Another Nail In The Dollar's Coffin: CME Launching Renminbi Futures On August 22

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Sun, 07/10/2011 - 22:52 | 1442516 SilverIsKing
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Yuan Bitchez!

Mon, 07/11/2011 - 00:07 | 1442563 66Sexy
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A bit dramatic, isn't it?

Tyler said it himself: The chinese economy cannot sustain itself without exporting to western corporations.

IMO the chinese cant afford their own produciton when compared to corporate american buying power like WallMart: They pay more than we do for their own production. Vegetables dishes are cheaper, though... and BBQ lamb. Everything is imported.. and costs more. Chinese consumers prefer foriegn goods anyway, and look down on domestic produced goods, like clothes.

Forget Chinese domestic consumption w/o credit expansion and wage growth. Chinese wage growth would create social unrest and kill american corporate outsourcing, thereby killing their exports. They dont have consumer credit cards either, just debit.. another example of China being a free'er society than the US.

Europeans don't buy chinese crap; they actually have some degree of taste, and are not totally exploited by outsourcing and credit expansionism. Yes, they are skinny, and ride trains to work... so what?

The Yuan is dead money; and probably just as vulnerable as the dollar... until the Chinese finally wise up and introduce a silver backed currency to rally 95% of the worlds production and consumer base... and absolutely betray the financial elite; who obviously have some agreement with the top tiers of Chinese government.

Mon, 07/11/2011 - 01:03 | 1442709 SilverIsKing
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I just like saying, "Yuan Bitchez."

Mon, 07/11/2011 - 02:22 | 1442815 Max Fischer
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A bit dramatic, isn't it?

That's an understatement.  To imply that the USD is under threat from the CNY because the CME is going to start trading CNY futures is very misleading.  

Total trading in renminbi futures was ~20B per day in 2010. For a little perspective, there are ~$22T in gross notional Euro derivatives outstanding and ~$48T in gross notional USD derivatives outstanding. There's even ~240B in Danish Krone derivatives out there. 

If you're having cocktails at Dorsia on Friday night with Bateman, Halberstam, Allen and (dreadfully) Carruthers, and the conversation turns to growth in currency trading, make sure you mention the RUB and BRL, which are up 350% and 450% YoY respectively.

_ Max Fischer, Civis Mundi   


Mon, 07/11/2011 - 07:57 | 1443061 66Sexy
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With the occasional chime from Bateman: "I wonder what she'd look like without a head"

Mon, 07/11/2011 - 08:22 | 1443108 ratso
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Right you are Max. The problems in the Chinese economy will be showing up in force over the next 18 months.  Hard landing coming for the Chinese.

Mon, 07/11/2011 - 05:49 | 1442923 bigwavedave
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to be settled in USD.... move on

Sun, 07/10/2011 - 22:55 | 1442518 Cognitive Dissonance
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Are we (the USA) gonna make it until August 22?

In one piece that is.

Sun, 07/10/2011 - 23:01 | 1442527 Infinite QE
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I'd be surprised if we get past July 22nd!

Mon, 07/11/2011 - 00:01 | 1442629 66Sexy
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the site is dragging ass tonight... i think its the citibank advertisment banner.

Mon, 07/11/2011 - 05:51 | 1442925 bigwavedave
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im from 1966 and still sexy... and one of my best (dead) friends just loved that phrase... Draggin' Ass. Priceless

Mon, 07/11/2011 - 00:02 | 1442630 Vint Slugs
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Sure,  we will make it to Aug 22 and beyond.  The USA is a huge, and largely homogenous, socio-political construct.  The idea of its disintegrating in a short, finite timeframe is just not probable.  Look at Greece as an example:  as bad as the situation there has been during the past several months, the country stands.  Comparatively, the USA is a bastion of socio-political stability.  Everything's going to be just fine for now.  Maybe years down the road some other scenario will transpire.

Time to take a deep breath, read the kids a nice goodnight story,  then repair to the company of the faithful wife (and if you're lucky, dog).

Sun, 07/10/2011 - 23:07 | 1442535 Solid
Solid's picture

Round eye in big trouble.

