Posted Apr 25, 2022 by Martin Armstrong
Israel has now moved to add the Chinese yuan to its reserve currency portfolio, which will create a natural hedge against the risk of insanity pushing for war by the United States and Europe. Adding the yuan to the reserve portfolio will automatically reduce the exposure to the dollar and especially to the euro, thereby creating a natural hedge, whereas a decline in the dollar and euro would imply a rise in the yuan and even the ruble.
The Middle East is divided and Zelensky pretends to be the Jewish hero, yet before the war, at the United Nations, Zelensky maintained a firm anti-Israel position. In 2020 alone, he voted for Ukraine affirming UN resolutions condemning the Israeli “occupation” of Judea and Samaria. He also opposed the Israeli “occupation” of Jerusalem and the Israeli “occupation” of “the occupied Syrian Golan.” After the war began, he suddenly became Jewish, asking for money and equating the Russian invasion to the Holocaust. Then Zelensky has the audacity to criticize Israel for not sending more money to his personal piggy bank. He tells everyone that World War III has already begun so, therefore, send all your money to him in Ukraine – no refunds accepted.
Zelensky is a fraud, and he was as corrupt as the rest of the lot in Ukraine. Corruption in Ukraine is certainly in the top 5 in the world. I was told that you MUST pay bribes and if you do not pay them to the right people, they will still retaliate against you. NEVER send money to Ukraine. It is as bad as all the fraud from Africa with people claiming they have millions and nobody to leave it to. He knows how to act always appearing in an army T-shirt and unshaven to pretend he is roughing it.
Zelensky had stashed $15 million in offshore accounts and that was before the war (See Gravitas). The rumor is his target is to stash at least $100 million now demanding $7 billion per month from the West. He has NO incentive to end the conflict and will not seek peace and as long as he is filling his pockets. What Zelensky has actually done is putting Israel at risk, for now, even Egypt has turned to Russia and is holding joint military exercises. The old Arab states that were against Israel in previous wars are now aligning with Russia as the US appears to be using Zelensky as its proxy to start a war with Russia. This is now turning up the heat for World War III to also engulf the Middle East.
It is curious that the United States’ closest ally in the Middle East, Israel, which pours dollars into the finances of the Jewish state on an annual basis, has realized that there is a risk to having only dollars and euros. Economically, Israel appears to have been awakened to the reality that the Neocons have divided the world economy and the sanctions on Russia will NEVER be removed, resulting in the total destruction of the world economy and the end of globalization. Including the yuan in their reserve currency portfolio is an acknowledgment that the Biden Administration has in fact destroyed the world economy as we have known it.
The Chinese yuan in Israel’s reserves at the central bank is just the beginning of a major change in the monetary distribution of its reserves since the collapse of Bretton Woods. Israel added the Chinese yuan, along with other currencies creating a natural hedge. Their reserves include the US dollar, the euro, and the British pound but will also include the Canadian and Australian dollars, the Japanese yen, and the Chinese yuan.
The Israel Monetary Commission has added the pound and yen, which will represent 5%, and the currencies of Canada and Australia will have 3.5% each. The yuan will be set at 2% of the portfolio. This shift has resulted in the decline of the euro’s share falling to 20%, declining from 30%+, while the dollar is declining to 61% from 66.5%. While the headlines talk about the dollar declining, they generally do not reporting the most drastic decline was in the euro which was over 33%. The British pound weight, on the other hand, almost doubled to 5%, returning to the level it last saw in 2011.
Likewise, Saudi Arabia agreed to price oil also in yuan as it is in a Petroleum Alliance with China-Russia. It should be noted that the change coincided with the Russian invasion of Ukraine and the Western sanctions on Russia. They have come to realize that the Biden Administration has singlehandedly destroyed the world economy rendering SWIFT to be just a political tool undermining its integrity. This has led China to push its alternative system that our model warns will eventually supersede SWIFT post-2032. Obviously, Israel has seen the handwriting on the wall and is attempting to gradually become independent of the SWIFT system itself.
The International Monetary Fund has also warned that the sanctions on Russia are undermining the dollar’s share of total world foreign exchange reserves which is rapidly falling to its lowest point in two decades as we are witnessing the rise of the Chinese yuan.