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Blockchain is De-Dollarizing the Investing World

This past week I flew from Moscow to Vietnam, participating in a new international business model for investing in worldwide property development using the blockchain.

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I felt it was too important to miss especially in these current sanctioned and trade tariff times. Pioneering this effort is an American company called Relex (RLX), the world’s first cryptocurrency-based real property development and investing group.

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This approach allows investment in projects during the development phase, resulting in passive income, equity stakes, or proxy ownership of property(s). Initial projects are based in Vietnam, Vladivostok (Russia), Cambodia, and Myanmar, which for various non-business reasons and external barriers have been politically shunned on the FDI scene of late, although showing strong, solid growth. Included was an on-site visit of their first large oceanfront development in DaNang. Among those attending were a broad cross-section of businesspeople from throughout the international community, investors, financial advisors and developers.

It is clear that businesses in a number of countries are feeling various and increasing pressures from their governments, banks and similar regulating/regulated groups to conform within ever-narrowing, ever-thornier investment opportunity corridors. This has been emphatically and clearly shown through sanctions, trade and tariff confrontations, as well as a host of other political and financially erected barriers.

There even was a consensus that with the onset of these vigorous trade disputes and tariffs, significant inflation is in the cards regardless of the Federal Reserve or other central banks tinkering.

Global free trade as we have come to know it traditionally is coming to a critical juncture of change, perhaps never to be as straightforward or open again, or even as it was 10 years ago, not to mention before then.

Commerce by definition is meant to be fluid and unrestricted. Money has no politics, it should not have – it is a field of openly traded risks & returns. Hence, a real race is on in every global market to find possibly untraditional, less constrained innovative and secure ways to do international business legally, securely and profitably.

Much was discussed at this gathering, which included executives from Vietnam, Ukraine, Australia, Russia, Burma, Korea, Cambodia, America, Canada, India, and the list goes on. One of the major issues were the trade and investment restrictions unilaterally led by US foreign policy and by extension the US Dollar, which are expected to become even more constraining over time.

Hence the very real and attractive role for cryptocurrencies and the blockchain when backed by tangible asset projects like property, infrastructure and enhancing actual business development.

There were and are a number of instances where banks declined to move US Dollars to one or another directed area, despite long standing bank/client business relationships. The reality of asset freezes, currency seizures and other similarly restrictive measures are expected to become the growing “new normal”.

In such an environment, any alternatives that can bypass these restrictions to free trade yet meet business and investment requirements, are gaining traction – quickly. Alternatives are not only sought by Russian or other “sanctioned” investors, but quite a few developed as well as developing economies as there is a feeling of seeing the “writing on the wall” of ever greater control pressures coming, mostly from the USA.

In watching the tug-of-war between the US administration and the Federal Reserve a goodly percentage of the executives I talked with are of the opinion that the White House will prevail and the US Dollar will be dropping noticeably before midterm elections.

The reasoning is that neither the US Government, not the US corporate sector can afford an extremely strong dollar when the current administration is deploying a new trillion dollar annual deficit regardless of a “strong” economy. A muscular dollar would make this magical juggling act well-nigh impossible, and would badly impact US corporations which receive nearly 50% of revenues from overseas.

This tension is happening as the US Fed needs the dollar to remain strong enough to attract capital in order for the US to be able to fund its deficits and debt issuance, but not strong enough to put the brakes on the national economy. From outside the USA many feel they are financial hostages to a global reserve currency that is spurred mainly by internal American financial self-interest and not the ebbs and flows of healthy, competitive, unregulated global trade.

Today alternatives are actively analyzed on how best to reduce the financial and geopolitical effects imposed by the United States and the US Dollar. On a macro level for example the EU is examining establishing an economic assistance fund to reduce dependency on the International Monetary Fund and expanding the scope of an EU-centric payment and settlements system to insulate itself from U.S. secondary sanctions over a number of “issues”.

These include the possible sanctioning of SWIFT board members in Brussels by the US as a means of convincing them to “go along to get along”. There have even been discussions between the EU, China and Russia to create a global, blockchain-based financial payment and settlements system that would moderate the United States’ financial stick.

U.S. tariffs and unilateral sanctions will eventually spur Europe to reclaim its economic sovereignty from the United States. This is a slow-moving trend, but one that will have serious long-term consequences for everything from NATO’s evolution to the future of the global financial system.

Far more consequential in the long term would be a European move to team up with other major powers, like China and Russia, on global financial reform proposals that include the adoption of a global blockchain-based financial payment system.

