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Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label china. Show all posts
Showing posts with label china. Show all posts

Tuesday, June 6, 2017

Chinese investors looking for any and all safe havens out of Yuan as gold imports soar to highest level since 2013

While Chinese regulators attempt to tweak Bitcoin and other cryptocurrency use within its borders, the virtual money is not the only save haven investors are seeking to move into as a way to get out of the Yuan.  In fact, 2017 has once again seen a surge in gold imports and purchases after a slight slowdown last year.

China, the world’s biggest gold market, may boost imports through Hong Kong by about half this year as local investors seek to protect their wealth from currency risks, a slowing property market and volatile stocks, according to the Chinese Gold & Silver Exchange Society. 
Mainland China is set to import about 1,000 metric tons from the territory in 2017, said Haywood Cheung, president of the century-old exchange in Hong Kong which trades physical gold and silver. That compares with net purchases of 647 tons last year and would be the biggest since 2013, data from the Hong Kong Census and Statistics Department compiled by Bloomberg show. - Bloomberg
With the ongoing frenzy in the cryptocurrencies encompassing not just China, but all of Asia, gold is looking like a under-valued asset in comparison to Bitcoin which is now more than twice the price of an ounce of gold.  And couple this with geo-political chaos in the Middle East and in Britain over the past month, and it appears more and more that trust in sovereign currencies are losing favor as the shift to alternative wealth protections outside the Yuan had become a high priority.


Friday, June 2, 2017

China in process of finally destroying the petrodollar by negotiating an agreement with Saudi Arabia to denominate oil in Yuan

Ever since 2013 when Russia and China began to buy and sell oil in a currency other than the dollar, the clock began to tick on U.S. hegemony over the global financial system.  This is because ever since 1973, the world has been forced to use the petrodollar system and function under a singular reserve currency that for the first time in centuries was not backed by a precious metal.

And subsequently over the next four years, the crack initiated by both Russia and China has begun to spread, with not only Moscow becoming the world's leading producer and distributor in energy, but also in agreeing to sell their oil and natural gas in both Rubles and Yuan.  And this left the last remaining roadblock to completely destroying the petrodollar being the stability and unity of OPEC nations who have stood firmly with the United States in holding onto that 1973 agreement.

However this final hurdle for the East in their battle against dollar hegemony may soon be achieved as China is currently in negotiations with Saudi Arabia to have oil also to be sold in RMB.

China is currently modifying the terms of its oil trade with Saudi Arabia. Specifically, China is working on a deal to pay for Saudi oil using Chinese yuan. This effort poses a direct threat to the security of the dollar. 
If this China-Saudi deal happens — yuan for oil — it’s another step closer to the grave for the petrodollar, which has dominated global finance since 1974. You can revisit Jim Rickards article about the Assault on the Dollar, here
To recap, the petrodollar is weakening because the dollar is losing power as the world’s reserve currency. This is similar to the way pounds sterling gradually fell out of favor during the decline of the British Empire. The decline may take a long time, but what we’re seeing today is another step in the death march of the dollar. - Daily Reckoning
The entire foundation of the dollar being designated as the global reserve currency today is due to its ties to oil, and in particular, to the agreement that OPEC nation force customers to buy their oil only in U.S. dollars.  But once this agreement is breached, then not only will the dollar likely lose its status as the singular reserve currency by de facto rejection, but the U.S. economy and financial system will collapse because the only thing propping it up is the ongoing need for foreign countries to have to buy dollars in order to purchase energy and other commodities.

On the surface the U.S. doesn't appear to be worried about losing its reserve currency status, but this is far from the truth when you understand that most of the wars that the U.S. has engaged in since 2001 have all been about protecting dollar hegemony, and trying to keep Russia and China from succeeding in their plans.

Tuesday, May 16, 2017

U.S. runs the threat of losing dollar hegemony if they don't join in on Silk Road according to economist

Following last weekend's Belt and Road Forum, Yaroslav Lissovolik, the Chief Economist for the Eurasian Development Bank, stated that the Silk Road project will have the power to wean member nations off the dollar, and allow countries to use their own currencies in direct bi-lateral trade.

Ironically for the U.S., who desperately needs the rest of the world to continue using dollars as the global reserve currency, their rejection of joining in with the Belt and Road initiative could actually hasten their downfall as the project will provide the perfect opportunity for a critical mass of de-dollarization.

According to chief economist of the Eurasian Development Bank Yaroslav Lissovolik, the implementation of the project will help to reduce the dependence on the US dollar and increase the role of the national currencies in Eurasian countries. 
"The implementation of such a megaproject could be used to increase the role of national currencies, contribute to the de-dollarization of the countries in Eurasia and reduce their dependence on the US dollar. In addition, it could help increase the role of other currencies, especially those of emerging markets," the expert said during a conference, organized by Rossiya Segodnya International Information Agency. 
According to Lissovolik, the initiative could help create "new reserve currencies and strengthen the yuan as a reserve currency in international financial relations." 
"This issue is very important, because it gives a chance to partially affect the financial architecture of Eurasia," he said. - Sputnik News

Thursday, May 11, 2017

Chinese central bank intimates that the Silk Road will be the means to wean the world off dollar hegemony

On May 11 Zhou Xiaochuan, a governor for the central bank of China, penned an article in which he emphasized that one of the key roles and purposes during the Silk Road construction is to accommodate loans and financing between member nations along the route using of their own bi-lateral currencies.

