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America’s cold war on China is no longer just a trade war – it is a war for the Dollar and Federal Reserve

The US provokes China with demoralised sailors, all in the name of the US Dollar, while at the same time, attempting to restrict China’s organically expanding geo-political influence.

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The US has again sailed a Naval destroyer, this time the USS Chafee, through Chinese waters in the South China Sea, in direct violation of Beijing’s sovereign maritime claims over the sea. The US repeatedly provokes China by sailing its vessels through the South China Sea, in a deceptively named strategy called ‘freedom of navigation’, which seeks to undermine Chinese claims to its neighbouring south sea. While other countries with regional maritime claims, including Philippines have begun cooperating with China, the United States continues unilateral provocations against China.

In response to the USS Chafee’s presence in the South China Sea, Beijing scrambled a missile-guided frigate, helicopter and two fighter jets to intercept the US vessel.

China also issued a stern warning to the United States against further provocations. Chinese Foreign Ministry Spokeswoman Hua Chunying has said,

“The US destroyer’s behaviour violated Chinese law and relevant international law, severely harmed China’s sovereignty and security interests, and threatened the lives of both sides”.

Hua further warned that any further such provocations could result in “unwanted incidents”.

She continued,

“In the face of repeated provocation by the US forces, the Chinese military will further strengthen preparation for combat at sea and in the air and improve the defences to resolutely defend national sovereignty and security interests”.

As the US continues to feel threatened by Chinese economic dominance in the global marketplace, Washington’s military provocations in the South and East China Seas, its militarisation of the Korean peninsula and proxy wars along China’s One Belt–One Road trade and infrastructure routes, are likely to increase.

US troops in Europe and the Middle East are there to provoke China more than Russia or Iran

While the US has long felt threatened by Chinese trade and industrial dominance, now the US Dollar is being actively challenged by the growing power of the Chinese Yuan. The Yuan is now positioned to threaten the hegemony of the Dollar as a major trading and reserve currency.

This has expressed itself in the following ways:

–China offering the sale of oil futures contracts in gold backed Yuan

–Countries as wide ranging as Venezuela, Turkey and Russia conducting major bilateral trade in national currencies (as opposed to the US Dollar)

–The possibility of a new BRICS trading standard based on the Yuan, gold or other ‘eastern’ currencies

–The possibility of a BRICS regulated crypto-currency

BRICS in talks to create own cryptocurrency in another blow to US Dollar

Additionally, other nations which have been hit by unilateral sanctions, including Iran, have also showed a willingness to embrace a new Dollar free trading regime with its existing and new partners.

Most worryingly for the US, its longtime Middle Eastern ally Saudi Arabia, may find itself trading oil in Chinese Yuan in the coming years. Chief economist and managing director at High Frequency Economics, Carl Weinberg has spoken with the US based finance outlet CNBC and stated the following, 

“I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them”.

Saudi’s infrequently discussed but good economic relations with Beijing, as well as its warming relations with Russia, indicate that Riyadh is looking towards the wider global ‘east’ and in so doing, may find it self moving towards an energy trade that is independent of Dollar hegemony. This may be accelerated as the US becomes a net energy exporter while China’s demand for oil increases, leaving Saudi and fellow OPEC members in a position where it would become not only necessary but inevitable to trade in Yuan. OPEC member and Sino-Russian partner, Venezuela has already ceased trading its oil in US Dollars. 

In this sense, while the US has often criticised China for pegging the Yuan to the Dollar, the combination of China being willing and able to convert Yuan to gold in respect of oil futures contracts, as well as the increasing global confidence in the Yuan as a reliable trading and reserve currency, may eventually lead to China floating the Yuan or pegging it to another standard.

As China holds billions in US sovereign debut, China holds the fate of the Dollar in its hands more than ever, as now China has many other options at its disposal when it comes to diversifying its monetary policies.

Russia is available to strike peace deal between Iran and Saudi Arabia

In this sense, it is important to see US military provocations against China as symptoms of the wider economic and now monetary pressure the US is feeling as China moves to take its place as the undisputed leading economic power of the world.

In spite of many figures in the US ranging from neo-cons to Steve Bannon, being united around an anti-Chinese campaign, many members of the US armed forces are apparently growing demoralised with their country’s increasingly frequent, yet unfruitful missions to Asia.

