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Russia Returns Favor, Sees Chinese Yuan As World Reserve Currency

Tyler Durden's picture




 

Following China's unwillingness to vote against Russia at the UN and yesterday's news that China will sue Ukraine for $3bn loan repayment, it seems Russia is returning the favor. Speaking at the Chinese Economic Development Forum, ITAR-TASS reports, the Chief Economist of Russia's largest bank stated that "China's Yuan may become the third reserve currency in the in the future."

 

Managing Director and Chief Economist of investment company Sberbank Yevgeny Gavrilenkov said at the 15th governmental Chinese economic development forum in the Chinese capital on Sunday (via ITAR-TASS):

"China’s yuan (renminbi) may become a third reserve currency in the world in the future"

 

"This forecast can be made on figures of domestic economic growth. Probably the country will keep high GDP growth rate and the GDP volume will increase to around 14-16 trillion U.S. dollars for a brief period of time, the indicators comparable to the European Union and the United States.

 

Meanwhile, Chinese securities are more attractive for the countries that have a surplus in economy, particularly the Middle East states; and China will obviously follow the path of securing the country’s assets,"

The forum which opened in the Chinese capital on March 22 discusses a broad range of issues of economic reforms and China’s stronger role as the second largest world economy. First Deputy Prime Minister of the Chinese State Council Zhang Gaoli, Managing Director of the International Monetary Fund Christine Lagarde and top managers of major world corporations participate in the forum as honorary guests.

Of course, as we noted previously, nothing lasts forever...

 [12]

 

and with Friday's "Petrodollar Alert" perhaps things are moving faster than many assumed.

 

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Sun, 03/23/2014 - 18:34 | 4583445 FieldingMellish
FieldingMellish's picture

The futures market will not stand for this. Now witness the power of paper and propaganda!

Sun, 03/23/2014 - 18:34 | 4583451 Soul Glow
Soul Glow's picture

Quick someone play some music while the ship sinks!

Sun, 03/23/2014 - 18:38 | 4583466 knukles
knukles's picture

Do you hear what I hear?
There's a leak somewhere.

Sun, 03/23/2014 - 18:40 | 4583479 0b1knob
0b1knob's picture

< Yuan for the money!

< Lets get ready to RUBLE!

Sun, 03/23/2014 - 18:41 | 4583480 Soul Glow
Soul Glow's picture

DXY flash crash monday?

Sun, 03/23/2014 - 18:47 | 4583498 cossack55
cossack55's picture

One can always hope.

Sun, 03/23/2014 - 18:51 | 4583516 El Oregonian
El Oregonian's picture

Putin to Obama: "Can you hear me now!?!".

Sun, 03/23/2014 - 18:54 | 4583520 bigdumbnugly
bigdumbnugly's picture

disturbing photo though.

is a zipper check warranted?

Sun, 03/23/2014 - 18:55 | 4583528 smlbizman
Sun, 03/23/2014 - 19:15 | 4583571 prains
prains's picture

thanks

 

like to hear Tyler in regards to this, too!

Sun, 03/23/2014 - 20:45 | 4583831 Unpopular Truth
Unpopular Truth's picture

In order to do start buying Russian gas, China would have to sell their US treasuries, dropping their price. They wouldn't EVER do that to us!!! /sarc/

Sun, 03/23/2014 - 21:49 | 4583991 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

In the end does it really matter. If the Yuan is priced to the USD, is that not leaving the USD as reserve currency de facto? Drop the peg and things will change then.

Sun, 03/23/2014 - 19:11 | 4583583 fonzannoon
fonzannoon's picture

I saw that article today. I too find that ZH article bizarre. So all last year we read about the GLD holdings being dumped, 4 guys in a room in London with telephone's price fixing the market, Bloomberg articles admitting manipulation of bullion by the banks...JPM vaults being emptied....only to know change the story to it being China somehow managing to suppress prices....

 

Sun, 03/23/2014 - 19:14 | 4583593 prains
prains's picture

and supression by some exotic shadow banking scheme........not saying i understand the nature of the beast but it's not yet all adding up for me either

Sun, 03/23/2014 - 19:20 | 4583607 Angry White Dude
Angry White Dude's picture

Any reason that both explanations can't be correct(ish)? Both scenarios make sense to me. The West wants to suppress the price as part of sustaining the ponzi and the Chinese certainly want to take advantage of, if not contribute to, price suppression if you accept the premise that they are loading up on physical gold for strategic reasons.

Sun, 03/23/2014 - 19:25 | 4583628 IridiumRebel
IridiumRebel's picture

I'm sure there's a bullshit buffet we all get to have second to sixth helpings for....I'm just a schmoe like you. We are not privy to front running.

Sun, 03/23/2014 - 19:21 | 4583608 Winston Churchill
Winston Churchill's picture

JPM just sold their commodities unit.Gold rigging it being investigated in London

and Frankfurt. and this TBTF authored report comes out.

Could turn you into a conspiracy nut, not quite sure why the Tylers endorsed it though.

Sun, 03/23/2014 - 19:22 | 4583614 Angry White Dude
Angry White Dude's picture

<dupe>

Sun, 03/23/2014 - 19:15 | 4583594 IridiumRebel
IridiumRebel's picture

According to RATionalwiki.shit, ZH is "batshit crazy". If all of these fuckers are coming out to disinfo and redirect folks away from ZH I think they are doing something right.

Sun, 03/23/2014 - 19:16 | 4583598 fonzannoon
fonzannoon's picture

Or...on this particular article, they are actually batshit crazy. How many 8:30am slam downs do we have to see and $50 fed day knockdowns to realize maybe the simplest explanation is the right one.

Sun, 03/23/2014 - 19:19 | 4583602 IridiumRebel
IridiumRebel's picture

ZH isn't gospel, but they bring forth stories I'd never hear elsewhere. Are they sometimes wrong or looking too hard? Sure.

Sun, 03/23/2014 - 19:23 | 4583618 fonzannoon
fonzannoon's picture

I hear you, and I am always the dick when I go against them. But I only do it because when everyone agrees with them they are awesome. When everyone disagrees with them that means they must be doing something right. So in effect they are gospel. So I sometimes feel the need to point out that it is possible that sometimes they may just be either wrong, or changing the narrative for some strange reason. They still post good stuff, better than anything else out there.

Sun, 03/23/2014 - 19:27 | 4583635 IridiumRebel
IridiumRebel's picture

Even the dissenting opinion needs to be dissented against. +1

Sun, 03/23/2014 - 19:23 | 4583621 prains
prains's picture

eyes open

ears open

bum hole closed

it's the only way to operate these days

Sun, 03/23/2014 - 20:16 | 4583761 Kirk2NCC1701
Kirk2NCC1701's picture

No, ZH is not Gospel. It's better than Gospel: there's nothing in the Gospel that we could not have figured out by ourselves, but plenty in ZH we didn't and could not have figured out by ourselves.

P.s. the Gospel CONditions you to believe in unprovable invisible products, ZH teaches you to beware of them an their purveyors.

Sun, 03/23/2014 - 20:32 | 4583809 echoes
echoes's picture

Yeh, sort of how you believe in invisible voodoo bit'coins'. Just sayin, yo lolz

Mon, 03/24/2014 - 03:46 | 4584668 Independent
Independent's picture

Hey Echoes I know why you wear the bag and hear echoes.  If you take off the bag there is nothing there LOL

Listen you anencephalic twat, the only voodoo is what Ill DO to YOU when I bend you over and ram you so hard your other end will be like a loudspeaker in a horror picture flick

Lay off the Captain or I may have to work you over some more...

And all the child molesting priests that downvoted the captain better hope I dont find you and bury my Cowboy boots with spurs all the way to my knees into your bungholes

Mon, 03/24/2014 - 13:51 | 4586169 Kirk2NCC1701
Kirk2NCC1701's picture

Anyone can cherry-pick, not everyone can really pay attention, it seems.  Note that I said untestable invisible product.

Lots of things in the universe are 'invisible' to the naked eye,  But they can certainly be made visible or tested with man-made tools.  Electronic data (bitcoin or otherwise) can and is accessible and subject to testing, creating or deleting.  "God" or "gods"... not so much.

Optional:  We digress, but... I say the following, not to offend, but in the sincere hopes that at least some people/sheeple will cast aside childish things and worn out hand-me-down superstitions and fables.

At this point it is fair and accurate to say that "God did not make make man".  Rather, "Man made God/gods".  It is FAR more credible that Space Aliens with impressive tech and space ships (like the Enterprise)  had a "hand" in our evolution, and that they were worshipped as "gods" by primitive, pastoral tribesmen.  If anything, this Yahweh/Elohim character reminds me of some Klingon assholes I know -- so to speak:  Arrogant, insecure, obnoxious and erratic.  Kinda like some guys with Money & Toys whom I know.

It's time to put away primitive and childish things, and see things clearly as they truly ARE.  See "God's God"  http://www.youtube.com/watch?v=ODetOE6cbbc

p.s. Have you ever noted how it is so easy for religulous types to question modern models, postulates or theories, but their brains are totally immobilized from usage, when it comes to ancient Literature?  Literature of unprovable lineage, accuracy, etc, etc., and written by primitive people with less education than a 5th grader.  Why believe that ancient literature, but not believe modern concepts?

pps.  Don't Feed the Ducks.  Don't Feed the Animals.  And... Don't feed the Shamans & Shills.  Make them get a real job.

Sun, 03/23/2014 - 21:07 | 4583881 Shrapnel
Shrapnel's picture

Thank you for posting this link.

Sun, 03/23/2014 - 21:40 | 4583963 WillyGroper
WillyGroper's picture

Read it too.

Some of the comments rather scathing.

Sun, 03/23/2014 - 23:05 | 4584246 Ifigenia
Ifigenia's picture

naughty zh.

Sun, 03/23/2014 - 19:12 | 4583585 prains
prains's picture

disturbing photo though.

is a zipper check warranted?

 

if they were in middle school somebody would have a boner by now in this slow dance

Sun, 03/23/2014 - 21:23 | 4583926 Ifigenia
Ifigenia's picture

the photo just show Putin is not homophobic. One more msm myth down.

