China & Russia Cycles Collide!

China & Russia Cycles Collide!
Crude Oil Action Corroborates…
2016–2017 Should Begin Shift.

 

04/28/16 INSIIDE Track: 

Ducks in a Row

While America has spent the last decade accumulating a massive, insurmountable, obscene amount of debt – enslaving herself to the rest of the world – China has been positioning for an eventual, economic showdown with the West.  In doing so, China is aligning with as many powerful allies as is possible – preparing for a looming financial meltdown in the West.

Individually, those nations could not unseat the U.S..  Corporately, that is another story.

The past 3+ years has exponentially accelerated that process… precisely when cycles projected that would happen (2013–2016).  Since 2013, China has orchestrated the following (not to mention the escalating cyber attacks linked to China’s People’s Liberation Army and its ‘Elderwood Gang’):

BRICS New Development Bank (to ultimately rival IMF & World Bank).  As Putin himself stated back in 2014: “The international monetary system itself depends a lot on the US Dollar… on the monetary and financial policy of the US authorities.  The BRICS countries want to change that…”

AIIBAsian Infrastructure Investment Bank – Similar to BRICS NDB, it started operations on Dec. 25, 2015 (proposed by China in 2013 and initiated in Oct. 2014).   US tried unsuccessfully to prevent Australia & S. Korea from joining.  AIIB boasts 57 members, including UK & many European nations.

— YASRef (joint refining venture in Yanbu, between Saudi Aramco & Chinese Sinopec); registered in Jan. 2012; operational in 2014.

— Aramco (Saudi Arabia) & Sinopec (China) – Jan. 2016 refining deal.  Saudi Arabia is a primary force behind the Dollar’s reserve status of the past 40 years after convincing all of OPEC to price oil in US Dollars in 1975.  However, since the US deal with Iran – in July 2015 – they have become increasingly uneasy with U.S.  (This comes after China & Saudi Arabia – in 2012 – signed a nuclear cooperation deal.)

— 30-year gas deal with Russia, struck in May 2014, for two major pipelines between the two countries.

Shanghai Gold Exchange launches Yuan-based Gold fix on April 19, 2016.

— Yuan to be incorporated into basket of currencies comprising the IMF’s SDR – in October 2016.

…And these are just the Major, global-impacting deals of the past 3–4 years.

This is not to say that China has experienced clear sailing with these pursuits.  The 2014/2015 plummet in oil & gas prices seriously damaged the Russian & Saudi energy deals while contributing to China’s evolving economic & equity downturn (bubble bursting?).

Right now, China is getting all of her ‘ducks in a row’.  This process has not yet reached a tipping point and it could be that China is forced to ‘play her cards’ before she is even completely ready (2017?).  The potential for an economic meltdown looms large… as does the potential for some form of military showdown – perhaps in the South China Sea.

Of equal interest, there are many other deals & connections linking China, Russia & Saudi Arabia – all three of which have suffered severe economic malaise in the past 2 years, as the US Dollar surged and the price of oil plummeted.  It is times like these that often draw sworn enemies – or at least historic antagonists – into an ‘enemy-of-my-enemy-is-my-friend’ relationship of convenience.

I have talked about the dangers of backing one powerful bear (Russia) into a corner.  What about three of them being backed into a corner at the same time??

 

2016–2017 is the culmination of momentous cycles for China, Russia & Saudi Arabia.”

 

Crude Oil cycles bottomed in early-2016 but are expected to consolidate – near the lows – through mid-2017.  In the interim, events in Russia, China & Saudi Arabia (and/or related nations) are expected to plant seeds for future conflict.

 

3Q 2017–3Q 2018 is when the initial intensification of those events is expected to materialize – just as Russia is completing the latest phase of a 40-Year Cycle of geopolitical (and military) shifts in 2016/2017.  Look for the Russian Bear to make its presence known in this 2-year period!