Small little piece of news was released per Reuters on Monday. It involves the infrastructure to the parallel world system the Chinese-Russia axis are trying to set up, but no need for alarm Americans. Keep focused on Iran-Israel-Kardashians in some order. China has been working on a system that would allow international yuan transactions, and now the timetable is for a start near the end of 2015. It is in testing mode, and looks to be launch in 3rd quarter 2015. Here is a fun tidbit tucked into the end of the short Reuters blurb,
"China's yuan became one of the world's top five payment currencies in November 2014, overtaking the Canadian dollar and the Australian dollar, according to global transaction services organization SWIFT".Hey, wait a second. Who is building an alternative to SWIFT so that the USG regime cannot perform financial warfare on opponents. Oh that's right. Silly old Russia. I should not mock the mainstream media too hard about their odd coverage of this. At least the Wall Street Journal is concerned.
Another item that should cause people to scratch their heads is the massive gold import story in China. Koos Jansen is probably the best of the China gold watchers, and he has noticed the same strong demand for gold that is underreported in China. This is not like the COMEX that is a paper market; these are gold deliveries. This is on top of internal gold production that they keep in-house. This story is interesting enough on its own for the sheer size of imports, but the next question is, where is it coming from? Who is their supplier? Another question is: if they are delivering 20+ tonnes a day in Shanghai, how come Germany cannot get its 700 tonnes in under seven years from the FED? That does not pass the smell test. If Germany wants to prepare for a post-euro financial regime, they might as well start swapping their gold claims from FED custodial holdings for actual deliveries in Shanghai.
The last item, and there is no link since it is obvious, is how long will China import deflation or at least disinflation from the US? Because of its yuan-dollar peg, as the US dollar strengthens so has the yuan. This helps with purchases of raw materials, but it causes quite the strain on China with all the debt floating around there. Do they announce gold holdings, causing a shock and then drop in the dollar's value? Do they sit tight and amass gold and oil before the dollar breaks, or euro, which will boost the dollar temporarily? Do they pull the rug out from the dollar due to their unique position with all of those US Treasuries? I don't know, but I do think silence and amassing gold only benefits them for now. I wish I saw someone in the mainstream media tackling this issue.
Gold plays into the Sun-Tzu approach. Fight your enemy on battlefields you choose and avoid fighting when overmatched. Maybe they know they cannot take Uncle Sam on head on, but if they take a different route, they do not have to fire a shot. It is pretty clear that the Russian-Chinese axis sees the dollar as the key, and they are trying their best to build around it and weaken its dominance. The Chinese most likely have their own version of the Golden Rule. I do not know it, but my grandfather told me our version when he explained why I needed to listen to him. He who has the gold makes the rules.