The Israel Deception

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 trade. Show all posts
Showing posts with label trade. Show all posts

Sunday, May 28, 2017

Russia shows the way for nations to forever avoid U.S. imposed sanctions and end petrodollar through new trade agreement with Iran

In 2013 an oil and natural gas agreement between Russia and China would eventually grow into a complete energy program that led to a cracking of the 45 year old petrodollar system.  And through the ability of nations to purchase energy using either Yuan or Rubles, reliance upon the dollar began its final decline.

And ironically, it was about this time that the United States began a new policy of bypassing the United Nations to instead simply administer economic sanctions unilaterally on anyone they believed somehow threatened dollar hegemony.  And this rogue use of economic warfare has isolated Washington even more... even to the point of OPEC nations potentially leaving Western influence to join with Russia's Eurasian Economic Union.

And on May 25, one of these oil producers finalized an agreement with Russia that ensures future protections against U.S. imposed sanctions, and shows the rest of the world how they too can avoid being bound by the dying petrodollar noose.

Moscow and Tehran have signed a deal, under which Iran will sell crude to Russia in exchange for products, according to Iranian Oil Minister Bijan Zanganeh.
While sanctions against Iran have been lifted, banking restrictions on trade in US dollars remain, making it difficult to sell oil on the open market. 
"The deal has been concluded. We are just waiting for the implementation from the Russian side. We have no difficulties; we signed the contract, everything is coordinated between the parties. We are waiting for Russian oil companies to send tankers,” he said, as quoted by Russian news agencies RIA and TASS. 
The agreement was initially reached in 2014 when Iran was under Western sanctions over its nuclear program. 
When the sanctions against Tehran were lifted in 2016, Russian Energy Minister Aleksandr Novak said the deal was no longer necessary. 
However, in March 2017, Novak said it was back on the table with Russia buying 100,000 barrels per day from Iran and selling the country $45 billion worth of goods. 
Despite the lifting of sanctions, Tehran is still facing problems in re-connecting Iranian banks with global financial markets. 
A February report by the International Monetary Fund said that while Iran has been reconnected to SWIFT, significant challenges prevent Iranian banks fully-reconnecting to global banks still exist mostly due to remaining US sanctions. 
“US primary sanctions apply to US financial institutions and companies, including their non-US branches (but not their subsidiaries). Moreover, with very limited exceptions, businesses and individuals related to the US continue to be generally prohibited from dealing with Iran, including with the government,” the IMF said. 
“US dollar clearing restrictions have not been lifted and pose a significant challenge for non-US banks who may do business with Iran, but may not be paid in US dollars,” it added. - Russia Today
As both Russia and China continue to create and institute infrastructures that allow nations to function in all financial capacities outside of SWIFT and the Western financial system, the sooner the petrodollar can be completely buried in the ground. And as well, it will mean the sooner that U.S. dominion over the economic affairs of nations can finally come to an end.

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

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

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, January 31, 2017

Gold soars up $20 and dollar falls as President Trump brings Europe into the currency war

After spending the latter stages of his candidacy prior to the inauguration going after China's 'manipulation' of the Yuan, President Donald Trump has shifted gears and is now challenging Europe and their policies which he alleges are keeping the Euro undervalued, and affecting fair trade.

On Jan. 31 Peter Navarro, the top trade adviser and member of the Trump Administration, went directly after the heart of the EU's trade alliance by singling out Germany as the primary instigator in the continent's use of monetary devaluation policies to achieve unfair trade advantages.

