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De-dollarization and the rise of Bitcoin. Is there a connection between the two?

Is Bitcoin a Reaction to US Dollar Hegemony?

Alex Christoforou

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De-dollarization has become popular, not only with countries like China, Russia and Venezuela (for reasons including sanctions and trade disputes), but also for individuals looking to diversify their holdings and liberate themselves from central bank, fiat control.

The Strategic Culture Foundation’s Federico Pieraccini examines if Bitcoin’s growth is connected to the global de-dollarization trend.

Is Bitcoin a Reaction to US Dollar Hegemony?” by Federico Pieraccini…

Blockchain technology and the birth of the so-called cryptocurrencies finds deep roots in three contributing factors: the advance of technology: the manipulation of global economic and financial rules; and the persistent attempt to weaken the national economies of countries that geopolitically challenge the US power system. In this first article I address these issues from a financial point of view, in the next analysis I intend to dive into the geopolitical aspects and broader the perspective on how Russia, China and other nations are taking advantage of a decentralized financial system.

Many national economies seem to have begun the process of protecting themselves from what seems like an inevitable economic trend. De-dollarization — dumping dollars for other goods of value — has become popular not only with countries but also with ordinary individuals as a result of global technological growth and increasing access to the Internet. The financial markets are generally reflecting this same trend.

The US dollar is the world’s most dominant reserve currency. The planning and financial rules that accompany this situation are decided in the United States for the benefit of Washington and a few of her allies. This has been reflected in the creation of the petrodollar, the abolition of the gold standard, and the most recent financial crisis of 2008, with the senseless process of quantitative easing. All these economic decisions have been made with the precise aim of prolonging American domination of the global economy, artificially propping up an unsustainable financial system.

The practical consequences of this unsustainability have led over time to thoughts of a practical alternative, both to escape from the domination of the dollar and to re-anchor the economy to real value. The need to circumvent this situation has become especially urgent for countries with a large amount of dollar-denominated debt, or where they face the prospect of being excluded from the SWIFT international payment system.

It is therefore not accidental that countries like Iran and Venezuela, but also Russia and North Korea, have resorted to alternative methods to operate in the global economic space. Washington’s political decision in 2012 to remove Iranian banks from SWIFT immediately set off alarm bells for several countries. The need to escape from the possibility of being excluded from SWIFT became urgent for countries under the threat of Washington. An alternative payment system was thus born in 2015, christened the Cross-Border Interbank Payments System (CIPS), unsurprising founded by China. Basically a copy of the SWIFT system, it serves the role of being a backup system should the Americans seek to exclude from SWIFT recalcitrant countries. A more radical solution has been sought by Venezuela, with the country creating its own virtual currency. President Maduro has announced the creation of a crypto state currency based on the value of oil and supported by barrels of oil worth over five billion dollars. Venezuela has been forced to take this step because of a scarcity of US dollars in the country brought on by the economic warfare visited on the it by Washington, which has succeeded in driving the country into a deep crisis.

This search for fresh liquidity is a gamble for Maduro, who even hopes to be able to trade with allied countries in the new currency, thus circumventing international bans. Even North Korea is said to operate in bitcoin, thereby circumventing the international system of prohibitions and blockades.

The sanctions on Russia, and the influence that Washington exerts with the dollar on the global economic system, has led Moscow and Beijing to a de-dollarization agreement, establishing the yuan gold standard. Russia sells hydrocarbons to China, which pays for them in yuan, then Russia immediately converts the yuan into gold at the Shanghai Gold Exchange, in the process bypassing Washington’s sanctions.

This situation is being replicated in country after country. The United States increases financial and economic pressure on countries through such international bodies as the IMF and the World Bank, then these countries organize amongst themselves to push back against the interference. Technology has facilitated this strategy of decentralization against the center that is London and Washington, the financial heart and primary cause of manifold global problems. Firstly, the possibility of the unlimited printing of dollars has distorted global economies, inflating stock markets and causing national debts to grow out of control. Even the gold markets are manipulated by virtue of the abundance of easy money and such ponzi-scheme tools as derivatives and other forms of financial leverage. All too predictably, as seen in 2008, if it all comes crashing down, the central banks are going to bail out their partners through the mechanism of quantitative easing, guaranteeing unlimited cashflow and leaving taxpayers, along with the small players in the financial markets, to carry the burden.

