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US threatens to ‘cut China off’ from dollar if it does not uphold sanctions against N. Korea

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posted on Sep, 13 2017 @ 11:46 AM
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All I have to add is that ALL x86 chips made by both AMD and Intel get polished in China. Cut of China and no new chips, there are no production facilities outside of China that takes care of the specialization they do.

As a matter of fact, they produce a lot of high tech items. Best to work with them rather than against. Made in China is how companys big like Walmart to small like moms and pops make their margin.

Make a shirt for $3 and sell it for $30. Imagine how much that shirt would cost if the price of manufacturing increased to $20?




posted on Sep, 13 2017 @ 11:47 AM
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originally posted by: dragonridr
This also benifitted the US economy as it limits China from currency manipulation. On the past they could decide what the currency is worth by tying it to gold they cannot devalue the yuan.


The gold-backed nonsense is from internet scammers looking to cash in when the gullible buy gold online. Every website making claims about countries implementing a gold-back currency all cite each other yet there is no discussion on any of the major financial sites or publications.



posted on Sep, 13 2017 @ 11:53 AM
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a reply to: AugustusMasonicus

Yep, the renminbi isn't a very attractive currency as of yet. But gold is, which is what makes this such a smart move. Russia, Iran, Venezuela... any other potential customer under the umrella of US sanctions?

Looks like they'll make quite the fortune with this.



posted on Sep, 13 2017 @ 11:54 AM
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originally posted by: cenpuppie
All I have to add is that ALL x86 chips made by both AMD and Intel get polished in China. Cut of China and no new chips, there are no production facilities outside of China that takes care of the specialization they do.

As a matter of fact, they produce a lot of high tech items. Best to work with them rather than against. Made in China is how companys big like Walmart to small like moms and pops make their margin.

Make a shirt for $3 and sell it for $30. Imagine how much that shirt would cost if the price of manufacturing increased to $20?
Automation kills your post, by literal pennies. The US is already confronting this issue through discussion.

Chinas cheap labor will also have to face that behemoth.



posted on Sep, 13 2017 @ 11:54 AM
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originally posted by: PublicOpinion
Yep, the renminbi isn't a very attractive currency as of yet. But gold is, which is what makes this such a smart move.


Except no country is using gold as a currency.



posted on Sep, 13 2017 @ 12:02 PM
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a reply to: kloejen

Here is probably a bigger picture of the dot's .

For several years it’s been known in gold markets that the largest buyers of physical gold were the central banks of China and of Russia. What was not so clear was how deep a strategy they had beyond simply creating trust in the currencies amid increasing economic sanctions and bellicose words of trade war out of Washington. Now it’s clear why. China and Russia, joined most likely by their major trading partner countries in the BRICS (Brazil, Russia, India, China, South Africa), as well as by their Eurasian partner countries of the Shanghai Cooperation Organization (SCO) are about to complete the working architecture of a new monetary alternative to a dollar world.
Currently, in addition to founding members China and Russia, the SCO full members include Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and most recently India and Pakistan. This is a population of well over 3 billion people, some 42% of the entire world population, coming together in a coherent, planned, peaceful economic and political cooperation. If we add to the SCO member countries the official Observer States—Afghanistan, Belarus, Iran and Mongolia, states with expressed wish to formally join as full members, a glance at the world map will show the impressive potentials of the emerging SCO. Turkey is a formal Dialogue Partner exploring possible SCO membership application, as are Sri Lanka, Armenia, Azerbaijan, Cambodia and Nepal. This, simply said, is enormous. journal-neo.org...



posted on Sep, 13 2017 @ 12:03 PM
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a reply to: AugustusMasonicus

And?


Grant Williams, an adviser to Vulpes Investment Management, a Singapore-based hedge fund sponsor, said he expects most oil producers to be happy to exchange their oil reserves for gold. "It's a transfer of holding their assets in black liquid to yellow metal. It's a strategic move swapping oil for gold, rather than for U.S. Treasuries, which can be printed out of thin air," he said.

asia.nikkei.com...

That's what I was getting at.



posted on Sep, 13 2017 @ 12:09 PM
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originally posted by: PublicOpinion
That's what I was getting at.


There isn't even remotely enough refined gold on the planet to make the tiniest dent in known petroleum reserves.

The 'source', Grant Williams at Vulpes, hawks gold investments regularly.



posted on Sep, 13 2017 @ 12:11 PM
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Please. All talk. If we ever even tried to make that move, China (who owns more U.S. Treasury Bonds than any other nation) would simply stop enjoying that ROI they get, and simply cash in.

And the dollar, along with the economy and the deficit all burn....



posted on Sep, 13 2017 @ 12:16 PM
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originally posted by: usernameconspiracy

...China (who owns more U.S. Treasury Bonds than any other nation)...


You meant owns more bonds after the United States and Japan, right?


...would simply stop enjoying that ROI they get, and simply cash in.


Explain to me how you 'cash in' a Treasury Bond ahead of its maturation date.



edit on 13-9-2017 by AugustusMasonicus because: Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn



posted on Sep, 13 2017 @ 12:39 PM
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originally posted by: chadderson
We are in real trouble.

We have an entire generation of spineless/brainwashed/skill-less softies... fostered by the 'you need college' agenda.


