This report was originally published by Tyler Durden at Zero Hedge
Nothing continues to scream bullishness – or, less sarcastically, volatility – like the world’s number two and number three superpowers aligning their armies and putting on a show of force to make a strong statement to the United States and fend off “Western Pressure”.
The prescription for volatility becomes even clear when we consider that the United States, Russia, and China are all in a precarious position with one another that has stemmed from, and has implications on, everything from trade to how to handle North Korea.
This military show of force and sign of unity between the two countries is exactly what has been reported by RT just today. Apparently, China and Russia are strengthening their ties in order to make a clear statement to the United States. To do that, Beijing sent a delegation to Russia to show Washington the unity of Russian and Chinese military forces and “support” Russia at the 7th Moscow Conference on International Security.
Chinese Defense Minister Wei Fenghe voiced strong support for Russia during the talks with his Russian counterpart, Sergey Shoigu. While stressing “the united position” on the international arena, the minister said that one of the main goals of the visit was to send a message to Western powers.
“The Chinese side came to let the Americans know about the close ties between the Russian and Chinese armed forces,” Wei said. The RT article continues:
It is General Wei’s first foreign trip since he was appointed head of the Chinese Defense Ministry. The choice of the destination is not a coincidence, but underlines the “special character” of the bilateral partnership, according to Shoigu.
Prior to the visit, the Chinese state-run Global Times newspaper published an article titled “Western pressure brings China and Russia closer.” The report quotes analysts, who believe that the current international environment – including Western anti-Russia hysteria and the looming US-China trade war – will only strengthen the Sino-Russian alliance.
Both nations have been engaged in their own disputes with the West. The NATO military buildup on Russia’s doorstep has already “crossed the red line,” according to Russian envoy to NATO Aleksandr Grushko. At the same time, Russia is at loggerheads with the US and EU over the poisoning of ex-double agent Sergei Skripal and his daughter in the UK. The British blame-game over Russia’s alleged involvement in the incident sparked tit-for-tat expulsions of diplomats.
It is unclear which tension out of all of them involving these countries has pushed these two superpowers to not only move closer together, but to make it public to the United States. But, as the RT article notes, tensions not only surrounding North Korea, but also surrounding trade and the “Russian diplomat shuffle” that has taken place over the last couple weeks are starting to pin the two like-minded governments together.
In addition to this, and at the same time these two countries are getting cozy, China and Russia have also been notably increasing their gold reserves. This follows our coverage from February, where we pointed out that Russia’s gold purchases were surpassing that of China:
- Russian gold reserves are now the fifth largest in the world.
- Russia added 600,000 ounce of gold (18.66 tons) to reserves in January.
- Russia added a record 224 tons of gold to reserves in 2017.
- Since June 2015, the Central Bank of Russia has added over 576 tons of gold to reserves.
- Overall Russian reserves rose from $432.742 billion in December to $447.735 in January.
- Russian holdings of U.S. Treasuries top $100 billion for ninth in a row.
- Gold reserves worth $80.4 billion constitute 17.95% of overall Russian reserves.
As we wrote just two weeks ago, the “decision point” for gold could be forthcoming and the demise of the dollar could finally be on the horizon: Russia and China are increasing their gold reserves while last week China launched the Petroyuan, announcing it would start paying for oil in local currency, and not dollars.
As such, the joint Chinese and Russian show of force could not only be military, but also monetary, in the near future.
Regardless, this armed forces show of force is one notch higher in the tension pegboard for the global political and global economic climate. However, as has happened with volatility as it has increased over the last decade, we won’t be surprised when equity markets shrug off or ignore this news and continue to push stocks to record highs while hoarding today’s overpriced, oversubscribed and money losing Spotify IPO hand over fist.
During the Cold War with the Soviets, it was U.S. technology and massive economy vs. the Russians tiny economy putting everything it had into it’s military to compete with the U.S.
The outcome made sense, the USSR’s economy collapsed since they were incapable of matching us on an economic basis.
This time it’s different. Russian technology/military and Chinese technology/military and economic might are merging together to take on the U.S.
I don’t even consider the EU, Canada, Australia as being viable allies to the U.S. There economies are rotted out, and their military’s are so tiny they won’t make any real difference during a major conflict. In fact, I’m guessing the majority of them will ‘sit it out’ as the US stands totally alone.
The US economy and industry is almost totally rotted out, our military is depleted, still relying on Cold War weaponry for the most part.