Washington has threatened to sideline Iran from SWIFT as part of its tactics to isolate Tehran from the global financial system. Such an action was briefly discussed back in 2015 regarding Russia as well, and recently noises have been reported that this may become an issue yet again.

SWIFT, however, is a Belgium-based private company subject to EU laws. The United States could still try to sanction individual board members of SWIFT to punish the company for noncompliance, but this would doubtless severely damage faith in the US Dollar and the global financial system — not to mention set off a truly serious international crisis.

Of far greater consequence would be a European move to team up with other major powers, such as China, Russia and possibly several others, on global financial reform proposals that might pave the way to adopting a global blockchain-based financial payment system. This apparently has been a topic of discussion between Russia and China for the past few years although no details have been confirmed.

Additionally, a number of independent banks worldwide are already experimenting with the technology as a way to improve efficiency, enhance security and reduce the cost of cross-border transaction fees.

Among the many implications of such a system is reducing the ability of any one participant like the United States, to isolate a country through primary and secondary sanctions. This would also be yet a further step along the long winding road of global de-dollarization. Over time, such a system would greatly enhance the trading of other currencies, not just the US Dollar.

This may also be the game-changing future for cryptocurrencies by giving them as asset base with which to underpin value (be it real estate, metals or other hard assets), and begin to compete with fiat currencies like the USD.

Change is inevitable, embracing it may be difficult for many, but it has been made easier because of foreign policy, most specifically from Washington that is forcing change by many nations. A quick overview of recent situations is an apt example:

The United States starts a tariff war with China. Japan and Germany jump at the chance to gain market share in China, the world’s fastest-growing passenger car market. The United States imposes sanctions on Turkey.

Germany announces that it will offer economic aid to Turkey, Qatar pledges new investments and a foreign exchange swap line, and Chinese banks provide billions of dollars in new loans to the cash-strapped Turks. Chinese commentators declare that crisis is a great opportunity to integrate Turkey into China’s “One Belt, One Road” strategy.

US President Trump scolds Merkel for buying Russian natural gas through the Nord Stream II pipeline. Merkel then meets with Russian President Vladimir Putin to confirm the pipeline arrangement, and even agrees to aid reconstructing Syria in cooperation with Russia.

The United States imposes economic sanctions on Iran, Western insurance companies stop insuring Iranian oil. China then responds by accepting Iranian insurance on oil imports thereby increasing oil imports from Iran, and shipping the oil in Iranian tankers.

Central to market thinking is the belief that Eurasia/Asia will provide the greatest margin of growth to the world economy as it delivers about three-fifths of the world’s new economic growth. Now add to this the steadily growing blockchain and crypto-currency world, which many feel, is the logical economic and social inheritor of traditional fiat currencies and government structures. It is certainly a way to avoid the worst of the trade and currency transfer blockages imposed on business with greater, and more frequency, but it also forces established institutions to slowly, gradually cede control. Always a worrying period, fraught with knee-jerk reactions and unintended consequences.

Meanwhile within the noise, dust and confusion some companies are taking the necessary steps to find and capitalize on the processes and technologies that allow positive, less encumbered business activity. The Relex model could just as easily be adapted to not only real estate development, infrastructure and the like, but to education, agriculture and the entire business chain of being.

One fact came up which was illustrative, almost 75% of global capital invested in commercial property development is in the Top 10 most transparent countries in the world. That means that projects in countries with low transparency scores are considered ineligible projects for investment – a self-sustaining vicious downward cycle.

What if transparency scores in projects located in developing countries were improved? What if the medium of financing FDI were not limited to a single currency, single policy or payment corridor? Projects like Relex get an increased transparency, sustainability and accountability score, becoming classically eligible for a wider stream of investable capital into their projects. In addition, the door is open to investors worldwide, a freedom enabled by blockchain.

This is a very positive development for investors, in which there is easier capital access, and better access to development projects with a high degree of yield. It is certainly worth the time and effort to examine and keep a sharp eye on such developments as the future of international business access is already happening today.

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thomas malthaus

https://www.zerohedge.com/news/2018-08-27/gold-bloc-iran-russia-and-turkeyoh-my

Another technique (currency board) to advance gold-backed currencies.

Guy
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Guy

I recently purchased a book on crypto currency and blockchain .I don’t know very much about it but aim to find out .I am fascinated by the possibility that this might be the future method of exchange for
goods , labour , services etc. worldwide.

