Putin waded out a path and sounded the death knell of American hegemony!

Spread the love

Author: Rong ping source: official account: Rong Ping (id:rongping898) has been authorized to reprint

More than three months after the outbreak of the Russia Ukraine war, on June 17, Putin expressed Russia’s views on economic issues at the International Conference (the 25th St Petersburg International Economic Forum) for the first time. In particular, he made brilliant discussions on such core issues as the change of world order, Western sanctions against Russia, high global inflation, Russia’s economic strategy, and some of Putin’s ideas and practices are also helpful for China to face the global change.

Putin launched the Donbas military action in Ukraine, which opened a hole in the old unilateral order in the world, proving that some countries in the world are dissatisfied with the global order dominated by the United States and the west, and are taking practical actions. Russia is trying to become a member of revolutionary and structural changes in geopolitics, global economy, technology and the entire international relations system, a destroyer of the global unilateral order and a restorer of the multilateral order.

The first highlight of this speech is that Putin publicly sounded the death knell of American hegemony and shouted to the western world to stop harbouring illusions. The unipolar world has come to an end; The second highlight is that the argument that “inflation blames Putin” in the west is rejected, and the reasons for high inflation are well founded; The third highlight is that Asia and China have become new world development centers, and Russia will always maintain friendly relations with China.

In my opinion, the most valuable thing about Putin’s speech to China is that Russia dares to confront the unilateral order dominated by the west, and at the same time, it has found a way to effectively counter Western sanctions, and has confirmed the decline of American hegemony and the hypocrisy of the western world from the side.

To put it bluntly, the United States and the west do not have the strength and courage to engage in a direct war with a nuclear power. Even if they use radical economic means to impose sanctions, they will inevitably suffer serious retaliation. Russia has dug out a road of struggle that the United States and the West fear, and also opened up the possibility of breaking the situation that China may face in the future.

Scenario 1: what to do in the face of hegemonism?

In his speech, Putin discussed that the end of unilateral order is an objective historical process.

——”Change is a natural process of history. The diversity of civilizations and the richness of cultures are incompatible with rigid political, economic and other stereotypes. The various paradigms imposed roughly and undoubtedly by one center will not work.”

——”What I am talking about is an objective process. It is a truly revolutionary and structural change in geopolitics, the global economy, technology and the entire international relations system. The role of dynamic and promising countries and regions is significantly increasing. The interests of these countries cannot be ignored.”.

With the rise of the interests of emerging economies, unilateral order and hegemonism will sooner or later be overturned, which will not be transferred by anyone’s subjective will.

The Donbas military action launched by Putin is a heavy blow to US hegemonism. He hit the bottom line of the western world and exposed its hypocrisy and weak nature.

The Russian Ukrainian war broke out because the US led NATO continued to expand eastward, threatening Russia’s strategic security. Therefore, the essence of the Russian Jedi counterattack was to break the US military hegemony and establish a military force to compete with NATO, which was to break the global unilateral order and change the situation in which the United States had the the final say.

??

Through the Russo Ukrainian war, Putin found out the bottom line of the west, that is, they will not have a direct conflict with any nuclear power in the world, but choose to use the method of proxy war to try to drag down their competitors through the continuous economic and weapon support to the proxies.

Playing the “Taiwan card” against China is a bit like playing the “Ukraine card” against Russia (of course, the two are fundamentally different). Both are attempts by the west to seize the other side’s key issues to contain the other side, disrupt the other side’s position through constant temptation and extreme pressure, force it to make strategic mistakes, and then make a fatal blow to it.

For China, it is bound to conform to the objective process of the end of unilateral order, and history is on our right side. At the same time, in the face of US hegemonism and strategic harassment, we should not only have the courage to confront them, but also have the courage to safeguard our vital interests. In particular, in terms of military strength, we must accelerate our pursuit to provide strong military support for the settlement of major strategic events such as the Taiwan issue.

??

