China, Russia quit dollar

[udun]

China, Russia quit dollar
China Daily 25 Novembre 2010

Cina e Russia abbandonano il dollaro. Negli scambi bilaterali, useranno le proprie monete nazionali

St. Petersburg, Russia - China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.

The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.

The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.

"That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries," he said.

Putin made his remarks after a meeting with Wen. They also officiated at a signing ceremony for 12 documents, including energy cooperation.

The documents covered cooperation on aviation, railroad construction, customs, protecting intellectual property, culture and a joint communiqu. Details of the documents have yet to be released.

Putin said one of the pacts between the two countries is about the purchase of two nuclear reactors from Russia by China's Tianwan nuclear power plant, the most advanced nuclear power complex in China.

Putin has called for boosting sales of natural resources - Russia's main export - to China, but price has proven to be a sticking point.

Russian Deputy Prime Minister Igor Sechin, who holds sway over Russia's energy sector, said following a meeting with Chinese representatives that Moscow and Beijing are unlikely to agree on the price of Russian gas supplies to China before the middle of next year.

Russia is looking for China to pay prices similar to those Russian gas giant Gazprom charges its European customers, but Beijing wants a discount. The two sides were about $100 per 1,000 cubic meters apart, according to Chinese officials last week.

Wen's trip follows Russian President Dmitry Medvedev's three-day visit to China in September, during which he and President Hu Jintao launched a cross-border pipeline linking the world's biggest energy producer with the largest energy consumer.

Wen said at the press conference that the partnership between Beijing and Moscow has "reached an unprecedented level" and pledged the two countries will "never become each other's enemy".

Over the past year, "our strategic cooperative partnership endured strenuous tests and reached an unprecedented level," Wen said, adding the two nations are now more confident and determined to defend their mutual interests.

"China will firmly follow the path of peaceful development and support the renaissance of Russia as a great power," he said.

"The modernization of China will not affect other countries' interests, while a solid and strong Sino-Russian relationship is in line with the fundamental interests of both countries."

Wen said Beijing is willing to boost cooperation with Moscow in Northeast Asia, Central Asia and the Asia-Pacific region, as well as in major international organizations and on mechanisms in pursuit of a "fair and reasonable new order" in international politics and the economy.

Sun Zhuangzhi, a senior researcher in Central Asian studies at the Chinese Academy of Social Sciences, said the new mode of trade settlement between China and Russia follows a global trend after the financial crisis exposed the faults of a dollar-dominated world financial system.

Pang Zhongying, who specializes in international politics at Renmin University of China, said the proposal is not challenging the dollar, but aimed at avoiding the risks the dollar represents.

Wen arrived in the northern Russian city on Monday evening for a regular meeting between Chinese and Russian heads of government.

He left St. Petersburg for Moscow late on Tuesday and is set to meet with Russian President Dmitry Medvedev on Wednesday.


by Su Qiang and Li Xiaokun


http://www.effedieffe.com/index.php?opt ... Itemid=152

[udun]

Just ask yourself what it means to us? It could be a new invasion on the horizon and since the so-called the war on terror is about grabbing natural resources, there is no doubt many defenseless countries will be invaded. The more the empire's hegemony is threatened, the more the big boys take drastic actions. It may be that tough times are ahead for the people of Somalia. Let us hope and pray it doesn't come to that.

[udun]

Crisis of Fiat Currencies: US Dollar Surpluses Converted into Gold
China, Russia, Iran are Dumping the Dollar


by Bob Chapman

Something is going on that your government does not want you to know about. Very few journalists have written about it and little or nothing has appeared in the mainstream media. The story could be one of major stories of our time.

Western powers have tried to destroy gold as a backing for currencies for many years. Presently the major media won’t touch the story and that is understandable.

Something we have been writing about for years is the Shanghai Cooperation Organization known as SCO. Few have been listening and few have been interested in what their mission is and what they have been up to.

