Russia Ratifies Economic Union + Russia Dumping Dollars + China Plans To Take Away Gold Market & Pricing Power. 10/13/2014. (Posted & Compiled by Rique Seraphico). 01 - Russia Ratifies Economic Union And Readies Trade In Currencies Other Than Dollar - By Kenneth Schortgen Jr Finance Examiner. Source Link: dinarrecaps/our-blog/russia-ratifies-economic-union On Oct. 3, Russian President Vladimir Putin announced that he has signed a treaty ratifying the Eurasian Economic Union, and is set to begin a new era of trade done primarily outside the dollar, and in national currencies such as the Yuan and Euro. This Union already has the support of several BRICS nations, as well as associate countries, and will help facilitate trade being done in a much smoother and easier way than what is currently used through SWIFT or other Western banking processes. Putins signing of the trade agreement comes as a response to the weakening value of the Rouble, and the dumping of excess oil onto the markets via U.S. intervention and other national agenda policies. And as an alternative to propping up the Rouble through a form of monetization, bond buying, or additional sanctions on the U.S. and Europe, Russia is instead choosing the path of leaving the game entirely, and offering the world a competitive alternative to the current dollar based global trade system. Putin signs law ratifying Eurasian Economic Union. In order to curb risks from ongoing outflows, Putin said on Thursday that Russia wants to shift to national currencies in trade deals with China and other countries, implying a shift away from the U.S. dollar. That appears to be strengthened further this morning as Putin signs law ratifying a Eurasian economic union. - Zerohedge The Eurasian Economic Zone, or Trade Zone as it is also known, is a joint venture with China, India, and several Central and Far Eastern countries that will tie into the ongoing construction of the new Silk Road. This trade zone will allow nations to trade without tax or duties, and for the most part, in their own national currencies or with gold, oil, and other major commodities. Russia and China have already begun non-dollar trade this year through a historic oil and natural gas deal that will bring in over $400 billion in Yuan equivalent to Russia for a 20-30 year contract. Additionally, Russias primary oil company has paved the way for future energy sales to be done in either Roubles or Yuan, with both nations formulating a new alternative to SWIFT that will facilitate easier exchanges of one nations currency for another. Economic sanctions by the U.S. are proving that they not only have backfired against the dollar and Europe, but have accelerated plans by Eurasia to bring about a new global trade platform that leaves America completely out of any controlling interest. And with the dollar having strengthened against nearly all currencies in recent days, the potential of the Eurasian Economic Zone to equalize growing inflation and deflation around the world through the bypassing of the dollar, is quickly becoming a brighter alternative to another Great Recession. _________________________________________ 02 - Russia Dumping Dollars. 10/13/2014. Russia Dumping Dollars To Use To Protect Currency And Falling Oil Prices - By Kenneth Schortgen Jr Finance Examiner. As the United States expands its proxy war against Russia and the BRICS nations through a newly discovered secret deal with Saudi Arabia to force down global oil prices, Russia is firing back to this monetary attack against their currency and economy. On Oct. 10, a new report on Russian currency outflows shows that during the third quarter ending in September, the Eurasian state paid off a near record $53 billion in foreign debt, and sold off dollars to use as capital to stabilize their declining currency, and to protect their primary resource industry from the deflation America has caused through the dumping of excess oil into the market supply. Some of this money was used earlier this week to support the declining Rouble as President Putin authorized the transfer of over $2 billion to be used directly to support the Russian currency. Additionally, the Russian central bank has already authorized funds to be set aside to supplement Russian corporations and oil industries should the need arise for liquidity and capital. Picture Despite the reassuring narrative from The West that Russia faces costs and is increasingly isolated due to sanctions for its actions in Ukraine, the most recent data suggests reality is quite different. First, capital outflows slowed dramatically in Q3 (from $23.7 billion in Q2 to $13 billion in Q3) with September seeing capital inflows for the first time since Sept 2013. Second, Russias current account surplus was significantly stronger than expected ($11.4 billion vs $8.8 billion expected) driven by increased trade. Third, and perhaps most crucially, Russia