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"This Is A Trend": Increasingly More Russian Companies Set To Drop Dollar, Switch To Chinese Yuan

Tyler Durden's picture




 

As we have been reporting (and forecasting for the past several years), the Eurasian anti-US Dollar axis is rapidly taking shape, with recent events catalyzed and certainly accelerated by US foreign policy in Ukraine, which has merely succeeded in pushing Russia that much closer, and faster, to China. The latest proof of this came overnight when the FT reported that Russian companies are preparing to switch contracts to renminbi and other Asian currencies amid fears that western sanctions may freeze them out of the US dollar market, according to two top bankers.

According to Pavel Teplukhin, head of Deutsche Bank in Russia, cited by the Financial Times, "Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies and to set up accounts in Asian locations."

Andrei Kostin, chief executive of state bank VTB, said that expanding the use of non-dollar currencies was one of the bank’s “main tasks”. “Given the extent of our bilateral trade with China, developing the use of settlements in roubles and yuan [renminbi] is a priority on the agenda, and so we are working on it now,” he told Russia’s President Vladimir Putin during a briefing. “Since May, we have been carrying out this work.”

“There is nothing wrong with Russia trying to reduce its dependency on the dollar, actually it is an entirely reasonable thing to do,” said the Russia head of another large European bank. He added that Russia’s large exposure to the dollar subjects it to more market volatility in times of crisis. “There is no reason why you have to settle trade you do with Japan in dollars,” he said.

The chief executive of a Russian manufacturer that derives 70 per cent of its revenues from export in US dollars said his company had done the groundwork to move its contract settlements to different currencies in the event of further sanctions. “If something happens, we are ready to switch to other currencies, for example to the Chinese yuan or the Hong Kong dollar,” he said.

While the move to open accounts to trade in renminbi, Hong Kong dollars or Singapore dollars "highlights Russia’s attempt to pivot towards Asia as its relations with Europe become strained", is hardly surprising given recent events, one wonders how much of last night's sudden bout of renminbi strength may be due to Russian capital inflow. And while that particular move was certainly more driven by the PBOC and recent rehypothecated metal concerns pushing Chinese imports lower, the biggest question is how will Russian demand for the Chinese currency impact what has been a clear trend in recent months by Chinese authorities to weaken the national currency.

The punchline, again, is that what Russia is doing is merely the appetizer of what other G-20 countries, many of which already angry at the US over IMF voting power shennanigans, may end up doing in their own bilateral trade arrangements with China which suggest even further de-dollarization as the Renminbi becomes progressively more important on the global FX stage.

"It looks like this is not just a blip, this is a trend," said Mr Teplukhin of Deutsche Bank. He added that Russian companies were able to hedge the risk of further US sanctions by “changing the letter of their contracts to allow them to change currency if it is necessary”.

But perhaps most important are the next steps laid out by the Kremlin which has explained under what conditions it will "de-dollarize" more:

Some politicians have suggested Moscow should respond to western sanctions by entirely “de-dollarising” its economy. But while in recent discussions with big business about how to make the economy less vulnerable the government has advocated listing back home and settling more trade in currencies other than the dollar, it has rejected more extreme measures.

 

“As long as Russia is not subject to systemic sanctions, which could bring an artificial limit to our economy’s access to dollars . . . then I don’t think Russia will take any steps in order to bring about artificial de-dollarisation,” said Andrei Belousov, economic adviser to Mr Putin.

In other words, as we said all along, more western sanctions, more dropping of the USD. And now Russia has the trump card, because if it wants to show the world that the Russia-China axis does not need Uncle Sam's greenbacks, it just needs to be more "aggressive" toward Ukraine setting off new sanctions, and being "forced" to de-dollarize that extra bit more. Rinse, repeat.

 

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Mon, 06/09/2014 - 07:55 | 4836478 HamRove
HamRove's picture

US : MOAR SANCTIONS!!!!!

Mon, 06/09/2014 - 07:58 | 4836482 RafterManFMJ
RafterManFMJ's picture

US foreign policy - like a retard in a china shop.

Mon, 06/09/2014 - 07:58 | 4836486 economics9698
economics9698's picture

Fuck the tribe.

Mon, 06/09/2014 - 08:15 | 4836521 SWRichmond
SWRichmond's picture

let's see...who have we not pissed off yet...

anyone who cannot see that America is being deliberately dismantled does not have their eyes open

Mon, 06/09/2014 - 08:20 | 4836531 lakecity55
lakecity55's picture

"Backdoor Barry." What a guy!

Mon, 06/09/2014 - 08:33 | 4836572 GetZeeGold
GetZeeGold's picture

 

 

The most transparent president.......EVA!

Mon, 06/09/2014 - 08:36 | 4836578 Badabing
Badabing's picture

This is all related, the Chinese need to unwind the copper and aluminum paper fraud so commonly used by western banks for price control.

To do so they need to spend currency, do you think China will use the Yuan when they hold a trillion in $?

Is it the Yuan that’s strengthening or the Western Reserve Currency weakening?  

http://www.zerohedge.com/news/2014-06-08/pboc-hits-panic-button-strengthens-currency-most-20-months

“This is a Trend” I suggest we start using the Yuan also….. oh wait!  

What else can we use?

Mon, 06/09/2014 - 08:51 | 4836602 THX 1178
THX 1178's picture

The petrodollar meets it end.

Mon, 06/09/2014 - 09:06 | 4836644 philipat
philipat's picture

Next step, China, as the world's largest importer of crude, goes to the Saudi's (Who are already pissed off with the US) and says, "Hi King, as the world's largest importer of crude, we would like to pay you in RMB". Thanks, we thought you would see it our way....

Mon, 06/09/2014 - 09:11 | 4836660 Winston Churchill
Winston Churchill's picture

Already an inked deal.

Just waiting on the Shanghai FTZ to be up and fully running.

Mon, 06/09/2014 - 14:31 | 4837860 Harlequin001
Harlequin001's picture

We are now unofficially back on the gold standard, but this time without a UK bank 'Fix'...

Mon, 06/09/2014 - 10:03 | 4836849 Citxmech
Citxmech's picture

And the response to that just might be a renewed Arab Spring in Saudi maybe?  Why do y'all think we're cozying up to all these shit disturbers anyway?  They are our new army of bezerkers.  Not very controlable - but useful, nonetheless.

Now, if one of our carriers off the coast gets vertilated with a Sunburn from somewhere - that'll might be a gamechanger.

Mon, 06/09/2014 - 10:55 | 4837038 BorisTheBlade
BorisTheBlade's picture

China can both pay in RMB and USD. In fact, China might become alternative supplier of USD to any craving it for any reason, they have nearly 2 trillion of those.

