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The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap
When the US Dollar is ultimately dethroned as the world's reserve currency (and finally gets rid of all those ridiculous three letter post-Keynesian economic "theories") nobody will have seen it coming. Well, nobody except for the following headlines: ""World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says", "India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees." And while the expansion of the "dollar exclusion zone" was actually quite glaring to anyone who dared to look, one thing was obvious: it was confined to Asia. No more courtesy of the following FT headline: "Brazil and China agree currency swap." More: "Brazil has provided a vote of confidence in China’s efforts to promote the renminbi as a reserve currency by becoming the biggest economy yet to agree a swap deal with Beijing. Brazil and China announced the R$60bn (US$29bn) local currency swap after a bilateral meeting between Wen Jiabao, the Chinese premier, and Dilma Rousseff, Brazil’s president, on the sidelines of the Rio+20 environmental summit in Rio de Janeiro."
“It is a measure that reinforces the economies of both countries,” Guido Mantega, Brazil’s finance minister, said late on Thursday night.
Well, that... and also a measure which shows that one by one every country in the world is starting to think of the post-dollar world.
China has launched an aggressive campaign of “currency swap diplomacy”, signing about 20 such agreements over the past four years with countries ranging from Argentina to Australia and the United Arab Emirates.
While these have been largely symbolic – only Hong Kong so far has had to activate its swap line after a shortage of renminbi in the territory in 2010 – they are seen as helping the long march of the internationalisation of the Chinese currency.
They are inactive only as long as they are not activated. And that, as the Federal Reserve bank of JPMorgan the United States has shown can be done with just the flip of a switch.
What happens next is usually best summarized by the following chart which has long been one of our favorites.
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Basket of Currencies, S'il vous plait
The US still have time...Its bar is not as long as Spain, France, and UK yet.
Ignore Portugal and Netherlands, too small, the US does not "need" them.
I'm sure Christine Lagarde has an angle on this; a leg in both camps, she is open to finding herself doing the great splits as the grand canyon yawns below.
I'd hate to be in the folds of her skirts looking up at the financial world towering above me like a colossus on feet of clay!
Wow, what a view...Medusa was not a joke after all!
http://implode-explode.com/viewnews/2012-06-21_AstonishingChiComArticleProvidesKeystoNewGlobalMoneySecretlyPlan.html
The United States economic collapse will not be a one day event. Many holes will appear in the dam prior to the flood, this is just one more hole.
Ponzi schemes have two charateristics: One, they go on much longer than you would think possible. Two, they collapse much quicker than you would think possible.
falak, that visual was uncalled for.....jarred my morning
apologise for the look in the mirror...Perseus always carried it on him, his shiny blade or shield.
Ahh... see words like "Lagarde" "legs" and "open" doesnt make my day...
At the end of the day, a currency becomes global reserve depending on the leadership that can show its economy. If an economy is strong in time, currency enjoyed that privilege. There will always be countries that want to get out of that scheme. But only succeed if the country's economy more importantly, lose international confidence.
At the begging of the day they should put people who say "at the end of the day" into stockades and beaten mercilessly with wet Spiderman towels until the end of the day.
The Rise of the Anti Hegemon
http://youtu.be/GsWiaK0BSQo
+1
This comment resonates with me.
I endorse the watching...Long time subscriber to the channel.
Hey Silver Shield, are you Chris Duane?
Sooner or later we will realise that what we are dealing with is NOT a basket of currencies but a BASKET CASE of currencies.
All this talk of China entering the reserve currency fold is just another wrong turn on the road to resolving the world's economic problems.
The US dollar has done enough damage, do we really need the Chinese Yuan to extend that damage?
Since the US Government has been so kind in exporting trillions of dollars in inflation to China, me thinks they are considering showing their thanks.
Will Toledo, Ohio Be The First Major American City To Be Owned By China?http://world.hawaiinewsdaily.com/2012/06/will-toledo-ohio-be-the-first-major-american-city-to-be-owned-by-china/
Allow the banksters the control of any money and........ voilà!
It's OK we got Hope and Change, or is it dope and laundry change?
anyone knows if the SWIFT system still is officially a USD backed system?
Are they creating a new Asian "SWIFT" system to circumvent USD? If yes when will they implement it?
IF anyone has an idea, kindly share .. thnx
I spent a couple of minutes searching and I only found this:
http://presstv.com/detail/2012/05/26/243243/iran-designs-alternative-swift-cbi/
It only says Iran has something already in place, without giving details.