The Trump administration just fired the first shot in the US-European currency, and thus trade, wars when Trump's top trade advisor Peter Navarro accused Germany of using a “grossly undervalued” euro to "exploit the US and its EU partners", the FT reported noting the comments are "likely to trigger alarm in Europe’s largest economy." News of the statement sent the EURUSD surging and the dollar tumbling to fresh 2 month lows. 
Navarro, the head of Mr Trump’s new National Trade Council, told the Financial Times the euro was like an “implicit Deutsche Mark” whose low valuation gave Germany an advantage over its main partners. While not necessarily novel - Germany has often been accused of being the biggest winner from a weak euro at the expense of peripherla Europe - his views suggest the new administration is focusing on currency as part of its hard-charging approach on trade ties, according to the FT. Furthermore, virtually assuring a deterioration in US-German relation, and in a departure from past US policy, Navarro also called Germany one of the main hurdles to a US trade deal with the EU and declared talks with the bloc over a Transatlantic Trade and Investment Partnership dead. - Zerohedge
In response to the allegations, gold and silver soared to their highest intra-day move of 2017 as the yellow metal climbed back over $1200 per ounce on an early move of over $20.

Live New York Gold Chart [Kitco Inc.]

Saturday, January 21, 2017

As Donald Trump speaks out against the dollar and globalism it could be setting the stage for a return of gold standard

Newly inaugurated President Donald Trump is a master when it comes to leverage, finance, and the use of credit to achieve great accomplishments.  But if ones listens to the media, they would not find a concise answer as to whether he actually understands the dollar or the economy.

This is because Trump stands at the middle of an ideological war where an establishment seeks to maintain its control over a debt based system.  And the foundation of that system is the establishment's ability to print unlimited amounts of fiat currency, manipulate markets and prices, and siphon the wealth of a nation into the hands of a select few.

(To validate this all one has to do is listen to Keynesian Nobel prize winning economists speaking today in Davos who are calling for the banning of cash and the implementation of an all digital cashless society)

Which brings the American people to the point where they must learn to read between the lines in discovering what President Trump's future direction for the dollar is headed.  And a couple of news stories out on Jan. 19 may provide that insight.

Trump and a New Gold-Backed Dollar
In an interview with The Wall Street Journal on Monday, Donald Trump uttered two words essentially never spoken by a president when describing the state of the U.S. dollar: "too strong." In describing how the U.S. is losing ground to China, Trump commented: "Our companies can't compete with them now because our currency is too strong. And it's killing us." It's incredibly rare for an American president to comment on the movement of the U.S. dollar, let alone advocate that it should fall. 
The movement of the dollar has a double-edged-sword effect on consumers. A stronger dollar, like we're experiencing now, gives U.S. consumers more buying power in overseas markets, and makes it less expensive for domestic businesses to import goods. 
On the other hand, a strong dollar makes U.S. exports less appealing to other countries where currencies have taken a beating, and can thus boost our national trade deficit and eventually slow growth. 
The dollar also happens to have an inverse relationship with gold. A stronger dollar often means weaker gold prices, whereas a weaker dollar leads to stronger gold prices. Trump's implying that the dollar is too strong might as well be a ringing endorsement for gold. - Fox Business
And from analysis from the well respected alt-economic Doug Casey...
The breakdown of the petrodollar is the perfect excuse for the globalists to usher in their SDR solution. 
So that’s the first option. It’s the global elites’ preferred outcome. It would be a very bad thing for personal and economic freedom. It means more fiat currency, more centralization, and less freedom for the individual. 
The second option is to simply return to gold as the premier international money. Here’s how it could happen… 
Trump might play along with the globalists’ schemes, but I doubt it. He’s the first president who’s openly and sincerely hostile toward globalism. He’s denounced it repeatedly. 
Trump recently said, “We will no longer surrender this country, or its people, to the false song of globalism.” 
In my view, there’s only one way Trump could fight the global elites and their SDR plan: return the dollar to some sort of gold backing. 
Trump has said favorable things about gold in the past. So have some of his advisers.
It wouldn’t be easy. He’d face one hell of a struggle with the globalists. And winning would be far from certain. 
No matter what, the death of the petrodollar, just like the end of the dollar’s link to gold, will be very good for the dollar price of gold and gold mining stocks. 
When Nixon took the dollar off gold in 1971, gold skyrocketed over 2,300%. It shot from $35 per ounce to a high of $850 in 1980. Gold mining stocks did even better. 
Gold is still bouncing around its lows. Gold mining stocks are still very cheap. I expect returns to be at least as great as they were during that paradigm shift in the international monetary system. 
All this is why what happens after Trump’s inauguration could change everything… in sudden, unexpected ways. - International Man
Russia has replaced OPEC over the past year in becoming the global leader for oil and natural gas, and China is not only the world's largest producer of goods sold around the world, but they are also the world's largest banker.  And both of these economies have invested vast quantities of resources towards buying gold at levels that far exceed the U.S.'s supposed 8,500 tons.  Yet in pursuing this course of action they have also sent a clear message to Washington in the past few years through their dumping of dollars at a record pace, and are signifying that the days of the U.S. currency remaining the sole global reserve is nearing an end.

