China & Germany Sign Yuan-Settlement Pact And Obama Heads To Saudi Arabia

Tyler Durden's picture

Submitted by Mike Krieger of Liberty Blitzkrieg blog,

I haven’t paid too much attention as of late to agreements between China and other nations intended to expand the use of the yuan (renminbi) internationally, because the near-term implications always seem to be exaggerated by many market commentators. That said, this deal between the People’s Bank of China (PBOC) and Germany’s Bundesbank seems quite significant given the importance of Germany within the global economy generally and the E.U. specifically.

From Bloomberg via BusinessWeek:

Germany’s Bundesbank and the ?People’s Bank of China agreed to cooperate in the clearing and settling of payments in renminbi, paving the way for Frankfurt to corner a share of the offshore market.

 

The central banks signed a memorandum of understanding in Berlin today, when Chinese President Xi Jinping met German Chancellor Angela Merkel, the Frankfurt-based Bundesbank said in an e-mailed statement.

 

Germany’s financial capital prevailed over Paris and Luxembourg in a euro-area race to win trade in renminbi, which overtook the euro to become the second-most used currency in global trade finance in October, according to the Society for Worldwide Interbank Financial Telecommunication. The U.K. Treasury said on March 26 that the Bank of England would sign an initial agreement with the PBOC on March 31 to clear and settle yuan transactions in London.

 

“Frankfurt is one of Europe’s foremost financial centers and home to two central banks, making it a particularly suitable location,” said Joachim Nagel, a member of the Bundesbank’s executive board. “Renminbi clearing will strengthen the close economic and financial ties between Germany and the People’s Republic of China.”

 

China was Germany’s third-biggest foreign trade partner last year, with 140 billion euros in turnover passing between the two countries, according to the Federal Statistics Office in Wiesbaden. China ranks fifth among importers of German goods and is the second-biggest exporter to Germany.

 

German companies including Siemens AG, the country’s biggest engineering company, and Volkswagen AG are embracing the renminbi internally as a third currency for cross-border trade settlements.

 

“The potential is vast,” said Stefan Harfich, the Siemens Financial Services manager, who steered the introduction of the yuan at the Munich-based company in October. “The introduction of the renminbi as an official company currency will therefore have a big impact on Siemens’s business in the coming years.”

 

Daimler AG, the Mercedes manufacturer that sold 235,644 autos in China last year, issued 500 million yuan of one-year notes in Asia’s largest economy on March 14, in the first so-called panda bond by an overseas non-financial company.

With all that in mind, let’s not forget that Obama is currently in Saudi Arabia trying to restore ties with the Medieival Kingdom, i.e., he is trying to figure out a way to arm al-Qaeda in Syria without the American public finding out about it.

From the Wall Street Journal:

RIYADH—Barack Obama’s visit to Saudi Arabia on Friday marks a bid to warm relations that the Saudis hope will result in commitments by the U.S. president to boost the supply of sophisticated weapons to Syrian insurgents.

 

Mr. Obama’s stopover at the end of a European tour will mark his first visit to the kingdom since U.S.-Saudi ties were severely strained last year following the renewal of high-level U.S. contacts with Iran and the cancellation of planned airstrikes against the regime of Syrian President Bashar al-Assad.

 

Saudi officials also are hoping he will bring word of a breakthrough in U.S. and Jordanian opposition to supplying Syrian rebels with more advanced weapons, including shoulder-launched missiles, known as manpads, capable of bringing down Syrian aircraft, according to Saudis, a Western diplomat and regional security analysts familiar with the situation.

 

Saudi officials also are hoping he will bring word of a breakthrough in U.S. and Jordanian opposition to supplying Syrian rebels with more advanced weapons, including shoulder-launched missiles, known as manpads, capable of bringing down Syrian aircraft, according to Saudis, a Western diplomat and regional security analysts familiar with the situation.