Gold
Yes, financial oligarchs at the worldwide level are letting America's leaders' insane hubris push them right into forcing another SWIFT style system to be developed among asian nations rebelling against America's insane oil embargo of Iran.
Yes, America's insane leaders are forcing the rest of the world to develop a SWIFT alternative that will result in the end of the US dollar as world reserve currency.
America's leaders are so caught up in their insane arrogance they can't see what's happening or refuse to accept what's happening.
USD's ultimate collapse won't come from printing. It will come from rejection as a trading currency by the asian bloc of nations.
You won't see this development on any financial chart. USD will appear strong on financial charts right up to the day it is officially dropped by the entire asian bloc of nations and other subscribing nations like Brazil.
U NOT SWAP!!!
+5
yeah right the yaun which isnt even freely traded is going to become the reserve currency?? i guess we will see flying pigs as well..who comes up with this stuff?? ..lol..rmemeber folks the world need the usa the usa does not need the rest of the world..
mrktwtch2... Are you long pom poms and flags? lol
rotflmao
I believe that you should get a super cool avatar so that everyone can tell you are trolling. Otherwise, folks might think you actually believe such drivel.
"the world need the usa the usa does not need the rest of the world.."
Of course. The US is self-sufficient in oil, and has a self-sufficient manufacturing sector. Its finance sector is the eight wonder of the western world. Empires last forever, just ask the Brits. In the immortal words of Timmy The Great, "no risk".
An extorter needs the extorted more than the extorted needs the extorter.
On the necessity for the extorter to keep the extortion job up.
Hey! You made a valid point there. Better watch that, you know; Big Brother is apt to be keeping tabs on you and is sure not to like it if you get too pally with the Western Capitalist Scum you're paid to berate.
You beat me to it by < 60 seconds!
Big Brother is apt to be keeping tabs on you and is sure not to like it if you get too pally with the Western Capitalist Scum you're paid to berate.
____________________________
Made me laugh. US citizens are fond of exagerating their self importance.
Not the case for everyone though.
There is no big brother as you imply. People in power do not waste their time on non threats. They prefer to allocate their time on tackling existential threats (which nobody on this site is) and enjoying life.
Quite a hard fact to admit for US citizens who throat the idea they favour freedom of speech.
Shocking. Your comment actually makes sense for once, and you didn't even use your usual "US Citizenism" or "blobbing up" retarded non-words. I can almost give you a +1 for improvement. Almost.
As if was hanging to your appreciation.
US citizenism is moving, with or without you. All that I need is US citizenism to express itself.
And you cant prevent that so...
The only thing "moving" in regards to you is your bowels, as you continue to dump your foul digested-dog shit all over this forum, much as you do on your Chinese roadsides.
Yes! We need time machine to go back in to to just before the Fed was created and that would be the case.
Complacency is a true bitch
"9-11" ???
Default back to the Gold Standard,... "The Liquidation of Government Debt" http://www.imf.org/external/np/seminars/eng/2011/res2/pdf/crbs.pdf
doesn't have to mean yuan is the collatoral behind their banking system, can be anything they like to settle financial transactions gold, copper, iron ore etc.
Settlements in 9mm, 5.56 Nato or 308 Nato that would work, and be universally accepted.
Yes, it isn't freely traded.
But the future is about using gold for reserves, and currency as, you know, currency, for trade.
What makes you think this is the Olympics? The vast geography of Asia offers many delightful spots for timocratic enjoyment with far more advanced police states dedicated to the careful protection of the fabulously wealthy. From up high, the world is tiny.
Haha... and the USD exchange rates aren't manipulated?
Actually, you're correct. A currency that is not freely convertible is not eligible to be a reserve currency. One would also need a functioning legal system and a long history of prudent central banking. The Chinese are showing progress on this last point, but they need more history. The legal system and convertibility are show stoppers right now.
The US military is the show stopper right now.
Until someone plays the thermonuclear card and America folds.
As long as the world will accept dollars for oil.
Takes a lot of oil to keep that military machine going....
in a lawless world... your points are built squarely on a very soft, sandy, fluid foundation..
there is NO rule of law.. ANYTHING is possible. PERIOD.
It's great as far as controlling risk goes. Fluctuations are not massive and it's far more stable. No one at the whims of speculators beyond trading within a set band of +/-1% per day. The world doesn't need the US, sorry.
Possible.But does it need China?
