The Dollar Decline Continues: China Starts Direct Convertibility With Asia's #1 Financial Hub

Tyler Durden's picture

Submitted by Simon Black via Sovereign Man blog,

Earlier this week some of the biggest financial news of the year made huge waves all over Asia.

Yet in the Western press, this hugely important information has barely even been mentioned.

Singapore dollar news The dollar decline continues: China begins direct convertibility to Asias #1 financial center

While this is ignored in the US so far, it’s front page news in Asia

So what’s the news?

The Chinese government announced that the renminbi will become directly convertible with the Singapore dollar... effective immediately.


It’s clear this deal has been in the works for a while, and it’s another major step towards the continued internationalization of the renminbi and unseating of the dollar as the world’s dominant reserve currency.

For decades the renminbi has been a tightly controlled currency. It’s only been in the last few years that the Chinese government started loosening those controls, primarily in response to the obvious need for a dollar competitor.

The entire world is screaming for an alternative to the dollar and the US government.

Since the end of World War II, the US has been in the driver seat. The Fed essentially sets global monetary policy. Foreign banks are forced to rely on the US banking system. Nearly every nation on earth must hold US dollars and buy US government debt just to be able to trade with one another.

These were sacred privileges entrusted to the US government. And they have been abused time and time again.

The US government spies on its allies. It uses its banking system as a weapon to threaten foreign companies. It fines foreign banks billions of dollars for doing business with countries it doesn’t like.


They discredit themselves by continuing to indebt future generations and failing to make tough fiscal decisions.


And the Fed has printed so much money that major foreign institutions are left with no choice but to seek an alternative. Enough is enough.

China is taking the lead in providing the world with another option. And they’re not exactly doing this under cover of darkness. These moves have been widely telegraphed, at least to anyone paying attention.

For the last few years the Chinese government has entered into new ‘swap agreements’ at blazing speed, allowing other nations’ central banks and governments to hold the renminbi in reserve.

They’ve concluded direct trade arrangements (notably with Russia) to settle oil and gas deals in renminbi.

This summer we saw the establishment of a Chinese-led supranational bank intended to compete directly with the IMF.

Just last week the British government issued a new government bond denominated in renminbi.

And now this– direct convertibility between China and the #1 financial center in Asia, making it possible for ANYONE to trade and hold renminbi through Singapore.

It’s so obvious where this train is headed.

But again, this story is hardly covered in the Western press. They’re living in a dream world where King Dollar still reigns and the US is the only superpower in the world.

Nonsense. It’s imperative to stop listening to the propaganda and start paying attention to facts:

The US government has accumulated more debt than any other nation in the history of the world… and is in a position where they must borrow money to pay interest on the money they’ve already borrowed.


The Federal Reserve (which issues the US dollar) continues to erode its balance sheet. According to last Wednesday H.4.1 report, the Fed’s capital base is a minuscule 1.26% of its total assets.


A year ago it was 1.42%. That was bad enough. But on a proportional basis, the Fed has lost another 11.3% of its capital in the last twelve months.


And according to the Society for Worldwide Interbank Financial Telecommunication (SWIFT), international bank payments denominated in renminbi have nearly tripled in value in the past two years.

These are all objective facts which point to the same conclusion: this current dollar/debt-based system is on the way out.

It’s not going to happen overnight, but we’re already seeing a slow and orderly exit. And we can see the rest of this trend unfolding years in advance.

Ignoring this could be very hazardous to your financial well-being. And while the Western media might be totally clueless, there are plenty of options for forward-thinking individuals.

  • Consider holding Hong Kong dollars in addition to US dollars. Hong Kong dollars are currently pegged to the US dollar, so the currency risk is minimal. But if the US dollar declines sharply, Hong Kong (controlled by China) could easily de-peg. This mitigates your downside risk.
  • Consider trading paper currency savings for productive REAL assets like farmland and private businesses which capitalize on key growth trends.

There are dozens of other solutions out there. You’ll be able to find some that are just right for your circumstances.

*  *  *

Our goal is simple: To help you achieve personal liberty and financial prosperity no matter what happens.

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Slave's picture

Reggie gave Obola ebola.