The recent launching of China’s aircraft carrier 003 and the successful test of land-based midcourse anti missile interception technology are exciting events, which show China’s determination and strength to break through the Western military hegemony. To become a military pole that competes with the United States has not only protected itself to some extent, but also deterred and disintegrated hegemonism.

Therefore, only on the basis of improving military strength can we provide a sense of security for China’s economic development, enable China to have a stronger voice in the international arena, and provide the most powerful guarantee for the settlement of the Taiwan issue.

Scenario 2: what to do in the face of economic sanctions?

Putin has the most say in how to counter economic sanctions.

——Only three months after the imposition of large-scale sanctions, we succeeded in curbing inflation. The data shows that after reaching the peak of 17.8%, the current inflation level has dropped to 16.7% and is still declining.

——In the first five months of this year, the federal budget surplus was 1.5 trillion rubles and the comprehensive budget surplus was 3.3 trillion rubles. At the same time, the federal budget surplus in May alone was close to 500 billion rubles, more than three times higher than that in May last year.

The nuclear bomb level financial sanctions against Russia launched by the United States and Europe not only failed to bring down the Russian economy, but also caused a huge backfire.

??

How did Putin do it? One key move: rouble settlement order. Its essence is to bind with domestic advantageous commodities and settle in local currency. It can be said that Russia has embarked on a successful road of de dollarization.

As Europe is highly dependent on Russian energy, Putin’s settlement in rubles has directly hit seven inches of Europe. Due to the following US sanctions and insufficient ruble reserves, European countries can only reduce the purchase of Russian oil and gas or purchase crude oil and natural gas at high prices from third-party channels. As a result, high inflation in Europe has risen by a large margin.

Russia, on the other hand, exported a large amount of oil through trade with friendly countries during the war, resulting in a sharp increase in export revenue and a record surplus. It can be seen that a move of rouble settlement order has become a powerful mace for opponents to be afraid of.

China should draw lessons from Russia’s anti sanctions.

First of all, it is necessary to promote local currency settlement, which is not only a step to prepare for a rainy day, but also a key step to promote the internationalization of RMB and protect China’s economic security. RMB settlement of import and export can prevent the US dollar from indiscriminately buying Chinese goods, resulting in excessive expansion of production capacity and waste of resources, so that China’s economy will not suffer a sharp decline in foreign reserves due to the depreciation of the US dollar, and ensure China’s economic security.

??

Secondly, local currency settlement should anchor China’s most advantageous commodities and assets, such as China’s high-end manufacturing and rare resources such as rare earth. Local currency settlement must have an irreplaceable anchor with stable value. The US dollar must no longer be the anchor object, but should anchor China’s independent industrial manufacturing, rare resources, or gold. Now there is a view that China’s GDP is anchored. At present, this direction is correct.

Finally, the crisis can be used to capture the bottom of global high-quality assets, such as energy, minerals and agricultural products, so as to make efficient use of external reserves and avoid a sharp decline in external reserves. The combination of high inflation in the United States and interest rate hikes by the Federal Reserve and the return of global funds to the United States will inevitably trigger another global economic and financial crisis, and China, as a haven for funds, will certainly benefit. At the same time, we can use external reserves to select high-quality assets for strategic reserves during the crisis, such as scarce energy, minerals and grain, so as to make up for the weaknesses and weaknesses of China’s economy and prepare for possible future events.

Scenario 3: what to do in the face of inflation?

Recently, the issue and causes of global inflation have been hotly discussed in the public opinion field of various countries. Among them, high inflation in the United States is particularly serious. In addition to Biden throwing the pot everywhere, the White House is divided into two factions, arguing over whether to cancel the imposition of tariffs on Chinese goods.

With regard to the high inflation in the United States, Biden seems to have become a king throwing the pot.

??

First, Yellen and Powell accepted that the inflation of the United States was the fault of its financial sector;

Then there was Vladimir Putin, who claimed that 70% of the price rise was caused by “Vladimir Putin’s price rise”, and Americans “have never experienced this kind of” Vladimir Putin tax “reflected in food and gasoline prices”;

Finally, he threw the pan around the world and said, “some people will blame me for this, but if it is my fault, why is the inflation rate in all other major industrial countries in the world higher than that in the United States?”?