Every indication shows that the fiat currency experiment that began with Richard Nixon closing the gold window in 1971 has reached a point where confidence in the dollar is no longer a sure thing, and even the newly inaugurated President has his doubts on the dollar being the catalyst for domestic growth and prosperity.  And as Donald Trump begins a new chapter today as the leader of the free world, and the world's largest economy, no one really knows what tools he plans to use to implement his agenda of protectionism, direct bi-lateral trade, and destroying the West's current trek towards globalism.  But perhaps what we do know that may give us insight is his understanding and appreciation for the power of gold as real and tangible money.


Wednesday, January 11, 2017

Forget Bitcoin, Swift may soon put the dollar itself on the blockchain

As financial institutions and think tanks work overtime to create new financial platforms using blockchain technology, one of the most unlikely of these announced on Jan. 12 that it is in the planning stages of creating a process to function in cross-border payments using the global reserve currency.

Known as SWIFT, or the Society for Worldwide Interbank Financial Telecommunications, it is the network that facilitates the exchanging of the world's currencies for dollars to aid in the function of global trade and commerce.  And in a release made on Wednesday the institution reported that they are planning on using blockchain technology to replace older infrastructures in their processes of servicing the global reserve currency.

Image result for blockchain dollar
A global platform that connects the vast majority of the world's banks has begun building a blockchain application to simplify cross-border payments. 
Announced today, The Society for Worldwide Interbank Financial Telecommunication (Swift) is integrating open-source blockchain technology with its own products to build a proof-of-concept that might one day replace the so-called "nostro" accounts it keeps filled with cash all over the world - just in case they need it. 
If successful, the blockchain application has the potential to finally achieve a longstanding dream of Swift, to free up the cash stored in those accounts so it can be invested in more profitable measures. - Coindesk

Tuesday, December 27, 2016

China's gold market now being used to back the expansion of the Yuan

The antiquated 'gold standard' now appears to not be the only way to back one's currency with a precious metal as a new program instituted by the Shanghai Gold Exchange (SGE) will soon aid in the expansion and internationalization of the Chinese Yuan.

Just prior to the Christmas break, the SGE launched a new English language website that has the primary purpose of allowing foreigners to access products and purchase gold in RMB.  And since the SGE is the world's largest physical gold market, this move has the two-fold effect of first allowing individuals to bypass London and the Comex if they have no interest in paper gold trading, and secondly to aid in the expansion and internationalization of the Yuan in global trade.

Last week the Shanghai Gold Exchange (SGE) launched a new English website to offer international customers more information and tools on trading gold in renminbi through its subsidiary in the Shanghai Free Trade Zone the Shanghai International Gold Exchange (SGEI). BullionStar took the opportunity to translate a speech by a Teng Wei, Deputy General Manager of the SGEI, named “How China’s Gold Market Can Help The RMB Achieve International Status” that was held at the Renminbi World summit in Beijing on the 29th and 30th of November 2016. In the speech Teng Wei outlined his vision for the SGEI going forward regarding renmibi (RMB) internationalization, connecting the onshore and offshore renminbi market and increasing gold market share. - Bullionstar via Zerohedge
weekly-sgei-sge

Graphic courtesy of Bullionstar

Over the past 45 days the Shanghai Gold Exchange has begun to disconnect itself from the global price standard set twice a day in London and New York by adding premiums of between $30 - $50 to their designated 'fix price'.  And by having a price spread of this magnitude so far above that of the Western paper gold markets, opening up a new portal for U.S. and European traders to buy gold, even in the Yuan currency, will lead to a massive increase in their market share of the global gold market and an ever expanding increase in transactions being done in the Chinese RMB.

