The US Needs Global Conflicts: Russia and China Are Existential Threats to Dollar Dominance

[TaiShang]

The US Needs Global Conflicts: Russia and China Are Existential Threats to Dollar Dominance
http://russia-insider.com/en/real-reason-us-keen-blame-russia-everything-gold/ri19658

China and Russia, along with the member nations of the SCO, EEU and BRICS are preparing to break free from the dollar. For Washington this is unacceptable.

Rory Hall


Targets for a reason.

As we reported on March 30, China and Russia are taking steps to move away from their out of control “cousin”, the US dollar — and world reserve currency.

We learned in March 2016 that Kazakistan had been in formal talks with the Shanghai Gold Exchange regarding gold as currency along the New Silk Road (One Belt One Road) spearheaded by China. Kazakistan also smelts most of Russia’s gold and mines a small amount gold annually and is a member of both the Shanghai Cooperation Organization (SCO) and Eurasia Economic Union (EEU).

Then, in October of 2016 we continued covering how China had been working directly with the IMF to get the yuan/renminbi currency added to the SDR basket of currencies for global trade. That now appears to be a cover story for what lay ahead. With the renminbi now a global currency that changes how the renminbi functions within the currency markets and in global trade negotiations.

For the better part of the past year it has seemed as if the mainstream media, with talking points from the federal government, had been 100% obsessed with “Russia did it!!” “It” could be anything as the story has morphed so many times it’s hard to keep track. The “it” is not near as important as the cheerleading by the MSM to remind the public Russia is to blame!

The Russian obsession has, for the past several months, been running along side a new “enemy” – China. China and the South China Sea has been another point of beating war drums for the mainstream media. We now have two new enemies outside of Syrian President Assad, Iran, Iraq, Libya and whoever else we feel we need to bully. The whole list of enemies continues to grow even though there are exactly zero threats to the U.S. from any of these countries.

China began working their CIPS system, global trade settlement system, in October 2016, the same time the renminbi joined the SDR basket, allowing China to conduct global trade outside the U.S. owned and operated SWIFT system. Both systems are used to settle global trade transactions and the SWIFT system has been geared to the Federal Reserve Note – U.S. dollar – while the CIPS system is geared to the Chinese renminbi.

China International Payment System (CIPS) was launched last October [2015] and is now entering into the second phase of its implementation. Phase Two will allow for a further widening of the trading band between the RMB and USD, which will in turn give the Federal Reserve additional room to raise rates. I predicted almost two years ago that CIPS would not overthrow or compete with the USD dominated SWIFT. I suggested that both platforms would share a base code and would work together to transform the monetary framework. That is exactly what is happening.

China strategically stated their gold reserves for the first time in 6 years in the lead up to the SDR announcement last year. This exact strategic announcement by China was predicted here on POM. Source

Enter Russia and their global trade settlement system based in Russian rubbles. It is not quiet ready for prime time, but not to worry, they are working around the clock to put the final pieces in place. Within the past two weeks Russia announced to the world where the system is, specifically, along with what is already in place.

“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. Source

The picture should be getting a little clearer as to why Russia and, now China, has become the absolute “enemy” and must made into a monster by the mainstream media who are utilizing the warmongers talking points coming out of the back hallways of the federal government. Odds are the people occupying the back hallways of the Federal Reserve are also providing guidance to the mainstream media in just how to keep the “Russian enemy” in front of the American people. If it’s not about the reserve currency, Federal Reserve Note, U.S. dollar, then explain this:

One of the most significant measures under consideration is the previously reported push for 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, the 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.

“We discussed the question of trade in gold. 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,” First Deputy Governor of the Russian Central Bank Sergey Shvetsov told Russia’s TASS news agency. Source

Let’s take a look at the next step. Now that Russia and China have systems to conduct global trade outside of the Federal Reserve Note, U.S. dollar, both nations can make decisions that benefit their countries, and benefit their business interest, without fear their currencies will be disabled like what happened to Iran in March 2012. Iran was only reconnected to the SWIFT system in February 2017. Having another nation control your currency is a can be devastating. Iran learned the hard way and both Russia and China now have the capability to keep all currencies functioning both internally and globally, outside the SWIFT, U.S. dollar system.

Just last week we learned the BRICS nations are discussing the development of a “gold marketplace”.

Future plans to facilitate transactions between Moscow and Beijing in gold would certainly explain why the two countries are leading gold producers and buyers.

Creating a BRICS “gold marketplace” would be an excellent way of bypassing the dollar while also using a “currency” that could be easily recycled for trade with other member nations.

And while trading in gold won’t happen overnight, BRICS states have already moved towards creating a “new financial architecture” that “tackles the dominance of the U.S. dollar in global finance”:

The initiatives taken by the member nations of BRICs (Brazil, Russia, India, China, and South Africa) to set up a new financial architecture at its eighth summit held in October 2016 in India have recently been under the spotlight. In order to avoid the International Monetary Fund (IMF) type of loan conditionalities and tackle the dominance of the United States (US) dollar in global finance, the new institutions set up by the BRICs are expected to provide a much needed change in the global financial architecture. These institutions include the New Development Bank (NDB), the BRICS-led Contingency Reserve Fund (CRF), and the Asian Infrastructure Investment Bank (AIIB). Source

The Federal Reserve Note, U.S. dollar, has enjoyed a good long run as the world reserve currency. The Federal Reserve, their member banks and the U.S. federal government have stolen from nations around the world, 185 in total. The Federal Reserve, through the world reserve currency status, has been able to push inflation out of the U.S. economy and onto other nations. China and Russia, along with the member nations of the SCO, EEU and BRICS are in the final stages of moving completely away from the Federal Reserve Note, which is quickly becoming useless on the global stage.

