Russia De-Dollarizes Deeper: Shifts $100 Billion To Yuan, Yen, And Euro

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Russia is continuing to ramp up its efforts to move away from the American dollar.  The country just shifted $100 billion of its reserves to the yuan, the yen, and the euro in their ongoing effort to ditch the dollar.

The Central Bank of Russia has moved further away from its reliance on the United States dollar and has axed its share in the country’s foreign reserves to a historic low, transferring about $100 billion into euro, Japanese yen, and Chinese yuan according to a report by RTThe share of the U.S. dollar in Russia’s international reserves portfolio has dramatically decreased in just three months between March and June 2018.  The holding decreased from 43.7 percent to a new low of 21.9 percent, according to the Central Bank’s latest quarterly report, which is issued with a six-month lag. Continue reading

America Frozen Out of World Trade

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Yet another trade agreement excludes the U.S.

A new trade agreement that covers more than 13 percent of the world economy, accounting for 15 percent of global trade, was ratified by its first six countries on December 30. The Progressive Agreement for Trans-Pacific Partnership (cptpp) will cover 500 million people.

Australia, Canada, Japan, Mexico, New Zealand and Singapore will be joined by another four countries that have already signed but not yet ratified the agreement. Vietnam joins on January 14, while Brunei, Chile, Malaysia and Peru will join the deal 60 days after completing the ratification process. Continue reading

Merkel mauled by AfD Leader, told not to punish Brexit Britain

 

Angela Merkel has been put back into her box in a big way by the leader of Germany’s second most popular party, the AfD.

Alice Weidel slammed Merkel’s approach to Brexit, saying Germany shouldn’t be punishing Brexit Britain, saying the EU is afraid other countries will leave now they’ve seen Project Fear predictions were wrong. Continue reading

Oil Rich Venezuela Stops Accepting Dollars

Source: The Burning Platform

 

  • President Maduro ‘ Venezuela will create a basket of currencies to free us from the dollar,”
  • Oil traders ordered to stop accepting U.S. dollar in exchange for crude oil
  • Order comes following calls from Russia and China to find alternatives to current reserve system
  • U.S. Dollar accounts for two-thirds of global trade
  • Venezuela has over ten-times more oil than United States
  • Super powers are gradually turning to gold to avoid using world’s main reserve currency
  • Are we seeing the beginning of the end for the U.S. dollar?

The oil-rich country of Venezuela has stopped accepting the U.S. Dollar as payment for oil.

Last week President Maduro warned that the country would this week ‘free’ itself from the US dollar. Continue reading

China’s Robot Revolution May Affect the Global Economy

 

Automation impact on wages isn’t showing in the data – yet

China is installing more robots than any other nation, and that may affect every other nation.

Shipments jumped 27 percent to about 90,000 units last year, a single-country record and almost a third of the global total, and will nearly double to 160,000 in 2019, the International Federation of Robotics estimates. Continue reading

IRGC Deputy Commander Salami to the U.S.: A War in the Persian Gulf Will Not Be Limited to the Region and It Will Be Impossible To Control Its Escalation

Please see the source for the video.

 

IRGC Deputy Commander Hossein Salami warned the U.S. that a war in the Persian Gulf would threaten the security of the energy routes and would jeopardize global trade in the region. This would have a “political domino effect,” said Salami, “gobbling up” the regimes in the Middle East that are dependent upon America. Salami, who was speaking in an interview on Iranian TV’s Channel 1 on August 12, further said that the U.S. is avoiding war because of its consequences and is responding to Iranian vessels in the Gulf with panic. Salami mocked the American talk about inspection of Iranian military facilities, saying that this is “one wish that will be taken by its bearers to the grave.” Iran, he said, has so many missiles that they have no space to store them. Continue reading

Latin America: Front Line of Trade War

Caption: Demonstrators during a protest rally against Mexican President Enrique Peña Nieto meeting with President Donald Trump, in Mexico City on September 15, 2016. (ALFREDO ESTRELLA/AFP/Getty Images)

 

America’s new protectionism is forcing Latin America to seek new partners.

America’s influence in Latin America is decreasing, while the influence of other world powers in the region is growing. If it continues, this trend could destroy America.

Dominance of the Caribbean basin is integral to America’s safety and essential to its ability to project power globally. If a rival power were able to establish a significant presence in the Caribbean, it could threaten the American heartland. The Caribbean is also key to United States’ trade. The majority of all U.S. waterborne foreign trade travels to or from U.S. ports on the Gulf of Mexico. When you include goods traveling through the region from other ports, no other part of the world is more essential to America’s trade.

