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China's Official Press Agency Calls For New Reserve Currency, And New World Order

Tyler Durden's picture




 

We assume it is a coincidence that on the day in which we demonstrate China's relentless appetite for gold, driven by what we and many others believe is the country's desire to have a call option on a gold-backed reserve currency when the time comes, just posted in China's official press agency, Xinhua, is an op-ed by writer Liu Chang in which he decries the "US fiscal failure which warrants a de-Americanized world" and flatly states that the world should consider a new reserve currency "that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States."

Of course, if China were serious, and if the world were to voluntarily engage in such a (r)evolutionary reserve currency transition, then all Magic Money Tree theories that the only thing better than near infinite debt is beyond infinite debt, would promptly be relegated to the historic dust heap of idiotic theories where they belong.

Some of China's (which as a reminder is the single largest offshore holder of US Treasury paper, and the second largest of all only second naturally to the Federal Reserve whose $85 billion in monthly monetizing "flow" is what is keeping rates from exploding higher) thoughts as captured in the Xinhua Op-ed:

  • Reform of the world’s financial system should include the introduction of a new internatonal reserve currency to replace the U.S. dollar
  • The international community could thus permanently stay away from the spillover of intensifying domestic political turmoil in the U.S.
  • Fiscal impasse in the U.S. is a good time for “befuddled world” to start considering building a “de-Americanized world
  • Impasse has left many nations’ dollar assets in jeopardy and the international community agonized
  • Other cornerstones should be laid to underpin a de-Americanized world, including respect for sovereignty, recognizing authority of UN in handling global hotspot issues and giving developing and emerging market economies more say in major international financial institutions
  • Purpose of such changes is not to “completely toss the United States aside,” rather to encourage Washington to play a much more constructive role in addressing global affairs

Of course, if and when the day comes that the USD is no longer the reserve currency, kiss America's superpower, or any power, status, which is now based purely on the USD's reserve currency status, and the ability to fund half the US budget deficit with debt promptly monetized by the Fed, goodbye.

Finally, as a reminder...

From Xinhua:

U.S. fiscal failure warrants a de-Americanized world

As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world.

Emerging from the bloodshed of the Second World War as the world's most powerful nation, the United States has since then been trying to build a global empire by imposing a postwar world order, fueling recovery in Europe, and encouraging regime-change in nations that it deems hardly Washington-friendly.

With its seemingly unrivaled economic and military might, the United States has declared that it has vital national interests to protect in nearly every corner of the globe, and been habituated to meddling in the business of other countries and regions far away from its shores.

Meanwhile, the U.S. government has gone to all lengths to appear before the world as the one that claims the moral high ground, yet covertly doing things that are as audacious as torturing prisoners of war, slaying civilians in drone attacks, and spying on world leaders.

Under what is known as the Pax-Americana, we fail to see a world where the United States is helping to defuse violence and conflicts, reduce poor and displaced population, and bring about real, lasting peace.

Moreover, instead of honoring its duties as a responsible leading power, a self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas, instigating regional tensions amid territorial disputes, and fighting unwarranted wars under the cover of outright lies.

As a result, the world is still crawling its way out of an economic disaster thanks to the voracious Wall Street elites, while bombings and killings have become virtually daily routines in Iraq years after Washington claimed it has liberated its people from tyrannical rule.

Most recently, the cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations' tremendous dollar assets in jeopardy and the international community highly agonized.

Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated, and a new world order should be put in place, according to which all nations, big or small, poor or rich, can have their key interests respected and protected on an equal footing.

To that end, several corner stones should be laid to underpin a de-Americanized world.

For starters, all nations need to hew to the basic principles of the international law, including respect for sovereignty, and keeping hands off domestic affairs of others.

Furthermore, the authority of the United Nations in handling global hotspot issues has to be recognized. That means no one has the right to wage any form of military action against others without a UN mandate.

Apart from that, the world's financial system also has to embrace some substantial reforms.

The developing and emerging market economies need to have more say in major international financial institutions including the World Bank and the International Monetary Fund, so that they could better reflect the transformations of the global economic and political landscape.

What may also be included as a key part of an effective reform is the introduction of a new international reserve currency that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.

Of course, the purpose of promoting these changes is not to completely toss the United States aside, which is also impossible. Rather, it is to encourage Washington to play a much more constructive role in addressing global affairs.

And among all options, it is suggested that the beltway politicians first begin with ending the pernicious impasse.

 

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Sun, 10/13/2013 - 13:32 | 4050323 GVB
GVB's picture

Here's your black swan event. There you have it...

Sun, 10/13/2013 - 13:44 | 4050351 remain calm
remain calm's picture

Keep printing Yellin, you dumb fucking bitch.

Sun, 10/13/2013 - 13:56 | 4050410 imapopulistnow
imapopulistnow's picture

Keep up the ideology wars you idiotic politicians.

Sun, 10/13/2013 - 14:07 | 4050463 LawsofPhysics
LawsofPhysics's picture

Will China open their books and let the Yuan appreciate?  LMFAO!

Bring it!!  I will happily accept gold for my soybeans then.  Sounds great, bring it on!

Sun, 10/13/2013 - 14:09 | 4050472 NoDebt
NoDebt's picture

..... says the country that keeps it currency pegged in a tight range to the dollar.

Your time is not yet, China.  Maybe someday.  But not today.

Sun, 10/13/2013 - 14:14 | 4050485 LawsofPhysics
LawsofPhysics's picture

It would that the U.S. has indeed caught China in terms of coruption and doublespeak.  So there's that I guess.

Sun, 10/13/2013 - 15:02 | 4050625 Arius
Arius's picture

"the purpose is not the toss US aside which is also impossible"

 

Glad you know that ... you chinese fuck!

THis is America!

 

Where are the leaders like Ronald Regan and Maggie Thatcher now that we need them?  they cared about the individuals and their feelings ...

Sun, 10/13/2013 - 15:18 | 4050699 roadhazard
roadhazard's picture

Ronald Reagan?????? heh

Sun, 10/13/2013 - 19:52 | 4051377 economics9698
economics9698's picture

Reagan set the record for deficit spending...until Obama.

Mon, 10/14/2013 - 00:25 | 4051924 TwoShortPlanks
TwoShortPlanks's picture

What is China up to????

Occam's Razor in the Gold Space

http://twoshortplanksunplugged.blogspot.com.au/2013/10/occams-razor-in-gold-space.html

Mon, 10/14/2013 - 02:07 | 4052006 Element
Element's picture

Obama's first budget passed in late April 2009 (seven months after Lehmans). So the humungous deficit blow-out, post-Lehman's, went on the books during the FY of Bush's final budget, so that very first trillion $$$ deficit was Bush's.

;-)

Sun, 10/13/2013 - 17:33 | 4051010 TwoShortPlanks
TwoShortPlanks's picture

That would be Master to you Arius...as in, "glad to know that ... my chinese master"

Let's start taking reality ino the equation from now on, yeah?!

Realities such as the TBTF Banks migrating Gold Reserves and COMEX Gold across into China to set-up their next 50+ years of business.

