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Thanks, World Reserve Currency, But No Thanks: Australia And China To Enable Direct Currency Convertibility

Tyler Durden's picture


A month ago we pointed out that as a result of Australia's unprecedented reliance on China as a target export market, accounting for nearly 30% of all Australian exports (with the flipside being just as true, as Australia now is the fifth-biggest source of Chinese imports), the two countries may as well be joined at the hip.

Over the weekend, Australia appears to have come to the same conclusion, with the Australian reporting that the land down under is set to say goodbye to the world's "reserve currency" in its trade dealings with the world's biggest marginal economic power, China, and will enable the direct convertibility of the Australian dollar into Chinese yuan, without US Dollar intermediation, in the process "slashing costs for thousands of business" and also confirming speculation that China is fully intent on, little by little, chipping away at the dollar's reserve currency status until one day it no longer is.

That said, this latest development in global currency relations should come as no surprise to those who have followed our series on China's slow but certain  internationalization of its currency over the past two years. To wit: "World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says", "India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees", and "The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap."

And while previously the focus was on Chinese currency swap arrangements, the uniqueness of this weekend's news is that it promotes outright convertibility of the Yuan: something China has long said would happen but many were skeptical it ever would. That is no longer the case, and with Australia setting the precedent, expect many more Asian countries (at first) to follow in Australia's footsteps, because while the developed world is far more engaged in diluting its currency as a means to spur "growth", Asian and developing world nations are still engage in real, actual trade, where China is rapidly and aggressively becoming the world's hub. 

More from The Australian:

Former ambassador to China Geoff Raby, now a Beijing-based business figure, told The Weekend Australian: "The value of such a deal would be substantial for exporters to China, especially those that import a lot from China like mining companies, as it would remove business constraints including exchange-rate risks and transaction costs."


Businesses, like individuals when travelling, have to pay extra to convert currency since there are different rates for buying and selling.


So removing one step also cuts out the cost of paying for such a "spread".


Australia has undertaken significant lobbying for the deal and the direct conversion of the yuan, also referred to as the renminbi (RMB), is identified as a priority in the government's Asian century white paper.


"We have held preliminary discussions with the Chinese government to explore how soon direct convertibility can be practicably achieved," the white paper says.


"We are continuing these discussions, and also exploring other opportunities to work with China to support the internationalisation of the RMB."

Australia's banks increasingly arrange trade finance through Hong Kong, which has developed a special role as China's chief international finance centre.

Needless to say, China is eagerly looking forward to taking yet another bite out of the USD's reserve status.

New President Xi Jinping, a former Communist Party secretary of Shanghai, is a champion of that city's development as China's finance hub, and it is believed that the Prime Minister may fly there to sign the currency conversion deal.


Ms Gillard is expected to go on from Shanghai to Beijing, where she will open the third Australia China Economic and Trade Forum organised primarily by the Australia China Business Council, which will be bringing about 100 people from Australia for the event. Participants are likely to include Andrew Harding, Rio Tinto's new chief executive for iron ore; Warwick Smith, ANZ Bank's chairman for NSW and the ACT; Australian Trade Minister Craig Emerson and Financial Services Minister Bill Shorten; Gao Hucheng, China's Commerce Minister; and Gao Xiqing, the acting head of China Investment Corporation, the country's vast sovereign wealth fund.


The ANZ Bank has been a strong advocate of direct convertibility between the dollar and the yuan. Gilles Plante, the bank's chief executive in Asia, said in a recent report that in the last financial year, China accounted for 29 per cent of all exports and 18 per cent of imports, but the value of that trade denominated in yuan was less than 0.3 per cent.


He forecast that cross-border flows of funds would be liberalised "to support Shanghai's plan to build itself as a global financial centre. At the time the whole world is digging out opportunities from the rise of the yuan, Australia should not lag behind."


It was significant the liberalising governor of the People's Bank, Zhou Xiaochuan, kept his job during the reshuffle of China's leadership. He said last year at a conference: "The next movement related to the yuan is going to be reform of convertibility. We are moving in this direction; we need to go further, we will have some deregulation."

Most importantly, to China, Australia will serve as the Guniea Pig - should this experiment in FX liberalization work out to China's satisfaction, expect Beijing to engage many more trade partners in direct currency conversion.

Beijing appears to have chosen Canberra as its partner in this next movement for straightforward economic reasons, as Australia has become China's fifth-biggest source of imports and thus, the appropriate partner for the march of its currency.


Ms Gillard and President Xi Jinping may also during the visit establish a "strategic partnership" between the countries. This will enable Australia to catch up in status with a large range of nations.

Why is this so very critical? For the simple reason that the free lunch the US has enjoyed ever since the advent of the US dollar as world reserve currency, may be coming to an end as other, more aggressive alternatives - both fiat, and hard-asset based - to the USD appear. And since there is no such thing as a free lunch, all the deferred pain the US Treasury Department has been able to offset thanks to its global currency monopoly status will come crashing down the second the world starts getting doubts about the true nature of just who the real reserve currency will be in the future. 


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Sun, 03/31/2013 - 12:50 | 3393462 Passage
Passage's picture

Because these are big economies

A year ago, I was convinced that it was about Northern Europe vs Southern Europe. I am so wrong. It is Big vs Small. Look at the differences in ECB and IMF approach when it comes to bailing out various troubled member states of Eurozone. 

Good luck to those Euro states with economic size smaller the Greeks; Luxembourg, Slovenia, Malta, Cyprus, Estonia. Good luck to all the small countries in the world.

Good luck to their depositors. It is still about TOO BIG TO FAIL.

Sun, 03/31/2013 - 12:56 | 3393476 Passage
Passage's picture

Australia is welcoming and making it easier for the Chinese to swallow their mines.
1-2a week ago, China's Central Bank Chief Zhou Xiaochuan and his deputy mentioned that China imported about 400-500tonnes of gold annually and claimed that buying more will propel gold into higher territoriries.

So the Chinese will buy mines instead.

Sun, 03/31/2013 - 13:05 | 3393494 earleflorida
earleflorida's picture

lest you forget india's geography...

Sun, 03/31/2013 - 13:19 | 3393522 knukles
knukles's picture

Now, simple logic would dictate this being great for PMs and hard assets...for gold etc have been under pressure with the strong dollar recently. To wit, golds close to an all time high in Jap Yen
So, whatever
And don't forget to feed the fish

Sun, 03/31/2013 - 16:30 | 3394060 macholatte
macholatte's picture

Was it Obama or Lenin who said thiese things:


The Capitalists will sell us the rope with which we will hang them.

