Precious Metals Forum

Go Back   Precious Metals Forum > Precious Metals and Economic News > PM Bug

Like Tree182Likes

Reply
 
LinkBack Thread Tools
Old 04-02-2012, 07:05 AM   #61
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Quote :
... the dominance of the U.S. dollar was almost entirely dependent on the grip it had over oil producers and this allowed the oil price to be designnated in the U.S. dollar. The U.S. has gone to war in Kuwait and Iraq over this issue under the guise of destroying "weapons of Mass Destruction" as it appears on the verge of doing in Iran. It is no coincidence that Iran has long since ceased using the dollar to price its oil. It has also eliminated the U.S. dollar from its reserves.

THE SWIFT SETTLEMENT SYSTEM

But of greater importance to the emerging world has been the use of the Belgian-based SWIFT system of international settlements. Not only has the move stopped the sale of Iranian oil, but it has also interfered with an important source of oil to the emerging world.

Right now there are ongoing discussions between the BRICS (Brazil, Russia, India, China and South Africa) countries over their use of the SWIFT system of international settlements as a 'weapon' against Iran. The full extent of the impact of this appears to have been ignored. With China and India as two of Iran's clients, they found that the U.S. could hurt them considerably with this action. If they can hurt them in this way, then they can hurt them the same way on other issues. So the question that the BRIC nations are now asking is, "Must we be subject to the financial will of the U.S.?"

The question has long-term implications that could affect these nations' freedom of financial activity. The question demands to see just how powerful the U.S. really is. It is very clear to these emerging nations that if they are to keep on growing, unfettered by the U.S. will, they must set up a system that is not vulnerable to U.S. influence and to reduce the influence of the dollar itself.

What is being realized slowly is that the actions that come out of this conference may well mark a watershed in the shift of power from West to East and the significant reduction in the power of the U.S. as the globe's main financial influence. Consequently, these nations will have to lower the influence of the U.S. dollar on their affairs if they are to achieve real financial independence. This has to be a future and extremely negative influence on the international value of the U.S. dollar.

While the SWIFT settlement system is a Belgian-based international banking settlement agency, the U.S. influence over it was sufficient to halt all Iranian interbank transfers. It is not the system that is faulty but the influence of the U.S. over it that is the danger to the BRIC nations.
...
The latest moves by the U.S. are deeply disturbing to China, as they have the power to directly hurt the spread of the Yuan on a global basis, if the U.S. so decides. Consequently, China is threatened right now! China has been working on alternatives so far, but the moves on the SWIFT system by the U.S. have made the issue urgent as she now faces a security threat. As China continues to develop, she will face a massive demand to be able to provide financing for expensive capital goods. China can no longer afford to depend on the U.S. dollar as the financing currency for its goods, as it is technically possible, although unlikely, at the moment, to face threats from the U.S. even on this subject.

It is clear to the BRICS nations that they need to set up institutions at the heart of the present world financial systems to act as an alternative to the World Bank and the International Monetary Fund and perhaps a replacement to the SWIFT system for transactions with the emerging world. It will not be sufficient to just have an important role in the developed world institutions. It will also be inappropriate to rely on the U.S. dollar as the currency of the emerging world as it is now.
...
More: http://www.mineweb.com/mineweb/view/...ail&pid=102055
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 04-04-2012, 06:34 AM   #62
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Quote :
Far from Delhi's decked-up roundabouts and sanitised hotels, Robert Zoellick was aboard a boat on Wednesday, crossing the river Bhitarkanika on his way to a village in Orissa. After greeting the villagers with folded hands, the World Bank president sat down to talk to a global news agency. A few stock questions later, the Bank chief turned his attention to the proposed BRICS bank. "It's a complicated venture which will have a hard time getting off the ground and match the expertise of the World Bank," Zoellick said.

It was hard to miss the symbolism of Zoellick's foray into a dark corner of India and raise doubts about a new development bank just one day before the leaders of Brazil, Russia, India, China and South Africa (BRICS) met in the Capital to thrash out the nitty-gritty of the Delhi Declaration. It was clear that the Bank didn't want a new global rival that couldn't be controlled from Washington.

But by Thursday evening, BRICS leaders had proposed to trade among themselves in their local currencies, made significant progress on the setting up of the new development bank, expressed their concern at the slow pace of quota and governance reforms in IMF, and decided to abide by UN sanctions and not the unilateral ones imposed by the US and European countries on Iran and Syria. "We wish to see these countries living in peace and regain stability and prosperity as respected members of the global community," the declaration said.

