Moscow And Beijing Join Forces To Bypass US Dollar In Global Markets, Shift To Gold Trade

Tyler Durden's picture

The Russian central bank opened its first overseas office in Beijing on March 14, marking a step forward in forging a Beijing-Moscow alliance to bypass the US dollar in the global monetary system, and to phase-in a gold-backed standard of trade.

According to the South China Morning Post the new office was part of agreements made between the two neighbours "to seek stronger economic ties" since the West brought in sanctions against Russia over the Ukraine crisis and the oil-price slump hit the Russian economy.

According to Dmitry Skobelkin, the deputy governor of the Central Bank of Russia, the opening of a Beijing representative office by the Central Bank of Russia was a “very timely” move to aid specific cooperation, including bond issuance, anti-money laundering and anti-terrorism measures between China and Russia.

The new central bank office was opened at a time when Russia is preparing to issue its first federal loan bonds denominated in Chinese yuan. Officials from China’s central bank and financial regulatory commissions attended the ceremony at the Russian embassy in Beijing, which was set up in October 1959 in the heyday of Sino-Soviet relations. Financial regulators from the two countries agreed last May to issue home currency-denominated bonds in each other’s markets, a move that was widely viewed as intended to eventually test the global reserve status of the US dollar.

Speaking on future ties with Russia, Chinese Premier Li Keqiang said in mid-March that Sino-Russian trade ties were affected by falling oil prices, but he added that he saw great potential in cooperation. Vladimir Shapovalov, a senior official at the Russian central bank, said the two central banks were drafting a memorandum of understanding to solve technical issues around China’s gold imports from Russia, and that details would be released soon.

If Russia - the world's fourth largest gold producer after China, Japan and the US - is indeed set to become a major supplier of gold to China, the probability of a scenario hinted by many over the years, namely that Beijing is preparing to eventually unroll a gold-backed currency, increases by orders of magnitude.

* * *

Meanwhile, as the Russian central bank was getting closer to China, China was responding in kind with the establishment of a clearing bank in Moscow for handling transactions in Chinese yuan. The Industrial and Commercial Bank of China (ICBC) officially started operating as a Chinese renminbi clearing bank in Russia on Wednesday this past Wednesday. 

"The financial regulatory authorities of China and Russia have signed a series of major agreements, which marks a new level of financial cooperation," Dmitry Skobelkin, the abovementioned deputy head of the Russian Central Bank, said.

"The launching of renminbi clearing services in Russia will further expand local settlement business and promote financial cooperation between the two countries," he added according to.

Irina Rogova, a Russian financial analyst told the Russian magazine Expert that the clearing center could become a large financial hub for countries in the Eurasian Economic Union.

* * *

Bypassing the US dollar appears to be paying off: according to the Chinese State Administration of Taxation, trade turnover between China and Russia increased by 34% in January, in annual terms. Bilateral trade in January 2017 amounted to $6.55 billion. China’s exports to Russia grew 29.5% reaching $3.41 billion, while imports from Russia increased by 39.3%, to $3.14 billion. Just as many suspected, with Russian sanctions forcing Moscow to find other trading partners, chief among which China, this is precisely what has happened.

The creation of the clearing center enables the two countries to further increase bilateral trade and investment while decreasing their dependence on the US dollar. It will create a pool of yuan liquidity in Russia that enables transactions for trade and financial operations to run smoothly.

In expanding the use of national currencies for transactions, it could also potentially reduce the volatility of yuan and ruble exchange rates. The clearing center is one of a range of measures the People's Bank of China and the Russian Central Bank have been looking at to deepen their co-operation, Sputnik reported.

One of the most significant measures under consideration is the previously reported push for joint organization of trade in gold. In recent years, China and Russia have been the world's most active buyers of the precious metal. On a visit to China last year, the deputy head of the Russian Central Bank Sergey Shvetsov said that the two countries want to facilitate more transactions in gold between the two countries.

"We discussed the question of trade in gold. BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets," First Deputy Governor of the Russian Central Bank Sergey Shvetsov told Russia's TASS news agency.

In other words, China and Russia are shifting away from dollar-based trade, to commerce which will eventually be backstopped by gold, or what is gradually emerging as an Eastern gold standard, one shared between Russia and China, and which may day backstop their respective currencies.