Steve Bannon’s China Syndrome reveals America’s jealousy of a China that is ‘great again’

In a recent report form the US based Navy Times, journalists interviewed sailors aboard the USS Shiloh cruiser. The ship which is based in Japan, has been running missions throughout East Asia in an attempt to allegedly deter North Korea.

But far form deterring North Korea, the American seamen have stated that their conditions have left them demoralised and even suicidal.

According to the report,

“Each survey (of US sailors) runs hundreds of pages, with crew members writing anonymously of dysfunction from the top, suicidal thoughts, exhaustion, despair and concern that the Shiloh was being pushed underway while vital repairs remained incomplete.

It feels like a race to see which will break down first, the ship or it’s […] crew”.

The report was commissioned after many members of the USS Shiloh’s crew anonymously contacted the Navy Times to complain of dire conditions.

One American sailor stated,

“I just pray we never have to shoot down a missile from North Korea, because then our ineffectiveness will really show”.

Others described the conditions aboard the USS Shiloh as “prison like” while others warned that “it’s only a matter of time before something horrible happens”.

The incidents aboard the USS Shiloh are not unique. Multiple incidentals, including deadly collisions have recently plagued US Navy ships in Asia over the last year.

USS John McCain collides with oil tanker near Singapore–substantial damage and 10 sailors reported missing

In this sense, one sees US sailors used and abused by their chiefs, preparing for battles which many believe cannot be won, all the while, provoking the Chinese superpower in its own maritime territory.

At the same time, it is crucial to understand that the military endeavours of the US have nothing to do with security the territory or people of the US, but instead follow on from the perceived financial and monetary benefits that the US intends to achieve by disrupting the peace and stability of regions vital for Chinese trade. At the same time, the US is surprised and reacting unreasonably to the reality that as China’s trading, logistical, fiscal and monetary might grows, so too will its geo-political influence necessarily grow. The US being so keen to protect its hegemony, a hegemony built increasingly on excessive military spending and the power of the Federal Reserve’s monetary manipulation, seems unwilling to gracefully accept China’s rise to global prominence as a leading power of the 21st century. China is consequently faced with the perfect storm of the US fighting for its monetary hegemony using its military, all the while attempting to restrain China’s growing political clout.

America fears China’s geo-political power more than China’s economic might

In short, the US is not fighting for the security of its realm, but for the security of the Wall Street based financial industry and that of the Federal Reserve, in addition to the overarching geo-political hegemony that both have allowed the US to exercise with impunity.  It is not a transparent war, but it may become a deeply ugly war, nevertheless.

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Beijing Threatens “Severe” Retaliation Against Canada If Huawei CFO Is Not Released

China’s warning marks an escalation in Beijing’s rhetoric as investors worry that the arrest could cause the shaky trade detente between the US and China to devolve into acrimony.

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Via Zerohedge


Canada’s extraordinary arrest one week ago of Huawei CFO Meng Wanzhou, the daughter of Huawei founder and billionaire executive Ren Zhengfei, and its decision to charge her with “multiple” counts of fraud – a preamble to her likely extradition to the US to face charges of knowingly violating US and EU sanctions on Iran – has elicited widespread anger in Beijing, which declared Meng’s detention a “violation of human rights” during a bail hearing for the jailed executive on Friday.

That anger has apparently only intensified after the hearing adjourned without a decision (it will resume on Monday, allowing Meng’s defense team to argue for why she should be released on bail, contrary to the wishes of government attorneys who are prosecuting the case).

And with Canada insisting that it will prosecute Meng to the full extent of the law over allegations that she mislead banks about the true relationship of a Huawei subsidiary called Skycom, angry Chinese officials have decided to issue an ultimatum directly to the Canadian ambassador, who was summoned to a meeting in Beijing on Saturday and told in no uncertain terms that Canada will face “severe consequences” if Meng isn’t released, according to the Wall Street Journal.

China’s foreign ministry publicized the warning in a statement (though Canadian officials have yet to comment):

Chinese Vice Foreign Minister Le Yucheng summoned Canada’s ambassador to Beijing, John McCallum, on Saturday to deliver the warning, according to a statement from the Chinese Foreign Ministry.

