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PBOC Pressures USD Hegemony; Starts Yuan-Denominated Gold & Oil Trading
With 23 foreign central banks diversifying from US Dollars to Renminbi and the PBOC actively aiding numerous major financial hubs around the world with bilateral currency swap agreements, it seems yet another nail in the coffin of US dollar hegemony just got hit...
- *PBOC AIMS TO SET UP GLOBAL PAYMENT SYSTEM FOR YUAN: SEC. NEWS
- *PBOC TO MAKE GOLD, OIL FUTURES YUAN DENOMINATED: SEC. NEWS
Nothing lasts forever, no matter how much you believe...
PBOC plans to start yuan-denominated gold and oil futures to help establish a global payment system for the Chinese currency, Guo Jianwei, deputy director of the second monetary policy department of the People’s Bank of China, is cited by Shanghai Securities News as saying.
PBOC will continue to push reform of interest rates, exchange rates and the capital account
The pace of Renminbi use is accelerating...
"In the first quarter, the RMB settlement of trade in goods amounted to 1.0871 trillion, accounting for the proportion of total import and export customs of 18.4% over the same period," said Guo Jianwei, 18.4% and 11.7%, two figures, hidden vitality, accounting for just three months time improved 6 percentage points, indicating that the use of the renminbi is growing internal demand.
It seems the level of interest in diversifying away from the US Dollar is growing...
At the end of last year, China's total with 23 foreign central banks or monetary authorities signed bilateral currency swap agreements, the total size of more than 2.5 trillion yuan.
Recently, the central bank after another with Britain and Germany signed a memorandum of agreement RMB clearing and settlement central bank, the European offshore RMB business to accelerate.
It is noteworthy that, in addition to London, Paris, Frankfurt, Luxembourg, Singapore, striving for offshore yuan trading center with only the United States "sitting on the sidelines."
The goal seems clear...
"Renminbi is a new bright spot in the next cross-border RMB business development." Guo Jianwei, said the central bank will continue to advance the future of interest rates, exchange rate reform, capital projects, and expand the range of RMB payment using to promote the yuan-denominated policies, thereby establishing renminbi The global payment system and so on.
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Hah ha ha ha ha ha
Happenin' on guess whose watch?
The "It's Bush's fault" Guy
This is what you get for a trip to Asia and not even dropping in to say Herrro.
' Forever' is as long as you are alive.
Must have been tough for the rich alive during those transtion periods
“Suspicion toward a currency, once awakened, develops insomnia.” - James Dines
“The fate of a nation is inseparable from the fate of it's currency.” - Milton Freidman
“Gold and economic freedom are inseparable.” - Alan Greenspan 1966.
“In effect, there is nothing inherently wrong with fiat money, provided we get perfect authority and God like intelligence for kings.” - Aristotle
“All paper currencies are toilet paper, the dollar is simply two ply.” - Thomas Caplin
Greenspan reminds me of Brittany Spears. He was once an innocent mousketeer type that grew up to become a whore.
Now THAT is a visual concept just begging for the talents of WB7. Though I suspect it would give me nightmares.
Although reserve currency status offers benefits, long-term it is a trap for the Chinese.
The dollar being the world's reserve currency has enabled the country to live beyond its means and not have to work hard for generations. I've come to see the dollar as part of the reason the US has lost it's work ethic and with that what made it great (after working in Asia for serveral years, there is no comparing the US IMHO). Of course now that the US is dependant on the petrodollar, losing it will cause significant damage since I think most of the country does not know how to live without it.
If the Chinese are smart they will not position the yuan as a reserve currency, but move to make gold or something international the reserve currency. Otherwise their future decendants will grow lazy and leverage the yuan to live beyond their means (as every other world power has done) and in the process lose what this generation worked for.
Oil paid in Yuan can be converted to gold bullion on the new Shanghai free trade zone gold exchange:
http://www.scmp.com/business/commodities/article/1450182/gold-trading-open-foreigners-shanghai
Petrogold.
This is the problem of using the Yuan as a reserve currency separate from the USD. It is currently pegged to the USD with a little wiggle room. This still indirectly results in the USD as reserve currency. Does it not?
China got away with horrendous economic policy by piggybacking onto US debt serfs. Remove the peg and the Yuan will crash with the dollar not far behind.
With defacto Yuan convertibility to gold, it will send the Yuan much higher.
And gold much, much higher if it is to play a meaningful settlement role in the oil trade.
Daily global value of oil produced is 30x the daily value of gold produced.
Finally it will result in selling of Treasuries and USD as USD will play a lesser role in oil and other trades.
