Dear readers, interesting times to say the least. As stated in one of the most important articles in decades (discussed here on Mellgren.com), the denials from US media and officials are in, like clock-work:
“‘These plans will change the face of international financial transactions,’ one Chinese banker said. ‘America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate.’”
Jim Sinclair of JSMineSet.com writes:
“When considering today’s action in currency and gold please note how long ago the denials of the energy producers desire for alternative settlement currencies were issued.
They do however wish a Super Sovereign Currency as an alternative to the US dollar. Denials we made as long as 19 hours ago or before the US markets opened today”
He has already found these denials:
- Fox News: Gulf States Deny Secret Plan to Dump Dollar
- Free Republic: Gulf States Deny Secret Plan to Dump Dollar
- MyFox9.com: Gulf States Deny Secret Plan to Dump Dollar
- MyFox New York: Gulf States Deny Secret Plan to Dump Dollar
Fox News… Fair & Balanced, right?
The fact of the matter is that China is no longer US dollar dependent, contrary to what many financial journalists are writing. The thing is that China is switching from a export dependent economy to a domestic oriented economy. Sure, they still rely on exports (38% of GDP) but the role of the American consumer is diminishing and focus is on Asia, the Middle East and Europe. The fact that the BRIC-countries are moving away from US dollars will mean that China will un-peg its currency from the US dollar very very soon. The first step was for the Chinese to issue their own bonds in yuan, the next step is for the OPEC countries to un-peg their currencies as well, at which time the US dollar will die a sudden death. The un-pegging of the Chinese yuan from the US dollar is something that the EU is supporting:
ECB governor Guy Quaden said patience is running thin. “The problem is not the exchange rate of the dollar against the euro, but rather the relationship between the dollar and certain Asian currencies, to mention one, the Chinese Yuan”.
The fact is that ALL countries, except US proxies, want a new reserve currency. Listen to this interesting interview with Robert Fisk, the author behind the article, even though I don’t agree, as previously stated, on the timing of 2018 since I believe the move away from the US dollar will come much sooner:
