For several decades, we’ve been told by
the mainstream media that the West has a
firm grip on the word’s economy and that America decides the future of the
former World Bank economist and Voice of Russia
outlines one of
the scenarios in which America’s
plans for a New World Order
Next is a
'hypothetical unfolding of events.'
system, as the move described below,
of a myriad of
Here is a
9 October 2013
Imagine - it is December 31, 2013...
The Presidents of the BRICS (Brazil, Russia,
India, China and South Africa) plus Iran and Venezuela call an impromptu
press conference - in Paris - to present a 'Sea of Change in Economics,' as
they call it.
The announcement was circulated throughout the
international media and diplomatic offices and embassies just a day before -
an indication of urgency. Despite it being the last day of the year with
most people thinking of their year-end festivities, the event calls the
attention of many - especially the world of finance - and of course the
The press meeting is planned for 18:00 at the
Dolce Chantilly, in Chantilly, just 40 minutes from the center of Paris.
The seven presidents, accompanied by their Ministers of Finance, are seated
in a half-moon panel in front of about 500 journalists from all over the
world. The Chinese President and General Secretary of the Communist Party,
Mr. Xi Jinping, opens the conference without fanfare, introducing the
subject as an event that may have worldwide repercussions.
"We the BRICS and some other hydrocarbon
producing countries, like Iran and Venezuela - others may join in the
future - have decided as of tomorrow - January 1, 2014 - to introduce
two new economic measures.
First, the BRICS and Iran and Venezuela will
launch a new currency, called the Bricso. The Bricso will, at least
initially, be a virtual currency; similar to what the Euro was in its
initial years of existence and currently the Sucre in the South American
trading community of ALBA. The backbone of the Bricso is a basket of
moneys of the BRICS and those of Iran and Venezuela.
The individual country currencies will be
weighed according to their respective economic strength - similar to the
Special Drawing Rights - SDR - of the IMF.
The initial basket of Seven, does not impede
that later other countries, trading partners of the BRICS, may join the
Reality Check comment: One has to wonder:
why do it in a sudden almost theatrical manner? The reason is simple: such a
move is a declaration of war, an economic war, but a war none the less.
Maybe, calling this operation a "revolution" or
an "insurrection" would be more appropriate, but the essence remains the
same. The West has abused its economic power and used its financial
institutions to the detriment of the rest of the world. It was time to turn
When global domination is at stake, it is a good
idea to fire the first shot.
"Initially, each country will continue to
use its own currency. In the course of the coming years we may decide to
also issue the Bricso as a paper currency for all member currencies,
similarly to the euro.
For now, we believe, each member country
will have to adapt its economy to certain established parameters of
economic viability - criteria that were not followed seriously enough by
the Euro member countries."
Reality Check comment: This plan has an
important technical requirement. The new currency requires a central bank.
Actually, BRICS countries are already building an alternative financial
system. While kick-starting it into action on short notice is quite hard,
using the new mechanisms for clearing the trades done with the new currency
is not impossible.
Mr. Jinping went on,
"The recently created BRICS
Development Bank will initially act as the BRICS Central Bank, issuing
guidelines and norms of economic and financial viability, for each
member country to adopt, so as to create coherence among them and
facilitate trading within, as well as outside the Bricso domain.
As our economies evolve, we may consider
other steps to adjust to the new dynamics, like - as mentioned before -
issuing common paper money. The BRICS Central Bank will also act as a
bank of last resource for the member countries, lending to their
respective national central banks at inter-bank rates."
"We have also decided on an initial exchange rate between the US dollar
and the Bricso - one Bricso equals 10 US dollars.
This is roughly the relation of the
outstanding debt - or unmet obligations - in proportion of the
respective GDPs - of the US and the combined BRICS."
Reality Check comment: It doesn’t take a
prophet to predict that the western media will describe such a move as an
attack on the dollar. Probably, stronger terms like "financial terrorism"
are likely to be used. However, it is clear that the mainstream media will
always demonize the BRICS countries so there is no point in trying to be
"the good guy." Anyone who disagrees with the NWO will be labeled as an
evildoer, tyrant and terrorist. History is written by the winners and if
BRICS win this financial war, the leaders of the anti-dollar movement will
be hailed as heroes. Given the financial atrocities the West has committed
against the world, it is safe to assume that any act aimed at dismantling
the existing global financial system is actually an act of self-defense.