Citing the fact that having to use the dollar as a medium of exchange between different currencies is a hindrance to efficiency and would play a factor in causing currency instability and fluctuations, the representative of the central bank noted that the creation of this global trade route should not, and will not be simply a one-way street in which decisions are made through a singular authority.

China's central bank governor Zhou Xiaochuan said using local currencies for Belt and Road investments and financing will help reduce exchange rate fluctuations and ensure financial stability in those nations. 
Countries along the Belt and Road routes should promote financial connectivity to optimize resource allocation and provide a long-term and reliable backing for regional constructions, Zhou wrote in an article published on Thursday in the central bank's biweekly magazine China Finance. 
"Investment and financing shouldn't be understood as one-way support. The initiative is to build a common community with risk and benefit sharing through extensive consultation and joint contribution," he wrote. 
The infrastructural projects should be market oriented and ensure sustainability, the governor of the People's Bank of China (PBOC) noted. 
"China has explored a way of development financing." Zhou cited the China Development Bank as a good example in integrating resources, bridging the state with market and operating independently from government subsidy. - Sputnik News

Wednesday, May 10, 2017

China owned metals exchange to apply to take over London Silver Fix

Yesterday we wrote about the fact that the London Metals Exchange (LME), a Hong Kong based subsidiary, was in the process of opening its own gold and silver futures market in London with the intention of providing both cash and physical settlement of precious metals.

Now on May 10 the news just dropped that the LME was applying to take over and run the London Silver Fix, and replace the group (Thompson-Reuters + CME Group) that had cancelled their contract with the LBMA just a few months ago.

The London Metal Exchange (LME) will submit a proposal to take over the London silver fix, a senior executive said on Wednesday, the first company to publicly express interest in replacing the current operators of the price benchmark. 
James Proudlock, managing director and head of market development for the exchange and its clearing business, said the exchange would take part in the process after a request for proposals (RFP) was recently issued to find a replacement for CME Group and Thomson Reuters. 
Those companies said in March they would step down from providing the silver price benchmark auction less than three years after successfully bidding to provide the process.
"There is a silver RFP for the silver benchmark. As a metal exchange, we will participate in the RFP," said Proudlock. - Reuters
China already controls the world's largest physical gold market out of the Shanghai Gold Exchange and this potential takeover of the West's futures market could see the Far Eastern economy achieve a dominating position in both the paper and physical global markets.

Tuesday, May 9, 2017

China to challenge both the LBMA and Comex through the creation of a new gold and silver futures trading platform

The London Metals Exchange, which is a Hong Kong owned subsidiary out of London, is ready to take on the Western futures markets by introducing their own gold and silver trading platform starting on July 10.

This new program by the LME will function on the London markets and provide a fully functional futures trading market in which investors can settle for both cash, or physical gold and silver delivery.

London Metal Exchange, a subsidiary of Hong Kong Exchanges and Clearing, will launch gold and silver spot and futures trading in London on July 10 in a bid to capture the increasing demand for trading of precious metals in London, the exchange said on Monday. 
The LME gold and silver product will launch at a time when HKEX is planning to introduce gold futures in the third quarter of this year should it secure approval from the Securities and Futures Commission. The trading in the two markets however, would remain separate, and there will be no cross trading. 
“The HKEX and the LME gold products would be traded in different markets and different time zone,” said Kate Eded, LME head of precious metals who was speaking at a workshop in Hong Kong on Monday. 
The gold and silver contracts to be launched at the LME would be traded in US dollar which will include spot trading and trading of future contracts with a maturity of up to five years. Investors could choose cash or physical settlement. Five banks including Morgan Stanley and Goldman Sachs would help quote prices to maintain liquidity of the markets. - South China Morning Post
Unlike the LBMA, and especially with the U.S. based Comex, these markets are primarily used for derivative paper trading and rarely perform any actual metal deliveries.  And with the LME being tied to both Hong Kong and London, the potential for China to eventually usurp control over the global price for gold and silver from the LBMA and the Comex moves another step closer as true metals investors will find it more favorable to migrate to an exchange that deals with physical deliveries of actual metals.

Friday, May 5, 2017

As gold demand comes down 18% globally for Q1, China and India are still buying like crazy

On May 4 the World Gold Council reported their year over year Q1 numbers for gold demand and saw a huge global decline of 18% from the prior first quarter in 2016.  However, this drop only appears to be primarily in the West as both China and India saw large spikes in buying during the same period.
A slower pace of central bank buying helped push gold demand down 18% year-on-year in the first quarter, according to the World Gold Council
Gold Demand Trends quarterly report showed global gold demand was 1,034.5 tonnes, with the year-on-year decline reflecting the strength of the first quarter of 2016 (which was the strongest ever first quarter). - Barrons
Chinese Q1 numbers:

