Friday, May 29, 2015

China Nears Global Reserve Status, Russia Set To Triple Nuclear Supersonic Bomber Force, Greece Delays Continue - Risk Of Contagion Increases

China Nears Global Reserve Status: “There Will Be a Reset of the Financial Industry”

The world is anticipating a new global reality with huge implications: China's yuan is poised to get recognized as a global reserve currency.

In a sign of the times, the IMF has essentially rebuffed U.S. claims of currency manipulation, to instead affirm that China's currency is "no longer undervalued" – essentially giving its approval for the inner circle what many have described as an incubating world currency.

China's yuan currency, which Washington has long alleged was manipulated, is "no longer undervalued," the International Monetary Fund said Tuesday.
The value of the yuan, also known as the renminbi, has been a source of tension for years, with China's major trade partners — led by the United States — accusing Beijing of keeping it artificially low to give Chinese exporters an unfair competitive advantage, which Beijing denied.
"Our assessment now is that the substantial real effective appreciation over the past year has brought the exchange rate to a level that is no longer undervalued," the IMF said in a statement after a consultation mission to China.

With longstanding U.S. opposition to China's currency status, the IMF decision has been seen as the biggest hurdle to world reserve status. This news brings China one giant step closer to entry onto the global stage of currencies and new financial norms for Americans

The decision underscores a larger shift in the global balance of power – there is no doubt that there are serious cracks in the foundation – as the U.S. petrodollar has lost its potency as the world reserve currency hegemony.

U.S. allies have been easily won over to recognizing China, and partnering with its Asian Infrastructure Investment bank, signaling a new era for finance under globalism. The new currency will be pegged to a global basket that China is part of.
What will this new currency look like, and will it become a reality? A mining executive shed light on the manipulation of gold behind the scenes, with a quest for parity undervalue that is encouraging China to accumulate gold at a rapid pace, so that it can hold reserves equivalent to those the U.S. reportedly holds:
I think there will be a reset of the financial industry…

I think China is being allowed to accumulate gold purposefully by the American government… I believe that the Chinese need to own at least the same amount as the U.S. owns before this reset occursI think that there's some kind of deal that's being made between all the central banks behind the scenes and that's why you're seeing governments accumulating the metal.

It could mean a major shake up to the norms that Americans and other westerners have been accustomed.
But beyond that, the currency will ultimately be digital. Cash will likely be banned to enhance control, and all payments will be authorized and monitored. Through a new wave of bank fees and fines, and (outrageously) charges for deposits, average people will be hurt on all sides of transaction by money that has been thoroughly debased and manipulated.
The Federal Reserve Bank and its owners, the largest banks on Wall Street, want badly to be able to charge you interest for the privilege of depositing your funds. The problem is getting you to stand for it.

The cashless digital grid will become fully a tool of banker control that is global in scope and backed at its root by central planning at central banks supported by a system of total consumer surveillance over spending, exchanges and all other transactions.

Russia will purchase at least 50 of the newly revived Tupolev Tu-160 (Blackjack) heavy strategic bombers, dramatically increasing its arsenal.
As The National Interest previously reported, last month Russian Defense Minister Sergei Shoigu announced that Russia would resume production of the Tu-160 strategic bomber, a Soviet-era aircraft that is capable of carrying both conventional and nuclear weapons.

Moscow will purchase at least fifty of the Tu-160 strategic bombers once production resumes.

This will dramatically increase Russia’s bomber capabilities as only fifteen Tu-160s currently remain in service (about 35 were originally built, according to Russian media outlets). That is at least a 333 percent increase in the number of Tu-160s in Russia’s arsenal.

Bondarev further revealed that the decision to restart production of the Tu-160 was made by Russian President Vladimir Putin. "The supreme commander [president of Russia] and the Russian defense minister have taken a decision on reviving production of the Tu-160M aircraft,” TASS, a Russian government news outlet, quoted Bondarev as saying.

A failure to reach an agreement on Greece's aid program soon may drive yields on bonds issued by other euro-area countries higher, the European Central Bank said.
"In the absence of a quick agreement on structural implementation needs, the risk of an upward adjustment of the risk premia demanded on vulnerable euro-area sovereigns could materialise," the ECB said in its twice-yearly Financial Stability Review published Thursday in Frankfurt. "The lengthy and uncertain process of negotiations between the newly formed Greek government and its creditors" has already contributed to bouts of extreme volatility in Greek markets, it said.

