Germany Upset with U.S., Merkel in China, signed agreements of trade.... No dollar to be used? China signs Yuan trade agreement with France and Luxembourg

Germany and Merkel are very upset with the U.S. once more over spying.  This time it has been discovered a spy for the U.S. was within Germany's Foreign Intelligence agency. 

Merkel is using some very harsh words against the U.S.  It also came at a time that Merkel is in China right now signing trade agreements with them.

"If the reports are correct it would be a serious case,"Merkel told a news conference in Beijing, standing next to
Chinese Premier Li Keqiang.

 "Germany is against that - regardless of where it comes from," Merkel said, in reference to industrial espionage."We have a duty as the state to protect our economy ... We are for the protection of intellectual property."

This year there have been many agreements signed with our closest allies of trade, dropping the dollar.  The U.K. signed an agreement with China just a couple of weeks ago, dropping the dollar. 

France just a few days ago said the dollar did not need to be used in their trade for oil 

The Chinese article is vague, as they always are regarding what currency will be used with Germany.  But just as before, you can read between the lines and figure it out as it came from Merkel's mouth.

 Merkel said that Germany is willing to make full use of intergovernmental consultations with China to deepen cooperation in the fields of innovation, joint research, market access, new urbanization , energy conservation, climate change and health services.

Germany is willing to collaborate closely with China in international and regional affairs, and to face challenges and realize common development, Merkel said, adding that Germany appreciates China's support of the EU and the euro.

Chinese and German companies signed a number of agreements for deals including buying helicopters from Germany and setting up a new automobile manufacturing base in China.

Another article has the information that Volkswagon is going to build two factories in China with an agreement just signed today.

BERLIN, July 7 German auto giant Volkswagen announced Monday that it will   build two new auto plants in its largest market of China to expand production   capacity.

Volkswagen said it had sold 20 million vehicles in China over the past 30 years   and would invest a total of 18.2 billion euros (25.25 billion U.S. dollars) between   2014 and 2018 in new plants and products together with its Chinese joint    venture   partners.

Include the fact as a linking headline article below the Merkel visit article is one titled:  Internationalization of the Renminbi.  

Now add the fact that China just signed trade agreements with France and Luxembourg using the Renminbi/Yuan and dropping the dollar. 

BEIJING, June 29 -- The People's Bank of China (PBoC), China's central bank, on Sunday announced that it has  inked two Memorandum of Understanding (MoUs) on renminbi(RMB) business with the   central banks of Luxembourg and France.

Zhou and Christian Noyer, Governor of the Banque de France, on Saturday signed a separate MoU to set up shortly a renminbi payment system in Paris.


This is just the news about China and their trade agreements with other countries, but let's not forget that Russia is doing the same thing around the world.  The dollar is being dropped fast with our closest allies. Isn't it ironic that the U.S. has spent trillions on wars in Iraq, Afghanistan and Libya due to those leaders about to drop the dollar in oil trade a few years ago?  Now, the world is dropping the dollar very fast and there is no way the U.S. can go to war against all the other countries.  Our allies have been embolden with being able to safely drop the dollar due to Russia and China taking the first steps.  The rest of the world it seems wants to leave the dollar behind.  Watch how country's credit ratings will be lowered in the near future along with the U.S. finding faults with banks around the world.

China has started their own credit rating company due to the U.S. using credit ratings for political motives.  That article is here. 

For all of us in the U.S., our way of life will change and the cost of things will skyrocket.  Our little China trinkets and items that seem so cheap now will be expensive.  At what point will all of this happen and we go Zimbawe?  The way other countries are quickly signing no dollar trade deals it may only be a couple of years or less.

The writing really is on the wall.

It really is sad to see, this once great country, appears to be being destroyed from the inside out.  I can't help but think that those who are in control are doing everything they can to destroy the country.  With the federal government bringing in as many illegals aliens as possible right now and causing chaos, it really does seem to be a systematic destruction in every form of the U.S.

I never thought or conceived  I would see the day this country being completely demolished on purpose by those we entrusted it with in D.C..

China and Australia to Hasten FTA (Free Trade) negotiation. Wants an agreement quickly. Sydney to be an Official Yuan trading exchange.

China and Australia have been in FTA (Free Trade Agreement) negotiations since 2005.  Now China  and Australia are rushing and get an agreement set between them.  

China has signed FTA agreements with 31 countries so far.  There are 18 trade zones.  They have been expanding the use of Yuan with those agreements.  The U.S. dollar used to be the currency traded between every country for all goods.  That is why the U.S. dollar had always been in demand and accepted everywhere.