Sanction this.

Mon, 06/09/2014 - 10:09 | 4836725 _ConanTheLibert...
_ConanTheLibertarian_'s picture

I love the smell of burning petrodollars in the morning.

Mon, 06/09/2014 - 09:16 | 4836677 Eeyores Enigma
Eeyores Enigma's picture

It matters not what currency all these announcements choose. Everything in the world is priced in DOLLARS!!!!!!!!!!!!!! even all of these other currencies.

After we have another world war who ever wins (as if) can set the rules for all the other countries. Lets see..... who has the biggest military.....times 10?

Mon, 06/09/2014 - 10:14 | 4836888 Peak Finance
Peak Finance's picture

That's not how it works. 

PRICE does not matter.

IF you are a country and you have to pay for something in dollars, you need to somehow get your hands on those dollars in order to pay your bills, you need a foreigh income in USD (swaps and such) or you need to buy dollars on the open market.

If you are going to pay (settle) in RMB, this means that you do not need to buy or in some manor get your hands on USD at all, which drops net demand for the dollar. 

That's why all of these stores are such a big deal, it's a chipping away at the need to use the dollar.

About the comment on war, well, we are completely broke. So, iF we go to war, we go to war financed with printed dollars, and it all just comes down that much faster. Plus, iF it't not really clear now that the military is a paper tiger then you have not been paying attention. 

Mon, 06/09/2014 - 10:20 | 4836919 Government need...
Government needs you to pay taxes's picture

Agree on the military being a paper tiger.  As soon as drones were pumped as the next big thing, I perceived our military was rapidly weakening.  Drones can't hold ground.  They are cheap, and most are slow.  The US is losing its space capabilities as well.  Perhaps it is for the best, our leadership couldnt recognize the moral high ground if they happened to be standing on it (which they haven't been for a LOOOONG time).

Mon, 06/09/2014 - 11:32 | 4837152 angel_of_joy
angel_of_joy's picture

Drones are just the Iphone equivalent of the US military technology...

Mon, 06/09/2014 - 12:03 | 4837257 DaveyJones
DaveyJones's picture

I can't believe an empire would end by running its currency and military into the ground and having everyone hate it.  

Mon, 06/09/2014 - 10:45 | 4837006 headhunt
headhunt's picture

The flip side is that China does not want to strengthen their dollar (RMB), this undermines their ability to manufacture and export. It is more important to them that they maintain their strong internal economy then to help Putin get even with the USA.

Putin is alone on his economic gangplank and does not know it.

Mon, 06/09/2014 - 11:51 | 4837220 Panafrican Funk...
Panafrican Funktron Robot's picture

You are thinking inside a box of obfuscation.

It's this simple:  to the extent that you control energy, you have geopolitical power.

Now think through who controls what/how much domestic and international energy resources.

Mon, 06/09/2014 - 14:32 | 4837861 headhunt
headhunt's picture

Ah energy... the porn of economies.

If you can monopolize the energy needs of your neighbors you can set your price and bully your neighbors - for a while.

Mon, 06/09/2014 - 13:56 | 4837675 SDShack
SDShack's picture

Your scenario ONLY works if the trade involves USSA dollars. China has effectively become strong enough on their own to cut out the middleman. If you set up direct trade agreements between the buyer and seller (neither in this case being USSA), then you can dictate the transaction in only those currencies. The trade happens outside the USSA dollar, so your entire premise falls apart. You are still thinking in a USSA dollar centric world... and that is soooo 90's.

Mon, 06/09/2014 - 14:11 | 4837767 headhunt
headhunt's picture

It is not my scenario but the physics of economies, China has no desire to have its currency as the international fiat dollar.

They would not be able to hold the RMB at artificially low values which enables them to manufacture and export to the world which keeps their economy vibrant, growing and more importantly their people happy.

With a strong RMB, things go to hell in a hurry for China and they would not allow that to happen just to please Putin. 

Mon, 06/09/2014 - 19:46 | 4838998 MeelionDollerBogus
MeelionDollerBogus's picture

There is no physics of economies.
You are a creature of faith & no evidence supports your assertions or projections. None.

With a strong RMB China buys up the resources of Earth and may have a 1000-year dynasty uncontested by America, Russia or anyone else.

Tue, 06/10/2014 - 07:24 | 4839880 headhunt
headhunt's picture

With a strong RMB Chinas manufacturing and export advantage vanishes and so does their income/profit.

No money, no 'buys up the resources of Earth' - there is a physics to everything in this universe.

Tue, 06/10/2014 - 18:21 | 4842131 MeelionDollerBogus
MeelionDollerBogus's picture

If you really think there are physics of economies you must back up this claim.
#1 equations
#2 solid physical evidence proving the equations, relations, laws & theories
To date what's been published has turned out to be nonsense. Chaotic unpredicable factors in distribution of prices, supplies, demand, creation of new inventions gone to market & loss of desire then for older technologies and/or resources, & changes of markets due to war, all have failed to be matched to equations, laws, theories as a "physics".

China doesn't want an export advantage. China wants an IMPORT advantage. They want resources IMPORTED more than anything else.
Income/profit is not to be measured in dollars, yuan, yen, euros, but in tonnage of copper, gold, silver, grains, and of course barrels of oil.
You've completely misread the situation.
Stronger yuan = buy ALL the resources of the Earth.
Export-advantage = NOT buying enough resources of the Earth.
Can't have it both ways. One must exclude the other in the fiat realm.

Even me with my scatterplots,
http://flic.kr/p/f5bHkJ
http://flic.kr/p/ikyjpz
http://flic.kr/p/kppK2Z
I have simply shown the relation of "how things are right now" not how they always have been (they haven't) or will be (they won't). And no one on here's been posting charts more advanced than mine.
Even the only other contributing editor posts I've seen with scatterplots has failed to break them down into time-windowed trends or has plotted things which have no relation (as visible in the plots) and then made a long article about nothing to follow.
Such scatterplots show only that there's no relation to use & therefore to conclude perhaps to ignore one or all of what was plotted to invest in OR to consider profit in each to be mutually exclusive over a specific time window.

It's on you to show your homework, data sources & math.
My data source for spreadsheet imports is http://www.freestockcharts.com as it permits CSV data export.

Mon, 06/09/2014 - 19:44 | 4838990 MeelionDollerBogus
MeelionDollerBogus's picture

China absolutely wants more purchasing power from their yuan. Absolutely.
What they don't want is to let US dollars get the better of them in the process.
This is how you get both jobs done at once: devalue utility & confidence of USD while raising yuan's purchasing power, which is definitely a top goal.
You're delusional to conclude the opposite.

Putin is not alone: he has most of the globe on his side economically, by land area & by populace.

