There is much noise in the media today about North Korea these days. What is really going on about this country that has the United States frothing at the mouth? North Korea is a pygmy compared to America, in all key respects, from GDP to military power. In order to better understand the geopolitical role of Korea, we have to take a journey back in time to 1895. We shall discuss only the key highlights regarding the two Koreas.
Japan, under British guidance, began its rise to power. Starting from 1859, Japan began to industrialize its economy, such that it was able to defeat the Chinese navy in a sea battle, in 1894. In February 1895, Japan destroyed Russia’s Baltic Fleet. With its main rivals destroyed in battle, Japan took over Korea and made it official in 1910.
From 1910 to the end of World War II, Korea was under Japanese rule. Most Koreans were peasants engaged in subsistence farming. In the 1930s, Japan developed mines, hydro-electric dams, steel mills, and manufacturing plants in northern Korea. A Korean guerrilla movement emerged in the mountainous interior and in Manchuria, harassing the Japanese imperial authorities. One of the most prominent guerrilla leaders was the Communist Kim Il-sung.
The history of North Korea began with the partition of Korea at the end of World War II in 1945. As Korea was under Japanese rule during World War II, Korea was officially a belligerent against the Allied Powers. The unconditional surrender of Japan led to the division of Korea into two occupation zones with the United States administering the southern half of the peninsula and the Soviet Union administering the area north of the 38th parallel.
The Soviets and Americans were unable to agree on the implementation of Joint Trusteeship over Korea. This led in 1948 to the establishment of two separate governments – the Communist-aligned Democratic People’s Republic of Korea (DPRK) and the West-aligned First Republic of Korea – each claiming to be the legitimate government of all of Korea
In December 1945, at the Moscow Conference, the Soviet Union agreed to a US proposal for a trusteeship over Korea for up to five years in the lead-up to independence
By 1949, North Korea was a full-fledged Communist state.
The Korean War (1950-1953)
The consolidation of Syngman Rhee‘s government in the South with American military support and the suppression of the October 1948 insurrection ended North Korean hopes that a revolution in the South could reunify Korea, and from early 1949 Kim Il-sung sought Soviet and Chinese support for a military campaign to reunify the country by force. The withdrawal of most U.S. forces from South Korea in June 1949 left the southern government defended only by a weak and inexperienced South Korean army.
In October 1949, the Communists were victorious in China. This now posed a serious threat to America. How to contain China? At this time, the Americans were in control of Japan and Taiwan. It was decided to apply more pressure on China, through Korea. If a war were to break out in Korea, it would give the Americans a pretext to station troops in South Korea, thus making sure that China is “under-the-gun”, with American guns. Whatever happened, America had to make sure that it retained a military presence on the eastern wing of the Eurasian continent.
A “communist” threat from North Korea, backed up by China and Russia, would justify an American military force to “protect” South Korea. It’s an old racketeering technique.
In January 1950, after China’s ruler, Mao Zedong indicated that the People’s Republic of China would send troops and other support to Kim, Stalin approved an invasion. However, from the very beginning Stalin made it clear that the Soviet Union would avoid a direct confrontation with the U.S. over Korea and would not commit ground forces even in case of major military crisis. The stage was set for a war between the two rival régimes on the Korean peninsula.
In 1950 the Korean War broke out
For over a year before the outbreak of war, the two sides had engaged in a series of bloody clashes along the 38th parallel, especially in the Ongjin area on the west coast. On June 25, 1950, in response to a South Korean invasion on Ongjin, the Northern forces launched an amphibious offensive all along the parallel. Due to a combination of surprise and military superiority, the Northern forces quickly captured the capital Seoul, forcing Syngman Rhee and his government to flee. By mid-July North Korean troops had overwhelmed the South Korean and allied American units, and forced them back to a defensive line in south-east South Korea known as the Pusan Perimeter.
The United Nations condemned North Korea’s actions and approved an American-led intervention force to defend South Korea. In September, UN forces landed at Inchon and retook Seoul. Under the leadership of US General Douglas Macarthur, UN forces pushed north, reaching the Chinese border. The North Korean forces were not routed, but managed a strategic retreat into the mountainous interior and into neighboring Manchuria. In late November, Chinese forces entered the war and pushed the UN forces back, retaking Pyongyang in December 1950 and Seoul in January 1951. The Korean People’s Army played an equal part in this counterattack. UN forces managed to retake Seoul for South Korea. The war essentially became a bloody stalemate for the next two years.
American bombing included the use of napalm against populated areas and the destruction of dams and dykes, which caused devastating floods. China and North Korea also claimed the US was deploying biological weapons. As a result of the bombing, almost every substantial building and much of the infrastructure in North Korea was destroyed. The North Koreans responded by building homes, schools, hospitals, and factories underground Economic output in 1953 had fallen by 75-90% compared with 1949. While the bombing continued, armistice negotiations that had commenced in July 1951 wore on.
