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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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Thu, 05/21/2015 - 20:53 | 6119635 ThroxxOfVron
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...

Thu, 05/21/2015 - 21:10 | 6119702 tarabel
tarabel's picture

 

 

The whole world united shall not prevail against her.

//s//

George Washington

 

Thu, 05/21/2015 - 21:25 | 6119736 Perseus son of Zeus
Perseus son of Zeus's picture

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

Thu, 05/21/2015 - 22:17 | 6119895 Gaius Frakkin' ...
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.

Thu, 05/21/2015 - 22:27 | 6119920 NuckingFuts
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.

Thu, 05/21/2015 - 22:58 | 6120001 Richard Chesler
Richard Chesler's picture

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

 

Thu, 05/21/2015 - 23:11 | 6120024 Truthseeker2
Truthseeker2's picture

Not October, it will start in September.

 

...

Internet On Fire With ‘September 2015 Collapse’ Narrative

Thu, 05/21/2015 - 23:34 | 6120070 Paveway IV
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...

Fri, 05/22/2015 - 00:17 | 6120135 ersatz007
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.

Fri, 05/22/2015 - 00:46 | 6120170 JamesBond
JamesBond's picture

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

Fri, 05/22/2015 - 01:18 | 6120206 Paveway IV
Paveway IV's picture

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

Fri, 05/22/2015 - 06:35 | 6120542 RaceToTheBottom
RaceToTheBottom's picture

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

Fri, 05/22/2015 - 08:09 | 6120767 Mike in GA
Mike in GA's picture

I'm much more inclined to agree with Chanos than Slavos on China:

 

http://www.marketwatch.com/story/why-jim-chanos-thinks-china-could-be-th...

Fri, 05/22/2015 - 00:21 | 6120141 Oh regional Indian
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/

Fri, 05/22/2015 - 02:40 | 6120311 walküre
walküre's picture

+1 from me

not sure why you get junked for this

pretty obvious stuff

Fri, 05/22/2015 - 02:58 | 6120338 Max Steel
Max Steel's picture

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

Fri, 05/22/2015 - 04:47 | 6120426 random999
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.

Fri, 05/22/2015 - 00:22 | 6120144 Flatchestynerdette
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.

Thu, 05/21/2015 - 23:02 | 6120007 Keyser
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... 

Fri, 05/22/2015 - 02:41 | 6120314 walküre
walküre's picture

which dominance do you prefer then?

Fri, 05/22/2015 - 05:11 | 6120453 Keyser
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...  

Fri, 05/22/2015 - 07:20 | 6120638 USisCorrupt
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.

Fri, 05/22/2015 - 00:36 | 6120160 TheReplacement
TheReplacement's picture

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

Fri, 05/22/2015 - 05:54 | 6120497 LikeyMikey
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....

Thu, 05/21/2015 - 22:18 | 6119897 847328_3527
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.

Fri, 05/22/2015 - 05:13 | 6120458 Keyser
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... 

Thu, 05/21/2015 - 22:20 | 6119905 chumbawamba
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.

Thu, 05/21/2015 - 22:55 | 6119989 EverythingEviL
EverythingEviL's picture

Chumbles you bastard. Good to see you around

Thu, 05/21/2015 - 23:17 | 6120035 pachanguero
pachanguero's picture

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

Fri, 05/22/2015 - 00:38 | 6120163 TheReplacement
TheReplacement's picture

Das so vierd.  I rove gode and hode chumbawamba.

Thu, 05/21/2015 - 23:47 | 6120092 Crawdaddy
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/

 

 

Fri, 05/22/2015 - 00:39 | 6120167 TheReplacement
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.

Fri, 05/22/2015 - 00:32 | 6120157 Edward Quince
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.

Thu, 05/21/2015 - 23:21 | 6120037 MontgomeryScott
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.

 

Thu, 05/21/2015 - 23:52 | 6120100 Crawdaddy
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

 

Fri, 05/22/2015 - 01:16 | 6120196 tarabel
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.

Fri, 05/22/2015 - 01:17 | 6120202 Crawdaddy
Crawdaddy's picture

..and they will do exploits.

I really like that old book :)

Fri, 05/22/2015 - 01:32 | 6120224 tarabel
tarabel's picture

 

 

The Roman Emperor Constantine the Great also had a vision

"In Hoc Signo Vinces"

Fri, 05/22/2015 - 02:08 | 6120279 Crawdaddy
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.

Fri, 05/22/2015 - 11:20 | 6121579 teslaberry
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.

Thu, 05/21/2015 - 21:01 | 6119656 Divine Wind
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?

Thu, 05/21/2015 - 21:04 | 6119683 Atomizer
Atomizer's picture

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

Thu, 05/21/2015 - 21:06 | 6119690 surf0766
surf0766's picture

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

Mon, 05/25/2015 - 17:02 | 6130537 MeelionDollerBogus
MeelionDollerBogus's picture

Every country with a central bank is a communist country.

Thu, 05/21/2015 - 21:37 | 6119709 JRev
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'.

Thu, 05/21/2015 - 21:42 | 6119794 WhyWait
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?

Thu, 05/21/2015 - 22:21 | 6119899 JRev
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.

Fri, 05/22/2015 - 00:06 | 6120121 Crawdaddy
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!

Fri, 05/22/2015 - 00:19 | 6120137 JRev
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. 

Fri, 05/22/2015 - 00:49 | 6120171 Crawdaddy
Crawdaddy's picture

Gracias amigo - we are on the same page I believe.

Ears that have been closed for years are starting to listen. Eyes starting to see.

Two guys I work with have been "active in the community" for years, donating work/time to Habitat for Humanity, Agenda 21 stuff like bike trails, green lanes etc. I have been working on them showing how they are working for the pig men.

