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Zimbabwe Bashes US Dollar, Alligns With Yuan

Tyler Durden's picture




 

It was three short years ago that the small former British colony of Zimbabwe was spewing forth 100 trillion dollar bills. Since then, courtesy of a few trillion extra percent of inflationary RDA, the country had given up on its currency and replaced it with US Dollars. Now, the country's cult central banker Gideon Gono has made it clear he wishes to avoid another episode of transplant currency hyperinflation courtesy of his counterpart in the Marriner Eccles building and "has warned that Zimbabwe’s nascent economic recovery is at the mercy of the United States dollar, which is facing new pressures from the Euro-zone debt crisis." Yet the screaming sarcasm is the following: "Gono says Zimbabwe should in fact be looking to the Chinese yuan as its main currency, while urgently seeking to restore its own currency which was abandoned in 2009 after a dramatic loss of its value. With the continuous firming of the Chinese yuan, the US dollar is fast ceasing to be the world's reserve currency and the Euro-Zone debt crisis has made things even worse." And the terminal slap in the face of all that is American: "As a country, we still have the opportunity to avoid being caught napping by adopting the Chinese yuan as part of consolidating the country's look East policy." Well, if recently hyperinflating Zimbabwe is complaining about the US as being on the same path as itself, and instead wants to become a Chinese FX vassal state, perhaps alarm bells should go off somewhere. So the next time Tim Geithner is up on stage somewhere, it may be prudent for a question to be be asked: how and why is it that the world's (formerly) de facto banana republic is complaining that the next up and coming B-Rep is about to replace it in the annals of idiotic monetary policy?

From New Zimbabwe:

Speaking in Gweru last Saturday, Gono said: “The extraordinary happenings in Europe where economic power houses in the Euro-zone have been hit by a debt crisis deserves extraordinary measures, especially here in Zimbabwe where we have adopted the U dollar as the major currency in our multi-currency regime.

 

China is now Zimbabwe’s biggest trading partner, with the Asian giant absorbing most of the country’s mineral and agricultural produce.

Vice President Joice Mujuru first raised the possibility of adopting the yuan in September last year, saying it would be a “logical step” and could help solve some of the country’s liquidity constraints.

 

The multiple currency regime announced in January 2009 has been fraught with difficulties. Retailers are supposed to accept the Euro and the British pound but those two currencies have never caught on, with most transactions being conducted in United States dollars, the South African rand and the Botswana pula.

 

Finance Minister Biti presented his 2012 budget last week and expects the multiple currency regime to remain in place at least until the end of 2012 when ministers hope it would be replaced by a single currency for the Southern Africa Development Community (SADC).

 

Gono, speaking at theConfederation of Zimbabwe Industries' (CZI) end-of-year business dinner, said the use of foreign currency was ultimately unsustainable in the long run.

 

“As long as we continue to use other people's currencies, where we do not have control over that currency, we are not going anywhere as a nation,” he said.

So all sarcasm aside, perhaps someone should be concerned that while the US is enjoying the third year of endless political bickering and deciding if this political candidate or that has had enough illicit sex, while rapidly losing all foreign influence, China is quietly but forcefully taking over the world precisely in the way that the US did in the 20th century: by becoming a primary trading partner, regionalizing its currency, and finally, a step that yet to occur, establishing CNY-denominated debt.

Does anyone still doubt what the endgame is?

 

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Thu, 12/01/2011 - 16:05 | 1936011 homersimpson
homersimpson's picture

Wha? Zimbabwe doesn't like competition in money printing?

At least the US-built printing press lasts a lot longer than a Chinese-built one!

Thu, 12/01/2011 - 16:11 | 1936031 Ag Tex
Ag Tex's picture

Nothing shows restraint in printing quite like a panhandling billionaires in Zimbabwe.

Thu, 12/01/2011 - 16:12 | 1936048 dlmaniac
dlmaniac's picture

Funny how people think Chinese politicians are any more competent and trustworthy than Bush or Obama.

