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View Full Version : Russia, china sign deal to bypass u.s. Dollar



BabaRa
26th May 2014, 18:24
Note: as I watched this on TV several days ago my thoughts were: a) Based on the look on his face, Putin was either constipated at the time or he wasn't completely happy with the deal. b)And this fits in with Catherine Fitts views on the slow chipping away of the US economy, rather than an overnight-type scenario.




In a symbolic blow to U.S. global financial hegemony, Russia and China took a small step toward undercutting the domination of the U.S. dollar as the international reserve currency on Tuesday when Russia’s second biggest financial institution, VTB, signed a deal with the Bank of China to bypass the dollar and pay each other in domestic currencies.

The so-called Agreement on Cooperation — signed in the presence of Chinese President Xi Jinping and Russian President Vladimir Putin, who is on a visit to Shanghai — was followed by the long-awaited announcement on Wednesday of a massive natural gas deal 10 years in the making.

“Our countries have done a huge job to reach a new historic landmark,” Putin said on Tuesday, making note of the $100 billion in annual trade that has been achieved between the two countries.

Demand for the dollar, which has long served as a safe and reliable reserve currency in international transactions, has allowed the U.S. to borrow almost unlimited cash and spend well beyond its means, which some economists say has afforded the United States an outsize influence on world affairs.

But the BRICS countries — Brazil, Russia, India, China and South Africa, a bloc of the world’s five major emerging economies — have long sought to diminish their dependence on the dollar as a means of reshaping the world financial and geopolitical order. In the absence of a viable alternative, however, replacing it has proved difficult.

For its part, “China sees the dominance of the dollar in international trade transactions as a remnant of American global dominance, which they hope to overthrow in the years ahead,” said Michael Klare, a professor of peace and world security studies at Hampshire College. “This is a small step in that direction, to reduce the primacy of the dollar in international trade.”

Some have been tempted to view Tuesday's deal in the context of Putin's showdown with the West over the crisis in Ukraine. After the U.S. and Europe imposed sanctions on Moscow for its annexation of Ukraine's Crimean peninsula, Putin may have finally made good on promised retaliation against what he views as Western hegemony in Russia's near abroad.

“Breaking the dominance of the U.S. dollar in international trade between the BRICS is something that the group has been talking about for some time,” said Chris Weafer, a founding partner of Macro-Advisory, a consultancy in Moscow. “The Ukraine crisis and the threats voiced by the U.S. administration may well provide the catalyst for that to start happening.”

To be sure, the Russia-China bank deal is mostly a symbolic step. Liza Ermolenko, an emerging markets economist at Capital Economics in London, said that the deal was still “a very small one, in the grand scale of things,” and that it wouldn’t change Russia’s reliance on the dollar “overnight.” Most of Russia’s export contracts in the oil and gas markets are still priced in dollars, she noted, and on a wider scale, replacing the dollar with the ruble is much too risky to even consider.

More here: http://america.aljazeera.com/articles/2014/5/20/russia-china-bankdeal.html

Calz
26th May 2014, 18:32
Perhaps ... as always ... there is another layer of the onion to be peeled in the never ending search for truth???

_________________


Who is the new secret buyer of U.S. debt?

Brandon Smith
Alt-Market.com
Wed, 21 May 2014 02:41 CDT

On the surface, the economic atmosphere of the U.S. has appeared rather calm and uneventful. Stocks are up, employment isn't great but jobs aren't collapsing into the void (at least not openly), and the U.S. dollar seems to be going strong. Peel away the thin veneer, however, and a different financial horror show is revealed.

U.S. stocks have enjoyed unprecedented crash protection due to a steady infusion of fiat money from the Federal Reserve known as quantitative easing. With the advent of the "taper", QE is now swiftly coming to a close (as is evident in the overall reduction in treasury market purchases), and is slated to end by this fall, if not sooner.

Employment has been boosted only in statistical presentation, and not in reality. The Labor Department's creative accounting of job numbers omits numerous factors, the most important being the issue of long term unemployed. Millions of people who have been jobless for so long they no longer qualify for benefits are being removed from the rolls. This quiet catastrophe has the side bonus of making it appear as though unemployment is going down.

U.S. Treasury bonds, and by extension the dollar, have also stayed afloat due to the river of stimulus being introduced by the Federal Reserve. That same river, through QE, is now drying up.

In my article The Final Swindle Of Private American Wealth Has Begun,I outline the data which leads me to believe that the Fed taper is a deliberate action in preparation for an impending market collapse. The effectiveness of QE stimulus has a shelf-life, and that shelf life has come to an end. With debt monetization no longer a useful tool in propping up the ailing U.S. economy, central bankers are publicly stepping back. Why? If a collapse occurs while stimulus is in full swing, the Fed immediately takes full blame for the calamity, while being forced to admit that central banking as a concept serves absolutely no meaningful purpose.