After much destruction, the war ended with the 1948 status quo being restored, as neither the DPRK nor the First Republic had succeeded in conquering the other’s portion of the original Korea. The peninsula was divided by the Korean Demilitarized Zone and the two separate governments stabilized into the existing political entities of South and North Korea. The Korean Armistice Agreement was signed on July 27, 1953. A ceasefire followed, but there was no peace treaty, and hostilities continued at a lower intensity.
Tension between the two sides continued. Kim Il-sung remained in power until his death in 1994. He developed a pervasive personality cult and steered the country on an independent course in accordance with the principle of Juche (self-reliance). However, with natural disasters and the collapse of the Soviet Bloc in 1991, North Korea went into a severe economic crisis. Kim Il-sung’s son, Kim Jong-il, succeeded him, and was in turn succeeded by his son, Kim Jong-un.
Amid international alarm, North Korea developed nuclear missiles.
Relations with China had worsened during the war. At the end of the war in 1953, there were approximately one million Chinese troops stationed in North Korea; they were gradually withdrawn but 250,000 of them still remained in 1957. That November, Kim Il Sung met with Mao Zedong in Moscow and requested the withdrawal of the remaining Chinese troops, citing that they constituted “unwanted interference” in Korea’s internal affairs and that some Chinese soldiers had committed rapes or otherwise abusive behavior towards the local population. Mao apologized for these incidents and promised that the individuals responsible would be punished. He then agreed to remove the last Chinese divisions from North Korea, which was completed by late 1958.
For both countries, it also served a useful political purpose since the US troop presence in South Korea now seemed less justified with the Chinese gone from the North. However, Washington, while welcoming China’s withdrawal from North Korea, made no effort whatsoever to remove US troops,
Tensions between North and South escalated in the late 1960s with a series of low-level armed clashes known as the Korean DMZ Conflict. In 1966, Kim declared “liberation of the south” to be a “national duty.
In 1968, North Korean commandos launched the Blue House Raid, an unsuccessful attempt to assassinate the South Korean President Park Chung-hee. Shortly after, the US spy ship Pueblo was captured by the North Korean navy. The crew were held captive throughout the year despite American protests that the vessel was in international waters, and they were finally released in December after a formal US apology was issued.
In April 1969 a North Korean fighter jet shot down an EC-121 aircraft, killing all 31 crewmen on board. The Nixon administration found itself unable to react at all, since the US was heavily committed in Vietnam and had no troops to spare if the situation in Korea escalated. However, the Pueblo capture and EC-121 shoot down did not find approval in Moscow, as the Soviet Union did not want a second major war to erupt in Asia. China’s response to the USS Pueblo crisis is less clear.
In 1972, the first formal summit meeting between Pyongyang and Seoul was held, but the cautious talks did not lead to a lasting change in the relationship. With the fall of South Vietnam to the North Vietnamese on April 30, 1975, Kim Il-sung began to feel that the US had shown its weakness and that reunification of Korea under his regime was finally possible. Kim visited Beijing in May 1975 in the hope of gaining political and military support for his plan to invade South Korea , but Mao Zedong refused this time because of the lingering after-effects of the Cultural Revolution throughout China, and also because Mao had recently decided to restore diplomatic relations with the US. Afterwards, Kim went home empty-handed. Meanwhile, North Korea emphasized its independent orientation by joining the Non-Aligned Movement in 1975.
Reconstruction of the country after the war proceeded with extensive Chinese and Soviet assistance. Koreans with experience in Japanese industries also played a significant part. Land was collectivized between 1953 and 1958. North Korea, undertook massive state investment in heavy industry, state infrastructure and military strength, neglecting the production of consumer goods.
Although a few efforts were made to increase availability of consumer goods, they remained scarce
Despite being abundant in minerals and hydroelectric power, North Korea was less suited for agriculture than South Korea, with its warmer climate and flatter terrain, but this did not prevent Kim Il Sung from declaring that the country would achieve total self-sufficiency in food Despite all of the repression and ham-fisted Stalinist tactics, North Korea had nonetheless made impressive economic progress in a short amount of time in contrast to South Korea which remained a stagnant, impoverished Third World nation completely reliant on US economic aid.
North Korea was placed on a semi-war footing, with equal emphasis being given to the civilian and military economies. On the ruins left by the war, North Korea had built an industrialized command economy. In 1965, the British economist Joan Robinson described North Korea’s economic development as a “miracle”. As late as the 1970s, its GDP per capita was estimated to be equivalent to South Korea’s. By 1968, all homes had electricity, though the supply was unreliable By 1972, over 200 universities and specialized colleges had been established. By the early 1980s, 60–70% of the population was urbanized.