Monday, December 5, 2016

Turkey calls for citizens to dump their dollars and buy gold or lira as country looks to establish trade using own currency

It is still up in the air whether the failed coup that took place earlier this year in Turkey was from an outside agency, an Erdogan created false flag, or a grass roots engineered event.  But whatever the reason, the leader of Turkey has used this attempt to oust him from power as the impetus to initiate a pivot away from the U.S..

Shortly after the coup attempt back in July, Erdogan purged the government of any pro-U.S. officials and even threatened the long-standing NATO base housed in Ankara.  This of course forced Washington to move their missile cache held in Ankara to other locations, and for all intents and purposes exit a key regional position on the frontier of Russia which was had been used to try to isolate the Eurasian power.

But now it appears that this was just the first step by Erdogan in a new foreign policy where he is seeking to disassociate the country completely from the United States, and to solidify even greater ties with Russia and their growing Eurasian Economic Union (EEU).  And to do this he is now calling on all of Turkey's businesses and citizens to dump their dollar holdings and use the proceeds to buy gold or Lira as the end game looks to be a move towards establishing direct bi-lateral trade with Eurasia without the need for the U.S. dollar as a reserve currency medium.

Normally, any other country would find itself in a dilemma: how to lower rates as per the president's demands to stimulate investment and the economy, without killing the economy... but not Erdogan. As AFP notes, the Turkish president "urged" his fellow Turks on Friday to convert their foreign currencies into gold and lira to stimulate the country's economy as the lira continued its slide against the dollar. 
"For those who have foreign currencies under the pillow, come change this to gold, come change this to Turkish lira. Let the lira win greater value. Let gold win greater value," he said during a televised speech in Ankara. - Zerohedge
It is doubtful that President Erdogan has an acute understanding of finance, or what the devaluing of their currency means for their economy, but perhaps the real answer lies in the fact that the dollar's recent strength over the past month is creating the same monetary conditions that led to the Arab Spring events of five years ago, where a number of Middle Eastern governments were unable to afford to purchase dollars which could be used to buy commodities such as food to feed their hungry populations.

Thus the inevitable answer for Turkey (and others) appears to be in disassociating themselves completely from the dollar, and in negotiating new trade agreements in partnerships such as the EEU, through which they can use their own currencies that bypass the dollar.

"For those who have foreign currencies under the pillow, come change this to gold, come change this to Turkish lira. Let the lira win greater value. Let gold win greater value," he said during a televised speech in Ankara. 
Then overnight, Turkey continued its crusade against high rates, so critical to keep the currency from foundering, when it announced it would prevent companies from borrowing at high rates. The measure will be part of a broader package of economic steps due to be announced Thursday, according to state-run Anadolu Agency which cited Deputy PM Veysi Kaynak as saying in an interview on CNNTurk. 
“The rise in the dollar is certainly important, but the rise in interest is affecting our companies very quickly.” He added that the “prime minister will explain a package of measures that will touch the daily lives of our people,” and “relieve our companies financially,” including our banks." 
It was not exactly clear how government pressure to lower rates would help the plunging currency, however, in a surprising twist, one which likely seeks to isolate the Turkis Lira from its dependency on the US dollar, Erdogan said on Sunday that Turkey is taking steps to allow commerce with China, Russia and Iran to be conducted in local currencies, in what Reuters dubbed "the government's latest effort to shore up the tumbling lira." 
Speaking at the opening ceremony of a shopping mall in Istanbul, Erdo?an said that he had proposed Russian President Vladimir Putin to conduct trade between the two countries with local currencies. - Zerohedge
For years Turkey has been an important nexus point for both Europe and the United States as NATO used that frontier to Eurasia as a key juncture in both the Cold War, and in today's foreign policy to isolate Russia.  However, with Moscow offering much more accommodation to economic growth than what the West has provided in recent years, Turkey is now seeing their future as one standing outside the dollar, and is preparing for a pivot East that is laden with gold and bi-lateral trade.

