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There Can Be Only One: China Sovereign Wealth Fund Says Renminbi Will Become Reserve Currency
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:
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Bill Syko, please move to a peaceful place, perhaps Sudan, or maybe Bangledesh, or possibly Cuba. I am sure you will like it better there.
Alternatively, there has never been a time in human history where there hasn't been wars, insurrections, coups, attacks, police actions, blockades, battles, or a tyrannical dictator. Maybe you ought ponder why this is so.
Additionally, there never was a country with citizens so free and wealthy like the good ole USA. Why is that?
If we are looking at crime per capita, then I could move to Lebanon or spicy Bangladesh (which has half the murder rate) or even jtown Israel- all have lower murder rates but for overall crime USA is number 1.
http://www.nationmaster.com/graph/cri_tot_cri-crime-total-crimes
https://en.wikipedia.org/wiki/List_of_countries_by_intentional_homicide_...
Detriot's murder rate is just below Venezuela. 47.3 to 49 per 100k.
Justification is not a valid argument.
"Additionally, there never was a country with citizens so free and wealthy like the good ole USA. Why is that?"
Because they stole it from everyone else- home of the bankers and robber barons of the world. From what 1933 when they went bankrupt to 2001- what a fucking legacy in human history- shit stains last longer. Rome was around for hundreds of yrs before they blew up and debased into nothingness.
so free? really? free to what exactly nowadays? to torture people, to detain them without trial in foreign and domestic prisons, free to invade any country that cannot put up a fight, or maybe free to screw over their citizens? Free to play Cop, free to put their noses in any conflict or just make one up? free to rig elections, free to make up rules as they go along?Freedom to have an army watch over Americans in their own country with drones overhead. The last 2 elections you had they wouldn't let the UN be a 3rd party observer to see if the election was fair. Diebold freedom voting. Free market. Bend over for a freedom search.
Ya, home of the fucking free.
http://www.amazon.com/They-Thought-Were-Free-Germans/dp/0226511928/ref=s...
(only pissed because the country had potential & hunter s.)
First, I'm not sure what that list of events, which seems to be mostly morally ambiguous, has to do with the Chinese. Are we to take it that you think the Chinese have a much shorter list? That they are peaceful where we are murderous? that they are worthy of the mantle of power? Get a clue!
Do you really think that the collapse of the Berlin wall is one of the "crimes of America"? Weird.
As a great empath of victims, I hope you are equally pissed about the victims of the Alexander the Great, Roman Empire, the British Empire, Ottomans, the Colonial expansion of Europans etc. etc. That would take your list from here to the moon and back.
As Gibbon said:
He didn't mean that human life reduces to that, but that we only remember and record the worst disasters. To that add the fact that the victor writes the history, which will be little more than his propaganda. Similarly, your list only has the ham-handed deeds of America, and some of its rogue citizens.
I won't try to justify the deeds of idiots like Custer or Dick Cheney. They acted arrogantly to satisfy their own self-importance and it really has little to do with the United States, except they dragged us into their dellusions.
In judging a country, or an Empire you must look at the whole picture. A country is a big amorphous engine of activity. It's going in millions of directions at once. Ignore its criminals, because they are everywhere. What did its best people do? Is the world better place or a worse place because of their collective action in the world?
The Romans made the world a vastly better place. Yes, they conquered most of the known world with absurd military superiority. But they brought civilization: better agriculture, water projects, sewage projects, wisdom of the greeks and helenic scientists, technology, law, literature, a monetary system, finacial sophistication, a universal language, infrastructure like road aquaducts, great buildings, commerce and trade with entire empire. You can write a list like the one above, but the turth is that the members of the empire liked being part of it for hundreds of years. Eventually, it became corrput and the western half became weak and was attacked by its own army (the "barbarians" were mostly trained Roman mercenaries). The eastern half lasted another 1000 years, until it fell to the Turks in 1453.
My point is a country is much more than a list of its mistakes and follies. Its triumphs and achievements are much more interesting and to the point. And as an Empire, which we most assuredly are, America has been particulary benvolent when compared to its predecessors. Are there atrocities we should be ashamed of? Sure. Do our achievements outweigh our misdeeds? Absolutely.
