Donald Hank
You need to know about these three news blackouts
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By Donald Hank
April 12, 2015

Regarding geopolitics, economics and finance, and US foreign policy, there are three key developments that almost all media outlets, including independent web sites, are ignoring to your peril.

The main reason for this blackout is no doubt the fact that most of these outlets rely on monolingual primary sources, while the best of them merely supplement their offerings with news from European language sources, paying little attention, for example, to the Russian-language and Asian-language press. I am not implying that they ignore English-language reports from the foreign media. However, as shown below, the English language versions of news from Asia, for example, may differ greatly from the native language versions, and this means a lot of important news winds up being blacked out for US (and European) news consumers.

Another reason is lack of interest on the part of both editors and the US public. Both parties have been taught the Manifest Destiny doctrine from infancy, namely, that Americans are the center of the universe, the divinely anointed keepers of morality and righteousness, and that we, and our dollar, are justifiably everyone's masters. The rest of the world must therefore follow our lead and dissenters must be punished. Hence, events and opinions in foreign countries are of little or no interest or value except as a measure of our need to set them straight as needed.

Another important factor in this blackout is politics. Neocons who rely on a pervasive conviction of US exceptionalism to promote their wars naturally do not want you to know the opinions of foreigners, especially when, God forbid, they make sense. They suggest to the public that any foreign government or populace that disagrees with the US government is the enemy, in keeping with GW Bush's declaration "if you're not for us you're against us." Both major political parties agree on the whole because, after all, war is the main source of their power – their bread and butter.

These three ignored developments are:
    1) the rapid progress being made in the use of the Chinese RMB (yuan) in international trade,

    2) the rapid economic and financial dissociation of traditional allies from the US, as evidenced by the growing number of RMB clearing centers in Europe and Asia (as detailed in the article linked above) and by the association of the major economic powers with the AIIB (China's Asian Infrastructure Investment Bank), and the implications thereof for the US dollar; and

    3) More ominously, the association of Saudi Arabia, the country that has been back-stopping the petrodollar since 1973, with this Chinese bank. The implications of this move are portentous.
Thus, key US allies are following the money to China and will not come back. They have finally seen the US hegemons as hostile to their interests. Worse, Europe still resents the consequences of our pawning off subprime mortgage junk on them. They are aware, if only subconsciously, that the economic debacle of 2008 was triggered by irresponsible US banking and regulatory policies and was the cause of the European malaise today. The US response has been a reminder that no one forced them to buy our junk, but they resent the fact that our rating agencies assigned high grades to this junk, deceiving them into buying.

This dissociation of former allies from the US suggests that dedollarization is proceeding at break neck speed. Given the phenomenal growth of the RMB and the blackout of these developments in the media, Americans are almost completely unprepared for the coming consequences. The silence of the financial and economic media, the general media and even most of the independent media on these issues show that we are like cattle awaiting the slaughter of our savings and our fortunes. The Schadenfreude of Europe will be hard to contain once their retaliatory measures bear fruit.

Putting my characteristic modesty aside for now, I believe I was probably the first Western analyst to warn of the rapid growth of the RII (RMB Internationalization Index) and its dedollarizing effect. I say this because I have found no reports like mine. I have found that most news agencies do not monitor the foreign language media, especially the Chinese-language press, which I have found do not report in their English language editions the same information earmarked for home consumption. This is no doubt due in part to their love of harmony, a vital Confucian concept that has survived Mao's Cultural Revolution intact, but also because, like the US banks that sold subprime mortgages to the world, they see no percentage in letting the cat out of the bag quite yet. Similarly, due to long standing traditions of diplomacy, the Europeans decline to state outright that they disagree, for example, with our virulently anti-Russian policies. I infer this, for example, from talk shows I view regularly on Deutsche Welle. While Europeans are not necessarily happy with Putin's policies, they sense that any taunting of the bear will have more grievous consequences for them than for the taunter on the other side of the pond.

In a press conference, China's top monetary policy expert Chen Yulu stated last June that the RII, which then ranked number 9 among world currencies, would soar to third place in just 3-5 years (that was about a year ago, so make that 2-4 years).

Less than a year later we now read that Europe's major economies, BRICS, Australia and Saudi Arabia are joining the Chinese AIIB, as stated above, and turning their backs on the US-dominated World Bank, which has shifted its focus from aiding Third World development to foisting leftwing social change on client countries, as I have shown here.

Since monetary expert Chen Yulu was not including this momentous AIIB event in his calculations, there is a good chance that the RII will rise to 3rd place much sooner than he predicted, creating a formidable challenge to the US dollar, though Chen, in his characteristic Confucian manner, denies that the yuan is a challenge to the dollar. Americans need to be prepared and I know of no one who is coming even close to preparing them in all 3 of the key areas that I have covered. Far from that, major news outlets keep touting the increasing value of the USD and the US stock market. It's all sleight of hand.

To recap what you need to know about what is coming at you from three directions, my translation and analysis of the Chinese interview with Chen Yulu are here:

http://www.renewamerica.com/columns/hank/141219

My analysis of the association of our allies with the AIIB (amounting to a rejection of the US-dominated World Bank) is here:

http://www.renewamerica.com/columns/hank/150319, and

My analysis of the Saudis' vital role in backstopping the petrodollar (now apparently coming to an end) is here:

http://www.renewamerica.com/columns/hank/150319

These analyses show that China and Saudi Arabia increasingly control US foreign policy (in part by controlling our allies) in unseen ways that few or no Western geopolitical analysts are fully aware of.

All of the above-described blacking out of vital news leads to utterly failed foreign policies and uninformed investments for both households and business. I would encourage you to study these analyses and use them as a basis for personal financial decisions, and for communication with friends and family about the coming dedollarization and the course that America must take to survive.

Hint: At this point, taunting the bear is not advised in our weakened political and economic condition.

© Donald Hank

 

The views expressed by RenewAmerica columnists are their own and do not necessarily reflect the position of RenewAmerica or its affiliates.
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Donald Hank

Until July of 2009, Don Hank was operating a technical translation agency out of his home in Wrightsville, PA. He is now retired and residing in Panama with his wife and daughter.

A former language teacher, he holds an undergraduate degree in French and German from Millersville State University (PA), a Master's degree in Russian language and literature from Kutztown State College (also in PA), has studied Chinese for 3 years in Taiwan at the Mandarin Training Center, and is self-taught in other languages, having logged a total of 8 years abroad in total immersion situations.

He is also the founder of Lancaster-York Non-Custodial Parents, a volunteer organization that provides Christian counseling for non-custodial parents.

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