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UK Hints At Next Reserve Currency, To Issue Chinese Yuan-Denominated Bond
Yuanification continues around the world. As The USA attempts to corral its allies in a 'broad coalition', an increasing number of people - including domestic economic policy advisors - are shifting away from the USD as primary reserve currency. However, the move by British Chancellor of the Exchequer George Osborne, announced Friday, is likely the most notable yet in the world's de-dollarization. As Xinhua reports, the British government intend to be the first nation (ex-China) to issue Renminbi denominated bond and to use the proceeds to finance the government's reserves of foreign currency. Osborne described this dialogue outcome as "a historic moment" and a statement of British confidence in the potential of the RMB to become "the main global reserves currency".
British Chancellor of the Exchequer George Osborne announced Friday that the British government intend to issue a Renminbi denominated bond and to use the proceeds to finance the government's reserves of foreign currency.
"I can now announce that the UK government intend to be the first national government outside of China to issue a bond in China's currency. We issued bonds in U.S. dollar before, now we will be issuing a bond in RMB," said Osborne in the press release of the Sixth China-UK Economic and Financial Dialogue (EFD).
Chinese Vice Premier Ma Kai and Osborne concluded the meeting of the Sixth China-UK Economic and Financial Dialogue in London.
Osborne described this dialogue outcome as "a historic moment" and a statement of British confidence in the potential of the RMB to become "the main global reserves currency".
"And let me be clear, as China becomes a bigger and bigger part of the world economy, their currency is going to be used around the world. We here in Britain understand that, and we want us to be the first country in the west to seize the opportunities that it will bring," declared Osborne.
Meanwhile, the issuance of Chinese currency bond means jobs and investment in Britain, which the government's long-term economic plan is all about, noted Osborne.
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With friends like that, does the USA need more enemies? Time for some Uk sanctions...
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Gold bitchez....same as the Pharaohs
.
the Queen is stuffing her shoeboxes with ASEs while the Peasants transact with nickel and zinc...
But I thought the English liked us.
I would expect the announcment of capital controls and limitations on the amount of Yuan UK citizens can own to coincide with this move.
Battle Of The Paper Virtual Harddrive Contained FIATS ...
GOLD Will Be (Is) The Ultimate Paper Fiats Backstop ...
US declares war on Great Britain in 3..2..1..
UK recognizes power of gold exchange Yuan with impending opening of the FTZ gold exchange.
Thanks to Paul Volcker, David Rockefeller, Henry Kissinger, George Shulz for scuttling the USD in 1971.
The world will come to realize the chaos you've created.
Meanwhile, the skipper (Osborne) is whistling while he is pumping-up a provisional lifeboat so everything must be okay.
"The People’s Bank of China (PBOC), the country’s central bank, announced on Monday that it had authorized the Bank of China (BOC) as a clearing bank for RMB business in Paris.
The PBOC made the decision in accordance with an MOU signed with the French central bank La Banque de France to help turn the city into an offshore RMB center.
Competition is fierce among Europe’s major financial centres, Frankfurt, London and Luxembourg to trade in China’s currency.
Beijing is keen on substituting the US dollar with the yuan in all of China’s trade with other countries. The Chinese currency now trades directly with the Japanese yen, the Australian dollar, the Brazilian real, the EU’s euro, the New Zealand dollar and many other currencies.
BOC became the RMB clearing bank in Frankfurt in June while China Construction Bank was authorized to be the RMB clearing bank in London.
China stepped up plans to increase the international use of its currency last October with an agreement between the European Central Bank and the PBOC to swap euros and yuan.
The PBOC is yet to announce the RMB clearing bank in Luxembourg."
http://thebricspost.com/china-announces-clearing-bank-in-paris-for-rmb-b...
Senior Obama official to Kyle Bass (believed to be Timothy Geithner): We're just going to kill the dollar.
http://www.youtube.com/watch?v=PJQKJqGC7w0
Everybody knows.
When the UK and Israel jump ship (and they are going to), it's all over.
