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China Pushes For More Stable Reserve Currency - Bye Bye USD?
Helpful non-confrontational, non-trade-war, conciliatory comments from China's finance minister Xie speaking at the IMF meetings.
*CHINA SAYS IMF SHOULD STUDY DEFECTS OF WORLD MONETARY SYSTEM
*CHINA SAYS IMF SHOULD DIVERSIFY GLOBAL RESERVE CURRENCIES
*CHINA SEEKS `STABLE VALUE' IN RESERVE CURRENCY SYSTEM
And in case anyone is still unsure of their commitment to slow growth:
*CHINA WILL SEEK TO MANAGE INFLATION EXPECTATIONS, XIE SAYS
Source: Bloomberg
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More chinky nonsense bluster, bitchez
Talking about your own drivel?
"All your resources are belong to us"
I have it on good word that the COMEX Futures Market is a Pump and Dump.
USD not going anywhere fast. Not until 10s30s is almost as flat as a pancake and 30yr at 2.25% or lower ...
one of these days, you really owe it to the world to compile a highlight reel of all your busted predictions that blew up in everyone's faces, most notably your own.
wheres yours?
LOL. Yes, conspicuously absent from the Gold/Silver Plunge post.
Ok, here it is.
For my next trick, I'll make a highlight reel of all of my predictions that have come true. It is gong to take a while, as there are so many of them.
Include a pic of your crystal ball, einstein.
And gold will continue to plummet. Nothing makes any sense anymore.
Sell ETF, buy bullion. Sense enough if you think about the ratio between paper-gold and physical.
Do not confuse panic with value. Do not look at weak hands -- for every seller there is a buyer -- question today is who is selling and who is buying...
I'm buying. Are you selling?
;)
Me too... added two tubes (one yellow and one of Devil's Metal just for grins)
and what is stable?? gold that is down 100 bucks today???????
This is one hellaciously high speed liquidation and credit crunch. A LOT of people went broke today.
Silver Bid: 30.73 Ask: 30.83 Change: -5.77
Gold Bid: 1,636.90 Ask: 1,638.90 Change: -102.80And China just fired a salvo across the USA's bow in the currnecy war. Expect it to get even more volatile in the next few weeks.
And it got worse ...
Silver Bid: 30.27 Ask: 30.37 Change: -6.23This Rhino got fucking skewered, thank God I'm not in margin .... just ride it out.
I'm hoping it drops another couple dollars so I can pop for a tube of eagles.
Yes, the paper PM pain. Wonder what the threshold is for PM pain of the physical kind.
China? Yet another arrow shot across another bow. Such a saga. This one may rival such old TV mini-series as Roots or Shogun in length, but I doubt many would tune in. Those short attention span bastards! Oh well, their loss.
That's exactly what I was expecting to happen at some point.
Now let's wait for the $100 UP day, soon to come to a casino near you.
NOT ENOUGH VOTES BITCHEZ!!
http://en.wikipedia.org/wiki/International_Monetary_Fund
although in the bond market they has all R Bases...
Ironically Donald Trump marked an intermediate top in gold (and bottom in dollar?) lol as he accepted gold rather than dollars for a lease deposit last week!
http://www.fundmymutualfund.com/2011/09/did-donald-trump-just-mark-near-...
Bette Midler once demanded gold as payment for her European tour in the mid-70s. Smart lady.
i have to say, that's pretty funny. Oh well, at least APMEX got a good deal.
As soon as Don "the Bankrupt" Trump opens his mouth, take the opposite side of the trade.
Yeah but he took it as a sec deposit so it's a liability for him.....
Okies short to The Donald.
The shame.
We are seeing a European based liquidity sell off today by funds and banks who are having to cover. This is of course being exploited by a narrow but very powerful group of central bank operatives, the bullion banks to press their short positions. I would guess this is also the full court press of every dirty trick that the gold anti trust action committee (GATA) has been discussing for years and from what I can understand they are hammering silver particularly hard because of some likely delivery issues and because the Pan Asian Gold Exchange opens next month and will begin taking physical metal off the market very quickly. We are also just entering into what is historically almost always a bullish quarter for gold. They are trying to hammer it down. The pundits are asking is the bull run in gold and silver over? I haven't sold a one ounce and plan to continue buying at these super low levels which are given to us courtesy of Operation Twisting in the Wind rather than real Quantitative Easing, which will be announced shortly in my opinion as the ESF will not be able to hold the stock market up much longer today. Looking at the price of gold we are having a fairly typical Fibonacci retracement, and the longer term trend lines are intact. I believe that the Powers that be know that they can not allow the liquidity crisis to continue in Europe and will do "whatever is necessary" to support the EU financial system and that means monetization.