China's demand for gold bars and coins soared 30 percent year-on-year to 105.9 metric tons in the first quarter of this year, the fourth strongest quarter on record, according to a report released by the World Gold Council on Thursday. 
Overall demand for gold in the Chinese market grew 8 percent year-on-year to 282.4 tons, making China the world's top gold consumer, according to WGC data.
Global demand for gold in the quarter was 1,034.5 tons, an 18 percent year-on-year decrease from the record high level recorded for the first quarter of 2016. - China Post
Indian Q1 numbers:
Gold demand in India increased by 15 per cent during the first quarter of 2017 to 123.5 tonne, signalling a return of optimism in the industry, according to World Gold Council (WGC). 
The total gold demand in the country stood at 107.3 tonne in the January-March of 2016, impacted by jewellers' strike over excise duty introduction. - India Times

Tuesday, May 2, 2017

Japan to join China in weaning Asian economies off the dollar by facilitating direct yen currency swaps

Despite the fact that Japan is lacking a equivalent payments system to SWIFT like China now has, they will soon be joining the world's second largest economy in helping to wean the rest of Asia off the dollar by facilitating direct bi-lateral currency swaps.

Focusing primarily on the ASEAN economies, and jumping in as a competitor to the Yuan's growing dominance in the region, Japan is preparing to introduce a new program that will seek to establish currency swap agreements with most Asian countries that will include allowing them to use the Yen as a currency reserve, and even as a medium of exchange to buy or sell dollars.

Image result for japan currency swaps
Japan seeks to establish bilateral currency swap frameworks with members of the Association of Southeast Asian Nations as a hedge against tight fund supplies in a financial crisis and also as a counter to the growing influence of the yuan. 
The Finance Ministry will propose the initiative soon. Japan's finance minister and central bank chief will meet with their ASEAN counterparts for the first time in four years, to coincide with the Asian Development Bank's annual meeting starting May 4 in Yokohama. 
Tokyo hopes the initiative will make Asian countries' financial systems and currencies more stable. Its first negotiations will involve Indonesia. 
The swap arrangements would let Japan supply foreign banks and other institutions with yen funds chiefly via the respective country's central bank. Financial institutions could unwind yen holdings under that framework, which may improve liquidity and stem the ripple effect during a financial crisis. 
ASEAN countries could even procure the dollar with the yen, then employ the greenback in propping up their own currencies. 
Japan's move comes as ASEAN members look to wean themselves off the dollar, a trend that could support wider adoption of the yen. In 2015, Vietnam set a zero interest rate on dollar deposits in a bid to encourage the use of other currencies. Indonesia mandates that settlements made inside its borders be in the rupiah. 
Japan also is taking aim at China, which is busy trying to internationalize the yuan. The International Monetary Fund says the yen accounts for 4.21% of foreign currency reserves held by countries, beating the yuan's 1.07%. However, Beijing has entered into bilateral currency swap agreements with Malaysia, Thailand and other Asian countries. Singapore and the Philippines decided to add the yuan to their foreign currency reserves last year. - Nikkei Asia

Thursday, April 27, 2017

Iran's model for using gold in place of the petrodollar growing as Russia takes the lead in global oil market

Even before China and Russia implemented their new payment systems to allow for nations to trade using their own currencies rather than having to go through SWIFT and the dollar, a precedent was set during the years of Iranian sanctions to have oil trading done outside the petrodollar.

Image result for gold for oil
The sanctions were meant to be stifling, but the Iranians loosened this problematic liquidity noose by using all their banks that weren’t sanctioned, and sold rich Iranian oil to India. Of course, the Indians couldn’t pay Tehran directly. Neither could they pay bilaterally in rupees due to sanctions and infrastructure needed to trade in a bilateral currency. Instead, Iran requested that India pay in gold so India paid Turkey, the Middle East’s gold market, and Turkey gave Turkish gold to Iranian banks, which then swapped with the Central Bank of Iran.
This 'oil for gold' mechanism allowed Iran to survive during the decade long sanctions imposed upon them by the U.S., but more importantly, it set in motion a way for Russia and China to use this process on a more permanent basis.
This clever evasion was known as the Iran-India-Turkey triangle. Iran was escaping the dominance of the US dollar and trading in real money, not a hegemonic fiat currency that was being printed hot-off-the-press all day. They were dealing in gold; not something that could be strangled through SWIFT and electrons traded on a screen easily. A simple intermediator and precious metals could break Obama’s heralded “crippling” sanctions. 
Fast forward to March 2017; the Russian Central Bank opened its first overseas office in Beijing as an early step in phasing in a gold-backed standard of trade. This would be done by finalizing the issuance of the first federal loan bonds denominated in Chinese yuan and to allow gold imports from Russia. 
The Chinese government wishes to internationalize the yuan, and conduct trade in yuan as it has been doing, and is beginning to increase trade with Russia. They’ve been taking these steps with bilateral trading, native trading systems and so on. However, when Russia and China agreed on their bilateral US$400 billion pipeline deal, China wished to, and did, pay for the pipeline with yuan treasury bonds, and then later for Russian oil in yuan. 
This evasion of, and unprecedented breakaway from, the reign of the US dollar monetary system is taking many forms, but one of the most threatening is the Russians trading Chinese yuan for gold. The Russians are already taking Chinese yuan, made from the sales of their oil to China, back to the Shanghai Gold Exchange to then buy gold with yuan-denominated gold futures contracts - basically a barter system or trade. 
The Chinese are hoping that by starting to assimilate the yuan futures contract for oil, facilitating the payment of oil in yuan, the hedging of which will be done in Shanghai, it will allow the yuan to be perceived as a primary currency for trading oil. The world’s top importer (China) and exporter (Russia) are taking steps to convert payments into gold. This is known. So, who would be the greatest asset to lure into trading oil for yuan? The Saudis, of course. 
All the Chinese need is for the Saudis to sell China oil in exchange for yuan. If the House of Saud decides to pursue that exchange, the Gulf petro-monarchies will follow suit, and then Nigeria, and so on. This will fundamentally threaten the petrodollar. - Atimes