Thanatos's picture

Like I have been saying..

What the US asshats do (FED) becomes less important every day.

knukles's picture

Talkin' about important...

FEMA's doing Ebola (pandemic) drills in NJ and NY

Now, I wonder if that historical fcorrelation between drills and actuality is going to hold again?

max2205's picture

We're all Chinese now.....

Rememberweimar's picture

Jew world order has been replaced by a Just world order...

petkovplamen's picture

Exactly what I been saying for a while now. The century of the Jew is over.

tarabel's picture



You and Remember Nuremburg sound like a couple of black democrats. Nothing is ever your fault. It is all about The Man. He stole from you. He tricked you. He owes you.

And when his downfall finally comes...

Well, you'll be out there looting with the rest of the brothers. 

Right on. (fist bump)



tarabel's picture



Die neue ordnung is the term you are thinking of when you speak of the Just world order. 

kchrisc's picture

"Relocation is temporary, and only for your protection. Bring only essential items that you can carry.The ReadyReserve will look after your yards and pets. Do not worry, you will return home soon."

An American, not US subject.


H.R. 3590 now Public Law 111-148 ^ | March 2010 | Congress, Obama

Posted on 04/02/2010 1:39:55 PM PDT by mbarker12474

SEC. 5210. ESTABLISHING A READY RESERVE CORPS. Section 203 of the Public Health Service Act (42 U.S.C. 204) is amended to read as follows: ‘‘SEC. 203. COMMISSIONED CORPS AND READY RESERVE CORPS. ‘‘(a) ESTABLISHMENT.— ‘‘(1) IN GENERAL.—There shall be in the Service a commissioned Regular Corps and a Ready Reserve Corps for service in time of national emergency. ‘‘(2) REQUIREMENT.—All commissioned officers shall be citizens of the United States and shall be appointed without regard to the civil-service laws and compensated without regard to the Classification Act of 1923, as amended. ‘‘(3) APPOINTMENT.—Commissioned officers of the Ready Reserve Corps shall be appointed by the President and commissioned officers of the Regular Corps shall be appointed by the President with the advice and consent of the Senate. ‘‘(4) ACTIVE DUTY.—Commissioned officers of the Ready Reserve Corps shall at all times be subject to call to active duty by the Surgeon General, including active duty for the purpose of training. ‘‘(5) WARRANT OFFICERS.—Warrant officers may be appointed to the Service for the purpose of providing support to the health and delivery systems maintained by the Service and any warrant officer appointed to the Service shall be considered for purposes of this Act and title 37, United States Code, to be a commission

Bloppy's picture

Feels like Singapore will be one of the few places to survive the collapse. They have their crap together.


Elsewhere- woman's catcall video overshadows boring election, but now she's getting threats:

arby63's picture

Just a snipet I read on wikipedia with references:


The Singapore Economic Development Board (EDB) continues to attract investment funds on a large-scale for the country despite the city's relatively high-cost operating environment. The US leads in foreign investment, accounting for 40% of new commitments to the manufacturing sector in 2000. As of 1999, cumulative investment for manufacturing and services by American companies in Singapore reached approximately $20 billion (total assets). The bulk of US investment is in electronics manufacturing, oil refining and storage, and the chemical industry. More than 1,500 US firms operate in Singapore.

LMLP's picture

Outdated..... a couple of Indian or Chinese Singaporean PR's are worth more than that

NotApplicable's picture

So... is she bread, or a circus?

Bananamerican's picture

"private businesses which capitalize on key growth trends"

like what?

knukles's picture

EBT card expenditures.
Tatoos, tobacco, Hostess Twinkies and Ho Hos, malt liquor (40's preferably), fried chicken...  to name a few.

COSMOS's picture

We were FUCKED when back when we let the Zionists take over our Fed and financial institutions.  In the collapse they will sit quite well on all the assets and companies they purchased with the currency they turned to crap.

MontgomeryScott's picture

It's funny, seeing the totality of the reality I was exposed to; regarding the truth of your statement.