TSP
http://twoshortplanksunplugged.blogspot.com.au/

Sun, 10/13/2013 - 18:23 | 4051127 Arius
Arius's picture

okay TSP - i do respect your opinion ....

Sun, 10/13/2013 - 22:59 | 4051792 TwoShortPlanks
TwoShortPlanks's picture

No offence intended...and likewise on opinion...I'm just Trollin around.

But-But-But, would have have liten to Andrew Maguire on KWN...fuck-me!!!
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2013/10/13_Andrew_Maguire.html

Like I wrote back in May, they are moving the entire game across to China: http://twoshortplanksunplugged.blogspot.com.au/2013/05/brics-currency-gold-and-debt-based.html

Remember the first weak hands shake out and the CME's position?: http://twoshortplanksunplugged.blogspot.com.au/2013/05/gold-weak-hands-shake-out-terrence.html

I started writing my blog purly to keep a record of the comments I wanted to make and especially the predictions I wanted to convey (based upon what they are doing, not what they are saying). Just imagine if I'm only 25% right on what I write in my posts, imagine the changes ahead?!
http://twoshortplanksunplugged.blogspot.com.au/2013/05/gold-going-goinggone-in-this-post-i.html

Mon, 10/14/2013 - 15:08 | 4053445 Paveway IV
Paveway IV's picture

The Chinese state has far less gold reserves than western counterparts - they are stocking up for all the obvious reasons. Something I see missing in your otherwise well-reasoned blogs, TSP, is timing. 

How long will it take China to obtain all the gold reserves it would need to achieve pairity with the assumed reserves of the west? Their purchases are bound by price inflation they cause with such a huge demand. They can only sip while they would prefer to gulp.

How long will all that sipping take? One more year? A hundred? The Chinese state will be careful to manage the market price of gold (within their ability), and they have a lot of staying power. They don't have problems if this will end up being a 50-year-long undertaking if it needs to take that much time. We don't really know, and don't have access to any real information. I know there's a lot of information out there - I just think most of it is skewed to someone else's self-interest. 

I would be an enthusiastic buyer/seller of gold if I had an inside knowledge on the state of CPC's gold reserve purchases and program, but they are not talking. Will it even matter in a few years if a few billion Chinese decide they don't like the state mafia that runs the place now? 

Gold is never a bad investment over time. Would you (personally) be an enthusiastic buyer if you somehow knew it would take 20 years to be fairly valued? 40 years? I'm not suggesting it will - I have no idea. The only thing I know with certainty is that I won't be here in twenty years (mentally, anyways...) to see how this ends or benefit from it.  

Mon, 10/14/2013 - 18:19 | 4054157 TwoShortPlanks
TwoShortPlanks's picture

Well, I wrote this back in June. Now, there are many reports coming in and entities touting that China has in fact passed 5,000 Tons. My figures/prediction is that China passes 6,300 Tons by the end of this year.
http://twoshortplanksunplugged.blogspot.com.au/2013/06/chinas-goldreserves-how-big-is-elephant.html

Again, what nobody in this blogsphere seems to be able to grasp is that when the average Chinese citizen buys Gold and stores it at the PBoC, that adds to the Gold Reserves at the PBoC. Most in the West fear confiscation or corruption within Banks and won't do that, but not in China, this is the mind of the Han people!

TSP

Sun, 10/13/2013 - 14:16 | 4050495 CrashisOptimistic
CrashisOptimistic's picture

I know the ZH gold nazis will hate this but no one cares about them, or me.

Gold is not relevant to this matter.  Period.  There are more compelling truths in play, namely that China is the number 1 rice producer in the world, and they import rice for domestic consumption.  Number 1 cannot grow enough for its own bellies.

China is one of only 2 countries in the world whose domestic oil production is a state secret.  All numbers used for them are estimates.

China imports oil, allegedly in amounts now greater than US import totals.

Note that none of that involves gold.

 

Sun, 10/13/2013 - 14:46 | 4050600 Devotional
Devotional's picture

"ZH gold nazis" - right, then we have paper bolsheviks that have led us into the abyss.

Sun, 10/13/2013 - 19:48 | 4051366 caconhma
caconhma's picture

For the present geopolitical US$ reserve currency to work without escalating into a hyperinflation the excess/printed US$ must be removed from circulation. It is accomplished by Brazil, China, Japan, Russia, India, etc., buying the US Treasury papers, therefore, reducing the amount of US$ in the circulation.

The problem is that Brazil, China, Japan, Russia, India, etc., and the other countries cannot forever keep their own people starving so the USA and EU have the present high standards of living. So far, the elite of these countries were willing and/or forced to play this game. Just look at the communist China hypocrisy where former chairman Mao family members are US$ multi-billionaires and hundreds of millions Chinese have just a daily ball of rice. The Chinese, Russian, etc., elites are terribly corrupt having major problems controlling their citizens.

It is important to understand that the USA has no desire to pay back their international debt. This is just another form of the old colonial system. However, the pressure is building up in these countries. The US and EU elite arrogance and reckless behavior have made this system very unstable. Internet also has revealed that this system is very unfair to everybody outside of the US and few EU countries and local elite mafia running these countries.

Consequently, the Chinese elite is starting to look for ways to change the present situation.

Now about Gold. As long as China, Russia, etc., will not substantially reduce their US Treasury obligations buying the system will continue to function with gold staying in a doghouse.

 

Mon, 10/14/2013 - 02:13 | 4052009 Element
Element's picture

I'll vote for the resources invested libertarians to win.

Sun, 10/13/2013 - 14:48 | 4050606 Seize Mars
Seize Mars's picture

Um, china is not the world's number 1 rice producer. The USA is.

Sun, 10/13/2013 - 15:00 | 4050642 CrashisOptimistic
CrashisOptimistic's picture

Why would you post this without even the most cursory of checks?

http://worldriceproduction.com/     The US is 13th.

Sun, 10/13/2013 - 15:34 | 4050748 Zer0head
Zer0head's picture

actually if you include Uncle Bens and Rice A Roni, the US is number one

Sun, 10/13/2013 - 15:52 | 4050788 Rubbish
Rubbish's picture

You didn't grow that, somebody else did !

Sun, 10/13/2013 - 19:11 | 4051156 Pegasus Muse
Pegasus Muse's picture

Watched these two parts today. They jive perfectly with the Chinese editorial. Part 3 is The Police State which I shall watch tonight.  Should be interesting ...

===

01 - The Economic Crisis (The Fall of America & the Western World)  (62 min)

 

http://www.youtube.com/watch?v=nB8GmcRV_yg

 


02 - Financial Armageddon (The Fall of America & the Western World  (46 min) 

Veterans toss aside memorial barricades, march on White House

http://www.youtube.com/watch?v=0sV4ppmz0wA

 

Sun, 10/13/2013 - 19:13 | 4051278 algol_dog
algol_dog's picture

I though this article was an interesting read. Think it's getting really late in the game in USA. I found it quite ironic that 2 stories I heard on TV in the last 24 hours were the EBT story this weekend and the "congress to go home for the holiday weekend". Quite telling really ...