Ah yes the college thing, can't even work at a cell phone store without a college degree these days. And I doubt that most of thoes degrees are in anything to do with the communications field, my son who just started collage can do more with a cell phone than most of the people who work at the phone store.
On top of that he came home today 45 minutes early and said all they did was look at a few slides and did a worksheet and the teacher said that they were done for the day.
Why are we paying for this If they aren't teaching kids?
He tells me they are teaching them things that he learned in high school. What a crock.



posted on Sep, 13 2017 @ 12:55 PM
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originally posted by: FamCore

The U.S. gets something like 75 or 80% of our imports from China.

I bet China doesn't give a rats ass about our economic threats.



How can you say the first line and then say the second? Consumer based America IS China's economics...



posted on Sep, 13 2017 @ 01:55 PM
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a reply to: AugustusMasonicus




There isn't even remotely enough refined gold on the planet to make the tiniest dent in known petroleum reserves.


It's enough to offer US adversaries a way to circumvent sanctions ASAP, thus expanding the volume of trades piece by piece to the point of "major global influence".



“China needs a gold benchmark that reflects local market flows and reduces gold’s price dependency on the US dollar,” Roland Wang, managing director for China at the World Gold Council, an industry body, said. “An Asian-focused, yuan-denominated benchmark will significantly increase the liquidity and efficiency of the gold price discovery mechanism.”

Commodity pricing is increasingly moving to China, as trading has expanded in its domestic futures contracts. Six of the top 10 globally traded futures contracts are now on Chinese exchanges and prices from iron ore to copper are increasingly set in the country, which is the largest importer of almost all commodities.

This year, China’s first crude oil contract is expected to start trading. A number of exchange traded funds and other long-only funds that track commodities are also expected to start, according to Citi, including a fund based on copper and an Exchange Traded Fund tracking agricultural products under consideration by the securities regulator.

www.ft.com...


【The Long-term Goal】 SHFE will become a regulated, efficient, transparent, comprehensive and international derivatives exchange.
【The Goal for 2013-2017】 SHFE will become an Asian-Pacific leading exchange of commodity futures, options and derivatives products with a major global influence.

www.shfe.com.cn...

It's happening, innit?



posted on Sep, 13 2017 @ 01:59 PM
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originally posted by: PublicOpinion
It's enough to offer US adversaries a way to circumvent sanctions ASAP, thus expanding the volume of trades piece by piece to the point of "major global influence".


It still wouldn't be a concern for us as we are on the verge of becoming the world's leading exporter of natural gas and the two main spot oil prices are both in dollars and will remain that way. This is more show than go.



posted on Sep, 13 2017 @ 02:30 PM
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a reply to: AugustusMasonicus

Yeah, I wont argue with that.
Wait. It's of no concern that US sanctions could (and probably will) turn out to be de facto useless if not directed against China directly, which would boil down to shooting yourself in the own foot? That's highly intriguing.



posted on Sep, 13 2017 @ 02:47 PM
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originally posted by: PublicOpinion

Wait. It's of no concern that US sanctions could (and probably will) turn out to be de facto useless if not directed against China directly, which would boil down to shooting yourself in the own foot? That's highly intriguing.


I was referring to a gold-backed currency or the current gold-tied yuan as un-concerning.

As for sanctions I don't think it will get that far, if it does it damages both economies as we need China as much as they need us.




edit on 13-9-2017 by AugustusMasonicus because: I ♥ cheese pizza.



posted on Sep, 13 2017 @ 02:57 PM
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a reply to: AugustusMasonicus

I'm talking about the futures contract, I believe you're talking about something different.




The introduction by the Chinese of a yuan based - and gold backed - crude oil futures contract. But before discussing that in some depth, let's first summarize the already very bullish backdrop for gold.

(From sept. 6)

seekingalpha.com...



posted on Sep, 13 2017 @ 03:00 PM
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a reply to: FamCore


It isn't gold-backed, nothing is gold-backed, it's gold-tied which is completely different.

That source is erroneous, just like the other 'pro-gold' sources, the second sentence immediately jumps into the bullish gold soft sell. This alleged type of futures contract is never discussed on legitimate financial sites like Forbes, the WSJ or Money.




edit on 13-9-2017 by AugustusMasonicus because: Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn



posted on Sep, 13 2017 @ 03:06 PM
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a reply to: AugustusMasonicus

I wasn't aware of the distinction between "gold-tied" and "gold-backed".

What about back in the day when our US notes were exchangeable for gold or silver (gold & silver certificates) - would that be considered "gold-backed" or still no?



posted on Sep, 13 2017 @ 03:36 PM
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originally posted by: FamCore
I wasn't aware of the distinction between "gold-tied" and "gold-backed".

What about back in the day when our US notes were exchangeable for gold or silver (gold & silver certificates) - would that be considered "gold-backed" or still no?


Up until Roosevelt took us off the gold standard those were fully convertible gold backed notes meaning the Treasury had to have on hand enough gold (or silver) to meet the denominated face value of the currency in circulation. Gold-tied means the value of the currency is tied to the spot price of gold to help set the valuation of the currency. That would have been the case for the dollar until Nixon changed that in his administration to the system we have in place now.

There is no way any of the countries with huge economies like ours of China's could ever do a convertible currency, there just isn't enough refined gold on the planet.




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