The surest way to destroy a nation is to debauch its currency.

Destroy the family, you destroy the country.

A system of licensing and registration is the perfect device to deny gun ownership to the bourgeoisie.

Socialized medicine is the keystone to the arch of the socialist state.

We can and must write in a language which sows among the masses hate, revulsion, and scorn toward those who disagree with us.


--- Vladimir Ilyich Lenin


Sun, 03/31/2013 - 20:46 | 3394594 Shocker
Shocker's picture

This is just another hit to the US dollar / US Economy.

Its only here and there, with replacing or no longer using the dollars but it adds up.

Interesting times we are in.


Sun, 03/31/2013 - 21:40 | 3394728 The Big Ching-aso
The Big Ching-aso's picture

Oh shitsky. The koi is about to hit the fan tan.

Mon, 04/01/2013 - 04:08 | 3395251 TwoShortPlanks
TwoShortPlanks's picture

For some time now on ZH I've been saying that Australia has more in common with China than America.

Walk down any street in any Aust city and you'll see/hear few Yanks, but tons of Chingaz.

No surprises here!

Sun, 03/31/2013 - 16:35 | 3394064 SafelyGraze
SafelyGraze's picture

this is all very good news

these dollars are coming online exactly at the right time to buy treasurys, thus assuring the continued bull market for us debt

Sun, 03/31/2013 - 20:26 | 3394539 CrazyCooter
CrazyCooter's picture

I know a certain little boy whose name rhymes with "en ernanke" who will be working really hard to clean his plate each night once all these dollar reserves start coming home.

Have to keep interest rates low, you know, to keep the little guy employed!



Sun, 03/31/2013 - 13:15 | 3393505 JustObserving
JustObserving's picture

Gold miners are selling at record lows with proven gold deposits selling at 13% of current gold price.  When gold miners are expensive, the gold reserves sell for 38% of gold price.

Gold miners are a big bargain now and so are silver miners.  It would be stupid of China not to buy them with their $3.549 trillion of reserves (Dec 2012).  They officially have only about 1000 tons of gold worth about $50 billion now. But they announce their reserves only once every 5 years.  So their official number is dated.  They may announce updated gold reserves in 2014.

Sun, 03/31/2013 - 13:18 | 3393514 Passage
Passage's picture

I suppose this is a very positive for the Austrialian miners, BHP, Rio Tinto, Newcrest, Fortescue etc

They have been dropping while Dow and S&P surged to greater heights this year.

Sun, 03/31/2013 - 20:30 | 3394546 CrazyCooter
CrazyCooter's picture

Short with the pension funds, buy with the prop desk.

Roger Roger. What's our vector Victor?



Sun, 03/31/2013 - 16:36 | 3394067 DosZap
DosZap's picture

They officially have only about 1000 tons of gold worth about $50 billion now. But they announce their reserves only once every 5 years.  So their official number is dated.  They may announce updated gold reserves in 2014.


Multiply that by at least a factor of 10-15.

Sun, 03/31/2013 - 18:01 | 3394204 smlbizman
smlbizman's picture

j. o.....i find your commet quite are making comments that would apply, if we had a sorta honest market.   if you have not watched the recent video posted here earlier by grant williams, take the time and do would see were im coming from.....fundamentals are for dead and will not matter again until the end, and im not talking paper fundamentals of mining stocks......cypris is a preview that really shows how it will get for the peons everywhere eventually.......we are all  cypriots now....

Mon, 04/01/2013 - 08:57 | 3395478 tango
tango's picture

Your are right...and wrong.   Yes, securities are being driven by endless flows of debt dollars but the winners are still those that make money and are well-managed - Google, Samsung, IBM, Blackrock, food, energy.   Even the least plausible sector - retail - is still doing well because we have reverted to debt world.  Plus, companies that do not meet expectations fall.  One formula for success is simply buying the energy and food sectos spiders with PMs for a hedge.    

Stocks are trading "normal" (if profits are the prime mover) except with a steroid booster and this skews everything.  What is really whacked is the bond market.  It is on the tip of the tip of an enormous bond bubble that will someday burst with catastrophic consequences.  But then, so will the retail sector, the pension plans and social seurity.     

Sun, 03/31/2013 - 13:25 | 3393541 rogeliokh
rogeliokh's picture

"It is still about TOO BIG TO FAIL."

Yeap, Too BIG to Jail.

Sun, 03/31/2013 - 16:55 | 3394103 TraderTimm
TraderTimm's picture

Fixed that reserve currency chart for you:


It is going to be fun watching the central banks run around like chickens with their heads cut off.

Sun, 03/31/2013 - 12:51 | 3393467 bank guy in Brussels
bank guy in Brussels's picture

Alt currency dept. -

Karl Denninger - computer geek as well as ZH-copying financial pundit - just wrote a long and persuasive piece, absolutely rubbishing bitcoin, including legal risks particularly in the fascist USA, noting how it has aspects of a pyramid-like scheme to benefit its founders and early adopters:

'BitCon: Don't'

Sun, 03/31/2013 - 13:00 | 3393485 orez65
orez65's picture

Bitcoin is no different than the Federal Reserve, they are both fiat money scams.

Don't people learn????

Sun, 03/31/2013 - 14:01 | 3393631 DYS
DYS's picture

Not true. Bitcoins must be mined by algorithmic computation. Federal reserve notes can be created with a few keystrokes. Also, the market for bitcoins is truely a free market for a finite commodity. In a way, bitcoins are a perfect replacement for gold, because they have no other use except as an exchange for fiat curency. Therefore, they are not influenced by industrial demands. The combination of finite resource combined with open market makes bitcoin a viable long term global currency solution.

Learn more about it, before spreading popular rumors.

Sun, 03/31/2013 - 14:20 | 3393729 CH1
CH1's picture

There is a massive info war against Bitcoin. Amazing to hear people calling it a Ponzi - they have no idea how utterly ignorant that statement is.

Anyway, maybe it gives me time to accumulate some of them. If they demand to be suckers, I'll take the other side of the bet.

Sun, 03/31/2013 - 14:48 | 3393797 gold-is-not-dead
gold-is-not-dead's picture

True, everybody's calling it ponzi, yet somehow all those fear mongers forget to mention that every other asset is hyperinflating in comaprision to btc, and will continue to do so untill all the accounting has been done.