They got pissed at me because I told them their efforts were metaphorical flowers the rapists sent to their rape victims. Help the victims while standing by like a dumbass as more victims are created.

The other day, they walked into my office and started telling me they were calling bullshit on the biker war down in Waco. They said the cops had to be lying. No way bikers would get in a gun fight in front of a swat team. It was the first time I ever heard either question the offical narrative.

A tear came to my eye, like a father seeing his kid hit a baseball into center field for the first time.

Thu, 05/21/2015 - 22:43 | 6119957 MarkGoldman
MarkGoldman's picture

JRev,

Are you sure about the energy or carbon credit link? I don't see anything in there related to either.

A while back Mike Rebiero of WRH suggested a new currency, he called it the 'lectro...basically used KWH, dared the bansters to try and game that. 

Don't give them any bright ideas, I say. 

Thu, 05/21/2015 - 23:23 | 6120048 JRev
JRev's picture

I'm not nearly Machiavellian enough to dream up a carbon credit scheme on such a scale - but I do have enough spare time and interest on my hands to attempt to reverse-engineer the euphemism-laden UNCTAD document (among others) I posted earlier: http://unctad.org/en/PublicationsLibrary/osgdp20141_en.pdf 

These two segments of the No Agenda show flesh out the theory more than I could here: https://www.noagendaplayer.com/listen/604/16-52
https://www.noagendaplayer.com/listen/659/28-11

(Shownotes at www.604.noagendanotes.com and www.695.noagendanotes.com respectively, to click through the documents/legislation)

Currently, only Western multilateral institutions are calling for an eventual carbon-backed SDR, but at its core, energy will be the initial fundamental monetary unit. What's SRSRocco Report always blathering on about? ENERGY Returned on Investment? Are gold and silver not, at their core, stored energy value? Seems to be a pretty smooth transition in my eyes, especially given that China, India, South Africa, and Brazil, the chief regional powers of the BRICS, are "all in" on Sustainable Development, as that UNCTAD document and recent events demonstrate. 

Fri, 05/22/2015 - 00:12 | 6120126 Doña K
Doña K's picture

Energy units, can also be manipulated thru derivatives, wheeling tolls, emission regulations, rights of way for x-mission lines and who knows what the goldmanite PHD's can invent.

How about average labor wages as part of the SDR (skilled and unskilled)

Time will tell. Meanwhile keep stacking.

Fri, 05/22/2015 - 00:25 | 6120149 JRev
JRev's picture

Indeed they can... Enron's "Weather Derivatives" desk, whose records went belly-up in WTC7, would be an excellent model for doing just that: http://www.activistpost.com/2012/08/a-history-of-weather-derivatives.htm...

And with the financial "tools," software backdoors, HFT bots, and trading AIs of today, I imagine the foundation that companies/NGOs like Enron and "Blood and Gore" (hell of a name) have laid over the past few decades are much more built out today.

Coincidence that the office was headed up by the same criminals that made their fortune in the first Enron scam, Enron Oil, in the late-80s, to keep this discussion in the energy wheelhouse? I often wonder.

Thu, 05/21/2015 - 21:28 | 6119724 WhyWait
WhyWait's picture

Wind, you might be right all things being equal, but as a ZH reader you are surely clear that they won't be.

You must also know that they are facing great dangers - from an agressive Empire trying to provoke a war, from an implosion of their shiny new capitalist economy (their first) and from a restive population.  So they have had good reason to be very careful.

But now the dollar system is going down, with or without Chinese help, and they clearly know it. Their great export markets are going to dry upno matter what the exchange rate, and they will have to ride that out.  Perhaps it's their reckoning that they've waited as long as they dare, and now they must make their best move and play their hand as best they can.

Fri, 05/22/2015 - 00:18 | 6120136 Doña K
Doña K's picture

Sometimes stronger curency allows you to buy international productive assets which can be in the ground for long time (low maintenance) until growth returns. China can buy forests, mines, transportation hubs etc. which will pay off in high muliples in the future. 

Thu, 05/21/2015 - 21:30 | 6119730 philipat
philipat's picture

"Can anyone provide some clarity?"

Yes, what the Chinese also need to do to become part of the SDR is to unpeg against the USD because, if not, The US and The IMF could argue that CNY would bring nothing to the SDR except more USD equivalents.

IMHO, their game is as follows. Shortly, they will launch a new Physical Gold Fix in China in CNY and this together with a new International Futures exchange in PHYSICAL metal, wiull see China take over the pricing of Gold. As that begins to happen, the manipulation by Western CB's to cap the price will fail (As will COMEX) and the price of real physical Gold will begin to rise in CNY.

The price of paper Gold in USD futures markets will have to follow suit for a number of reasons (Including arbitrage) but if it doesn't, then de facto the USD would appreciate against CNY. SO either way, China wins. If the price of Gold rises in both CNY and USD, the value of China's reserves increases. If the price of paper Gold in USD continues to be manipulated, then the USD will strengthen against CNY which will continue to give China a cost advantage to sustain its export machine.

In this way, China will be able to unpeg CNY against USD without seeing CNY strengthen against USD. In this way also, China's "Backing" of CNY by Gold would not need to be explicit, only implicit. A CNY directly backed by Gold would see CNY go through the roof, which is not in China's best interests and has never been the plan.

The Western CB's have fallen into this strategic endgame by manipulating the price of Gold to artificially low levels and have painted themselves into a corner from which there is now no escape.

Thu, 05/21/2015 - 22:16 | 6119894 ThroxxOfVron
ThroxxOfVron's picture

"...In this way, China will be able to unpeg CNY against USD without seeing CNY strengthen against USD. In this way also, China's "Backing" of CNY by Gold would not need to be explicit, only implicit. A CNY directly backed by Gold would see CNY go through the roof, which is not in China's best interests and has never been the plan. ..."

