6 Iran

“Potentially, the most dangerous scenario would be a grand coalition of China, Russia, and perhaps Iran, an “anti- hegemonic” coalition united not by ideology but by complementary grievances. It would be reminiscent in scale and scope of the challenge once posed by the Sino-Soviet bloc, though this time China would likely be the leader and Russia the follower. Averting this contingency, however remote it may be, will require a display of U.S. geostrategic skill on the western, eastern, and southern perimeters of Eurasia simultaneously.” Ironically, the simultaneous opening of a de facto three-front war, even if on the level of economic warfare at present, creates a strategic imperative for the three powers to work even more closely. China is the largest buyer of Iranian oil. Russia provides military equipment and is negotiating far more. Each of the triad—China, Iran, Russia—for reasons of self-survival –have no better option than to collaborate as never before, whatever mistrust or differences, in face of Washington’s geopolitical three-front war.

 Russia and Iran signed a Comprehensive Strategic Partnership Agreement, detailed in 47 articles, twice as many as in the recent Russian–North Korean deal.  This strategic partnership is now set in stone. This partnership aims to solidify even more the interlocking drive of crucial multilateral organizations driven to organize the new multimodal world: BRICS+, the Shanghai Cooperation Organization (SCO), and the Eurasia Economic Union (EAEU).   The wide-ranging strategic Tehran–Moscow partnership boosts collaboration in the security and defense realms, and places particular emphasis on the smooth development of the International North-South Transportation Corridor (INSTC), a trans-Eurasia axis uniting Russia, Iran, and India, solidifying Iran as a key transit hub for Russian gas and goods sold to several Afro-Eurasia partners. The other corridor is the (NSR) across the Arctic, which the Chinese call the Ice Silk Road, or Polar Silk Road. China defines itself as a “near-Arctic state.” Energy infrastructure is an essential pillar of the partnership, and will aim to boost Iran’s fortunes amid a worsening domestic economy. Russia will provide state-of-the-art energy technologies to develop the vast – but still to be upgraded – Iranian energy infrastructure, pipeline networks, and ever-expanding LNG trade. Russia is building about 10 nuclear plants in Iran, thus freeing up oil and gas for export. Russia and Iran are already trading heavily in their own currencies and cryptos while working to perfect a confidential mechanism to totally bypass the Belgium-based global banking messaging system SWIFT. Timing is everything in geopolitics. Iran has emerged as the most powerful military force in the Middle East. Every month, we find that Iran unveils more weapon systems – to the utter amazement of the Pentagon- and to the shock of the Israelis. Plus, we see that same thing with Russia and China. Breaking up Russia-China is hard to do. That would be the real war of choice – simultaneously against three BRICS (Russia, China, and Iran). After all the Rockefeller family is already invested on a do-or-die Hybrid War against BRICS. There will be attempts to disrupt shipping lanes and supply lines – from the Maritime Silk Roads in the Indian Ocean rim land to the Northern Sea Route by the Arctic, including possible false flags along the INSTC. But with Oreshnik now entering the picture, everywhere the Hegemon will try to harass Iran and China they will also have to face Russia. The problem for the Rockefeller family is that the interlocking BRICS/SCO-wide Russia-China-Iran strategic partnerships do have other – kinetic – ideas. The Americans will not be able to sit it out behind the waters of the ocean, this war will affect everyone.

What the West is testing in Iran is a method. What it seeks is a map. The West knows it cannot win in a fair fight. That’s why it does not fight fairly. It infiltrates from within, strikes from the shadows, and uses proxies to exhaust nations until their sovereignty collapses from sheer fatigue. This is nothing new. The West is an empire that exerts dominance through infiltration—not invasion. Assassination instead of dialogue. Collapse brought about by internal erosion of the victim. And yet, the Global South continues to repeat the same mistake: it believes what is happening is a controllable crisis, not a system that must be dismantled. This is not a conflict. This is a predator and prey. And if China, Russia, and the rising world do not fully understand this equation, they will be next on the butcher’s table—not because they are weak, but because they are rising. Rising is their crime. Iran’s pain is merely the opening chapter. The rest of the chapters have already been written. Ukraine is a rehearsal to test Russia. Taiwan is a slow-burning fuse to ignite China. Africa is being ignited—base after base, coup after coup, and false flag after false flag. The West is waging an ongoing total war—even when it calls it “peace.”

And we respond with hesitation—even as we call our response “resistance.” Decolonization is impossible without power. The world will not be rebalanced through conferences, statements, or press releases. It will be rebalanced when the Western Empire no longer feels safe within itself—when its borders feel what ours feel, when its cities are no longer insulated from grave consequences. This does not mean becoming aggressors. It means shattering the illusion that peace can be begged from those who live off war. Taiwan must be reclaimed. Palestine must be liberated.  Not for conquest—but for balance. To accomplish the task. For the sake of truth. BRICS must stop being a polite forum for declarations and become what it was always meant to be: a corrective axis, a protective shield for the South, a hammer of the future, the backbone of global resistance. If the West is waging hybrid war, it must be met with a hybrid uprising—political, economic, cultural, and military. Not on one front—but on all fronts. If Iran falls, we are at the doorstep of war. But if Iran holds out, the spell will backfire on the sorcerer. That is precisely why the West is terrified. This is why they lie, sabotage, and escalate—because, for the first time in generations, they feel the world slipping from their grasp. Let it slip. And if a world war is what it takes to shatter the spine of the white supremacist empire—so be it.  the West is an empire built on stolen breaths, broken treaties, and mass graves. It does not deserve the luxury of dying peacefully in its sleep. This time, the battlefield will not be confined to the Global South.