Tuesday, April 25, 2017

In followup to ESFS payment system to bypass SWIFT, Russia ready to open Mir payment card for international use

With both Russia and China having recently completed their SWIFT alternative payment systems that will allow them or any nation to bypass the dollar and any potential U.S. sanctions, on April 25 Russia is pushing its next payment program forward by internationalizing the Mir payment card through a joint deal with Mastercard.

In fact, Russia is now joining China who has a similar credit/debit card system known as Union Pay, and where the Chinese version is already the singular biggest payment card in the world.

Russia's National Payment Card System (NSPK) and Mastercard are holding negotiations on co-badged cards, to be called Mir-Mastercard, Russian Vedomosti newspaper reported Tuesday, citing bank officials. 
According to the media outlet, NSPK and Mastercard will produce 40 million co-badged cards, if the outcome of negotiations is positive. In Russia, the card will operate as Mir, while abroad it will function as a card of the international payment system. 
The newspaper added that the Russian Central Bank and NSPK had been holding negotiations with Visa since the end of the previous year. The NSPK reportedly also signed agreements on co-badged cards with Japanese JCB, American Express and Union Pay. 
The Mir national payment system started operating in Russia on April 1, 2015. The system was created after Visa and MasterCard stopped service to some credit cards issued by Russian banks due to US sanctions imposed on Russia. Mir, operated by NSPK, seeks to ensure the sovereignty of the national payment industry and secure the processing of domestic transactions using Russian bank cards. - Sputnik News
As Russia and China continue to expand their creation of alternative financial systems to not only compete with, but even surpass long-standing Western models, the likelihood of more and more countries and consumers switching to dollar alternatives becomes a very real probability, especially since China intends to make use of their systems along their Silk Road initiative, and Russia likewise in their bid to control the global energy markets.

Monday, April 10, 2017

SGE goes international for first time as Dubail's gold exchange to open new gold futures trade with China in RMB

On April 10, the Shanghai Gold Exchange received its first real international partner as Dubai's gold exchange is opening up a new futures market with China to trade gold in RMB.

The Dubai gold market is the largest metals trading platform in the Middle East, and this program will have the capacity to link China's gold market directly to the Islamic world.  And this is especially important now that Islam's primary financial authority for Sharia Law Finance has approved the purchasing and ownership of gold for the 1.6 billion Muslims living around the world.

Middle East's largest financial trading platform the Dubai Gold and Commodities Exchange (DGCX) is moving to launch the DGCX Shanghai Gold Futures (DSGC). This is after it tasted success with the launch of futures trading in Indian gold. The exchange, akin to Singapore, is attempting to become a hub for trading in financial products linked to India and China, two of the largest Asian economies. 
The DGCX last week announced commencement on trading in Shanghai Gold Future. Trading in financial products linked to India and China, two of the largest Asian economies. 
The DGCX last week announced commencement on trading in Shanghai Gold Future. Trading in Indian gold and currency is a major hit on the DGCX platform with volumes in currency pair rivaling that of the Indian bourses. 
The yuan-denominated gold contracts on DGCX marks the first-ever usage of the Shanghai Gold Benchmark Price in international markets. The launch of the DSGC was officially announced at the Dubai Precious Metals Conference (DPMC) last week.  - Economic Times India

Saturday, April 8, 2017

Syria could be the trigger for the start of gold backed trade if Trump decides to implement sanctions

Earlier on April 7, President Donald Trump's Treasury Secretary hinted that the administration was looking at a possible escalation against the Assad regime in Syria, and that they have not ruled out initiating economic sanctions against the Middle Eastern country.  However, with China and Russia both in full support of President Bashir Assad in his fight against both ISIS and Islamic radicals posing as 'Syrian rebels', this move by Trump could very well be the catalyst that accelerates the planned gold trade system that Russia and China have already announced.

