Ares
31st August 2015, 12:41 PM
Taking Control
Over the past few days, it’s quite evident that alot has changed on the global financial landscape. However, there have recently been a few developments in China, which further signal that everything we know is about to change.
Several weeks ago, I made the case that China had been taking certain measures to put pressure on DC to give them more hefty weighting in the IMF, particularly regarding SDR inclusion. Now that it has been confirmed that SDR inclusion “will be put off for at least a year”, China has decided to take matters into its own hands…by burying two twin fangs into the US Dollar standard.
Treasury Sell-Off
The Yuan-devaluations, which I covered earlier, were a big deal(and continue to be), because of the spillover which is now developing in other currencies, and especially, the bond market. So it should come as no surprise that Bloomberg has now confirmed what zerohedge broke last week:
China Sells U.S. Treasuries to Support Yuan
China has suddenly begun to sell tens of billions(estimated over $100 billion, in fact), of US treasuries in just the past 2 weeks! The enormity of that headline above cannot be overstated, and what is occurring is an enormous shot across DC’s bow. However, what China’s doing is very logical, and a complete follow-on to their Yuan interventions, because in order to weaken the Yuan, relative to the US Dollar, it stands to reason that the demand for US dollars will have to be kicked up a notch for awhile.
Now that we know China is selling treasuries, to prop up US dollars in the short term, and weaken their currency, it largely explains the noticeable spike in the USD index over the past week or so. This mass liquidation of treasuries is a game-changer, because everyone understands what happens when large parties start to dump the “cadillac of the world’s debt instruments”. Other nations will now likely be more emboldened to follow the Chinese(and Russian) lead, and abandon US treasury instruments as well.
This bond dump(and the reasoning given for it) now may hold the answer to a question, that I’ve been trying to solve in my mind over the past few years:
How is China going to “unload” a reasonable portion of their treasury position, without it: A) roiling the market too badly, and B) being seen as a completely hostile move toward DC’s world regime?
I believe this emergency move by the Chinese is a shrewd way of answering this question. Think about it!
Instead of selling tens(or hundreds) of billions of dollars in US treasuries as an overtly political move of retaliation, China can now legitimately say that they simply needed to free up more dollars in order to sustain a weaker currency! Both to:
1) Sustain their export market(‘protecting jobs and revenue’) and to
2) Help prop up and give support to their stock market…
Now, neither of those things will work, but it doesn’t have…it only has to help sustain the perception that this mass liquidation of UST’s is about “helping” out Chinese citizens and the Chinese job market, instead of attacking the West.
This was my first thought last Friday, when I heard about the confirmation of the bond sales, and other shield brothers(including one of our resident Dutch shield brothers), also suspected as much.
In this way, their reasoning has ensured that the common Chinese citizen will now see these Yuan devaluations as ‘in their best interests’, and perhaps even a means of trying to ‘bailout’ the common man…all while gently nudging them in the direction of gold.
I warn you though, brothers: if this is indeed China’s gameplan, then we may not have seen the last of these devaluations…there may be more to come in the weeks ahead.
And if that’s true, then it follows that we likely also haven’t seen the last of the US dollar’s strength.
If the Chinese decide to devalue another 10%, or even another 5% versus the Dollar, it would likely require the sale of up to another several hundred billion dollars in US treasuries over the coming months. Such a sale would give a rather large boost to the USD index within a short period of time….which could also provide further short term weakness to paper gold and silver prices.
That last part is not a given, I’m just giving fair warning here, that it could happen. With the wind at the shorting hedge funds’ backs(to say nothing of Citibank, as well), it means the bottom in precious metals may not have been reached yet.
However, I still intend on responding professionally to this unbelievably good stacking opportunity right now…because the growing lack of silver(and gold) in the retail sphere is getting so dire and systemic, that it could upend the rigging con at any time without warning(dollar spikes not withstanding).
As aggressive as this part of China’s dedollarization is though, shockingly, that isn’t even the biggest news of the week. The next move they made was even more bold!
Gold Valuations
For China then made a stunning change in the accounting of their gold reserves, by deciding to mark their central bank-held gold reserves, to market. What this means is that the tens of billions of dollars of gold they(officially) possess, will not be frozen for long periods of time, or subject to government “fixes”. For instance, the “gold” at Fort Knox and elsewhere, is comically “valued”, or “fixed” by the Fed and the Treasury, at roughly $42 per oz, and has been since 1973! Those kinds of fairy-land valuations, from the Micky Mouse world of make-believe, will have no part in China, or the new global financial system.
