Tuesday, January 24, 2012

Weakening of the Petro-Dollar System, Asian Dollar Exclusion Zone, Aircraft Carriers Obsolete

Most don't realize how our money system works in the world. Money is no longer based on gold and silver as in the past but now based only on "demand". So, how does the system create an artificial demand for a base-less fiat currency? Well, turns out the G20 central banking system has designated the US Dollar as the world's reserve currency. They have also set up a free-trade system where the US consumer has been encouraged to support large trade deficits. Therefore, the other G20 economies have excess USD to burn. And, since oil and all other commodities are priced in dollars, these net importers of raw materials are interested in maintaining a strong dollar so they can purchase more imports of commodities. Therefore, countries like China and Japan and Germany continue to buy US government bonds and float our record $15 Trillion national debt and continual deficit spending.

However, this whole Petro-Dollar Ponzi scheme falls apart if major oil producing nations decide to sell oil in currencies other than USD. Iraq began selling oil to Russia in Euros which is believed to be a significant economic motivation for Gulf War 2. Libya was buying up gold getting ready to create its own African regional gold-backed currency. This is believed to have been a major motivation for NATO involvement in Libya.

For some time now, Iran has been selling oil to to China in Yuan. This has been believed to be a major motivator for western aggression against Iran and not just their nuclear program. Only recently, the US has imposed strict sanctions on Iran freezing all it's western bank accounts and preventing oil from being sold to NATO countries in dollars.

In response to the sanctions, Iran is doing the only thing it possibly can do. Iran has just brokered deals with Russia to sell oil in Ruble, and just in the past few days, the media is reporting a new trading partnership with Russia, China, Japan, India, and Turkey.

Again, this is huge. ZeroHedge.com is reporting that India (one of the strongest emerging markets) has joined with China, Russia, Japan and Turkey in what is being termed the "Asian Dollar Exclusion Zone". What this means is that India will now be buying oil from Iran in its own currency (Rupees) and not in USD.


I'm not sure you may remember President Obama visiting India late last year along with a Aircraft Carrier attack group attempting to persuade India in staying with the West and continuing to support the USD. You also should remember that during that visit China parked one of its stealth subs off the coast of Los Angeles and fired off a ballistic missile.

What points was China making to India with this stunt. Aircraft Carriers and large surface naval vessels are obsolete. The Navy has known since 1967, that any radar tracked surface ship is a sitting duck for anti-ship ballistic missiles.

In 1967, the Israeli Navy's destroyer Eilat was the first ship to be sunk by a ship-launched missile. Following the 6-days war, the Israeli Eilat was easily sunk by a number of Styx missiles launched by Egyptian missile boats off the Sinai Peninsula.

The US has several anti-ship short range ballistic and cruise missiles. The Harpoon, flies just over the water until it comes into range of its target. It then performs a "pop up" maneuver where it suddenly gains altitude and then strikes it's target from above where ship defense is weakest.

China military power has been overlooked because some falsely claim they have no Navy. In reality, nothing could be further from the truth. What they lack is a fleet of slow, obsolete aircraft carriers. Instead, what they have is a huge and ever expanding arsenal of short-range ballistic and mach-10 cruise missile launching stealth cruisers, and stealth submarines.

With GPS, advanced guidance, stealth, ect, you no longer need piloted aircraft coming from a carrier group to fly over to make strategic and surgical bombing sorties. With a fleet of stealth missile boats, and missile subs, any target is a sitting duck.

This is partly why we are hearing so much about anti-ballistic missile technology. However, you can't shoot what you can't see or track on radar. Consequently, while there remains a place for boots on the ground, modern warfare strategy has shifted to the use of remote-control bomb-dropping stealth drones, and ballistic and cruise missiles delivered by stealth cruisers and subs.


The US Navy M80 Stiletto is a M-hull stealth surface boat that can carry a special ops team and manage numerous airborne, surface and subsurface remote vehicles. The Stiletto's has a top speed of 50 knots. The future of naval warfare is 1. Stealth Surface or Subsurface mothership 2. Remote arial, surface and subsurface vehicles 3. Cruise and Ballistic missiles. 4. Thermal imaging 5. Laser Anti-ballistic missile systems.

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