Scenario The Rise of the Renminbi – Futures of the US Dollar Supremacy

In this article, part of our series on the possible futures of the US dollar supremacy, we focus our attention on the scenario “The Rise of the Renminbi”, which we deem more interesting in the way it would unfold. In the previous article, we highlighted three different main lead scenarios that could potentially describe the developments that will take place in the future, “The Rise of the Renminbi” being one of them. With this series, trying to understand the possible futures of the US dollar supremacy, we analysed the currency functions (medium of exchange, store of value, unit of account) that make the dollar the necessary currency together with the challenges looming over the petrodollar system, the perspective of the renminbi as a leading …

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Signals: U.S. Sponsored Kurdish-led Border Army in Syria and Responses

Impacts and ConsequencesThe main critical uncertainty related to the American move is first the level of this commitment and then its consistency over time. As a result the survival of the Syrian autonomous region, the Kurdish-led Federation of Northern Syria has also become more uncertain.  The outcome in terms of American regional and global influence is also uncertain.The main other impacts areLower likelihood to see rapidly a constructive peace settling in for SyriaLower likelihood to see the creation of a Federal SyriaRising Middle East tensionRising global tensions, notably with the U.S. on the one hand, Russia, China, Turkey, and Iran on the other.(Nota: The symbolic board has been moved to the end of the analysis and before the sources/signals)Facts and analysisFor …

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The Chinese-Russian Robot and Space Strategic Cooperation (1) – China

On 1 November 2017, Russian Premier Dmitry Medvedev and Chinese Premier Li Keqiang signed a mammoth deal in space cooperation. That agreement involves six space-related areas, such as lunar and deep space, joint spacecraft development, space electronics, Earth remote sensing data and space debris monitoring (“China, Russia agree cooperation on lunar and deep space exploration, other …

The Renminbi on the Tracks of the U.S. Dollar?

China has entered a “new era” where it should “take centre stage in the world” said President Xi Jinping during his opening speech at the 19th National Congress of the Communist Party of China (18-24 October) (Xi Jinping: “Time for China to take centre stage”, BBC News, 18 October 2017). This is poised to have …

Signals: A Russian-backed Congress in Sochi for Future Peace in Syria?

Impacts and ConsequencesIf Russia succeeds in gathering major actors in a congress in Sochi, which we estimate as likely (55% to 70%)Increased likelihood to see, at the end of the process, a constructive peace settling in Syria Increased likelihood to see the birth of a Federal Syria Increased likelihood to see the survival of the Kurdish-led Federation of Northern Syria Increased likelihood to see a serious lowering of tensions in the Middle East and even some kind of stabilisation Increased Russian influence(Nota: The symbolic board has been moved to the end of the analysis and before the sources/signals)Facts and analysisAs stated by Russian President Putin, the overarching goal is now, for Syria, “the political settlement process, with the finalization of the …

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Signal: Russia’s Putin Hosts Syria’s Assad for Working Meeting on Future Syria at Peace

Impact on Issues and Uncertainties ? Degree of influence of Russia on Turkey compared with Turkey’s perception of threat related to a Kurdish polity on its southern flank (near future critical uncertainty)? Finding a compromise on Hezbollah and Iran presence or withdrawal from a future peaceful Syria (near future critical uncertainty) ? Are the root causes that allowed the Islamic State to rise in the region addressed (medium to longer term critical uncertainty)? ➚ ➄ to ➂ Constructive peace for Syria➚ Creation of a Federal Syria➚ ➃ to ➂ Survival of the Kurdish-led Federation of Northern Syria➘ ➃ to ➂ Middle East Tension ➚ ➃ Turkey’s perception of threat➙ Threat to Israel ➚➚ ➃ Russia influence➙ ➃ U.S. influence trial – likely leading to ➙➘ U.S. influence➚ ? ➁ U.S. Russia global tensions ?  Global spread “under cover” of Jihadism➚ ?  Strengthening of al-Qaeda➙ ? Resilience of Islamic …

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Challenges Looming over the Petrodollar System

This article focuses mainly on the petrodollar system, which is at the heart of the U.S. dollar supremacy, and on the challenges it meets. Meanwhile, these trials start outlining potential futures for the international currency system.

Signals: China enters the Fray in the Middle East; Israel Unprecedented Interview; Saudi Arabia…

A new state of play is emerging in the Middle East, which redraws the regional web of influence, following the military victory over the Islamic State in Iraq and Syria and the concurrent and related negotiations for the end of the war in Syria. At the global level, the current jockeying taking place in the Middle East and its result will also have consequences as it impacts perceptions of global players, as well as influence and thus capability. On 16 November, three major diplomatic events centred around Saudi Arabia and Iran’s influence and involving China and Israel took place which impacted this state of play.

The Paradox of U.S. Decline … and the Tensions with North Korea

This article stresses the paradoxical character of a U.S. decline, and addresses the impossibility for the U.S. to accept its demise as superpower. It applies this framework to the case of the 2017 tensions with North Korea, and deduces a possible future path for the U.S. course of action, as well as possible levers regarding …

Signal: Still no Agreement – Iraqis Forces and Peshmergas

Impact on Issues and Uncertainties ➚ ? ➃  Short term – Willingness of Iraq to capitalize further on their military victory against the Kurds, notably capturing Kurdish oilfields (uncertainty)➘ ? Medium to longer term – capacity of Iraq to govern legitimately over its multi-sectarian multi-ethnic population (critical uncertainty) ➚ ➃  /➄ Iraq strength and international support ➘ ➂ Legitimacy of Iraqi Kurdish political authorities and parties➘ Prospects for Iraqi Kurds’ independence and even autonomy ➙ ➃  Iran’s influence in Iraq and in the region ➘ ➃  U.S. influence in the region➘ Middle East American order (Other issues stable as regard to this signal only – a full assessment would need to consider events in Lebanon and Yemen) On 5 November 2017, the ongoing negotiations between the Iraqi forces …

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