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For First Time Ever PIIGS Fly Higher Than BRICs
For the first time ever, the combined risk of the PIIGS (Portugal, Italy, Ireland, Greece and Spain) is greater than that of the developing BRICs. China is now well on its way to global domination and risk-haven status. Renminbi reserve currency anyone?
h/t CreditTrader
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Thats the idea over time, as china keeps increasing its gold reserves.
Renmimbi as reserve, not likely anytime soon. Even after it de-pegs from the dollar it will need to be around for a while free floating to establish trust. Though think China will be in a great position long term after they have time to address some of their large problems and the current bubble they are blowing.
Don't you just feel like the capos have locked the gas chamber and now we wait for the Zyklon B to drop?
Short term thinking, monetary system is dead. If U.S. does not recover and eventually defaults, China will cease to grow if not implode.
Anyone following the mini-drama playing out in Copenhagen? Both funny and sad to see Obama go crawling:
"(From Sam Coates, Chief Political Correspondent) UK diplomatic sources confirmed there had been a major setback after China took huge offence at remarks by President Obama over the need to independently monitor every country carbon emissions.
In his speech President Obama said: "Without any accountability, any agreement would be empty words on a page" - remarks the Chinese interpreted as an attempt to humiliate them, prompting Prime Minister Wen Jiabao to return to his hotel.
President Obama will now hold a second round of talks with Mr Wen in an attempt to patch up the disagreement."
http://www.timesonline.co.uk/tol/news/environment/copenhagen/article6961...
"over the need to independently monitor every country carbon emissions"
is that similar to the need to independently monitor nuclear weapons in israel or independently monitor TBTF financial institutions including the FED?
yay i finally got junked, cheers!
I have been watching the climate summit more than ZH too!!!
I was hoping Tyler/Marla will do a piece on Constipagen. Thats where the psuedo war of the world is going on and I am glad to see that no single country is the powerhouse anymore.
No one gives a shit about climate over there. US et al want the crap-n-trade program to take footing (hence the strict need for independent verification of emmission). Otherwise any country can sell million credit without doing anything and the carbon credit will lose value.
A no outcome is the best outcome we can hope.
And Obama should focus on independenty auditing his own house (Fed) before lecturing anyone else.
Obama is now turning into the worst president ever... insane
I rather have the shamwow guy be prez now
you mean PIIGS can't fly and BRIC is the new mortar
China executes rogue trader, millions still missing.
http://www.reuters.com/article/idUSTRE5B71VC20091208
Who securitized all those Mortgage BSs? Will we ever have a conviction?
Blaming securitized products for the Great Recession is like blaming World War I on the tank and machine gun.
Actually Kingsword news has a great interview with L. Yamada where she actually discusses that possibility. She actually views that as part of their reasoning of purchasing gold.
'If you didn't care what happened to me,
And I didn't care for you
We would zig zag our way through the boredom and pain
Occasionally glancing up through the rain
Wondering which of the buggers to blame
And watching for pigs on the wing.'
-Pink Floyd
'When brokers get on a plane it proves that pigs can fly.'
-Anonymous Monetarist
How can China, with a central planning communist government, now be considered the world's reserve currency?? They will only obey laws and agreements as long as it is to their advantage. The major companies in China are largely owned by the central government. China will implode at some point. EU will break up since the Euro Zone can only function in an expanding credit envirnment. What's left. A beat up US dollar. OH, the USA also has the world's largest military and gold holdings. That counts for a lot.
really ? you can confirm these gold stashes?? is that all the gold bugs or the gov?
yuan as reserve? ROTFL.
There never WILL BE THE DEMAND to satisfy China's capacity of now! NEVER.
There isn't enough oil supply in the WORLD so that every chinaman and dottie can drive a fucking car like we in the west do.
For China to "take over" would require 6 new Ghawars...just look at oil consumption per capita on wikipedia.
China is a bankrupt state as surely as we are. When you sink your efforts into NONPRODUCTIVE "assets" they are NO LONGER ASSETS. We built mcmansions, they built needless factories. What is the difference? Neither one can produce ANYTHING at a profit.
And the Chinese credit bubble?
China as a reserve currency will never happen; no private property rights, no intellectual property rights, patents, copyrights, not to mention civil rights. For all of the warts the dollar has, and there are plenty, gimme USD any day of the week, or gold.
The question is which token goes the way of the doe doe first! Then the next question is, "will ours/theirs be like that one?" As long as interest is attached to general notes (tokens) of circulation the expansion of debt will crater the thing -- that is a mathematical fact perpetually obscured by collective cool aid. Even Ron Paul doesn't go there... Gold backed interest based new deal? It too is then terminal. Its not like usury is not mentioned as an "avoid" in ancient literature -- its just that now our text books don't allude to the fact that the reason for such suggested prohibition is "not" ethics but that all such systems are terminal. Doh! They break -- period.
If China comes out with an "at interest" currency it too will be terminal -- they all are. Maybe this holiday season I can go to Walmart and purchase an extend and pretend (un) calculator so I can go back to dreamland and the familiar "funny math" which pervades the notion of usurping tokens!
When was the last time the Sun in our sky which warms us and grows our food -- asked for a "take" on the deal? In fact where can you find a likeness in Nature of Interest? You can't -- for good reason. Its a scam.
WAKE tf UP!
i believe selling one's soul to the devil is almost as bad as an ARM loan
Renmimbi will not be the reserve currency, though possibly a default currency. However, it'll have to float freely which will likely fuel inflation and too much of that is bad for China domestically. Alot of shoes have to drop yet before China becomes more than a paper tiger.