Search Results for: china

China now has the world’s largest middle class, overtaking the US

China middle class Chinese girls shopping

China has crossed another economic threshold. The country’s middle class reached 109 million this year, and overtook the US’s for the first time ever, according to a Credit Suisse report released Oct. 13. China’s middle class is growing much faster than the US’s. Since 2000, China added 43.4 million middle class adults, …

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China launches yuan-based international payment system

Chinese yuan CIPS

China launched the first phase of its China International Payment System (CIPS) in Shanghai on Thursday, allowing cross-border transactions in the Chinese national currency, the yuan. CIPS’ first phase provides clearing and settlement services, according to the People’s Bank of China announcement. Its launch is said to remove hurdles to the yuan’s internationalization by reducing transaction costs and processing …

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China to dump the US dollar in oil trade

China crude oil yuan

China is planning to launch its own oil benchmark in October, similar to Brent and WTI, striving for a more important role in establishing crude prices. Unlike the Western benchmarks, the Chinese contracts will be nominated in the yuan, not the US dollar. Shanghai International Energy Exchange sent a draft …

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Citigroup braces for global recession, calls for QE in China

China QE Chinese yuan

China has bungled its attempt to slow the economy gently and is sliding into “imminent recession”, threatening to take the world with it over coming months, Citigroup has warned. Willem Buiter, the bank’s chief economist, said the country needs a major blast of fiscal spending financed by outright “helicopter” money …

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Stock market set for more volatility as China dumps US bonds

Stock market volatility US

From Filip Karinja, for Birch Gold Group Stock markets around the world faced immense volatility this past week. To begin the week, Wall Street was down 1,000 points on Monday’s opening bell. And trading in the single session was halted 1,200 times alone! In a market that typically only experiences a handful of halts per …

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Chinese stock market plunges more than 6%

Chinese stock market crash markets red yuan

Chinese stocks plunged on Tuesday as the yuan weakened against the dollar, reigniting fears that Beijing may be intent on a deeper devaluation of the currency despite the central bank’s comments that it sees no reason for a further slide. Concerns that companies may pull more money out of China …

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Ditching the dollar: Russia, China to create new gold market

Gold bars China Russia

While key Western banks are artificially restraining gold prices to breathe life into the diluted and devalued dollar system, Russia, China and other emerging economies are involved in “the genial move” to establish an entirely different gold market, F. William Engdahl underscores. Key central banks, particularly the Federal Reserve and …

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Chinese yuan accepted as collateral at the LME

China yuan

From Filip Karinja, for Birch Gold Group The ongoing internationalization of the Chinese yuan got a major boost this week with the London Metal Exchange (LME) now accepting the currency as collateral against contracts. This follows regulatory approval from the Bank of England, which now allows the LME to accept five currencies as cash …

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China experiences second biggest stock market crash, -8.48%

China stock market crash

After pledging, investing and otherwise guaranteeing the Chinese stock market to the tune of 10% of GDP, and intervening on at least 40 different occasions in the past month ever since China‘s stock bubble burst in late June, with the subsequent crash nearly taking the Shanghai Composite red for the year, …

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Chinese stock market goes into free fall

China Chinese stock market Shanghai

Editor’s note: as we predicted 18 days ago – China’s stock market is about to collapse. China’s stock exchange regulator has imposed severe limits on stock market selling, having earlier warned of panic in the market as a range of recent government measures failed to prevent stocks plummeting a further 6%. After …

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China’s stock market is about to collapse

China stock market crash

It’s been an ugly week for Chinese equities, but today’s performance is a whole other level of ugly: Today marked the fourth largest decline of the Shanghai Composite in two decades. We’ve discussed the insane valuations on the Shanghai and Shenzen stock-exchange before. As our regular readers will know, today’s fireworks have been a long …

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China and Russia teaming up military forces against America

Vladimir Putin Xi Jinping

China has dispatched a convoy of warships for its first ever naval exercises in the Mediterranean, together with a Russian flotilla. The drills demonstrate a strengthening bond between Moscow and Beijing, who – despite having no formal military alliance – see their combined might as a counterbalance to US power. Both countries have …

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Russia starts dumping US treasuries, China follows suit

China Russia president shots

Back in December, Socgen spread a rumor that Russia has begun selling its gold. Subsequent IMF data showed that not only was this not correct, Russia in fact added to its gold holdings. But there was one thing it was selling: some $22 billion in US Treasuries, a record 20% of its total holdings, bringing …

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China hoarding gold to challenge the US dollar

China gold dragon

In a world filled with fiat currencies, how important is gold‘s role in the financial system? Proponents often view the precious metal as a hedge against economic chaos, while critics typically claim gold is hardly more than an unproductive rock. Interestingly, some countries appear to believe gold is quite important, …

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China, 20 others launch World Bank rival in Asia

China AIIB World Bank rival Asia

China has launched the $100 billion Asia Infrastructure Investment Bank (AIIB). Australia, Indonesia and South Korea were absent following hidden pressure from Washington concerned about the new challenge to the World Bank and Asian Development Bank. The memorandum of understanding was signed on Friday in Beijing. The development bank was …

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China can now monetize US debt directly

The Treasury, apparently dissatisfied with the speed of indirect bank and/or Fed-inspired monetization of its exponentially rising debt-load at ever-cheaper costs of funds, decided in June 2011 to allow the Chinese, with their equally large bucket of USDs to bid directly for US Treasuries. As Reuters reports, China can now bypass Wall …

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China, Russia and Iran planning gold backed currency

Russia China Iran Putin Jinping Rouhani

A Eurasian Golden Triangle is emerging with China, Russia and Iran as the three key points, F. William Engdahl notes. The latest Sino-Iranian rapprochement has prompted a lively debate regarding the new Eurasian “world order.” “Sometimes profound tectonic shifts in the global politics arise from the least noticed events. Such is the …

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IMF approves Chinese yuan to rival US dollar on the global stage

International Chinese yuan IMF SDR

From Filip Karinja, for Birch Gold Group As we predicted it would happen, the International Monetary Fund (IMF) made a historic decision this week in international finance by adding the Chinese yuan into its basket of currencies that make up the global exchange unit known as the SDR. Created back in 1969, the SDR (Special …

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China moves one step closer to replacing the dollar

Obama wine China

From Filip Karinja, for Birch Gold Group The rise of China on the global economic stage got another boost this week. While discussing the potential that the Chinese renminbi (also known as the yuan) will be added to the IMF’s Special Drawing Right (SDR) basket of currencies, Christine Lagarde, the chief of the …

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