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Trump Orders Immediate Release Of All Text Messages, Carter Page FISA Application From Russia Investigation

Trump has ordered the DOJ to release all text messages related to the Russia investigation with no redactions.

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Via Zerohedge

President Trump has ordered the Department of Justice to release all text messages related to the Russia investigation with no redactions, of former FBI Director James Comey, his deputy Andrew McCabe, now-fired special agent Peter Strzok, former FBI attorney Lisa Page and twice-demoted DOJ official Bruce Ohr.

Also released will be specific pages from the FBI’s FISA surveillance warrant application on former Trump campaign aide Carter Page, as well as interviews with Ohr.

The statement reads in full:

“At the request of a number of committees of Congress, and for reasons of transparency, the President has directed the Office of the Director of National Intelligence and the Department of Justice (including the FBI) to provide for the immediate declassification of the following materials: (1) pages 10-12 and 17-34 of the June 2017 application to the FISA court in the matter of Carter W. Page; (2) all FBI reports of interviews with Bruce G. Ohr prepared in connection with the Russia investigation; and (3) all FBI reports of interviews prepared in connection with all Carter Page FISA applications.

In addition, President Donald J. Trump has directed the Department of Justice (including the FBI) to publicly release all text messages relating to the Russia investigation, without redaction, of James Comey, Andrew McCabe, Peter Strzok, Lisa Page, and Bruce Ohr

***

As we reported last Monday, Trump had been expected to release the documents any time – with specific attention to the Page documents and the “investigative activities of Justice Department lawyer Bruce Ohr” – who was demoted twice for lying about his extensive relationship  with Christopher Steele – the former MI6 spy who assembled the sham “Steele Dossier” used by the FBI in a FISA surveillance application to spy on Page.

Republicans on the House Intelligence and Judiciary committees believe the declassification will permanently taint the Trump-Russia investigation by showing the investigation was illegitimate to begin with. Trump has been hammering the same theme for months.

  • They allege that Bruce Ohr played an improper intermediary role between the Justice Department, British spy Christopher Steele and Fusion GPS — the opposition research firm that produced the Trump-Russia dossier, funded by Democrats. (Ohr’s wife, Nellie, worked for Fusion GPS on Russia-related matters during the presidential election — a fact that Ohr did not disclose on federal forms.)
  • And they further allege that the Obama administration improperly spied on Carter Page — all to take down Trump. –Axios

Ohr, meanwhile, met with Russian billionaire Oleg Deripaska in 2015 to discuss helping the FBI with organized crime investigations, according to The Hill‘s John Solomon. The meeting with the Putin ally was facilitated by Steele.

Last month Trump called Ohr a disgrace, while also tweeting: “Will Bruce Ohr, whose family received big money for helping to create the phony, dirty and discredited Dossier, ever be fired from the Jeff Sessions  “Justice” Department? A total joke!”

Trump’s threat came one day after two tweets about Ohr, noting a connection to former FBI agent Peter Strzok, as well as a text sent by Ohr after former FBI Director James Comey was fired in which Ohr says “afraid they will be exposed.”

According to emails turned over to Congressional investigators in August, Christopher Steele was much closer to Bruce Ohr and his wife Nellie than previously disclosed.

Steele and the Ohrs would have breakfast together on July 30, 2016 at the Mayflower Hotel in downtown Washington D.C., days after Steele turned in installments of his infamous “dossier” on July 19 and 26. The breakfast also occurred one day before the FBI formally launched operation “Crossfire Hurricane,” the agency’s counterintelligence operation into the Trump campaign.

“Great to see you and Nellie this morning Bruce,” Steele wrote shortly following their breakfast meeting. “Let’s keep in touch on the substantive issues/s (sic). Glenn is happy to speak to you on this if it would help.”

“After two years of investigations and accusations from both sides of the aisle about what documents indicate, it is past time for documents to be declassified and let the American people decide for themselves if DoJ and FBI acted properly,” Freedom Caucus chairman Mark Meadows told Axios earlier Sunday.

In early August, journalist Paul Sperry tweeted that Trump may use his presidential authority to declassify “20 redacted pages of a June, 2017 FISA renewal, “and possibly” 63 pages of emails and notes between “Ohr & Steele,” and FD-302 summaries of 12 interviews.”

President Trump threatened to declassify documents two weeks ago – one day after the New York Times allegedly published an anonymous Op-Ed claiming to be from a White House official claiming to be part of an unelected “resistance” cabal within the Trump administration.