 

Jordan also has blocked delivery of the additional weapons through its territory to rebels in Syria, for fear of getting pulled deeper into the Syrian conflict. The diplomat and two Syrian opposition officials said Amman is waiting for the U.S. to approve the deployment of Saudi-bought manpads currently sitting in Jordanian warehouses.

 

Saudi royals have muted their angry rhetoric since last autumn’s rift. Prince Turki Al Faisal, whose criticism of the Obama administration’s policies on Iran and Syria made front-page news in December, made virtually no mention of the U.S. during a U.S. speech about Iran this month. A Saudi ambassador who wrote of Saudi Arabia breaking with the U.S. in the New York Times in December has been publicly silent since.

It appears that becoming entrenched in a Syrian civil war is still very much on the table…

Lots of moves appear to be afoot on the macro front at the moment. The months ahead should be very interesting to say the least.

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palmereldritch's picture

More precise terms would now be Petro-fuels and Fossil dollar.

knukles's picture

Oh, silly people.
We'll just cut them off, isolate them like we are Russia.
Everybody knows you can live forever without anything from Germany and especially, China

Hah!

Jim in MN's picture

USA out of Eurasia

We can buy whatever they have to offer after the resource wars.  Meanwhile we have lots of delicious oil over here in the WestHem.

john39's picture

The US government demands that the democratically elected moderate assad gov must go, but allies itself with a familial dictatorship in Saudi Arabia that treats women like dogs and spreads barbaric radicalism around the world.  Makes perfect sense.

0b1knob's picture

<  Remember the Hilter-Stalin pact?  Yeh me neither.

<  Meet the New World Order, same as the Old World Order.

Oh regional Indian's picture

Wow, we get to watch live and in real time, the isolation of the US, the slow destruction of it's and th eworld's currency, new alignments, patterns of history repeating/rhyming before our very eyes....

Epic times. Epic times call for epic people.

Be Epic!

ori

My own road to be change....

https://www.youtube.com/watch?v=3XijsnujcFg

Rafferty's picture

That's why Heaven sent Obama to us.

eurogold's picture

Yuan agreement signed with Germany on Friday, Yuan agreement to be signed with London on Monday. Goodbye Petrodollar !

RafterManFMJ's picture

Obamy's flown across the ocean
Leaving just a memory
Snapshot in the White house album
Obamy what else did you leave for me?
Obamy what'd'ja leave behind for me?
All in all it was just a brick in the wall.
All in all it was all just bricks in the wall.

DoChenRollingBearing's picture

Jim in MN

Yes, OUT of Eurasia, nicely put.  We have plenty that we could buy (of almost anything) and mind our own business at the same time.

El Oregonian's picture

What a shit stain the American government is becoming. Just stop, Barry! You are embarrassing yourself.

boogerbently's picture

Ever bodies dissin' da Choomer-in-Chief !

zhandax's picture

When you watch a video of an idiot doing a head-on with a train, don't you usually make some sympathetic comments to make the family feel better? Oh, I forgot, they are burning a half-billion dollars of our national deficit to tour China.  Never mind.  #sarc on

Keyser's picture

Worse, he's embarrassing the rest of us too. Just when we thought the image of the US couldn't get any worse after 8 years of GWB, we are gifted with Oblamo by TPTB. And oh how they larfed. 

boogerbently's picture

Has obama thrown up on anyone, yet ?

JR's picture

Everybody knows you can live forever without anything from Germany and especially, China

Especially with the loss of the US manufacturing base to China without 'comparative advantage' except to Robert Rubin and the multis -- all parked in tax havens offshore.

nmewn's picture

Ain't it grand, Rubinomics, its the latest-old thing ya know.

Gut the productivity & lifestyle of the host, enrich yourself while convincing everyone its for their own good...it only takes a certain class of evil...along with some pizza and a blowjob.

JR's picture

You’ve done it, nmewn, the Fed’s 100-year economic system’s been coined and defined: Rubinomics.

A classic, nmewn, a keeper. Short and sweet. At last!

UselessEater's picture

This is what makes Catherine Austin-Fitts 'Breakaway Civilization' discussion so interesting, the tape worm will continue and redefine core "industry" in the (micro) economically functioning parts of the USA.

