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China Takes Another Stab At The Dollar, Launches Currency Swap Line With France
One more domino in the dollar reserve supremacy regime falls. Following the announcement two weeks ago that "Australia And China will Enable Direct Currency Convertibility", which in turn was the culmination of two years of Yuan internationalization efforts as summarized by the following: "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", China has now launched yet another feeler to see what the apetite toward its currency is, this time in the heart of the Eurozone: Paris. According to China Daily, as reported by Reuters, "France intends to set up a currency swap line with China to make Paris a major offshore yuan trading hub in Europe, competing against London." As a reminder the BOE and the PBOC announced a currency swap line back in February, in effect linking up the CNY to the GBP. Now it is the EUR's turn.
More on this curious move by the Bank of France and the PBOC from Reuters:
"The Bank of France has been working on ways to develop a RMB liquidity safety net in the euro area with due consideration of a supporting currency swap agreement with the People's Bank of China," Noyer told the English-language newspaper.
The yuan's internationalization and bilateral financial cooperation could be among the main topics during French President Francois Hollande's visit to China in late April, the paper said.
French Foreign Minister Laurent Fabius paid a two-day visit to Beijing this week.
The planned swap line would be the latest in a string of bilateral currency agreements that China has signed in the past three years to promote use of the yuan in trade and investment.
It followed a similar step by the Bank of England to set up a reciprocal three-year yuan-sterling swap line with China.
It appears that France may be a far more strategic European hub for China than London:
In 2011 and 2012, the total value of offshore yuan-denominated bonds issued by French corporates was nearly 7 billion yuan, twice the value of bonds issued by their British counterparts, according to a report by Paris Europlace, an association that supports the French financial industry and promotes Paris as an international financial center.
A survey by the association, the China Daily reported, also showed that 50 percent of French companies have used yuan-denominated products and services.
European and U.S. officials have for years been pressing China to do more to open up the yuan to international markets, saying its artificial weakness was one of the key imbalances of the global economy.
Sadly, the last sentence is dead wrong. The question why China has been scrambling to internationalize the CNY has nothing to do with succumbing to Western demands at reflating its currency to appreciate it and thus to push its current account even lower in the country with the shallowest stock market and the most bank deposits (i.e., most prone to sudden, abrupt bursts of inflation), nearly double those of the US, and everything to do with preparing the world for the "final monetarism frontier", which will take place when the BOJ's reflation experiment fails, and last remaining source (at least before Africa, but that is the topic for another day) of credit formation - the PBOC - finally ramps up.
As we pointed out a few days ago when we discussed the accelerating Chinese credit impulse and its soaring 240% debt-to-GDP ratio:
What should become obvious is that in order to maintain its unprecedented (if declining) growth rate, China has to inject ever greater amounts of credit into its economy, amounts which will push its total credit pile ever higher into the stratosphere, until one day it pulls a Europe and finds itself in a situation where there are no further encumberable assets (for secured loans), and where ever-deteriorating cash flows are no longer sufficient to satisfy the interest payments on unsecured debt, leading to what the Chinese government has been desperate to avoid: mass corporate defaults.
At that point it will be up to the PBOC to do what the Fed, the ECB, the BOE and the BOJ have been doing: remove any pretense of money creation via the commercial bank complex (even if these are merely glorified government-controlled entities), and proceed to outright monetization of de novo created assets, thus flooding the system with as much money as is needed to preserve the illusion of growth. Naturally, with the Chinese stock market having proven itself to be a horrible inflation trap (and as a result the bulk of new levered money creation goes into real estate), the inflation explosion that would result would be epic.
And that, in a nutshell, is the reason why China is doing all it can to prepare for the moment when capital flows will soar once the PBOC no longer has the option to extend and pretend its moment of entry into the global reflation race. Yes, it will be caught between a rock (hyperinflation) and a hard place (a very hard crash landing), but the fact that neither of those outcomes has a happy ending will hardly stop the PBOC from at least preserving the alternative. That alternative will of course be to be ready and able to hit the switch when the BOJ's printer burns out, and someone else has to step in and fill its shoes in the global "money creation" strategy, which sadly is the only one the world has left.
Finally, the question then will be not if, or how long, the US Dollar will remain the world's reserve currency, when even the Developed world is forced to admit the PBOC's monetarist primacy over the Fed, but just how much unencumbered gold one has to hedge against what will be the final, global bout of hyperinflation, the one spurred by every single DM and EM central bank is forced to print for dear fiat status quo life, or else.
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Gonna be tough to do to those countries what the US gov. did to Libya for bypassing the buck. Don't think we will see any CNN reports about Al-Qaeda popping up in China.
thats what N Korea is all about
Bingo! To derail or slow China at any cost.
This is the Black Swan. To scare ppl back to the USD.