Some of the members are large oil producers and some, like China, are large oil users. Some have very large US dollar surpluses. As well, some are large commodity and gold and silver buyers. In fact, members are in a great part responsible for driving these prices higher. It is debatable, but we believe there is a conscious effort to accumulate gold and silver, dump dollars and to back their currencies with gold.

China and Russia are both large gold producers and for a number of years have been buying up domestic gold and silver production, so that it never reaches the market and does not affect prices. If anything the absence of sales tends to push the markets higher. As a matter of fact Russia and India are visible buyers. Even Iran with its oil surplus recently announced that they had purchased 340 tons of gold. Their recent gold purchases are very significant as affiliate members, which have access to the present and ultimate direction of the group. You might say buying gold has been a protective effort to shield members and close observers from the problems generated by dollar policies. They are accumulating gold, as many have been worldwide, for the past ten years, but particularly over the past few years.

This buying, for protection, has served to thwart the efforts of US policymakers, the Treasury, other central banks in Europe and the Fed, from being able to continue the blatant suppression of both gold and silver prices. The malefactors, except for forays into derivatives and futures, which are transitory, have lost control and suppression of gold and silver prices, and it is only a matter of time before all visages of any control will be visible. Since 1988, in August when Present Reagan signed the Executive Order creating, “the President’s Group on Financial Markets” and the subsidiaries that have grown out of that policy, that the Treasury won many if not most of the battles. The SCO in part changed that and now they and the public are winning the war for a fair and free gold and silver market. The current class action lawsuits, including RICO, are a testament to the market manipulation in silver, which is finally coming to an end. HSBC and JPMorgan Chase, the latter that is the major owner of the Fed, are going to be finally prohibited from rigging these markets. Their officers all belong in jail, but elitists never go to jail; they pay fines, and keep right on robbing the public.

Other SCO members and observers are accumulating gold as well, be it in smaller amounts. We might add that other nations observing Russia and China and their gold purchases are buying as well. These participants must believe that there could be a return to sound money; otherwise they wouldn’t be gold buyers. Buying gold is certainly preferable to holding US dollars, which have consistently fallen in value versus other currencies over the past ten years. Then again all currencies have fallen versus gold over that period, some 19.6% annually. It is nice to see nations are finally waking up to the reality that fiat currencies will all over time deteriorate versus gold. The temptation is enormous to deficit spend.

The most interesting aspect of the SCO is that they do not strive for political agreement such as the European Union. They are interested in economic stability and development and security. There is no overall binding laws. Nations retain their sovereignty, which is the exact opposite of what the elitists in the US and Europe desire, and that is world government. The SCO has provided great flexibility something that is non-existent in elitist controlled countries. Another interesting facet is that the SCO probably represents half of the world’ population, far more than the US and Europe. As these nations accumulate gold so does some of their citizens, which puts strong upward pressures on gold prices on a continuing basis.

In addition some of these nations, such as China, are spending dollars by buying natural resources and other things in other nations in an attempt to relieve themselves of excess dollars earned in trade. Both Russia and China fully realize that the US dollar is in serious trouble and has been for a number of years due to fiscal debt and the unbridled creation of money and credit by the Federal Reserve. They well know the dollar is in serious trouble and what the outcome will probably be.

As the economies of the US and Europe become more deeply mired in problems the economies of SCO nations more and more resemble the free economies of old that were very successful. You might say they have found their way back to basics and sound money. As the dollar comes under further downward pressure more nations will probably join the SCO to escape the clutches of European and American imperialism and bureaucracy, which for some years has been onerous and unsuccessful. What we see is a natural path by nations to extricate themselves from the control of Wall Street and the City of London, which have dominated the world for so long. All these facts considered we believe gold will find its way substantially higher with the participation of these nations, a factor the West never figured on. These ten nations are sucking excess gold out of the market every day and that will continue indefinitely.

