On Feb. 7, precious metal analyst and mining executive Jim Willie, announced that the global economies of Asia, and other parts of the world, are preparing for a new trade settlement note to replace the dollar in international transactions. What is projected to be called the Gold Trade Note to replace the U. S. dollar, this form of credit will carry the same protections that the reserve currency does, but will use a gold backed system of currency that will bypass the dollar, the Bank of International Settlement (BIS), and most centrally controlled fiat currencies.
The final blow to the USDollar will come from standard non-energy trade being settled outside any US$-based terms. The practice is accelerating, initiated in Asia, but spreading westward fast, urged along with a giant push in response to the Iran trade sanctions. Every action brings about an equal and opposite reaction.
The crux of the non-US$ trade vehicle devised as a USDollar alternative will be the Gold Trade Note. It will enable peer-to-peer payments to be completed from direct account transfers independent of currency, and most importantly, not done through the narrow pipes and channels controlled by the bankers with their omnipresent SWIFT code system among the world of banks. The Gold Trade Note will act much like a Letter of Credit, serve as a short-term bill, and maybe even push aside the near 0% short-term USTreasury Bills that litter the banking landscape. Any bond or bill earning almost no interest is veritable clutter. The zero bound USTreasurys open the door in a big way for replacement by a better vehicle.
The new trade notes will involve posted gold as collateral, whose entire system for trade usage will bear a massive gold core that also will include silver and platinum, maybe other precious metals. The idea is to avoid the FOREX systems, to avoid the USDollar, and to avoid the banks as much as possible in a peer-to-peer system that can be executed between parties holding Blackberry devices or simple PC to complete the payments on transactions. - Golden Jackass.com via Goldseek
China, along with several other Asian trade partners, have already begun exchanging goods and services outside of the U.S. dollar, both in oil, and in other products and resources. In September of 2012, China opened the first global oil wholesale market which bypasses the dollar, and allows nations around the globe to buy and sell oil in currencies other than the reserve. Additionally, the Asean conference, which took place in December between 15 Asian countries, and representing over three billion people, set forth new regional trade agreements and established the creation of a new lending facility specifically meant to compete with the IMF.
However, to create the foundation for a new means of international trade, and lines of credit which is to be backed by gold, silver, or other precious metals, nations must have a readily available store of the commodity to buy and sell Gold Trade Notes. To accommodate this, China has been working hard to melt down their growing stockpile of gold into 1 kg. ingots, which they can easily use to collateralize a gold based trade note, or even in the future, a new gold backed currency.
As the Federal Reserve continues to devalue the dollar, and global inflation is forcing many countries into a new currency war, the foundations of a new international trade note is nearing completion, and ready to replace the U.S. dollar at any given moment or monetary crisis. When you look at the continued zero interest rate polices (ZIRP) that the Fed and Euro Zone are imposing on their own currencies, it is only a matter of time before a large portion of the global economy completely disconnects from the dollar, and creates a monetary vacuum that China, and other Asian economies, are ready to fill.