Would a Gold-backed Yuan bankrupt the US Dollar?
The US Debt Clock is now over $28 Trillion – with regular $2 or $3 Trillion Dollars increase every few months, how could the US ever pay back?
Peter Schiff “Madoff is Dead, but the US Government Ponzi Schemes Live On.” Ep 679 — April 14, 2021
The great federal-debt Ponzi scheme / July 5, 2021
Bernard Madoff, the Manhattan investment adviser who promised stellar returns to his A-list clients and instead defrauded them of more than $19 billion in history’s largest Ponzi scheme, has died.
With his promise to deliver steady returns through markets bullish and bearish, Madoff built such a sterling reputation that he had to turn some prospective investors away. The fraud collapsed in December 2008, when plunging equity markets prompted clients to seek more withdrawals making his scheme unattainable. His sons Andrew and Mark notified the Federal Bureau of Investigation that their father had confessed to them.
Like Charles Ponzi, whose 1920 con earned him a place in the annals of fame, Madoff seemed to deliver stunning returns to his clients, when in fact he was paying existing investors with money from new ones. Unlike Ponzi, who soared and fell in the course of one year, Madoff achieved a level of respect and acclaim among finance professionals — he was chairman of the Nasdaq Stock Market in 1990, 1991 and 1993 — and kept his ruse going for at least 15 years, even under scrutiny by the Securities and Exchange Commission.
“The money is gone,” Andrew Madoff quoted his father as telling the family. “It’s all been one big lie.”
Bernie Madoff died in prison at 82, but his spirit lives on in the US Government with a far greater Ponzi scheme — the Great American Debt. Now the Fed Reserve is trapped; it will either bankrupt the government or the American people.
The Federal Reserve has either to raise interest rates and bankrupt the Treasury to attract new debts to pay off old ones, or the Reserve doesn’t raise rates, let inflation spiral out of control like the hyperinflation affecting the German’s Weimar Republic from 1921 to 1923 and bankrupting the American people to ruin.
“How does the Reserve fight that inflation without bankrupting the US government?” Schiff asked “The answer is it can’t. My thinking is, if it can’t fight inflation without bankrupting the government, it won’t fight the inflation, which means it bankrupts the public because it destroys the value of the dollar.”
The People’s Bank of China could at any moment at their own choosing move into making a version of the Chinese Yuan, making China the first country in the world to have an exchange rate, which would be backed by gold held in vaults
. . . and the fall of the US Dollar?
Undoubtedly many Central Banks from various countries would see the benefits of safety to shift their reserves into Yuan. Further incentives include having a currency of international settlements if they have their trades with Iran, Cuba, Venezuela, Syria, Libya, Myanmar, South Sudan, Yemen, Zimbabwe, Turkey, Belarus, Russia and China (and the 138 countries in its Belts and Road initiative covering 4.4 billion people and about 40 per cent of global GDP) lie beyond the sanctions of the US government. Germany might find itself sanctioned if it goes with the Nord Stream 2 pipeline.
China’s own currency, the Yuan, is not backed by either global use nor gold but being persistently pushed by Russia, this could change. If these two forces shaking the global monetary system — digital acceleration and geopolitical rivalry with the US — were to come together, change could indeed come quickly and suddenly.
With the advent of smart logistics, just-in-time inventory management and just-in-time payments for goods in world trade, traders won’t have to write contracts in foreign currency for payments due months ahead, and buy expensive hedges against currency market fluctuations.
“$16 trillion of US dollar deposits may disappear,” says David Goldman for ASIATIMES. What it means is that $16 trillion of deposits from foreign countries, once they loose their deposit base function in banks, will return to flood the US economy, chasing the same amount of goods and services, thus igniting a hyperinflation immediately.
If not, the United States must borrow 15% to 20% of its GDP each year to finance its internal budget deficit, and also must attract about $1 trillion of capital inflows to finance its growing current account deficit with the rest of the world. Either the dollar has to fall or Treasury yields have to rise – or both. And cumulatively its interest payment year on year would be prohibitive. Either way it is suicidal!
“Be afraid,” warns David Goldman: “Be very afraid!”
“Woe to the crown of pride, to the drunkards of Ephraim, whose glorious beauty is a fading flower, which is on the head of the fat valleys of them that are overcome with wine!” Isaiah 28:1
Is China Preparing A Gold-Backed Yuan? Beijing Greenlights Purchases Of Billions In Bullion
ZeroHedge by Tyler DURDEN – April 16, 2021
In 2018, the Chinese launched a gold-backed, yuan-denominated oil futures contract. These contracts were priced in yuan, but convertible to gold at the Shanghai exchange, raising the prospect that “the rise of the petroyuan could be the death blow for the dollar.
Two weeks ago, The IMF reported that the global share of US-dollar-denominated exchange reserves dropped to 59.0% in the fourth quarter, according to the IMF’s COFER data released today. This matched the 25-year low of 1995.
And China had became the first major economy to unleash a Central Bank Digital Currency, cementing its trailblazer status in virtual currencies far ahead of other countries, after already recently experimenting with large-scale trials of actual payments by consumers, which was met with mixed results.
All of which sets the stage for the dramatic headlines that hit this bombshell as Reuters reports that China has given domestic and international banks permission to import large amounts of gold into the country,
The People’s Bank of China (PBOC), the nation’s central bank, controls how much gold enters China through a system of quotas given to commercial banks. It usually allows enough metal in to satisfy local demand but sometimes restricts the flow.
In recent weeks it has given permission for large amounts of bullion to enter, the sources said.
“We had no quotas for a while. Now we are getting them … the most since 2019,” said a source at one of the banks moving gold into China.
Around 150 tonnes of gold worth $8.5 billion at current prices is likely to be shipped, four sources said. Two of the sources said the bullion would be shipped in April. Two others said it would reach China over April and May.
The news sent gold prices soaring (in US Dollars).
The size of the shipments signals China’s dramatic return to the global bullion market. Since February 2020, the country has on average imported gold worth around $600 million a month, or roughly 10 tonnes, Chinese customs data show.
In 2019 its imports ran at about $3.5 billion a month, or roughly 75 tonnes.
Is this just the next stage that China, at any moment at its own choosing, would peg its digital currency to gold, and we would see the writing on the wall for the US Dollar as the global reserve currency . . .
. . . paving the way for a gold-backed yuan?
. . . and bankrupting the US Dollar?
“And this the writing that was written, MENE, MENE, TEKEL, UPHARSIN,” Daniel 5:25
Joel Huan
The Mystery of Ephraim 