Three months after taking office, the new Greek government has still failed to reach agreement with its creditors to unlock bailout funds, bringing it ever closer to default. While ECB policy makers have claimed the region is better insulated against a disorderly Greek outcome than previously, a failure to meet payments could still create spillover effects for bond markets in neighboring countries as well as domestic banks.
"The market cannot have fully discounted the Greek endgame because we don't know what it will be," said Steve Barrow, head of Group-of-10 strategy at Standard Bank in London. "Contagion risks from a bad Greek outcome cannot be brushed aside but, at the same time, we tend to think that we won't get a 'bad' outcome for Greece, at least not now."

We stand today in a nation that has become deeply corrupt, steeped in sin and clearly falling under the Lord's judgment for it. The church has been largely silent for decades as the corruption has metastasized, and now all our institutions are run by those clinging to the poison of Godless, tyrannical ideology. Our kids are being indoctrinated in the public schools to believe everything but God's moral truth. Our federal government has been taken over by communists who are hell-bent on destroying the foundation of freedom on which our nation was built. In addition, we have a man in the White House who has done more than any past president to push the devilish radical homosexual agenda. Countless millions of dollars have been spent on the homosexualist propaganda campaign, which has also been exported around the world from the United States. This does not end well.

As we await the Supreme Court's ruling on marriage—a ruling, by the way, it has NO authority to make—many of us dread that the Court will side with perverse sexual degeneracy in the destruction of the meaning of marriage. With this, we will see a further erosion of our fundamental freedoms. This is inevitable, and it's the goal of the reprobates leading this movement, because whether these pawns of the devil realize it or not, they are his pawns and are being willingly manipulated to do Satan's dark will.

While we certainly have human enemies aligned against us, our true enemies are Satan, his demons and the spiritual wickedness of those in places of great power. As Christians, we have read the end-times prophecies, and we know the warnings Jesus gave us about how awful things will become in the last days. Satan is working feverishly to fully cement his terrible, earthly rule and bring those hellish days to fruition.

The Godless communists (or fascists, if you prefer) are using the homosexual agenda to work toward eradicating Christian opposition to their plans, which are Satan's plans. If you know your Bible, then you know that Christianity is destined to be outlawed. We are moving steadily toward a time when Christians here in America will be in danger of state-sanctioned murder for their beliefs. If you think I exaggerate, then you don't know what God has already told us, or perhaps you mistakenly believe that the United States is the exception, that it can't happen here. Christians throughout the world have always been persecuted, but here in the United States, we have enjoyed unparalleled protection and freedom during the existence of our nation. That protection is quickly being eroded, and the homosexuals are used as pawns in this process...we must not lose sight of the real nature of the battle. It's a spiritual battle, and we must approach it as such, putting on the full armor of God, as best we can, if we are to have any hope of turning back this truly evil tide.

“A Government big enough to give you everything you want, is a government big enough to take away everything you have.” ~ Thomas Jefferson

For decades, the American people have been turning everything they possibly can over to the state to take care of, convinced by government officials that they can avoid work and responsibility and just have fun, be entertained, and get free stuff.
The entire time, libertarians (of all ilks) have been warning and warning and warning the people that doing so, in exchange for whatever benefits they think they’ll get in return, will ultimately result in an out-of-control, authoritarian government…aka, a police state. Oh—and a collapsed economy.

So now, as more and more people are becoming more and more aware that this is exactly what is happening, and they act surprised and outraged over the daily abuses, rights violations, crimes, unaccountability, impunity, and so forth from the politicians and their paid enforcers, and they see that the people are becoming more and more impoverished, and there are fewer and fewer jobs (even low-paying jobs), and the economy is collapsing all around us—I can’t help but think that the American people are getting exactly what they wanted—because this is exactly what happens when you do what this nation been doing for generations now.

After all, they were warned. Over and over. But nobody would listen.

(I’ll stop short of saying the American people are getting exactly what they deserve, or a uttering a gloating “See I told ya so”—I’m neither that crass nor that arrogant; my heart goes out to these victims of state oppression, my fellow citizens—and I’d like to see them finally understand the problem, and strive to turn things around, not just sit here and thumb my nose. That’s not helpful to anybody.)

But what’s truly astonishing is that even with things as bad as they are now—undeniably bad, and getting completely out of control—and even with libertarians pointing out the accuracy of the warnings and predictions (after all, all you have to do is look at history, excessive government power and control always turns out this way)—people STILL won’t listen! They’re still looking to the same government officials, the same Dems/Reps, the same authoritarian, unaccountable system, and demanding that they do something, that they fix the problems, that they take care of everything.
From what I’ve seen, nobody in mainstream society is talking about scaling it all back—about cutting funding (taxes/borrowing/printing), about cutting budgets or de-militarizing the police, about electing candidates not of the two controlling parties, about dismantling the lawless federal government or dissolution of the union via state secession, about returning to the principles of unalienable human rights, personal liberty, individual sovereignty, private property rights, and personal responsibility—none of it. People seem to just want the government to stop doing what it does—even though what it’s doing is exactly what governments do;  always have, always will.
I can only imagine that the cognitive dissonance must be highly perplexing, if not crippling.