Sun, 03/23/2014 - 22:28 | 4584120 pigs-n-space
pigs-n-space's picture

Nope, Im on the golf course and I am busy, call back. Wow one POS president. 

Sun, 03/23/2014 - 18:47 | 4583499 infiniti
infiniti's picture

Yes, the currencies of US's largest trading partners are going to soar tomorrow  /sarc

Sun, 03/23/2014 - 18:53 | 4583514 Soul Glow
Soul Glow's picture

That would be in the Fed's favor short term - long term they are fucked.  Remember the Fed/UST are in the Import/Export business and they import money now when their bonds are bid on and export dollars at a later date, with the exchange rate fixed by them.  

When a central bank is faced with deflation they should lower the value of the currency to increase exports.  Econ 101.

Sun, 03/23/2014 - 18:43 | 4583483 SWRichmond
SWRichmond's picture

Attack!  Send in the protesters!

Nuland, call your office!

Sun, 03/23/2014 - 19:39 | 4583664 williambanzai7
williambanzai7's picture

Hey, don't step on my Red White and Blue Suede golf shoes...

Sun, 03/23/2014 - 23:46 | 4584354 bankerbackbacon
bankerbackbacon's picture

The Lodges want another culling. There is nothing Americans hate more than a reserve currency rethink.

..

Sun, 03/23/2014 - 18:46 | 4583496 McMolotov
McMolotov's picture

This is one of the rare times that calls for the dramatic chipmunk:

http://www.youtube.com/watch?v=a1Y73sPHKxw

Sun, 03/23/2014 - 18:56 | 4583536 rsnoble
rsnoble's picture

The ships already sank and we're all stranded on a island full of crazy bastards.

Sun, 03/23/2014 - 20:46 | 4583833 americanspirit
americanspirit's picture

Nearer my God to thee

Sun, 03/23/2014 - 18:44 | 4583489 MeMongo
MeMongo's picture

Ho lee fuke....sum ting wong!:-)

Sun, 03/23/2014 - 23:52 | 4584368 rubiconsolutions
rubiconsolutions's picture

Putin to Li Keqiang - "Yuana be the world's reserve currency?"

Sun, 03/23/2014 - 18:34 | 4583446 Soul Glow
Soul Glow's picture

Goodbye dollar!

Sun, 03/23/2014 - 18:37 | 4583465 Canadian Dirtlump
Canadian Dirtlump's picture

We need Mike Rogers and John "walnuts" McCain to start campaigning to provide taiwan with heavy weapons to stare down this menace now that they have planted the seeds for ww3 in ukraine.

 

This threat to national insecurity can't be ignored.

Sun, 03/23/2014 - 18:49 | 4583507 McMolotov
McMolotov's picture

We should also go ahead and put a military base on the Senkaku Islands, just to be safe.

Sun, 03/23/2014 - 19:03 | 4583552 knukles
knukles's picture

Manned exclusively by the most experienced and tenacious old experienced warriors amongst the brave, Captain John McCain and in the best interests of fidelity, democracy, equality, fraternity and social justice, supported with and as his bunk mate, his happy warrior sidekick, Lindsay Graham.

"Never fear, Whatthefuck is here!"

Sun, 03/23/2014 - 19:12 | 4583584 Lore
Lore's picture

Yeah, McCain has a purple heart or something on the back of his shorts.  

Picture the two of them locked up in the stocks. It would be a good day for Real America.

Sun, 03/23/2014 - 19:13 | 4583589 Rafferty
Rafferty's picture

Give it time.....some clown will think you're being serious and downvote you.

Sun, 03/23/2014 - 19:24 | 4583624 Canadian Dirtlump
Canadian Dirtlump's picture

They should make Walnuts a bamboo outpost there to remind him of tyhe good old days of collaborating with the enemy.

Sun, 03/23/2014 - 23:14 | 4584277 Ifigenia
Ifigenia's picture

Hanoi Hilton had too much temptation for old hero McCain

Sun, 03/23/2014 - 20:09 | 4583737 Jack Burton
Jack Burton's picture

McCain's flying record is one of shame and disaster. Had he not been an Admiral's son, he never would have graduaded the academy. Never gone to flight school. Never been given jets. Never been a part of an at sea flight deck disaster, never been shot down. McCain endured his captivity with some honor, but his mind is now fried. A child of privilege and a questionable naval aviator. No man with his record would ever have gotten to the deck of a carrier without Daddy Admiral running cover for his legion of errors, mistakes and foolish stunts. Read his military biography.

Sun, 03/23/2014 - 23:44 | 4584350 Philalethian
Philalethian's picture

So Knuck, when the time comes, some will be put in charge of pointing out every one of those "experienced warriors" that will be put on that island. It's a good thing to know you have been picked for the job and have a handle on just who should go there. Might even be a panel formed to pick the lucky vacationers from the dignitaries among this forum of fine thinkers, and tinkers here. Not much hides under the rocks without seeing the light here.

Reckon what will be interesting to see if we live after the train heads off the cliff, is the people of new state trading with the Yuan in the former USA. Life in the new socialist united peoples republic of China's bitch, once known as the USA, will be just that for the survivors. A real bitch!

http://www.couchtuner.eu/revolution/

 

Sun, 03/23/2014 - 19:02 | 4583555 RafterManFMJ
RafterManFMJ's picture

There's two fishermen there with canvas tunics and rusty filleting knives; I'm not sure if we can take them.