Sun, 03/31/2013 - 15:35 | 3393916 JLee2027
JLee2027's picture

Turn the computer off and "bitcoin" is gone forever. It's not safe, and in fact is rather foolish. Silver and Gold, in the pocket or under the matress, that's all you can count on.

Sun, 03/31/2013 - 16:19 | 3394033 gold-is-not-dead
gold-is-not-dead's picture

yup, one should always have a piece of phyz, no question there... but how do you mean turn of the computers, you mean like kill the telco industry? perhaps burn all the books as well? And people with glasses should be expelled from society and if you own a bicycle you should give your umbrella back to others?

Sun, 03/31/2013 - 20:36 | 3394564 CrazyCooter
CrazyCooter's picture

If it works for you, great. You will be happy because it provides value to you. Personally, I would never accept it and would only accept it for wages in very desparate times. To each his own.




Sun, 03/31/2013 - 20:47 | 3394593 BooMushroom
BooMushroom's picture


Mon, 04/01/2013 - 03:32 | 3395239 gold-is-not-dead
gold-is-not-dead's picture

EMP is useless for optical storage, only magnetic ones which are turned on would be in danger...

Mon, 04/01/2013 - 17:24 | 3397353 Mesquite
Mesquite's picture

re:EMP..(Solar or man-made..)

Ya..And all those low voltage, small gap electronics...

Like in all those PLCs that control the electric grid..

Then, when standby generators run out of fuel, there go the cooling pumps..

Then, there goes the nuclear fuel stability...

Then, oops, about what, 134 or so Fukushima type events...


Wonder how long the batteries last in all those various computers/server farms/data centers..

BitCoin..Oh yeah..

Wed, 04/03/2013 - 20:58 | 3406346 BooMushroom
BooMushroom's picture

Good luck reading your optical storage without a power grid or a functioning computer.

Mon, 04/01/2013 - 11:54 | 3396075 DYS
DYS's picture

You can print out your bitcoins and keep a physical log of them.

Mon, 04/01/2013 - 12:26 | 3396185 JLee2027
JLee2027's picture

So bitcoin is a piece of paper with a claim.

Hmmm. Where have I heard that before?

Sun, 03/31/2013 - 22:55 | 3394917 Kirk2NCC1701
Kirk2NCC1701's picture

The beautiful, hot, friendly ladies in south amer. are totally open to your bitcoins.  No FRN's (Fornicated Regulated Notes) needed.  Direct, peer-to-peer agreement.  How libertarian is that?  One to beam up!  ;-)

Sun, 03/31/2013 - 15:09 | 3393842 Smuckers
Smuckers's picture

Bitcoin is just a flavor of the month. 
Nothing to stop other cryptocurrencies (Litecoin, etc) from entering the currency market.

A currency backed by precious metals, requiring honest work to produce more of it - is what this ape-covered ball of dirt needs.


Sun, 03/31/2013 - 16:33 | 3394052 gold-is-not-dead
gold-is-not-dead's picture

bitcoin is protocol, all the subcoins are part of that bitcoin network... all the subcoins inital value derive from instruments of major bitcoin instance and where it was in that period of time when they were created, namecoin 1/50th part of a btc, litcoin 200th part etc...

Thinking of alternatives and how are they valued proactively is nothing but speculation since it is known how much of a fair value each inherit...

You can't just inflate in substance the protocol, because inital value comes from tech, time, and energy invested in each of the subcoins... just like silver or platinum didn't inflated gold, for each a labor input is required...

Sun, 03/31/2013 - 19:34 | 3394439 CH1
CH1's picture

A currency backed by precious metals, requiring honest work to produce more of it - is what this ape-covered ball of dirt needs.

They've been around since 1998, and you've evidently never touched them.

Sun, 03/31/2013 - 23:20 | 3394983 LongBallsShortBrains
LongBallsShortBrains's picture

Tit coin?

Zit coin?

Pit coin?

Clit coin?

Sun, 03/31/2013 - 14:22 | 3393738 CH1
CH1's picture

Bitcoin is no different than the Federal Reserve

I nominate this for the most ignorant post of the day.

Why are you posting when you have no clue?

Sun, 03/31/2013 - 22:58 | 3394922 Kirk2NCC1701
Kirk2NCC1701's picture

If the Gov Trolls are gonna trawl & spew here, they could at least use their stage name, like Baghdad Bob.

Mon, 04/01/2013 - 01:24 | 3395171 Curiously_Crazy
Curiously_Crazy's picture

Don't worry. If I had a dollar (or btc) for every post I've read on precious metals boards with someone stating the evils of bitcoin as rabidly as a religious nutter, only admit they had no idea of how it operates some 50 posts down the line and that it's not such a bad idea I'd be a rich man.

Ironically these same people then often end up not only buying btc but also buying bloody mining rigs too.

Bought my first ones under a cent each and have spent and rebought many a time since then. So no I'm definitely not in it for the 'fad factor' and nor am I in them to make money.


Sun, 03/31/2013 - 13:07 | 3393497 slightlyskeptical
slightlyskeptical's picture

Bitcoins need to monetized if you have them.

Sun, 03/31/2013 - 13:06 | 3393499 Quinvarius
Quinvarius's picture

I don't know who I want to shit on more, Denninger or Bitcoin.  At lest Bitcoin has good intentions.  Therefore, Denninger should be forced to eat my shit today.

Sun, 03/31/2013 - 15:23 | 3393879 Mr. Magoo
Mr. Magoo's picture

"FUCK BITCOIN" I will keep my gold, silver and storeable food and my many talents to barter with, when an EMP attack comes your precious bitcoin will be worthless but I will still have all my physical assets unless of course I am dead then it wont matter anymore and I will be a true zero-hedger which says "On a long enough timeline the survival rate for EVERYONE drops to 0"

Sun, 03/31/2013 - 23:06 | 3394942 Kirk2NCC1701
Kirk2NCC1701's picture

Q:  You can sell your AU for bitcoin in place A, and buy it with bitcoin in place B.  Where A and B can be anywhere on the planet.  For ANY amount that you decide or can afford.  How good and secure are you at doing the same with your bullion transport? No, didn't think so, Einstein.