“The Deep State and the Left, and their vehicle, the Fake News Media, are going Crazy – & they don’t know what to do,” Trump tweeted earlier this month, adding: “The Economy is booming like never before, Jobs are at Historic Highs, soon TWO Supreme Court Justices & maybe Declassification to find Additional Corruption. Wow!”

Trump’s threat comes as calls by frustrated GOP legislators to release the documents have hit a fevered pitch. Spearheading the effort are Republican Reps. Meadows, Jim Jordan, Matt Gaetz and Lee Zeldin – who have repeatedly asked Trump to declassify more of the heavily redacted FISA surveillance warrant on former Trump campaign aide Carter Page in late 2016.

In June, Republicans on the House Intelligence Committee asked President Trump to declassify key sections of Carter Page’s FISA warrant application, according to a letter obtained by Fox News.

Carter Page, the DOJ/FBI’s person of interest, weighed in on the matter in late August, tweeting: “The Corrupt DOJ, co-conspirators in the DNC and their high-priced consultants correctly believed they had American democracy and the FISA Court over a barrel in 2016.”

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De-Dollarization Tops Agenda at Russia’s Eastern Economic Forum

The Eastern Economic Forum (EEF) was held in Vladivostok on Sept.11-13. Founded in 2015, the event has become a platform for planning and launching projects to strengthen business ties in the Asia-Pacific region.

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Via Strategic Culture

This year, the EEF brought together delegations from over 60 countries to discuss the topic “The Far East: Expanding the Range of Possibilities”. A total of 100 business events involving over 6,000 participants were held during the three days.

1,357 media personnel worked to cover the forum. Last year, the number of participants was 5,000 with 1,000 media persons involved in reporting and broadcasting. The EEF-18 gathered 340 foreign and 383 Russian CEOs. Nearly 80 start-ups from across South-East Asia joined the meeting.

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This year, a total of 175 agreements worth of 2.9 trillion rubles (some $4.3 billion) were signed. For comparison, the sum was 2.5 trillion rubles (roughly $3.7 billion) in 2017.

They included the development of the Baimsky ore deposits in Chukotka, the construction of a terminal for Novatek LNG at Bechevinskaya Bay in Kamchatka and the investment of Asian countries in Russia’s agricultural projects in the Far East.

Russian Direct Investment Fund (RDIF), Mail.Ru Group, Megafon and Chinese Alibaba inked an agreement on establishing AliExpress trade joint venture. Rosneft and Chinese CNPC signed an oil exploration agreement.

The Chinese delegation was the largest (1,096 people), followed by the Japanese (570 members). The list of guests included the president of Mongolia and prime ministers of Japan and South Korea.

It was also the first time Chinese President Xi Jinping attended the event to meet his Russian counterpart. The issue of de-dollarization topped the agenda. Russia and China reaffirmed their interest in expanding the use of national currencies in bilateral deals.

During the forum, Kirill Dmitriev, the head of RDIF, said the fund intends to use only national currencies in its transactions with China starting from 2019. It will cooperate with the China Development Bank.

This “yuanification” is making visible progress with Shanghai crude futures increasing their share of oil markets up to 14 percent or even more. China has signed agreements with Canada and Qatar on national currencies exchange.

READ MORE: Eastern Economic Forum opens new chapter in US-Russia dialogue

De-dollarization is a trend that is picking up momentum across the world. A growing number of countries are interested in replacing the dollar. Russia is leading the race to protect itself from fluctuations, storms and US-waged trade wars and sanctions.

Moscow backs non-dollar trade with Ankara amid the ongoing lira crisis. Turkey is switching from the dollar to settlements in national currencies, including its trade with China and other countries. Ditching the US dollar is the issue topping the BRICS agenda. In April, Iran transferred all international payments to the euro.

The voices calling for de-dollarization are getting louder among America’s closest European allies. In August, German Foreign Minister Heiko Maas called for the creation of a new payments system independent of the US.

According to him, Europe should not allow the United States to act “over our heads and at our expense.” The official wants to strengthen European autonomy by establishing independent payment channels, creating a European Monetary Fund and building up an independent SWIFT system.

Presenting his annual program, European Commission President Jean-Claude Juncker called on Sept. 12 for the European Union to promote the euro as a global currency to challenge the dollar.

