Are they tired enough?…” whether it is this weekend or not, a re set is coming and this will mean a redistribution of wealth.”
By: Bill Holter
GoldSeek.com
Wednesday, 24 February 2016
We talked yesterday about the upcoming G-20 finance meeting, I said I believed it would not be “benign”. Many readers have questioned why and to paraphrase “rarely has the G-20 made important announcements or decisions, why would they do this now”? We’ll get to this shortly.
I believe the global finance system is coming to a very rapid head and many major participants are displeased with using the U.S. dollar. At the very top of this list is China. Quietly China has announced http://www.bloomberg.com/news/articles/2016-01-11/pboc-s-ma-sees-stable-yuan-as-peg-shifts-to-basket-from-dollar and commented further they no longer plan on strictly pegging the yuan to the dollar. Instead they plan to peg their currency to a basket of other currencies. They have indicated they do not plan to devalue the yuan as markets worldwide were selling off on this fear.
Are the Chinese being truthful? I believe they are speaking out of both sides of their mouth but can support either case, let me explain. If you will notice, many foreign currencies are trading near lows versus gold (the equivalent of being devalued). Another way to say this is gold is trading close to all time highs in many various currencies. For the yuan to be pegged to these depreciating currencies would mean the yuan will simply go with the flow so to speak and trade down against gold. On the other hand, we have the trade versus the dollar. In this case the yuan has stalled its gradual strengthening and has instead weakened. This move to change the peg by the Chinese has giant implications but very little has been said in the press to this point.
The Rest…HERE