 

http://capitalistexploits.at/

Sun, 10/13/2013 - 21:14 | 4051585 Seize Mars
Seize Mars's picture

CrashIsOptimistic

..uh, because I thought I knew what I was talking about? How's that for an answer?

Well it looks like I was wrong. Sorry. Don't drone me bro. The US was at one point, maybe my brain is getting old or something.

Just for giggles I will double-triple check at my job where I have some really good data. But 'til then, sorry.

Sun, 10/13/2013 - 14:47 | 4050610 Peachfuzz
Peachfuzz's picture

Not disagreeing, but to continue your thought (perhaps tangentially). The Chinese have some of the largest stockpiles of any commodities I could name, yet they import more. They are the largest holder of US paper abroad, so seeing the charades that go on in this country, and having long ago reached the conclusion that they will never be repaid; Do you suppose the ultimate goal of importation on such a massive scale would be to turn bullshit paper assets in to real tangibles? I would assume that to be the case.

Why have ghost city after ghost city, city blocks packed with blocks of aluminum, warehouses full of copper, and be developing Africa as far as they can reach were it not to position themselves to move away from worthless fiat? I'd take a ghost city over a pile of paper promises any day, it's not like 1.3 billion people are going to all of a sudden stop breeding.

Sun, 10/13/2013 - 15:06 | 4050663 CrashisOptimistic
CrashisOptimistic's picture

Friend of mine in another venue spoke to this in the context of why Saudi Arabia buys US military equipment, but India diversifies with Russian equipment.

Answer, KSA takes dollars for oil and they want to get rid of them ASAP at a likely discount. 

A time likely will come when KSA decides to have an aircraft carrier, and they'll want it in 2 weeks.  The US buys 1 million bpd from KSA.  KSA can say, no we don't want paper, we want an aircraft carrier.  In two weeks.  Yes, that means one already in your navy.

There is a global incentive to keep the dollar meaningful because so much depends on it, but the move away from it is probably underway, and it won't be to gold.  It will be to barter.

Sun, 10/13/2013 - 16:08 | 4050831 Ghordius
Ghordius's picture

Turkey diversifies with Chinese mil-ware

Sun, 10/13/2013 - 21:26 | 4051604 thisandthat
thisandthat's picture

 

KSA can say, no we don't want paper, we want an aircraft carrier.

They should call Signor Martini (scroll down): http://hawkdog.net/wordpress/archives/3280

Mon, 10/14/2013 - 02:28 | 4052023 Element
Element's picture

Good luck with that, the US built up a massive Strategic Oil Reserve and fleets of aircraft carriers for a reason (plus call on oil sands production after that). Saudi Arabia would be occupied within those two weeks. As Sadam found out, it's hard to withstand or resist a mobile western air and ground force in a desert terrain, or to force them out of your capital. The Saudis themselves would actually be a very expendable nuisance, in that equation, so I don't like their chances of survival. Texas rough-necks would prosper instead ... but in the ME.

Sun, 10/13/2013 - 15:54 | 4050758 Cacete de Ouro
Cacete de Ouro's picture

..

Sun, 10/13/2013 - 14:48 | 4050613 BurningFuld
BurningFuld's picture

Note that none of that involves gold. Yet.

 

Fixed

Sun, 10/13/2013 - 15:30 | 4050732 Race Car Driver
Race Car Driver's picture

> Fixed

Oh, Mr. Ranger isn't gonna like that, Yogi.

Sun, 10/13/2013 - 14:18 | 4050505 BeetleBailey
BeetleBailey's picture

Exactly...this, from a country that OPENLY LIES, and forces everyone to keep two sets of books....

Float ALL your currency China...you bastards....and then some one might take these "threats" seriously....

Until then...sod off

Sun, 10/13/2013 - 14:19 | 4050514 Eeyores Enigma
Eeyores Enigma's picture

All reserve currencies end in massive blood flow.

Or maybe it will be like a big, friendly, all night (read decades long) game of monopoly where everyone will pat the winner on the back and go home.

Yeah right.

Sun, 10/13/2013 - 13:58 | 4050419 Anusocracy
Anusocracy's picture

Of course they're interested in a NWO.

They have a better shot at being at the top of it than the US.

Sun, 10/13/2013 - 14:09 | 4050465 Dareconomics
Dareconomics's picture

A new reserve currency would ultimately help the US economy.  Rather than hoarding dollars, foreigners will buy more US goods, services and investments.  

http://dareconomics.wordpress.com/2013/10/12/around-the-globe-weekend-edition-october-12-13/

Sun, 10/13/2013 - 14:11 | 4050482 LawsofPhysics
LawsofPhysics's picture

Bullshit.  I think the rest of the world has had enough of our financial "products" of mass destruction.  Aside from that, there isn't anything the U.S. makes that other countries can't make themselves.  It does appear however that the U.S. has caught up with everyone else when it comes to corruption.

Sun, 10/13/2013 - 15:35 | 4050745 holdbuysell
holdbuysell's picture

Spot on...moreso, the US has lost its 'muscle memory' for highly skilled manufacturing.  To wit, a few years ago, Andy Grove, founder of Intel, effectively said exactly that when referring to the difficulty of bringing semi manufacturing back to the US: the skills and capability are just not available anymore, making such a transition extremely difficult.

Sun, 10/13/2013 - 14:08 | 4050468 LawsofPhysics
LawsofPhysics's picture

Indeed, time to put all the EBT'ers on a boat and send them right over...

Sun, 10/13/2013 - 14:12 | 4050478 NoDebt
NoDebt's picture

Empty the prisons first.  Then the EBT'ers.  You gotta follow the cookbook if you want this done right.

Sun, 10/13/2013 - 14:15 | 4050489 LawsofPhysics
LawsofPhysics's picture

Who do you think will be driving the boats?  Yes, the "elite" will get the population back under a billion one way or another.

Mon, 10/14/2013 - 07:36 | 4052192 PhilofOz
PhilofOz's picture

I can never see how that lines up with their obsession for infinite growth and profits on a finite planet. It's one or the other, but can't be both.

Sun, 10/13/2013 - 16:19 | 4050862 Ghordius
Ghordius's picture

Those prisons should not even exist in the fhe first place. And they are a source of this fear which leads to those cinic remarks

They increase the fears of the poor, the exposed and the rich. They feed an imagery of trapped people, dreams of zombies. They are a timebomb, a cancer, another idiocy only possible by endless streams of fiat subsidy which corrodes the moral fibre of the lower judiciary and enforcement personel. A perfect example that MOAR isn't the answer of everything

And they decrease the moral standing the Chinese mention

Sun, 10/13/2013 - 14:15 | 4050491 ThirdWorldDude
ThirdWorldDude's picture

I bet you in 500 SDRs that the Chinese will propose a solution that will include a basket of fiat toilet paper.

Saruman is having a mightily good belly-laugh right now...

Mon, 10/14/2013 - 02:46 | 4052037 Element
Element's picture

Chinese are nationalistic, jingoistic and highly defensive of their sovereignty, plus entirely anti-foreign political and legal control of domestic issues. It's why they don't give a pluck about the global-warming agenda - same for Russia. What makes anyone think they give a toss about helping construct a western-judeo-banksterism paradigm?

I don't see what's in it for them.

Frankly, I think this imperial colonial-era 'global superpower' paradigm has almost completely played itself out. We have multipolar trading blocks who clearly despise hegemonic behavior.

Maybe the G-20 is an NWO, but it's just a bunch of big economies having a chat about how to best accommodate their bankster master's wishes.

 

... oh ... wait a minute ...

Sun, 10/13/2013 - 16:55 | 4050934 americanspirit
americanspirit's picture

So when Ben is no longer Fed chairman does that mean he no longer has federal bodyguards? Just strollin' down the streets of Princeton all by his lonesome?

Sun, 10/13/2013 - 17:15 | 4050954 Omen IV
Omen IV's picture

this message from the chinese is the same as Putin less than 60 days ago  - ex the currency remarks - i think the references to lies are mirror Putin language -  as well as sovern nations independence and domestic interference aimed directly at getting stopped out by the russians in Syria, grounding Bolivian presidents plane and stealing the intellectual property of Petrobras owned by the people of Brazil as cumulative US aggression  - that the chinese and russians are not going to take anymore nor are many of the BRICS and other small nations

the MIC/DOD/CIA/NSA are being called on to be dismantled in the new world order as well as the charter of US foreign policy  for the last 65 years of world wide interference and mayhem based upon "for profit" for the MIC, Oil Interests and the Banks.

Obama let the banks run scott free on the largest fraud in history that caused the destruction of many countries with their world wide fraudulent practices and therefore defacto part of US foreign policy on the use of the reserve currency status -they went too far and no one wants to be subjugated to the US banks  - via a reserve currency control  - stealing their own countires patrimony in the future with some new scheme.

we are on the verge of major change - the american people have no control nor democractic systems and the world knows it and says it  - the fourth turning is on!

 

Sun, 10/13/2013 - 22:34 | 4051773 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

The people at the FED are many things but dumb they are not. It takes brains to steal frtom peolpe and have them thank you for it.

I hate people who steal.

Tue, 01/21/2014 - 07:48 | 4351048 shawnmike
shawnmike's picture

Furthermore, the authority of the United Nations in handling global hotspot issues has to be recognized. That leather jackets - http://www.sydneyleather.com.au/ means no one has the right to wage any form of military action against others without a UN mandate.

Sun, 10/13/2013 - 13:44 | 4050364 Pure Evil
Pure Evil's picture

How do you have a gold backed currency unless you're willing to swap your worthless fiat for actual gold?

I doubt even China is willing to do that.

Sun, 10/13/2013 - 14:08 | 4050470 bank guy in Brussels
bank guy in Brussels's picture

Jim Willie probably has it right -

The new gold standard means international trade settlement by gold, but fiat currencies will still be used internally within countries

And the Chinese government, very notably, is urging their own citizens to buy gold, in preference to pumping up local real estate or stocks

So there will be no more international container shipping just for US paper fiat dollars ...

The USA a much poorer country, no longer able to fund its half trillion trade deficit, buying goods and energy for paper dollars and debt - that trade deficit is unique to the USA

In Europe we are in balance, we export as much as we import ... and Europe just signed a deal with China to swap directly for the Chinese yuan and avoid the dollar

Sun, 10/13/2013 - 14:22 | 4050527 Anusocracy
Anusocracy's picture

As long as the US has to stop sending its army ants all over the world.

Sun, 10/13/2013 - 14:57 | 4050635 Arius
Arius's picture

but ... how would anyone know how much the other party holds ... everyone will claim they have what they dont right?

Sun, 10/13/2013 - 15:03 | 4050654 hairball48
hairball48's picture

I agree that Jim Willie has it correct rergarding international trade settlement in gold and yet keep fiat currencies.

And since we have exported most of our manufacturing overseas, what "stuff" will we make to trade for all the crap we currently import from China and the rest of the world??????????

The sheeple have no clue about the huge reduction coming in their "standard of living".

Sun, 10/13/2013 - 15:09 | 4050672 Urban Redneck
Urban Redneck's picture

International trade will NOT be settled in gold (except for the for exceptional cases where it is already settled in gold).

Americans will simply be forced to pay [a banker] for another country's (or NWOs) banker-controlled fiat filth when they want to import something, much like the resident of a banana republic today must generally purchase US dollars when they want to import goods.

And before some former aspirant to the top-currency-dog post determines a price in goods and services that they will demand in exchange for their (non-US) worthless fiat from Americans, they are going to want to return some of that inflation & currency devaluation that the US has been so successful in exporting.

Mon, 10/14/2013 - 03:09 | 4052042 Element
Element's picture

Yup.

The key to a national fiat exchange regime is having the resources to back it, and I don't mean mere gold.

In the end both fiat and gold are complete bullshit, as real trade is the trade of real stuff. That's what a real economy is all about. All these wankers who make 'paper' and digit 'trades' are just the parasitic pricks, who no one even needs or wants in a real deal.

All a producer and trader wants to know is whether you've got something they want, or can use, or can trade for other stuff later, and whether or not we can strike-up a mutually agreeable diplomatic deal (i.e. preferably without kinetic weapons involvement) to exchange what we both have, with each other.

Anyone who's lost sight of that, or more likely, didn't realize even that, is completely kidding themselves and/or a complete dumbshit who will lose everything they think they have.

If there's going to be a spike in inflation but you own the stuff people need (i.e. not want, but must have); firstly, you're going to make a feckin killing bitchez!; secondly, your potential trade partners better have something you want to trade for, as gold may not be it; and thirdly, you better be able to hold what you have.

Sun, 10/13/2013 - 16:04 | 4050823 topshelfstuff
topshelfstuff's picture

it wasn't too long ago when that was the role of gold [ annual trade settlement ], that is what ended in 1971 when Nixon closed the gold window.

and don't think that wasn't planned years in advance. this explains the removal of US Silver coinage 6 years prior in 1965

Sun, 10/13/2013 - 19:36 | 4051338 YuShun
YuShun's picture

I doubt whether those who got us into the war in Viet-Nam
expected to lose that war after a long and expensive fight.
If America had won after a less expensive war, then LBJ would
probably have still been president in 1971, and the closing of
the gold window would probably have occurred years later.  

Sun, 10/13/2013 - 16:37 | 4050893 Ghordius
Ghordius's picture

"In Europe we are in balance, we export as much as we import ... and Europe just signed a deal with China to swap directly for the Chinese yuan and avoid the dollar"

all... precautions. it's about lifelines in the small but possible case of a USD hyper

which are way more simple to do with a shared currency instead of 17

bgib, still thinking that the EUR is wrong? watch how Britain is sweating. And how they are pumping up their FIRE

Just imagine how europe would stand in a fragmented devaluation war

The current stability which so many find unbearable is a bargaining chip. SDRs or Gold. Two scenarios. Uncle Sam's chain of decisions will be critical, and eventually set the course

Sun, 10/13/2013 - 14:01 | 4050440 Ignatius
Ignatius's picture

Clearly a 'gold negative' comment.

