Monday, October 24, 2016

China Moves Forward With 
Its De-Dollarization Strategy
Mises essay highlights the increasing accumulation of gold by China's central bank, & China's moves for its currency to be included in the IMF basket of top-tier currencies .. "It now shares SDR status with the U.S. dollar, euro, British pound, and Japanese yen." .. implications on geo-politics: "China and Russia have mutual geostrategic interests in helping to promote de-dollarization. Toward that end, the two powers are engaging in bilateral trade deals that bypass the dollar. Annual bilateral trade between China and Russia has surged from $16 billion in 2003 to nearly $100 billion today. When China hosted the G20 summit in September, it will make Russian President Vladimir Putin its premier guest of honor. U.S. officials are none too pleased. They fear Putin aims to expand his global reach by forging stronger ties with China .. The Russians and the Chinese aren’t counting on cyber warfare to dethrone King Dollar. In addition to bilateral trade deals and strategic plays for regional economic dominance, the two powers are bulking up on gold. Over the past several years, Russia and China have each been adding massively to their gold holdings."
LINK HERE to the essay

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