This was a giant leap forward, much more than what skeptics like Zoellick had expected. In the days leading to the summit, the air was thick with negativity. "What do they talk at these summits? It's just a talk shop and a photo op," an American diplomat had said, making no effort to hide biting sarcasm. The same day, an op-ed piece in the New York Times argued that the focus of the new bank was misplaced. "It is the fundamental incompatibility of the BRICS nations, not their lack of organisation, which prevents this collection of emerging economies from acting as a meaningful force on the world stage," the op-ed said. In this western worldview, BRICS is an idea whose time hasn't come.

By Thursday evening, however, the mood at the summit was upbeat, with ministers, diplomats, businessmen and journalists smelling a change in the air. "BRICS is not an idea. It's already a reality. The balance of the existing global order is tipping," says Jackson Schneider, vice-president of Embraer, the Brazilian aviation giant. "If BRICS has no force, why is the NYT wasting so much ink and time on us?"
...
More: http://articles.timesofindia.indiati...ick-world-bank
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 04-05-2012, 07:14 AM   #63
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Quote :
...
New Emerging World Monetary System

The key participants in these new developments are the emerging world's key players: Brazil, Russia, India, China and South Africa. ...

...

How far will the development of this system go? As far as is necessary for financial independence to be achieved! The most dramatic consequence of these developments will be twofold:

1. The ability of these countries to access oil in their own currencies and not the dollar.

2. A large fall in the use of the dollar internationally, in line with the rise of the BRIC currencies, with the Yuan acting as the 'hub' of this new monetary world.

This will not mean that they will not use the dollar or any other of the developed world currencies in daily trades, but simply remove themselves from U.S. dollar dominance.
...
More: http://www.mineweb.com/mineweb/view/...8896&sn=Detail
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 04-05-2012, 10:41 AM   #64
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Quote :
In this episode, Max Keiser and co-host, Stacy Herbert, discuss Ben Bernanke's 'happy dust' and Angela Merkel's 'red lines' cause ire in BRICS trade partners. In the second half of the show Max talks to Jim Rickards about a BRICS currency, gold and the fog of currency war.
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 04-09-2012, 06:37 AM   #65
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Quote :
As per a decree issued by the Prime Minister's office on April 3, gold has been banned as a medium for exchange, along with seven bullion-related activities that will take effect from May 25.

The decree prohibits use of gold as a medium of exchange; manufacturing gold jewellery without a licence from the central bank; trading gold without a licence; and conducting any other gold-related businesses without the approval of the prime minister and the central bank.
...
More: http://www.saigon-gpdaily.com.vn/Law/2012/4/100611/

Tradition!
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 04-09-2012, 01:05 PM   #66
Yellow Jacket
 
rblong2us's Avatar
 
Join Date: Nov 2011
Location: off world
Posts: 1,950
Liked: 868 times
good article from Charles Hugh Smith on ZH -

http://www.zerohedge.com/news/guest-...struck-iceberg

and cover the keyboard for WB7's take on it -

__________________
if it cant be done with a digger .... it cant be done
rblong2us is offline   Reply With Quote
Old 04-09-2012, 04:23 PM   #67
PM Bug Supporter
 
DoChenRollingBearing's Avatar
 
Join Date: Oct 2011
Location: SE USA
Posts: 1,275
Liked: 691 times
Eewww! Now that's just nasty!

Hah, rblong!
DoChenRollingBearing is offline   Reply With Quote
Old 04-11-2012, 06:25 AM   #68
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Following on the heels of events mentioned in posts #42, 50 and 51 regarding Iran and India bypassing US trade sanctions and the US threatening India over it comes:
Quote :
The Indian government will offer tax incentives to exporters for sales in rupees to Iran, in the latest effort by New Delhi to bolster exports in return for oil from the Islamic Republic squeezed by Western sanctions, a finance ministry official said.
...
To skirt the sanctions, India this year decided to buy oil through a mechanism that lets refiners deposit rupees, which are not freely traded on global markets, for about 45 percent of Iranian crude purchases in an account at India's UCO Bank.

India sent a trade delegation in March to Iran to boost merchandise exports as a way of securing oil in return. But the delegation came back empty handed, and Indian exporters have complained of difficulties in trading through the new mechanism.

