Australia’s largest iron ore miner Fortescue headed by Twiggy Forrest has walked away from Wall Street, locking in a 14.2 billion Yuan loan from China.
At the same time the Australian Treasury issued its first Yuan bond shifting one quarter of its reserves into Yuan currency.
Washington’s closest ally has bankrolled its future through China, de-dollarising its international settlements for the Yuan no doubt infuriating the US administration.
The syndicated Yuan loan was made at sovereign level fixed term of 3.8 per cent arranged by the Bank of China and Industrial Commercial Bank of China.
According to Reuters this is the first time an Australian corporation financed itself in Chinese currency.
Twiggy is from a distinguished lineage of old boys, is one of those on the nose snobs endowed with arrogance from berth, who followed the Forrest traditional pathway to self-importance, reinforced by Hale School.
Who knows he could be a member of a squatter gentlemen’s club or three, whose membership’s right royal ancestral wealth grew on the backs of tribal chain-gangs.
Exceptional (adjective)
Superior, of higher intelligence, better quality, more worthy
Racist (noun)
Someone who believes that their race makes them better, more intelligent, more moral than people of other races
With China, much confusion stems from not understanding. In the west and in particular the US, the goal is global domination, to be the world’s leader and control global resources. The US prides itself on having the world’s most powerful military for that reason. If a country doesn’t align with US interests it’s destroyed. A quick search reveals the US has invaded or regime changed over 170 nations in it’s short history.
We assume China’s the same but it’s not. China’s interest is trade and for thousands of years that’s what they’ve done. If it wasn’t true the BRI wouldn’t be dubbed the New Silk Road. China sees no value in destroying, you can’t trade with someone who has nothing.
When Kissinger opened China to the world the intention was to exploit. Labor was cheap, the US could manufacture it’s products for peanuts but it backfired big time. Mass unemployment allowed poverty to flourish, living standards collapsed and everything gained was spent on the military. It was the beginning of the end for US.
No one can say the Chinese are stupid. In time, the peanuts became something of value and used for improving the nation. China has raised millions from poverty, has fast trains, beautiful cities, living standards eclipsing most others, the population have never been happier and most importantly, they have prosperity. Sure they’ve built up their military, so would you if you were surrounded by US bases.
We’re told China is conquering other nations and a threat to world peace but that’s not true, China’s interest is trade remember, China wants nations to prosper, you can’t trade with people who have nothing. For this reason China also invested their peanuts in the infrastructure of BRI nations, often at no interest and it’s working. It’s one of the many advantages of being a member, why over 170 nations have joined so willing and it’s why the west insists we believe China’s the boogy man.
Conquer (verb)
1: to gain or acquire by force of arms : subjugate conquer territory
2: to overcome by force of arms : vanquish conquered the enemy
3: to gain mastery over or win by overcoming obstacles or opposition
4: to overcome by mental or moral power
Invest (verb)
1: to commit (money) in order to earn a financial return
2: to make use of for future benefits or advantages
3: to involve or engage especially emotionally
Dominate (verb)
1: rule, control an empire that dominated the world
2: to exert the supreme determining or guiding influence on
3: to overlook from a superior elevation or command
4a: to be predominant in sugar maples dominate the forest
4b: to have a commanding or preeminent place or position
Prosper (verb)
1a: to succeed in an enterprise or activity
1b: to achieve economic success
2: to become strong and flourishing
brucebrod said – “… Welcome to the people’s republic of Australia under chairman handsome boy Albo…”
Pig’s Arse.
That’s right, folks, our fake foreign-owned unelected corporate “PM” AnAL has the appearance of a Pig’s Arse wearing glasses.
Because that’s what he is, folks. Seriously. And that’s all he is, there’s nothing else there of any conceivable redeeming value, inside or out.
Maybe AnAL should be heroic and volunteer to be the first into creepy Bill’s Soylent Green meat mincers. Because it might be Soylent Green, but if AnAL goes first, at least it will smell like pork. A Pig’s Arse, to be specific.
Only time will tell. Are we jumping from one, one-sided alliance to another? At least so far the Chinese have not made this arrangement on condition of our- their military policies.
If we had the guts to kick the U.S. military out of Australia, how long before we had no trade with U.S.?
Now that we have a foot in each camp, can we act more militantly independent from U.S. war policy?
Oh no! We’re all doomed! If we leave US domination we’ll all suffer. Why would anyone with common sense want to align with China of all places? We’d no doubt be forced to surrender to their dreaded BRI over 170 nations have willingly joined and prospered from.
