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Goodbye Dollar, Hello Yuan

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You know what’s it like, the driver stands there in front of the car that has just hit you up the back while looking at something happening down the street rather than checking on you hitting your breaks…and yet, he says “sorry, but you stopped too quickly, it wasn’t my bad driving”. Why is it that people just refuse to admit the truth even where it comes up and slaps them in the face? It’s exactly the same with the Death of the Dollar. Denial is the first stage in the mourning process that people go through when they have lost a loved one. Yes, just the mere fact that there is many an American out there who is actually denying this means that the Dollar is lying feet up on its back, six feet under already today. They are simply, in denying the fact, espousing the 7 stages of bereavement. The Dollar is dead. Today it’s Australia that will be sending flowers to the Americans.

ASX, the Australian Stock-Exchange operator and the Bank of China announced today that they are going to provide a Yuan settlement service between the two countries by the end of the first half-year 2014. China represents the biggest trading partner for the Australian market and trading in Dollars has no sense today. Transactions have been increasingly made in Yuan rather than the Dollar over the past few years. This new agreement comes just after last October’s agreement between the Eurozone and China and the currency-swap deal.

For all of those out there that will be screaming from the rooftops that China is slowing down, that the economy is under-performing (incidentally, they are still performing way better than any of us in the western world) the Chinese currency is one of the top traded currencies today in the world, and Australia has just said they don’t care if the economy is slowing down. The reason why the deal has been struck is because they are looking at China in the long-term view.

Since September 2013, the Yuan has been in the top ten of tradable currencies, according to research carried out by the Bank of International Settlements. The Yuan saw a jump from 17th position in 2010 to 9th place in 2013. There may be a slow-down in the economy and there may be problems with the structural reforms undertaken by the government, but in the long-term the Yuan will be traded more and more. The Australians are proving that today.

The financial market reforms have been centered on liberalization of the capital account and the convertibility of the Yuan. The only countries that offer complete convertibility at the moment are the USA, Japan and Australia.

Certainly the shadow-banking problems are far from over. There will be more that come out of the woodwork in the coming weeks. It is estimated that 40% of the 10 trillion Yuan in trust products that are used in shadow banking will mature in 2014. That means that we could be in for a lot more examples of the $126 million-worth of products issued by Jilin Province Trust that defaulted on the repayment to investors over the past couple of weeks after having made loans to the failing coal company Shanxi Liansheng Energy (at the same time as 6 other trusts also made loans of up to 5 billion Yuan to this company that was already bankrupt and dead). 80%of trust-product principal is going to be repaid to investors between 2014 and 2016. That could spell trouble.

Bailing out trust investors continually will bring about problems of financial stability of the country. But, in the long-term there is the belief that the Yuan will succeed. All of that is true, but the Dollar may well be dead completely, and buried, before the Yuan fails. 
In the process of acceptance of bereavement, the next stage after denial will be anger. Then the US will enter the period of bargaining with the rest of the world to try to save its place somehow on the international scene. Once it has been through the penultimate stage of depression (oh, no! Not again!), it will finally accept. But, for the moment, they shall just keep on denying lock, stock and barrel. The rest of the world, like the Australians, are seeing to it that the Dollar dies a quicker death than it would perhaps have normally done.

Remember it’s not the value of the Dollar that is important or whether or not the Yuan can be a valued asset in the world to trade with, it’s the perception that we, as consumers and countries, actually have of that currency. The Australians are showing that the Yuan has just been perceived as possibly of greater value than the Dollar.

Tissue to dry your eyes?

Originally posted: Goodbye Dollar, Hello Yuan

  You might also enjoy:London Housing: Same Old Story | What’s With the Chocolate? |  Banks: You Can Bank on It! | China: What Happened to the Gold Data?

Stiglitz: “Sick”! | Hyperinflation – 10 Worst Cases | Death of the Dollar | You’re Miserable USA! | Emerging Markets: Lock, Stock and Barrel | End of the Financial World 2014 |  Kristallnacht on Wall Street? Bull! | China’s Credit Crunch | Working for the Few | USA:The Land of the Not-So-Free  

 

 

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Thu, 02/20/2014 - 13:47 | 4458092 pupton
pupton's picture

Here's my stupid nit-pick:

"espousing the 7 stages of bereavement."  Uh, I count 5. 