Mon, 07/11/2011 - 06:54 | 1442970 j0nx
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I got your round eye right here ---> (_o_)

Sun, 07/10/2011 - 23:10 | 1442539 HungrySeagull
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Sun, 07/10/2011 - 23:11 | 1442540 HungrySeagull
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Paper is dead, All hail the HFT Silver.

Sun, 07/10/2011 - 23:16 | 1442544 caerus
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1.  Fly, Drive, Crawl to NYC branch of the BoC

2.  Open a checking account and convert as much $ as they will allow into renminbi

3.  Sit back and enjoy watching the (as Gibbon so eloquently put it) decline and fall of western civilization

sic sorry i meant the roman empire...he he


Mon, 07/11/2011 - 00:39 | 1442671 bakken
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Why would anyone exchange US fiat for an even more shaky fiat currency.  If you were serious you would be in PM.  The Chinese will be.

Sun, 07/10/2011 - 23:20 | 1442553 TruthInSunshine
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I am no fan of our governmental policies or the even more absurd/criminal policies of the private Federal Reserve (if I had the legal and political power, I'd revoke its charter, and compel the DOJ to launch an aggressive criminal investigation into all Federal Reserve Bank members & activities), but I'll be the possibly LONE contrarian here who sees a big USD rally coming for a longer than thought previously possible/likely time frame.

With what's coming down the pike on the global scene, the ability to project military power, where the U.S. already has a massive advantage with bases in highly strategic locations, will prove far more potent and timely than many here believe.

I will go one step further and argue the Chinese economy will falter worse than that of the U.S., and that the Chinese currency will falter badly, over the next decade.

Relative to all currencies, gold will shine, if only by besting some real dogs, however.

Sun, 07/10/2011 - 23:21 | 1442561 HungrySeagull
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The real dogs you speak of are only now catching and ripping the junkyard midnight shoppers to peices halfway to the outer fence.

Sun, 07/10/2011 - 23:42 | 1442608 oldman
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Truth is.

That military option is all that is left.

Truth is.

This country knows no other way.

Truth is.

And they have fogotten how long it has been since the US of A won a war.

 Truth is.

not a thing to do                    




Mon, 07/11/2011 - 00:03 | 1442625 TruthInSunshine
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Truth is that the military option has divined the economic order of the globe since man's earliest history.

It's an uncomfortable but undeniable truth.

I am no polly on the state of the U.S. Economy (nor the equally as bad or worse state of the Eurozone, Chinese or Japanese economies), but I am also of the belief that many adversaries or aspiring adversaries to U.S. Hegemony underestimate (rather than overestimate, as is oft stated in the case in the media) the truly horrific destructive and horrific weapons exclusively owned by the U.S. Government.

If shows of military force were a poker game, the U.S. has no discernable tell even as it holds a royal flush. The U.S. soft sells its true military capabilities.

I say this without emotional sentiment.

Mon, 07/11/2011 - 00:05 | 1442631 oldman
oldman's picture

Truth is.

This old man agrees with you and also, 'without emotional sentiment'.

Thanks for the post, Truth In Sunshine.

Mon, 07/11/2011 - 00:58 | 1442701 TruthInSunshine
TruthInSunshine's picture

Likewise, om.

It'd be nice to see military supremacy be used, long term, for righteous causes.

I'm not sure how often that's been the case over the course of human history, but sadly, I believe any such periods where it's been used so have been the exception, rather than the rule.

Forget righteous causes - I'd settle for ones that aren't tantamount to the intentional infliction of economic & human suffering.

Mon, 07/11/2011 - 01:23 | 1442753 HungrySeagull
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When 9-11 happened that week was reported that the Populations of Iran, Afghanistan, Iraq and Syria were all migrating any way they can to get the fuck out of Dodge.

Human suffering did continue as some gathered near the Turkish Border, the USSR Borders and so on.

We did not care because we were coming, someone is going to get hit and bringing Hell with us on the way.

The Civilians knew. So they choke the roads.