Thursday, November 3, 2016

SDR's for trade between nations, gold for the rest of us when currencies collapse

It is inevitable that the monetary system the world has used over the past 43 years will not only come to an end, but all signs are warning that this end is very near.  Going back to 1988, one of the Establishment's primary propaganda publications issued a forecast of a new global currency replacing the dollar by 2018, and here in 2016 we have already seen the beginnings of that currency through the IMF's announcement to circulate the M SDR (Special Drawing Rights) under Chinese authority.

Image result for the economist world currency

This means of course that during the transition, all fiat currencies like the Dollar, Pound, Euro, and Yen will experience extreme devaluations, or in some cases like perhaps the Euro, outright elimination.

But how long until this actually takes place?

A month ago one of the chief architects of the Euro creation back in 1999 published an op-ed on how the currency was flawed, and that its days numbered thanks to the deteriorating confidence and value imposed upon it by the European Central Bank.  And as we know in Japan over the past 20 years, the UK in recent months, and through the dumping of dollars by foreigners against the current global reserve, the clock is ticking on whether nations can get together in time to agree upon a way for a global reset, or if greed will bring their inevitable downfall through some global financial crisis.

Right now the first or perhaps even primary model for the next global reserve currency already exists, and is being propagated in the markets and in trade.  But this currency, known as the SDR, will only be available for nations to trade with one another at a central bank or Ministry level, and this leaves the 99.99% of us dealing with the aftermath of our own money's devaluation.

Thus while the world banks and governments prepare for the SDR to save their financial systems, what remains for you and I are the physical forms of money that have been a part of economics from the beginning of civilization.

We’ll soon experience profound problems with the U.S. dollar. I expect to see inflation in some areas, deflation in others. On the world stage, we could see anything up to and including a full-fledged currency crisis. 
Collapse is a calamitous process that destroys wealth like a tsunami hitting a seacoast. 
We’ll see several stages of the collapse play out in any event, because central banks are out of room to steer monetary policy outside of a very narrow channel. 
The Fed didn’t raise interest rates in 2010-11, when it should have bitten down on the proverbial bullet. Now, as the world economy teeters on the edge of major breakdown, the Fed can’t cut rates to boost the economy. Even if the Fed’s traditional rate-cutting medicine worked — and it doesn’t always work — that bottle of economic snake oil is nearly empty. 
Aside from the Fed, other central banks around the world are in even worse shape. Many of them participated in the failed negative interest rate experiment. We can’t look to them for any help at all. 
Sauve qui peut! 
This will put increased importance on special drawing rights (SDRs), or world money, and gold as possible tools with which to truncate the next collapse. I expect that many nations will use SDRs as a method to protect themselves — certainly the U.S.
But if you’re not a country plugged into the central bank, what’s left for us mere mortals? Your best option is to use gold. - Daily Reckoning

Thursday, September 29, 2016

China may look to use both barter and gold yuan to stabilize trade in a post-dollar world

The path towards ending dollar hegemony is already well under way, with China set to both enter into the SDR, and expand its use in global trade settlement.  But for countries that are cash strapped and wanting to transition away from the reserve currency, short and mid-term alternatives may be necessary to aid in the transition of a post-dollar world.

And China is currently in the process of implementing them.

Earlier this year the creators of the Silk Road initiative came to an agreement with the Thai government to build and expand their rail infrastructure using barter rather than dollars, and this, along with the implementation of a gold yuan currency, could be the blueprint for keeping the global economy going during the transition.