China is already using a gold currency. $14.5 Million worth of gold currency was used in transactions during the 2017 Chinese Lunar New Year across the “we chat” platform. This is not a gold backed currency, this is a gold currency.

While these nations continue acquiring ton upon ton of gold the U.S. continues to acquire billions upon billions in debt. Which scenario is more sustainable? As these nations continue to build out their trading systems, to circumvent the world reserve currency, how will the U.S. contend with this new reality? The U.S. government is currently acting like the drunken cousin described above.

Why would BRICS nations, who are responsible for a significant portion of global GDP, continue to accept how the U.S. has treated them? The belligerence coming out of the White House and Pentagon, by way of NATO, has created a global divid. The U.S. is broke and can not pay back the owed debt. We can only bully other nations, steal their gold and bomb those that do not fall into line. Russia and China are large enough, wealthy enough and strong enough, militarily, to stand up to the U.S. They have been quietly going about their business – conducting business – while the U.S. has continually conducted war with anyone and everyone. The U.S. has now set its sights on these two power house nations. These nations are not Syria, Libya, Iraq or any of the other tiny nations these warmongers have bullied. This time it will be different and the golden rule still applies – he who has the gold makes the rules. China and Russia have the gold, the U.S. has debt.

Source: http://russia-insider.com/en/real-reason-us-keen-blame-russia-everything-gold/ri19658


@Shotgunner51

 

[samsara]

Grandmaster Putin's Golden Trap

By Dmitry Kalinichenko - Gold-Eagle - 2014.11.23

Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.

No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.

Putin is NOT shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!

To understand this, it is enough to look at the dynamics of growth of gold reserves of Russia and to compare this data with foreign exchange earnings of the RF coming from the sale of oil and gas over the same period.

Moreover, in the third quarter the purchases by Russia of physical gold are at an all-time high, record levels. In the third quarter of this year, Russia had purchased an incredible amount of gold in the amount of 55 tons. It's more than all the central banks of all countries of the world combined (according to official data)!

In total, the central banks of all countries of the world have purchased 93 tons of the precious metal in the third quarter of 2014. It was the 15th consecutive quarter of net purchases of gold by Central banks. Of the 93 tonnes of gold purchases by central banks around the world during this period, the staggering volume of purchases - of 55 tons - belongs to Russia.

Not so long ago, British scientists have successfully come to the same conclusion, as was published in the Conclusion of the U.S. Geological survey a few years ago. Namely: Europe will not be able to survive without energy supply from Russia. Translated from English to any other language in the world it means: "The world will not be able to survive if oil and gas from Russia is subtracted from the global balance of energy supply".

Thus, the Western world, built on the hegemony of the petrodollar, is in a catastrophic situation. In which it cannot survive without oil and gas supplies from Russia. And Russia is now ready to sell its oil and gas to the West only in exchange for physical gold! The twist of Putin's game is that the mechanism for the sale of Russian energy to the West only for gold now works regardless of whether the West agrees to pay for Russian oil and gas with its artificially cheap gold, or not.

Since Russia has a constant flow of dollars from the sale of oil and gas, it will be able to convert these dollars to buy gold at current gold prices, depressed by all means by the West. This equates gold price, which had been artificially and meticulously lowered by the Fed and ESF many time…via artificially inflated purchasing power of the dollar through market manipulation.

Interesting fact: The suppression of gold prices by the special department of US Government - ESF (Exchange Stabilization Fund) - with the aim of stabilizing the dollar has been made into a law in the United States.

In the financial world it is (generally) accepted as a given that gold is anti-dollar…i.e. the gold price runs inverse to value of the dollar.

• In 1971, US President Richard Nixon closed the 'gold window', ending the free exchange of dollars for gold, guaranteed by the US in 1944 at Bretton Woods.
• In 2014, Russian President Vladimir Putin has reopened the 'gold window', without asking Washington's permission.

Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. Thereby, on the one hand to distort the existing economic reality in favor of the US dollar …and on the other hand, to destroy the Russian economy, refusing to play the role of obedient vassal of the West.

Today assets such as gold and oil look proportionally weakened and excessively, undervalued against the US dollar. It is a consequence of the enormous economic effort on the part of the West.

And now Putin sells Russian energy resources in exchange for these US dollars, artificially propped by the efforts of the West. With these dollar proceeds Putin immediately buys gold, artificially devalued against the U.S. dollar by the efforts of the West itself!

There is another interesting element in Putin's game. It's Russian uranium. Every sixth light bulb in the USA depends on its supply, which Russia sells to the US too…for dollars.

Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with dollars, purchasing power of which is artificially inflated against oil and gold by the efforts (manipulations) of the West. However, Putin uses these dollars only to withdraw physical gold from the West in exchange at a price denominated in US dollars, artificially lowered by the same West.

This truly brilliant economic combination by Putin puts the West led by the United States in a position of a snake, aggressively and diligently devouring its own tail.

The idea of this economic golden trap for the West is probably not authored by Putin himself. Most likely it was the idea of Putin's Advisor for Economic Affairs – Dr. Sergey Glazyev. Otherwise, why seemingly not involved in business bureaucrat Glazyev, along with many Russian businessmen, was personally included by Washington on the sanction list? The idea of an economist, Dr. Glazyev was brilliantly executed by Putin…but with full endorsement from his Chinese colleague - XI Jinping.