My research over many years has led me to conclude that a collapse of the American system is not only expected by international financiers, but is in fact being engineered by them. The Fed is an entity created by globalists for globalists. These people have no loyalties to any one country or culture. Their only loyalties are to themselves and their private organizations.

While many people assume that the stimulus measures of the Fed are driven by a desire to save our economy and currency, I see instead a concerted program of destabilization which is meant to bring about the eventual demise of our nation's fiscal infrastructure. What some might call "kicking the can down the road," I call deliberately stretching the country thin over time, so that any indirect crisis can be used as a trigger event to bring the ceiling crashing down.

In the past several months, the Fed taper of QE and subsequently U.S. bond buying has coincided with steep declines in purchases by China, a dump of one-fifth of holdings by Russia, and an overall decline in new purchases of U.S. dollars for FOREX reserves.

With the Ukraine crisis now escalating to fever pitch, BRIC nations are openly discussing the probability of "de-dollarization" in international summits, and the ultimate dumping of the dollar as the world reserve currency.

The U.S. is in desperate need of a benefactor to purchase its ever rising debt and keep the system running. Strangely, a buyer with apparently bottomless pockets has arrived to pick up the slack that the Fed and the BRICS are leaving behind. But, who is this buyer?

At first glance, it appears to be the tiny nation of Belgium.

While foreign investment in the U.S. has sharply declined since March, Belgium has quickly become the third largest buyer of Treasury bonds, just behind China and Japan, purchasing more than $200 billion in securities in the past five months, adding to a total stash of around $340 billion. This development is rather bewildering, primarily because Belgium's GDP as of 2012 was a miniscule $483 billion, meaning, Belgium has spent nearly the entirety of its yearly GDP on our debt.

Clearly, this is impossible, and someone, somewhere, is using Belgium as a proxy in order to prop up the U.S. But who?

Recently, a company based in Belgium called Euroclear has come forward claiming to be the culprit behind the massive purchases of American debt. Euroclear, though, is not a direct buyer. Instead, the bank is a facilitator, using what it calls a "collateral highway" to allow central banks and international banks to move vast amounts of securities around the world faster than ever before.

Euroclear claims to be an administrator for more than $24 trillion in worldwide assets and transactions, but these transactions are not initiated by the company itself. Euroclear is a middleman used by our secret buyer to quickly move U.S. Treasuries into various accounts without ever being identified. So the question remains, who is the true buyer?

My investigation into Euroclear found some interesting facts. Euroclear has financial relationships with more than 90 percent of the world's central banks and was once partly owned and run by 120 of the largest financial institutions back when it was called the "Euroclear System". The organization was consolidated and operated by none other than JP Morgan Bank in 1972. In 2000, Euroclear was officially incorporated and became its own entity. However, one must remember, once a JP Morgan bank, always a JP Morgan bank.

Another interesting fact - Euroclear also has a strong relationship with the Russian government and is a primary broker for Russian debt to foreign investors. This once again proves my ongoing point that Russia is tied to the global banking cabal as much as the United States. The East vs. West paradigm is a sham of the highest order.

Euroclear's ties to the banking elite are obvious; however, we are still no closer to discovering the specific groups or institution responsible for buying up U.S. debt. I think that the use of Euroclear and Belgium may be a key in understanding this mystery.

Belgium is the political center of the EU, with more politicians, diplomats and lobbyists than Washington D.C. It is also, despite its size and economic weakness, a member of an exclusive economic club called the "Group Of Ten" (G10).

The G10 nations have all agreed to participate in a "General Arrangement to Borrow" (GAB) launched in 1962 by the International Monetary Fund (IMF). The GAB is designed as an ever cycling fund which members pay into. In times of emergency, members can ask the IMF's permission for a release of funds. If the IMF agrees, it then injects capital through Treasury purchases and SDR allocations. Essentially, the IMF takes our money, then gives it back to us in times of desperation (with strings attached). A similar program called 'New Arrangements To Borrow' (NAB) involves 38 member countries. This fund was boosted to approximately 370 billion SDR (or $575 billion dollars U.S.) as the derivatives crisis struck markets in 2008-2009. Without a full and independent audit of the IMF, however, it is impossible to know the exact funds it has at its disposal, or how many SDR's it has created.

It should be noted the Bank of International Settlements is also an overseer of the G10. If you want to learn more about the darker nature of globalist groups like the IMF and the BIS, read my articles, Russia Is Dominated By Global Banks, Too, and False East/West Paradigm Hides The Rise Of Global Currency.

The following article from Harpers titled "Ruling The World Of Money," was published in 1983 and boasts about the secrecy and "ingenuity" of the Bank Of International Settlements, an unaccountable body of financiers that dominates the very course of economic life around the world.