Sun, 03/23/2014 - 19:28 | 4583638 sushi
sushi's picture

Draw a red line.

 

That will scare them off.

Sun, 03/23/2014 - 19:03 | 4583562 anonnn
anonnn's picture

Mike Rogers could be the poster-child of all those who "know" that World War 1 was started as result of assassination of Archduke Ferdinand at Sarajevo.

Europe's royal families  were integrated by hundreds of years of intermarriage that promoted secret treaties and territorial arrangements and understandings. Such are the usual activities of all privileged classes seeking to maintain their status, or "security" .  Ferdinands death setoff the domino-effect of those mostly secret and even ancient arrangements.

NATO is the hair-trigger that can set the world ablaze as, for example, when a 5-foot 135-pound wannabe Napolean is covertly pushed [by a megalomaniac and clever rich-uncle]  to attack an elephant. Or a bear.

Sun, 03/23/2014 - 19:14 | 4583591 Lore
Lore's picture

A Nazi is a Nazi is a Nazi. They're all clinical psychopaths and deserve to be locked up in a zoo cage.

Sun, 03/23/2014 - 21:25 | 4583934 Ifigenia
Ifigenia's picture

Vitoria Nulland with her cookies is more efficient.

Sun, 03/23/2014 - 21:44 | 4583974 Independent
Independent's picture

You know Anne Frank also baked cookies.  When I look at Victoria's pre teen pics she reminds me a lot of Anne.

Sun, 03/23/2014 - 23:21 | 4584296 Ifigenia
Ifigenia's picture

pity, the japs just tore the pictures. why are the japs so cruel anti-semitic? they dont even tolerate a victim of ww2? Ah, they are afraid that through the jews come the Nanjing+Holocaust industry?

Mon, 03/24/2014 - 08:48 | 4584932 Independent
Independent's picture

I heard that the Japs killed 6 million Jews in Nanjing....

Sun, 03/23/2014 - 18:48 | 4583502 Kirk2NCC1701
Kirk2NCC1701's picture

Good bye QE.
So long, and thanks for all the fish.
Stay calm. Do not panic.

Sun, 03/23/2014 - 23:24 | 4584302 Ifigenia
Ifigenia's picture

calm is our last and only medicine. the 1% take everything elses from us.

Mon, 03/24/2014 - 03:49 | 4584675 Independent
Independent's picture

"Goodbye dollar!"

Does that mean we finally rid ourselves of the dual citizen infestation too?  At least something positive will come out of it.

Sun, 03/23/2014 - 18:34 | 4583447 TeamDepends
TeamDepends's picture

In this embrace, it is Amereeka who screwed!!!!!

Sun, 03/23/2014 - 18:34 | 4583449 Manthong
Manthong's picture

Third?  ..or only?

Sun, 03/23/2014 - 18:35 | 4583450 JustPrintMoreDuh
JustPrintMoreDuh's picture

The enemy of my enemy ...   ah fuck it all ... enjoy the fireworks.

Sun, 03/23/2014 - 18:43 | 4583486 Al Huxley
Al Huxley's picture

Cool avatar - did you have that custom made?

Sun, 03/23/2014 - 18:36 | 4583457 Hulk
Hulk's picture

ruh roh !!! whod coulda seen this coming...

Sun, 03/23/2014 - 18:46 | 4583495 knukles
knukles's picture

Another speech from the Royal Golf Charriot should make all well.
Long Ativan, clozapine and olanzapine.
Beware the extarpyramidal symptoms.

Sun, 03/23/2014 - 19:00 | 4583546 TahoeBilly2012
TahoeBilly2012's picture

Isn't Michelle and the girls over there trashing the top of some Hotel somewhere?

Mon, 03/24/2014 - 07:54 | 4584832 ThisIsBob
ThisIsBob's picture

Yes, and spending more in one night than most get in social security retirement for a whole year.

Sun, 03/23/2014 - 23:13 | 4584271 StychoKiller
StychoKiller's picture

Corruptol™ is a helluva drug!

Sun, 03/23/2014 - 18:38 | 4583467 Peter Pan
Peter Pan's picture

Those ancient Egyptian slaves who made paper from papyrus reeds must be laughing at the idiocy of the modern world that functions on a hierarchy of paper.

Sun, 03/23/2014 - 18:39 | 4583469 q99x2
q99x2's picture

Another win for Bitcoin.

Sun, 03/23/2014 - 18:39 | 4583474 RyeWhiskey
RyeWhiskey's picture

Wait till China annexes half of Russia in 30-50 years. Through a referendum of course. Chinese in typical asian political pattern try to appear "pleasing" both masters when in fact they are the only ones benefitting from this mess.

Sun, 03/23/2014 - 19:06 | 4583569 RafterManFMJ
RafterManFMJ's picture

Nu-clear Weapons.

Properly sited and deliverable they make an exceptional argument against invasion.