DoChenRollingBearing's picture

Gold for the stackers.* 

Bearings for the rollers.

 

*and lead to protect it....

UselessEater's picture

Surely its more than stacking gold and lead to protect it?

Beyond the "collapse" you and I want a life and a future; like it or not we're cooperating with this current system in order to function. So what is the emerging system we should cooperate with if we want to exist beyond protecting PMs with lead?

I'm just curious of peoples thoughts (no crticisms intended).

Tall Tom's picture

Self reliance and self sufficiency? Anything else imposed upon someone else is just another form of tyranny.

UselessEater's picture

Its a very big part of an equation IMO but not the full equation.

Florishing or adapting to a new system is tryranny repeated for sure. But its also likely to be the option for those of us in our 20's, 30's or 40's, there will be scope to do well beyond self-sufficiency otherwise we're just returning to an agrian society on the fringe of the extraordinary high tech society evolving around us.

Tall Tom's picture

There are other alternatives for those in their "productive years", their 20s, 20s, and 40s.

 

The change happens first from within then manifests into the outside. It is available today. You do not need wait for someone else to offer it as an alternative and impose it upon you as the "solution" to the Hegelian Problem presented.

 

Compliance is complicity. Choose to sacrifice some modern "comforts" and OPT OUT. What that takes is a willingness for sacrifice.  Freedom is the gain.

GeorgeHayduke's picture

It's a nice, simple idea, and it sounds good on a message board but I don't know how well it would actually work in a world of 7 billion people.

Believe me, I've read  quite extensively in the anarchy and libertarian realms (the real stuff, not Tea Party so-called libertarian thinking). I sounds really good, but thus far I've yet to see any historical or current evidence of any humans living in such arrangements beyond the tribal level. I also see the concept of private ownership of land causing all kinds of problems in such a system over a few generations.

I could be wrong and would be quite happy to view any empirical or convincing evidence that proves me wrong. Post it if you've got.

kareninca's picture

Okay, there you are on your self-reliant, self-sufficient bit of land.  And you wander over to the edge of it, and there's your neigbor beating the pulp out of his wife/kid/dog.  If you stop him is it tyranny?  I'm serious; that sort of thing comes up in real life all the time.  You're visiting your farm neighbor, and she's about to give herself an abortion eight months in; if you call the neighbors in to stop her is it tyranny?

It's nice and easy where everyone is an independent adult, but the truth is that a lot of people aren't, for a good chunk of their lives.  Even in the most free societies, there are a lot of young and old and terribly sick and crazy people.  So if you're a liberarian you say that their relatives are responsible for them?  Why should their relatives be on the hook?  Okay, we'll assume for the sake of argument that they are.  Are you entitled to intervene and protect them from those relatives?  If not, then they are just the "property" of the relatives.

In the most free societies I have read of, people can and do intervene and control other people.  They basically do it by force, actually; the men of the community come in and beat up the deviant guy; the women shame and harass the deviant woman and throw things at her.  And when your read the memoirs of people who grew up in those sorts of settings, they seem to wish they had intervened a bit more (right now I'm reading Yesterday in the Hills, re Georgia hill farmers).  Unfortnately a nice clean rule like "leave other people alone," doesn't cover many common situations; that's why these rural societies have their own "solutions."

We have a family friend; very pretty, blonde and blue-eyed; she just turned 50.  She was horribly abused by her biological parents when she was little.  She lived with her father.  He would beat her until she had to be hospitalized (he sexually abused her, too).  Her mother would then pick her up at the hospital, after she had healed enough to be discharged, and drive her back to the father's place.  In the 1960s there were no reporting laws for doctors, and no-one ever called the cops.  She was beaten and abused her entire childhood.  My mother knew her for a decade, before she could bring herself to tell her.  I remember when the reporting laws came in, and people thought they were very intrusive.

UselessEater's picture

No thing or way of life is perfect in any society or point in history. But that is not the point, in general those communities were far nicer than the drug dregs they look like today in order to satisfy 'downsizing' etc.

