How would you feel if you had planned a gathering of your closest
family and friends and your list of invites grows to include some 185
guests. You also invited your known trouble-making cousin. Your cousin
shows up drunk, armed and belligerent. He begins harassing a good
portion of the guests, smashes some of your prized possessions and then,
as an added bonus, he shoots and kills 12 of your guests.
As your cousin is leaving the gathering, he takes your wallet and your
wife’s purse. He also goes in your bedroom, opens your safe and removes
all your gold and silver. Your cousin now has all your credit and debit
cards and all the cash you had on hand. You can not conduct business in
any manner. You can’t even pay the caterer for their services.
If this sounds like a horrific story, you’re right - it is. The
drunken cousin is a metaphor for how the U.S. has been acting for the
past several years and how it has treated countries around the world. Do
you suppose some of these nations are more than a little tired of being
treated in this manner? Do you suppose that instead of acting as this
oppressive “cousin” acts that some of these countries would find it
better to simply develop a way to leave the “gathering” in a peaceful
manner and get on with their own business?
As we reported on March 30
China and Russia are taking steps to move away from their out of
control “cousin”, the Federal Reserve Note, U.S. dollar, world reserve
We learned in March 2016 that Kazakistan had been in formal talks with the Shanghai Gold Exchange
regarding gold as currency along the New Silk Road (One Belt One Road)
spearheaded by China. Kazakistan also smelts most of Russia’s gold and
mines a small amount gold annually and is a member of both the Shanghai
Cooperation Organization (SCO) and Eurasia Economic Union (EEU).
Then, in October of 2016 we continued covering how China had been working directly with the IMF to get the yuan/renminbi currency added to the SDR basket
of currencies for global trade. That now appears to be a cover story
for what lay ahead. With the renminbi now a global currency that changes
how the renminbi functions within the currency markets and in global
For the better part of the past year it has seemed as if the
mainstream media, with talking points from the federal government, had
been 100% obsessed with “Russia did it!!” “It” could be anything as the
story has morphed so many times it’s hard to keep track. The “it” is not
near as important as the cheerleading by the MSM to remind the public
Russia is to blame!
The Russian obsession has, for the past several months, been running
along side a new “enemy” – China. China and the South China Sea has been
another point of beating war drums for the mainstream media. We now
have two new enemies outside of Syrian President Assad, Iran, Iraq,
Libya and whoever else we feel we need to bully. The whole list of
enemies continues to grow even though there are exactly zero threats to
the U.S. from any of these countries.
China began working their CIPS system, global trade settlement
system, in October 2016, the same time the renminbi joined the SDR
basket, allowing China to conduct global trade outside the U.S. owned
and operated SWIFT system. Both systems are used to settle global trade
transactions and the SWIFT system has been geared to the Federal Reserve
Note – U.S. dollar – while the CIPS system is geared to the Chinese
China International Payment System (CIPS) was launched
last October  and is now entering into the second phase of its
implementation. Phase Two will allow for a further widening of the
trading band between the RMB and USD, which will in turn give the
Federal Reserve additional room to raise rates. I predicted almost two
years ago that CIPS would not overthrow or compete with the USD
dominated SWIFT. I suggested that both platforms would share a base
code and would work together to transform the monetary framework. That
is exactly what is happening.
China strategically stated their gold reserves for the first time in 6
years in the lead up to the SDR announcement last year. This exact
strategic announcement by China was predicted here on POM.
Enter Russia and their global trade settlement system based in
Russian rubbles. It is not quiet ready for prime time, but not to worry,
they are working around the clock to put the final pieces in place.
Within the past two weeks Russia announced to the world where the system
is, specifically, along with what is already in place.
“There were threats that we can be disconnected from
SWIFT. We have finished working on our own payment system, and if
something happens, all operations in SWIFT format will work inside the
country. We have created an alternative,”
Nabiullina said at a meeting with President Vladimir Putin on Wednesday.
She also added that 90 percent of ATMs in Russia are ready to accept
the Mir payment system, a domestic version of Visa and MasterCard.
The picture should be getting a little clearer as to why Russia and,
now China, has become the absolute “enemy” and must made into a monster
by the mainstream media who are utilizing the warmongers talking points
coming out of the back hallways of the federal government. Odds are the
people occupying the back hallways of the Federal Reserve are also
providing guidance to the mainstream media in just how to keep the
“Russian enemy” in front of the American people. If it’s not about the
reserve currency, Federal Reserve Note, U.S. dollar, then explain this:
One of the most significant measures under consideration is the previously reported push for joint organization of trade in gold.
