Marshall Swing: CIPS Launch to Collapse the Dollar in Fall 2015?

by Marshall Swing, Silver Doctors

the folks at Trunews are reporting an article by the Examiner that the East is ready to supplant the U.S. Dollar in currency transactions.  If valid, this is HUGE news!

http://www.examiner.com/article/china-may-be-ending-dollar-s-hold-on-reserve-currency-as-early-as-september

Quote: “Today, we got proof that it is the second outcome that is about to prevail following a Reuters report that China’s international payment system, known simply enough as China International Payment System (CIPS), which serves to process cross-border yuan transactions is ready, and may be launched as early as September or October.

According to Reuters, the launch of the will remove one of the biggest hurdles to internationalizing the yuan and should greatly increase global usage of the Chinese currency by cutting transaction costs and processing times.

It will also put the yuan on a more even footing with other major global currencies like the U.S. dollar, as CIPS is expected to use the same messaging format as other international payment systems, making transactions smoother.

CIPS, which would be a worldwide payments superhighway for the yuan, will replace a patchwork of existing networks that make processing renminbi payments a more cumbersome process. – Zerohedge

News is timely, ain’t it?  ;)

NOW, notice the timeframe.  “September or October”.

Now read my article and see exactly where I was going with the idea of the East overthrowing the West…  What follows is what I wrote yesterday before I knew of this unfolding story…

And now, the rest of the story…

 

We are approaching the 6 month countdown mark to the September 13, 2015 “Feast of Trumpets” (Shemitah) date where a couple of high selling authors Jonathan Cahn and Mark Biltz (and a growing host of other analysts, biblical and secular financial) think we will have quite a financial collapse, potentially.

I like to give hints in my articles and usually do not give the whole picture on these things as the whole picture requires much in depth study by doing one’s own due diligence to grasp what is being said.  It is important to not blindly trust anything I say but to verify and test everything!

Notice I place the Feast of Trumpets in parentheses.  I do that for a very good reason as there is quite a debate that has raged over time, unknown to almost all, as to how to calculate those dates.  In the scriptures, it is very obvious the new moons are extremely important but when you see a date of September 13, 2015 for Feast of Trumpets you can rest assured though it may be likely it is indeed not 100% for sure.  Let’s give or take 24 hours to be safe.

On the Jewish calendars you will see what you might not be told is some things are calculated regarding the seasons and the sun and equinoxes and such but whether those things should be used, even though they might seem accurate, they are not what is written in the scriptures as the given method.

The method to determine when Passover IS is to find the first month of the year via a prescribed new moon sighting and when there is a condition in Israel known as barley being in the ‘abib’ state then count the prescribed days to Passover:

http://www.karaite-korner.org/abib.shtml

It is not to use NASA data and other sources though they may be very accurate.  What if intense clouds prohibits the sighting of the new moon?  God puts the clouds up there, along with the sun, moon, and stars so if He does not want someone to see the new moon on a particular night (even though on a cloudless night it would be visible) then to be finitely accurate we rely on the visible sighting from the Land (of Israel which is the True International Date Line).

So why do I bother to say this?  Well, the timing of the collapse could be off 24 hours depending on the sighting or not on the actual Shemitah date at all because there is not anything in the bible that says a calamity has to occur on that date.

But, what Cahn and Biltz have observed is for about 100 years now there have been calamities associated with that date and they attribute that to the seven year Shemitah found in Leviticus and God’s Law not being kept by the people of the nations, nor kept by the people in Israel, for that matter.

Speaking of the people of the nations, there are quite some interesting things going on out there!

One of the most interesting to me is the coming one world currency and here we have a fresh article on China’s perception of what that will be:

http://theeconomiccollapseblog.com/archives/china-announced-plans-world-currency

A majority of institutional investors now believe the Chinese currency will replace the USD at some point.  In November, the yuan broke into the top 5 of world payment currencies passing Canada and Australia.  China holds $1.3 Trillion of U.S. debt.  And here is a recent quote from Alan Greenspan:

“if China converted only a “relatively modest part of its $4 trillion foreign exchange reserves into gold, the country’s currency could take on unexpected strength in today’s international financial system.””

China’s goal is obviously to rule the world’s financial system and time is on their side to that pursuit.  China’s February trade surplus was $370.5 Billion yuan.

Hurting Russia via economic sanctions is not working as well as the U.S. and the West had intended:

http://thebricspost.com/brics-shield-against-isolation-of-russia/#.VP3vXuEU4ok

“Russia is slated to host the 7th BRICS Summit later this summer.

The first board meeting of the $100 billion BRICS Development Bank is supposed to take place in April in the Russian city of Ufa.

The BRICS combined GDP grew 300 per cent in the last decade as opposed to 60 per cent growth registered by the developed world.

BRICS launched a $100 billion development bank and a currency reserve pool in July this year in their first concrete step toward reshaping the Western-dominated international financial system.”

And recently from The Mises Institute this speculative article:

http://www.zerohedge.com/news/2015-02-12/russia-planning-gold-based-currency

The repercussions of Russia on a gold-exchange standard would be immense. Above all, it would mean the first major schism in the world’s monetary order. China would quite likely follow suit. It could mean the threat of a severe inflation in the United States should rafts of unwanted dollars make their way back across the Atlantic — the Fed’s ultimate nightmare.  Above all, the country will avoid the extreme debt leverages which would not have happened had Western capitals remained on gold.

“A gold standard would be politically appealing, transforming the ruble to a formidable currency and reducing outflows significantly,” writes Dr. Enrico Colombatto, economics professor at the University of Turin, Italy.”