Those Chinese save 40% of their wages and have $1 trillion in treasury bonds and mortgage backed securities and have huge trade surplusses with most of the other countries. Boy are they screwed. When it goes down, it'll be grim. At least in the U.S. we can keep writing bad checks if the economy were to go bad.
China is buying physical, on the fucking dip, with paper, guess where it's being held?
-not new york
china isn't buying anymore u.s. debt... unless amerikana`corporalist' are exporting more [country of origin?] made in china via made in america?
just enough money do the chinese leave in mr bernake/lew piggybank to carry-the-trade, period!
last i checked the ussa still has a trade imbalance... and it ain't gonna get much better, esp. when the only service jobs in the country will be at america's mall's where multi-cultural corner kiosk's will flourish with 'mini-tent $2 blow-jobs' next to the starbuck poster sticking on the floor...
Those Chinese save 40% of their wages and have $1 trillion in treasury bonds and mortgage backed securities and have huge trade surplusses with most of the other countries. Boy are they screwed. When it goes down, it'll be grim. At least in the U.S. we can keep writing bad checks if the economy were to go bad.
Maybe until they announce a gold backed YUAN, then who's screwed.
At least that is not as bad as having the White House and Federal government taken over by foreign banks, traitors and globalists. Fuck the dollar. Bring on the revolution. The FED thinks of the US Dollar as theirs--that they only let it be used and only they control it. Fuck the FED let them have their dollars and they can play with themselves. They aren't part of the United States of America anyhow. Kick the FED traitors out of the country and their fiat ponzi scheme with them. With such a parasitic weight off our backs we might be able to make votes mean something again.
The 100 year Fed charter is up for renewal this year. It must be stopped, with force not votes.
@ the inception of that Charter in 1913 it was for 100 yrs. but some time ago (1967?) it was changed to a open, no ending Charter.They're not going anywhere.
In 1927 the Charter became open ended.
+100 q99x2
Bring it on. Public executions so the idea that they could NEVER return is firmly embedded in their psyche.
I did not even know EU members can individually enter into currency swap agreements with other countries. I guess France is desparate.
Another hint that Germany intends to exit, so France is tipped off and making arrangements accordingly?
Me neither? Must be the the U.S. banking arms of French Banks. > BNP Paribas- Crédit Agricole- Société Générale-ect...
In Europe the banks are really sovereign ponzi schemes.
Correction, they're GS Ponzi schemes, as its was them who sold all the toxic shit to the various EU banks. Why do you think their former lieutenants are now heading various EU bank positions?
/Can you say "Cover the tracks"? /s
Anyone hear about the landslide in Utah that is going to take ten percent of physical silver off the market for years? Kapooya, kapooya.
Sirens going off, jets scrambling, dogs barking over south China seas--no news.......
All this stuff about "slave" labor in developed nations is bs. Its technology. I noticed it decades ago when typesetters and other trades were made obsolete. The following confirms it to the naysayers who believe technolgy produces work. I am a programmer. My applications have enabled companies to do far more with less people.
http://www.theglobeandmail.com/commentary/margaret-wente-whos-stealing-our-jobs-computers/article11170110/
But don’t blame greedy capitalists for your distress. Blame technology. We’re going through a technological revolution so disruptive that we’re only beginning to feel its impact. Advances in technology are the reason why RBC can outsource work to Indian software engineers who are paid 10 cents on the dollar. In the next stage of the revolution – coming very soon – the bank won’t need people to do this work at all.
The revolution started lower down the value chain, wiping out millions of middle-class jobs that real people used to do. Bank tellers, data-entry clerks, airline ticketing processors, travel agents, office assistants and meter readers bit the dust. Entire occupations were virtually obliterated. Not all of these people were laid off; they simply weren’t replaced. Today, retail workers are being let go by the thousands because more and more of us are shopping on the Internet. They won’t be replaced, either.
Andrew McAfee, a research scientist at MIT who specializes in technology’s impact on business, says the pace of innovation has sped up so much that our skills and institutions simply can’t keep up. A lot of people have been left behind. Computers contribute enormous wealth and productivity to the economy, but not much employment, he agreed in an interview with the CBS program 60 Minutes. In his blog, he points out that Apple, Amazon, Facebook and Google have a combined market capitalization of more than $900-billion, yet employ fewer than 200,000 people. That’s less than the number of new jobs the U.S. must create every two months just to hold the unemployment rate steady.
You are not only incorrect but ill informed as well.
Technology that boosts productivity lowers costs and makes new products available. Technolo0gy does not destroy jobs, only government and the banksters can do that via theft, fraud and regulations.
Sure the automobile sent the buggy and buggy-whip industries to the dustbin of history but then countless other jobs appeared concurrently to produce fuel, and build and repair, etc. Ditto, computers. All those secretarial pools found other work and for better pay, at least at first. I too make good money in the computer trades which were not even around when I started school.