Biden threw the pot, Putin caught it, but also smoothly to get back, and it was very exciting.

Putin revealed the essence of the global high inflation caused by the Western excessive issuance of currencies in the global rush to buy commodities.

——Before this year’s event, the sharp rise in inflation in the commodity market and the raw material market had become a fact. This is the consequence of the long-term irresponsible macroeconomic policies of the group of seven, including uncontrolled emissions and the accumulation of unsecured debt.

——Over the past two years, the money supply in the United States has increased by 38%, printing an extra $5.9 trillion. Over the same period, the EU’s money supply also rose sharply, increasing by about 20%, or 2.5 trillion euros.

——They printed a lot of money. What’s next? Where will the money go? Obviously, we should use money to purchase goods and services from non western countries, which is the direction of issuing additional money. These banknotes have dried up and looted the global market

——By the end of 2019, the import volume of the United States was about US $250billion per month, which has now risen to US $350billion. It is worth noting that the growth rate was 40%, which coincided with the increase in US dollar money supply of unsecured additional issuance in recent years. They print money, spend money everywhere, and use this money to sweep away all goods in the third country market.

——In the past few years, the prices of almost all commodities in the world have been rising, including raw materials, consumer goods, especially food. Many countries, including the United States, continue to import, but the balance between exports and imports has completely shifted.

——In the storm of inflation, many developing countries have raised reasonable questions: when the dollar and the euro are depreciating at a visible rate, why should they use the dollar and the euro to purchase goods? The conclusion is that the economy with dubious foundation will inevitably be replaced by the economy representing real value and real assets.

——In the next few years, the process of exchanging international reserve currencies for commodities will begin. When commodities are increasingly scarce, countries simply have no better choice. They must exchange depreciated foreign exchange reserves for real resources, such as food, energy and other raw materials. This process will undoubtedly further exacerbate the global inflation of the dollar.

??

So, how should China respond to the global high inflation caused by the indiscriminate issuance of us and European currencies?

The worst policy is to raise the price of export commodities, so that the United States and Europe can not succeed in using tariff reduction to ease inflation.

Now the United States wants to alleviate high domestic inflation by abolishing the tariffs imposed on Chinese goods. We welcome this, but China’s exports must end the state of low prices and prevent the United States and Europe from rushing to buy with a pile of “waste paper”. We can consider canceling export tax rebates to stimulate enterprises to raise prices, so that the United States and Europe can not buy China’s cheap goods. Natural inflation cannot be eased, nor can we complete the harvest of China’s wealth.

China’s policy is to import high-tech products in exchange. If the United States and Europe want to import Chinese goods, they must lift the ban on high-tech products.

The hegemony of the United States and Europe lies in that they print money indiscriminately and rush everywhere to buy the goods they need, but impose blockades and restrictions on the export of their own high-tech products. Many developing countries export their own cheap goods but cannot import the urgently needed high-tech products. For example, the chip blockade against China is a direct reflection of the double standards of the United States and Europe.

Now the United States and Europe are experiencing uncontrollable high inflation. China should use this to put forward corresponding conditions to the United States and Europe, such as lifting the ban on China’s high-tech imports. In this way, our independent industrial system can further shorten the distance from the West and achieve the goal of scientific and technological autonomy.

??

The best policy is to accept only gold or RMB to buy goods, and reject us dollar bills.

Although gold can no longer meet the scale of modern international trade, precious metals are still the most valuable natural currency. Even if it is not possible to return to the era of settling trade with gold, it is necessary to have the awareness of independent gold reserve or set the option of gold settlement in international trade.

RMB settlement is the ultimate form of international trade in the future. China is a world factory worthy of the name. Countries, especially developed countries, can not do without made in China. Since they have strong dependence on Chinese goods, we should show our wisdom and courage to settle in RMB, vigorously promote local currency settlement in international trade, and vigorously promote trade and the de dollarization of foreign reserves. In this way, we can reverse the invisible harvest of China’s wealth by the United States and Europe.

