Tag Archives: Coup d’état

Washington Tries to Break BRICS —Rape of Brazil Begins

 

Brazil, August 2016: Another US-Coup d’état organized by its Washington rogue régime: It was about setting up the new US-vassal Brazilian President: Michel Temer (done) and “privatize” aka steal Brazil state’s owned assets (oil, water, electricity belonging to the Brazilian people) for the benefit of the Wall Street and London City bankster cabal: More of the same as the ongoing Washington coup-d’état campaign-spree goes on.

This article was written by F. William Engdahl exclusively for the online magazine  New Eastern Outlook under the title:  Washington tries to break BRICS —Rape of Brazil Begins

“Washington’s regime change machinery has for the time being succeeded in removing an important link in the alliance of large emerging nations by railroading through a Senate impeachment of the duly elected President [Washington’s new color revolution aka coup d’état],  Dilma Rousseff. On August 31 her Vice President Michel Temer was sworn in as President. In his first speech as president, the cynical Temer called for a government of ‘national salvation,’ asking for the trust of the Brazilian people. He indicated plans to reform, and has also signaled his intention to overhaul the pension system and labor laws, and cut public spending, all themes beloved of Wall Street banks, of the International Monetary Fund and their Washington Consensus. Now after less than three weeks at the job, Michel Temer has unveiled plans for wholesale privatization of Brazil’s crown jewels, starting with oil. The planned Wall Street rape of Brazil is about to begin (emphasis throughtout: Geopoliticalnews.)

It’s important to keep in mind that elected President Rousseff was not convicted or even formally charged with any concrete act of corruption, even though the pro-oligarchy mainstream Brazil media, led by O’Globo Group of the billionaire Roberto Irineu Marinho, ran a media defamation campaign creating the basis to railroad Dilma Rousseff into formal impeachment before the Senate. The shift took place after the opposition PMDB [Brazilian Democratic Movement Party] party of Temer on March 29 broke their coalition with Rousseff’s Workers’ Party, as accusations of Petrobras-linked corruption were made against Dilma Rousseff and former president Luiz Inácio Lula da Silva.

On August 31, 61 Senators voted to remove her while 20 voted against removal. The formal charge was ‘manipulation of the state budget’ before the 2014 elections to hide the size of the deficit. She vehemently denies the charge. Indeed, the Senate issued its own expert report that concluded there was ‘no indication of direct or indirect action by Dilma’ in any illegal budgetary maneuvers. According to the Associated Press, ‘Independent auditors hired by Brazil’s Senate said in a report released Monday that suspended President Dilma Rousseff didn’t engage in the creative accounting she was charged with at her impeachment trial.’ Under an honest system that would have ended the impeachment then and there. Not in Brazil.

In effect, she was impeached for the dramatic decline in the Brazilian economy, a decline deliberately pushed along as US credit rating agencies downgraded Brazilian debt, and international and mainstream Brazilian media kept the Petrobras corruption allegations in the spotlight. Importantly, the Senate did not ban her from office for 8 years as Washington had hoped, and she has promised an electoral return. The Washington —steered Michel Temer has until end of 2018 to deliver Brazil to Temer‘s foreign masters before his term legally ends.

Notably, Temer himself was accused of corruption in the Petrobras state oil company investigations. He reportedly asked the then-head of the transportation unit of Petróleo Brasileiro SA in 2012 to arrange illegal campaign contributions to Temer’s party which was running a Washington-backed campaign to oust Rousseff’s Workers’ Party. Then this June, only days into his serving as acting president, two of Temer’s own chosen ministers, including the Minister of Transparency, were forced to resign in response to allegations that they sought to subvert the probe into massive graft at Petrobras.

One of the two, Temer’s extremely close ally Romero Jucá, was caught on tape plotting Dilma’s impeachment as a way to shut down the ongoing Petrobras corruption investigation, as well as indicating that Brazil’s military, the media, and the courts were all participants in the impeachment plotting.

In brief, the removal of Dilma Rousseff and her Workers’ Party after 13 years in Brazil’s leadership was a new form of Color Revolution from Washington [same neocon procedure as ususal,] one we might call a judicial coup by corrupt judges and congressmen. Of the 594 members of the Congress, as the Toronto Globe and Mail reported, ‘318 are under investigation or face charges’ while their target, President Rousseff, ‘herself faces no allegation of financial impropriety.’

