Consistently with the correct Chinese attitude that ‘enough is enough already’, Associated Press reported on 3rd September that China is buying the first $50 billion of the International Monetary Fund’s initial Special Drawing Right (SDR) bond sale. Although this announcement was presented for public consumption in the usual knee-jerk context, promulgated in the IMF’s own statement [2nd September 2009] that this purchase ‘will boost the Fund’s capacity to help its membership weather the global financial crisis, and facilitate early recovery of the global economy’, the Chinese authorities paid for the purchase of $50 billion worth of SDRs with 341.2 billion yuan but in fact, by means of a complex foreign exchange configuration, disguising the fact that they were dumping dollars in order not to destabilise the market – a move which, as Zhang Bin, an international finance specialist at the Chinese Academy of Social Sciences, said will ‘help to raise China ’s IMF status'.
Christoper Story....
And he adds
Once the overdue Settlement payments in the United States have been unblocked by Dr Ben Bernanke, the Chairman of the Federal Reserve, and Timothy Geithner, the US Treasury Secretary, both the US Treasury and the Federal Reserve will cease to exist in the format to which they and the world are accustomed, as they will necessarily be Basel-II (and Basel-III) compliant, which will mean that the most important question in the world – ‘What is the source of funds’ – will govern ALL FINANCIAL TRANSACTIONS. The dual system, with separate sets of books, will collapse.
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It is about to get very hot and very scary...
And may I add; it is not good for US assets; do not be head faked into this ongoing prop job; that is what it is.
Chris and others sources are reporting the same.
Separate Set of Books _ refers to off balance sheet crap!
West |
