Longstanding Chinese War: Intrigue And Betrayal

April 12, 2018

For those who believe the conflict, confrontation, and trade war with China is very recent and fresh, not true. The war of words and sabre rattling is part of a longstanding trade war between the two superpowers. The war with China has been brewing for many years, with much hidden in the background battles over legacy USTreasury Bonds and hidden Gold stores. The United States does not publicize this conflict, since the US actions are full of dishonor, deceit, fraud, and murders within the secret war. To begin with, Washington officials have steadfastly refused to honor high valued old bonds backed by gold, claiming they are very old. The US goons have been murdering both owners and attorneys for those who represent large scale Asian claims. The US has shot down aircraft carrying gold bullion hoards. In doing so, the US has acted with great dishonor, more like a criminal organization that a legitimate government. Dishonesty is the common thread and common theme. One should expect none else since the US lineage of presidents since 1988 has been comprised of narco baron leaders. The battles between the United States and China go way-back. Let us trace some of the key events in just the last twenty years. Prepare to read a spy novel outline, except in our realm of reality. It puts the US in very bad light, with extreme criminality, marred by dishonor.

Today’s trade war battles between the US and China have captured global attention. Imagine the extreme stupidity of a major debtor nation kicking the shins and groin of its major creditor. Such is the reckless folly of the Wall Street banks, which control the USGovt since 9/11. The trade war focuses upon aluminum, steel, and intellectual property. The Untied States have already lost the early rounds. The US lost a large grain deal to Russia. The US lost a large soybean deal to Brazil. The US corporations are largely shut out of Belt & Road Initiative projects, given a minor role. The Chinese are dumping USTreasury Bonds at a faster rate. Notable rumblings have occurred in both the South China Sea and in North Korea. Harken back to the long sequence of events in the ongoing trade war with China. It had been financial in nature up until recent months. It has been a longstanding trade war.

Tungsten-Laced Gold Bars

The Clinton-Bush team during the late 1990 decade began exporting tungsten salted gold bars to the Hong Kong banks. Refer to several hundred fake bars, perhaps a couple thousand. It was a grand project, which involved the narco gangsters buying a gold refinery in Canada. Then they operated it 24x7 at 365 days per year. They used the same Arkansas and Panama channels that had been relied upon with narcotics trafficking for many years. The motive was to undermine the Hong Kong banks, since expected to soon become more tightly integrated with the Chinese banks after loosening ties to the British banks. In the last several years, the USGovt has been actively working toward some form of agreed upon restitution. The US goons got caught red-handed. It is easily seen in the giant pink thumb from the USDept Commerce reports. See the line item of Industrial Metal Supplies shipments, nicely hidden but easily noticed. The monthly $2 to $4 billion in the reports has no place in typical commercial transactions, pure bogus.

Hong Kong Independance

The Hong Kong independence deal in 1999 had numerous sides, angles, and twists. Most have not been revealed, since criminal organizations do not show their dealings. The part that most Westerners do not realize is that the Chinese have granted significant autonomy to the Hong Kong regional officials. The Beijing leaders in the Middle Kingdom see HK as a laboratory to learn from, whose continuity they permit. The HK side continues much as before, with very little having changed, almost nothing altered. The big issue nowadays is maintenance of the HKDollar peg with the USDollar. It seems to be breaking down, which could lead to a sudden rise by 30% in the HKD exchange rate. For the last several years, the tight peg has resulted in $billions in funds moved from China to HK banks. While profitable for their banks, price inflation for the people has resulted, along with significant property price increases. Instability has arrived.

US Gold Lease

Around the time of the Hong Kong independence, the United States was embroiled in the tech-telecom bust of 2000. The stock market was in shock. The new millennium effect was ripping the financial market apart. The US housing market was set to endure yet another powerful damaging recession. Thus USFed Chairman Sir Alan Greenspan decided to deploy desperate measures. He concluded the Untied States could not successful overcome a stock crash and housing crash in sequence. He pulled out all the stops with a sudden interest rate cut. But he engineered something else, of extreme importance. It was a key event nowhere in the news. The publicity was given to the plan to industrialize China with direct foreign investment in the tens of $billions, which did happen. From 2001 to 2003 alone, the US & Canada invested over $23 billion from its corporations. But under the surface, an important transaction took place, one given zero attention.

