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CHINA, GEOPOLITICS, AND DEBT CANCELLATION

Over the past few years we've seen the emergence of the BRICSA bloc (Brazil, Russia, India, China, and South Africa) rise to challenge the the global hegemony of the Anglosphere and the western financial system. It has not been met idly: former Brazilian President Dilma Rousseff, who brought her country into the BRICSA bloc, was overturned in that country by what amounts to a Brazilian Senate-led coup d'etat alleging corruption charges against her administration; Argentina, which under former President Fernandez de Kircher looked like it might join the alliance, elected a much more pro-western president; India and China are currently squaring off (again) over disputed territories along their borders. There are definitely cracks in the mortar of the BRICS.

But despite the pushback from the West, China (and Russia) have forged ahead with their plans for development of the new "silk road" project of China. Russia and China have both recently inked deals pledging to develop a very northern (read Arctic) version of the road, by-passing the troubled central Asian and Middle Eastern regions. Both nations know, however, that the shift to land-based transport of most of the world's trade is subject to interdiction from space, and equally, that in order to make their plans work, they have to have a secure system of international financial clearing, which again, will require a dramatic expansion of their space assets, and China has made it abundantly clear that it understands these implications of its plans. The USA knows all of this too, and hence, has moved in recent years to create space-based branches and command structures in its military.

But this article shared by Ms. S.H. indicates that there may be a new game looming in the geopolitical contest: one of debt cancellation (copy and paste in your browser):

China Is Canceling the Debt of the World’s Most Impoverished Nations

Something caught my eye here, and I imagine it caught yours as well:

On Saturday, Chinese President Xi Jinping made yet another commitment to help economic growth in the developing world, announcing that China would be canceling the debts of the world’s least developed countries.

President Xi made the announcement while addressing a United Nations summit on global development goals. During his speech, he also pledged to establish a $2 billion fund dedicated to improving conditions in the most impoverished countries around the world.(Emphasis added)

Beyond this, were not given much by way of specifics on how China intends to "cancel the debt of developing nations", so we're left to our usual "high octane speculation" devices.

For many decades the game of the West, and especially of the American Empire, has been to use a variety of institutions like the IMF to make loans to "developing nations" that the loan originators and guarantors know that these nations will not be able to repay. When the inevitable default comes, the terms are "renegotiated", which usually includes the basing of American military, and special perks for American and western corporations, including the seizure of certain specific assets of the country. In effect, the country and its assets becomes the collateral securing these "loans." It's a game well-spelled out by John Perkins in his book Confessions of an Economic Hit Man.

So one may speculate that Mr. Xi's announcement is simply China signalling the fact that it intends to play the same game.

But that would be only one possible reading, and, for the West, the least problematical. It does, nevertheless, have some supporting evidence, since China has lobbied hard to get the yuan/reminbi to be accepted in the Special Drawing Rights (SDR) basket of currencies, and has pushed for, and achieved, the sale of bonds on European bourses - Frankfurt for example - denominated in reminbi.

There is, however, a more disturbing possibility, and herewith, my very high octane speculation of the day. China, as is well-known, has a great deal of US soveriegn securities on its books, as it also has a ready supply of US dollars. For years - decades really, if one wants to get right down to it - the speculation has occasionally been aired that China could, if it chose, suddenly dump all those dollars and securities. Enter Mr. Xi's statement: what if it did so in the guise of paying off Country X's dollar-denominated debt? Such actions would achieve the nightmare scenario many have talked about over the years, but do so in a way to China's economic and geopolitical advantage, rendering countries that have been sucked dry by the Western financial "hit men" into allies. It would be a clever way to restore those countries' ratings, send the "economic hit men packing," and opening the doors to Chinese investment.

Just a thought.

See you on the flip side...

17 thoughts on “CHINA, GEOPOLITICS, AND DEBT CANCELLATION”

  1. The greed of the few over the many has become very apparent. It is like C.A.F. states, the pie has shrunk to unsustainable levels.