Facts and Cognitive Dissonance is a real bitch, isn't it?  People are such fucking liars when they claim to "want the truth".  Bullshit!!!  What they really want is "the truth that is consistent with their world view".  God help the SOB who challenges their world-view.  That's like challenging their religion.  They will respond emotionally (regression, aggression).  Classic psychology 101 in action.

Gotta love the Psy Ops peons in action.

Mon, 04/01/2013 - 00:43 | 3395121 daveO
daveO's picture

Name calling always shows your ignorance. Silver and gold are tradeable in the 'real' world. Even if metals and bitcoins are outlawed by the gov., I can still barter w/ metal locally out of view of the Feds. There is an astronomical amount of illegal drugs being traded locally, but very few being traded online, for obvious reasons.  

Proud Peon.

Sun, 03/31/2013 - 17:20 | 3394145 TraderTimm
TraderTimm's picture

Karl also took a steamy dump on owning Gold. And this was before the prices exploded. Not much of a 'oracle', is he?

Sun, 03/31/2013 - 17:47 | 3394189 mt paul
mt paul's picture

denninger is  a sheep


he still believes 911

was building collaspe, due to fire...

Sun, 03/31/2013 - 20:28 | 3394541 FreeNewEnergy
FreeNewEnergy's picture

I'm not sure about Bitcoin, as I find it difficult to understand, and anything I don't understand I usually won't deal in. Gold is good, but difficult to use as a currency; silver is better, but still not widely used, though the PMs are a great store of value.

For purposes of what some may call arbitrage, I have been paying cash for soft porn magazines and videos and turning them over on ebay and elsewhere.

If it's not a currency, it's close. Has some store of value and a generally accepted exchange rate, i.e. A June 1998 Playboy magazine can generally be bought in bulk for under 50 cents and sold for $3 or more (even better outside the US). Other magazine in the same genre exhibit similar patterns.

It's not perfect, but, in addition to the obvious excellent mark-ups, there are great articles and excellent photography which people will pay for with good money.

My point - whatever it is I'm trying to get at - is that there are a lot of "currencies" around in which a savvy entrepreneur can make markets. Choose wisely, find a somewhat commoditized market with availability on one end and resale value on the other and the world's your oyster, no matter which currency one uses.

Good luck. We'll all need it.

Mon, 04/01/2013 - 00:44 | 3395127 daveO
daveO's picture

Barter, the original trade.

Mon, 04/01/2013 - 07:40 | 3395379 ManOfBliss
ManOfBliss's picture

Bitcoin is very easy to understand. There are just very few good tutorials on how it works.

Sun, 03/31/2013 - 21:32 | 3394683 Mike in GA
Mike in GA's picture

Count me as a sheep then, I watched it burn.  What did I miss?

Okay, that was rhetorical.  I really don't want to hear the wacko theory again that Bush and Cheney and their evil henchmen plotted to BLOW UP THE TWO BIGGEST SKYSCRAPERS IN NYC UNDER COVER OF A CONVENIENT 4 HIJACKED AIRLINER ATTACK.


Okay, I'm all better now.

Mon, 04/01/2013 - 08:04 | 3395408 PrintemDano
PrintemDano's picture

I'm with youMike in GA.  9/11 conspiracy nuts are illogical and irrational.  There are enough horrible things on this planet without making shit up. 

Sun, 03/31/2013 - 18:48 | 3394326 thisandthat
thisandthat's picture

You just can't deny those last 2 statements, and they show it's all but a democratic currency.

Besides, all I hear from its supporters it's not about its trading qualities, but the (fantastic) gains expected from hoarding it.

And it's lack of granularity/volume/value means it can't be even used as a currency replacement, let alone wealth preservation (unlike gold, etc.) - just try converting your bank account into it; heck, try with an entire nation's deposits (Cyprus, anyone?)...


Sun, 03/31/2013 - 12:57 | 3393471 Passage
Passage's picture

With the potential of more BAIL-INs bank levy in Europe, the World's de facto reserve currency and gold will both appreciate against the rest of the world.

Sun, 03/31/2013 - 12:56 | 3393477 bank guy in Brussels
bank guy in Brussels's picture

Following the same line as Tyler's article above, but out to the max

The latest fire and brimstone from the terrific Jim Willie ... the US economic and 'reserve currency' hegemony about to collapse, and even their traditional UK poodle about to dump them

How the BRICS and the whole rest of the world will be 'financing' infrastructure and investments via dumping their US Treasury bonds back via London to the US ... where the UST bonds will g home to 'die'

How the Saudis are about to dump the Petro-Dollar in favour of joining with Russia-China

How Germany is in a tug-of-war between two factions, pro-US (Merkel etc.) and pro-Eastern ... and the latter faction will win, splitting Germany away from the US and join China-Russia, maybe right about when the euro-zone breaks up

How even the UK has already begun the switch away from the USA, to try and be a finance centre for EurAsia

Always great reading with his unique vision of dollar-apocalypse

Jim Willie, 'US Dollar: Ring-Fenced and Chekmate'

Sun, 03/31/2013 - 13:23 | 3393532 knukles
knukles's picture

Ring Fence
Another sophist imaginary condition given a technocrats word to assure the plebs al be well
Like talking about smelly Camembert as if it would have some dramatic effect on the world

Sun, 03/31/2013 - 13:41 | 3393600 disabledvet
disabledvet's picture

Yeah no shit. And "is it the yuan or the renminbi anyways"? I laugh at the idea that convertibility even exists. I think the correct headline is "Australia kow-tows to that other worthless piece of paper." I laugh at people thinking I'm a big fan of the bucky. The whole thing is crap if it ain't backed by gold. "project throw them all under the bus" proceeds apace.

Sun, 03/31/2013 - 14:41 | 3393783 WmMcK
WmMcK's picture

Long (Fuller) Bucky Balls.

Sun, 03/31/2013 - 13:51 | 3393627 JOYFUL
JOYFUL's picture

Jim's got everything pretty much down right...

except for the Saudi thing. If you pay attention, you notice that he never mentions Israel by name, and stays right away from the whole sionist angle(except for the odd elliptical clue!)'s clear that he, like ZH, and most probably everbody else who comes too close to calling a spade a 'spade' gets a message to tone it down...

if this were not true, he would have done his usual good homework, and know that the Saudis are in with the sionists to the bitter end...or regime change.

And since SAUDI REGIME CHANGE will spell the end of sionist hegemony, you can bet they will give all their attention to preventing that from happening...any time soon.