The statement doesn’t mention the name of Huawei’s chief financial officer, Meng Wanzhou, though it refers to a Huawei “principal” taken into custody at U.S. request while changing planes in Vancouver, as was Ms. Meng. The statement accuses Canada of “severely violating the legal, legitimate rights of a Chinese citizen” and demands the person’s release.

“Otherwise there will be severe consequences, and Canada must bear the full responsibility,” said the statement, which was posted online late Saturday.

Phone calls to the Canadian Embassy rang unanswered while the Canadian government’s global affairs media office didn’t immediately respond to an email request for comment.

The warning marks an escalation in Beijing’s rhetoric as investors worry that the arrest could cause the shaky trade detente between the US and China to devolve into acrimony. A federal judge issued a warrant for Meng’s arrest back in August. Though after she was made aware of the warrant, Meng avoided travel to the US. She was arrested in Vancouver last Saturday while traveling to Mexico.

Aside from breaking off trade talks, some are worried that Beijing could seek to retaliate in kind by arresting a notable US executive. While the threats of Chinese bureaucrats might not amount to much in the eyes of US prosecutors, threatening a US executive with long-term detention in a Chinese “reeducation camp” just might.

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The trials of Julian Assange

Eresh Omar Jamal interviews Italian journalist Stefania Maurizi in relation to the situation of Julian Assange.

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Authored by Eresh Omar Jamal for The Daily Star (Bangladesh):


Stefania Maurizi is an investigative journalist working for the Italian daily La Repubblica. She has worked on all WikiLeaks releases of secret documents and partnered with Glenn Greenwald to reveal the Snowden Files about Italy. She has authored two books—Dossier WikiLeaks: Segreti Italiani and Una Bomba, Dieci Storie. In an exclusive interview with Eresh Omar Jamal of The Daily Star, Maurizi talks about the continued arbitrary detention of Julian Assange, why powerful governments see WikiLeaks as an existential threat, and the implications for global press freedom if Assange is prosecuted for publishing secret government documents.

You recently had the chance to visit Julian Assange at the Ecuadorian Embassy in London. When was this and can you describe the state he is in?

I was able to visit him on November 19, after 8 months of failed attempts, because last March the Ecuadorian authorities cut off all his social and professional contacts, with the exception of his lawyers, and in the preceding 8 months, I had asked for permission to visit him nine times without success—the Ecuadorian authorities didn’t reply at all to my requests.

When I was finally granted permission to visit the WikiLeaks founder at the Ecuadorian embassy in London last November, I was literally shocked to see the huge impact his isolation has had on his health. Because I have worked as a media partner with him and his organisation, WikiLeaks, for the last nine years, I have met him many times and can tell when there are any changes in his body and mind. I wondered how his mind could keep working; but after talking to him in the embassy for two hours, I have no doubt that his mind is working fine. I still wonder how that’s possible after six and a half years of detention without even one hour of being outdoors. I would have had a physical and mental breakdown after just 6 months, not after 6 years.

Detention and isolation are killing him slowly, and no one is doing anything to stop it. The media reports, the commentators comment, but at the end of the day, he is still there; having spent the last six and a half years confined to a tiny building with no access to sunlight or to proper medical treatment. And this is happening in London, in the heart of Europe. He is not sitting in an embassy in Pyongyang. It is truly tragic and completely unacceptable. And I’m simply appalled at the way the UK authorities have contributed to his arbitrary detention, and have opposed any solution to this intractable legal and diplomatic quagmire.

Having bravely defended Assange for years, the Ecuadorian government in late March cut off almost all his communications with the outside world. What prompted this turnabout and what is its purpose?

Politics has completely changed in Ecuador, and more in general, in Latin America, since 2012, when Ecuador granted Julian Assange asylum. I have never had any interviews with the current Ecuadorian President, Mr Lenin Moreno, but based on his public declarations, it’s rather obvious to me that he does not approve of what Julian Assange and WikiLeaks do.

With all his problems, Rafael Correa (former president of Ecuador) protected Assange from the very beginning, whereas Lenin Moreno considers him a liability. Moreno is under pressure from the right-wing politicians in Ecuador, and also from very powerful governments, like the US and UK governments, who will leave no stones unturned to jail Assange and destroy WikiLeaks. I am not sure how long Lenin Moreno will hold out against this immense pressure, provided that he wants to hold out at all.

