Jim Rogers Warns “If Trump Starts A Trade War With China, It Will End US Hegemony”

This is exactly what Global Geopolitics mentioned just a five days ago. The tables have turned on the global playing field and the traditional options once thought to be useful to use against China will now backfire. America will now have to get more creative to once again get ahead in controlling the narrative when it comes to using leverage against its adversaries.

Adding to this, China is likely waiting for such a move to happen, which will benefit the nation in numerous ways:

  • China is a master in state propaganda, will successfully claim it’s the victim of a U.S. economic attack and rally support throughout the nation.
  • China, through provocation, will have produced a reason to retaliate. The trade war begins.
  • Retaliation will be successful due to the weakening of the U.S. positions and strengthening of Chinese leverage. World-wide, this will cause people and nations to question America’s ability to act and standing as the lone global superpower. If the Dollar goes down, the U.S. goes down with it.

 

 

Following Treasury Secretary Mnuchin’s threat that the US could impose economic sanctions on China if it does not implement the new sanctions regime against North Korea:

“If China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the US and international dollar system, and that’s quite meaningful.”

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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 New Gold-Backed Oil Benchmark to Deal Blow to U.S. Dollar

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New financial instrument gives oil-exporting nations their long-sought alternative to the petrodollar.

China will soon introduce a crude oil futures contract denominated in yuan and convertible into gold, the Nikkei Asian Review reported on September 1. Analysts say that since China is the world’s largest oil importer, the move could deal a major blow to the global influence of the United States dollar.

The contract would allow oil exporting nations such as Russia, Iran and Venezuela to conduct sales in yuan, instead of in U.S. dollars, and to then change the yuan into gold on both the Hong Kong and Shanghai exchanges. This would also allow these countries that often fall afoul of American foreign policy to circumvent dollar-based U.S. sanctions.

The Chinese government has been developing the gold-backed futures contract for years, and Oilprice.com reports that it is expected to launch this year. It will be China’s first commodities futures contract available to foreign entities, and analysts expect many oil-exporting nations and firms to find it appealing. Continue reading

America’s Weapons: “The Dollar and the Drone”

 

It was said that “the guinea and the gallows” were the true instruments of British imperial power.

The guinea represented the coined wealth of Great Britain.

The gallows represented its… constabulary zeal in policing restless natives.

This is the 21st century of course… a time of enlightenment.

Today’s instruments of imperial power are no longer the guinea and the gallows.

No. Today’s instruments of imperial power are “the dollar and the drone.” Continue reading

China’s Red October

China’s Red October

 

The 19th National Congress of the Communist Party of China, CCP, will be held in the fall of 2017. The exact date has not yet been announced, but late October is a reasonable estimate. This will be the most important CCP meeting since the death of Mao Zedong and the rise of Deng Xiaoping in the late 1970s.

Communist societies such as China have a dual or parallel government structure. On one side is a normal government with a president, vice premier, cabinet ministers and other subordinate posts. On the other side is the CCP leadership consisting of a General Secretary, Politburo Standing Committee, Politburo, and Central Committee.

The seven-member Politburo Standing Committee runs the CCP. The General Secretary is the single most powerful person in the leadership. The conventional government is controlled by the CCP, which holds the real power.

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China Seeking to Succeed Where Japan Failed in Yuan Global Push

As China’s yuan takes the first steps toward becoming a global reserve currency, Japan offers a lesson on how hard it is to rival the dollar’s supremacy.

The Japanese yen’s share of global reserves reached a record 8.5 percent in 1991 as the nation’s post-War industrial boom made its economy the world’s second-largest. But its economic decline soon resulted in its clout shrinking as the euro gained ground and the greenback re-asserted its dominance. While the yen is still ranked third for trading and fourth for payments, it now accounts for just 4 percent of world reserves, compared with the dollar’s 64 percent and the yuan’s 1 percent. Continue reading

China’s Entrance Into SDR Basket Shifts Global Finance

Remember the renminbi billboard sighting in China back in March of 2015? Well, it has officially landed.

On Monday, October 3rd, 2016, a turning point for America begins: The beginning of the end for the global U.S. Dollar hegemony.

 

China’s yuan, or Renminbi (RMB), will officially join the International Monetary Fund (IMF)’s Special Drawing Rights (SDR) basket on Saturday, which indicates a step up in the international status of the currency.