A murmur went through the room gaining
But before the noise got out of control,
President Jinping continued with a raised voice,
"The second important step we are
announcing - also as of January 1, 2014, the BRICS, Iran and Venezuela
will sell their hydrocarbon - primarily oil and gas - in Bricsos, in a
newly created Shanghai Oil Bourse. In fact, all countries, oil producers
and otherwise, wishing to trade in other currencies than the US dollar
may do so at the Shanghai Oil Bourse, or in short the SOB.
The reason for abandoning the dollar as an
oil trading currency is its volatility. In fact, the dollar has lost its
value - and its trust - over the past decades; it is beset by enormous
debt and has no real economic backing. Many oil producers see their
hydrocarbon wealth at risk."
"That is all for tonight. I wish you a fun-filled transition into 2014
and a happy New Year."
Reality Check comment: There is nothing
unrealistic about this scenario. Everything could be ready quickly. The oil
companies will easily "unwind" their dollar-based contracts and even if they
do it gradually, the global oil price is set by the "marginal" (aka "free")
production that is not sold in advance. The same structure can easily work
with 3-4 delivery points across the globe in order to ensure a fair,
transparent and adequate pricing mechanism for all global producers and
The presidents and ministers collected their papers and were about to step
down from the panel - when the aula exploded in yelling and shouting.
One voice barely pierced the noise on the floor,
"What will happen to the US dollar?"
Screamed CNN’s José Perez,
"When suddenly a third of the world’s
hydrocarbon is traded in - eh - I mean in Bricsos?"
BBC correspondent, Jim Dillen, was afraid that
the world economy may collapse.
France's Bernard Betancourt, exclaimed,
"Finally a relief from the dollar. But where
is the gold? You did not mention it as part of the basket."
A spokesman of the Nigerian Embassy, who
attended the Press Conference, asked simply,
"What are we going to do with the
worthless dollars in our coffers?"
Mr. Vladimir Putin, Russia’s President,
tapped the mike with his pen, attempting to soften the anxiety in the room.
As quiet was restored, he said,
"These measures will certainly have an
impact on the world economy. To predict exactly what will happen is
impossible. Time will tell.
But, yes, there will be some collateral
damage, especially in those countries that have been relying heavily on
the US dollar, on trading with the United States.
But it will also affect us, the BRICS.
A large proportion of our dollar denominated
reserves will be wiped out, as the dollar will undoubtedly plummet - but
again, it is difficult to speculate at this time to what extent it will
lose its value."
Reality Check comment: In judo, this is
called a sacrifice-throw. Such moves require the thrower to move into a
potentially disadvantageous position in order for it to be executed, such as
falling to the ground. The momentum of the falling body adds power to the
throw and requires comparatively little strength, compared to the effect.
Sacrificing a part of currency reserves in order to bring down the American
empire is definitely a good strategic move.
Mr. Putin directed his next words at the representative of Nigeria,
"And, Sir, yours too - and that of other
countries that have large amounts of US Treasury bonds in their central
banks. But, ladies and gentlemen, I predict that this is only a
short-lived loss, as we will quickly recover the value of the lost
dollars through a stronger and more stable Bricso.
To be precise, the artificial and highly
inflated value of the US dollar - which in fact, has for decades had no
real backing, other than the world’s belief in America’s strength. But
by now, most of the world realizes that the only strength that
Washington can stand for is brute military force. Its economy depends on
wars and conflicts around the world.
The US economy is indeed based on
destruction - not construction. Accounting for all associated industries
and services, way more than 50% of the US GDP consists of the American
military industrial and security complex.
The rest is consumption of goods made
abroad, many of them in the BRICS countries, and of values of services
blown out of proportion."
Reality Check comment: The crucial aspect
of this operation is the message sent to the people of the world. The
message is about the change of core principles of the global economy. Any
change in the global financial system is useless without a proper change of
the underlying ideology. For the BRICS to prevail, the professionals working
on spreading the right message have to perform brilliantly. The world must
see that the whole struggle is not about hijacking the current economic
system, but it is about creating an equitable economic system.