People are seeking self reliance to protect their family with lead if need be. We shouldn't get to that point. But either way a prick is a prick and in the nice policed suburbs there are victums of condoned violence. Many reports and solid investigation points to TPTB as the instruments of far greater horror than the neighbour we thump for giving his wife and kids a hard time.

kareninca's picture

Oh, I'd rather live in an old time Georgia hill farm community, or the Yankee equivalent, then live as I and most Americans do now.  Other than the lack of antibiotics.  I actually think they got the balance close to right.  My point was that that is not really libertarianism; it's just a greater degree of human freedom.  Of course one has a positive visceral reaction to Tall Tom's "don't interfere" precept, but that just doesn't work in many instances, even in settings with a lot of freedom.

UselessEater's picture

As long as we are trying to think for ourselves and nut our way forward - a good start, we know there'll be no ideal but Ilove everyones thoughts.

OT

I dunno,  but I'm  just sick of being called a COMMUNITY - I am not in a freakin community, community is communism speak and it was not a phrase used when I was a kid, then it became "trendy" (magically trendy on all 3 continents I lived),

 

Tall Tom's picture

Through anecdotal experience I have learned not to interfere. There was this Gas Station Clerk. She was small. She sttod about 5"-0 and weighed about 110 lbs. She was a cute kiddo. Her 200 lbs boyfriend used to beat her. She had bruises on her arms the size of her arms. So I called him out. (Interference)

 

I broke up that relationship but she just found another to where the abuser tore her ear from her head. I made things worse for her ultimately.

 

There are NO POLITICAL SOLUTIONS. The change must come from within and individually.

 

When enough people awaken then the change will happen outside.

kareninca's picture

You are right, given the present dispensation.  We are encouraged to intervene ("oh, why did those evil people not intervene in the Kitty Genovese case")(yes, I know it was largely invented, but it is still taught reverently in social psych classes), and people wonder why others don't intervene.  But the reality is, intervening is often punished brutally.  I have never seen a social psych study re the crappy things that happen to intervenors; that's because they wouldn't like the results.  At least in your case you didn't get directly harmed (by the abuser, by the state); one often does.  I'm not saying one should never intervene, but it's not easy or straighforward these days to do it without dire consequences.

edwardo1's picture

"Okay, there you are on your self-reliant, self-sufficient bit of land. And you wander over to the edge of it, and there's your neigbor beating the pulp out of his wife/kid/dog."

You've just described the scenario that Putin used as an excuse to take The Crimea. His action doesn't stand up well at all when viewed in that light. It's one thing to intervene on behalf of the wife/kid/dog that is/are being abused and quite another to sieze the farm. One amounts to a legitimate effort to protect someone's life and the other is theft. It's not such a difficult sociopolitical hypothetical to navigate.

MachoMan's picture

I remember when the reporting laws came in, and people thought they were very intrusive.

They are incredibly intrusive.  For every legitimate sexual abuse victim that gets discovered through mandated reporting, there are 50 other families ruined and placed on the legal treadmill for complete nonsense.  [not sure how many mandated reporters you talk to, but if they're anything other than automatons, they'll tell you the horrors of the system].   Further, without mandated reporting laws, at least the victims got medical help...  now it's reserved for only the worst of situations (or when abusers are too dumb to know any better).

You're missing the fundamental premise of conservativism, humility.  It just might be that I don't know what's right for you.  Further, so long as you bargain with the state, by giving up your rights (e.g. privacy), the state has a tendency to not only perform a scortched earth mission on the intended target, but also mission creep.  It's one thing to advocate private intervention, it's another to cede rights to the state.  If you suspect that society will naturally work out a way to handle these sorts of things privately, then why is there a necessity of the state in these situations?  It's inconsistent to even suggest it.

PS, just because mandated reporting hasn't been around forever, that doesn't mean that medical or other professionals didn't see to it that these types of things got remedied...