In recent years, China and Russia have been the world’s most active
buyers of the precious metal. On a visit to China last year, the deputy
head of the Russian Central Bank Sergey Shvetsov said that the two
countries want to facilitate more transactions in gold between the two
“We discussed the question of trade in gold. BRICS countries
are large economies with large reserves of gold and an impressive volume
of production and consumption of this precious me
tal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets,” First Deputy Governor of the Russian Central Bank Sergey Shvetsov told Russia’s TASS news agency. Source
Let’s take a look at the next step. Now that Russia and China have
systems to conduct global trade outside of the Federal Reserve Note,
U.S. dollar, both nations can make decisions that benefit their
countries, and benefit their business interest, without fear their
currencies will be disabled like what happened to
Iran in March 2012.
Iran was only reconnected to the SWIFT system in February 2017. Having
another nation control your currency is a can be devastating. Iran
learned the hard way and both Russia and China now have the capability
to keep all currencies functioning both internally and globally, outside
the SWIFT, U.S. dollar system.
Just last week we learned the BRICS nations are discussing the development of a “gold marketplace”.
Future plans to facilitate transactions between Moscow and Beijing in gold would certainly explain why the two countries are leading gold producers and buyers.
Creating a BRICS “gold marketplace” would be an excellent way of
bypassing the dollar while also using a “currency” that could be easily
recycled for trade with other member nations.
And while trading in gold won’t happen overnight, BRICS states have
already moved towards creating a “new financial architecture” that
“tackles the dominance of the U.S. dollar in global finance”:
The initiatives taken by the member nations of BRICs
(Brazil, Russia, India, China, and South Africa) to set up a new
financial architecture at its eighth summit held in October 2016 in
India have recently been under the spotlight. In order to avoid the
International Monetary Fund (IMF) type of loan conditionalities and
tackle the dominance of the United States (US) dollar in global finance,
the new institutions set up by the BRICs are expected to provide a much
needed change in the global financial architecture. These institutions
include the New Development Bank (NDB), the BRICS-led Contingency
Reserve Fund (CRF), and the Asian Infrastructure Investment Bank (AIIB).
The Federal Reserve Note, U.S. dollar, has enjoyed a good long run as
the world reserve currency. The Federal Reserve, their member banks and
the U.S. federal government have stolen from nations around the world,
185 in total. The Federal Reserve, through the world reserve currency
status, has been able to push inflation out of the U.S. economy and onto
other nations. China and Russia, along with the member nations of the
SCO, EEU and BRICS are in the final stages of moving completely away
from the Federal Reserve Note, which is quickly becoming useless on the
China is already using a gold currency. $14.5 Million worth of gold
currency was used in transactions during the 2017 Chinese Lunar New Year
across the “we chat” platform. This is not a gold backed currency, this
is a gold currency.
While these nations continue acquiring ton upon ton of gold the U.S.
continues to acquire billions upon billions in debt. Which scenario is
more sustainable? As these nations continue to build out their trading
systems, to circumvent the world reserve currency, how will the U.S.
contend with this new reality? The U.S. government is currently acting
like the drunken cousin described above.
Why would BRICS nations, who are responsible for a significant portion of global GDP,
continue to accept how the U.S. has treated them? The belligerence
coming out of the White House and Pentagon, by way of NATO, has created a
global divid. The U.S. is broke and can not pay back the owed debt. We
can only bully other nations, steal their gold and bomb those that do
not fall into line. Russia and China are large enough, wealthy enough
and strong enough, militarily, to stand up to the U.S. They have been
quietly going about their business – conducting business – while the
U.S. has continually conducted war with anyone and everyone. The U.S.
has now set it’s sights on these two power house nations. These nations
are not Syria, Libya, Iraq or any of the other tiny nations these
warmongers have bullied. This time it will be different and the golden
rule still applies – he who has the gold makes the rules. China and
Russia have the gold, the U.S. has debt.
Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700 articles and produced more than 200 videos about the precious metals market, economic and monetary policies as well as geopolitical events since 1987. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory has contributed daily to SGTReport since 2012. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Visit The Daily Coin website and The Daily Coin YouTube channels to enjoy original and some of the best economic, precious metals, geopolitical and preparedness news from around the world.
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