Wednesday, December 31, 2014

China and Russia Financial Tools to Swap Local Currencies Now In Place

China and Russia have effectively switched to domestic currencies in trading using financial tools as swaps and forwards, as they seek to reduce the influence of the US dollar and foreign exchange risks.

The agreement signed in the end of October comes into force Monday, December 29, and provides a currency swap of CNY150 billion (up to US$25 billion).

The country’s Foreign Exchange Trade System will carry out similar transactions with the Malaysian ringgit and the New Zealand dollar.

From now on yuan swaps are available for 11 currencies on the foreign exchange market.

These countries are mainly from the Asia-Pacific region. Australia, New Zealand, Brazil, Singapore, Hong Kong, Argentina, and Malaysia which are actively involved in transactions with China.

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Billionaires George Soros and John Paulson increased Their Stakes in Gold

Billionaire investors George Soros and John Paulson increased their stakes in gold as gold prices are “on the cheap,” and rumors of a massive inflation storm are heating up.

Soros Fund Management more than doubled its investment in the SPDR Gold Trust (GLD) to 884,400 shares, a U.S. Securities and Exchange Commission filing for the quarter holdings showed.

Paulson & Co. increased its holdings by 26 percent to 21.8 million shares.

What do they know that most people don't?

Read More here

Friday, November 21, 2014

Trading Settlements between China and Russia in Yuan increases 800%

Settlements in yuan between China and Russia have increased ninefold in annual terms between January and September 2014, says the Chinese Ministry of Economic Development.

"The settlement in national currencies between China and Russia in bilateral trade amounted to about 2 percent in 2013. There has been a significant growth in 2014.

In particular, the use of the yuan in mutual settlements increased nine times in the first nine months of 2014." TASS quotes Lin Zhi, head of the Europe and Central Asia Department of the Chinese Ministry of Economic Development.

"About 100 Russian commercial banks are now opening corresponding accounts for settlements in yuan. The list of commercial banks where ordinary depositors can open an account in yuan is also growing."the official said.

Looks like Russia and China is going full steam ahead to bypass the use of the Dollar. Another sign of losing confidence of the dollar.

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The Netherlands Repatriated Half of their Gold from the New York Federal Reserve

The Netherlands just announced that they have repatriated half of their Gold held at the New York Federal Reserve. This is a significant event as it could be another sign of losing confidence of the US Dollar. Who would be next ? 

Watch Mike Maloney as he explains.

Monday, October 27, 2014

China Now Allows Direct Trading Between RMB and the Singapore Dollar

The Singapore dollar is now added to the China Foreign Exchange Trade System which facilitates transactions between the RMB and 10 other foreign currencies.

In the past, companies that wanted to convert a large amount of Singapore dollars to RMB or vice versa had to do so through an intermediate currency such as the US dollar. But now, this is no longer needed.

"This will lower foreign exchange transaction costs and encourage greater use of the two currencies in cross-border trade and investments," the Monetary Authority of Singapore (MAS) said in a news release on Monday.

"This is one thing which the market has been keenly anticipating and waiting for, which is direct trading between the Chinese yuan and the Sing dollar," said Mr Motasim Iqbal, head of Transaction Banking Singapore at Standard Chartered Bank.

"Customers stand to benefit most from the direct trading facility as they can expect lower FX conversion costs as well as faster payments and receipts for their transactions," said Mr Eric Lian, President and CEO of UOB (China).

Once again, this is but another sign of the growing predominance of the Chinese RMB and diminishing dominance of the US Dollar.

Adapted from Original Source

Tuesday, September 30, 2014

Singapore Kilobar Gold Contract Trading Going Live This Oct 2014

Here is another latest development and sign of continuous demand for physical gold. The new Singapore Kilobar Gold Contract will start trading on 13 Oct 14. The 25 kilobar exchange-traded gold contract will be the first of its kind to be offered globally. 

It aims to cater to the continuing strong demand for physical gold in Asia, according to the International Enterprise Singapore, the Singapore Bullion Market Association, Singapore Exchange (SGX) and the World Gold Council.