This map shown beneath, which has been posted by other shield brothers before, is a snapshot of the growing list of countries who’ve now marked their gold “to market” as well. The countries in green are the ones, that we know of, who have decided to allow their gold reserves’ values, to be accurately reflected by the London Fix price, at any time.
And boy howdy, would you just look at all that green?
http://thewealthwatchman.com/wp-content/uploads/2014/12/BRICS.jpg
Folks, something should jump out at you about this map immediately…
Notice anything?
Remember what I’ve written about several times, as the true threat to DC/London bankster hegemony?
Yes, that’s right: a united Eurasia….
Notice how utterly lit-up most all of Eurasia is now? With the exceptions of East Europe, Mongolia, a few of the “Stans”, and southern Asia….the entire Eurasian bloc is now as green as a lush Irish pasture!
What does this mean?
It means that the Eurasian bloc is, most assuredly, pro-gold, and that they intend for gold to have a future as a top-tier, reserve asset on their books, and likely, within their trade as well.
It means Russia, China, India, and Europe will be setting the new rules for the new system, not the DC & London tag-team, and that this new system will be based on a better international anchor, to determine real value for everyone.
It means that the sun is setting on the olden days of the “PhD standard” of unfairly valuing everyone’s currency, based solely upon a “world reserve”, debt-based, fiat currency.
For decades, an international system of using gold for sovereign or individual payments was really impossible, so long as gold’s price remained so highly manipulated and depressed. France quickly showed the world how ridiculous Bretton Woods was, by simply taking delivery of gold at roughly $35 an ounce…which promptly ended that system.
The only way that gold(and silver) can be used, en masse, again, to settle trade between nations or individuals, is by treating them as special, top tier assets…and then by allowing those assets to freely float against the currencies of the world.
As we all know, gold and silver are the least fairly-valued, most heavily rigged assets on the planet. They must be revalued(by many multiples) higher than they are now, and then be allowed to find their true, stable value, relative to the real assets and currencies of the world.
The only way that can happen though, is for:
1) Most of the major powers to decide to embrace a freely-traded gold and silver price…and then..
2) Do what is necessary to free the gold/silver rigging power from the Western riggers…
China’s valuing their gold to market means that step 1 in that process above is virtually complete. Most of the nations East have decided that gold is their future for stability, wealth preservation, and trade. The decision has now been made: US Dollars, as an international “anchor” are out…and gold is in.
Now they’ve but to set these metals’ prices free, and allow them to find their real values…and doing this means removing gold & silver from the vaults and coffers of those doing the rigging…This second step will be completed, and soon…
Conclusion
For years, the US dollar has been a blight upon humanity…a poison within the nations of the world…slowing their economic heart-rates, and shutting down their sovereignty.
Beijing, with this two-pronged strategy, has just buried its own twin fangs into the US dollar standard, injecting a counter-toxin into the Uber toxin. Fortunately, the withdrawal from the US dollar poison will not kill the victims of it, because Eurasia is now also flush with dollar-toxin antidotes: mounds of gold!
China has now revealed more of what their endgame strategy will be. They’ve begun a pincer movement aimed at buying their economy time in a spiraling world financial system.
From dumping treasuries(which also allows Beijing and Chinese citizens to scoop up even cheaper gold, by the way), to marking their gold reserves “to market”, China is sending a clear warning of its intentions. The world doesn’t need governments fixing the price of gold or silver any longer, that’s what made this entire mess possible. What we need, more than anything is truth. Truth is the one thing which can restore balance, confidence, and justice to a toxic, world financial system gone horribly wrong.
Paradoxically, the problem is, that since the current system was built by lying criminals, on the bedrock foundation of fraud…..truth is also the one thing that will destroy that system. Thusly, Truth has been avoided at all costs, and for far too long. It doesn’t matter though. In the end, what is whispered in the darkness, will be shouted upon the rooftops. Truth will win out in the end…and nothing can stop it.
This move by China to “fairly” value gold on their balance sheet, is a giant step toward truth, and brings gold’s international status of “Top Tier asset” that much closer to reality. Now that China, Russia, Europe, and much of the rest of Asia and South America has marked gold to market…the world’s prior, dollar system has less time than ever.
China, Russia, and much of the international community is signaling that they’re prepared & strapped in…They’re in the cockpit, and have punched their “hyper-drive”. Dedollarization will now quicken to warp speed.
Eurasia is ready for this rocket to begin…and to benefit, on their balance sheets, from the gold(and silver) revaluations shortly to take place.
