China reaches liquidity agreement with BIS. The dollar increasingly sidelined, the globalist institutions increasingly powerful
Even the eastern nations, despite what one might think, are linked to the great international institutions, indeed they try to take control of them through agreements.
China is a perfect example of a country that is often falsely associated with "opposition" to globalism. In addition to representing one of the most oppressive regimes in the world, with Orwellian social credit systems, concentration camps, organ harvesting programs and vaccine passports, the CCP is also a long-time supporter of an IMF-controlled global currency system, as well as the last member of the basket of Special Drawing Rights (SDRs).
This accession is accompanied by many rip-offs, including China's obligation to issue large amounts of renminbi-based liquidity, mainly through debt instruments. This can be clearly seen in the Chinese national debt numbers from 2013 onwards. In 2013, when it became clear that China would indeed apply to be included in the SDR, the nation's debt obligations exploded . This is mainly due to the demands of the IMF, which China has anxiously tried to fulfill. In 2015, China met the IMF's debt requirements and was officially added to the SDRs in 2016.
This development has cleared up a couple of issues raised by the alternative business media regarding the ultimate fate of the US dollar and the future of global trade. First, the dollar's share in global trade would have declined, as it is now. This poses a large number of problems for the US in terms of inflation, because until recently the US economy was able to export inflation by circulating fiat currency overseas. As long as the dollar's world reserve status persists and as long as the dollar's share in global trade continues to grow each year, this model works. But if reserve status is declining, all the dollars held by foreign banks could go back to America, even if the lead time is long and the probability is low.
Second, China has shown that it has every intention of helping US-hostile central banks end the dollar's reserve status, but has no intention of breaking free from the larger agenda of a single global currency system under. global banks. The idea that China was "anti-globalist" turned out to be false.
The latest news from the Bank for International Settlements further confirms this reality.
The BIS has just announced a Renminbi-based liquidity pool arrangement with China's central bank. This liquidity pool will act as stimulus support for Asia Pacific countries and will be denominated primarily in Chinese currency. a liquidity pool is liquidity that is always available and made available to central banks to build reserves in the currency in question, reserves made available by other central banks. The announcement might seem pretty harmless to a casual observer, but the fact that it is a renminbi cash pool is what makes it attractive.
The BIS has long offered dollar-denominated liquidity deals, but the creation of similar Chinese currency options is new. The increase in liquidity was a key element presented by the BIS last year in discussions on the internationalization of the renminbi, and is already being implemented today.
Timing cannot be overlooked. There is currently an ongoing international economic conflict between Russia and NATO countries, and China has proven to be an important ally for Russia. China's RMB credit systems and cross-border currency exchange systems are proving sufficient to help Russia adjust to life without SWIFT. China is also significantly increasing its purchases of oil and other Russian goods. In other words, China, along with other nations like India, is making it possible for Russia to sustain itself without entering Western markets.
The International Monetary Fund and the World Trade Organization continue to have relations with Russia, and both the IMF and the BRI treat China as a respected member. Whether or not you agree with Russian or Chinese policies and actions is irrelevant. The point is that they always maintain their relations with the globalists. Countries and economic unions can fight big wars, with finance or with bombs and bullets, but the globalists are always in the background playing on both sides.
One has to ask what the ultimate goal is once it is understood that global banks are playing on both sides without being loyal to either side. The fact that the BIS and IMF help expand the Chinese currency in terms of global market share suggests that they want the dollar to erode and possibly even the US to decline. If the end game is a basket of global currencies controlled by them, then it makes perfect sense. The dollar has served its purpose, but now it's in the way, so the dollar has to go and China is more than happy to help.
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Article China reaches liquidity agreement with BIS. The dollar increasingly set aside, the increasingly powerful Globalist Institutions comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-cina-raggiunge-un-accordo-di-liquidita-con-la-bis-il-dollaro-sempre-piu-messo-da-parte-le-istituzioni-globaliste-sempre-piu-potenti/ on Tue, 28 Jun 2022 07:00:16 +0000.