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News & Analysis.


RMB sword about to pierce the dollar’s heart in Syria!  Part 3

8/1/2017

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Secondly, China has a high capacity for building infrastructure. In Iran a lot of domestic oil field extraction and oil refinery equipment is currently supplied by China, and if in the future the Shiite pipeline is built, the projects in Iran and Iraq will have to be executed in part by China. The most critical part is the pipeline construction in Syria. In March 2017 Assad said that after the war, Syria would allow China, Russia and Iran to participate in the reconstruction; China was allowed to participate in the reconstruction in all areas of Syria. Since the infrastructure capacities of Russia and Iran are not strong, this is equivalent to all of Syrian reconstruction being awarded to China. Now, China can enter telecommunications, electricity and other areas in the future, and the oil pipeline will naturally fall into the hands of China. Recently, in the smoke and rubble of the northern city of Aleppo the Silk Road market has been built (NSS: see http://sana.sy/en/?p=103861). China's restoration for the Syrian reconstruction has brought hope.
 
Thirdly, Iran has already used the RMB to settle oil exports, while Saudi Arabia, the United Arab Emirates and Turkey have also achieved direct trade with the RMB, and Qatar, the co-owner of the Pars oil and gas field, has established a RMB clearing center.[5]

In the future, with the victory of China in Syria, both the Sunnis and the Shiites will transfer their interests to China. And even Qatar will invite China to participate in the North Pars oil and gas field mining, will contribute to the petroyuan to a higher level.

Sidebar:
Working in cooperation with Beijing, Putin meets with the Emir of Qatar in early February 2016.
https://sputniknews.com/politics/201602221035159378-putin-qatar-emir-syria/
https://www.youtube.com/watch?v=hP-9XupoIJM 
 
Fourthly, once China and Russia have secured Syria, European natural gas prices will be calculated by the Chinese and Russians, and European energy prices will increase, easing the deflation risk for the European economy. Then the probability of the European Central Bank abandoning quantitative easing will become high. Indeed, Merkel and several European officials have said that the EU’s future withdrawal from quantitative easing will be a necessary event.
Once Europe and China are no longer subjected to the sabotage, the US financial bubble cannot be passed on. The United States will be forced to re-open a new round of quantitative easing; this view has been repeatedly discussed before in our forum. Recently, the US Federal Reserve Chairman of the Federal Reserve on May 19 said the United States does not exclude the possibility of continued QE printing in the future.[6] This is the EU-China economic recovery squeezed into the Federal Reserve monetary policy space. The trick of interest rate hikes will not work, and the only option left is printing money. The Fed is already broke.

So with all this benefit to China, do not Russia and Iran benefit as well? In fact, Russia has achieved an energy breakthrough with the Assad government. Iran has won Europe over with energy. In the future, the sanctions imposed by the West against the two countries will cause a further split. The world market shares of Russia and Iranian oil will be further expanded by the oil pipeline. The share of the RMB in the Middle East oil settlement area will also expand accordingly. Russia and Iran cannot achieve currency hegemony, they are well aware that attaining monetary hegemony requires at least two conditions, i.e., having the world's largest trade share and a cross-border currency settlement system. Iran and Russia do not meet these conditions, so the biggest winner of this battle is China. China's involvement in this Syrian dispute is actually of greatest benefit to China. But others can also partake in the Chinese profits. It’s win-win.

The expansion of the petroyuan in the Middle East, the corresponding decline in the share of the petrodollar, and the decline in the share of petrodollars will reduce the dollar in global market circulation. Declining circulation of the USD means that United States can plunder less profits from other countries and has less influence to weaken the monetary policies of other countries.

The rise and expansion of the RMB will, in the long term, end the US financial colonial empire. In this sense, the RMB war has been aimed at the heart of the dollar, the victory of the Syrian war will become a monument to the rise of China.

At present, the situation in Syria is trending in favor of China and Russia, and since China sent military advisers to Syria last year, the war tactics of the Russian-Syrian coalition have undergone major changes.[7] In the liberation of Aleppo, Homs and Palmyra, elite forces (Tiger forces, Lebanese Hezbollah) were often used, which – interspersed deep behind enemy lines, after being surrounded by the enemy in a concentration of superior force, annihilated the enemy. They interspersed with terrorists and opposition forces and drove on to destroy the enemy. The following figure is a map of the Syrian battlefield layout. The red areas are the government army creating a number of interspersed surrounded tactical "traces."

