Report: China has Stopped Buying U.S. Treasuries

 

While It’s Not Selling Them, Yet, It Reportedly Stopped Buying Them ‘Several Weeks Ago.’

Despite positive signs that Chinese President Xi Jinping may make a wink-and-nod concession to the U.S. overnight at the Boao Forum, a new report suggests China has already engaged its so-called “nuclear option.” Continue reading

Trade War Game On!

“Things sure are getting exciting again, ain’t they?”  The remark was made by a colleague on Tuesday morning, as we stepped off the elevator to grab a cup of coffee.

“I’ll tell you one thing.  President Trump’s trade war with China won’t end well.  I mean, come on.  China’s outplayed the U.S. at this game for over a quarter century.  They have the upper hand. Continue reading

Report: China’s U.S. Treasuries are ‘Nuclear Option’

 

China’s State-Run Global Times Newspaper Declares Victory In The Trade War.

Reuters reports any effort to reduce its U.S. Treasury portfolio would “inflict significant harm on U.S. finances and global investors, driving bond yields higher and making it more costly to finance the federal government.” But, the report notes, China’s leverage with treasuries is only good for as long as it holds them—suggesting any threat it poses may be empty.

Continue reading

China Reveals Largest Defense Budget In Three Years

 

China’s government has been relatively vocal in transforming itself into a serious threat against the West — by modernizing its military in anticipation of future wars with Washington. It it therefore not surprising when the official Xinhua news agency reports that China will increase its defense budget by 8.1 percent in 2018, up marginally from last year’s 7 percent.

China has undoubtedly given America’s military-industrial complex and clueless politicians in Washington a stern message, by increasing its defense budget to the highest levels in more than three years, even as the country insists it does not mean harm. Continue reading

China’s Holdings of U.S. Debt Down 10%

 

(CNSNews.com) – Chinese holdings of U.S. Treasury securities are 10.0 percent below their peak level which was attained in November 2013, according to data published by the U.S. Treasury.

U.S. government debt held by entities in the People’s Republic of China peaked at $1,316,700,000,000 in November 2013, according to the Treasury. Continue reading

Now, a Trade War — Is a Shooting War Next?

(Shutterstock)

 

A popular thesis since the 1930s is that a natural progression exists from currency wars to trade wars to shooting wars. Both history and analysis support this thesis.

Currency wars do not exist all the time; they arise under certain conditions and persist until there is either systemic reform or systemic collapse. The conditions that give rise to currency wars are too much debt and too little growth.

In those circumstances, countries try to steal growth from trading partners by cheapening their currencies to promote exports and create export-related jobs. Continue reading

EU ignites Trump War: Brussels to slap trade sanctions on Harleys and Jack Daniels

Jack Daniels whiskey/Harley-Davidson mototrbike

Iconic US brands such as Jack Daniels and Harley-Davidson will be targeted by EU trade commissioners [Getty]

 

BRUSSELS is gearing up for a bitter trade war with US and has pledged to fight fire with fire if Washington carries out its threat to introduce import barriers to steel and aluminium products from Europe.

European Union trade officials have warned such a move would result in counter-tarrifs being slapped on exports from the US within days.

They said iconic US products ranging from Harley-Davidson motorcycles to Jack Daniels whiskey would be targeted in any retaliatory strikes and that preparations for such a confrontation were in full swing. Continue reading

Russia Claims to be Ready for SWIFT Cutoff

 

U.S. And Its Allies Are Considering The Move To Ensure Russia Complies To UN Sanctions On North Korea.

Russian Deputy Prime Minister Arkady Dvorkovich reportedly told state-run media his country’s banking system is fully prepared to “survive” if the U.S. and its Western allies cut off access to the Society for Worldwide Interbank Financial Telecommunication. Continue reading

EU goes Head-to-Head with USA in growing currency war – ‘We are Concerned!’

EU USA

Washington and Brussels are locking horns in a dispute over currency, tax and trade [Getty]

 

THE EUROPEAN Central Bank has accused the US of manipulating exchange rates as tensions between Brussels and Washington continue to escalate wildly.

