Rogue Money readers likely do not need to be told that when the attention of the whole world is fixed intently on one story (like, the #Brexit), it's a pretty good bet that something equally important is happening elsewhere. In that spirit, this blog draws attention to yet another state visit made by Vladimir Putin upon his "old friend," Xi Jinping. this past weekend June 24-26, 2016, in Beijing.
Over 30 agreements were signed by the two presidents while that silly neighboring continent to the west managed to embroil herself in confusion as traders and analysts from Istanbul to New York realized with horror that the bookies don't always get it right. In characteristic single-minded fashion, the agenda of the two world leaders proceeded forward like an unstoppable tank, seemingly oblivious and immune to the contagion unfolding on world markets.
Ever since the signing of the Holy Grail Gas Deal in March 2014 (has it only been two years? an eternity has passed since then), we have all become accustomed to the back-and-forth travails of the two leaders, doggedly moving forward with the Silk Road "One Belt, One Road" project, brushing off the western Neocon temper tantrums in Ukraine and Syria with complete disdain. While bankers and traders in London and Frankfurt were rinsing out their underwear last Friday, Putin and Xi were calmly discussing the fusion between the Silk Road Project and the Eurasian Economic Union. Yes, the "other" union, not unlike the "other" woman who breaks up a marriage. President Xi said: (linked here)
We have signed and made public the Joint Declaration of the People's Republic of China and the Russian Federation, a joint declaration on the strengthening of global strategic stability and a joint declaration on cooperation in the development of the information space. Our foreign ministries circulated a statement by China and Russia on strengthening the role of international law. We also signed a number of cooperation agreements in priority areas between the competent authorities and companies of the two countries.
China and Russia are the main economies among emerging markets. President Putin and I both noted that the two sides have the confidence and opportunity to expand regional economic cooperation, to overcome the global economic challenges and to maintain the positive dynamics of economic development through deepening practical cooperation and aligning our interests, in particular by converging the national development strategies “One Belt, One Road” and the Eurasian Economic Union.
Such diversification of transport and logistics routes is in line with the concept of aligning the Eurasian Economic Union and the Silk Road Economic Belt. Today, an official start was announced for talks on a trade and economic cooperation agreement between our integration projects. It promises a new level of partnership, which presupposes the creation of a common economic space on the entire Eurasian continent.
President Putin made it clear that Iran is now approved to become a full member in the SCO (Shanghai Cooperation Organization) according to his words: (linked here)
We think that now that the Iranian nuclear issue has been settled and the UN sanctions lifted, there are no obstacles in the way of a positive assessment of Tehran’s membership application.
... Tehran will have company soon when India and Pakistan achieve full membership status:
The procedures for India and Pakistan’s accession as full members of the SCO is near completion now.... One of the outcomes of this year’s summit is the planned signing of memorandums on obligations that India and Pakistan must fulfil in order to become full members of the organisation. We hope that our partners will complete these steps as soon as possible, in time for our next meeting in Kazakhstan.
In the meantime, we need to start directly integrating India and Pakistan into the SCO’s regular cooperation mechanisms such as the Council of Heads of State and the regular meetings of member states’ foreign ministers.
The two leaders of the world's largest emerging markets engaged in a whirlwind of activity and meetings related to various corporate and national interests ... agreements signed for increasing rail and port traffic ... a “new land grain corridor” to export Siberian grain to China and Asia ... nuclear power plant-building ... tightening up cyber security ... and the always-present commitment to battling terrorism within the boundaries of United Nations resolutions and international law.
Oh and then there's all those "we'll now be using local currencies" agreements to trade amongst each other: (linked here)
Chinese Premier Li Keqiang and top legislator Zhang Dejiang also met with Putin on Saturday.
Li said during the meeting that China stands ready to align with the EEU proposed by Russia and reach institutional arrangements on trade and investment at an early date.
He also vowed to expand the scope of energy cooperation in areas such as oil and gas, nuclear energy, coal and electricity, promote mutual investment and big-project cooperation, and conduct financial cooperation in currency swap, payment system, and within multilateral framework.
We can almost feel the steam building up in the locomotive on the Silk Road Express. The steel wheels are beginning to churn forward. It would appear that the U.K. is now running for that train with boarding pass in hand.
BREXIT - A QUICKIE DIVORCE ON THE WAY TO BEIJING
This past weekend also saw much discussion between Putin and Xi in the banking arena, an arena that has already brought London and Frankfurt into the fold with the new Yuan swap facilities and the Yuan (RMB) sovereign bond offerings. President Putin reminded us of the importance of the AIIB and the BRICS New Development Bank: (linked here)
I would like to note that Southeast Asian countries have shown interest in the SCO’s economic dimension. This was something we discussed at the recent Russia-ASEAN summit in Sochi.