Mr. Putin paused into a moment of silence, but then continued before the
outbreak of the next barrage of questions,
"If America has chosen this way of
life - living on debt and high above their means, some 5% of the world's
population is consuming almost 30% of the world’s resources, they may
consider that to be their privilege.
But it is not, since it has become a burden
for the rest of the world - and for our planet.
This way of life is quickly depleting the
Earth’s resources and destroying the environment by a boundless pillage
of unrenewable natural resources and wars."
And after a reflective pause, Mr. Putin added,
"And mind you, not even military action by
Washington - lest it be nuclear and suicidal - could stop this bloodless
strive for financial and economic justice and equality."
After scanning the audience, he continued,
"In addition, Washington imposes the dollar
as the world’s main reserve currency, and money of reference to be used
in international trade. As you may know, we the BRICS, as well as some
other countries, are already using our own currencies for commercial
exchanges and for dealing with commodities.
It would be unfair to expect the world to
rely on a sheer paper currency that has no backing - and eventually is
at the mercy of the United States, for example subject to inhuman
sanctions, like the people of Iran is currently suffering - and Iraq in
the 1990s. They can be sanctioned because their trading transactions are
We are seeking a fairer, freer world, in
which sovereign countries can live peacefully together without the
threat of subjugation for not following the dictate of a self-styled
Reality Check comment: Iran,
India, Pakistan and Vietnam are already moving in the right direction. Iran
is negotiating with India to trade its hydrocarbons in rubles and yuan.
Pakistan is moving towards dropping dollar-denominated trading with China.
India and Vietnam are progressively moving towards a close cooperation with
the Customs Union of Russia, Kazakhstan and Belarus in which all members are
strongly encouraged to drop the dollar in bilateral trade.
Mr. Putin looked around the room - into
wide-eyed and confused faces,
"And as far as gold is concerned, yes, you
are right. Gold is not in our basket. The value of gold is subject to
speculation and manipulation, mostly by Western nations.
The highly fluctuating value of gold is the
result of speculation, but foremost, the result of fear.
When world leaders, mostly westerners, are
afraid of their unchecked and wildly uncontrolled economies, they resort
to gold, as if gold would be a savior. But the rising value of gold is
but a thermometer for a sick economy. The intrinsic value of gold is
nothing more than its industrial value.
Putting gold into the basket would make the
basket, the new Bricso, vulnerable to those who will undoubtedly try to
speculate with gold, and maybe even revert to the gold standard to save
Those who are willing to follow the dollar,
perhaps under a newly created gold standard are welcome to do so. The
BRICS and its affiliated countries are not dependent on that market.
Our combined GDP is at least the size of
that of the US and much stronger, more solid - it’s based on real, hard
production - and what’s more - our countries account for almost 50% of
the world population - not a negligible market."
Reality Check comment: The current huge
gold reserves of the West are a direct result of their colonial past and
looting of poorer countries. Therefore the repartition of gold reserves has
nothing to do with economic strength of the country, only with its
proficiency in being a colonial powerhouse in the past. So, gold would be a
bad global "currency."
"And let me add one more caveat - while the
Western world sees hydrocarbons as the panacea for energy, their driver
for world domination - we know that hydrocarbons, petrol and gas, are
just a passing fashion. The future is in renewable sources of energy.
For example, the sun is an endless source of
energy. Through photo-synthesis it can potentially achieve up to 97%
efficiency of solar radiation, for which we will invest in research and
In the meantime, we also need to refine
Thorium reactors as an alternative to
traditional nuclear power - and investigate sources we are barely aware
of that they exist - all around us.
But we, the BRICS and those who will
associate with us, will put our economic resources into alternative and
renewable resources of energy. This will, at once, save the planet, and
save humanity from the dependence on those who control the oil."
Mr. Putin paused - his eyes scanning the room -
quiet, full of unasked questions and worried facial expressions.
He was compelled to continue, to quench the
thirst for more answers, more explanations, since a world that has been
living off instant gratification can hardly imagine a long-term solution to
saving humanity and the planet.
"The future is with viable alternative
energy sources and we’re working on creating radically cheap energy that
will allow us a higher standard of living and a drastically more
Our search for better and sustainable energy
is a long term proposition.
