Monday, March 24, 2014

What do China, Russia and Saudi Arabia Have in Common?

The USG empire is looking a bit hollow right now. The Afghans are kicking us out after a half-hearted surge five years ago. Assad stands triumphant with an option to stay or walk away on his terms, holding power behind the scenes if he wants. The Iranians are toying with the West in their six month window of relaxed sanctions. Russia is pushing their claims in the Crimea with India and China supporting them. The Saudis just sent the crown prince to China to talk shop, and tiny Belgium now holds $300 billion in US Treasuries. The USG system is calling Russia isolated. Projection. Has the USG diplomacy crew stopped to think about what Russia, China and the Saudis all have in common? They all are natural enemies of the USG system with corresponding strengths and weaknesses.

What does the USG have in common with the Saudis? We just need them to pump oil and keep buying dollars. The Chinese? We need them to provide cheap labor and keep buying dollars. The Russians? We need them to buy some dollars and pumping oil helps keep the spot oil price lower. The USG is about spreading democracy, gay rights, 21st century marketed feminism and the progressive buffet. Those three countries do not sound like willing recipients of such garbage. Putin has been pretty open about not following the West down its suicidal path. The Saudis are only still a monarchy and in charge of the peninsula because of their oil reserves, and China is not budging on "moar political freedoms". These three also hold hoards of dollar denominated assets that they accrue in exchange for commodities. No one has to be an ally, only have a shared interest. What are they going to do with all of those depreciating dollars?

As Zero Hedge notes, China has an appetite for natural resources as the manfuacturing hub of the world. Russia needs buyers for its oil and gas, and the Saudis need security. The moves are being made to set up a petroyuan with heavy exchange of commodities and gold. Who will protect the Saudis? China and Russia should be able to do enough. Why do the Saudis need protection? External threats? Who would the Saudis need protection from if the Iranians are also a client of the Chinese and Russians? Saudi Arabia is well armed, but already seeks arms diversification. It would be regime stability and internal control, correct? China and Russia are two votes on the UN Security Council if they have to suppress any internal strife that the US State Department and CIA cook up. The Israelis? Shhhh, but some pundits think the Israelis and Saudis have a silent agreement (I do, too). Regardless, if Sailer is onto something, what if the Russians make inroads with Israel while the American left abandons Israel as the American public grows more isolationist and duskier (less pro-Israel) by the year.

The key for the Russia-China axis is to provide a believable physical and financial security system for other nations. China has beaten the drum on respecting other nations' internal governments as long as the minerals and resources flow. Russia can point to the West toppling the Ukrainian government, which looks horrible outside the US-EU zone, and sudden IMF leeching of the people. Magically, pensions are cut in half for seniors, the gold is gone and new billions in debt are being thrown onto the future taxpayers of the Ukraine. Putin can sit back and let the Western banking interests be the best PR he can buy, but do it for free. While the debt is being piled on, China is going to grab a few billion the Ukraine owes it. Steadily since the American financial crisis, China and Russia have made moves to build a system outside the USG system or force enough pressure to have a seat at the table in the IMF-World Bank system. The latest being Russia stating China's yuan could be a third reserve currency. Each time the USG plays RISK over a piece like the Ukraine, Syria or Libya and leaves a shattered nation in its wake, the Russia-China advertisement for a potential "fair" system, even if it is a mirage, looks more appealing.


Anonymous said...

Brazil is making trade packs with Russia, India and China.

Brazil is also another foe of the USA, but this doesn't get much press spotlight because according to the US government/corporate propaganda lies Brazil is NorthEastern Bahia-Negro nation and full of Favelas, when in reality that it just 7% of the country.

Son of Brock Landers said...

Brazil announced they are building an aircraft carrier. They are also trying to position themselves as the alternative to US protection and hegemony. Problem is their human capital is low, the country's education system sucks and the inequality is worse than here. You are right that the nation is far whiter and varied that the press ever discusses. The black pop is small and it was fun whenever a black American woman would rip into the person who ran "F-Yeah Brazilian Girls" tumblr for showing mostly white and light women only to be smacked back with facts and figures. The US, if it stays together, is destined to become Brazil Norte, only speaking Spanish.

PRCD said...

We need to solve our own problems not be the world's hegemon.

You don't need to have the world's most powerful military industrial complex to have a national defense. Wars are like prison riots: you don't need to win, you just have to hurt the other side bad enough that they don't want to mess with you again.

China has a lot of incentive to get off the dollar. Right now, they're suffering bad inflation because of all the debt we export there. THis is driving up wages and making them less competitive than Latin America or Southeast Asia. If things go as they are, they'll be stuck in the middle income trap.

Our leaders look absolutely clueless and inept. They seem to have no idea how the real world works because they've never worked in the real world. They've worked in government their entire lives.

Anonymous said...

Brazil Norte is quite mixed. Brazil Norte is also quite depopulated. It has 17 million people for a large land area.

Brazilian NORTHEAST has 50 million inhabitants.

Internal migration of black people from North Eastern Brazil to the North ruined it though.