Image result for russia china sanctions gold
Just hours after unleashing a missile strike on Syria, Steven Mnuchin announced that the US will announce sanctions “in the near future” against the Assad regime.  
Joined by Secretary of State Rex Tillerson and Commerce Secretary Wilbur Ross in a briefing at Mar-a-Lago estate, the Treasury Secretary said the U.S. would impose sanctions on Syria “to stop this type of activity," according to a pool report and multiple media reports. It wasn't clear what sanctions are under consideration: last time we checked the local Four Seasons had seen better days, as for the war-ravaged economy we very much doubt it relies on trade with the US, or has substantial cash deposits in US banks, although those regions of Syria still under ISIS control are surely regular beneficiaries of having their banks hooked up to SWIFT. 
Mnuchin’s announcement was the latest sign that the Trump administration continues to escalate efforts against the Syrian President one week after Rex Tillerson said Assad's fate would be in the hands of Syria's people. - Zerohedge
Yet here is the kicker in Washington's latest attempt to scare a country by disconnecting them from SWIFT.  When the U.S. did this to Iran a decade ago, the Middle Eastern oil power simply bypassed the petrodollar and began conducting sales of energy through Turkey for... gold.  And thus they were able to survive more than 10 years of harsh sanctions that in the past would have crippled a nation.

Additionally, when the U.S. decided to falsely blame Russia for interfering in their unlawful overthrow of the Ukrainian government three plus years ago, Putin simply forged new trade agreements with China that not only helped them grow much larger than they were before, but to also give them the motivation to build their own SWIFT type payment system which could be used as an alternative for any nation who might in the future receive their own economic sanctions from the warmongering West.

Regarding “gold as money,” China and Russia confirmed this truism in spades this weekend, when they dropped a monetary bombshell by announcing their intention to pursue a trade settlement mechanism focused on gold - as described here.  To that end, Russia’s opening of a Beijing trade office last month was a major incremental step in the two superpowers’ ongoing initiative to “de-dollarize,” and lead an Eastern Trade Bloc outside the purview of the U.S., Europe, and other Western puppets like Japan. 
The New Development Bank (formerly known as the BRICS Development Bank); and the China International Payment System, or CIPS; have already been launched in an effort to “de-dollarize” the East.  And yet, even I was surprised by yesterday’s announcement; as while China and Russia are by far the world’s largest gold buyers; and perhaps, if real accounting were utilized, the world’s largest holders; I didn’t expect them to overtly utilize gold as a bi-lateral trade settlement tool.  Then again, on a visit to China last year, Russian Central Bank Deputy Chief Sergey Shvetsov said the two countries want to facilitate gold-settled trade; whilst just last month, another senior official at the Russian Central Bank, Vladimir Shapovalov, said the two nations were drafting a memorandum of understanding to solve technical issues around China’s gold imports from Russia, and that details would be released soon. - Silverseek
And thus we are at a crossroads, and the potential catalyst for Russia and China to activate their planned gold trade system if President Trump decides to act the belligerent bully and institute sanctions on Assad and the Syrian government.  Because if this does occur, you can guarantee that President's Putin and Jinping will welcome Syria's monetary system into their new respective payment systems, and then launch the knockout blow by demanding that all new trade be conducted not in dollars, but in physical gold backed letters of credit.

Thursday, March 30, 2017

Russia may soon take new 'SWIFT' type platform and expand it through gold payments and bi-lateral trade

Last week we wrote about Russia finally completing its alternative payment system that now makes it virtually invulnerable to any economic warfare performed by the U.S. through the global SWIFT system.  In fact, it has been this exact type of sanction that has stifled economies in Iran, Iraq, North Korea, and even the former Soviet Union during the Cold War.

But while on the surface Russia has indicated that their primary purpose for implementing their new payment system was to defend against the U.S. cutting them off from access to dollars through SWIFT, the fact that they have created several different new economic coalitions over the past five years means that the now have the power to do even more than just protect against U.S. economic aggression.

In fact, since they have also become the world's top energy producer and distributor, as well as one of the largest holders of gold on the planet, Moscow is prepared to even use their new payment system to collapse the petrodollar and turn the tables on America's domination through its 40+ year control over the reserve currency.

During a meeting with Russian President Vladimir Putin last Wednesday, Central Bank governor Elvira Nabiullina stated that: 
“There were threats that we can be disconnected from SWIFT. We have finished working on our own payment system, and if something happens, all operations in SWIFT format will work inside the country. We have created an alternative.” 
The alternative system, known by its abbreviation SPFS, is analogous to SWIFT for financial transactions taking place in Russia and has been in the works for years, with 330 Russian banks connected over a year ago. This number will likely increase now that it has been successfully developed and implemented. Nabiullina also added during the meeting that 90 percent of ATMs in Russia are now compatible with Mir, a Russian version of the Visa and Mastercard payment systems that is used domestically. However, the SPFS is still far from perfect, not operating from 9 pm to 5 am Moscow time and with a transfer cost of 5 cents per transaction. 
Whether Russia’s aim in creating and implementing an alternative to SWIFT is based chiefly on protecting its own economy or not, the move further illustrates how the concentration of international power is steadily moving eastward. Along with parallel efforts by China and other BRICS nations, U.S. and Western economic hegemony is unraveling, a stark reality that U.S. interests - particularly those of the “deep state” - are desperate to avoid. - Mint Press News
However using this new SPFS system for sovereign and bi-lateral payments may be just the first step, as rumors of it connecting with China's CIPS system to create an eventual gold backed monetary system are already on the radar.