China is sitting on top of a hell of a lot of natural resources.
So, yes. (Especially if cooperation between China and other resource-rich countries exists, the world will need to stay on China's good side in order to have access to those resources.)
Evidently bullish for US equities.
Apart from the stupid name, the renminbi would have more chance if it was backed by gold. But I guess that would mean China would be buying up gold right now? Right?
Or if it wanted to be sneaky, China would be making mine off-take deals, so that the gold ore goes straight to a refiner and then to SAFE, then flipped to the PBoC, and all along the gold never appears on the bullion market, so London never knows that the real volume is.
Lucky for the Fed the Chinese are open and transparent, avoid long-term planning, and don't like gold ... yes indeedy.
That would require armed merchant ships to transport the stuff. Like, for example, the ones the China Ocean Shipping Agency reputedly just finished fitting out. Apparently carry armed guards too, against the threat of Somali pirates.
I can see the headline now, Somoli Pirates Hi-jack Chinese frieghter full of gold, demand $xxxxxxx USD for safe return lol.
Obama's Harvard intellect wll see us through this crisis!!!
US citizenism shows the way.
AnAnonymous, you've been here long enough to treat yourself to an avatar. Perhaps one of a US Citizenism?
Won't your hive allow you just a little individual expression?
A little individual expression? What does this mean?
The appearance, not the substance huh?
US citizens keeping selling the idea that individuality is made through ornamental additions.
But hey, it is good for business, it is good for marketing, it is good for consumption.
Keep looking for that little outside sign that should make you feel like the individual you are not.
For US citizens, the group is all.
The world according to AnusAnonymous:
Chinese Communist totalitarianism = good
Every minute aspect of the United States and/or its citizens = bad
The world according to reality:
AnusAnonymous = Insanitation, monolizing the speeching means, offuscation, algebraic coconut hobnobbery, and general blobbing-up.
Tibetan individuality not wanted in PRC neither any independent thought or philosophy. Just do as told and no one will get organs harvested.
Boo, aaaand you've blown it. It looked like you were trying to reform yourself -- see my comment above. Nevermind, you're still a robotic troll in a Shanghai internet cafe. -1
GO AWAY, AND NEVER COME BACK! -- Gollum
Beat me this time, Zap.
Sigh, just when you think the shill-bot might be aquiring some sentience after all....
He is SkyNet's retarded cousin -- an abandoned community college science project the Chinese gov't bought to pathetically harass and attempt to derail intellectual discourse amongst us learned bretheren here on ZH. I hope someday the janitor at the Shanghai internet cafe trips over his cord and unplugs him, and then promptly forgets to plug him back in. Until then, we are mildly plagued with his semi-coherent insults.
ROR!
("Raughing out roud!")
Indeed, the laughable efforts of Comrade Dishwasher to derail every discussion here into a Long March of insanitation by monolizing the speeching means and blobbing-up every conversation with his offuscating algebraic coconuttery of "US Citizenism" are much like the innumerable piles of Chinese roadside feces: stinky, omnipresent, difficult to avoid, and disgusting once stepped into.
the Chinese gov't bought to pathetically harass and attempt to derail intellectual discourse amongst us learned bretheren here on ZH.
_____________________
Made me laugh. The Chinese are on the path to affluency if they are looking for useless projects just to consume and consume.
Derail the intellectual discourse among US citizens?
Best way? Let's them talk. No intervention, you might improve it.
US citizens require nobody to derail an intellectual discourse. They are perfectly self sufficient and the best solution for it.
We don't give a shit what "makes you laugh".
(apparently, just about everything)
Just tell us what the fuck would finally make you go away.
The Chinese are on the path to affluency Tibet was good start but no rescources yet, we kreep drigging till find somting then give generous chinese citizenism to whatever remains of formerly peaceful unarmed non rescouce consuming Tibetan people.
and some economic intellect from Columbia and Princeton
Got Gold? Got Silver? Got Physical?
Got lead?
If not, you better have a good product or service to offer!
soap making?
Orderly withdrawal of US$ as a reserve currency and US as a global power # 1. What is to replace US$? SDRs, gold, other currencies, or a combination.
But more importantly, what or who is to replace US as #1? I'm out of guesses.
Lots of downticks. Perhaps I was misunderstood. I’m not saying that the US will always be the global superpower, nor that I like it (not a flag-waver). I’m honestly posing a question as to who will succeed US on the throne. China? Russia? Perhaps the downtickers can offer some guesses.
most likely.. a new.. central super power more likely , than any soverign we can name..