At this point—with things as bad, and obvious, as they’ve gotten—I fear that if the American people still don’t get it…it’s likely they never will.

Also see:

Iran Nuke Deal Faltering, Japan Issues Highest Alert, Evacuation Warnings After Volcano 'Explosively' Erupts

Iran Nuke Deal Negotiations Faltering

In what should be a surprise to no one, the negotiations with Iran over its nuclear program haven’t been going very well.  The agreed-upon “deadline” is about a month away, but no one expects it to be met.  The only question is just how many concessions President Obama, leading the “P5+1” group of countries, is willing to make for the sake of any deal at all.

In the “framework” deal of April 2nd, Iran apparently agreed to allow inspections of its “suspicious” nuclear sites.  But a week ago, the Supreme Leader of the nation, Ali Khamenei, backed off any such promise and swore to prohibit anything of the sort.  He said this during a speech he made Tuesday to military leaders in his capital:

The other non-agreement is over when sanctions against Iran would be relieved.  The West believes that Iran’s access to money and credit and trade should be granted over time, as Iran verifies its disarmament.  Iran wants to be relieved of sanctions immediately upon signing the deal.

But this week, it seems, even the P5+1 position is fracturing.  In what seems as much a warning to President Obama and John Kerry as it is to Iran, France announced that unless Iran agrees to inspections at “all” Iranian sites, including military sites, it could not participate in any deal.  Laurent Fabius, France’s foreign minister, told his Parliament Tuesday: “Yes to an agreement, but not to an agreement that will enable Iran to have the atomic bomb.”  An agreement “will not be accepted by France if it is not clear that verifications can be made at all Iranian facilities, including military sites,” said Fabius.

It is somewhat odd to see France adopting the hardline position and the USA taking the “deal at any price” position, but such is the new reality: no such “clarification” of the absolute necessity of nation-wide inspections was issued by the US State Department.

Even the UN is out in front of John Kerry.  Monday, Yukiya Amano, chairman of the UN’s nuclear monitoring agency (the IAEA), reminded the world that Iran (on April 2nd) had already agreed to implement the Additional Protocol of the Nuclear Non-Proliferation Treaty (NPT), which allows for snap inspections.

These clarifications of France and the IAEA put the Obama Administration in a bind: they set the bottom threshold beyond which no consensus in the P5+1 is possible. Without “anywhere, anytime” inspections, Iran is essentially free to pursue its nuclear bomb in secret, all the while denying the obvious, and free of sanctions in the bargain.  Such a deal would essentially pay Iran to develop its nukes with the new money from sanctions relief.

Perhaps that’s the whole goal of the Obama Administration.  If so, it would be hard to distinguish the public statements and negotiating stance from its actual, current positions taken.  Congress, which can in theory repudiate any such agreement, would do well to remember the lamentable experience of Saddam Hussein’s Iraq, which actually did agree to snap inspections after the Gulf War.

 In contrast to the Iraqi army’s failures, Kurdish fighters in Syria are on the march against the Islamic State group, capturing towns and villages in an oil-rich swath of the country’s northeast under the cover of US-led airstrikes.

As the Kurds close in on Tel Abyad, a major commercial center on the Turkish border, their advance highlights the decisive importance of combining airstrikes with the presence of a cohesive and motivated ally on the ground — so clearly absent in Iraq.

In Syria, a country now split mostly between al-Qaeda-style militants and forces loyal to President Bashar Assad, the US has found a reliable partner in the country’s main Kurdish fighting force, known as the People’s Protection Units, or the Kurdish acronym YPG, founded by the Kurdish Democratic Union Party. They are moderate, mostly secular fighters, driven by revolutionary fervor and deep conviction in their cause.