​In the Syrian war, the battle for Aleppo was a true turning point -- like the Battle of Stalingrad that year -- via the battle of the Sino-Russian coalition forces to eliminate the terrorist elite, with combatants decimating terrorists and thereby shrinking the front. Battle of the Battle and the manufacture of anti-government armed and terrorist organizations within the contradictions, leading to fire and continue to happen. After the occupation of Aleppo, the Russian Syrian army elite was transferred to other battlefields. After six months of troops to rest, coupled with the end of the training of recruits into the battlefield, the more the government army fights, the braver it gets. At present, most of the western part of Syria is falling into the hands of the government troops. The victory in Aleppo forced the United States to choose to support the Kurdish militias, leading to a serious shake-up in the position of Turkey, which has sided with China and Russia.

The United States is currently attacking Raqqa in the Syrian- and Saudi Arabia-led Arab coalition; the United States plans to allow the Arab army to occupy Raqqa and deploy the strong Kurdish fighting force to the south to seize Deir ez-Zor and prevent the government from fully opening the Syrian border. When the Kurds are in the south, Turkey is bound to attack the Kurdish militias, which will be extremely unfavorable to the United States. But the United States cannot completely turn against Turkey at this time, so in the future, the US will be more of a barrier between Turkey and the Kurds, with the US military protecting the Kurds.
The net effect is that the United States is being led by the nose throughout the battlefield, blocked in the north by Turkey and skewered in the South by the Syrian government forces, strategically trapped in a passive state.

The Aleppo battle has changed the entire Syrian battlefield ecology, which is by now beyond human endurance. This is not the first time the US military has acted in an advisory capacity, providing training to a country, and in order to reverse the entire battlefield situation, the US military has a lot of homework to do.

End of article, end of translation

[5] NSS: see http://www.reuters.com/article/stanchart-frx-idUSL8N1C544O. By using the RMB in trade, Saudi Arabia has already violated its part of the petrodollar agreement concluded between Richard Nixon and King Faisal in the early 70s. This suggests that SA – the very country the US has depended on since then to prop up the dollar – no longer trusts in the US’s ability to maintain a strong dollar.

[6]NSS-supplied link: https://www.usnews.com/news/articles/2017-05-19/federal-reserves-james-bullard-interest-rate-expectations-may-be-overly-aggressive. We could not find any report that Bullard had mentioned a possible renewed QE, although his data may suggest this.

[7] NSS comments, links: http://www.telegraph.co.uk/news/2016/08/18/china-steps-up-military-cooperation-with-assad-as-top-admiral-vi/. Russian foreign minister Sergey Lavrov confirmed around the same time that Russia also had sent military advisers to Syria: http://www.dailymail.co.uk/news/article-3229223/Just-Russia-sending-Syria-Moscow-admits-delivering-military-supplies-Assad-dodges-claims-Putin-deploying-extra-ground-troops.html. Iran started sending military advisers around the same time, and also troops that did much of the ground fighting: http://www.trtworld.com/mea/iran-sends-more-military-advisers-to-syria-10165. Therefore one is tempted to suspect this author may be claiming more than China’s share of the credit for the improved outcomes on the battlefield.
 
After reading this, many of the things that US officials have said in the past about Syria seem so odd and the predictions are out of keeping with what actually happened later. For example, John Kerry once said:

“If Assad’s strategy is to somehow think he’s going to just carve out Aleppo and carve out a section of the country, I got news for you and for him: this war doesn’t end.”

Yet Aleppo is now firmly in the hands of the legitimately elected president of Syria. As our above translation of the Chinese military’s article shows, the US no longer dictates what happens in the rest of the world.

It was also predicted predicted that the US would change the course of the Syrian war by sending sophisticated weapons to the “rebels” there:

“The US confirmed the green light to begin sending them to rebels through supply routes still open through Jordan and Turkey […] Rebels are being told only to target Syrian helicopters, not Russian – but it’s not clear they will abide by this. The US won’t let Aleppo fall. We can expect to see Syrian helicopters falling from the sky within weeks.” [Emphasis added]

And John Kirby, speaking for the US administration, said:

“Unless Russia ‘stops the violence’ in Syria, extremists would ‘exploit the vacuum’ to attack Russian interests and even cities, the US State Department has said.”

The US media and political class often spoke of the bombing of Aleppo as the epitome of violence. Yet Airwars has reported that US-led airstrikes have similarly indiscriminately killed thousands of civilians in Mosul and elsewhere. Amnesty International is calling these attacks a war crime.

This video illustrates.
​
Related
https://geopolitics.co/2017/04/11/cia-pushed-oust-assad-family-doctrine-across-6-us-presidents/
http://www.politico.com/magazine/story/2016/02/rfk-jr-why-arabs-dont-trust-america-213601
https://shadowproof.com/2016/09/30/next-cold-war-roundup-93016/
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