USA government debt ceiling

Zenaan Harkness zen at freedbms.net
Wed Oct 21 02:06:40 PDT 2015


On 10/21/15, Juan <juan.g71 at gmail.com> wrote:

> 	The chinese government isn't moving away from fiat although
> 	there seems to be rumours of them linking the yuan to gold
> 	somehow.

"September 10th, 2015: China’s Shanghai Gold Exchange announces that
physical gold bullion will be allowed to be used as collateral on
future’s contracts, beginning September 29th, 2015. “This development
is an important one for the gold market and is bullish for gold. It
shows, once again, that gold is slowly but surely becoming a cash
equivalent and as money again. Gold’s re-monetisation in the
international financial and monetary system continues.”
"

from here:
http://themindunleashed.org/2015/10/part-3-20-more-signs-that-the-global-elites-ship-is-about-to-sink.html

I may have posted the following a while back, not sure: Russia Reserve
Bank buys the majority (all?) of internal/Russia mined gold, most/all
of internal consumer gold is imported; the internal production is
roughly 20 tonnes a month, and I think Russia's reserves are around
1300 tonnes at this point. This is just the publicly official amount,
real amounts may be different.

China is stockpiling gold similarly rapidly.

It certainly goes hand in hand with their evident intention to jump
ship off the petro dollar, with BRICS, AIIB, SCO, EEU etc. And with
the US govt now 6 months bankrupt, without a further extension of
emergency funding measures and without an increase in the debt ceiling
we will see the full reset to some new "US reserve note/fiat" on or
shortly after October 30 (when the USGov next assesses their emergency
funding/ debt ceiling situation). Frankly, now that there is so much
selling of USGov securities:


Also:

(Feb 20 2014)
http://www.dailywealth.com/2669/the-chinese-are-selling-us-debt-and-buying-gold

Russia Shorts the Dollar, Bets on Gold
http://russia-insider.com/en/politics_business/2014/11/17/11-36-00pm/putin_biggest_gold_bug
"Sanctions have stalled Russia gold exports enabling the central bank
to add to its reserves on the cheap"

China and Russia are Finally Dumping US Treasuries
http://russia-insider.com/en/2014/12/16/1938

Russia Sells More US Bonds, Buys More Gold. De-Dollarization Marches On
http://russia-insider.com/en/2015/01/19/2552

Russia Dumps a Fifth of Its US Treasuries, China Reduces Holdings to a
Two-Year Low
http://russia-insider.com/en/politics/2015/02/20/3709

The PetroYuan Is Born! Gazprom Now Settling All Crude to China in
Renminbi (11 Jun 2015)
http://russia-insider.com/en/petroyuan-born-gazprom-now-settling-all-crude-sales-china-renminbi/ri7924

http://www.bloomberg.com/news/articles/2015-08-27/china-said-to-sell-treasuries-as-dollars-needed-for-yuan-support
(China selling down USD reserves at $40billion per month, ongoing,
with the odd larger spike)

"China dumping Treasurys? Here's what you must know"
http://www.cnbc.com/2015/08/28/china-dumping-treasurys-heres-what-you-must-know.html

And a very recent commentary:
http://www.cnbc.com/2015/10/14/what-china-selling-us-treasurys-really-means-commentary.html
which interestingly concludes interestingly "In other words, the world
is not choking on U.S. debt, instead, there is a relative shortage of
it."

We'll see in time. I have no doubt they (USG/Federal Reserve Bank) can
QE (print money) their way for another round or three, the only
question is what is in their (maximal) interest - reset now, or QE
again.


> 	As to common people in china, maybe they are buying more
> 	bitcoins (and gold?), but the amount of fiat that's been turned
> 	into btc isn't exactly big, I would guess. So, saying that the
> 	chinese are shifting into bitcoin seems overly optimistic.

"Diversification" in the face of a soon to collapse world reserve
currency, USD, makes sense though.

http://www.zerohedge.com/news/2015-10-09/another-petro-state-throws-towel-last-nail-petrodollar-coffin

Z




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