Especially interesting in this context looks the November statement of the first Deputy Chairman of Central Bank of Russia Ksenia Yudaeva, which stressed that the CBR can use the gold from its reserves to pay for imports, if need be. It is obvious that in terms of sanctions by the Western world, this statement is addressed to the BRICS countries, and first of all China. For China, Russia's willingness to pay for goods with Western gold is very convenient. And here's why:

China recently announced that it will cease to increase its gold and currency reserves denominated in US dollars. Considering the growing trade deficit between the US and China (the current difference is five times in favor of China), then this statement translated from the financial language reads: "China stops selling their goods for dollars". The world's media chose not to notice this grandest in the recent monetary historic event. The issue is not that China literally refuses to sell its goods for US dollars. China, of course, will continue to accept US dollars as an intermediate means of payment for its goods. But, having taken dollars, China will immediately get rid of them and replace with something else in the structure of its gold and currency reserves. Otherwise the statement made by the monetary authorities of China loses its meaning: "We are stopping the increase of our gold and currency reserves, denominated in US dollars." That is, China will no longer buy United States Treasury bonds for dollars earned from trade with any countries, as they did this before.

Thus, China will replace all the dollars that it will receive for its goods not only from the US but from all over the world with something else not to increase their gold currency reserves, denominated in US dollars. And here is an interesting question: what will China replace all the trade dollars with? What currency or an asset? Analysis of the current monetary policy of China shows that most likely the dollars coming from trade, or a substantial chunk of them, China will quietly replace and de facto is already replacing with Gold.

In this aspect, the solitaire of Russian-Chinese relations is extremely successful for Moscow and Beijing. Russia buys goods from China directly for gold at its current price. While China buys Russian energy resources for gold at its current price. At this Russian-Chinese festival of life there is a place for everything: Chinese goods, Russian energy resources, and gold - as a means of mutual payment. Only the US dollar has no place at this festival of life. And this is not surprising. Because the US dollar is not a Chinese product, nor a Russian energy resource. It is only an intermediate financial instrument of settlement - and an unnecessary intermediary. And it is customary to exclude unnecessary intermediaries from the interaction of two independent business partners.

It should be noted separately that the global market for physical gold is extremely small relative to the world market for physical oil supplies. And especially the world market for physical gold is microscopic compared to the entirety of world markets for physical delivery of oil, gas, uranium and goods.

Emphasis on the phrase "physical gold" is made because in exchange for its physical, not 'paper' energy resources, Russia is now withdrawing gold from the West, but only in its physical, not paper form. China accomplishes this by acquiring from the West the artificially devalued physical gold as a payment for physical delivery of real products to the West.

The West hopes that Russia and China will accept as payment for their energy resources and goods…the "shitcoin" [ LoL ] or so-called "paper gold" of various kinds also did not materialize. Russia and China are only interested in real gold and only the physical metal as a final means of payment.

For reference: the turnover of the market of paper gold, only of gold futures, is estimated at $360 billion per month. But physical delivery of gold is only for $280 million a month. This equates to a ratio of trade of paper gold versus physical gold to 1000 to 1.

Using the mechanism of active withdrawal from the market of one artificially lowered by the West financial asset (gold) in exchange for another artificially inflated by the West financial asset (USD), Putin has thereby started the countdown to the end of the world hegemony of petrodollar. Thus, Putin has put the West in a deadlock of the absence of any positive economic prospects.

The West can spend as much of its efforts and resources to artificially increase the purchasing power of the dollar, lower oil prices and artificially lower the purchasing power of gold. The problem of the West is that the stocks of physical gold in possession of the West are not unlimited. Therefore, the more the West devalues oil and gold against the US dollar, the faster it loses devaluing Gold from its not infinite reserves.

In this brilliantly played by Putin economic combination, physical gold from the reserves of the West is rapidly flowing to Russia, China, Brazil, Kazakhstan and India (i.e. the BRICS countries). At the current rate of reduction of reserves of physical gold, the West simply does not have the time to do anything against Putin's Russia until the collapse of the entire Western petrodollar world. In chess the situation in which Putin has put the West, led by the US, is called "time trouble".

The Western world has never faced such economic events and phenomena that are happening right now. The former USSR rapidly sold gold during the fall of oil prices. Today, Russia rapidly buys gold during the fall in oil prices. Thus, Russia poses a real threat to the American model of petrodollar world domination.

The main principle of world petrodollar model is allowing Western countries led by the United States to live at the expense of the labor and resources of other countries…based on the role of the US currency, dominant in the global monetary system (GMS). The role of the US dollar in the GMS is that it is the ultimate means of payment. This means that the national currency of the United States in the structure of the GMS is the ultimate asset accumulator, to exchange which to any other asset does not make sense.

Led by Russia and China, what the BRICS are doing now is actually changing the role and status of the US dollar in the global monetary system. From the ultimate means of payment and asset accumulation, the national currency of the USA, by the joint actions of Moscow and Beijing is turned into only an intermediate means of payment. Intended only to exchange this interim payment for another and the ultimate financial asset - gold. Thus, the US dollar loans actually loses its role as the ultimate means of payment and asset accumulation, yielding both of those roles to another recognized, denationalized and depoliticized monetary asset – GOLD!

Traditionally, the West has used TWO methods to ELIMINATE the threat to the hegemony of PETRODOLLAR model in the world and the consequent excessive privileges for the West:

One of these methods - COLORED REVOLUTIONS. The second method, which is usually applied by the West, if the first fails - military aggression and bombing.

But in Russia's case both of these methods are either impossible or unacceptable for the West.