The ECB is concerned the US is attempting to exert “political influence” on exchange rates, with the issue set to explode into outright confrontation at an upcoming G20 meeting.

The eurozone bank said it was “certainly concerned” by perceived attempts to influence the exchange rate in favour of the US dollar.  Continue reading

Iran and Russia Just Revealed How They’ll Upend the Petrodollar

 

Iran and Russia just took a page out of Venezuela’s playbook.

Like Caracas announced on Dec. 4, Moscow and Tehran are looking into cryptocurrencies as a means of upending the U.S. petrodollar’s reign over the global oil market, Cointelegraph reported on Dec. 11.

For its part, crypto’s rise in popularity of late does make for an enticing investment choice, especially with Bitcoin’s 150% surge over the past month. Continue reading

Russia May Turn To Cryptocurrencies For Oil Trade

Putin

 

Russia may be looking to use cryptocurrencies for oil trade to avoid payments in U.S. dollars and limit the impact of the U.S. sanctions, Russia’s government-backed outlet RT reports.

The bitcoin mania—on which the jury is still out whether it will be the biggest bubble in history or a success—could be a “fresh catalyst” for countries that want to ditch the U.S. dollar in oil trade, according to Stephen Brennock, an oil analyst at PVM Oil Associates. Continue reading

De-Dollarization Continues: China, Iran To Eliminate Greenback From Bilateral Trade

 

The more Washington lashes out in anger at those who will not bow to the unipolar world order, the more the rest of the world fights back. As the launch of its Yuan/Gold-settled oil futures loomsChina is escalating its de-dollarization scheme further by seeking a bilateral rial-yuan agreement with Iran.

As a reminder, nothing lasts forever… Continue reading

Russia, China, India Unveil New Gold Trading Network

Deputy Governors of the People’s Bank of China and Bank of Russia sign Memorandum on Gold Trading, Sochi, September 2017. Photo: Bank of Russia

 

One of the most notable events in Russia’s precious metals market calendar is the annual “Russian Bullion Market” conference. Formerly known as the Russian Bullion Awards, this conference, now in its 10th year, took place this year on Friday 24 November in Moscow. Among the speakers lined up, the most notable inclusion was probably Sergey Shvetsov, First Deputy Chairman of Russia’s central bank, the Bank of Russia.

In his speech, Shvetsov provided an update on an important development involving the Russian central bank in the worldwide gold market, and gave further insight into the continued importance of physical gold to the long term economic and strategic interests of the Russian Federation.

Firstly, in his speech Shvetsov confirmed that the BRICS group of countries are now in discussions to establish their own gold trading system. As a reminder, the 5 BRICS countries comprise the Russian Federation, China, India, South Africa and Brazil. Continue reading

Russia Warns of ‘Financial War’ With U.S.

Russia Warns of ‘Financial War’ With U.S.

Russian Finance Minister Anton Siluanov has warned of a possible “financial war” with the U.S. if its central bank assets are frozen or seized as part of economic sanctions.

 

In a sudden and somewhat shocking declaration, Russia’s financial minister has declared that any attempt by the U.S. to seize his country’s gold reserves would be deemed an act of war.

Anton Siluanov was announcing his government’s new budget and how it was crafted with likely U.S. sanctions in mind. Then, he added:

“If our gold and currency reserves can be arrested, even if such a thought exists, it would be financial terrorism.” Continue reading

Russia, China Mull Payment System to Bypass U.S. Sanctions

After signing an agreement with Chinese Premier Li Keqiang on Wednesday, Russian Prime Minister Dmitry Medvedev suggested the two countries consider linking their payment systems in a move that would allow both countries to skirt much of the economic pressure created by U.S. sanctions.

 

In the face of withering sanctions imposed by the U.S., Russia has reached out to China to consider a payment system that allows them to bypass the American banking system, thereby avoiding sanction restrictions. Continue reading