Decline and Crisis:
In the 1970s, expansion of North Korea’s economy, with the accompanying rise in living standards, came to an end. Compounding this was a decision to borrow foreign capital and invest heavily in military industries. North Korea’s desire to lessen its dependence on aid from China and the Soviet Union prompted the expansion of its military power, which had begun in the second half of the 1960s. The government believed such expenditures could be covered by foreign borrowing and increased sales of its mineral wealth in the international market. North Korea invested heavily in its mining industries and purchased a large quantity of mineral extraction infrastructure from abroad. It also purchased entire petrochemical, textile, concrete, steel, pulp and paper manufacturing plants from the developed capitalist world. This included a Japanese-Danish venture that provided North Korea with the largest cement factory in the world.
However, following the world 1973 oil crisis, international prices for many of North Korea’s native minerals fell, leaving the country with large debts and an inability to pay them off and still provide a high level of social welfare to its people. North Korea began to default in 1974 and halted almost all repayments in 1985. As a result, it was unable to pay for Western technology.
Worsening this already poor situation, the centrally planned economy, which emphasized heavy industry, had reached the limits of its productive potential in North Korea. By the mid to late-1970s some parts of the capitalist world, including South Korea, were creating new industries based around computers, electronics, and other advanced technology in contrast to North Korea’s economy of mining and steel production.
Despite the emerging economic problems, the regime invested heavily in prestigious projects, such as the Juche Tower, the Nampo Dam, and the Ryugyong Hotel. The collapse of the Soviet Union in 1991 deprived North Korea of its main source of economic aid, leaving China as the isolated regime’s only major ally. Without Soviet aid, North Korea’s economy went into a free-fall. By this time in the early 1990s, Kim Jong-il was already conducting most of the day-to-day activities of running of the state. Meanwhile, international tensions were rising over North Korea’s quest for nuclear weapons. Former US president Jimmy Carter made a visit to Pyongyang in June 1994 in which he met with Kim, and returned proclaiming that he had resolved the crisis. Kim Il-sung died from a sudden heart attack on July 8, 1994, three weeks after the Carter visit. His son, Kim Jong-il, who had already assumed key positions in the government, succeeded as General Secretary of the Korean Workers’ Party
Meanwhile, the economy was in steep decline. In 1990-1995, foreign trade was cut in half, with the loss of subsidized Soviet oil being particularly keenly felt. The crisis came to a head in 1995 with widespread flooding that destroyed crops and infrastructure, leading to a famine that lasted until 1998.
President Kim Dae-jung of South Korea actively attempted to reduce tensions between the two Koreas under the Sunshine Policy, but this produced few immediate results. Since the election of George W. Bush as the President of the United States in 2000, North Korea has faced renewed external pressure over its nuclear program, reducing the prospect of international economic assistance.
In 2002, Kim Jong-il declared that “money should be capable of measuring the worth of all commodities”, followed by some small market-oriented measures, and the creation of the Kaesong Industrial Region with transport links to South Korea was announced. China’s investments increased to $200 million in 2004.
On October 9, 2006, North Korea announced that it had successfully detonated a nuclear device underground at 10:36 am local time without any radiation leak.
Additionally, North Korea was running a missile development program. In 1998, North Korea tested a Taepondong-1 Space Launch Vehicle, which successfully launched but failed to reach orbit. On July 5, 2006, they tested a Taepodong-2 ICBM that reportedly could reach the west coast of the U.S. in the 2-stage version, or the entire U.S. with a third stage. However, the missile failed shortly after launch.
North Korea’s advancements in weapons technology appear to give them leverage in ongoing negotiations with the United Nations and other countries. On February 13, 2007, North Korea signed an agreement with South Korea, the United States, Russia, China, and Japan, which stipulated North Korea would shut down its Yongbyon nuclear reactor in exchange for economic and energy assistance. However, in 2009 the North continued its nuclear test program.
In 2010, the sinking of a South Korean naval ship, the Cheonan, reportedly by a North Korean torpedo, escalated tensions between North and South, as did North Korea’s shelling of Yeonpyeong Island.
Kim Jong-Il died on December 17, 2011 and was quickly succeeded by his son, Kim Jong-un. Tensions between North Korea and other countries increased due to its rocket launches and nuclear bomb testing, and UN sanctions have been tightened.
In late 2013, Kim Jong Un’s uncle-in-law Jang Song-thaek was arrested and executed after a trial; some have argued that Jang was a paid operative of Beijing planning a coup attempt against Kim to replace the existing regime with one that would be more pliant to China. According to the South Korean spy agency, Kim purged some 300 people after taking power
Amid considerable international tensions, North Korea conducted an ICBM test on April 15, 2017, Kim Il-Sung’s birthday. The test failed and the missile disintegrated soon after launch.