Assange was vindicated not so long ago as to why he cannot leave the embassy when the US Department of Justice “accidentally” revealed in November that the founder of WikiLeaks had been secretly charged in the US. What do you think those charges are for?

It’s hard to say unless the charges get declassified and I really appreciate how the US organisation, Reporters Committee for Freedom of the Press, is fighting before the court in the Eastern District of Virginia, US, to have the charges declassified.

There is no doubt whatsoever that the US authorities have always wanted to charge him for WikiLeaks’ publications. They have wanted to do so from the very beginning, since 2010, when WikiLeaks released its bombshell publications like the US diplomatic cables.

But the US authorities have been unable to do so due to the fact that WikiLeaks’ publication activities enjoy constitutional protection thanks to the First Amendment. So it will be very interesting to see how they will get around this constitutional protection in order to be able to charge him and other WikiLeaks journalists and put them all in jail.

Why have some of the most powerful governments and intelligence agencies invested so much resources to attack Assange and WikiLeaks?

You have to realise what it meant for the US national security complex to witness the publication of 76,000 secret documents about the war in Afghanistan, and then another 390,000 secret reports about the war in Iraq; followed by 251,287 US diplomatic cables and 779 secret files on the Guantanamo detainees; and to watch WikiLeaks save Edward Snowden, while the US was trying everything it could do, to show the world that there is no way of exposing the NSA’s secrets and keep your head attached to your neck having done so.

You have to realise what this means in an environment like that of the US, where even the most brilliant national security reporters didn’t dare to publish the name of the head of the CIA Counterterrorism Center, Michael D’Andrea, even though his name and the abuses committed by his centre were open secrets within their inner circles. Although the New York Times finally did, later on. But this was and still is the reality in the US, and even though it may not be as bad in the UK, it’s still quite bad. Look at what happened with the arrest of Glenn Greenwald’s husband, David Miranda, at the Heathrow Airport during the publication of the Snowden Files. Look at what happened with The Guardian being forced to destroy its hard drives during the publication of those files.

There are different levels of power in our societies and generally in our western democracies, criticism against the low, medium and high levels of power via journalistic activities is tolerated. Journalists may get hit with libel cases, have troubles with their careers; however, exposing those levels is permitted. The problem is when journalists and media organisations touch the highest levels, the levels where states and intelligence agencies operate.

WikiLeaks is a media organisation that has published secret documents about these entities for years, and Julian Assange and his staff have done this consistently, not occasionally like all the other media organisations do. You can imagine the anger these powerful entities have towards WikiLeaks—they perceive WikiLeaks as an existential threat and they want to set an example that says, “Don’t you dare expose our secrets and crimes, because if you do, we will smash you.”

If Assange is prosecuted, what impact might it have on other publishers and journalists and on press freedom globally?

It will have a huge impact and that is why organisations like the American Civil Liberties Union are speaking out. Never before in the US has an editor and media organisation ended up in jail for publishing information in the public interest. If Julian Assange and the WikiLeaks’ staff end up in jail, it will be the first time in US history and will set a devastating precedent for attack on press freedom in the US, but actually, not only in the US. Because if a country like the US, in which the activities of the press enjoy constitutional protection, treats journalists this way, you can imagine how other countries where the press doesn’t enjoy such strong protection will react. It will send a clear message to them: “Your hands are free.”

At the end of the day, I think there are two sides to this Assange and WikiLeaks saga: the US-UK national security complex, but more in general, I would say, the people within the national security complex, who want to destroy Julian Assange and WikiLeaks to send a clear message to journalists: “Don’t mess with us if you don’t want your lives to be destroyed.” While on the other side, there are the freedom of the press guys, meaning journalists like me, who want to demonstrate the exact opposite: that we can expose power at the highest levels, we can expose the darkest corners of governments and come out alive and well. And actually, we must do this, because real power is invisible and hides in the darkest corners.

Eresh Omar Jamal is a journalist for The Daily Star (Bangladesh). You can find him on Twitter: @EreshOmarJamal and Stefania Maurizi: @SMaurizi

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Diplomacy a Waste of Time with Washington

Trump’s JCPOA pullout and threatened INF Treaty withdrawal show Washington can never be trusted.