No theft called "taxes," regulations, minimum wages, depressed interest rates, inflation, printed money funneled into the hands of consumers via credit cards created the wasteland that is now the US economy and the falling standards of living that the American people now must endure.
Put another way, the bastards enslaved us and then sold us to the highest bidders overseas.
Try reading Hayek`s "Road to Serfdom." Very enlightening stuff therein and prophetic as well. Also Gene Callahan`s "Economics for Real People," Mises` Human Action," Rothbard`s "Man, Economy and State."
hujel
I agree with both your points. Cherry Picker's point was that the revolution in technology is happening faster than human socity can deal with, not that technology is a bad thing. Recall the video posted here a couple days ago where our once-agricultural nation was forced into other persuits because of improvements in technology. The change was gradual enough so that most individual and society could adapt. Granted a low-skilled farm hand could easily transition into an amost equally low-skilled coal miner or factory worker. Agriculture didn't truly die as an employment bastion until advances in transportation, refrigeration and in our transportation network sealed the deal, but ultimately lowered costs for everyone.
Back in the 80s I was a computer systems manager and wondered if innovation would start occurring at a rate faster than products could be marketed at a profit. Still watching and wondering. Big subject.
Contrary to your comment about being ill informed. Googel is experimenting with driverless cars. What will taxi, bus drivers, truck drivers going to do in ten years?
Think about this, MacDonals's has invested in a firm which will eliminate burger flippers as it can make a burger from start to finish and offer better quality than now.
As far as computer repair and maintenance is concerned, it is remove and replace now.
The tech jobs being created is nowhere the jabs being replaced.
In over forty five years in the work force, I have seen what happens.
The Luddites were right.
The Luddites were wrong.
+1 That was an oasis of sense in the nut house.
Automation plays a large part, perhaps largest, in employment or lack thereof. It's clear the countries with the highest skills in technology will dominate this century, and it's also clear that the vast majority of people in developed countries are happy to fall into the Luddite category, willing at best to use technology, but unwilling to invest their time understanding it, or the science behind the technology, so the talented are either imported or outsourced to places where they exist in abundance & are therefore cheaper.
All this technology can be destroyed in one really big solar flare or with a strategically detonated nucleair weapon in the sky.
takes a lot to say basket of currencies = world money denominated thing.
Jesus H on a Popsicle stick. First BTC, then PMs and this too?
http://securitywatch.pcmag.com/none/310350-wordpress-joomla-sites-under-brute-force-password-attack
It's like a coordinated attack on everything we might use and believe in. Damn these motherfuckers are ruthless cowards. Do we really intimidate them that much? If that is the case then that means we are winning.
Keep stacking. Fuck the dollar.
Amen
Zee best currency swap is to give the zee paper in return for zee gold. The great man De Gaulle was on zee right track in zis regard.
Off topic but I had some interesting phone conversations this past week. Not once, but twice did I have realtors call me out of the blue (one male, one female) who I haven't talked to in years (I spoke to them before about wanting to buy a home; but I learned my lesson about realtors and will minimize interaction with them in the future) asking in more or less these words: "Oh hey, it's been awhile...are you....are you still interested in buying a home? If I remember you were looking for a...."
Now why would they do that? Not one, but two. One is from this town and the other the next town over. Out of the blue? Something tells me they're DESPERATE for commissions and maybe their little network of realscum/lenders/underwriters/bankers/ (sorry if any of you are in these professions: find something else to do) knows something, or senses something, that the average sheeple isn't aware of. Shall we give this a few more months and wait for data to come out (and for the revisions)???
It is desperation. They got to eat, lifestyles to maintain.
What else are they going to do? After all real estate people are a dying profession like travel agencies. This economy isn't helping them either.
No kidding. Here's my take on the average realtor: Half of them are pros who were in the biz before 2002. The other half are semi-pros who got in during the early 2000's just to make a quick buck. Most of these are dirtbags and from the grapevine I hear that many are alcoholics, drug abusers and have been in and out of prison which precludes them from most types of work, but does NOT preclude them from facilitating transactions on other people's homes and having basically unsupervised access to them. Not saying that most realtors have been to prison, probably nowhere near over a couple percent, but enough that we often get news stories about realtors breaking into homes, squatting, stealing items from estate sales, etc.
Here's the personality/personal finance issue: most realtors in the second category litterally 'bought' their own hype. They bought homes during 2005/6 (and WAY too much at that) just to "impress" their clients and others as if to say "look at me big shot realtor". The vast majority drive some huge gas-sucking SUV which they likely got as a tax write-off for "business use" for vehicles over a certain tonnage. That law if I recall was supposed to help out your local small businessman (plumber, contractor, local redneck, etc.) with trucks and utility vans, but realtors too advantage of it too.