I think only around 8% of the US economy actually creates a tangible product, the rest of the economy is basically only money changing hands for ‘services’.
We are 98% dependent on China for rare earth minerals for instance thanks to the EPA.
For the first time in my life, I don’t think America is up to the challenge.
Long term, I seriously question this country’s survival.
It’s Over: Yes, I think it is pretty much over for us and this Once great nation. I have been thinking about all of this for the past 20 years or so and I have been very concerned about things, the country, growth of China, etc, etc and well things are not good my friend, not good at all. And I agree with you about those other 1/2 ass, Mickey Mouse, liberal bunch of buffoons – I have about Zero Degree of faith in them. It is going to be the US vs. at the very least China and Russia but what if Iran and North Korea decides to join the party? We would be FUCKE# big time. Thanks to that Vile, disgusting Muslim rat bastard aka Barry Hussein who gutted the mighty military. Something is in the works. I have heard from reliable source, the military is looking to call up “Retired” pilots and if that is truly the case, boy, not good is all I can say and think buddy. The ICBM’s will be making that long trans-continent trip. . . . . . . . . . . . . . . . . . . . . . .
Despite everything the Russians and Chinese are doing and saying, they do not want to be on the receiving end of US nukes.
Thanks to our nuclear triad, even if they managed to knock out our land based ICBM’s and airfields with our nuclear bombers ALCMs, our submarine SLBMs would lay waste to their respective homelands.
Despite their advances, all three superpowers have M.A.D. to deal with if the nukes fly.
The Russian and Chinese military focus is aimed at neutralizing U.S. offensive capabilities, and having the ability overcome US defenses. Everything they are doing is showing the US they can now hit us, and we can’t stop them.
It’s quite possible, they are doing this knowing they are going to try to ‘knock us out’ economically. A severely economically damaged US may be more dangerous to them than an economically prosperous US.
Look at the massive amounts of gold both countries are accumulating along with the emergence of the petroyuan last week.
WWIII does not necessarily have to involve all out war in order to devastate the U.S. With the creation of the silk road, China is creating economic deals across the globe (excluding the US of course). And in so doing, soaking up all of the remaining natural resources to continue feeding their rapidly growing economy.
“Everything they are doing is showing the US they can now hit us, and we can’t stop them.”
Think with the US having 800 military bases around the globe overthrowing nations at will that their moves might be defensive? The strategy you laid out was called MAD for Mutually Assured Destruction. You hit me, I hit you, no one wins so we don’t fight. It kept the peace for almost 7 decades.
Kevin2, oh so true. The MAD doctrine is the only thing that kept us from fighting the Russians or Chinese on our streets. My question is, “Does anyone anywhere still care about the MAD doctrine?” I say there’s some proxies like Iran or North Korea who don’t care.
The Deplorable Braveheart
They absolutely care. The US doesn’t care as they as abandoned MAD as a strategy adopting “First Strike”. Read this WSJ article. Research it. Obama inherited “First Strike” and continued it.
U.S. Keeps First-Strike Strategy
Obama Narrows the Range of Possible Targets in New National Nuclear-Weapons Policy
Iran, North Korea want “Invasion Insurance”. This is why they desire nuclear weapons.
Nothing about the US Military has been Gutted. Its still the big fat slob of a wasteful budget more than all of the next ten countries put together. And 25% of the annual pentagon budget cannot even be accounted for. Its a pig trough littered with Fraud for the MIC mafia. The term gutted is propaganda to create fear we are ill equipt. Tell the pentagon to find the missing 25% budget before any more budget increases. US military based are like Country club palaced and a bridge to no where.
Well the Neocons on both right and left are happy to take that chance to get the US into WW3 and get sombody elses kids killed to keep their MIC mafia flush with cash so to keep their campaigns coffers full. The USA is Bankrupt financially and morally. And we have 3 year olds running the US Foreign policy. John Bolton is a disgrace nutjob psychopath working for Israehell. War machine profits dictates foreign policy. There is nothing gutted or hollowed out at all in the US military or its fat wasteful budget.
None of the wars since and including Viet Nam has benefited the American People in any form. Its all for the fascist WallStreet Corporations and Banksters. War is a racket.
The U.S. military budget this coming year is a whopping 700 billion dollars.
This is a short, very high level version of how I view the U.S. military and my statement regarding it’s rotted out/depleted.
700 billion doesn’t go very far anymore.
