As news begins to leak out of January 18 being the day in which China will begin their Yuan-denominated oil contract, there are a few other rumors at play in which this gambit could go far beyond that of simply pricing oil in a currency other than the dollar. In fact in Greg Hunter's weekly review over at USA Watchdog earlier today, January 18 may include a global reset in the debt or currency markets.
“Earlier today, we highlighted Greg Hunter’s Weekly News Wrap-Up, which had some big bombshells on the corrupt Washington D.C. political front.
What may have been missed, however, especially if the report was not listened to in its entirety, was a brief mention of the launch of the petro-yuan, and the fact that Greg’s sources are saying the January 18th launch could coincide with a debt reset among nations.”
With this being said, there are some interesting other plays going back and forth between the U.S., China prior to this 'alleged reset', and it all stems from Washington's passage of tax reform just before the Christmas break.
“CHINA said yesterday that it will temporarily exempt foreign companies from paying provisional income tax on profits they re-invest into the economy, in a bid to stop foreign firms shifting their operations out of the country.
The move will help “promote growth of foreign investment, improve quality of foreign investment and encourage overseas investors to continuously expand their investment in China,” the finance ministry said on its website.
Analysts say a planned tax cut by US President Donald Trump, which could lead to a repatriation of earnings by US firms, poses a challenge China’s bid to lure foreign investment.
The temporary exemption on provisional income tax is retroactive from January 1, 2017, which means firms that have paid taxes this year will be refunded. ”
— Shanghai Daily
Ironically even Europe appears to be under pressure from the U.S. cutting taxes for corporations and individuals, because one of the biggest secrets in their banking system is the fact that much of the money U.S. corporations keep offshore are held in European banks. This means that should companies decide to repatriate hundreds of billions, if not trillions of dollars from the likes of Ireland, Germany, and Switzerland, then the deposits that hold the key to the leverage which keeps these banks solvent suddenly will disappear.
Despite all the rhetoric that 2018 will be a year of global economic growth, underlying this is still the massive amount of debt created over the past eight years coupled with the $300 billion per month of global central bank stimulus to keep both the markets and the banks solvent. And unless this ticking time bomb is addressed in some capacity (reset?) as inflation appears to be very much rearing its ugly head, then a collapse far beyond that of 2008 is very likely, and the consequences will not beneficial to any economy.
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