There Can Be Only One: China Sovereign Wealth Fund Says Renminbi Will Become Reserve Currency

Tyler Durden's picture

First the CIC stirs havoc in Europe, saying it would rather invest in Africa than in Brussels finmin summit caterers, which at this stage in the business cycle are the most profitable corporation imaginable... and now this:

 

  • CIC'S JIN SAYS RENMINBI WILL BECOME GLOBAL RESERVE CURRENCY

 

Naturally, to parahprase titles of cheesy 80s movies, there can be only one.

So what would happen to the current one? Maybe the same as what happened to all the prior global "reserve" currencies:

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
bmusic's picture

Who want's to live forever?

SilverTree's picture

It will be a fight to the death.

malikai's picture

He'll cut his own head off.

Manthong's picture

Well, if everybody is just a Ben Bernanke and Chuckie Schumer peon, why should anybody care?

Ahmeexnal's picture

euro is dead. anyone holding significant amounts of that shit will get creamed.

strannick's picture

Highlander cheezy? May the Kurgan hack yer head off

Popo's picture

In this case the Kurgan may hack it's own head off.    The only thing more FUBAR than US and European banks are Chinese banks.   

 

FEDbuster's picture

We had a good run.  My guess is we won't go down without a big fight, after all the US military is the only thing backing FRNs now.

BenLightYear's picture

Backing the RMB with gold? The RMB becoming the new reserve currency? If backed as in redeemable china will shortly find out the issue Nixon did. If not backed in redeemable then it's no different than any currency today. In regards to new reserve currency I gotta say I'm curious as too who on the planet would feel better holding RMB than euros or USD. Granted neither of the latter are perfect but much more sound than the RMB. If any country had a basis for a reserve currency it would be Russia and Russia knows all too well the pitfalls of having reserve currency and know they can easily outweigh the benefits if your not careful.

Personally I wold love nothing more than too see countries move away from the USD. We have enough military power to not have to worry about other countries military expansion, enough oil that if we encased good energy policy we would book, the best food production to consumption ratio in the world, and seem to be ready to get our jobs back. The RMB going reserve currency would all but guarantee our jobs came back home.

Sadly I wouldn't place bets on china gettin reserve currency status based solely on production that only exists because their currency is weak as shit which would change the minute they got that status. A bit of knowledge combined with analytical thinking is enough to call bullshit. I swear sometimes this website seems its just a KGB plant. I'm all for informing and providing knowledge but it seems this sight has turned from an economic website to a hard promoter of the downfall of America. The scary part is the comments seem to not only agree but also encourage said thoughts. If any of you think Russia or china would be a better world power than the USA has been I suggest a little reading of history.

About a week ago I started commenting again to a lot of readers dismay. A few thousand down arrows later you will all be happy to know I'm not commenting anymore. I could care less about the down arrows, or the permanent bull attitude towards certain assets, or even the lack of thinking so many here display. What I do care about is the day to day dealing with so much desire to see the downfall of a nation that defied history. If you think we could have these discussions if history had not turned out the same way for this country you are plain and simple ignorant.

Some days I almost wish what so many of you espouse actually came true so you could realize how wrong you are. How quickly you would look back and wish things hadn't changed. The problem of course is that not one of you would still comment here and the entire world would suffer especially the USA.

My last parting comment is I suggest actually reading some economic treatise, theory, papers, and history. I get the feeling so much of what you all purport to be knowledge is actually gleamed from someone else's conclusions from what they discern. The comments I have received in regards to my comments clearly show tis is the case. I apologize to the 5 or so posters who will be offended by this who my comments are not meant for. I am so sad I live in a time and place where knowledge is so accessible and acceptable yet so many choose to stay sheeple. Don't think that by reading this sight and blindly buying metals and urging the downfall of this great nation you are not the same as someone who gets all their news from fox news channel. You are the same. Good day and best of luck.

BenLightYear's picture

Sorry one last comment I forgot I had to make from the other day. This advocating of holding silver for when hyperinflation hits is arguably the dumbest thing I've heard. Silver was for a short period of time a monetary metal and won't be again due to lack of how much their is. As a commenter the other day clearly stated when hyperinflation hits it is horrible for business. You are attempting to profit from holding an industrial metal In a circumstance that would be horrible for industry. I said this many times and will continue to say it. If you want to prepare for hyperinflation land and gold are the assets you want. They are wealth. They are truly inflation protected assets in any type of climate. Notice chinas slowdown in lock step with the difference in drop between gold and silver? Best of luck to you all.

kito's picture

ahmeexnal, love your comments, but the euro isnt going anywhere. it will become leaner and meaner when the dust settles....

dbomb12's picture

Sure enough, after they default on all thier debts it may still be there then we can call it the Papiermark

o2sd's picture

Sure, once gold priced in EUR goes to 3 trillion, they will reissue the currency as deutscheuro.