Thu, 02/20/2014 - 13:39 | 4458034 Sufiy
Sufiy's picture


Koos Jansen: January Chinese Gold Demand All-Time Record, 247 Tons 

 Koos Jansen reports on continued unprecedented appetite from China for Gold, according to his information, after  the unprecedented demand of 2,181 tons of Gold from China in 2013 Chinese Gold demand hits All-Time record of 247 tons in January.

 

http://sufiy.blogspot.co.uk/2014/02/koos-jansen-january-chinese-gold-dem...

Thu, 02/20/2014 - 13:37 | 4458021 Peter Pan
Peter Pan's picture

Even if the yuan, the dollar and the euro are still in existence in the future, the reality is that their value will have been hammered.

So if you need to trade, all these currencies are fine, but if you need to store value all these currencies are toast.

The fact of the matter is that fiat currencies reflect underlying fundamentals of their respective currencies in the longer run and the longer run fundamentals are not too good for any of these countries/regions.

Thu, 02/20/2014 - 13:24 | 4457944 screw face
screw face's picture

Quantum computing dictates a thermal nuclear reset in the near future, this issue is purely academic,

MOAR Plutonium.

fc

Thu, 02/20/2014 - 13:23 | 4457931 DerdyBulls
DerdyBulls's picture

We did not colonize, or go on a military rampage, so  common in past empire building.

Is this a joke?

Thu, 02/20/2014 - 12:25 | 4457577 EON
EON's picture

I believe 2/3 of all currency in circulation is either the u.s. dollar or the euro. It is pretty ridiculous that the yuan would be able to be a world currency in the near future. it wasn't too many years ago that we wouldn't even trade in yuan nor rupee. the chinese economy is still built by japan, the u.s. and europe, and it can be brought down just as fast with this sluggish economy. factory production has already been moving to other countries.

Thu, 02/20/2014 - 11:45 | 4457408 KingTut
KingTut's picture

You have to remember how the US became trusted enough to manage the world's reserve currency.  We defeeated the Nazis and the Japanese, and eventually out competed the communist USSR.  Although we tend to be very hard on ourselves, we inherited several empires at the end of WW-II, and managed them admirably.  We did not colonize, or go on a military rampage, so  common in past empire building.  The world is a vastly more prosperous palce than it was in 1944 (Bretton-Woods), due largely to the generosity of the US.  We funded the world's development at our own peril, and are now  running out of steam: we cannot keep supplying the world with ever more dollars, without destroying ourselves (Triffin dilemma comes to its end).  The transition away from the dollar is a natural process, and will be healthy for the US in the long run.

If you think the Chinese are up to running the reserve currency , think again.  They aren't even close.   As Jim Rickards points out they have so much cash, the government doesn't issue bonds.  But without bonds you can't have the reserve.  Sovereign bonds are vastly safer than bank credit money, and you certainly aren't going to keep a vault full of paper cash.  No bonds = no reserve.

There is NO ONE strong enough, deserving enough or trustworthy enough to take the reserve away from the US.  Yet the US is maxed out.  The new reserve will have to be an international standard. Rickards suggests the IMF's SDRs, which are a basket that include the Yuan, Dollar Euro and probably gold. 

As for the Aussies, they HAVE to do what the Chinese want.  They supply vast amounts of raw material to the Chinese manufacturing engine and are not in a position to argue about the settlement currency.

Thu, 02/20/2014 - 14:01 | 4458196 the wet spot
the wet spot's picture

The Fed is still the cleanest-dirty shirt.  No one will ever trust China enough to hold reserve currency status.  No one.

Thu, 02/20/2014 - 11:28 | 4457332 topshelfstuff
topshelfstuff's picture

"""For all of those out there that will be screaming from the rooftops that China is slowing down"""

 

Though mainly China, all countries get "dirtied" in our MSM, a needed Script to go along with the "Cleanest Shirt" in the laundry basket BS story we and the world are fed with

 

A good idea is to recall the old mind-bender, when you first heard the fable about choosing to be paid One Penny on the first day and then getting paid Double the following day, and Double again the next and every day for one month, 30 days, and then seeing it would amount to a Total of $10 Million at the end of the 30 days --- that's the best way of showing the Power of Compounding ... and Why talk about China's Growth is "Slowing" is soooo misleading ... just
the Monetary Growth now is equal to more than the Total GDP of China 1995. You need to look at Monetary Growth, not just the Percentage, because Compounding 10% isn't going to go on endlessly, but the Monetary Growth is Illuminating to see, when viewed with this understanding.