After the Israeli attack on Iran in June, both Russia and China have begun arming Iran. With fighter jets, air defense systems, and much more. Very little information has leaked about what Iran has received from these two. In addition, Pakistan is also helping Iran- with nuclear cover if needed.

MiG-29 arrived in Iran, Su-35s are on way in significant numbers, HQ-9s are coming in volume, and the S-400s have already been delivered — announced Zohrevand, member of Iran’s Nat Security Commission.  While Iran was taken by surprise by the sneaky Israel attack, it recovered, and is now well prepared for round 2. It has also managed to stabilize its internal position by expelling more than 1 million illegal immigrants, in a bid to reduce potential spies working for Israel and the US. Iran has also promised a devastating response on Israel should it try a round 2.

China’s Subtle Muscle in Iran and Pakistan

 Late last month, the President marked his first official visit to Pakistan. Iran’s head of state was received by PM Sharif in Islamabad. Over two days, the two sides signed 12 cooperation agreements spanning trade, energy, transit, culture, agriculture, and border security. The trip reaffirmed support for Iran’s peaceful nuclear program and its brief war against Israel. The optics and timing of the visit have added to the growing perception that New Delhi and Tel Aviv, once styled as regional enforcers and hegemons, have been tactically and diplomatically checked by Islamabad and Tehran. India was backed as a strategic stronghold to offset China, while the occupation state was empowered to weaken Iran and its allies in the Axis of Resistance.   China significantly contributed to countering the hegemonic ambitions of India and Israel.  Its advanced jet fighters and satellite positioning systems offer Islamabad and Tehran a critical edge against their technologically superior adversaries.  Beijing’s role became apparent during the 100-hour conflict in May when Pakistan claimed to have shot down six Indian aircraft – these victories were heavily aided by Chinese jets and missiles.  China’s support during Pakistan’s clash with India was more significant, rooted in their “all-weather strategic partnership” and historical military cooperation. By contrast, China’s engagement in the Iran–Israel conflict was more limited and not visibly apparent. Beijing’s support to Iran has primarily been economic – oil purchases, trade deals, and infrastructure investment.

US-backed media continue to demonize China as a primary arms provider to states confronting western allies. It credits Beijing with facilitating Pakistan’s air superiority and Iran’s military strikes on Tel Aviv’s installations. Despite this restraint, Beijing’s growing presence, via arms, infrastructure, and alliances, is recalibrating the region’s balance of power, disrupting the dominance once enjoyed by Washington’s chosen proxies. The enemies only understand the language of power — now let them do whatever they want.

Azerbaijan

Russia has seen its influence in the South Caucasus diminish since 2023, when Azerbaijan launched a campaign to ethnically cleanse 100,000 Armenians from the breakaway Nagorno-Karabakh region. When Washington put its nose into the picture, following Israel’s June attack on Iran. Israel used its bases in Azerbaijan to launch attacks on Iran. Further, Israeli jets overflew Iraqi airspace into the Caspian Sea, and launched further attacks on Iran. Both Russia and Iran were furious with Baku-which is a US/British vassal. Azerbaijan is on Ukraine’s side against Russia. The US has jumped into this picture for obvious reasons. It has a chance to cut off any trade and military links between Russia and Iran. This corridor also has a chance to destabilize northern Iran, hoping to breakaway certain parts on north-western Iran.  Iran’s Foreign Minister Velayati added that the Zangezur corridor is not just a trade route, but an effort by NATO to isolate Iran and dominate the region: “Apart from Turkey, which is a member of NATO, the other NATO countries want to be present in this region too. NATO wants to lie between Iran and Russia like a viper, but Iran will not permit it, the Zangezur Corridor is not necessary as a trade route, as Azerbaijan can transport goods and people to Nakhchivan via Iranian soil- The equations and arrangements of this region are not confined to the two countries of Azerbaijan and Armenia. A geopolitical change in the region will relocate the borders of Iran, too. Therefore, we have the right to defend our interests quite strongly,” he emphasized.

Ankara and Tel Aviv: Strategic Beneficiaries

Washington’s scheme also strengthens Turkey’s hand into the region, Turkey can expand influence across the Black Sea–Caspian arc, advancing its Middle Corridor project and with the “Turkic world.” While careful to avoid open confrontation with Russia and Iran. For Israel, the corridor opens new operational depth. Analysts openly float an “Abraham Accords 2.0” extension into the South Caucasus. Baku and Tel Aviv already maintain close security cooperation, with the occupation state supplying arms and intelligence. This positions Tel Aviv to project power into Iran’s north, intensifying surveillance and and planning more provocations, and probing for weak points in Iran’s north. Armenia is increasingly shifting toward western alliances, including deepening ties with the US and the EU, however, without concrete commitments in return. This alignment limits Iran’s diplomatic space but also supports the development of alternative trade and energy routes that bypass Russian and Iranian territories.  By doing so, the US aims to bring Yerevan and Baku under its orbit to detach them from future commitments related to the International North-South Transport Corridor (that connects Russia to Iran and India. Thus, two traditional regional actors from the South Caucasus would ultimately pave the way for the increase of influence of the only regional actor, which is Turkey. If implemented, the Zangezur Corridor will reshape the South Caucasus. Armenia may secure short-term peace, but will hand Turkey and Azerbaijan logistical and military advantages. Iran risks regional isolation unless it forges tighter links with Russia and Armenia, and brings China and India into a common front against the Neo-Ottomanism and the “pan-Turkic arc.” Russia may retain some economic leverage through railway operations, but if the status quo tilts further toward the west and Turkey, Moscow’s influence will erode. 

