Russia Announces Decoupling Trade From Dollar

We’re could very well be looking at the begining of the end of Pax Americana and a new chapter in the books of world history. If bets were to be placed on who the world’s next superpower would be, look no further than the EU, the world’s largest economy with the German Fourth Reich at the helm. Some say China and Russia, but the world still has major mistrust in both of them.

All the years of warnings were laughed at, but as the saying goes: Today’s jokes are tomorrow’s reality. The United States is about to be hit with One Clenched Fist.

China will re-open the old Silk Road as a new trading route linking Germany, Russia and China

April 08, 2014 “ICH” – Russia has just dropped another bombshell, announcing not only the de-coupling of its trade from the dollar, but also that its hydrocarbon trade will in the future be carried out in rubles and local currencies of its trading partners – no longer in dollars – see Voice of Russia

Russia’s trade in hydrocarbons amounts to about a trillion dollars per year. Other countries, especially the BRICS and BRCIS-associates (BRICSA) may soon follow suit and join forces with Russia, abandoning the ‘petro-dollar’ as trading unit for oil and gas. This could amount to tens of trillions in loss for demand of petro-dollars per year (US GDP about 17 trillion dollars – December 2013) – leaving an important dent in the US economy would be an understatement. Continue reading

The new ‘silk road’, a rail link from China’s factories to heart of Europe

FRANKFURT: One of the world’s longest railways — a “modern-day silk road” — covers some 11,000 kilometres (24,000 miles) en route from the Chinese megacity of Chongqing to Duisburg, a key commercial hub in western Germany.

On Saturday, as part of his landmark visit to Germany, Chinese President Xi Jinping visited the last stop on the “Yuxinou” rail line, an industrial feat that promises to revolutionise transport between Europe and Asia.

Duisburg is a steel-making town of around half a million on the confluence of the Rhine and Ruhr rivers that boasts the world’s biggest inland port and is one of Germany’s most important transport and commercial hubs.

Despite the vast distances between them, it takes just 16 days for trains to travel to Duisburg from Chongqing, a sprawling metropolitan symbol of rising China with a population of more than 30 million. Continue reading

China’s New Silk Road Must Pass Through Middle East

JERUSALEM — Three hundred kilometers by high-speed rail between the cities of Eilat and Ashdod, connecting the Red Sea coast to the Mediterranean: They call it the “Red-Med” Project.

Financed by Beijing and launched from Jerusalem, China has revealed its strategy for “West Asia” — the term that the China Shipping Container Lines company uses to delineate the area of operations between Hormuz, Suez and Haifa.

The use of the term West Asia rather than Middle East is no accident — this gives precedence to the size of the economic link with China rather than the ever troublesome geopolitics of the region. Continue reading

American and Chinese geo-economic interest in a New Great Game in Central Asia

Captain Arthur Conolly, a British officer of the Sixth Bengal Native Light Cavalry, coined the concept of the ‘Great Game’ in the 1830s. Later, the English writer Rudyard Kipling immortalized the concept in his 1901 novel Kim. In basic terms, the Great Game was simply a struggle for power, territorial control, and political dominance between the Russian and British Empires in Central Asia in the nineteenth century. This competition of manoeuvring and intrigue between the two empires came to an end in 1907, when both nations were forced to focus their resources on more serious threats. The British had to gear up and contain the rise of an assertive Germany in Europe, and the Russians were locked in a fierce struggle with the Japanese in Manchuria. Continue reading

Turkey, Azerbaijan lead revival of modern Silk Road

Hundreds of high-level political figures, CEOs and international experts from around the world explored the economic, political and strategic potential of the region at the third Caspian Forum in Istanbul. Experts and politicians discussed the latest about the Caspian region, particularly efforts to transport its energy resources to an eager European market. Experts described the Caspian as the centre of trade relations between East and West and as the new centre of energy for the world.

Participants at the December 5th forum also discussed the latest on transportation projects designed to establish a modern Silk Road trade route that would link Asia and Europe. Turkey and Azerbaijan have been at the centre of those efforts. Continue reading

Putin in Seoul to push new ‘Silk Road’ via North Korea

Russia’s president pursues dream of new ‘Silk Road’ passing through North Korea into the South en route to Europe during Seoul visit

Russian President Vladimir Putin was in South Korea on Wednesday to push a pet project for a new major trading route linking Asia and Europe by rail that requires prying open North Korea.

Putin hopes his brief visit will include the signing of a memorandum of understanding on the ambitious project, which envisages an ‘Iron Silk Road’ uniting the rail networks of South and North Korea and connecting them to Europe via the Trans-Siberian Railway. Continue reading

China plans Maritime Silk Road with ASEAN nations: Report

China is the 10-member ASEAN group’s largest trading partner, with the two-way trade exceeding $400 billion last year

China proposes to build a Maritime Silk Road with Southeast Asia countries where it is locked in a vexed dispute over the South China Sea to boost its foreign trade, state media here reported today.

The Maritime Silk Road (MSR) formed the basis the plans to enhance trade between China and ASEAN countries during the current visit of Chinese President Xi Jinping to Indonesia and Malaysia where he stated the MSR would help turn the “Golden Decade” between China and the region into “Diamond Decade”. Continue reading

Xi’s speech on China-Central Asia ties catches global attention

For more information on the Silk Road and its possible revival, click here and also here.

BEIJING, Sept. 8 (Xinhua) — Foreign experts spoke highly of Chinese President Xi Jinping’s speech on China’s foreign policy toward Central Asia, referring to the Silk Road economic belt he proposed as a grand cause benefiting regional countries.

Xi, currently in Kazakhstan for a state visit, proposed that China and Central Asia join hands to build a Silk Road economic belt to boost cooperation, in a speech delivered at Nazarbayev University on Saturday.

The Silk Road boasts a three-billion population and a market that is unparalleled both in scale and potential, said Xi, urging relevant parties to facilitate trade and investment and remove barriers. Continue reading

SCO contemplates expanding membership

By opening its doors to India, Iran and Pakistan, the Shanghai Cooperation Organization will increase its legitimacy and effectiveness among regional and international powers, and enhance its power posture in the international scene.

During the recent meeting of foreign ministers of Shanghai Cooperation Organization (SCO) at Cholpon-Ata, Kyrgyzstan, the Chinese Foreign Minister, Wang Yi emphasized how the group has “actively pushed forward the regional cooperation.” He also reiterated that China would abide by its “policy of friendship and partnership with neighbouring countries.” This spirit of cooperation or what is referred in sections of media as ‘Shanghai Sprit’ was also reiterated during the meeting of defence ministers of the group held in last week of June 2013 in the Kyrgyz capital, Bishkek. The widening of the SCO’s membership to include India, Iran and Pakistan will accrue numerous advantages to the group and strengthen its capacity to realise its goal of regional peace and stability. Continue reading

China to revive ‘Southern Silk Road’

A partial unification of Asia begins, under the Chinese umbrella.

KUNMING – China is looking to revive the ancient “Southern Silk Road” linking its southwestern regions with Southeast and South Asia, as it aims to boost cooperation with countries along the once-booming trade route.

China has had trade, religious and cultural exchanges with South Asian countries by way of the “Southern Silk Road” since ancient times, Dilip Barua, Minister for Industries of Bangladesh, said at the ongoing 8th China-South Asia Business Forum in Kunming, capital of southwest China’s Yunnan province.

With a history of more than 2,000 years, the ancient trade route, stretching over 2,000 kilometers long, was dubbed the “Southern Silk Road” by historians. Continue reading