China "Attacks The Dollar" - Moves To Further Cement Renminbi Reserve Currency Status

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
impending doom's picture

business cum to a new level!

cartonero's picture

Is this what they mean by a money shot?

66Sexy's picture

Sad sign of the times when a currency with the image of a man who systematically murdered millions of chinese people is becoming the worlds currency... WTF; lets just use a Hitler image for the world currency...

China is one of the most evil governments out there; did we forget our history? This should be resisted at all levels. To not do so is treason. 

China is not our friend: Wake UP.. 

Judge Judy Scheinlok's picture

I don't know Turd. Wall St & the UST sold some toxic paper to China over the years and promised to pay back interest AND the original principle.

Maybe if the US kept that promise things would be different.

GoinFawr's picture

Indeed Judy, mirrors can cause some uncomfortable reflections for some. Now I am certainly not one to excuse any brutal 'ancient Chinese secrets' but Andrew Jackson himself wasn't exactly a 'peach' when it came to promoting basic human rights or dignity, yet his visage 'graces' the US double sawbuck. Hell, is promoting international peace and harmony what the US is really doing worldwide, even today?

LowProfile's picture

Yeah, because Lincoln was the epitome of respecting human rights.

He's your pick over Jackson, right?  Because Lincoln didn't turn against his own people like Jackson or Mao did.

Asswipe.

GoinFawr's picture

Hey Smegma lips,

thanks for the Strawman offer, but I'll pass. Murder is murder, whether or not your face gets stamped onto a currency. Cheesedick.

rocker's picture

At least Americans will reserve their right to buy gold at $5,000.00+ and Silver at $150.00+. 

Sad part is that when most Americans will figure it out and I will sell mine to them.

I can not say it enough. Got Gold, Silver, Palladium, Platinum, and my favorite Rhodium.  "Just Buy the Fukn Dip".

Exposer of Internet Shills's picture

it may not be americans doing that buyin'

Oh regional Indian's picture

Well said GoinFawr. Recent history is replete with false heroes and tall tales. I cut the cherry tree indeed. Forked tongue is a good moniker for "leaders" and "heroes" for the last three 3 centuries at least.

The age of Maya is well and truly upon us and Which is witch and hu is who are questions with no easy answers.

Iin CHina they block the internet and in the US, Charlie Sheen has the largest spike in followers when he signs up.

Enough said, eh?

ORI

http://aadivaahan.wordpress.com/2011/03/01/on-outsourcing-and-its-ills/

Michael's picture

China went on Renminbi devaluation and debasement on steroids just after the the housing bubble bust in the US around 2006. They went on a housing bubble build the likes of which the world has never seen. After both their and our currency collapse, the Chinese will still be left with all that 65 million vacant properties they are still owners of.

Bay of Pigs's picture

So why do they ask/encourage their citizens to buy gold and silver?

TGR's picture

Maybe because they are not.

If they were going to "ask" their citizens to buy gold, they would do it. If they were serious about encouraging their citizens to buy gold or silver, they would do away with the discouraging 17% tax on gold. Plus they would have regular, persistent coverage on all the channels and official mouthpiece media vehicles...but they don't.

If you are going to say China is asking its citizens to buy gold, then it is equally true the US was asking its citizens to buy gold in the '70s.

Both countries have either/are going through the liberalization of the PM markets, just the US did it 40 years ago and "encouraged/asked" its citizens to buy gold in the '70s, in a similar manner as China has been doing over the past decade.

 

 

GoinFawr's picture

@ Bay, the Chinese don't need to be 'asked', they know wealth when they see it; but it is now LEGAL for them to own PM's whereas before it wasn't, which is all the 'encouragement' they'll ever need.

17% tax? pfft, they covered that last week (hyperbole)

DosZap's picture

Most folks have skeletons in their closets, just not 50 million of them, and certainly not by murder, and your own to boot.

Snidley Whipsnae's picture

After a trial period of plain vanilla Yuan the Chinese will probably announce a Yuan backed by a commodity or a basket of commodities. Unless other countries follow suit their fiat currencies will become 'for local consumption only, does not travel well'.

I predicted this move by the Chinese prior to the real estate melt down...as soon as I started reading about the formation/evolution of the SCO.

China probably has a lot more gold/silver than they have announced. If they announce a PM or commodity basket approach to back their currency I would not be at all surprised.

