Sep 062017
By Paul Ebeling on September 6, 2017 China Begins Resetting The World’s Reserve Currency System $GLD, $OIL, $CNY It is a strategic move swapping Crude Oil for Gold, rather than for US Treasuries, which can be printed at will. A report released by the Nikkei Asian Review indicates that China is prepared to release a RMB Yuan denominated Crude Oil futures contract that is convertible, aka backed by physical Gold. The contract will enable China’s largest Crude Oil suppliers to settle Crude Oil sales in RMB Yuan, rather than in USDs, and then convert the RMB Yuan into Gold on exchanges in Hong Kong and Shanghai. This is a significant step in removing the global reserve currency status of USD, and resetting the global economic and geopolitical “landscape.” Over the past several years, China has quietly established RMB Yuan-based currency exchange facilities, which has set up the ability to implement this new non-USD trade settlement financial instrument. According to the Brookings Institute, 34 Central Banks around the world have signed bi-lateral local currency swap agreements with the PBOC (Peoples Bank of China) as of the end of September 2016, including the major Crude Oil-producing countries. With this new contract, China’s largest Crude Oil suppliers will now be able to transact directly with China, and other Crude Oil importing countries, using RMB Yuan which are directly convertible into Gold to settle the trade. This is a mechanism which is likely to appeal to Crude Oil producers that prefer to avoid using USDs, and are not ready to accept that being paid in RMB Yuan for Crude Oil sales to China is a good idea yet. Since Y 1973, OPEC Crude Oil has been quoted and traded using USDs, otherwise known as “Petrodollars.” The “recycling” of petrodollars into US Treasuries has been the life-blood of the US economic and political system. In addition to reducing a major source of funding for the US Government’s enormous deficit spending, the introduction of a Gold-backed RMB Yuan Crude Oil futures contract is an important step toward removing the USD as the world’s reserve currency. More significantly it re-introduces Gold into the global monetary system. As the new Gold-backed “Petroyuan” will allow Crude Oil producers to sell Crude Oil for Gold rather than US Treasuries. Furthermore, it reduces the ability of the US Government to impose its will on the rest of the world. And is a strategic step toward not only ridding the (more…)
Oct 192014
Good day everyone, I have asked many people the question “if you were being robbed would you rather give up your Money or your Currency?” I would give up my currency! These specific memes and mantras are in place to confuse and the protocols and procedures derived from them are practised until you only hear their language and descriptions of conditions and events. Money represents human labor and natural resources. Money is perceived to be the value of goods and services rendered. Be careful, never call currency money. Money is created through resources and labor, currency is the illusion of money. We print currency with ink on paper, to represent Money, you can’t print Money. Read on and watch the video. – Mike Stop calling currency money Your true wealth is your time and freedom. Money is just a tool for trading your time. It’s a container to store your economic energy until you’re ready to deploy it. But the whole world has been turned away from real money and has been fooled into using currency, – a deceitful impostor that is silently stealing your two most valuable assets. Your time and your freedom. Welcome to the rabbit hole. We are entering a period of financial crisis that is the greatest the world has ever known. The wealth transfer that will take place during this decade is the greatest wealth transfer in history. Wealth is never destroyed. It is merely transferred. And that means that on the opposite side of every crisis there is an opportunity. The great news is that all you have to do to turn this crisis into your great opportunity is to educate yourself. I believe that the best investment that you can make in your lifetime is your own education. Education on the history of money. Education on finance. Education on how the global economy works. Education on how all of these guys, the central bankers, the stock market, how they can cheat you. How they can scam you. If you learn what is going on and how the financial world works, you can put yourself on the correct side of this wealth transfer. Silver & Gold – Hidden Secrets Of Money Ep 1 – Currency vs Money – Mike Maloney [hdvideo id=18] Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
May 302011
The Wall Street Journal China Real Time Report China’s effort to make the yuan an international currency is running into complications, including the deeply ironic outcome that it is actually boosting the country’s massive stockpile of foreign currency. As awareness builds of these unintended consequences, prominent voices are now calling on Beijing to take a step back and slow the pace of yuan internationalization. The yuan drive is partly due to Beijing’s frustration with reliance on the U.S. dollar as a global currency in the aftermath of the U.S. financial crisis. Since it began on an experimental basis in 2009, yuan trade settlement has grown rapidly, rising more than 20-fold from a year earlier to reach 7% of China’s total foreign trade in the first quarter. But dollar dependence is proving a hard habit to kick. Yu Yongding, a former central bank adviser turned strident central bank critic, is the latest to raise questions about the wisdom of rapid yuan internationalization. Rather than reducing China’s accumulation of foreign exchange reserves, yuan trade settlement is actually having the opposite impact, and the process needs to managed carefully, Yu wrote in an essay published on Monday by the Chinese Academy of Social Sciences. This perverse state of affairs arises because people outside of China are keen to accept yuan as payment, believing it will appreciate. For the same reason, they are less keen to pay for goods with yuan — and don’t have much of it on hand in the first place. Analysts estimate around 80% of current yuan trade settlement is to pay for imports. As more and more imports are paid for in yuan rather than dollars or euros, less foreign currency is drained from the Chinese economy, leaving Beijing at the end of the day holding more foreign currency reserves than it otherwise would. Mark Williams, an economist at Capital Economics, estimates this effect contributed around $40 billion to China’s foreign currency stockpile – equal to roughly 20% of growth in the reserves– in the first quarter. That is a particularly vexing outcome for Mr. Yu, who has emerged in recent years as one of the world’s biggest critics of U.S. Treasury bonds, an asset in which a large proportion of China’s foreign exchange reserves are invested. In a separate essay last month, Mr. Yu denounced U.S. Treasury bonds as a giant ponzi scheme supported by Federal Reserve purchases. (more…)