Portion from the signed agreements link above:

Among the current batch of agreements, China has signed 12 free trade agreements (FTA)with countries and regions including the ASEAN, Singapore, Pakistan, New Zealand, and Chile, a Closer Economic Partnership Arrangement (CEPA) between the Mainland and Hong Kong, and an Economic Cooperation Framework Agreement (ECFA) between the Mainland and Taiwan. With the exception of the FTAs between China and Iceland and China and Switzerland, which have not yet become effective, the other ten FTAs have been implemented.

To understand what China has been doing since 2008, here is an article from 2009 how China began expanding the accepting of Yuan in trade and agreements they made.  Since then China has set up Yuan exchanges and has been trading without the U.S. dollar involved.    I have written about China's agreements with Brazil and all the other BRICS and the dropping of the U.S. dollar between them.   Last Year BRICS formed an emergency currency exchange between them.   Last year, they did a cross border loan exchange before the RMB became international.   In 2012, BRICS signed a local currency exchange agreement. 

China has been discussing with Australia a FTA but has never gotten anything worked out between them.  But now both are wanting to rush an agreement between them.  Why is that?  What do they know that we don't?

I believe it comes to what is happening with Russia and Ukraine.   I believe China and Australia knows the U.S. dollar is going to be imploding soon when Russia completely drops it in trading.  After Russia drops the dollar, those countries that were too fearful of the wrath of the U.S. (they saw what happened to Iraq, Libya, tried on Syria) from an invasion and destruction of the country, if one dared dropped the dollar.  We will see many countries trading with Russia, including Europe (if they want gas) through Gold, Ruble or maybe even the Yuan for goods/energy.

From link:  Notice almost every sentence has something about 'rushing, hurried, as soon as possible'.


China and Australia on Saturday voiced hope to hasten negotiations on a Free Trade Agreement (FTA) and strike a deal as soon as possible.


"It is a common aspiration of businessmen from both countries and also an important consensus reached by leaders of the two countries to speed up the FTA negotiations," Wang said.

Wang called on both governments to meet halfway and show flexibility in the FTA negotiations to make tangible progress at an early date.

For his part, Abbott said development of economic and trade relations between Australia and China had moved rapidly in recent years and he expected an FTA deal at the earliest possible opportunity.


Right there... the words being used says a LOT!  The article does not mention a currency that would be used.  But all you have to do is read this article out on April 11 2014 about Sydney becoming an official offshore trading exchanged for the Yuan.

Portion from above article:

CANBERRA, April 11 (Xinhua) -- Australia and China have agreed to enhance offshore market development of the Renminbi (RMB) and the central banks of both countries are working together on potential future clearing and settlement arrangements in Sydney, Treasurer Joe Hockey said in a press release on Friday.

Once the arrangements are finalised, it will place Sydney alongside Hong Kong, Singapore and Taiwan as an official trading hub for the yuan, the Australian Financial Review reported.

"Australia is at the forefront of countries working with China to support international use of the RMB," Hockey said, " Australian banks and their Chinese counterparts have worked hard to promote direct trading of the two currencies."

Monthly trading volumes have increased more than seven-fold in the past year to 2.4 billion U.S. dollars from 324 million U.S. dollars equivalent before direct trading.

Last April during then Prime Minister Julie Gillard's visit to China, both countries announced a direct exchange between the Aussie dollar and the Renminbi.The Australian dollar has become the fourth most traded currency on China's Foreign Exchange Trading System and "there is significant potential for this market to grow", said the treasurer.

With all of this information above. Those who are paying attention know something is happening with the U.S. dollar and it is not good. The rush to get an FTA agreement between Australia and China, with China, Australia opening up an international currency exchange in Sydney proves the writing is on the wall for the U.S. dollar.

The only questions left are: How much longer does the dollar have? How soon will Russia, China, Middle East, and Australia drop the dollar completely for trade between them?

U.S Debt six times greater than Official amount. Study shows U.S. is 70 Trillion in Debt Not 16.5 Trillion

We all know when TARP was approved in 2008 and they said it was going to be 700 Billion in bail outs for the banks, how it was really many times over that.   We also know how the Federal Reserve has been secretly bailing out banks around the world.  We of course know the world Truth is not something the Fed nor the government has any concept of, as every word that comes out of their mouth is a Lie!

Well it seems that there was a study done on the debt of the U.S. and it is yet another area they have lied about.

The study shows that the debt of the U.S. is not the official 16.8 Trillion but actually 70 Trillion.  If this is the case we are Greece and Cyprus many many times over.

