Yuan As Reserve Currency? I’m Not Laughing Anymore

The New Axis of Chinese Power

In chess, as in geopolitics, a game can be won with a pawn. Yemen is one such pawn.

Before we get into Beijing’s killer Yemen move, I’ll explain why I say Beijing and not Iran.

Westerners have been brainwashed into believing North Korea (DPRK) is an independent country that could potentially join Western civilization. If only North Koreans didn’t have the nutty Kim family in charge. If only they had a government who’d rather trade with the West than let their citizens eat tree bark (ancient history, but Americans don’t keep up).

China backed North Korea in its early 1950s-war with South Korea (which technically, remains hot). Again, Westerners are taught to view North Korea as South Korea’s enemy — as if they’re the only two nations in the region.

North Korea borders China. Do you believe North Korea can do anything on the international stage without China’s permission? You might ask, “Why did North Korea take a visit from Trump?”

The Kim family gets domestic proof of North Korea’s importance in the world and the Chinese get — Laughs.

If China will fire on the Philippines, near Second Thomas Shoal, which is 621 miles away from the closest Chinese territory, why would it let North Korea do whatever it wants?

North Korea is a puppet of China.

Therefore, if North Korea is supplying Russia with weapons, especially artillery shells, it does so with China’s permission (if not direction). If the U.S. government hadn’t played, for decades, the self-important North Korea propaganda game it could protest North Korea’s relationship with Russia. But it can’t.

If you’re with me so far, we agree that China is currently providing military equipment to Russia through North Korea.

Next is Iran. China is the largest buyer of Iranian oil. How much influence do you believe China has over Iran? Iran can’t sell much to the West. Can you imagine selling some cheap equipment (drones) to Russia that your biggest, and perhaps only customer, told you not to? I can’t.

Like North Korea, Iran is subservient to China. Fact: Iran is supplying drones to Russia. Therefore, China is supplying military equipment to Russia through Iran, which can buy directly from China and putting their name on it.

I believe the scale is huge but the West is putting tremendous pressure on the Western media to under-report it.

Russia needs yuan to buy technology from China. China always wants Russian resources, but Russia, now at war with the West, needs China more than China needs it; that is, it needs tech and supplies from the Chinese orbit (including DPRK and Iran).

Russia is currently a supplicant to China

Iran is a captive seller to China

We can put aside who is more dependent on who and recognize a simple reality: China, Russia, Iran and North Korea operate in the same financial market. Because China is the more powerful nation it’s natural that its currency should be the reserve currency of that group.

Iran uses Yemen to keep its enemies the U.S., Saudi Arabia, and Israel tied up. (With Saudi Arabia now talking to Iran something has soured between the U.S. and Saudi Arabia).

Why did Yemen attack the ships in the Red Sea? Money. Who paid them, Iran? Who paid Iran to pay more to the Yemen fighters? China. Who else?

For chump change China was able to re-route shipping around Africa. That will end up as inflation to the West. It destabilizes Egypt which can’t afford to lose revenues from the Suez Canal. Therefore, the U.S. will have to make up the difference. In short, having political distance from Yemen, China is able to both devalue U.S. dollars AND increase expenses for the U.S.

Don’t get me wrong, I don’t believe China planned this all out. It just fell into their lap, courtesy of Israel.

Best of all, the Netanyahu government couldn’t give a fig about the U.S.’s problems with China/Russia and is causing the U.S. immense embarrassment. (The Biden administration doesn’t have the balls to cut Israel off. So many delicious side stories!)

In another piece I’ll explain why the U.S. coalition meant to stop Yemen from closing the Red Sea can’t do it though military means. Iran either isn’t allowing Yemen to use the kind of missiles that could sink a U.S. Navy ship or they haven’t given them to Yemen. My point is, IF Iran (China) wanted to sink a Navy ship they could. They have the technology.

What’s important is that global “money” is beginning to recognize that the U.S. can’t protect the dollar through military means. They recognize that the West can’t (or won’t) beat Russia, in Ukraine, using military means. Sure, if the U.S. gave Ukraine access to aircraft Ukraine would do better. But we simply do not know if it would be enough to get Russia out of Crimea etc.

I doubt few would disagree that IF the U.S. could not remove Russia using all its military might the world order would be changed.

As I’ve explained above, behind the scenes, China is pulling the strings to make it more important to global power and trade. I’m not a fan of the CCP, but hey, hats off to them. They won’t replace the U.S. dollar as a reserve currency to much of the world.

But they’re about to lock up their half.

The “axis of evil” Bush talked about (mostly propaganda at the time)— it’s become a reality.