Quantum Leap In The Gold Price, Ukraine-Russia Crisis And More - Golden Jackass + Swedes Doomed To Die In Debt + China Demands Gold As Collateral For Zimbabwe Loans

Greg Hunter: Dr. Jim Willie (aka Golden Jackass) says big news on the progress of convertibility of the Chinese yuan is being ignored by the mainstream media. Dr. Willie says, "Fully convertible capital account for the Shanghai Free Trade Zone is an enormous story, and it is not in the U.S. news. Why, because it signals that the yuan is about to become an extreme competitor to the dollar in trade settlement and, therefore, rival it as a global reserve currency.
By that, I mean used in banks as a reserve item. . . . They are making steps; they are more like big strides toward making the yuan a fully convertible internationalized currency.
You've got lots of countries with yuan swap facilities. You have Brazil, Australia, New Zealand, Japan, Germany and UK. These are big countries. These are Western countries, and they all have yuan swap facilities, which mean they are not going to conduct trade settlement in dollars. So, it's already in our Western camp. With all these developments toward a gold backed currency, you are going to see quantum leaps in the gold price. You are going to see the big move in gold when China is no longer going to be able to get London and New York gold."

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Swedes Doomed To Die In Debt

A study by Sweden’s central banksters has shown that most of their debt slaves Swedes will die before they are able to fully pay off their death pledge mortgage debts.

Orwellian UK BANNED Press TV: The study, which was conducted by the Riksbank and whose results were published on Wednesday, compared the incomes and loan repayments of 52 percent of Sweden’s adult population between 2010 and 2013, showing that 25 percent of adults in Sweden face a growing annual debt.
The study also showed that 15 percent of the population’s debt remains the same every year and that the remaining 60 percent of the population with home mortgages pay off their debts very slowly.
According to the central bank’s calculations, Swedes on average will still be paying their debts in almost 100 years.
The study showed that the average Swedish nationals with mortgage are in debt for nearly four times their incomes.
Because Sweden has a low unemployment rate compared to the rest of Europe and the majority of people living in the country are home owners, Swedes try to take advantage of record-low interest rates, which has led to a constant rise in real-estate prices.
Sweden has been warned on several occasions by the International Monetary Fund in relation to the risks of its financial system, which in the 1990s collapsed after a housing bubble burst.

Edited by WD

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China Demands Gold

As Collateral For Zimbabwe Loans

Submitted by Tyler Durden:inShare2China, as we noted, is happy to provide the financing to turn Africa into Disneyland - Monorails and all - but there is one catch... the loans must be backed by gold as collateral. As The Source reports, China wants Zimbabwe to use its mineral proceeds to guarantee any future loans having already extended nearly $1.5 billion in the last three years to Harare’s ailing economy. Various minerals have been discussed to back the loans "but we feel gold is more stablee," Zimbabwe's Mines Minister noted. Of course, China is defending the demand, claiming "it’s in accordance with rules and regulations when granting any loan" and adding that "it doesn’t mean that we will use the collateral."

As The Source reports, Gold may be used as guarantees for existing, future loans...

China wants Zimbabwe to use its mineral proceeds to guarantee any future loans, a Chinese official said on Tuesday, adding that Beijing had already extended nearly $1,5 billion in the last three years to Harare’s ailing economy. In February, Finance Minister Patrick Chinamasa said the two countries were negotiating what he termed a comprehensive financial rescue package.

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“We are discussing whether we can take proceeds of sales for some minerals as collateral for the loans,” said Han.

“The bank and the team from the ministry of finance are now working at a technical level on how they can set up such a mechanism, how much the collateral would be and how much loans they (Zimbabwe government) can get.”

In principle, the funding request and use of minerals as collateral has already been accepted, Han added.

He said Chinese loans to Zimbabwe were nearly $1,5 billion over the last three years – about 37 percent of the 2014 national budget at $4,1 billion – and that it was now burdensome for the government to repay.

China explains this is business as usual...

“We are asking for collateral because it’s in accordance with rules and regulations when granting any loan, but it doesn’t mean that we will use the collateral. This is the concept that we are now discussing with the Zimbabwe government,” said Han.

So not hollowing out another nation's reserves at all. But Zimbabwe adds...

“We have looked at gold and diamonds, which we are considering as part of the securitization,” Deputy Mines Minister Fred Moyo says in phone interview from capital, Harare.

Government may also consider using chrome, “but we feel gold is more stable,” Moyo says

But one has to wonder how likely it is that Zimbabwe will promptly repay billions of dollars of loans - given their track record - and what a great way for China to transform its excess USDs to Gold (and get paid interest while it waits).
Especially in light of the ongoing push for a multiple currency system in the nation (i.e. Zimbabwe is about to start printing again)...

Zimbabwe Multiple Currency System Essential to Economy: Mangudya

Multiple currency system is “sine qua non for turning around the fortunes of the economy,” Reserve Bank of Zimbabwe Governor John Mangudya says in 1st statement since assuming office May 1.

Economy faces “significant” challenges, incl. lower domestic demand, deterioration in BoP, banking  “vulnerabilities”

Lack of liquidity and its limited circulation within economy remains biggest immediate challenge; central bank must find solutions to lack of formal interbank market and lack of lender of last resort

Central Bank to arrange for funding to capitalize itself, become lender of last resort

Seems like China is on to something!

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