What a load of old b*ll*cks. This ain't the first UK move towards Rinmibi denominated bonds. I assume Cameron just an uninformed gobsh*te which is why he's happy to parrot this fakery. The London Stock Exchange has been listing Rinmibi denominated bonds since 2010, however they weren't very popular. A link to a spreader of the existing bonds can be found at http://www.londonstockexchange.com/specialist-issuers/debts-bonds/renmin...
I believe the UK is issuing the bonds in Yuan vs. listing them for trading.
When the derivatives blow it's all going away Yuan, Franc, Ruble, Euro, Dollar, it doesn't matter. All national paper, even if partially gold backed (and governments never cheat on the paper to gold ratio right?) will be destroyed. It all a big set up for the NWO world currency. So go ahead and issue Yuan bonds, why the heck not? It's all going to evaporate in the end.
Yep, it's a fiat ponzi system designed by the elites for the elites at the expense of the masses. They will prop up the ponzi until it eventually collapses. Then like any true sociopath faced with the day of reckoning, they will either commit suicide, flee and try to take as much wealth with them into hiding as possible, or they will turn on each other in a last gasp to either take it all or burn it all. Suicide is almost never chosen by the highest sociopaths, so my guess is a combination of the other two options. We're already seeing the elites turn on each other with the currency wars and regional proxy wars all flaring up all around the globe at once. The aggressive (but dumber) elites are being set up to kill each other off by the smarter ones. The elite herd is going to be culled, and the smart ones will take as much plunder as possible into hiding to re-emerge after the world wide collapse and reset the NWO.
Silly rabbit. NOBODY likes us.
Dear USA,
No hard feelings there, just returning the favor love.
Most sincerely,
The British
Exactly. You gotta earn respect.
Countries don't have friends they have allies but President Zippy is the poster boy for fecklessness. Nobody trusts the USA to do anything but screw things up even worse than it already is as demonstrated by our new 'coalition of the willing' that no country wants to be near.
We like you, but your Gov sucks donkey balls.
LMFAO
The British Empire!!!! How far you have fallen!
These Western Kenyesian fools REALLY do believe in their paper wealth and paper tiger militaries, dont they? England might be the ONLY Country on Earth MORE delusional then the Americans right now!
you must be Scottish.
Hardly brother, although I hope the Scots defeat the British empire of Kenyesian bullshit without firing a shot, my direct bloodline had to defeat them with blood 200+ ago!!
And yes I'm aware we have been re-enslaved circa 1914 and 1971/72 but don't worry Americas second revolution is around the historical corner, but I wish the Scots well, because I believe in Freedom and Independence above all else!
You can keep your fake economic prosperity thru debt, if you like so much:)
Don't mock nickel transactions. Nickels are the only real circulating money in the US today in that their face value is close (sometimes higher, sometimes lower) than their metallic value. http://www.coinflation.com/ They're the equivalent of silver dimes and quareters in 1964--and you know how that story ended. Hoard them while you can! Kyle Bass is http://www.coinweek.com/bullion-report/the-nickel-hoarding-billionaire/
that's right. And nickel will only go up in cost/value as time goes by. I've been stacking the hell out of nickels for the last couple years. Go to the bank with 50 bucks and swap it for rolls of nickels and stash them away. Do that every couple months or so. Not everyone can buy a million dollars worth of nickels like Bass did. But we can stack them regularly and one day they'll be a helluva lot more usable and valuable than any bullshit paper.
CON-gress is trying to pass a bill to stop using nickel in nickels...they'll be made of some bullshit that nobody wants. That will make the old nickels even more valuable just as with pre-1965 Constitutional Coinage. People will want them instead of the fake crap.
Did the brits do this without the Feds' input? I doubt it. Perhaps a setup to control the Yuan going forward. I don't trust the insolvent Western banks at all, nor should the Chinese.
The UK will use the proceeds of these bond sales to purchase US dollar bonds.
Don't fret. The Chinese know what they're doing.
Hoooly foock!
Wow?
The problem is that the bonds may be in Yuan, but they are being backed by a country with a huge debt, huge dependency class, and little hope for their economy.
You mean like the UK.
You mean that persons unknown may actually want those bonds to crash...?
You are describing USA perfectly.
What part of all fiat go to zero, don't they understand?
