Guest Post: This October The World Will Change - "China Is Preparing For Something Big"

Tyler Durden's picture

Submitted by Mac Slavo via SHTFPlan.com,

“China… across the board… is preparing for something big in currency markets.”

(Video Via Future Money Trends)

This October may see the beginning of the end for the U.S. dollar as the world’s reserve currency. Twice every decade the International Monetary Fund meets to discuss their Special Drawing Rights (SDR) currency basket. Currently comprised of the dollar, Japanese Yen, British Pound and Euro, if China has their way a few months from now, we may well see the Chinese Yuan take its place among the world’s most trusted currencies.

U.S. Treasury Secretary Jack Lew says, “China isn’t ready for currency reserve status,” and would certainly like to see the Chinese blocked from entry, preserving the dollar’s status as the world’s go-to currency and primary mechanism of exchange for global international trade.

But while Lew and his predecessors have presided over the largest growth in national debt in world history, the Chinese have been strategically positioning, much like the United States did in the early 1900’s, to not just become the world’s largest economy, but to be the super power of the 21st century.

Forget for a moment what’s being touted by analysts, forecasters, politicians, and financial officials who say China is not ready. Focus instead on the actions being undertaken by China and you’ll understand why Chinese President Hu Jintao says that the dollar is a product of the past.

Excerpted From Future Money Trends:

 

Already we are seeing China and Russia hoard gold with Chinese demand skyrocketing in the past give year… China is both, the world’s largest gold producer and biggest importer… so not only are they accumulating gold by the truck load, but not one ounce produced is leaving their shore.

 

China… across the board… is preparing for something big in currency markets.

 

 

The world has an unease about the dollar system… President Hu of China said ‘the dollar is a product of the past.’

There was a time when the U.S. dollar was backed by gold. This backing helped to solidify it as a currency that could be trusted on the open market. Today, however, for all intents and purposes, the dollar is backed by absolutely nothing.

It is this weakness that the Chinese aim to exploit and that’s why they have been actively stockpiling thousands of tons of gold in recent years. But this is only part of the story.

In addition to their physical gold holdings, the Chinese have been using a secret gold accumulation strategy that no one is talking about :

The headlines for gold these past few years have only focused on physical gold accumulation by China, Russia and Eastern central banks. But what they have missed is a 7,000 year-old strategy that China is doubling down on.

 

According to data compiled by Bloomberg, in 2013 asset purchases by Hong Kong and [Chinese] mainland miners increased to a record $2.2 billion.

 

China is buying gold mines at a record… something completely missed by both, the mainstream investor and even the gold analysts who tend to only focus on the bullion sales, which haven’t been disclosed officially since 2009.

 

Although, according to Bloomberg, based on trade data the physical bullion stockpile has likely tripled since then.

 

China, who is aggressively buying gold, would spark an event if it disclosed how much gold it has stockpiled.

 

But imagine the true disclosure when you add up all their deposits… not just in China, but offshore. $2.2 billion is equivalent to 46 metric tons of physical gold… but when buying gold deposits in the ground this could be upwards of 5,000 metric tons.

 

And that is just one year of record mine buying from China.

It’s been rumored that China may disclose those gold holdings ahead of the IMF’s decision this October in an effort to prove to the world that their currency is not only worthy of admission into the SDR basket, but that it is more trustworthy than the U.S. dollar itself.

The winds of change are blowing and the Chinese will soon be taking the helm of the global economy. They know a major event is coming and they have been preparing for it by acquiring the one asset that has survived the test of time as a mechanism of exchange.

For those desperately trying to figure out where they should be putting their money before the next major market event takes shape, consider following their strategy.

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ThroxxOfVron's picture

Gold backing of the Yuan will indeed challenge US Dollar Reserve Currency hedgemony.

It appears that the peg to the US Dollar is going to be broken.

The qustion is whether or not a falling discredited/eclipsed US Dollar will encourtage onshoring of jobs or accelerate US exports...

tarabel's picture

 

 

The whole world united shall not prevail against her.

//s//

George Washington

 

Perseus son of Zeus's picture

Here's you chance bitchez! Go! Go buy your bitchcoins!

Gaius Frakkin' Baltar's picture

I don't know how China will handle disclosure of their gold hoard, but it's never been like them to make sudden moves. They play a long game with gradual moves.

NuckingFuts's picture

That's the thing so many are missing in this. The long game. We (the U.S.) are only what... 240 years old more or less. Those folks have been in business for thousands. Long game indeed. We just Can not relate to their slow erosion of the dollar. Hey, look a squirrel.

Richard Chesler's picture

Ungrateful chinks be picking on black homo peace price winner. Where is Rev Jackson on this?

 

Paveway IV's picture

No wonder fake ISIS is purportedly planning their 'big event' sometimes around Ramadan - mid-June through mid-July. 

China is a tough act to follow. The feds need to get their fake ISIS terror-reminder event in early or it's going to get lost in the noise of the U.S. dollar collapse.

Scheduling is always such a bitch near the end-times...

ersatz007's picture

I generally like to use Microsoft project and integrate reminder with my iWatch when scheduling cataclysmic events like the end of days.

JamesBond's picture

Will I be able to use migration assistant to transfer cataclysmic events from my macbook to my Ipod Touch?

Paveway IV's picture

Sorry, but you're screwed going from Mac to Apple until someone ports Microsoft Clipit to both platforms.

RaceToTheBottom's picture

Resource leveling indicates to me that something bad is on its way, soon.

Oh regional Indian's picture

China is NOT in good shape. Chinese oligarchs are in good shape.

China is not becoming powerful, the chinese oligarchy is becoming powerful.

But of course, once you realize that the Skull and Bones society via Yale sponsored Mao AND you find out the great march never really happened....

And you realize that they kindly guiding hands of jewish/zionist americans have been doing their dirty dees done dirt cheap since the late mid 19th century, and you see that Chinese have a bleak future along this road.

I'm saying all the above since I just realized that these discussions are actually very nuanced and catch-all phrases like Chinese and American and interests mean very little unless seen finely in their context.

Capital lies...

https://aadivaahan.wordpress.com/2010/07/13/whither-india/

walküre's picture

+1 from me

not sure why you get junked for this

pretty obvious stuff

Max Steel's picture

because he is wrong . obviously you dont want to hear the truth . what ever helps you sleep dude .

random999's picture

Everyone rich in china is the same thing as government. If you aren't connected to the government you wont become rich.

Thats how it is.. simple and clear.

Now that said, the first to fall are those who are not 100% government. The governemnts business will never fail. Their banks will never go bankrupt. They'll just insert another 0 if its needed.

Flatchestynerdette's picture

I'd like it to be soon. Home prices are through the roof and new apartment building has made traffic patterns add 20 minutes to my commute. For the love of heaven just stop this stupid building craze. The high end apartments now become the slums tomorrow.

Keyser's picture

Agree that the Chinese have always played the long game, but the planet does not have time for the long game to play out at this point and the Chinese power families know this... It is time to bring down western dominance in global affairs and that has to be done in a swift, ugly and dangerous manner... War will be the most likely result... 

walküre's picture

which dominance do you prefer then?

Keyser's picture

None... Why do countries have to live in fear of each other? The answer is they don't... What we have seen over the last 250 years is a single-minded family who has laid out plans to rule the planet... You know who they are... Today, other families going back over 3000 years are calling bullshit on the west and are trying to change the balance of power without collapsing the system...  

USisCorrupt's picture

Edward Snowden is looking to be the luckiest man in the world.

 

What I would give to be allowed to live in Russia today with their FREEDOMS.

TheReplacement's picture

Respectfully, da chinks aint done nuffin to erode da dollah.  Dey di-int print dollahs dih dey?

LikeyMikey's picture

What???!!!!

 

You need to learn a bit more about how often revolution happens in China AND what you may or may not consider as the lands of "China"!

 

Sheesh the ignorance is getting deep with these comments....

847328_3527's picture

Speaking of China, I notice Lumber Liquidators used to have some real cheap wood flooring on sale [if you don't mind the smell of formaldahyde]. But then again, the wood must be pretty well preserved in that stuff.

Keyser's picture

There were thousands of homes that had to be condemned in Florida, due to formaldahyde leeching out of Chinese dry wall that had been installed in the homes... This was 10 years ago... Some things never change... 

chumbawamba's picture

Oh, I'm sorry, I thought this was from a reputable source that makes prognostications based on actual data and not wishful thinking that never pans out, as the last 5 years of predictions of these clowns has shown.

And via Mac Slavo of shtfplan.com, the one stop emporium for high-throttle doom porn?  Nigger please.

I am Chumbawamba.

EverythingEviL's picture

Chumbles you bastard. Good to see you around

pachanguero's picture

I've been here for years.  I love chumbawaa and hold gold. 

TheReplacement's picture

Das so vierd.  I rove gode and hode chumbawamba.

Crawdaddy's picture

Ha! So true.