 

This Link gives you great info, and details on China's Growth over the past decades.

China's gross domestic product (GDP) growth - Chinability

http://www.chinability.com/GDP.htm

 

and also view this link and view

China's wealth increase Annual disposable income - urban and rural households

( something that can be turned upside down to view what's happened to the US/UK led West's People, because it certainly is something tptb wants to keep hidden while trashing others)

BBC News - China's economic miracle

http://www.bbc.co.uk/news/world-asia-china-20069627

 

Thu, 02/20/2014 - 10:14 | 4457003 Save_America1st
Save_America1st's picture

I just can't read this Pivot Farm crap...are they foreign?  The entire first sentence sounded more like it was written by Boris Alatovkrap, and then he's the first guy to leave comments...makes me wonder.  

Thu, 02/20/2014 - 10:32 | 4457090 Obese-Redneck
Obese-Redneck's picture

Ya think, stupid?

Thu, 02/20/2014 - 09:38 | 4456771 RaceToTheBottom
RaceToTheBottom's picture

I am reminded of the MOnty Python skit where the guy keeps saying, no its just a flesh wound after each arm, leg etc is lopped off....  Reminds me of either Uncle Sam or the dollar, maybe both.

But until the marketplace says the arm is lopped off, it isn't lopped off and the con continues.

Thu, 02/20/2014 - 09:21 | 4456766 Randoom Thought
Randoom Thought's picture

Just switching from the dollar to the Yuan does nothing toward getting them to their long-term goal. However, it moves them along the way of the short-term goal of destroying the independence of American people.

Thu, 02/20/2014 - 10:23 | 4456740 Raging Debate
Raging Debate's picture

Sometimes thinking simply helps, even when some of the fig leaves of complexity come off. FOLLOW the money. The US has a really big stick to have forced upward valuation of the Yuan. But it didn't use it. You had Hank Paulson and Geitner publically gripe about it (a little) and the Chinese did revalue a smidge. In the short term, rebalancing trade is going to hurt both countries but longer term it is going to happen. China may be like US 1932 but they got the gold and got the manufacturing. They also did get the negatives like the US like all of the pollution as an astute commentator pointed out. Remember the smog and acid rain?

 Events that took centuries not all that long ago are happening in decades now. So it it may be easy for some to think like Jim Rogers that China owns the next hundred years. Even if the leaders do keep making some decent decisions and use that very valuable seed corn well, I give them more like a 20 year run after there depression, maybe 30. Trade is going to balance a lot faster and I explain a little bit more of why I think that is in a second. While we do rightfully decry corruption and hubris, the job of the reserve currency is protect global trade. China is going to have to spend a shitload of money on military and both America and Russia are selling in gobs. Despite how modern Bejjing may look, think of how much dough its going to cost to modernize all the factories and clean up the polllution there, never mind the rest of the country which is HUGE and mostly undeveloped. To continue "growth" while needing to employ a billion people all screaming "freedom!" With freedom comes regulations which yep - hinders growth and there wages had to rise and certainly they have, to the point they wind up like the US in the 70's, but China is already there just as the big investors are looking at the US instead now and that recent sales of treasury article here backs up this contention.

Remember Clinton (just substitute banker for US president since JFK) lifting all those trade restrictions and campaign contributions from the PRC? Remember supercomputers and missle tech? It was merely another round of ping-pong but one would have had to really do a ton of homework over the decades in geopolitics and economics. While the country seemed fine, who cared? I'll be honest and say I didnt. I wish I had protested that rapist Clinton. The man is a bona fide super genius but is very much a sociopath. Obama still loves kissing his ass and Clinton can tell him to get him another cup of coffee.

Many seem to know history and speak of Rome. What were all those Senators doing then and what are they doing now? But not all of the intent is evil, the leadership are total bankers because that is what could work for a time as a model, it is cyclical and we need to return to save and invest. Politicians have become day traders. Bankers have the access to the best information, knowledge is power and the US is best at this (sux about the police state what a waste of dough but very profitable for a few. Follow the money.

 When you see snippets by paying attention like Obama discussing what the tax deal might be with corporate America to bring the money back home (Now that labor is $12 an hour and no bennies but great productivity) it means that is already happening, the proles will habe to wait until Wall Street can make a "package for you". I'll just follow the money thanks and while banking must and is becoming boring, I'll wait a couple years for the sociopaths to retire, when the fun is gone such go seek thrills elsewhere.