In response, the finance ministry will now offer tax incentives in the range of 4-12 percent of the value of products to exporters for sales to Iran in rupees. That brings them on a level playing field with exports sold in freely convertible currencies, such as the dollar.
...
More: http://www.reuters.com/article/2012/...8340JN20120405
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 04-11-2012, 08:13 AM   #69
Yellow Jacket
 
ancona's Avatar
 
Join Date: Nov 2011
Location: Waaay south
Posts: 3,370
Liked: 2046 times
Bad boy! You no use dollar........we will spank you hard now!
__________________
All things being equal, the simplest answer is quite often the correct answer - Occam
ancona is offline   Reply With Quote
Old 04-13-2012, 06:17 AM   #70
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Quote :
A system to settle cross-border yuan payments and boost the convertibility of the currency will be set up, central bank officials said on Wednesday.

The move will promote the international use of the yuan, analysts said.

The China International Payment System will be established in one or two years. It will make yuan clearance safer and more efficient for cross-border trade and investment settled in the currency, said Li Bo, head of the central bank's second monetary policy department, at a news briefing in Beijing.

The system will help gradually make the currency convertible and will facilitate wider use of the yuan in cross-border settlements, Li said.

Currently cross-border yuan clearance is conducted through the Hong Kong and Macao branches of Bank of China, or agency banks of overseas participants.

While demand for cross-border renminbi settlement is increasing, transaction costs in the current payment system are higher than those conducted in other major currencies, such as the US dollar, analysts said.

"The new system will link domestic and overseas participants directly, and support different languages including Chinese and English. What's more, the working hours will be extended to 17 or 18 from the current eight to nine hours to cover yuan settlement demand from different time zones," said Li Yue, director of the payment and settlement department at the People's Bank of China.
...
More: http://www.chinadaily.com.cn/china/2...t_15026869.htm
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 04-16-2012, 12:22 PM   #71
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Currency wars about to ramp up?:
Quote :
Britain’s exchange rate is “crippling” the economic recovery, and devaluing the pound by as much as 25 percent could push growth back to an annual 4 percent, research group Civitas said.

The pound’s “significant” drop since 2008 hasn’t been enough to make U.K. exports competitive on world markets, and a future decline in the currency is inevitable, according to John Mills, the author of the Civitas report published in London today. A devaluation of as much as 15 percent would balance the U.K.’s trade deficit, he said.
...
http://www.bloomberg.com/news/2012-0...itas-says.html
rblong2us likes this.
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 04-16-2012, 01:23 PM   #72
Yellow Jacket
 
rblong2us's Avatar
 
Join Date: Nov 2011
Location: off world
Posts: 1,950
Liked: 868 times
oh no ! does this mean i will be stuck with even more paper if i sell some shiny !
Bring it on eh ?

Although this discussion gets trotted out at regular intervals and i suspect the race to the bottom is carefully choreographed in order for the chosen ones to maximise fx gains.
PMBug likes this.
__________________
if it cant be done with a digger .... it cant be done
rblong2us is offline   Reply With Quote
Old 04-16-2012, 01:46 PM   #73
Yellow Jacket
 
ancona's Avatar
 
Join Date: Nov 2011
Location: Waaay south
Posts: 3,370
Liked: 2046 times
Yeah, I have read a number of articles with genesis in several different countries, all bitching about their currencies being too strong. They all make it sound as if it is a freaking conspiracy against them and that "something" must be done.

I think they all just need to give Bernanke a quick call and get his advice.
__________________
All things being equal, the simplest answer is quite often the correct answer - Occam
ancona is offline   Reply With Quote
Old 04-19-2012, 07:22 AM   #74
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Quote :
Syria is trying to sell gold reserves to raise revenue as Western and Arab sanctions targeting its central bank and oil exports begin to bite, diplomats and traders said.

Western sanctions have halved Syria's foreign exchange reserves from about $17 billion, French Foreign Minister Alain Juppe said on Tuesday after a meeting with about 60 nations aimed at coordinating measures against President Bashar al-Assad's government.

"Syria is selling its gold at rock bottom prices," said a Western diplomatic source, declining to say where it was being sold.

A second diplomatic source confirmed the information, adding that Damascus was looking to offload everything it could to raise cash, including currency reserves.

On February 27, the European Union agreed more sanctions including prohibiting trade in gold and other precious metals with Syrian state institutions, including the central bank.

