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De-Dollarization Spreads: Swiss & Chinese Central Banks Enter Swap Agreement
Submitted by Martin Armstrong via Armstrong Economics,
The Swiss National Bank and the People’s Bank of China reached a currency swap agreement this week. While this is not a huge trend changer in the near-term, it demonstrates that our forecast for China to become the largest economy and to be the next financial capital of the world when Europe and the USA blow themselves apart with defaulting socialism is on track. This agreement will allow the two central banks to buy and sell their currencies up to a limit of 150 billion renminbi, or 21 billion Swiss francs ($23.4 billion).
The deal will also allow the Swiss central bank to invest some of its huge accumulation of foreign exchange reserves in the Chinese bond market.
The Zurich-based SNB said the agreement will further strengthen collaboration between it and its Chinese counterpart and is a “key requisite for the development of a renminbi market in Switzerland.” It could also facilitate trade and investment between the two countries, the PBOC said. This demonstrates that China is moving in the correct direction.
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It is a quote from a source in his latest hat trick report, so no other link I can provide sorry.
And yet, the German MSM and even foreign minister Steinbrenner are like rapid, anti-Russian dogs, spewing out the ZioNazi party line when it comes to MH17, Ukraine, and Russia. Did they not get the memo? Or are the real powers in Germany with or without Merkel playing their cards close to the vest?
I think like everywhere, there's the "official" story (propaganda) vs. the real actions. It's a kind of double-speak. Like "we bring democracy to you" (what I say) when in fact "we want to steal your resources" (what I do).
And by the way, it's "close to the chest". You may not have a vest left if you play strip poker ;)
http://www.reuters.com/article/2014/07/26/germany-canada-trade-idUSL6N0Q...
Germany to reject EU-Canada trade deal - Sueddeutsche newspaper"As soon as you realize that all geopolitics is simply economics and business ..."
It's also about power, control and influence and in this case, it's also about the American Empire.
SMACKER:
You are CORRECT. The ultimate goals are, of course, power and control through EMPIRE. After all, how much more money do the Rockefeller, Warburg, Rothschild, Schroder, Schiff, etc. families need?
I prefer to call it the Anglo-American Empire, however, since the British and American banks (and the families that OWN these banks. along with the Federal Reserve) are fairly evenly split between Britain and the U.S.
I should have been more precise: that business and economics are the primary MEANS by which power and control are achieved. As Mayer Amschel Rothschild (1744-1812) said, "Let me issue and control a nation's money and I care not who writes the laws." Since World War 2 the U.S. government and the "big banks", using the Federal Reserve, have gained control of most nations, NOT by military force, but primarily through issuance of money and credit via the IMF and World bank. John Perkins in his book, "Confessions of an Economic Hit Man" explained in some detail how this process works.
Only when tools of the "economic hit men" fail does the U.S. government resort to alternative "methods of persuasion" such as assassinations, over-throw of governments, miltary force and ultimately war.
I completely agree Jack.
And you are certainly correct with the name "Anglo-American Empire". All Britain did was to hand over the reins (and running costs) of Empire to Washington but has remained at the top table ever since through the British Foreign Office, MI6 & GCHQ who are so close to their American counterparts, you couldn't get a fag paper between them.
This explains why at every general election in Britain, foreign policy is OFF the table and never allowed to be discussed. MSM are compliant by focusing on trivial issues and personalities. Apparently, going around the world causing death & destruction is their business and nothing to do with us mere citizens, even though it costs us money, lives and hatred.
Please take care out there in Odessa :-)
The British parliament voted against Obama's Syrina war so your hypothesis doesn't make sense.
It makes perfect sense. You cannot dismiss the close US & UK relationship over one incident that didn't go according to script. A rare occasion when democracy got in the way. Which - as I wrote earlier - is EXACTLY why foreign policy is NEVER on the agenda at election times.