Image result for gold backed yuan
In his March interview with CCTV the geostrategic analyst highlighted that China is "facilitating trade and development for Third World nations in ways major Western funders could not." Beijing is interested in boosting logistic networks in Eurasia and therefore it founded the Asian Infrastructure Investment Bank (AIIB) to fund the projects. 
Furthermore, "China may also offer barter trades in lieu of cash transactions for rail infrastructure projects, as was the case with Thailand. It seems to work. For cash-strapped economies, barter may emerge as an essential instrument of regional economic stability and a 'gold yuan' may help facilitate such a paradigm shift," Maavak elaborated speaking to Sputnik. - Sputnik News

Tuesday, August 23, 2016

Chairman of China's Gold Association confirms SDR just one step in the future backing of the Yuan with gold

Song Xin is the Chairman of China's Gold Association and has spoken strongly in the past of the need to see a return to a gold standard for global currencies.  And on the Association's website, Xin has a publication out where he suggests that the nation's push to internationalize the SDR basket of currencies is just one step of many towards the ultimate goal of a gold backed Yuan which will be the cornerstone of the Silk Road initiative.

Song Xin, Chairman of the China Gold Association, General Manager and Party Committee Secretary of the China National Gold Group Corporation: Stick to the gold mission and boost innovative development 
As the sole central enterprise in the gold industry, China National Gold Group Corporation is a firm defender of renminbi internationalization, pioneering demonstrator of the country’s “One Belt and One Road”, and faithful guardian of a happy life for people. It’s the direction that we should strive for. 
On March 10 during the two assemblies, Song Xin, Chairman of the China Gold Association, General Manager and Party Committee Secretary of the China National Gold Group Corporation, was the guest in Xinhuanet’s 2016 two assemblies special Interview. In the program Dialogue with New State-owned Enterprises and Cheer up in the “13th Five-Year Plan”, he proposed the conclusions above. Besides, in the in-depth dialogue, Song Xin systematically illustrated topics including the functions of renminbi internationalization, effectively enhancing gold supply, realizing improved quality and efficiency of enterprises, practicing the central party’s “Five Development Theories”, and fulfilling the responsibilities of central enterprises. 
About Gold’s Functions: Increase Gold Reserves And Accelerate Renminbi Internationalization. A Close Relationship between Increasing Gold Reserves And Joining The SDR 
When the credit lines of paper currency declines and there are enough gold reserves, people can be less worried about the existing credit system and enhance their confidence in the currency. 
Last year, China joined the IMF (International Monetary Fund) Special Drawing Rights (SDR), signifying the renminbi's march towards internationalization.
Song Xin pointed out that the renminbi is closely related to gold. Gold is priced in US dollars throughout the world and in renminbi in China. There is a special relation between the renminbi and gold. We have continuously increased gold reserves since China strove to join the SDR basket of currencies. By the end of February this year, our gold reserves have increased to 1788.45 tonnes. In other words, China has continuously increased its official gold reserves and publicized the amount to the world, keeping a close relation with renminbi internationalization and joining the SDR. - CNGold.Org.CN
China is moving fast and furiously towards a full scale internationalization of their currency in global trade and settlement, and as Koos Jansen notes in his own article on this...
I think for China the SDR is just a means to an end. The end being to internationalize the renminbi, which of course is connected to the dollars retreat. And as Song Xin clearly states, “gold forms the very material basis for modern fiat currencies” and, “gold reserves should become the cornerstone … for renminbi internationalization”.

Saturday, July 23, 2016

Economist forecasts that if Trump wins Presidential election, gold will go to $1850 per ounce

On July 22, an economist for ABN Amro bank forecast that if Republican Donald Trump won the 2016 Presidential election, gold prices could climb to $1850 per ounce as his winning in November will be good for the yellow metal.