Now let me attempt to step way back and say a couple things you may not like but perhaps considered. Nah, I changed my mind I am going to keep it to myself and you will have to learn through research. That is basically an asshole ish kinda thing to say right? Maybe, but that is the prevailing attitude of the leadership in DC. Corruption of Rome and insider trading/day trading. All more or less the same. DC is changing stripes because the Laissez Faire party is over but they will keep partying on your dime until they are called in it and that too is happening by other people with real money. It's a revolution but it will never really be spoken of all that much. As many are starting to realize, physical revolutions have always been funded by big investors, we're actually are more civilized than even 100 years ago. Proof is 2B 100 years ago, 7 billion now. Yeah, yeah "that was when energy was cheap now we're all gonna die!" someone come out and say it bitch, I am sick of that ignorance here. You have a computer, fucking use it. And I say that shock therapy because ai love you paranoid peeps, because you are paying attention to risks (a bit overblown and always 'crisis' exploited by government).

Nope didnt happen oil has a floor of $80 and top at $120. So you saw Pelosi and her hubby investing in NG in 2008. Oh you didnt see that? Did you see when to invest a year ago in NG? Why not? But of course we must grow, then decentralize. Wise to hedge but do keep following the money. It will always cost one time/money to find out where the direction is headed. Peace and love to all.

To the American government (allow me to influence a couple influencers): Get off your fucking ass and do your job, you were drastically overpaid and are slacking. The Internet is the mirror of mankind. You too now must watch what you say and for all of us, maybe thats a good thing and we can start to show one another a little more respect, your actually pissing us off and making us shine a 5000 mw light up your ass. But come on now, you asked for it by dancing around MSN all the time and the media pals were happy to take our tax dollars and ad moneys to help you parade around like a bunch of circus monkeys. The world follows our lead and you cant handle a tuly working 40 hours a week for real? Fucking grow up and do your job so the money revolution doesnt waste more time. Ha and you people thought putting up literal bullets and dumb thugs as cops was going to work like as if this world was still 1950. And Senators, you are NOT paid to be day traders or bankers, give the American people the game plan which is what your actually paid to do. If nothing else it will boost confidence quicker and fatten your corrupt wallets faster. But you people did something right, 1/3 of us havent gotten killed yet in the next world war. That respect issue can carry us collectively a long way at a time of tension, well-crafted words may take an extra moment or two but help.

Thu, 02/20/2014 - 10:27 | 4457067 Obese-Redneck
Obese-Redneck's picture

I wish I would have protested that War Criminal Bush, there you go charlie.

Thu, 02/20/2014 - 08:19 | 4456628 AdvancingTime
AdvancingTime's picture

I see more likely a new push for a new world currency. Whether by design or merely as a byproduct of globalization we have weaved a web of financial transactions that circle the globe. Over the last several years as money was printed by the central Banks it was not contained in the countries where in was printed. This money flowed across borders influencing and distorting markets and prices across the world.

Some people have been calling for a "world currency" for years. the saying "one should never let a good crisis go to waste" means a meltdown with high levels of fear and contagion would present a perfect opportunity to advance this agenda down the field. Remember many people with agendas have a lot to gain when a major shift in the currency markets takes place. More on this subject below,

http://brucewilds.blogspot.com/2014/02/contagion-may-lead-to-new-world-c...

Thu, 02/20/2014 - 09:27 | 4456790 Randoom Thought
Randoom Thought's picture

What really is the point of controlling the world? What does it get you that not controlling the world cannot get you? Obviously they get no joy or satisfaction out of building independent self-sufficient whole human beings, only controlling them. But what really is the point?

Thu, 02/20/2014 - 08:04 | 4456613 LongMarch
LongMarch's picture

Go Here

http://www.usfunds.com/investor-library/frank-talk/category/topics/china...

Check the money supply charts.

Then come back and explain how the fuck that becomes a reserve currency.

Thu, 02/20/2014 - 07:48 | 4456588 orangegeek
orangegeek's picture

So because the Aussies prefer the Yuan over the USD, is it the end of the USD?

 

Really?   Have a look at the USD index - the AUD is not part of it and the Aussies are not happy about it.

 

http://bullandbearmash.com/about/usd/

 

USD is the currency used in 60% of the world's transactions - the Euro makes up the next largest percentage.