Army: 460,000 soldiers. Active army divisions I think number between 10 -12. That’s around 150,000 combat troops. 40 year old tank designs (upgraded over the decades of course) ancient APCs, too few artillery pieces etc.
Air Force: 76+/- B-52 bombers that are now at least 56 years old. 75+/- B 1B Lancers – Reagan era, half of which cannot fly at any given time. 22 B2 bombers, too few of them built and now over 20+ years old.
Fighters, F-15s, F-16s, F-18s, A10s are still the backbone of the Air Force and the Marines. These planes are ancient, the vast majority of them are flying in depleted air frames. The designers should be given credit for over designing them.
F-22 raptors, only 183 were built, down from the planned 700+ originally budgeted for.
Navy ship numbers are way down, around 275+/- ships. Way to few and old for all of the missions they are expected to carry out.
We now only have around 1500-2000 nukes deployed for immediate use. This number is way down compared to 20 or 30 years ago.
We now only have approximately 400 active Minuteman III ICBM missile silos with one warhead each (down from 3 warheads each). These missiles are ancient, deployed over 40 years ago. Hopefully most of them are still viable.
Our ALCM nuclear missiles launched by our ancient fleet of heavy bombers.
Our SLBM force seems to be the most modern delivery platform of the nuclear triad.
The government is spending a massive 700 billion to maintain old ancient platforms and a overall small military.
When it takes a trillion dollars to develop and bring a new plane into service (F-35) our defense has become cost prohibitive.
It will literally take decades to design, test and implement replacements for all of these aging systems at a staggering cost of many trillions of dollars.
I’m also guessing the numbers of these new and improved systems will be even smaller then what we currently have.
LMFAO !!! 🙂 Hitler and Stalin were the best of friends too !!! See anything in common between these four dictators ???
Presidents for “life” ???
Spoken like a true Russian TROLL !!! LMAO !!! 🙂
They have a symbiotic relationship. China has manufacturing, Russia has energy and they share a large border away from other nations. Both have a security concern with Islamics. Giving them us as a common threat is madness unless its intentional to keep the MIC going. I don’t believe that madness is the driver. Eisenhower warned us.
If WW3 breaks out between the USA VS Russians & Chinese no one wins. The world will have to start all over again.
I’m not worried about it because I’m too damn old to. I’m worried about my Kids and Grand Kids. That worry will only last a short time because I’ll be gone!!!
You are so right. Nukes followed up by bio-viral with technology, manufacturing, hospitals an staff destroyed with someone crawling out of the ashes saying, “I think we won”.
United States adopted the doctrine of the use of low-yield nuclear weapons. A red line has been crossed. The answer followed. atomic bombs Laid on unmanned submarines to break the American plate. Then warned the United States, the answer will follow.
It goes way beyond just the militaries. Russia is now going to accept the Chinese Yuan for oil instead of American dollars. Russia and China protect their natural resources and actually buy up the rest of the world’s used electronics to mine the precious and rare earth metals from. Meanwhile America sells out our resources to who ever will buy them. Why are we not banning the sale of our resources unless there is a surplus. We export huge quantities of oil and petroleum products, then pay to import from other countries. Corporate Greed is what it is all about. Not one drop of American oil should be allowed to leave this country, until there is more than we can use. No precious metals or rare earth metals should ever leave this country. All of our top quality lumber is shipped overseas, while we are sold sub standard materials. Why, because the companies can make more money that way. Americans need to wake up and tell the companies no. It is our materials, in our country and it will have to stay here.
It has been a few years since I built a wood sailboat, but I can direct you to lumber places in Seattle that have all the quality wood you want. You have to have a business license and buy at wholesale meaning you are buying a lot of wood. I built a shop in WA state, most my lumber was #1 or structural grade. You just have to know where to buy it. Don’t expect Home Depot to have the best. If you want A/B plywood or quarter sawn Fir, Home depot will not have a clue. People just accept the crap they sell.
“Americans need to wake up and tell the companies no.”
Our problems are caused by people with no loyalty to the USA.
Alot of what has gone on between Russia and The USA has been largely a show. While we were supposed to be in a Cold War, we were actually keeping Russia afloat financially. The Soviet Union collapsed because America went into a recession and stopped propping up the Soviet State.
The Chinese own too many shopping centers here to bomb us. No, I don’t imagine it’s going to go like that.
China has biotech companies here and they only hire Chinese. There are whole areas in California where the stores have Chinese writing, which is fine; but no English at all, which is not fine. The citizens tried to get the street signs changed to Chinese. Mandarin or Cantonese, it is all Chinese and we will speak it in fifty years.