 

Interesting.   That is a very shrewd analysis.

Much to ponder...

-Thanks for posting.

Thu, 05/21/2015 - 22:19 | 6119901 847328_3527
847328_3527's picture

Sounds very reasonable.

Thu, 05/21/2015 - 23:25 | 6120055 InvalidID
InvalidID's picture

 

 I find your analysis very interesting indeed. Very shrewd and very well thought out. I have some thoughts:

 

 1. How can we assume China will take over pricing of gold? Just because they open an exchange and declare they are fixing the price in Yuan does not necessarily mean the rest of the world will follow.

  1b. If you open an physical futures market you've just basically sold all your gold for paper. The biggest nations will consume your young market over night.

 2. I'm not sure if you've noticed but Chinese markets aren't exactly trustworthy. That's not to say western or any other markets are, but the power players are not going to bet on a devil they don't know, with no recourse, without a really damned good reason. Human nature being what it is, people want to play the game with their own kind, and will generally choose the devil they know...

 2b. Chinese billionaires losing half their fortunes in 28 minutes will not inspire international investors to climb on board a Chinese market, there is clearly manipulation there, and it's not making westerners wealthy... This will inspire no one to put faith in Chinese futures markets, and leave a fledgling market well exposed for western manipulation.

 3. I think you're underestimating the ability of the current power brokers to manipulate the game.

Fri, 05/22/2015 - 00:12 | 6120125 philipat
philipat's picture

Thanks for the comments and, yes those are good questions.

1. China has already announced that it will introduce a CNY Gold Fix and a Futures market backed by physical metal and that this will happen before the end of the year, so that is not speculation. It will not be PBOC Gold on the line but those of the participants. An exchange is supposed to be a fair price discovery machanism, it's just that the paper markets don't function properly because of CB manipultaion and captured Regulators. China is the largest producer AND consumer of Gold so it is natural that it should be involved in setting the price. PArticpants will find it an attractive proposition that, unlike COMEX, there is real price discovery AND also unlike COMEX they can take delivery in physical Gold because ALL trades will require the (Documented deposit) backing of physical Gold, nothing will be paper.

1b.Au contraire, if the price discovery leads to a higher CNY price of Gold, those arbs who are able, to the extent that COMEX rules allow will start to take delivery and ship to China to take the spread.

2. Chinese markets under the direct control of the Chinese State are reliable (Or, shall we say as relaible as in the US?) especially when the Government has a big picture Agenda.

2b. repeat, ALL trades will be backed by DOCUMENTED physical Gold.

3. Perhaps. Time will tell but having totally undervalued the price of Gold for so many years, and given that China is now by far the largest player, the Western CB;s and BB's may become a prisoner of their own abuses when a physical exchange starts to allow true price discovery.

Just my take.

Fri, 05/22/2015 - 00:23 | 6120145 InvalidID
InvalidID's picture

 

 I guess this is where my thinking and yours diverge. I agree it's only natural that China would have more say over the price of gold, and I'd include oil, copper, steal, etc.

 

 BUT, to the extent things have been manipulated I honestly don't think this scheme would work out as proposed. It's one of those things that's really good pn paper and the it pencils out, assuming you're playing in a relatively level field. I just don't think China has enough sway to pull it off just yet, and I fully believe the western powers would crush it dead as a matter of course. Because it's not a level playing field, power does not have to play fair (or even pretend to play fair), and more importantly, very few times in history has power passed peacefully.

Fri, 05/22/2015 - 01:13 | 6120198 Crawdaddy
Crawdaddy's picture

You guys are discussing the fine points of a fixed horse race. The winners were picked long ago. Do you really think China is anything that is not made by the West? China is on "top" because they are ran by commie sodomite baby killing freedom stomping family hating murderers who treat graft and party as god. China rose from nothing because the globalists built them up using the wealth of the West. The banksters stole from the West and gave it to the East in order to bust out the West. Outsourcing, offshoring, great sucking sounds.

China is still nothing but Western made. The oligarchs will use them to stir up the bed wetters in the West then they will go under the bus, maybe catching a retatliatory nuke wave for their trouble.

Fri, 05/22/2015 - 01:17 | 6120204 InvalidID
InvalidID's picture

 

 I have often considered the west made China because no one feared Russia anymore...

Fri, 05/22/2015 - 02:13 | 6120287 Crawdaddy
Crawdaddy's picture

Browse upstream comments - the West made Russia too.

One perspective: https://www.corbettreport.com/chinas-swift-alternative-and-the-engineere...

 

 

Fri, 05/22/2015 - 03:06 | 6120337 philipat
philipat's picture

"I guess this is where my thinking and yours diverge."

Time alone will tell and I am confident that the initial part will happen, although we will then see what response comes from the Western Oligarchs. But IF my premise that the pice of Gold has been manipulated down with paper is correct, then true price discovery in the new CNY physical market will push the CNY price up in a "Mother Nature" kind of way. The arbs will do the rest. And I mean the Wall Street arbs. This will be a truly free market solution, which is what makes oi so brilliant of the Chinese. The West continues to underestimate them and, INHO, does so at its peril.

Fri, 05/22/2015 - 00:06 | 6120120 Kirk2NCC1701
Kirk2NCC1701's picture

If China is smart and wise, they will use Gold to back a BRICS_SDR.  In which case the USD loses its GRC status and is demoted to a Regional Reserve Currency  (RRC).

If they're gullible plus delusional, they'll get suckered into joining IMF's SDR.  Then the West (Anglo-American Zionist Alliance) will play the Procedure game and rot China from within.

If/when the USD gets demoted to an RRC status, it simply means that the Bottom 80% will suffer economically beyond anything they have ever endured, and civil strife will be hard to contain.  But, as others here have noted, the US will retain it's core strengths, given its geography, resources and population.

