The BRICS, Chaos Is Coming
He Who Has the Gold, Makes the Rules
You know that !
Submitted by cpowell on Thu, 2015-05-14 03:26. Section: Daily Dispatches
11:29p ET Wednesday, May 13, 2015
Dear Friend of GATA and Gold:
Colorado securities lawyer Avery B. Goodman writes tonight that China’s vast acquisition of gold is meant to create a mechanism for controlling the currency markets and devaluing the yuan against the U.S. dollar as convenient while escaping charges of currency market manipulation.
Drawing on a crucial U.S. State Department document unearthed by GATA —
— Goodman writes: “Whoever controls the price of gold against their own currency controls the price of gold against any other currency that gold is denominated in. When China increases the number of yuan it takes to purchase an ounce of gold, the dollar will respond by rising in value, even though China will not be pegging its yuan directly against the dollar.” Chinese goods thereby will become cheaper against U.S.-made goods, preserving China’s advantages in world trade.
Goodman continues: “Control over the worldwide currency markets is why China wants to control the gold market. It is already taking affirmative steps to establish that control, and that is what is behind the announcement that the Shanghai Gold Exchange will establish a yuan-based gold fix before the end of 2015.”
Goodman’s analysis is headlined “The Real Reason China Is Buying Up the World’s Gold” and it’s posted at Seeking Alpha here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
There has only been one other time in history when the price of oil has crashed by more than 40 dollars in less than 6 months. The last time this happened was during the second half of 2008, and the beginning of that oil price crash preceded the great financial collapse that happened later that year by several months. Well, now it is happening again, but this time the stakes are even higher.
When the price of oil falls dramatically, that is a sign that economic activity is slowing down. It can also have a tremendously destabilizing affect on financial markets. As you will read about below, energy companies now account for approximately 20 percent of the junk bond market. And a junk bond implosion is usually a signal that a major stock market crash is on the way.
So if you are looking for a “canary in the coal mine”, keep your eye on the performance of energy junk bonds. Read more:
‘BRICS system’ – healthy alternative to ‘defunct dollar system’
“…it is high time that the currency of worldwide theft, abuse and exploitation – the US dollar – financial instrument for endless wars and economic terrorism, be replaced with a currency of peaceful endeavors that respects national sovereignty – a currency that works for the people, not for the elite few,” said Koenig adding that currently six US banks control more than 60 percent of all banking assets.
A new monetary system should replace the existing FED-BIS (Bank for International Settlement)-Wall Street “dollar denominated predatory casino scheme that has in the last 100 years alone largely contributed to – and benefitted from – two world wars, impoverished our planet, socially and environmentally,” Koenig said “This system is at the verge of a larger abyss than the depression of the 1930s.”
BRICS, which is actively leading a massive effort of de-dollarization, can become a viable alternative to the Western economic system, Koenig believes.
The Shanghai Stock Exchange said on Monday regulators are ready to experiment with resuming same-day settlement for stocks after a long freeze, a move that would put Hong Kong and mainland Chinese exchanges on the same settlement regime and eliminate a big operational mismatch. ($1 = 6.1144 Chinese yuan)
The announcement by Hong Kong and Chinese regulators on Monday comes as China is making a big push to widen the use of the yuan, with Canada and Malaysia becoming the latest addition to a growing list of trading hubs for the currency.
The so-called Stock Connect trading scheme could boost the average daily value of stock trading in Hong Kong by about 38 percent by 2015, French bank BNP Paribas estimates, and may ultimately lead to the creation of the world’s third largest stock exchange.
* Could creates world’s third largest equity market
* Launch of scheme was expected late October
* Chinese retail investors can buy foreign shares directly for first time (Updates with comments from Hong Kong, China exchanges)
Russia’s colossal economic shift toward Asia in energy, finance, and infrastructure deepened at this year’s APEC summit in Beijing with 17 major bi-lateral business deals with China. The strategic alliance could crowd out other global players.
The deals signed by the world’s second and eighth largest economies reflect a ‘synergy’, as natural resource rich Russia has a lot to offer a country with one of the world’s fastest growing populations and economies, Martin Jacques, columnist and author of When China Rules the World, told RT.
“Russia is very rich in natural resources and China is very poor so there is a natural synergy in their economic relationship. Russia has something to offer China which China needs,” he said.
Both Russia and China are also uncomfortable with the current US-dominated world order, although not in quite the same way, says Jacques. Read more:
They Know Chaos Is Coming – Dr. Jim Willie Exclusive
Former Federal Reserve Chairman Alan Greenspan said Wednesday that the Fed’s bond-buying program, which aimed to lower unemployment and spur stronger economic growth, fell short of its goals.
Mr. Greenspan’s comments to the Council on Foreign Relations came as Fed officials were meeting in Washington, D.C., and expected to announce within hours an end to the bond purchases.