Mon, 06/09/2014 - 19:42 | 4838979 MeelionDollerBogus
MeelionDollerBogus's picture

Nothing I pay for is priced in US dollars. Many places around the world locally reject US dollars.

You'll see this expand. you're delusional to think things are forced into dollars for us all. Delusional.


America does not have the biggest military. The most man-power is with the Chinese. The biggest nukes is with the Russians. Welcome to Hell: you thought you were the big kid but you're #2 at best.

Mon, 06/09/2014 - 11:31 | 4837149 turnoffthewater
turnoffthewater's picture

What did we do before the Bretton Woods reserve currency? Oh maybe, every country had to compete. What a novel concept. Amazing grace (no reference to the left or right or for the middle if that matters, ok?). Oh sorry, just amazing (thats for everyone)! Get in the soup line and don't talk, say anything or think freely (just feel grateful)

Mon, 06/09/2014 - 19:38 | 4838973 MeelionDollerBogus
MeelionDollerBogus's picture

Unleavened cheese on every platter!

Mon, 06/09/2014 - 08:11 | 4836511 NidStyles
NidStyles's picture

That is an insult to retards and Chinese shops everywhere.

Mon, 06/09/2014 - 11:58 | 4837246 BanksterSlayer
BanksterSlayer's picture

Unless the true agenda of of the Obama White House IS to destroy the dollar, as Kyle Bass told us long ago. If that is case, then the sanctions are working beautifully. 

 

Kyle Bass, January 2013:

http://youtu.be/7a4wxIUPq6o

 

Mon, 06/09/2014 - 19:36 | 4838963 MeelionDollerBogus
Mon, 06/09/2014 - 07:58 | 4836485 prains
prains's picture

US : FOLD !!!!!!!!!!!!!!!!!!!!

Mon, 06/09/2014 - 11:40 | 4837191 Freddie
Freddie's picture

Putin is a man.  Obama and American Democrat voters are worms along with the RINOs and their NWO bosses.

Mon, 06/09/2014 - 22:27 | 4839368 Seek_Truth
Seek_Truth's picture

"I will make those who are of the synagogue of Satan, who claim to be Jews though they are not, but are liars--I will make them come and fall down at your feet and acknowledge that I have loved you. - Revelation 3:9

Mon, 06/09/2014 - 07:56 | 4836480 buzzsaw99
buzzsaw99's picture

switch the the yuan which is pegged to the dollar. funny.

Mon, 06/09/2014 - 08:01 | 4836491 fonzannoon
fonzannoon's picture

Yes it is, I wish someone would elaborate on the impact, or lack of, of that.

Mon, 06/09/2014 - 11:29 | 4837138 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

buzzsaw hit on the head. The Yuan is pegged to the dollar. As long as that is true, the USD is NOT in trouble. Drop the peg, the USD will then be in trouble.

IMHO, the Yuan is worthless and built on endless debt with commodity rehypothecation as ZH has mentioned before. Let it float and it will turn into Chinese toilet paper.

Mon, 06/09/2014 - 12:09 | 4837275 Panafrican Funk...
Panafrican Funktron Robot's picture

The Yuan is artificially repressed by the USD peg.  A Yuan float would see a substantial reval higher in forex terms relative to the dollar.

Re: Buzz/Fonz's question, why does it matter, it still has everything to do with demand for the USD currency.  If demand for USD currency continues to drop, and demand for yuan continues to rise, even if the yuan is pegged to the USD, it's still a very damaging situation to the USD hedgemony.  Keep in mind that the pegging action does not mean that China then has to buy a bunch of USD in order to justify the pegged price.  What this does mean is that the multinationals will increasingly have to buy up yuan.  Summary:

As the flows move from the USD to the yuan:

1.  Both the USD and Yuan will drop in forex price relative to other currencies.

2.  China will see a very large increase in demand for their artificially low price currency.

3.  US will see a comparatively much smaller increase in demand for their low price currency.

4.  Effect:  Chinese printing will have a substantially more positive real economic effect (that is much more widely dispersed among the economic strata) on their domestic economy vs. US printing (which will concentrate further in HNW circles).

 

Mon, 06/09/2014 - 12:14 | 4837290 Panafrican Funk...
Panafrican Funktron Robot's picture

Note also that #2 creates tremendous pressure to reval the Yuan higher in order to stem domestic inflation, which oddly enough would just further boost yuan demand and subsequent inflation.

Mon, 06/09/2014 - 12:45 | 4837390 Matt
Matt's picture

I suspect the Yuan would be far more volitile. Without capital controls, trillions could flow out of China to be invested all over the world. The Yuan could tumble as easily as it could soar without fixed exchange rates. Especially if they have massive bail-ins.

On the upside, a situation like this shows that corporations would never allow one world currency, to allow a single central authority to determine whether they can exist or not.

Mon, 06/09/2014 - 19:33 | 4838954 MeelionDollerBogus
MeelionDollerBogus's picture

Trillions of yuan already flow out to invest in farms, mines, etc., around the world but it's the Chinese government doing it.

You'd have to compete with them for those resources.

Mon, 06/09/2014 - 12:54 | 4837417 headhunt
headhunt's picture

Sorry the economic physics will never allow the RMB to remain low if they are to become a settlement currency.

Mon, 06/09/2014 - 08:01 | 4836492 DaddyO
DaddyO's picture

Until it isn't!

The SDR is the final outcome of all this posturing.

Everything financial is being destabilized to create the "NEED" for a stabile transaction medium separate from the USD.

This past week, LeGarde made some comments about the IMF and China, opening the door to furthering the move toward Yuan as the replacement of USD for now.

As things get more turbulent, watch for the offering of the SDR as the substitute.

DaddyO

Mon, 06/09/2014 - 08:08 | 4836507 Winston Churchill
Winston Churchill's picture

Crap or shit sandwich sir ?

Nothing like having a choice.

Mon, 06/09/2014 - 09:51 | 4836806 RaceToTheBottom
RaceToTheBottom's picture

Kirkland or Sharman, which TP would you prefer?

Mon, 06/09/2014 - 12:09 | 4837276 DaveyJones
DaveyJones's picture

and the review for your next album, Shark Sandwich, was just a two word review, "shit sandwich."

where's that? they can't print that

Mon, 06/09/2014 - 12:46 | 4837394 headhunt
headhunt's picture

which one is warm?

Mon, 06/09/2014 - 19:29 | 4838934 MeelionDollerBogus
MeelionDollerBogus's picture

Turds 'n' Whey
McCrapwich Snarky Meal
Skewer a-la Sewer
Fecal Frappe

and Assburgers!
enjoy the menu, gents!