According to an article published yesterday by Sputnik, progress made in promoting bilateral trade in yuan is the first step towards an even more ambitions plan — using gold to make transactions: 
The clearing center is one of a range of measures the People's Bank of China and the Russian Central Bank have been looking at to deepen their co-operation. One measure under consideration is the joint organization of trade in gold. In recent years, China and Russia have been the world's most active buyers of the precious metal. 
On a visit to China last year, deputy head of the Russian Central Bank Sergey Shvetsov said that the two countries want to facilitate more transactions in gold between the two countries. 
The possibility of trading in gold has been discussed by Russian officials over the last year. Last April, First Deputy Governor of the Russian Central Bank Sergey Shvetsov told TASS: 
“BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets." - Russia Insider

Thursday, March 23, 2017

Russia now prepared for both dollar collapse and future sanctions by announcing alternative SWIFT system

Over the 70+ years the U.S. has had control over the global monetary system, they have used the dollar on occasion as an 'economic weapon' to force other countries into ceding to their national and international policies.  And of course their most common way they do this is by cutting off nations from access to the SWIFT system.

But in the wake of the economic sanctions Washington and the European Union imposed on Russia following the Ukrainian coup, China, and now we can add Russia to this group, have used their time in creating their own SWIFT alternatives, and on March 23 the central bank of Russia announced they are fully prepared for any overt or covert monetary crisis which may include a dollar collapse, or future sanctions that might be used to attack the ruble.

Image result for russia and china against the us
If the Society for Worldwide Interbank Financial Telecommunication (SWIFT) is shut down in Russia, the country’s banking system will not crash, according to Central Bank Governor Elvira Nabiullina. Russia has a substitute. 
"There were threats that we can be disconnected from SWIFT. We have finished working on our own payment system, and if something happens, all operations in SWIFT format will work inside the country. We have created an alternative," Nabiullina said at a meeting with President Vladimir Putin on Wednesday. 
She also added that 90 percent of ATMs in Russia are ready to accept the Mir payment system, a domestic version of Visa and MasterCard. 
Izvestia daily reported that as of January 2016, 330 Russian banks had been connected to the SWIFT alternative, the system for transfer of financial messages (SPFS). 
In 2014 and 2015, when the crisis in relations between Russia and the West were at their peak over Crimea and eastern Ukraine, some Western politicians urged disconnecting Russia from SWIFT. - Russia Today

Wednesday, March 22, 2017

China's Silk Road project moves to cyberspace as official Belt and Road web portal goes online

Over the past few years China has been investing hundreds of billions of dollars (RMB equivalents), and working diligently towards resurrecting the ancient 'Silk Road' that was one of the greatest innovations in history for trade and commerce.  And as economic power continues to shift from West to East here in the early stages of the 21st century, China is using their Belt and Road initiative to connect the two by both land and sea.

Yet on March 22 we can now add a third conduit to the modern day Silk Road as China announced that they have officially opened their Silk Road website, and it will act as a portal to the world for investors, commerce, and up to the minute information.

Image result for china silk road project
The official website of the Belt and Road Initiative (www.yidaiyilu.gov.cn) was launched Tuesday, offering information on investment policies and enterprises involved in the initiative, among other topics. 
The website, called the "Belt and Road Portal," also has an English version and is operated by the State Information Center.
The website aims to offer information in other languages such as Russian, French, Arabic and Spanish within this year, according to a statement on the website. 
The initiative, proposed by China in 2013, aims to build a trade and infrastructure network connecting Asia with Europe and Africa along the ancient Silk Road trade routes. - China Daily

Saturday, March 18, 2017

Bitcoin crashes down to near $1000 as China sets new parameters to monitor identities of users

As we have mentioned numerous times in previous articles here at The Daily Economist, Bitcoin's primary kryptonite is not in the digital currency itself, but in the third parties that would seek to manipulate its original scope for their own benefits.

By this I refer to the supplemental constructs that have emerged to help facilitate Bitcoin use such as with currency exchanges, or the introduction of capital controls by sovereign entities that countermand the crypto-currencies benefits of transparency and security.

Recently Bitcoin has experienced massive volatility over the past couple of months, intrinsically tied to one of the above mechanisms.   First there was a price spike due to Chinese investors using the crypto-currency as a way to get their wealth out of the Yuan and into something else, and this was then followed by a just as severe a drop in price when the Chinese government halted their local Bitcoin exchanges because the facilities were re-hypothicating customer accounts for pooled transactions.

A few weeks later the price once again soared to a new all-time in the speculation that the SEC might approve of a Bitcoin ETF that would financialize the digital currency on U.S. exchanges.

And now on March 18, the newest intrusion on Bitcoin has emerged when the Chinese government announced they were instituting identity monitoring to their Bitcoin exchanges which in part led to the crypto-currency falling more than $100 USD.

