At Rory’s prescient behest, we have been way out in front of the curve on the Silk Road and on the issue of China using the IMF to push aside the dollar as the reserve currency. Casey Research finally caught up with their own Silk Road piece – more than a year after the Shadow of Truth was chatting about it.
Rory’s Daily Coin has been all over the restructuring of the IMF’s SDR, something on which the mainstream and alternative media has been conspicuously silent. As Rory reports below, the IMF has approved China’s issuance of an SDR-denominated sovereign bond issue:
This is a major first step in delivering a realistic blow to the dominance of the U.S. dollar as world reserve currency. It is no secret that China has been making international moves to make the Renminbi (RMB) a more attractive currency on the global stage. This latest move solidifies the RMB as a world currency.
You can read the rest of Rory’s analysis here plus I suspect we’ll chat about this in tomorrow’s episode of the Shadow of Truth plus we are going to rant about something that is on everyone’s mind: NBC’s abortionist coverage of the Olympics: Global De-dollarization Is Now Assured.
Hold SDR Bonds for a few years, get RMB and boom, China decides to back the RMB with gold. Way better than $14 trillion in negative yielding sovereign bonds.
Yea, I think this will be a winner for some big money folks.
Doesn’t that mean the “powers that be” will keep gold down long enough to get their dollar holdings into Gold or RMB….which means gold stays abnormally low for a few more years…eh? (btw..I’m not Canadian but love the band Rush). Or will there be a slow surge like water piling up at at big tree that has just fallen over a stream…thanks to some beavers or the elements…?
Hi Dave (and Rory),
Exellent work you guys do. Thanks for that. Today I stumbled upon a very interesting half year report of RIT Capital (press release version). Lord Rothshield is the chairman and had this to say as a commentary on the half year results
”“The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale.”
Interesting, it gets even more interesting though.
”In times like these, preservation of capital in real terms continues to be as important an objective as any in the management of your Company’s assets. In respect of your Company’s asset allocation…….. We increased gold and precious metals to 8% by the end of june.”
Rothshields increasing their gold long position and not US $. Another sign of the times?
We appreciate the feedback on our work. That is very interesting color indeed on the Rothschilds. I’m sure privately the family is buying a lot more gold.