It is probably too early for the common man to understand what is happening, but in fact the dollar is depreciating in relation to some more tangible assets. But gold continues to be corralled by parallel financial mechanisms and other financial instruments created for the sole purpose of manipulating the financial markets on which the common man depends in search of modest gains. As with others, the gold market suffers from the combine power of the US dollar, centralized financial institutions and market manipulation. Entities such as the FED (and their owners), criminally colluding and working with private banks, hedge funds, rating agencies and audit companies, have made immense wealth by driving the world into a debt scam that has stripped normal citizens of their future.

What is happening in the cryptocurrency markets in not only occurring in parallel with the spread of the Internet, smartphones and the increasing ability to operate in the digital world, but is also seen as a safe haven from centralized financial regulators and central banks; in other words, from the dollar and fiat currencies in general. Whether bitcoin will prove to be a wise long-term investment is yet to be seen, but the concept of cryptocurrencies is here to stay. The technology behind the idea, the blockchain, is a definitive model for decentralized economic transactions without any intermediary that can manipulate and distort the market at will. It is the antidote to the debt virus that is killing our society and spreading chaos around the world.

Washington is now left to deal with the consequences of its demented actions against its geopolitical adversaries. The decision to remove Iran from the SWIFT system, and the ongoing economic war against Russia and Venezuela, have pushed the People’s Republic of China to obviate any direct attacks on its financial system by creating an alternative economic system. The goal is to warn the United States and her allies that an economic alternative exists and is already operational, ready to be opposed to the Euro-American system if necessary. Washington does not seem to want to renounce the role of manipulator and ruler of world speculative finance, and the obvious result of this is the creation of a financial system that is slowly working against the current one. Lack of anonymity and the centrality of systems seem to be the two fundamental elements of the current financial system that orbits around London and Washington. An anonymous, decentralized and technologically reliable system could be exactly what Washington’s geopolitical adversaries have been looking for to end the US-Dollar hegemony.

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Trump Has Gifted “No More Wars” Policy Position To Bernie Sanders (Video)

The Duran Quick Take: Episode 148.

Alex Christoforou

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RT CrossTalk host Peter Lavelle and The Duran’s Alex Christoforou discuss how US President Donald Tump appears to have ceded his popular 2016 ‘no more wars’ campaign message and policy position to Bernie Sanders and any other US 2020 candidate willing to grad onto a non-interventionist approach to the upcoming Democrat primaries.

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“Is Bernie Stealing Trump’s ‘No More Wars’ Issue?” by Patrick J. Buchanan…


The center of gravity of U.S. politics is shifting toward the Trump position of 2016.

“The president has said that he does not want to see this country involved in endless wars… I agree with that,” Bernie Sanders told the Fox News audience at Monday’s town hall meeting in Bethlehem, Pennsylvania.

Then turning and staring straight into the camera, Bernie added:

“Mr. President, tonight you have the opportunity to do something extraordinary: Sign that resolution. Saudi Arabia should not be determining the military or foreign policy of this country.”

Sanders was talking about a War Powers Act resolution that would have ended U.S. involvement in the five-year civil war in Yemen that has created one of the great humanitarian crises of our time, with thousands of dead children amidst an epidemic of cholera and a famine.

Supported by a united Democratic Party on the Hill, and an anti-interventionist faction of the GOP led by Sens. Rand Paul and Mike Lee of Utah, the War Powers resolution had passed both houses of Congress.

But 24 hours after Sanders urged him to sign it, Trump, heeding the hawks in his Cabinet and National Security Council, vetoed S.J.Res.7, calling it a “dangerous attempt to weaken my constitutional authorities.”

With sufficient Republican votes in both houses to sustain Trump’s veto, that should be the end of the matter.

It is not: Trump may have just ceded the peace issue in 2020 to the Democrats. If Sanders emerges as the nominee, we will have an election with a Democrat running on the “no-more-wars” theme Trump touted in 2016. And Trump will be left defending the bombing of Yemeni rebels and civilians by Crown Prince Mohammed bin Salman of Saudi Arabia.

Does Trump really want to go into 2020 as a war party president?

Does he want to go into 2020 with Democrats denouncing “Trump’s endless wars” in the Middle East? Because that is where he is headed.

In 2008, John McCain, leading hawk in the Senate, was routed by a left-wing first-term senator from Illinois, Barack Obama, who had won his nomination by defeating the more hawkish Hillary Clinton, who had voted to authorize the war in Iraq.