I believe I see what you're getting at. Thanks.
I'm not one of the downtickers, I don't do any up nor down ticking actually, but my response to your question is not one nation rather a consortium of nations with the generic label A.N.A. It's coming, get ready for it.
It seems you expect the replacement to the USD to be orderly and planned. Like an official declaration of a new reserve currency will be declared in some meeting room.
The fact is, it does not need to be so. The reserve currency that rises up will be whatever people/nations are willing to accept. If more and more nations are accepting food-for-gold, oil-for-gold, and other resources-for-gold, then gold will be the center of the exchange and currencies offering currency-for-gold (gold backing) will be considered premium. It doesn't have to be one currency, as long as there is gold at the center.
Whatever is perceived as a store of value will prevail.
And if a gold-backed currency prevails, then eventually politicians will see the benefits of going off the gold standard and printing their way to Empire. And we do this all over again. And again.
Seems like act 7 (arbitrary number) of a sinister plot for world domination and hegemony.
The dollar is the world's oldest currency. It has been money for 5000+ years. Oh wait, I'm talking about gold. Fuck.
Really? Could have fooled me. Every time I hear Keynesians refer to "history" it involves the "US Dollar ALWAYS having been the safest asset".
I'm thinkin sex* has been currency longer than gold
*not necessarily with women in certain cultures
That joke was a TrainWreck.
Is that how the word "Grexit" came about
Is that how the word "Grexit" came about
At least 7-11 and my local liquor store still regards the $$ as a safe asset. All good
so, you're saying that their prices haven't increased at all over the past few years?
Again the same scam but this time with volumes which allows to decide over the issue.
The trouble is USD is needed by a society for every day needs.
USD is acquired from the US of A, directly or indirectly.
USD a secondary currency for some other deals actually helps to preserve the amount of USD you receive from the US.
USD decline could start when you can no longer buy in USD.
Not when countries, people are switching to other currencies for minor deals in order to preserve their USD reserves to be used on more vital goods.
This kind of deals only show the strength of the USD, not a weakness.
Ahhh ... my little slow-pedded friend ... I beg to differ. When the $888 trillion (that's a lucky number I pulled out of my ass, just as the real number sloshing around has been pulled from the Bernank's ass) finds its way back into the US economy -- because nobody else wants to use them for global trade settlements -- then somebody is going to have to either burn them (eating a massive loss) or circulate them (ramping up hyperinflation).
Neither of those outcomes would be too healthy for the US economy (though, in the second case, US workers might be able to hang onto a government-mandated minimum wage of $50/hour for flipping burgers).
Beg to differ on what? A hypothetical?
For the moment, nations holding USD look more as they were preserving them.
On a side note, the US of A defines the USD. Changing the definition of the USD before the amount of USD floating around outside the US is about to flow back is not only possible but also fruitful.
Griggly, dry the snortle, frangly youpin?
"US of A defines the USD"
Riiiiight.
Wrong. The rest of the world defines the REAL VALUE of the USD through the degree to which it is willing to exchange goods for the USD. "Full faith and credit"
When the faith diminishes the credit line gets cut off. The definition of the dollar is determined by global market actors. Try telling someone: "I'm re-defining the USD to be equal to an ounce of gold", and try getting someone to give you an ounce of gold for a dollar. They would only do this if they had faith that tomorrow you would give them the gold ounce back for a dollar. If there is no faith that the gov't will hold to this exchange rate, then the exchange rate does not exist.
"The trouble is USD is needed by a society for every day needs"
USD is needed internationally mainly because the Saudis made a deal with the US to sell oil only in USD.
If the Saudis threaten this arrangement, the US will invade KSA. While the Saudis go along, they get state-of-the-art military support and hardware. An easy choice for KSA.
"While the Saudis go along, they get state-of-the-art military support and hardware. An easy choice for KSA."
The KSA has always pursued a policy of maintaining a weak military... The purpose of this policy is obvious; prevent the overthrow of the monarchy by the military.
KSA depends on the USA for their primary military protection.
USD is needed internationally mainly because the Saudis made a deal with the US to sell oil only in USD.
_______________________
An important bit but USD hegemony can not be sumed up to that.
It is based on every essential as society requires to exist. That is what is bought in USD.
Hey, I can play that game too!
Sun spramp the glittered volume cakes!