On 4 July 2017, North Korea successfully conducted its first test of an intercontinental ballistic missile (ICBM), named Hwasong-14, said to be timed with Independence Day celebrations in the United States.
TARGET – CHINA:
All the noise in the media is about North Korea. The real target is China. When one goes back to the year 1860, we get our starting point to really understand why the US is using North Korea to target China.
China, in 1860, had the world’s largest economy. Between 1860 and 1950, China went through a devastating meltdown, in all its spheres. It lost against Britain, during the Opium Wars, lost land, and soon the European powers were occupying key cities in China. Then the ruling dynasty was toppled in 1912. This was followed by civil war, a brutal Japanese invasion from the 1920s till 1945.
In October 1949, the Chinese, under the leadership of Moa Tse Tung, became victorious and united the country. This very act posed a threat to the dominant power in the world, at that time, the US.
In June 1950, the Americans attacked North Korea from the south. It was loudly proclaimed that it was the North that had invaded. North Korea defended itself poorly, as it did not have enough arms. When the North Koreans were on the verge of defeat, the Chinese poured nearly 1 million troops into North Korea, to help the besieged North Korean army.
The war lasted three years. In this time, nearly a third of North Koreans lost their lives. The infrastructure was completely destroyed. The Americans then withdrew to the border at the 38th parallel. The question is why Korea, at this point in time?
The answer to this question lies in China’s economic growth that is escaping America’s ability to control it. Remember the Rockefeller family motto: “COMPETITION IS A SIN”. And the family’s modus operandi – “It’s better to control it than owning it”.
Following the defeat of the Chinese Nationalists by the Communist Party of Mao Tse Tung, in 1948, the Nationalist occupied Formosa (or Taiwan), and the US backed Taiwan against China. Then came the Korean War of 1950-1953. A few years later, came the Vietnam War, a proxy war between China and the US.
The China Mandate:
It was only in 1970, that covert contacts were established between America and China. The Rockefeller Family had never fully accepted the fact that the Chinese people, some 700million people, no longer purchase their goods and services. Especially for Junior (David’s father), who regularly visited Standard oil facilities inside China, the Chinese Revolution was an upsetting experience. As early as 1955, David has been in the vanguard urging a reopening of trade with China, saying it was “political foolishness “to pretend that 700 million people (consumers) don’t exist. Further, he says, “And you must remember the Chinese are not only purposeful and intelligent, they also have a large pool of people. So they should be able to find ways to get trading capital.” Such things are not missed by David Rockefeller.
The Rockefellers are not fools. They are brilliant and far-sighted planners and plotters who became immensely powerful by devious Machiavellian planning, and by infiltrating, subsidizing and controlling their opposition.
In 1967, China underwent a turbulent time during its Cultural Revolution. Its economy lost focus. Following a severe drought, the country began to experience famine and starvation. In March 1969, a short border war ensued between China and Russia. The economy of China was in very bad shape, its foreign currency reserves were flat. As pressure mounted in Beijing, the hard-liners were gaining power. And they wanted to invade Taiwan to take over its huge wealth, which was derived by heroin sales from the Golden Triangle. The CIA concluded that China was about to invade, while America had its hands full in Vietnam. This could lead to nuclear war. A way had to be found to defuse the situation; a novel solution proposed by a CIA analyst was to help Beijing stabilize its economy with a huge infusion of black gold from President Marcos of the Philippines, reducing the pressure for war.
The Rockefeller family, through Kissinger and Nixon, secretly offered Beijing 25 000 tons of gold (valued at $68 billion in 1972) to be moved into Chinese banks over a period. This would not be an outright gift. The gold would remain an asset base, earmarked for various purposes negotiated in advance. The Chinese banks would be strengthened, the economy would be stabilized, moderates in the Politburo would regain their leverage, and the hard-liners pushing for an invasion of Taiwan would be silenced. No US funds would be involved. As one CIA analyst said, “It was only Japanese war loot, recovered by Marcos, being put to good use.”
This China Mandate opened the door for Kissinger’s secret visit to Beijing in 1971, thus setting the foundation for Nixon’s historic visit to China and establishment of diplomatic relations between America and China.
It was also the time period when America was re-balancing its Eurasian geopolitical game plan. Of the two Eurasian giants, Russia and China, the view from New York was that it was time to side with China, and go against Russia. The aim was to strengthen China and weaken Russia, simultaneously. Within 10 years, Russia was embroiled in the Afghan quagmire, while China was on the verge of its first economic miracle.
Diplomatic relations were established between the two countries, and after the ending of the Vietnam War in 1975, embassies were established in both countries.