But it will be a different US: w/o "Money for Nothing and Checks for Free", which will kibosh the welfare for the very poor and for crony capitalists, and Foreign Aid for the Usual Suspects. 

Fri, 05/22/2015 - 07:47 | 6120693 The Ingenious G...
The Ingenious Gentleman's picture

I think I understand the general picture as you describe. But it seems that everything in this scenario depends on the US dollar remaining strong or getting stronger vs the CNY.

If the US dollar fell, then China would lose (1) in the value of its USD reserves and (2) in its export competitiveness.

Quite a gamble. I don't think anyone's smart enough to plan, predict or control that. Too many possibilities.

On edit, I just read your follow-ups below. Thanks.

Thu, 05/21/2015 - 21:32 | 6119762 WhackoWarner
WhackoWarner's picture

As a complete idiot I reply.

Logic you use is based on a US dollar peg?  So your logic of exchang rate is also based on Yankee buck? 

Logic falls if the peg or influence comparison is to a discredited US $?

 

There would be a new comparison,  Maybe FOREX that is less criminal.

 

But I am a simple idiot who strives for honesty.

Thu, 05/21/2015 - 21:46 | 6119784 philipat
philipat's picture

With respect, I think you did not read the post correectly. This is a brilliant endgame by China which achieves ALL of their objectives, including UNpegging CNY without having it appreciate wildly.

Thu, 05/21/2015 - 21:45 | 6119804 Divine Wind
Divine Wind's picture

 

 

WW,

I see your point, but the USD is already losing peg status.

If the value of China's currency shoots up, this makes their exports more expensive for everyone with whom they have direct currency trading, and the number of countries in that position is increasing rather quickly. Examples include the Canada, UK, Australia, Singapore, Brazil, etc...

The USD is now sidestepped in their trade interactions.

Thu, 05/21/2015 - 21:54 | 6119835 philipat
philipat's picture

Again with respect, you are missing the point. If the price of Gold starts to rise in CNY (Which it will) it will be the USD which appreciates unless the price of paper Gold in USD follows higher. That will directly allow USD (Via Gold) to stay in step with CNY and allow POSX to trend softer. China's Gold reserves then appreciate in both CNY and USD terms to offset and slight upward pressure on CNY.

Thu, 05/21/2015 - 21:58 | 6119849 Divine Wind
Divine Wind's picture

 

 

 

Ahhhhh. I see your point.

Thanks for the clarification.

Thu, 05/21/2015 - 22:55 | 6119993 NuckingFuts
NuckingFuts's picture

The comments above reflect why I joind ZH to begging with years ago. Intelligent people logically debating. No name calling, respect all around. Sure fight club sometime requires someone takes a beating... But it's better when the Beat down is not needed and reasonable people can debate an issue. Yeah, I might be stoned, but I still like this part of ZH better. cheers gentlemen.

Thu, 05/21/2015 - 23:57 | 6120105 old naughty
old naughty's picture

ditto that, Nuck.

Cheers.

Thu, 05/21/2015 - 21:56 | 6119843 Debeachesand Je...
Debeachesand Jerseyshores's picture

Before this all happens,the Yuan has to float on the World's Currency Markets to find it's true Value against other Currencies... I

Thu, 05/21/2015 - 21:05 | 6119659 TruthInSunshine
TruthInSunshine's picture

BLAH BLAH MOAR DOOM PORN

I'm bearish on the macro economy in the U.S. and from a global perspective, and think that we're clearly in the final phase of a strong debt/credit/ZIRP fueled expansion of non-organic, non-productive growth, yet it's a fucking joke to think that China has a snowball's chance in hell of supplanting, whether alone or in tandem with an even weaker coalition of partners (i.e. Russia, India) USD hegemony.

These are the times when Zero Hedge reads exactly like a propagandist publication straight from Red Square or an even more less balanced branch of the Russian Times.

If the U.S.'s economy has pneuomia, China's economy has diptheria + ebola.

China's intensely export-driven economy is very ill, and China is 50 years away from military superpower status (deny the all show, no go capability of China's paper tiger military and keep deluding yourself).

Zero Hedge sprang up in the wake of the 2008-2009 crash, and has published many good essays, undertaken legitimately good analyses of important structural economic and financial issues/rot that the mainstream media completely ignored/missed (willfully or not), and ZH is needed to balance out the pollyanna financial media bullshit (and woeful "professional" economists and forecasters of the sell side), but Zero Hedge goes full retard from time to time -

- this is one such occassion.

Thu, 05/21/2015 - 21:07 | 6119693 Ineverslice
Ineverslice's picture

Fuckin' eh...+10. Btw, how many nuclear aircraft battle groups do we have... 9, 12 ?

Thu, 05/21/2015 - 21:13 | 6119708 Winston Churchill
Winston Churchill's picture

The  Silks roads are overland.The USN is about to become scrap metal.

Pax Americana has very little time left to use those assets in any meaningful way.

Thu, 05/21/2015 - 21:17 | 6119720 Ineverslice
Ineverslice's picture

yes, I am a little concerned about them Sunburn Missiles and the like.... Very fast to say the least

Fri, 05/22/2015 - 03:01 | 6120345 HowdyDoody
HowdyDoody's picture

Plus modern diesel-electric subs that can pop up undetected in the middle of carrier groups.

"There are only two types of ship, submarines and targets"

Fri, 05/22/2015 - 03:03 | 6120346 edotabin
edotabin's picture

Yay! Missile porn :-)

Dude, research the Coppertone missile. It prevents Sunburn. 

Wake up! Over the past 65-70 years the have been HUNDREDS of types of missiles designed. 99.9% wind up in the junk pile.  They pit one side against the other to create a need for overly expensive weapons that will never be used. It is a scheme to suck us dry.