The United States has accumulated over $70 trillion in unreported debt, an amount nearly six times the declared figure, according to a new study by University of California-San Diego economics Professor James Hamilton.

The unique aspect of Hamilton’s study  is that he examines federal debt that has not been publicly released, specifically the government’s support for “housing, other loan guarantees, deposit insurance, actions taken by the Federal Reserve, and government trust funds.” 

This fact is disturbing to say the least.   If the dollar stops being the petrol dollar and countries completely drop it for the Yuan as the Reserve currency, we will be Zimbabwe on steroids.  Imagine how overnight gas could go from $4 a gallon to $20 and increase from hour to hour.

Will that happen?   At some point I believe other countries will tire of losing their value of money through the dollar.

We are in a time where people need to start waking up and seeing the Truth in every situation.  It is time for people to protect themselves by buying items that will endure and preserve their wealth.

Got gold and silver?  Yeah, those very manipulated commodities that those in power don't want people to buy and have done what they have to discourage it.

Russian PM Medvedev, berates EU Chief. Moscow no warning of Cyprus levy. Russia may reduce holdings of Euro to Gold!

I had written that Putin has become the most powerful man in the world due to how the EU has handled Cyprus.  The fate of the Euro could be in the Russian's hands.  What will they do with it?   The talks between the Cyprus Finance minister and the Russians have gone no where, from all reports.   But is that simply the poker hand being played by Russia?  In the mean time the EU has set a deadline of Monday for Cyprus as the "do or die" date.  


Where does it really start getting interesting?

Russian Prime Minister Dmitry Medvedev berated the EU chief for the handling of Cyprus.  It appears, Russia was not given a warning on how the ECB planned on levying the deposits in Cyprus as part of the bail out. 

What else did he do when berating the EU chief?  He threatened to reduce Russia's holdings in the Euro.  

Now think about that one.   The highest stakes poker hand is being played right now between Russia and the Western Bankers.  The Western Bankers had thought they would be sly and get billions of Russian money.   

Besides all the Russian 'mob' money we have heard about in Cyprus.  I have found that Russian government entities use Cyprus too for their banking.   So it is not just mob money, but above board Russian government money that would be stolen by the EU.   

Portion of article linked:

Russian Prime Minister Dmitry Medvedev humbled European Commission chief Jose Manuel Barroso in public remarks on Thursday (21 March) over the EU's handling of Cyprus.

Speaking alongside Barroso at a conference in Moscow, he called the EU's original Cypriot bailout idea "to put it mildly, surprising … absurd ... preposterous."

He upbraided EU institutions for failing to give Moscow due notice of its decision.

Earlier the same say, he told Russian newswire Interfax that he is thinking of reducing Russia's holding of euro-denominated currency reserves.

In a sign of broader Russian upset, Leonid Grigoriev, an academic and a former Russian deputy finance minister, told a separate news conference that Russian money is no longer safe anywhere in the EU.

We know Russia is pissed.  Yet we are hearing nothing is coming from the talks between Russia and Cyprus.  Is that just part of the game?  The ECB is showing their desperation now by giving a time line to Cyprus.  That time line, if you think about it, is to Russia too.  Russia has a huge stake in what happens to Cyprus.   So they are all calling each other's hand and raising the stakes with those hands. 

I have been going to Cyprus online News sites and reading all the local articles besides the comments from the Cyprus people.   

But I found a cryptic type blurb in an article from the financials:

Russia is supposedly reconsidering the EUR in the structure of its gold and forex reserves in light of the Cyprus situation – an undertone threat in retaliation to European authorities’ obsession with Cypriot Russian deposit accounts.

Medvedev did not mention Gold in his berating of the EU chief Barroso, when he threatened to reduce their Euro holdings.  Yet the Forex writer has the reduction going to Gold.  Where did he get that information?  

The situation is obviously very fluid.  But Putin is not dumb and I firmly believe there is a "Plan A" on Russia's end with Cyprus, but he has to let the EU show how they are willing to steal everyone's money which will cause more panic at the Western Banks.  

I firmly believe this is the Highest stakes poker game ever played.  One hand is Russia and the other is the EU and Western Bankers.  

Questions to know who may win: 

 Who has been accumulating Gold and actually has it in hand, without leasing it out?  Then who only pretends there is gold, where there is none?  

Who is printing money to keep the fake economy going and the banks 'looking' strong?  

Who is not printing money but actually has been creating an economy without using the dollar and Western Banking?    Hint:  Russia, two years ago began getting rid of Western Bankers in the country. 