In January 1979, Chinese leader Deng Xiaoping went to the US on an official visit, the first by a Chinese leader. American-Chinese co-operation increased in military and economic spheres.
By early 1989, it was crystal clear to New York that the Russian threat has been neutralized. New York’s attention now had turned to China. New York planned to destabilize China, through social unrest. It was now time to do a “regime-change” in China. The early results were mixed. In June 1989, the CIA plans erupted in Beijings’ Tiananmen Square, when thousands of students were demanding political reforms. This kind of protests was the stuff of nightmares for Chinas leadership. The protests were ruthlessly crushed.
China’s economy began to grow at very fast rates. Its energy input increased. Such that, by November 1993, China went from self-sufficiency in oil production, to becoming a net importer. Fearing an awakening giant, the British began publishing articles calling for a breakup of China into several smaller entities.
Britian has stated, repeatedly, that official London is determined to bring about the break-up of China. On May 7 1996, Britain’s Sir Leon Brittan delivered a threat to the same effect, while a guest of the People’s Republic of China, at a Beijing conference sponsored by China’s government. Brittan threatened his hosts with strategic destabilizations of China’s environment, if China did not abort its government’s present form of commitment to building up trans-Eurasia “land-bridge” links to Western Europe and the Middle East. That British diplomatic gentleman made as plain as day, that an international conference, just previously held in Bangkok, Thailand, had been implicitly intended to mobilize South and East Asia forces against China, on this and other accounts.
In this situation, the U.S.’s vital strategic interests are threatened by a coordinated series of destabilizations, ringing China; all coordinated by the British Foreign Service and its intelligence arms. [See map above] These British-fired hot-spots include Taliban operations into Afghanistan, Kashmir, and Pakistan itself. They include the British campaign to coordinate the overthrow of the present government of Myanmar (formerly Burma) on the usual, flimsy “human rights” pretexts. It includes the attempt to induce Japan to perceive itself as taking political hegemony over the northern tier of China (and Mongolia), from the central government in Beijing. It includes the repeated efforts by London and their U.S. assets, to destabilize the uneasy peace between the northern and southern portions of Korea.
America had initiated a policy of reducing domestic manufacturing, and outsourced this to China. A reduction in manufacturing in America would reduce its energy input. This would entail an increasing energy use by China, as it ramped up manufacturing to supply the needs of America. China’s higher oil consumption outpaced its own domestic production, such that, by November 1993, China became a net importer.
Step-by-step, New York was drawing in China into its own global system. But, problems were on the horizon for both. When America attacked Serbia over the Kosovo issue, NATO jets bombed Serbia’s capital, Belgrade. The Chinese Embassy was deliberately bombed by NATO jets.
The Chinese embassy in Belgrade after being hit by NATO missiles. May, 1999
In April 2001, a U.S. reconnaissance plane collides with a Chinese fighter and makes an emergency landing on Chinese territory. Authorities on China’s Hainan Island detain the twenty-four-member U.S. crew. After twelve days and a tense standoff, authorities release the crew, and President George W. Bush expresses regret over the death of a Chinese pilot and the landing of the U.S. plane.
Between 2003 and 2015, the US tried many times to curtail China’s access to oil and natural resources from Africa. The Pentagon even created a new military command to cut China out of Africa’s resources – AFRICOM!
In September 2008, China surpasses Japan to become the largest holder of U.S. debt—or treasuries—at around $600 billion. The growing interdependence between the U.S. and Chinese economies becomes evident as a financial crisis threatens the global economy, fueling concerns over U.S.-China economic imbalances.
China surpasses Japan as the world’s second-largest economy after it is valued at $1.33 trillion for the second quarter of 2010, slightly above Japan’s $1.28 trillion for that year. China is on track to overtake the United States as the world’s number one economy by 2027, according to Goldman Sachs chief economist Jim O’Neill. At the start of 2011, China reports a total GDP of $5.88 trillion for 2010, compared to Japan’s $5.47 trillion.
In 2012, Obama’s “pivot” to Asia” was announced, and his call for “increased investment—diplomatic, economic, strategic, and otherwise—in the Asia-Pacific region” is seen as a move to counter China’s growing clout. That month, at the Asia-Pacific Economic Cooperation summit, U.S. President Barack Obama announces the United States and eight other nations have reached an agreement on the Trans-Pacific Partnership—a multinational free trade agreement. Obama later announces plans to deploy 2,500 marines in Australia, prompting criticism from Beijing. The U.S. trade deficit with China rises from $273.1 billion in 2010 to an all-time high of $295.5 billion in 2011. The increase accounts for three-quarters of the growth in the U.S. trade deficit for 2011.