British Intelligence has been continuously “whispering” into Erdogan’s ears about his “Ottoman “vision, by looking “East” instead of “South” towards Syria, Kurdistan and Gaza. Foolish, ignorant (he does not read!), Erdogan fell for these whispers, and is going for geopolitical grandeur. It is nothing but a trip of greed and ego. The primary winners will be Ankara, Baku, and Tel Aviv – and behind them, Washington.  Due to these above factors, Putin began sending messages to Aliyev-leader of Azerbaijan.

The recent wave of Russian precision strikes across Ukraine has illuminated a critical, yet often obscured, front in the conflict: the energy war. While the immediate tactical goals are to cripple fuel supplies for the Ukrainian military, these operations carry a significant geopolitical message, primarily directed at Baku. For much of the conflict, Azerbaijani energy assets in Ukraine were notably spared, a reflection of Moscow’s once-careful diplomatic calculus in the South Caucasus. However, this restraint has evaporated following a series of aggressive betrayals by Baku. The trigger was most likely the transfer of the Zangezur corridor between Azerbaijan with Nakhichevan under the control of the United States for 99 years. This was not only an economic, but also a strategic challenge for Russia.

In early August, the political leadership in Moscow lifted its previous restrictions, now designating Baku-linked infrastructure as legitimate military targets in Ukraine. Baku has long been a belligerent party, profiting from selling oil and fuel for the Ukrainian war machine while simultaneously funneling weapons and mercenaries into the conflict. The strikes on Baku-linked energy infrastructure immediately degrade Ukraine’s operational capabilities while dismantling the lucrative chains that have allowed Azerbaijan to finance and fuel a war against Russia. Other industrial plants owned by Baku in Ukraine were also destroyed.

7 China

The US conflict with China is primarily an economic war- and it is spread across every sector of an economy- from “over-capacity”, “quality”, “production costs”, “trade” and lastly to tech. As if following a pre-ordained script, the US China trade and tech war escalated to a peak last week when China launched a range of hard-hitting counter measures against the US in retaliation for its provocations, including severe restrictions on rare earth products. Predictably, Trump went into a blind rage and raised import tariff of Chinese goods by 100% while threatening to cancel a meeting with President Xi, which has never been confirmed by Beijing in the first place. The US wasted no time to launch a series of trade and tech sanctions against China immediately afterwards, just like it launched the sneak attack on Iran shortly after its 5^th round nuclear talks with Tehran. The US tightened its chip ban on China, expanding the embargo to cover all semiconductor related software and equipment sales to China, in an effort to completely choke off China’s ability for chip production. Washington expanded its entity list (i.e. black list) to deny high end sales to businesses outside of China that have 50% or more Chinese ownership. It announced a plan to charge million-dollar port fees for any Chinese-operated shipping companies, Chinese-made ships, or non-Chinese shippers with Chinese-made ships in their fleet or on their order books, in an effort to undermine China’s shipping building industry.

Faced with the bad faith from the Trump regime, China retaliated swiftly with a suite of counter actions: Beijing published its latest restrictions on rare earth products to deny any sales of China-sourced rare earth magnets, processing technology, and equipment to foreign military and semi-conductor industry. It revoked import license for US lumber and soybeans. China was the biggest buyer of US soybeans in the past and accounted for over 50% its export. But it has ordered no purchase in 2025. Beijing announced it would charge reciprocal port fees for any US-operated or US-owned shipping companies. China runs 7 out of the world’s top ten container ports and has by far the highest port calls. Though the US builds few ships and few large shipping companies are US operated, US pension funds and asset managers own large shares in some of the world’s top shipping companies like Maersk which are now subject to the port fees. This move directly targets US financial interests. China also tightened up export of lithium ion and graphite anode, critical for green transformation. It expanded the unreliable list (China’s answer to the entity list) to cover more US defense contractors, tech firms, and critical mineral companies. It also launched anti-trust investigation against Qualcomm, a large US chip manufacturer.

The latest tit for tats strongly indicates China is ready to move up the escalation ladder in its confrontation with the US on trade and technology issues. In particular, Beijing’s enhanced rare earth restrictions are expected to deal a massive blow to high tech and military production in the US and its vassals. With the new rare earth restrictions, China flips the logic back to the US. Beijing has announced any non-Chinese companies operating anywhere must obtain Beijing’s approval to export rare earth magnets or semiconductors if those products contain Chinese original rare earth, or if they are produced using Chinese rare earth technology, process or equipment. Beijing is denying all rare earth products, technology, equipment, and technical support to foreign end users it doesn’t approve. Rare earth products are far more complicated than mining itself. The most complicated part of rare earth production is in the processing and refining stage, where China controls over 90% global market share. In the military-critical heavy rare earth segment, China’s control is complete at over 99%. China’s logic on this rare earth ban goes like this: “why should we supply you with this mineral, for you to use to build missiles, which you then use against us. Thus, no rare earth minerals = no missiles.” Beyond military applications, China is tightening control of rare earth products to be used in semiconductor manufacturing. Semiconductor manufacturing is heavily dependent on rare-earth elements, concentrated in a few critical steps in the supply chain. A single Chinese export-license delay in early 2025 forced ASML to quote “weeks-long” lead-time extensions on EUV tools. And chipmakers have seen magnet prices spike to 50 %, and more within a quarter after each prior Chinese quota.

Bottom line is semiconductors cannot be built without rare earths at yield, at scale, or at 3 nm, with today’s technology. Washington tried to stranglehold China’s access to advanced chips, without realizing China sits at the upstream of the most advanced semiconductor supply chain with its rare earth monopoly. People who live downstream typically don’t try to choke those who live upstream. The US cannot change such physical laws.

