Considering it costs an amazing amount to ship anything now days, China and Russia are finding new ways to incorporate their resources together along with there economies. Despite international sanctions that would prevent China from doing the immense trading with Russia and Iran that have been taking place, China and other counties don’t seem to care at all even with accusations of a ‘double dip’ sanctions violation and many more. For years, China has developed a strategic deep water port at Gwadar, on the Arabian Sea, the launching point for the Iran-Pakistan natural gas pipeline that will be extended to China. Originally it would have run though India and Pakistan and India but the US detoured India from joining in and submitted a counter offer backed by the US instead of China trying to cut out Pakistan and China all together, having the port in Iran not far from Gwadar. India being a US ally felt pressure from the US when asked not to propose this, or decide until or IF the Nuclear deal with Iran was signed. The Persian section of the new pipeline has already been built. The pipeline will go though Karakoram Mountain Highway towards Tibet, and cross the western border to Xinjang. This highway will be widened and modernized big enough for military use and a railway connecting the highway to Gwadar. The new Silk Road seems to make no sense economically to many people. However, most of us are not the bankers or CEO’s emerging together in support of the grand scale trade route... One thing is certain the US is not pleased with the idea and feels that it will fail for many reasons one being due to the dangers that lie in Pakistan along the Old Silk Road. Some of the most deadly tribes reside along the terrain that is said to be formation for the new Silk Road. As more information unfolds regarding China and Chinese President, Xi Jinping expressing its unwillingness to sign on to the Trans Pacific Partnership. While isolating the US from its arraignments with Pakistan India and Russia and most of all the Asian Infrastructure Investment Bank that the US unsuccessfully tried to detour other counties form joining and has now shifted in stating that the US has always supported the project even after stating that if counties join (especially NATO counties, and twelve did) it would be a direct act of war against the US. Fifty-eight nations have signed on as charter bank members, minus the US, Japan and North Korea. Even with the retracted threats the US gave. It may be true indeed that this will be much harder than anticipated for Russia and China considering the New Silk Road Partners will have to raise Capital in Part by Issuing AIIB / Eurasia Zone / ECB and Sovereign BONDS. Between the bond bubble and the rarity, even the ability to even get\ Sovereign Bonds to work in places where corruption, regime change, and anarchy are rather rampant. Many say the US will still be needed to complete the project the technology and security and political barriers that the US can influence and has power over will be invaluable. The New Silk Road from China to Russia would pass through Bulgaria, Romania, and the Ukraine and many of the sanctions put on Russia by the US and the UK prevented funding for such a project. I believe that when Putin decided to invest bin mass amounts of gold instead of defending the Ruble during this time he could have used all that Ore to fund his plan enticing China even more... War is inevitable; Washington’s empire of paper debt and unrealistic plan the FED has to raise the banker’s overnight lending rate that would collapse the entirety of our bond market. Since the US is the power empire and the Navy is considered the most effective means of defense. We should see mass destabilization of these governments or some kind war, bomb, or crazy despise the US has to see what China is doing creating a centrally planned politico-military effort that would circumvent an unbreakable US naval blockade. There has to be more! The US is way too sneaky for this all to just slide though. Perhaps… The US will start a war in the Middle East necessary we are funded by controlled chaos. Peace is the worst thing that can happen for the US, considering we sell a mass amount of weapons for billions of dollars to many counties in the conflict. Therefore, any ties portrayed by media and government that the US may have with Iran are a moot point. We may have none. The only outcome I can see is the Yuan going back to the gold standard and having gold be so expensive and valuable. The Federal Reserve would collapse, as they nationalize a new currency
yes, that is how Rickards see's it playing out. China and Russia trade in gold between themselves. "Currency Wars" on amazon. I've seen him on tv a few times and he seems to be a goldbug. Not my cup of tea.
I mean it is nice and it is shiny and women like it, but I am looking for something a little more substantial to build a plow, like iron
Thank you for that nice and detailed account. Whiale I can't quite agree with some of your assessment. it is very nice to hear counter opinions and details of what is going on in the Russian-Chinese sphere of influence. Thank you again.