So in a nutshell they live very flashy lifestyles, have addictive personalities, are basically used-car salesmen (just multiply the size of the asset being transacted), know very little about the demographics or geography of the area (NOT the professionals who're in the first category and in the business because they're good at it), are massively in debt on cars and mortgages, have very little savings, and when you add that up and commissions aren't coming in they've become DESPERATE.
Have our house on the market for 8 months now. 100 showings and one offer; low ball. We took it too. She lost her job the day of the close. No shit. Parents can't sell. Inlaws can't sell. Brother can't sell. What does that tell you?
Get the hell out of there. Check this out EKM> DC Home Prices Hit Highest Level on Record
whoring pays well
Made my day Otto. Back to " High Plains Drifter" on AMC.
I'm a josie wales guy-to each his own clint e movie
blazing saddles
in chase bank the other day [ don't ask] , twenty something people and i was the only customer-- twelve cashiers and eight cubes with loan/credit personel and not a fucking soul!
If China makes a currency agreement with all major trading countries, they will become the de facto world reserve currency.
No, they won't.
The USD became the world reserve currency due to a very special set of circumstances following WWII.
The fact that the US has been a remarkably prolific DEBTOR nation is key to the adoption of the USD internationally.
When/IF the day comes that a 'risk-off' day in global capital markets leads to an automatic strengthening of CNY vs. USD/EUR/JPY I may change my view.
Mind you, I've no doubt the USD will someday(soon/later IDK) lose it's place as the world reserve currency, but no way China TP replaces it.
[Just my 2c.]
Light bulb: I figured the North Korean ruse was to distract from imminent bank bail-ins in the US. That may be. But the real deal is to draw China into an actual shooting war. This is much more dangerous than we thought.
Don't forget - withdrawing from the RedShields is "Not Allowed." It got Napoleon exiled, it got Hitler killed, it got Saddam killed, it got Qaddafi killed. (Assad isn't going very well because Putin's kind of a problem.)
So if China is trying to line up real, actual currency independence - they will get fucked over with real bullets. That's what Korea is about.
Unfortunately you are incorrect.
The North Korean issue is mostly China stirring the pot and keeping the US "engaged" and distracted while we bleed ourselves dry to them and others.
Sort of funny watching it play out --the paper tiger, the US, rattling sabers and showing off its hardware, and all the while knowing that they can´t afford to do anything and can´t afford the financial fallout either.
Anyways, where do you think the just about Stone-age economy of North Korea got the money and technology to build a nuclear program, YouTube and selling things on eBay?! The Chinese and the Iranians via China put it all together to keep the US "engaged" and the South Korean juggernaut at bay.
The US and the West also use it as a sheeple distraction--economic and bank problems not important when some Stone-age country is "threatening" to nuke the "homeland." hujel
Well yes, destruction of America is definitely on the menu. But I don't believe that China is calling any shots at all.
I think all the shots are called from London, New York and Houston.
It is planned, not yet implemented... but when it is... very interesting.
Australia was the latest "western" type country onboard.
Pure brilliance on the part of the Chinese.
France is bankrupt and feeling a bit like the odd man out to the UK and Germany. What could be better then to offer some dough, recycled paper things called dollars, a chance at being the financial center-/ink to the East and a chance for renewed world clout at the feet of the Chinese.
The Chinese get an ally in the heart of Europe, another place to recycle toilet paper (dollars) and access to France´s connections and resources in Africa.They also get to check some of the in roads being made by Russia via Germany.
All I can say about the US and its financial puppeteers is: ruh roh. hujel
I disagree. The Chinese are wasting their time on the continent, and in France at that.
Better than nothing, that's the most one can say about this.
So what happens....I wake up one mornnig and walk down to my local Starbucks for a Crapaccino with whipped cream and mocha sprinkles (slim milk, though) and when I hand them a $20 they respond,
"Sorry, Pal, we only accept RMB here."
Coming to a theatre near you soon!
Or BTC.
one word.....Methodical.
Off topic and I know american don't get this but Maggie Thatcher sucked!
There will be mayhem (sniff) : https://www.youtube.com/watch?v=s4BCUWopQQ4
Off topic and I know american don't get this but Maggie Thatcher sucked!
There will be mayhem (sniff) : https://www.youtube.com/watch?v=s4BCUWopQQ4
I didn't do that ...
I'd say Checkmate but this seems more like the Chinese game of GO, where you surround your enemy to win.
For those asking for someone in London to explain the current gold heist:
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/12_Ma...
Listen to the audio as well.
You guys are way too worried about China. The fact of the matter is that China always, always collapses, one way or another.
FYI, it may be nothing, but the group of ham radio types I talk with are all picking up a pretty dramatic change in air force transmissions on shortwave.
There might be something going on with North Korea, or we might just be trying to spook them -- but it's not business as usual tonight.
Well if this is accurate, that they can simply lock out buyers (or sellers) at will with zero recourse or consequence it means trading on the COMEX is simply suicide.
