Foster Gamble said:
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Let me just share a little bit of my research and my kind of knitting together of the various information that I’ve found…
China devalued the yuan. So what’s the effect of that? For them, it allows them to stabilize what was a dropping GDP and to scrape a lot of inflation out of their economy, as Russia was able to do when it dropped the ruble. It looks like bad news at first when a currency gets deflated, but if it’s been deflated that’s actually nature taking over. The deflation actually allows them to increase their exports as well because goods are cheaper coming from China with a lower currency. It also allows them to position themselves even better for the coming global currency reset. This imminent reset has been mentioned all the way to the top, even by Christine LaGarde, the head of the IMF.
China has actually referred to this devaluation not as a currency war, but as what they call “an exchange rate liberalization”. It’s basically beginning to free up the Chinese economy from U.S. domination and they’ve been taking lots of steps in that regard as have other countries, especially in the BRICS alliance. It allows the yuan to float more freely against the dollar and to help establish the yuan as a global reserve currency. The Bank of China itself said, “This will allow the markets to have more influence over the yuan exchange rate.” In other words, this is what the free market actually is supposed to be doing. But, as I mentioned, the U.S. has lots of reasons why they don’t want this to happen. A rise in the interest rates of the U.S. would expose U.S. government and banking insolvency and this would pave the way for the revaluation of the dollar down and other currencies that the U.S. is trying to prevent, or at least continue to stall, their revaluations.
Mind you, this is not the end of revaluation of the yuan. Chinese economists say their currency has ben undervalued against the dollar between 15% and 40% for many years. It’s rumored that China is pushing for at least a 10% overall devaluation of the yuan. Financial expert Peter Schiff, who is well-known for having accurately predicted both the 2008 crash and previously the 2001 tech bubble crash, has been saying very clearly, “Don’t think China is responsible for the crash recently in the U.S. stock market. It has to do with the actions of the Federal Reserve. The Chinese economy is far more dynamic and powerful than the U.S.” To the rest of us, this should actually be pretty obvious if we look because of the differing growth rates in each economy and the fact that China is our major creditor (the major creditor on the planet) while the U.S. is the biggest debtor in human history. That’s obviously not sustainable in a personal life or, ultimately, with nation-states.
Over the summer, China reported that they had accumulated another 600 tons of gold, increasing their supposed holdings to around 1,600 tons. I think that was done very carefully — just enough to indicate that they’re ready to play with the big boys in terms of gold reserves, but not enough to panic the world markets. Even traditional analysts say that China has been buying gold — at least 600 tons every three months — so the number is probably a lot higher of what they are holding and many put the estimates (even traditionally) at 10,000 tons or more. To put that in context, the IMF says they hold 90½ tons. The U.S. says it holds 8,133 tons. And, the U.S. has not been honoring requests for repatriation of gold from back in the 1970s with Nixon when he went off the Gold Standard because we couldn’t pay back France, and recently Germany requested their gold back and they gave them less than 10% and said maybe in 2020 they could get some more. The Dragon Family had loaned a tremendous amount of gold to the U.S. over the course of about 40 or 50 years and it was due to be repaid (I’ve talked about this before) on September 12, 2001, the day after what happened with the Twin Towers. (And don’t think that was any coincidence. A lot of the paperwork for that was held in the basement of Building 7, the one that came down without being hit by anything.)
In addition to all those numbers, I think anyone who has been following the history of the Asian Dragon Alliance probably has a pretty strong sense that these estimates for the holdings of China are ridiculously low. They have been gathering gold from around the world. They have been buying. They have huge veins they have been mining (and supposedly not reporting) for centuries. They have been playing the long game to be in a position of optimal strength when the world goes to an asset-backed financial system and it looks like that’s going to be happening soon and they will obviously be in a very strong position.
When the U.S. has been blaming China for cyber security breaches, for devaluing their currency, etc. and when they encourage the IMF to not let the yuan become a global currency, that was a major stirring of the hornet’s nest. That was poking the dragon right in the eye. That can be a humiliating thing for a proud people who have been working hard on building their economy and taking care of their people so retaliation could be expected for that, especially in terms of devaluation of the currency (which has happened) and dumping of U.S. Treasuries — in other words, beginning to withdraw from buying the loans of the U.S. Treasury. Sure enough, recently China dumped over $100 billion in U.S. Treasuries in two days and it looks like that’s just the beginning.
One more piece of this puzzle is that China has $21 trillion in sovereign resource reserves and they are in a position to invest that in the U.S. and other countries and they’re very actively doing that investing all over the world right now.
