The following Pravda article clearly spells out why our Republocrats and media are more worried about Donald Trump than protecting the power of the US Dollar.
he United States has declared a war of sanctions on Russia and continues putting trade pressure on China. It is not ruled out that the USA will restrict supplies of steel products from China. In return, Moscow and Beijing intend to abolish the US dollar in mutual settlements within the scope of the BRICS organization. The move will mark the end of the era of the undivided financial domination of the United States of America in the world.
As soon as the US Congress adopted a package of new sanctions against Russia, Deputy Foreign Minister of the Russian Federation Sergei Ryabkov issued a formidable warning to Washington. "US sanctions against Russia will only encourage Russia to create an alternative economic system, in which dollars will not be needed," the Russian diplomat said.
Interestingly, the statement was made on the eve of the two-day summit of BRICS trade ministers, which opened on August 1, 2017 in Shanghai. This organization, which includes Brazil, Russia, India, China and South Africa, becomes a powerful counterweight to the Group of Seven. Today, the BRICS countries account for 26% of the Earth's territory, 42% of the world's population (almost three billion people) and 27% of world GDP. According to experts' forecasts, the share of BRICS countries will account for more than 40% of world GDP by 2050.
However, BRICS trade ministers chose not to put the horse before the cart.
Russia's Minister for Economic Development Maxim Oreshkin stated that BRICS countries, in particular Russia and China, may switch to settlements in national currencies already in the near future. The minister also said that the trade turnover between Russia and China may reach $200 billion by 2020.
Meanwhile, on the sidelines of the Shanghai summit, the ministers discussed opportunities for the creation of a new monetary system to exclude the use of the US dollar. In 2015, President Vladimir Putin said that Russia was opting for settlements in national currencies and created currency pools with several countries.
Today, not only does Russia need to abjure the dollar - the country needs to ensure financial independence from the West. The BRICS countries have coordinated basic principles of the work of the New Development Bank, which is seen as a counterbalance to the World Bank, in which it is the Americans who set the rules of the game.
In addition, Russia considers a possibility to set up a separate payment system similar to SWIFT.
More than 300 Russian banks have switched to an alternative to SWIFT - the system known as SPFS (System for Transfer of Financial Messages). Elvira Nabiullina, Chairwoman of the Central Bank of Russia, said: "Threats were voiced that Russia could be cut off from SWIFT. We have completed the work on our own payment system, and if something happens, all operations in SWIFT format will work inside the country."
One of the main conditions for switching to settlements in national currencies is the stability of the national currencies of the BRICS members. The Russian ruble exchange rate may decrease due to relatively low world oil prices (within $52 per barrel).
Unstable exchange rates of national currencies is not the only obstacle to abjure the US dollar in mutual settlements. BRICS countries account for only 10% of global trade. Therefore, the alliance needs to increase indicators of mutual trade.
Moscow and Beijing have already introduced mutual settlements in yuans. Russia's Central Bank has opened its first foreign office in Beijing. Thus, the war of sanctions against Russia consolidates and boosts relations between Russia, China and other BRICS members.
You Never Own Your Home.
The reality is that as long as there are property taxes in your country, state, province, county, or city . . . you are a renter until taxes are raised to the point you would rather walk away than pay them. Even if you no longer have a mortgage! That is why property taxes exist; to confiscate if necessary.
Recently, the government fabricated tax increases based upon renovations that never took place. For one woman, they simply took the money out of her account sending her into overdraft conditions when they claimed she did $79,780 in renovations to her tiny 860 square foot home when no work was ever done.
Governments are going bust everywhere and are desperate. This system of government pretending to represent the people when they act more like paying the Mafia for protection. In this case, you have to pay the government or else they take your home. You have no right to simply retire and die in peace. They tax you until you are dead and then demand taxes from your estate. We have all become simply economic serfs working for the landlord and we own nothing for they have the right to take everything if we cannot afford to pay what they demand. In this case, they just pretend you did something and send you a bill.
This is why I rank property dead last as an investment during socialisms deflationary global cycle. It is not movable in tough times. It always takes the greatest decline in value because of its illiquidity.
The population of Rome collapsed from 180AD because taxes kept rising and people were just forced to walk away. History repeats itself over and over again. So caution is advisable with real estate. Obviously, we need a place to call home. However, it should not be 80% of your assets. It should be limited to a portion of your portfolio that you can afford to walk away from and survive.
It’s a shame government turns so aggressively against its people. They are always the great destroyer of civilization.
This collapse of socialism globally started September 30, 2015 as I wrote then, it has started to pick up steam as you have seen with Greece, Brexit, the US elections, the progressive demise of the EU, and that of Brazil, Venezuela, and South America. Politicians do not want to get real jobs and will not go quietly as they never have in history.
An InterAnalyst basic membership can keep your retirement safe during bear market collapse and growing in bull markets.
SAC Capital Advisors’ $1.2 billion criminal settlement for insider trading received of course the court approval from U.S. District Judge Laura Taylor Swain of the Southern District of New York, who typically just rubber stamp whatever the Justice Department tells them to do. This is the hedge fund firm run by billionaire Steven A. Cohen who paid a $900 million fine and in total $1.8 billion to settle criminal and civil claims.
This insider-trading probe stretched back to 2007. SAC Capital Advisors changed its name to Point72 Asset Management LP. The government ensnared eight current or former employees through guilty pleas and trial convictions. Cohen, however, was not personally charged and denied any wrongdoing.
The government extorted a very sizable monetary fine out of the culmination of all our efforts, which has no relation to the actual harm. As part of the plea deal, the firm agreed to manage money mainly for Cohen. This was a prosecution of former US Ass. Attorney Preet Bharara of the SDNY who refused to resign and forced Trump to fire him to get more publicity.
The theory of this case was that middle-men put company insiders together with traders to provide industry insight. This was a new theory of modern-day market manipulation. The FBI was using wiretaps and surveillance measures they typically have used in Mafia cases or drug cases against Wall Street. However, they still miraculously avoid the bankers. Once the Federal government charges anyone, it is hopeless for the judges only rule in the government’s favor and the conviction rate exceed 98.5% in New York so there really is no defense. In Mafia cases, an FBI agent will take the stand and say in his experience the word “pizza” or “fish” or anything, is a “code word” and it mean a kilo of some drug. So a wiretap that says “pick up a pizza” is a buy for a kilo of heroine. Juries always believe the government so it does not matter what you say – anything you say can be used as a “code” word for something.
In the case of Frank Quatrone at First Boston, a single email “clean up those files” becomes obstruction of justice. Naturally, if this were used against the New York Bankers, they would all be away. These tactics are only used against the fringe of Wall Street or anyone who dare to compete against New York City such as Refco in Chicago or First Boston.
Bharara called SAC “a veritable magnet for market cheaters” when he announced the indictment. He claimed that the insider-trading scheme dated back to 1999, spanned more than a decade and involved at least 20 public companies. He also declared, “When so many people from a single hedge fund have engaged in insider trading, it is not a coincidence.” Bharara continued: “It is, instead, the predictable product of substantial and pervasive institutional failure.”
Cohen’s firm managed about $11.9 billion in assets. So a fine to a hedge fund of $1.8 billion is a huge amount. Those who claimed that Bharara was tough on Wall Street, should look closer . . .
Not a single NY Bank was ever charged even after pleading guilty to many events over decades and have never lost any license.
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Livio S. Nespoli has been a broker, registered investment advisor, and financial publisher since 1985.