As a long term value preservation investor, I don't believe for one minute that the US sovereign debt and the dollar which relies on it are a safe haven and just as I did in 2008, I am not selling my gold or silver holdings and am stocking up on gold and silver stocks now.
The US sovereign debt situation is really worse than that of Greece and ultimately either the central bank will embark on further QE or the entire financial system is going down in a way that looks 2008 look like a walk in the park. If that happens, sovereign default all the way around and gold and silver go up. So whether its monetization and associated currency devaluation or simply across the board sovereign default and the collapse of the global economic system, paper money which backed by bonds (which is debt) which backed by paper dollars, gold and silver are still the real money, despite the US, UK and Swiss central banks efforts to persuade you otherwise of that fact in today's paper manipulations.
I am in Gold and Silver for the long run. Don't use margin, and I always buy on the dips (and this is the best one yet) and only, if ever, sell on strength. Its a good day to take a nap and forget about the markets. Buy on weakness, sell on strength is a general rule I follow in investing.
Gold and silver are the real money and always have been. Currency is backed only by debt and extremely poor government policies will always become worth less and throughout history, that has always been true and will continue to be so.
Without conviction to the principles of truth, investors routinely get wiped out by their own greed and fear and panic.
"Duffminster
Agree. Only wish I had more dry powder reserved to buy more physical today. What a gift they are giving us!
GATA Contributor, Ranting Andy, on the current state of affairs. Join LeMetropoleCafe.com @ www.lemetropolecafe.com to get more of Andy's Rants. Plus other contributor's.
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DESPERATION ON G-20 ISLAND
Last Friday, the G-7 group of losers met to REACTIVELY figure out ways to fool the market into believing all was well. Just two days earlier, the Fed, ECB, BOE, and SNB agreed to an essentially UNLIMITED line of credit to ALL Western banks, but unfortunately the market didn’t buy it, so they put out a DESPERATE, HASTY, and VAGUE communiqué stating the following platitudes:
Central Banks stand ready to provide liquidity to banks as required.
We will take all necessary actions to ensure the resilience of banking systems and financial markets.
In days of yore, when the GREENSPAN AND BERNANKE PUTS were in place, and even during MELTDOWN I three years ago, such a powerful, broad-based statement from TPTB would have moved markets dramatically to the upside. Remember, we have been taught “DON’T FIGHT THE FED”, and in fact just this summer I was told by a broker that he bases client recommendations on what the Fed is doing, as, in his words, “Bernanke is the most powerful man in the world.”
But this stance didn’t work AT ALL, with the markets simply treading water Monday and Tuesday, hoping and praying the world’s most powerful man would save the day on Tuesday afternoon at 2:15 PM EST.
Unfortunately, and as I forecasted, he didn’t. It wouldn’t have mattered what he said, short of a HYPERINFLATIONARY, multi-trillion dollar QE announcement. ALL WESTERN MONEY-CENTER BANKS ARE BANKRUPT, and the reason their liquidity has dried up is because capital is FLEEING the system into REAL ASSETS like gold and silver, and of course U.S. TREASURIES thanks to QE (remember, the Fed said they will now purchase an additional $400 billion of long-term T-bonds). What is going on in gold and silver the past two days has NOTHING to do with these trends, it is simply an ALL-OUT PAPER ASSAULT to prevent the END GAME PM EXPLOSION that once and for all destroys confidence in ALL paper currencies.
The Fed announcement obviously failed to improve sentiment, instigating the worst stock market sell-off since MELTDOWN I. One can SEE, HEAR, and FEEL the FEAR from market participants, Wall Street, and politicians alike, as the “silver bullets” have all been exhausted. DESPERATION is front and center, as TPTB are being called on their bluffs, their helplessness, and their stupidity. As I have noted this past week in several RANTS, ALL that is left now is PRINTING MONEY TO MANIPULATE MARKETS!
The PPT is working overtime to support the stock market market, and the Cartel has broken every rule of financial physics in its maniacal goal of knocking down PMs, but nothing is working. Jawboning doesn’t work anymore, or “liquidity injections”, or even “all necessary actions” by the G-7, and now that the Fed meeting has passed, the market doesn’t even have any such “positive inflection point events” to hope for.
Sure, the ECB can boost the size of the EFSF, but the Germans already tipped their DESPERATION regarding this matter (could it be Deutschebank’s HUGE exposure to French banks?) when they announced this week that, in a sudden about face from their vehement opposition just a week earlier, they strongly support expanded EFSF powers to essentially bail out anyone, anytime. And obviously the markets DON’T CARE!
When I have an idea for a new RANT, I send myself an email as a reminder. As I got ready for bed last night, I sent “G-20” to myself. I KNEW the Wall Street polyanas would look past the recent OFFICIAL INTERVENTION FAILURES (such as the aforementioned G-7 statement and subsequent actions), focusing on how the G-20 meeting, which starts TODAY (Friday) and goes into the weekend would save the day.