The day after the first Lower House impeachment vote in April, a leading member of Temer’s PSDP party, Senator Aloysio Nunes, went to Washington, in a mission organized by former Bill Clinton Secretary of State Madeline Albright’s lobbying firm, Albright Stonebridge Group. Nunes, as president of the Brazilian Senate’s Foreign Relations Committee, has repeatedly advocated that Brazil once again move closer to an alliance with the US and UK.

Madeline Albright, a Director of the leading US [neocon] think-tank, Council on Foreign Relations, is also chair of the prime US Government “Color Revolution” NGO, the National Democratic Institute (NDI). Nothing fishy here, or? Nunes reportedly went to Washington to rally backing for Temer and the unfolding judicial coup against Rousseff.

A key player from the side of Washington, Rousseff’s de facto political executioner, was, once again, Vice President Joe Biden, the ‘Dick Cheney’ dirty operator-in-chief in the Obama Administration.

Biden’s fateful Brazil trip

In May, 2013, US Vice President Joe Biden made a fateful visit to Brazil to meet with President Rousseff. In January 2011 Rousseff had succeeded her Workers’ Party mentor, Luis Inacio Lula da Silva, or Lula, who constitutionally was limited to two consecutive terms. Biden went to Brazil to discuss oil with the new President. Relations between Lula and Washington had chilled as Lula backed Iran against US sanctions and came economically closer to China.

__geopolitics_p_brazil_oil_iara-oil-filed-santos-basin_02In late 2007 Petrobras had discovered what was estimated to be a mammoth new basin of high-quality oil on the Brazilian Continental Shelf offshore in the Santos Basin. In total the Brazil Continental Shelf could contain over 100 billion barrels of oil, transforming the country into a major world oil and gas power, something Exxon and Chevron, the US oil giants wanted to control.”

In an article published in May this year,  U.S. corporations target Brazil’s oil industry, German Economy News (Deutsche Wirtschaftsnachrichten) reported: “Brazilian President Dilma Rousseff is nearing impeachment. Brazilian politicians have contacted influential US senators in Washington. They are hoping for an alliance. The U.S. corporations want to gain influence on the Brazilian oil sector.” Doesn’t this remind us of Iraq, Egypt, Libya, Ukraine and Yemen? A familiar six-step U.S.-takeover isn’t it? 

  1. Activate U.S.-NGOs on the ground
  2. Promote your “liberation” message via social media channels: Twitter and Facebook
  3. Don’t forget your flash-mobs (think of Cologne 2015 Newyear’s eve)
  4. Ad a touch of local “liberating” terrorism
  5. Enhance, if not sufficient, with Academi hired mercenaries (Kiev Maidan vintage)

Bravo! You’ve just created your perfect color revolution and/or coup d’état. You now may replace the local leadership with your “democratically re-elected” pro-Washington neocon goons! Do not forget to round off your “democratization undertaking” with ongoing and sufficient main stream media propaganda (Geopoliticalnews.)

 

__geopolitics_p_brazil_oil_iara-oil-filed-santos-basin_01Engdhal goes on to write: “In 2009, according to leaked US diplomatic cables published by Wikileaks, the US Consulate in Rio wrote that Exxon and Chevron were trying in vain to alter a law advanced by Rousseff’s mentor and predecessor in her Brazilian Workers’ Party , President Luis Inacio Lula da Silva. That 2009 law made the state-owned Petrobras chief operator of all offshore oil blocs. Washington and the US oil giants were not at all pleased at losing control over potentially the largest new world oil discovery in decades.

Lula had not only pushed ExxonMobil and Chevron out of the controlling position in favor of the state-owned Petrobras, but he also opened Brazilian oil exploration to the Chinese, since 2009 a core member of the BRICS developing nations with Brazil, Russia, India and South Africa.

In December, 2010 in one of his last acts as President, Lula oversaw signing of a deal between the Brazilian-Spanish energy company Repsol and China’s state-owned Sinopec. Sinopec formed a joint venture, Repsol Sinopec Brasil, investing more than $7.1 billion towards Repsol Brazil. Already in 2005 Lula had approved formation of Sinopec International Petroleum Service of Brazil Ltd as part of a new strategic alliance between China and Brazil.