Because, firstly, the population of Russia, unlike people in many other countries, does not wish to exchange their freedom and the future of their children for Western kielbasa (meat sausage). This is evident from the record ratings of Putin, regularly published by the leading Western rating agencies. Personal friendship of Washington protégé Navalny with Senator McCain played for him and Washington a very negative role. Having learned this fact from the media, 98% of the Russian population now perceive Navalny only as a vassal of Washington and a traitor to Russia's national interests. Therefore Western professionals, who have not yet lost their mind, cannot dream about any color revolution in Russia.

As for the second traditional Western way of direct military aggression, Russia is certainly NOT Yugoslavia, not Iraq nor Libya. In any non-nuclear military operation against Russia, in the territory of Russia, the West led by the US is doomed to defeat. And the generals in the Pentagon exercising real leadership of NATO forces are aware of this. Similarly hopeless is a nuclear war against Russia, including the concept of so-called "preventive disarming nuclear strike". NATO is simply not technically able to strike a blow that would completely disarm the nuclear potential of Russia in all its many manifestations. A massive nuclear retaliatory strike on the enemy or a pool of enemies would be inevitable. And its total capacity will be enough for survivors to envy the dead. That is, an exchange of nuclear strikes with a country like Russia is not a solution to the looming problem of the collapse of a petrodollar world. It is in the best case, a final chord and the last point in the history of its existence. In the worst case - a nuclear winter and the demise of all life on the planet, except for the bacteria mutated from radiation.

The Western economic establishment can see and understand the essence of the situation. Leading Western economists are certainly aware of the severity of the predicament and hopelessness of the situation the Western world finds itself in, in Putin's economic gold trap. After all, since the Bretton Woods agreements, we all know the Golden rule: "Who has more gold sets the rules." But everyone in the West is silent about it. Silent because no one knows now how to get out of this situation.

If you explain to the Western public all the details of the looming economic disaster, the public will ask the supporters of a petrodollar world the most horrific questions, which will sound like this:

- How long will the West be able to buy oil and gas from Russia in exchange for physical gold?

- And what will happen to the US petrodollar after the West runs out of physical gold to pay for Russian oil, gas and uranium, as well as to pay for Chinese goods?

No one in the west today can answer these seemingly simple questions.

And this is called "Checkmate", ladies and gentlemen. The game is over.

********

The above article was translated by Kristina Rus - which originally appeared in Russian at http://investcafe.ru/blogs/mbcy/posts/46245#

 

[Fledgingwings]

Golden Trap for USA.hmmmm !

 

[ahojunk]

These articles give a good background as to the real reasons for getting rid of Saddam and Ghadaffi.

Yes, Saddam and Ghadaffi were both dictators and were not angels. If you ask the people of Iraq and Libya today, I am sure the majority would love to get these dictators back (if they could).

They got rid of Saddam because he was trying to sell his oil in Euro. There was no WMD.

Likewise, they got rid of Ghadaffi because he was trying to sell his oil in gold dinars.

Without the backing of the "petrodollar", the US currency is just a fiat currency.

 

[Mangus Ortus Novem]

Controlled demolition. This is.

BRICS is dead. After Brazilian coup and indian joining the empire...there are olnly R & C.

However, we will see 20 largest economies in the RC block forming a BRICS+. The idea is already floated by the PRC.

It is like placing a piece on Go board. It doesn't look important but as the game progresses it becomes vital.

Other infrastructure is already in place. Shanghai Gold & Oil tranding, is one such example.

RC Axis is moving in a systematic and cautious manner. All provocations of the empire have been wisely ignored and momentum of RC policy is intact.

However, it is not a done deal yet. JP in ECS & SCS. The increased provocations coming from india...be it CPEC or South Tibet. Syria and Ukraine. Movement of NATO to the Russian borders... troublemakers are not done yet. Hardly.

If anyone thinks that the empire will go peacefully into the sunset, it will be grave mistake.

OBOR is great threat to established global economic/financial order. This inclusive economic framework is a mortal threat to financial hegemony of empire's elites.

RAND published a paper after the financial crisis...arguing for great war to revive the economy.
Now we are very close to meltdown and Great War is a distinct possibility.

War is stupid and must be avoided.

Yet the world, humanity needs a new paradigm of cooperation and inclusive growth. More than half a mellenium of empire is enough.

World will be a better place with multiple Financial and Economic poles...each region following its own model of development suited to its unique needs and conditions.

Peace breeds Harmony.

Empires hate peace.

 

[powastick]

https://www.foreignpolicyjournal.co...6/01/110402-France-client-gold-State-Dept.pdf
From: sbwhoeop
Sent: Saturday, April 2, 2011 10:44 PM
To: Subject: H: France's client & Q's gold.Sid
Attachments: hrc memo France's client & Q's gold 040211.docx; hrc memo France's client & Q's gold 040211.docx

CONFIDENTIAL April 2,.2011 For: Hillary From: Sid Re: France's client & Qaddafi's gold
1. A high ranking official on the National Libyan Council states that factions have developed within it. In part this reflects the cultivation by France in particular of clients among the rebels. General Abdelfateh Younis is the leading figure closest to the French, who are believed to have made payments of an unknown amount to him. Younis has told others on the NLC that the French have promised they will provide military trainers and arms. So far the men and materiel have not made an appearance. Instead, a few "risk assessment analysts" wielding clipboards have come and gone. Jabril, Jalil and others are impatient. It is understood that France has clear economic interests at stake. Sarkozy's occasional emissary, the intellectual self-promoter Bernard Henri-Levy, is considered by those in the NLC who have dealt with him as a semi-useful, semi-joke figure.
2. Rumors swept the NLC upper. echelon this week that Qaddafi may be dead or maybe not.
3. Qaddafi has nearly bottomless financial resources to continue indefinitely, according to the latest report we have received:

On April 2, 2011 sources with access to advisors to Salt al-Islam Qaddafi stated in strictest confidence that while the freezing of Libya's foreign bank accounts presents Muammar Qaddafi with serious challenges, his ability to equip and maintain his armed forces and intelligence services remains intact. According to sensitive information available to this these individuals, Qaddafi's government holds 143 tons of gold, and a similar amount in silver. During late March, 2011 these stocks were moved to SABHA (south west in the direction of the Libyan border with Niger and Chad); taken from the vaults of the Libyan Central Bank in Tripoli.