No, dropping the US dollar in favor of the Yuan is a terrible idea. So what if the USD is collapsing, so what if the US is being destroyed. So what if China’s improving the lifestyle for millions, China’s the boogy man, don’t you watch tv or read the news?
Even the military will suffer. They’ll have no one to fight without the US. China doesn’t invade, it invests, they’ll have nothing to do. We might even lose our biggest target at Pine Gap.
Despite its flaws, the dollar is still the global reserve currency, hence, it will be the last currency to collapse due to the immense depth of its liquidity. As international fiat continues to devalue, the depreciating capital will flood into the dollar by default. This simple process will continue to revalue the dollar against its devaluing competitors.
As for the Australian Treasury’s issuance of yuan denominated bonds, does anyone know the ticker for these yuan bonds? [anyone got a link?]. And what duration are they?, long term, mid term, or short term?, and what’s the yield? Its the duration and yield that determines whether you’ll get your investment capital back.
With western bond markets at the end of their thirty year bull cycle, rising yields are making themselves known, meaning investors are selling, – so is this what its really all about? Extending the natural life span of the debt market?
To get the treasury yields down, requires more money printing, which further devalues the currency. Is this why they’re denominating bonds in yuan?, – so they can lower rates without devaluing the Treasury?
Is this an early indication that the AUD is depreciating against the yuan?
Surely there’s more to this?
CCP doesn’t need war when they’ve been handed global production on a platter. Best we can do is buy their guns, at interest!
“Meet the new boss, same as the old boss…”
There is a body of thought, and I think it is correct, that China will not go to war but that the Chinese “become” those whom they would wish to conquer.
This is done by the economic infiltration we see the Chinese perpetrating all over the world: conquest via economic stealth tactics-“becoming” and “owning” those they would wish to conquer.
And, governments all being corporate business ventures, and with the likes of Twiggy Forrest (who seems to have no allegiance to the country that has enriched him-and don’t forget about Gina either-this country is ripe for the Trumpian “deal of the Century!”
Switching from the US$ to the Yuan could be switching from one cabal to another.
Could be switching from one crime syndicate to another.
There is something about Forrest.
Start joining the dots -Untrustworthy.
He aint a patriot.
I learned years ago mining companies have Arms Length companies. They sell to the Arms Length at the port. The Arms Length does the exporting. No tax on the Arms Length. McFarlane, Ex MP surely knows all about these things. Another Untrustworthy
Bravo, well done !!
Twiggy loves China and he also loves hanging out at the WEF.
So Australia has joined BRICS now, US sanctions have been over-used and abused to the point where they have no value. Today Pongy Wong and Bent Elbow have been holidaying in Fiji, scaring the lefties that the place is sinking while trying to get a better deal from the chief of Fiji for a controlling interest, disguised as climate funding. Somehow in their minds they think we are going to believe this climate funding has some purpose or measurable outcome. Nice holiday anyways, lots of happy snaps.
Meanwhile Victoria has struck a treaty with the aboriginies representing the UN forthcoming carve-up. Soon, look forward to CCP warships to be visiting Melbourne for R&R. Big ones. It’s a game of “Go” where we keep getting surrounded. It’s 4D Go because of all the different colours and all of them constantly changing. If ww3 heats up how are we going to know which side we are on, or will it just be a random brawl dragging on through the decades. A missile lands in your apartment lounge room. Boom !!! Could be from anyone. It’s part of the new economy.
Welcome to the people’s republic of Australia under chairman handsome boy Albo🤬
From what I have read, it seems a quid pro quo arrangement where the Chinese loan of approx 2bil in our currency will provide Fortescue with a 5-year credit facility which can either be used to import and buy Chinese equipment or China will use it as pre-payment for iron ore export.
Fortescue, in their 2025 financial statement, is sitting on 6.6bil in cash, showing it doesn’t necessitate the need for a credit facility at 3.8% other than the quid pro quo arrangement, which may obscure some of the FX exchanges in their current form considering these reserves are held in Chinese private banks both here and in China.
Could it be high-level laundering if one was to ask, or is our Government colluding in the dedollarisation of the US dollar?
Russia’s Rosatom and Gazprom are also going the way of Panda bonds.
Why would Forrest need a loan?
I wonder if his green dream is making his business less competitive than BHP and Rio’s.
That could be the end of AUKUS ! Hope so.