It isn't a market, there is no physical gold or silver to bought, it is a total sham with a single purpose...express the will of the Fed.
This is getting close to the Fed coming out and declaring on a weekly basis the price of Gold/Silver...and that they will corrupt the market in any manner neccessary to achieve it.
Time to enitrely abandon the COMEX as a price setting mechanism and as a source of real gold or silver of which there is none.
Players wanting to trade real gold and silver should go eleswhere and ignore the COMEX it is irrelevant, it setting the price of nothing.
If I were a gold or silver miner I wouldn't be selling future stock at any price related to the COMEX.
Awww shit I sold all of my PMs because the price dropped 4%. /sarc off
Count in New Zealand as well.
NZ Herald Wednesday 8th April 2013
"One area that had bothered Prime Minister Key was the fact that Australia has stolen a march on New Zealand when it comes to moving to direct convertibility of its currency against the Chinese yuan.
On his way to Boao, he read a NZ Treasury briefing, talked with his luncheon partners about the potential for New Zealand to follow Australia, then directly put it to Xi that New Zealand wanted to go down the same path.
Key relates that Xi then looked to Xu for affirmation. The nod was given. The upshot is that officials from both sides have been directed to take the proposal forward.
It probably does make sense for New Zealand to follow in Australia's footsteps on this one. The People's Bank of China had granted licences to Westpac and ANZ to be market makers in the direct trade.
ANZ chief executive Mike Smith was quoted by Australian media as saying the market was "likely to eventually run into billions of dollars when working capital requirements were taken into account"."
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10876490
Just like Japan's straw man fake economic powerhouse status of the 1980s so we have suffered again through another fake asian miracle with China.
The glove puppets have to come off soon, leaving China the basket case it really is, ready for economic conquest.
As for being a serious military threat to the USA- shall we compare missiles, Area 51 level technology and aircraft carriers?
One big con game.
Such a BS headline, THE CNY is pegged to the USD... Such a stupid article and moronic assumptions/conclusions. THE CYN IS PEGGED TO THE USD.... HELLO!!!!?????
These agreements just seem like a convenience to the parties rather than trying to get rid of dollar as reserve currency. until the Yuan is free floating this is a non story to me, who cares is they dont want to have to buy dollars then sell them to the french or ozzies... seems like a pain in the ass to me and I would want to cut out the middle step as well. if they break the peg to the dollar then I would start to worry about them trying to replace dollar as reserve currency. I dont know but this seems like common sense to me yet not mentioned once in these articles. commodities and goods will still be priced in dollars then converted and settled in local currencies... nothing story.
Don't matter what is pegged or not.
If the USD isn't used for billions of dollars worth of transactions, they won't need to use it anymore and what are they going to do with money they don't need? Burn it?
No.
The excess will devalue what is out there.
If its pegged to the dollar then CNY = USD plain and simple, the PBoC will buy or sell the required dollars to keep the peg at desired levels. So sorry you need to spell this out a little more clearly, but as long as they are pegging it then it doesnt matter if they settle in yuan or dollars, as the PBoC will keep the exchange rate where they want it. I am not sure why this is not obvious, but if they were trading in euro's and not buying the dollars then they will eventually have to buy dollars to keep the balance and the currency from appriciating vs the dollar because they are buying less buy trading in other currencies... soooooooo... what I said is accurate.... if they want to conduct all transactions in yuan or dollars doesnt matter as thier central bank with adjust dollar holding to keep currency pegged...
if you peg a currency then it is = to that currency, and if people lose faith in that peg, then there could be attempts to break the peg (usually not sucessful, but they have tried in hong kong recently, as ben encouraged it).
you could argue that they want the dollar weaker in order to devalue the yuan, but that is not the arguement in the article, also if they were going to peg to the euro that would be big news, but that is not the case and would be stupid, would be stupid to peg to anything except the dollar.
The whole reason they dont free float their currency is that they want stable money, which is why anyone pegs it to the dollar, the dollar is still the most stable of all currencies in the world (and possible the most stable paper currency in history). Pegging to anything else, including gold is not realistic in the current state of world economics.
PBOC cuts out the JPM (and TBTF) skim, and the PBOC can set the USD peg wherever it likes and manipulate the markets to suit their own ends...
The long game for dominance is actually based on denomination currency not settlement currency, but settlement is a required precursor.
Correct they are cutting out middle steps saving time and money, and personally I applaud this. Smoothing out transaction process is good for both sides and only makes common sense, I am just curious why they didnt take these steps a long time ago. Anyone that thinks the Yuan will replace the dollar as reserve currency anytime soon is nuts, and I really dont see china trying to supplant dollar as world currency. They have bigger problems than the US has, they are just better at lying about it, but dont worry obama and the MSM is taking lying to new heights and will catch up with the Chinese in that department soon.