Thu, 02/20/2014 - 08:39 | 4456629 Grosvenor Pkwy
Grosvenor Pkwy's picture

"So because the Aussies prefer the Yuan over the USD, is it the end of the USD?"

Good comment! And it's not even clear that the Yuan is preferred, it sounds like the Yuan has moved up to the list of acceptable trading currencies, rather than displacing any existing members of the list.

"USD is the currency used in 60% of the world's transactions - the Euro makes up the next largest percentage."

The numbers tell the story. There is no evidence in the original article to support the extreme claim of "the Death of the Dollar," nor any evidence that if the dollar declines in status, the Yuan would replace it. So what? the Yuan moved from 17th place to 9th place in the Hit Parade of Currencies, that doesn't prove the author's claims. The Yuan is moving out of the cellar, but is a long way from winning the pennant.

It would be useful to see this list for recent time periods: which currencies have moved down to allow the Yuan to move up? Search on Google for "Bank international settlements currency list"

Here is the BIS info: https://www.bis.org/publ/rpfx13fx.pdf

CNY barely squeaks into the top 10, with a share of 2.2, and outranked by the Mexican peso at 2.5, in comparison to the dollar's share of 87.0, and the dollar's share has been relatively flat since 1998. The Chinese have a long long way to go before they reach the top!

Thu, 02/20/2014 - 13:38 | 4458030 LMAOLORI
LMAOLORI's picture

 

 

I agree the death of the dollar is greatly exaggerated and China has huge debt problems of its own. A lot of that gold everyone talks about China having btw is paper gold.

 

FOREIGN HOLDINGS OF US TREASURY DEBT HIT RECORD

 

Thu, 02/20/2014 - 02:41 | 4456296 satoshi411
satoshi411's picture

YUAN .... YAWN USD

Still not there HEY guys, I'm in CHINA, and I'm still not a big Yuan/Rmb holder, JPY, AUD, ... YES Euro a little USD a little, but mostly in form of HKD.

The best paper money is NOK, SGD, and CHF they're all 'AAA' paper.

The problem with YUAN is its not liquid, you can't move a lot around you can't buy sell it in large quantity's, and you certainly can't move it in and out of china quickly, or for that matter even in HK you can't play with YUAN unless your a resident.

Which is WHY most people play with EURO, JPY, and USD, and UK.

*

The best bet if you want to track YUAN is is buy SGD, at least it tracks YUAN well, and its liquid and available from your friend Singapore bank.

USD is still king, BTC is dead, and GOLD is weak, cuz we're still in a deflationary depression.

*

My fear of YUAN/RMB is that it is a lot like BITCOIN, very hard to get real money out of should you want your money. When the time comes that the USD is dead, sure the YUAN will look good, but time is not on the HORIZON.

When in DOUBT keep your money in HKD, which is tied to USD the day the USD collapses your HKD will become CNY (YUAN), until then just enjoy the USD ride.

 

Thu, 02/20/2014 - 09:31 | 4456810 RaceToTheBottom
RaceToTheBottom's picture

"The best paper money is NOK, SGD, and CHF they're all 'AAA' paper."

CHF has been debased by pegging to the Euro.  They are not the CHF of old

Thu, 02/20/2014 - 01:59 | 4456219 walküre
walküre's picture

Yuan is Foxconn money. Backed by the full faith and credit of the PBoC and years and years of capital misallocation into ghost xyz (just about everything insert here).

China is running out of juice. Aussies have no alternative BUT to sell out their rocks for Mao paper. The sons of Mao are buying German innovation including the factories with Mao paper.

The sons of Mao are either smarter than the sons of Zion or they're even more corrupt. Don't know what is better or worse.

Gold back gold schmacked. I believe the gold stories when the Chinese show their vaults and have a team of international inspectors verify that they're holding indeed gold. Same goes for the Fed.

They're all cooking with water. Chinese are masters at deception with a 5,000 year history of FRAUD.

Thu, 02/20/2014 - 13:49 | 4458096 lasvegaspersona
lasvegaspersona's picture

No CB needs to 'show' it's gold.

All that it needs to do is to be able to defend the currency in the Forex market. At present this means having enough dollars to keep the currency from being attacked by the likes of Soros. In the future, if gold is the reserve, all a country will need to do is be able to handle it's balance of payments deficit.