Sun, 10/13/2013 - 14:54 | 4050621 Nothing but the...
Nothing but the truth.'s picture

No country can print as much fiat paper  , be so heavily indebted and expect to hold onto it's world reserve currency  status. The days of the US dollars preeminence are soon to be over. Hopefully that will bring the Fed's slamdunking of PM's to an end and they will find their true , non- manipulted values.

Sun, 10/13/2013 - 19:42 | 4051359 Bernankenstein
Bernankenstein's picture

Correction: barack swan

Sun, 10/13/2013 - 13:32 | 4050324 Kirk2NCC1701
Kirk2NCC1701's picture

About time!

Sun, 10/13/2013 - 13:34 | 4050334 qussl3
qussl3's picture

They arent going to do anything till they have a credible military counter.

No nuclear subs yet no?

Sun, 10/13/2013 - 14:27 | 4050534 Anusocracy
Anusocracy's picture

I'm not so sure.

I think the rest of the world is getting sick and tired of the 800 lb. gorilla with the brain of a gnat.

Sun, 10/13/2013 - 14:28 | 4050541 Winston Churchill
Winston Churchill's picture

Have you checked out the latest convential subs ?

Why go to the expense of nuke power when you can get eight better ones for the

same price >

Mon, 10/14/2013 - 05:13 | 4052109 Element
Element's picture

That's not the reason though.

The Chinese are invested in smaller SSKs because the Chinese and South East Asian shallow littoral margins are far wider and larger in area, than anywhere else on earth. Plus the waters are extremely noisy, due to both human activity, seismicity, volcanism, topography (waves breaking on literally thousands of island shores and reefs) plus intense marine biological activity (tropical fish and benthic critters make a lots of noise).

Thus this is the perfect or at least ideal operating environment for smaller conventional SSKs. But it's the worst of operating environments for a large deep-draft SSN. PLAN blue water nuke boat in a brown-water littoral context? Forget it, you'd lose them. The PLAN currently have a more or less optimal sub force for their operating environments, so it'd be a mistake for anyone to misinterpret the force-structure and capacity, or to misunderstand why it is. That is not a Chinese weakness, far from it, the PLAN have a tremendously well-equipped submarine force, designed to prevent a tight littoral blockade being imposed, and I have no doubt they could damage and sink Western warships in littoral engagements.

I don't mean via torpedoes, which are a suicide weapon if used against western naval forces today. Every one of Australia's torpedo-equipped combat ships and subs are as of the past few months operationally equipped with MU90 torpedoes that have an anti-torpedo mode, i.e. they will hunt and kill an incoming torpedo. The frigate helicopters and ASW patrol aircraft also carry the MU90, which is designed to kill the largest of double hull nuke subs, but these also have a mobile self-deploying 'mine'-mode, as well. i.e. you can seed a littoral with them, so they'll passively listen for an auto-engage assigned subs (and only the assigned target subs). Nasty little torpedo. As I understand it US subs also have an anti-torpedo capability.

So the Chinese subs must use standoff cruise missiles to engage, plus pre-deployed mines, and these would damage and sink western warships, resulting in area-denial. The PLAN subs would be hunted by shoals of networked drone UUVs though (USN and RAN have been working on these). Beyond a week I don't like an SSK's chances.

Frankly, SSKs are really much too slow to be that effective. The transit distances are gigantic, and the Indian and Pacific oceans make the north Atlantic basin look like an oversize puddle.

Sun, 10/13/2013 - 16:34 | 4050887 Yenbot
Yenbot's picture

Never underestimate extremely old countries: PLA SUB FLEET...

Mon, 10/14/2013 - 03:17 | 4052047 Element
Element's picture

If you're asking does China have nuclear subs, yes, they do, 5 SSNs and two SSBNs. They are on their second generation of both types, and are planning their 3rd generation nuke boat fleet now.

Sun, 10/13/2013 - 13:35 | 4050337 infiniti
infiniti's picture

Comical. Chinese inflate by 20% a year just to artificially strengthen the dollar while simultaneously bashing it? Fuck China.

Sun, 10/13/2013 - 13:51 | 4050390 Pure Evil
Pure Evil's picture

The Chinese were one of the first to use fiat before any of the others became world empires. The chart should be updated to indicate how long that lasted.

Sun, 10/13/2013 - 16:54 | 4050930 Debugas
Debugas's picture

there is one difference - even though chinese people keep getting paid in fiat but they keep their savings in gold

Sun, 10/13/2013 - 13:37 | 4050339 JustObserving
JustObserving's picture

A gold-backed reserve currency instead of one backed by sham promises of corrupt banksters, one would hope.

Sun, 10/13/2013 - 14:39 | 4050551 Anasteus
Anasteus's picture

If nothing else, then this official statement is perhaps the most important (unintended) output from the debt ceiling farce. The statement is surprisingly sober, balanced and persuasive. It's funny how China has tacitly redefined the nwo concept (between the lines) and transformed it into something completely different from the hidden illuminati hegemony agenda.

The connection between the new world reserve currency ambition and the gold rush in China is now apparent and finally disclosed. I'm just curious how long the gold price suppression farce can continue further under such newly disclosed circumstances. From now on each additional day with low price should be treated as a miraculous godsend...

Sun, 10/13/2013 - 13:39 | 4050343 Marco
Marco's picture

China is irrelevant, plenty of poor people in the world to shit out luxury products ... Saudi Arabia is what supports the dollar.

Sun, 10/13/2013 - 14:12 | 4050477 Kirk2NCC1701
Kirk2NCC1701's picture

1. The House of Sa'ud hedges its wealth 3 ways:  Oil, USD, Gold.  Only USDs are fungible and outside their direct control.

2.  Some sources question the agenda/allegiance of the House of Sa'ud, citing their 'Jewish' roots and hypocritical lifestyle. 

Eg. http://mostaqueali.blogspot.com/2011/08/house-of-saud-is-jewish.html

Sun, 10/13/2013 - 13:39 | 4050344 GrinandBearit
GrinandBearit's picture

The day this comes to fruition, the US dollar would become devalued very quickly.

Sun, 10/13/2013 - 13:39 | 4050347 q99x2
q99x2's picture

I've got a new reserve currency. You have to come to my country to use it. No my country. No mine.Mine Mine mine mine me.

Sun, 10/13/2013 - 13:37 | 4050348 JoBob
JoBob's picture

Finally! Light at the end of the tunnel and it's not a train!

Time to take the bitter pill!

China's gonna whip it and whip it good.

 

Now, back to my preps...

Sun, 10/13/2013 - 14:51 | 4050617 ebworthen
ebworthen's picture

"When a problem comes along, you must whip it!
Before the cream sits out too long, you must whip it!"

http://www.youtube.com/watch?v=Xbt30UnzRWw

(link opens in new window/tab)

Sun, 10/13/2013 - 13:39 | 4050355 Sufiy
Sufiy's picture

Here we go with one more reason to smash Gold and now it is clear why China buys all the gold now thety can get:

 


Andrew Maguire: Gold Smashdown, FED Defends The Dollar And How Goldman Sachs Operates.