But before I could even turn my computer off, I saw that, in an AMAZING ACT OF DESPERATION, the G-20 had already issued a communiqué, BEFORE THE MEETING EVEN STARTED! And in it, said essentially the EXACT SAME THINGS as the G-7 communique from last week!
http://www.zerohedge.com/news/g-20-pledges-strong-coordinated-sisyphean-response-global-challenges
Unfortunately, just a few hours later China and Japan quashed rumors/hopes that they would save the day with blank check bailouts (as if even THEY have that kind of money), so I woke up to see yet another bloodbath in banking shares (and, of course a much worse smash in Precious Metals, which WOULD have been dramatically higher if not for the coordinated attack by the Cartel).
In fact, silver is now DOWN 20% IN THE PAST 24 HOURS, yet again the WORST PERFORMING ASSET ON EARTH during a financial crisis which SHOULD yield exponential demand for REAL MONEY. This smash is now officially MORE INTENSE than the SUNDAY NIGHT PAPER SILVER MASSACRE in May, yet another demonstration of TPTB’s DESPERATION to averting the gold and silver MANIA which will, once and for all, END their reign as the world’s elite.
http://www.zerohedge.com/news/china-japan-tell-europe-no-blank-check-you
Just 10 minutes until the opening of U.S. markets, where the PPT is once again keeping stock futures down LESS than ANY OTHER MARKET on earth. Per last night’s RANT, currency market are again going haywire, wreaking havoc on international trade and, thanks to the dollar’s bastardized vacuum of strength, yielding increased inflation overseas which will not take long to manifest itself in additional “Arab Spring” type unrest.
…..
Perhaps the PPT can provide a stay of execution with the untold BILLIONS it plans to COVERTLY inject into the stock market today (I’d bet more printed money will be spent on stock futures than on ANY day in HISTORY), but given the IRREVERSIBLE, ACCELERATING collapse of the Western banking system, I wouldn’t bet heavily on it. If they can, big deal, the system will just come down next week, or next month, certainly by early 2012 in my view. But if not, it will represent the GREATEST DEFEAT IN PPT HISTORY, making today, from my jaded eyes, THE MOST IMPORTANT DAY IN STOCK MARKET HISTORY (at least until Monday). Not to mention, it will dramatically weaken the Cartel’s dominant position over PAPER gold and silver.
To conclude, I believe even my most disbelieving readers, as well as a growing proportion of the population at large, are starting to realize this perfect storm of politician/banker hubris may actually have destroyed the system for good, and once a large enough critical mass believes it, ALL FORMS OF CENTRALLY-PLANNED MANIPULATION will fail, including the PPT, ESF, Gold Cartel, and all bailout mechanisms.
That tsunami may reach our shores MUCH quicker than anyone could have imagined, and when it does, the time to have PROTECTED YOURSELF will have ENDED.
RANTING ANDY
VXX still making new highs.
Bottom is not in yet.
That's it. Biggs indicator and now Robot indicator flash, too much.
what the fuck is up with silver.
no kidding. methinks it might be time to back the truck up. O_o
10-yr. note futures still struggling after today's spike high.
FU China bitchez, FU Congress, FU Fed, FU Blythe you whore!
Indeed bye-bye USD. A basket of currencies will most likely be in our future soon.
No way is the USD going away ... the zEUro is collapsing and the dollar as bad as we have it is not going away just yet. In fact China is making an s load of money on their treasury holdings and someone may need to clue this beaurocrat in on the trade. As bad as our economy is people still prefer the US treasury and US dollar when things are dicey globally.
I take the contrarian view, the reson our currency is being devalued is because the items you can buy with it have been devalued. We should strike an accord with China...They stop selling us shit products and we'll stop paying them with shit currency.
But...but....that is the entire basis of our trade agreements with them!
Grrr double post again, sorry.
Minister Xie also pointed out ( not really, but he's thinking it) " We have 100 million Chinese each buying an average of two grams of gold every month. This means we are accumulating approximately 2200 tons of gold a year. Pretty soon we'll have all your gold, and then let's see whose currency is the world's reserve"
"Oh", Xie continues thinking" and our friends in India are doing the same, as are our friends all over Asia who would love to see the Yuan replace the US Doller. Silly rabbits - go ahead and sell us your gold because the Comex paper price is being manipulated down - temporarily. Pity nobody has ever taught you round-eyes to think beyond the end of your dick."
Well I just beat the average Chinese citizens
yearly gold purchase quota for the next ten years.
"Oh", and if you're Chinese it doesn't take much
to think beyond a dick that small.
China has friends all over Asia? Who besides North Korea and Burma which would both collapse without China support?
