Monday, February 17, 2014

Meanwhile China keeps moving forward

Things seem kind of stalemated at the IMF. The G20 will be meeting, but right now nothing significant seems likely to happen there. If you are China and nothing is happening to improve your position within the international monetary system, what do you do?

I guess you keep working on bypassing the US dollar and keep buying gold in record amounts. In January another 240+ tons headed into China through the Shanghai Exchange.That is more than the entire monthly world gold production.

If you follow the posts on this blog you can tie all these events together easier than trying to make sense of them as isolated news articles. 

Let's recap:

The BRIC/emerging nations led by China feel the US is using its dollar reserve currency advantage unfairly. They want more say at the IMF, but that is going nowhere right now.

Meanwhile China just keeps moving along building a pathway around the IMF-US FED- US Dollar monopoly. They are buying hard assets all over the world using US bonds as collateral. They are making trade deals all over the world bypassing the dollar with the Yuan. They regularly call for a new global reserve currency (but not the yuan). They recently bought the Chase Bank building in New York. Today a Chinese firm buys a Texas oil and gas company.

It seems like they aren't as stuck with US bonds as some people would like to think.

It sure seems like they have a Plan B if they cannot get what they want at the IMF.

We'll keep an eye on it. 


  1. This might be relevant Larry:"...According to a report from Lombard Street Research, China’s authorities may possibly be moving in the direction of using gold in a plan to make the yuan an international currency..."

  2. And you will have seen this [KWN]: "...The latest news is that in Australia, their stock exchange is now dealing with yuan. So the Australians are giving the Chinese more of a presence to help assist with making the yuan part of a global reserve currency..." Celente

  3. Thank you for both comments and the article link! All extra eyes are appreciated.