Crypto is seen as the “new gold” by many people either already working in the cryosphere or just joining and buying some bits of the thousands of cryptocurrencies now available. Many past and upcoming ICOs (initial coin offerings) promising huge returns and experiencing major ups and downs throughout the last few years.
Perhaps most interestingly, many leaders of major powers have decided to speak out in favor of cryptocurrencies while actively trying to moderate and block regulation efforts which could severely affect the crypto trading and mining industry. In mainstream news not much going on about gold if anything at all, many people are predicting that the price of gold won’t substantially go anywhere until the end of this year, 2018.
Crypto is seen by a handful of countries as a new way to innovate and create payment systems based on blockchains and encryption. Recently the New York Times came out with an article, “Blockchain Will Be Theirs, Russian Spy Boasted at Conference” claiming that major Russian officials are interested in cryptocurrency technology along with their Japanese and Australian counterparts. During the last few months, there was a major clampdown in China on cryptocurrency trading causing an exodus of Chinese miners and traders to European countries.
Some ICOs claim that their blockchain-based “innovation” to be really disruptive (cloud storage, video hosting, blogging and other services based on blockchain), at the same time they fail to deliver something which works better and is faster for the end user and easier to adopt for developers, at the end of the day delivering a complementary product which was already on the market in one form or another for a few decades rather than giving people something new or unique.
China and the Russian Federation at the moment concentrates on buying as much gold as physically possible, because gold is Undervalued at the moment, preparing their fiscal and monetary systems for the post-dollar world, where the U.S. dollar is no longer the world reserve currency (to be exact it is not currency it is “fiat”, because it is printed out of thin air).
For them, if buying crpyto would be more profitable than buying up gold in mass quantities, surely the two countries would opt to purchase big stakes in cryptocurrencies. Other countries in fear of affecting the price of gold, like Norway, choose to buy shares in corporations in the business of gold mining. The two countries, from where we sit at, look to be vigorously competing at which one of them could amass more gold. It was alleged a couple of months ago that Russia got ahead of China in the gold department (Russia’s Central Bank Gold Hoard Is Now Bigger Than China’s), but since then the situation could have changed. What hasn’t changed is their stance on gold: the more the better.
Gold is at the moment undervalued and its price is most likely fixed by a dozen or so people. The Shanghai Gold Exchange (SGE) was launched by China with explicit reason to give gold another price fix on April 19th, 2016. So, for the first time in modern history gold has not one, but two prices. One is in the U.S. dollar and another in the Chinese yuan. At this time China is not willing to go ahead and price gold according to its value, because then it couldn’t purchase gold at a heavily undervalued price. Having more gold means securing a bigger role in the world economy after the dollar loses its reserve status. If they decide that they have enough gold, they simply raise the price draining the gold supply of the West, exposing the fake Western gold market, consequently killing the U.S. dollar.
China has already done major preparations, including introducing the gold-backed Chinese petrol yuan which will directly challenge U.S. dollar hegemony. At this time the yuan is pegged to the dollar (which means, the central bank promises it will give a fixed amount of its currency for the U.S. dollar).
Since China overtook the United States in the consumption of oil, China will probably pressure Saudi Arabia to begin trading their oil in Chinese yuan, Chinese officials just announced a few months back that they want to renegotiate the trade deal between China and Saudi Arabia. Since the Russian Federation is already trading in yuan and in other currencies with China and Iran just began trading oil in euro, if China brokers a deal with Saudi Arabia, then the petro yuan will surely and abruptly dethrone the U.S. petrodollar.
This is the reason why the Saudi king and Saudi princes are regarded so highly in Western Europe and in the United States. If Saudi Arabia decides to accept such Chinese interests, then the U.S. petrodollar will surely be dommed.
Earlier today, on 30th April, the Israeli parliament voted to allow the Israeli prime minister, in this case, Netanyahu, to take the country to war without prior authorization in “extreme circumstances”. What constitutes “extreme circumstances” still remains to be unknown. Just hours after this decision was made, Netanyahu made the claim that Iran is currently developing a nuclear weapon, which, according to him, should be prevented at all costs.
EDIT: Saudi Arabia wants the oil to be $100 a barrel so its economy can break even and exit recession, that’s why Saudi Arabia has welcomed Trump decision on the Iran deal. If all else fails, they take you to war.