 Andrew Maguire presents to us the chronicles of ongoing war behind the curtain with FED defending the US Dollar at the crucial level 0.80 and how the FED's #1 Gold Prime Dealer Goldman Sachs operates in the Gold market. Now we have more information on why Goldman Sachs has issued the Sell Call on Gold last Wednesday.     All these revelations will never lead to the higher Gold prices without Buyers and one can argue that this manipulation can go forever. According to the Andrew Maguire the key crucial difference now is that Central Banks are buying and, particularly, China is taking all available Gold for physical delivery now. http://sufiy.blogspot.co.uk/2013/10/andrew-maguire-gold-smashdown-fed.html#

Sun, 10/13/2013 - 14:03 | 4050426 Kirk2NCC1701
Kirk2NCC1701's picture

Now you're doing just blatant thread-jacking, given that you posted this a while ago on another ZH post

This is not the first time that writers on other blog sites have "borrowed" from ZH w/o due credit.  Nor will it be the last time.  It's a quick & easy way to generate blogs, and to improve the site stats. 

"It's a Blog copy Blog world", it seems.

You identical post from earlier today = Sun, 10/13/2013 - 11:44 | 4049979

For which I called you out: Sun, 10/13/2013 - 13:30 | 4050276
Sun, 10/13/2013 - 20:10 | 4051421 Angus McHugepenis
Angus McHugepenis's picture

Kirk: Let the blog spammers have their 15 minutes of fame on ZH time. We've seen many try the same tactics only to be punted the fuck out of here. My favorite is seeing a mere one sentence comment from somebody that makes no sense at all to the topic at hand and then they post their own blog link below the comment. You just know that's a spammer looking to build links and hits to their pathetic sites. And it's really old-school internet marketing stuff.

Cheers... Scotty out. Going to deal with my warp drive right now. She knows I dress to the right. If you don't know what that means, ask your tailor.

Sun, 10/13/2013 - 13:42 | 4050358 involuntarilybirthed
involuntarilybirthed's picture

China needs to shed some dollar stuff before they destabilize it.

Sun, 10/13/2013 - 13:46 | 4050380 Racer
Racer's picture

They can buy even more cheap gold with it

Sun, 10/13/2013 - 13:42 | 4050365 SpanishGoop
SpanishGoop's picture

If it goes it goes fast.

Please fasten your seatbelts sign is on.

 

Sun, 10/13/2013 - 13:44 | 4050366 Fix It Again Timmy
Fix It Again Timmy's picture

Obviously, China is not buying into American "Exceptionalism"...

Sun, 10/13/2013 - 13:49 | 4050383 Tinky
Tinky's picture

Not true! I recently spoke with a Chinese official who remarked that many of America's current policies are "exceptionally stupid".

Sun, 10/13/2013 - 13:42 | 4050367 Tinky
Tinky's picture

Hmmm...does anyone else sense that it is getting warm here in the kitchen?

Sun, 10/13/2013 - 13:48 | 4050375 Racer
Racer's picture

Well done China, saying how it really is!!!!

Sun, 10/13/2013 - 13:53 | 4050382 akak
akak's picture

 

Fiscal impasse in the U.S. is a good time for “befuddled world” to start considering building a “de-Americanized world

Oh noes! 

Whatever would AnAnonymous have to rant about should the parangongs of monolizing the blobbing-up means, and farming the weak and extorting the poor, ever be dethroned as the king class according to their eternal nature since 4th,July, 1776?

De-americanismizing: it's the mattering thing, the nib of the crustiest bit of it.

Sun, 10/13/2013 - 17:43 | 4051035 TheFourthStooge-ing
TheFourthStooge-ing's picture

Alas, alas, and yet again, must bear with it, alas, de-'americanismification' is the primary pillar of the Chinese citizenism plan for global bambuzzlement.

No surprisements here, as Chinese citizenism citizens struggle at thinking out of group patterns.

When you are running a racket of distorting the fabled past and farming the myth, best to stay on the distortion racket path with fabrications of diligence.

Sun, 10/13/2013 - 18:39 | 4051176 Apostate2
Apostate2's picture

I knew you guys would show up.

Having a laugh (it's the mattering thing)

 

 

Sun, 10/13/2013 - 19:58 | 4051394 Angus McHugepenis
Angus McHugepenis's picture

I was always hoping the AnAnonymous was actually Pamela Anderson. The punctuation and spelling were about right.

My dreams are laid waste now...

It's no longer a mattering thing for me... (sniff - teary eyes)

Sun, 10/13/2013 - 20:06 | 4051412 akak
akak's picture

 

I was always hoping the AnAnonymous was actually Pamela Anderson.

Well, she is a parangong in blobbing-up the bresticular means ...

US 'american' titizenism hard at work.

Sun, 10/13/2013 - 20:37 | 4051494 Angus McHugepenis
Angus McHugepenis's picture

 

US 'american' titizenism hard at work.

akak: Hate to tell you this... she's from Ladysmith, Titish Columbia (Canada - Vanhooter Island area). She was discovered in Hongcouver at a football game (see her IMDB profile).

As you can see, it's a mattering mammory thing as to who really  owns the rights to her cross boarder shopping.

Sun, 10/13/2013 - 21:48 | 4051657 TheFourthStooge-ing
TheFourthStooge-ing's picture

US 'american' titizenism goal of symetry corresponds to official citizen motto of US 'american' state of Canadia:

Tits, eh?

Sun, 10/13/2013 - 13:49 | 4050384 swedish etrade baby
swedish etrade baby's picture

Now we know Ananonymous real identity. His name is Liu Chang!

Sun, 10/13/2013 - 17:07 | 4050959 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Now we know Ananonymous real identity. His name is Liu Chang!

Indeed explainings much the dangdang. Last AnAnonymous commentings from now two weeks ago. Must of spending two weeks last with four days consumptionalized by writing article Xinhuautistically, ten days consumptionalized by proof readers pouring onto article coherence of the crustiest bits diligently.

Sun, 10/13/2013 - 13:50 | 4050387 The Reich
The Reich's picture

Deutschmark!

Sun, 10/13/2013 - 13:57 | 4050422 WmMcK
WmMcK's picture

Swiss Franc (unpegged, of course)

Sun, 10/13/2013 - 13:50 | 4050394 Quinvarius
Quinvarius's picture

There are many Romes.  Historical precedence of what a sole superpower among savages used to be able to do does not apply here.  The US will live or die by its works and integrity.

Sun, 10/13/2013 - 18:01 | 4051070 shovelhead
shovelhead's picture

Uh-oh.

That doesn't sound like it bodes well for the Highwaymen.

Sun, 10/13/2013 - 13:52 | 4050397 I am Jobe
I am Jobe's picture

Gold and Silver Bitchezz.