Mon, 06/09/2014 - 08:16 | 4836524 CH1
CH1's picture

The SDR is the final outcome of all this posturing.

In happy European dreams!

I very much doubt that the Chinese, Russians, Indians, et al, feel warmly about keeping their economies in thrall to the BIS. That would be to choose slavery, and while many 'citizens' make that choice, few rulers do.

Mon, 06/09/2014 - 08:19 | 4836530 Tabarnaque
Tabarnaque's picture

I see your point. However, I doubt very much that the BRICS will accept the SDR as long as the IMF isn't deeply reformed and democratized, which Washington refuses categorically. I think that the world will first move toward either 2 parallel monetary/trade systems or toward regional reserve curencies. As it is, I don't see any future for the SDR. The Anglo-American Bangking Cartel might promote it as much as they want but the other side of the planet will refuse it in its actual form.

Mon, 06/09/2014 - 08:30 | 4836562 DaddyO
DaddyO's picture

In the short term, a parallel monetary system is coming our way.

But Russia is still going to sell gas to the EU and that will require trading in their currency.

I don't see EU buying rubles or yuan to facilitate their trades.

Hence the SDR or something like it will fill the gap and satisfy the NWO push towards a one world currency.

It will most likely be a basket of currencies backed by the gold reserves of the biggest players.

Why would the US be stripped of its gold while Russia, China and India are binging?

DaddyO

Mon, 06/09/2014 - 08:43 | 4836589 shovelhead
shovelhead's picture

I'm inclined to the 'once burned, twice shy' scenario as well  for the logical presumption that the IMF is a creature of the West, and anything that can be manipulated for advantage certainly would be.

Why wouldn't a basket of currencies /commodities 'daily fix' not be subject to a visible, yet hidden, hand as opposed to Mr. Smith's ephemeral version?

Mon, 06/09/2014 - 09:56 | 4836824 American Dreams
American Dreams's picture

Not the SDR DaddyO - its called the WOCU and it has been around and agreed to by th G-20 since 2009 I believe.  Its and Roth construct and was designed by a gent by the name of Mike Blakley (spellin) who just so happend to be one of the key desigeners (algo) behind the euro.  Shovel has it right about the IMF's SDR its a western construct that is slow and old and lacks BRIC support, so the WOCU it is.  Just search WOCU and you will find their site, its more advanced than you might expect, especially if you are new to the name.

Know your enemy

AD

Mon, 06/09/2014 - 10:14 | 4836895 DaddyO
DaddyO's picture

Thanks, I guess the WOCU fills the "or something like it" portion of my thinking...

DaddyO

Mon, 06/09/2014 - 08:26 | 4836552 AdvancingTime
AdvancingTime's picture

We  are all interconnected for better or worse. A bad apple can spoil the whole basket. Welcome to the world our leaders have designed or allowed to form. Whether by design or merely as a byproduct of globalization we have weaved a web of financial transactions that circle the globe. Over the last several years as money was printed by the central Banks it was not contained in the countries where in was printed.

This money flowed across borders influencing and distorting markets and prices across the world. Some people have been calling for a "world currency" for years. the saying "one should never let a good crisis go to waste" means that a meltdown with high levels of fear would present a perfect opportunity and catalyst to advance this agenda down the field. Remember many people with agendas have a lot to gain when a major shift in the currency markets takes place. More on this subject in the article below.

http://brucewilds.blogspot.com/2014/02/contagion-may-lead-to-new-world-c...

Mon, 06/09/2014 - 09:12 | 4836663 philipat
philipat's picture

"switch the the yuan which is pegged to the dollar. funny."

At a rate determined by the PBOC not "THe Market". Not that there is any "MArket" now...

Mon, 06/09/2014 - 19:17 | 4838911 MeelionDollerBogus
MeelionDollerBogus's picture

SDR's don't add up. You can't force SDR's for trade because no empire uses SDR's for taxation of its slave populace & since the IMF isn't a country/empire that isn't likely to happen.

Mon, 06/09/2014 - 08:06 | 4836493 ParkAveFlasher
ParkAveFlasher's picture

You never hear talk of Chinese accounts belonging to political sanction-targets getting frozen by the USG.  I'm talking about the .1% oligarchal world-driver-type money here. Why keep an account denominated in dollars in a hostile or confiscatory environment when you can have it with a (delayed) peg to the dollar and have "political assurances".  The Chinese currency is essentially a USD knock-off, yes, with the single advantage of not being marked, tracked, and spreadsheeted by the US banking/security complex.

Mon, 06/09/2014 - 08:12 | 4836514 NidStyles
NidStyles's picture

Would explain why the politicians of the US are so eager to divest themselves of US securities and dive into the Chinese markets. 

Mon, 06/09/2014 - 08:19 | 4836529 ParkAveFlasher
ParkAveFlasher's picture

I'm sure Chinese syndicates have no experience in this sort of thing (epic trans-millenial sarc on that one).  They don't call it "getting Shanghai'd" for nothing.  My money is on Putin misdirecting wealthy political rivals / "frenemies" for a-shearing Chinese style.  It seems to be the modus operandi for plutocrats, who protect you until they don't. 

Mon, 06/09/2014 - 09:06 | 4836647 NidStyles
NidStyles's picture

Funny how a term that describes the rape of China by the English is blamed on the Chinese being thieves...

Mon, 06/09/2014 - 08:24 | 4836548 Hongcha
Hongcha's picture

The Yuan is not pegged.  An example of a pegged currency is the HK Dollar.

Mon, 06/09/2014 - 08:23 | 4836544 Hongcha
Hongcha's picture

Not pegged.

Mon, 06/09/2014 - 07:57 | 4836481 RadioactiveRant
RadioactiveRant's picture

Where Russia needs dollars I'm sure the Chinese can help them out. They must have warehouses full of US paper, right??

Mon, 06/09/2014 - 07:59 | 4836488 zerozulu
zerozulu's picture

Yuan just need to attach to the  Gold. That's it.

Mon, 06/09/2014 - 08:01 | 4836494 economics9698
economics9698's picture

all that printing, there would need to be an adjustment.

Mon, 06/09/2014 - 09:57 | 4836825 RaceToTheBottom
RaceToTheBottom's picture

Plus the rest of the worlds powers would love to have the power the the US FED has in printing without short term pain.

It is only us serfs that want things to run fairly.  The rest don't care about fair....