PS2, tyranny is something in excess of the natural consequences of one's actions...  and, frankly, can only be imposed by the state.  If you classify sexual abuse as merely "abuse," then why would beating the hell out of the abuser be anything more?  Just the natural consequences of one's actions.

kareninca's picture

I take it that you didn't read my second post.  I am no fan of the nanny/police state.

I do think that you underetimate how often hideous things happened in the 50s-70s, and how hidden it was.  My mother taught elementary school for many, many years.  She didn't see any abuse in the kids she taught.  However, years later, she would learn from the kids (it's a small town) what they had endured.  She has told me of a surprising number of cases.

In small old-time communities, there were ways of dealing with this (not great, but they existed).  It was post WWII, with growing population and anonymity, that things were really bad:  1950s-70s.  The doctors didn't know the families, and they didn't want the misery of making a fuss.  The cops had no interest.  There were no good ways of proving anything.  People often blamed the victim (incredible but true; I've seen it even where the victim was a kid).  Those doctors who treated our friend know what was going on   -  but if they had made a fuss they would have looked bad, and they probably figured they couldn't change anything.  Unfortunately that is a very, very typical modern reaction to abuse, when there is no reporting system  -  to try to deny it to oneself.  Oh, it's not so bad, if I don't think about it it will go away.  It's like someone coming upon a 3/4 dead animal on the road; the instinct is to just run away and try to not think about it.

What we have now is terrible; mindless and destructive.  But it is important to admit how bad things were, and why this stupid system we now have, seemed like a good idea.

Overfed's picture

The problem with government intervention is that it never stops. It just keeps increasing forever.

Anusocracy's picture

You are dealing with people who are not fully human. The best thing to do is to ostracize and isolate them. Let their shitty genes disappear from the gene pool or you will have assholes like that around forever.

There are 7+ billion people on earth, saving the savages amongst the population is just enabling the continuation of their kind.

Let them die out or be killed. After all, that is what allowed civilization and human behavior in the first place.

kareninca's picture

Unfortunately the parents in this case produced a nice big brood, who have gone on to reproduce vigorously.

Our friend is the kindest, most decent person imaginable; a bizarre exception in a loathsome milieu.

Anusocracy's picture

Iceland existed for several centuries without government.

They did have a law-keeper, though.

Eventually, Norway infected them with the government cancer.

DoChenRollingBearing's picture

UselessEater

I am trying to prepare in lots of other ways too, survival stuff included.

Also, I dropped the alcohol.....  Spiritual strength matters too.

UselessEater's picture

I mean preparing for an opportunity. It may not be one we like or agree with and we may be tired and just want to rest, but out of the shite opportunity still going to be there in some way, some shape or form.

All this knowledge of the shite to come is not just for hunkering down in fear of neighbours and government attacking us ad infinitum, surely not? Its got to also be about using our awareness and understanding for preperation to explore and entertain new possibilities - granted we did not ask for the change but its coming and first movers always seem to find a creative path.

To be creative in any small way is to be alive beyond programming, it can potentially give you and me new solutions or actions? It maybe something that goes beyond harking for what was and what should be and instead take us to what we can make of this new world thats coming at us?

I am just throwing thoughts around ;)

GeorgeHayduke's picture

I think there are small communities scattered around that are preparing for the opportunities ahead. It's more about learning skills and how to function as a community than about flinging as much lead as possible (although folks who think like will have to be dealt with at one point). Amish and Mennonite communities wouldn't likely notice a major economic collapse except for the possible stragglers they might encounter. There are likely others who aren't as religious doing the same thing. Finding them may not be easy as they likely don't want all the asshole opportunists knocking on their door when things get dicey.

UselessEater's picture

Certainly last come'rs are less welcome.  I'm thinking the options may not be agrarian or perish. The skills we can build while being self-sufficinet to the degree that's possible surely have to include the net, 3d printing and other such capabilities - P2P maybe the new rural community for crowd sourcing and all that stuff I'm baffled by.