Thu, 05/21/2015 - 23:30 | 6120062 InvalidID
InvalidID's picture

You've gone full retard in this comment. 90% of the 'silk road' is currently over the sea. This is why China is building islands, this is why China is building it's navy. There will never, EVER, be a world power without control of the sea.

Fri, 05/22/2015 - 11:17 | 6121566 wendigo
wendigo's picture

Soviet Union. 

Fri, 05/22/2015 - 16:52 | 6122840 InvalidID
InvalidID's picture

 

 Wasn't REALLY a world power though was it? It was, at the end of the day, a regional power with global aspirations.

Thu, 05/21/2015 - 21:12 | 6119706 Divine Wind
Divine Wind's picture

 

 

 

"If the U.S.'s economy has pneuomia, China's economy has diptheria + ebola."

+1000

ROFL

Thu, 05/21/2015 - 21:40 | 6119786 22winmag
22winmag's picture

On another note, someone here once said Europe would be in flames before the U.S. even farts.

Thu, 05/21/2015 - 21:49 | 6119811 TruthInSunshine
TruthInSunshine's picture

Europe is waaaay sicker than the U.S., also.

It's all relative.

Just two or three days ago, Zero Hedge itself published an analysis as to how China is, far and away, the most deeply indebted and leveraged nation on earth (non-official but credible figures and multipliers cited/used), relating to China's new apparent readiness to bail out its local provincial governments.

So, the EU as a whole, Japan, China, the UK, are all far more leveraged/indebted than the U.S., many of these nations/blocks are far more dependent on exports and global (rather than domestic) consumption of their goods produced to stay above water, yet global aggregate demand has undergone a near purely dependent on ZIRP/QUesque 6 year period to sustain exports, with now diminishing returns on each additional measure central banks put forth (some credible analysts would argue net-negative returns given artificial inflation of asset bubbles elsewhere), yet China is going to somehow sideline the U.S.

Thu, 05/21/2015 - 21:59 | 6119856 Winston Churchill
Winston Churchill's picture

Don't fall into the trap of thinking too conventionally.

All you say is true, but those are all tertiary things which can disappear like a fart in the wind.

Hard and productive assets not so much.

Thu, 05/21/2015 - 22:18 | 6119898 TruthInSunshine
TruthInSunshine's picture

Even with a weak economy, capital outflows from China, South America, Russia, India and many emerging markets are flowing to the U.S.

Never, ever forget that the U.S. Has the following:

1) Highest acreage of fertile ground in the world, with highest crop yield per acre (the U.S. is the Saudi Arabia of Food Crops).

2) A large, powerful, mobile and technologically advanced military (for better or worse, depending on one's moral and other perspectives, judgment and experiences - but the fact remains there are technologies the U.S. has military (offensive & defensive) technologies now that aren't even known of ( and the ones that are known of are very potent deterrents).

3) A dynamic economy EVEN in a very rough, uneven, patchy and moribund economic environment with flat to negative real growth (go ahead and trust official figures on economic growth out of China at your own peril; China's a literal house of cards at present, in far deeper and more ways than the U.S.).

Like I previously stated, I genuinely believe the 2008-2009 crisis was papered over by central bank policies and that the real downturn has been deferred rather than neutralized, with the coming, inevitable crash to be worse than it had to be when it finally arrives had we taken our medicine to more properly address the structural causes of our economic cancer, but the same is true of every other emerging and developed economy in the world, and the U.S. will weather the storm better as only a matter of relativity.

Thu, 05/21/2015 - 22:44 | 6119958 NuckingFuts
NuckingFuts's picture

As much as everyone on ZH loves to shit on th US (Me as well). I believe you are correct. If nothing else inertia and muscle will keep us afloat.... But at what cost? That remains to be seen.

Thu, 05/21/2015 - 23:33 | 6120066 InvalidID
InvalidID's picture

 

 Hard and productive assets can and do become 'farts in the wind' as you say. Productive assets need material, and people, and energy... Sea lanes provide 90% of that.

Fri, 05/22/2015 - 03:28 | 6120367 andrewp111
andrewp111's picture

Internal debt that can be simply printed away does not count. What matters is a natiopn's debt in foreign currency, and how dependent they are on imports of necessary goods.

Thu, 05/21/2015 - 21:01 | 6119668 Winston Churchill
Winston Churchill's picture

I don't think thats the plan.Triffins paradox is well known by the Chinese.

I suspect a gold backed SDR type format run by the BRICS bank is prolly where this is

going, cutting out the IMF all together.

As the US probably has no gold, Uncle Scam is SOL.

Thu, 05/21/2015 - 21:28 | 6119745 saints51
saints51's picture

Winston, I want to say thank you. You have taught me so much about history. In all honesty I truly appreciate the knowledge kicked over to this country boy.

Thu, 05/21/2015 - 22:37 | 6119940 Kirk2NCC1701
Kirk2NCC1701's picture

The article is dead wrong about "not a single ounce leaving China".

There are PLENTY of gold Panda coins available at my fave coin shop, and at Kitco.com. 

Thu, 05/21/2015 - 23:02 | 6120008 HenryHall
HenryHall's picture

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

 

Both, but mostly accelerate US exports.

A stampede to redeem expiring US paper for greenbacks and immediately spend those greenbacks on anything tangible that can be exported from US. Paper, coal, grain, metals, aircraft, trucks, electric cable, anything of tangible value, but no iphones or overpriced gadgets. All paid for with paper that has been held for decades and is now being redeemed.

And US industry will love the boom and all the greenbacks they get paid. Hiring boom for a while.

The problem is that no foreign vendor wants those greenbacks because the vendors already have all the greenbacks they need from China in exchange for exporting to China. No, Mexico does not want to sell washing machines for dollars, they want gold - but Mexico will buy cord for dollars, as much as US will export.

