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NEWSLETTER NO 163

Friday 15 September 2017

This week:

How China is About to Destroy the Dollar

Chronicle of the Times.
A New National Print Newspaper

ECONOMICS


Peter Kellow, Sovereign Republic Leader

How China is About to Destroy the Dollar

Dear Reader

The MSM* picked up on the story that China is going to ban bitcoins in China. But that is just a tiny element in the really big story behind that ban and that big story they have totally missed. Surprise, surprise!

“Big story” are hardly the words to describe a move that China is making that is going to be geopolitically earth shaking.

Bitcoins, in spite of being called a crypto-currency, are not a currency at all. Without going into details, the nearest thing to bitcoins, and all the crypto-currencies, in financial terms is gold. And, as is well known China, [and also Russia] have built up enormous stocks of gold.

“Cryptos” represent an irritant [no more than that] to anyone or any country that wants to maintain the value of gold. So far - so obvious.

*

But the missing element in this story is that China is soon going to pay for the oil it buys in its own currency, the yuan.

Oil is currently priced in dollars and so if you want to buy oil you have to buy dollars first. This derives from a deal that the Americans did with the Saudi’s shortly after WWII and it a major factor in keeping the dollar strong.

But why would anyone accept to be paid in yuan [which cannot be used at present to buy anything not bought from the Chinese]?

Simply the Chinese are going to go against all the trends of the last 50 years and put the yuan on the gold standard.

The yuan will no longer be a fiat currency and so, when China pays you in yuan, it is paying you in effect in gold. Assuming the price of gold is strong [hence the ban on cryptos] then countries will be happy to accept it.

*

You can be sure that China with its ally Russia will continue to buy gold keeping the price up and so indirectly support the yuan.

The background to this is that the US retains its power for two reasons [having decimated its home industry] - military power and the power of the dollar as the world’s reserve currency.

Maybe the current thrashing around trying to make its military power felt is an attempt to create diversion from the danger to the dollar. And with 20$ trillion in debt if the dollar dives the US is in disaster territory – to use its President’s favourite word, except here we are talking litterally.

Once the Chinese plan rolls out and oil producers start to accept payment in gold-backed yuan this disaster will quickly follow.

The first time that the Saudi’s accept payment in gold-backed yuan [they are already a supplier to China, as is practically every oil producing nation] even the Americans will tumble that the tide has turned.

*

The Chinese will be able to twist the knife in the dollar by selling the dollar-denominated bonds they hold.

That might sound like they will take a hit themselves on the declining dollar and they will. In the context of the size of the Chinese economy they can easily afford that.

It is only a matter of time before Russia follows suit and puts the rouble on the gold standard.

Cannot the US put the dollar on the gold standard to counteract.

That is a joke. The rumour goes is that there is no gold left in Fort Knox and any case what little there is is mortgaged out.

No other major currency is in a position to go back on the gold standard. Gordon Brown famously sold the UK’s gold for a knock down price.

*

China has obviously been plotting this for a long time. Chinese decision making does not revolve around an electoral cycle.

China is now doing what she has always done. Plan decades, centuries and even millennia ahead.

[* MSM = mainstream media]

Chronicle of the Times.
A New National Print Newspaper

I will return to that theme often enough but for the present I want to bring to your attention, a further project that I have been engaged on.

This is the creation of a new national print newspaper. That might sound crazy but I have adopted a simple but original business model that makes this possible. It is called Chronicle of the Times or CTT for short

This initiative is a response to the fact that mainstream newspapers of any country are untrustworthy, their political and economic predictions hopelessly wrong and their opinion shallow and biased. The BBC and other media have long ago given up on providing unbiased factual reporting

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While this is quite separate from the party I will promote party events through CTT. You may find this difficult to believe but it is almost impossible to advertise political events. No newspaper or journal will accept political adverts and I have not found any events website that is suitable as they all concentrate on leisure activities.

So I view taking CTT forward as a way also of publicising Sovereign Republic and setting up real time meetings. There is nothing like have a bunch of people in a room to establish a common purpose and meaningful debate

To find out how this works watch this video or visit the Chronicle of the Times website


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CTT will be financed through donations mainly by those who pick it up free on the streets. But we need some money for the startup. I have lauched a crowdfunding campaign

This campaign states a goal of £5000 but that is far more than I need . With £1500 I can get 10,000 copies onto the streets of London. After that a 2.5% response of readers to donate £10 will pay for 20,000 for the next issue

As you can see I have a very streamlined business model that cuts out any middlemen

All I am asking of you is to donate £10 to the startup. You can do the math. We don't need many of those £10's to create the launch

Everyone knows that we have major problems with current newspapers. They are all owned by just a few billionaires. That is not democracy. This is a way to fight back.

Check out the full mockup here

Do watch the 9 min video or visit the crowdfunding campaign to learn more

....And contribute £10!


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