I realise you're not suggesting we return to Amish lifestyle, but - should we consider that as possibly the "only" option without taking advantage of the self-made tech around us we're severly limiting our options and possibly falling into a well laid trap.

A shift in our thinking is required if we're to ensure future independence - I suspect its a pretty big shift.

Just pondering....who knew my navel was so fascinating?

(sarc expression about 'naval gazing')

Apostate2's picture

DoChen. I have had three martinis. I have had ENOUGH. My spiritual sense says praise the Lord, do no evil and love the folks even if they know not what they do.

Malachi Constant's picture

Stacking... protecting... emerging system... cooperate...

What for?

What is the long-term goal? OK, you won't die today because you have Mountain House and 7.62. Great. You won't die tomorrow because of some other reason. All of this effort, investment, struggle - to what end, exactly?

Let's say will have managed to spend a respectable chunk of decades on this planet - but what's the goal? What's the achievement?

"I lived to 190, accumulated a massive stash of shiny shit that allowed me to keep the stash of shiny shit and then I died as naked as I was in the beginning".

This is what survival nutship is about: accumulate shit for the sake of accumulating shit.

Because in the end no one survives. No one knows what will happen and when. But we waste our lifetimes in preparations instead of living.

Do what you want.  Do what YOU want. There are no rules other than gravity, thermodynamics, etc.  This is your purpose: to learn not to lie to yourself. This is your program. You are alone, everyone else is a script. You lost everything the moment you were born.

UselessEater's picture

huh? Sir I think I misunderstood you so forgive me if I mentally respond with wtf? I get the idea of not accumulating shit (though why the fuck not enjoy your labours?).

If one fully subscribes to the "You are alone, everyone else is a script. You lost everything the moment you were born." meme then I am very interested in your actual journey and/or thought process (we all have theories). Its a hard core life lesson to realise how to go back to being an individual, an intimidating one but there are others... so the question becomes how to move this forward? From an econ perspective.

 

Malachi Constant's picture

>> why the fuck not enjoy your labours

Why the fuck labour in the first place?

I did not choose to be thrown into this jail. I don't like that I have to live by somebody else's rules: I can't fly, can't travel back in time, can't breathe under water, can't change my body, can't go without food for a month, without sleep for a week.

This is what _I_ want. And what am I offered? Food. Food that I have to fight for. Just think carefully: I must fight for food in order to secure enough energy so that I can fight for food tomorrow.

If whoever threw me into this world cares about me, they will show me a way to happiness. (Hasn't happened in 40 years, but who knows.)

If I am here by pure chance, then there is even less point in doing anything.

I can "buy" a house - but it will belong to the bank and to the city. I can "make money" - but it's Bernanke or whoever that decides how much I have. That is, what's left of it after I pay my annual protection racket fees.

I can't stand the feeling of not being free. I can't buy into the "ownership" fairy tale, because I know that nothing is mine.

It's not worth it. I have seen a beautiful mountain = I saw them all. I had sex once = I had all the sex in the world. I ate a delicious meal = all right, all right, I can see the pattern.

I am a hamster in the cage; a character in a computer game; I cannot leave the track. I cannot pretend that I am happy about this track - I hate it because I did not choose it. I refuse to care where it leads, because wherever it is, it wasn't chosen by ME.

I am a slave. I did not choose to be born. I did not choose to eventually die. I did not opt for hard labor for being able to experience the joys of hard labor day in day out. I don't want it.

BUT!

1. Being alive is more interesting than not existing at all. Even as a character in somebody else's game - it's more exciting than non-existence.

2. Letting things happen, without even pretending to be a factor in their flow, is more exciting than pretending to know what you are doing. The result is unpredictable in both cases, but I am relaxed and calm when things change.

All that's left for me to do is to help people around me who think they are free. If I cannot be happy, I can at least help others be happy without judging.

If I can't have what I want, the only way out is to get rid of the part that does the wanting: the self. I want to make sure that for you and anyone around me the world with me in it is better than the world without me. If you can enjoy this world, I'll try to help you enjoy it.