Demons leap benignly in strap knowing the formica.
Every then and how ant cafe keeps telling red.
Blind calendar!
Limpid mountain!
US Citizenism!
Tibet is needed by chinese citizen mainly because air is still breathable.
Future profits assured for communist party citizens if fresh air can be somehow shipped to ghost cities on mainland.
2100 is so far away. I was thinking more like 2013.
Right-thinking PhD-brainy Econo-tards agree: no-one saw this coming.
ringa ringa roses...the Brics have a pocket full of posies and it ain't grown in the killing fields of poppies feeding the greenbacked factory of roller-bladed-our-money-your-problem type of monetary mayhem chow fodder; financialised, derivative bitten, white powder sauced coleslaw.
Whew that was a mouthful of hegemonial fiat money now available for all and sundry as toilet rolls.
Dollar goes up any more against the current ill-weighted basket of others and US co. earnings start whining. And our overlords cannot have that.
I think it's a decent bet to pick up some more phyz Pms while they're on sale here. When the big inflate comes, it comes rather quickly. See history.
I guess its time to invade.
watch for the headlines that brazil is harboring terrorists
I envy the drone operators who get to check out Copacobana beach with high-definition image capture.
If this were serious analysis, it would go back another 2000 years. How can we believe short-term analysis?
Bernanke is responsible for this just as he is responsible for the US losing the AAA credit rating. Why has Obama kept him on? Does he want to destroy this country because if he does this is as good a way of doing it as you will find?
There's plenty of blame to go around. Right Greenspan?
I'll take the blame.
Bernanke and Obama are both puppets of the New World Order!!!!!!! Haven't we figured that out yet!?
Ok help out a newb here. I am just getting into the first chapter of Currency Wars so maybe it wil explain everything. So if China backed its yuan (or a bric dollar) in gold, that means it would strenghten and stabilize. And if it strengthened, their citizens would instantly have more purchasing power because commodities and raw material prices (and by extension everything else) would go down for them. But this new strong dollar would kill their exports but they could now produce and sell to themselves and the other Brics if the other brics are on the same dollar. The USD would drop so the value of their reserves and holdings of UST's would plummet. So it would be a zero sum game of sorts except they would be free from the US exporting their inflation and also free of their control with the SWIFT system. Also their citizens would be happier and more content and they would avoid insurrection/riots/etc. that might happen if inflation keeps increasing there.But I would imagine that they would start importing drones and other us military apparatus..not by choice either..
How off base am I here? What would this do to the value of PM's here in the US? Or is it more likely the US would have to climb on this gold/commodities backed currency? Has the Alpo finally worked its way through the blood brain barrier?
Most currencies books are worthless and most people ahve no clue what they are talking about. It acutally is very simple. Just understand this and you will understand the word.
Central run economies cannot exist left to their own devices. Why? Because of deminishing returns.
China is an mercantile economiy. And as such, Monopoies destroy innovation and creativity in order to protect themselves from competition. If not the case, people could build their own wealth and create their own power.
You see, competition creates Innovation and creativity which in turn creates higher standards of living. Monoplies do the opposite so as cost rise over time (dimising returns) they raise prices and create inferrior products. And the chepaer the money is better for them because it means more exports. And means jobs for their unions and corporate friends. It also means it is easier for them to collect taxes. This is why most of the world are mercantile economies. It is mutually beneficial, not to mention prosperous, for them.
However, going back to a gold standard whould mean that they could not print money which would erode their power bases, deplete their savings, and subject them to competition. So, they create regiulations to product those "important" businesses who export products to other nations with people who have "usefull" money. In this way they keep their power in tact. And when they export things to the us to get us dollars, which means that they can by us goods. Afterall very few people produce anything of vaule in their countries. Byw, money can be anything and should be that two or more parties aggree to. It used to be tobacco here in the early colonies.
ANd Us dollars are used for eveything in global settelments because all other currencies are far worst. Not becasue of preferrence. These currencies were created in order to create artifical borders so that those people who rule the government also rule over money that eveyone must use. Fiat CUrrencies are only a tool to enslave the masses.
SO, countries like egypt riot beacuse they do not export anything of substantial value and as such do not have access to US dollars which means they cannot buy US food. And as such thier population starves while the rulers who control the reasurces do sell enough assets to get enough dollars to by their own food ans weapons. Weapons are sold in US dollars too. ANd as such they contine to debase their own currency so that they can continue to get US dollars because they are not effected. THis is why so much financial aid is given to them.