Thu, 12/01/2011 - 16:19 | 1936082 Seer
Seer's picture

Well, in China they execute folks who fuck up: or those folks know enough to execute themselves.  In the US when BIG folks fuck up they get praised.

As far as who is the US Court Jester (POTUS), it doesn't fucking matter.

Thu, 12/01/2011 - 16:29 | 1936115 Big Corked Boots
Big Corked Boots's picture

Praised - and bailed out.

Thu, 12/01/2011 - 17:05 | 1936273 wisefool
wisefool's picture
  1. predatory
  2. regulatory
  3. "I was forced to sell my 200MM stock without cap gains tax cause they made me become treasury secretary"
  4. Bailed out freinds.
  5. Man who saved the world.
  6. Esteemed fellow, Univeristy of chicago.
  7. ... go get your shine box krugman ... I think you left it at enron HQ.

Hank "Rocket Jump" Paulson

Thu, 12/01/2011 - 16:57 | 1936236 SilverRhino
SilverRhino's picture

In China, they execute folks who get CAUGHT.  

in the US, they get promoted and bonuses.

Thu, 12/01/2011 - 18:19 | 1936512 thefedisscam
thefedisscam's picture

Yes, that is so true. Yet, MOST of Americans think the U.S. of A. has the Best system in the world. LOL

Fri, 12/02/2011 - 00:10 | 1937282 trav7777
trav7777's picture

uh, NO.

In China they execute people who cause TROUBLE for higher ups.

They do not CARE if you engage in fraud; the entire fucking NATION from top to bottom is all about fraud.  They do not care if you get "caught" either.  They ONLY care if you cause them to lose face.  THEN you get executed.  Or if you have something they want.

Thu, 12/01/2011 - 16:28 | 1936114 CPL
CPL's picture

It speaks volumes about voter disenfranchisement actually.

Thu, 12/01/2011 - 17:51 | 1936439 SHEEPFUKKER
SHEEPFUKKER's picture

Like the ballot boxes matter anymore.  Sincerely, hanging chad. 

Thu, 05/10/2012 - 15:10 | 2414251 Charles Bishop ...
Charles Bishop Weyland's picture

POINT. MISSED. It doesn't MATTER if they're "more competent." What matters is who is still SOLVENT at the end of the day.

What matters is they HAVE A PLAN, and it's CLEARLY being executed, while we worry about ABORTIONS, gay rights, and who Lindsay Lohan is tonguing this week--they are POSITIONING themselves as a BETTER ALTERNATIVE TO OUR whole little fiat-based  popsicle stand: and it's not based on stupid-assed BULLSHIT like skin tone or religion--it's based on RESOURCES--AND WHO CONTROLS THEM.

"Welcome to math class. We're doing NUMBERS up in heah, son."

Thu, 12/01/2011 - 17:36 | 1936387 Chief KnocAHoma
Chief KnocAHoma's picture

Zimbabwe? Who cares what that country of whores does? They change with the wind.

Fri, 12/02/2011 - 00:12 | 1937289 trav7777
trav7777's picture

Zimbabwe...lol.

Rhodesia was a successful country, but we just...can't...talk...about...that, can we? 

RSA was similarly successful...seems that Africa isn't so inhospitable after all. Seems like it is mineral rich if you know what a fuckin mineral is useful for.  Kinda hard to do that if your average IQ is 70, you lack the written word, mechanical devices, and the frickin wheel.

Fri, 12/02/2011 - 11:16 | 1938461 Going Loco
Going Loco's picture

I was born in Nigeria. My Dad was in charge of agricultural produce marketing for the whole country for several years. Nigeria then was stable, prosperous, and had an exportable food surplus. Of course they kicked us out. Look at the friggin' place now.

Thu, 12/01/2011 - 16:12 | 1936052 Spastica Rex
Spastica Rex's picture

The US press was manufactured in Taiwan.