Sun, 03/31/2013 - 14:00 | 3393662 francis_sawyer
francis_sawyer's picture

I like people who think clearly...

Sun, 03/31/2013 - 17:15 | 3394131 TwoHoot
TwoHoot's picture

"Jim's got everything pretty much down right ..."


he forgot to mention that the Chinese yaun is tied to the US$.

Until the Chinese currency is allowed to float freely against the US$, all BRIC reserve schemes simply prepetuate the status quo.

Sun, 03/31/2013 - 20:34 | 3394554 noless
noless's picture

The article you are commenting on is detailing the end of that peg.

The free float (all that usd coming home) would expose whose economy is truly "expanding".

Sun, 03/31/2013 - 14:13 | 3393710 reload
reload's picture

Well - It was interesting that last year, very suddenly, after the City of London announced an agreement with Bejing to start trading and settlement in Yuan the Federal authorities and SEC got heavy handed with the British banks - Standard and HSBC, the British banks that have the closest ties to Asia and China.

Sun, 03/31/2013 - 14:58 | 3393819 NaiLib
NaiLib's picture

"bank guy " ... this simple quote from you tell us that you apparently know very little about much, " pro-US (Merkel etc.)" . You have to study history before writing such utter nonsense.

Sun, 03/31/2013 - 15:16 | 3393862 css1971
css1971's picture

How the Saudis are about to dump the Petro-Dollar in favour of joining with Russia-China

This is the lynchpin. While the world still has to buy oil in dollars the dollar will be widely accepted.

Sun, 03/31/2013 - 18:03 | 3394207 Urban Redneck
Urban Redneck's picture

Compare the volume of paper gold traded to physical gold traded...

Compare the volume of paper oil traded to physical oil traded...

While the producers can demand a different settlement currency, TPTB (bankers) can effect the same change and to greater degree themselves.

Sun, 03/31/2013 - 12:58 | 3393479 short screwed
short screwed's picture

At least we lasted longer than the Dutch.

Sun, 03/31/2013 - 13:28 | 3393547 ParkAveFlasher
ParkAveFlasher's picture

Fuck Yeah!

Sun, 03/31/2013 - 13:59 | 3393656 DutchR
DutchR's picture

Have fun, i'm sure we did ;)

Sun, 03/31/2013 - 12:58 | 3393480 Athenian
Athenian's picture

What I'd like to know is whether and if so, how, decisions like this between Australia and China affects the Hong Kong dollar peg to the USD.  Is the peg more likely to hold for a longer period or is the demise of the peg imminent?


Sun, 03/31/2013 - 12:58 | 3393481 orez65
orez65's picture

The "reserve currency" is supposed to be backed by gold.

When the Chinese back the Yuan with gold expect hyperinflation in the US.

Sun, 03/31/2013 - 13:03 | 3393491 Passage
Passage's picture

The locals don't trust yuan and would rather hide them in offshore currencies or properties because the Chinese printed much more than US, relative to economic size in the past five years. Just look at the amount of money they pumped into the rails and banks to finance municipal bonds and state-owned enterprises debts.

Sun, 03/31/2013 - 14:00 | 3393657 dognamedabu
dognamedabu's picture

A major factor was the import of FRNs. IE Apple sends Foxconn USD and then Foxconn goes to bank in China to convert into Yuan to pay suppliers, wages ect. The more USD printed the more inflation in the exporting nations. Hence a good reason for China to deal in other currencies which are not as diluted. 

Sun, 03/31/2013 - 15:47 | 3393952 thefedisscam
thefedisscam's picture

Chinese do not trust Yuan? What are you smoking? ALL smart Chinese have DUMPED their US$ and converted to Yuan years ago! And a lot of them buying up condos, and making Millions.


Sun, 03/31/2013 - 13:11 | 3393507 Passage
Passage's picture

Buying gold is to keep yuan weakened. They are importing gold through their proxies in HK to reduce trade surpluses to limit yuan upside pressure.

Sun, 03/31/2013 - 13:32 | 3393571 Solarman
Solarman's picture

Try getting their gold by selling them back their Yuans.  Also, is China ready to become the worlds largest importer?  

Sun, 03/31/2013 - 15:43 | 3393933 thefedisscam
thefedisscam's picture

NO.  China DO NOT allow exporting of their gold. Plus, China is #1 Gold producer now, if I remember correctly. 600+ tons annually. If they really desperate about gold, they can force most of manufacturers and jewelry producers go to the international market for their needs, and buy ALL the gold produced domestically. that alone will be 6000+ tons in 10 years.

In Chinese calendar, 10 years is NOT a long time.

Sun, 03/31/2013 - 15:05 | 3393840 e-recep
e-recep's picture

the reserve currency has to be backed by a mighty army, as well.

Sun, 03/31/2013 - 16:51 | 3394091 DosZap
DosZap's picture

the reserve currency has to be backed by a mighty army, as well.



In 1960, China could field an army of 250 million troops........wonder how many now.

Plus our traitorus POTUS's have given them the keys to the kingdom.

No later than the mid 90's, they did not have the capability of using nukes against anything but the West coast, and likely not able to target squat with any degree of accuracy with their ICBM's.

So what do we do?.

The Chief Whore in Chief GAVE them access to our CRAY SUPERCOMPUTERS.(you know the cigar dude).

They quickly gained access to accuray to hit ANY US city at will.

Sun, 03/31/2013 - 13:02 | 3393490 Frastric
Frastric's picture

All hail our Chinese overlords!

It also explains why they're buying up so much gold; gold-backed Yuan?

Sun, 03/31/2013 - 13:04 | 3393493 midtowng
midtowng's picture

China still has to dump the dollar peg before it ever hopes to become a reserve currency

Sun, 03/31/2013 - 14:42 | 3393786 GMadScientist
GMadScientist's picture

They don't want to be reserve currency...they want SDRs with them as a basket component (they've published as much before).


Sun, 03/31/2013 - 13:06 | 3393500 Kaiser Sousa
Kaiser Sousa's picture

and 99.9% of the US sheeplery have no clue what is happening right before their "honey boo boo" fixated eyes.....

oh well, a deserving end to a nation of willing debt coupon dollar slaves....



Sun, 03/31/2013 - 14:09 | 3393701 TheProphet
TheProphet's picture

Exactly. Do you think it was an accident it was announced on Easter weekend?

Sun, 03/31/2013 - 14:32 | 3393754 Debeachesand Je...
Debeachesand Jerseyshores's picture

Good observation.

