Did you know that the Yuan has now surpassed the Euro in trade settlement? In fact, the market share that global trade is now settling in Yuan is almost 5 times higher today than it was just 2 years ago. Big deal you say? Well, it is a big deal, very big!
What this means is that the Yuan is emerging from obscurity and making itself ready to step in as the dollar steps out. I ask you this, have you ever wondered “why” China is buying every ounce of gold that they can get their hands on? Is it because they see gold as undervalued? Are they buying all this gold hoping to “make a profit?” The answers are no. Of course they see gold as undervalued but more importantly they see it as “scarce” and NO they are absolutely not looking to make a profit.
What China is doing is simply “building and fortifying their foundation.” This foundation is to support their currency and its value when (not if) the dollar is shunned for trade settlement. Is this speculation on their part? I highly doubt it. Ask yourself why the Saudis are making so much noise about “fracking.” Why now? We know for a fact that the Chinese and Saudis have met over the last 2 years and particularly in the last 6-8 months, do you suppose the “Petrodollar” system might have been discussed? Just a little.
These are just more pieces to the puzzle that if you are watching closely will give you clues to what’s really happening. Do you think that Russia is standing behind Syria and facing us down was per chance? Or the current war of words between Japan and China? Do you really believe that China is barking at Japan and has forgotten that by treaty “we must protect” Japan? Never since WWII, during the cold war or afterwards has Russia and China stood up to the US as they are now.
But why now? Because they not only sense weakness, they can clearly see it. They know that our “reporting” of things economic and financial are bogus. They know exactly how much gold they have moved into their own borders and they can do more than the simple math required to figure out how close to the bottom of the barrel we really are. Others around the world can see this too. Why do you think Great Britain recently met with China? For afternoon tea? No, Britain wants to know where they will stand in this after the smoke clears…because they can see it happening and they KNOW.
We Americans for the most part don’t know. Is it because we are a “foolish” country or breed? No, but we have been dumbed down purposely. You don’t agree or believe me? Watch this. It takes a comedian, Conan O’Brien to tell you the truth. How many TV stations across the country said exactly the same thing? Could it be coincidence that every single “news anchor” had the exact same words? Not possible but the larger ramifications are what? Maybe that we are not only hearing but one side (the official side) to every story? It has taken a long time but finally the LA Times did a story on the radiation hitting the west coast from the Fukushima disaster. For how long has this topic been on the radar of “alternative news?” And the quote from San Mateo officials as to why the levels of radiation are so high? “We are befuddled?” Really?
My point is this, we are in the midst of losing the privilege of issuing the reserve currency…yet very few Americans know or understand this. Foreigners can see it clearly and are preparing which is why gold demand all over the world has exploded.