Thu, 12/01/2011 - 16:22 | 1936093 homersimpson
homersimpson's picture

I think you're confusing the press with the parts on NASA's space shuttle.

Thu, 12/01/2011 - 16:30 | 1936121 tekhneek
tekhneek's picture

http://www.youtube.com/watch?feature=endscreen&v=_AumxDdL4Co&NR=1

I just can't stop fucking laughing.

I apologize if someone's already posted this months back but, I just found it and feel like Tyler should make it viral.

Thu, 12/01/2011 - 16:48 | 1936202 CitizenPete
CitizenPete's picture

just wrong, on numerous levels

Thu, 12/01/2011 - 17:16 | 1936314 Abiotic Oil
Abiotic Oil's picture

I think I have PTSD from watching that.

Thu, 12/01/2011 - 17:36 | 1936389 potatomafia
potatomafia's picture

LOL, that ther is fun-e.

Thu, 12/01/2011 - 17:41 | 1936413 infotechsailor
infotechsailor's picture

meine eyes... da burnnnn

Thu, 12/01/2011 - 18:40 | 1936599 Dave Thomas
Dave Thomas's picture

Meine augen sind gebrannt!

Thu, 12/01/2011 - 18:57 | 1936644 eaglefalcon
eaglefalcon's picture

meine augen brennen

Thu, 12/01/2011 - 17:47 | 1936423 Bwahaha WAGFDSMB
Bwahaha WAGFDSMB's picture

I liked this one better.  http://www.youtube.com/watch?v=9fzO_YhOYNQ

Thu, 12/01/2011 - 17:52 | 1936444 Spastica Rex
Spastica Rex's picture

Yeah, I've noticed that the half-life of my gold seems to be around 36 minutes.

Thu, 12/01/2011 - 17:53 | 1936445 Spastica Rex
Spastica Rex's picture

REAL?

OMG.

Thu, 12/01/2011 - 23:13 | 1937173 ucsbcanuck
ucsbcanuck's picture

Ewww!

Thu, 12/01/2011 - 16:25 | 1936101 SteveNYC
SteveNYC's picture

Bernanke is mortified. His hero no longer reveres in his worship.

Thu, 12/01/2011 - 16:31 | 1936126 Sofa King
Sofa King's picture

I thought the US printing presses were made in Germany.

Thu, 12/01/2011 - 17:19 | 1936326 Mister Ponzi
Mister Ponzi's picture

Heidelberg Mainstream 80, Bitchez!

Thu, 12/01/2011 - 21:03 | 1936889 Freddie
Freddie's picture

The Democrat's Muslim is using the same Zimbabwe & Mugabe template to wipe out the USA.  Democrat Jon Corzine is good buddies with the Muslim.

Fri, 12/02/2011 - 00:22 | 1937324 trav7777
trav7777's picture

u give those negroes way too much credit for competence.

Thu, 05/10/2012 - 15:22 | 2414293 Charles Bishop ...
Charles Bishop Weyland's picture

...And the "black' people didn't do a THING to stop white men from fucking themselves(and our society) in the ass with their mindless greed: don't forget to blame'em for THAT too.But what have you got in mind to insult the little yellow motherfuckers (who will soon own the planet) with? They already KNOW what color they are--and they DON'T CARE.

...they JUST KEEP STACKING. And taking more squares on the big board.

 Math is cruel like that.

Thu, 12/01/2011 - 22:27 | 1937060 YawningChasm
YawningChasm's picture

R U sure the US ones are not Made in Germany Heidelburg presses

Thu, 12/01/2011 - 16:05 | 1936016 Big Corked Boots
Big Corked Boots's picture

Missed opportunity - should have gone with gold.

Thu, 12/01/2011 - 16:20 | 1936085 bernorange
Thu, 12/01/2011 - 16:54 | 1936217 MrTown3
MrTown3's picture

saw Libya and decided against it?