Will any other country or Empire ever deserve the supreme advantage of having the resreve currency? I hope not. I doesn't work. So we should not be afraid to go back to something that has worked for over 5,000 years, gold.
"Nations that lose the will to conquer soon perish." -Gen. George S. Patton Jr. Ain't pretty, but it's true.
I call it the " CHINA TRAP". Lets look at the facts, China owns 1.73 TRILLION in US debt, China produces most of the worthless crap the American Corporate Cronies sell to the American Mutton, China has taken nearly 10 million US jobs in the last decade and most importantly, China presently produces more than 95% of all rare earth materials that are vital in the creation of a big variety of electronic technologies including lithium car batteries, solar panels, wind turbines, flat-screen television, compact fluorescent light bulbs, petroleum-to-gasoline catalytic cracking, and military defense components such as missile guidance systems. Doesn't anybody see how this is going to end? America has become the junkie and China, the dealer just keeps supplying us with the dope. There will be no methadone clinic for America to wean us off the drugs, when they cut us off and sell all the stuff we have pawned to them to pay for our addiction, it's jonesing time. Give me a flipping break, our trade deficit with China nearly reached 300 Billion last year! Meanwhile China has already started making deals with other countries in other curriencies other then the almighty dollar. They have also shored up some game winning deals in regards to oil as well. How fucking stupid could the once greastest nation on the planet be to fall into such a trap? Forget about war, this will be an economic takeover because when China decides to take away the meth from the greedy Wall Street whores and the Facist Corporate Kleptocrats, the party is freaking over BITCHEZ!
tahoebumsmith
Yes, probably right. But, well, so what? Has to happen so that we can toughen up. Otherwise we can just sit and moan,
Who said "No pain, no gain"? Is it always true?
the only reason china produces 95% of the world's rare earth minerals, is because they do it for less cost. america has what was once the worlds main source of rare earths, and could be again, if anyone wants to ramp it up again. there is no chinese monopoly. there are are also rare earth deposits in australia, and likely other countries.
if anybody is interested in converting dollars into renminbi, you can open an account in the bank of china, the chinatown branch. they allow you to have a renminbi denominated bank acccount. fdic insured (ha, as if thats any comfort).
don't know how it is over there, but over here you actually get more than 4% interest on your RMB account!
Great, solves all problems caused by that 6% inflation!
Thanks for sharing but why would anyone want to do that?
Saving in RMB's? If you have no better choice, OK. But if you life in Europe and N. America, You do have a better choice. I'd short RMB if I could do it easily and conveniently!
Hmm, Spain's reserve currency status started in 1540's (ish), is that not when Inca was conquered? coincidence?
What's wrong with Africa? I get emails all the time from Nigerians, working hard to get their $30 million inheritance money out of that country. They must be very wealthy there. Sounds solid to me.
I hear Nigeria is as good an investment as MF Global.
Unobtainium sounds about right
Spot the odd one out:
You should go all-in on that, mate. Sounds like a no-brainer.
nice sinopsis there, now write the reasons why it might actually be the reserve currency over the dollar
Most industries now there
usa gutted
usa people demoralized
usa people lazy and entitled
usa people addicted to folly and idiocy, gadgetry
usa politicians continue to gut the economic foundations
Im all for the USA, but the above are real
Hi anybody at this forum knows where this graph (the years of these resevere currensy's) is coming from, I mean can i check this data somewehere ? Somebody just told me Holland was in the mentioned time in a crisis and just had a fight with lodewijck XIV
Stop it. Stop making fun of the Chinese money. Let the Renminbi !
the Chinese are originally Hamitic, part of the Canaanite people, from the Sinai who migrated east.
China does not make everything. Almost
everything in my house is Not made in China.