China’s Historical Semiconductor Breakthrough- The “Golden Semiconductor”

Despite the obvious hype, there is no doubt AI and semiconductors are key drivers of scientific and technological progress for the world for decades to come. As silicon-based chips shrink toward their physical limits, the industry is desperately searching for alternatives to continue the progress defined by Moore’s Law — the trend that Intel co-founder Gordon Moore identified in 1965, predicting transistor counts would double roughly every two years with minimal cost increases. New materials are being explored to replace the Silicon on which the semiconductors of today are built. Photonic chip, using photon (particles of light) for data processing and transfer, is one option. Another option is to use the wide band gap materials such as Gallium Nitride (GaN), Silicon Carbide (SiC), and Indium Selenide (InSe) to replace Silicon to process and transfer data faster and more efficiently – these are called third generation semiconductors. Similar to Silicon, third generation semiconductors use electron for data processing but due to their physical properties, they are able to deliver higher performance with lower energy consumption. Many of the processing technologies used in silicon chip production can be used for the production of the third-generation chips. China has invested heavily in both photonic and third generation semiconductors, especially since the US tech embargo has affected its ability to build leading edge Silicon chips.

Of course, it is far too early to pronounce the end of the current silicon-based semiconductor supply chain. Creating a perfect wafer is only the first, albeit critical, step. The magic of a modern chip lies in patterning trillions of transistors onto that wafer with nanometer precision. This process depends on a mind-bogglingly complex and expensive ecosystem that China has yet to master domestically, including the EUV lithography machines. Furthermore, the global semiconductor industry is a multi-trillion-dollar behemoth built on a silicon-based infrastructure that has been optimized over the past 50 years. The 5cm InSe wafer is a stunning proof-of-concept, but it is a world away from matching the 12-inch wafers that are the standard in modern fabs. Transitioning the industry to new material will take years and hundreds of billions of dollars, with significant challenges in yield, cost, and reliability. The true significance of this breakthrough is not that it renders silicon obsolete, but that it provides China with a powerful, sanction-proof path to developing next-generation technology for key strategic sectors where performance is paramount, and cost is secondary: The real losers are the sanctions, designed to trap China in the silicon paradigm, which it now has a credible path to sidestep.

China has not killed the silicon chip. However, the undeniable truth is this – a significant scientific breakthrough has occurred, and its geopolitical implications are profound. China has not ended the chip war, but it has successfully opened a new front — one fought not with geopolitics and supply chains, but with fundamental materials science. This achievement is a clear signal that a strategy based solely on containing an adversary’s access to existing technology is doomed to fail. The future of computing will be determined not just by who can etch the smallest lines on silicon, but by who can master the atomic intricacies of the materials that will replace it. Currently, China produces some 60 % of the globe’s semiconductors.

A week back, under pressure from Washington, the Dutch government took over a Chinese semiconductor company-Nexperian. Its main factories are in China. In retaliation, China has told the company not to export any chips with immediate effect. Now, 3 days later, car makers in the EU and the US are in panic mode. Nexperian makes chips for cars, TVs, computers, smartphones, and a range of appliances. Stocks of chips will run out by year-end which will force car companies, and other consumer products companies to shut down. Talk about sanction boomerang. China’s strategic bet is that it will close its advanced chip gap faster than the US and its vassals can close the rare earth and reindustrialization gaps. It is also betting the cost of the US reinventing the rare earth wheel will be higher than the cost of China’s building a self-reliant semiconductor supply chain. Lastly, Beijing is betting it can execute better and have better infrastructure, talent, capable bureaucracy to deliver on its industrial policy more effectively than its competitor. Through the sweeping sanctions, China denies the US any ability to negotiate from a position of strength. Now, Washington pressured the Dutch government to “take-over” a Chinese tech firm in the Netherlands. Obviously, the Dutch now face the wrath of China. The price will be high.

Finally, a group of high-powered American business leaders toured China, and what they saw shocked them. Ford Motor Company CEO Jim Farley and other top business leaders are “terrified” over China’s breakneck technological advancements, warning that the Asian superpower’s innovations could crush American companies if they don’t act fast. Farley, after touring Chinese factories, was left reeling by the cutting-edge tech packed into their vehicles – including self-driving software and facial recognition systems. “Their cost and the quality of their vehicles is far superior to what I see in the West – -“, we are in a global competition with China, and it’s not just EVs. And if we lose this, we do not have a future at Ford,” Farley warned. The Chinese aren’t just outpacing U.S. car companies. Greg Jackson, head of British energy supplier Octopus, described a jaw-dropping visit to a “dark factory” churning out mobile phones with barely a human in sight. “We visited a dark factory producing some astronomical number of mobile phones,” Jackson told the outlet. “The process was so heavily automated that there were no workers on the manufacturing side, just a small number who were there to ensure the plant was working.

Australian mining billionaire Andrew Forrest scrapped plans to build electric vehicle powertrains after witnessing China’s dominance firsthand.  Forrest described futuristic factories where robots rise from the floor, assembling trucks with zero human involvement. “I can take you to factories [in China] now, where you’ll basically be alongside a big conveyor and the machines come out of the floor and begin to assemble parts,” the titan said. “And you’re walking alongside this conveyor, and after about 800, 900 mts, a truck drives out. There are no people – everything is robotic.”