Everyone has ignored the ties in SE Asia and the Mid East that have become closer due to the SCO. I have yet to read any mention of the SCO on ZH.

Here is a Wiki link to a brief description of the SCO...btw, the US asked to be allowed to attend SCO meetings as an observer and was denied.

http://en.wikipedia.org/wiki/Shanghai_Cooperation_Organisation

...interesting group of members and observer states. Australia was invited to observe but so far has declined the offer...Queen and country, ya know. But the Aussies will be in a predicament when the SCO strengthens because of their export dependency on SE Asia, India and the Mid East...and their proximity to their customers.

Why has the SCO been flying under the ZH Radar? It is fast becoming a very powerful economic trading bloc and is cooperating on many other fronts. Time to take a hard look at this organization, eh?

Member States

Observer States

Dialogue Partners

Guest Attendances

Member States

Observer States

Dialogue Partners

Guest Attendances

Member States

Observer States

Dialogue Partners

Guest Attendances

Member States

Observer States

Dialogue Partners

Guest Attendances

Meme Iamfurst's picture

The Yuan is still a paper currency.  I see no hint that it will be otherwise.

Money is no more than an illusion, it's strength is based on belief and faith.  Even if 'money' is pegged to gold, it is still able to be inflated.

Look at Brazil, and how they took a new piece of paper to replace the old piece of paper but convinced the people that the new piece had real value the old one did not.  Magic!

The Chinese are not dumb, however they have (like all nations) made mistakes in their calculations and more are yet to come.  The power of the Yuan is NOT in Chinese hands.  That you can take to the bank.

 

As for all this...

Member States

Observer States

Dialogue Partners

Guest Attendances

so what?  Just how much financial power do these add to the Yuan. Half are holding by a thread financially and politically.   What am I missing here.  Turkmenistan and India might be the only two with any buying power (and the US is puts lots of dollars in their hands more than China by far).  As for the selection of other names, you can be sure the US is head and head with China on those resources.  These Countries may not like the US, but they know that when China owns you THEY own you!

SWRichmond's picture

The IMF forbids central banks from backing their currency with gold.  For China to do so would give the other G-20's a tangible reason to begin heaping sanctions on China.  A shunning, if you will. 

http://www.imf.org/external/pubs/ft/aa/aa04.htm

Section 2.  General exchange arrangements

(a) Each member shall notify the Fund, within thirty days after the date of the second amendment of this Agreement, of the exchange arrangements it intends to apply in fulfillment of its obligations under Section 1 of this Article, and shall notify the Fund promptly of any changes in its exchange arrangements.

(b) Under an international monetary system of the kind prevailing on January 1, 1976, exchange arrangements may include (i) the maintenance by a member of a value for its currency in terms of the special drawing right or another denominator, other than gold, selected by the member, or (ii) cooperative arrangements by which members maintain the value of their currencies in relation to the value of the currency or currencies of other members, or (iii) other exchange arrangements of a member's choice.

Meme Iamfurst's picture

Thanks SWR...however that is why I wrote "IF" it was backed by gold.

As I wrote, money is an illusion, a fantasy, a trust and belief...nothing more.  I don't know yet if the US has blown it or not, timing and fate are never written in stone. 

But, like love lost, like words said which can not be retrieved...when we blow it, it will be so swift that it will be referred to as 'the great panic'.

Funny thing about the human mind, if you listen you can hear the warnings, you gut instincts are not dead...just deadened by controlled MSM brainwashing.

The dollar broke 78 and now 77.  Is this the shot heard around the world?  Or will the world decide the stakes are too high and put a floor under the criminal Mr. B, and resume the inflation party.  If not, then a can of spinach is worth an ounce of gold.

SWRichmond's picture

The Chinese may indeed intend to back their currency with gold.  But they have to become more powerful than they currently are to pull it off.  I see that Tyler has another post up just now asking the question.

DosZap's picture

Its barely holding 77, I expect it to spike back up to 80ish.

However, if it BREAKS the trendline,  look out below.........72?, lower?

LIFEBOATS.

falak pema's picture

66 sexy sounds like devil's avatar! '66'...like highway 66 but like '666' the sign of old mephisto...

asdasmos's picture

Not watching this is treason.

http://watch.bnn.ca/the-street/march-2011/the-street-march-1-2011/#clip4...