Saturday, September 27, 2014

Asia's First Gold Dispensing Automated Teller Machine (ATM) in Singapore

Singapore now has its first automated teller machines (ATMs) that dispense gold.

Two such ATMs were launched at Resorts World Sentosa and Marina Bay Sands in Singapore.

The  machines will dispense a variety of pure gold items. They ranged from one to ten grams gold bars.

The company Asia Gold ATM is planning to launch two or three more such ATMs in future around the small island.

Tuesday, September 23, 2014

Singapore became the largest offshore RMB clearing centre outside Greater China

Some recent updates in the news about the renminbi market in Singapore.

SINGAPORE — The Republic’s position as a key offshore Renminbi (RMB) market has received a boost with the launch of a new foreign exchange (FX) futures contract on the yuan...

Senior Minister of State for Finance and Transport Josephine Teo noted that total RMB deposits placed in Singapore at the end of June has exceeded a quarter trillion yuan, 84 per cent higher than the same period last year. RMB denominated loans including trade finance have also grown in tandem at 88 per cent to more than half a trillion yuan.

“In April this year, the Society for Worldwide Interbank Financial Telecommunication reported that Singapore had become the largest offshore RMB clearing centre outside Greater China, in terms of yuan world payments value,” Mrs Teo said in her speech at the BOC-SGX RMB Internationalisation Forum today (Sept 19)...

Monday, August 18, 2014

Crisis of Confidence in the Dollar is Coming

On August 15, 1971, a quiet Sunday evening, President Richard Nixon took to the airwaves, preempting the most popular television show in America, to announce his New Economic Policy. The government was imposing national price controls and a steep surtax on foreign imports and banning the conversion of dollars into gold. The country was in the midst of a crisis, the result of an ongoing currency war that had destroyed faith in the U.S. dollar, and the president had determined that extreme measures were necessary.

Today we are engaged in a new currency war, and another crisis of confidence in the dollar is on its way. This time the consequences will be far worse than those confronting Nixon. The growth in globalization, derivatives and leverage over the past forty years have made financial panic and contagion all but impossible to contain.

The new crisis will likely begin in the currency markets and spread quickly to stocks, bonds and commodities. When the dollar collapses, the dollar-denominated markets will collapse too. Panic will quickly spread throughout the world.

As a result, another U.S. president, possibly President Obama, will take to the airwaves and cyberspace to announce a radical plan of intervention to save the dollar from complete collapse, invoking legal authority already in place today. This new plan may even involve a return to the gold standard. If gold is used, it will be at a dramatically higher price in order to support the bloated money supply with the fixed quantity of gold available.

Russians Looks to China Union Pay as Alternative to Visa and MasterCard

Thanks to the Western Sanctions on Russia.  After the two American credit system payment companies froze accounts without notice in March, Russians looks to China UnionPay as alternative.
China UnionPay plans to have 2 million cards in Russia in the next three years.
Russia’s biggest banks - VTB- Gazprombank, Promsvyazbank, Alfa Bank, MTS, and Rosbank- are already making technical preparations, running tests on Union Bank cards.

Visa and MasterCard have 100 percent trust, but right now, there is no trust in the system, and many, even our clients, have shifted their transactions from American dollar and Euro to Yuan. They are eager to receive this card- we already have a big list of people waiting to get this card instead of MasterCard and Visa,” Denis Fonov, Deputy Chairman at LightBank, a small Moscow-based bank, told RT.

