I suspect from the airport loading report that the Fed took Ukraine’s 80(?) tons of gold to NY. Fair enough. The USA shelled out $5 billion to put the current Ukraine government in power and International currency wrestling makes MMA look girly.
Deaths run in the millions.
The Ukraine gold raid was a straw in the wind. I believe that we’re currently watching/participating in the biggest currency battle in world history: the USA is panicking about the dollar. Freaking out because it’s never played defense before.
The nonstop barefaced, hysterical, childish, transparently stupid lying and provocation of Russia and China we’ve seen lately is a symptom of desperation.
The U.S. is attacking Russia and China simultaneously because they’re simultaneously attacking the USA.
Putin declared war earlier this year stating, “We must de-dollarize the world”. Russia, a perennial defender against foreign attack, seized the initiative and attacked first. Challenging the dollar took immense personal courage.
Within a week a senior US Military official publicly called for someone to “put a bullet in Putin’s brain”.
For having the balls to publicly confront the Mighty Dollar Putin was voted “Most Powerful Man in the World” by Forbes Magazine’s upper-crust subscribers last year and again this week.
Dr. V. V. Putin is a professional intelligence specialist with black belts in the two toughest martial arts leagues in the world and a PhD in natural resource deployment.
He trained for years in the world’s biggest and most successful Intelligence operation, the NKVD. His professional specialty was assessing people.
He operated in Germany, is fluent in German, and his closest foreign friend is Gerhard Schroeder, the former Chancellor of Germany. Angela Merkel wants to mother him or fuck him. Or both. Watch her body language in their many videos together.
Germans know they’ve ceded too much power to the USA. The Russians gave the East its freedom in 1988(?).
The West wants its freedom, too. While our Western media watches Dr. Putin China is letting the air out of America’s tires.
The internationalization of the renminbi is the most visible of the 3-prong Chinese-Russian attack. Gold is the second prong. Special Drawing Rights are the third. All three prongs are now embedded in Uncle Sam’s ample buttocks.
1. Even Australia has warmly embraced the RMB and groveled for permission to trade it in Sydney — as has every nation on earth. The dollar’s market share decline has accelerated from 1% annually (the past 40 years) to over 2% this year: an increase of 100% in one year. If that trend carries into 2015, watch for a wobbly dollar.
2. Gold will double in price when the Fed can no longer make physical delivery of the bullion it currently sells for $1,000/oz. Chavez was warned (by either China or Russia, presumably) and publicly forced London to disgorge and repatriate Venezuela’s physical gold reserves. He was vilified as a madman in the Western financial press for doing so.
Germany requested repatriation of their gold reserves earlier this year and the Fed was unable to come up with the 80+(?) tons.
China and Russia — the world’s #1 and #2 gold producers — are buying gold on the open market. Last year China alone took delivery of more gold than the world produced. If it can force the USA to demonstrate that Fort Knox is empty (stated reserves 8,000 tons), it’s game over. Last year China granted Switzerland its first European FTA.
Swiss watches now stream into China minus the 59% duty that kept them out of reach of millions of consumers; Swiss tunnel-boring equipment is shipping in billion-dollar lots. Switzerland’s economy has never looked healthier.
Next week, by the wildest coincidence, the Swiss vote whether to restore physical gold bullion as the base for Its currency reserves. Switzerland is famous for financial ruthlessness. It’s also the only nation whose constitution requires that such initiatives be put to a vote by to all Swiss citizens.
A coincidence? Chinese Governments have been pulling off stunts like that since before Jesus showed up. Successes and failures were always analyzed by the Empire’s finest minds with its archival value foremost in their minds.
They archived thousands of such stratagems over the millennia and today the Chinese Government refers to those archives when beginning policy deliberations. That’s why the Court Historian has such prestige. His discerning eye, applied to an archive unparalleled in its breadth, depth, and subtlety, can save the Empire.
3. SDRs are taking off. At China’s insistence, the IMF denominated its current loans to Ukraine in SDRs — a synthetic currency of international settlement that is automatically revalued daily based on the previous day’s trade-weighted global currency transactions. It is less vulnerable to — and less controllable by — any single currency issuer. SDRs were invented in 1946 for Bretton Woods, by John Maynard Keynes.
The USA preferred the dollar the medium of international settlement — a decision they are beginning to rue.
Sic transit gloria currency.
Mr. Godfree Roberts is one of the frequent contributors for The 4th Media.
De-Dollarization Accelerates – China/Russia Complete Currency Swap Agreement
The last 3 months have seen Russia’s “de-dollarization” plans accelerate.First Gazprom clients shift to Euros and Renminbi, then the UK signs currency swap agreements with China, then NATO ally Turkey cuts ties and mulls de-dollarization, Switzerland jumps in the currency swap agreements, and BRICS create their own non-US-based funding vehicle, and then finally this week, Russia’s oligarchs have shifted cash holdings to Hong Kong.
But this week, as RT reports, Russian and Chinese central banks have agreed a draft currency swap agreement, which will allow them to increase trade in domestic currencies and cut the dependence on the US dollar in bilateral payments.
““The agreement will stimulate further development of direct trade in yuan and rubles on the domestic foreign exchange markets of Russia and China,” the Russian regulator said.
In early July, the Central Bank’s chairwoman Elvira Nabiullina said Moscow and Beijing were close to reaching an agreement on conducting swap operations in national currencies to boost trade. The deal was later discussed during her trip to China.
President Vladimir Putin, during his visit to Shanghai in May, said cooperation between Russian and Chinese banks was growing, and the two sides were set to continue developing the financial infrastructure.
“Work is underway to increase the amount of mutual payments in national currencies, and we intend to consider new financial instruments,” Putin said after talks with President Xi Jinping.
It appears the deal is done…
The Russian and Chinese central banks have agreed a draft currency swap agreement, which will allow them to increase trade in domestic currencies and cut the dependence on the US dollar in bilateral payments.
“The draft document between the Central Bank of Russia and the People’s Bank of China on national currency swaps has been agreed by the parties,” and is at the stage of formal approval procedures, ITAR-TASS quotes the Russian regulator’s office on Thursday.
The Russian Central Bank is not giving precise details on the size of the currency swaps, nor when it will be launched. It says this will depend on demand.
According to the bank, the agreement will serve as an additional instrument for ensuring international financial stability. Also, it will offer the possibility to obtain liquidity in critical situations.
“The agreement will stimulate further development of direct trade in yuan and rubles on the domestic foreign exchange markets of Russia and China,” the Russian regulator said.
Currently, over 75 percent of payments in Russia-China trade settlements are made in US dollars, according to Rossiyskaya Gazeta newspaper.
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And as we have explained repeatedly in the past, the further the west antagonizes Russia, and the more economic sanctions it lobs at it, the more Russia will be forced away from a USD-denominated trading system and into one which faces China and India.