If it can do that then the world will be satisfied. There will be no need to show the hoard of yellow that 'backs' the currency.

This is the beauty of what is coming and few understand it. Only the Euro is prepared with gold on it's balance sheet MARKED TO MARKET. Compare this to the Fed. It has only 'gold certificates'....whatever they are.

Prior gold standards (both classic and 'gold exchange' were flawed by incredilbe errors that worked to the benefit of one party. The world will correct these errors and a new system in which gold is held only as a reserve asset will flourish.

Thu, 02/20/2014 - 02:47 | 4456302 satoshi411
satoshi411's picture

Foxxconn is APPL and in ASIA APPLE is NSA is fucked, everybody has gone samsung.

SGD is doing much better than CNY, in fact this month the YUAN(CNY) is down, funny PIVOT is calling for YUAN takeover, but the YUAN is going south.

Thu, 02/20/2014 - 01:33 | 4456149 mess nonster
mess nonster's picture

Yeah, considering the gobbledegook of your first sentence ("...just hit you up the back..." what IS that sort of grammatical construction? Gullah? Ebonics?), I knew this was going to be nonsense.

The dollar will prove to be the last currency standing. China's bubble is about to pop, and that will take down the rest of the planet. All it is going to take will be 120/barrel oil, and China will return to 1940's style chaos overnight.

I'm not defending the dollar. The piece of paper is encrusted with 666 and other satanic markings. The system this execrable monetary unit represents is the epitome of corruption and evil. But that simply makes my point. Since every debt economy is by definition a negative entity, a veritable black hole, it exactly reflects the evil and perversity of the world babylon system. Hence, any unit that is NOT evil entirely is going to fail. The Chinese are fucking chumps. Chumps and marks are by definition good people who get greedy when convinced that they can have what is too good to be true. The Chinese have been sold a bill of goods by the international bankers and tribal members. The Chinese sold their bithright- clean air and water and arable land, for a slag heap of broken computers, cadmium laced aquifers, and suffocating smog. They are about to be sucked dry and discarded. But so are we. We will have the dominant currency. Whup-te-do. Total evil with six points will win, or so it seems...

Thu, 02/20/2014 - 11:48 | 4457419 centerline
centerline's picture

+1.  In addition, Australia is fucked.  They have a massive housing bubble and economy that is supported primarily by China.  Of course they are going to do whatever they can to keep from imploding.  Has less to do the USD than simple preservation of one's golden goose.

Reality is that when China enters freefall, Australia goes with them.

Thu, 02/20/2014 - 07:11 | 4456544 Rafferty
Rafferty's picture

To read the article you'd think the dollar's share of reserve currency usage had fallen strongly away.  But it has not.  Hasn't declined that much at all.

Thu, 02/20/2014 - 08:42 | 4456678 Skin666
Skin666's picture

Remember who has the gold to back its worthless paper tickets...

Thu, 02/20/2014 - 01:38 | 4456004 Soul Glow
Soul Glow's picture

 

How will Ol' Yellin ever finance her ponzi on a weak dollar?  Until now all currencies have been pegged to each other.  The central banks took a death pact after the crash of '08 - the dxy pegged at 80.5, the eur/usd at 1.35, the gdp to the usd at 1.66, and although highly volatile the Yen is in the middle of its long term range of 102.  Fiat has all falled together, feathers in the wind as the world watches TV instead of the inevitable.

The only people making any money off of currency are day traders and big business.  The little guy across the world is just trying to save month to month and for 5 years a steady erosion of inflation (10%) has increased necessary goods.  Because service prices have decreased - due to an increase in output thanks to an increase in technology - inflation has been kept in check by stagnant wages.

The inflation has hit the stock market, as the only fresh money has been made by the rich and they have dumped it into stocks - which was a great bet on input cost inflation.  Yet at the end of the day the increase in debt money will cause a reflex of high inflation in paper money.  This is one of many reasons gold will be the best investment of the decade - all the fiat currencies will have to be revalued, and together, to balance the unsustanable debt load that has been created at the behest of the IMF by the central banks.

Thu, 02/20/2014 - 01:44 | 4456179 mess nonster
mess nonster's picture

She can't, and that is why, despite the sclerotic and moribund health of the dollar, it will eventually come out the winner... if by winning, one means the last addict left alive after a monster binge of dirty mexican smack.