Meanwhile, the price of gold continues to reflect none of these potentially tectonic strategic shifts, just as China - which has been the biggest accumulator of gold in recent years - likes it.

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any_mouse's picture

Empires rise and fall always. There are no exceptional empires.

Civilization moved from the Fertile Crescent to the MENA, then up through Europe to Great Britain, across to USA. All along Asia had empires come and go as well.

Humanity is always moving towards opportunity.

Someday Humanity will disappear from Earth as has happened before with other apex lifeforms. Earth will continue on to the next phase.

InTheRabbitHole's picture

Our currency is not backed by gold it is backed by the military industrial complex

LOL123's picture

Which at this point serves NATO which includes permanent members China and Russia....

uhland62's picture

I think they are observers, not members.

sinbad2's picture

I think you might be confusing NATO with the UN security council, it's easily done, because they have nothing in common.

Not My Real Name's picture

You got it backwards: the MIC is backed by the fiat dollar. When the buck goes tits up, the MIC will quickly follow.

InTheRabbitHole's picture

The US dollar should have gone tits up.. everybody knows we're just printing paper... but nobody will tell that to our 1 trillion dollar military that has a base next to every country in the world..

Colonel's picture

It's also backed by IOU's ie... lies.

Fascal rascal's picture
Fascal rascal (not verified) Apr 1, 2017 11:41 PM

April motherfucking fools!!

Suckers.

Good job tylers.. you got them hook, line, and cocksucking sinker.

LOL123's picture

Russia and China are permanent partners in NATO but warmongers like McCAin and Hillarry ( both rothschild sponsered dinners for campaigning for president) want war with Russia.

The city of London the financial center of the WORLD is a separate independent state that sets the price of gold twice a day.

Russian central bank is owned by the Rothschilds who of course own more gold than both China and Russia combined.

JPMorgan Feb. 6 2017 got corporate bond license.It enables JP Morgan to underwrite debt financing instruments issued by non financial entitits including commercial papers. Now Russia central bank office opened at a time when Russia is prepared to issue its first federal loan bonds dominated in Chinese Yuan.

JP morgan made a good stratigic move considering our government run by the Federal Reserve ( Rothschild banking system) delivered sanctions against Russia but found a loop hole through China which plans to devalue and by pass the dollar and has absolutly no gold backing thanks to the FEDERAL RESERVE.

Good thing Goldman Sachs Group inc established Chinese joint ventures more than a decade ago and helps steer our government Through Trump administration... Oh good i thought we were up s**t creek with out a paddle...oh wait we are since Goldman sachs is a private entity and not a part of the government.

This all sounds like a ploy to bring down america through the beast system of rothschild. Of course it will be the american people who will be distracted with the Russian boggy man while the Rothschild agents (paid in positions and wealth) that will help coordinate the COOPERATING managers of each arm to CRAFT this new manifestation of chaos into order.

Novas ordo seclorum.... Gotta love 'en they do have patience.

 

 

 

uhland62's picture

"Goldman sachs is a private entity and not a part of the government." You mustn't place your hopes in government, only private corporations can be our salvation. Just go voting so the apparatchiks can keep their jobs. London will not the centre of the financial universe after Brexit. 

rahrog's picture

A gold standard means the end of The Evil Empire (USA), and that is a damn good thing for those of us who are prepared, and for humanity in general.

 

The suprised look on the faces of shopaholic war pig americants will be PRICELESS!!!

 

Just as important as using precious metals as currency is the need to OUTLAW fractional reserve banking.

 

SCHP is an outstanding metal to invest in.

rahrog's picture

Let them eat debt certificates

 

 

MontgomeryScott's picture

DID THE SYSTEM COLLAPSE?

http://didthesystemcollapse.com/

 

I watch this one daily.

rahrog's picture

SUCK IT U WAR PIG BITCHEZ

 

Herdee's picture

Physical Take Delivery Markets vs. Fake Paper Markets based on unlimited short futures contracts. What could possibly go wrong?

