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China to buy Chicago Stock Exchange

As the U.S. continues to lose infrastructure and other assets to foreigners holding trillions in dollar reserves, some of the most significant transfers are now occurring in the financial sector.  A few years back, Russia purchased Morgan Stanley's oil trade desk which provided them significant leverage in the global petrodollar system, and in the same year China purchased J.P. Morgan's headquarter building ...

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Removal of sanctions on Iran have suddenly made the Middle Eastern economy the new frontier

The nation of Iran has waited close to a decade to remove their U.S. imposed shackles and break out of sanctions that forced the oil producer to seek revenues from black market mechanisms.  But in just a few short months since Washington signed an agreement with Tehran to have their sanctions lifted, they are suddenly being courted by countries desperate to find a new market for their exports. And like Afri ...

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China dumps $108 billion in reserves as the Far East economy uses dollars to protect currency

In overnight trading, China experienced an equities meltdown following their largest devaluation of the Yuan since August.  And at the heart of protecting the RMB in this trend of currency intervention is a new report on Jan. 7 which shows that the Far Eastern economy dumped $108 billion in dollar reserves in the month of December, dropping their reserve totals from $3.438 trillion to $3.330 trillion. Much ...

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China stock markets halt completely after Yuan devaluation

It appears that the new Chinese circuit breakers came at just the right time as the Shanghai equity markets triggered a halt on Jan. 7, leading the Far Eastern power to close down the markets altogether after just 30 minutes of trading.  This is the second circuit breaker halt in three days for China, which implemented the market protection at the start of the new year. What appears to have been the catalys ...

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Fed publishes drastic fall in GDP forecasts, setting the stage for less than 2% growth for 2015

Recovery!  The mantra of the Federal Reserve and mainstream pundits parroting the party line.  But it appears that like poll numbers given prior to Presidential elections, when all the votes are counted, what was forecast for months leading up to the end of a cycle was much different than the actual outcome. For most of 2015 the Fed and big bank analysts predicted an annual GDP growth rate between 2.5 - 3%. ...

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End of Petrodollar? First Middle Eastern oil power to open Chinese currency hub

Since 1973, the dollar has held sway over the global financial system through its connections to oil, and with the Middle Eastern producers who sell it in American currency.  But as dollar hegemony has waned over the past decade, and as the U.S. has gone to war against any nation (Iraq, Iran, Libya) who has tried to sell their oil in currencies other than the dollar, members of OPEC have been seeking ways t ...

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Zimbabwe dollar? Welcome to the future of the Zimbabwe Yuan

On Dec. 22, one of the most infamous economies in the world over the past 20 years may soon be divesting themselves of dollar hegemony and moving over into the camp of the Chinese Yuan.  In a move dedicated towards strengthening both monetary and trade ties with the Far East power, Zimbabwe's Finance Minister said that very soon the Yuan could be used as one of many currencies within the African nation's ec ...

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Are foreigners moving into the safety of the dollar, or are they dumping it?

Over the past four months, it is estimated that China alone has dumped over $300 billion in their dollar based reserves, signalling a trend in which the Far Eastern economy is now using their treasuries to protect their own slowing economic conditions.  And with Japan, Europe, and the emerging markets all showing signs of recession rather than growth, one has to ask if the dollar's strength is actually base ...

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Thomas Jefferson was right again as Germany takes over Greek infrastructure because of debt

Founding Father Thomas Jefferson once said, "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."  And in a sad but interesting 21st century version of this p ...

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China’s Belt and Road initiative may even go as far as Mexico

China's re-creation of the ancient 'Silk Road' trade route across the Eurasian continents is more than a simply a super highway from South Korea to London... it is an organizational structure that is intended to both develop and operate trade and banking hubs in countries all along the global route. Known also as the Belt and Road initiative, the idea of an overland and connected seaward trade construct is ...

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China dumps more dollars, holds reserves at lowest level in nearly three years

As China continues to prepare and expand the Yuan for full internationalization, there is less and less need for them to hold massive amounts of dollars as a reserve for their financial system.  And while the Chinese central bank has rightly chosen not to dump their treasuries onto the market in one massive sale, their slow dissolution of their dollar reserves has the country holding the fewest it has held ...

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With new Chinese (Swift) system, yuan use in Japan has doubled in the last year

It is one thing when China's new internationalization becomes a part of the emerging market economies, but it is something very different when it begins to make headway into long-standing dollar strongholds such as Europe and Japan.  And with China's new found recognition as a global reserve currency in the IMF's SDR basket, and the creation just a few months ago of an alternative SWIFT (CIPS) system, that ...

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