The Chinese Buy Billboards Announcing The Renminbi As "The New World Currency"

Tyler Durden's picture

Submitted by Simon Black via Sovereign Man blog,

When I arrived to Bangkok the other day, coming down the motorway from the airport I saw a huge billboard - and it floored me.

The billboard was from the Bank of China. It said: “RMB: New Choice; The World Currency”

Given that the Bank of China is more than 70% owned by the government of the People’s Republic of China, I find this very significant.

It means that China is literally advertising its currency overseas, and it’s making sure that everyone landing at one of the world’s busiest airports sees it. They know that the future belongs to them and they’re flaunting it.

And it’s true. The renminbi’s importance in global trade and as a reserve currency is increasing exponentially, with renminbi trading hubs popping up all over the world, from Singapore to London to Luxembourg to Frankfurt to Toronto.

Multinational companies such as McDonald’s are now issuing bonds in renminbi, and even sovereign governments are issuing debt denominated in renminbi, including the UK.

Almost every major global player out there, be it governments or major multinationals, is positioning itself for the renminbi to become the dominant reserve currency.

But here’s the thing. Nothing goes up and down in a straight line. And China is in deep trouble right now. The economy is slowing down and the enormous debt bubble is starting to burst.

A lot of people, including the richest man in Asia, are starting to move their money out of the country.

So while the long-term trend is pretty clear – China becoming the dominant economic and financial superpower – the short-term is going to look incredibly rocky.

We talk about this in today’s short podcast with Sovereign Man’s Chief Investment Strategist, Tim Staermose, which includes a few ways to actually make money from China’s short-term unwinding.

Click image below for detailed podcast...

 

 

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Truther's picture

Check Mate.... Mr. Dollar

TruthInSunshine's picture

What a crock of shit.

The only thing more soaked with formaldehyde than the Chinese Paper Fiat is Simon Black, con man extraordinaire, himself.

HamRove's picture

A central bank is a central bank is a central bank. 

Whether it's in China or the US, or Japan. They are all going away. 

JimBowie1958's picture

The US dollar is backed by oil, as the petroleum nations demand payment in USD alone. Until something changes in this monopoly, the USD is not merely a fiat currency and people should understand that.

Of course this is purelky arbitrary and could change over night, unlike dollars that are redeemable in gold or silver.

So what is China backing the Renminbi with?? Advertising?

 

JLee2027's picture

Oil cannot back a currency directly as the average Joe cannot and would not want to exchange his dollars for barrels of oil. Can you see a bank with barrels of oil outside ready to be exchanged? But I do agree that oil has pushed back the day of reckoning for the USD. But it will come and be a doozy. 

Publicus's picture

Time for China to print Yuan to fund basic income for everyone.

 

I for one welcome our new Chinese overlords.

kaiserhoff's picture

Sure, why not?  Let's all be bazillionaires;)

NoDebt's picture

The World Currency..... which is pegged to the dollar.  Zzzzzzzzz.

Money Boo Boo's picture

...... which is pegged to the printer.....which is pegged to the MIC.....mmmmmm

Thirst Mutilator's picture

 "When I arrived in Bangkok the other day..."

 

I fucking stopped there... Maybe Simon is right though, because if I moved to Thailand, I could probably get somebody to clean up my barf for cheap after reading these pulpit sermons.

Troll Magnet's picture

...... which is pegged to the printer.....which is controlled by The Chosen People with dual citizenship.

 

We.Are.Fucked.

0b1knob's picture

China announces the new World Currency in Thailand with posters printed in English?

Am I the only one who notices the irony of this?

NidStyles's picture

Looks more like a gold coin playing the part of the sun at the top of the pyramid with that big circle of an eye along with it.

Self-enslavement's picture
Self-enslavement (not verified) NidStyles Mar 5, 2015 2:02 AM

If I apply for dual citizenship, will they let me create hollow start ups and funnel millions into my pocket too?

gold-is-not-dead's picture

China is number one globaly since mid 2005. Check the USD/CNY chart

 

 

 

http://i.imgur.com/lE5DD9R.png

Self-enslavement's picture
Self-enslavement (not verified) NidStyles Mar 5, 2015 2:02 AM

If I apply for dual citizenship, will they let me create hollow start ups and funnel millions into my pocket too?

cornfritter's picture

Chinese food is awesome, and the women are very beautiful.  The men folk seem wound up too tight, but with a little rock n' roll and a few lefties it might work

Never One Roach's picture
Russia, Egypt May Exclude US Dollar And Use National Currencies In Bilateral Trade: Putin

 

http://www.ibtimes.com/russia-egypt-may-exclude-us-dollar-use-national-c...

doctor10's picture

Yah-dincha hear? Obam "trade-sanctioned" his Marlboros....

drdolittle's picture

They have nice skin and, for the most part, are not land whales. They got no titties and no ass to smack around. I'll keep my caucasians, thank you. Agree about the food and the need for lefties.