Sun, 03/31/2013 - 20:56 | 3394622 YuShun
YuShun's picture

during the Elite Eight games

Sun, 03/31/2013 - 15:41 | 3393930 DutchR
DutchR's picture


Tools , right?

Sun, 03/31/2013 - 16:54 | 3394102 Go Tribe
Go Tribe's picture

Leave Honey Boo Boo out of this! She's done more for America than Bernanke.

Sun, 03/31/2013 - 13:07 | 3393501 DavidC
DavidC's picture

Does anyone know if those previous reserve currencies were all backed by Gold?


Sun, 03/31/2013 - 13:18 | 3393519 orez65
orez65's picture

Spain's was gold and silver.

Silver "Pieces of Eight" were widely used in the US after the revolutionary war.

Sun, 03/31/2013 - 13:28 | 3393545 Passage
Passage's picture

Yeah and everyone started to speak Spanish, the most widely spoken language back then.

Ok, the Aussies can start to learn Chinese.

Oppsssss, i forgot the former Prime Minister was already able to.

Sun, 03/31/2013 - 14:06 | 3393688 Stuntgirl
Stuntgirl's picture

They weren't backed by gold. They wereall made of gold or silver.

When you buy gold coins in Europe, mostly it is those coins you are buying, up to Duch guilders and English sovereigns, apart from the newly-minted ounce-referenced euro coins.

My grandma dealt in silver spanish "duros" until the civil war.

Sun, 03/31/2013 - 15:49 | 3393955 Winston Churchill
Winston Churchill's picture

All of them until the temptation of either adulteration or paper

manipulation were succumbed to.

The story is the same thru' history, once the gold standard is tampered with,

the end is is nigh(in historical terms).The dollar has been on borrowed time since

the Nixon shock.If you had not noticed its the whole world ganging up against the

dollar now.Even the BoE has a yuan swap line.

Tick tock.

Mon, 04/01/2013 - 10:12 | 3395673 RaceToTheBottom
RaceToTheBottom's picture

The tricky Dick will be remembered for his Dick trick with gold

Sun, 03/31/2013 - 13:13 | 3393510 Paracelsus
Paracelsus's picture

Years ago ('98?) the RBA,Central bank for Australia,sold off a third of its gold supply to help out the Yanks.They said at the time it was for reduction of storage costs (etc.).Nobody believed them but most Aussies care more about the cricket scores than what some public service plonker is up to.This sale was when gold was about $350 an ounce. This was all about manipulation of the PM's price on a global level and the Aussies were only doing what they were told (or else). The Aussies helped out in Vietnam,Malaya (the Brits),the Gulf 1&2,Afghanistan,etc. but are now getting restless with the timeline of the USA wars for democracy. (Australia has a lot of muslims who are hard workers,but get excitable when they see muslim countries getting bombed flat).

This convertability issue is not unexpected,but I think things are moving so fast now that the spin-doctors must be having a rough time of it.  Thanks Yanks,don't let the door hit ya....

If anyone thinks Australia is still a sovereign country,try going hiking around the Alice Springs "Pine Gap" facility and see what happens next.... BooHooo.... 


Sun, 03/31/2013 - 16:40 | 3394073 DosZap
DosZap's picture

(Australia has a lot of muslims who are hard workers,but get excitable when they see muslim countries getting bombed flat).

Austrailia is the ONLY country with a nutsack when it comes to cowtowing to ANY Muslim BS.

They were told explicitly by the head knocker, either abide by OUR laws,or we will deport ALL of you.

Sun, 03/31/2013 - 13:13 | 3393511 Rossalgondamer
Rossalgondamer's picture

then New Zealand should make ready for Shock-N-Awe.


Sun, 03/31/2013 - 13:17 | 3393518 Passage
Passage's picture

The Chinese loves NZ's milk powder.

Sun, 03/31/2013 - 13:24 | 3393539 knukles
knukles's picture

To which thy add poisonous shit (melamine) for reexport.
Like cutting the smack with Draino

Sun, 03/31/2013 - 14:00 | 3393660 chubbyjjfong
chubbyjjfong's picture

Kim Dot Com will sort it all out for them I'm sure.

Sun, 03/31/2013 - 13:16 | 3393515 Tortuga
Tortuga's picture

Great. This will all turn out well. The worlds champions of fleecing their sheeple, jealous of the Western fleecers, are going to form pacts, to fleece each other. Australia doesn't have a chance. The chinese have been fleecing each other for 1000's of years and will bring that experience under the table. 

Sun, 03/31/2013 - 13:17 | 3393520 short screwed
short screwed's picture

Silly Chi-coms.  Putting their faith an archaic metal like gold when they could keep plowing all of their cash into something safe like Treasuries.

Sun, 03/31/2013 - 13:22 | 3393528 Charles Wilson
Charles Wilson's picture

"Capital is international."

- Marx

Sun, 03/31/2013 - 13:25 | 3393542 rodocostarica
rodocostarica's picture

Why has this all taken so long to implement? Seems so logical to me to have full conversion.

Sun, 03/31/2013 - 13:30 | 3393563 Passage
Passage's picture

That means the branch of a Chinese bank in Australia or native Australian bank(less likely) will be appointed as the offshore yuan-settlement financial institution soon.

Sun, 03/31/2013 - 13:28 | 3393550 ekm
ekm's picture

Let me repeat it again.

When money created is EXCESSIVELY EXCESSIVE then only two optins remain:


1) Hyperinflation if the money is ACCEPTED

2) Reduction of INTERNATIONAL trade if the money is NOT ACCEPTED, until total collapse of trade.


The 2nd is unfolding slowly but steadily. Countries have started to refuse to exchange dollars with goods, hence refusing to trade with USA.

Sun, 03/31/2013 - 13:39 | 3393593 Solarman
Solarman's picture

No problem, I look forward to trading my wheat for their gold.  They can keep all of their other crap.  People are missing the next revolution in robotic manufacturing.  China is stuck, they only have cheap people, and three month lead times on orders, and when you can create a factory with few people, and produce two week lead times, and no one stealing your IP, good luck to them.


Sun, 03/31/2013 - 13:33 | 3393575 q99x2
q99x2's picture

Austrailia would have been exporting to the US if the treasonous traitor M'F'in M'Fking middlemen vermin bankster's and their scumbag Federal Senate politician Morons hadn't helped China pollute the planet with its cheap toxic selling fucking junk to the US Wallmart garbage and fuck Bernanke too.

