When President Nicolas Maduro announced toward the end of September that Venezuela would no longer sell oil in dollars, but in a ‘basket of currencies’, including yuan, rubles, and gold, the Western world tried to pretend it was of no consequence.
From Mision Verdad’s ‘‘What Does the Sale of Venezuelan Oil in Currencies Other Than the US Dollar Mean?, Sept. 29, 2017:
“In a working meeting with business people on the Constituent Plan for Peace and Economic Prosperity, [Vice President Tareck Al] Aissami said, “We have to throw off the yoke of the dollar”, arguing that anyone wanting to bid in auctions of the Floating Exchange Rate System (DICOM) should switch their bank accounts to another currency. Aissami added, “We’re doing no more auctions in dollars, those auctions are over”. He emphasized that these measures are meant to counteract economic sanctions imposed by the US.
Aissami also said that Venezuelan citizens promoting the sanctions would face trial, adding that Venezuela is closing existing bank accounts and migrating them to other banks around the world, whom he thanked for their assistance. He reported that, “In the public banking system we already have partner banks in all those countries” (Russia, China, India, Europe).”
And of course Vladimir Putin had announced during his August visit to china that “the petrodollar system should be a thing of the past”. Given the Western sanctions policy against his country, he added, “Russia is discussing the use of national currencies in swap agreements with various countries.”
Mision Verdad narrates the history of the petrodollar, and explains why both the petrodollar and the US military were keenly employed on the road to the Empire’s current domination, and what’s happened along the way to those who er…resisted Rule by Petrodollar, as the threat to the hegemonic currency grows.
“Libyan leader Muammar al Gaddhafi was overthrown and brutally murdered when he decided to sell oil in euros, and then to replace the euro by introducing a gold dinar currency.
That meant the emergence of a national leader with 150 tons of gold reserves proposing to sell oil in exchange for real gold, which is why then French President Nicolas Sarkozy said, “Libya is putting at risk global financial stability” which is based on an unsupported currency of benefit only to US consumers.
Along with some banks and energy companies operating in their countries, China, Russia and Iran are following a de-dollarization policy to escape US domination. In 2014, the Russian treasury announced a plan to increase the participation of ruble-based contracts while, last May, at the Shanghai Summit, Russia committed to selling China US$400 billion of natural gas over the next 30 years, invoiced in rubles and the yuan. It has been called “the deal of the century”.
The authors describe how many other nations, banks, and energy companies are now making deals in non-dollar currencies, including Canada, Qatar, etc. including discussions within the EU, Iran, and UK to deal in yuan or other currencies as well.
Meaning that threats to the Blessed by God Imperial project must be stopped; there is no possibility of yielding to a multi-polar world. Recent Imperial ‘War by other means’ hasn’t yielded the fruits the hegemon had hoped for…so far.
Enter Dr. Texas Military Weapons Mac Thornberry and (ahem) Congress, and the military budget: ‘US Congress Asks Pentagon to Prepare to Intervene in Venezuela’ by Mision Verdad, Oct. 3, 2017
“As the various components of the U.S. offensive against Venezuela take shape, the U.S. political establishment is also planning their budget for 2018. It includes a line item they call “the situation in Venezuela” from a military point of view. On the webpage of the U.S. Congress, there is a proposed law called (National Defense Authorization Act for Fiscal Year 2018).
This proposed law was introduced in the House of Representatives last June 7th and approved on July 14th by a large majority. Last September 18th it was passed by the U.S. Senate (Vote Counts: YEAs 89, NAYs 8, Not Voting 3), so it only remains to be signed by the President in the White House before becoming law.”
Now in order to buttress the threats in VZ, as well as a line item, two reports were produced to justify ‘the need’.
“The first of these reports, made available in the House of Representatives last July 6, has a section on page 179 entitled specifically “Venezuela Security and Stability”. The report was presented by the House of Representatives Armed Services Committee and says this about Venezuela:
““The committee is concerned about the growing economic and political unrest occurring in the Bolivarian Republic of Venezuela under President Nicolas Maduro. With reports of famine, political uncertainty and corruption, a disintegrating economy, and undue violent government action against its citizens, the committee is concerned that instability in Venezuela could lead to a government collapse and failed state. In addition, this instability could result in portions of the Venezuelan population migrating to neighboring countries, including the Republic of Colombia, the Cooperative Republic of Guyana, the Republic of Peru, and the Federative Republic of Brazil, seeking humanitarian relief. The effects of a large-scale humanitarian crisis in the region could be catastrophic.
