Adonis Diaries

Posts Tagged ‘International Money Printing Council

More Copper Reserves for China (April 30, 2009)

 

            The price of copper was forecasted to fall 20% this year in this economic recession but it increased 50% instead:  China is willing to pay around $5,000 the ton of copper instead of buying more US Treasury Bonds.  China has purchased 375,000 tons of copper in March and increasing each month. The Chinese Central Bank governor Xiaochuan view the US financial famine to a black hole since the US is about to print more dollars to paying the Chinese State, thus practically devaluing the US currency and reselling the Chinese more hot air.  The Chinese are not about to re-value the Yuan before the US and the European Union restore credibility and confidence in the financial system.

            Among the many industrial usage of copper is the manufacture of hybrid engines in cars that China is putting in its market.  Italy has been promoting hybrid cars for a while and many more gas stations are filling methane gas.  Methane does not emit carbon dioxide.  The driver would start and accelerate on regular gas and then shift into methane combustion.  As a matter of fact, the Green Peace advocates regards the European Union policy of selling carbon dioxides permits to the heavier polluters is not reducing the CO2 in the atmosphere.  For example, Germany has reduced its polluting energy consumption by 15% by relying on Aeolians, solar panels, and biomass; thus, Germany would sell 15% reduction in pollution to Poland and Slovenia that are still relying on coal.

I read in a post the following information: 62% of the World’s copper is used for the production of small denomination coins such as the penny. 84% of small denomination coins are classed by the World’s Governments as missing – it is presumed that members of the public have stashed the coins as savings. On average, each person in the World has stashed $22.34 worth of copper in small denomination coins.

            Goldman Sachs predicts that the GNP of China will surpass Japan by 2010 and the USA before 2030.  India will surpass Japan by 2030 and become third after the USA.  Brazil will be fifth after Japan in 2030.

            China is using its two trillion dollars surplus to accumulating reserves in aluminum, zinc, nickel, titanium, indium and rhodium so that it may resume its industrial acceleration once the current crisis is stabilized. This policy of purchasing minerals instead of US Treasury Bonds is compatible with China recommendation of creating an international banknote indexed on the prices of a basket of raw materials as was proposed by John Maynard Keynes at Bretton Woods in 1944; the “bancor” of Keynes was based then on 30 raw materials.

I suggest in a previous post “The Third World War is Tolling” the folowing: 

“First, the developed States have to agree on another tangible standard (like gold) for currencies.  Gold would not do because the US has abolished it in 1967 because all the gold in the world could not sustain the huge amount of paper dollars circulating or intended to circulate around the world.  The alternative is a basket of depleting minerals that are essentials for manufacturing and production.  The processed minerals do not have to be rare but very essentials for development.  The US can agree to this idea since it has huge reserves in many important minerals.

Second, all the States that can account for at least 3% of all curency circulation should join an “International Money Printing Council” with tight control and monitoring creteria.  Any combined States with over 40% of cash money shares in the global market should have a veto power.

Failing a convincing and sustainable agreement for monetary stability the Third World War is altready in the planning stage as the easiest and quickest way out of that morass.  Only in major wars do printed money with no tangible backing has mythical values.  No, the next region for the war scene is not Iran: no European or US soldiers want to fight in this “cursed region”.  It won’t be Afghanistan: if Afghanistan was worth it then Bush Junior would not have invaded Iraq before stabilizing Afghanistan.  It won’t be North Korea: it is bordering China.  The batlefield will not be in any area bordering Russia.  It won’t be the Congo River zone: no Western soldiers is about to step in this infested and contagious disease plagued region with AIDS consuming 30% of the population. The next world war is in Sudan, this continent/State rich in oil and all kinds of minerals”.

Actually, Sudan is the focus of investment for China in the last two decades.


adonis49

adonis49

adonis49

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