 

Russia and China are not benevolent 

Mon, 06/09/2014 - 10:54 | 4837037 WMM II
WMM II's picture

yeah, right.

then deliver the physical upon completion of a transaction if the other side demands it ?

or promise to settle up sometime later?

control exports such that you only do 'business' with countries who can pay in gold (delivered) so that you can keep your gold balances?

internalize that process into your local markets?

oh, yeah. i am sorry. its internal paper will be backed with 'gold' ( presumably convertible to gold upon demand or its a meaningless 'backing').

conversion from the old 'yuan' (in the chinese case) that was not backed by gold to the 'new' yuan that is 'backed' by gold? deliver gold upon that conversion if demanded?

"just need to attach"

simple as that.

yeah right.

:)

 

Mon, 06/09/2014 - 08:00 | 4836489 eddiebe
eddiebe's picture

This type of thing didnt work out too well for Saddham, or Ghadafi. (Whom am I leaving out?)

Mon, 06/09/2014 - 08:02 | 4836495 ParkAveFlasher
ParkAveFlasher's picture

Russia and China, which are not pre-industrial backwaters.

Mon, 06/09/2014 - 08:04 | 4836500 thestarl
thestarl's picture

Difference being they did'nt have ICBM's and SLBM's.

Vlad does.

Mon, 06/09/2014 - 09:21 | 4836696 headhunt
headhunt's picture

So do we - Vlad will not use nukes for expansionist dreams.

Mon, 06/09/2014 - 18:06 | 4838686 MeelionDollerBogus
MeelionDollerBogus's picture

But he will use nukes or weaponized diseases to stop American expansion into the Russian zone.

Mon, 06/09/2014 - 08:07 | 4836503 economics9698
economics9698's picture

Russia has no problem with a million soldiers dying, they have nukes, and now China is their best buddy.  There is a big difference in the quality of fighter and military in Libya, Iraq, and Russia.  One is a group of fanatical morons and the other a professional fighting unit.

Our cocksucker in chief and his bankers started some shit with the wrong fucking guy.

Mon, 06/09/2014 - 08:14 | 4836520 NidStyles
NidStyles's picture

Hey, he's only following orders, you know like the kind that worked in Nuremberg.

Mon, 06/09/2014 - 08:17 | 4836528 lakecity55
lakecity55's picture

A lot of us here read WW2 history and know the kind of Fight the Russians had.

The Germans had a 9-1 kill ratio, but the Russians kept coming. They did not stop. They just kept coming, all the way to Berlin.

Mon, 06/09/2014 - 09:28 | 4836727 headhunt
headhunt's picture

Yes - Russians a tough lot but there is a big difference between fighting an invader in your country as opposed to being the invader - such as Afghanistan.

Mon, 06/09/2014 - 11:51 | 4837222 thamnosma
thamnosma's picture

True, but Afghanistan is pretty unique.  Please recall that Russia has had and still has, in changed form, its own empire or "sphere of influence", which is why the Ukraine is such a hotspot.  Russia installed puppet governments throughout eastern europe for decades and did a pretty darn good job of it.

Mon, 06/09/2014 - 12:44 | 4837392 headhunt
headhunt's picture

Also true, but there are many people alive in the Ukraine who lived through and remember well the mass murder of Ukrainians by Stalin - no love lost for 'mother Russia'.

Mon, 06/09/2014 - 13:46 | 4837621 Zwelgje
Zwelgje's picture

Everybody had a tough time in Stalin's days. Not only Lvov oblast you know?

Mon, 06/09/2014 - 13:59 | 4837687 headhunt
headhunt's picture

Da

Mon, 06/09/2014 - 17:07 | 4838520 bombdog
bombdog's picture

Many people in the East of Ukraine speak Russian and associate with Russia in one way or another. Your point about Stalin is fairly silly in this context.

PS - Stalin came from Georgia.

Mon, 06/09/2014 - 17:34 | 4838605 headhunt
headhunt's picture

They speak Russian because Stalin murdered many Ukrainians, took their farmland and gave to Russian farmers - that is fact and not so silly to mention when you understand why they speak Russian.

Silly? Stalin came from Georgia? I thought Georgia was a part of the USSR - at least according to Putin.

Mon, 06/09/2014 - 09:14 | 4836670 barre-de-rire
barre-de-rire's picture

why orders givers have  chosen a black to the white house if it is not for pushing reset button...

not a single white would accept to play the game & be responsible of the drama...

oh wait... 2016 hillary... 2016...17,18,19,20,  possibility to play act 2 before ending.... ok i got end of the world  around 2023-2024 :)

Mon, 06/09/2014 - 10:32 | 4836964 headhunt
headhunt's picture

Nothing to do with black/white meme but the communists and their useful idiots wish for authoritarian control because they are so much smarter than we are.

Mon, 06/09/2014 - 09:19 | 4836689 headhunt
headhunt's picture

You are correct that Russia's army is no comparison to the likes of Libya and Iraq but you are dead wrong if you believe the Russians will accept wholesale slaughter of their sons and daughters. They are not jihadist morons and would need real reasons other than Putin's expansion dreams.Not even Putin would use Nukes in an expansionist fight such as the Ukraine - we have nuke also.

China is not Putin's 'best buddy' but a ally of convenience. China's economic and social stability depends on the US and European economies remaining stable. Most of Europe was given hundreds of billions of US dollars to prop them up and are still dependent on this, the collapse of the dollar would not be good, China and Europe understand this.

 

Mon, 06/09/2014 - 09:48 | 4836789 eurogold
eurogold's picture

 "Most of Europe was given hundreds of billions of US dollars to prop them up and are still dependent on this"

What ? You must be joking.

Mon, 06/09/2014 - 09:55 | 4836820 headhunt
headhunt's picture

No joke - fact.

Mon, 06/09/2014 - 17:00 | 4838515 bombdog
bombdog's picture

Evidence?
The Belgian bond purchases? :-)

Mon, 06/09/2014 - 16:59 | 4838514 bombdog
bombdog's picture

You obviously have no clue about how pissed off Russians are right now. A number of Russians want their government to move into East Ukraine to stop the pointless slaughter of those Russian speaking people there by the Ukrainian army. You have no idea. It's also laughable to think that the Chinese would ruin their relations with Russia to please the US, especially given the USSA's propensity to produce nothing but paper and consume resources. Countries need reliable partners for the long term.

Mon, 06/09/2014 - 17:25 | 4838582 headhunt
headhunt's picture

Was reply to comment "Russia has no problem with a million soldiers dying" and not the state of Ukraine and pissed off Russians. Putin and Russia would not be willing to sacrifice 'a million soldiers' just to take Ukraine if that was the risk.

China does not want to ruin relations with Russia or the USSA, their recent economic power (and military) depends on the large amount of business done with the USSA and Europe. The USSA is stuck with the current communist in chief for two more years. The USSA is a young country and will recover after this two year delay. Russia is reliable?