Sun, 03/23/2014 - 19:43 | 4583680 Tradehard
Tradehard's picture

Look at Russias border! What ? You're going to nuke your own country ? The way the Russian far east will be invaded is by the same method Russia used to invade smaller countries. By getting their own population in. If you think the U.S. border is hard to defend. Think again..

Sun, 03/23/2014 - 18:40 | 4583475 Cattender
Cattender's picture

you can't back a currency with nothing but Gold. it'll never work silly China..

Sun, 03/23/2014 - 18:44 | 4583484 Kirk2NCC1701
Kirk2NCC1701's picture

Currency that's backed by precious energy plus precious materials -- not to mention "lots of cheap labor"-- Wow, what a concept, what a model for Russia and China.

The Neocons are probably calling Dick Cheney's heart surgeons.

Sun, 03/23/2014 - 18:52 | 4583515 ILLILLILLI
ILLILLILLI's picture

There is an interesting fiction book called "Dragon's Fury: World War Against America and the West" by Jeff Head that examines this scenario.

A bit 'over-written', it nonetheless lays out a plausible storyline.

Free ebook download: http://www.jeffhead.com/ebookdownload/DFS-WorldWar.pdf

Sun, 03/23/2014 - 18:44 | 4583492 infiniti
infiniti's picture

So russia, a serial defaulter with one of the world's worst currencies, thinks communist china's non-convertible toilet paper will be the reserve currency? That's excellent news for the dollar, seeing as how russia wouldn't know sound global finance if it annexed siberia.

Sun, 03/23/2014 - 18:47 | 4583500 Soul Glow
Soul Glow's picture

Fiat currency is in a death spiral.  Just let it go.

Sun, 03/23/2014 - 19:20 | 4583606 Anusocracy
Anusocracy's picture

Cottonelle, Charmin, Northern - in the long run it doesn't matter the name of the fiat currency.

Sun, 03/23/2014 - 20:52 | 4583839 zionhead
zionhead's picture

Bullshit is thick today ...

Let's see China say's they move from position #9 to #3,

That means they have to go from 2% to 20%, a 10X in trade, that would be just to kick JPY out of #3.

Then the worst misleading is that old #1 the USA is at 80% of currency trade, which means to compete with the USD China must go up 40X, just to kick the USA out of #1.

Gonna happen in your lifetime?

Nada,

The USD is king until a better KILLER steps forward and out MURDER's uncle-sam.

http://en.wikipedia.org/wiki/Foreign_exchange_market

Sun, 03/23/2014 - 18:49 | 4583506 cossack55
cossack55's picture

John, is that you?

 

How's that whole censure business working out?

Sun, 03/23/2014 - 18:55 | 4583531 knukles
knukles's picture

Good observations.
What with the Putin man-love/Barack man-adversion obsessions about these days, it'll attract a lot of red votes, but is astute.
After all, not day 1 since the gold and other resources has been available to the oligarchs and their minders for reserve and hardened currency purposes now, is it?

Sun, 03/23/2014 - 19:25 | 4583627 MontgomeryScott
MontgomeryScott's picture

@ knukles,

I don't disagree with you very often, but in this case...

There is nothing 'astute' about the post that you respond to. This guy is a cheerleader for the Neocons, and nothing more. The USD is dead, and has been so since 1971 (at the latest). The Russians currently have a surplus (as do the Chinese), and between manufacturing, gold holdings (REAL, PHYSICAL; versus 'we have it but won't show it to you'), the combined abilities to field a one-hundred-million man army; AND all the tech weapons, they are no doubt seeing that they have the power and ability to crush this weak, self-involved, vain, gluttonous nation known formerly as 'the United States'. Any discussion about 'good news for the dollar' is simply theoretical at this point in time. There IS NO GOOD NEWS seen; nor will there be any. EVER. AGAIN.

Sun, 03/23/2014 - 19:45 | 4583682 Winston Churchill
Winston Churchill's picture

Amazing it took them so long isn't it ?

The blood is in the water now, and there is no going back from here for anyone.

 

Sun, 03/23/2014 - 18:56 | 4583532 ebworthen
ebworthen's picture

Russia and China; two of the oldest cultures with the greatest land mass and resources - both with history's of being invaded by interlopers.

It would be wise to not poke them in the ribs or sacrifice our industry while simultaneously abandoning what made the U.S. strong to begin with but...oops...too late.

Sun, 03/23/2014 - 18:58 | 4583537 Ignatius
Ignatius's picture

"...russia wouldn't know sound global finance if it annexed siberia."

I'm thinking Russia knows finance better than you know geography as Siberia has been part of Russia since the 17th century.

Sun, 03/23/2014 - 19:46 | 4583686 Tradehard
Tradehard's picture

Yeah the ruble hyperinflation was awesome!

Sun, 03/23/2014 - 20:04 | 4583724 Ignatius
Ignatius's picture

Russia gave up their Soviet Empire without a hot war and there were grave economic consequences for that contraction/reorganization decision.

But it's now clear to me that you could have done better.

You're a really sharp guy, Mr. 47 weeks.

Sun, 03/23/2014 - 22:25 | 4584110 infiniti
infiniti's picture

You ARE aware that the trade-weighted RUB is down more than 99.5% in the last 20 years, aren't you?