    If above possibility comes into reality, well I don’t want to imagine the rebound. But there is a just irony about it.

    I do wonder where that 5G deployment fits in because I see no signs that diabolical technology is not being deployed in Russia and China. China is on the forefront of making cell phones and Rusia with space technology. Seems the same technology is being used on either side to combat one another!

    In the world full of crazies being less crazy comes off as good, but are they? If the cycle of “dualism” can’t be broken today’s freedom fighters are tomorrows conquerors.

    A flip off world hegemony accomplishes nothing. If history is any indication, humans have a steep learning curve and rather be stuck in the same (atlantis) repeat. How much longer?

  2. By the way BRICS is really just RIC (Russia, Iran & China) and they are going to RIC-Roll the west 🙂 Sorry but I just couldn’t resist.

    Those 3 are connected by land and you will not be able to attack any one without help from at least one of the other 2 and that ain’t happening.

    Brazil, India and South Africa (Zimbabwe 2.0) are doomed by accepting their financial colonization.

  3. China will give each country what it needs most. Energy. Once they get their liquid fluoride thorium reactors running they will start to mass produce them and give them away. Like most software they will make their money by training and maintenance contracts.

    During off peak hours the LFTRs (which run best at a constant level) will clean water and pump it around for agriculture and produce bio-deisel, butanol or whatever.

  4. (Modded. Let’s try it, again. I believe it was “Charles D1ckens” which triggered the modding. Still laughing – and crying…)

    Yep, I read “Confessions of an Economic Hit Man,” too. Diabolical. And all it takes is one ‘susceptible’ leader to embondage his/her entire nation…

    JPF: “…China could, if it chose, suddenly dump all those dollars and securities. Enter Mr. Xi’s statement: what if it did so in the guise of paying off Country X’s dollar-denominated debt?”

    What an excellent counter-strategy to the financial perps! I had heard that China was very-gradually selling-off its US-paper, but at that rate would take centuries to unload. This is the perfect solution!

    China knows that TO buy, you need to have a nation/populace ABLE to buy. The financial perps have either forgotten that, or never cared. (Looting is much easier, in the short run.) In addition, you have a very grateful leadership of that country – and a very grateful population. Good for long-term business. And also for ‘influence’, to be honest…

    Perhaps the best thing is that the financial perps running the gov’ts have no ready answer to this strategy. If they come out against it, they will look (even more) like Charles Dic kens’ character, Scrooge. Perfect…

    (China will need to be careful in it’s doling-out schedule. In addition to the financial perps trying to start WWIII over this, each dollar of debt-cancellation removes that dollar from circulation. Move too quickly, and there might be shocks to the global money supply. I am sure China knows of this aspect, and will monitor the global stats. Unless it WANTS to make the financial perps sit-up and listen…)

    Of course, this is a one-time ‘shot’ by China. Once the accumulated US-paper is gone, it is gone. Let us hope that the nations bailed-out of crippling debt by China have also read “Confessions of an Economic Hit Man” by this time, and taken-it to heart. Maybe, China could make reading-it one of the conditions of the debt-forgiveness…

    1. goshawks, you said: “Perhaps the best thing is that the financial perps running the gov’ts have no ready answer to this strategy. If they come out against it, they will look (even more) like Charles Dic kens’ character, Scrooge. Perfect…”

      This is a great post. The more I thought about it the more interesting it became. Early in his life the character was a genuine financial hitman. Yet, Scrooge was rehabilitated in the end. I believe China has moved on to consider the elites here to be a very different Dic kens’ character. I am proposing Fagan as the potential replacement, but there might be a better one somewhere. After all, our oligarchs are acting more like petty thieves and pick-pockets than the reformed Scrooge at the end of a “A Christmas Carol”. I’m still pondering the twist to determine whether Oliver is now Chinese or Russian…

    2. goshawks, I responded but I’m in the intellectual pokey again. As far as I’m concerned this says more about the censors and their software than me, so if you’re curious feel free to check back later.