In case you missed it, Cameron and Foreign Secretary Hague and others in Government were all heavily ratcheting up the anti-Assad rhetoric and "we must support military action" narrative before it came in front of Parliament. Cameron was gobsmacked when his request for support was turned down. Since then, Parliamentarians have returned to their standard MO of sycophancy towards the Executive..
Why did Parliament turn Cameron down??
The highest priority of the political elites is self preservation, otherwise they can't keep their hands in the till. After the Iraq disaster caused by Tony Blair, British Parliamentarians simply didn't have the spine to risk a repeat of it. NO OTHER REASON.
It changes nothing, absolutely nothing regarding the relationship between the US & UK when it comes to global foreign policy as I briefly described. Both countries have a joint imperial foreign policy which is the successor to the British Empire.
They are two sides of the same coin or as George Galloway might put it "two cheeks of the same ass."
Anglo-American (Zionist) Empire
The deal will also allow the Swiss central bank to invest some of its huge accumulation of foreign exchange reserves in the Chinese bond market.
Well that makes sense - the Swiss have a huge apetite for Chinese bonds - you know, the Chinese bonds that won't default.
BTW, the SF is one of six currencies that make up the inverse to the USD index.
China is not part of this American-European index.
this conundrum has three components all controlled by Pax Americana Oligarchy :
1° Money line, aka petrodollar/FED profligacy, our money your problem now morphing into currency war under uncrunchable debt cloud.
2° Energy oil pipeline where the MENA export model feeding the western Trilateral and now BRICS Chindia is coming under challenge from Putin's Russia and surrogate Eurasian axis in the making.
3° MIC big stick where Russia still can look USA in the eye with its 8000 warheads.
So... if on the Economic front China leads the challenge to American hegemony, on the OIL/MIC front it is Putin's Russia.
Where the Oil rich monarchies bet their future and where Euro zone bets its future will define the rate at which this conundrum comes to resolution, one way or the other.
I don't think that the current hold of Pax Americana on all three threads in total unilateral fashion, ignoring the rest of the world, can continue much longer.
The decadent criminals only have one thing to resort to. When do they start bombing and have they decided who it will be?
Same old, same old.
True, hence paradigm change to retain power.When the rules of the game no longer benefit the house,change the game.Historical timeline relates the geometrical growth of western power elite(not going to wither away or cede to BRIC,thats a silly fallacy). The trend is your friend.
What is the best method to purchase physical gold and silver?
Depends on where you live...
http://www.amagimetals.com/
agoracommodities.com
Those two are great, and both accept Bitcoin.
We are conditioned to think of paper money as equal to real wealth. There are big changes coming. The move is to make trade less dependent upon the value of currency, which in turn gets it's value from it's relationship to the US dollar.
The world is trying to make the exchange of goods and services work again. To do this they will stop the use of other people's currency (ie their bonds) as the thing they use to defend their currencies.
Say a guy like Soros goes after a small country that has been over printing it's currency. At present that country must have dollar reserves to go out and buy some of it's own currency out of the Forex market. If they can't the Soros guy will keep selling the currency until it collapses. This means they are supporting the dollar just by holding it.
Some of us see a change to using gold, at a much higher price, instead of dollars, as the main reserve backing currencies. The Euro is already structured this way. It holds 10,800 tons of gold on it's balance sheet (about 70% of their total reserves (the rest are dollars)). In this system no one country would have the advantage (or the curse as their are big problems too) of being the reserve currency.
The key point in this observation for us little guys is that gold MUST be at a much higher price for such a new reserve system to work. So get some now while it is still at commodity prices. Fofoa has been discussing this for 6 years now. Most of the questions a reasonable person would have, over the years have been considered.
For now these swaps allow countries to trade by by-passing the dollar and simply allowing countries to exchange their rice for oil and their machines for wheat. A new currency system must be developed soon as the dollar is dying from it's debt burden. It happens to all fiat currencies due to the structure of the currency and political pressure from the population that demands more stuff from governments without more taxes.