Maestro Maestro's picture

**Since neither the Americans, the Russians nor the Europeans can even issue their own (national) currencies; none of you are sovereign countries, that is, free peoples. You are all the bankers' witting slaves. The manipulation of gold's price lower is the principal method used by the bankers to hide this fact in plain sight. If gold is not money (alongside whatever else) than you are a slave, period. Read on.**

Worse than the bankers rigging gold and silver prices and not having the gold that they sold you (or selling gold that they don't have via fraudulent COMEX Futures contracts) is the fact that we don't even have MONEY today.  Therefore all financial transactions and economic numbers predicated on the existence of money are FRAUD and FORGERIES presently.

Electronic digits and paper fiat currencies in use today are NOT money, according to the law of the country that issues the reserve currency of the world, the US Dollar (Article 1, Section 10 of the US Constitution); or by the tenets of the science of Economics (i.e., fiat currencies are not money because they are not a store of value nor a unit of account due to the fact that NOT ONE fiat currency's value is actually determined or stipulated in concrete legal terms).  Dollars and Euros and Yens are not even lawfully DEFINED as to what they all are exactly; what their economic worth and transactional value is. Hence, fiat currencies simply cannot constitute the legal foundation of any lawful contract!

(Also, there cannot be either inflation nor deflation in the ABSENCE of money.  Both inflation and deflation are monetary events which cannot take place where there literally is no money.)

What we have today is massive GLOBAL FRAUD mascarading as a monetary system based on the (fraudulent) US dollar because all fiat currencies are basically only a derivative of the US dollar, including the Euro, the Yen, the Yuan, the Rouble, the Shekel and the Riyal.

Furthermore,

Why do a few people get the right to print fake fiat money out of nothing and buy your goods and  services with it whereas you have to WORK to obtain the same worthless money created out of nothing?

THAT is the question at the heart of the matter.  That the bankers manipulate interest rates or the price of gold via fraudulent Futures trading (by selling gold that they don't have) with fiat money is a moot point.

To put it differently: why do the bankers get to have anything that they want without working for it and you, you don't?

All this talk about market rigging, monetary theory and fraudulent (paper) gold trading is a cover-up for INJUSTICE.

The US Constitution FORBIDS the use of debt as money; the US Constitution proscribes (debt) notes which is what the US dollar is presently.  Think, all other currencies are just another name for the US Dollar.

What passes for money today is a CRIME, no more no less.

 
People,

You are all aiding and abetting this crime every time you buy, sell, pay or get paid.

And then you ask, Why our leaders, the politicians, the bankers, and our military men and women are EVIL?

The answer is, because they are just like YOU. They are your sons and daughters.

Boxed Merlot's picture

To put it differently: why do the bankers get to have anything that they want without working for it and you, you don't?...

The short answer is "Trust".

Whether one wants to admit it or not, the concept has in varying degrees of success, been developed and accepted by enough producers to rely on a system of trust that the music will continue until one is able to offload the cyphrage one receives to another wishing to do the same.

Heaven help us when trust is broken.

jmf

Maestro Maestro's picture

You want us to trust thieves, psychopaths and mass murderers aka bankers.

I don't trust you.

The Fed=Goldman Sachs=Rothschilds=USA=ISIS

Boxed Merlot's picture

...I don't trust you....

Fair enough.

FBaggins's picture

 

 

Fiat money is what it says it is. It is money based on the faith of the people who have it and work for it that it has value. It does not matter if the currency is actually gold or just made out of gold made out of paper what counts is that the people using it believe it has value. Of course, to make it work just like the bronze coins of various Roman emperors, you have to have a very powerful military ensuring that the people in the various territories believed the coins had value. Anyone out there who has lost their faith because of this China -Russia banking deal and now believes that their paper money is worthless, you can just send that worthless old cash right along to me. 

lasvegaspersona's picture

Jim Willie is posting on ZH now???

Victory_Garden's picture

So ah, what happens when the majority of Americans realize their cash ain't nuttin but trash?

Hummmm....

https://www.youtube.com/watch?v=XL6PgxKPCM8

Victory_Garden's picture

And....what happens when the people of America realize that the last eight years of democratic rule has brought the country into a quickly happening depression?

https://www.youtube.com/watch?v=j4Z9Dc8vZtw

 

Got seeds?