Mon, 07/11/2011 - 01:58 | 1442800 oldman
oldman's picture


Remember when the dollar was worthless in 1980-1983 or so?

And everyone thought it was trickle down/ high interest rates that strengthened it.

I always had a third reason that it became strong again----the US military attacked that superpower known as Grenada during that time----flexed its military might and actually won a war(?).

I don't want to see this shit come down, so I hope my return to see the show is wasted money, but who can say a word about these things?

Life is too short for it not to be interesting

and this is VERY interesting, I must say.

Mon, 07/11/2011 - 02:11 | 1442809 Peter_Griffin
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I was reading this last week that the US has developed a drone that can bomb anywhere in the world in four minutes, or some really small amount of time.  Same day, read the US government is trying to challenge that drone bombing is an act of policing rather than an act of war....  We have came to strange times that I do not like.

Mon, 07/11/2011 - 02:15 | 1442812 oldman
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There is nothing 'personal' for the universe---let go of prefernces and just hang out here with the rest of us do-nothingers, droning on and on and on

Let' s have some fun---the party's nearly over.

Mon, 07/11/2011 - 08:13 | 1443089 doggings
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I was reading this last week that the US has developed a drone that can bomb anywhere in the world in four minutes, or some really small amount of time.  Same day, read the US government is trying to challenge that drone bombing is an act of policing rather than an act of war....  We have came to strange times that I do not like.

this is only going to get worse, believe.

Mon, 07/11/2011 - 05:56 | 1442929 bigwavedave
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the fight went asymetric during vietnam. thats why the yanks lost. 


right now the export of inflation to china is an act of war by the FED and by design. weapons have changed. spending $1 million to kill an islamic 14 year old just wont work. get a grip and get with the program. 'the enemy of my creditor is my friend'

Mon, 07/11/2011 - 00:08 | 1442640 Raymond Reason
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Yeah they won't hesitate to bomb the world into oblivion.  When they can no longer prop up the dollar, these people....the Fed, the Treasury, the ESF, or whoever the hell is controlling everything will fear for their lives and will stop at nothing.  God help us. 

I hope they go quietly like Madoff, but doubt it.   They're the masters of the universe.    

Mon, 07/11/2011 - 00:51 | 1442691 bakken
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Long Term, Long USD. Yes.  China will not make it and really where will money go?  The Euro?

The point is:  China is really short water.  Really.  As the country experiences larger and more severe droughts, $2 trillion in the Bank won't be able to build enough infrastructure to save them.

Millions of people on the move in front of Northern droughts and desertification will cause upheaval in China worse than after WWII>>>>A Galactic Sized Mega Chinese Cluster-F*ck. 2018-2021?  It is hard to gloat over this since a huge number of people will die there.

#1 what?  A disaster that will make Africe look like Disneyland.

We may be broke in the USA, but in terms of water and space  we are fantastically wealthy.

Mon, 07/11/2011 - 01:12 | 1442711 TruthInSunshine
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I don't know why anyone would junk you, even if they legitimately disagree with you, rather than provide a rebuttal to your statements.

China's monumentous obstacle is a global economy that can increase far more "stuff" with incredibly fewer people doing the work, and this is a trend that will only accelerate as technology accelerates - and that means big problems for China in terms of keeping a massive number of young people in gainful employment.

China's problem is demographically explosive, to say the least.

It took over a 100 man-hours of units of labor to produce a car in the early 1900s. It now takes as few as 12. Most of us will see that 12 halved in our lifetimes, and that's not considering the new, modular types of production now under development, which will come close to eliminating human inputs in the manufacturing and assembly process.

Mon, 07/11/2011 - 06:02 | 1442933 bigwavedave
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the situation is thus. the yanks already have too much of everything they need. fat assed welfare mingers are the 'tell'. the chinese still have fuck all (as a group). the time for a full court press is now. that is the evil that is kissenger. we are on a full court press, playing defence yes. but playing for the low point scoring win. bust china and win the game. people say this is the chinese century. they are wrong. they will never get to buy the crap they make. 

Mon, 07/11/2011 - 09:01 | 1443240 qussl3
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The Chinese will solve it....