The question is: are you?
http://thewealthwatchman.com/beijing-just-buried-its-fangs-into-the-us-dollar-standard/
Over the past few days, it’s quite evident that alot has changed on the global financial landscape. However, there have recently been a few developments in China, which further signal that everything we know is about to change.
Several weeks ago, I made the case that China had been taking certain measures to put pressure on DC to give them more hefty weighting in the IMF, particularly regarding SDR inclusion. Now that it has been confirmed that SDR inclusion “will be put off for at least a year”, China has decided to take matters into its own hands…by burying two twin fangs into the US Dollar standard.
Treasury Sell-Off
The Yuan-devaluations, which I covered earlier, were a big deal(and continue to be), because of the spillover which is now developing in other currencies, and especially, the bond market. So it should come as no surprise that Bloomberg has now confirmed what zerohedge broke last week:
China Sells U.S. Treasuries to Support Yuan
China has suddenly begun to sell tens of billions(estimated over $100 billion, in fact), of US treasuries in just the past 2 weeks! The enormity of that headline above cannot be overstated, and what is occurring is an enormous shot across DC’s bow. However, what China’s doing is very logical, and a complete follow-on to their Yuan interventions, because in order to weaken the Yuan, relative to the US Dollar, it stands to reason that the demand for US dollars will have to be kicked up a notch for awhile.
Now that we know China is selling treasuries, to prop up US dollars in the short term, and weaken their currency, it largely explains the noticeable spike in the USD index over the past week or so. This mass liquidation of treasuries is a game-changer, because everyone understands what happens when large parties start to dump the “cadillac of the world’s debt instruments”. Other nations will now likely be more emboldened to follow the Chinese(and Russian) lead, and abandon US treasury instruments as well.
This bond dump(and the reasoning given for it) now may hold the answer to a question, that I’ve been trying to solve in my mind over the past few years:
How is China going to “unload” a reasonable portion of their treasury position, without it: A) roiling the market too badly, and B) being seen as a completely hostile move toward DC’s world regime?
I believe this emergency move by the Chinese is a shrewd way of answering this question. Think about it!
Instead of selling tens(or hundreds) of billions of dollars in US treasuries as an overtly political move of retaliation, China can now legitimately say that they simply needed to free up more dollars in order to sustain a weaker currency! Both to:
1) Sustain their export market(‘protecting jobs and revenue’) and to
2) Help prop up and give support to their stock market…
Now, neither of those things will work, but it doesn’t have…it only has to help sustain the perception that this mass liquidation of UST’s is about “helping” out Chinese citizens and the Chinese job market, instead of attacking the West.
This was my first thought last Friday, when I heard about the confirmation of the bond sales, and other shield brothers(including one of our resident Dutch shield brothers), also suspected as much.
In this way, their reasoning has ensured that the common Chinese citizen will now see these Yuan devaluations as ‘in their best interests’, and perhaps even a means of trying to ‘bailout’ the common man…all while gently nudging them in the direction of gold.
I warn you though, brothers: if this is indeed China’s gameplan, then we may not have seen the last of these devaluations…there may be more to come in the weeks ahead.
And if that’s true, then it follows that we likely also haven’t seen the last of the US dollar’s strength.
If the Chinese decide to devalue another 10%, or even another 5% versus the Dollar, it would likely require the sale of up to another several hundred billion dollars in US treasuries over the coming months. Such a sale would give a rather large boost to the USD index within a short period of time….which could also provide further short term weakness to paper gold and silver prices.
That last part is not a given, I’m just giving fair warning here, that it could happen. With the wind at the shorting hedge funds’ backs(to say nothing of Citibank, as well), it means the bottom in precious metals may not have been reached yet.
However, I still intend on responding professionally to this unbelievably good stacking opportunity right now…because the growing lack of silver(and gold) in the retail sphere is getting so dire and systemic, that it could upend the rigging con at any time without warning(dollar spikes not withstanding).
As aggressive as this part of China’s dedollarization is though, shockingly, that isn’t even the biggest news of the week. The next move they made was even more bold!
Gold Valuations
For China then made a stunning change in the accounting of their gold reserves, by deciding to mark their central bank-held gold reserves, to market. What this means is that the tens of billions of dollars of gold they(officially) possess, will not be frozen for long periods of time, or subject to government “fixes”. For instance, the “gold” at Fort Knox and elsewhere, is comically “valued”, or “fixed” by the Fed and the Treasury, at roughly $42 per oz, and has been since 1973! Those kinds of fairy-land valuations, from the Micky Mouse world of make-believe, will have no part in China, or the new global financial system.