It is going to be death by migration not death by nukes. Unless we white people take responsibility for more than just beer and football, get serious and become involved in how our Country is run. Do our homework. Become competitive in the real world outside Netflix.
Why Russia is the new boogie man, and why Hitlery sold Russia 20% of our Uranium supply. Russia is that Evil. That will surely show them a thing or 2. Sell them even more Uranium. That will show them whos boss.
Face it, the USA’s biggest weak link are the 3 year old psychopaths running our misguided US Foreign policy all for Israehells benefit. The US Defense budget needs to be slashed by 50%. Its 50% waste fraud and abuse. Look at all the excess military surplus gear sold for pennies on the dollar and the war tools passed down to local municipal PD depts across America. You see the more US Military Bases they can keep open, is like more store Shelf Space to place all the needless War hardware BS. Its all Fraud against the US taxpayer and denial of criticle US infrascriticle.
You see for NEOCONS there is no prosperity in peace. Got to keep their war machine running. Need to put all these loudmouth Neocons right on the front line with a rifle. John Bolton with a rifle and pack, go get them johnny boy.
Being over is close enough, no need to rush it. Calm down take a pill and wait.
When the dollar crashes, the cities will burn and the Grasshoppers will come out and into the rural area.. the ammo will be used up thinning the Grasshoppers… THEN, the Russians will come across Alaska and into Canada while the South Americans will come north. I hope all the sell out politicians will be doomed in their fancy underground bunkers…
Boycott Netflix. One of their largest stock holders is George Soros, And Obama’s Def Sec Susan Rice was just appointed on their board of directors. So when you rent movies from Netflix you are supportung G Soros and his filthy agenda to destroy America. The US population are a bunch of useless ignorant morons destroying themselves when they watch netflix. Every Netflix movie you rent is another nail in American’s coffin.
Russia is resource rich and people poor. China has lots of people but is short on natural resources. I know a lot about Chinese culture and I don’t see that they will have a happy “marriage”.
Remember America had to dragged kicking and screaming into the last 2 LEGAL wars, so I don’t see us taking them on, outside of treaty obligations.
Since WWII every war we have been involved in has been un-Constitutional.
I hope you’re right rellik. The up and coming meet and greet with Un and Trump ought to be enlightening. Too, I read somewhere that Putin’s been invited to Washington. If there is another world war, no one will be dragged kicking and screaming into it. For the first strikes will cause the kicking of a dying man’s feet on the ground and the screaming of all those incinerated yelling out their last breaths.
“Since WWII every war we have been involved in has been un-Constitutional.”
With Wall Street business interests stamped all over it and its getting worse.
The next unconstitutional war will be on American soil and against the American people. Get ready it’s coming.
The war on Americas streets is aleady here and has been for several decades. The false flag 9-11 operation loss of Freedom is well under way. The massive lefty assault on the 2nd Amendment is one if many battles on mainstreet right now. We are fighting a civil war as we speak. Psychological warfare by the MSM propaganda is destroying our value system. So what do you morons go out and do? You go out and rent a Netflix movie to financially support Geoge Soros’ agenda, since he is a large Netflix stockholder. Stupid is. I never have nor will I ever rent a Netflix Movie and neither should you. Boycott Netflix and all of Holywood of pedophiles. Boycott everything Disney also. Pedophile Satan filth.
Resources all over the earth are being used up. Not just here in the US. Forests being logged to make farms. Water being polluted. All in the name of the making money. People being raped by big corporations while the rich sit it out on a pile of cash. But as far as China and Russia. I’m not worried about them. It’s the crazy countries that sorry me. And we don’t need to give more money to the military so they can make Haliburton even richer. $700 million for one plane?!? Screw that. When the military learns how to budget and spend my tax dollars wisely THEN I’ll agree to giving them more. As long as the US military wants to waste my money on stupid, overpriced, high tech junk then screw em.
All we need is nukes. We don’t need to police the world.
If a war does start it will be from the scummy banksters trying to steal Russia or China’s assets. Anyone stupid enough to fight a war for a thieving bankster deserves what they get. All wars are bankster wars.
Waiting for HCKS to chime in about ChiComs in Mexico. 3….2…..1……
China and Russia can find out how close the people are to eliminate their governments’ abilities that China and Russia are dispatched by the Deep State to use to quell the free American people.
Huh? Could you break that down into one simple sentence?