Financial development institutes can also contribute to the successful implementation of multilateral economic projects within the SCO framework, particularly the Eurasian Bank, the Asian Infrastructure Investment Bank, and the BRICS New Development Bank.
The steady development in our humanitarian cooperation within the organisation is certainly cause for satisfaction. The tourism development programme we are adopting today will create a common tourism space and give tourists greater safety.
Sorry, Turkey and Egypt, if you were hoping that tourism from Russia was going to pick up soon. Russian citizens are likely being deluged with ads for tantalizing Asian exotic timeshares right about now.
As we stated in the synopsis of this story, the "All Aboard!" call is now being trumpeted for those countries who reserved their membership in the AIIB, and the very first nation to do that was the United Kingdom only one short year ago. News reporters couldn't resist the temptation to ask Putin if he had any comments about the Brexit vote once the results were announced. In his usual steely-eyed statesman style, the Bear responded: (linked here)
Naturally, we closely followed the voting but never interfered or sought to influence it. Therefore, British Prime Minister David Cameron’s statements on Russia’s position before the referendum had no grounds whatsoever.
I think it was an inappropriate attempt to influence public opinion at home. As we can see, it did not work. In my opinion, it is all the more inappropriate to speak about Russia’s supposed position after the voting. This is truly a low level of political discourse.
It seems to me that ordinary British citizens understand why this happened. First, nobody wants to feed and subsidise weaker economies and pay support [to] other states and entire nations. This is an obvious fact. Apparently, people are displeased about security, which is being eroded by powerful migration waves. People want to be more independent....
However, I would like to reiterate what I said recently at the St Petersburg International Economic Forum. This is the choice made by British subjects. We did not interfere, are not interfering and will not interfere in this in any way. From all indications, certain formal procedures will follow, related to the British people’s decision to leave the EU.
... I am sure that everything will fall into place in the very near future. As for what will happen in the economic and political sphere following Britain’s exit [from the EU], we will see this in the very near future. We will see.
So ... Putin is not too worried.
In the din of Brexit fallout, Dr. Joseph P. Farrell posted his own emergency video update to opine that the UK exit from the European Union now frees up that nation "to pursue a path much more independently of Brussels and Washington than hitherto it was able to do. This means they're now in the cat-bird seat to tap into those long term financial infrastructure plans that Russia and China have for Eurasia. Don't forget that Britain is on the AIIB. So is Germany and so is France. All, again, over protests from Washington."
It should be noted that Queen Elizabeth is on record as suggesting that there was no longer any reason for Great Britain to remain in the E.U. That fact alone should cause us to wonder if the Brexit vote was in fact rigged, but rigged for a LEAVE outcome, not for a REMAIN outcome. The Queen's mood should also signal to us that "People Power" had nothing to do with the result of the Brexit referendum. Farrell then continues with his bombshell speculation that we could well witness the collapse of the Euro and return of the Deutschmark! (Youtube linked below).
Expect the TTIP deal to be scotched! I think that deal is now dead. It was a surrender of national sovereignty to corporate interests.
I think you will now see the British Commonwealth come back as an institution. And I think you will see a similar move in Germany. But theirs will be different. Recall that what led to the E.U. was the "Exchange Rate Mechanism" (discussed at length in his book The Third Way.)
I think you're looking at the potential collapse of the Euro. The Deutschmark will return. With its return, the other national currencies that were part of that old "Exchange Rate Mechanism" might be grafted into a revival of that mechanism....
Ultimately, this was a vote about Sovereignty and Locality versus Global Super State Corporate Bureaucrats. This movement will spread to France, Italy, Netherlands, Greece, Spain ... everybody will have their own demands.
In conclusion, we urge you to bookmark this RogueMoney.net website and return daily to see the contributions of other writers here as the team plunges full steam ahead into the evaporating mist of all these new marriages being negotiated and divorces about to be processed across Europe and Asia. Regarding NATO, do visit our earlier blog posted May 28 if you haven't done so already, linked here: Sunset Over NATO. Intel has been available for quite a while to indicate that Germany is preparing to evict NATO and swing East.
As a final bullet to the notion that the "people's voice prevailed" in the Brexit vote, we leave you with this "coincidence" noted by DollarVigilante.com, a numerical oddity that shows that the Elite's adherence to the doctrine of Magic Sevens just won't be denied.
Why are we getting that rising nausea in our stomach telling us that it's 2008 all over again (or worse)?
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