Countries extract their Gold from American Vaults ; Venezuelan hyperinflation Reaches New Record ; Sino-Russian giant pipeline of 3000 km will be operational for 2019.
Countries extract their gold from American safes
The United States is beginning to lose its dominant position in gold. More and more countries are avoiding the US dollar in their international trade relations. In addition, countries are demanding that their gold reserves stored abroad return home.
Turkey was the last country to ask for gold, and withdrew 220 tonnes of gold from the US Federal Reserve on 19 April 2018. The country's 220 tonnes of gold are valued at $25.3 billion. Turkey has followed countries such as Germany, the Netherlands, Austria, Austria, Belgium, Russia and China which have already started to repatriate their gold stocks.
There is a real lack of confidence in the U.S. Treasury which currently holds 261,000,000 ounces of gold mainly at Fort Knox, according to GOLD TELEGRAPH. Furthermore, the official gold reserves have never been thoroughly independently verified.
Thus, instead of relying on the words of the American government, countries feel it is safer to recover their gold, especially in this period of trade wars and high tariffs initiated by the United States.
Sino-Russian Giant Pipeline of 3000 km will be Operational for 2019
The huge "Power of Siberia" gas pipeline, which will deliver Russian natural gas to China, is nearly 85% complete and will be ready for use in 2019.
The pipeline will enable Russia to become China's largest natural gas supplier as demand in the country increases.
In 2014, the both countries signed a 30-year, $400 billion contract to deliver 38 billion cubic meters of Russian gas to China each year.
In addition Moscow and Beijing plan to build another giant pipeline, the Power of Siberia 2, which will deliver 30 billion cubic meters of natural gas per year.
According to journalists from RT, Gazprom leader Aleksey Miller said that Chinese gas consumption is constantly growing. It was over 200 billion cubic meters in 2016, and will soon reach 300 billion cubic meters.
Venezuelan Hyperinflation Hits New Record
Inflation in Venezuela has risen to +24 571% in the last 12 months.
President Nicolas Maduro's socialist government controls the economy and is facing a deepening crisis with food and medicine shortages.
Analysts denounce a bad management of the economy by the government of Venezuela. This includes a lack of currency control, as well as low oil prices which are the country's main resource, according to REUTERS
The last figure comes from a report by the National Assembly's Finance Committee covering the period from May 2017 to May 2018. Meanwhile, the consumer price index jumped + 110.1% in May.
BUNKER GROUP