paid down a massive $52.8 billion in foreign debt as Putin de-dollarizes at near record pace, reducing external debt to the lowest since 2012. - Zerohedge Russia is not the only Eurasian nation de-dollarizing at a fast pace. Earlier this week as well, long time U.S. economic ally South Korea disseminated that their foreign reserve holdings had grown in the Yuan over the past year, almost doubling its prior total of 13.7% which was the amount they held at the end of 2013. These reserves replace former dollar holdings, and rise a huge red flag that the Far Eastern manufacturing center is quickly moving into the Eurasian Trade camp, and away from Western hegemony. Americas gambit to force down the price of oil is a ploy the U.S. used in the late 1980s to destroy the Rouble, and tear down the old Soviet Unions economy. However, the Russian leadership is not stupid, and have realized for a long time that this was an Achilles Heel in their economic system, and this time, the tables are quickly turning against the U.S. as Russia simply dumps more and more dollars to use as capital to supplement their currency and industry during these short term attacks by the West in their attempt to cripple them monetarily. _________________________________________ 03 - China Plans To Take Away Gold Market & Pricing Power By Kenneth Schortgen Jr Finance Examiner Harvey Organ- By December Whole Thing Going to Collapse (09.09.14). Video Link: youtu.be/aZwSiHBxm0c Since the beginning of the year, and perhaps even going back to the end of the 2008 credit crisis, gold and silver markets in both London and the U.S. have seen a massive amount of manipulation by the bullion banks in an effort to protect the dollar and reserve currency at the same time the Federal Reserve began implementing the policies of ZIRP, QE, and direct monetizing of U.S. debt. This of course has led the spot price of gold in the physical, paper, and futures markets to become depressed so much that several global miners no longer are able to make a profit from excavating and refining the precious metals. Harvey Organ- By December Whole Thing Going to Collapse But on Sept. 11, the days of Western manipulation may be quickly coming to a close as China is currently holding a three day Gold Conference in Beijing, with the primary purpose being the denominating of gold contracts in yuan rather than dollars, and creating a metals market that is absent manipulation and capable of wresting control of price discovery from the Comex and other Western banks that need to control prices to protect the crumbling reserve currency. The China Gold Congress is currently in full flight in Beijing. The three day Congress is China’s biggest gold industry event of the year, drawing in participants from across the Chinese and international gold sectors including central banks, mining companies, bullion banks and refiners. In an announcement that coincides with the China Gold Congress today, the Shanghai Gold Exchange just announced that it is launching an internationally tradable yuan denominated physical gold contracts to be traded in the free trade zone for the popular retail 1kg gold bar, the Good Delivery 12.5kg (400 oz) bar popular with central banks, and a smaller 100 gram bar contract. We may soon see global gold hub wars between London and New York on the one hand and the increasingly powerful eastern hubs of Singapore, Shanghai and Beijing on the other. - Goldcore This sudden shift in policy by the Chinese to control and perhaps dominate the gold market is being taken seriously by London and U.S. gold cartels that have been the primary keepers of price discovery and fixing for decades. At the same time Shanghai is gaining approval for more bullion banks to expand the capacity of the gold markets in Asia, the U.S. based CME is in negotiations to open their own offices and outlets for gold contracts in Hong Kong which will create a full monetary war between the yuan and the dollar over the power and authority to control gold prices and discovery. The biggest question on who will ultimately be successful in this economic war comes down to who actually has the physical gold on hand to supply contracts that will no longer be paper ones that are normally rolled over each month, and instead are concrete contracts that will require delivery of physical gold at an agreed upon price. And according to long time metals analyst Harvey Organ in an interview on Sept. 10 with Greg Hunter of USA Watchdog, the U.S. and London no longer have any gold at all, and this attempt to usurp the Chinese in dominating the metals markets for the future will not only blow up in the CMEs face, but will cause the actual price to rebound strongly to its true value of upwards of 100 times greater than what the current spot price is that rules the markets today.
Posted on: Tue, 14 Oct 2014 03:19:58 +0000
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