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Authored by Stephen Lendman:


The US is a serial lawbreaker, operating by its own rules, no others.

Time and again, it flagrantly breaches international treaties, Security Council resolutions, and other rule of law principles, including its own Constitution.

Diplomacy with Republicans and undemocratic Dems is an exercise in futility.

Trump’s JCPOA pullout and threatened INF Treaty withdrawal show Washington can never be trusted.

Russian Foreign Ministry spokeswoman Maria Zakharova’s proposed US outreach to discuss INF Treaty bilateral differences is well intended – despite knowing nothing is accomplished when talks with Washington are held, so why bother.

It’s just a matter of time before the US breaches another promise. They’re hollow when made. Kremlin good intentions aren’t enough to overcome US duplicity and implacable hostility toward Russia.

“We are ready to continue the dialogue in appropriate formats on the entire range of problems related to this document on the basis of professionalism and mutual respect, without putting forward unsubstantiated accusations and ultimatums. Our proposals are well known and remain on the negotiating table,” said Zakharova, adding:

“We have admitted (US) documents for further consideration. This text again includes accusations in the form of unfounded and unsubstantiated information about Russia’s alleged violations of this deal.

Comments to Washington like the above and similar remarks are like talking to a wall. The US demands all countries bend to its will, offering nothing in return but betrayal – especially in dealings with Russia, China, Iran, and other sovereign independent governments it seeks to replace with pro-Western puppet ones.

Not a shred of evidence suggests Russia violated its INF Treaty obligations. The accusation is baseless like all others against the Kremlin.

“No one has officially or by any other means handed over to Russia any files or facts, confirming that Russia breaches or does not comply with this deal,” Zakharova stressed, adding:

“We again confirm our consistent position that the INF Treaty is one of the key pillars of strategic stability and international security.”

It’s why the Trump regime intends abolishing it by pulling out. Strategic stability and international security defeat its agenda. Endless wars and chaos serve it.

The US, UK, France, Israel, and their imperial partners get away with repeated international law breaches because the EU, UN, and rest of the world community lack backbone enough to challenge them.

It’s how it is no matter how egregious their actions, notably their endless wars of aggression, supporting the world’s worst tinpot pot despots, and failing to back the rights of persecuted Palestinians and other long-suffering people.

The only language Republicans and Dems understand is toughness. Putin pretends a Russian/US partnership exists to his discredit – a show of weakness, not strength and responsible leadership.

In response to the Trump regime’s intention to withdraw from the INF Treaty, he said Russia will “react accordingly” – precisely what, he didn’t say.

A few suggestions, Mr. President.

  • Recall your ambassador to Washington. Expel the Trump regime’s envoy from Moscow and other key embassy personnel.
  • Arrest US spies in Russia you long ago identified. Imprison them until the US releases all Russian political prisoners. Agree to swap US detainees for all of them, no exceptions.
  • Install enough S-400 air defense systems to cover all Syrian airspace. Warn Washington, Britain, France and Israel that their aircraft, missiles and other aerial activities in its airspace will be destroyed in flight unless permission from Damascus is gotten – clearly not forthcoming.
  • Publicly and repeatedly accuse the above countries of supporting the scourge of ISIS and likeminded terrorists they pretend to oppose.
  • Warn them in no uncertain terms that their aggression against the Syrian Arab Republic no longer will be tolerated. Tell them the same goes if they dare attack Iran.
  • Stop pretending Mohammad bin Salman didn’t order Jamal Khashoggi’s murder, along with ignoring the kingdom’s horrendous human rights abuses domestically and abroad – including support for ISIS and other terrorists.
  • Put observance of rule of law principles and honor above dirty business as usual with the kingdom and other despotic regimes for profits.
  • Do the right things at all times and damn the short-term consequences – including toughness on Washington, the UK, Israel, and their imperial partners in high crimes of war and against humanity.

VISIT MY NEW WEB SITE: stephenlendman.org (Home – Stephen Lendman). Contact at [email protected].

My newest book as editor and contributor is titled “Flashpoint in Ukraine: How the US Drive for Hegemony Risks WW III.”

www.claritypress.com/LendmanIII.html

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