Tuesday, April 19, 2016

The Economy: “China Launches Yuan-Denominated Gold Benchmark”

“China Launches Yuan-Denominated Gold Benchmark”
by U.S.Reporter

“China launched its yuan-denominated gold benchmark on Tuesday in Shanghai as it seeks to secure more sway in the pricing of the precious metal. The Shanghai Gold Benchmark Price (code: SHAU), is the quote for trading of 1kg, 99.99 percent purity bullion, denominated in the Chinese yuan and derived from multiple rounds of trading. The benchmark was set at 257.97 yuan per gram on Tuesday, the Shanghai Gold Exchange (SGE) said in a statement. The benchmark also lays the foundation for shifting bullion trading in Shanghai from mostly spot to derivatives to increase the appeal of yuan-denominated bullion trading as financial instruments for both domestic and global investors.

SGE Chairman Jiao Jinpu said the launch of the benchmark offers the opportunity to develop bullion trading in China's financial markets and encourage more participation by global investors. Standard Chartered Bank (China) Ltd. and ANZ Bank (China) Ltd. are among 12 fixing members for the benchmark trading. The other ten members are domestic banks. The trading margin is set at 6 percent and transaction fees are exempted until June 30 this year.”
And this is important why? Because of this:
"FDIC Sends 19 Page letter to JP Morgan/CHASE about the Bank Being Unstable";
"Who is Morgan Stanley and Why Its $31 Trillion in Derivatives Should Concern You"
Full articles here:
... And this:
"Gold backed Chinese yuan? Could these meetings of the federal reserve have anything to do with China's planned introduction of a new, gold-backed, YUAN currency next Tuesday, 19 April? Who around the world would want to continue using Dollars, which are backed by nothing, when they could use YUAN which are backed by gold?

What will it mean to the USA if literally trillions in cash from overseas bank reserves come flooding back to the US next week, from countries that no longer need or want our currency? Worse, what happens if all that cash comes back, and then countries decide they won't accept the US Dollar as payment any longer because the US government is Bankrupt? Our $19 Trillion national debt cannot be paid. The world knows it. So why would they want to continue using our currency if they don't have to? How would we conduct international trade? We manufacture almost nothing here in the US anymore; we import pretty much everything. Where would all those goods come from if countries stop taking our currency because it is worthless to them?

These are terrifying questions and the answers right now are elusive. Stay tuned because it seems to us that whatever issue(s) have caused all these expedited, closed-door meetings, will take shape (to the public) rather quickly.”
... And this:
"Emergency Fed meetings at the White House, the launching of new gold trading market at the Shanghai Gold Exchange, revelations Deutsche Bank admitting it manipulated gold and silver prices, China starting its own global payment system. These may all seem unrelated, but according to macroeconomic researcher Rob Kirby, they are all connected. Kirby explains, “With China and their upstart CIPS, which is the China Interbank Payment System, China appears to be on the verge of merging their interbank payment system with SWIFT. My gut is telling me that this will very much marginalize America as the main processor of global payments. This, in my view, will embody very possibly a global reset in terms which currency is going to be the world’s reserve currency. I have a very sneaking suspicion that when China merges with the SWIFT system, I believe there is a very strong possibility that China will back their currency with gold.  I do believe this is why China has aggressively been buying physical gold for the past 10 or 15 years. They have been doing it with a view to dislodging the dollar or greatly diminishing the dollar as the world’s reserve currency. That’s what I think is at play right now.  I think U.S. bankers and regulators have caught wind of this and are aware it is coming. I also believe this is the reason for all the secret meetings they have been having. The Federal Reserve Board met in secret behind closed doors (Monday morning), and they gave us some frivolous reason why they were meeting. The Fed Chairman, that Monday afternoon, walked over to the White House and met with, not just the President, but also the Vice President. The notion that the President and Vice President would be in the same room at the same time tells you this is national security related. If you don’t think the preservation of the dollar as the world’s reserve currency isn’t a national security issue, you better think again.”

Could there be a dramatic and overnight reduction in the value of the dollar? Kirby contends, “I think this is coming in very short order now. The trail of bread crumbs is indicating this is what is afoot right now.”

Does that mean dollar devaluation and a bank “holiday” coming soon? Kirby says, “How quickly this happens is open for conjecture, but that is clearly the direction we are heading. We are unmistakably headed in that direction. The only real question is how long these criminal central bankers can MacGyver the system together and keep it together with elastic bands, paperclips and bungie cords. This is going down. This is going to happen. I think it’s going down in the next two or three weeks. We’ve all speculated that this would eventually happen. Now we are here, and the clock is about to strike midnight.”

What have the President and the VP been told by the Fed Chairman in these emergency meetings this week? Kirby says, “My guess is they are probably explaining to them just how deep the pooh is that they are about to be thrown into. It’s deep, and it’s going to be over their heads. Historically, when banks have nothing else they can do, they take us to war.”

If they don’t take us to war? Kirby says, “Everything is on the table. My thinking is there are an awful lot of U.S. dollars out there right now that are going to be coming home to America. The adjustment in global reserve accounts could create a tsunami of dollars coming back to America in a very, very short period of time. That could trigger something approaching a hyperinflationary event or, at least, stagflation and super inflationary pressure. That’s the minimum occurring very, very soon.”
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The real world's a complicated place. Sosueme...
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