The USGovt leased around 5000 tonnes gold to continue the USDollar great game. After the tech-telecom stock bust, the US was very vulnerable. A housing crash would have caused a powerful recession, and possibly a USDollar decline of significance. The US actually faced a potential depression threat. So the USGovt via its Wall Street bank handlers worked an agreement to lease a large tract of Chinese gold. Knowing the dishonor endemic throughout the Washington political culture, the Beijing leaders protected themselves with marquee property as collateral, plus a massive IRS secure stream bond of unique type.

Reneged Gold Lease

True to form, the USGovt reneged on the gold lease contract. No repayment or repatriation of gold bullion from the lease occurred. The Wall Street banks did not use the gold asset to secure the banking system, but rather sold it into the gold market. They saw urgent need to fortify the USDollar, done with large scale gold dumping of gold bullion that they did not own. The US has been stealing and leasing gold for a long time, to sell into the market so as to keep the USDollar game going. See Libya. See Saudi Arabia. See Ukraine. See Syria. Wreck tomorrow to secure today, according to the Rubin Doctrine. The USGovt betrayed the Chinese, evident by 2005. The Chinese Govt might have anticipated the betrayal with good lead time, since savvy. They USGovt has actually been dishonorable for several decades, as in not properly redeeming the older so-called legacy bonds. After the Clinton-Rubin gangsters stole the Fort Knox gold, no opportunity existed for honoring the legacy bonds. Criminal organizations loot the system, nothing new. The World Trade Center was probably the biggest bank heist in modern history after all, with gold, bearer bonds, and diamonds all pilfered amidst a demo of powerful weaponry. These are narcotics barons with a neo-nazi background, having infiltrated the entire Washington and New York financial system. They operated under the silly cover name of Neo-Conservative, as in neo-con. They looted the central banks during World War II. Using Operation Paperclip, they entered the United States by the hundreds. They gradually took control of power in Washington, and certain experimental offices in Langley. The publicity was given to Von Braun at NASA, an effective distraction.

Unraveled Vatican Lord

The financial underpinning of the Chinese gold lease is the most difficult piece to put together in the puzzle. Gratitude to Rob Kirby and EuroRaj for their insights, suspicions, and extremely effective sniffing of the missing pieces which would make Sherlock Holmes proud. They observed a multi-$billion vacuum, noted a force field lacking a device, and concluded the formation of a financial vehicle which fits well with historical structures. By all appearances, the Chinese hired JPMorgan to set up an IRS tax secure stream in the form of a macro bond. It linked the Vatican, who have been US uber-lords for many decades. Imagine a lord & vassal relationship with origins at the US Civil War, with more formalized connections made at the Great Depression. The US was financially broke and the Vatican was wealthy. The key piece was the bond fashioned with the historical Satanic center of wealth accumulation over the last millennium. Enter China to brilliantly use the IRS macro bond as a gigantic leverage device, which was used to wrest control of critical pieces within the tattered US financial landscape. The confirmation was seen in the following sequence of events, none well told by the dutiful lapdog US press.

Chinese Confiscation

Upon USGovt default on the gold lease contract terms, the US elite were forced to forfeit some crown jewels. The Chinese confiscated the JPMorgan HQ center, complete with skyscraper, office buildings, conference center, and the largest private gold vault in the entire West. It even connects to the New York Fed gold vault in underground tunnels. The deal was obscured by the usual downplay in the US press, but the main elements were easily identified. The JPM HQ complex was sold to a Chinese property conglomerate for perhaps 20% to 30% of its true value. Commercial property analysts noted the price anomaly, but they moved onto other stories. The Jackass fixated on the anomaly, and dug deeper, making inferences on missing gaps. Never is a multi-$billion gap without a hidden big story and important element to discover. Combine the Chinese confiscation of the primary iconic US bank, with wrested control of the Intl Monetary Fund, and one can see the new dominant player in China. Since 2015, the USGovt has failed to make its annual payment to the IMF coffers. China has made its annual payment, and in so doing, has taken control of policy.