 

Sun, 03/23/2014 - 22:37 | 4584148 Ignatius
Ignatius's picture

Your ideology/stupidity has already been recognized and addressed in this comment thread.

See below.

Sun, 03/23/2014 - 19:11 | 4583582 MontgomeryScott
MontgomeryScott's picture

@ infiniti:

You're kind of new and stupid, here, aren't you?

The United States (incorporated) has been in technical default since 1933.

It took a Nixon to go to China. Whip inflation now. (Ford, 1975)

It was a magic bullet. (Ford, Warren Commission, 1963)

Common Core Education. (Ivy league, Communist plank)

War Is A Racket. (Smedley Butler)

I won't come in your mouth. If you like your doctor, you can keep your doctor. Shovel-ready jobs. (Obama's Columbia buddies)

Defecits don't matter. (President Cheney)

Remember the Maine. (Randolph Hearst)

Remember the Gulf of Tonkin. (MacNamara)

We have always been at war with Eastasia. (Wells)

Hong Kong and Shanghai Banking Cartel; the world's best and foremost bank. (Getting the Chinese stoned on Opium since the 1870's, and laundering drug money for over 130 years)

Duck, and cover. (Yertle the Turtle)

Your number is a secret one, only known to you and the trust that has been established in your name. (United States Social Security Administration)

 

YUP, you're either really new, really stupid, or really a PLANT. 'SERIAL DEFAULTER'? I mean, GET REAL...

Sun, 03/23/2014 - 19:38 | 4583668 knukles
knukles's picture

Print MOAR... Paul Krugman

Sun, 03/23/2014 - 20:05 | 4583733 EINSILVERGUY
EINSILVERGUY's picture

We have always been at war with Eastasia. (Wells)

I think you meant Orwell

Sun, 03/23/2014 - 20:36 | 4583815 Winston Churchill
Winston Churchill's picture

Minitrue will be right on that.

George Wells, 103 Acaacia Ave,Wimbledon London SW16

FIFY

Sun, 03/23/2014 - 20:54 | 4583849 infiniti
infiniti's picture

Keep downvoting you fools, lord knows you've got an enormous amount of time on your hands while you sit around and wait for the dollar to collapse.

Sun, 03/23/2014 - 19:54 | 4583701 post turtle saver
post turtle saver's picture

ya can't spell "rubble" without "ruble"

Sun, 03/23/2014 - 18:49 | 4583508 ebworthen
ebworthen's picture

Meanwhile, the EU Brussels Bandits and Wall Street Warlocks scramble to subjugate more serfs. 

What is this "democracy" I keep hearing about; the freedom to be bled by parasitic bankers and their politician lackeys?

Sun, 03/23/2014 - 18:53 | 4583519 goldhedge
goldhedge's picture

The photo is of a Vietnamese Politician with Putin. See the flag?.

Just sayin ;)

 

Sun, 03/23/2014 - 19:15 | 4583595 Aussie V
Aussie V's picture

Vietnamese Chiinese whats the difference, oh yeah one has already kicked America's arse and the other is about to.

Sun, 03/23/2014 - 18:57 | 4583538 Unknown Poster
Unknown Poster's picture

China has a bright future if they can get past the bankruptcies and the fraud.

Sun, 03/23/2014 - 19:13 | 4583588 Peter Pan
Peter Pan's picture

That if is a very big if.

Sun, 03/23/2014 - 19:58 | 4583709 Unknown Poster
Unknown Poster's picture

I know.

Sun, 03/23/2014 - 19:14 | 4583592 toadold
toadold's picture

http://www.strategypage.com/htmw/htmurph/articles/20140323.aspx

Actually everybody would have a bright future if we could get past the bankruptcies,fraud, and bureaucratic dumbassery.   

Sun, 03/23/2014 - 19:03 | 4583560 yogibear
yogibear's picture

Worldwide US dollar dumping and no longer accepting  of it  is the only thing that would make the Federal Reserve fearfull.

China and Russia can help the Federal Rserve destroy the petro dollar and the US currency faster.

Sun, 03/23/2014 - 19:08 | 4583574 css1971
css1971's picture

Am I the only one who feels that the biggest problems we face today are caused by our own leaders?

Or is that just my paranoia speaking?

Mon, 03/24/2014 - 05:25 | 4584735 Dr. Sandi
Dr. Sandi's picture

Leaders? We have leaders?

Sun, 03/23/2014 - 19:23 | 4583619 All is chosen
All is chosen's picture

"Yuan may become the third reserve currency"

Third? Can't be "third ever", so it will be a caring/sharing effort this time?

Sun, 03/23/2014 - 19:58 | 4583708 post turtle saver
post turtle saver's picture

hush hush, no talk about IMF supercurrency around here...

Sun, 03/23/2014 - 19:36 | 4583640 Irving Phelps
Irving Phelps's picture

Dear Comrade Putin. As you already know, our border is always open to anyone looking for a free ride....not to dissuade you from working for a living. I'm sure you realize that you will kick Hillary's fat ass all the way down Wall Street in the next election so I just wanted you to know that you can count on my vote as nobody in this country appears to have a fucking bone in their body.

Dear NSA, I am just kidding!