“Effective demand is dead in the water” and the effort to boost it via bond buying “has not worked,” said Mr. Greenspan. Boosting asset prices, however, has been “a terrific success.”
The question of when officials should begin raising interest rates is “one of those questions I cannot answer,” Mr. Greenspan said.
He also said, “I don’t think it’s possible” for the Fed to end its easy-money policies in a trouble-free manner.
He said the Fed may not even have that much power over the timing of interest-rate increases. The problem as he sees it is an interest rate the Fed pays on the money banks park at the central bank, called reserves. Fed officials plan to use this tool as their primary lever for raising interest rates when the time comes. If bankers decide to put this money to work, creating inflation risks, the Fed may be forced to raise rates, even if the economy isn’t ready for it, he warned.
“I think that real pressure is going to occur not by the initiation by the Federal Reserve, but by the markets themselves,” Mr. Greenspan he said.
Mr. Greenspan said gold is a good place to put money these days given its value as a currency outside of the policies conducted by governments.
He was also downbeat about Europe and said the only way the euro can survive over the long run is through full political integration of the 18-country area that shares the currency. Anything short of that will allow imbalances to fester and build, eventually leading to a collapse of the currency, he said. Read More:
Chinese Finance Minister Lou Jiwei gives a speech during the signing ceremony of the Asian Infrastructure Investment Bank at the Great Hall of the People in Beijing Friday, Oct. 24, 2014. China and 21 other Asian nations have signed on to the new international bank opposed by Washington as an unnecessary rival to established institutions such as the World Bank.(AP Photo/Takaki Yajima, Pool)
In a landmark achievement, 21 Asian nations including China and India on Thursday signed on a new infrastructure investment bank which would rival the World Bank.
The governments of Bangladesh, Brunei Darussalam, Cambodia, China, India, Kazakhstan, Kuwait, Lao PDR, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, Philippines, Uzbekistan, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan, Vietnam signed on as founding members of the new Asia Infrastructure Investment Bank (AIIB) in Beijing on Friday.
One of the first projects of the new Bank is expected to be financing infrastructure projects along the “Silk Road Economic Belt” and the “Maritime Silk Road” re-establishment.
Chinese Finance Minister Lou Jiwei said on Friday the “multi-national financial institution which is fair, just, open … with a good governance structure” will be an “efficient financing platform for infrastructure”.
Lou said the AIIB has a different focus than established multilateral organizations such as World Bank and Asian Development Bank (ADB).
China and other emerging economies, including BRICS, have long protested against their limited voice at other multilateral development banks, including the World Bank, International Monetary Fund and Asian Development Bank. Read More:
Jim Willie: Market Shock and Awe coming as Gold Repricing in works by China
by Peter KoenigEver since the BRICS (Brazil, Russia, India, China and South Africa) expressed their unison through the formation of a joint Development Bank – Durban, South Africa on 27 March 2013 – the Zionist-Anglo-Saxon caliphate attempted to divide them. The BRICS constitute some 45% of the world population and close to 30% of global GDP. The BRICS idea is to issue a joint alternative currency, fully detached from the US dollar and its greed economy.In the meantime a number of other countries would like to join the BRICS, including Argentina, Venezuela, Iran, Mongolia, Malaysia and others, which would result in about one third of the world’s economic output and half of the global inhabitants.
This gives the BRICS a profile of strength surpassing that of the United States and Europe together. China alone is not only already the world’s largest economy, China is also dominating the Asian market of some 4.2 billion people, 60% of the world populations and a combined GDP of about US$ 20 trillion, equivalent to about US$ 25 trillion, when comparing purchasing power with the dollar based US economy of about US$ 17 trillion. Asia registered an average growth rate of almost 8% over the past few years, compared to that of the western world, hovering around 1%.
There is no need for the BRICS to fear US interference – divide to rein – if they are able to solidify their union with solidarity – political and monetary solidarity, as well as common trade policies – and if they have the political will to decouple their economies from the dollar – which is key for the BRICS success. read more:
Harvey Organ- By December Whole Thing Going to Collapse
Harvey Organ- By December Whole Thing Going to Collapse
The trillion-dollar club
The BRICs matter because of their economic weight. They are the four largest economies outside the OECD (Organisation for Economic Co-operation and Development, the rich man’s club). They are the only developing economies with annual GDPs of over $1 trillion
IN ANY global gathering, the American president is usually seen, at a minimum, as primus inter pares: the one who can make or break the final bargain and select his favoured interlocutors. Not anymore !
In Copenhagen December 2009, as negotiations for a new climate-change treaty were entering their final hours, a hastily convened meeting between Barack Obama and China’s prime minister, Wen Jiabao, looked as if it would be the critical moment when a deal might be struck. But when the president turned up, he found not only Mr Wen but the heads of government of Brazil, South Africa and India. This was unexpected. The Americans even thought the Indians had already left the summit. What was conceived as a bilateral talk turned instead into a negotiation with an emerging-market block. As an additional sign that things were changing in the world, the president got a finger-wagging from one of Mr Wen’s hangers-on. But at least Mr Obama was in the room; Europeans were shut out while the emerging powers and America put the final touches to their deal.