China & Fannie Mae

China was enraged at the USGovt failure to return leased gold in high volume. The Beijing officials rendered a significant favor to the Washington tarnished players. But they protected themselves with the property held in collateral backed by the Wall Street icon itself, and in the owned IRS macro bonds backed by income taxes of 150 million US citizen taxpayers. The reneged gold lease was a major turning point in US-Chinese relations. It was a grand F.U. and flipped bird on the back stages of geopolitical finance. It demonstrated to the Chinese that the USGovt was run by a criminal organization. So China went to work in 2005 and 2006. They dumped Fannie Mae bonds in vengeance. The official news reported that the Beijing financial officials had decided to focus upon USTreasurys, with the untold part being a discharge of Fannie Mae bonds. The US press remains dutiful, reporting the obvious, but neglected the critically important items. The Chinese held a few hundred $billion in US Agency Bonds, the mortgage backed securities with a USGovt guarantee. Few bond analysts attach the link of what was to come in the following year with a Chinese lit fuse.

Lehman Triggers Financial Crisis

By late 2006, it was clear that the US was suffering from a subprime bond problem. It was mushrooming into a financial crisis. The attention was given to poor reckless loan underwriting, to false credit ratings given to bonds, to hidden toxic tranches within bonds, to improper prospectuses issued by banks as brokers, to synthetic bond vehicles, to the MERS title database laced with fraud, to multiple (duplicate) secure streams on home loans, to false mortgage loan rates within the market, and more. The entire Wall Street set of banks were vulnerable, including JPMorgan and Goldman Sachs. Finally, the Lehman Brothers event with full-blown subprime bond crisis erupted. The hidden element was that China lit the fuse one or two years earlier, by starting a bond sale exodus. The climax came when JPM and GSachs bought a few $billion in mortgage bonds from Lehman Brothers, but never paid them. The dutiful US financial press reported the event as a run of the mill Lehman financial failure. It was a suffocation event by two killers. However, Lehman had been targeted by the USGovt power brokers. Like Bear Stearns earlier, Lehman was short the USDollar and long Gold. They were killed by the dynamic duo which run the USGovt financial offices. With the scuttling of AIG by the criminal duo, the stage was set for Goldman Sachs to receive 100 cents on the dollar for its failed mortgage bonds, an event in resolution for bond insurance with no precedent. The other poor suckers received between 35 and 70 cents per dollar. The Lehman failure (kill job) set off the biggest global financial crisis in several decades, one which was yet seen a recovery.

No remedy has even been attempted. We have seen Zero Interest Rate Policy. We have seen Quantitative Easing, done by the USFed, by the Euro Central Bank, and by the Bank of Japan. We have seen expanded official financial support for corporate bonds, for the stock market, and for crude oil contracts. We have seen reckless credit extension again. We have thus witnessed the entire sovereign bond sector become subprime, led by the USTBond market. It is supported by hyper monetary inflation and hidden derivative machinery. Finally we have seen a global rebellion against the USDollar, led by China and the East. The end result will be a gradual stepwise return to the Gold Standard.