The humanoid robotics market could explode into a $5 trillion industry by 2050, driven by supply chains, maintenance, and support networks, with a surge in adoption by the late 2030s. Over 1 billion humanoids could be in use by 2050, with 90% in industrial and commercial roles.
Beijing has reciprocated every hostile US trade and tech salvos –

• It has put out an “Unreliable List” against US “Entity List”
• It has imposed export control on rare earth in retaliation of chip ban
• It’s imposing export controls in lithium ion batteries and graphite anode in retaliation of US threats on jet engines and computer software
• It has imposed port fee on US-operated and owned ships, fully reciprocal to US measures against Chinese shippers and ship-building industry
• It has stopped buying US farm and energy products from soybean, corn, beef to crude oil and LNG in retaliation of US tariffs
• It has launched anti-trust investigations against Qualcomm and Nvidia in response to the Section 301 investigations against Chinese firms
• It is also dumping US Treasury as the US threatens financial warfare

China is doing all this from a position of strength. China’s economy grew 5.2% in the first three quarters of 2025; its total exports grew 8% despite a 27% decline in export to the US; China’s stock market went up by 34% year to date, double that of the US. US trade now accounts for less than 10% of China’s export. And there are few things Beijing needs from Washington. China will generate over a trillion dollar in trade surplus this year. It has the world’s largest foreign reserve at over $3.3 trillion and has the largest gold holdings. The US has $38 trillion in debt.

There are many economic levers Beijing has not even used in the trade war so far –

• Its 60-80% global share in key starting materials (KSM) in drug industry
• Its 40-60% share in active pharmaceutical ingredients (API)
• Its 80% dominance in global generic drugs and over 90% dominance in anti-biotics
• Its leading share in a wide range of critical minerals from graphite, cobalt, aluminum, copper, lithium, to artificial diamonds
• Its leading position in numerous industries and product categories

China’s strengths are built on its role in the global supply chain for critical products modern life relies on.

Trump and his lackeys believe the US can dictate terms to the world because the Americans consumer the most. But in a world where the nation with the stuff goes to war with the nation with the paper money, guess who will win? People downstream live at the mercy of people upstream. It is a simple and intuitive truism that somehow exceeds Trump’s cognitive grasp. Trump can start the trade and tech war.  Xi is determined he will finish it.

Wall Street is losing

 From now on China has a wealth of possibilities to leverage its global trade to promote the internationalization of the Yuan. Yet what’s accelerating now is rather the “fragmentation of the international monetary system”. So we should expect increased use of Yuan in payment settlements and as “a store of value”; that’s already happening all across BRICS. Miao points to the key vector: the Yuan is now “a low-interest currency, while the US dollar is high-interest.” Trump tariffs on all countries have contributed to the appreciation of the Yuan. This high-speed train is now leaving the station: By leveraging China’s manufacturing strengths in sectors such as machinery, electronics, and new energy equipment, China is encouraging BRICS nations and partners to use the Yuan for trade settlement, thereby creating a self-sustaining cycle driven by real trade demand. This is the system the Rockefeller Empire want to regime-change.

• India just raised $500 m in China through a bond issued in Yuan – these are called Panda bonds
• India is now paying for Russian oil in Yuan
• Latest stats show that transactions through SWIFT is down 15 % from last year, the first decline since SWIFT’s inception in 1973.
• The volume of transaction, using the Chinese CIPS system is increasing- in April this year, CIPS hit $1.7 trillion in one day, exceeding volumes on SWIFT
• To counter the Rockefeller/World bank monopoly on financing oil and gas exploration, China has opened a bank that will finance such developments , by issuing Yuan bonds

China is now paying for its iron ore imports from Australia in USD and Yuan- a precedent that will give way to more such deals-effective November shipments. China is already de-dollarizing at nearly breakneck speed. The U.S. dollar’s share of bilateral trade has already fallen from 80% to less than 50%. China is now trading with the world mostly in Yuan – and the petro Yuan is not even in full force. Since the start of the SMO by Russia in Ukraine in February 2022, the Yuan is the de facto Asian reserve currency for Russia. In parallel, Beijing is accelerating currency swaps all across the spectrum and designating more clearing banks around the world. Hong Kong is in a class by itself when it comes to state-of-the-art financial institutions. Hence the connection is inevitable for global investors: all sorts of deals are open in China via Hong Kong, with the added bonus of avoiding Hegemon sanctions. So, from now on Hong Kong will be even more of a Holy Grail for all sorts of Yuan-denominated transactions. Talk about a magnet for finance tech wizards. Hong Kong is already the world’s top market for the offshore Yuan – processing nearly 80% of all settlements.

The two world superpowers are locked in a standoff. While it is currently only a trade war, the economy is the most important factor for a country’s stability in turbulent times. Trump’s statements have significantly impacted the global crypto currency market. Bitcoin fell from around $114,000 to $105,000 — the biggest drop in its history. In one hour, 536,000 traders caught up in margin calls were liquidated. The total amount of liquidation reached $8.67 billion. Against this backdrop, the entire US stock market ended the day in the red. Around 500,000 people lost all their money.

The Gold Equation

Over the past decade, China has been purchasing ever-larger amounts of gold-openly and covertly.

China’s prioritization of gold in its economic strategy aims to reduce reliance on the dollar, gain influence over commodity pricing, and integrate gold into the Belt and Road Initiative to strengthen economic ties with partner nations. As it so happens, gold is playing a key role. China has already established itself as the world’s largest producer and consumer of gold, and is now looking to exert more control over the price. The People’s Bank of China (PBOC) has continued to increase its gold reserves for the third consecutive year in 2025.  Gold purchases are a part of a larger strategy moving away from the nearly century-long hegemony of the US dollar over global trade and finance. PBOC is shifting from US treasuries to gold. In this way, China would gain a more dominant position in global finance and no longer be at the mercy of US sanctions and other financial pressures.  The PBOC is underreporting its gold purchases to the International Monetary Fund. This opacity is deliberate—by quietly shifting reserves from dollars into gold, China avoids alarming markets while progressively building leverage.