Thu, 05/21/2015 - 23:08 | 6120021 Kirk2NCC1701
Kirk2NCC1701's picture

The article is dead wrong about "not a single ounce leaving China".

There are PLENTY of gold Panda coins available at my fave coin shop, and at Kitco.com. 

Fri, 05/22/2015 - 10:43 | 6121422 zerocash
zerocash's picture

but not one ounce produced is leaving their shore.

Really? What about gold Panda 1 oz coins?

Thu, 05/21/2015 - 20:56 | 6119646 saints51
saints51's picture

Well I know I may not receive a lot of love for my comment but all I have to say is September,Shemitah, and Leviticus 25 and 26. Proof is in the pudding folks. Just check it out for yourself.

Thu, 05/21/2015 - 20:59 | 6119662 astroloungers
astroloungers's picture

I think we go down with a whimper.....so slow no one will recognize what has happened. Did any of the great empires really go out with a bang?

Thu, 05/21/2015 - 21:03 | 6119678 saints51
saints51's picture

True but America is one that likes to make M.A.D. agreements with any other sociopath.

Thu, 05/21/2015 - 21:04 | 6119681 Winston Churchill
Winston Churchill's picture

All of them. You may want to read some history.

Thu, 05/21/2015 - 21:23 | 6119732 Usurious
Usurious's picture

“I hate Indians. They are a beastly people with a beastly religion. The famine was their own fault for breeding like rabbits.”

                                                                                                                                                                                                                    -Winston Churchill

Thu, 05/21/2015 - 21:30 | 6119756 tarabel
tarabel's picture

 

 

Yeah, so?

Thu, 05/21/2015 - 22:46 | 6119965 Soul Glow
Soul Glow's picture

Churchill was a Nazi.  

Thu, 05/21/2015 - 23:06 | 6120015 tarabel
tarabel's picture

 

 

It's very important to tear down any symbol of Western achievement or aspiration, isn't it?

Thu, 05/21/2015 - 23:16 | 6120031 Usurious
Usurious's picture

achievement or rape/pillage /plunder?????????????????????????????????

''The myths of empire are so well-established that we appear to blot out countervailing stories even as they are told. As evidence from the manufactured Indian famines of the 1870s and from the treatment of other colonies accumulates, British imperialism emerges as no better and in some cases even worse than the imperialism practised by other nations. Yet the myth of the civilising mission remains untroubled by the evidence.

Interrogation under torture was widespread. Many of the men were anally raped, using knives, broken bottles, rifle barrels, snakes and scorpions. A favourite technique was to hold a man upside down, his head in a bucket of water, while sand was rammed into his rectum with a stick. Women were gang-raped by the guards. People were mauled by dogs and electrocuted. The British devised a special tool which they used for first crushing and then ripping off testicles. They used pliers to mutilate women's breasts. They cut off inmates' ears and fingers and gouged out their eyes. They dragged people behind Land Rovers until their bodies disintegrated. Men were rolled up in barbed wire and kicked around the compound.''

http://www.theguardian.com/commentisfree/2012/apr/23/british-empire-crim...

Thu, 05/21/2015 - 23:38 | 6120077 tarabel
tarabel's picture

 

 

I'm sure, in the interest of fairness, you are hard at work on a similar description of the activities practiced by the Mau Mau upon the British.

 

No?

 

War is cruelty and you cannot refine it.

 

W T Sherman

 

Thu, 05/21/2015 - 21:07 | 6119691 tarabel
tarabel's picture

 

Well, Napoleonic France comes to mind.

Hitlerite Germany.

Byzantium finally fell when the Turks took Constantinople in 1453.

The sack of Rome in 476?

Imperial Japan to the biggest bang of all.

Thu, 05/21/2015 - 21:08 | 6119696 Winston Churchill
Winston Churchill's picture

Not to mention Pax Brittanica. You know that WWII thingy.

Thu, 05/21/2015 - 21:16 | 6119717 tarabel
tarabel's picture

 

 

Well, Britain kind of had nothing left to give after the close of the war and then slowly faded out over the next 40 years. So I gave them the benfit of the doubt. It's not like they exactly fell but simply decided that their Empire was no longer worth the effort to keep it.

Thu, 05/21/2015 - 21:22 | 6119727 Usurious
Usurious's picture
The Bengal Famine: How the British engineered the worst genocide in human history for profit

''The British had a ruthless economic agenda when it came to operating in India and that did not include empathy for native citizens. Under the British Raj, India suffered countless famines. But the worst hit was Bengal. The first of these was in 1770, followed by severe ones in 1783, 1866, 1873, 1892, 1897 and lastly 1943-44''

http://yourstory.com/2014/08/bengal-famine-genocide/

Thu, 05/21/2015 - 21:27 | 6119739 tarabel
tarabel's picture

 

 

And your point is?

Thu, 05/21/2015 - 21:34 | 6119763 Usurious
Usurious's picture

my point is that ur a fucking IDIOT for giving them the benefit of the doubt.....

Thu, 05/21/2015 - 21:40 | 6119790 tarabel
tarabel's picture

 

 

Seriously, Vern, the British Empire is dead. The events you moan about took place 70 years ago. You are quoting from a one-sided opinion that seems to ignore some of the underlying realities of the world in favor of a draught of righteous indignation. Surely you can find more urgent and timely crusades to, well, crusade about.

What should we do? Dig the perpetrators up and shoot them?

Thu, 05/21/2015 - 22:25 | 6119916 Mike in GA
Mike in GA's picture

Why, I think you've hit on the solution for many of the ills that our fellow citizens complain of daily - slavery, native American macro-aggression followed by genocide then treaty abrogation, female oppression, blacks-in-the-back oppression and the list goes on.   I agree we should just dig 'em up and shoot 'em!  Maybe that will settle our society down a bit where a peace-lovin man can finally leave his shotgun in the house when he goes out to get the mail.