Since the beginning of May, they have wrested back more than 200 Kurdish and Christian towns in northeastern Syria, as well as strategic mountains seized earlier by IS. Along the way, they have picked up ammunition, weapons and vehicles left behind by Islamic State fighters.
The push has gotten them closer to Tel Abyad, a major avenue for commerce for the extremist group through which it smuggles foreign fighters and sells black-market oil to help fund its conquests. The city is also a key link between Turkey and the northern Syrian city of Raqqa, the Islamic State group’s de-facto capital in its self-declared caliphate.
“The YPG doesn’t lack a will to fight, like soldiers in the Syrian army, or soldiers in the Iraqi army who mostly fight for a salary,” said Wladimir van Wilgenburg, a Middle East analyst at the Jamestown Foundation in Washington. “The YPG is much more motivated than other forces in the region, and doesn’t lack cohesion and doesn’t have coordination problems.”
Syria’s Kurds have shown remarkable cohesiveness. Spurred by ideology and nationalistic fervor, they fought ferociously to claw back territory after Islamic State militants captured the Kurdish town of Kobani and dozens of surrounding villages last fall. The IS descent on Kobani led the US to widen its air campaign from Iraq into Syria to assist the Kurds.

Despite the fact that IS had heavy weapons and far more fighters, the Kurds resisted the offensive on Kobani, conducting fierce street battles until the US air-dropped weapons and intensified the airstrikes.

In January, the YPG liberated Kobani from the Islamic State militants and began a wide offensive in which they regained much of the territory they had lost.

The Kurds are now closing in on Tel Abyad with fighters moving east from Kobani and west from Hassakeh — an offensive that, if successful, would open a direct line between Kurdish-controlled territory along the border with Turkey.

Such a move is likely to anger Turkey, which sees the YPG as part of the Kurdish PKK movement that has waged an anti-government insurgency in southeastern Turkey.

“Tel Abyad is going to be the next target. We want to strangle Daesh,” said Nawaf Khalil, a Kurdish official who currently heads the Europe-based Center for Kurdish Studies, using an Arabic acronym for IS.
The latest village to fall was Mabrouka on Tuesday, bringing the Kurdish force closer to Tel Abyad. The fighting has killed 532 Islamic State militants, the YPG said.
The Kurds are backed by Arab tribesmen, Assyrian Christian gunmen and members of the rebel faction known as Burkan al-Furat — Arabic for the “Volcano of the Euphrates.”

First, earthquakes; then tsunamis; then household spending collapses for the 13th month in a row... and now Japan is dealing with a volcano. NHK reports that Kuchinoerabu-jima, a volcano on Kuchinerabu Islands (off the southern-most tip of Japan) has erupted "explosively." Officials have asked local inhabitants to evacuate the area. As yet there are no reported injuries.

Bloomberg reports,
  • Japan Meteorological Agency raises warning level on volcano on island of Kuchinoerabujima, off southern coast of Japan’s Kagoshima, to highest level of 5 after “explosive” eruption.
  • Level 5 warning calls for evacuations
  • Pyroclastic flow after volcano has reached coast
Volcano name Kuchinoerabujima eruption alarm (residential areas)
Heisei 07 minutes at 27 May 29 June 10 Fukuoka District Meteorological Observatory Kagoshima Local Meteorological Observatory
** (Heading) **

?Please refer to the strict vigilance (correspondence of evacuation, etc.) in a residential area of ??interest.

As Michael Snyder of The Economic Collapse blogyou may not have noticed, but our planet is becoming increasingly unstable.  According to Volcano Discovery, 40 volcanoes around the globe are erupting right now, and only 6 of them are not along the Ring of Fire.  If that sounds like a very high number to you, that is because it is a very high number.  As I have written about previously, there were a total of 3,542 volcanic eruptions during the entire 20th century.  When you divide that number by 100, that gives you an average of about 35 volcanic eruptions per year.  So the number of volcanoes that are erupting right now is well above the 20th century’s average for an entire calendar year.  And of course we are witnessing a tremendous amount of earthquake activity as well.  Nepal was just hit by the worst earthquake that it had seen in 80 years, and scientists are telling us that the Himalayas actually dropped by an astounding 3 feetas a result of that one earthquake.  How much more does our planet have to shake before people start paying attention?

Of course the things that we have been seeing lately are part of a much larger long-term trend.  Seismic activity appears to have been getting stronger over the past few decades, and now things really seem to be accelerating.  The following is how one news source recently summarized what we have been witnessing…
But of course most Americans are never going to care about any of this until it starts affecting them personally.
Well, perhaps they should start paying attention to the warning signs.  In recent weeks we have seen significant earthquakes in Michigan, Texas, Mississippi, California, Idaho And Washington.  In addition, it is being reported that pressure is building in dormant volcanoes in Arizona and California.  Just because we have not had a killer earthquake or a large volcanic eruption in the U.S. in recent years does not mean that it will always be that way.  Right now the entire planet appears to be waking up, and this especially seems to be true of the Ring of Fire.