The people who own the banksters built the commies, the drug gangs and the muzzies will now try to use them to take us down. The globalists long for the day to destroy the leftovers outside of their control. Their enemies are people who hesitate before blindly accepting fiat money, GMO food, flouride in the water, dirty vaccines, socialism, fascism and whores that smell funny.

Lately I'm thinking this dude has a good angle on things:

http://redefininggod.com/understanding-the-nwo-strategy/

 

 

TheReplacement's picture

Do not worry friend.  They also built the chinks.  So yeah, it is us against the masters and the rest of the world too.

Edward Quince's picture

it's just around the corner. If it's not this august it's next. A particular stellar alignment - one unseen for millenia - ensures it.

MontgomeryScott's picture

Ah.

The wet dreams of a lost generation who actually failed to END THE FED when they had the chance to 'terminate with extreme prejudice'; and instead (still) rely upon the 'goodness' and 'speciality' of the proginy of General Washington; who shop at Walmart (and those that tell them 'not to worry')...

When she embraces the whole world, united, the dreams of her youth shall become the means of her destruction. SHE is the 'mystery woman', and the Whore Of Babylon.

The 'future' is NOW.

https://www.youtube.com/watch?v=WrteE08TY2s

Those DREAMS are DEAD, just like Marion Mason ('John Wayne') is. THIS TIME, however, the ability to eradicate all life on the planet has been obvious ever since the detonations of the experimental and crude atomics of the 1940's. Ol' G.W. never IMAGINED such abilities.

 

Crawdaddy's picture

John Wayne was a fag. Its true boys. I installed two-way mirrors in his pad in Brentwood. And he came to the door in a dress.

https://www.youtube.com/watch?v=vCb9H46tzmc

 

tarabel's picture

 

 

Marion Michael Morrison perhaps?

Sure, Americans are soft and asleep and lost. But they have more to lose than anyone else, and everyone is counting on the country staying asleep until everyone is dead.

I think, by a narrow margin, their calculations will prove mistaken and America (not the US government) will, as Washington revealed, prevail in the end after the longest and most bitter war in human history.

I used to listen to a radio program that featured an old spiritual which included the joyful words "Take a look in the back of the book. We win!"

 

PS -- You should read "ol GW's" vision before doubting his perspicacity about modern times and weaponry.

Crawdaddy's picture

..and they will do exploits.

I really like that old book :)

tarabel's picture

 

 

The Roman Emperor Constantine the Great also had a vision

"In Hoc Signo Vinces"

Crawdaddy's picture

The latter day romans put their symbols all over the place. A giant obelisk in DC, like the one in the vatican, similar to the one in london city.

All seeing eyes & pyramids on the dollar, little red hats of mithra on the senate and army logos, identical to the Jacobin head-choppers in the french revolution, the statue of liberty/mithra, goddess of columbia, the false idol statue on top of the Capitol bldg, on and on.

All secret societies. All bowing to Rome. All the powers worship false idols. Gonna be a rough day of reckoning for those cats at some point in time.

teslaberry's picture

love how so many zh articles are about the unsustainable bubble of chinese economy , while the others are about how chinas currency is so sustainably backed by gold it will unseat the unsustainable u.s. economy. 

 

the ride is probably going to me more confusing to people than they realize as any international changes that do occur are likely to be destablizing for all peasantry and upper peasantry kulaks everywhere. .

whatever happens in the jockeying at the imf will be of little concer to you and your gold hoard will not be of more practical benefit to your aims of being rich, but might well help you preserve your wealth over time.

 

speculating on gold paper is pointless whatever happens with china and the dollar. physical gold is long term insurance of the only kind. anyone saying otherwise is trying to sell you their gold etf. 

inclusive of the author of this article.

Divine Wind's picture

 

 

 

The part I can not get my head around is what would happen to the Yuan.

Logic would dictate that there would be an amazing inward flow of foreign capital coverting over, thus pushing the Yuan higher.

In turn, would this not cause the exchange rate to push the price of Chinese goods considerably higher?

It seems counter intuitive for an export-based economy to make such a move.

Can anyone provide some clarity?

Atomizer's picture

BRIC with a new basket of floating currencies. Just my guess, don't quote me. 

surf0766's picture

They are a communist country. They will tell you what they want their currency to be worth not the
"free" market

MeelionDollerBogus's picture

Every country with a central bank is a communist country.

JRev's picture

Because a gold-backed Yuan is not the plan, nor has it ever been. Read the policy papers and the clarity you seek will be drawn into focus.

Zhou Xiaochuan: "Reform the International Monetary System": http://www.bis.org/review/r090402c.pdf

Chatham House: "Adding Gold to the Valuation of the SDR": http://www.chathamhouse.org/sites/files/chathamhouse/field/field_documen...