Dig 'em up and shoot 'em.  Damn I like that.

Thu, 05/21/2015 - 21:31 | 6119761 not a yahoo
not a yahoo's picture

Whatever. Show me that this isn't the revisionist piece.

Thu, 05/21/2015 - 21:27 | 6119740 Winston Churchill
Winston Churchill's picture

A very drastic change in the standard of living under cover of wartime rationing.

Which didn't end until 1950 by the way.

A suddenly impoverished nation, that could no longer afford an empire.Sucked dry by the bankers.

I see a pattern here somewhere.

De ja'vu all over again.

Thu, 05/21/2015 - 21:13 | 6119711 Usurious
Usurious's picture

 

 

''Outside Kenya, no other field has the depth or breadth of revisionist scholarship documenting British colonial violence at the end of empire. In part, this is due to the fact that British colonial authorities destroyed evidence at the time of decolonisation, or withheld other boxes of files for years. Regardless, without revisionist work, other potential cases will be at a disadvantage.''

http://www.theguardian.com/commentisfree/2013/jun/06/britain-maumau-empi...

10's of millions died..........they just forgot to teach you about it in high school...

''In his book Exterminate All the Brutes, Sven Lindqvist shows how the ideology that led to Hitler's war and the Holocaust was developed by the colonial powers. Imperialism required an exculpatory myth. It was supplied, primarily, by British theorists.''

http://www.theguardian.com/commentisfree/2012/oct/08/empire-torture-keny...

Thu, 05/21/2015 - 20:57 | 6119649 FreeShitter
FreeShitter's picture

Fucking kiddy diddler soros came out today and said WWIII is at the tipping point. It's obvious China holds our economy in thier hands since the Joo-s-a manufactures nothing and the consumer based economy is being consumed. What a fucking wonderful planet huh......

Thu, 05/21/2015 - 21:28 | 6119746 Perseus son of Zeus
Perseus son of Zeus's picture

Meeee Howwww.

Thu, 05/21/2015 - 22:25 | 6119915 TruthInSunshine
TruthInSunshine's picture

Not only will demand for Chinese exports continue to drop in an ongoing and deepening global slump where aggregate demand weakens, but both emerging and developed economies will erect trade obtacles should the global economy weaken appreciably more than it is at present.

We will see this first in China's co-Asian trading partners, such as South Korea & Japan, which are both inevitably going to have to weaken their currencies even more aggressively on a relative basis, given their overwhelming dependence on exports as a % of GDP, in order to just survive.

Thu, 05/21/2015 - 20:58 | 6119657 g3h
g3h's picture

Gold?  What does it have anytihg to do with a modern economy?

It's not gold if the Yuan is to become part of SDR.  It's its economy.

 

Thu, 05/21/2015 - 20:58 | 6119658 kaiserhoff
kaiserhoff's picture

But what they have missed is a 7,000 year-old strategy that China is doubling down on.

JesusHmofohillbillicusmaximus....

Thu, 05/21/2015 - 20:59 | 6119661 Peter Pan
Peter Pan's picture

The warmongering and profligate spending of the US government was sure to convert the US dollar from an anchor to a millstone of the world financial system.

In my view the removal of this exhorbitant privilege may in fact cause the US to wake up and recreate itself as something more civilized and something more sustainable and definitely something more respected in this world.

Of course all this is predicated on China not blwoing up financially beforehand as a result of its own imbalances.

Thu, 05/21/2015 - 20:59 | 6119663 Joebloinvestor
Joebloinvestor's picture

All the US has to do is announce it is removing or recalculating the dollar to gold "peg" currently around $42.

This will headfake the world into thinking the US is going back on the gold standard and give a few years breathing room for the banksters to get the fuck out of Dodge.

Thu, 05/21/2015 - 21:03 | 6119677 mt paul
mt paul's picture

here's 84 bucks....

 

make me whole..

Thu, 05/21/2015 - 22:03 | 6119863 Soul Glow
Soul Glow's picture

Yeah and then the Fed pays back Germany their gold at what, $5k?  

HA!

Thu, 05/21/2015 - 21:18 | 6119721 Ajax_USB_Port_R...
Ajax_USB_Port_Repair_Service_'s picture

Impossible! The US doesn't have enough gold to do that. Given the amount of gold reserves and the number of dollars outstanding, they would have to peg gold somewhere north of $40,000/oz. (Just guessing.)

It's way too late for the US to go back on a gold standard.

Thu, 05/21/2015 - 22:55 | 6119960 Joebloinvestor
Joebloinvestor's picture

Read my second sentence.

Nowhere did I say the US would go back to a gold based standard.

If it did the price of gold in US dollars would probably start competing with artwork (I wish).

 

 

Fri, 05/22/2015 - 14:20 | 6122304 Ajax_USB_Port_R...
Ajax_USB_Port_Repair_Service_'s picture

I stand corrected. Sorry.

Thu, 05/21/2015 - 23:19 | 6120042 markam
markam's picture

They can peg it at $42/ounce, it will just be 42 new dollars per ounce.  Each new dollar will be worth 1000 old dollars (except for private debt which will peg at a 1:1 ratio).

Thu, 05/21/2015 - 21:01 | 6119669 Omega_Man
Omega_Man's picture

most of this based on wishful thinkingm china will need their gold to cover their own debts

Thu, 05/21/2015 - 21:01 | 6119670 mt paul
mt paul's picture

former President Hu of China said 'the dollar is a product of the past'."