The 2022 Russia-Ukraine conflict served as a watershed moment in this transition. When Western nations froze Russia’s dollar-denominated assets, it demonstrated the vulnerability of foreign reserves held in USD.  This precedent accelerated China’s pivot toward gold, with an estimated 15% reduction in dollar exposure within its reserves since that event. The erosion of trust in fiat currencies—particularly the US dollar—has become a fundamental driver of China’s gold accumulation. This mistrust stems from both geopolitical vulnerabilities and economic concerns about long-term dollar stability. China recognizes that gold provides insurance against currency manipulation and sanctions risk. Unlike digital assets on a ledger, physical gold stored domestically cannot be remotely frozen or devalued through monetary policy decisions made abroad. This sovereignty aspect has become increasingly valuable in a fragmented geopolitical landscape. Unlike Western economies that have shifted heavily toward services, China has maintained and strengthened its manufacturing capabilities, creating structural economic advantages that support its expansion. Manufacturing contributes approximately 25% to China’s GDP compared to just 12% in the US. While the West prints money, China produces goods—and backs its currency with gold. Perhaps the most significant development in China and its role in the gold market is its growing control over price discovery mechanisms, traditionally dominated by Western exchanges.

China is restructuring its gold market to challenge the dominance of the U.S. dollar by expanding vaulting capacity, creating new clearing systems, and easing import restrictions. The strategic growth of the Shanghai Gold Exchange includes opening an offshore vault in Hong Kong AND Riyadh, launching new gold contracts denominated in Yuan, and emphasizing physical delivery of gold to reflect real-world supply and demand.

Extreme stress in COMEX´s gold settlement mechanism forced emergency bullion deliveries, exposing the fragility of paper markets and the threat of systemic failure in global gold pricing. Metal and gold exchanges across China are replacing the LBMA’s dominance, as global patterns shift towards physical settlement, with central banks preparing for a dramatic revaluation that could reshape monetary order.

China is now making it easier for international investors to participate in the Shanghai Gold Exchange. In late June, the exchange launched two new Yuan-denominated gold contracts for physical delivery in Hong Kong, where it in Hong Kong run by the Bank of China. The new vault will significantly boost offshore RMB liquidity by enabling gold transactions in Yuan rather than dollars. This also means China can now import gold using its own currency. A stronger Shanghai Gold Exchange internationally could prove highly disruptive to the western gold futures market represented by the COMEX and the LBMA. Gold and silver will be priced from China in the next few years.

The Shift from COMEX to Shanghai Exchanges

The global center of gravity for gold trading has been steadily shifting eastward, with the Shanghai Gold Exchange (SGE) and Shanghai Futures Exchange (SHFE) gaining prominence. By 2023, SGE trading volumes surpassed COMEX, reaching 2,500 tons annually—a remarkable development given COMEX’s historical dominance. This transition represents more than geographic relocation—it fundamentally changes price formation dynamics. While COMEX primarily trades paper derivatives with minimal physical delivery, Shanghai’s exchanges focus on physical delivery contracts that better reflect actual supply-demand fundamentals. The paper gold market distorts true price discovery. China’s preference for physical delivery contracts realigns gold with its monetary essence rather than its speculative character.

China has methodically established control over key elements of the gold supply chain:

• Refining capacity: Approximately 80% of global gold refining now occurs in China, up from 40% in 2015
• Vault infrastructure: Major LBMA-approved vaults have relocated to Shanghai
• Trading platforms: Development of Yuan-denominated gold contracts reducing dollar dependency
• Mining interests: Strategic investments in gold mines across Africa, Central Asia, and South America

This comprehensive approach ensures China influences gold at every stage from production to final pricing. The emergence of Shanghai as a price-setting mechanism rather than a price-taking market represents a profound shift in global financial dynamics. When China effectively sets gold prices relative to the dollar, it indirectly influences dollar valuation on the global stage. This dynamic creates what some analysts describe as a “monetary feedback loop” where higher gold prices signal dollar weakness, potentially accelerating de-dollarization trends. China’s growing influence in gold markets creates ripple effects throughout the global economy, with significant implications for currency regimes, trade relationships, and financial stability.

Impact on the US Dollar’s Reserve Status

The ability to price global commodities in dollars has been a key pillar supporting the dollar’s reserve currency status. As China gains pricing power in gold markets, it erodes this advantage, potentially accelerating the transition toward a more multi-polar currency system. US bond yields rose approximately 50 basis points in 2023 as foreign holdings dropped to 28% of outstanding Treasuries—a concerning trend for a nation heavily dependent on international capital inflows to finance its deficits.

China’s gold market dominance creates self-reinforcing dynamics that benefit its economic position while challenging the US:

• Increased Chinese demand pushes gold prices higher in dollar terms
• Higher gold prices relative to the dollar signal dollar weakness
• Perceived dollar weakness encourages further diversification away from dollar assets
• Reduced dollar demand creates additional pressure on US financial markets
• Higher US interest rates become necessary to attract capital, slowing economic growth
• Economic Divorce and De-globalization Effects

China’s gold market strategy forms part of what analysts describe as an “economic divorce” between major economies reveal. This process involves the unwinding of decades of globalization, with commodity markets becoming battlegrounds for economic influence.

1970s Gold Market	Current Gold Market
US was largest gold holder	China is largest producer
Physical gold dominated	Mix of physical and paper gold
Fixed exchange rates ending	Digital currencies emerging
Western-dominated trading	Eastern price discovery
Lower global debt levels	Global debt/GDP at 355%

The 1970s bull market saw gold increase 8x from its lows. A similar percentage move would imply a potential long-term target around $12, 000/oz.—though such projections carry significant uncertainty. In today’s complex financial world, the manipulation of gold prices is no longer a mere conspiracy theory – it’s an open secret known among Wall Street insiders. The manipulation largely occurs through COMEX and the London Bullion Market Association (LBMA), two major platforms where gold futures and over-the-counter trades are conducted. For decades, these institutions, along with major bullion banks.