In 2012 in a joint exploration drilling, Repsol Sinopec Brasil, Norway’s Statoil and Petrobras made a major new discovery in Pão de Açúcar, the third in block BM-C-33, which includes the Seat and Gávea, the latter one of the world’s 10 largest discoveries in 2011. USA and British oil majors were nowhere to be seen.

Biden’s task was to sound out Lula’s successor, Rousseff, about reversing that exclusion of US major oil companies in favor of the Chinese. Biden also met with leading energy companies in Brazil including Petrobras.

While little was publicly said, Rousseff refused to reverse the 2009 oil law in a way that would be suitable to Biden, Washington and US oil majors. Days after Biden’s visit came the Snowden NSA revelations that the US had also spied on Rousseff and top officials of Petrobras. She was livid and denounced the Obama Administration that September before the UN General Assembly for violating international law. She cancelled a planned Washington visit in protest. After that, US-Brazil relations took a dive.

After his May 2013 talks with Rousseff, Biden clearly gave her the kiss of death.

Before Biden’s May 2013 visit Dilma Rousseff had 70% of popularity rating. Less than two weeks after Biden left Brazil, nationwide protests by a very well-organized group called Movimento Passe Livre, over a nominal 10 cent bus fare increase, brought the country virtually to a halt and turned very violent. The protests bore the hallmark of typical “Color Revolution” or Twitter social media destabilizations that seem to follow Biden wherever he makes a presence. Within weeks Rousseff’s popularity plummeted to 30%.

Washington had clearly sent a signal that Rousseff had to change course or face serious problems. The Washington regime change machine, including its entire array of financial warfare operations ranging from a leaked PwC audit of Petrobras to Wall Street credit rating agency Standard & Poors’ downgrade of Brazil public debt to junk in September 2015, went into full action to remove Rousseff, a key backer of the BRICS New Development Bank and of an independent national development strategy for Brazil.

Selling the Crown Jewels

The man who has now manipulated himself into the Presidency, the corrupt Michel Temer, worked as an informer for Washington the entire time. In documents released by Wikileaks, it was revealed that Temer was an informant to US intelligence since at least 2006, via telegrams to the US embassy in Brazil classified by the Embassy as “sensitive” and “for official use only.”

Washington’s man in Brazil, Temer, has lost no time appeasing his patrons in Wall Street. Even as acting President this May, Temer named Henrique Meirelles as Minister of Finance and Social Security. Meirelles, a Harvard-educated former President of the Brazilian central bank, was President of BankBoston in the USA until 1999, and was with that bank in 1985 when it was found guilty of failing to report $1.2 billion in illegal cash transfers with Swiss banksMeirelles is now overseeing the planned selloff of Brazil’s “crown jewels” to international investors, a move that is intended to gravely undercut the power of the state in the economy. Another of Temer’s key economic advisers is Paulo Leme, former IMF economist and now Goldman Sachs Managing Director of Emerging Markets ResearchWall Street is in the middle of the Temer-led economic rape of Brazil (emphasis throughout Geopoliticalnews.)

On September 13, Temer’s government unveiled a massive privatization program with the cynically misleading comment, ‘It is clear the public sector cannot move forward alone on these projects. We are counting on the private sector.’ He omitted to say the private sector he meant were his patrons.

Temer unveiled plans that would complete the country’s largest privatization in decades. Conveniently, the process us to be completed by end of 2018, just before Temer’s term must end. The influential US-Brazil Business Council detailed the privatization list on its website. The US-Brazil Business Council was founded forty years ago by Citigroup, Monsanto, Coca-Cola, Dow Chemicals and other US multinationals.

Tenders for the first round of concessions will be issued before the end of this year. They will include privatization of four airports and two port terminals, all auctioned in the first quarter of 2017. Other concessions include five highways, one rail line, bidding on small oil blocks and a later round for large, mainly offshore, oil development blocks. As well the government will sell selected assets currently controlled by its Minerals Research Department plus six electric power distributors and three water treatment facilities.