China's central bank is moving to regulate its domestic bitcoin industry, circulating new guidelines that, if enacted, would require exchanges to identify clients and adhere to banking regulations. 
Recent scrutiny by the central bank has already led exchanges to impose trading fees and suspend withdrawals of bitcoin from their platforms. Chinese investors have fled the market. 
A draft of the guidelines says Chinese bitcoin exchanges would be subject to current banking and anti-money-laundering laws, and required to collect information to identify their clients, according to people familiar with the matter. They say the rules, if implemented, would require exchanges to install systems for collecting and reporting suspicious trading activity to authorities. The People's Bank of China would be in charge of handling violations by the exchanges. - Marketwatch

Friday, March 17, 2017

Shanghai Gold Exchange on brink of taking over control of gold prices following VIP meeting and actions after Fed rate hike

In a rushed update put out on March 17 by economic analyst Dr. Jim Willie, it appears that following the Federal Reserve's raising of interest rates two days ago, China, through the Shanghai Gold Exchange, may finally be moving up its plans to wrest control over the gold price from markets in the West.

In a new article published in tandem with his normal monthly Hat Trick Letter, Dr. Willie reported that it appears that the Chinese are now accelerating their plans to disconnect from dollar hegemony following the Fed's recent FOMC meeting and rate hike, and in response to the the market reactions made in the dollar and bond rates following the central bank's March monetary policy move.


Something big is afoot in the Shanghai Gold market. It seems that we are at the door of the RESET finally, with China being betrayed by the USGovt and USFed in concerted collusion. The attempt to reduce the USDollar while maintaining ultra-low bond yields seems the final straw. The inference is made that the jig is up finally, and a significant turning point is upon us. 
A contact at Evolution Consulting has reported that his best contact notified him that VIPs are being invited to take tours of the Shanghai Gold Exchange operation. This man was among one of the guests. These tours are not being arranged in some congenial welcoming event, not at all. Rather they are informational and official in granted preview. They are almost surely being staged to inform the opposition that it is all over for them now. With a cherry on top, the VIP guests were required to pay for the tour. The above juicy tidbit was provided by a client, passing the word along. Something big is afoot. 
China seems to have changed its position toward aggressive in the gold market introduction with gusto and emphasis. Conclude easily that where there is smoke, there is fire, and the heat will be on physical gold metal demand in Asia. In turn the pressure will be put on the USDollar, whose custodians are not honorable and for perhaps the last time, have betrayed the Chinese. Lower USDollar valuation combined with already chronic low bond yield could have turned the Chinese hostile in the wake of the USFed rate hike. 
Analyst London Paul believes something significant is on the verge of breaking the paper gold market. The clues have come on the behavior of the gold market since the Yellen Fed announced its small rate hike. It was small but significant, and probably involved a lie to the Chinese Govt finance ministers. Such coincidences do happen, but odds are against a coincidence in this case, since so critically important. Time will bear out the conclusion. The Western bankers have a long history of lies, deceit, betrayal, subterfuge, sabotage, and pilferage. They might have sacked their economies on the road to the Global Fascist State, but China has not signed up for the destructive evil development and pathway. 
EuroRaj also confirmed London Paul’s suspicion and tentative conclusion. He mentioned that such view is absolutely right, given the market reaction. Someone at the Shanghai Gold Exchange spiked the price higher the moment the Fed raised rates, which required the paper market to follow higher. He stated unequivocally that the Chinese do not consider the USFed, the banker cabal, and the US Elite as honest business partners any longer. He expects their harsh clear revenge to follow, with the launch of the long awaited Global Currency RESET to come next. US President Trump visiting the Andrew Jackson grave site was another sign, as Jackson was an arch-enemy of the banker cabal. He survived an assassination attempt. Neither Trump nor China wanted the rate hike. Trump does not want higher USGovt borrowing costs or the added economic headwind. China does not want lower bond principal value and lower USDollar value. Hence the East appears to have burned the Western banker cabal with a paper fire that could turn into a bonfire in gold metal demand. China likely perceived a maneuver to sabotage Trump by the banker cabal, and the Beijing leaders yelled PUNT, game over, no more cooperation. 
At least in the Eastern hemisphere, the USDollar is about to be kicked to the curb, shunned in trade payment usage. The non-USD platforms will be given much greater emphasis. The game is about to change, to enter the extreme danger zone. - Goldseek
Yet even this new information doesn't take into account the sudden exit from the London Silver Fix last week by the CME Group and Thomson-Reuters, who may have also seen the writing on the wall that the West is losing control over the manipulation of gold and silver prices, as well as bond yields for the U.S. Treasuries.

It was said by many that March 15 would be a critical date for the economic, financial, political, and geo-political spectrum's, and that the Ides of March may show itself in mysterious and unpredicted ways.  And going forward with the Fed raising interest rates at a time when economic data is screaming that the U.S., if not the rest of the world is bordering on recession, the reality that the time of protectionism and all countries looking out for themselves may very well be upon the global financial landscape.

Tuesday, March 14, 2017

As China accumulates gold for RMB internationalization, estimates have their holdings at nearly 20,000 tons

One of the more difficult things financial analysts have had to do is to try to piece together just how much gold China has accumulated over the past 10-20 years.  For some analysts like Dr. Jim Willie, the estimates range between 25,000 and 40,000 due to market insiders who provided him information that China had been buying at least 1,000 tons of gold per month for more than a year and a half.

Additionally, China has become the world's largest gold producer and per state policy, does not export any of its metals to foreign markets.  Meaning that they produce between 276 tons (2006) and 450 tons (2014) per year, every year.

