by Bill Holter, Miles Franklin:
China announced swap agreements with Argentina over this past weekend, they also said their mutual trade would be settled in yuan. If you recall, Argentina just recently defaulted on debt. A New York judge then ruled against Argentina’s plan to hopefully restructure. This looks to me like China has ruled against the New York judge!
China has also in recent months been globetrotting while putting in place “swaps” and lines of credit with many potential trading partners. Unlike the U.S., they have not ignored African nations either. They have also set up “yuan trading” hubs in some very “Western” nations including Britain, Germany and France. Very methodically, China has put in place trade and finance systems which have no need for dollars and/or clearing functions performed by the U.S.
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