The heart of his planned privatization are, not surprisingly, Joe Biden’s coveted state oil and gas companies along with chunks of the state Eletrobrás power company. Temer plans to get as much as $24 billion from the selloff. Fully $11 billion of the total are to come from sale of key oil and gas state holdings. Of course, when state assets such as huge oil and gas resources are sold off to foreign interests in what will clearly be a distress sale, it is a one-off deal. State oil and gas or electric power projects generate a continuing revenue stream many times any one-off privatization gainsBrazil’s economy is the ultimate loser in such privatization. Wall Street banks and multinationals are of course, as planned, the winner.

On September 19-21, according to the US-Brazil Business Council website, the Brazilian government’s key ministers for infrastructure including Minister Moreira Franco; Minister Fernando Bezerra Coelho Filho, Minister of Mines and Energy; and Minister Mauricio Quintella Lessa, Minister of Transport, Ports and Civil Aviation, will be in New York City to meet with Wall Street ‘infrastructure investors.’

This is Washington’s way, the way of the Wall Street Gods of Money, as I title one of my books. First, destroy any national leadership intent on genuine national development such as Dilma Rousseff. Replace them with a vassal regime willing to do anything for money, including selling the crown jewels of their own nation as people like Anatoli Chubais did in Russia in the 1990’s under Boris Yeltsin’s ‘shock therapy.’ As reward for his behavior, Chubais today sits on the advisory board of JP MorganChase. What will Temer and associates get for their efforts remains to be seen. Washington for now has broken one of the BRICS that ultimately threaten her global hegemony. It is not likely to bring any lasting success if recent history is any guide.”

F. William Engdahl

F. William Engdahl is strategic risk consultant and lecturer, he holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics, exclusively for the online magazine “New Eastern Outlook.”
http://journal-neo.org/2016/09/24/washington-tries-to-break-brics-rape-of-brazil-begins/

Additional Reading:

  • U.S. Exceptionalism and U.S. Global Terror Management Strategy (Part One)
  • U.S. Exceptionalism and U.S. Global Terror Management Strategy (Part Two)
  • U.S. Exceptionalism and U.S. Global Terror Management Strategy | September 11th 2001 and the Rise of U.S. Neocons (Part Three)
  • U.S. Exceptionalism and U.S. Global Terror Management Strategy | Preemptive Strike & Neocons Mainstream Media Propaganda (Part Four)
  • U.S. Exceptionalism and U.S. Global Terror Management Strategy | Oligarchy and Neocons Destructive Agenda (Part Five)
  • U.S. Exceptionalism and U.S. Global Terror Management Strategy | Oligarchy and Neocons Destructive Agenda (Part Six: coming soon)
  • U.S. Exceptionalism and U.S. Global Terror Management Strategy | U.S.-NATO Serbian Genocide (Part Seven: planned)
  • U.S. Exceptionalism and U.S. Global Terror Management Strategy | Iraq the War for Oil and Control of the Middle East (Part Eight: planned)
  • U.S. Exceptionalism and U.S. Global Terror Management Strategy | Iraq the War for OIL and Control of the Middle East (Part Nine: planned)
Advertisements

Leave a comment

Filed under Academi, BRICS, Central Banking, Color Revolution, Corruption, Coup d'état, Facebook, Fascism, Germany, IMF, Neo Con, Social Media, Twitter, USA

China is Preparing the Gold Alternative to the U.S. Dollar-System

This article is an English translation of Frederick William Engdahl‘s article which first appeared on the Kopp Verlag blog under the German title: China bereitet Goldalternative zum Dollar-System-vor.

Current Chairman of the G20 group of nations China has invited France, among others, to organize a special conference in Paris. The fact that such a conference has taken place in an OECD country, is an indication of how weak the supremacy of the U.S.-dominated Dollar-system has already become.

Clipboard_Image 029On the 31 of March 2016, a special meeting with the name “Nanjing II” took place in Paris. In attendance was the Governor of the Central Bank of China, Zhou Xiaochuan. He gave a detailed presentation about the broader use of SDR or Special Drawing Rights of the International Monetary Fund (IMF), a basket of five major world currencies.

Only a very few priviledged guests were invited. These included German Finance Minister Wolfgang Schäuble, the British Chancellor of the Exchequer George Osborne and the IMF chief Christine Lagarde. They discussed with China the world financial architecture. What was striking and significant is the fact that not a single high-ranking US official participated.