This is why more Americans ought to be concerned that foreign powers are rapidly moving into the Caribbean, as well into South America itself. Continue reading

The Chinese Economic Offensive in Europe

 

Where the largest population in the world has set its sights

Englishmen: Did you know the Chinese now control House of Fraser? Italians: Did you know the Chinese now own Pirelli? Swedes: Did you know the Chinese now own Volvo?

Depending on how old you are, you’ll likely be either embracing or resisting the Chinese economic offensive into Europe. But if you’d been a Greek youth struggling with 50 percent unemployment in the eurozone crisis, you would have been loving the extra Chinese foreign investment.

China has been looking to break into Europe for decades; in the last five years, its efforts have finally paid off. From 2010 to 2014, Chinese investments in Europe went from $6 billion to $55 billion. And remember, that huge increase happened as China’s economy had been comparatively slowing down.

Continue reading

Trade With Japan Collapses: Exports Decline 7th Month, Imports Plunge Most Since 2009

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Abenomics was back in the spotlight tonight. Global trade with Japan has collapsed. Exports are down and imports are down even more. The result is an unexpected rise in Japan’s trade surplus, yet another failure of abenomics.

The Markit Japanese PMI shows Output falls at fastest rate in over two years, underpinned by a sharp
drop in new orders. Continue reading

Japanese submarine, destroyers arrive in Philippines for port call near disputed South China Sea waters

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The Maritime Self-Defense Force training submarine Oyashio, escorted by the destroyer Ariake (background), one of two vessels that accompanied the sub, arrives at Subic Bay in the Philippines on Sunday. | AFP-JIJI

 

A Maritime Self-Defense Force flotilla of three ships arrived in the Philippines early Sunday on a goodwill visit — the first to include a Japanese submarine in 15 years — amid China’s growing assertiveness in the region.

The training submarine Oyashio, accompanied by the destroyers Ariake and Setogiri, made a port call at Subic Bay, home of a former U.S. naval base, ahead of planned open sea drills. Some 500 Japanese personnel, including 55 officer candidates, are taking part in the confidence-building exercise. Continue reading

Lowest Ever: The Baltic Dry Index Plunges To 394 As Global Trade Grinds To A Standstill

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For the first time ever, the Baltic Dry Index has fallen under 400.  As I write this article, it is sitting at 394.  To be honest, I never even imagined that it could go this low.  Back in early August, the Baltic Dry Index was sitting at 1,222, and since then it has been on a steady decline.  Of course the Baltic Dry Index crashed hard just before the great stock market crash of 2008 too, but at this point it is already lower than it was during that entire crisis.  This is just more evidence that global trade is grinding to a halt and that 2016 is going to be a “cataclysmic year” for the global economy. Continue reading

We Have Hit Keynesian Nirvana: A Third Of All Containers Shipped From Long Beach Port Are Empty

In the past several months, it has been virtually impossible to make any sense of the conflicting trends involving US and global trade. On one hand, there is global trade, which as we have covered since the spring, has been in a state of consistent decline. Some example of this:

Where things get more complicated, however, is when looking at the US. Here, macro data throughout the summer had suggested more or less smooth sailing in the trade space, and it was only a week ago that the facade started to crack, following the ugly advance trade report, when as we reported there was a “16% Surge In August Trade Deficit; Imports Jump As Exports Drop.” Continue reading

Three obvious signs the entire system is changing

I remember watching Ronald Regan on TV when he told Mikhail Gorbachev, and the entire world to ‘tear down this wall’ from West Berlin.And within a few years it happened. The Soviet Union collapsed, leaving the United States as the victor in the Cold War.

US geopolitical, economic, financial, and military power was completely unchallenged. And it would remain that way for years.

Now it’s a completely different story. The entire system is changing.

Continue reading

Currency War: Dragging the World Toward World War III

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Echoes of 1934 are thundering with increasing intensity.

In 1934, United States President Franklin Delano Roosevelt outlawed the private ownership of gold. After confiscating billions in bullion, Roosevelt shocked the world by revaluing it. The cost for an ounce of gold, previously set at $20.67, was suddenly $35. Overnight, Roosevelt devalued the dollar by 69 percent.

The president told the country that it was a radical effort to stimulate America’s economy. A cheaper dollar would make America’s exports less expensive and help American companies sell more products to the rest of the world, he said. More money would flow into America, and more jobs would be created.

It did those things. And it also marched the world another giant step closer to war. Continue reading