Sun, 03/31/2013 - 13:35 | 3393580 Silver Garbage Man
Silver Garbage Man's picture

This trend will not stop. The petrodollar is in a terminal phase. Plan accordingly. Hint prepared to look after yourself.

Sun, 03/31/2013 - 13:40 | 3393595 NoWayJose
NoWayJose's picture

The amazing thing is that my PMs are going to retain their value against the Chin-Aussie currency while my fiat US dollars fade back to the value of toilet paper.

Sun, 03/31/2013 - 15:45 | 3393941 JLee2027
JLee2027's picture

Doubtful any fiat currency is going to survive what's coming. 

Sun, 03/31/2013 - 16:05 | 3394007 spinone
spinone's picture

At least toilet paper is absorbant.  Ever actually try to wipe your ass with a dollar?  No one will trade their toilet paper for dollars if things go Weinmar.

Sun, 03/31/2013 - 13:41 | 3393596 Winston Churchill
Winston Churchill's picture

All eyes should be on Saudi Arabia.

This move on the chess board is not in isolation.

King dollar is in check ,Saudi is mate.

Sun, 03/31/2013 - 13:42 | 3393601 ekm
ekm's picture

Correct. Saudis are at the top of table right now.

Sun, 03/31/2013 - 14:06 | 3393691 DutchR
DutchR's picture

You mean like they are going to announce that Ghawar peaked, 


end of line...

Sun, 03/31/2013 - 14:32 | 3393756 Winston Churchill
Winston Churchill's picture


That they are not going to take, soon to be worthless paper,  in exchange for

their real declining assets.

The mirage of energy independace in the US is exactly that,

when you look into the details.

The third leg of dollar hegemony is Saudi.The US military is another and is incapabable

of fighting a conventional world war ,even if the US could afford it,which it cannot.

We have two legged stool being held up by bluff ,and the Saudi's.

The bluff was called last week in Durban.Australia is just reading the writing on the wall.

If you cannot see that 2 foot high writing, and save yourself, tough shit.

Sun, 03/31/2013 - 14:52 | 3393806 DutchR
DutchR's picture

Fifth Fleet is a big pawn, a knight maybe.


US/Saudi go a long way back (i dare to say no US no Saudi) but who knows, maybe they don't like their nuclear umbrella anymore.

Sun, 03/31/2013 - 15:14 | 3393853 Winston Churchill
Winston Churchill's picture

The US navy is still planning for Midway.

Time have changed , Admirals rarely do,until after a catasrophe.

The Saudi's are pragmatic ,not at all their stereotype.

Russia, and China have umbrellas and gold..

Sun, 03/31/2013 - 15:28 | 3393895 DutchR
DutchR's picture

You don't think they learned something during Millennium Challenge 2002?


For now the US is the big dog, but like they say, past performance is no guarantee of future results.


Empires die slow (mostly).


Sun, 03/31/2013 - 16:20 | 3394036 spinone
spinone's picture

Dong-Fong successfully tested in Gobi Desert

Sun, 03/31/2013 - 16:27 | 3394054 DutchR
DutchR's picture

Thanks, interesting video.


So drones it will be....

Sun, 03/31/2013 - 16:27 | 3394055 DutchR
DutchR's picture


Sun, 03/31/2013 - 18:49 | 3394335 post turtle saver
post turtle saver's picture

Note the dates... Chinese propaganda bullshit 2013, successful and _independently verified_ Aegis Satellite intercept 2008.

The microsecond China tries a stupid stunt like this a) their craptastic missiles will be shot down, b) Three Gorges will be swarmed with cruise missile attacks, c) a few million Chinese citizens get to learn to be Olympic swimmers or die trying.

I lose sleep at night over many things, the Chinese being even remotely capable of taking out a carrier group isn't one of them.

Sun, 03/31/2013 - 19:34 | 3394437 Bicycle Repairman
Bicycle Repairman's picture

Look, bottom line on Saudi Arabia.  That government serves at the whim of America's military.  If America wants the Saudi royal families heads on pikes, on pikes they go.

Sun, 03/31/2013 - 13:48 | 3393614 The Dancer
The Dancer's picture

Once they have all their positions lined up, I expect to see a collapse not too far in the distance...killing two birds with one stone...crushing Russia under $30-$50 crude and giving China a few million problems to worry about at home. And of course war will have to take it's place in this picture. That's how I see it from over here in SEA.

Sun, 03/31/2013 - 13:48 | 3393615 Peter Pan
Peter Pan's picture

Australia may well save in transactional costs but it will still have to find takers for the excess Yuan it takes in.

I am against the accumulation of any reserves unless it is in gold and silver.

The Chinese now have in excess of 4500 tonnes in gold according to a Chinese contact.

The sooner the world starts netting off their import/export transactions with gold, the sooner that balance and sanity will return to the world and will in fact encourage more trade.

Sun, 03/31/2013 - 13:49 | 3393620 ekm
ekm's picture

There's plenty of chinese slave labor to use the yuan for. They're not keeping yuans in reserve.

It's basically INTERNATIONAL BARTER bypassing USD.

Sun, 03/31/2013 - 15:26 | 3393892 defencev
defencev's picture

And who do you think you are to dictate Chinese what they should or should not do? It is quite obvious for me that it is high time to accumulate renminbi (and now it is quite easy by opening banking account in HK where Renminbi is fully convertible). Renmbinbi

is going to be the next reserve currency. Everuthing else is pure shit.

Sun, 03/31/2013 - 20:19 | 3394519 Peter Pan
Peter Pan's picture

All fiat is eventually shit and if fiat reflects the economic, social and political health of a nation, then the renminbi is every bit a piece of shit as its US counterpart the dollar.

Just remember, do you really want a currency that is not backed by freedom of speech and democracy but which is backed by cheap labour, 64 million empty apartments, terrible levels of air pollution, bad debts, a huge and shaky banking system?

China has made some incredible progress in coming out of a communist economy but at the same time it has some real time bombs of its own.

I don't invest in time bombs.

Just look around Sydney and see how much Chinese money is going into real estate. The Chinese who can are fleeing China.  

Mon, 04/01/2013 - 00:50 | 3395133 Cthonic
Cthonic's picture

Fleeing?  Colonization.