This map shown beneath, which has been posted by other shield brothers before, is a snapshot of the growing list of countries who’ve now marked their gold “to market” as well. The countries in green are the ones, that we know of, who have decided to allow their gold reserves’ values, to be accurately reflected by the London Fix price, at any time.
And boy howdy, would you just look at all that green?
http://thewealthwatchman.com/wp-content/uploads/2014/12/BRICS.jpg
Folks, something should jump out at you about this map immediately…
Notice anything?
Remember what I’ve written about several times, as the true threat to DC/London bankster hegemony?
Yes, that’s right: a united Eurasia….
Notice how utterly lit-up most all of Eurasia is now? With the exceptions of East Europe, Mongolia, a few of the “Stans”, and southern Asia….the entire Eurasian bloc is now as green as a lush Irish pasture!
What does this mean?
It means that the Eurasian bloc is, most assuredly, pro-gold, and that they intend for gold to have a future as a top-tier, reserve asset on their books, and likely, within their trade as well.
It means Russia, China, India, and Europe will be setting the new rules for the new system, not the DC & London tag-team, and that this new system will be based on a better international anchor, to determine real value for everyone.
It means that the sun is setting on the olden days of the “PhD standard” of unfairly valuing everyone’s currency, based solely upon a “world reserve”, debt-based, fiat currency.
For decades, an international system of using gold for sovereign or individual payments was really impossible, so long as gold’s price remained so highly manipulated and depressed. France quickly showed the world how ridiculous Bretton Woods was, by simply taking delivery of gold at roughly $35 an ounce…which promptly ended that system.
The only way that gold(and silver) can be used, en masse, again, to settle trade between nations or individuals, is by treating them as special, top tier assets…and then by allowing those assets to freely float against the currencies of the world.
As we all know, gold and silver are the least fairly-valued, most heavily rigged assets on the planet. They must be revalued(by many multiples) higher than they are now, and then be allowed to find their true, stable value, relative to the real assets and currencies of the world.
The only way that can happen though, is for:
1) Most of the major powers to decide to embrace a freely-traded gold and silver price…and then..
2) Do what is necessary to free the gold/silver rigging power from the Western riggers…
China’s valuing their gold to market means that step 1 in that process above is virtually complete. Most of the nations East have decided that gold is their future for stability, wealth preservation, and trade. The decision has now been made: US Dollars, as an international “anchor” are out…and gold is in.
Now they’ve but to set these metals’ prices free, and allow them to find their real values…and doing this means removing gold & silver from the vaults and coffers of those doing the rigging…This second step will be completed, and soon…
Conclusion
For years, the US dollar has been a blight upon humanity…a poison within the nations of the world…slowing their economic heart-rates, and shutting down their sovereignty.
Beijing, with this two-pronged strategy, has just buried its own twin fangs into the US dollar standard, injecting a counter-toxin into the Uber toxin. Fortunately, the withdrawal from the US dollar poison will not kill the victims of it, because Eurasia is now also flush with dollar-toxin antidotes: mounds of gold!
China has now revealed more of what their endgame strategy will be. They’ve begun a pincer movement aimed at buying their economy time in a spiraling world financial system.
From dumping treasuries(which also allows Beijing and Chinese citizens to scoop up even cheaper gold, by the way), to marking their gold reserves “to market”, China is sending a clear warning of its intentions. The world doesn’t need governments fixing the price of gold or silver any longer, that’s what made this entire mess possible. What we need, more than anything is truth. Truth is the one thing which can restore balance, confidence, and justice to a toxic, world financial system gone horribly wrong.
Paradoxically, the problem is, that since the current system was built by lying criminals, on the bedrock foundation of fraud…..truth is also the one thing that will destroy that system. Thusly, Truth has been avoided at all costs, and for far too long. It doesn’t matter though. In the end, what is whispered in the darkness, will be shouted upon the rooftops. Truth will win out in the end…and nothing can stop it.
This move by China to “fairly” value gold on their balance sheet, is a giant step toward truth, and brings gold’s international status of “Top Tier asset” that much closer to reality. Now that China, Russia, Europe, and much of the rest of Asia and South America has marked gold to market…the world’s prior, dollar system has less time than ever.
China, Russia, and much of the international community is signaling that they’re prepared & strapped in…They’re in the cockpit, and have punched their “hyper-drive”. Dedollarization will now quicken to warp speed.
Eurasia is ready for this rocket to begin…and to benefit, on their balance sheets, from the gold(and silver) revaluations shortly to take place.
The question is: are you?
http://thewealthwatchman.com/beijing-just-buried-its-fangs-into-the-us-dollar-standard/