In addition, 19 countries at least so far have already switched from dollar to national currencies for energy purposes. So, what will happen next? We’ve laid out various possible scenarios in previous blogs that we’ve done, but to sum it up very simply (from my perspective), it’s either the U.S. is willing to collaborate with the BRICS alliances and the rest of the world and become a partner in a healthy, honest economy globally or we will be isolated and it will spell at least short-term catastrophe for the West as the dollar drops. The Dragon Family has offered to back the U.S. dollar with its gold. If we don’t accept that and the rest of the world goes to asset-backed currencies it’s obviously going to put us in third world status very quickly and isolated from the rest of the world.
It’s a paradigm moment. Can the status (so-called) “in charge” here be wise and humble enough to actually partner with the rest of the world or does this macho need to dominate spell catastrophe for the West?
Let’s look at the stock markets for a moment…
When the Chinese stock market dropped, it was portrayed in the U.S. as “see how weak the Chinese economy is.” Then, when our market dropped, the usual pundits, particularly in the mainstream, were quick to blame China for it. That doesn’t jibe with reality. What happened in China when their market dropped roughly 25%, was that would be considered a correction in our market. Their stock market had been up 149% in the prior year. That’s a net 125% gain for the last year in their stock market. That is, of course, not mentioned in the Wall Street Journal.
So what did China do about that? They created an alliance of brokerage firms that put close to $20 billion in a fund to buy stocks, they relaxed restrictions on buying, and they created a moratorium on IPOs. Do I think that’s a great idea? No. Those aren’t free market activities. China still has a very dominant government and they needed to stem the fall of the economy to keep the confidence of their people so they took these actions and it has at least stalled that correction. But ultimately, as in this country, China and every other country will ultimately need to go to the free market, which is what built the financial strength of the U.S. when it was a more free market and which also saved the economy of China from the disasters of communism under Mao, which had really essentially destroyed the economy.
The BRICS alliance (Brazil, Russia, India, China, and South Africa) has been clearly creating alternatives to the Rothschild/Rockefeller banking cabal Federal reserve system, which has been destroying the environment and destroying economies all over the world. Last Spring, we were told by a high-ranking member of the Dragon Family, that, in fact, most of the money that the Federal Reserve, the IMF, and the World Bank were using was borrowed from the Asians against their gold troves. Then, the same person told us in the Spring that because of the misbehavior, the catastrophes that the Federal Reserve has been creating, and the fact that they haven’t been paying back even the interest on those debts that the Dragon Family was going to disenfranchise the Federal Reserve’s capability to print money. That was a really big claim (last March, I think it was) and a month later, the then Fed chairman Bernanke announced the end of Quantitative Easing, which shocked the world and was further confirmation for us that these people that we are talking to from Asia do in fact know a lot about what they’re talking about, not just because of their research but because they’re in the thick of this. They’re actually in a very pivotal role.
From what we’ve been told (and the evidence seems to back it up), they have no interest whatsoever in creating World War III, so they have been creating the alternative. They have been inviting the U.S. into a good deal, a soft landing, and meanwhile creating an alternative gold exchange (the Asian Infrastructure Investment Bank, the Asian Development Bank). Other countries are invited into this and many, many of them are joining, but the U.S. has stayed away. Meanwhile, they have also been creating an alternative Internet and we were told that they have created an alternative to the “Swift System”, which is the international electronic transfer for funds system, which is now used all over the globe and it’s run and controlled in a very manipulative way by the Federal Reserve. So, of course, it’s been difficult for the Asian Elders to move significant funds for humanitarian purposes because it had to be moved through the Federal Reserve’s Swift System and it has been stalled, it has been stolen, etc. along the way so they stopped trying to do that until there is an alternative system in place or until the U.S. is willing to allow a free flow of funds. Publicly, I saw articles saying in September or October that it will be released, at the end of 2015 at the earliest. What we were told by the Dragon Family was that it was actually finished in the Spring and is gradually starting to be used. This is a major shift in power over the economy, globally.
I found a couple of quotes that were at least good news. I don’t know whether to, for sure, believe them or not, but it’s what I want to hear. We have to ask ourselves the question: If China is going to be in this powerful of a position in the world. If they hold most of the world’s wealth and they are such a significant leader in the BRICS alliance and the Western empire is falling, are we just going to go into the next new global regime under the thumb of China? I think we need to be very weary about that, but I found an article where they interviewed this man named Professor General Liu Mingfu and he declared that there are no imperialistic intentions. He said China has been invaded 470 times between 1840 and 1905 and the people there know that doesn’t feel good. It ultimately doesn’t work. It destroys cultures. It destroys human lives. It certainly destroys stability. President Xi Jimping recently said, “China is not trying to rearrange the architecture of global governance.” Instead, he said that should be decided by all countries. I’m not going to get into the whole notion of global governance, but at least having all countries participate in the conversation and being free and sovereign is a major step towards individual sovereignty across the world.