Expecting a heavy sell-off in tech stocks and other levered equities.
Bingo!
Exhibit A: http://www.reuters.com/article/2014/04/24/cme-gold-asia-idUSL3N0NF2D320140424
Exhibit B: http://twoshortplanksunplugged.blogspot.com.au/2013/05/gold-weak-hands-shake-out-terrence.html
Exhibit C: http://twoshortplanksunplugged.blogspot.com.au/2013/10/gold-us-sovereign-coup-detat-and.html
Nuff Said!
Very true. I see the same in oil rich Gulf countries. I know they don't have a reserve currency but it's the same pathology, easy money for something you haven't worked for. The native population is lazy, want the best jobs without getting any qualifications, study of hard subjects like SET almost unknown.
Hyoperinflation killed off several Chinese dynasties. I think they are very aware of their history.
Ludwig van Beethoven - Funeral March
http://www.youtube.com/watch?v=vmm2k4fRUO4
the end of the U.S. petro-dollar and world reserve currency status will come one day soon.
You can deny reality...but you can't deny the consequences of denying reality ~ Ayn Rand
Keep stacking the phyzz, folks! It's still on sale, believe it or not, and it's the ultimate insurance against the destruction of the U.S. dollar.
Grab a roll or 2 of Buffaloes today and have a kick ass weekend!
I bought 2 rolls this week when they sent it down in the low 19's.
No target date, not even a hint at a timeline. BRICS bank has been in the works for 6 years, still no bank. Hope PBOC can do better. Doesnt take a decade to create a futures market, especially when you have 1bn+ customers ready with cash in hand.
July was already released/This is rehashed news mostly to
generally fart in Obozo's direction, and diminish him further in the worlds eyes, if that possible.
This summer is game on, bet they start on the 4th of July,
just to rub it in.
Not being pedantic, but it won't happen in a day or anything like it. It will be a gradually accellerating process.
W/r/t your handle, take cheer. The dollar's demise will force the average honest productive American to take matters in hand once again. Nothing less will do it.
All the major currencies of the world are grabage: Two Types Convertable Garbage: JPY/GBP/USD/EUR and Incovertible Garbage: YUAN/RUB/BRL/INR. Add how much those currencies represent of Global GDP and you will see that for the vast majority, the exit doors are locked.
That said, I have no doubt between the two world will side with Convertible Garbage in a heartbeat. Do you really want to buy Yuan? or Ruble at this stage of the game? Maybe you should have your head checked alongside your loss tolerances.
i much prefer Gold over any incovertible currency.Bouhgt Yuan several years back and making good money. Thank you.
I am something of an Aristotelian scholar, and I dispute the authenticity of that quote. I have never seen any source where he said something like that. It is not his style in any case, and besides that it contains an anachronism. "Fiat money" was not a phrase in use c. 300 BC. Lest anyone should object that the appearance of the phrase here may only be due to some liberality taken by the translater, I reply in advance that Aristotle would certainly have been familiar with the concept of debased coinage, which answers to the modern notion of fiat currency; and had he meant that he certainly would have said so, and there would be no reason to translate his words otherwise. But even that being stipulated, Aristotle never would have said there is nothing inherently wrong with debased coinage. He would have called that an instance of trying to buy something with nothing, a most pernicious crime.
The principle can be argued on other grounds, but it should not be attributed to Aristotle.
Umm, it was Joe Aristotle, a contemporary of Onassis.
Gold comes pretty close to lasting forever...
Don’t forget to diversify your portfolio. Holding dual assets can give you better odds. Winks
Silver is the Achilles Heel
Yah, and a "Don't let the door hit you on the way out".
As always, listen to the actions not the words.
This is a pretty big FU.
And it also aligns with Russia at a critical juncture.
Your move western Oligarchs................
Your move, 'tribe'.
Is this it? http://www.jpost.com/Jewish-World/Jewish-Features/At-Putins-side-an-army-of-Jewish-billionaires
So now what does Uncle Sam do? Pick a fight with Russia AND China? Yeah, that'll work out.
What exactly did these megalomaniacal motherfuckers think would happen? Or is this EXACTLY what they thought would happen? Are we witnessing the self-inflicted destruction of the dollar?
As the "global currency" chart shows, it had to happen someday.
As long as TPTB have a proper scapegoat in place, they'll be happy to survive the collapse.
We can only hope that it's only a collapse we have to survive.
General Curtis Lemay and the Joint Chiefs were ready to go full retard in '62.
We could still denigh it for a couple more years and nothing would change.