By damming the source of the Mekong and Ganges.

Indochina and India are the ones that are fooked.

Mon, 07/11/2011 - 08:01 | 1443041 fiftybagger
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"I will go one step further and argue the Chinese economy will falter worse than that of the U.S."


Yeah.  Remember 2008?  "Now that the U.S. is in recession, those Chinamen are going down for sure".  Right.  Even a stopped clock is right twice a day.  You clowns have been wrong twenty years running.


You may find it more profitable if you learned how to read a chart:

Sun, 07/10/2011 - 23:19 | 1442557 caerus
caerus's picture

Yes, you're making a wise call on the race to the bottom...euro prob first...but in the end its going to zero...

Sun, 07/10/2011 - 23:19 | 1442558 caerus
caerus's picture

its ALL going to zero...

Mon, 07/11/2011 - 06:16 | 1442945 bigwavedave
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i dont think it will be the euro first. i think it will end with the big dollar rally. there are smart people at the top. they let the game go on this long. they are not going to lose it by making it easy. china will pop first. it will be agreed in DC and Brussels to sacrifice the chinese. they will be left holding paper with 1 billion mouths to feed. 

Sun, 07/10/2011 - 23:28 | 1442568 mt paul
mt paul's picture

might be time 

to move to kashgar

get a donkey cart

grow melons.. 

enjoy the dry breezes 

off the Taklimakan desert...

Sun, 07/10/2011 - 23:28 | 1442572 Manthong
Manthong's picture

Silver in Chinese is "yin”. The word for bank in Chinese is “yin hang” (silver house).

Renminbi is "peoples currency" in the PRC and in traditional Chinese is “pinyin”.

So… Yin Bitchez ???

Sun, 07/10/2011 - 23:31 | 1442582 HungrySeagull
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If China Silver House is only standing Metal Exhange in this world, they can say Panda Coin 10,000, ASE 0.10

CME is turncoat turning into the Benedict Arnold of our time.

Mon, 07/11/2011 - 10:06 | 1443464 Sudden Debt
Sudden Debt's picture

Rubber in Chinese is "Condom".

It also means: "No strings attached"...

and that's why there are 1.3 billion of them over there...


Sun, 07/10/2011 - 23:29 | 1442577 slewie the pi-rat
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the crimex sez:  Accordingly, a need for capital risk management tools for the Chinese currency has emerged.

translation:  we need china's capital.  they can print yuan and sell it thru us, then they can buy Treasuries with the green stamps. 

actually, i haven't a clue, as usual...but, with china + banksters + crimex, i'm sure we'll all dream of unicorns & teddy bears, tonite!

Sun, 07/10/2011 - 23:32 | 1442584 HungrySeagull
HungrySeagull's picture

No my dreams of a dark sky with glowing ashes on a scale never before seen.

Sun, 07/10/2011 - 23:30 | 1442578 camoes
camoes's picture

So are we going to blame JPM if the renmimbi plunges after it starts trading at CME?

Sun, 07/10/2011 - 23:34 | 1442593 TruthInSunshine
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by camoes
on Sun, 07/10/2011 - 23:30

So are we going to blame JPM if the renmimbi plunges after it starts trading at CME?

Let me rephrase that question, properly:

So, why wouldn't any rational human being blame JPM for being at least partly responsible for rigging renmimbi movements in ways beneficial to whatever its interests are at any particular point in time?


Much better.

Sun, 07/10/2011 - 23:31 | 1442583 PulauHantu29
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The King is Dead!

Long live The Queen!

Sun, 07/10/2011 - 23:37 | 1442585 rapier
rapier's picture

This is an odd one.  The settled price is the price  "published", meaning set by the  the PBC. Exactly how is that a market?   How is that even possible or rather why trade something whose price is set outside the market?   Maybe I am missing something.  Isn't the settled price supposed to be the price at the market in question? In this case in Chicago at the CME not on some piece of paper issued in Bejing by the PBC.

Sun, 07/10/2011 - 23:40 | 1442606 infiniti
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