  5. Yep, I read “Confessions of an Economic Hit Man,” too. Diabolical. And all it takes is one ‘susceptible’ leader to embondage his/her entire nation…

    JPF: “…China could, if it chose, suddenly dump all those dollars and securities. Enter Mr. Xi’s statement: what if it did so in the guise of paying off Country X’s dollar-denominated debt?”

    What an excellent counter-strategy to the financial perps! I had heard that China was very-gradually selling-off its US-paper, but at that rate would take centuries to unload. This is the perfect solution!

    China knows that TO buy, you need to have a nation/populace ABLE to buy. The financial perps have either forgotten that, or never cared. (Looting is much easier, in the short run.) In addition, you have a very grateful leadership of that country – and a very grateful population. Good for long-term business. And also for ‘influence’, to be honest…

    Perhaps the best thing is that the financial perps running the gov’ts have no ready answer to this strategy. If they come out against it, they will look (even more) like Charles Dickens’ character, Scrooge. Perfect…

    (China will need to be careful in it’s doling-out schedule. In addition to the financial perps trying to start WWIII over this, each dollar of debt-cancellation removes that dollar from circulation. Move too quickly, and there might be shocks to the global money supply. I am sure China knows of this aspect, and will monitor the global stats. Unless it WANTS to make the financial perps sit-up and listen…)

    Of course, this is a one-time ‘shot’ by China. Once the accumulated US-paper is gone, it is gone. Let us hope that the nations bailed-out of crippling debt by China have also read “Confessions of an Economic Hit Man” by this time, and taken-it to heart. Maybe, China could make reading-it one of the conditions of the debt-forgiveness…

  6. China and Russia making deals on trade and improvement of their countries. What is the US doing, making bombs, guns, fighter jets,, and navy ships. Boy something is seriously wrong here, oh, I forgot that in the US the military industrial complex is running the deep state…….eh government.

  7. I find it interesting that the official currency of the USA is still the Silver Dollar, yet one must part with approximately twenty-five Federal Reserve Notes (as of this weekend) to obtain one of these Silver Dollars.

  8. A clever move IF the game is between nation states.
    Yet, the big players are multinational/transnational corporations/FACE, Apple, etc.
    Corporate fascism is a systemic policy that is tough to breach. Republics/democracies may be more able to have policies implemented that could effectively bring about a needed paradigm shift if the living biosphere is to survive in a viable form that benefits mankind, now & for generations to come.
    That change is into an economic living economy that manifests Earth as a living planet; rather than a dead rock exploited by corporate fascist robots at the expense of the living.
    Not a debt jubilee…
    But to break entirely free of those polluted, poisonous, radioactive, synthetic, genetically corrupted debt shackles on our living Earth ecologies.

    1. Probably the 1st step is to nationalize the utilities, starting with the privately owned central banks. Free the moneys from the few private owners and have it issued by peoples’ governments into a living economic model.
      Use the devil’s tool to leverage a good life for all,
      not the selfish narrow-minded few –
      currently, at the expense of a vibrant living Earth

  9. This brings up the problem no one dare bring to the floor. Who are the real masters of the World and who do they serve. And what is their real end goal and plans for the fate of the rest of us or are we to be considered collateral damage. In this deadly Game Of Thrones-Sole Survivor played for real with real death and destruction being dish out.

  10. It will be interesting to see if the debt cancellation includes Nepal, where India and China have long been vying for influence. If so, India might have to reciprocate and this would put some force back into the “BRICS” project which seems to have fizzled (is this what is behind the India-China border clashes?).
    There is nothing to indicate that China can be a “knight in shining armour” to save the world from the evil “western” banksters whom they have now joined and/or infiltrated. China as a manufacturing power is the creation of those same globalists in the drive to de-industrialise the traditional “western” powers (successful EXCEPT in Germany). But the ball is in their court and the Silk Road project, with its space-related “high ground” aspects, is under way. And not even “Mr Global”, for all his “scenario modelling”, can predict the outcome.

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