We mustn’t think about the next financial
quarter or election cycle, we must think about future generations and
start working today for the long term benefits of our children,
grandchildren - and their descendants, who have the same right to our
planet earth as we do."
"Tomorrow - or better yet, on January 2, 2014, because tomorrow is a
holiday in most of the Western world - we will see the first impact of
this economic revolution."
With these words Mr. Putin stepped away -
ignoring the ensuing volley of questions. His colleagues followed.
Reality Check comment: Such an
announcement hits the American economy, breaks the morale of the US vassals
around the world and it is likely to create a massive panic. The gist of the
BRICS’ message is clear:
this is the end of the world as we know it.
What will happen next? Share your thoughts in
the comments and read the next part of scenario tomorrow.
October 10, 2013
In the next 24 hours the media runs amok.
There was not much of a New Year’s celebration
in the Western Hemisphere. People were afraid. They were speculating what
may happen. Some planned a run on the banks to withdraw their money, though
not knowing what to do with it in a system that may collapse.
They couldn’t even convert their cash dollars
and euros into Bricsos, as the Bricso was to be only a virtual currency.
Some planned to convert their bank accounts into BRICS currencies. They
would be safe. Others continued to trust the dollar, the existing system, no
matter how defunct it was.
They figured Washington will again find a
solution to save them.
When the banks opened, 48 hours after the announcement, the western stock
markets literally collapsed. They had to be closed for an indefinite period
of time to salvage what hadn’t been wiped out yet and to consolidate and
control the damage.
Reality Check comment: Surely, the
President's Working Group on Financial Markets (aka “Plunge Protection
Team”) would intervene in the markets, but when everyone is trying to sell
their holdings no intervention can keep the markets afloat. The size of the
US financial markets (esp. financial derivatives markets) is in the hundreds
of trillions of dollars dwarfing the US gross national product. There is no
way to avert a collapse if the BRICS pull the rug from under the US market.
At the same time, there was indeed a run on the banks. Some wanted to
withdraw, others to convert their money.
The resulting chaos made the authorities close
the banks again. After ten days, people took to the streets. They had no
cash left to buy food and other necessities.
The banks opened again, first for a few hours
per day with strict withdrawal limits.
Reality Check comment: There is
nothing surreal or impossible in this scenario. Actually, we can speculate
that the US and EU banking systems have been preparing for a crisis of
similar magnitude. The European “bail in” banking regulations and the Cyprus
banking collapse are two examples of the West preparing for a generalized
After a month, as lines behind the counters got longer instead of subsiding,
some European governments considered, especially the weaker Eurozone
countries, to exit the Euro, revert to their former currencies and to
nationalize their banks.
This move would allow them to print their own
money, stimulate their local economy with a national banking system for
local production and internal consumption, thereby creating jobs - restoring
confidence in society.
Reality Check comment: In this
highly plausible scenario the IMF, European Commission and World Trade
Organization (WTO) would be powerless with their likely sanctions, such as
capital controls, international trade blockade, or a ‘financial marshal law’
to stabilize the illusionary ‘markets’ - simply because the markets would
indeed be illusionary, since those countries which decided to exit the Euro
and progress to local production for local consumptions have decided to get
rid of their corrupted leaders and chose their own way of recovery. See
Argentina after the 2001 collapse.
The US indeed ordered the IMF to re-introduce the gold standard at an
arbitrary rate of US$ 2,000 / oz. and with a ‘debt-equity’ ratio of 10:1,
meaning that a country’s outstanding debt or unmet obligations, as is the
case in the US, could be ten time higher than the gold coverage of its
circulating money mass.
To protect the interests of the dollar economy, the IMF in unison with the
BIS - Bank for International Settlement, the de facto central bank of
central banks, also the presumed largest gold depository of the Western
economy, introduced strict rules for countries that decided to follow the
new gold standard.
Quantitative Easing - QE - a euphemism for
printing money - was strictly controlled for the US dollar as well as for
The 10:1 ratio was not to be exceeded. Banks
were again divided between investment banks and the traditional commercial
banking, effectively bringing back the Glass-Steagall Act - that
Clinton declared ‘dead’ in 1998.
Reality Check comment: Basically,
in this scenario, the BRICS countries forced the US to swallow the bitter
pill of tough economic measures. Washington would have never accepted a
limit on their “printing rights” unless it was forced to. Somewhat
paradoxically, a brutal financial attack from the outside world may be
necessary to make the US go back to a saner form of economy.