And right now, just about every other part of the Ring of Fire is shaking violently.
For example, a magnitude 6.8 earthquake just hit Japan on Wednesday

A magnitude-6.8 earthquake that shook northeast Japan on Wednesday was an aftershock of the devastating 2011 quake that triggered a massive tsunami and nuclear power plant meltdown.

“We consider this morning’s earthquake to be an aftershock of the 2011 Northeastern Pacific Earthquake,” said Yohei Hasegawa, an official at the Japanese meteorological agency.

The temblor, which struck just after 6 a.m. local time (5 p.m. ET Tuesday), was sparked by the Pacific tectonic plate “subducting,” or moving under, the main land plate, he added.
Hasegawa warned that more tremors may be on the way.

One Japanese expert is warning that Japan “might have entered an era of great earthquakes and volcanic eruptions“, and considering the immense devastation that the great earthquake and tsunami of 2011 caused, that is a very sobering assessment.
Meanwhile, a series of very strong earthquakes have struck Papua New Guinea recently as well.  The following comes from the Washington Post

A powerful earthquake rattled Papua New Guinea on Thursday, the fourth strong quake to hit the South Pacific island nation in a week. The temblor prompted officials to issue a local tsunami warning, but it was lifted shortly afterward with no reports of damage.

The 7.1-magnitude quake struck about 150 kilometers (94 miles) southwest of the town of Panguna on Bougainville Island at a depth of 23 kilometers (14 miles), the U.S. Geological Survey reported.

Once again, just because things have always been a certain way does not mean that they will always be that way.
As Americans, we are not accustomed to being concerned about major earthquakes and massive volcanic eruptions, but that could soon change in a big way.
The truth is that our planet and our sun are changing in ways that are unpredictable and that our scientists don’t completely understand.
For example, a recent LiveScience article discussed the fact that scientists are deeply puzzled by the fact that the magnetic field of our planet is getting weaker 10 times faster than previously believed…

For years, I have warned that we will face our worst nightmare – the collapse of socialism. In the death throes of this abomination that even the Ten Commandments listed as a serious sin, equal to “thou shalt not kill”, government will become the ugly beast that will devour society to retain power.

Of course, they will never see themselves that way, but they will justify in their minds that stripping us of our freedom, rights, privileges, and immunities, is necessary to maintain socialism for the good of the people.

Karl Marx, who sought to change society by sheer force, set all this in motion. What has taken place is really scary, for indeed they have altered society far more than anyone dares to ponder.
Why is this Sovereign Debt Crisis collapse different from 1931? When the governments of the world defaulted on their debts in 1931, there were no pension funds. Government has exempted itself from all prudent reason for you take the state operated pension funds, like Social Security in the USA, where 100% of the money is in government bonds. They may have no intention of defaulting, but very few government have ever paid off their debts in the end. Then there are states who regulate pension funds requiring more than 80% to be in government bonds.
A Sovereign Debt Default this time around will wipe out socialism, yet the bulk of the people are clueless not merely about the risk, but the ramifications. Younger generations do not save to support their parents for that was government’s job post-Great Depression. Socialism has altered thousands of years of family structure following the ranting of Karl Marx. This has been one giant lab experiment that ended badly in China and Russia and is coming to a local government near you.
So this time it is SUBSTANTIALLY DIFFERENTGovernment is now on the hook, which is part of the reason why they are moving to eliminate cash to prevent bank runs and to force society to comply with their demands. This is why we have people like Gordon Brown, who sold Britain’s gold reserves in 1999 making the low, claiming now that eliminating cash will eliminate the boom and bust of the business cycle. Let’s face it, Gordon Brown has NEVER been right when it comes to politics, not even once, and he has been the worst manager of finance that Britain has ever known. He sold the low in gold and now he presumes he can fulfill Marxism by eliminating cash. He postulates ideas that are theory without any support whatsoever. We cannot afford more arrogant people like this in politics who believe they have a right to experiment with society.
This time it is very differentThey have wiped out society placing the entire scheme of socialism as a terrible nightmare that will end badly, and they have ruined the social family structure disarming people that for thousands of years was our very means of self-sufficient survival. These clown have set the tone for wiping out the dreams they sold the elderly, all while hunting taxes and causing job creation to implode as the youth has been converted into the lost generation. All this with pretend good intentions. Can you imagine the damage to society if they had actually intended this mess? They have lied to themselves and to the people. We have to crash and burn – that part is inevitable. Only when the economy turns down will we then argue over solutions.