It is cheap and easy to print money. you dont have to produce anything and you can make your currency cheaper. But as money gets cheapened so does everything else (priced in that money) so that it gets expoert.Very few people in the rest of the world acutally produce anything if value which is why US goods are in such high demand. BUt again this means that these countries need us dollars. SO the chinese can sell things to get us dollars and than buy US goods including treasuries. SO, it is actually a subsidy for the US consumer. It creates jobs, lower prices, and buys trearues which is used to pay for social spending. BUt it creates misory for teh average chinese peasent.
Lol. Good luck with that.
Neither of these countries are acutually self sufficient or even in solvent. They both creat money out of thin air to support their economies. SO, it is all aritifical. OF course the US does this too but for the most part this has been driven by loans allowing production to increase while blaming the resulting strife on their twisted verton of competition and capitilism.
ANd replacing the US dollar? Really, please.
These so called leaders may wine and cry about us dominance but all these leaders are also schooled upon keysinen eonomics which means they do not have a clue about what creates economies. For them, it is the top down. In reality it is just the opposite.
And even as they try to force their populations to abandon the dollar ans set such polices to satify their own egos and to say to others that they matter too, those who do have wealth will flock to the dollar, not commodiitees for protection. ANd so will their leaders.
Why? Because they know that ending fiat money means the end of their power base, money, and their connections in which they derive their wealth. They will have to compete and this they cannot do.
NO, the end of the dollar will come from the realization of the economic lie people have been living. It iwll come formt he bottem to the top. IT willl come because to few people are able to produce whether because of lack of ambition, demand, or over zelous regulations.
With no more production there are no more reasons for loans. And without loans there is no monetary inflaition which allows additional tax revenue to be collected in order to support social welfare benefits and political causes. The problem is systemic.
Without enough people borrowing enough money to inflait the money supply, the worlds economies cannot be sustained. Of coiurse these leaders will continue to print money in a vain effort to tell others that at least they are doing something.
The whole world is myird in artifical monopolies of various sorts which create wealth destruction politices. They are self defeating. At some point it aways catches up. Soon not even the elite will be able to escape from reality.
Central run governments cannot exist without inflating the money supply, which in its self is nothing more that the cause of poverty and economic disparirty. It is that simple.
Economic Fallacies in One Lesson.
Congratulations, you have bought into some of the stupidest lies and myths that I have ever heard of.
Must be a Levin/Hannity/Limbaugh listener with his handy National Review magazine in hand.
The truth is what is is despite your lack of expertise. And no, these talk show host would disagree as this shatter their twisted version of reality as well. Growth based economic polices are nothing more than a loosening of loan standards so that people borrow money and inflate the money supply thanks to the fractional reserve system. And money that is borrowed must eventually be paid back or defaulted upon, hence the reason for global crises.
And when it does come we will be left with all those regulations and laws still on the books because their removal would supercharge a recovery, and not benefit those who created those same regulation and laws. Of course enforcement might be a bit of a problem, due to lack of personnel but you can bet that just as soon as they can, they'll be right back at it again!
You can also bet that the media will agree with them.
unless china moves more quickly in adopting political reform and takes property rights both real and intellectual more seriously, and reforms it's legal system to offer individuals the right to due process the renminbi will be slow to replace the dollar. that said, the dollar remains threatened by budget and spending issues we all understand. the dollar will remain the last resort currency for the time being, not due to it's strength, but because the others are either too small or have bigger problems. china's real debt to gdp is probably higher the U.S. not even government decrees can change that.
DOLLAR GOLD BITCHEZ.
In US of A, dollar short you!
Suppossed to be a strikethrough font on the USD
The dollar will still glue together the worlds biggest economy and the main reason it is THE current reserve currency. The world - due to tech - is able to handle all trade using numerous currencies. This is why it will be possible to have several that act on behalf of importers & exporters. We lose nothing by this unless we eff up out banking & currency faster than the Euro/Japanese/Chinese countries. The most stable currency is the one that wins. Which one do you pick to get that recognition?
The dollar will still glue together the worlds biggest economy and the main reason it is THE current reserve currency. The world - due to tech - is able to handle all trade using numerous currencies. This is why it will be possible to have several that act on behalf of importers & exporters. We lose nothing by this unless we eff up our banking & currency faster than the Euro/Japanese/Chinese countries. The most stable currency is the one that wins. Which one do you pick to get that recognition?