There has also been speculation about what if Saudi Arabia demanded gold for oil.  There is speculation about Russia and a gold backed currency and China has for years been buying huge amounts of gold and a recent article suggested they might have 30,000 tons which seems highly unlikely.

But what all these countries want more than anything else is off the U.S. dollar standard (or lack of standard) and a fair, asset based currency where this central bank or that central bank cannot devalue their currency and destabilize markets to gain a more profitable competitive edge in a highly manipulated market.

So, what if several of these countries decide independently or jointly to convert to a gold standard and demand gold for natural resources and services?

Most likely a flood begins as the article hints:

The repercussions of Russia on a gold-exchange standard would be immense. Above all, it would mean the first major schism in the world’s monetary order. China would quite likely follow suit. It could mean the threat of a severe inflation in the United States should rafts of unwanted dollars make their way back across the Atlantic — the Fed’s ultimate nightmare.

Above all, the country will avoid the extreme debt leverages which would not have happened had Western capitals remained on gold.”

Countries who are being raped of natural resources and cheap services would most likely jump on the bandwagon within hours or days of such news not wanting to be last in line with dollars piled high in their wheelbarrows.

And there is no country in the world with more natural resources than Russia.

If this happens this Summer, what are the dollars in your wallet worth?

Got silver?  Got Gold?

I started this article with the idea of Shemitah, Feast of Trumpets financial collapse and I would like to return to it before entering into the world of COT numbers.

September is a very busy month this year.  We have Feast of Trumpets Shemitah on the 13th, Yom Kippur Day of Atonement on the 23rd, and Feast of Tabernacles with the final “blood moon” on the 28th.

No doubt after hearing the Doc’s Jonathan Cahn interview the other week the phenomena of the “blood” moon is gaining attention here at SD.

As of today, Monday afternoon, we are 26 days from the third “blood” moon in the series, due April 4, “Passover”.  Fireworks might be expected.

An excellent video by Dr. Gavin Finley of www.EndTimePilgrim.org came out the other day and I watched it over the weekend and Dr. Finley discusses the moon turning to blood in the Bible and contrasts that with these groupings of 4 “blood” moons of 2014-15, 1967-68, 1949-50 and the few other occurrences in the last 2,000 years.

Gavin makes a very important contrast between the “blood” moons we are seeing now and the final one of the prophecies which will occur, I believe in the Fall of 2022:

https://www.youtube.com/watch?v=55-ylUDEqVo

Enjoy!  This is an exceptional man who has done quite some due diligence and made his findings available to everyone, free of charge.

It is very important to have the correct perspective on what is coming.

There is a difference between bright red blood freshly exposed to the atmosphere and dark, dried blood that the prophet Joel talks about when the sun does not shine…  ;)

And now, the last 2 weeks COT numbers and what might happen in the near future…

The last 2 weeks of silver numbers show us the shedding of over 11,000 contracts and a decline in price.

And notice despite the decline in price, Silver Commercials have only shed a total of 5,241 long contracts in the last 2 COT periods.  That means they are still holding a bunch of long contracts at much higher prices.  If you have been following my story about Commercial longs bought at higher prices during the last month in both silver and gold, you are seeing this is getting VERY INTERESTING to say the least.  In the first COT period we the Commmercial’s engaging in a large short covering raid of over 7,000 contracts with few of their own longs sacrificed and in the next week we see they short cover 6,249 in yet another raid and finally sacrifice 3,814 longs.  But my question is are those longs from above or below and I tend to think they are from below, positions taken weeks ago when price dipped to a $14-$15 handle.  The reason they sacrifice them now is as price drops those longs taken at lower prices give no strategic net effect from a mathematical point of view SO my theory is they are still holding much higher priced longs in the red (at the moment) and as Speculators pile on with short contract positions they will be zapped at some point as we head to the traditional sell in May and go away.

Notice in the March 3 numbers we have some very smart Small Speculators taking long positions and I think they are dead on right in taking those positions in the lower $16 handle.  My guess is they are probably picking up some more longs since the last COT week concluded last Tuesday and price dropped and if you look at the price chart you will notice volatility has diminished so I believe even though price has dropped they are banking on a rebound and they will get it.

But notice the hapless Large Speculators picking up shorts on the way to the $15 handle and I suspect they have continued to pick up shorts after the COT Week and the Commercials are more than happy to take the long side of those bets.

In the first gold COT Week, we see those Gold Commercials grabbing for the gusto picking up 7,999 longs in the aggregate numbers while the disaggregated numbers reveal a minor Commercial short covering but still enough to force Large Speculators out of their longs to the tune of 5,369 longs sold for losses.

In the second gold COT Week, we see the obvious Commercial short covering price raid shedding 5,659 shorts while gobbling up 6,648 new longs.  On the Large Speculator side of tradesman-ship we see them shedding 3,855 longs and picking up 6,496 shorts.  Notice the Small Speculators sort of following suit picking up short positions but not shedding longs – even picking up a few.  Some of them are smart, some not so smart and caught in the exuberance of the price decline .  My guess is quite some of them did shed longs but those who bought longs slightly overshadowed those who sold into their losses.

Also, quite contrary to what we saw in silver is for both of these period total open interest has increased by almost 16,000 new total contracts INTO DECLINING PRICE.  I point these out as proof to my fellow writers that increased interest in long buying does not always mean it is positive for rising spot price.

All, in these markets, is a DECPTION and unless you have a system that uncovers the deception you cannot see what they are up to most of the time.

Become EXTREMELY thirsty for physical silver and gold my friends and do not give The Doc any rest at all in filling hard asset orders,

Marshall

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