Two gold traders in the United Arab Emirates said the Syrian government had been offering gold at a discount, with one saying it was making offers at about 15 percent below the market price.
...
More: http://www.reuters.com/article/2012/...83H0RZ20120418
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 04-19-2012, 07:44 AM   #75
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
China continues moving forward with the internationalization of their currency:
Quote :
London is seeking to become a hub for yuan trade and investment in an initiative backed by Bank of China Ltd., Barclays Plc (BARC), Deutsche Bank AG (DBK), HSBC Holdings Plc (HSBA) and Standard Chartered Plc. (STAN)

Institutions in the U.K. capital currently have more than 109 billion yuan ($17 billion) of customer and interbank deposits in the Chinese currency and that is “growing strongly,” according to a policy paper by research firm Bourse Consult released today.

Chancellor of the Exchequer George Osborne pushed the case for London to become an offshore center for yuan trade as closer financial ties with the world’s second-largest economy may help buffer Britain’s economy against the sovereign-debt crisis in Europe. China doubled the yuan’s trading band and allowed banks to hold dollar short positions this week, steps seen as paving the way for a convertible currency.

“London is making a push to become the second offshore yuan market,” said Dariusz Kowalczyk, a Hong Kong-based strategist at Credit Agricole CIB. “This is likely to occur wherever local markets need the offshore yuan business to boost their status. At the same time it will offer China a platform to expand the international use of the currency, preferably in time zones other than its own.”
...
http://www.bloomberg.com/news/2012-0...ub-status.html
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 04-24-2012, 08:10 AM   #76
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Sinclair opines further on the significance of SWIFT sanctions:
Quote :
... This is China versus the USA with the thrust being the SWIFT system and the parry being gold bullion.

This is history in the making. This is monetization of gold brought on as a parry to the trust of economic attack via the weapon, the SWIFT system. This is certainly economic war. It may well be an aggressive act that will change the economic world as we know it. It may be Phil that you have not thought out the implications of using the SWIFT system as a weapon. There is a huge backfire probable at a most unwelcome time in economic history.
http://www.jsmineset.com/2012/04/24/size-matters-a-lot/

For context, see: http://www.pmbug.com/forum/f4/india-...-476/#post7578
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 04-26-2012, 07:26 AM   #77
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Quote :
Gold, copper and other commodities could be paid for in yuan within a decade or two, bankers and traders said on Wednesday, provided China pursues its policy of gradually freeing up trade in the currency.

Already the world's biggest consumer of commodities such as industrial metals and oil, China's economy is growing more than three times faster than most developed countries.

Chinese customers and end-consumers such as refiners and fabricators now typically pay for such imports with dollars, but bankers at a Financial Times commodities conference in Switzerland think that will change, possibly quite rapidly.

They expect the yuan, also known as the renminbi, to be used increasingly to settle contracts into China and eventually as the basis for commodities trading, at least in Asia.
...
http://www.mineweb.com/mineweb/view/...0194&sn=Detail
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 04-29-2012, 09:01 AM   #78
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Long and interesting analysis of macro events from an Asian perspective:

A history of the world, BRIC by BRIC
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug

Last edited by PMBug; 04-29-2012 at 09:53 AM. Reason: replaced link with HuffPo link
PMBug is offline   Reply With Quote
Old 04-29-2012, 09:42 AM   #79
Yellow Jacket
 
Join Date: Oct 2011
Posts: 2,053
Liked: 925 times
Originally Posted by PMBug View Post:
Long and interesting analysis of macro events from an Asian perspective:

A history of the world, BRIC by BRIC
I got warned about a trojan after clicking the link...

Last edited by PMBug; 04-29-2012 at 09:53 AM. Reason: replaced link with HuffPo link
swissaustrian is offline   Reply With Quote
Old 04-29-2012, 09:46 AM   #80
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 6,968
Liked: 2436 times
Hmm.. I have my browser settings locked down for tight security and (perhaps therefore) I never got any such warnings. I tried to replace the links from the article to the "print" versions which don't have all the extra HTML added to them, but that didn't work.

... Looks like the HuffPo also published it:

http://www.huffingtonpost.com/pepe-e...b_1455976.html
swissaustrian likes this.
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -5. The time now is 08:33 PM.


Powered by vBulletin® from Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.
Content of PMBug.com copyright © 2011 - 2019 Measuring Up. All Rights Reserved.