Saturday, June 28, 2014

No Exit For The Fed By Jim Rickards

Written by Jim Rickards

The Federal Reserve, the central bank of the U.S., is nearing the end of its ability to manipulate the U.S. economy without producing consequences worse that those it set out to avoid in 2008. The Fed has no good exits from seven years of market manipulation. If it continues its current policy of reducing purchases of assets, the so-called “tapering,” it risks throwing the U.S. into a recession. If it reverses course and pauses the taper and later increases asset purchases, it risks destroying confidence in the dollar among foreign creditors of the U.S.
Major creditors such as Russia and China are taking steps to insulate themselves from the potential for inflation in the near future if the Fed’s QE money printing programs continue.
Russia has been dumping U.S. Treasury debt since late 2013, partly as a result of fear of U.S. economic sanctions and partly out of concern about the fate of the U.S. dollar. Both Russia and China have been buying enormous quantities of gold to hedge against possible U.S. dollar inflation.

Excerpt from Original Article

Thursday, June 26, 2014

Singapore Stock Exchange to Launch Physical Gold Contract in September

The world’s first exchange-traded, gold contract will be created for the trade, clearing and physical delivery of the precious metal in Singapore. The contract will be the first wholesale 25 kilobar gold contract to be offered worldwide. The Singapore contract will have no price limits.

The World Gold Council, Singapore Bullion Market Association, SGX and four banks - JP Morgan, Scotia Bank, Standard Bank and Standard Chartered - are supporting the launch.

According to SGX President Muthukrishnan Ramaswami, he said that the launch "will enable the trading and clearing of the Singapore kilobar gold contract and establish a fully transparent price discovery mechanism for gold in this region".

 “This is a timely development given the increased requirements for reference prices to be transparent,” Trade and Industry Minister Lim Hng Kiang said in a speech at the London Bullion Market Association’s conference yesterday.

Tuesday, June 17, 2014

Singapore Launching Overnight Yuan Liquidity Facility in July

SINGAPORE — The Republic’s position as an offshore yuan hub is set to receive an additional boost with the launch of a facility to provide overnight liquidity as trade transactions using the Chinese currency rise.

The facility, offering up to 5 billion yuan (S$1 billion) in overnight funds on any given day to financial institutions in Singapore, will be launched on July 1, the Monetary Authority of Singapore (MAS) said yesterday.
Meanwhile, the People’s Bank of China Nanjing branch also announced yesterday that it would allow eligible companies and individuals in the Suzhou Industrial Park (SIP) to conduct cross-border yuan transactions with Singapore.
Singapore’s journey as an offshore yuan centre started in February last year when the People’s Bank of China appointed Industrial and Commercial Bank of China’s local branch here as the yuan clearing bank for Singapore.
Excerpt from Original Article

Thursday, May 22, 2014

Billionaires Dumping Stocks

"A handful of billionaires are quietly dumping their American stocks . . . and fast.
Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced its overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also sold its entire stake in California-based computer parts supplier Intel.
Paulson’s hedge fund, Paulson & Co., dumped 14 million shares of JPMorgan Chase according to a recent filing.
Finally, billionaire George Soros has sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.

So why are these billionaires dumping their shares of U.S. companies?"

Do you know why? Maybe good to know why.

Read Full Article

George Soros sells all shares of Citigroup, Bank of America and JP Morgan

The Wall Street Journal reported that “George Soros dumped his stakes in banks and went for tech and gold miners in the first quarter, according to a filing with the Securities and Exchange Commission Thursday. Soros sold his holdings in Citigroup (NYSE:C) , J.P. Morgan (NYSE:JPM) and Bank of America (NYSE:BAC)”

Does he know something that most of us do not know? Hmmm...?  

Wednesday, April 9, 2014

Who is Winning the Currency Wars?

Watch Mike Maloney as he updates about China buying most of the world's gold.  They are preparing to take over the reserved currency status.  Otherwise, why would they keep buying gold? To them, it is no longer a matter of IF but WHEN.

Chinese Yuan Near Reserved Currency Status

More than 40 central banks have invested in the yuan and a few others are preparing to do the same. This is putting the Chinese Yuan currency on the path to reserve status, Standard Chartered said.

"The IMF does not disclose the percentage of reserves held in yuan, but the emerging market countries' share of reserves in "other currencies" has increased by almost 400 per cent since 2003, while that of developed nations grew 200 per cent, according to IMF data.