Most people can't tell the difference between a pissing dick and their sister's titties (nowadays). They're SO preconditioned that ANY reference to 'ZIONISTS' immediately makes them think of 'radical group apartied conspiracy nutjob tinfoil-wearing crazy radical fuckers', or something. Even presenting scientific and mathematical LAWS which are unable to be broken regarding certain events (which they have been preconditioned to IGNORE because the PTB have brought them up from childhood) is not enough. SOMETIMES.

NO. WE were FUCKED since 1871, NOT 1913.


Keyser's picture

It is not whether the US is fucked or not, as we all know it's fucked beyond belief and it's only a question of time before collapse befalls this once great country... The question is do you want to be at ground zero when the SHTF? 

Lynn Trainor's picture

The fulfillment of Daniel 12:1 is getting very close.  At the time of the end there shall be a time of trouble such as never was since there was a nation.  And the second coming is finally to occur.

TVP's picture

ey man, ats RAYCISS

Monty Burns's picture

Maybe, But interestingly the proportion of international FE reserves held in dollars has remained almost static (at about 62%) over the last 5 to 7 years.

disabledvet's picture

Wait until China and India go to war.

Appears imminent btw...

petkovplamen's picture

"were" or "we're"? small things make a big diff you know...

eyesofpelosi's picture

Hopefully their money isn't as shitty as the stuff they make for Walmart.

arby63's picture

It matters not what China does. If/when our economy collapses: They have a civil war within 24 hours. They are built on the ability of Americans to consume. No further argument necessary. 

petkovplamen's picture

So how many hours in USA before Civil War South VS North begins after USA collapse?

FredFlintstone's picture

North/South? How about flyover vs the coasts?

Slave's picture

Move your ass to the Central Plains or Mountain West if you have a brain in your head.

That is all.

MontgomeryScott's picture


The Central Plains and the Mountain West are too hot in the summer and too cold in the winter. Pay scales are too low. People in these regions are racist. They are mostly 'conservative'. 'Growth' to THEM means going out to the dirt and watching plants grow. There are no Elon Musk 'charging stations', so the car you bought will be WORTHLESS. They hang on to their guns and their 'God' (Obola warned us about people like this). They beat their wives and children. They live in trailers and drink until they can't see, and go out in Chevy and Ford pickups with gun racks, looking for trouble. They like 'country music', for God's sake! SOME people even think that carrying WEAPONS (including 'LONG-GUNS') is somehow a pre-existing 'right'! The GOVERNMENT gives us RIGHTS!

DO NOT MOVE HERE (Oops, I mean, don't move THERE).

tarabel's picture



Motion seconded.

DO NOT MOVE HERE (Oops, I mean, don't move THERE).

Nil Sine Numine

BorisTheBlade's picture

Sounds like a beatiful place. WTF is wrong with me.

Joenobody12's picture

And many of them dont have front teeth.

BrokusDickusMaximus's picture

Bugged out to NE Wa. Mountains last week. To hell with East Texas! I'm just gonna watch it all burn down.

OldPhart's picture

My though exactly.  When you hit the California border I'll escort you through the desert to the coast.

RaceToTheBottom's picture

Nonsense.  It will not be geographical, it will be financial.

Have VS havenots.  Takers VS takees

A final indication of the gov having this knowledge will be how much free stuff they ladle out to deaden the urge to fight.

hootowl's picture

The South is overburdened by the massive infestation of the imbecilic Ebonic Plague.  It will be difficult for the South to survive when the beheadings begin.

hootowl's picture

When EBT stops it will be chaos, the leeches against the producers........unfortunately the leeches outnumber the producers.

lasvegaspersona's picture mention of gold. It is the  one asset that will replace the dollar as the reserve asset. As such must be valued higher. I pick that over farmland.

disabledvet's picture

"War in the Clouds." Look it up.

besnook's picture

as soon as everything is fractionally backed by gold the system is viable.

Joenobody12's picture

Watch how the Swiss vote in November.

Callz d Ballz's picture

All fun and games until EBT stops working.

angryBuddhist's picture

This comes as no surprise to anyone who has been paying attention. The writing has been on the wall for several years now.

Miketheterrible's picture

Congradulations China.  I hope you will be a more responsible player in the political front than US has been.