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Full Version: CHINA SAYS "NO DOLLARS" FOR NEW YUAN
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In a shocking move likely to crush the US economy overnight, China is refusing to make its new gold-backed Yuan, convertible from or to US Dollars. The new Yuan will be introduced next Tuesday, April 19.

When the International Monetary Fund (IMF) agreed to add the Yuan to the basket of world currencies used for Global Reserves and International Trade, they wanted China to make the Yuan more reliable as a currency. Since then, China has almost un-pegged its Yuan from the Dollar, allowing its value to fluctuate on world markets.

But for years, China has been amassing huge amounts of gold bullion; some have said their appetite for bullion has been "staggering." And with a new gold-backed Yuan to be issued next Tuesday, the entire world will have a choice of a new currency to use for international trade: The old US Dollar which is backed by nothing, or the new Chinese Yuan, which is backed by gold. Which currency would YOU use?

When this new currency is issued, countries that have been forced to use US Dollars for decades, and have had to keep billions of dollars in their foreign currency reserves, will be free to dump those dollars. But they won't be able to dump them to China for the new gold-backed, Yuan!

China has reportedly decided "there can be no conversion of gold-backed Yuan to or from US dollars." What China fears is that many countries around the world will want to trade their reserve US dollars for the new Yuan, leaving China with mountains of worthless US dollars. China already has several trillion in US dollar reserves and does not want or need more.

If news of this decision by China is correct, then countries around the world may just have to decide whether or not they wish to continue trading with the USA at all?

The upheaval this could cause as early as next week, would be staggering.

https://www.superstation95.com/index.php/world/1152

http://atimes.com/2016/04/china-announce...benchmark/

China hopes to knock off the gold pricing dominance of London and New York and become the price-setter for gold with the launch its new yuan-denominated gold benchmark April 19.

shanghai_gold_exchange_markfooterAs the world’s top producer, importer and consumer of gold, China has baulked at having to depend on a dollar price in international transactions, and believes its market weight should entitle it to set the price of gold, reported Reuters.

The Chinese benchmark price will be derived from a 1 kg-contract to be traded by the 18 members on the Shanghai Gold Exchange (SGE), which will act as the central counter party.

The 18 members of the group setting the price for the precious metal include China’s big four state-owned banks, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank, the SGE said in a statement on its website.

On Wednesday, Standard Chartered and ANZ were announced to be part of the team.

The other members of the group include Bank of Communications, Shanghai Pudong Development Bank, China Minsheng Banking, Industrial Bank, Ping An Bank, Shanghai Bank, Bank of China (Hong Kong), retailers Chow Tai Fook and Lao Feng Xiang, Swiss trading house MKS, Chinese miners China National Gold Group and Shandong Gold Group, according to SGE said.

The benchmark price will be set twice a day based on a few minutes of trading in each session, and will be quoted in yuan per gram,

China needs support from foreign banks to turn the new price into an international benchmark, but it has struggled to get them to sign on. In January, Reuters reported that China had warned foreign banks it could curb their operations in the domestic market if they refuse to participate in the benchmark-setting process.

Standard Chartered and ANZ, the two foreign banks participating in the fix, have gold import licenses in China. HSBC also has an import license but was not named by SGE as one of the participating banks.
April 17, 2016 – A Wells Fargo bank insider, who claims to be a teller, has said that the bank are training their staff to deal with an imminent “emergency scenario”. The insider reports:

I am a teller at Wells Fargo here in the US this is also my first time using this proxy.

They started training us today for a bank holiday. They didnt mention the word bank holiday, but they did train us for an “emergency scenario”. They told us it’s just a drill. Ive been working here for 3 years, and we never had a drill before..
http://marygreeley.com/?page_id=25482
Apple spent about five years developing the iPhone, which has changed the smartphone market forever. Until the release, however, nobody could imagine what impact the iPhone would have on the market.

And most consumers didn’t know about it at all.

The same thing is happening with China and gold right now. The gold market will soon be very different than from what we see today – largely due to the current developments in China.

China’s influence will impact not just gold investors but everyone who has a vested interest in the global economy, stock markets, and the US dollar. After all, China will be a dominant force in all, as most analysts project.

Trend #1: China now officially participates in the gold price fix
http://www.hangthebankers.com/5-trends-c...ld-market/
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