Pihlman (of Standard Chartered) said "a great number of central banks are in the process of adding [yuan] to their portfolios".

"The [yuan] has effectively already become a de facto reserve currency because so many central banks have already invested in it," he said. "The [yuan] may become a de facto reserve currency before it is fully convertible."
Among the 23 central banks known to have yuan holdings, 11 are from Asian markets with close trade links with mainland China: Australia, Hong Kong, Indonesia, Japan, South Korea, Macau, Malaysia, Nepal, Pakistan, Singapore and Thailand, according to public records from either central banks' own statements or central bankers' interviews with the press. 

Isn't this a clear sign again that the US Dollar is losing its reserved currency status globally? Just look at what Central banks DO not just what they SAY.

Saturday, March 1, 2014

The Chinese Are Selling U.S. Debt and Buying Gold

By Dr. Steve Sjuggerud (Thursday, February 20, 2014)

"Specifically, we learned this week that the Chinese government shrank its holdings of U.S. government debt by $47.8 billion in December 2013, the most in two years. One message from this is that the Chinese government doesn't want to hold any more dollars than it has to.

In separate news, China imported, consumed, and produced more gold than any other country in 2013.

China overtook India to become the world's largest importer and consumer of gold, importing over 1,000 metric tons of gold that year (a truly massive amount).

China is also the world's largest producer of gold... nobody else comes close. Amazingly, China's gold production is still increasing... while the countries in the next three places (Australia, Russia, and the U.S.) are comparatively stagnant in their production.

So what does all this mean? Here's what it means to me:
  • The data shows more and more that the Chinese prefer gold to U.S. dollars. Chinese buying like this could help create a new price floor for the price of gold.
  • It's time to diversify some of your savings OUTSIDE the dollar and into China's currency. 
  • It's time to add to your gold holdings now – and hold for the long run.

Increasing Demand for Chinese Yuan Denominated Bonds

Bank of china
SINGAPORE — The local branch of Bank of China (BOC) has sold 3 billion yuan (S$619 million) worth of bonds, in a sign of increasing appetite in the city-state for investment products denominated in the Chinese currency...

The offer was 2.96 times oversubscribed, with 52 per cent of the investors from Singapore, 25 per cent from the rest of Asia and 23 per cent from Europe, BOC said.
A recent Reuters report shows that about 18 per cent of China’s total global trade is settled in yuan compared with 2 per cent in 2010.

Saturday, January 18, 2014

US Debt has Surpassed 17 Trillion Dollars

The US Debt has surpassed the $17 trillion dollar mark one day after President Barack Obama signed into law a deal to end the government shutdown to avoid default.  That's 17 + 12 zeros behind!

"The US debt now equals $17.075 trillion, according to figures the Treasury Department posted online on Friday...

The Treasury Department was forced under so-called “extraordinary measures” to borrow $400 billion beginning in May, in anticipation of an agreement between Congress and Obama.

“Usually Congress sets a borrowing limit, or debt ceiling, that caps the total amount the government can be in the red,” according to the report. “But under the terms of this week's deal, Congress set a deadline instead of a dollar cap. That means debt will rise by as much as the government spends between now and the Feb. 7 deadline.”

If the rate of spending continues as it has over the last five months, US debt may eventually by as much as $700 billion before it must apply for another increase to the debt ceiling... "

So as of now, US remains the largest debtor in the history of the world.  How much would it cost per year just to pay the interest of the debt? Can this go on without any dire consequence? What do you say?

Wednesday, January 1, 2014

Russian Banks Bought 181.4 Tons Of Gold In 2013

While the western central banks are selling gold, the Russians (with the Chinese) continues to pick them up in tons.
According to / by Tyler Durden on 12/31/2013  
"With headlines crowing of gold’s worst year since 1981 as a signal that the status quo is winning and proof positive that fiat-currency naysayers must be wrong, it would appear that the rest of the world’s central banks (and banks) have used the price depreciation to stack the precious metal. As Bloomberg reports,