This gold was accumulated prior to the current rebellion and was intended to be used to establish a pan-African currency based on the Libyan golden Dinar. This plan was designed to provide the Francophone African Countries with an alternative to the French.franc (CFA).

(Source Comment: According to knowledgeable individuals this quantity of gold and silver is valued at more than $7 billion. French intelligence officers discovered this plan shortly after the current rebellion began, and this was one of the factors that influenced President Nicolas Sarkozy's decision to commit France to the attack on Libya. According to these individuals Sarkozy's plans are driven by the following issues:
a. A desire to gain a greater share of Libya oil production,
b. Increase French influence in North Africa,
c. Improve his intemai political situation in France,
d. Provide the French military with an opportunity to reassert its position in the world,
e. Address the concern of his advisors over Qaddafi's long term plans to supplant France as the dominant power in Francophone Africa)

On the afternoon of April 1, an individual with access to the National Libyan Council (NLC) stated in private that senior officials of the NLC believe that the rebel military forces are beginning to show signs of improved discipline and fighting spirit under some of the new military commanders, including Colonel Khalifha Haftar, the former commander of the antiQaddafi forces in the Libyan National Army (LNA). According to these sources, units defecting from Qaddafi's force are also taking a greater role in the fighting on behalf of the rebels:

 

[ahojunk]

According to knowledgeable individuals this quantity of gold and silver is valued at more than $7 billion.

I wonder where these precious metals are now.
Btw, China has also lost a few billion dollars in Libya.

 

[powastick]

I wonder where these precious metals are now.
Btw, China has also lost a few billion dollars in Libya.

Libyan people are fools.

 

[samsara]

https://www.foreignpolicyjournal.co...6/01/110402-France-client-gold-State-Dept.pdf
From: sbwhoeop
Sent: Saturday, April 2, 2011 10:44 PM
To: Subject: H: France's client & Q's gold.Sid
Attachments: hrc memo France's client & Q's gold 040211.docx; hrc memo France's client & Q's gold 040211.docx

CONFIDENTIAL April 2,.2011 For: Hillary From: Sid Re: France's client & Qaddafi's gold
1. A high ranking official on the National Libyan Council states that factions have developed within it. In part this reflects the cultivation by France in particular of clients among the rebels. General Abdelfateh Younis is the leading figure closest to the French, who are believed to have made payments of an unknown amount to him. Younis has told others on the NLC that the French have promised they will provide military trainers and arms. So far the men and materiel have not made an appearance. Instead, a few "risk assessment analysts" wielding clipboards have come and gone. Jabril, Jalil and others are impatient. It is understood that France has clear economic interests at stake. Sarkozy's occasional emissary, the intellectual self-promoter Bernard Henri-Levy, is considered by those in the NLC who have dealt with him as a semi-useful, semi-joke figure.
2. Rumors swept the NLC upper. echelon this week that Qaddafi may be dead or maybe not.
3. Qaddafi has nearly bottomless financial resources to continue indefinitely, according to the latest report we have received:

On April 2, 2011 sources with access to advisors to Salt al-Islam Qaddafi stated in strictest confidence that while the freezing of Libya's foreign bank accounts presents Muammar Qaddafi with serious challenges, his ability to equip and maintain his armed forces and intelligence services remains intact. According to sensitive information available to this these individuals, Qaddafi's government holds 143 tons of gold, and a similar amount in silver. During late March, 2011 these stocks were moved to SABHA (south west in the direction of the Libyan border with Niger and Chad); taken from the vaults of the Libyan Central Bank in Tripoli.

This gold was accumulated prior to the current rebellion and was intended to be used to establish a pan-African currency based on the Libyan golden Dinar. This plan was designed to provide the Francophone African Countries with an alternative to the French.franc (CFA).

(Source Comment: According to knowledgeable individuals this quantity of gold and silver is valued at more than $7 billion. French intelligence officers discovered this plan shortly after the current rebellion began, and this was one of the factors that influenced President Nicolas Sarkozy's decision to commit France to the attack on Libya. According to these individuals Sarkozy's plans are driven by the following issues:
a. A desire to gain a greater share of Libya oil production,
b. Increase French influence in North Africa,
c. Improve his intemai political situation in France,
d. Provide the French military with an opportunity to reassert its position in the world,
e. Address the concern of his advisors over Qaddafi's long term plans to supplant France as the dominant power in Francophone Africa)

On the afternoon of April 1, an individual with access to the National Libyan Council (NLC) stated in private that senior officials of the NLC believe that the rebel military forces are beginning to show signs of improved discipline and fighting spirit under some of the new military commanders, including Colonel Khalifha Haftar, the former commander of the antiQaddafi forces in the Libyan National Army (LNA). According to these sources, units defecting from Qaddafi's force are also taking a greater role in the fighting on behalf of the rebels:

Following information is just intended to amplify the harsh reality of CFA franc currency regime in the West and Central Africa! Most people are not aware of this reality, I just realized such currency regime last year

Read on how France is still financially enslaving the 14 African countries through its control over their national currencies, the so-called CFA franc currency regime. Those African countries continue to pay colonial tax to France since their independence till today. In March 2008, former French President Jacques Chirac said: “Without Africa, France will slide down into the rank of a third [world] power”. Chirac’s predecessor François Mitterand already prophesied in 1957 that: “Without Africa, France will have no history in the 21st century.”