The Gulf State oil producers rushed to convert their dollar reserves into
Bricsos - some into euros, as they didn’t trust the BRICS.
Of course, by the time the banks opened, the
dollar had already lost about two thirds of its value vis-à-vis the Euro and
the British Pound. The current loss from conversion into Bricsos would be
even higher, but who knows what will happen to the Euro.
Will the Eurozone stick together? Fall apart?
Chose different alliances - maybe migrating towards the BRICS system?
Six months down the road, Greece, Spain, Portugal, Italy and Ireland had
chosen to exit the Eurozone and to restart their economy with their local
currencies; some of them quietly seeking an alliance with the BRICS.
The Eastern European and Central Asian countries
which recently acquired Eurozone status were in a dilemma: they desperately
wanted to belong to the Western monetary system, but in trade they were
closer to Russia and China, key partners of the BRICS.
Their state of limbo would create internal
unrest - parts of the population still identified with the former Soviet
Union, others tried to stubbornly adhere to the dollar system, no matter how
defunct it was.
Reality Check comment: One
important consequence of this scenario is that political leaders around the
world will see that the change is possible. The mere sight of the BRICS’
actions should have a liberating effect on the mindset of national leaders
who grew accustomed to the idea that American economic hegemony is eternal
and invulnerable. In this scenario, the Eurozone breakup becomes almost
inevitable because the mechanisms of economic coercion employed by the
European Commission will be “jammed” by the ensuing crisis. Without firing a
single shot, the BRICS and their allies can start a chain reaction of
financial liberation in Europe and around the world.
Western stock markets had opened again a few months earlier, but were
trading cautiously, with firm limitations.
Speculative buying long or short was prohibited.
Stock market listed companies and corporations were carefully analyzed as to
the extent of their autonomy within the ‘Western markets’ - vs. dealing with
the BRICS market.
What was left of the globalized Western ‘market economy’ was limping along.
Many were in doubt whether they should remain faithful to a system that has
let them down. Some thought to diversify into the BRICS domain, as they saw
the long-term gains in a sounder and more just economy.
On the other hand, the BRICS and its two associate members, Iran and
Venezuela, recovered rapidly from the first shock, as their new strong
currency gave them a boost vis-à-vis the other half of the world economy
which was still teetering on the dollar with some backing of the Euro.
Reality Check comment: In this
scenario the BRICS would work hard to develop their internal market(s) in
order to compensate the reduction of demand from the decaying western
economies. Internal market development coupled with efforts to satisfy the
internal demand with internally produced goods has created a virtuous cycle
of sustainable economic development.
Within the first year, Indonesia and Malaysia joined the BRICS alliance.
The BRICS market grew almost exponentially, not
only in production and consumption, but also in research, especially for
alternative, renewable sources of energy - a policy promised by the BRICS
Presidents at their Press Conference in Paris on New Year’s Eve 2014.
Freedom from fossil fuels meant also political autonomy and a path towards
real democracy and well-being.
Food self-sufficiency for the BRICS and their
allies will be achieved from day one. The West won’t be able to jack up the
prices for food commodities (markets crashed, lack of speculative capital).
This will reduce the price of food worldwide. At
the same time, the people in the West won’t be able to consume as much as
they did before 2014, making the food available to the whole non-western
world at bargain prices.
Reality Check comment: This
scenario creates the perfect environment for a “BRICS Renaissance” or
“reverse brain-drain”. For decades, the West has bought off the smartest and
the best educated from around the world. In this scenario, the process has
been reversed. Within the first year scientists began flocking to the
banners of BRICS research institutions.
The new BRICS system became increasingly attractive even for those still
adhering to the traditional, gold revamped ‘dollar-euro economy’.
As more of the richer, more prestigious - and
remaining - Euro countries, Germany, France, The Netherlands, Finland,
Sweden, Denmark - saw the benefits of trading with the BRICS system, the
Euro became gradually a constant in trading with the BRICS market.
By early 2015, negotiations began to make the Euro part of the Bricso
Reality Check comment: Hard
feelings between politicians can’t cancel objective economic needs.