...and another and another.

The New SDR is to have a partial gold (and potentially silver) backing. China, the PBOC, and the BIS have expressed numerous times a desire for this to take place. Energy or carbon credits will also play a role, as both the "East" and "West" have forecast this shift. The "West" gets to add sound backing to their New World Currency (the nature of which, PMs, and the "East's" voracious consumption of them, have been broadcast through "alternative" and mainstream sources alike) and China gets to sit at the Round Table of International Power, via the UNSC, IMF, and BIS. 

Chatham House's "suggestion" for how to manage the system the PBOC is requesting is noteworthy, as well: "Gold claims could be ‘residual’, i.e. gold could only be claimed when no convertible currency is available through voluntary agreements – this would reduce the strain on the IMF’s gold reserves." 

And: "Use gold only for valuation and not include any right to sell SDR for gold."
(I.E., you can sell us your gold for SDRs, but you ain't gettin' it back, plebe.) 

It baffles me that many here can accept that the LBMA rigs the gold price, that China is the primary consumer of this rigged gold, but can't piece together the fundamental Truth: That the LBMA has put the world's gold on sale SPECIFICALLY FOR CHINA, the coming currency revalutation, and by its very nature, the "New World" paradigm.

MayB bcuz peepl r st00pid or sumfin'.

WhyWait's picture

Rev, you may be right.  I suspect you are operating from the theory - confirmed by all of recent history - that whatever happened happened because LBMA, or the Rothschilds, or the global banking cartel, wanted it to.  Even if they clearly said in writing what they wanted and then something else happened, we all know they're liars. No sarcasm! They are! But then how could anyone prove you wrong?.   

But does your theory give you a unique prediction of what is going to happen in the next year, that we can be watching for to see if you're right?

JRev's picture

It sure does ;) 
http://redefininggod.com/2015/05/the-nwo-schedule-of-implementation-mod-1/

I'd recommend a thorough reading of Ken's more erudite posts within the last four to six months, as they lend credence to and support via primary sourced documentation his thesis. His conclusions and predictions happen to correspond with my own research using much of the same documentation, and by extension, his "Schedule of Implementation" linked above also corresponds to what I believe will come to pass. 

We're certainly not the first or only ones to posit such a theory, but as you note, historical perspective demonstrates that global strife is almost invariably globalIST strife, as Quigley's Tragedy and Hope, Sutton's Wall Street series, and James H. Billington's Fire in the Minds of Men, among others, have chronicled. 

Honestly, a period of dissolution and full-blown collapse would be far more palatable to me, and I think many others here, namely as it provides the opportunity to build something anew upon the ashes of 21st Century Neofeudal Technocracy; "Order ab Chao" 'n all that. I just get the feeling the "New World Phoenix" has been fanning this fire for quite some time, awaiting a rebirth (or rebranding) of its own.

Crawdaddy's picture

We must be hanging around reading the same tea leave people...seeing as how I linked to the same site up above before seeing your post. I found that link on ZH so thanks to whoever posted it. I differ on a few things but have taken a shine to his overall narrative.

Destroy the US economy by cratering the Fed and its henchmen US banksters, throw a few US pols, i.e. OBammy, Clintons and Bushes, under the bus, force crisis in the US to crash $, raise up the BRICs, use BRICs turmoil to bring in fake saviour politicians, give up US soveriengty to meet conditions for outside "help", implement NWO.

Heres to their plan blowing up in their faces - Cheers!

JRev's picture

Nailed it :P

See your post now, kudos for spreading that link around. We may very well be looking at a "negative feedback loop" here, as I've been posting it 'round for the past six months or so in the comments here; then again, so have a small and dedicated readership, which has only grown with time. 

I just hope that with this latest "Creation (of a New Order) by Destruction" and the erection of controlled opposition like Rand Paul, people within alt-media circles will finally "get it"; that Randy Pandy Paul isn't coming to save them. That the BRICS aren't coming to save them. That some mythical "White Hats" in the military aren't coming to save them. That it's time to sack up, save themselves, and get to doing the hard work of building the world WE want to live in, not the one that's being laid out for us. 

My highest aspiration is that more folks like yourself take such musings to heart and don't accept whatever will be foisted upon us within the next two years, but I begrudgingly accept that to be a bit of a pipe-dream. "'Ya gotta see it to believe it."

"You either learn your way towards writing your own script in life, or you unwittingly become an actor in someone else's script."
- John Taylor Gatto.