Bloomberg reported about the Paris talks: “China aims to achieve a much stricter management system, in which private sector decisions are to be made by governments” said Edwin Truman, a former official of the Federal Reserve and the U.S. Treasury. “The French have always advocated an international monetary reform. Consequently they are china’s first choice ally.”

A China Youth Daily (China Youth) newspaper journalist, who was also in Paris said: “Zhou Xiaochuan pointed out that the international monetary and financial system, presently undergoing a structural adjustment, will cause many challenges for the world economy” . . . According Journalist Zhou, “China’s goal, as the current chairman of the G20 talks, is to promote a much wider use of the SDR.”

 Clipboard_Image 030Source: imf.org

For most of us this sounds as exciting as watching grass grow in the prairies. But behind this seemingly insignificant technical request, the overarching Chinese strategy turns out to be more and more the removal of the U.S. Dollar from its dominant role as a reserve currency of the world’s central banks.

China and others want to put an end to the tyranny of the bankrupt U.S. Dollar-system. This system has made it possible to finance countless wars with funds borrowed from other countries that have never been paid back. The strategy boils down to end the dominance of the U.S. Dollar as the currency for most of the world traded goods and services: This is no small matter!

Despite the U.S. economy being a wreck and Washington’s astronomical national debt of 19 trillion U.S. Dollars, up to 64 percent of all central bank reserves are still held in U.S. Dollars. The largest holder of U.S. Dollar debt is China, followed closely by Japan. As long as the U.S. Dollar is the “reserve currency”, Washington can accumulate endless deficits, knowing that countries like China have no serious alternative but to invest their foreign exchange profits into U.S. government bonds or government-guaranteed loans.

As I often pointed out, this in fact means that “China is de facto financing the Washington military campaigns,” which is in complete contradiction with Chinese or Russian interests, “as well as the numerous U.S. State Department color revolutions from Tibet to Hong Kong, Libya to the Ukraine or IS [ISIS, ISIL, Al Qaeda] in the Middle East,” and the list goes on and on…

A world made of many currencies

As we take a closer look at all the steps the Beijing government has taken since the 2008 global financial crisis – in particular the establishment of the Asian Infrastructure Investment Bank [AIIB], the New Development Bank [NDB] of the BRICS (Brazil, Russia, India, China and South Africa), and the bilateral agreement with Russia on energy supplies settled in domestic currencies thus bypassing the U.S. Dollar – it becomes clear that Zhou and Beijing’s leadership are pursuing a long-term strategy.

As British economist David Marsh pointed out regarding Zhou’s comments at the recent Nanjing II meeting in Paris, “China is pragmatically and steadily establishing a backup system of many currencies in the heart of the international world order.”

Since China’s currency was added to the selected group of SDR currencies last November, there is the system of multiple currencies, which China calls the “4 + 1 system.” It includes not only the U.S. Dollar (fhe first) the Euro, the Pound Sterling, the [Japanese] Yen but also the Renminbi [also known as Yuan] (the fourth). These are the five SDR components.

In order to strengthen the recognition of the SDR, the Central Bank of China has begun to publish its total foreign exchange reserves – the world’s largest – in both SDR and in U.S. Dollar.

A golden future

However, the Chinese alternative to the dominance of the U.S. Dollar goes much further than the propagation of the paper currencies of the SDR basket. China is obviously aiming at restoring an international gold standard. Most likely it won’t be based on the bankrupt Bretton Woods dollar exchange system, U.S. President Richard Nixon unilaterally terminated in August 1971, when he told the world, that in the future, they would have to swallow the paper Dollar and would not be able to redeem gold with it. At that particular juncture a global inflation — in U.S. Dollar — kicked in, an inflation, that future economic historians will most likely remember as “the greatest inflation ever.”

One estimates that between 1970 and 2000 the global U.S. Dollar circulation rose by more than 2.500 percent. Since then it has expended to well over 3.000 percent: and this, without any legal requirement to secure this U.S. Dollar amount in a predetermined ratio to gold, thus cancelling any worldwide U.S. Dollar inflation restriction. As long as the world is forced to have U.S. Dollars to pay for oil, grain and other goods, Washington can write checks endlessly without any fear of having them burst because of “insufficient cover.”