The part of Shanghai Gold Exchange
Regardless of the "fiat du jour", it's good news for holder's of physical.
not so much for any holding any kind of fiat, including yuan.
So...UK going short yuan eh?
Terrorists. Bomb them pronto, before Scotland leaves and takes its oil reserves with it!
Aaaannnddddddd London takes the lead over Frankfurt, NYC, and Paris!!
Amuurrica loses regardless.
Another reason why Scotland should disengage themselves from the UK......
That didn't take long. Arrest Goldman Sachs
I seem to remember that billions of dollars in securites were created by an American investment bank at the request of a client who wished to SHORT a certain market and required securities to bet against to do so.
Of course when those securites were sold to investors they weren't informed that the entire reason that the securities had been created was that a very large and savvy player had requested their creation specifically to bet against the underlying assets...
What the fuck does that mean in English?
GS created US housing market collateralized debt and various other derivatives, which they then sold to less informed (or more optimistic) 'investors' as a means of betting against the US subprime bubble.
Google John Paulson + mortgage backed securities.
Thanks
Is Obumerang is on the red phone to Osborne?
Britain is beyond bankrupt, its insolvent, period.
Britains 'Chancellor Of The Exchequer' has only held one job in his entire, in-bred, over priviledged life, same as the rest of them mind, can you guess what George 'Gideon' Osbourne has ever really done as a 'Real Employee'?
He was paid to fold towels. Aye, paid to fold towels. We are now in 1.5 trillion £s worth of debt, twice as much as what we were when this co-alition of the deprived took over.
Suprised?
;-)
Can someone tell my why anyone buys government bonds? They take the money with no intention of doing anything productive with it. Use it to replace the taxes that they know that they cannot collect, and intend never to pay the principle back. It seems to me to be the largest ponzi scheme in the history of the world.
payment of tribute in the modern world. Ages ago it was gold chests in carts
"It seems to me to be the largest ponzi scheme in the history of the world."
I think you answered your own question.
People buy them because defaulting on government debt is the last default before a reboot.
"People buy them because defaulting on government debt is the last default before a reboot."
I'd also add, that financial institutions buy them as loss leaders to dump on thier muppets in order to be permitted by said Goverments to perpetuate more crinimal and financially rewarding activities.
GD,
Well, government will tax to make sure you get your nominal principal back. With other "investments," who knows?
Every single thing I said in May 2013 is becoming reality gradually
Negative GDP? check
"Suicides"? check
Sudden wars? check
World abandoning USD? check
Only thing left: Triple Lehman
Soon come
I don't recall you predicting any of that. I think you may be just saying for political gain.
I never predict.
I only look at reality.
That stuff started occuring here and there and it became obvious that it would expand fast.
"Every single thing I said in May 2013 is becoming reality gradually"
"I never predict."
At least one of these statements has to be false...
just saying.
Saying = looking at unfolding reality, not prediction
Really? Where are all the "bullets in the head"? You were so optimistic.
that is the new one, only recently thought of.
I thought they would surrender like in 2008. They didn't
Even the time prediction of rate rise or margin call before Dec 31st 2014 was based on the assumption of surrender like in 2008.
They didn't, at least until now.
Still time left.
China is maybe the most exposed country to the US debt.
Someone please enlighten me how this affects their potential reserve currency status?
If you believe that, I have some nice coastal property for sale in Utah you might be
interested in.The FedRes would never lie to us, now would they ?
I can also think of several ways to unload that liability on western banks while
appearing to still own the USTs.I'm sure those ideas occorred to someone at the PBOC
as well.
It must be easier to manipulate the Yuan than the Pound.
The EU needs bonds to buy to generate balance sheet assets for their QE program, these Chinese bonds would be better bet than any euro junk bonds IMO
Empire past bowing to empire future.
When you shoot at Putin's Oligarchs you have only one real option : seduce the Chinese Oligarchs, as the ME Oligarchs are already in Londonistan.
http://news.msn.com/world/china-creates-its-first-no-cellphone-sidewalk-...
We're not always #1.....................::((
You are not ever existed 300 years ago....
Huh...?
"We're not always #1.....................::(( " - wtf was this???
Huh??? too exceptional?