 

sunaJ's picture

not before he eats the tail.

malikai's picture

I'm pretty sure the tail is on our menu.

ultimate warrior's picture

WWiii right around the corner. At least that will take care of our unemployment problem.

dwayne elizando's picture

And our overpopulation problem. Fuck I've got anxiety from this "new economy".

pupton's picture

I wonder how right you may be SilverTree.  For the historians in the room, how many of these currency transitions happened peacefully and voluntarily vs. how many were connected with a major shooting war?

SilverTree's picture

James Rickards "Currency Wars; The Making of the Next Global Crisis

http://youtu.be/h6hvjJeyZi0

pupton's picture

Heh, Jim Rickards looks like "Kevin" from The Office.

Pete15's picture

Porter Stansberry is convinced China will use Gold to back their currency. Im reading Currency Wars now too, maybe they are planning for the eventual end of the currency wars?? 

KandiRaverHipster's picture

comments disabled?!  how can i take this youtube video seriously?

Peter Pan's picture

Why should the reserve currency be the dollar or the renminbi? Why can't it be the silver coin that our forefathers used right across Europe and Asia for centuries?

It seems to me that the fiat toilet paper which has been used to enslave the world is about to be flushed just before it is used to wipe some bankers off the arse of the world.

Deo vindice's picture

Peter Pan - you are right.

Why indeed? Why not just make gold or silver the reserve currency?

Oh, right. There's the bankers, the greedy politicians and the military-industrial complexites ... all of whom would no longer be able to continue their choice of perversion as an excuse for making a living.

Frastric's picture

The only reason why the USA is not invading China, is because China has about a trillion dollars worth of USA bonds. Every country that has threatened the petrodollar's influence has been invaded by the USA (think Libya, also Iran to the way it is going). China though has leverage over the USA, but when the leverage ends it will be a fight to the death...

BigJim's picture

Nukes are the reason the US will not invade China.

Umh's picture

Our political leaders are willing to fight wars with imaginary enemies like Somalia and Afganistan where they are assured of a draw. The problem with politcians is that they are are only looking to get reelected instead of being statesmen.

LongSoupLine's picture

The Renminbi...

 

 

Coming to an AMC theater near you!!

Hulk's picture

Now showing: "The Chinese connection"

whatsinaname's picture

did not see the Roman currency in that historic chart..

AbelCatalyst's picture

This is a very significant development and explains why China has been hoarding massive amounts of Gold. The fact that China is saying this outwardly shows how close they are. My guess is the next step is to announce a gold backed currency that people will flock to amidst the sea of fiat.

Not good for the US, but it will be interesting to see what happens to the value of china's new currency when they back it with gold and unpeg from the US Dollar. My guess is it will go through the roof and absolutely kill their exports. They better be prepared to have more consumption at home or this little gamble may result in massive riots and a revolution, which would immediately kill their desire to hold the world reserve currency!!

Things are really starting to get interesting now!!

ElvisDog's picture

A simple question, what was the rate of growth in China's money supply the past few years? High double-digits if I remember. And their money is going to be the new global reserve currency, the dependable store of wealth that the rest of the world will be happy to hold? Good luck with that dream China Sovereign Wealth Fund.

10mm's picture

Riots,they will step on their own in a heartbeat as they shown in past.

Don Keot's picture

Seems like everything I use is made in China.  It will take time for us to get up and running, until then we may have to pay for our goods with gold.  BTW we are not the only ones that buy almost everything we use from China.  When the bonds are due, can they demand gold or will we say FRNs are good for all debts, public and private.  I remember when we loaned Mexico the money to pay the interest the money we loaned them.  As I recall that did not end well.  Now the shoe is on the other foot and it's China that is loaning us the money to pay the interest on our debt.   

vast-dom's picture

China the cultural economic sinkhole of planet earth will grind everyone into raw materials only to shit you out....

ziggy59's picture

You may want to include fee fi fo fum...

francis_sawyer's picture

Keep printing... grasshopper...

Hulk's picture

The Journey of a currency devaluation starts with the printing of a single dollar...

 

I seek unflouridated water...

cougar_w's picture

It's better to burn out than to fade away.

francis_sawyer's picture

the king is gone but he's not forgotten

Talleyrand's picture

...eating fried chicken with his regicidal friends?

BobPaulson's picture

+1 for that quote my friend. Saw him live with Crazy Horse many moons ago - he puts on a mean show.

fuu's picture

So sayeth the Courgan.

cougar_w's picture

Someone caught the Cobain reference, someone caught the Neil Young reference, and you even caught the Highlander reference (which was the one I had in mind actually).

ZH is like some kind of living time capsule.