Thu, 12/01/2011 - 18:48 | 1936614 Use of Weapons
Use of Weapons's picture

Tru story bro.

 

 

[Hint: USA Drone C&C down & on the ground in the big S brigade - I posted a link (African national paper - remember, when you're not owned lock stock n barrel, and your regime can barely police the major capital, you get good journalism some times) outlining the plays... a while back. ZH didn't pick it up, 'cause no-one is investing down there. Regional bias n all]

Thu, 12/01/2011 - 19:23 | 1936698 steve from virginia
steve from virginia's picture

There was inflation in the gold trade in Zimbabwe even after the Zim-dollar collapsed. Nothing much to buy in Zimbabwe with any currency.

China actually in the grip of hyperinflation, Gono is as useless as Barton Biggs.

Zim is a naturally wealthy country but everything has been stolen by horrible government.

Fri, 12/02/2011 - 00:24 | 1937329 trav7777
trav7777's picture

wasn't a problem when white people were in charge.

Oops, did I just utter a hate fact again? 

Thu, 12/01/2011 - 16:06 | 1936018 EscapeKey
EscapeKey's picture

Right, as if the Chinese won't be forced into blatant monetization.

Fix it to Gold, or forget about it.

Thu, 12/01/2011 - 16:06 | 1936021 dereksatkinson
dereksatkinson's picture

This is why i'm not so gun ho about shorting the euro.  Our currency is just as screwed.

Thu, 12/01/2011 - 16:29 | 1936118 GeneMarchbanks
GeneMarchbanks's picture

' “As long as we continue to use other people's currencies, where we do not have control over that currency, we are not going anywhere as a nation,” he said.'

Tell Greece that. Better yet, tell Merkel.

 

Fri, 12/02/2011 - 00:46 | 1937366 FEDbuster
FEDbuster's picture

Does it really matter which paper you use?  Single ply vs. two ply

http://americanbuilt.us/images/economy/monopoly-money.jpg

Fri, 12/02/2011 - 05:12 | 1937673 Sokhmate
Sokhmate's picture

3-ply works best for me.

Thu, 12/01/2011 - 16:08 | 1936025 DormRoom
DormRoom's picture

It hasn't ended well for the  last two countries (Libya & Syria) that sided against the Bank of International Settlement.  NATO no fly zone over Zimb next year

Thu, 12/01/2011 - 16:08 | 1936029 Mike2756
Mike2756's picture

Might as well, China owns Zimbabwe.

Thu, 12/01/2011 - 16:09 | 1936034 Manthong
Manthong's picture

You have to admit though, it is a challenge to determine which financial system of the two is least immoral and corrupt.

Thu, 12/01/2011 - 19:01 | 1936653 eaglefalcon
eaglefalcon's picture

the chinese won't be happy with the decsion.  they wanted to blow their pile o dollars as fast as they, but zimbabwe wants to get paid in yuan instead

Thu, 12/01/2011 - 16:09 | 1936035 Lord Welligton
Lord Welligton's picture

NATO humanitarian bombing commences in 5 , 4 , 3, ..........

Thu, 12/01/2011 - 16:13 | 1936046 tekhneek
tekhneek's picture

*Kinetic action.

Thu, 12/01/2011 - 16:13 | 1936057 Lord Welligton
Lord Welligton's picture

Back to the re-education camp for me then.

Thu, 12/01/2011 - 20:05 | 1936768 XitSam
XitSam's picture

You never left number six.

Thu, 12/01/2011 - 17:25 | 1936352 Mister Ponzi
Mister Ponzi's picture

To find (Saddam's) Mugabe's weapons of mass destruction?

To punish the (Taliban) ZANU-PF for (attacking the US) financial terrorism?

To free the civilians from the concentration camp they erected in the stadium in (Pristina) Harare?