BRICS Announce $100 Billion Reserve To Bypass Fed, Developed World Central Banks
As we suggested last night, the anti-dollar alliance among the BRICS has successfully created a so-called “mini-IMF” since the BRICS are clearly furious with the IMF as it stands currently: this is what the world’s developing nations just said on this topic “We remain disappointed and seriously concerned with the current non-implementation of the 2010 International Monetary Fund (IMF) reforms, which negatively impacts on the IMF’s legitimacy, credibility and effectiveness.” Read More:
Bangladesh wants to join the new BRICS development bank as a founding member
“We will ask the Bangladeshi ambassadors to the BRICS countries to know details about the proposed global bank. After getting details we will decide on our joining in the framework,” the newspaper quoted one Finance Ministry official as saying. “If the details are found favorable, Bangladesh might consider becoming a proud founding-member with a good amount of fund contribution.”
Game Over! Dollar Dead! Gold $7000 (Part 1)
On Sept. 30, statistician and economist Dr. Jim Willie was a guest on the Caravan to Midnight radio show to talk about current financial, economic, and geo-political events. During his three hour interview, Dr. Willie stated that one of the purposes behind China’s creation of the new Shanghai gold exchange is to eventually take over global price controls for the monetary metal away from the Comex, and then force a global currency reset by raising the price of gold to its true or actual value.
The way this will come about in the near future according to Dr. Willie, is that China will re-price gold to near or above twice the current price, which will have a devastating effect on derivatives and ongoing use of the Comex futures market to suppress gold prices, and protect the dollar. And based upon supply details for the Comex over the past two years, America’s primary gold exchange no longer settles their contracts through the delivery of physical gold, but instead settles in cash payments or through the hedging of gold using derivatives. Subsequently, once this failure to deliver takes place, then China, through the Shanghai gold exchange, will become the default market for price discovery, and at that point will re-adjust gold to its true value, instantly causing massive chaos in the fiat currency markets and leaving the world little alternative but to implement a complete currency reset.
BRICS…Breaking The Jewish Money Power
How the West Ferments Revolutions & War
Horizon: Moon for sale 1/2 – China Helium 3
Zero Hedge Reports:
We remain disappointed and seriously concerned with the current non-implementation of the 2010 International Monetary Fund (IMF) reforms, which negatively impacts on the IMF’s legitimacy, credibility and effectiveness. The IMF reform process is based on high-level commitments, which already strengthened the Fund’s resources and must also lead to the modernization of its governance structure so as to better reflect the increasing weight of EMDCs in the world economy. The Fund must remain a quota-based institution. We call on the membership of the IMF to find ways to implement the 14th General Review of Quotas without further delay. We reiterate our call on the IMF to develop options to move ahead with its reform process, with a view to ensuring increased voice and representation of EMDCs, in case the 2010 reforms are not entered into force by the end of the year. We also call on the membership of the IMF to reach a final agreement on a new quota formula together with the 15th General Review of Quotas so as not to further jeopardize the postponed deadline of January 2015.
BRICS, as well as other EMDCs, continue to face significant financing constraints to address infrastructure gaps and sustainable development needs. With this in mind, we are pleased to announce the signing of the Agreement establishing the New Development Bank (NDB), with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies. We appreciate the work undertaken by our Finance Ministers. Based on sound banking principles, the NDB will strengthen the cooperation among our countries and will supplement the efforts of multilateral and regional financial institutions for global development, thus contributing to our collective commitments for achieving the goal of strong, sustainable and balanced growth.
The Bank shall have an initial authorized capital of US$ 100 billion. The initial subscribed capital shall be of US$ 50 billion, equally shared among founding members. The first chair of the Board of Governors shall be from Russia. The first chair of the Board of Directors shall be from Brazil. The first President of the Bank shall be from India. The headquarters of the Bank shall be located in Shanghai. The New Development Bank Africa Regional Center shall be established in South Africa concurrently with the headquarters. We direct our Finance Ministers to work out the modalities for its operationalization.
We are pleased to announce the signing of the Treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of US$ 100 billion. This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements. We appreciate the work undertaken by our Finance Ministers and Central Bank Governors. The Agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures.
Max Keiser with John Perkins –
Economic Hit Men Now Used on Americans:
Max Keiser talks with John Perkins (Confessions of an Economic Hit Man). Discussed is how that in the past debt was used as an enslaving tool against foreign countries to insure Americans continued to receive cheap goods is now being turned back against Americans. Financial debt is now being used by Wall Street Banks to destroy Americas freedoms and enslave them.
Hong Kong Protests Carefully Crafted, Not Spontaneous