I'd call that "defeating Darwin".
The UK has become an embarrassment. A once great country will soon be setting up loudspeakers and prayer rugs for it's daily chant to Mecca.
Do you really think people like Pelosi, Reid, or Obama are any different? The embarrassment will be here a lot sooner than people realize when the borders are unkempt.
"Et tu, Brute?"
hahahahaha like most divorces, money is the deciding factor.
The sooner the U.S. goes belly-up, the sooner the Euthanization can commence on the Senior Citizen population here.
And handicappers…..
Be careful what you wish for because some day even you'll be a in a minority represented group.
Connecting Dots
The rivers are vanishing because the civil servants are sucking them dry with irrational developments in the State grant cycle, to create excess demand over supply, to fuel inflation in a deflationary cycle. Juveniles collecting toys by impoverishing their children have no business telling parents how to raise their children. A community doesn't raise a child. You do, or it doesn't get done.
Building economies is like building homes. You build the home, hand over the keys to the new owners, and build another, until you retire. What sense does it make to build empty houses for the State, just so you and your children can live in the street, because that's what derivative morons did before you, based upon State imperatives?
Have you noticed that the political networks have nothing to offer the Scots, but threats, based upon fear? Does London Have the natural resources to feed its population?What is the inflation rate of London Square? America is quite capable of providing its own energy, so why is it so worried about Saudi oil subject to rapidly falling demand?Why are New Yorkers and Londoners controlling land in California? Why is Jerry Brown trying to make money out of pot?
Of course the short term thinkers graduating from public education, to maintain the status quo with busy work, cannot see the new economy in transition. If you have developments in the can, you might want to begin inserting them, and if you don't, you might want to get busy. Only morons go to the voting booth to demand equal rights, expecting change.
Whether the Scots split is not going to be determined at the voting booth, any more than Londoners are going to determine whether the Scots are good land stewards. The Scots have more oil than they can ever use. And what has any navy on this planet done since 2007, except suck the coffers dry with their irrational international trading schemes? Do you see highly intelligent labor showing up to any of their wars?
California has had one of the worst performing education systems over the last 50 years, built on standardized testing, and yet it continues to print toilet paper in exchange with other morons doing the same, wiping out purchasing power with a revolving immigration door. Why do you suppose that is? Why are all these empty units being bid up in a global city circle jerk, and what do you suppose is going to happen?
Don't wait for the fascists to knock on the door.
My grandma didn't think twice about taking a switch to my a*, and my father didn't think twice about giving me a belt, because I was taking heavy equipment for joy rides when I was 5, but no teacher ever threatened me while they were around. The teachers did threaten the kids watching TV, learning to conform, who are now the passive aggressives operating drones, who like to think that they are a threat, to something other than busy work.
International trade among juveniles, the toilet paper they print, and the wars they wage, against each other, is not the foundation of civilization. You are, if you choose to be, a human being, instead of a derivative.
Who do you suppose presided over the California Master Plan for Higher Education? “When he was 12 and selling Liberty Bonds on street corners, he would end his spiel with, ‘Give me liberty, or give me death.’ ”
Insurance against the loses, if Scotland votes yes?
In 2009, Obama insulted the then-Prime Minister Gordon Brown by gifting the UK a box set of 25 DVDs and signed picture of the Obamas. Gordon Brown was so embarrased with Obama's comtempt of the UK that our relationship after all these years has never recovered.
So this is a huge F- U President Obama.
Without question,Obama, Kerry and Hillary have trained wrecked Americas' foreign policy
FREEEEEEDOM!!!!! WILLIAM WALLACE YUAN FREEEEDOM!
Breathtaking.
But Great Britain has adjusted to being a secondary power within the Empire, and shows no sign of changing its stripes.
Osborne and Scums still think in terms of a unipolar world. Putin of a multipolar one.
Does China aspire to become the capital of the Empire? Or a leader within BRICS, heir to the "nonaligned movement"? 2000 years of Chinese history would say the former, but Chinese actions over the past 10, 20 or even 100 years mostly belie that.
