Soulthinker
Well-Known Member
China was able to do all of this is because they don't give shyt when it comes to human rights. China was in Africa before when Mao was alive but,in the past 15 years the government has done way beyond what Mao did.
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http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=24543
Japanese Prime Minister Yoshihiko Noda and Chinese Premier Wen Jiabo met on Dec. 25. At the conclusion of the meeting, they announced the signing of an agreement whereby both countries will promote direct trading between the two countries denominated in the yen and yuan. Currently, according to Japan’s finance ministry, about 60 percent of transactions between the two countries are denominated in U.S. dollars.
In addition, the Japanese government will also begin purchasing Chinese bonds in 2012. Increasing the use of the two nations’ currencies and elimination of the use of U.S. dollars is expected to reduce currency risks and trading costs between the two nations.
China is Japan’s largest trading partner, amounting to about $340 billion in two-way transactions last year. The large volume of trade between the two countries makes this agreement more important than treaties that China has signed with many other nations to eliminate the U.S. dollar from bilateral trade.
In Hong Kong’s offshore yuan market last week, the yuan appreciated 0.5 percent against the U.S. dollar. In 2011, China tripled the amount of yuan-denominated bonds that other central banks and foreign investors could purchase, a trend that is likely to continue under terms of this new agreement.
So, what does this development have to do with the precious metals markets?
A lot.
First, this agreement will reduce international demand for U.S. dollars. The U.S. dollar reserves held by foreign central banks largely represent an interest-free loan to the U.S. government. As foreign demand for U.S. dollars declines, I don’t think the U.S. government will go in the direction of sharply cutting expenditures to keep from issuing more debt. Consequently, the result of this agreement will almost certainly result in the U.S. government monetizing new debt.
In simple language, that means there will be a major inflation of the U.S. money supply starting in 2012. Further, the federal budget will be hit with sharply higher interest costs on the greater amount of debt.
Right now, China has $3.2 trillion and Japan has $1.3 trillion of central bank foreign exchange reserves. These are the two largest hoards of foreign exchange held by any nation, with no one else coming anywhere close. The majority of these reserves are denominated in U.S. dollars. If, between them, Japan and China are able to unload hundreds of billions to trillions of U.S. dollars, the dollar will fall further in value.
A lower value of the U.S. dollar will likely mean that U.S. consumer prices will rise faster than at any time in at least the past three decades.
Thus far in 2011, the U.S. dollar has been perceived as a safe haven for those fleeing other currencies, especially the euro. Sure, demand has picked up for physical gold and silver as well, but not to the same extent as the U.S. dollar.
In my opinion, the near elimination of the U.S. dollar for transactions between Japan and China will cripple the attractiveness of the dollar as a safe haven asset. Starting next year, a lot of the funds that would have gone into dollar-denominated paper assets in 2011 will instead be diverted to purchasing gold and silver.
According to GFMS, one of the most respected analysts of precious metals markets, China’s government and private citizens will have absorbed more than 22 million ounces of gold in 2011. That is 30-35 percent of current worldwide gold mine production. It is also many millions of ounces more than in 2010. Under terms of this China-Japan agreement, you can just about guarantee that demand in 2012 will be much higher than it was in 2011.
This agreement represents a huge financial blow to the U.S. government, to the U.S. economy and to the dollar. It may take months for the effects of it to impact the average citizen. You may have a little time to acquire more precious metals at today’s levels, which I consider to be a short-term bargain. How much time do you have? We’ll only know that answer after prices have jumped.
African Union opens new $200m HQ from China
Associated Press – Sat, Jan 28, 2012
http://news.yahoo.com/african-union-opens-200m-hq-china-155209646.html
ADDIS ABABA (AP) — African leaders have inaugurated a new $200 million headquarters that was funded by China as a gift. They say the massive complex is a symbol of China's rapidly changing role in Africa.
The Chinese government fully funded the construction of the 20-floor tower overlooking a calabash-shaped conference center. It took three years to build.
AU chair Jean Ping said on Saturday China had built the complex for free.
China's top political adviser Jiao Qinglan said the gift is a "symbol of deepening relations." He said China is Africa's largest trade partner and Chinese investment there totals $13 billion.
The AU is due to open a two-day summit on Sunday at the new facility.
African Union opens new $200m HQ from China
Associated Press – Sat, Jan 28, 2012
http://news.yahoo.com/african-union-opens-200m-hq-china-155209646.html
ADDIS ABABA (AP) — African leaders have inaugurated a new $200 million headquarters that was funded by China as a gift. They say the massive complex is a symbol of China's rapidly changing role in Africa.
The Chinese government fully funded the construction of the 20-floor tower overlooking a calabash-shaped conference center. It took three years to build.
AU chair Jean Ping said on Saturday China had built the complex for free.
China's top political adviser Jiao Qinglan said the gift is a "symbol of deepening relations." He said China is Africa's largest trade partner and Chinese investment there totals $13 billion.
The AU is due to open a two-day summit on Sunday at the new facility.

wow, sounds like a prison riot :-|BEIJING (AP) — The company that makes Apple's iPhones suspended production at a factory in China on Monday after a brawl by as many as 2,000 employees at a dormitory injured 40 people....
more...http://news.yahoo.com/apple-supplier-halts-china-factory-violence-055718608.html
'Apple to become world's first $1 trillion company'
http://ibnlive.in.com/news/apple-to-become-worlds-first--1-trillion-co/246777-7.html
ZAMBIAN WORKERS KILL CHINESE SUPERVISOR OVER PAY
http://news.yahoo.com/zambian-miners-kill-chinese-supervisor-over-pay-100110409.html
LUSAKA (Reuters) - Zambian miners killed a Chinese supervisor and seriously wounded another on Saturday in a pay dispute at the Collum coal mine, labour minister Fackson Shamenda said on Sunday.
Chinese companies have invested more than $1 billion in copper-rich Zambia but animosity towards them is growing as Zambian workers accuse firms of abuses and underpaying.
Workers at the Collum mine, situated 325km (200 miles) south of the capital, attacked the Chinese men demanding wage rises in line with those stipulated by the government in July.
Zambia last month raised minimum wages to 522,000 kwacha for maids and household servants, and to 1.1 million kwachafor shop workers without unions.
"We are yet to establish the exact circumstances but the report I have is that one Chinese was killed and another injured as the workers demanded the new minimum wage," Shamenda told Reuters on Sunday.
Two years ago, Zambian police charged two Chinese supervisors at the Collum coal mine with attempted murder following the shooting of 13 miners in a pay dispute.
Resource-hungry China is investing heavily in Africa, a supplier of oil and raw materials like copper and uranium, but critics have warned that its companies are importing their poor track record on workers' rights.
In July, Chinese President Hu Jintao offered $20 billion in loans to African countries over the next three years, double the amount it pledged for the previous three-year period in 2009.