  • The inclusion is first and foremost recognition of the substantial reform efforts conducted by Chinese monetary authorities.
  • “The RMB is already, for a number of years, very much an international currency.
  • China has also taken additional measures to allow the inclusion of RMBinto the SDR,” said Jurgen Conrad, head of the Economics Unit at the Asian Development Bank in China.
  • Alfred Schipke, the chief China representative of the IMF, thinks that the move’s significance isn’t limited only to the country.
  • “[I think] the RMB joining the SDR will indeed be a milestone for China, but also for the international financial system. It, in effect, recognizes the progress that has been made on the reform side in China over the past couple of years,” said Schipke. Continue reading

China’s Ambitious Plan to Make the Yuan the World’s Go-To Currency

China’s long-held desire to provide an alternative to the U.S. dollar will get a boost on October 1, when the yuan enters the International Monetary Fund’s basket of reserve currencies, placing it alongside the pound, euro, yen and dollar. The yuan’s ascent is a validation of the importance of the world’s second-biggest economy and the work policy makers have done to allow freer access to the nation’s markets.

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Poland first in Europe to issue RMB debt in China

Poland has become the first European country to issue government debt into China’s mainland bond market, with a bond of 3 billion yuan ($452 million), marking a significant milestone for renminbi’s growing use internationally, which builds towards its reserve currency status. Continue reading

China Dumping More Than Treasuries as U.S. Stocks Join Fire Sale

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For the past year, Chinese selling of Treasuries has vexed investors and served as a gauge of the health of the world’s second-largest economy.

The People’s Bank of China, owner of the world’s biggest foreign-exchange reserves, burnt through 20 percent of its war chest since 2014, dumping about $250 billion of U.S. government debt and using the funds to support the yuan and stem capital outflows.

While China’s sales of Treasuries have slowed, its holdings of U.S. equities are now showing steep declines. Continue reading

Currency War? China Devaluates Yuan in Response to Western Rating Agencies

Analysts pointed out several factors that have driven the yuan down. One of the most important among them is strengthening the dollar on expectations of a referendum of Britain leaving the European Union. The vote will take place on June 23.

Some analysts see the recent step to devaluate the yuan as part of its correction ahead of the possible interest rate hike by the US Federal Reserve.

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World Currency Profit Game Plan – Phase 1

Recently, I told you I was working on a special world currency report, with profit recommendations for a large basket of currencies.

The simplest way to do this is to start with the Big Five. These major currencies serve as the “drivers” for the minor ones. In my upcoming Part 2, I’ll tell you which of the minor currencies (like the Aussie dollar or the Swiss franc) are tied to which of the major ones, how that impacts their direction, and how you can profit.

Right now, we’ll start with profit recommendations for the five major currencies that drive all the rest. Continue reading

Currency War Resumes – China Devalues Yuan To 5-Year Lows

After a brief hiatus from the ongoing currency wars, China fired another salvo at The Fed tonight by devaluing the Yuan fix to 6.5693 – its weakest against the USD since March 2011. After eight days higher in a row for The USD Index, it seems PBOC has turned its currency liberalization plan off, stabilizing the broad Renminbi basket (which has been steadily devalued) and turning its attention to devaluing against the USD. Having unleashed turmoil in August (pre-Sept FOMC) and January (post Dec rate-hike), it appears the rising rate-hike probabilities jawboned by The Fed are decidedly disagreeable to “authoritative persons” in China. Continue reading

SWIFT Attacks in the Global Economic War

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Recent headlines confirm that the SWIFT (Society for Worldwide Interbank Financial Communication) has suffered multiple cyber attacks. SWIFT is a privately run Belgium-based provider of financial messaging, considered essential to move money around the world. The system is so important that to be denied access to it is essentially to be cut off financially from the rest of the world. That is what happened to Iran in 2012 in conjunction with sanctions and the pain was severe. Many believe that regaining access to SWIFT was the Iranians top priority in negotiations.

It is important to understand that SWIFT is not, at least not directly, controlled by the United States. Rather, it is governed by a multi-nation board. Still, it is viewed to be part of the United States-led global financial community. American sanctions carry tremendous weight. Continue reading

Chinese nationals top foreign buyers of US homes

Chinese nationals bought more than $110 billion worth of both residential and commercial real estate over the past five years. Last year’s surge in purchases moved them past Canadians, to become the largest group of foreign buyers of US homes, according to a study from the Asia Society and Rosen Consulting Group.

Over the past five years, the desire of Chinese nationals to find safe offshore assets helped the US real estate market recover from the 2008 economic crisis. Continue reading