They hate us for or freedoms.
Time to Bomb Russia.
What a load of shit. No one cares about your freedoms. Not the Chinese nor the Arabs. They hate you for the freedoms of other people you take away- Full stop.
D.C.
Please stop taking sarcasm seriously and please stop falling for the "Americans Are Free" propoganda. Have a nice day.
This is natural and makes perfect sense. BUT How can China find partners in this when they fuck around with their currency so much? Or are these other currencies so devalued that they don’t mind the artificially devalued China money? Or do they know it is devalued and hope to be holding lots of it when it does go up?
US Dollar is on the chopping block. And why not- It is what the pound was at the start of the 20th century.
Cause China gots da gold.
You do realize the USA has amongst the highest gold reserves per capita in the world (in fact, larger than China's and India's by far)? Not to mention the largest raw gold holdings in the world? As large as the next three holders combined (Germany / Italy / France)? Almost eight times larger than China's holdings?
Let's say the world does go through with the huge debt deflation jubilee and back to the gold standard? Who do you think the world is going to use for a reserve currency? China? Freaking CHINA? You have got to be kidding me.
The only reason gold is worth anything is because the USA _says_ it's worth anything as denominated in USD. The USA is the largest economy and _only_ superpower in the world. Period, end of story. The BRICs can push string until the cows come home but they aren't going to get anywhere in the face of that fact of life. We saw this "Asian Tiger" crap tried before with Japan and look at the kick in the teeth they got for it. Now Japan is going to try to get all buddy-buddy with the BRICs and attempt to unwedge itself from the USD? Ha ha ha don't make me laugh.
The world time and time again underestimates just how wealthy and powerful the USA is. Everyone thinks they can take us for some damn reason I have yet to fathom because every time those ankle-biters try they get their face pushed in. Those idiots have learned NOTHING from what we did to Iraq when they tried that "oil in Euros" trick and now Iran is trying to do the same thing. In six years we're going to see Ahmadinnerjacket pulled out of a spider hole by the DEVGRU folks after Iran has been completely overrun by the US military. When that Sideshow Bob exercise is done everyone will kowtow to the USA like always.
George Carlin said it best when it comes to other countries trying to take over the USA's number one position... "Bullshit, that's OUR fuckin' job!"
A few points:
Sorry, I stopped reading after the very first bullet. If you believe that you'll believe anything. I could just as easily say there's green cheese in Fort Knox covered in yellow paint and my _assertion_ would hold just as much merit as yours.
It may twist your knickers to be told this but the truth is the USA could have _no gold reserves at all_ at this point and still be able to act as the world's reserve currency. Anyone stupid enough to say otherwise will find out just how much uranium, plutonium, deuterium, and tritium we have backing our notes. If they'd rather not be immolated on payment they can choose to stop eating instead since we grow, for example, half the world's corn production and 40% of its soybeans. We're also the world's third largest oil producer and second largest natural gas producer (just barely edged out by Russia).
You tungsten nuts absolutely slay me. What a maroon. Get out of the house and wander around the USA for a bit. You act like the USA is worthless and backed by thin air - you're thoroughly and utterly mistaken.
The world remembers what our production was like during WW2... if we actually fired up the current US economy to full wartime footing and hoisted the black flag it would take your breath away.
that "corn" and those "soybeans" you brag on - many countries have a ban on importing amrkn GMO fud-stuffs. . . by the way most of amrka's wheat is also GMO, and those revered white coat scientists are working on rice, sugar beets, and no doubt more frankenfoods to replace real, nutrient-rich foods.
sure, amrkn military can threaten to nuke if other nations balk at force-FED-fiat - but those nuke-backed-notes will be toast at the first missile fired - you know this, even if you don't want to admit it here.
and what on earth are you smokin' that lets you imagine there's any "US economy" to fire up "to full wartime footing"? seriously, get out of the 50's dude, join us here in the Y2k+ real world, where China is currently buying huge chunks of the red/white/blue real estate in Ohio, Michigan, Washington, California, and more.
oh, and don't forget to vote! have a nice 4th of July!