With the balance of what this administration has accomplished over the last 5 years, I would say this is all part of the master plan...
Herro, Prease... :O)
http://www.youtube.com/watch?v=N-swKhTc0A8
Seems like the Indian media predicted this about 2 years ago.
http://articles.economictimes.indiatimes.com/2012-04-12/news/31331043_1_...
Meanwhile, Beijing started oil trading in petro-yuan in Nov 2012: http://news.xinhuanet.com/english/china/2012-11/29/c_132007999.htm
In April 2013, another oil trading exchange in yuan was created. http://english.people.com.cn/90778/8226692.html
Way back in 2011, Russia and China started trading in yuan and Rubles respectively which is not mentioned anywhere and is hard to find. http://en.ria.ru/business/20110623/164798920.html
Today Apr 25, 2014, Shanghai FTZ will allow many commodities to be traded in yuan. http://www.bloomberg.com/news/2014-04-25/shanghai-to-allow-raw-material-...
According to this research, fears of property blow up are exaggerated. http://www.asiasentinel.com/econ-business/overblown-fears-china-resident...
In the next 5 years, China's outbound travellers will exceed a gargantuan 500 million trips: http://www.travelweekly.co.uk/Articles/2014/04/24/47776/wttc+summit+chin...?
Watch out for the Chinese buying your entire neighbourhoods....they were stopped in Australia, Singapore and Canada, so now they have entered Dubai and NZ. http://online.wsj.com/news/articles/SB1000142405270230415720457947538337...
http://www.opp-connect.com/07/04/2014/new-zealand-now-among-top-chinese-...
As well as buying all of London and NY. http://www.shanghaidaily.com/business/real-estate/Chinese-No-1-buyer-of-...
http://www.ibtimes.co.uk/london-property-boom-how-chinas-investment-inva...
The Chinese will become the biggest owners of everything around the world in the next few years. All our rents, purchases and spending will end up as savings and profits of Chinese companies and our Chinese masters. In 2001, 215 companies from North America were in Top 500 global companies as per Forbes Global ranking, today only less than 140 remain. Perhaps, in 10 years, less than 100 will remain. Meanwhile, in the Top 13 companies worldwide, 4 are now Chinese while 5 years ago were none!
From USD 18bn pa in 2005, the Chinese have invested USD 132bn in 2013 alone, outside of China and are earning an average of assumed 5% to 7% pa on such investments which is draining the rest of the world and making China even more stronger. http://www.heritage.org/research/projects/china-global-investment-tracke...
Regardless of what anyone says, the Chinese own close to USD 6 trillion in overseas assets. http://news.xinhuanet.com/english/china/2014-04/04/c_133239278.htm This has never happened in the history of the world where one country owned so much outside its borders. At an assumed 5% pa return, a ridiculous amount of USD 300bn moves just as savings and profits from all the employees working globally for Chinese companies, back to China.
Foreigners have invested a cumulative USD 2.35 trillion in China as FDI. If Chinese yuan goes down, it hurts all the global companies whose asset values decline accordingly so by wishing for yuan to going down, we are in fact hurting ourselves.
We are now inside a Chinese trap instead of a US dollar trap and increasingly entering the stomach of the dragon instead of thus far remaining in the mouth of the dragon!
"bye, bye Miss American Pie..."
still stackin...ya'll better be
T O O.........................
Theme song for Federal Reserve Notes? Notes, get it? Ha-ha...
The dollar should have made it until mid century. But it looks like the Mack daddy has sped things up a bit
Well, he is a long-legged mack daddy, which means he was able to get to the end quicker.
Is it time to start buying (and going long) the Yuan?
Not lately.
Seeing the magic the Chinese can do with leverage I don't think the Yuan is going to make the cut as the next reserve currency.
The way things are going I am thinking seashells or dung, depending on whether I am optimistic or not.
pods
Seashells have been tried before. I am putting my bet on dung. I like dung...because I can make it myself.
Seashells can be ground up and used as calcium for chicken nutrition and dung is often burned.
So both have value in a collapse situation. They will not go to zero like Fiat.
If they could only get about 5 cents a pound for bs, the US national debt could be cleared away pronto...
Same thing we do...they have dollars but we just keep printing more and more....they want to to the same thing..except this time we hold the Yuan and they print more and more...the first trickle of the trickle down is the winner..the last guy holding it is the one who gets hit with the inflation..or the devalue
I could use some scrambled eggs right about now.
Can I co-locate my HFT computer in their exchange?
who knows? I doubt the Yuan will be the next reserve currency. More likely an SDR basket of currencies. Gold is a better bet.