In a look at what global finance and trade would be under a Trump presidency, economist and precious metals analyst Georgette Boele wrote that the current trade system that the U.S. has with its foreign partners would be 'torn up', and would have discernible effects to currencies, bonds, and the entire economic system.

Trump’s pledge to tear up trade agreements and a rise in overall uncertainty over the policy outlook would likely dent the U.S. economy while spurring a rise in demand for gold, said Georgette Boele, a currency and precious-metals analyst at ABN Amro, in a Friday note. 
To be sure, Boele’s forecast is based on highly pessimistic expectations in regard to Trump’s likely economic polices. 
“If Trump were to become president, gold prices will likely perform well, because we expect that his policies will be inward looking and will weaken the fundamentals of the 
U.S. economy,” Boele said. “In addition, his rhetoric and possibly policy actions could create domestic and international uncertainty at best, and upheaval at worst.”
Weaker U.S. growth would help push gold toward $1,850 an ounce “over the coming years,” she said. That would be a 40% rise from gold’s GCQ6, -0.67% current level just above $1,320 an ounce. Gold has rallied nearly 25% in 2016. - Market Watch

Thursday, June 30, 2016

Contrary to mainstream rhetoric, Britain’s Brexit vote opens the door for prosperity, not decline

Freedom is a funny thing, and over the next several months the UK will have the chance to see just how successful their return to sovereignty is once they finalize their actions in leaving the European Union dictatorship.  By this, we mean that unlike the other 27 permanent and ancillary nations who must all move in lock-step with the un-elected bureaucracy ruling out of Brussels, Britain can now choose its own destiny and create new agreements that are beneficial to themselves in a world moving towards free and bi-lateral trade.
Ironically, and despite the Damocles Sword of ongoing economic sanctions, the best performing economy last year was not China, not the United States, and certainly not the Eurozone, but instead it was Russia, who because of the sanctions were forced to change their trade alliances with the West, and created an environment where they are now the global leader in energy production, and attracting investments and new trade because they centered themselves as a new hub for free and bi-lateral trade.
And assuredly, if Britain wants to find new markets and new options, Asia and Eurasia are the places to go, rather than continuing to wallow under the tyranny of the West.
global trade eu
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Tuesday, June 21, 2016

Naked shorting on gold at the Comex now the highest in history

For those who believe in the power of physical gold, either as a trader, investor, or as insurance for a devaluing currency, they must always remember that the battle over price will be a waged more as a long duration war rather than as a single battle for control.  And since the gold price reached its all-time high of $1940 back in 2011, this war to suppress the gold price continues well into its 5th year.

Since the beginning of 2016, gold has not only been the best performing asset in the markets, but it has experienced a paradigm shift where investors and money managers who discredited gold six months ago are now fully into its camp and are fighting to accumulate the metal in an environment of every shrinking supplies.

This of course should have created the catalyst for a huge boom in the gold price if the markets were equitable and fair.  But since gold is far more than just a valuable asset, and is also the barometer for each nation's currency, protection of the dollar as what is at the heart of this war to suppress the gold price, and it appears now that the powers that be are pulling out all the stops.

On Friday June 17, the Commitment of Traders Report (COT) came out and showed that the bullion banks are now shorting the Comex (Commodities Exchange - where the gold price is set) with a record number of naked short contracts meant to keep the price of gold from reaching, breaking through, and closing over $1300 per ounce.

COT Report
Graph courtesy of Streetwise Repots
With Friday’s Commitment of Traders Report, the ridiculous has just metastasized into the sublime as the Commercial Cretins have just gone “over the top” and added another 5.4M “ounces” to their synthetic gold short position. 
At 298,077 contracts declared short, they are now carrying the largest short position in Crimex history. 
The scary part is that these figures don’t include the big rise in open interest yesterday and you just KNOW that it ballooned out due to more Cartel shorting. - Silver Doctors
Geo-political events, along with economic and financial ones, will cause the price of gold to be extremely volatile over the rest of 2016, and well into 2017.  But know that not only is the Bull Market confirmed by most analysts and technical charts, the end game for gold will soon be a breakthrough from its previous all-time highs, and a boon to all those with the patience and stomach to stay the course in their trust in the power of gold.