The Mechanics of Gold Price Manipulation- How the System Works

Gold price manipulation operates through futures markets like COMEX, where paper contracts representing physical gold are traded. While these markets were initially designed to stabilize prices and ensure the availability of precious metals, they have evolved into tools for large financial institutions to control and suppress prices.

Paper vs. Physical: For every ounce of physical gold, approximately 109 ounces of paper gold are traded on the COMEX. This enormous disparity highlights the extent to which the paper market dominates the pricing mechanism. When a small group of powerful bullion banks flood the market with short contracts, they can suppress the price of gold, keeping it artificially low despite strong global demand.

LBMA’s Role: The LBMA, responsible for overseeing the largest share of gold trading worldwide, operates predominantly over-the-counter (OTC), where trades are less transparent and more susceptible to manipulation. The lack of stringent regulation in this market means that large trades can be executed without public scrutiny, further distorting the true price of gold.

The primary reason for this manipulation is to protect the value of fiat currencies like the US dollar, Euro Sterling and the yen. If gold were allowed to rise to its true market value, it would expose the weakness in these currencies. Since the US abandoned the gold standard in 1971 (and replaced it with the petro-dollar in 1975), the value of the dollar and other fiat currencies has been tied to the confidence of the global market rather than tangible assets. By suppressing gold prices, the two families aim to maintain confidence in these currencies. The sheer volume of paper gold far exceeds the available physical gold, meaning that if there were a rush for physical delivery, many investors would be left empty-handed. With 109 paper claims for every ounce of physical gold, the system is extremely fragile. In the event of a financial crisis or a sudden spike in the demand for gold, the market could collapse, leading to a dramatic increase in gold prices as the true value of the metal is realized. The COMEX and LBMA are dominated by a small group of powerful players who have the ability to manipulate prices. On the COMEX, just 4 to 8 major bullion banks control more than 50% of the market through their short positions. These banks short the market with billions of dollars in contracts, artificially keeping prices low. In early 2023, the top 8 banks held short positions equal to more than 1,000 tons of gold, demonstrating their outsize influence over the market.

This level of manipulation cannot continue indefinitely. The reliance on paper gold contracts that vastly outnumber the available physical gold is unsustainable. Eventually, the discrepancy between paper gold and physical gold will lead to a market correction. For those serious about protecting their wealth, owning physical gold is the safest and most reliable option. It offers protection against inflation, currency devaluation, and the inevitable collapse of the manipulated gold market. This is one of the reasons that is pushing the gold price higher. Many speculators have demanded physical deliveries, instead of settling their contracts in cash. When the other side of the deal insists on physical delivery instead of a cash settlement, then there is a rush to buy the gold in order to settle the contract. And this shortage of physical gold (1 vs. 109) is bound to push the gold price higher. The silver markets are in the same situation as gold.

 The physical market finally “calling the bluff” of decades of paper manipulation. Lease rates in London, normally a fraction of a percent, “jumped up over 39%.” The picture was one of panic beneath the surface. In London they have a 140-million-ounce float, yet they’re trading 600 million ounces a day… There’s over two billion ounces in paper claims out there on a float of 140 million. London is the epicenter of a quiet crisis, where years of “re-hypothecation”—multiple claims on the same bars—are being exposed.  When this paper structure breaks, it will be comparable to a run on a bank. When short sellers can’t find metal to deliver, and borrowing costs soar, margin calls start hitting, they’re not able to get the silver to cover their position. That’s when things begin to get very, very, very interesting. Silver is being mined less each year, and only a fraction comes from dedicated silver mines. At the same time, industrial demand—from solar panels to electric vehicles—is surging. It’s not gold and silver going higher. It is the dollar losing ground and losing value, the currency is “a melting ice cube.”  Retail investors are still heavily exposed to stocks and options, while the big money is quietly moving into hard assets.  That divergence tells the story. The institutions aren’t chasing speculation—they’re moving to safety. And individuals should follow. The goal isn’t short-term profit, it is preservation.

To conclude on China, there is no way that the US can win this economic war against China. Regarding the military domain, the US has fallen so far behind that it stands no chance of winning a conflict with China. A senior Chinese official stated that – “America will fire the first shot against China, but will not be able to fire a second shot.”  Just looking at the immaculate military parade held in Beijing recently, Trump and his boss, David Rockefeller Jnr, became mad with impotent rage. New instructions were given to Trump to change the name of the Department of Defense to the Department of War. Clearly indicating to the world that the Rockefeller Empire’s true nature is being exposed. Trump proudly heralds the ‘Department of War’ while preaching feigned peace and isolationism. It was brothers John D and Nelson that gave the orders for the construction of the Pentagon, in 1941. Their nephew (David Jnr gave the orders for the name change. After all, it belongs to them!) The point is that in today’s circles-in the White House and New York, not only is there no fear of war, but there is this unsubstantiated delusion of American military power. Hegseth said: “We are the most powerful military on the history of the planet, bar none. Nobody else can even come close to it”.  The Anglo-US ‘Empire’ is backing itself into the corner of ‘terminal decline’. Trump is attempting, on the one hand, to coerce into being a new ‘Bretton Woods’ in order to re-create dollar hegemony through threat, bluster and tariffs — or war, if needs be. As the Anglo-US Empire falls apart, the US is lashing out at the world in fury — and is devouring itself through the attempt to re-colonize its own colonies (i.e. Europe) for quick financial shakedowns.