I do it through my Bank of China rmb savings account. I've gained 20% through arbitrage since 2007. I don't know wtf is going on now? I think the PRC is trying to drive people back out over the last few months. It went as low as 6.04rmb/$ and now it's 6.25rmb/$??????? My first trip to the PRC I got 7.8rmb/$. China is not so cheap any more.
I converted about half my holdings back to dollars in the last few months.
I am amused to death. This helps...to see how it will all come about, no? FRNs are dead.
https://www.youtube.com/watch?v=BUbxZHQcOTs
Roger Waters Live, Amused to Death.
Roger had it pegged a long, long time ago... What god wants, god gets............
God help us all...
Looking for a good and ever timley read?
Neil Postman's classic:
http://www.amazon.com/Amusing-Ourselves-Death-Discourse-Business/dp/0143...
One of the greatest musical achievements of all time.
And so began the Third World War... The Nuclear War... Anyone else getting scared yet?
Have been for a while.Not for me, I'm already twenty years past the 'sell by' date my deceased doctors gave me.
Kids ,and grand kids is another matter.
Not at all.
We have been watching the same European plutocracy families trying to overtake the US since the Euro currency was formed. They realize their scripted drama production is approaching an expiration.
Really getting kicked while down. Does Mr. Lew need to have some words with them too?
I do not fear death, but would mourn for those who never experienced life as it was meant to be.
Ya gotta go, ya gotta go....
It's all kabuki theater... Unfortunately many will die to appease the megalomaniacal banksters lust for power...
I worried through Reagan's 8 years about nuclear Armageddon but, now I don't give a crap. At least I wouldn't have to sweat the endless student loan payment. Bring it on!
I think Moss-ad will nuke Chicago next and blame it on Iran. I never liked Chicago much anyway.
Finally a plan to reduce the gun violence in the windy city
that will work.
good show folks.
Be sure to buy a big mac with supersized fries on your way out.
Lights out, America.
Well, it's not over `till the fat lady sings.
or fat man... http://en.wikipedia.org/wiki/Fat_Man
Well done Obozo.Mission accomplished.You pushed China off that fence.
Not really news though,I had already heard all this, plus the start date is in July.
Isn't this story just a "prediction" until it is approved by Goldman?
Didn't Disney World try this
So a whimper. And not a bang. ????
I hope, but that would be a first.
Think of it as a fuse being lit. Not much to see until the end.
And some people on here don't think this shit is escalating? ARE YOU FUCKING BLIND AND DEAF...we just has 3 major announcements today alone the tell things are going batshit!!! fuck< I won't sleep well this weekend...
Maybe you are new to the anti-hopium den, but there's been 3 major announcements every day for the last few decades now that "things are going batshit".
Don't worry, the anti-hopium effect eventually wears down.
Ha ha ha,
The US bully thought it could get its own way and print and print and print..
That's what you get for issuing too much toilet paper........
Time for a Golden Jackass update:
Jim Willie: The Climax Finale of the Petro-Dollar to Arrive in 2014!
http://www.silverdoctors.com/jim-willie-the-climax-finale-of-the-petro-dollar-to-arrive-in-2014/
Time to mainline the red pill with Jim Willie.
Jim Willie kicks ass...you know it, lol
First he send Michelle and her rude mama to China, the n he visits everyone China is on conflict with, announcing his support for Japanese claims on the disputed islands.
China and Russia are obviously moving against the dollar. This was made clear about a month ago (I think - or maybe a bit sooner?) when China expanded the trading range on the yuan and instituted currency controls. It may not be exactly the opportune time they were waiting for, and I'm sure both countries would have liked to firm up their domestic positions first; but something is forcing their hand, and they've decided that if they're going to go ahead with this, it has to be now. We can speculate on what that 'something' is, but we need not know precisely what it is to infer the upshot. In the eyes of Moscow and Beijing, Washington has become a threat to international stability. They think the time has come to permanently weaken the United States' position in the world. They would not have been able to move on this if that consensus wasn't broadly shared amongst a majority of the other important nations. The rest of the world sees the Emperor's nudity. In other words, they are not crazy - we are. We are the suckers at the table. This simply does not look good at all; and although I've never been a votary of wilful ignorance, I almost have to tune it all out to go on functioning, so ominous does it appear in my mind.
From fascist crazy bankers paper false promises to a semi-commy floating pig pump currency is not the 'new deal' i was looking for.
China and Russia made a move on the dollar when the BRICS were formed,....