Sun, 03/23/2014 - 19:39 | 4583669 Berspankme
Berspankme's picture

Soetero has a bone, unfortunately it's usually planted in Reggie's arse

Sun, 03/23/2014 - 23:43 | 4584347 Ifigenia
Ifigenia's picture

If country could be run just like football club, is time for team EU change coach. Bring in Putin, an european.

Sun, 03/23/2014 - 19:42 | 4583675 palmereldritch
palmereldritch's picture

They look like they're getting a lot of groin in that photo....and loving it

Sun, 03/23/2014 - 20:11 | 4583744 Jack Burton
Jack Burton's picture

The real war is over King Dollar. That is where the action is, that is the fundamental underlying the power of the US war machine. We print half of what government spends, and owe straight up north of 14 trillion. We print and issue hundreds of billions in debt every few months. The Fed prints and buys. At the end of the day, Russia and China have a great weapon, go after King Dollar, the Petro Dollar Scam, and the ocean of Green Asswipe that the US floods the world with to buy all it needs to be the world's super power.

Sun, 03/23/2014 - 20:12 | 4583750 Angry White Dude
Angry White Dude's picture

Between this announcement and the impending Russia-China energy trade deal, I think it is becoming more clear that BRIC strategy, lead by Russia and China, is an accelerated but controlled move to diversify away from settling global trade in alternative currencies, with the ultimate goal being an SDR-type unit of account becoming the standard for global trade settlement, and that there is no desire for the chaos that would result from a rapid dumping of USTs or declaration that USD will no longer be accepted for settlement.

No government, especially not authoritarian ones like Russia and China (and the US) have any desire to cause disorder of a magnitude that risks wide scale, violent internal strife (which is why even a bully like the US only really picks on / destabilizes weak nations that pose containable spillover risk). Perpetuating subjugation and control of the people, through benevoent bread and circuses where possible, and at the barrel of a gun where not, is the prime directive of government.

If you believe that The Banksters are pulling all the strings, then a move to an SDR system is logical. The BIS used the gold Franc until 2003. According to Wiki page on the BIS (apologies), "One SDR is equivalent to the sum of USD 0.660, EUR 0.423, JPY 12.1 and GBP 0.111. Included in that total is 404 tonnes (890,658 pounds) of fine gold." I think the recent hoarding of gold by Russia, China, India, et al. is part of a two part strategy: first, building up sufficient pressure to force adoption of the SDR as the global settlement unit of accuont, and 2) a reformulation of the SDR that is more heavily weighted towards gold, and incorporates the Ruble and RMB as component currencies of the formula.

Proponents of backed-currency theories are likely to be disappointed. It is no government's interest to ever try to reinstate a commodity backed currency (by which I mean a currency that is convertible into the underlying commodity), because you end up with the situation we had with France that led to Nixon's actions.

I'll wrap this up by saying that the primary thing I think those who live in US need to prepare for is the price inflation that will result from the repatriation of the USD that are no longer needed for global trade. I think what the US .gov is trying to figure out is how to control the rate of flow at which that happens.

 

 

Sun, 03/23/2014 - 23:47 | 4584357 Ifigenia
Ifigenia's picture

totally agree. the only problem is there still some madman out there

Mon, 03/24/2014 - 02:19 | 4584571 The wheels on t...
The wheels on the bus are going to fall off's picture

I would agree with everything you say, but i cant help but think that printing SDR's is just another form of FIAT unless it is backed with something? i understand the weighting arguement but how do you control the monetary inflation?

Sun, 03/23/2014 - 20:22 | 4583778 geno-econ
geno-econ's picture

Russian saying: Behind every piece of machinery stands a German
China saying: Behind every export stands a deficit dollar
US saying: Behind every deficit dollar stands a _ _ _

Sun, 03/23/2014 - 20:30 | 4583802 besnook
besnook's picture

white man's dominion over the world economy acheived over the last 500 years is coming to an end. putin is the last smart white guy in the room. he sees the trend and has spearheaded the takeover. if i were white i would worry seriously about execution, enslavement and re-education gulags since that is what the chinese and russians have favored for centuries to control meddlesome people. don't think for a second you will get a pass because humans are more civilized in the 21 century.

white man's burden will become "white man is a burden"

Sun, 03/23/2014 - 20:58 | 4583863 10mm
10mm's picture

This white boy is still kicking.  Not going down like a punk. 

Sun, 03/23/2014 - 23:51 | 4584367 Ifigenia
Ifigenia's picture

i am more afraid they treat us just like we treat them for this last 100 years.

Sun, 03/23/2014 - 20:39 | 4583820 undertowed
undertowed's picture

When Barry O gets off the golf course, he'll come up with a plan to keep this from happening right? 

Sun, 03/23/2014 - 21:18 | 4583909 are we there yet
are we there yet's picture

I thought to play golf you needed balls.

Sun, 03/23/2014 - 23:32 | 4584318 lakecity55
lakecity55's picture

He has a caddie who handles his balls and spit-shines his putter.

Sun, 03/23/2014 - 23:52 | 4584369 Ifigenia
Ifigenia's picture

caddie only lead from behind

Sun, 03/23/2014 - 21:12 | 4583895 yogibear
yogibear's picture

China, the Saudis, Russia, Argentina, India,... time to kill the US dollar and send the Federal Reserve reeling!