Yellen will do what she has been told to do- ensure that, although worthless, the dollar remains and becomes the world's primary negative energy unit. She will do this by pulling down, one by one, any competing monetary unit. Her evil droogies pulled the plug on the Euro by knocking out the Greece card. Child's play it is to them. China sits on a massive, tottering tower of debt. How hard will it be to knock a peg out of that janga pile?

As for gold, it has very little nutritional value, despite what the ormic white powder freaks will tell you. In the age of peakoilbitchez, what you need, not just for wealth preservation, but for wealth expansion, is cattle, and vast amounts of arid steppe upon which to let them roam. No, it's not the Chinese who will emerge from this the victors, but the MONGOLIANS.

Thu, 02/20/2014 - 02:05 | 4456208 Soul Glow
Soul Glow's picture

Jengis Khan rode and conquered thousands of miles and killed millions of people but lives in infamy as portaid by John Wayne and in other forms of history.  Great men are not good men.  The mongol leaders knew this.  They swept like fire over the Chin and then flanked and destroyed Persia.  They may have even conquered Europe too, if it weren't for the death of the Kahn.

The United States reminds me of this steppe empire; the common American, like the common mongol, acts in the moment - destroying what is around him for a greater slice of the pie.  This while the leaders only care for world domination.  The mongol empire, like all dynasties, grew to large to govern and its leadership was too fractioned.  America is overstreched now.

Hitler lost WWII when Exxon was charged in the Trading with the Enemies Act.  Hitler then began to run his tanks off of coal made into oil - very similar to how tar sands are made into oil.  This is a highly expensive process, turning other things into oil, and the bottom line hurts at the margin of output.

Peak oil has hit.  The world is producing the same amount of oil that was being produced in 2005.  No substancial increase has been seen.  This just like global growth.  That is because growth equals energy, and now that oil ain't as cheap as it used to be the dollar has lost its stranglehold on prices; prices of oil, and prices of gold.

No matter what the Fed and economics will have you believe, gold is money, and the rest of the common world views it that way.  Men in Ivory Towers may write their treaties, but that does not make the theories truth.  Truth lives in the real, and the real is gold - a tangible, finite, maluable resource.  And that is why the hoardes will continue raiding - for the value of gold.

Thu, 02/20/2014 - 02:35 | 4456280 satoshi411
satoshi411's picture

Me old man used to tell story's about WWII, but he landed in Normandy, and there they made it to an EXXON refinery, and there he stayed,

He used to say that WWII, was all about protecting Oil company property.

 

Thu, 02/20/2014 - 02:10 | 4456239 chumbawamba
chumbawamba's picture

Wow, you channeled the ghost of Trav9999 there for a moment.  But other than that faggotous allusion, you blew my mind, brother.  It was like getting a brainjob--a blowjob of the brain.

Thanks, I owe you a reach-around.

-Chumblez.

Thu, 02/20/2014 - 00:29 | 4455965 semperfi
semperfi's picture

and when China gold-backs it - game set match - here's your lovely parting gifts - good bye

Thu, 02/20/2014 - 08:08 | 4456617 LongMarch
LongMarch's picture

Really? They're going to set money supply and credit growth to low single digits? Care to explain how they're going to do that?

Thu, 02/20/2014 - 09:46 | 4456869 Clint Liquor
Clint Liquor's picture

set money supply and credit growth to low single digits

It sounds horrible! Welcome to the future. Maybe even a sustainable future. The transition will be painful, but it is inevitable.

Thu, 02/20/2014 - 00:18 | 4455935 Boris Alatovkrap
Boris Alatovkrap's picture

Yuan sum ting flum china, yu pei in china mo ni.

Thu, 02/20/2014 - 01:15 | 4456100 willwork4food
willwork4food's picture

Hee hee. Took me a while, but +10

Thu, 02/20/2014 - 05:02 | 4456459 Boris Alatovkrap
Boris Alatovkrap's picture

Don wa li, tuk mi sum taim tu!

Thu, 02/20/2014 - 11:53 | 4457438 rubiconsolutions
rubiconsolutions's picture

I nominate Boris for a Nobel prize in literature. Bravo!

Thu, 02/20/2014 - 12:15 | 4457545 falak pema
falak pema's picture

No bell will toll for Boar is put in pen priz-on

Thu, 02/20/2014 - 13:34 | 4458003 lasvegaspersona
lasvegaspersona's picture

potato for Boris gud riting

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