China Dumps Long-Term Treasuries

Move forward another three years, for the next important even in the bilateral financial trade war between Beijing and Washington. The Chinese were still disgusted at the reneged gold lease. They triggered the Lehman event and the global financial crisis which has actually engulfed the King Dollar and its court (central banks). The Chinese were preparing for the property confiscation, which took time. So they announced a tactical maneuver to dump long-term USTreasury Bonds, and to hold the short-term USTreasury Bills instead. The dutiful US press cited the story merely as a preference by China for short-term USGovt securities. They planned to hold to maturity in an easier dumping exercise. To accommodate the Chinese, the USFed announced Operation Twist, which was not to be confused with QE in hyper monetary inflation of the unsterilized variety. Instead, the Chinese were assisted in their swaps of long-term USTBonds for short-term USTBills. The USFed bought their 10-year and 30-year USTreasurys, employing the very same derivative machinery so heavily relied upon in the great bond shell game. With absent buyers of USTBonds, the main buyers have been JPMorgan with their Interest Rate Swap derivative contracts. The point not mentioned much in the financial press is that China uses short-term USTBills in financing the construction of oil pipelines, as well as many other big construction projects like bridges, railways, port facilities, and factories. It is called Indirect Exchange, as in two foreign parties using the USD-based securities as cash, when the US is not involved in the transactions. The preferred Indirect Exchange currency is short-term USTBills, the same as used in giant oil payments in trade.

Construction Of New Non-USD System

The Chinese response to the USGovt betrayals, to the US financial system insolvency, to the USGovt preference for war as a geopolitical policy tool, has been to build a new competing system. It is not focused upon the USDollar in basis. It includes the BRICS Development Bank, the Asian Infra-structure Investment Bank, the Asian Development Fund, the Shanghai Coop Organization, the Chinese Interbank Payment System (competitor to SWIFT), and the entire Belt & Road Initiative. The BRI is the most aggressive ambitious construction and development program in more than a century, perhaps five times greater than the Marshall Plan following World War II. At present, the massive BRI projects total on the order of $8 trillion, exactly none contracted or settled in USD terms. The Chinese could not move away from the USD-based system without having an alternative system in place, one with a powerful structure, with critical mass in participation, with a basis leading to the Gold Standard. Many will be the steps in the progression toward restoring the Gold Standard. It will begin with trade payments in gold, then comes bank reserves moving from USTBonds in favor of Gold bullion, and finally the arrival of gold-backed currencies. The biggest most important financial event since 1971 just occurred, the Shanghai completion of the Gold-Oil-RMB futures contract triangle. Oil is essentially backed by Gold, and the oil sales can be completed in RMB terms. Next watch for Saudi oil sales to China paid in RMB terms.

Death Knell For The Petro-Dollar

The Petro-Dollar death knell has been sounded, but time will be required in order for the process to play out. Next comes the emergence of the Dual Universe, where the USD Sphere will continue its dominant role, but where the RMB Sphere will be permitted to become established and to grow. The Chinese Yuan (RMB) will be tolerated, insulted, and obstructed, but to no avail. The RMB will expand in usage, become more internationalized, with a soon to be announced capital account, followed by more global debt issuance. Watch for Panda Bonds, like for Italian Govt debt. Watch for the London Centre to participate in Panda Bonds. The Chinese own over 30 thousand tonnes in gold reserves, and the Russians have an equal tonnage of gold reserves. The R&C power pair are preparing for the Gold Standard, while the US will be left with their golden pants down by their war-torn shoes.

The USGovt and US Big Banks and USMilitary cannot stop the process. The USDollar will lose its monopoly as global currency reserve. The USMilitary has already lost its full spectrum dominance. The process will see the USD gradually lose market share in trade payments, while the process will also see the USTreasury Bond gradually lose reserve asset share in the global banking system. The USGovt debt is exploding past the $21 trillion level. The global confidence in the USDollar is fading fast. The USEconomy is recognized as lacking industrial capacity to a critical degree. The $600 billion US trade deficit is a financial straitjacket. The stage is set for Gold taking a greater role in global finance generally. Watch central banks load up on gold quietly. The gold price a few years from now will be multiples higher. The Basel gangsters at the BIS will make certain of it, since their main vassal central banks are loaded to the gills with toxic sovereign bonds.

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Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at  www.GoldenJackass.com. For personal questions about subscriptions, contact him at  JimWillieCB@aol.com

In 1792 the U.S. Congress adopted a bimetallic standard (gold and silver) for the new nation's currency - with gold valued at $19.30 per troy ounce