Monday, June 20, 2016

U.S. overtakes EU in trade with Russia despite U.S. created sanctions against the Eurasian power

The United States has long been a hypocrite when it comes to economic and foreign policies.  They are willing to sanction anyone who exhibits or creates an environment not in line with the empire’s whims, but at the same time are more than happy to deal with terrorists, human right abusers, and dictators if it furthers their own financial and political goals.
Case in point.  Back in early 2014, the Obama administration ordered economic sanctions to be placed on Russia as cover for a coup they helped engineer in Ukraine.  And although they implemented these sanctions without the authority and backing of the United Nations, they then coerced the European Union states to follow suit and restrict their dealings with the Eurasian power.
Russia of course countered these unlawful sanctions with trade restrictions of their own on all nations who chose to follow U.S. hegemony on this, and two years later a very interesting dichotomy has emerged from this environment.
That is, the U.S. has overtaken the EU in trade done with Russia, despite the fact that they were the nation who sanctioned Vladimir Putin and Russia to begin with.
Putin
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Saturday, June 18, 2016

Japan jumps on the crypto-currency bandwagon as their largest bank tests digital money

Statistician and financial analyst Dr. Jim Willie has been saying for years that the future of sovereign currencies would be one where there are two separate forms of money… an international trade currency which is backed by gold, and a domestic currency that is both devalued and dedicated for internal use.
The methodology on how this would take place is as yet to be determined, but on June 15 the largest bank in Japan may be writing the blueprint of such a two-tier currency system as they are now experimenting with a crypto-currency they hope would compare one to one with the Yen.
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Friday, June 10, 2016

Investors pull out nearly $100 billion from Britain ahead of Brexit vote

An interesting thing happened along the way of Britain’s drive to leave the European Union… and that is that the fears are not being felt by the people who currently are over 50% of the way towards a Brexit, but instead from the establishment who desperately needs the vote to go in favor of remaining under the thumb of Brussels to protect their own fiefdoms.
And yet, it appears that the elite may be seeing the writing on the wall, as during the months of March and April, investors have pulled out nearly $100 billion in investments from the British Isle.
finTech_european-central-bank

Thursday, June 2, 2016

China overtakes the U.S. as most competitive global economy

In their annual ranking for most competitive global economies, IMD announced on May 30 that China’s Hong Kong sector surpassed the United States on the list to move into the number one spot for 2016.
The U.S. had been number one of the rankings scale for the past three years, but massive regulation, higher taxes, declining infrastructures, and moves towards closed trade (TPP, TPIP) led to their dip down to number three behind China and Switzerland.
Top 10
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Tuesday, May 31, 2016

Is Putin riding on Greece to help end the sanctions against Russia from the EU?

Ever since the U.S. imposed economic sanctions on Russia in the early part of 2014, the European Union has followed Washington’s policy like a lapdog or a vassal state.  But the effects of these bi-lateral sanctions have caused immense strains between the political and economic segments of each nation within the EU, culminating in numerous protests, strikes, and even rises in new radical political parties.
However, the EU has one interesting format in which Russia could potentially exploit, and that is that every treaty, act of war, or sanction must be ratified unanimously by all member states within the Union.  And the crack by which Vladimir Putin could use to break the coalition has always been Greece.
Greece is an EU nation that has been brutally crushed by the likes of Germany, the IMF, and the oligarchs in Brussels.  And their ongoing six years of forced austerity is derived primarily from onerous loans forced upon them by banks such as Goldman Sachs, and corrupt technocrats assigned to run Greece following the 2008 financial collapse.  Thus a growing hatred of both Germany and the European Commission by the people of Greece is a door right now being used by Russia to break just one country that could stand up and reject the renewal of sanctions against them when they come up for a vote in June.
Putin