MontgomeryScott's picture

I remember reading about this possibility a couple of YEARS ago.

TWO DAYS ago, on some ALTERNET site, the announcement was made.

It seems to me that the 'official' Tylers are a little slower on the old 'upchuck', nowadays.

Cliff High (the 'web-bot guy') was broadcasting from a fracking MOTORHOME somewhere in the Great Northern Redoubt, today, talking about his 'total intelligence' (or lack thereof)...

 

Mr Durden (et.al) seems to be experiencing a 'NO SHIT, SHERLOCK!' moment.

What the fuck! It's all GOOD.

BANG YOUR HEADS, Tylers, and let "METAL HEALTH" drive you mad:

https://www.youtube.com/results?search_query=quiet+riot+metal+health

Here's one from the 'SCORPIONS' (back in the '80's, I used to refer to them as the 'Scorps', when I used to live, party, and get life in Hermosa Beach, California):

https://www.youtube.com/watch?v=N3NdKHdER4c

(THIS album ROCKS!)

 

The Chink commies and the Russkie commies seem to have the idea that they can replace the WESTERN fiat currency with an EASTERN fiat currency. SATAN, LAUGHING, SPREADS HIS WINGS:

https://www.bing.com/videos/search?q=war+pigs&view=detail&mid=76FD94DFA9...

 

I barbequed a couple of 'Omaha Steaks' on the old Weber 'Kettle' tonight. McCormick 'grill mates' 'Montreal Steak' seasoning, coarse-ground black pepper, and fork tenderizing, then sitting in the fridge for about 20 minutes... KingsFord charcoal, on a well-seasoned (and well-CLEANED) grill... I cooked them to a medium-rare/medium (still steaming when I set them on the plate and logged in to ZeroHedge)...

CDNN has an IWI 'Tavor' on sale for 1300 feds (in 'desert camo').

John 'SONGBIRD' McCain says that Rand Paul is a traitor.

I haven't seen anything from John ('Lurch') Kerry (KOHN) recently. Sorry,  Mr. WB7, he looks more like 'Lurch' from "The Addams Family", CBS, circa 1960's,, than 'Frankenstien's Monster' (and on this point, I disagree with you).

 

IT WAS ONLY A MATTER OF TIME.

https://www.youtube.com/watch?v=cnijc9wNpV4

I'd go LONG on Oroville Redenbacker (if corn was still locally gown in CONUS, instead of being made in to CORNAHOL).

This link contains the BEST GUITAR RIFF ever recorded, by the way (IMHO).

 

The KINGS FROM THE EAST are RISING.

Woe, woe, WOE, to MANKIND!

 

 

 

Victory_Garden's picture

Bob Bitchen owned the Hermosa High Store on Third and H. Ave until he sold it to Danial.

Ahhh the Strand....a skateboard...a rope...and a dog that could pulll you for miles and miles.

earleflorida's picture

you gots to keep up man!

the world waits for no`one...

the raw facts on ZH will give you an education,

but, as in all education[?] you gots to put it to good use!

when the 'SHTF'

don't get caught having to use, 'venezulian`u$s dollars' to wipe your ass, when a piece of 'Gold' can buy you the Forest'!

pump and dump's picture

Its lonely being a Gold Bear. Gold is a pump and dump like everything else. Don't be a sucker.

Dr. Dooms-a-lot's picture

Well God bless their little commie hearts! I was wondering why my stack was shining a little brighter; I can start to see illumination rays shining through the crack around the safe door. Death to the money changers... End the Fed.... Keep stacking BTZs.

lakecity55's picture

Who would down vote "keep stacking, Bit-Chez?"

Dr. Dooms-a-lot's picture

Future dependents of a stacker. 

I think I’ll buy another ounce today. 

Flybyknight's picture

Japan a gold producer? If this is the standard of facts then this article is serverely lacking

Flybyknight's picture

Japan a gold producer? If this is the standard of facts then this article is serverely lacking

FBaggins's picture

Can’t believe how short sighted the US establishment is. Whatever Trump's intentions were with respect to a pact or accord with Russia to stave off the every increasing threat of China, the establishment has now blown it by keeping up the sanctions together with intimidating military manoeuvers, and ongoing post-election extreme Russia bashing by the hack politicians and the media.  