Mon, 06/09/2014 - 17:58 | 4838667 MeelionDollerBogus
MeelionDollerBogus's picture

And you are dead wrong to think only conventional weapons will be used. Nukes, engineered disease & chemical weapons are all on the table.

Russia takes a hit in Moscow? New York or Washington suddenly ALL get a 99% lethal anthrax episode.

You fool.
You thought the Russian bear was asleep. You were just sneaking up on the bear-CUB.
Momma bear's right behind you and is a lot bigger than you can handle.

Mon, 06/09/2014 - 08:06 | 4836502 prains
prains's picture

whatever happened to China's real estate crash that was gonna rock the world? Thought the rivers would be red by now.....

Mon, 06/09/2014 - 08:15 | 4836523 Quinvarius
Quinvarius's picture

The Real estate market there was cooled down purposely by the government.  Who knows if that can stick.  The Shanghai Composite is about to shoot through the roof, and so is copper.   The funny thing is the copper story where we were all told there were all these deals that would require selling mega-tons of copper by GS.  So copper would fall.  Now we find out there is no copper behind these deals just tons of copper debt that needs repaid, so GS says copper prices will fall.  GS is just a clown show.  The truth is GS has trouble delivering copper and thier warehouses are a bottleneck because they have none either.  GS is massively short copper and will say anything and try to save themselves by digging their hole deeper.  But in China they execute people for that.  So send over Lloyd to supervise, GS.   

Mon, 06/09/2014 - 08:16 | 4836525 thestarl
thestarl's picture

In time.

Mon, 06/09/2014 - 08:08 | 4836506 Quinvarius
Quinvarius's picture

Anyone surprised by this after seeing "goldbug" math and history lessons for the last 5 years must work on Wall Street.  It is going to get worse.  The gold "promoters" who have studied monetary history have been right about every economic outcome so far.  QE won't work.  The economy will get worse.  The USD will lose internatinal status.  The government will go full on banana.  Their final prediction involves price.  They will not be wrong on that either.  Sadly, they also predict a cup of coffee will be about $50.  So don't expect a big lifestlye change by owning gold.  Just make sure you actually have possession of the real thing.  

Mon, 06/09/2014 - 08:11 | 4836512 Winston Churchill
Winston Churchill's picture

Just retaining real wealth is the object.Most everyone else will be impoverished.

Firre sale of all assets except PMs.

Mon, 06/09/2014 - 08:13 | 4836516 lakecity55
lakecity55's picture

If it only preserves your dollar 'value' it will be worth it as insurance.

Food, Family>profitz

Mon, 06/09/2014 - 11:56 | 4837241 thamnosma
thamnosma's picture

I agree that basics will remain relatively the same in terms of gold and inflated in dollars, but as people who have only dollars dump anything else of value to buy those basics, a little extra gold and silver will mean great deals for that stuff.  I also doubt real estate will jump up the same as food and I believe there will be deals to be had on that and land.   I definitely could be full of it but you have to figure there will be many more sellers than buyers on ebay.

Mon, 06/09/2014 - 08:12 | 4836513 percyklein
percyklein's picture

Russians and Chinese, and sometimes even the Arabs, have been saying this nonsense for years. Go ahead. Give it a try. Banks'll just make more money out of it. 

Mon, 06/09/2014 - 17:45 | 4838632 MeelionDollerBogus
MeelionDollerBogus's picture

Invalid premise.
The question is banks WHERE.
Dollar-primary banks will be destroyed.

Mon, 06/09/2014 - 08:15 | 4836522 orangegeek
orangegeek's picture

funny - and when the juan goes for a slide, all those Russian companies will be happier

 

Barry has figured out already that his big mouth threats are meaningless - the only thing Barry can do effectively is freeze the assets of the heads of these companies

 

that's like trying to stop stampede of elephants with a crossing guard

Mon, 06/09/2014 - 08:20 | 4836535 AdvancingTime
AdvancingTime's picture

Too many people it appears a struggle is occurring to unseat America as the words most dominate nation. Too many proud Americans who see the world from the unenlightened and possibly undefendable position the United States has a right to be in control it is both threatening and frustrating to see control slip away.

It is threatening to think the country might quickly fall to the position of a second rate power mired in debt with many of the options we have come to see as our right suddenly ripped away. It is frustrating that in many ways the country has become its own worse enemy guilty of political inaction and squandering its power through a series of bad choices and missteps. More on this shift in power and our best response in the article below.

http://brucewilds.blogspot.com/2014/06/americas-struggle-to-stay-on-top....

 

Mon, 06/09/2014 - 08:23 | 4836536 atthelake
atthelake's picture

Many Americans think our "leaders" are stupid because everything, in America, is up-side-down and has been for years. They are incorrect. The intent is to destroy America and Americans. TPTB needed politicians who have no great love for America (Obama) and/or have a great love for other countries and/or can be easily bought. Some politicians are going along to get along. I think if anyone in DC stood up for Americans, they'd blow him up.

 

So, it's not that they're stupid. It's that they weren't born in America so they have no great love for the country and it's peoples and/or were easily bought off and/or love a different country, more. So it's really that they're lazy, fearful, greedy traitors but not stupid. And that's on both sides of the aisle.

Mon, 06/09/2014 - 08:28 | 4836556 maneco
maneco's picture

Or maybe it's because they are set to profit from America's downfall? 

Mon, 06/09/2014 - 08:56 | 4836617 Grimnir
Grimnir's picture

Hey, guess what? The same people who built America up are the same people who are tearing it down. They aren't doing it because they hate America. It has been very useful to them, but all things' use eventually runs out. It isn't about loving another country more. It's not personal at all. Just business. Surely you can understand.

Mon, 06/09/2014 - 17:39 | 4838624 MeelionDollerBogus
MeelionDollerBogus's picture

Whuuuut?
You'd think these people are dual-citizens or something!
Shmontses, I say.

Mon, 06/09/2014 - 08:21 | 4836538 q99x2
q99x2's picture

I would like to buy dollars for 50 cent.

Mon, 06/09/2014 - 08:43 | 4836590 headhunt
headhunt's picture

No - you would not.

Like it or not if the dollar collapses so does the rest of the world.

Mon, 06/09/2014 - 17:36 | 4838607 MeelionDollerBogus
MeelionDollerBogus's picture

I would love it like cotton-candy.
I would not change much, as I stockpile physical things of value, and no one would have any excuse to pay me for work in IOU notes ever again.
I'll take credit (fiat money is credit) only from those who are personally determined to be credit-worthy (USA is not, I hold & use zero US dollars).

Somehow you are insanely thinking everyone in the world, people right next to each other, need to use a 3rd party.
They each have resources & a desire to trade. There's no need to bring in useless US dollars to the transaction. The US isn't providing a useful resource at that moment nor later for their US dollars. None.