And lastly of course is the fact that China does not have the same type of storage and documentation procedures as the Western markets do, meaning that while they occasionally report gold holdings attributed directly to the Peoples Bank of China (PBOC), they do not report any holdings or distributions among the vast myriad of other banks that function under the umbrella of state control.

Thus in the end it is nary impossible to know exactly how much gold China owns and controls.  But one analyst believes that through his research he can get within the ballpark of their holdings, and why China has been purposefully accumulating gold in such quantities.

China, it seems, wants to make the rules in the international monetary system, which is why it has been acquiring vast amounts of gold both through private and official channels. 
Because of the obscure nature of the Chinese gold market and the reluctance of Chinese officials to show their hand, nobody has been able to accurately calculate how much gold the Chinese have amassed since about 2000, when they began amassing it. 
Enter Koos Jansen, an analyst with Singapore bullion dealer Bullion Star. He has studied the Chinese gold market for years and recently came up with an estimate of total Chinese gold holdings: 19,500 metric tons, or 21,495 U.S. tons, at the end of January 2017. 
“They have promoted gold ownership as a store of value since at least 2002, but more so when they introduced the ‘storing gold with the people’ concept in 2004,” says Jansen, a campaign encouraging private citizens to buy gold. - Epoch Times
And the purpose behind China's ongoing 15 year plan for gold accumulation...
According to Jansen’s contacts at Chinese banks, official holdings are closer to 4,000 tons rather than the published figure of 1839 tons. What does China need that gold for? 
“They buy official gold to internationalize the Renminbi. If there are enough reserves behind it, they can make it a credible currency.” He who has the gold makes the rules. 
That’s also why China doesn’t allow even one ounce of gold and silver to leave its shores once it enters. “The West has been selling gold into a black hole,” says Jansen.

Thursday, March 9, 2017

Russian bank follows Japan's lead in bypassing the dollar through connecting to China's CIPS system for interbank settlement

Last month, several Japanese banks took the unprecedented step in bypassing SWIFT and the dollar by connecting directly to China's CIPS platform for interbank settlement.  Now on March 9, Russia is following suit as one of their largest banks announced today that they are officially connecting to CIPS to conduct their own interback settlement with China that will no longer require intervention with the global reserve currency.

Image result for china and russia against the us
Russia's VTB Bank has been successfully connected to Chinese-based Cross-Border Inter-Bank Payments System (CIPS), the bank said on Wednesday. 
"VTB has been linked up to the system via correspondent banks and has successfully completed test operations in late 2015. We are monitoring the development of the introduction of the next phase of the CIPS, which is supposed to increase the operational efficiency of transactions," VTB's press office said in a statement. - Sputnik News
China officially opened their CIPS messaging platform last October as a way to both expand internationalization of the RMB, and to allow for much easier processing between nations in their bi-lateral trade agenda.  And over time the cost savings for both sides of the trade equation will be significant since trade partners will no longer be required to pay currency swaps to SWIFT in their having to buy dollars to act as a medium of exchange.

As more and more nations find direct bi-lateral trade a better and more equitable way of conducting commerce between economies, the less need there will be for countries to have to buy dollars to function in antiquated trade models.  And at the leading edge of this is China, who through coalitions such as the Shanghai Cooperation Organization and Silk Road projects are steadily expanding the idea of direct trade, and in the natural currencies held by each respective partner.

Tuesday, February 28, 2017

After years of vilifying Bitcoin, now the Mainstream Media sees it as a savior for China's monetary system

First they ignore you, then they laugh at you, then they fight you, then you win.  These were the words of a famous revolutionary who used non-violent protest as the means to overthrow the British Empire from its hold over India.

Now in 2017 there is another revolution going on that is for the future of the world's money.  And where even as recently as three years ago the mainstream establishment media was both scoffing at and vilifying the advent of crypto-currencies and those who embraced them, on Feb. 27 that same mainstream media is now hailing Bitcoin as the potential savior for the monetary system of the world's second largest economy.

China’s new bank regulator, Guo Shuqing, is by all reports the reformer the second-biggest economy desperately needs. His 17 months as stock market watchdog served up so many directives so rapidly that traders called him “Whirlwind Guo.” 
He arrives on the banking scene at a moment when China’s financial system is in a whirl of its own. The immediate challenge - murky, debt-laden banks threatening China’s economic outlook - is well known. But a longer-term threat, an existential one, is landing along with Guo: a Chinese government version of Bitcoin that makes you wonder if the nation will even need banks in 10 years. 
In creating its own cryptocurrency, Beijing is taking the whole if-you-can’t-beat-them-join-them concept to new heights. Earlier this month, the People’s Bank of China sent shockwaves through Bitcoin circles by halting withdrawals and bringing the heads of cryptocurrency exchanges in for a good talking-to. Then last week, the PBoC announced it’s going digital in a big way. As China mints its own block-chain medium, will it ban Bitcoin transactions? Given the tight correlation between zigs in the yuan and zags in Bitcoin values, the PBoC’s entry could be a game changer - and not necessarily for the worse. - Barron's