 

should read " byproduct of the past "

Thu, 05/21/2015 - 21:23 | 6119731 TeethVillage88s
TeethVillage88s's picture

I have a quote from a Federal Reserve Branch 1963:

"The Function of the Federal Reserve is to foster a flow of money and credit that will facilitate orderly economic growth, a stable dollar, and long-run balance in our international payments"

- well -$700 Billion a year international payments is terrible performance
- USA is being Strip-Mined, Velocity is at an all time low, Debt is setting records across the board every year, foreigners own more of USA & Investments each year

- Not much Stability in USA

Federal Debt Held by Foreign & International Investors as Percent of Gross Domestic Product, 2014:Q4: 34.75940 Percent of GDP, HBFIGDQ188S,
http://research.stlouisfed.org/fred2/series/HBFIGDQ188S

http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm (wow huge trend, $31 Trillion in Foreign Property in USA vs $24 Trillion)

** I imagine USA will begin selling it's Palaces this year **

Thu, 05/21/2015 - 21:25 | 6119737 not a yahoo
not a yahoo's picture

Hey, what if the yuan is a product of the past? Anyone ever thought about that? I'm not so sure that it would be able to keep going if the trade flow ever collapsed.

Thu, 05/21/2015 - 22:32 | 6119931 Mike in GA
Mike in GA's picture

First thing I thought of when reading this article was Japan, 1989, on the verge of World Domination and here we are, 1 generation later it's all about China.  Color me skeptical.  If the charts on ZH are accurate, China's debt as a percentage of GDP is HIGHER than Japan's is right now.

Thu, 05/21/2015 - 21:03 | 6119679 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

hmm. china has massive debt problems of its own. massive shadow banking sector, epic real estate bubble, newly blown stock market bubble, printed $16 trillion since 2008.

now yuan are tightly regulated and used relatively little around the world. what if china came out and announced its gold holdings, had a full third party audit, and they proved to be greater than what the US (claims) to hold?

what if they added some gold backed component, not necessarily full conversion. maybe only avaiable at the CB level. would this not immediately alleviate some of their debt and RE issues as yuan demand skyrocketed? the only drawback would be that their FX reserves in dollars, euros and yen would probably become basically worthless, but one has to ask if they have any real value now. the people of china, who have assets and currency denominated in yuan, would also immediately become richer.

rickards says they are jockeying for position in the SDR. rickards should read some SunZi BingFa.

Thu, 05/21/2015 - 21:22 | 6119726 not a yahoo
not a yahoo's picture

You know what, I don't see how even if they have 30kt of gold accumulated, which for all I care they do, if you have a currency that's tied to trillions and trillions of bad debt. How is that gold going to make a difference?

Sure, maybe if you reset your currency and start from scratch, THEN that gold might be useful.

Thu, 05/21/2015 - 22:27 | 6119921 ThroxxOfVron
ThroxxOfVron's picture

" if you have a currency that's tied to trillions and trillions of bad debt. How is that gold going to make a difference? "

Debt can be defaulted.  

Central Bank of China can buy it up ala The FED and then just let it sit doing nothing.

Maybe the Politiburo seizes/expropriates/nationalizes corporations that cannot pay but have assets/flow, or maybe the CB just unplugs the computer running the spreadsheet of failed securites data.

Most of the debt isn't real in the sense of being capital -it's mostly recycled trade dollar/euro trade surpluses and CB emissions.   Watch the newly launcehd Chinese debt for bonds swap progress...

 

Fri, 05/22/2015 - 01:18 | 6120207 delacroix
delacroix's picture

gold trade notes. the gold will stabilize global trade.

Fri, 05/22/2015 - 08:58 | 6120991 ltsgt1
ltsgt1's picture

It's not practical to be the sole sound fiat currency while all other fiat currencies are racing to the bottom.
The Chinese are wise to join the race to the bottom by accumulating as much debts as possible as other currencies. The issue is what did they do with those easy money.
The U.S. spent the money to drop bombs in the Mideast, rescued the banks, rejuvenated the stock and real estate markets which digital values could be vaporized as easily as the bombs which we already dropped.
The Chinese spent that easy money to build infrastructures, expand its military and accumulate bombs and gold.
After the reset, the Chinese can cross into the physical plane with ease while the U.S. would be mired in the digital swarm.

Thu, 05/21/2015 - 21:04 | 6119682 tarabel
tarabel's picture

 

 

Who writes this ridiculous shit?

5000 tons of gold "in the ground"?

Okay, fine.

Now please list how much gold nations like the US, Canada, Australia, and South Africa have "in the ground".

You don't know, do ya?

Why?

Because the Chinese propaganda release which you are quoting from doesn't tell you.

Freakin shill.

Thu, 05/21/2015 - 21:54 | 6119836 Apostate2
Apostate2's picture

Not just a 'freakin shill' but a moron who thinks Hu Jintao is still the president.

These 'our gold reserves will crush the USD' have been coming out lately in the Chinese press/blogs for a reason most likely tied to domestic/geo-politics. Articles have also appeared documenting the unheard of deaths of gold miners due to lax or non-existant safety gear to protect them from the toxic by-product deaths.

Regardless, 'where's the gold' if it isn't, should be a Board game. 

Fri, 05/22/2015 - 00:30 | 6120153 Rock On Roger
Rock On Roger's picture

North America has lots of deep storage gold.

 

http://www.zerohedge.com/news/2012-11-29/visualizing-worlds-gold-mines-a...

Fri, 05/22/2015 - 00:58 | 6120183 tarabel
tarabel's picture

 

 

Before my time here. Nevertheless very interesting and enlightening. Thanks for posting.

Fri, 05/22/2015 - 02:12 | 6120286 Rock On Roger
Rock On Roger's picture

The gods will be happy

Once we have the gold dug.

 

Stack On

Thu, 05/21/2015 - 21:14 | 6119713 Veriton
Veriton's picture

The Chinese are preparing to take the spotlight position in the New World Order. It would seem the US takedown is scheduled for September/October: http://redefininggod.com/2015/05/the-nwo-schedule-of-implementation-mod-1/

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