It is my belief that Belgium, as a member of the G10 and the GAB/NAB agreements, is being used as a proxy by the BIS and the IMF to purchase U.S. debt, but at a high price. I believe that the banking elite are hiding behind their middleman, Euroclear, because they do not want their purchases of Treasuries revealed too soon. I believe that the IMF in particular is accumulating U.S. debt to be used later as leverage to absorb the dollar and finalize the rise of their SDR currency basket as the world reserve standard.

Imagine what would happen if all foreign creditors abandoned U.S. debt purchases because the dollar was no longer seen as viable as a world reserve currency. Imagine that the Fed's efforts to stimulate through fiat printing became useless in propping up Treasuries, serving only to devalue the domestic buying power of our currency. Imagine that the IMF swoops in as the lender of last resort; the only entity willing to service our debt and keep the system running. Imagine what kind of concessions America would have to make to a global loan shark like the IMF.

Keep in mind, the plan to replace the dollar is not mere "theory". In fact, IMF head Christine Lagarde has openly called for a "global financial system" to take over in the place of the current dollar based system.

The Bretton Woods System, established in 1944, was used by the United Nations and participating governments to form international rules of economic conduct, including fixed rates for currencies and establishing the dollar as the monetary backbone. The IMF was created during this shift towards globalization as the BIS slithered into the background after its business dealings with the Nazis were exposed. It was the G10, backed by the IMF, that then signed the Smithsonian Agreement in 1971 which ended the Bretton Woods system of fixed currencies, as well as any remnants of the gold standard. This led to the floated currency system we have today, as well as the slow poison of monetary inflation which has now destroyed more than 98 percent of the dollar's purchasing power.

I believe the next and final step in the banker program is to reestablish a new Bretton Woods style system in the wake of an engineered catastrophe. That is to say, we are about to go full circle. Perhaps Ukraine will be the cover event, or tensions in the South China Sea. Just as Bretton Woods was unveiled during World War II, Bretton Woods redux may be unveiled during World War III. In either case, the false East/West paradigm is the most useful ploy the elites have to bring about a controlled decline of the dollar.

The new system will reintroduce the concept of fixed currencies, but this time, all currencies will be fixed or "pegged" to the value of the SDR global basket. The IMF holds a global SDR summit every five years, and the next meeting is set for the beginning of 2015.

If the Chinese yuan is brought into the SDR basket next year, if the BRICS enter into a conjured economic war with the West, and if the dollar is toppled as the world reserve, there will be nothing left in terms of fiscal structure in the way of a global currency system. If the public does not remove the globalist edifice by force, the IMF and the BIS will then achieve their dream - the complete dissolution of economic sovereignty, and the acceptance by the masses of global financial governance. The elites don't want to hide behind the curtain anymore. They want recognition. They want to be worshiped. And, it all begins with the secret buyout of America, the implosion of our debt markets, and the annihilation of our way of life.

http://www.sott.net/article/279489-Who-is-the-new-secret-buyer-of-US-debt

BabaRa
26th May 2014, 18:37
Things are never the way they seem, eh, Calz.

But as we report each layer, we begin to get a glimpse (perhaps) of who is behind the final curtain.. !

I'm looking forward to Catherine Fitts and Richard Dolan's teaming up to try and get to the understanding of of who is the ultimate puppet master. Probably many layers to go through, but strides are being made.

norman
26th May 2014, 18:49
Catherine Fitts and Richard Dolan



oooowwww...yesss..... (where d you hear that ? )...... I want a ticket to that gig !

Calz
26th May 2014, 18:57
Don't forget Joseph Farrell.

There are not many ... but a few on this rock really get it (not only on the physical level but deeper).

BabaRa
27th May 2014, 03:30
oooowwww...yesss..... (where d you hear that ? )...... I want a ticket to that gig !


It's the Conference held in San Mateo, California on June 28 & 29 called the SECRETSPACEPROGRAM and BREAKAWAYCIVILIZATION·

Henrik Palmgren from Red Ice will be the host. Catherine Fitts, Richard Dolan and yes Calzie, Joseph Farrell, as well as many others.

Here's the website: http://www.secretspaceprogram.org/intro/

I will either go (trusting I manifest the money and someone to drive with) or I shall pay for streaming it, which hopefully I can share with my friends here on the Forum, but not sure how that works.

Tonz
27th May 2014, 03:52
Russia, china sign deal to bypass u.s. Dollar

of course they would /did/will do/are doing,they have no choice if they wish to free themselves of the consequences if they dont (positive view)
and also of course they will if they want to move the world economics more towards there own perverted control,(could be negative)
but as for the puppet makers of the globe, they do not have countries they can be where ever the whiskey is better, and they don't care about what currency they need to use to pay for it .(you can buy good whiskey in the Himalayas,India and on a little island in the pacific called Banaba as well!)