Russia Divesting in US Dollars


Russia’s US dollar reserves have gone from $96.4 billion in March to $14.9 billion in May.  They are building their gold reserves and now have surpassed China’s gold stockpile.  This can’t be verified as China doesn’t report their actual numbers.

There are many things converging this year to indicate that the BRICS are about to pull the plug.  They have set up a viable financial exchange to rival the SWIFT system, they have made many trade agreements involving the ‘one belt road’, they have almost completed the pipeline to circumvent Ukraine and supply oil and LNG to European countries and they have built up their military to a comparable strength to the US’s.  Some say their weaponry is superior to the US’s.

The US is infighting still hampered by the Russian collusion and the possible demise of the democratic party as it use to be.  The party is showing signs of a huge change in the old guard leadership and the new guard seems bent on a socialistic platform.  The republicans are not very vocal but their days also seem to be numbered.  It almost seems that the US is on the verge of a civil war.

The metals have been severely hammered in the COMEX over the past three weeks for no apparent reason.  The reason maybe due to something known to only the insiders like the central banks.  The dollar is being kept strong but the fundamentals are indicating that it should be weakening against foreign currencies.  The major buyers of the US notes are all backing away from buying the treasuries and in many cases they are lowering their holdings.  The precious metal prices in foreign countries is rising, this makes sense as the precious metals prices move opposite to the strength of the country’s currency.

For those who believe that TPTB have a policy of making their intentions known even if it is in a clandestine way that eludes most, the Economist magazine cover from an issue in 1988 that was predicting a new currency.  Sure looks like this prediction was correct.

Japan to Bypass Dollar


Since 2013, the BRICS have been working to duplicate the Western financial infrastructure and other countries have been moving away from the overbearing western systems.  Two countries that have been stalwart in their support of the US seem to be falling by the wayside.


The first country had a relationship with the US to denominate the sale of oil in US currency.  In return, Saudi Arabia would receive military support from the US.  This was the creation of the petrodollar and secured the US dollar as the de facto world’s reserve currency.  This relationship held until the last few years, Saudi Arabia has been in talks with Russia to possibly sell an interest in Aramco to the Russians.  If this deal goes through, this would inexorably link the two countries and lessen Saudi Arabia’s ties to the US.


The other country has been tied to the US probably since the end of WWII and the US still maintains a US military presence in Japan.  Under the current prime minister, Shinzo Abe, Japan has been tearing down its economy with Abenomics.  Now it seems that Japan has opening talks with the BRICS to forge a financial ties into the CIPS system and eventually move away from the use of SWIFT.


The SWIFT system requires that users convert the money to be exchanged into US dollars before the transfer and after the transfer is completed the money needs to be converted into the currency of the recipient.  The CIPS system does not require the conversion and completes the transfer at a much reduced fee.

Smartphone Sales Declining


Shipments of smartphone out of China have collapsed 21% to 91 million units. Since 2013, shipments have exceeded 100 million units every quarter.

Eight of the top ten smartphone vendors have incurred a decline in sales. Apple’s standing of number 4 in vendor sales was replaced by Xiaomi, Xiaomi was the only company to show growth. Its shipments grew to 12 million units. Huawei remained the top vendor by shipping over 21 million units. Currently, the top four vendors are Huawei, Oppo, Vivo and Xiaomi, all are domestic vendors. Together they accounted for more than 73% of all Chinese shipments.

Although sales are maintaining in the east, the future of smartphone sales are a major concern because a downturn could have a serious economic impact on China. They smartphone industry is pervasive in China and has transformed the nature of their manufacturing base. They are somewhat reliant on the industry as a main source of revenue.

Considering that the main market for smartphones is the young generation and that age group has been severely impacted by the global economic slowing. The future outlook for an upturn in sales is unlikely.

Reason For Not Relying on Financial Charts

Let me begin by saying that I have followed Clive Maund for years and I find him to be an excellent technical forecaster. This post is not meant to malign Clive or any technical analyst.

That being made clear, I take a position that to rely solely on forecasting by charts is flawed. The main reason exists in that the tape is painted to exhibit what they want it to show. Therefore it is not a true expos’e of what is actually occurring in the market.

On Friday, Feb. 2, silver was smashed by about 80 cents. Mr. Maund reported his forecast on Jan. 29, showing his reasoning why silver should be heading higher. Looking at the chart shown in this post, you can identify the head and shoulders pattern he is referring to. It clearly shows why he laid out his forecast. But Friday, due to them (market manipulators) wanting to end the week with silver below the $17 resistance level, silver was smashed. If you look at the volume, this is the red colored chart, you can see the high spikes corresponding to the dips in the value. These spikes show the manipulators dumping paper silver on to the market.

One further point I’d like to express is that even without manipulation, forecasting with charts is not an accurate science. They just indicate trends and trends don’t necessarily go they way you’d expect, there is a margin of error. This is due to the trend is based on human emotions. It is like them forecasting the likelihood of booming sales of the iPhone X. When they initially announced it the pundits were saying that it would be a successful launch. If you look at what is actually happening to the iPhone sales, they are tanking to the point where Apple has scaled back production. The reason I used the iPhone as an example is because I doubt that the iPhone market is not hounded by manipulators. Forecasting is based on your best educated guess.