Any free marketer should applaud agreements like this, as they increase efficiency and stabilize regions
I think there is a huge gap between destroying dollar hegemony and replacing it with yuan hegemony. I also think the Central Banks' tool kits have increased exponentially over the past decade, and the efficient market that is required for 1:1 relationships and correlations is long dead, if it even ever existed for a brief moment. Otherwise, monkey-hammering gold wouldn't be so damn profitable... Six or eight years ago, currencies moved in year what they can now move in a day. The CBs can put on a position quickly, and take it off slowly, or in a derivative market, or in a correlated market, and pocket the profit on the intervening flow. The problem for China is that by willingly accepting even a regional Triffen paradox, they are building their own policy prison- but they don't actually think on that long a timeline, especially when there is so much of the biggest pie up for grabs in the interim.
the Peg begs the Wall of Street to fall and thus the sweet eyed Mandarin hologram becomes the only thing left standing in a world of ghosts and goons, if it can find ANOTHER leg to hold it up in the ensuing vacuum.
Imagine a bouncing peg unleashed like an Apache feather floating enticingly in the wind, promise of new morn shorn of old greenback storm, looking for another staging post more resilient than the elastic link to its old host now in fiat decay.
Walls are made to fall; just ask Berlin and then send that message uncoded to Jerusalem's calling.
Great wall of China is now a tourist trap that earns good yuans for floating swans; black dawn or new white spawn?
You yawn and I am born; like a teeny bit of virtual coin on golden pond.
The game goes on and the fatal moment comes at Amen Corner on Sunday mass.
Play on frenchy fries, faded irons glowing red hot on drawn white screaming drives.
The only BS I see is that of your ignorance + arrogance.
I don't have the patience to educate you, but you need to bone up on the USD as a Reserve currency, and how its absence in sovereign deals accelerates its demise.
Then come back and talk sense.
yes... dont have time to "educate" = don't have good argument.
if they break the peg, do you think france will still trade in yuans and not dollars? probably not. its all just accounting. now if you want to argue countries getting together and wanting to invent a new reserve currency linked to a basket of currencies and/or commodities then would agree they are working on doing in the dollar. But the bottom line your missing and need to educate yourself on. Is the whole system is based on dollars and the peg, if they remove the peg, see how long the french or Aussies agree to accept Yuan's and not dollars, I would think not very long.
they could settle in widgets and 1 widget = 1 dollar and they will buy or sell dollars to keep the value of widgets = dollars, then its no difference then settling in dollars. now if they start settling in euro's and its floating vs dollar that is different story, so before you make some pompous comment back it up with some logic that refutes some or all of an assertion.
And final point if you want to think I am wrong, if the goal was to remove the dollar as the reserve currency how would this help china? The dollar as the reserve currency is the way it is for the foreseeable future, to undo would cause so much financial destruction that it would benefit no one. Logic >>>> BS
Stupid stuff like this is so common on ZH, gets old. Been talking about how gold could easily go down and explained it many times here for a long time then everyone here on ZH cant understand it when gold goes down. too many people blindly read these articles and take em as gossple without using there own logic to vet them.
Lastly, do you really think china and france buying goods between them in local currencies is going to threaten the dollars position? I dont think so. smoothing out transaction processes between 2 countries doing business between themselves does not threaten the dollar, but makes common sense. Next time there is a crisis see where people run, want a hint???? Dollars, if its tomorrow or 10 years from now they will run to dollars..... plain and simple, why? cause the US is the safest place on earth, with the biggest economy, as long as that does not change the dollar will be the reserve currency because it will be the most stable.
You are right! It does not matter what currency they make payments for goods in dollars or RMB.
It is important that the value of the currency of payment is determined in U.S. dollars. And the value of the goods is also determined via the U.S. dollars.
Thus, the dollar remains the instruments of measurement (as standard value) for all rates currency conversion and for the value of any goods.
Esp when the RMB is fixed against the USD! but really why does it if they actually buy the dollars then sell them again or just do the math, doesnt make sence. they can use bitcoin if they like. one buys the bitcoin with euros the other sells it in rmb's instintaniously does this effect the value of anything vs bitcoin? NO becuase it was bout and sold instatanous (now cant do it instantanous so could be market changes if market is not liquid enough) the dollar is liquid enough that it doesnt matter, if the french buy dollars then use the dollars to buy crap from china then china sells dollars to get the RMB does this effect the price of the dollar? no cause the same amount of dollars were bought and sold assuming the position is not market moving, if it was it makes MORE sence no to do the transaction in dollars. it will have net effect of the 2 local currencies involved but the net effect on the dollar is 0, if its not 0 there is arbitrage opportunity in the market of rmb vs euro vs usd, and this is a net loss for the countries doing business with eachother, and a good reason that they would want to skip the step of buying dollars all together and make such agreements like the one discribed multiple times on ZH.