Poland beds, couch montreal, carpets usa, pillows
all bedding Portugal, all dishes glassware Indonesia,
Italy, Germany, Britain, Brazil, Sweden, etc. Also
a new report by the the world bank, Chinas about
to loose up to 80 million jobs in manufacturing in
the next few years to Africa. This is not a typo, this
is fact. And so many other regions are really
developing so fast, no one country will really dominate
in the future, probably more like blocks of power.
BNN had an excellent interview with Peking university
professor last week, what he said was quite a shock.
No more than 3-3.5pc growth for the next 10 years from
China and the commodity economies better prepare.
beatus12
You said it,
China has been canceling Commod contracts R & L, and if they are no cancellable, they are renigging on them!!!!!!!!!
They have learned from the Wall Street Masta's.............................
China does not make everything. Almost
everything in my house is Not made in China.
Poland beds, couch montreal, carpets usa, pillows
all bedding Portugal, all dishes glassware Indonesia,
Italy, Germany, Britain, Brazil, Sweden, etc. Also
a new report by the the world bank, Chinas about
to loose up to 80 million jobs in manufacturing in
the next few years to Africa. This is not a typo, this
is fact. And so many other regions are really
developing so fast, no one country will really dominate
in the future, probably more like blocks of power.
BNN had an excellent interview with Peking university
professor last week, what he said was quite a shock.
No more than 3-3.5pc growth for the next 10 years from
China and the commodity economies better prepare.
Good luck with that. They think that they can simply declar themselves a world currency and that such a move would profit them, they would be mistanken. The US is the world currency because of past liberty which created innvoation anc creativity. Central run economies cannot exist on their own. The US moved tword a centralized economy is is the reason why the US is in such a tail spin.
And the communist know that going back to the gold standard will destroy their power too. Without fiat currency their mercintile economy cannnot exist ether. It is all a show.
TK69
The US is the world currency because of past liberty which created innvoation anc creativity.
Lest we not forget, the worlds largest GOLD holder at the time,compared to debt which was non existent when compared to the wealth we HAD, in tangibles, and creativity, and mostly manufacturing.(the loss of this is what destroyed our nation).
Now, THEY claim we still are, @ 8100 tons which remains to be seen.(pocket change compared to the debt we have incurred),
*
honestly, 2 hours since this ONE LINER comment from Jin, and it is all over every nutter website in the US of A.
as if it means something.
*there is NO official, objective determination of 'the worlds reserve currency'.
it is just a concept, and whether something is, or is not, 'a' or 'the' reserve currency is of no practical importance. if its identity changes, there will not be a handover ceremony where the trophy passes to new hands. as there isnt one.
*the lead from the editors asserts that 'there can only be one'. why? there is no reason why, say, 2 currencies could not both be widely used for trade.
it is a non story of no importance to anyone except americans who actually want their currency to collapse (which is not going to happen), so they can say it was all due to the Fed and QE.
Currency wars to follow.
I predict the yen, Euro, and the US dollar will morph into a "super fiat" against Russian and Chinese gold backed specimen.
Will be interesting!
Your prediction may be correct. There is only thing I am sure of; the next 'Reserve Currency' will be backed by Gold. The Grand Experiment has reached it's predictable conclusion.
I can see Tuna Turner now, "2 currencies enter the Thunderdome, 1 leaves"
sure. a reserve currency with restricted convertibility. that works!
Are we supposed to believe that same self-absorbed Chinese Government that is notorious for lies, opaqueness, disregard of private property rights, suppression of individual freedom, infanticide, and institutional corruption is going to be widely trusted by the investor community. Reserve currency - I say poppycock!
LOL, Yuan being THE reserve currency. That's the most funniest joke I have ever heard of.
What would Hugh Hendry say...
Our forefathers are spinning so fast in their graves that they have almost drilled their way to china.
I think they wuld rather be there these days anyway.
We live in interesting times.
Paper me this, paper me that...
(yawn)
Chinas forex strength is its USD surplus, which compose the vast majority of its forex holdings. Renminbi strength is linked to and based on the USD.
Do you see the Renminbi as a reserve currency backed by and based on the USD, which still is the single major currency for trade, transport and commodity pricing. Will Chinas mjor market forgo its own currency to trade in another ?