These SCO nations are well aware that the surge of hot dollars created by the Fed out of thin air are headed their way and with them inflation. Brazil was the first nation to attempt to stop this onslaught by imposing a 6% tariff on interest and dividend paying Brazilian securities, purchased with US dollars. Over the last two years between stimulus and the Fed $2.5 trillion has been injected into the US and world financial system. As a result commodity and gold and silver prices have exploded. This has caused the dollar to fall in value versus other currencies and gold. There is no question more and higher inflation is on the way, as the Fed gets into QE 2. You can also bet that QE2 will not be $600 billion, but more than $2 trillion. Inflation is already showing up in food, petroleum products, airline fares and in many other items that we use every day. As usual the government says there is little or no inflation. Even competent economists still use government’s bogus figures. What can they be thinking of? They know what is going on as well as we do. That means we are embarking on the highest inflation rates in US history. Thus far the undertow of deflation has been superseded by government banking and Fed aggregate creation. The Fed, in order to subdue deflation and such spending has to always overshoot the inflation they create, so that they can be sure that deflation cannot take hold. This money and credit is in the process of working its way through the economy, spreading inflation as it winds its way through.

The only investors who are being afforded protection are those who have invested in gold and silver and commodities. That is less than 2% of the American population. We predicted in mid-May that QE2 and QE3 would take place for a combined $5 trillion over the next two fiscal years. In fact, the Fed was late in starting in June and as a result 4th quarter GDP growth will probably be 1% and the 1st quarter of 2011 will probably be in the minus column, as unemployment heads to 25% and extended benefits run out. We are not seeing growth; we are seeing forced feeding.

The Fed’s promises are not worth the paper they are written on. Ben Bernanke will print money until he cannot anymore and we have hyperinflation. That is because he has no other choice. He has no way out and he knows it won’t work. Tragically, this is where we are headed and there is no way to stop what the elitists have put deliberately in motion.

As long as quantitative easing is official Fed and Wall Street policy, gold is going to continue to rise with silver, and the stronger the case is that gold is the real world reserve currency. That means all currencies will eventually have to be backed by gold. We believe that elitists have accepted this fact and that was borne out recently by World Bank President, CFR, Trilateralist and Bilderberger Robert Zoellick. We can assure you that was no slip of the tongue. That was a cleverly planted trial balloon to get public reaction.

We do not see QE2 and QE3 as incompetence or bungling. It happens to be the only option available to the powers behind government. The same errors committed during the Great Depression of the 1930s are being repeated and economists, including Mr. Bernanake know they do not work. Yes, the Fed contracted money supply and when they let it loose again, it was too late for it to be in anyway effective. Next comes tariffs as an outgrowth of: currency wars; interest and dividend penalties on the inflow of hot, inflationary dollars and retaliatory tariffs as a result of losing 8.5 million jobs and 432,000 businesses over ten years to free trade, globalization, offshoring and outsourcing. Smoot-Hawley tariffs and even dumb Fed moves were bad enough, but Hoover’s raising of taxes by 150% was a monumental piece of stupidity.

At the root of all this is that the Fed is supposed to be saving the US economic and financial structure. They are not doing that, they are saving the banking system and Wall Street instead and these are the miscreants that caused the problem in the first place. The result of this policy of zero interest rates and easy money is that few are saving.

There you have it, planned destruction. Is it any wonder the SCO members and observers are buying gold on every dip and will not stop doing so until they run out of dollars. Our only question is; what took them so long and why are they not buying more faster?



Bob Chapman is a frequent contributor to Global Research. Global Research Articles by Bob Chapman

http://globalresearch.ca/index.php?context=va&aid=22031

[udun]

For the Somalis here who have some form of good cash, it is good idea to transfer huge junk of that money into gold before the prices go to the roof.

[SultanOrder]

Yeah UI've been saying that about Gold for a long time, ever since the prices where at 900 dollars to buy gold.