Did the final war just start?
Aug 14, 2015
The US government has been trying desperately to hold off China’s currency from being included in the SDR basket of world currencies, in spite of China’s support by Germany, Britain, France, and Italy.
European members of the Group of Seven major industrialized economies - Germany, Britain, France and Italy - favor adding the yuan to the basket quickly. Japan, like the United States, is more cautious, officials have said.
The yuan has made huge strides since Beijing's last push for more formal international recognition of the currency, as global financial leaders were struggling to deal with the fallout of the sub-prime and banking crisis.
The refusal of the US congress to pass the IMF reforms of 2010 was not without consequence. The same article above says,
Earlier this year, frustrated by the refusal of the U.S. Congress to pass reforms to increase the voting rights of emerging markets in the IMF, Beijing announced it would set up its own investment bank, the Asian Infrastructure Investment Bank.
Despite pressure from Washington, which along with Tokyo, has declined to join the AIIB, most U.S. allies in Europe have signed up for the Chinese-led initiative, seen as a rival to the World Bank and Japan-based Asian Development Bank.
The AIIB disaster in March has greatly alarmed the US government, which had tried to pressure other nations to boycott the Asian Bank. Britain’s application to join the AIIB as a founding member in mid-March started an avalanche of nations joining AIIB. This was a major setback in the US’ financial war with China. Now the US has retrenched its opposition by opposing the inclusion of China’s yuan in the SDR basket.
On March 31, 2015 Treasury Secretary Jack Lew showed his opposition in a speech, saying,
“China must implement the ‘necessary reforms’ before it will meet the International Monetary Fund’s standards for inclusion in the basket of currencies that determine the fund’s Special Drawing Rights, Lew said in a speech Tuesday in San Francisco.”
In June the Chinese stock market began to crash and is now down about 30%. The Chinese are blaming the US government for this. They had learned from the 1997 Asian crisis how men like George Soros nearly destroyed the currency of Thailand, Indonesia, and of other nations by their manipulations. Such manipulations may seem unlikely to the average American on the street, but financial experts know that this is certainly possible.
On August 4, 2015 the IMF suggested delaying China’s inclusion until September 2016, saying,
“The International Monetary Fund said the yuan trails its global counterparts in major benchmarks and that ‘significant work’ in analyzing data is needed before deciding whether to grant the Chinese currency reserve status.”
It appears that the US government realizes it cannot hold off China forever, so it is now trying to postpone the inevitable for another year until September 2016. The problem is that the IMF only meets once in five years to discuss world currencies. Its last meeting was in 2010, and its next meeting is scheduled for October or November 2015.
On August 4, 2015 the US-dominated IMF publicly shunned China, saying that their currency was not ready to be part of the SDR’s (i.e., one of the world currencies).
It appears that the Chinese government finally had enough. This past week China devalued its currency three times in three days for a total of 4.6%. After the second devaluation, huge explosions ripped the city of Tianjin. Coincidence? Bill Holter does not think so. He comments on this in a posting on Jim Sinclair’s site under the title: Did the FINAL WAR just start?
Last week I wrote “The Rumblings of War” regarding the IMF rebuffing China’s entry into the SDR. This was followed up by “The shot heard ’round the world” on Tuesday commenting on China’s surprise devaluation. The purpose of this writing is to show you YES, we are in fact at war! …
Moving along, did anyone really wonder “why” or what (or better yet, WHO) was behind China being put off for acceptance as a component of the SDR? Then just two trading days later, China devalued their currency in a surprise move…followed by two more devaluations! Remember, the U.S. has been prodding China to strengthen their currency and has gone so far as to call them a “currency manipulator”! Now we see China doing the exact opposite of U.S. requests (demands?). World markets have been shaken, and at a time when liquidity is quite tight….
The Chinese are now forcing the dollar higher by devaluing their own currency. They understand the dollar is nothing more than a debt instrument, are they attacking and intending to destroy the dollar with its own strength?...
A too strong dollar can actually undermine itself and even kick off a derivatives chain explosion. Our banks and brokers are very thinly capitalized, can they withstand losses in derivatives caused by a currency crisis? … China has already accused Citadel (Ben Bernanke’s new employer) of creating the crash in their equity markets, is a currency crisis retaliation for their equity crash and public shaming by the IMF? If you understand how the Chinese think and also understand the works of Sun Tzu, Jim and I ask if China’s strategy is … “In order to destroy the dollar permanently make it stronger temporarily.”? …
This is where it gets weird or some might say “coincidental”. Did anyone see the explosion at the Chinese port city of Tianjin yesterday? https://www.youtube.com/watch?v=_92WaPxeqCs
“Yesterday” being one day after China devalued their currency? I am no rocket scientist and cannot say for sure, but does this not look like a nuclear explosion? Can someone out there explain to me in simple terms how a chemical explosion could look like this? As for the word “coincidence”, the CIA says there is no such thing as a coincidence!
Bill Holter’s analysis makes this a noteworthy date, but we will have to see how events line up in the next few months. As usual, because of the secretive nature of government espionage and their ability to make their actions look like accidents, it is difficult to prove one way or another. Even so, we should watch this situation carefully.