Eric Sprott

BNN talks to one of the world's leading investor's and investment strategists Eric Sprott, CEO of Sprott Asset Management and finds out just how precious the metals are.

JW n FL's picture

++++++++++++++++++++++++++++++++++++++++++++++++++++

Gotta Love the People of the far away exotic land of Canada!

Arkadaba's picture

Love Sprott - thanks!

Meme Iamfurst's picture

Sprott is as smart as they come.  And, a track record that stands up.  However, I see no one who has a crystal ball, and too many who are narrowing there focus when they should be widening it.

You want to kill existing businesses, kill inovation, kill discovery of new applications, kill new business ventures that produce something other than video games, then drive up the cost of metals to the point where only the elites can be considered a customer.

Hero today, demon tomorrow.

ronin12's picture

Is it metals prices going up or fiat prices going down?

JW n FL's picture

http://www.newyorkfed.org/markets/pomo/display/index.cfm?showmore=1&opertype=orig

 

http://www.kitco.com/charts/CPM_silver.html

 

I think silver has a more reasonable role to play in the world with regard to using it for trade in a day to day capacity... in the event that "We the People" lose faith in the debt printed every day for the banks benefit that "We the People" end up paying for in a Million and one ways...

 

An interesting video (it is long) that explains why "We the People" NEVER see any benefit from the Goobermint selling things like mineral rights for public lands.. or selling outright the public lands... forestry.. all of these monies are collected by the Goobermint but never make it into any report anywhere, all the money just walks off, disapears and "We the People" who own these lands NEVER see any benefit from these dollars (Tax Free, no paper trail anywhere, once again) trading.

 

This video is not bullshit. http://www.youtube.com/watch?v=QkfMuvVuETQ

 

akak's picture

Neither is our own government (whoever you happen to be).

 

66Sexy's picture

Absolutely agree. We will need to become new sovereign beings designating our own silver backed barter system and resist global and individual government movements to gain more state controls over the people..

our government is evil as well... but at least we enjoy free speech, and the right to bear arms.

China? They shut down the internet whenever there is any type of uprising. imo this is weak and shows their own vulnerability to uprising. what do you think they do with prostesters>?

I feel extremely hostile to censorship and government dictatorships... ntm the globalist agenda for world control by placating communist states with empty promises of 'inherited dominance'.

ColonelCooper's picture

"... but at least we enjoy free speech, and the right to bear arms."

Correction:  We pretend we practice free speech while we look over our shoulders, and we have the right to bear the arms that people who have no idea which end of the gun the bullet exits, say are okay.

DosZap's picture

China sucks far worse than we do w/regard to freedoms.

Say something out of line there, and you a get a 7.62x25 Tok to the back of the head.

While we are losing more, and more, we still have more than most nations.

Plus if we get to the point of Enough is Enough, we can always Draw a Line in the Sand.

John Wilmot's picture

"China's not our friend"

That depends on how you define "our."

China's not my friend, it's not your friend. But it most certainly is the friend of the people in New York and London who rule you and I...and those rulers of us are not our friends either. Dig? Don't fall for the nationalism-bait; nationalism is not synonymous with patriotism.

66Sexy's picture

Not touting nationialism; at all; quite the opposite; to clarify i support a sovereign movement. But if i must live under a government, i prefer one that doesnt shut down the internet whenever a peasant buys a pitchfork, and i like sleeping with sidearm legally.

Don't just surrender the country to china just yet.

Voluntary Exchange's picture

China being a state is in that respect allied with all other states.  And is thus an ally in all the lies theft and violence that states use to prey upon their "cattle" in each of the state "farms" that cover most of the planet. This will continue until enough people come to realize that taxation is theft, fiat currency is just another cute way to steal, and that it is an absurdity to expect to be safe and live in peace by empowering entities that are founded on "legal" theft, fraud, and violence.  Or to restate it another way, people who do not want to be victims of lies, theft, and violence need to stop supporting lies, theft and violence!  Basic ethics here.