The committee is concerned about U.S. Government contingency planning if a collapse of the Venezuelan Government and economy occurs. Therefore, the committee directs the Secretary of Defense, in coordination with other Federal Government agencies and departments that the Secretary deems appropriate, to provide a briefing, which may be classified, to the House Committee on Armed Services not later than September 30, 2017, on U.S. Government contingency plans for a potential humanitarian and migration crisis in Venezuela if its Government and economy collapse, to include the Department of Defense’s roles and responsibilities and assets that would contribute to such plans.”
Well, sure and that’s the True Reason, in’t it? ‘Migration crisis’, ha ha. The bolded nations are definitely on record against the Maduro ‘regime’, as is most of the OAS, so they are likely whispering in Mac’s (and other critters’) ears. But of course Rexxon Tillerson and Orange Julius have already laid the framework for ‘intervention as a last resort’, but recently added VZ to his travel ban list. Rexxon of course, has Venezuela in his sites, thus the military’s (and apparently Congress’s), due to the vast untapped offshore resources off the coast of VZ, the so called disputed ‘Liza Projects’. Rexxon has already awarded contracts to drill, baby,drill for Guyana. But wait! There’s more!
“In its section “Title XII—Matters Relating To Foreign Nations”, Mac Thornberry’s proposed budgetary law includes “Subtitle C—Matters Relating to Syria, Iraq, and Iran” whose “SEC. 1234. Modification and additional elements in annual report on the military power of Iran” includes the following text naming Venezuela as a country cooperating militarily with Iran.
“(7) An assessment of military-to-military cooperation between Iran and foreign counties, including Cuba, North Korea, Pakistan, Sudan, Syria, Venezuela, and any other country designated by the Secretary of Defense with additional reference to cooperation and collaboration on the development of nuclear, biological, chemical, and advanced conventional weapons, weapon systems, and delivery vehicles.”
This literally means that Congress is asking James Mattis, U.S. Secretary of Defense, to evaluate Venezuela from a military point of view and thus take into account that Venezuela forms part of an emerging bloc with Iran, Russia and China calling into question U.S. global hegemony.”
So the support by the US, CIA, and friends in the attempted putsches didn’t ‘work’, thus more and more sanctions, boycotts, and fines to ruin the economy further, necessitate a military intervention, see?
“The profile of the report by the House of Representative’s Armed Services Committee matches the precedents that lead to the interventions in Iraq and Libya, both of which followed financial boycotts and penalties targeting the leadership of those countries as a pretext to “protect” the populations, suffering from U.S. sanctions, via outright bombardment
In the light of these Congressional moves, the “military option” which Trump has mentioned is far from being some crazy comment or out-of-place remark, but a carefully put together political plan, taking shape and methodically checking off its procedural stages.”
As far as ‘The War Party’, both aisles are War Pigs, remember? Obomba was the first to declare Venezuela ‘a national security risk to the US of A’ (because: socialism, of course), and the Blue Team made sure to give Herr Trump an additional $50 billion more than what he’d…er…asked for, because: Russia. Now there’s a psy-op that won’t be tamed; it’s far too useful in so many directions.
But let’s see whassup at the State Dept.on Twitter, okay?
Rexxon: “your president is not a crook; he’s a moron!” (maroooon?)
omg, the congressional vapors over a possible refugee crisis if the VZ gov’t collapses. good thing Colombia is on the case; they know a thing or two about refugees, don’t they? Plan Merida, planned chaos.
but that’s it, ain’t it? there is zero positive vision of anything coming out of the USG. it’s all about maintaining themselves atop of the global trash heap by sowing chaos anywhere & everywhere. lots of talk about “global leadership & security” but it’s all smash & grab.
but thank the TV gods for Ellen DeGeneres. such an oasis of sanity for these trying times. and Dr. Phil. what a comfort.
holy smoke! a comment! thanks, gmo corn zombie. nah, that schtick about refugees and a crisis is just another con. a couple months ago southern command was floatin’ around off the coast of VZ, remember? ‘just in case’. kinda like the old africom mission statement: ‘we go to help repair destabilized nations’, when what they mean is…we help destabilize them chaos sown by usaid (cia), rotten/compromised ngo’s, etc.
yep, nothing but smash and grab, although one surmises that a lot of our empire’s rulers sense that this particular empire will go down soon, as all other empires have. i almost put up a contest after reading old sourpuss hedges’ ‘end of the empire’ that came in w/ the popular resistance newsletter.
it ain’t gonna be pretty, but it’s a train comin’ down the track, and it’s often said that dying empires are the most dangerous. that i can sincerely believe because: panic. guess your buddy nick kristoff weighed in on catalonia; i stuck it up on the thread via wsws. “it’s the roosians!” #what.an.oaf
i know you meant your comment cuz ya said it twice, lol. i reckon i’ll delete the second one, ho-kay? ellen d: happy, peppy, panglossian?