Like Russia, China is a nation of nations, a nation whose people have within the past century overthrown their feudal landlord class and foreign would-be rulers and risen up at huge cost to throw out invading imperialist armies. Chinese investments in Africa have been mostly constructive and overwhelmingly non military. And in a world where the US has 1000 foreign bases and 350,000 troops stationed abroad China has virtually none.
Without meaning to compare China with Jesus, Osborne's statement brings to mind Satan showing Him the riches of the world and saying All this could be yours. And who among us hasn't faced such a moment?
Osborne's other message, whispered in their ear I would imagine, would be "Russia's going down. Do you want to go down with them, when you could be one of us, our leader even?"
China has a deep history with England too. They well remember the Opium Wars, and a century of plunder and humiliation at the hands of Perfidious Albion. They will play their own game, carefully.
This is a win for China, but the crown is not Britain's to bestow.
Red Herring.
The Chinese have already made it very clear they do not want to shoulder the burden / responsibility of maintaining a global reserve currency.
In fact no body does.
Leave it to the computers.
Bitcoin , BTChez ......
Only one more small cut to the massive trunk of debt before the whole tree will come crashing down.
The Chinese have their own problems. First and foremost is their economy is still utterly dependent upon keeping their currency undervalued. That means printing Reminbi to use to buy dollars, Euros, and Yen. Without this, they'll start losing business and jobs which might bring about civil upheaval the Chinese don't want to deal with. In the meantime, their inflation rate is likely one and one half times more than what they claim, they have a garguantan amount of domestic debt used to stimulate the economy going unpaid, and their largest trading partner, (the EU) will need the Chinese to double up their support of the Euro as it circles the drain.
I thought this was covering some article in theonion.com but WTF....
Yes because the Chinese haven't printed enough fiat already. Surly they will manage being the reserve currency much better than everyone else have.
Should be great for exports.
Buying/selling a few bonds denominated in the Yuan will not make the Chinese currency a reserve currency.
I doubt the world will ever, collectively allow any one country that privilege again. It has been a disaster for the world and even moreso for the USA.
Yes we got a lot of things (like oil) at a discount. The government got to expand far beyond the bounds that taxation alone would have permitted. The price the country paid was enormous. We lost our industrial base.
The future will be different.
Reserves are needed by central banks to defend and manipulate the value of the currency they print. They really don't need that much in ordinary times. If gold were priced higher it could work fine. Judging by the structure of the Euro, gold is what the ECB plans to use in the slightly distant future. I suspect that the resty of the world has seen this and are making the same plans.
Reserve currency status would be a 'poison privilege' (h/t Robert Triffin) for the Chinese. They need to export to survive (all countries do today). Having the reserve currency would leave them in the position of the USA in 1980. They would soon be developing their own version of NAFTA etc.
Gold works better and will be the way things go.
"UK Hints At Next Reserve Currency, ..."
WTF???
Issuance of foreign currency bonds by various national governments is a long-standing practice in international finance. Japan has issued U.S. dollar 'Yankee" bonds since at least the early 1980s, and the U.S. has issued yen-denominated "Samurai" bonds since that time as well. Such practice does not portend a "new reserve currency".
After watching how the u.s abuses their reserve currency why on earth do the same with another nation who will most likely do the same?
Gold should be the reserve currency but that won't happen precisely for the reason I just gave. We want something that we can manipulate, gold is difficult and does not take to manipulation well.(in it's monetary role)
Doing the same thing over and over expecting a different result is the definition of ..............
Time to add a 51st state I guess; at least they speak English!
U.K. to Sell First Yuan-Denominated Bonds for Currency Reserves
12 September 2014, by Lucy Meakin (Bloomberg)
http://www.bloomberg.com/news/print/2014-09-12/u-k-to-sell-first-yuan-denominated-bonds-for-currency-reserves.html
Yuanification == Mummification of USD$
-------
Thumbs up to BRICS
Bite the dust -- you former colonist tormentors , murderers of millions and now hiding behind suave civilized curtain created by wealth looted from us.
Destiny demands its payback.
And remember the Juice virus has already infected the US economy , invading all cells & pockets of wealth , slowly reducing the entire steel frame to rust till it crumbles and becomes dust.
Destiny , again
they can't sanction the BOE, they own the Fed.