Your assertions are the height of ignorance.

Mon, 06/09/2014 - 09:00 | 4836632 sunnyside
sunnyside's picture

That's Ludacris.

Mon, 06/09/2014 - 17:32 | 4838602 MeelionDollerBogus
MeelionDollerBogus's picture

Fresh Prints of Yellair!

Mon, 06/09/2014 - 09:24 | 4836706 forwardho
forwardho's picture

But they are only worth .07 Cents?

Mon, 06/09/2014 - 08:33 | 4836566 yogibear
yogibear's picture

No need to be concerned, the Federal Reserve is out buying US debt through accounts throughout the world. When people get suspicious
about that Belgium account being used they'll switch to another.

Russia's KGB should be following the Fed's money trail and exposing it around countries outside the US. The US media would never report the scheme.

Mon, 06/09/2014 - 08:54 | 4836601 Winston Churchill
Winston Churchill's picture

Think that thru' a little further.Buying by proxy is a stop gap only.

What is/will be happening to the dollars raised by those sales ?

How soon until hyperinflation hits ?

Mon, 06/09/2014 - 08:33 | 4836573 nah
nah's picture

so China is ready for a strong Yuan policy

Mon, 06/09/2014 - 08:39 | 4836575 Save_America1st
Save_America1st's picture

The most obvious thing to everybody should also be that America needs to de-dollarize itself as well.  Debt-based fiat systems run by scumbag banksters is obviously a dying and very unpopular system now that people are finally realizing it's all just a big Ponzi scheme meant to drive us all into massive debt.  We don't need the dollar...the Fed needs us to be enslaved by the dollar. 

yuan/dollar exchange rate is 6.25:1

https://www.google.com/finance?q=USDCNY

might be a good idea to start stacking a few yuan in addition to PM's. 

Otherwise, we need to wipe out the Federal Reserve system and go back to Constituional money. 

What is Constitutional money? - Michael Rozeff

Only silver and gold coins are constitutional Money, and Money in the Constitution means only silver and gold coins. Neither the states nor federal governments may issue paper money, a.k.a. bills of credit. The dollar is the Money-Unit or unit of account, and it’s a silver coin with 371.25 grains of fine silver. The federal government, but not the states, may coin Money, with the mint being open to the public, i.e., anyone can get bullion minted into coins; and vice versa, anyone can melt coins down for commercial use. The federal government may borrow Money (again coins) on its credit but may not obtain forced loans. Legal tender can only be silver and gold coins.

Consequently, the current money of the Federal Reserve and the Federal Reserve itself are unconstitutional. The Constitution enables a free market in money in which its supply is determined by the public, not the government, whose role is limited to coining Money, setting the Money-Unit, and “regulating” the metal content (making known or setting out the “Value”) of other coins relative to the standard.

http://www.scribd.com/doc/28478136/The-U-S-Constitution-and-Money

#EndTheFed

Mon, 06/09/2014 - 09:32 | 4836721 OC Sure
OC Sure's picture

Two things to add:

1. Money mediates an exchange of 2 parties who do productive work. This is an exchange of something for something. The central banks' currency mediates an exhcange of 2 parties where one exchanges nothing for something. This is counterfeiting.

2. Per the Coin Act of 1792, the punishment for counterfeiting is quite severe. The founders took money and counterfeit very serious:

Coin Act of 1792, I.19 :

 

"Penalty on debasing the coins- Section 19. And be it further enacted, That if any of the gold or silver coins which shall be struck or coined at the said mint shall be debased or made worse as to the proportion of the fine gold or fine silver therein contained, or shall be of less weight or value than the same out to be pursuant to the directions of this act, through the default or with the connivance of any of the officers or persons who shall be employed at the said mint, for the purpose of profit or gain, or otherwise with a fraudulent intent, and if any of the said officers or persons shall embezzle any of the metals which shall at any time be committed to their charge for the purpose of being coined, or any of the coins which shall be struck or coined at the said mint, every such officer or person who shall commit any or either of the said offenses, shall be deemed guilty of felony, and shall suffer death."

Mon, 06/09/2014 - 08:37 | 4836580 yogibear
yogibear's picture

It's a slow-motion train wreaked economy. The upper-end enjoys it for now. Just wait.

It's eye-opening when you see a number of fast-food restaurants closing lately. Not even the low-end can afford the higher prices.

Mon, 06/09/2014 - 08:41 | 4836585 headhunt
headhunt's picture

The US QE dollar saved all of Europe and by proxy Russia and China from economic collapse.

Their wish for the end of the dollar will be the means to their own economic collapse.

Watch what you wish for - you might just get it.

Mon, 06/09/2014 - 08:42 | 4836587 Dre4dwolf
Dre4dwolf's picture

The USA pretty much has declared economic warfare and a currency war against Russia and China, why is everyone surprised when Russia and China do the same in retaliation?

Mon, 06/09/2014 - 12:17 | 4837297 messystateofaffairs
messystateofaffairs's picture

Yeah but it's a fiat currency war and that's not good for us little folk. Besides I'm sure the tribal boys will find a way to steer the end result into their own hands.

Mon, 06/09/2014 - 08:44 | 4836593 tostaky06
tostaky06's picture

Chess and Mate ...

Mon, 06/09/2014 - 08:52 | 4836603 ejmoosa
ejmoosa's picture

We Americians are going to be hammered by our own government for more tax revenues when this happens faster than any government analyst can forecast.

 

There is a lot of pain ahead for the US.  

 

And yes, this was always the plan of the Obama Administration.

Mon, 06/09/2014 - 09:19 | 4836640 forwardho
forwardho's picture

Loss of reserve status = instant 3rd world status.

If one is relying on .gov benefits, snap, ss, medi, ect

It will be over.

IMHO there are not enough taxes in the world to cover the fantasy we have been living in.

Mon, 06/09/2014 - 14:26 | 4837829 css1971
css1971's picture

While the change itself may... is almost guaranteed to be very fast. The effects take generations. In fact it'll take at least a generation to admit there is even a problem.

Mon, 06/09/2014 - 08:58 | 4836619 BringOnTheAsteroid
BringOnTheAsteroid's picture

Has the demise of the US dollar got anything to do with the Hindenberg Omen not working anymore?

Mon, 06/09/2014 - 08:58 | 4836621 besnook
besnook's picture

c'mon! send all those unused dollars back to the usa market. we are not quite at the moon yet.

