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The SCO Strengthens: Less is More - Rory Hall (13/6/2017)

Image: Chinese Flag with pile of Gold

June 13, 2017

There was another meeting of the Shanghai Cooperation Organization (SCO) that has been overlooked by almost everyone – presstitute media and independent researchers/Journalist.

The SCO has now grown to 8 member nations, with the recent inclusion of India and Pakistan, this represent close to 50% of the global population and some of the resource rich nations on earth. The SCO’s purpose is to strengthen their collective military force and create an economic block outside the dollar hegemony. The Belt and Road Initiative is the economic force and the SCO is the military equivalent of NATO.

As Stephen Leeb recently said, China is becoming the hub of the developing world…how many people do you know, or that anyone knows, that spend a lot time discussing the SCO? How many people know, and I’m now quoting President Xi Jinping, “All member states, old and new, should work in close coordination, deep in mutual trust and increase mutual support in their endeavor to build a community of shared future; featuring equality, mutual support, solidarity and sharing of “will and whoa”. I mean Xi even came up with an American, or English, expression . Source

You can hear, on occasion, this type of language coming from the Western leaders, but it seems to always have an underlying tone of deceit with a splash of thieving overtones. It may be that I am completely blind to what is happening with the SCO and the Belt and Road Initiative, but I do know is this. Russia and China are 100% done with the Federal Reserve Note world reserve currency nonsense and they are building systems to circumvent the entire system. They are even bringing together arch enemies, Pakistan and India, in a demonstration of just how important these projects are to the future of their region.

The SCO membership offers multiple opportunities to Indian diplomacy. First, it provides a platform for India to engage Pakistan in a wider regional setting. Our ties with Islamabad are not going to be permanently frozen as they are now. In fact, the SCO platform may be a good way to unfreeze them by pushing Pakistan to enable India’s overland access to other SCO countries. It is true that Pakistan can always be counted on to cut its nose to spite its face. But some prodding by other members like China and Russia could help and it is difficult to believe that Pakistan will maintain its blockade forever.

Second, it is an opening for India to reach out to China, bilaterally as well as to deal with Pakistan. China is seeking to promote its China-Pakistan economic corridor. But Chinese investments in Pakistan will not provide the returns they seek, unless the Pakistani economy is integrated with the larger South Asian region. China is not unaware of India’s importance as a market and as a destination of its overseas investment. It is for this reason, it has taken a fairly relaxed stance on New Delhi’s rejection of the Belt and Road Initiative (BRI).

Third, it provides India with a hedge for its maritime strategy which emphasises cooperation and developing security networks with the US, Japan, Australia and Vietnam. With the US pulling out of the Trans-Pacific Partnership and its posture on the erstwhile Asian pivot uncertain, India needs to shore up its continental strategy. Even Japan is now backtracking a bit and seeking to reach out to China by supporting BRI and considering membership in the Asian Infrastructure Investment Bank. Source

With the addition of Pakistan and India the SCO has now grown to 8 nations. The SCO website has not yet been updated to reflect this change and below you can see how the structure works. These nations will continue to move-up the ladder until the time comes for a decision to be made as to wether a particular nation joins the SCO – this would be a mutual decision from both parties, the Heads of State Council, representing the SCO, and the nation wishing to join.

• the SCO comprises six member states, namely the Republic of Kazakhstan, the People’s Republic of China, the Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan, and the Republic of Uzbekistan;

• the SCO counts six observer states, namely the Islamic Republic of Afghanistan, the Republic of Belarus, the Republic of India, the Islamic Republic of Iran, the Republic of Mongolia, and the Islamic Republic of Pakistan;

• the SCO has six dialogue partners, namely the Republic of Azerbaijan, the Republic of Armenia, the Kingdom of Cambodia, the Federal Democratic Republic of Nepal, the Republic of Turkey, and the Democratic Socialist Republic of Sri Lanka. Source

What we will see over the next 2-5 years is a melding of the smaller, regional agreements, like the EurAsian Economic Union and the North-South Corridor, becoming part of the Belt and Road Initiative (BRI) while the military agreements between nations become part of the SCO. It appears the Belt and Road Initiative will fall under the umbrella of the SCO. You can not keep what you have unless the proper security is in place. Russia and China know this all to well and it appears these global agreements will be unfolding simultaneously.

As these massive projects continue to gather strength it must be kept in mind the two main players have already incorporated two major components to the success of these projects. Russia and China have built, and are now linked together, two different banking systems that operate outside the U.S. and U.K. controlled banking cabals. Also, these countries have not only been acquiring massive amounts of physical gold they have been encouraging countries along the Belt and Road Initiative to follow suit – most, if not all, of these countries have answered the call.

Within the next 5 years, as these two projects continue to mature we will begin to feel the impact. What must be kept in mind is these projects began years ago; the SCO in 2002, and the BRI in 2013. While the BRI is a lot “younger” this project has a sense of urgency to it that is almost unprecedented. The shear volume of resources being hurled at this development can only mean the Chinese began working on this project the day it was in announced and they have been working around the clock ever since. The BRI ran it’s first shipment from Zhejiang province to Tehran, Iran in February 2016; a 5,900 mile track it made in half the time it took the previous shipment! Less is more!

The Chinese, along with all the nations involved, are well aware of how dire the situation is in the West. They also seem to understand the days of dollar hegemony and military might expressed over the past century are quickly coming to an end and the quicker these infrastructure projects are developed the quicker they can save their respective economies. The U.S. dollar – Federal Reserve Note (instrument of debt) is dying a slow painful death. It seems everyone outside the U.S. and Europe can see this and they are building what comes next. The only question we have is, how embedded into these Eastern projects are the criminals in the West?

Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700 articles and produced more than 200 videos about the precious metals market, economic and monetary policies as well as geopolitical events since 1987. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory has contributed daily to SGTReport since 2012. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Visit The Daily Coin website and The Daily Coin YouTube channels to enjoy original and some of the best economic, precious metals, geopolitical and preparedness news from around the world.

The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.

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