In 2012, the Republican nominee Mitt Romney, who was far more hawkish than Obama on Russia, lost.

Yet, in 2016, Trump ran as a different kind of Republican, an opponent of the Iraq War and an anti-interventionist who wanted to get along with Russia’s Vladimir Putin and get out of these Middle East wars.

Looking closely at the front-running candidates for the Democratic nomination of 2020 — Joe Biden, Sanders, Kamala Harris, Beto O’Rourke, Pete Buttigieg, Elizabeth Warren, Cory Booker — not one appears to be as hawkish as Trump has become.

Trump pulled us out of the nuclear deal with Iran negotiated by Secretary of State John Kerry and reimposed severe sanctions.

He declared Iran’s Islamic Revolutionary Guard Corps a terrorist organization, to which Iran has responded by declaring U.S. Central Command a terrorist organization. Ominously, the IRGC and its trained Shiite militias in Iraq are in close proximity to U.S. troops.

Trump has recognized Jerusalem as Israel’s capital, moved the U.S. Embassy there, closed the consulate that dealt with Palestinian affairs, cut off aid to the Palestinians, recognized Israel’s annexation of the Golan Heights seized from Syria in 1967, and gone silent on Bibi Netanyahu’s threat to annex Jewish settlements on the West Bank.

Sanders, however, though he stands by Israel, is supporting a two-state solution and castigating the “right-wing” Netanyahu regime.

Trump has talked of pulling all U.S. troops out of Syria, Iraq and Afghanistan. Yet the troops are still there.

Though Trump came into office promising to get along with the Russians, he sent Javelin anti-tank missiles to Ukraine and announced a pullout from Ronald Reagan’s 1987 INF treaty that outlawed all land-based intermediate-range nuclear missiles.

When Putin provocatively sent 100 Russian troops to Caracas — ostensibly to repair the S-400 anti-aircraft and anti-missile system that was damaged in recent blackouts — Trump, drawing a red line, ordered the Russians to “get out.”

Biden is expected to announce next week. If the stands he takes on Russia, China, Israel and the Middle East are more hawkish than the rest of the field, he will be challenged by the left wing of his party, and by Sanders, who voted “no” on the Iraq War that Biden supported.

The center of gravity of U.S. politics is shifting toward the Trump position of 2016. And the anti-interventionist wing of the GOP is growing.

And when added to the anti-interventionist and anti-war wing of the Democratic Party on the Hill, together, they are able, as on the Yemen War Powers resolution, to produce a new bipartisan majority.

Prediction: By the primaries of 2020, foreign policy will be front and center, and the Democratic Party will have captured the “no-more-wars” political high ground that Candidate Donald Trump occupied in 2016.

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Over 200 killed, hundreds injured in series of blasts at Sri Lankan hotels & churches

A series of bombings hit churches and hotels across Sri Lanka on Easter Sunday, killing more than 200 people.

RT

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Via RT…


A series of eight explosions rocked Catholic churches and luxury hotels in Sri Lanka as Christians began Easter Sunday celebrations, with over 200 killed and hundreds injured, media reported, citing police.

The blasts started at around 8:45am local time at St. Anthony’s Church in Colombo and St. Sebastian’s Church in Negombo, a Catholic-majority town outside of the capital. The Zion Church in Batticaloa on the eastern coast was also targeted. At around the same time, the Shangri-La, Cinnamon Grand and Kingsbury five-star hotels were also hit, police confirmed.

Two more explosions happened later in the day, targeting two more locations in Colombo. All attacks appear to have been coordinated.

At least 207 people were killed, Reuters reported, citing police. More than 450 were injured in the attacks.

Alleged footage of the aftermath, shared on social media, showed chaos and large-scale destruction inside at least one of the churches.

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Mike Pompeo reveals true motto of CIA: ‘We lied, we cheated, we stole’ (Video)

The Duran Quick Take: Episode 147.

Alex Christoforou

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The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris take a look at a Texas A&M University speech, and subsequent interview, with US Secretary of State Mike Pompeo.

The former CIA Director admitted, ‘as an aside’ to the question asked, that the Intelligence agency he headed up before being appointed as the top US Diplomat had a motto “we lied, we cheated, we stole”…which, according to Pompeo, contained entire CIA training courses based on ‘lying, cheating and stealing.’

Pompeo finally speaks some truth.

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