Transcript of the above video: 

As the title of this video suggests, we are discussing an economic pivot towards South and East Asia and this is having tremendous ramifications. And I don't think Americans are quite aware of how important the global South is becoming or has become and will increasingly be economically, as far as world trade goes and again how much - I did a video a while back about what I call the YUASA shift and how I felt like the Silicon Valley Bank collapse was a harbinger if you will or a symptom of, or just sort of an inflection point in my mind that maybe not a correlation to this phenomenon but it marked it on the calendar as to when this what I call the YUASA shift occurred where the epicentre of innovation has been moving West for thousands of years arguably. It sort of started with Rome and it kind of - depending on where you are at - it kind of moves around Europe, but kind of starts moving West into like the early French Empire, what we might call the Holy Roman Empire, and then the Angevin Empire with the sort of the Anglo-Norman, when Henry the Elder and Richard the Lionheart and this type and this Angevin Dynasty sort of had control over this Anglo-French sort of Kingdom if you will in the aftermath of 1066 and then getting into Agincourt and all of this stuff, and then it sort of stays there, and you could argue it sat in London, especially during the British Empire, the epicentre of innovation, but began moving. And it moves over to the American East Coast arguably 150 odd, depending on who you read, how you look at this, and then it moved across and it ended up on the American West Coast in Silicon Valley in terms of what some are calling the Magnificent Seven or the Mag 7; basically these tech stocks, these tech companies are really the driving force of economic innovation. 

I have got to say, Dave Collum, who is somebody I listen to a lot; he's a Professor of Organic Chemistry at Cornell but he has got a really good eye and a keen mind for international economics, geo-politics as noted. These mag 7 stocks, yeah, they represent a lot of economic activity now, but in terms of like industry in the old sense of the term, the sort of Robber Baron if you will sense of the term, how much real economic input are they giving to the real economy of the world? And couple that with, again it seems to my mind the innovation epicentre has now moved to East Asia. We are also seeing a lot of economic innovation happening in the Global South, especially look, there is a lot of action going on in India. They are a manufacturing powerhouse not unlike China; they are going to continue to be. And then we have got other markets here in ASEAN and in what is called BIMSTEC which is another regional grouping sort of around the Andaman Sea and then you've got ASEAN over here which is Southeast Asia, these rings sort of overlap each other if you will and we're seeing a lot of dynamic economic activity occurring there. And I thought of making this video to discuss this after actually reading a recent post on Twitter. We will throw this up on screen it's from VBL’s Ghost. I believe this gentleman's name is Mr. Lanci – I don't exactly know how to pronounce his name - in any event and I've had some interaction with him on Twitter. Some rather pointed interaction under certain circumstances but he seems to be a good sport and he's got a really good insight for a lot of the economics and seems to be somebody that's aware of these forces that are occurring out here in East and Southern Asia and is not sort of ignoring those, or just being unaware of those while talking about sort of an Atlanticist’s version of economic interaction here or geo-politics. He sees the bigger picture is what I am trying to say. 

Quoting directly: "Anybody noting that this won't work is correct. It's a pivot. The compromise will be Chinese Yuan." And he's quoting from Times Algebra which Big News: India asks its Free Trade Agreement partners to conduct trade in Rupees instead of Dollars." Now I'm not disagreeing, well I don't necessarily agree with Mr. Lanci's conclusion that this "all roads end up with Chinese Yuan". I actually don't think that is probably going to happen. I think if anything, we are seeing that the Rupee is going to be used more and look in my opinion, it was not the best move of Trump to kind of put India on the spot, put India in a corner, with respect to its relationship with Russia, especially as it pertained to the transactions involving oil because Russia is accepting Rupees. They're accepting payment for their oil under certain circumstances, it's my understanding in Rupees. Russia is not going to not use that currency, and India is perfectly happy to create further economic output if it benefits them, and if they can get energy inputs, they're going to. So we are looking at a situation that doesn't look too much unlike the situation of the US putting Dollars into the Chinese system in the mid to late ‘90s going into the early to mid-2000s and seeing massive economic output coming out in terms of manufactured goods as well as certain types of services associated with industrialization, and this is going to be a two-way street moving forward. And again, we are also seeing ramifications of this in Southeast Asia, Thailand specifically, because there are a lot of Indian tourists out here, okay. And I have to figure, Bank in Thailand thinks well if we take in some extra Indian Rupees, worst case scenario, we can send it off to the Russians for oil or Rubles which we can buy oil with. 

Again, the point I'm trying to make is there are multiple ramifications to the ongoing circumstantial evolution that's going on out here in East and Southern Asia, okay. Trade systems are reorganizing right now especially in the aftermath of what can only be described as the COVID lockdown - I refuse to get into that narrative that there was really a good reason for what we did beginning of 2020, moving through to even the present moment - but setting that aside, in the aftermath of all of this in the '20s or during the '20s, we are seeing trade routes and trade relationships reorganized. I think again, referring to Dave Collum, he once described certain systems and certain countries as self-organizing oligarchies. Well look, there are self-organizing trade relationships that just occur when circumstances call for them, and we are seeing the reorganization of trade. I like using, I think Alasdair McLeod, he's out there, he's got his own Sub-Stack out there, he used to be with Goldmoney, but he has talked about this as well, the so-called World Island. I think Halford Mackinder's thinking in terms of a framework for how to view this of the World Island, the Homeland if you will, the Rimland, the rest of the world interacting with that. We've seen that with mBridge where the Hong Kong Monetary Authority, Bank of Thailand and the Emiratis Monetary Authority are working with Chinese, People's Bank of China Authorities, to come up with this interoperability in terms of creating a financial system that will better facilitate international trade in light of these changing circumstances. And as a result of that, we are going to see more interaction between these different countries in their own home currencies, and this is a big change. Again I think Mr. Lanci may have a point insofar as yeah, we may see this rebound to the benefit if you will of the Yuan area in certain ways but only by proximity; it's just the fact China is out here trading directly, more closely in terms of geography with India, with Southeast Asia, with Russia, with the rest of the so-called World Island. But as far as there being like an intent to like undermine the Western system or something, I think nothing could be further from the truth because frankly out here on the World Island, everyone would prefer to just industrialize in peace, not have a situation where this is treated like a zero-sum game.

Again, I think that the US's piece of the economic pie can remain as it has always been in terms of the output that augers toward the benefit of the "dollar area" if you will. But that said, the overall pie is getting bigger. Also, major changes are happening in November, specifically mark the date November 22nd, when this "coexistence period" or whatever you call it, is ending or beginning - however you want to look at it - in terms of SWIFT. We are seeing the frameworks, I have called them the railroad network if you will, of international capital changing, in real time, and we're seeing a fundamental change to that with SWIFT and the introduction of this ISO program which again I have discussed in another video, specifically the coexistence period. 

Again, I don't even understand the full ramifications of all of this other than to say we are seeing the systems by which capital moves across the world in trade relationships changing in real time. I don't think anybody knows exactly how this is going to play out, but we will certainly be keeping you updated on this channel as the situation evolves.