Scenario 4: what to do in the face of the food crisis?

The Russian Ukrainian war exacerbated the global food crisis, mainly because both Russia and Ukraine are major food exporters. The war affected food production and harvest, and strengthened the price expectations of important commodities such as fertilizers, resulting in an imbalance between supply and demand and exacerbating the global food crisis.

??

In response, Putin said in his speech that Russia has the ability to significantly expand grain and fertilizer exports while ensuring its own food security and meeting the domestic market.

——However, there are certain difficulties on this issue, which are not caused by ourselves. Yes, formally speaking, Russia’s grain, food and fertilizer exports are prohibited

——The problem is not us. The problem is whether the people in power in Kiev can make the right decision. Let them decide what to do. At least on this issue, they do not need to ask for instructions from masters from overseas, overseas and the other side of the ocean. However, there is another danger: Ukrainian food may be used to pay for weapons, which is too sad.

Ukraine and Russia are the world’s two “granaries”. Ukraine, which is usually inconspicuous, is the world’s fourth largest grain exporter, and its influence cannot be underestimated. Russia and Ukraine account for 29% of global wheat exports, 19% of global corn supply and 80% of global sunflower oil exports.

It can be said that if the Russian Ukrainian war continues like this, the global food crisis will only intensify rather than ease. Europe and the United States are using excessive money to buy food and agricultural products around the world, which undoubtedly exacerbated the food crisis. How should China respond to the unprecedented threat of the global food crisis?

??

Whether it is out of the need for adequate food supply to meet demand in peacetime or for self-sufficiency in wartime, China must firmly put its rice bowl in its own hands.

China has done a good job in grain reserves and ensuring food security. Grain production will remain generally stable in 2022, and both summer and autumn harvests are expected to be bumper. China’s total grain reserves have reached more than half of the world’s, enough to feed 1.4 billion Chinese people a year.

Nevertheless, we should not be careless. We still need to be prepared for danger in times of peace and make correct decisions at the critical moment in order to survive the food crisis safely, especially to prepare for possible extreme events in the future.

The red line of 1.8 billion mu of arable land is strictly observed and implemented, which is the lifeline of China’s food security.

We should advocate the “food saving” action and make our own contribution to tide over the food crisis.

We will strengthen seed security and draw lessons from European countries’ use of seeds to sanction Russia.

We will strengthen our national defense forces, ensure that we will not be invaded by foreign forces, and ensure that China can respond to any unexpected situation.

Food security is the foundation of a country. Both now and in the future, China must firmly maintain its own food supply, especially to establish a self-sufficient system, so as to lay a solid foundation for the stable development of China’s economy.

At the end of the article, the author said:

What Russia is experiencing may be what we need to face in the future. Putin elaborated on Russia’s economic strategy since the Russo Ukrainian war in detail, and gave specific answers from changing the international unilateral order to how to deal with the economic sanctions of the United States and Europe, to the causes of global inflation, and how to explore the road of economic independence.

Putin’s path, including the launching of the Donbas military action against Ukraine and the brilliant counter-measures against European and American economic sanctions, is a powerful impact and challenge to the global unilateral order dominated by American hegemonism. Through the Russia Ukraine war, Putin found out the bottom line of the United States and Europe. They dare not have a direct conflict with a nuclear power. Therefore, we have enough strength and confidence to solve major problems that China may face in the future.

Unlike Russia, China is relatively deficient in energy and resources. We must take advantage of the current period of peaceful development to reserve enough energy, resources and food to meet unexpected needs. That is, in the time window when high inflation in the United States and Europe forces its monetary policy to tighten, and the Federal Reserve’s aggressive interest rate hike may trigger a global crisis, in addition to ensuring its own economic security, China also needs to use its strong military strength as the backing, use its huge foreign reserves to capture the bottom of global high-quality assets, especially energy, minerals and grain, and protect the transportation lines to make up for China’s resource shortage.

Leave a Reply

Your email address will not be published. Required fields are marked *