what if britain and france were setting up vitual swap bots and not real swap markets so they could, in essence, set up a fake market to control the real market like the pm etfs? i can't believe france and gb would fuck themselves intentionally as they will be if the dollar collapses. i think they are using these virtual swap markets to create an unpegged price in the market for the yuan. if germany makes na announcement about yuan swaps then it is true. this is 21st century currency war,
Nails In Dollar's Coffin
- Australia And China will Enable Direct Currency Convertibility
- 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
- The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap
From Youri Carma dig – Links http://forum.prisonplanet.com/index.php?topic=244340.msg1414667#msg1414667
- U.A.E. Considering Currency Swap Accord With China
- LME sale to Hong Kong Exchanges boosts membership
- HSBC wins China approval for direct yuan trading
- South Korea Dollar Reserves Fall to Smallest Share Since ’07
- Thanks, World Reserve Currency, But No Thanks: Australia And China To Enable Direct Currency Convertibility
- BRICS nations slowly creating a new power center
- BRICS agree to $100 billion reserve fund
- BRICS to approve new bank to replace IMF: report
- China, Brazil sign trade, currency deal before BRICS summit
- Russia, South Africa Seek to Create OPEC-Style Platinum Bloc
- Singapore may trade yuan-denominated stocks soon
- China, Singapore Double Currency Swap Agreement to $48 Billion
- China Russia deal on oil, coal and natural gas
- China Said to Approve Joining Iran High-Speed Rail Project
again almost all of these listed is not a big deal. if China buys 1billion dollars, then uses them to buy 1billion in oil from UAE and UAE sells 1billion USD and buys Dirhem does it hurt the dollar if they skip the buying dollar step? they still will be using the dollar as the pricing tool and so the dollar is in effect the currency being delt in but they just save some paperwork.
"prison planet"....... ??????? rotflmao....
+1
The window for preperation is almost closed. Those who did not heed the warnings of the dollar's collapse will be begging at the feet of the prepper.
This is not going to end well.
Amen!
Tom O'Brien line one... Stat!!!!
But wait! What happens to the globalist plan if they collapse the dollar and no one cares?
If Chiner were srs. they would repatriot the T-bonds they hold.
Throwing a temper tantrum is rarely a WINNING strategy.
ALL 7 UNDERGOUND STORAGE TANKS LEAKING AT FUKISHIMA
TEPCO’s handout for the press on April 13, 2013 shows that beta nuclides are being detected in the water taken from either the drains or the leak detection pipes or both in not only the ponds Nos 1, 2, 3 but all seven of these in-the-ground storage ponds
http://enenews.com/report-all-7-in-the-ground-water-storage-ponds-are-le...
What a total clusterf*ck.
Just to add some further clusterfuckedness, don't forget about Hanford Site:
http://www.hanford.gov/news.cfm/DOE/SST%20T111%20Liquid%20Level%20Decrea...
"Office of river protection confirms a decrease of liquid level in Hanford single-shell tank"
You can see the global pieces are moving into position ready for a assault on the US dollar.
Walmart is pulling out of China. That should have devastating consequences for the Chinese.
http://wallstcheatsheet.com/stocks/is-walmart-signaling-the-end-of-china...
Swannie,
Atm, chances of raising capital to mine even high grade in soft ground is seriously challenging.
Chasing alluvial with a dozer is a good deal but may not match spreadsheet numbers.
Exciting times.....I wonder how this will influence the flow of money in the EU now?
The Bible prophesies that all the churches will be awakened in the Time of the End.
It's apparent they will be awakened by the Economic Crisis caused by the coming Iran War.
Do the same cocksuckers(predators,banksters) who own the Central Bank of France the same cocksuckers(predators,banksters) who own the Central Bank of China and who are the same cocksuckers(predators,banksters) who own the Federal Reserve and the same cocksuckers(predators,banksters) who own the Bank of England? Etc.,Etc?
Then it don't fucking matter?
It ain't that easy, I'd say. To give a hint, why do you think, people like us do exist at all? If TPTB were to be one homogenous group, they'd have gotten rid of us long ago. So, that obviously is not the case. While some of them want you and me to disappear, the sooner, the better, there are still others, for whom we represent their valuable slaves. Not only do they provide a very comfortable shelter for us, they also demonstrate, that TPTB do not in themselves agree on how to deal with the lower 99%.
So are you saying YES or NO to the questions?
I say: No, they aren't the SAME cocksuckers, though they surely are all cocksuckers. And because of that: Yes, it could be, that it DOES matter.
LOL,thanks
Yes. and that is the real reason behnd the wars. Something alot of folks miss for one reason or another. The FIRST thing established after Iraq fell was the central bank.
This of course is also driven by the appetite of Chinese millionaires to offshore some of their wealth in one of their favorite luxury good shopping venues.