CFA francs are used in fourteen countries: twelve formerly French-ruled nations in West and Central Africa, as well as in Guinea-Bissau (a former Portuguese colony) and in Equatorial Guinea (a former Spanish colony). These fourteen countries have a combined population of 147.5 million people (as of 2013), and a combined GDP of US$166.6 billion (as of 2012).

The 14 African countries are obliged by France, through a colonial pact, to put 85% of their foreign reserve into the central bank of France under the control of French Minister of Finance. UNTIL NOW, Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, Togo, Cameroon, Central African Republic, Chad, Republic of the Congo (also called Congo-Brazzaville), Equatorial Guinea, Gabon still have to pay colonial debt to France. African leaders who refuse are killed or victim of coup. Those who obey are supported and rewarded by France with lavish lifestyle while their people endure extreme poverty, and desperation.

JUST READ ON....

France’s Colonial Tax Still Enforced for Africa. “Bleeding Africa and Feeding France” | Global Research - Centre for Research on Globalization
http://www.globalresearch.ca/france...ca-bleeding-africa-and-feeding-france/5547512

 

[powastick]

Following information is just intended to amplify the harsh reality of CFA franc currency regime in the West and Central Africa! Most people are not aware of this reality, I just realized such currency regime last year

Read on how France is still financially enslaving the 14 African countries through its control over their national currencies, the so-called CFA franc currency regime. Those African countries continue to pay colonial tax to France since their independence till today. In March 2008, former French President Jacques Chirac said: “Without Africa, France will slide down into the rank of a third [world] power”. Chirac’s predecessor François Mitterand already prophesied in 1957 that: “Without Africa, France will have no history in the 21st century.”

CFA francs are used in fourteen countries: twelve formerly French-ruled nations in West and Central Africa, as well as in Guinea-Bissau (a former Portuguese colony) and in Equatorial Guinea (a former Spanish colony). These fourteen countries have a combined population of 147.5 million people (as of 2013), and a combined GDP of US$166.6 billion (as of 2012).

The 14 African countries are obliged by France, through a colonial pact, to put 85% of their foreign reserve into the central bank of France under the control of French Minister of Finance. UNTIL NOW, Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, Togo, Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, Gabon still have to pay colonial debt to France. African leaders who refuse are killed or victim of coup. Those who obey are supported and rewarded by France with lavish lifestyle while their people endure extreme poverty, and desperation.

JUST READ ON....

France’s Colonial Tax Still Enforced for Africa. “Bleeding Africa and Feeding France” | Global Research - Centre for Research on Globalization
http://www.globalresearch.ca/france...ca-bleeding-africa-and-feeding-france/5547512

I only know this year, after somebody brought into discussion.

 

[samsara]

U.S. Treasury Renminbi Bonds

By JC Collins - Philosophy of Metrics (POM) (2014.05.07) / Economics / 78 Comments

Carney was a tool but had the largest steel marbles on the block. The “steely” was the most sought after and traded of all the marbles, and Carney was a grand collector. Myths were born from his ability to bully smaller kids into trading their one or two heavy spheres for ten or twenty smaller and bland marbles. At one point I was certain that he had all the steelies in a 1 mile radius.

The afternoon laughter was usually broken by his emergence from the alley and into the field where we kids met every Saturday for the traditional game of marbles. With his girth and weight he would trample the smaller of the lot and settle at the highest edge of the ring.

Everyone hated playing with Carney because you would never win, even if you did. It was a lose-lose proposition which many refused to participate in.

Eventually a small grouping of kids joined together and began to avoid Carney altogether. They would randomly change the location each Saturday and start earlier in the afternoon. With each passing weekend Carney became more upset and angry over missing the games, not because he couldn’t expand his collection of steelies but because he was left out of the game altogether.

A method of separating Carney from his steely collection was soon devised. For each weekend which he wished to play, he had to trade back one large steely for smaller and less valuable marbles. Though not pleased about this at all, his choices were simple now that a group had taken up defense against him. One, he could continue to bully and unfairly trade with the other kids in order to expand his already large steelie collection. Or two, he could trade fairly and still be allowed to play the game with the others.

With the kids no longer divided, Carney’s choice was clear. The feeling of isolation and being left out was more impactful than the feelings of unwarranted reward. For what was the real value of his steely collection if nobody else wanted to play a game that involved them.

Never once in our childhood understanding of events did we question the fact that the real value of the marbles was provided by the parents who would give us the assorted bags and send us on our way. So focused on beating each other and transferring marbles amongst ourselves that we never thought to consider where the marbles were actually coming from.

As we continue on into adulthood there isn’t much that changed. Marbles are replaced with money and we have no idea where it came from. We just seeked to acquire more of it and trade with it.

The mechanism of how the U.S. Treasury issues dollar denominated bonds which are purchased by the Federal Reserve and foreign central banks is never fully understood by a very large percentage of the population.

It works the same in every country.

But can the U.S. Treasury issue bonds denominated in another countries currency? Say the Chinese Renminbi?

The short answer is yes.

How do we know this?

Simple, it was done before.