Xena fobe's picture

Maybe the Neocons want to blow up the dollar.  They see the end is near anyway.  And found fatter sheep to fleece

PN7's picture

What's the story on "Goldmoney?"  I'm pretty sure I watched a video where Peter Schiff recommended it.  Supposedly, Goldmoney holds actual gold for you in a vault.  They also have a debit card based on gold.  I took Peter's word for it, and I opened an account with them.  Sent them some money.  But I never hear anything about "goldmoney" here at ZH.  Would appreciate anything you guys can tell me. I fear it may be something like GLD....not really backed by gold.  But I trust Schiff.

 

Thanks.

Northern Flicker's picture

My impression:  Goldmoney was originally started in Europe about 10-15 years ago in the British Channel Islands and was one of the few "allocated" gold options available at that time. Andy Hoffman, in part, described it as follows in 2012: "As for GoldMoney, I have mixed feelings about it, mostly positive. Most importantly, it is run by James Turk, one of the true "smart, good people" in the the business world.  I trust him as much as anyone I've come across in my career, as positive a comment as I can make. That said, it still is a paper currency in that no records of YOUR gold are ever shared with you, which worries me. As for their storage options, I would NEVER store gold in London (... and no longer trust Zurich, ...[but] would be comfortable with Hong Kong.)"  After the price of gold began to drop in 2011, GoldMoney lost some of its customer base and merged with and/or was bought out by Canadian company "Bitgold" (about 2 years ago) that was pioneering a gold money payment system (now listed on the Canadian Stock Exchange as Goldmoney XAU:TSX).  Schiffgold is now apparently merging with Goldmoney (https://www.youtube.com/watch?v=2xOmhAH9Fo8).  I'd say both the gold storage operation/payment system, and the stock, have decent upside potential as PMs gain ground again.  The payment system could be more reliable than Bitcoin, as it is actually backed by (customer's) gold/silver.  disclosure: I have a very small account with Goldmoney stored in the far east; I haven't been active for several years and have not investigated their credit card/payment options.  Trust this helps.  

 

PN7's picture

Thanks very much, Northern Flicker.  I made my deposit using PayPal.  PayPal deposits go directly to the London Vault, where you "Never would store" your gold.  I thought I was being smart by avoiding the New York vault and others.  Live and learn.  I'll try Hong Kong next; and maybe see if I can transfer my gold in the London Vault to the Hong Kong vault.

 

Thanks again,

Mike

luna_man's picture

 

 

Can it be the USA, will be TOAST, before I get to the grave?

LA_Goldbug's picture

We can not say we have not been WARNED !!!

"Charles Lindbergh Sr. (1859-1924) was a member of the House of Representatives from 1907-1917 (R-MN). Lindbergh became disgusted with the leadership of both Republicans and Democrats, and ran as an unsuccessful third-party candidate for the Senate, Congress, and Governor from 1916 until his death. Lindbergh was among the leading spokespersons against the Federal Reserve and against US involvement in World War 1. He was the father of famous aviator, Charles Lindbergh, Junior.

Below is Lindbergh’s powerful Congressional speech from his 1917 book Why is Your Country at War?, page 156, that alleges the Money Trust created the privately-owned Federal Reserve banking system to maximize their own profits. This speech is as strong and accurate a message that can be communicated. It is fully worth your investment of under 5 minutes’ attention."

Why did his son's baby disappear ???? It is obvious if you understand this families politics.

http://www.washingtonsblog.com/2012/03/charles-lindbergh-sr-86-of-great-...

Northern Flicker's picture

Truth be told. Under a revisionist history, Woodrow Wilson would likely be condemned as a traitor for his part in facilitating the Federal Reserve Bank to come into existence, and for lying America into WW1.  Of course, many other legislators and actors were also culpable.  

earleflorida's picture

thankyou :)

another reason i read ZH

comments-- those nuggets... chock-full of knowledge

BingoBoggins's picture

Don't know whether to up or down vote ya.

So, I'll just add this: My Daddy tol' me, "when ever you're in a hurry, don't rush".

LA_Goldbug's picture

Go Russia !!!!!!!!