{"id":1451152,"date":"2022-04-23T07:29:47","date_gmt":"2022-04-23T11:29:47","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1451152"},"modified":"2022-04-23T07:29:59","modified_gmt":"2022-04-23T11:29:59","slug":"israel-cuts-dollar-holdings-adds-chinas-renminbi-for-first-time","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/israel-cuts-dollar-holdings-adds-chinas-renminbi-for-first-time\/","title":{"rendered":"Israel Cuts Dollar Holdings, Adds China\u2019s Renminbi for First Time"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fisrael-cuts-dollar-holdings-adds-chinas-renminbi-for-first-time%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1451152&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><em>Submitted by <a href=\"https:\/\/quoththeraven.substack.com\/\">QTR&#8217;s Fringe Finance<\/a><\/em><\/p>\n<p>Over the last 48 hours, China and Russia have taken big steps toward separating themselves from the monetary policy and economies of the west \u2013 and nobody has even noticed.<\/p>\n<p>Those who have been reading my blog for the last couple of weeks know that I have\u00a0<a href=\"https:\/\/quoththeraven.substack.com\/p\/the-dollar-dethroned-we-have-reached\" rel=\"\">been predicting<\/a>\u00a0that China and Russia would grow far closer economically, creating, in essence, a second global monetary system where the US dollar is no longer the reserve currency.<\/p>\n<p>A few weeks ago,\u00a0<a href=\"https:\/\/quoththeraven.substack.com\/p\/russia-will-backstop-the-ruble-with?s=w\" rel=\"\">I wrote an article<\/a>\u00a0proclaiming that Russia would back the ruble with gold as a way to fight back against western economic sanctions. I also made\u00a0<a href=\"https:\/\/quoththeraven.substack.com\/p\/china-will-back-their-countrys-digital?s=w\" rel=\"\">similar predictions<\/a>\u00a0about the new digital Chinese currency last summer when I first started\u00a0<em>Fringe Finance.<\/em><\/p>\n<p>This shift is happening as a result of the United States and the rest of the western economies foolishly thinking that they\u2019re going to be able to effectively sanction Russia economically, despite the fact that Russia is a massive producer of oil and the country seems prepared to back its currency, the ruble, with this productive capacity.<\/p>\n<p>Meanwhile,\u00a0<em>back at the ranch<\/em>, we continue to run enormous deficits and have very little productive capacity, and even less to back our currency with. Our destiny seems to be to continue printing money regardless of the negative consequences. We\u2019re nothing more than printing press junkies that won\u2019t cease our inflationary addiction until we inevitably hit rock bottom.<\/p>\n<p><a href=\"https:\/\/cdn.substack.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fad07ca9f-d6ea-4a4c-b647-16cd09dd31c9_707x333.png\" rel=\"nofollow noopener\" target=\"_blank\"><img alt=\"\" data-attrs=\"{\" src \/><\/a><\/p>\n<p><em>US M2 Money Supply (via TradingEconomics)<\/em><\/p>\n<p>If you haven\u2019t read them yet, a couple articles that explain my position on Russia and China creating their own monetary system include:<\/p>\n<hr \/>\n<p><em>Today\u2019s post is not behind a paywall because I feel its contents are too important. If you enjoy my work, and have the means to support, I\u2019d love to have you as a subscriber:\u00a0<\/em><a href=\"https:\/\/quoththeraven.substack.com\/subscribe?utm_medium=web&#038;utm_source=subscribe-widget&#038;utm_content=52600350\">Subscribe now<\/a><\/p>\n<hr \/>\n<p>There\u2019s been several new developments to this thesis over the last 24 hours.<\/p>\n<p>First, it was little noticed yesterday when Bloomberg reported that \u201cIsrael\u2019s central bank\u00a0<strong>has made the biggest changes to its allocation of reserves in over a decade, adding the Chinese yuan<\/strong>\u00a0alongside three other currencies to a stockpile that last year exceeded $200 billion for the first time ever.\u201d<\/p>\n<p>The report read:<\/p>\n<blockquote>\n<p>Starting this year, the currency mix will expand from the trio of the U.S. dollar, the euro and the British pound to include the Canadian and Australian dollars as well as the yen and the yuan, which is also known as the renminbi. The additions mark a change in the Bank of Israel\u2019s \u201cwhole investment guidelines and philosophy,\u201d Deputy Governor Andrew Abir said in an interview.\u00a0<\/p>\n<p>Following discussions held by the monetary committee last year, the pound and the yen will account for 5% and the currencies of Canada and Australia will have 3.5% each. Under the new approach, the yuan\u2019s proportion is set at 2% for 2022, according to the Israeli central bank\u2019s annual report published at the end of last month.<\/p>\n<p>To accommodate the changes, the euro\u2019s share will fall to 20% &#8212; the lowest in at least a decade &#8212; from just over 30%, while the dollar will account for 61%, down from 66.5%. The pound\u2019s weighting, by contrast, will almost double to 5%, returning to a level last seen in 2011.<\/p>\n<p>The \u201cdramatic\u201d rise in Israel\u2019s foreign-exchange reserves led the central bank to lengthen its investment horizon, Abir said. \u201cWe look at the need to earn a return on the reserves that will cover the costs of liability.\u201d\u00a0<\/p>\n<\/blockquote>\n<p><a href=\"https:\/\/cdn.substack.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F46131ccf-43cc-49f6-a41d-bbd672f507d0_1284x986.jpeg\" rel=\"nofollow noopener\" target=\"_blank\"><img alt=\"\" data-attrs=\"{\" src \/><\/a><\/p>\n<p>In other words, Israel is reducing its exposure to the dollar and to the Euro to add exposure to the Renminbi.