China’s Premier Xi Jinping came to Florida for his first visit with America’s new President at a time when the world’s economic and geo-political environments are reaching a boiling point. And contrary to Donald Trump’s belief and rhetoric that he can outmaneuver China into giving up major concessions regarding the trade imbalance that has benefited the Far Eastern economy for more than two decades, the fact of the matter is that it is China, not the U.S., who holds all the cards including a new Trump card that could invariably leave the U.S. on the outside looking in.
This is because the two largest economic blocs outside the U.S. and Europe have both completed new alternative payment systems within the past 12 months, and they also both control two of the three most important segments of the global economy.
Energy and production.
The one key thing they do not control yet is power over monetary policy regarding the reserve currency, as America still holds onto this by the skin of their teeth. And yet even here Xi Jinping is well within striking distance of seizing control over how the world transacts, and where Trump’s meeting with the Chinese leader this week could very easily determine how fast or slow the Far East economic power decides to act upon this.
According to an article published yesterday by Sputnik, progress made in promoting bilateral trade in yuan is the first step towards an even more ambitions plan — using gold to make transactions:
The clearing center is one of a range of measures the People’s Bank of China and the Russian Central Bank have been looking at to deepen their co-operation. One measure under consideration is the joint organization of trade in gold. In recent years, China and Russia have been the world’s most active buyers of the precious metal.
On a visit to China last year, deputy head of the Russian Central Bank Sergey Shvetsov said that the two countries want to facilitate more transactions in gold between the two countries.
The possibility of trading in gold has been discussed by Russian officials over the last year. Last April, First Deputy Governor of the Russian Central Bank Sergey Shvetsov told TASS:
“BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets.” – Russia Insider
Unlike the state of the world following World War II, there is no need for a ‘confab’ of nations to get together to hammer out a reserve currency agreement like they did with Bretton Woods. No the world is much less incorporated than before, but still with the desire to partner with other nations and coalitions under trade agreements that do not instill the fear of losing one’s sovereignty to political ones.
Thus we are seeing the beginning of the end for the European Union because of this frequency shift while at the same time the world is experiencing the rise of the Asean, SCO, and Eurasian Economic Unions.
China takes free trade zones (FTZ) up to 11, with seven new FTZs starting operation on Saturday.
After an unveiling ceremony Saturday morning, contracts for 60 major projects totaling 80.2 billion yuan (11.7 billion U.S. dollars) were signed in southwest China’s Chongqing FTZ, according to sources with the Chongqing Commerce Commission.
The signed projects cover various fields such as high-end manufacturing, finance, and international logistics services.
The unveiling ceremony of China Shaanxi FTZ was held Saturday morning in Xi’an Hi-tech Industries Development Zone. The newly established Shaanxi FTZ will consist of three areas, including the core area, the Xi’an International Trade and Logistics Park and the Yangling Demonstration Zone, covering a total of 119.95 square km.
“As the first FTZ in northwest China, Shaanxi will seek to develop cultural and economic relations with countries along the Silk Road while becoming a model for other inland regions,” said Lu Shanbing, deputy director of the Silk Road Research Institute of Northwest University. – EN.People.CN
The days of America simply being able to walk into a conference room and dictate terms to world leaders is quickly coming to an end, and the most ironic thing about Donald Trump and Xi Jinping’s meeting is that it is China, not the U.S. and President Trump, who can choose to walk away from the table if negotiations appear to deteriorate not in their favor. And besides having access to unlimited energy, markets, and a joint economic and military partnership with Russia to easily stand against the U.S. empire, they also have perhaps the biggest historic Trump Card of them all…
“He who has the gold, makes the rules.”