Considering that it was the OPEC end of the petrodollar in the early 1970s that destroyed the Bretton Woods Agreement structure and scared the bejesus (I think that’s the right word under the circumstances) when OPEC was using “oil as a weapon” against the US after the Yom Kippur War.
Yep, petrodollars are a techy subject with Uncle Sugar.
But so far there is no crack that the US can seize on and even European countries are diversifying their monetary operations, trading in the currency of the power they are dealing with and dollars where they remain smart trades.
What Trump as granted so far is Russian power in its region and Chinese power in its region. He wants them to act as the policemen on the beat to pursue US interests but not yet going full throttle against the possibility of them nationalizing Exxon interests (for one factor). The logical policeman under a multipolar arrangement for South America would be Brazil; the US just engineered a coup that impeached Dilma Roussef just for that purpose–breaking up the Bolivarians.
I would watch to see how little power the US now has over Venezuela. Afghanistan and Iraq are still bleeding the US budget and creating American casualties. Africa (Niger this week) still produces US casualties. A lot of American power is stationed in the South China Sea and Western Pacific to deter China and do whatever with North Korea (Bannon says the US really can do nothing that is not catastrophic. He cites 10 million casualties in the capital of an ally — Seoul Korea.)
It is the pattern of the US to bull ahead anyway, but they have fewer and fewer cards with other priorities in the world to deal with Venezuela and North Korea and Afghanistan and Iraq and Niger-Nigeria-Mali and the Congo (yet again). And now Europe is shaking. BREXIT and Catalonia, for starters.
If the change of banks actually does deal with some of the economic woes, Maduro will strengthen domestic support instead of creating refugees.
Rajoy is likely to create some problems for the US as he benefits from the neoliberal capture of EU economic institutions. So there’s your EU policy, Scots, Welsh, Flemings, Walloons, Basques, Galicians, and other devolutionists who were beginning to see their moment in a global economy mediated by a “Europe, whole and free”.
And the Rohingya crisis is not yet done. So much for the peaceful tolerant Buddhists. That one is right astride Mahan’s, Mackinder’s, and Spykman’s favorite – the Moluccas. And the Spratly Islands, beloved of China, are on the the other side.
Moluccas? Venezuela? Which is of greater strategic interest to the US? Which commands more money to apply military pressure?
Neither Mattis nor Tillerson seem like flailers of the Westmoreland, McNamara, Abrams, Kissinger type. They seem to like to go in and go big. That limits how many places they can handle at one time.
(and the nixon shock in ’71; interesting background reminders to the…forgetful among us.)
dunno how many economic refugees there actually are, but the sanctions are creating worse and worse conditions in VZ. too many places to make war in…wish it were so, but the oas just might help./s but the usaid, cia spooks, and false flag ‘murders’ are also killing them by way of compromised media mis-statements, as well. er…fabrications?
“And the Rohingya crisis is not yet done. So much for the peaceful tolerant Buddhists. That one is right astride Mahan’s, Mackinder’s, and Spykman’s favorite – the Moluccas. And the Spratly Islands, beloved of China, are on the the other side.” your grasp on the global map is sincerely…awesome to me.
southern command: they may cover more areas in the south than i’d realized. thanks, thd. and sorry the trash ate your comment. none of the words i’d typed into the blockade list hoping to stop all the racist porn spam…seem to be here, nor in your more recent one. odd-bodkins.
There are a lot of odd-bodkins going on as browser invaders these days. Could have been on both ends the commenting process; my browser was using a lot more CPU than it should, and it deleted the ID boxes from the view of your page when it posted the refreshed view. Another example of declining infrastructure.
Thanks for rescuing it.
Should not operating with the countries that have alternative currencies be the way around sanctions? It will take time to move accounts and supply chains. At some point, the US knee-jerk reaction of sanctions will come back to bite the US economy and economic power. It already has created a BRICS monetary agreement with third-party participation. That could become a monetary union like Europe formed in the 1950s.
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