SOUTH CHINA SEA TERRITORIAL DISPUTE:
11 BILLION Estimated barrels of oil in the South China Sea – value about $550 billion
190 TRILLION Estimated number of cubic feet of natural gas in the South China Sea- value about $38 trillion
$3.37 TRILLION Total trade passing through the South China Sea in 2016
China’s sweeping claims of sovereignty over the sea—and the sea’s alleged 11 billion barrels of untapped oil and 190 trillion cubic feet of natural gas—have antagonized competing claimants Malaysia, Vietnam, Brunei, Taiwan, Indonesia, and the Philippines. As early as the 1970s, countries began to claim as their own islands and various zones, such as the Spratly islands, in the South China Sea, which may possess rich natural resources and fishing areas. In recent years, China has built three airstrips on the contested Spratly Islands to extend its presence in disputed waters, and militarized Woody Island by deploying fighter jets, cruise missiles, and a radar system. China has warned its Southeast Asian neighbors against drilling for oil and gas in the contested region, which has disrupted other nations’ oil exploration and seismic survey activities. To challenge China’s claims in international waters, the United States has occasionally deployed destroyer ships on freedom of navigation operations in the South China Sea to promote freedom of passage.
China viewed America’s increasingly hostile acts in the area as a means to threaten its oil-imports and manufactured exports – as geopolitical blackmail, telling China to “play by the American rules, or else”. This was in 2012. A year later, in 2103, in response to increasing American hostility, China announces the launch of the Eurasian Land Bridge, or what became known as the One Belt, One Road plan. It has now changed to the BRI – Belt and Road Initiative. This was a series of transportation corridors spanning the Eurasian continent, including parts of the Middle East and east Africa. It was China’s answer to America’s increasing threat to blockade China’s maritime trade routes. Secondly, it would help the economics of China, and its partners in this scheme.
In March2015, at the launch of the Asian Industrial Investment Bank, or AIIB, in Beijing, the Rothschild Empire, along with the countries under its control joined this bank. – a deliberate slap-in-the-face to New York.
Between June 2015 and early 2016, New York launched financial warfare against China. The net result was a loss of more than $4 trillion to the Chinese government, its banks and the investing public.
China still did not bow down to the dictates of America. In finding ways to bring China to heel, Washington began playing the North Korean card. To ward off the danger of Washington doing something irrational, China began tightening the screws on North Korea. In April, supplies of crude oil shipments to North Korea were stopped. This was followed by reduced imports from North Korea of mineral resources. The aim was to mollify Washington and pressure North Korea at the same time.
By looking at the map of the Korean peninsula, one can understand China’s fears. Were America to succeed in defeating North Korea, then China would find American troops stationed on its borders. Not something that would make the Chinese leaders sleep at night.
As Zbigniew Brzezinski wrote in his book, “The Grand Chessboard “(1997), for America to dominate and control the Eurasian continent, it would have to control both the western and eastern parts of the continent. Right from 1945, Washington’s game-plan was to station troops on both ends of the continent. We see NATO in Europe, and US troops and bases in South Korea, Guam, Japan and the Phillipines.
China Declares Financial Independence:
Whispering into the ears of the Chinese leadership, London cunningly encouraged Beijing to develop an oil-trading exchange in Beijing. This would be an exchange whereby China would make a market for oil futures – not in dollars, but in Yuan. In order to make oil-sales in yuan more attractive to the oil-exporting countries, who do not wish to hold yuan, a choice is offered to the oil exporters – convert your yuan payments into gold – a very attractive proposition. London knew very well that this would draw a very angry reaction from Washington. This would force Washington to commit to a war against China, on terms not of its own choosing.
Were America to start a war against China, it would leave America vulnerable in the Middle East, thus enabling Israel a much freer hand than what it currently faces. Forget the public speeches regarding America and Israel. They are deadly enemies, ever since the Rothschilds killed Richard Rockefeller – David’s son – in June 2014. Their feud has gone global.
The Rothschilds did the same thing to Saddam Hussein, when in September 2000 he switched sales of Iraqi oil from the dollar to the Euro. Barely 30 months later, Iraq was invaded by America. What is currently playing out now is a repeat of that. But this time, instead of weapons of mass destruction, it is the Korean issue that will be used against China.
THE PETRO-YUAN EXCHANGE:
In early August, news that China plans to launch a yuan-denominated oil futures contract by the end of this year has come as a surprise to many. However, Russia is backing China in this because this move has been coming since Moscow abandoned its quarter-century attempt to integrate with the West, following the 2014 Ukraine crisis.
Beijing’s scheme aims to shift trade in “black gold” from petrodollars to a proposed petro-yuan. This benefits China by making its currency more attractive internationally and providing greater energy security. However, the biggest winners may well be in Moscow. Because any decline in the dollar’s status severely dilutes Washington’s ability to wage economic war against Russia, via sanctions.
