China’s Next Move in Becoming a World Power

…if China does? Will “trust” eventually shift from the U.S. to China?)” If China’s Yuan is accepted into the IMF’s SDR, China could very quickly open its gold vaults for the world to see – that is, if it’s been able to accumulate enough physical gold. I suspect that this will be the next big trigger for gold – and I mean BIG. Quick Opportunity Update If what I insinuated to in this Letter begins to r…

How the US Dollar Will Collapse

…nown, a more-than 30% stake in a 260,000-barrels-a-day plant owned by PetroChina Co. in China’s Yunnan province, the people said. PetroChina is a unit of state-owned China National Petroleum Corp.” Of course, this is all gearing up for the potential significant investment from China into the world’s largest oil producer, Saudi Arabia’s Saudi Aramco. Saudi Aramco just announced that they intend to go public in what would be…

The Truth About Russia, China, and the Battle Against the West

…idors, and the reason for American presence in those areas. But what about China? In China, many of the nations supported by the United States are based in the South China Sea. Recently, the United States has warned China to stop using “destabilising” tactics in its bid to claim parts of the South China Sea. U.S. Defense Secretary Chuck Hagel said that while the US had no position on the merits of the rival claims over the region, he a…

A Simple Solution to the World’s Debt Problem

…country devalues, another gets hurt. Especially China. The Rickety Rise of China China is responsible for much of the world debt that has accumulated over the last decade. In fact, as I mentioned in The Great US Debt Rotation, China’s total debt has nearly quadrupled, rising from $7 trillion in 2007 to $28 trillion by mid-2014. The amount of risk associated with China’s debt problem and extreme stimulus measures, combined with a rising…

The Truth About the Currency Wars

…region, including the Iran Daily and Trend News Agency said that Iran and China have agreed that China would pay in cash for the oil and gas it buys from Iran. China is currently the biggest buyer of Iranian crude oil, purchasing more than 440,000 barrels per day (b/d), but Tehran imports goods instead of receiving cash from these sales.” So what? What if China is going to be paying cash instead of goods to Iran? Remember when I wrote how C…

The Yuan as an International Currency and the Death of an Oil Giant

…r. It also announced last month that the Industrial and Commercial Bank of China (ICBC), China’s largest bank, plans to sell Renminbi-denominated bonds in South Korea. In Singapore, one of Asia’s primary financial hubs, China announced direct trading between the Renminbi and the Singapore dollar, marking another step toward internationalizing the Chinese currency, further removing the dependence of the U.S. dollar, and protecting itsel…

Why Oil Prices are Rising

…t amongst foreigners. A new Petrodollar, so to speak. For traders to trust China’s oil futures platform, China will have to back it with physical inventories. And that, of course, means China will have to buy a lot more oil.” So have the Chinese purchased more oil? Let’s find out. Via ABC News: “The world’s second-largest economy has become the top oil importer in April. The key reason? China is taking advantage of ch…

The Ultimate Nuclear Arms Race

…discussed the possibility of a new nuclear accord that could even include China? Well, China responded right away. Via Telesur earlier this month: “China will not participate in negotiations on any trilateral nuclear disarmament agreement with the United States (U.S) and Russia, the Chinese Ministry of Foreign Affairs said Monday. “We’re opposed to accusations from any country on arms control issues,” Foreign Ministry spok…

How China’s Problems Affect Canada

…and rising minerals exports to emerging markets, in particular Brazil and China. But both Brazil and China are now showing strong signs of trouble. Brazil has had over two years of lackluster economic growth while experiencing high inflation. China, while not experiencing the same levels of pressure, is once again in the spotlight on a number of factors that will likely impede world growth and commodity prices. China – An Even Bigger Bubble…

A Weapon of Mass Destruction: Currency in a Financial War

…ts own currency by increasing its own money supply, forcing inflation onto China.” – Hypothetically, China could unleash its U.S. treasuries in an open market, highly visible fire sale, in retaliation for the United States’ strategic devaluation. This would cause U.S. interest rates to blow up and the dollar to collapse on foreign markets, forcing a world of financial dislocation and hurt onto U.S. soil. However, this would also…

Will China’s Shadow Banks Cause a Global Financial Collapse?

…em. (Source: Moody’s, Danskebank) Already this year Moody’s has downgraded China’s credit rating, and fellow rating agency Fitch warned the company Baidu (China’s version of Google) is in danger of defaulting because it has been heavily involved in the shadow banking industry. Baidu currently has $25 billion yuan in WMPs as of April this year, more than double what it held last year. Fitch points out that Baidu wouldn’t necessarily go broke themse…

The Real Reason Behind the Asian Infrastructure Investment Bank

…17;s RMB could soon become a fully convertible currency, given the size of China’s reserves. But China isn’t holding its breath – and neither are many members of the IMF. While the spotlight is on what members will join China’s AIIB, the question every one should be asking is: “If the IMF has its SDR, what will the AIIB have?” Whatever it is, I bet it will include China’s RMB. That means participating nati…