8 India

New Delhi was optimistic about its relationship with Washington.  Modi was among four global leaders to arrive in the US capital for the inauguration ceremony. Modi was eager to extend a warm welcome for the inaugural Quad Summit later in the year, aligning with Trump’s planned visit to India. At the time, the Americans viewed India as a trusted ally in South Asia, capable of protecting US interests and posing a formidable challenge to China. However, the 100-hour in May quickly dashed these expectations. Trump claimed to have helped broker the ceasefire, a claim New Delhi vehemently denied, which further strained mutual trust. Tensions have only escalated since then. Washington’s tilt toward Islamabad became increasingly apparent with the of Pakistan’s army chief at the White House in June, brokering of a a reduction in tariffs on Pakistani exports from 29 to 19 percent, and an oil agreement that enabled Pakistan’s largest refiner, to import one million barrels from Vitol in October. The US position grew even more embarrassing for India when Trump imposed a in response to the country’s dealings with Russia. New Delhi, heavily reliant on Moscow for military equipment, saw further pressure when Trump announced a 200 percent tax on Indian pharmaceutical imports and a 10 percent tax on BRICS member states for their so-called “anti-American” antics.

For India, which sends nearly a fifth of its exports to the US, Trump’s tariffs have also strained ties. Washington imposed two rounds of 25 percent duties following Modi’s decision to maintain Russian fuel imports, accusing New Delhi of funding Moscow’s war effort. Both India and Brazil are founding members of BRICS, the bloc of emerging economies frequently targeted by US sanctions and tariffs.  Their renewed coordination reflects broader shifts in global trade, as emerging nations seek alternatives to US-dominated markets.

Washington’s nightmare: Modi and Xi break the ice

A potential India–China border breakthrough could mark a turning point in Asia, easing decades of hostility while undermining Washington’s grip on New Delhi. In September, India and China have taken a great leap of faith in their mutual efforts to incrementally advance the normalization process in their bilateral relationship. The Sino-Indian rapprochement will be a historic event in world politics. It holds the potential to be a key template in the emerging world order in the 21^st Century. Principally, the two countries agreed to resume direct flights; facilitate trade and investment flow; cooperate on trans-border rivers; reopen border trade via the Himalayan passes; facilitate visas to tourists, businesses, media, and other visitors in both directions; China is reportedly lifting the ban on rare earth and fertilizer exports to India, as well as heavy equipment for making tunnels in mountainous areas. The most sensational development is that the two countries are exploring an “early harvest” in delimitation of boundaries and have agreed on new mechanisms on border management, which will also work towards de-escalation. This is a highly sensitive issue, as Indian public opinion is shaped by self-serving narratives that emerged after the 1962 war and by the idea of establishing a border that never historically existed.

Traditionally, India attributed primacy to its post-Cold War relationship with the US as a hedge against China, which, unsurprisingly, spawned absurd notions that Washington regarded New Delhi as a “counterweight” to Beijing. Suffice to say, Washington’s erratic foreign policies and, specifically, its unfriendly moves recently to curb India’s strategic autonomy came as a wake-up call.   Inevitably, a China–India working relationship anchored on a strategic understanding will do wonders for BRICS. This prospect is already worrying Trump, who has threatened BRICS more than once for allegedly working to dethrone the dollar as the world’s currency.

It is still early to tell, but if the positive trends in Sino-Indian relations gain traction and become a driving force in international politics, it can galvanize the dormant Russia–India–China [RIC] process, which Moscow has been promoting since the idea was first mooted in the late 1990s by the great Russian visionary-statesman late Yevgeny Primakov. Indeed, the correlation of forces internationally has shifted over the past three decades more or less in the directions that Primakov had envisioned with great foresight.

 On the flip side, though, there is a strong pro-American lobby in India with influence over the media, think tanks, academia, and even the Indian establishment and elite community that root for the ties with the US as a defining partnership of the 21^st century. All sorts of vested interests are in play. We have dealt with this particular issue in our previous articles. The Indian elite are “coconuts” – brown on the outside and white on the inside. These elites have been built up by the British over the past 150 years. They are tied to London, and recently with the US. In short, they worshipped the white man. So, it came as a huge shock to these elites when Trump imposed heavy tariffs on Indian exports to the US. They felt betrayed and humiliated. They pressured Mod and forced him to go to meet XI in Tianjin,

Besides, there are phobias regarding China’s intentions, which will take time to wither away. Commensurate with its rise as a global power, China has a growing presence in the regions surrounding India, which is understandable; however, India tends to view it through the security prism – which only adds to threat perceptions. Then there is the complicated Dalai Lama succession issue, where the signs are that New Delhi treads softly to avoid offending Chinese sensitivities. For India, with a century and more of humiliation in its history as a colony, a slavish mentality may seem strange, but the comprador class is a veritable Indian reality. Make no mistake, the Trump administration’s frustration with India is geopolitical.  In anger, to counter Modi’s visit to the SCO meet in Tianjin, we find that Washington wants to exclude Indians from studying in the US. At the same time, word went out to push social media narratives that “Indians are dirty, lack proper behavior, etc.” Justified, but all covered up until now. Things don’t happen by coincidence.

 With India accounting for the majority of H-1B visa beneficiaries, firms face rising costs, client delays, and pressure to shift more work offshore, as Trump’s decision to impose a $100,000 fee shocks India’s IT industry. India accounted for 71% of approved H-1B beneficiaries last year, while China was a distant second at 11.7%. With the steep new cost, firms are expected to restrict cross-border travel, scale up offshore delivery, and accelerate local hiring in the United States. Companies like Tata Consultancy Services, Infosys, HCLTech, Wipro, and Tech Mahindra may see higher costs, client delays, and pressure on margins. We are seeing a new world order on services economics. Ask yourself this question: The world respects China, but not India. Why is that? But, make no mistake – the West loves India due to its anti-Muslim stance and will go easy on India. Indian purchases of Russian oil in Chinese currency indicate another step on the path towards de-dollarization, which countries of the BRICS+ group of emerging economies have been aiming for in an effort to circumvent western sanctions. Part 4 to follow.