TaiShang
ELITE MEMBER
- Joined
- Apr 30, 2014
- Messages
- 27,848
- Reaction score
- 70
- Country
- Location
IMF's denial of China into SDR will lead to Yuan ending dollar domination sooner
August 9, 20158:15 PM MS
On Aug. 8, China began a new pilot program where a town on the border of Russia will begin to administer trade between the two countries using the Yuan currency. In fact, this program appears to be the next step, and an extension of prior agreements reached between the two economies where less than a year ago the Eurasian and Far Eastern governments shook hands to begin the selling of oil and natural gas in the RMB currency as a means of bypassing thedollar, and ending petro-dollar hegemony.
Yet this test program with Russia is not the only new agenda for China to help expand the global use of the Yuan in international trade. According to statistician Dr. Jim Willie in his most recent Hat Trick Newsletter, the analyst is forecasting an accelerated increase of the Yuan in global commerce due to the sudden delay by the International Monetary Fund (IMF) last week in accepting the RMB into the Special Drawing Rights (SDR) basket of currencies.
The big landmark event last week was the Intl Monetary Fund decided to delay entry of the Chinese RMB currency into their Special Drawing Rights basket of currencies. The reasons proffered were likely all insincere and misdirected, as the corrupt Western stink agency IMF cited the RMB as not ready for inclusion. More truthfully, the big banks did not want the competition to the major FOREX currencies and diversification out of USTreasurys. It was a clear betrayal of China.
In response, expect China to hasten its efforts to dislocate the USDollar from its perch in trade and banking. Expect extreme pressures to accelerate the increasing required usage of Chinese RMB in trade settlement. In the last two years, there has been a fast rise in US-based corporations being forced to settle in RMB to Asian suppliers for shipments of finished products. This comes after years of more widespread usage of Yuan Swap Facilities for bilateral trade between nations with China. Expect a sharp step toward coercing the Saudis to accept RMB currency in oil shipments, a movement sure to spread to all Gulf Emirate nations, then to all OPEC nations. The oil card is the flash point. - Silver Doctors
A few weeks ago it was discovered that the Chinese were dumping their dollar reserves in an attempt to both protect their equity markets, and to use the Treasury Bonds as letters of credit in their open trade agreements. In fact, the Chinese have dumped over $500 billion in just the last six months, moving them out of their former position as the world's largest holder of U.S. debt. Yet just as important as their dumping of dollars is to the security of the U.S. currency, China's move to divest their dollar reserves is being matched by Russia and other BRICS nations as the world now appears in a race to get out from under dollar hegemony more each day.
It was confusing to many as to why China had wanted to be a part of the IMF's SDR program in the first place, especially when they had just opened their Asian Infrastructure and Investment Bank (AIIB) which happens to mirror exactly the long-standing functions of the IMF. But with the West obviously putting pressure on the global bank to delay or perhaps outright reject China's bid to become part of the alternative global monetary system, it appears now likely that the largest economy in the Far East will simply accelerate their plans for Yuan hegemony, and continue in earnest to conduct trade settlement in the RMB... both bi-laterally, and across the globe.
August 9, 20158:15 PM MS
On Aug. 8, China began a new pilot program where a town on the border of Russia will begin to administer trade between the two countries using the Yuan currency. In fact, this program appears to be the next step, and an extension of prior agreements reached between the two economies where less than a year ago the Eurasian and Far Eastern governments shook hands to begin the selling of oil and natural gas in the RMB currency as a means of bypassing thedollar, and ending petro-dollar hegemony.
Yet this test program with Russia is not the only new agenda for China to help expand the global use of the Yuan in international trade. According to statistician Dr. Jim Willie in his most recent Hat Trick Newsletter, the analyst is forecasting an accelerated increase of the Yuan in global commerce due to the sudden delay by the International Monetary Fund (IMF) last week in accepting the RMB into the Special Drawing Rights (SDR) basket of currencies.
The big landmark event last week was the Intl Monetary Fund decided to delay entry of the Chinese RMB currency into their Special Drawing Rights basket of currencies. The reasons proffered were likely all insincere and misdirected, as the corrupt Western stink agency IMF cited the RMB as not ready for inclusion. More truthfully, the big banks did not want the competition to the major FOREX currencies and diversification out of USTreasurys. It was a clear betrayal of China.
In response, expect China to hasten its efforts to dislocate the USDollar from its perch in trade and banking. Expect extreme pressures to accelerate the increasing required usage of Chinese RMB in trade settlement. In the last two years, there has been a fast rise in US-based corporations being forced to settle in RMB to Asian suppliers for shipments of finished products. This comes after years of more widespread usage of Yuan Swap Facilities for bilateral trade between nations with China. Expect a sharp step toward coercing the Saudis to accept RMB currency in oil shipments, a movement sure to spread to all Gulf Emirate nations, then to all OPEC nations. The oil card is the flash point. - Silver Doctors
A few weeks ago it was discovered that the Chinese were dumping their dollar reserves in an attempt to both protect their equity markets, and to use the Treasury Bonds as letters of credit in their open trade agreements. In fact, the Chinese have dumped over $500 billion in just the last six months, moving them out of their former position as the world's largest holder of U.S. debt. Yet just as important as their dumping of dollars is to the security of the U.S. currency, China's move to divest their dollar reserves is being matched by Russia and other BRICS nations as the world now appears in a race to get out from under dollar hegemony more each day.
It was confusing to many as to why China had wanted to be a part of the IMF's SDR program in the first place, especially when they had just opened their Asian Infrastructure and Investment Bank (AIIB) which happens to mirror exactly the long-standing functions of the IMF. But with the West obviously putting pressure on the global bank to delay or perhaps outright reject China's bid to become part of the alternative global monetary system, it appears now likely that the largest economy in the Far East will simply accelerate their plans for Yuan hegemony, and continue in earnest to conduct trade settlement in the RMB... both bi-laterally, and across the globe.