In Amerika the Currency masses use is ICRAP 

Sun, 10/13/2013 - 13:53 | 4050398 SpanishGoop
SpanishGoop's picture

How do you name that stuff i have to buy now "renminbi".

No i won't, doesn't sound nice.


Sun, 10/13/2013 - 13:52 | 4050400 q99x2
q99x2's picture

I've always wondered if Goldman Sachs and JP Morgan have taken over China, Brazil, India and Russia as they have the rest of the world?

Sun, 10/13/2013 - 14:33 | 4050554 Marco
Marco's picture

China's super-rich are trying to take over China, to what extent they are ideologically aligned with the old money dynasties is an open question.

Sun, 10/13/2013 - 16:08 | 4050832 screw face
screw face's picture

((((((((((BRIIICS))))))))))

 

bank on it

Sun, 10/13/2013 - 13:53 | 4050401 edifice
edifice's picture

Time to put down the remote and pick up Rosetta Stone Mandarin.

Sun, 10/13/2013 - 13:57 | 4050413 therevolutionwas
therevolutionwas's picture

Russia's Putin body slamming D.C.'s war mongers, China challenging the king of the fiat money pushers....All we need now is for the god damn american people to wake up and rise up.  As Andrew Napalitano asked, 'where is the outrage?'

Sun, 10/13/2013 - 14:58 | 4050632 Peachfuzz
Peachfuzz's picture

down the shitter with the ssri's, gmo foods, fluoride and chlorine in the water, and the rest of the b.s. the free shit army pisses away everyday on someone elses dime.

Sun, 10/13/2013 - 14:00 | 4050428 Son of Captain Nemo
Son of Captain Nemo's picture

Everything going according to plan?

Sun, 10/13/2013 - 16:52 | 4050923 Ghordius
Ghordius's picture

plans. plural. only strange theorists think in terms of one plan

big knots of power always have meny plans, sub-plans, conflicting agenda points and contingency preparations

example: Uncle Sam could just tie the Dollar to gold again. Even if unlikely, you gotta be hedged against that. or at least prepared

alternatively, Uncle Wei could get the SDR thing through. the same

at the brink of big changes, it's all scenarios

Tue, 10/15/2013 - 02:39 | 4055129 Element
Element's picture

PLAN = Peoples Liberation Army Navy

It's already plural.

Sun, 10/13/2013 - 14:00 | 4050429 newworldorder
newworldorder's picture

While many would welcome China's call for a new reserve currency, there are at minimum 2 important reasons why the world will follow the US in the forceable future.

1. Trust in Chinese Legal and Governmental institutions vs. those same institutions in the US.

2. The US military as the guarantor of the status quo vs. the Chinese military. This is not a question of just capabilities, but which military is trusted more.

I am not defending the current world wide finacial ponzi. Just pointing out that there are other considerations than our runaway spending and $$ debasement.

 

 

Sun, 10/13/2013 - 14:08 | 4050471 therevolutionwas
therevolutionwas's picture

 

China might end up being just a part of a new reserve currency, through the IMF.

Sun, 10/13/2013 - 14:10 | 4050480 Tinky
Tinky's picture

Trust in America's Legal and Governmental institutions? 

The depth of such trust around the world, once measured in miles, can now be measured in inches.

Cleanest dirty shirt, indeed.

Sun, 10/13/2013 - 16:16 | 4050853 29.5 hours
29.5 hours's picture

 

I agree with "newworldorder".  Trust is a good word to describe the situation. Despite the occasional rant against U.S. policy stupidities, the various ruling classes in most countries of the world trust the U.S. to defend them against their respective greatest enemy--their own citizens.

 

 

Sun, 10/13/2013 - 14:34 | 4050492 Winston Churchill
Winston Churchill's picture

No. 1 no  longer exists.It died with the rule of law in the US.

2)The US military no longer wants to fight.They nixed Syria.

Go read some service ,and veterans sites.

The American sheeple may be asleep,not so the services.

Which only leaves the nuke option, and the only way to win..........

is not to play.

Sun, 10/13/2013 - 14:39 | 4050576 Kirk2NCC1701
Kirk2NCC1701's picture

"there are at minimum 2 important reasons why the world will follow the US in the forceable future."

LOL.  That's good, regardless if it's an accidental misspelling or deliberate change to "foreseeable" future.  :-)

Sun, 10/13/2013 - 16:21 | 4050865 29.5 hours
29.5 hours's picture

Yes, I caught that too. I figured both versions had their own punch!

Sun, 10/13/2013 - 21:25 | 4051605 Singelguy
Singelguy's picture

After this debacle, any new world reserve currency would have to be structured such that it cannot be manipulated by any government or central bank. Every major currency in the world is being debased at the present time so none of them can be trusted. I suspect that the new reserve currency will be set up along the lines of bitcoin, or another digitally based currency.

Sun, 10/13/2013 - 14:06 | 4050449 dizzyfingers
dizzyfingers's picture

Oh-oh! There goes hegemony. (hedge-money)

Sun, 10/13/2013 - 14:07 | 4050457 BeansBulletsBandaids
BeansBulletsBandaids's picture

Wasn't the NWO a group of wrastlers from the 90's?

Sun, 10/13/2013 - 18:05 | 4051078 shovelhead
shovelhead's picture

Rap group drug dealers...

Negros With Oregano.

Sun, 10/13/2013 - 14:10 | 4050481 q99x2
q99x2's picture

New World Order based on democratic governance by Open Source Software that is deployed at ever increasing levels of granularity until finally resting in the morality of the individual.

Long live the revolution and the human species.

Fuck China too.

Sun, 10/13/2013 - 14:14 | 4050487 J Pancreas
J Pancreas's picture

The global circle-jerk will continue for awhile in spite of articles like this. The bottom line, unfortunately, is that the war machine is what keeps the dollar the world reserve currency. Think a Saudi is going to politely ask all those boots and CIA field offices to leave? An embassy complex as large as Vatican city sits in Baghdad, is that temporary? 

 

One has to boil the outcome down to this: American influence is vast and capable. Are the Chinese/BRICS' heads of state & agents as cunning, ruthless, and evil as Americans have been and continue to be or not? Are their best better than Washington's? For me as an American, I hope they are because the corruption and blood stains everything 'good' that our country and culture currently enjoys.

Sun, 10/13/2013 - 14:40 | 4050490 Disenchanted
Disenchanted's picture

re: "New World Order"

When and where have I heard this before? Oh yeah, September 11, 1990:

 

We stand today at a unique and extraordinary moment. The crisis in the Persian Gulf, as grave as it is, also offers a rare opportunity to move toward an historic period of cooperation. Out of these troubled times, our fifth objective -- a new world order -- can emerge: a new era -- freer from the threat of terror, stronger in the pursuit of justice, and more secure in the quest for peace. An era in which the nations of the world, East and West, North and South, can prosper and live in harmony. A hundred generations have searched for this elusive path to peace, while a thousand wars raged across the span of human endeavor. Today that new world is struggling to be born, a world quite different from the one we've known. A world where the rule of law supplants the rule of the jungle. A world in which nations recognize the shared responsibility for freedom and justice. ~ George H. W. Bush

 

OZ: Liber 77 

 

Liber LXXVII

"the law of the strong:
this is our law
and the joy
of the world."