In 1978 the faith in the U.S. dollar was at an all time low and many countries were afraid that the dollar was becoming a bad store of value. Considering the debt process of money creation, once the Federal Reserve starting printing mass amounts of money in 1944 to stuff the central banks around the world in support of the reserve currency status, the Treasury needed to continue issuing bonds so the process wouldn’t fall flat and collapse the larger economy.

These bonds were called Carter bonds and were denominated in German marks and Swiss francs. The intent was to continue attracting foreign investments into Treasuries.

At the time many countries, including U.S. ally Japan, felt that the Treasury was attempting to inflate the debt away by devaluing the dollar. With increased money printing, being debt creation or expansion of credit, comes higher inflation. The more money you print, and the faster you print it, the faster inflation increases.

Faster inflation will eventually lead to negative real interest rates which in turn is a method of transferring debt away from investors and back to the government.

This is the QE money printing taking place at the Federal Reserve. With more QE we have seen higher inflation in the countries which hold Treasury debt.

The taper, designed flawlessly, is now transferring that devalued debt back to the government. In turn, as the debt comes home, gold is going the other way. Its a trade back, just like the steelies that Carney unfairly acquired from the other players.

One of the first posts I made here on PoM was titled China to Purchase the Federal Reserve. The essay got a lot of attention and has been well circulated around the internet. As prosperous as it first sounded, many things have happened since to suggest that the thesis may not have been that far from the mark.

To help understand what type of process could facilitate this business transaction, here’s an article from 2012 titled Fed Clears Way for Chinese Firms to Buy US Banks.

The purchase of the JP Morgan building by a Chinese firm has been well covered. The important thing to remember about this deal was that no one saw it coming until it was announced.

The same can be expected in the coming months as larger US bank purchases by Chinese firms are announced and the takeover of industry openly commences. See post The New American Industrialization.

China has so heavily invested in Detroit that its now being wondered if that city will be the first Chinese American city in the new financial and industrial age that is upon us.

When the Fed taper reaches zero I would suspect that we will see some dramatic moves in bond denomination. Western gold reserves are depleting at the similar rate as the taper. The balance between gold reserves and dollar debt is where the future tales are foreshadowed.

Many are selling fear oriented scenario’s based on economic collapse and dollar calamity. It is reasoned that hyperinflation will strike America and send prices skyrocketing. But inflation has been a constant since 1913. It’s commonly acknowledged that the method of measuring inflation has been manipulated along with all the other economic indicators, none more so than gold, silver and oil.

In the post The Greatest Game I suggested that gold and stock markets will collapse when the financial system completes the inevitable transition to the multilateral SDR system. Perhaps I am also guilty of using the word collapse but in the article and subsequent comments I make plain that few will notice much of a difference once the transition is complete.

In regards to gold, the big steely, we have seen the prices go up as QE was increasing. As the taper has unfolded we have seen the price of gold come down.

The other scenario we hear a lot about is that gold will rise to atmospheric levels when the dollar collapses. The dollar has already collapsed. Or is collapsing as we speak. This is why inflation numbers are manipulated. This is why gold prices are manipulated. This is why the Fed is now tapering. This is why the gold has already mostly gone East. This is why China is purchasing US banks and investing in American industry.

And this is why prices for goods are already going up in America, and have been for the last few years. Its just that there is little discussion about it.

The so-called collapse already happened. It’s just that no one noticed because it was hidden within QE and taper numbers, along with zero interest rates, high gold prices, and manufactured inflation metrics.

We are much closer to the final act of this financial system reset than many realize. Watch for the end of the taper. It approaches.

Like Carney having to trade his steelies back, the U.S. Treasury will soon be issuing Renminbi denominated bonds to secure investor confidence in America. And China will do its part by bringing American heavy industry back to life.

Remember, the SDR composition of the Renminbi is going to be massive. What we need to remember is who is handing us the marbles in the first place. – JC

https://philosophyofmetrics.com/u-s-treasury-renminbi-bonds/

 

[TaiShang]

U.S. Treasury Renminbi Bonds

By JC Collins - Philosophy of Metrics (POM) (2014.05.07) / Economics / 78 Comments

Carney was a tool but had the largest steel marbles on the block. The “steely” was the most sought after and traded of all the marbles, and Carney was a grand collector. Myths were born from his ability to bully smaller kids into trading their one or two heavy spheres for ten or twenty smaller and bland marbles. At one point I was certain that he had all the steelies in a 1 mile radius.

The afternoon laughter was usually broken by his emergence from the alley and into the field where we kids met every Saturday for the traditional game of marbles. With his girth and weight he would trample the smaller of the lot and settle at the highest edge of the ring.

Everyone hated playing with Carney because you would never win, even if you did. It was a lose-lose proposition which many refused to participate in.

Eventually a small grouping of kids joined together and began to avoid Carney altogether. They would randomly change the location each Saturday and start earlier in the afternoon. With each passing weekend Carney became more upset and angry over missing the games, not because he couldn’t expand his collection of steelies but because he was left out of the game altogether.

A method of separating Carney from his steely collection was soon devised. For each weekend which he wished to play, he had to trade back one large steely for smaller and less valuable marbles. Though not pleased about this at all, his choices were simple now that a group had taken up defense against him. One, he could continue to bully and unfairly trade with the other kids in order to expand his already large steelie collection. Or two, he could trade fairly and still be allowed to play the game with the others.

With the kids no longer divided, Carney’s choice was clear. The feeling of isolation and being left out was more impactful than the feelings of unwarranted reward. For what was the real value of his steely collection if nobody else wanted to play a game that involved them.

Never once in our childhood understanding of events did we question the fact that the real value of the marbles was provided by the parents who would give us the assorted bags and send us on our way. So focused on beating each other and transferring marbles amongst ourselves that we never thought to consider where the marbles were actually coming from.