Europeans needed to sell their exports to the BRICS countries and needed to
buy the hydrocarbons - while waiting for viable renewable energies to become
marketable. Eventually, they got used with the new system even if they
didn’t like it.
At the beginning of 2015 the Shanghai Oil Bourse was in full bloom. It
traded trillions of Bricsos, not only from BRICS and associate countries,
but from all over the world.
Hydrocarbon producers realized that the Bricso
was a stable currency, offering more long-term security then dealing in
dollars. Hydrocarbon trading in dollars gradually subsided.
In addition, the SOB member countries agreed on levying an energy tax - one
per-mil (0.1%) of the daily volume of trade - to fund research and
investments for alternative renewable energies.
Reality Check comment: Besides
providing a steady stream of financing for energy related research, such a
tax is a wonderful damper for excessive volatility. In the West, financial
oligarchy has always blocked any attempt to introduce a “transaction tax” or
a “Tobin tax” on financial transactions. BRICS countries have the luxury to
introduce financial safety measures that are impossible in the countries
controlled by financial parasites.
The exchange rate of the gold-backed dollar tended to fluctuate
Gold as the backbone of the dollar based Western
economy was vulnerable to speculation. Even though the exchange rate to the
dollar and associated currencies was fixed, speculative fluctuations
influenced the conversion rates of the gold-dependent currencies -
demonstrating the psychological factor of instability.
Nobody was really sure if and when the IMF would
decide on another gold-dollar parity rate. This could happen any time, since
the IMF was still a mere extension of the US Treasury.
Reality Check comment: This is a
very important aspect that most of the “gold bugs” get wrong. The return of
the gold standard doesn’t mean that the existing financial oligarchy will
lose its grip on the American and European financial systems. The method of
control may require adjustment but nothing will change if the whole
financial infrastructure (i.e. the banks, the clearing houses, the
exchanges) remains under the control of the same old financial clique. The
gold standard per se is not a “silver bullet” for the global economic
problems. A deeper reform is a needed.
The artificially inflated speculative value of gold was gradually falling
towards its real intrinsic value.
It still may take a while until the value of
gold - which cannot be eaten in times of crisis - would end up at its mere
industrial value. Gold has had a long-lasting tradition and thousands of
years of history as one of the most precious metals, measuring the wealth of
kings and czars.
It will take a new way of thinking, new
generations, to realize that what really counts are not primarily material
values but cooperation, solidarity and peace among people. Material values
always tend to interfere with these sustainable human values.
On the other hand, the Bricso had by now, early 2015, the solid backing of 9
nations, the economies of the five BRICS, plus those of Iran, Venezuela,
Indonesia and Malaysia. Mongolia, with a fast growing economy - about 10%
per year - was also envisaging coming closer to the BRICS.
Reality Check comment: In a
contest between a gold standard and a properly managed fiat standard, the
fiat monetary system will win because few people will agree to replace the
banking clique with a clique of the world’s biggest mining companies.
As more countries tended to trade in Bricsos, the currency gained in
strength. It became a solid reserve and reference currency for many non-BRICS
The energy tax was popular and its use
transparent. It was a trend-setter for a different way of thinking. From
2015 / 2016 forward, protection of the environment and a life more
integrated into nature with more social justice, using what nature had to
offer without destroying it, became increasingly ingrained in the minds of
These concepts were also reflected in teachings
Reality Check comment: The main
change achieved through this financial and economic maneuvering is a
“paradigm switch”. The world’s economy must embrace the ideology of
“innovation without financialization”. The current economic structure has an
unnatural tilt or bias towards financial markets that tend to dominate over
the traditional industrial economy and agricultural economics. Boosting
innovation and curbing financialization is the key to a stable, sustainable
and equitable economy.
From about 2020 onwards a shift from material to human life values
A healthy environment, protection of species and
resources became progressively important. A solid education and health
services for all became important. The value of economies was no longer just
linear, material and measurable growth - the old GDP - but included also -
and to an ever-growing degree - values of well-being, such as capability of
conflict resolution and living in harmony with each other and the
What the BRICS had started in 2014 was perhaps a utopia - a new monetary and
economic system, detached from wars and conflicts for greed, striving for
peace and equality.
There was no way to predict its outcome - other
than faith that with political will the utopia might succeed.