots strategic coup in the Pacific

Despite commentary that China and the United States are moving closer together, the opposite is the case. In fact, China is mounting a direct, if subtle, challenge to the international order the United States created in the Far East after World War II. Most are aware that China is attempting to leverage growing military strength into a larger, dominating position by laying claims to islands in the East and South China Seas. Few realize that China is attempting to overturn the legal underpinnings of the US position in the western Pacific.

Like the Chinese proverb “to point at the mulberry tree to curse the locust tree”, Beijing’s challenge to Japan’s sovereignty over the Senkaku Islands is in fact a bid to abolish the entire structure of Far Eastern international relations established by the San Francisco Treaty of September 1951. (The Chinese refer to the Senkakus as Dyiaoyutai, literally a “fishing platform”, but in recent months Beijing has taken to calling Dyiaoyutai the Dyiaoyu Islands to add legal heft to the dispute.) Continue reading

Turkey Stakes Claim in America With $100 Million Mega-Mosque

The government of Turkey is building a 15-acre, $100 million mega-mosque in Lanham, Maryland. Turkey’s Prime Minister Erdogan visited the site on May 15 as part of his official visit to the U.S.. The state of Maryland was officially represented at the event by its Secretary of State John McDonough.

The event was also attended by the leaders of two U.S. Muslim Brotherhood entities. Continue reading