Portion (article from 2011):

 The Kremlin has driven out some of the biggest Western retail banks and now has two tanks on the investment-banking lawn,” said Eric Kraus, an independent asset manager in Moscow who previously worked as a strategist for Otkritie Financial Corp., a brokerage partly owned by VTB. “Sberbank’s arrival will make the competition nervous because VTB’s investment bank almost destroyed Deutsche Bank in Russia.”

What country has created a tight relationship with China and they now trade between each other without the dollar?  

Which China would not get involved with the Euro and bailing it out nor investing in it and it's currency has been being called a "Global Reserve Currency".  Besides the fact that China has been buying all the gold and silver it can and keeps all it mines in the country. 

Look at the big picture, connect all the dots.  What two countries (Russia and China) have forged a strong relationship with each other and have stayed out of the EU investments over all.  In the meantime the Yuan has begun trading internationally and both have doubled or more their gold holdings.  

Has the time come to let the Western bankers fall apart?  Has the time come to let Gold and Silver prices be free of the strangle hold of manipulation?  Are they ready for it?  Will this be their own surprise attack upon the Western world/bankers as the bankers tried to surprise attack them?   

So.... in looking at it all together, I definitely see who has positioned themselves for the future and thought years ahead, compared to the scrambling from one debt crisis to another and printing money to make it appear 'all is well.'   

Mind you, this is a World war being raged but it is not with guns, but hidden hands and what is in them.  

The biggest question of them all:  

Are Russia and China ready to let it all fall down?  Have they completely accumulated/ positioned to let the gold prices ride to infinity and the rest of the world burn?



Update - 3/21/13 - Germans have a Naval Port agreement in Cyprus that can be broken with 3 months notice.  Russia wants it. 

UPDATE 3/26/13 - Jim Willie Interview about Cyprus and inside information

China increasing Saudi Arabia oil imports by 11% in 2013. Joint 10 Billion venture in Saudi Red Sea Coast. London begins Swaps of Yuan.

I have been keeping my eyes on China.  I believe watching what is happening there will give us a clue when the dollar will be dropped for the Yuan as the Global Reserve Currency.  I also believe it is due to Saudi Arabia staying with the dollar as oil trade (Petrol Dollar) as the reason why the dollar is still the official reserve currency. 

Ever since the 2008 crisis, China has been positioning itself and it's currency to be the Global Reserve Currency.  The BRICS began trading in the Yuan between themselves last year.   Australia is trading with China in the Yuan.   China does things slowly but surely.

I have been writing about China and what they are doing the last couple of weeks.  From the expectation of their demand for gold outstripping the supply by 2015,  IMF using the words and confirming "Global Reserve Currency" for the Yuan, and China, itself using the words "Global Reserve Currency" for the Yuan.   All of this information was just in the pass couple of weeks.

I found information in Arab news, China will be increasing their oil imports from Saudi Arabia this year by 11%.  They will be importing 120,000 more barrels per day than in 2012 to be 1.17 million barrels per day, from Saudi Arabia.

To give you an idea what the U.S. imports from Saudi Arabia, I found that information here. 
The U.S. imports approximately 1.319 million barrels a day (from Nov 2012 info) from them.   In November, U.S. imports decreased 38 thousands barrels from the month before.   Here are facts about Saudi Arabia and their oil business overall. 

If you look at the numbers China is catching up with the U.S. in their imports of oil on a per day basis from Saudi Arabia.  When you look a the numbers over all, you can see the U.S. has stayed steady and has had some declining oil demand compared to China having increasing oil demand.  

Why look at all of this together?  Why try and analysis what China and Saudi Arabia are doing?  

To me, those two countries are the key to the dollar demise.   They are countries to watch very closely and read in-between the lines in what new business and joint ventures they are doing together.  To me the smart thing to do to know what may lie just ahead and to position yourself for the future by getting hints, is to dig into what is happening with China and Saudi Arabia.  


Here are portions from the Arab News article: (this was written in December of 2012)

BEIJING: China’s crude oil imports from Saudi Arabia are likely to rise about 11 percent next year (2013), faster than this year’s growth rate, as refiners lift output in anticipation of an economic recovery and an increase in fuel demand, industry officials said.

China, the world’s second-largest crude consumer, is expected to buy about 1.17 million barrels per day (bpd) of Saudi oil next year, 120,000 bpd more than this year’s contracted amount. The figures are based on estimates by industry sources with direct knowledge of the supply situation.

China, which imports about 5.3 million bpd of crude a year, is Saudi Arabia’s third largest customer after the US and Japan. In the year to October, imports from Saudi grew 8.6 percent on the year to 1.06 million bpd, compared to growth of 12.6 percent in 2011. 