As we continue on into adulthood there isn’t much that changed. Marbles are replaced with money and we have no idea where it came from. We just seeked to acquire more of it and trade with it.

The mechanism of how the U.S. Treasury issues dollar denominated bonds which are purchased by the Federal Reserve and foreign central banks is never fully understood by a very large percentage of the population.

It works the same in every country.

But can the U.S. Treasury issue bonds denominated in another countries currency? Say the Chinese Renminbi?

The short answer is yes.

How do we know this?

Simple, it was done before.

In 1978 the faith in the U.S. dollar was at an all time low and many countries were afraid that the dollar was becoming a bad store of value. Considering the debt process of money creation, once the Federal Reserve starting printing mass amounts of money in 1944 to stuff the central banks around the world in support of the reserve currency status, the Treasury needed to continue issuing bonds so the process wouldn’t fall flat and collapse the larger economy.

These bonds were called Carter bonds and were denominated in German marks and Swiss francs. The intent was to continue attracting foreign investments into Treasuries.

At the time many countries, including U.S. ally Japan, felt that the Treasury was attempting to inflate the debt away by devaluing the dollar. With increased money printing, being debt creation or expansion of credit, comes higher inflation. The more money you print, and the faster you print it, the faster inflation increases.

Faster inflation will eventually lead to negative real interest rates which in turn is a method of transferring debt away from investors and back to the government.

This is the QE money printing taking place at the Federal Reserve. With more QE we have seen higher inflation in the countries which hold Treasury debt.

The taper, designed flawlessly, is now transferring that devalued debt back to the government. In turn, as the debt comes home, gold is going the other way. Its a trade back, just like the steelies that Carney unfairly acquired from the other players.

One of the first posts I made here on PoM was titled China to Purchase the Federal Reserve. The essay got a lot of attention and has been well circulated around the internet. As prosperous as it first sounded, many things have happened since to suggest that the thesis may not have been that far from the mark.

To help understand what type of process could facilitate this business transaction, here’s an article from 2012 titled Fed Clears Way for Chinese Firms to Buy US Banks.

The purchase of the JP Morgan building by a Chinese firm has been well covered. The important thing to remember about this deal was that no one saw it coming until it was announced.

The same can be expected in the coming months as larger US bank purchases by Chinese firms are announced and the takeover of industry openly commences. See post The New American Industrialization.

China has so heavily invested in Detroit that its now being wondered if that city will be the first Chinese American city in the new financial and industrial age that is upon us.

When the Fed taper reaches zero I would suspect that we will see some dramatic moves in bond denomination. Western gold reserves are depleting at the similar rate as the taper. The balance between gold reserves and dollar debt is where the future tales are foreshadowed.

Many are selling fear oriented scenario’s based on economic collapse and dollar calamity. It is reasoned that hyperinflation will strike America and send prices skyrocketing. But inflation has been a constant since 1913. It’s commonly acknowledged that the method of measuring inflation has been manipulated along with all the other economic indicators, none more so than gold, silver and oil.

In the post The Greatest Game I suggested that gold and stock markets will collapse when the financial system completes the inevitable transition to the multilateral SDR system. Perhaps I am also guilty of using the word collapse but in the article and subsequent comments I make plain that few will notice much of a difference once the transition is complete.

In regards to gold, the big steely, we have seen the prices go up as QE was increasing. As the taper has unfolded we have seen the price of gold come down.

The other scenario we hear a lot about is that gold will rise to atmospheric levels when the dollar collapses. The dollar has already collapsed. Or is collapsing as we speak. This is why inflation numbers are manipulated. This is why gold prices are manipulated. This is why the Fed is now tapering. This is why the gold has already mostly gone East. This is why China is purchasing US banks and investing in American industry.

And this is why prices for goods are already going up in America, and have been for the last few years. Its just that there is little discussion about it.

The so-called collapse already happened. It’s just that no one noticed because it was hidden within QE and taper numbers, along with zero interest rates, high gold prices, and manufactured inflation metrics.

We are much closer to the final act of this financial system reset than many realize. Watch for the end of the taper. It approaches.

Like Carney having to trade his steelies back, the U.S. Treasury will soon be issuing Renminbi denominated bonds to secure investor confidence in America. And China will do its part by bringing American heavy industry back to life.

Remember, the SDR composition of the Renminbi is going to be massive. What we need to remember is who is handing us the marbles in the first place. – JC

https://philosophyofmetrics.com/u-s-treasury-renminbi-bonds/

China and Russia acting in tandem and cooperating during the time of systemic financial shifts is of greatest importance. During the Silk Road Forum, global financial arrangements will be a very important theme to discuss.

 

[Mangus Ortus Novem]

Whoever controls the issuance of money controls everything.

Fiat Rule is coming to its gradual end.

Pres. Xi has floated the idea a couple times already to have new global financial architecture that reflects the emerging reality.

Would be better for humanity to have multiple reserve currencies...herein lies the true new beginning of win-win paradigm and end of 500+ years of global empire.

Patience, foresight and wisdom...especially when the objective is so near.

Luckily, R+C Axis is moving with caution and design.

Let us hope...a peaceful birth of a multipolar world.

 

[Götterdämmerung]

Here is a Dutch guy who was a middleman of the finance world.

Must watch! With English subtitle.

 

[Shotgunner51]

Here is a Dutch guy who was a middleman of the finance world.

Must watch! With English subtitle.

Is the subtitle correct? Some parts were blurred but still able to grasp an idea what he says.