Mon, 06/09/2014 - 08:58 | 4836623 highwaytoserfdom
highwaytoserfdom's picture

Hey does China and Russia have primary to sell bonds?  A little competitive action  for the economic hit men?  Krugman, Keynes, FICO, Usury cabal hows the force working out?    IMF USA USA 

Bank of Nova Scotia, New York Agency
BMO Capital Markets Corp.
BNP Paribas Securities Corp.
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies LLC
J.P. Morgan Securities LLC
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Mizuho Securities USA Inc.
Morgan Stanley & Co. LLC
Nomura Securities International, Inc.
RBC Capital Markets, LLC
RBS Securities Inc.
SG Americas Securities, LLC
TD Securities (USA) LLC
UBS Securities LLC.

 

"The Rothschilds, and that class of money-lenders of whom they are the representatives and agents -- men who never think of lending a shilling to their next-door neighbors, for purposes of honest industry, unless upon the most ample security, and at the highest rate of interest -- stand ready, at all times, to lend money in unlimited amounts to those robbers and murderers, who call themselves governments, to be expended in shooting down those who do not submit quietly to being robbed and enslaved." by: Lysander Spooner
(1808-1887) Political theorist, activist, abolitionist
Source: "No Treason #6" (1870)
Mon, 06/09/2014 - 10:54 | 4837033 Treason Season
Treason Season's picture

Thnx 4 Spooner link.

Mon, 06/09/2014 - 12:13 | 4837289 messystateofaffairs
messystateofaffairs's picture

Spooner was so far ahead of his time, seems like he still is as far as the vast majority is concerned.

Mon, 06/09/2014 - 09:03 | 4836635 rsnoble
rsnoble's picture

The rich will come out smelling like roses.  The rest of us will get one new sdr for 10,000 dollars each and your bills will reset in proportion to the sdr lol.

Who knows, I just know an ass fucking when I see one.

Mon, 06/09/2014 - 12:10 | 4837283 messystateofaffairs
messystateofaffairs's picture

Maybe I should start selling cheap Chinese Vaseline for bitcoin to take advantage of this coming trend.

Mon, 06/09/2014 - 09:09 | 4836636 shovelhead
shovelhead's picture

The circle jerk of debt is actually a spiral that all lead to the same center.

A central bank.

It's a good place to be. A guaranteed skim based on volume.

And baby, we got volume.

I expect some reaction to a challenge of that system.

Mon, 06/09/2014 - 17:17 | 4838569 MeelionDollerBogus
MeelionDollerBogus's picture

This here outfit maybe kinda reminds me of another organization.

Mon, 06/09/2014 - 09:03 | 4836638 Quaderratic Probing
Quaderratic Probing's picture

Let me know when the USA takes Rubbles for its Bonds

Mon, 06/09/2014 - 09:04 | 4836641 gcjohns1971
gcjohns1971's picture

Where's the Gold?

If anyone proposes I use Yuan rather than dollars, that is my question.

Until someone can answer it, Yuan and Dollars are the same thing.

Those who don't realize it should look a little deeper into how fiat currencies are established in the international banking system, and how the Reserve Currency figures into that.

Here's a couple of hints:

1) A balance sheet consists of Assets and Liabilities - even for a nation, even for a nation's central bank.

2) Every fiat currency - and every other bill of credit for that matter - is a liability to the issuing bank.

3) What goes into the Asset column as the reverse side of that issued bill of credit?

WHERE IS THE GOLD?

OTHERWISE...All currencies are dollars in all but name. 

At this point there is no evidence of anyone wanting to end the fiat con game, only replace the figure at the head of the table.

Mon, 06/09/2014 - 09:09 | 4836653 OC Sure
OC Sure's picture

"What goes into the Asset column as the reverse side of that issued bill of credit?"

The theft of productive work as represented by the loss of purchasing power of the counterfeit and the theft of the future work which the principal of the debt represents?

Mon, 06/09/2014 - 12:44 | 4836855 RaceToTheBottom
RaceToTheBottom's picture

I totally agree with you.  China has printed three times as much as the US, now granted it was for infrastructure, which has a better chance of getting used VS Bankster salaries and bonuses....

That is why for the game of debasement to work, TPTB must debase Accounting rules as well, which the US has done.  

Ever wonder why so many houses, empty with no squaters, are not on the market?  It is because there is no Accounting pressure to sell them.

Mon, 06/09/2014 - 16:39 | 4838425 MeelionDollerBogus
MeelionDollerBogus's picture

Enough of those & you could have an entire ghost city.

Good thing no one else has ghost cities.

... oh wait...

Mon, 06/09/2014 - 10:12 | 4836891 shovelhead
shovelhead's picture

Good point.

Without gold and silver specie physically used in transactions and substitutes such as bank notes, bonds, checks etc. which are mere IOU's for same, the ability to counterfeit and manipulate remains, and any accounting authority placed to examine the balance sheet would be subject to capture.

Why would we entrust the IMF which, in reality, is an international sub-prime lender of last resort to manage a money system?

I don't see a boardroom filled with Angelo Mozillos an improvement over the original.

Mon, 06/09/2014 - 12:06 | 4837265 messystateofaffairs
messystateofaffairs's picture

If it's not specie, it's not money. The dollar is not even "fiduciary media"(IOU's for specie), the dollar and other such fiat currencies are straight up con jobs at best redeemable by slave labor. Whichever fiat gets to be international benefits from scale which allows the fiat controller to create some for themselves and spread the inflation far and wide. Fiat controllers use intimidation, confusion, legal tender laws, false economic intellectuals, assassinations, subversion of government policy makers, etc. to get one of their fiat objects accepted as money. Once they succeed it's slavery time as they stealth tax the population via inflation, utilize usury, and other mechanisms.

Whilst the use of privately controlled fiat currency is the centerpiece of the tribes arsenal it is by no means the only tool.

Mon, 06/09/2014 - 16:33 | 4838407 MeelionDollerBogus
MeelionDollerBogus's picture

"I don't see a boardroom filled with Angelo Mozillos an improvement over the original."

That's why they'll all be Honorable Jon Corzines.
Just copy a few of 'em and refer to them all as the Honorable Jon Clonezine.

Mon, 06/09/2014 - 09:05 | 4836642 OC Sure
OC Sure's picture

Looks like good reason to sell US bonds.

Mon, 06/09/2014 - 09:19 | 4836691 Spungo
Mon, 06/09/2014 - 09:22 | 4836699 MFL8240
MFL8240's picture

The US gets this clown out of office or risks a currency collpase.   My congradulations to McCain, Cantor, Grahamm and Bonier for doing nothing more than hiding!

Mon, 06/09/2014 - 10:07 | 4836862 RaceToTheBottom
RaceToTheBottom's picture

What substantial change would occur if a politician of another team gets in?

This mess is going only one direction and the presidents role is to conduct the orchestra on the Ledo Deck, nothing more.

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