Awwww. . . fuck it. I'm so tired of trying to make sense if it anymore. Quitting my day job and getting me my SNAP card and one of those Obama-phones.
Quitting your day job: ++
Get SNAP-card: ~
Get Oblahma-phone --
just saying, do as you like
We bought TFD yesterday when we read Rio Tinto mine landslid and has been closed till further notice.
If it's not physical. It's worth- less.I
Schiff: this is best environment for gold
http://www.europac.net/media/video_blog
Schiff is gold pusher and he does not understand deleveraging
best comment on gold drop was from Marc Faber
http://www.bloomberg.com/video/faber-gold-isn-t-down-as-much-as-apple-FJ...
Sometimes I wonder what this world/country would be like if the federal reserve act wouldnt have been enacted.
Oh thats easy, there would be a lot of unemployment, alot of poor people, we would always be at war, we would spend humungus sums of money on defense, we would spread democracy around the planet even if we have to kill a million or two so they can be free like us, the same wealthy fucks who have been controlling us since its creation would still be controlling us.
oops wrong reality,sorry
Sometimes I wonder... Let me venture a guess....a better place?
"It appears that France may be a far more strategic European hub for China than London"
If it's true it could be because they'll ry to kill 2 birds with 1 stone : the Chinese loom over our agricultural potential as well. They tried to buy some milk factories in Normandy before so the plan might be to buy good food from France for the oligarchy and the upper 1% as most everything is poisoned in China.
(I'm just guessing though).
Communists love to work together. Maybe one day France can become a province of China too.
I had one of my buddies text me yesterday that he bought an AR, REMINGTON (M40 clone), Mossberg and a bunch of AMMO. The reason? For the coming civil war. My response? So what date and time are the "TWO WAY RANGE ACTIVITIES" to start??!! My buddy didn't know, but was so damn sure.
So, if anyone can predict the future with any accuracy I'll be ALL ears. From what I have seen, ill get more accuracy reading tea leaves.
I have been gone from this site for a while, the reason, most of the folks have been saying: Weimar, hyperinflation, deflation, gold up, silver up, dollar down, capital controls, FEMA camps, military in control, weapons confiscation...blah blah blardy blah....
My medicine against all of this nonsense? LIVE YOUR LIVES! Teach and instruct your children HOW to be good citizens, speak with a civil tongue, and lastly, treat others with courtesy and respect but have a plan to kill everone of the sumbitches.
Live well, be well!!!!
That's a good post. I love ZH and some other sites but there is no predicting the "when". Believing it is imminent has not been good for my financial health. Seems these money masters can keep the game going for a very long time. Witness the shellacking of gold. This will keep many people from ever coming back to pm's or pm stocks.
Someone mentioned pm companies not selling any metal for the Comex listed price. That is absolutely what SHOULD happen but these mining companies seem content to give shareholders the shaft and play the money masters game.
but these mining companies seem content to give shareholders the shaft and play the money masters game.
Fear of being Nationalized.
Oh yeah, saved round....
Anybody who clamor's for war, sure as the sun rises everyday, have not lived through it.
Sum general said that "WAR IS HELL" knew exactly what he was talking about. It's a wastage of treasure and souls on a GRANDE scale.
If gold has value and dollars less so, then why would the average citizen give a "rats spit" about what that very same yellow metal is priced at IN DOLLARS or any other fiat??!
Methinks that acquiring as much of the metal both GOLD and SILVER would be the end state!
Or has somebody been suckering us??
This is Great!! I've been looking for an excuse to invade France for a long time. Our GI's will love it. You won't have to rape the girls like you do in Iraq or Afghanistan. French girls are easy. They'll give it up -easy -to both our male and female GI's--threesomes -they go both ways -just offer them some weed-or a line of coke. -
You got junked for retardation, my pleasure.
Hey, watta this?
Say it ain't so, Joe?
What we see here is where the tides are going in the world currency playgrounds. Or, who has has been set up to be by those rottenchilds, using the glove puppet maurice strong for the orchestrator of America's downfall, to be the next world money engine?
http://investmentwatchblog.com/dollar-collapse-in-process-four-big-natio...
Funny thing how that was known way back when? And now as was foretold, is now closer to being reality than ever. These two pages of these reports on the early internet have the chances, other than the coming forth of the future confessions of these criminals themselves, to being the most forthwith forecasts of what could happen to humanity if they did not wake to these warnings.
http://www.zoklet.net/totse/en/politics/international_banking_money_laun...
https://www.youtube.com/watch?v=fsU-2zJyNsY
On the other side of the Pacific, will it be this after America declares war on itself, or just total mayhem and destruction of what was once ago, a great experiment in Truth, Justice, Charity, Freedom, and Liberty for all?
http://moneytipcentral.com/inflation-in-america-what-will-hyperinflation...
You could have been a contender America, but you got fat, and slow, and you weren't lucky...