In conjuction with the fact that since 1971 another silent Wall Street Bank coup d’état has taken place, claiming any hint of representative democracy and constitutional government for itself, we have the craziest money printing machine very similar to Goethe’s 18th century poem: the Sorcerer’s apprentice. The fiat creation of U.S. Dollars has literally run out of control!

Since 2015, China is striving to replace the London, New York and Western Financial hubs responsible for gold fixing rates. As I reported in my longer August 2015 analysis, China and Russia are making great progress, to back up their currencies with gold in order “to make them as good as gold”, while currencies such as the debt ridden Euro or the bankrupt and credit inundated U.S. Dollar are struggling for survival.

In May 2015, China announced that it had established a state owned gold mutual  / investment fund. The initial goal is to create a pool of 16 billion U.S. Dollars and convert it into the largest physical gold-fund in the world. China is also developing a gold mine project along the new high-speed rail lines that have been called the “New Economic Silk Road” or “a road or a belt,” President Xi promotes.

According to China, the goal should be to enable Eurasian countries, along the Silk Road, to raise the backing of their local currencies with gold. Countries along the Silk Road and the BRICS, having the majority of the world population, natural and human resources, would then become completely independent of anything the West has to offer.

In May 2015, China’s Gold market in Shanghai formally established the “Silk Road Gold Fund” (Silk Road Gold Fund.) The two main investors in the new fund were the two largest gold mining Chinese companies: the Shandong Gold Group with 35 percent of the shares and the Shaanxi Gold Group with 25 percent. The Fund will invest in mining projects along the railways of the Eurasian Silk Road and also in the larger not yet explored regions of the Russian Federation.

Very few know thus far that South Africa is no longer the gold king of the world. South Africa is only ranking annual gold production country number seven. China is number one and Russia number two.

On May 11, just before the founding of new China Gold Fund, China’s National Gold Group Corporation signed an agreement with the Russian gold mining group Polyus Gold, Russia’s largest operator of gold mines and one of the ten largest in the world. Both companies will tap the gold deposits at Natalka in the Far East, in the district of Kolyma the province Magadan, which is still considered the largest in Russia.

Recently, the Chinese government and its state-owned companies have shifted their strategy. Today, with the official date of March 2016, China holds more than $ 3.2 trillion of foreign currency as a reserve in its central bank. Of these – it is believed – that about 60 percent, or almost two trillion dollars are in assets such as U.S. Treasuries or quasi-government bonds, mortgage bonds of mortgage companies such as Fannie Mae or Freddie Mac. Instead of investing all their dollar revenues from trade surpluses in increasingly inflated and worthless US Treasury bonds, China has set in motion the strategy to purchase assets worldwide.

On top of the Chinese “shopping list” of Beijing’s foreign assets is the purchasing of gold mines around the world. Although the price of gold has tightened slightly since January, it still moves on a five-year low, and many mining companies, threatened by bankruptcy, are in serious need of liquidity. Gold is just about to hit the Renaissance start button.

The beauty of gold is not only the fact that countless buyers use it as a hedge against inflation but is also the most beautiful of all precious metals.

In his work The Republic, Greek philosopher Plato identified five types of forms of government – aristocracy, plutocracy, oligarchy, democracy and tyranny, tyranny which is the lowest and most scurrilous of them all. He then lists the aristocracy or the rule of the wise (philosophers’ kings) with the “golden souls” as the highest form of government, which is very kind and of the highest integrity. Throughout the history of mankind, the value of gold has always been appreciated. China, Russia and other Eurasian nations are bringing gold back to where it deserves to be and this is very good indeed.

Frederick William Engdahl

Copyright © 2016 | The copyright of this site is, unless otherwise indicated, the Kopp Verlag, Rottenburg,  Germany | Original German article: http://info.kopp-verlag.de/hintergruende/enthuellungen/f-william-engdahl/china-bereitet-goldalternative-zum-dollar-system-vor.html | Translation Bruno P. Gebarski.

Image Credit nwright | Shutterstock

This article represents exclusively the opinion of the author. It does not necessarily reflect the views of the publisher or the opinions of other authors of these sites.

 

Leave a comment

Filed under AIIB, BRICS, Central Banking, China, Geopolitics, IMF, New Development Bank, Renminbi, Russia, SDR, USA, USD, Yuan