- Koos Jansen is an excellent China and gold watcher. His latest is on the new Silk Road that China is building. This is the overland compliment to their String of Pearls ports and supply chain idea. Iran matters here, as does India. Wait, you thought Barack Obama penned the Modi Time's 100 essay (with praise) and you thought Modi later being on the cover of time this spring were out of nowhere? No! The cathedral is incredibly paranoid that India will align with Russia and China. China is smart, make friends with India and Russia, and they secure their huge borders. Then they can look outward to the Pacific.
- It appears the Chinese will have to announce their gold holdings to get what they want from the IMF regarding the SDR moves. With all of the pro- and then anti- talk about the SDR, and the instability that an SDR basket would create per the writing of others, the move to an SDR for global trade and finance is a temporary one as China-Russia get stronger. The path could be King Dollar to SDR basket with temporary realignments to new gold system. Gold is the final endgame. I like the idea of a gold backed crypto-currency. Let's get that going.
- China and Russia inked some more deals. This latest invovles lending to Russian firms by the Chinese. Yes, State Department geniuses, cutting off Russia was going to limit them from being able to do business with anyone else. Just like those wizards of Wall Street, other people would love to get a piece of that Russian commodity powerhouse. China already gets much from Africa, but transit from Africa would bump into the American Navy. The Chinese are not ready to confront that beast... yet.
- Do not take these wanrings of global change and a new financial alignment from me. Read Bill Gross on the idea that this is all ending. Mr. Gross knows the generational bull run in bonds must end as there is no place for yields to go any longer and no borrower on the margin who has any credibility. There is a reason certain people were not loaned money with regularity or low rates for ages; they cannot pay it back. Equality is a dream.
There are no allies only interests, and our ruling elite's interests diverged from China's a while ago. The biggest change was when the Anglo-Soviet split ended, and the US did not need to use China against the Soviets any longer. No real shared interest after that, and what slowly built up was a Mutually Assured Economic Destruction... but even that has changed. Politically and socially, Harvard and the NY Times might dream up new perversions and new schemes for breaking domestic political enemies under the guise of equality and rights, but these have no use for China. We call a childless single working woman at age 29 an "independent, strong woman". The Chinese call them "yellowed pearls". We do not have to touch anything else, because that gender worldview difference informs you enough. The truth is that we already lost China. The truth is China was never really ours to lose.