Real BRICS Bombshell
Putin reveals 'fair multipolar world' concept in
which oil contracts could bypass the US dollar
and be traded with oil, yuan and gold
By Pepe Escobar
September 07, 2017 "Information
- The annual BRICS summit in Xiamen – where
President Xi Jinping was once mayor – could not
intervene in a more incandescent geopolitical
again, it’s essential to keep in mind that the
current core of BRICS is “RC”; the Russia-China
strategic partnership. So in the Korean
peninsula chessboard, RC context – with both
nations sharing borders with the DPRK – is
has imposed a definitive veto on war – of which
the Pentagon is very much aware.
Pyongyang’s sixth nuclear test, although planned
way in advance, happened only three days after
two nuclear-capable US B-1B strategic bombers
conducted their own “test” alongside four F-35Bs
and a few Japanese F-15s.
Everyone familiar with the Korean peninsula
chessboard knew there would be a DPRK response
to these barely disguised “decapitation” tests.
back to the only sound proposition on the table:
the RC “double freeze”. Freeze on US/Japan/South
Korea military drills; freeze on North Korea’s
nuclear program; diplomacy takes over.
White House, instead, has evoked ominous
“nuclear capabilities” as a conflict resolution
Gold mining in the Amazon,
Doklam plateau front, at least New Delhi and
Beijing decided, after two tense months, on
“expeditious disengagement” of their border
troops. This decision was directly linked to the
approaching BRICS summit – where both India and
China were set to lose face big time.
Prime Minister Narendra Modi had already tried a
similar disruption gambit prior to the BRICS Goa
summit last year. Then, he was adamant that
Pakistan should be declared a “terrorist state”.
The RC duly vetoed it.
also ostensively boycotted the Belt and Road
Initiative (BRI) summit in Hangzhou last May,
essentially because of the China-Pakistan
Economic Corridor (CPEC).
India and Japan are dreaming of countering BRI
with a semblance of connectivity project; the
Asia-Africa Growth Corridor
(AAGC). To believe that the AAGC – with a
fraction of the reach, breath, scope and funds
available to BRI – may steal its thunder, is to
enter prime wishful-thinking territory.
Modi emitted some positive signs in Xiamen; “We
are in mission-mode to eradicate poverty; to
ensure health, sanitation, skills, food
security, gender equality, energy, education.”
Without this mammoth effort, India’s lofty
geopolitical dreams are D.O.A.
for its part, is immersed in a larger-than-life
socio-political tragedy, “led” by a
Dracula-esque, corrupt non-entity; Temer The
Usurper. Brazil’s President, Michel Temer, hit
Xiamen eager to peddle “his” 57 major, ongoing
privatizations to Chinese investors – complete
with corporate gold mining in an Amazon nature
reserve the size of Denmark. Add to it massive
social spending austerity and hardcore
anti-labor legislation, and one’s got the
picture of Brazil currently being run by Wall
Street. The name of the game is to profit from
the loot, fast.
BRICS’ New Development Bank (NDB) – a
counterpart to the World Bank – is predictably
derided all across the Beltway. Xiamen showed
how the NDB is only starting to finance BRICS
projects. It’s misguided to compare it with the
Asian Infrastructure Investment Bank (AIIB).
They will be investing in different types of
projects – with the AIIB more focused on BRI.
Their aim is complementary.
‘BRICS Plus’ or bust
global stage, the BRICS are already a major
nuisance to the unipolar order. Xi politely put
it in Xiamen as “we five countries [should] play
a more active part in global governance”.
right on cue Xiamen introduced “dialogues” with
Mexico, Egypt, Thailand, Guinea and Tajikistan;
that’s part of the road map for “BRICS Plus” –
Beijing’s conceptualization, proposed last March
by Foreign Minister Wang Yi, for expanding
further instance of “BRICS Plus” can be detected
in the possible launch, before the end of 2017,
of the Regional Comprehensive Economic
Partnership (RCEP) – in the wake of the death of
Contrary to a torrent of Western spin, RCEP is
not “led” by China. Japan is part of it – and so
is India and Australia alongside the 10 ASEAN
members. The burning question is what kind of
games New Delhi may be playing to stall RCEP in
parallel to boycotting BRI.
Patrick Bond in Johannesburg has developed an
arguing that “centrifugal economic forces” are
breaking up the BRICS, thanks to
over-production, excessive debt and
de-globalization. He interprets the process as
“the failure of Xi’s desired centripetal
doesn’t have to be this way. Never underestimate
the power of Chinese centripetal capitalism –
especially when BRI hits a higher gear.
Meet the oil/yuan/gold triad
It’s when President Putin starts
the BRICS reveal their true
bombshell. Geopolitically and geo-economically,
Putin’s emphasis is on a “fair multipolar
world”, and “against protectionism and new
barriers in global trade.” The message is
straight to the point.
Syria game-changer – where Beijing silently but
firmly supported Moscow – had to be evoked; “It
was largely thanks to the efforts of Russia
and other concerned countries that conditions
have been created to improve the situation
Korean peninsula, it’s clear how RC think in
unison; “The situation is balancing on the brink
of a large-scale conflict.”
judgment is as scathing as the – RC-proposed –
possible solution is sound; “Putting pressure
on Pyongyang to stop its nuclear missile program
is misguided and futile. The region’s problems
should only be settled through a direct dialogue
of all the parties concerned without any
Putin’s – and Xi’s – concept of multilateral
order is clearly visible in the wide-ranging
which proposes an “Afghan-led and Afghan-owned”
peace and national reconciliation process,
“including the Moscow Format of consultations”
and the “Heart of Asia-Istanbul process”.
code for an all-Asian (and not Western) Afghan
solution brokered by the Shanghai Cooperation
Organization (SCO), led by RC, and of which
Afghanistan is an observer and future full
then, Putin delivers the clincher; “Russia
shares the BRICS countries’ concerns over
the unfairness of the global financial
and economic architecture, which does not give
due regard to the growing weight of the emerging
economies. We are ready to work together with
our partners to promote international financial
regulation reforms and to overcome the excessive
domination of the limited number of reserve
overcome the excessive domination of the limited
number of reserve currencies” is the politest
way of stating what the BRICS have been
discussing for years now; how to bypass the US
dollar, as well as the petrodollar.
Beijing is ready to step up the game. Soon China
launch a crude oil futures contract
priced in yuan and convertible into gold.
means that Russia – as well as Iran, the other
key node of Eurasia integration – may bypass US
sanctions by trading energy in their own
currencies, or in yuan. Inbuilt in the move is a
true Chinese win-win; the yuan will be fully
convertible into gold on both the Shanghai and
Hong Kong exchanges.
triad of oil, yuan and gold is actually a
win-win-win. No problem at all if energy
providers prefer to be paid in physical gold
instead of yuan. The key message is the US
dollar being bypassed.
via the Russian Central Bank and the People’s
Bank of China – have been developing ruble-yuan
swaps for quite a while now.
that moves beyond the BRICS to aspiring “BRICS
Plus” members and then all across the Global
South, Washington’s reaction is bound to be
nuclear (hopefully, not literally).
Washington’s strategic doctrine rules RC should
not be allowed by any means to be preponderant
along the Eurasian landmass. Yet what the BRICS
have in store geo-economically does not concern
only Eurasia – but the whole Global South.
Sections of the War Party in Washington bent on
instrumentalizing India against China – or
against RC – may be in for a rude awakening. As
much as the BRICS may be currently facing varied
waves of economic turmoil, the daring long-term
road map, way beyond the Xiamen Declaration, is
very much in place.
Escobar is an independent geopolitical analyst.
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