Even if China does get most of the gold - would you put your savings into something controlled by the Chinese Communist Party who might decide to confiscate it at any time? Admittedly, similar process takes place with US banksters but it's usually slow and they don't yet have the ability to send you to work in a salt mine until they can auction off your body parts
Football boy on CNBS says "buy NFLX"
What an ass!
Silver touched 29's!
If the Chinese wanted more stable currencies they should stop manipulating their own.
The real reason they want a different reserve currency is so that it will be easier for them to manipulate their currency against the whole world all at once rather than just against the US.
CHINA SAYS AFTER THE NEW CURRENCY IS AGREED UPON THEY PLAN TO CONTINUE WITH MERCANTILIST POLICIES WHICH WILL MAKE THEM RICH BITCHEZ.
Fuck the Chinese, they have some nerve talking about a dysfunctional global currency system when they dont allow their own currency to be traded freely.
When will we stop taking them so seriously, and treat them for what they are, a factory for cheap shit, designed with foreign IP?
And so what they own enormous amounts of US debt? More fool them.
So tell me why the USD deserves to be the reserve currency of the world? Is it backed by something so special that all other nations should depend on it? Is the US a bastion of security and financial strength? So tell me why Amercia gets to spend like there's no tomorrow, but doesn't implode from hyperinflation? Oh, that's right, because other countries have to buy the USD as a medium of payment with other countries, thus keeping an artificial floor on its value. So give it up, and you'll have your pegs unpegged!
Becuase the US has the biggest military and lots of bombs.
And... a powerful media empire, powerful police forces, state sponsored detrimental hard-drug dealing (both pharma and illicit sub.), unregulated price tags for politicians, and a whole bunch of people that love the american lifestyle to a point that they get in the way of anything that may require they give it up...
And we like to use them. If it has no conceivable economic benefit to the average citizen - that makes it 10 times better
It is other countries that make the USD the reserve currency, not the US. When China buys oil from Venezuela those two countries can choose to do it in whatever currency they can agree on.
Aircraft carriers.
Nuclear submarines.
Pretty special.
Reserve currency has always gone to the country with the strongest military. So USD is still king for now.
No need to be stuck looking behind when planning the future.
So, Bush/Obama's ass kissing of China has bought us nothing?
Shocked, shocked, I am!
Its bought the west "outsourcing"...That's not nothing. It a way of life for the Oligarchs. And a way of slavery for the sheeple. Too bad there are so many sheeple and so few oligarchs.
Big salvo let loose in the currency war.
We've lost the privilege of Reserve currency by squandering moral and economic reputation.
....ah hell, bomb the sh*t out of China! /s
But there's no OIL in China!
Just wait till China takes oil deposits that they have dispute about and voila.
Let's sell them some !!!!
Rabid, Rampant consumerisum is unsustainable........
"China" has been saying that for how long? Meanwhile they keep buying T's and so. Yaaaawn. If "China" wants a better reserve currency, why don't they themselves issue one? Gold/silver backed. Or just PM coins. Nobody stops them.
This is exactly why, despite all the complaints by the Tea Party, what the global economy needs, and will ultimately get is continued Quantitative Easing and the actual expansion of the Fed balance sheet.
While the fact that we are now fully dependent on Quantitative Easing to prevent a full on global financial meltdown is the result of the 40 year experiment in currency backed only by debt and debt backed only by paper money and the associated ability to then expand debt without practical limit of ever being repaid, that is the current reality and short of global financial, social and market chaos, quantitative easing is needed and needed now in aggressive quantity. I don't like the reason that QE is the only way to prevent a global financial meltdown but I know it is true and I know that today's desperation move by the central market manipulating authorities is a sign of sheer desperation.
I would gather that the Chinese are selling treasuries into strength and placing delivery orders with COMEX and the London metals exchanges at these rates offered courtesy of a Western Central bank orchestrated gold massive silver raid that is flushing the weak longs that have no macro vision and associated conviction there to. What a gift to China by our fearless "leaders." The Fed should be buying gold.
I wonder if Hugo Chavez has gotten his gold delivered yet.
Any new reserve currency would just be a basket anyway.
China is free to construct their own basket consisting of various currencies (including Euro instruments from different issuers) and strategic reserves of non-perishable commodities.
ZH,ers still dont get it yet, Keep your gold "NOT PAPER GOLD" hidden in the back yard.
Think Global chess.
Where is our millitary currently postioned.
Where are we -secretly-engaged in "Regime" change?
I read a couple days ago in a blog that CBI (Central Bank of Iraq) announced Iraq will sell oil in Dinars.
Looks like the NID will become a 'diversified' global reserve currency. Cash is king.
Last I checked traders were waving bye to gold & saying hello to "daddy" USD