China sees Saudi Arabia, the world’s top oil exporter, as a strategic partner capable of providing stable supplies, and the state energy companies of both nations are in a $10 billion joint venture to build a 400,000-bpd refinery on Saudi Arabia’s Red Sea coast. 

China’s crude oil demand is one of the factors propping up global crude prices, at around $100 per barrel . This year, China’s oil demand is forecast to grow just 2.8 percent in its slowest pace in more than a decade, the International Energy Agency says, due to a slowdown in the economy, but there are signs of a revival next year. 

Sinopec Corp, Asia’s largest refiner, would take in more than 80 percent of the total Saudi supplies to China. China’s No.2 refiner, PetroChina, and state-run Sinochem Corp, will use up the rest, the sources said.

“Sinopec’s imports of Saudi crude have been increasing steadily over the past years and are expected to rise further as Sinopec’s refining capacity will rise steadily over the next few years,” said one Chinese trader.

All of the countries are upset with the U.S. for printing dollars in the billions every month.  There are currency wars happening around the world, even though countries came out of the G20 meeting in Russia this last weekend saying "No Currency war."  

Portions:

"We have not seen any such thing as a currency war. We've heard currency worries, not currency wars," IMF Chief Christine Lagarde said at the forum.
"I see no serious grounds for currency wars but the crisis made all countries fear national protectionism. Some countries attempted to heal the crisis with money printing and this lead to debt troubles."

 This makes analysts say that it’s too late to renounce currency wars as they are already in full swing, says Mikhail Delyagin, the head of the Institute of Globalization Problems.

"These wars are being waged for years and everybody seems to have forgotten about their main player - the US. America is great at devaluating its dollar and, thus, hampering other traders. It’s a zero or even a minus-sum game as this time a participant's loss is greater than the other participants’ gain. And the main thing is that the participants keep changing places."

China is making the Yuan a Global currency very slowly and here is a good explanation why. 

"If the currency is regulated by the government not by the situation on the market it cannot function as a global currency in economic relations. In order to make it a global currency it is necessary first of all to turn it into a market currency. If it happens the Yuan rate will double in comparison with its current rate and the competitiveness of Chinese goods will see a drastic decline."

They are positioning themselves for the Yuan to be a traded currency.  Another major step was just taken in London this week.  

Small portion:

A BANK of England pledge to help London become a global trading center for the yuan has stirred talk of a revival in the city's fortunes, similar to the explosion of the US dollar market in the 1960s and 70s.

In what many bankers saw as a pivotal move, the central bank said last month it was ready "in principle" to adopt a currency swap line with the People's Bank of China, providing a two-way pipe to the city as the still-unconvertible yuan starts to emerge as a world reserve currency.

Britain would become the first major developed economy to install a currency swap line with China, replicating existing arrangements available for the dominant freely-traded currencies such as the dollar, euro and yen.

China has agreed swap lines with more than 15 other countries but these tend to be emerging economies that have natural resources or goods used in manufacturing to export. The list does not include major industrial powers such as the United States,euro zone countries or Japan.

However, in a deliberate push to internationalize the yuan, or renminbi, China has beendeveloping an offshore market for it, as a precursor to allowing global firms, banks andasset managers access to its domestic market.

So, are you reading between the lines here?  London has just begun Swap lines with the Yuan.  Last year the CME group began trading the Yuan in Chicago. 

It is simply good sense to watch everything going on with China and the Yuan and to pay attention to all of their business in Saudi Arabia.   The facts are... we are not going to be told a few months before when Saudi Arabia begins trading directly with China in the Yuan.  It will be an overnight event/statement.   It doesn't seem that China is quite ready for the Yuan to be the total reserve currency at this time, but they are definitely working that way.  When it happens they will have protections in place that will not blow up their trading balances around the world.   They are very careful and know exactly what they are doing.  

When they have everything in place, we will not be warned in advance.  People in the U.S. will wake up, one Monday morning to the shock of the dollar being replaced around the world by the Yuan.  That day the dollar will go "Zimbabwe."   It will be a catastrophic event in the United States as the rest of the world breathes easier and can use a 'gold' backed currency to trade with.  But to those paying attention and not being distracted by the fake news on MSM, they will not be shocked and have already protected themselves for the eventual outcome.  

People need to stay paying attention to what is happening in China.  I will be watching every day for news out of that area and their trading partners to get hints on when the "Big" day will arrive for the Yuan.  We will know that day, when Saudi Arabia makes an announcement about how they will continue trading oil and in what currency.

A little extra news tidbit from Russia.... the manipulation of Gold prices and how it is ready to surge.