The occupation of Iran, even if we take Russia and China out of the picture, would be very difficult since the Iranian military has many underground military bases and facilities. The government of Iran claims to have hundreds of subterranean military installations.
The interested parties, including Israel and some elements of the White House, are trying to go against Iran as hard as possible to go to war, perhaps even if that would cause a war with Russia and China. If Iran would get attacked by the U.S. the war will severely affect the United Arab Emirates, Qatar, and Saudi Arabia. If Iran would target the Persian Gulf with artillery and air strikes, then it could cut off the UAE, Qatar and much of Saudi Arabia from sending and receiving cargo ships, including oil tankers.
In 2016 Saudi Arabia vowed to create the world’s largest oil tanker fleet. Oil tankers filled with more than 300,000 liters of crude oil each don’t really like to get treated with missiles or artillery. I should also at least mention “supertankers” which will be able to carry up to 2 million barrels of crude. Even a single leaking (not even sunk) oil tanker could lead to a major environmental crisis. Could Iran impose a blockade? And if yes, under such blockade would captains decide to sail out?
Perhaps the only way for Saudi Arabia to keep its national interests is to avoid said conflict and get help from the Eastern alliance.
At the end of last year, Saudi Arabia has received major help from Russia and its king was welcomed with a custom-built golden elevator in Moscow. Deals such as licensing Russian firearms to Saudi companies and allowing them to purchase advanced Russian military equipment (such as attack helicopters). At the moment they are in discussions about the transfer of S-400 long-range missile defense systems which would also include licensing for local manufacturing to be undertaken within the territory of Saudi Arabia. Qatar and India are also interested in getting S-400s.
Donald Trump at this time looks only to be interested in securing some form of place for the United States with his diplomacy in the post-dollar world. For that, you should applaud the man, because pretty much nobody from the current administration aside from him is willing to do that. It will surely benefit the American people and make the transition much smoother.
Would cryptocurrencies make sense during an economic collapse/downturn? Of course, provided that the power grid is running just fine and shopkeepers actually know what crypto is. What the dear reader has to realize is that these countries are hoarding gold, they just can’t get enough of it.
After the recent two attacks on Syria (one last years and another very recently) closely supported by major powers, such as the United Kingdom and France, and now the warmongering against Iran, makes countries like Syria, Iran, the Russian Federation, China, and India work more closely seeing that the United States and some members of NATO can only be trusted when those don’t have any conflict of interest with the other countries at the conference table.
Remember, just last year, Chinese warships have joined the Russian navy for the celebrations in Saint Petersburg where riverboats and warships crossed the city on the Neva. Threatening both countries at the same time will just result in closer relations between the two.
As I have mentioned before, Trump (unfortunately) failed to achieve anything special during the one year he has been in the White House in terms of meaningful domestic policy, and is hiring and keeping very harmful individuals who do not represent the interest of the American people (Nikki Haley, John Bolton and Pompeo). Most importantly he failed to address and try to resolve the issues in the “Rust Belt” and chose not to deal head-on with issues in major U.S. cities, like Detroit, where there is no running water. He is appeasing the international corporate media with his foreign policy and actions (except recently in connection with North Korea, where he, fortunately, decided not to disrupt relations and to just sit on the sidelines).
Iran has just begun a few days ago trading their oil in euro instead of U.S. dollars, a small hit to the global petrodollar system, which was created to keep the dollar as the world reserve currency and was enforced multiple times, for instance in Iraq (started trading oil for euros), Lybia (Muammar Gaddafi wanted to create a gold-backed currency), while many people are left with idiotic articles being constantly published using the tactics described here.
For three weeks or more I have been mentioning in private conversations that he will be awarded the Noble peace prize if he goes to the two leaders of the Koreas, shake their hands and speaks a couple of nice things about them. Receiving the Noble peace prize will also appease his big ego and might help him achieve more meaningful things in the United States than building a simple wall.
Avid supporters of Donald Trump would like to claim that either I have a limited mental capacity or I am biased, however it is Them who fail to realize and note that he intervened in Syria both times ignoring the U.S. Consitution which requires the President of the United States to get Prior authorization from Congress before launching any military strike. He simply broke the very rule which he to be upheld throughout his presidency.