As the world’s biggest petroleum producer, Russia is vital to Beijing’s project. And, in turn, as the planet’s largest crude importer and most sizable economy (measured by purchasing power parity), China is the only country with the heft to challenge American financial hegemony.
Of course, Vladimir Putin and Xi Jinping can’t achieve their aims alone because if the petro-yuan is to succeed, other leading oil-drilling nations, will need to come on board. And, while Iran, Indonesia, and Venezuela have indicated their interest in the project, the key is tempting the Arab states to trade in yuan. And this essentially means Saudi Arabian cooperation is the big prize.
Plan of Action
Because, after all, the petrodollar was born in Jeddah in 1974, when the US Treasury Secretary William Simon convinced the Saudis that America was the safest place to park their oil revenue. And this cash flow has allowed the US to live beyond its means for decades.
The key to the coming petro-yuan lies in Moscow. And, if the Chinese currency eventually succeeds in usurping the long-standing petrodollar, Washington will only have itself to blame.
However, in recent years, relations have become frayed, with Washington’s support for its fracking industry crushing petroleum prices and causing severe fiscal pain for the Saudis. Indeed, the primary reason for Riyadh’s developing detente with Russia has been a mutual desire to prevent a further slide in energy earnings. As a result, early October, King Salman made a historic visit to Moscow, where the yuan plan was surely on the agenda.
The roots of the petro-yuan lie in a series of “color revolutions” in the former USSR, which convinced Moscow that the West would never treat it as an equal partner. This culminated in a March 2014 speech, in the Kremlin, where Vladimir Putin addressed over 1,000 Russian dignitaries. But this was no ordinary keynote. Because tensions between Russia and the West were at levels not seen since the Cold War.
Just a few weeks previously, Ukraine’s government had been violently removed and, amid the chaos, Moscow had hastily moved to reabsorb its “lost province” of Crimea – a strategically important peninsula, which had been controversially transferred to Kiev in 1954, when the two formed a union-state. At the same time, pro-Russian protests raged in the eastern Ukrainian cities of Donetsk and Lugansk.
Indeed, ever since the United States imposed anti-Russia sanctions, first in 2012, and the European Union, in 2014, in response to the Ukraine crisis, Moscow has been searching for ways to push back at the coercive measures.
The retaliation toward the EU was relatively straightforward: a food import ban, which has had the positive side effect of significantly boosting the domestic Russian agriculture industry, after initially contributing to inflation. However, due to a much smaller interdependency in trade, it’s proved harder to get even with Washington. Until now that is.
There is little doubt Moscow is hoping to engineer a US economic crisis to cripple its perpetual foe. Indeed, as CNBC also notes: “Russia and China have sought to operate in a non-dollar environment when trading oil. Both countries have also increased their efforts to mine and acquire physical gold if, or perhaps when, the dollar collapses.”
If the Saudis don’t play ball, they risk losing further market share. Especially, after new gas and oil pipelines from Russia to China begin operation next year. And there’s also the prospect that Chinese investors could boycott the IPO of state behemoth Saudi Aramco next year.
Meanwhile, there are high expectations for the petro-yuan. Because anything that weakens the American ability to wage economic war, and destabilize the Eurasian space, is a major win for the Kremlin. Furthermore, Putin may also consider the end of dollar dominance to be an important part of his legacy as he prepares for a likely final term as Russian President.
The imminent introduction of oil trading in yuan is a very bold move by the Chinese, because the US will not give up the basis of its hegemony – the dollar as the world’s reserve currency – without a fight.
The Chinese plan to roll out a yuan-denominated oil contract before the end of this year is a very brave move, since countries who “tried to exit the oil-dollar matrix have met terrible ends. Saddam Hussein wanted to trade oil in Euros and he was killed, Muammar Gaddafi wanted to trade his energy in something other than the US dollar – he was killed.
China, however, has the resolve and the resources to pull-off the de-dollarization, and besides, it’s backed by several major countries which are “resistant to America’s financial cartel,” namely Russia and Iran.
Saudi Arabia was pushed to the de-dollarization crowd only recently by the US itself, which, last year, allowed survivors and relatives of the victims of the 9/11 attack to sue the kingdom over its alleged role in the terrorist acts. There’s decently motivation for the Saudis. They want to float Aramco, they are deeply in debt and they are running out of cash. And they wanted to do an APO [alternative public offering] of Aramco either on London or American exchange, but they prevented from doing so from the legal actions of the 9/11 survivors.
Countries worldwide are tired of funding the America’s “military adventurism by being a party to the ‘Empire of Debt,’ as it’s known around the world – the US dollar,” and therefore, will likely join the de-dollarization movement.