 

http://www.youtube.com/watch?v=Xbp6umQT58A

http://www.youtube.com/watch?v=P772Eb63qIY&feature=channel

http://www.youtube.com/watch?v=02rvMwSlAu0&feature=channel

http://www.youtube.com/watch?v=BKyutB3u2bM

http://www.youtube.com/watch?v=3IRbwpc2XV4&feature=channel

http://www.youtube.com/watch?v=sLCEXtpTNYU

http://www.youtube.com/watch?v=ngpsJKQR_ZE

http://pixel420.com/pixel420/stateless/

http://www.lewrockwell.com/orig6/molyneux4.html

http://www.youtube.com/watch?v=suNzxthcTJs

http://www.youtube.com/watch?v=nOBD6v8g1F4

http://www.libertarianstandard.com/articles/david-j-heinrich/justice-for...

http://www.youtube.com/watch?v=KzyogKiXhEA

http://faculty.msb.edu/hasnasj/GTWebSite/MythWeb.htm

http://mises.org/journals/jls/1_2/1_2_1.pdf

http://polycentricorder.blogspot.com/2009/01/anarchic-ireland-rough-draf...

cranky-old-geezer's picture

Sad sign of the times when a currency with the image of a man who systematically murdered millions of chinese people is becoming the worlds currency...

I've been warning of this for some time, and it has nothing to do with our perception of Chinese leaders.  It's stictly an economic issue.  China is the new economic superpower in the world while America is fading economically.  It's inevitable China's currency would become the defacto trading currency at some point.

66Sexy's picture

There is much danger to this line of thinking. It is synonymous with accepting slavery. I know we are slaves now, but consider the masters. Once you accept the currency, you become the defacto property of the controlling faction or interests. I would wager, over time, the agenda of the communist chinese government would infiltrate into world affairs, and we would see our most basic human rights gradually deteriorate.. kind of like we're seeing now; because all our politicians are self survivalists or globalists, and are not loyal to the people. In fact, i would wager that would be one of the chief reasons for the deterioration; our governments irresponsible debt, and it is now compromised. I fear holding on to the rights weve had may be futile; but after all

"Better the devil you know, than the devil you don't."

cranky-old-geezer's picture

There is much danger to this line of thinking. It is synonymous with accepting the number of the beast.

You religious nutcases with your phony belief America is going to be saved because it's a "christian" nation are going to have your delusional heads handed to you.

... and we would our rights gradually deteriorate.

They're gone already, destroyed by OUR government.  Where have you been, in a coma?

Junk away you ridiculous religious frauds, enjoy it, your time is running out.

GoinFawr's picture

No junks from me, just accolades.

quasimodo's picture

Junks from me...taking shit out of context. Paranoia self destroyer.

Cathartes Aura's picture

accolades from me as well, tell it cranky!

"Better the devil you know, than the devil you don't."

you've yet to know your devils 66Sexy, but you may one day.

Snidley Whipsnae's picture

Call em like you see em Cranky! I might not agree with what you say but I will defend to death your right to say it... and, in this case I do agree with you.

It's going to take more than belief in 'American Exceptionalism' to extricate America from this FUBAR economic train wreck.

America has performed well in extremis during times past...No reason we cannot pull ourselves out of this FU...If we get rid of the crooks, work hard and think hard.

Trust in devine intervention is not going to get er done.

...and while working hard, thinking hard and ousting the slime ball bankers/pols...accumulate physical PMs.

66Sexy's picture

nothing to do with religion: has everything to do with currency control.

66Sexy's picture

They're gone already, destroyed by OUR government.  Where have you been, in a coma?

 

Can you speak your mind? Can you bear arms? They are NOT gone already: 

YOU are simply content to surrender them. NOT me.

At some point, a line will be drawn. We will all have to make a decision: bend over or stand. Love it or hate it, our constitutional government is still in effect; and i intend to press my rights.

 

cranky-old-geezer's picture

Love it or hate it, our constitutional government is still in effect;

What unbelievable delusion.

and i intend to press my rights.

Knock yourself out, they're ready, they'll drop you without a second thought.

66Sexy's picture

Who is "they"? Law enforcement? Law enforcement is compelled by oath to defend the constitution against all enemies, foreign and domestic.

I am seeing this poison more and more; the defeatist attitutide towards the constitution by the intellectual class. I think it is corrosive - and simply wrong. It is learned; by a propagandist systemic web based agenda that seeks to render americans as feeling helpless and forlourn... coercing them to lay down their arms and surrender before any fight has started. sounds like a globalist/NWO type agenda to me....

GoinFawr's picture

Well he talks the talk, but does he walk the walk?