<\/p>\n<p>And so perhaps isn\u2019t just\u00a0<em>little old me\u00a0<\/em>here chipping away at my blog daily that has noticed that China and Russia could be on the verge of effecting meaningful change to the global monetary landscape. It sure seems like Israel is catching on.<\/p>\n<p>I expect other countries to follow suit.<\/p>\n<p>Then, another prediction of mine started to come to fruition this morning when it was announced that China was considering buying some of Shell\u2019s Russian LNG assets. Bloomberg\u00a0<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-04-21\/china-state-energy-giants-in-talks-for-shell-s-russian-gas-stake?utm_source=google&#038;utm_medium=bd&#038;cmpId=google\" rel=\"\">reported<\/a>:<\/p>\n<blockquote>\n<p>China\u2019s key state-run energy companies are in talks with Shell Plc to buy its stake in a major Russian gas export project, according to people with knowledge of the matter.<\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/quote\/883:HK\" rel=\"\">Cnooc<\/a>, CNPC and Sinopec Group are in joint discussions with Shell over the company\u2019s 27.5% holding in the Sakhalin-2 liquefied natural gas venture after the European firm said it would exit Russian operations following the Ukraine invasion<\/p>\n<\/blockquote>\n<p>I had previously argued on my podcast and on my blog that even though the west was going to be ignoring Russian investments, there would definitely be a strategic buyer who would come in and scoop up what can only be described as long-term strategic energy assets from Russia.<\/p>\n<p>Many people smarter than I am, including macro analyst Luke Groman, predicted that China would be the strategic buyer for such transactions. I agreed.<\/p>\n<p>Now, it looks like that is exactly what\u2019s happening. These purchases will only serve to knit China and Russia\u2019s economies even closer together.<\/p>\n<p><a href=\"https:\/\/cdn.substack.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F65ece797-264a-4604-af20-7c71bdbb5beb_999x562.jpeg\" rel=\"nofollow noopener\" target=\"_blank\"><img alt=\"Liquefied natural gas (LNG) | Shell Global\" data-attrs=\"{\" src \/><\/a><\/p>\n<p>If the picture hasn\u2019t come into focus, it soon will &#8211; even for most people that aren\u2019t paying attention yet.<\/p>\n<p>China and Russia continue on a cooperative path together: doing business together, backing their currencies with tangible commodities and, as I wrote just days ago,\u00a0<em>we\u2019re<\/em>\u00a0in the process of watching the dollar become dethroned as the global reserve currency. We just don\u2019t notice it yet.<\/p>\n<p>The next prediction I have, that hasn\u2019t yet taken place, is that China will back its digital currency with gold. I\u2019ve predicted this since August of 2021, long before the current macro picture has emerged. Now, my convictions are even stronger.<\/p>\n<p>When the rest of the world catches on to what is playing out\u00a0here, there\u2019s going to be a mad dash for gold, in my opinion. I still prefer gold over any fiat currency and, as I\u00a0<a href=\"https:\/\/quoththeraven.substack.com\/p\/gold-mines-are-literally-gold-mines\" rel=\"\">wrote weeks ago<\/a>, consider miners to be one of the market\u2019s truly undervalued sectors.<\/p>\n<p>Thank you for reading QTR\u2019s Fringe Finance . This post is public so feel free to share it:\u00a0<a href=\"https:\/\/quoththeraven.substack.com\/p\/king-dollars-demise-israel-dumps?utm_source=substack&#038;utm_medium=email&#038;utm_content=share&#038;action=share&#038;token=eyJ1c2VyX2lkIjo1NDE5OTgzLCJpYXQiOjE2NTA2Mjc2OTcsImlzcyI6InB1Yi00MTE1NDYiLCJzdWIiOiJwb3N0LXJlYWN0aW9uIn0.dYVM-Ch6NjZR13kPciDgpppEHaeDw1dFnUyE4OSJb8w\" rel=\"\">Share<\/a><\/p>\n<p><a href=\"https:\/\/cdn.substack.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F587df085-8832-4d65-ba8e-8d4d800d6601_54x42.png\" rel=\"nofollow noopener\" target=\"_blank\"><img alt=\"\" data-attrs=\"{\" src \/><\/a><\/p>\n<p><strong>Disclaimer:<\/strong>\u00a0<em>I am long GDX and gold seven ways from Sunday, via miners, gold companies and gold ETFs. This is not a recommendation to buy or sell any stocks or securities. I own or will own all names I mentioned or linked to in this piece. I often lose money on positions I trade\/invest in. I may add any name mentioned in this article and sell any name mentioned in this piece at any time, without further warning. None of this is a solicitation to buy or sell securities. These positions can change immediately as soon as I publish this, with or without notice. You are on your own. Do not make decisions based on my blog. I exist on the fringe. The publisher does not guarantee the accuracy or completeness of the information provided in this page. These are not the opinions of any of my employers, partners, or associates.\u00a0I get shit wrong a lot.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Submitted by QTR&#8217;s Fringe FinanceOver the last 48 hours, China and Russia have taken big steps toward separating themselves from the monetary policy and economies of the west \u2013 and<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1451152","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1451152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1451152"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1451152\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1451152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1451152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1451152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}