Sun, 03/31/2013 - 13:49 | 3393618 Mike in GA
Mike in GA's picture

Does this mark another ratcheting-up of probablity (maybe inevitability) of hyperinflation in the US as $ demand is reduced?

But, on further reflection, the sheer number of paper dollars (those $100 bills C.H.Smith wrote about here: is much less than the digitally printed dollars today so, what will the effect be?

This currency behavior is beyond my ability to figure out but I would like to try to understand a lttle more of it.  It seems like the USD blow-up will be the last big hurrah of the America that was before we enter the promised land that is to be under NWO.  I'd just like a little heads up, that's all.

We've gone from a country firing on all cylinders to a sputtering, halting inability to get a damn thing done.  And the $ is being eroded like a beach in a tropical storm.  Hurricane force will wash us out to sea.

Sun, 03/31/2013 - 13:54 | 3393636 Winston Churchill
Winston Churchill's picture

You are over complicating I think.

We are talking about maybe a 75% devaluation in ALL  USD's overnight,

and concurrent hyper biflation from there.

Sun, 03/31/2013 - 14:01 | 3393665 ekm
ekm's picture

Hyperinflation occurs only when the money makes it into the FINISHED products real market, daily exchange of goods and services.


What is happening that the excessively excessive money:

1) Has gone for commodities hence commodities are in hyperinflation, hence very high inputs costs, shortage of energy etc.

2) And the rest is simply NOT ACCEPTED for INTERNATIONAL TRADE and stays in "reserves". 


Bernanke says that "we're not printing money, we're creating reserves".

So let's ask the question: Why is the money still in reserves? The purpose of money is to be used for exchanging goods and services, right?


Answer: The money is in reserve because nobody wants to use that money, it's a rejection of USD, in practice.

Sun, 03/31/2013 - 14:20 | 3393731 negative rates
negative rates's picture

I think he's stuck in a swamp, and it's move it or lose it time.

Sun, 03/31/2013 - 14:22 | 3393734 sosoome
sosoome's picture

I'm not smart enough to answer your questions, but I do know that thinkers must calculate the difference between paper and digital dollars, as you wisely point out. Surely, it will impact historical outcome precedents.

What I do know is in Cyprus at present, there is a high demand for currency, and very short supply. Those who had assets in hard cash, rather than in the banks, are sitting pretty.

Sun, 03/31/2013 - 14:04 | 3393679 The Dancer
The Dancer's picture

Don't forget one thing...a 75% devaluation would make the US the most competitive exporting machine in the world....this whole thing will be super's all relative, as Mr. Einstein said....not stagnant...

Sun, 03/31/2013 - 15:17 | 3393866 Winston Churchill
Winston Churchill's picture

True, but the twenty five years or so in transition , will not be pleasant.

Sun, 03/31/2013 - 17:22 | 3394147 post turtle saver
post turtle saver's picture

If US manufacturing were its own stand-alone economy, it'd be the eighth largest economy in the world. Imagine what it would be if the US actually buckled down and started trying. Food for thought.


Mon, 04/01/2013 - 11:28 | 3395963 PrintemDano
PrintemDano's picture

Buckle down?  This is the land of the free Obama Phone.  There will be NO buckling down anytime soon.

Sun, 03/31/2013 - 14:04 | 3393681 bankonzhongguo
bankonzhongguo's picture

The US and China are at war, only the US does not know it yet.

This is what happens when you raise a generation of know-nothings on Xbox and cartoons while exporting industry and subsidize fungible illegal labor.

The Plan is for the US to become China.

The US deserves what it gets.

Sun, 03/31/2013 - 17:12 | 3394128 DanDaley
DanDaley's picture

Helps explain the Mao Tse Tung Christmas card on the White-House Christmas tree 3 years's been a goal for quite some time.

Sun, 03/31/2013 - 14:08 | 3393695 Quaderratic Probing
Quaderratic Probing's picture

renminbi (RMB)is being printed just as fast as the USD to keep the PEG. If China de-pegs the RMB will climb till they can't sell anything.( then no need for iron ore )

The only thing happening here is the savings in exchange costs on perpetual sales.

Sun, 03/31/2013 - 15:04 | 3393830 css1971
css1971's picture

I was thinking of Chinese government bonds for exactly this reason. With the peg, which has been static for a year, they are effectively US Treasuries which pay a higher interest rate.

Without the peg which way does the RMB go?

Sun, 03/31/2013 - 21:26 | 3394688 YuShun
YuShun's picture

If China, Japan, Europe, & England are all printing about as fast as the USA,
then is it not incorrect to think of the USD as the sole reserve currency?

Sun, 03/31/2013 - 14:18 | 3393728 The Dancer
The Dancer's picture

This how I see looks to me like it's going to be the Jews of the Occident vs. the Jews of the Orient(as the Chinese are sometimes called)...pick your side and lay down your bets...I know one thing, "these boys" that have been running the show for hundreds of years are not going to give up control of planet Earth without a fight to the end...

Sun, 03/31/2013 - 14:22 | 3393737 grunk
grunk's picture

I suddenly have a hankering for a vegamite sandwich and some wonton soup.

Sun, 03/31/2013 - 15:53 | 3393970 DutchR
DutchR's picture

Good, you are keeping it real :)

Sun, 03/31/2013 - 14:33 | 3393760 Who Laughed
Who Laughed's picture

haha merica go straya

Sun, 03/31/2013 - 14:41 | 3393780 H E D G E H O G
H E D G E H O G's picture

WTF. China, India, Pakistan, etc., etc., etc., are hoarding gold and silver BY THE TONS, shoring up their future world reserve currency. Nations like Iran, China, and now Australia are skipping the FRN for an exchange rate in their soveirgn currencies. The USA, under the thumb of a non government entity, a private money making enterprise of global proportions, in the 'Federal Reserve" cabal, is flodding the world with ever devalued paper. This just didn't happen folks, it's fucking been going on for years now, and by the time the sheeple awake one morning to realize WE'RE NOT the King of the Mountaintop any more, well, to put it as eloquently as possible, we're/you/they/me are going to be up SHIT CREEK without the proverbial fucking paddle. Who could've possibly seen this coming will be echoed through the halls of Congress, and the elusively dumbass WhiteHouse. jeeez....

Sun, 03/31/2013 - 15:00 | 3393823 alfbell
alfbell's picture

Lots of opinions here on what this all means. Doesn't help an economics challenged individual like myself determine whether this Aus/China agreement has any real significance or not. Oh well.

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