Sun, 03/23/2014 - 21:29 | 4583941 are we there yet
are we there yet's picture

One curious long term observation.  THe US has conspiciously vboided all direct and indirect efforts to audit its gold reserves dispite massive evidence (think german) that they are largely gone. Then China has consistantly avoided all efforts to audit their true gold holdings dispite massive evidence that they have been heavily accumilating gold for some time now.

Sun, 03/23/2014 - 21:54 | 4584005 WMM II
WMM II's picture

" Speaking at the Chinese Economic Development Forum, ITAR-TASS reports, the Chief Economist of Russia's largest bank stated that "China's Yuan may become the third reserve currency in the in the future." "

 

long standing misconception laid bare for all those of the zh neighborhood to see for themselves. those, whom have heard me preach in the past that there is in fact no such thing as a reserve currency in the world anymore. all currencies are no more than a push of the button away.

the relative value of an x to a y to a z, is already in the system.

putin speaks of the third reserve currency...as if that is a discernible event from being number one or number two.

this is the man who, when presented with the opportunity of letting 97.5% of crimea to vote in his favor, chose to bar international observers and played a 'let's put bands over our russian uniforms' coward's game.

but let the praise come forth. for hear yea! here yee! the god putkin has spoken: there is in existence already, a second reserve currency.

the rest is math.

WallowaMountainMan

p.s. 'reserve currency' is a a concept much like that of 'banking' as a term prior to shadow banking emergence.

its history.


Sun, 03/23/2014 - 23:36 | 4584326 malek
malek's picture

Stopped reading at

 a third reserve currency in the world

pure marketing or propaganda bullshite...

 

Mon, 03/24/2014 - 00:18 | 4584419 yogibear
yogibear's picture

Move the financial capital from Wall Street to a Chinese city as well. People in Asia are very patient and determined.

Mon, 03/24/2014 - 03:56 | 4584684 vyeung
vyeung's picture

China will not take it up as per se. The responsibility of being the sole reserve ccy is irrelevent becoz in the end its who's fiat will be backed by gold (depends on the % but atleast its worth something unlike the petrodollar thats worth nothing except confidence of the US military industrial complex and tie to saudi oil). The Ruble will also so be backed by gold as well as any other ccy and its government that has yellow metal. The gold standard is back and for the clowns that have been preaching the BS fiat only framework, well things will soon unravel that will make you jump like the banksters.

Stockholm syndrome is about to come to a shocking holt

Mon, 03/24/2014 - 07:49 | 4584826 redd_green
redd_green's picture

Sounds nice anyway

Mon, 03/24/2014 - 04:15 | 4584698 the tower
the tower's picture

I think the notion of another reserve currency is no longer of this and age.

Mon, 03/24/2014 - 04:39 | 4584710 dogismycopilot
dogismycopilot's picture

the petrodollar is what allows the US to do the following:

1.Maintain lifestyle of 300+ million americans

2.Finance 900+ military bases around the globe

3.Finance US stock market and financial system

4.Give Federal Politicians their power

5.Buy cheap oil

6.Export inflation

7.Power Hollywood

8.Allow for cheap food in the US

9.Finance "Democracy from a Gun" invasions

10.Consolidation of global power

Gents, the PetroDollar is the Idol. Take the Idol down or even think about it and WWIII starts within 90 days. That is a fact.

Mon, 03/24/2014 - 04:56 | 4584721 hz
hz's picture

Can anyone provide any links on the net discussing the likes of Netherlands, Spain and Portugal ever being the world's reserve currencies? Only ever really seem to see it in this image and would love some evdence or research on those nations have the reserve currency during those times.

Mon, 03/24/2014 - 07:47 | 4584821 redd_green
redd_green's picture

Its a giant misnomer.    Probably fewer things are more misunderstood than meaning of "reserve currency".   "Reserve currency" means exactly that the country producing that currency has a huge trade deficit.   Hence, it is of no benefit to the country producing the reserve currency, it is only a sign of advanced monetary system collapse.  

Mon, 03/24/2014 - 07:47 | 4584822 redd_green
redd_green's picture

Its a giant misnomer.    Probably fewer things are more misunderstood than meaning of "reserve currency".   "Reserve currency" means exactly that the country producing that currency has a huge trade deficit.   Hence, it is of no benefit to the country producing the reserve currency, it is only a sign of advanced monetary system collapse.  

Mon, 03/24/2014 - 09:08 | 4585011 kenezen
kenezen's picture

A "Reserve Currency," in a global format, is a "Currency" accepted by global banks, government treasuries, and other industrial, financial and trading institutions as a means to satisfy and resolve world wide transactions of size or to hold as a safe liquid instrument.

It isn't strange that the US Dollar,  "The Reserve Currency" is beginning to change. The sure sign a change is needed is realization that fewer US treasuries issued are being bought by other countries and more than ever by our own treasury. Treasuries are created and put up for sale in the Treasury Window. Unfortunately less are being bought by others. This is opposed to historic past practice. To continue to create new dollars and buying our own issued debt seems slightly reflective of a structure not entirely recognizable or, not monetarily realistic in end result . 

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