• Gold Standard I...
    07/28/2015 - 04:17
    Greece has no future, so long as it clings to the euro. The dollar won't servce you much better. A drachma will only harm the Greek people. That leaves one other option.

Renminbi

Capitalist Exploits's picture

What is China’s Banking System Telling Us?





If this is any indication we should see a big move in Renminbi

 
Tyler Durden's picture

Yes, It's Possible For A Gold-Backed Renminbi To Dethrone The US Dollar





"Mutually assured destruction" now best describes the uneasy stand-off between an increasingly indebted US government and an increasingly monetarily frustrated China. So here's a quiz: 1) Which country is the world’s largest sovereign miner of gold? 2. Which country doesn’t allow an ounce of that gold to be exported? 3. Which country has advised its citizenry to purchase gold? Three questions. One answer. In each case: China. Is it plausible that, at some point yet to be determined, a (largely gold-backed) renminbi will either dethrone the US dollar or co-exist alongside it in a new global currency regime?

 
Tyler Durden's picture

The Implosion Of American Culture





"... America has followed the Soviet Union down the path of re-engineering its ideological culture... shifting towards a new socialist middle ground where centralization has woven the macro economic system tighter around a supra-sovereign statehood... They will say no one saw it coming...    The sad reality is that the disorganized masses will remain ignorant to the whole process as they become consumed with television news drama that hides the structural truth behind the engineered cultural implosion of the American identity."

 
Tyler Durden's picture

This Sunday May Mark The End Of Western Monetary Dominance





Western dominance was born from a distrust in the dominant reserve currency at the time. Its decline will be because they followed the same route. And the canary in the coal mine is what’s happening in Switzerland this weekend.

 
Tyler Durden's picture

"There Will Be Blood": Petrodollar Death Means A Liquidity And Oil-Exporting Crisis On Deck





Recently we posted the following article commenting on the impact of USD appreciation and dollar circulation among oil exporters, as well as how the collapsing price of oil is set to reverberate across the entire oil-exporting world, where sticky high oil prices were a key reason for social stability. Following today's shocking OPEC announcement and the epic collapse in crude prices, it is time to repost it now that everyone is desperate to become a bear market oil expert, if only on Twitter...

 
Tyler Durden's picture

Fear Of "Surge In Debt Defaults, Business Failures And Job Losses" Means Many More Chinese Rate Cuts





The PBOC, which cut rates for the first time in two years on Friday, will have its work cut out for it. And in the worst tradition of "developed world" banks, Beijing will now have no choice but to double down on the very same bad policies that got it into its current unstable equilibrium, and proceeds with a full-blown policy flip-flop, leading to a full easing cycle that reignites the bad-debt surge once more. And sure enough, today Reuters reports citing "unnamed sources involved in policy-making" (supposedly different sources than the unnamed sources Reuters uses to float trial balloons used by the ECB and the BOJ), that "China's leadership and central bank are ready to cut interest rates again and also loosen lending restrictions" due to concerns deflation "could trigger a surge in debt defaults, business failures and job losses, said sources involved in policy-making." In other words, China has once again looked into the abyss once... and decided to dig a little more.

 
Tyler Durden's picture

Hugh Hendry Live 3: "To Bet Against China Is To Best Against Central Bank Omnipotence"





In the final part of Hugh Hendry's 3-part (part 1 and part 2 here) interview with MoneyWeek's Merryn Somerset the Sanguine Scot, perhaps surprisingly to some given his previous negativity - though fitting with his world view of fiat currency destruction - believes "to bet against China or Chinese equities, or the Chinese currency is to bet against the omnipotence of central banks. One day that will be the right trade, just not ready or sure that that is the right trade today."

 
Tyler Durden's picture

Have Central Banks Entered An Undeclared War?





The monetary tectonic plates are shifting, and predicting the next global financial earthquake is relatively easy.

 
Tyler Durden's picture

Frontrunning: November 20





  • Banks Had Unfair Advantage From Commodity Units (Bloomberg)
  • Report Notes Deals Between Goldman, Deutsche and Others Drove Up Aluminum Prices (WSJ)
  • Goldman, Morgan Stanley Commodity Heyday Gone as Units Faulted (BBG) - because when you can no longer manipulate, you move on...
  • Lenders Shift to Help Struggling Student Borrowers (WSJ)
  • Immigrants face major hurdles in signing up to new Obama plan (Reuters)
  • Distressed Debt in China? Ain’t Seen Nothing Yet, Buyers Say (BBG)
  • Banking culture breeds dishonesty, scientific study finds (Reuters)
  • Amazon Robots Get Ready for Christmas (WSJ)
 
Tyler Durden's picture

China's Shadow Banking Grinds To A Halt As Bad Debt Surges Most In A Decade





What is the main culprit for the contraction in China's all important credit formation? In two words: shadow banking. As Bank of America summarizes "shadow banking is being tamed" because "the changing structure of TSF suggests that Beijing’s efforts in controlling some types of shadow banking have made some achievements. Two major drivers for the steep decline of TSF from Sept to Oct were the falling of non-discounted bills (down RMB241bn) and falling trust loans (down RMB22bn). By contrast, new corporate bonds were at RMB242bn, a sharp rise from RMB151bn in Sept." In other words, China's shadow banking not only ground to a halt, it actually continued moving in reverse!

 
Capitalist Exploits's picture

Will the Dollar Bull Market Catch You by Surprise?





A bull market in the US Dollar is underway and its magnitude and duration are likely to catch everyone by surprise

 
GoldCore's picture

New Currency Wars Cometh - Gold To Be “Last Man Standing”





Currency wars are set to warm up again, after Japan's radical decision to further debase its currency through an intensification of already significant monetary easing. There was a palpable coldness from China's Premier Xi Jinping as he greeted Japan's President Abe at the APEC summit in Beijing.

 
Tyler Durden's picture

Frontrunning: November 11





  • No Sign of Thaw in Obama’s Brief Encounters With Putin (BBG)
  • Japan Lawmakers Prepare for Snap Elections as Abe Mulls Tax (BBG)
  • Global stocks rise, Brent crude hits four-year low (Reuters)
  • U.S., China to Drop Tariffs on Range of Tech Products (WSJ)
  • ‘Too-Big-to-Fail’ Rule Would Raise Bar for Bank Capital (WSJ) ... and mean even bigger taxpayer bailouts
  • Pot in New York: $100 Ticket. No Charges. No Record. No Nothing (BBG)
  • Microsoft unveils first Lumia smartphone without Nokia name (Reuters)
  • Davos-Man Ackermann Lured to Cyprus Bank by Billionaires (BBG)
  • Alibaba, Apple Talks on Payments Tie-Up Focused on China (WSJ)
 
Tyler Durden's picture

Petrodollar Panic? China Signs Currency Swap Deal With Qatar & Canada





The march of global de-dollarization continues. In the last few days, China has signed direct currency agreements with Canada becoming North America's first offshore RMB hub, which CBC reports analysts suggest "could double maybe even triple the level of Canadian trade between Canada and China," impacting the need for Dollars.But that is not the week's biggest Petrodollar precariousness news, as The Examiner reports, a new chink in the petrodollar system was forged as China signed an agreement with Qatar to begin direct currency swaps between the two nations using the Yuan, and establishing the foundation for new direct trade with the OPEC nation in the very heart of the petrodollar system. As Simon Black warns, "It’s happening... with increasing speed and frequency."

 
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