On Aug. 25, economist and financial researcher Alasdair Macleod reported that four new Central Asian countries will soon be joining the Shanghai Cooperation Organization (SCO), which will swell this Eastern economic coalition to a massive 3.05 billion people under its umbrella. The four nations receiving the invitation for inclusion are India, Pakistan, Iran, and Mongolia, with observer nation Afghanistan expected to join sometime in the near future.
The original purpose of the Shanghai Cooperation Organization was to allow an international body to mediate disputes between nations over border and energy concerns, along with creating a unified front for America’s global doctrine of a War on Terror. However, as the United States has increasingly used both economic and military force on sovereign countries such as Libya, Egypt, Syria, and Turkey to impose their agendas in foreign policy, the SCO has changed its focus away from a U.S. led cooperative and is evolving itself into a de-Americanized trade organization that will be free from dollar hegemony, and Western financial influences.
There will be a defining geopolitical event next month when India, Pakistan, Iran and Mongolia become full members of the Shanghai Cooperation Organisation (SCO). This will increase the population of SCO members to an estimated 3.05 billion. We should care about this because it is the intention of the SCO to do away with the US dollar for trade settlement.
The SCO is the greatest challenge yet mounted to American economic power, and Russia and China are clearly determined to ditch the dollar. We don’t yet know what will replace it. However, the fact that the Central Bank of Russia and nearly all the other central banks and governments in the SCO have been increasing their gold reserves could be an important clue as to how the representatives of 3 billion Euro-Asians see the future of trans-Asian money. – Alasdair Macleod, Silver Doctors
Shanghai is quickly becoming a primary hub of economic and financial power, even competing or surpassing current hubs such as the City of London, Wall Street, and Frankfurt. Just last week China approved three new bullion banks to function within the growing Shanghai Gold Exchange, and is seeking to wrest price discovery power for precious metals from London just weeks after they closed their 117 year old price fixing window.
When you combine the Eurasian Trade Zone (Russia), the Shanghai Cooperation Organization (China), and the new Silk Road being constructed across the entirety of Asia, the Middle East, and well into Europe, you have the makings of a vast global trade coalition that will encompass between 40-70% of the entire population of the globe. And as the American empire continue to wane in power, and the dollar continues to be rejected by more and more countries, the future of global finance and trade is not one that is being forced upon the world, but is instead being offered as a welcome alternative to U.S. hegemony, where economic weapons can no longer be used to impose a nation’s foreign policy.