Sun, 10/13/2013 - 20:02 | 4051409 Alexandre Stavisky
Alexandre Stavisky's picture

Small showers last long, but sudden storms are short;
He tires betimes that spurs too fast betimes;
With eager feeding food doth choke the feeder:
Light vanity, insatiate throat-bound cormorant,
Consuming means, soon preys upon itself.
This imperial throne of knaves, this tempestuous wilderness,
This earth of promise, this seat of Mars,
This once other Eden, demi-paradise—newly demi-hades,
This oceaned fortress built by Nature for herself
Against infection and the hand of outside war,
This stony inbred breed of mild men, this little world,
This semi-precious stone set in the several  sea,
Which serves it in the office of a shield ,
Or as a moat defensive to a divided house,
Against the envy of much happier lands,
This blighted plot, this earth, this realm, this Columbian,
This nurse, this teeming womb of purchasable men,
Fear'd for their intrigue and famous for their filching,
Infamous for their deeds as far from home,
For idolatry’s service and mocked chivalry,
As is the sepulchre in bent  Jewry,
Of the world's ransom, blessed Mary's Son,
This land of such despairing souls, this once dear land,
Dear once for her reputation through the world,
Is now leased out, I die pronouncing it,
Like to a tenement or foyer given over to swineherd:
Amerigo, bound in with the ambivalent  sea
Whose rocky shore beats back wounded claimants’  siege
Of watered down promise, these now bound in with shame,
With inky blots and rotten parchment bonds:
Which New World, that was wont to conquer others,
Hath made a shameful conquest of itself.
Ah, would the scandal vanish with its integrity,
How happy then were all ensuing death!

Sun, 10/13/2013 - 14:23 | 4050526 therevolutionwas
therevolutionwas's picture

Thanks

Sun, 10/13/2013 - 14:15 | 4050499 TaperProof
TaperProof's picture

When China starts talking about us like this, its obvious we've strayed far from the path that made us great. At least it should be... to people who aren't idiots.

Sun, 10/13/2013 - 16:29 | 4050880 Karl von Bahnhof
Karl von Bahnhof's picture

How they dare! Barry, quick! Show them who's the Boss!

Sun, 10/13/2013 - 14:16 | 4050504 WallowaMountainMan
WallowaMountainMan's picture

""that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.""

 

yeah, let's all jump in behind a communist country who's overthrow into a democratic institution is inevitable and certain to cause greater domestic turmoil than the umpteenth shutting down of the u.s. government. or if its overthow is not inevitable, let's all back communism as the great savior of the world. 'cause they have gold. rofl.

and of course, with the bric's being down to r and c, with india selling gold to get dollars to pay current accounts, and, well, for brazil:

http://www.zerohedge.com/news/2013-10-09/brazils-second-largest-oil-comp... ,

http://www.zerohedge.com/news/2013-10-09/how-brazils-middle-class-dream-... ,

it seems the world is just loaded with alternative reserve currency options.

besides, algos are ready trade every denomination of currencies, thereby already possessing the power to determine reserve currency status by themselves. faster than you can say 'china'.

Sun, 10/13/2013 - 14:23 | 4050525 Mototard at Large
Mototard at Large's picture

Comminist China?  don't think so.

Oligarchy - yes

Dictatorship - yes

Oppressive - yes

But there are more communists at City University of New York than there are on the politburo in China.

Sun, 10/13/2013 - 14:19 | 4050510 NoWayJose
NoWayJose's picture

The biggest problem of creating a new reserve currency is 'what will back it'? Gold? It can't be the full faith and credit of China and Russia (communist) or Saudi/Qatar (terrorist). Any currency you can convert to gold would appreciate so much even while it was being converted as fast as possible.

Sun, 10/13/2013 - 14:24 | 4050523 dizzyfingers
Sun, 10/13/2013 - 15:56 | 4050558 therevolutionwas
therevolutionwas's picture

Yah, a little off topic, but it still makes you wanna go AAAAAAARRRRRRGGGGGGHHHHHHHHHHHH!!!!!!!!!!!!!  the 'arrgghh!' was for the topic of the article, not the fact that it might have been off topic.  It's all on topic really.

Sun, 10/13/2013 - 14:43 | 4050589 ebworthen
ebworthen's picture

Opening salvo in the currency wars.

First, a one-person editorial to politely introduce what is planned by the Central Committee.

When they are going to do it in practice is anyone's guess but likely at a time of crisis on Wall Street.

Sun, 10/13/2013 - 15:10 | 4050680 Winston Churchill
Winston Churchill's picture

That was a broadside,not a salvo.

Obviously something is ready to be rolled out.I thought there would be a delay when the

depth of NSA penetration of coms systems became publicaly known.The BRICS

govt.s prolly knew anyway, and already have a workaround for trade settlement.

The fact this has been floated means there is already a deal on the table with the

Saudis, and the GCC producers.Would fit with the rumor I heard about the Saudis wanting their

gold back fron the NYFed.

Lets see if Carrots Kerry takes a sudden trip there this week for confirmation..

Sun, 10/13/2013 - 14:42 | 4050595 ItsDanger
ItsDanger's picture

This might be the pivotal event (perhaps through a series) which will drop the USD once and for all.  Equities will get hammered.  There have been many warnings across the bow already.  I still think the first move will be the pricing of various commodities (Oil) in non-USD currencies traded on open markets.

Sun, 10/13/2013 - 14:43 | 4050597 lolmao500
lolmao500's picture

Yeah like the Chinese house of cards is more stable! Please. All are weak. Fuck a reserve currency. What about a world WITHOUT IT??

Sun, 10/13/2013 - 14:53 | 4050623 AustrianJim
AustrianJim's picture

Great chart! I tweeted it to my two followers.

Sun, 10/13/2013 - 15:03 | 4050647 Kirk2NCC1701
Kirk2NCC1701's picture

I'm sensing the stage being set for the SDR roll-out.  For which China wants is seat the SDR table, i.e. much bigger shares than before.

Especially when compared to the other nigh bankrupt Table Members (GBP, Yen, Euro, USD).  I'm also sensing a gold-backed SDR being lobbied by the Chinese and Russians.

Sun, 10/13/2013 - 15:14 | 4050690 roadhazard
roadhazard's picture

perfect timing.

Sun, 10/13/2013 - 15:14 | 4050691 wobbleybob
wobbleybob's picture

Gee this coming from the Chinese is a Joke...The greedy pigs in Bejing want the following

http://geocurrents.info/news-map/diplomacy-news/complex-territorial-disputes-in-the-south-china-sea

 

I think China ruling the world would be a nightmare...no more bears, Rhino's...all killed for Chinese erection medicines..

 

Welocme the 80 hour work week...

 

 

 

Sun, 10/13/2013 - 15:26 | 4050713 Tinky
Tinky's picture

"Chinese erection medicines.."

I presume that translated, that refers to election medicines.

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