Bro of the Sorrowful Figure's picture

live in china. most of them have acne, no tits, no ass, long torsos with short legs, ridiculous bush, an entitled attitude thanks to the one child policy, and spreak engrish rike dis.

NidStyles's picture

I find them to just be rude in general. Appearances are not static, nor are they universal.

Self-enslavement's picture
Self-enslavement (not verified) NidStyles Mar 5, 2015 2:05 AM

Violent little things.

Crisismode's picture

soooo. . . .

 

What's the downside?

 

studfinder's picture

Chinese women are horny all the time.  American women are horny until they have kids, then they turn into pigs.

amadeus39's picture

How do you speak chinese? You flatulent, furry ameritard.

 

DaveyJones's picture

arbiitrary is an imaginative way to describe killing iraqi and Libyan leaders who suggest oil backed by anything else. 

Arbitrary is also an odd way to label the US who will soon learn that you can not exponentially expand your military, your enemies and your debt forever   

agent default's picture

It is said that 90% of the USD value is the US military.  Which explains the reason petroleum nations stick to the USD.  As China ans Russia challenge US authority and military power, the more credible the threat, the more the petroleum nations will feel the pressure to diversify, or get out of the USD standard altogether.  Once two sides can play the bomb you at will game, it is over for the US.

logicalman's picture

The US dollar is backed by the US military.

 

Whalley World's picture

Right, the metal backing the USD is battleship grey steel.

doctor10's picture

...some would say plutonium.

Bankers R Wankers's picture

They are backing it with 300Million empty Housing units!

Mr. Magoo's picture

  I guess the Chinese are on a gold buying spree and hoarding it because they like the color, I am sure they have no intention of backing their currency with it.

Kayman's picture

China should unpeg the Renminbi or else shut the fuck up.

JRev's picture

They're waiting for the "opportune time," i.e. when the IMF is ready.

http://bis.org/review/r090402c.pdf

Read the policy papers from PBOC and the BIS, which tell you clearly that the post-Dollar world is going to be yet another globalist screwjob with a fresh coat of Chinese gold paint, or shut the fuck up. 

Jesus fucking Christ, can people even think for themselves anymore, or is parroting alt-media memes all you ignorant shits are good for these days? This place used to have a plethora of independent researchers in the comment sections, now it's a community of regurgitators.

N2OJoe's picture

Yes but do not presume that YOU will be able to redeem any RMB you may hold for gold. Even under the Bretton Woods standard, peasants could not exchange their dollars for gold, only the central banks had the freedom to do that.

moratar's picture
moratar (not verified) JimBowie1958 Mar 4, 2015 7:47 PM

I don't understand why Russia sells oil by dollars, they should be first to kick FED in ass and sell oil/gas using Renminb. What interest does Russia has to keep US economy running. US is official enemy after all, why Russia is helping them.

Herd Redirection Committee's picture

Depends.  If you spend that dollar immediately (to buy gold, for instance), then its not really an issue.

Socratic Dog's picture

And it keeps the whole charade going, while you accumulate all the world's gold at manipulated bargain-basement prices.

Not much incentive to rock that particular boat.  Or if you do, do it very gently.  Why fight a giant when he is busy destroying himself?

steveharless's picture

So what is China backing the Renminbi with?? Advertising?

 

G O L D is what they are backing it with,,,,,NOT PRINTING MACHINES!

daveO's picture

The billboard implies gold. 

sessinpo's picture

The dollar and any other fiat is backed by enslaving its population of serfs. Oil or anything else is just a conduit. But it takes the labor of the serfs to make it happen. That includes gold. Someone has to mine it just like someone has to extract oil.

And as for the military backing a currency, where does the military get its financial support? From the taxation of the labor of us serfs.

Thus again, it always comes down to us serfs that pay for everything.

pgroup's picture

Unless one of them is backed by the barbarous relic. And us smart guys know which one that is, don't we boys and girls?

kaiserhoff's picture

Whatever.

  Shouldn't they cut their apron strings to the dollar BEFORE claiming to be the world champions?

Central Bankster's picture

Look, if the RNB was going to be the new world currency, they wouldn't need to *sell* the idea with a billboard. Guess the RNB longs will be the new bagholders somehow?

astoriajoe's picture

which points do you disagree with?

HamRove's picture

A central bank is a central bank is a central bank. 

Whether it's in China or the US, or Japan. They are all going away. 

sessinpo's picture

Fantasy thinking. They aren't  going away. More then likely, millions of serfs are going away in WWIII while the bankers go on. History repeats.

e_goldstein's picture

 Hey, buddy, wanna buy a watch?