Gold and Yuan? Fail.
Again, what part of ALL fiat goes to zero don't they understand?
The grams per yuan cannot change at the whim of the chinese state and it must be fully deliverable, otherwise a non-event.
I still think the BRICS will bring out a NEW gold backed currency.Away from any tainted national one.
A fresh start away from everything.
Its the only logical thing to do.
Optimist, because everything I have seen indicates that they want commodities "to be priced in yuan" in order to control the price and flow etc., just like the Fed has done.
Again, as a farmer who sells stuff to places like China and Brazil, settling trade accounts in Gold, silver, or oil/diesel sounds fucking great to me, but when pressed none of these fuckers want to do that.
So, war it shall be.
They might want that but because of the abuse of
GRC by the US, I don't see anybody going along with another for decades, if at all.
Wiley might be onto something with the gold backed trade
notes , with national currencies alongside.
This is a work in progress,lets see how it develops.
Agreed. Good to hear that you out lived a doctors life cycle diagnosis. You’re blessed by family and strong willed.
China wants to take over the paper world, it's like they try to get into the rollercoaster just before the screaming public enters the dark tunnel at full speed.
and this is exactly the reason the US needs a war!
Reserve currency status is such an enormous advantage to a global empire that it is never given up without a struggle. The peso, the guilder, the franc, etc. didn't yield until after significant military losses.
Nixon foresaw this back in 1969.
I guess they were not kidding when they said they would just "kill the dollar"
I don't think Kyle Bass was lying at all:
https://www.youtube.com/watch?v=ILKolTI1s50
Senior Obama Official Says "We Are Going To Kill The Dollar"....got phyzz silver???
Fucking Bernanke. Why'd ya have to print so much.
Meanwhile here in the US the FED makes plans to mint its first Trillion Dollar Coin.. It has been decided to be minted in platinum with the new National Symbol on its face...The DEER!
Fall of the Roman Empire
http://www.rome.info/history/empire/fall/
Wash, rinse, and repeat.
The whole concept of a 'reserve' currency or 'reserves' is complete socialist nonsense anyways. How many billions, if not trillions worth of wealth has been confiscated from Chinese and Japanese citizens to buy US treasuries and support profilgate US spending, wars, etc.? Why do their domestic citizens tolerate such? Any country that produces more than it consumes does not need a net positive "reserve" balance.
I'd be worried if TPTB were entrepreneur types, they could make the master plan come close to whatever this nebulous plan may entail. An automaton corporatist or bureaucrat has been schooled in gross dogma which doesn't hold up to today's rigorous changes. We ain't seen nothing yet, I do believe.
The net is they will kill their golden goose. I personally don't care, we good guys weren't cut into the pie anyway.
It's natures way of flushing the shit. The bad part comes when the destroyers of this country have wiped us out, loaded their wares and pursue their next John wanting a dirty whore to show them how to loot their country.
This country is gone with no prayer of salvaging any of it unscathed. An entitled culture will revolt when the goodies are cut off. It won't be cut off until the fiat starts resembling Zimbabwe.
We deserve everything by allowing the two parties to play tag team on us and we keep reelecting the pricks.
http://www.ecb.europa.eu/pub/pdf/scpops/ecbocp77.pdf
Still waiting for the explanation of how the entire global economy and its participants are going to all of the sudden have complete faith and trust in China and how China behaves when it comes to finance, economics, accuracy, and reporting. I know, I know the U.S. is maybe even worse but I still don't see how the whole ecosystem and the humans involved will just blindly trust China or Russia. The issue is trusting humans in general. been there, done that.
It is easy to trust a barrel of oil, a bushel of corn or a loaf of bread. But not usurers, counterfeiters, their enablers and their enforcers.
Yuan replaces USD as reserve.
LMFAO!!!!! sure, whatever.
Few are happy with the communist in the White House, but as fucked up as the US is, it doesn't come close to the gong show in China.
Trading in Yuan is about as stable as trading in shitcoin.
Oil will become cheap again, the carbon exchange fucktards will have to wait another twenty years to sell the same bullshit model. Al Gore will be dead by then. A new fashionable ringer will be telling our future society the same lies.
what is the source for this story? What is SEC. News? I cannot find any of these quotes on any other independent news site.
Nothing lasts forever is right and time waits for no one... history repeats its lessons until learned, and the school session has a beginning and an end.... or as nature puts it, 'night follows day'. How many are really ready for nightfall? just like in the movies, it's when the 'beasts come out' for some tasty treats.... in the meantime, it seems they'll have to stay on the same diet of blood and fear.