GOLD TRADE NOTE – commercial global trade payment
The suspicions are ripe and rabid that China is using the Gold Trade Note (GTNote) in their crude oil purchases. Nothing can be proved, all done surreptitiously with large scale payments made, like with the Saudis and other Gulf oil monarchies such as Qatar and Oman. Significant RMB currency has shown up on the ARAMCO balance sheet in recent months. In fact, the volume exceeds the British Pound and Japanese Yen ledger items together. The RMB item was not present a year ago. It would make sense that China also uses the Gold Trade Note with oil purchases from Iran. These two nations are expanding their barter facilities, like with Import-Export Bank functions, and might underpin a growing volume with the GTNote itself. Their motive would be to advance the Gold Standard, indirectly in the King Dollar’s face. The entire Belt & Road Initiative (aka One Belt One Road) is to conduct trade outside the US Dollar.
BASEL-3 RULE CHANGE – gold as countable asset in ratios
The rule change has opened the gates. The major central banks and the secondary central banks are deploying closely aligned financial firms to go out and buy Gold bullion while selling USTreaurys. This is all being done in secrecy, and kept off the balance sheet. In the meantime, the same dutiful agents of the banker cabal decry, denigrate, and deny the value of gold. They are grand hypocrites. These many central banks are collecting Gold for the big rise in its price, which might tend to save their fat hind parts during the crisis that builds. Their FX paper will be shredded while their newly placed Gold will enjoy a fast rise on the balance sheets. What they say is usually 180 degrees opposite for what they actually do. They want the public to be on the opposite side of their movements always.
PANDA BOND ISSUANCE – gold backed sovereign bonds
A bond priced in Chinese RMB terms defines a Panda Bond. They typically are for sovereign debt issuance, with some high profile corporate bonds at times. This is the newest of the four legs to the Gold Standard implementation. The astute analyst can infer a gold role in these Panda Bonds, which heretofore has not been admitted. This golden leg is analyzed in the June Hat Trick Letter to be posted very soon this month.
REGIONAL GOLD CURRENCY USAGE – decentralization
When Malaysian Prime Minister Mahathir announced the cooperative venture to use a regional gold currency in order to settle bilateral trade obligations a few weeks ago, he put his life at risk. The very same initiative announced by Japan was quickly followed by the Fukushima attack, called an accident in the West, but called an attack all through the East. Expect the entire Pacific Rim to climb aboard the regional gold currency for settlement of trade payments, which has yet to take shape or to be named. The Jackass expects Malaysia to be joined by Indonesia, the Philippines, Singapore, Thailand, even Taiwan, possibly Hong Kong. The key to this regional instrument for trade payment will be the absent participation of China. They might direct the movement from behind the curtain...
- Source, Jim Willie via Goldseek
