Preparing For A Reset Of The World’s Reserve Currency

The eventual death of the U.S. Dollar is a given and not up for debate. This will, however,  sound alien and come as a shock to most living in the west who continue to go on living while turning a blind eye to current events.

Willem Middelkoop and Terence van der Hout of the Netherlands-based Commodity Discovery Fund believe that when the world’s reserve currency is reset away from the U.S. dollar in the next decade, gold prices will rise and mining equities will follow. Van der Hout and Middelkoop tell The Gold Report that by focusing on producers, near-producers ,and turnaround stories, they plan to capitalize on the opportunities in North America, Africa and beyond.

The Gold Report: Willem, your first book predicted the collapse of the global financial system a year before the 2008 fall of Lehman Bros. In your new book “The Big Reset: War on Gold and the Financial Endgame,” you’re predicting the demise of the dollar as the reserve currency by 2020. You said it can occur as a carefully planned event or as the result of a crisis. What would these two scenarios look like?

Willem Middelkoop: Authorities always prefer to act within a well-planned scenario. The U.S. and the International Monetary Fund (IMF) understand that the U.S. dollar has to be replaced one day. It could be 2020. It could be 2018. It could be 2023. It has to be replaced by another anchor to support the worldwide monetary system. Continue reading

Is the West Finally Waking up to Reality? Is it Too Late?

When we first started writing this Blog in 2011, few ever considered economic warfare. When we pointed out Vladimir Putin’s threats against the dollar, few paid attention. When we explained the risk of EMP, few cared to listen. When we stated that World War 3 could be around the corner, few understood. But, over the past weeks we have seen a slow recognition of these realities. The unfortunate thing is that this recognition is only beginning. And the threat is escalating quickly.

Here are some of the headlines and excerpts from four critical articles over the past week. The first from Ambrose Evans-Pritchard explains the reality of economic warfare:

US financial showdown with Russia is more dangerous than it looks, for both sides Continue reading

Time for an EU energy union, says Polish PM

BRUSSELS - The European Union must create an energy union to secure its supply and reduce its dependence on Russian gas, Poland’s Prime Minister Donald Tusk has said.

Tusk’s energy blueprint, set out in an article in the Financial Times on Tuesday (22 April), would establish a single European body that would buy gas for the whole 28-nation bloc. This would end a system that currently sees the different countries negotiate their own deal with energy giant Gazprom, the government-backed firm which dominates Russia’s gas market.

Meanwhile, “solidarity mechanisms” between EU countries would kick into action if countries were threatened with being cut off from gas supplies. Continue reading

Obama Calls for Highest Sustained Taxation in U.S. History

(CNSNews.com) – In the budget proposal he presented to Congress last month, President Barack Obama called for what would be the highest level of sustained taxation ever imposed on the American people, according to the analysis published last week by the Congressional Budget Office.

Under Obama’s proposal, taxes would rise from 17.6 percent of Gross Domestic Product in 2014 to 19.2 percent in 2024. During the ten years from 2015 to 2024, federal taxation would average 18.7 percent GDP.

America has never been subjected to a ten-year stretch of taxation at that level. Continue reading

China allows gold imports via Beijing, sources say, amid reserves buying talk

(Reuters) – China has begun allowing gold imports through its capital Beijing, sources familiar with the matter said, in a move that would help keep purchases by the world’s top bullion buyer discreet at a time when it might be boosting official reserves.

The opening of a third import point after Shenzhen and Shanghai could also threaten Hong Kong’s pole position in China’s gold trade, as the mainland can get more of the metal it wants directly rather than through a route that discloses how much it is buying.

China does not release any trade data on gold. The only way bullion markets can get a sense of Chinese purchases is from the monthly release of export data by Hong Kong, which last year supplied $53 billion worth of gold to the mainland.

“We have already started shipping material in directly to Beijing,” said an industry source, who did not want to be named because he was not authorised to speak to the media. The quantities brought in so far are small, as imports via Beijing have only been allowed since the first quarter of this year, sources said. Continue reading

Putin Ignores Sanctions, Cuts Deals with Beijing

WASHINGTON – Russian President Vladimir Putin intends to respond to Western sanctions triggered by his country’s participation in the Ukrainian crisis by dramatically expanding bilateral trade with China, particularly in providing energy to fuel China’s fast-growing economy, according to Joseph Farah’s G2 Bulletin.

Moscow and Beijing have developed closer bilateral ties as relations between Russia and the European Union worsen. Russian Prime Minister Dmitry Medvedev has said cooperation with Beijing is a top priority for Moscow.

“It is the rise of the Eurasia century,” one Asian source said. “Moscow and Beijing’s interests are converging.” Continue reading

This Means War: US To Target Putin’s Personal $40 Billion Stash

While the White House has continually threatened further sanctions against Russia for non-de-escalation (even as it un-de-escalates itself), the specifics of the additional sanctions have been sparse. German CEO warnings over blowback from economic sanctions… the “nonsense” of replacing Russian gas with US gas… the Russian warnings of “interdependence” and “boomerangs”… all reduce the West’s arsenal of financial sanctions. But, as The Times of London reports, perhaps the US has found a crucial pain point for Putin – a sanctions regime that would target Putin’s personal wealth, which includes a reported $40 billion stashed in Swiss bank accounts. Continue reading

BRICS countries to set up their own IMF

Very soon, the IMF will cease to be the world’s only organization capable of rendering international financial assistance. The BRICS countries are setting up alternative institutions, including a currency reserve pool and a development bank.

The BRICS countries (Brazil, Russia, India, China and South Africa) have made significant progress in setting up structures that would serve as an alternative to the International Monetary Fund and the World Bank, which are dominated by the U.S. and the EU. A currency reserve pool, as a replacement for the IMF, and a BRICS development bank, as a replacement for the World Bank, will begin operating as soon as in 2015, Russian Ambassador at Large Vadim Lukov has said.

Continue reading

U.S. warns Beijing over currency weakness

The Obama administration on Tuesday told Beijing it was watching the value of China’s currency closely, expressing concern over its recent drop and saying it remains “significantly undervalued.” Continue reading

Beijing set to seal Russian natural gas deal amid Ukraine crisis

Beijing’s refusal to stand against Moscow over the crisis in Ukraine could result in a lucrative natural gas deal with Russia next month, reports the Hong Kong-based Ta Kung Pao.

Following more than a decade of false starts, sources say Chinese president Xi Jinping and his Russian counterpart Vladimir Putin will make a final decision next month on the multibillion dollar deal that will see Russia supply pipeline gas to China for 30 years. The deal is expected to come into effect by the end of the year. Continue reading

Russian oil firm says Asian buyers willing to use euros

(Reuters) – Russian state-controlled oil producer Gazprom Neft said it had received positive responses from Asian clients about the possibility of using euros as a settlement currency instead of the dollar.

Company head Alexander Dyukov said this week Gazprom Neft had broached the idea of dropping the dollar, traditionally the currency of choice for the global energy sector, in response to a possible new round of Western sanctions over Russia’s annexation of Crimea. Continue reading

China ‘has more gold than official figures show’

In other words, they could be getting ready to pull the plug.

China could be holding even more gold than previously realised, according to Alasdair Macleod, a researcher at online precious metals trader,GoldMoney.

Official figures from China Gold Association (CGA) show that the Asian superpower consumed 1,176 tonnes of gold in 2013, 41pc higher than in 2012.

However, about 500 tonnes of gold from Chinese mines and scrap is unaccounted for by the CGA.

Mr Macleod believes the country holds more gold that the stated figures suggest, and in fact consumed 4,843 tonnes in 2013 alone. He raised his estimate after researching Chinese Gold Reports, where he said he found details of the amount of gold vaulted.

Continue reading