With what production line? In what factories? What are you smoking? Have you seen DETROIT and the surrounding areas, where the WWII factories you spoke of used to be? Have you seen factories in Pittsburg, Cleveland, Minneapolis, or any other place in the rust belt? Have you seen any new real STEEL MILLS? Those builings are are stripped out of every bit of copper and steel, and are falling in on themselves. All the production equipment and other machinery is GONE. Pryed up off the factory floor, crated up and already been shipped to china, messico, and other places people work in filth for pennies a day! Its gone daddy gone! No Tooling NO FACTORIES. That production you spoke of, in WWII one of the world's biggest copper mines was in Butte, MT that sucker is closed, where will all the copper come from to build all the new factories you would need to suport a war effort on the scale of WWII? Why you think Chy-nah buy copper here every day, and ship back to ah chy-nah round eye? Oh yeah and resources appropriated by use of atomic weapons are no good too much residual radiation to be safely used. Yes the gold has been pledged and in some of the Ron Paul run hearings the fed admitted that they have gold certificates issued to them from FDR times..... back when the United States of America went bankrupt. Those treasuries the FED owns are backed by the full faith and credit of the US, and the redemption /and repayment of loans to the FED is governed by the Federal Reserve Act with its dozens of amendments to include those gold certificates, and the pledging of the gold. Why do you think the people who own the FED want the dollar inflated to kingdom come? So the nominal value of the debt is so high there isnt enough gold anywhere to cover what is owed. If you dig deep enough you start to find out all the places where there are large amounts of gold become national parks etc and then to become world herritage sites. Try getting permission to go mining anywhere! Ask why have they amened the mining act, and homestad acts? There is plenty of useful federal land locked up that should be in production either in mining or being homesteaded , but those lands are collateral too. When the house of cards falls the FED will want to be paid, not in FRN's but actual consitutional money, just look at the Federal Reserve Act, they are due it. Eventually every army stops fighting when the $$ they are paid with doesnt buy anything. Have fun with that.
If Brazil sells China oil or lumber or whatever and receives Chinese currency. There is much that Brazilians can buy with Chinese money... such as anything made in China. The value of a fiat currency in trade is supported by the manufactures of the country issuing the currency. So what is holding up the value of the USD, other than tradition? The answer is... nothing, because the only thing the U.S. makes that anyone wants is military equipment, and the U.S. only sells to these to a select few.
The US is a keystone card in the ponzi house of cards .... you can't just pull it out without the whole world collapsing ! We are the Ponzi Masters and we still have the world in the palm of our hand ! The jokes on you .... basket fucking Christine Legarde while suspended over the Grand Canyon ... world class gash ! It's not fair .... but we win again ! That says more about the sorry state of the world socialist community ! "In a world of blind socialists .... the one eyed Capitalist is King " !" Monedas 1929 Comedy Jihad In Mexico Two Lesbians Making Love Is Referred To As "Making Tortillas" .... Slap, Slap, Pity Pat, Slap Slap ?
Oddly, no damage to the US $ index today. Indeed, quite the opposite.
Up is down and down is up. Have a sip out of the glass.
Good post T. D. Who knows what will be the straw that finally breaks the camels back? Whatever it might be you can bet George Soros will provide that straw!
Tuco
Dollar index is just great...compared to other currencies. Least worse of the worser.
Tic...toc...tic...toc....
The PBOC needs to hire the same PR firm as the Funeral Reserve and call the Remninbi and Yuan the "Chinese Dollar" to help promote their own fiat. Stupid people are easily fooled by name recognition.
China's got gold. Yes, but what happens if gold prices fall? I wouldn't put it pass the TPTB to be engineering some kind of conspiracy to manipulate the price of gold to cripple the Chinese at the right moment. The Japanese Yen was once touted to become the Reserve currency that will replace the USD. I guess that didn't work out too well.
YOu can add New Zealand to that as well as Austrailia - so thats the South Pacific
http://news.xinhuanet.com/english2010/china/2011-04/18/c_13834408.htm
The Elite-scum is in process of imploding US banks, lowering the price of oil and moving into a new reserve currency. Get ready for the invasion of the DHS as Jamie Dimon hits the EBT kill switch.
That’s another US$29bn that the world no longer needs. I wonder how many fewer dollars all these agreements is taking from the world’s demand for USD ?
stairway to heaven ?
There, fixed the graph.
http://www.flickr.com/photos/tradertim/7421710692/
Yes, I'm serious.
LOL BITCOIN! NERD Electronic currency. Is it backed by rare comic books or star trek memorabilia signed by Billy Shattner?
No, its backed by a bearded man who can print as much of it as he likes, under different distracting program names.
Oh wait, you meant bitcoin, lol.
The dollar is going to pass into second-rate status, that I can assure you.