According to him, “We must do more to allow our single currency to play its full role on the international scene.” Mr. Juncker believes “it is absurd that Europe pays for 80 percent of its energy import bill – worth 300 billion euros a year – in US dollars when only roughly 2 percent of our energy imports come from the United States.” He wants the raft of proposals made in his state of the union address to start being implemented before the European Parliament elections in May.

70% of all world trade transactions account for the dollar, while 20% are  settled in the euro, and the rest falls on the yuan and other Asian currencies. The dollar value is high to make the prices of consumer goods in the US artificially low. The demand for dollars allows refinancing the huge debt at low interest rates. The US policy of trade wars and sanctions has triggered the global process of de-dollarization.

Using punitive measures as a foreign policy tool is like shooting oneself in the foot. It prompts a backlash to undermine the dollar’s status as the world reserve currency – the basis of the US economic might. The aggressive policy undermines the US world standing to make it weaker, not stronger.

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Democrat dirty ‘MeToo’ flavored trick could succeed

Fear of the Left’s “virtue signaling” trick is a real test for the American people, and they are likely to fail without honest critical thought.

Seraphim Hanisch

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The developments of the last-minute sexual allegation against Judge Brett Kavanaugh that was brought up, ostensibly as a last-minute tactic, a dirty trick, to delay or block his confirmation vote to the US Supreme Court.

The issue here is not at all about the doings of a young high-school age man to a girl when she was seventeen, it is a test to see how well the “sexual harassment” card actually works against one of the top players hand-picked by President Trump.

There is absolutely no call to “virtue” at all. All a critical thinker has to do is to consider these points:

  • Consider what side of the aisle this came from: The Democrats. The champions of every perverse sexual desire one can imagine, but dead-set against men being men and women being women.
  • The timing of the release of the allegation: The Democrats deliberately used this as ammo against Kavanaugh. If there was such a concern about the accuser, Christine Blasey Ford (a feminist, as most of these feminists like to go by three names) and her suffering, this would have been broached years ago – after all, she was 17 when it allegedly happened and she is now 36 years older. If #MeToo was really about finding a way to live virtuously, this would have been addressed day zero of Judge Kavanaugh’s nomination.
  • Consider the alignment of the people on the Democrat side AND the Republicans who are now beginning to voice the “need to wait”: Again this is not about any wrong doing being fixed. It is obvious sheer dirty trickery, and in classical liberal style, the “call to virtue” is only that which is politically expedient for the Democrats, the party of gay marriage, child pornography (check WikiLeaks email dump of Hillary Clinton’s advisor John Podesta for that one), spirit dinners (a nice name for what is ostensibly a satanic Black Mass – style ritual, also from Podesta’s group of friends)
  • Last and most important – how does this situation benefit Christine Blasey Ford? – If this is truly an issue that happened (which is apparently showing holes already), then how does taking the Judge down benefit her?
  • Further still, why has this woman allowed herself to be, frankly, used again, but this time by opportunistic politicians?

These points are just a suggested beginning. There are probably hundreds of other things to consider, such as why is this even an issue. A lot of boys made advances on girls in their teenage years, and a lot girls summarily fight them off and win. The snowflakes of the world are loath to admit this, but this is quite frankly a large part of growing up. Granted sometimes it goes too far and someone rapes someone else. That is a terrible thing. But it is also statistically extremely rare, and a randy teenager is hardly a rapist.

This type of “virtue signaling” as it has come to be known is the ultimate in hypocrisy, and it is completely devoid of contact with reality, yet the Congress is wavering on what to do. And why? Because the American male has been successfully cowed by feminist women. He has allowed this from trying to appease and honor such women, but for these women, who consider pregnancy a disease for which abortion is the cure, and who have been brainwashed to consider men the enemy, they greedily took all the power they could.

There is a lot to be said about this on many levels, but the point here is that this sort of manipulation is presently deployed for political reasons and no more. We saw this happen with Judge Roy Moore in January and it worked. And as soon as the Judge was out of the running, the charges magically vanished into the mist. It is being tried again now, and it may work.

This is beyond disgusting – it is actually frightening to consider that such a transparently political allegation may actually defeat a terrific candidate who has categorically and fully denied the allegation.

One one hand, if the nomination falls through, it’s no big deal. President Trump will likely pick Amy Barrett and that will shut down the feminists for a while and probably the whole #MeToo machine.

Unless they determine magically that Mrs. Barrett is a sexual predator. However her seven children are unlikely to support such a crazy idea.

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