The US financial sector and its military-industrial complex are unlikely to give up the dollar hegemony without a fight, though, as the dollar is both the basis and the main product of America. And the US will use its other favorite tool for it – war. Maybe they will start a war between Japan and China, and maybe they will start a war with North Korea. America will do anything to keep the US dollar as the world’s reserve currency, they will stop at nothing. Because this is the basis of the US empire. It’s not land-based, it’s not based on material goods, it’s based on rent-seeking. It’s based on landing dollars, getting out income and when countries can’t pay they dismantle the assets and take them over. We saw it in Africa, South America, and other parts of the world. This is how America built its empire.
The end of US dollar hegemony has been a consistent message from Russian President Vladimir Putin.
As China is the world’s biggest crude buyer, the new contract may allow exporters to avoid US sanctions by trading oil in yuan. Such countries as Russia, Iran, Pakistan, Vietnam, China and many other Asian countries are interested in that.
The futures contract will allow participants to pay with gold or to convert yuan into gold without the necessity to keep money in Chinese assets or turn it into US dollars.
In conclusion, this is the REAL REASON why North Korea is so strongly attacked in the media, by Washington.
The SOUTH KOREAN VIEWPOINT:
Immediately after the end of the Korean War in 1953, the government funneled loans to a group of businessmen, and this select number built up the largest conglomerates in South Korea. These are known as the CHAEBOL. Most of these chaebol grew with government help and with the help of the South Korea’s largest foreign investor, the Rockefeller Group. South Korea was just another subsidiary within the vast Rockefeller Empire.
Some of the groups are world famous, with such names as Hyundai, LG, Samsung, etc. All closely-held family companies. The founder of the Hyundai Group was Chung Ju-Yung. In the late 1990s, Chung was eager to unite the south with the north. He tried to do it through business with his “sunshine policy”. It worked for a while, until Washington put a stop to it. When Chung resisted this, David Rockefeller ordered his death. The CIA carried it out, and made it look like a suicide, by throwing him off a cliff, in August 2009.
Even heads of states are not immune to this “murder-by-suicide”. Kim dae-Jung was the President of South Korea from 1998-2003. He also was a proponent of re-unification with the north. Shortly after leaving office, he planned to devote the remainder of his life to Chung’s “sunshine policy”. But, Kim too, was “suicided” by the CIA. After these two murders, all those voices calling for re-unification got the message and were effectively silenced.
CHINA & THE 2- FAMILY-FEUD :
The rivalry between the two families began in 1884, over oil markets in Asia. Over the past 130 years, this rivalry took on various forms. Because of their immense fortune, wealth and power, many arms of each family were in a co-operation mode with the many arms of the other family. And, at times, they were in a conflict mode.
Since June 2014, there has been a clean break between the 2 families. Now, they are sworn enemies, and New York is currently winning this fight. Read more about it in our 2-part article called, “The Break-Up”.
Since March 2015, the Rothschild Empire went on to the side of China, against New York. Although no proof currently exists, all we have to go on is the methodology of the Rothschild Family. The Rothschilds were losing in Syria against a coalition of Syria, Iran, Russia and America. None of these nations wanted Israel to be energy-independent.
So, pay-back time. It was the Rothschild faction within the US that was anti-Trump. They also pushed the lie in the media that Trump was helped into office by Russian interference in the US presidential elections. The truth is now emerging that it was the Clinton’s, and the Democratic National Campaign, all funded by Soros , London and British Intelligence.
Rothschild thinking went like this: If we can get America embroiled in a war against China, then it will give us a freer hand in the Middle East, to complete our agenda. America won’t be capable of putting any more roadblocks in our path. Since we are now enemies, let’s hurt them wherever possible! They whispered into the ears of the Chinese leadership to go ahead with the petro-yuan exchange, knowing full well what America’s reaction would be. The die has been cast.
All over the world, financial and military battle-plans are being drawn. All over the world, preparations for trade wars, currency wars, interest-rate wars, civil wars, regional wars, and worse are being accelerated. And now, we are passing through a unique vortex in time. The twilight zone between two eras – from peace and financial stability to war and financial turmoil. You can almost feel it. Like a sudden chill in the air. We knew it was coming.
THE COMING DAYS:
Washington’s game-plan is to apply all sorts of pressure on North Korea, until the leadership cracks, or does something stupid. With China reducing trade with North Korea to almost zero, North Korea stands no chance against American military power.
It is noteworthy that on October 21, President Trump signed an order recalling 1000 pilots to active duty. Two days later, on October 23, Trump signs an executive order to bring the B-52 nuclear-capable, long range bombers back on to a 24-hour alert status. This is the first time that this has happened in the last 32 years! This comes just days before Trump’s trip to Asia and the Far East. Something funny is going on. Watch this space in the coming days.