Thu, 12/01/2011 - 20:47 | 1936861 goldfish1
goldfish1's picture

Sounds like Zimbabwe is putting their eggs in the correct basket...

http://www.telegraph.co.uk/news/worldnews/asia/china/8927580/China-hidin...

China 'hiding up to 3,000 nuclear warheads in secret tunnels'

The Washington Post reported on Tuesday that Georgetown University students under the instruction of a former Pentagon official have assembled the largest body of public knowledge yet about a vast network of secret tunnels dug by China's secretive Second Artillery Corps, responsible for nuclear warheads.

Thu, 12/01/2011 - 16:09 | 1936036 user2011
user2011's picture

Oh no... that's it.. US will have a war with China. US won't stand any threat to the world reserve currency.

Thu, 12/01/2011 - 16:16 | 1936068 Ghordius
Ghordius's picture

US bombs over US factories (operated in China)?
Nah, not good for stocks...

Thu, 12/01/2011 - 16:32 | 1936128 NumberNone
NumberNone's picture

Just returning much of the bomb components to their homeland.

Thu, 12/01/2011 - 16:41 | 1936157 CPL
CPL's picture

Maybe they are looking for a Mouse that Roared situation.

Thu, 12/01/2011 - 23:02 | 1937148 Vlad Tepid
Vlad Tepid's picture

Milosevic, Saddam and Qadaffi all swear that model is broken.

Thu, 12/01/2011 - 16:10 | 1936042 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Time to send in the "good" Al Qaeda along with humanitarian bombs through kinetic action!

Thu, 12/01/2011 - 16:11 | 1936045 slaughterer
slaughterer's picture

Fed could use this Gono guy.  

Thu, 12/01/2011 - 16:12 | 1936047 non_anon
non_anon's picture

ha ha, Mugabe no fool or is that tool

Thu, 12/01/2011 - 16:13 | 1936055 JPM Hater001
JPM Hater001's picture

My favorite was when Germany scolded us.

Zimbabwa is just gravy.

Thu, 12/01/2011 - 16:14 | 1936059 Desert Irish
Desert Irish's picture

"the Confederation of Zimbabwe Industries"

I hope they managed to get all 4 attendees in the same booth /sarc

Thu, 12/01/2011 - 16:16 | 1936069 FranSix
FranSix's picture

And?  If the Yuan depegs and hyperinflates?

Thu, 12/01/2011 - 16:17 | 1936070 sabra1
sabra1's picture

U.S. is already cutting off mineral and oil trade to china, by taking over north africa, middle east, now australia! you can only push so far, then KABOOOOM! don't forget, they shoot bankers in china!

Thu, 12/01/2011 - 16:17 | 1936075 ziggy59
ziggy59's picture

Can we leave Bizarro World soon enough?

Thu, 12/01/2011 - 16:49 | 1936173 Captain Kink
Captain Kink's picture

For my part, yesterday would not have been "soon enough".

 

CNY = USD

Thu, 12/01/2011 - 16:18 | 1936078 Motley Fool
Motley Fool's picture

They have good reason to bash em, they speak from experience.

 

http://foolishperspective.blogspot.com/

Thu, 12/01/2011 - 16:18 | 1936079 Sudden Debt
Sudden Debt's picture

WHOEHAHAHAHAHA!!!

PRICELESS! :)

Thu, 12/01/2011 - 16:19 | 1936083 yogibear
yogibear's picture

Bernanke and the Fed keep sucking in trash debt.  Bernake and the fed are looking more like the black hole of the financial garbage heap.

Why would anyone have any fiscal responsibility when they know Bernanke and the Federal Reserve will be there to bail them out.  Just keep cooking your bank/treasury books and Bernanke will just keep sucking in the garbage debt. 

With Bernanke and the federal reserve fraud is encouraged.  Just cook your bank/countries books and wait for the US federal reserve to bail you out. In the mean time siphone those funds to private assets overseas.

Bernanke and the Ferderal Reserve are arrogant and think they can do this forever. Let's see how long they can keep the ponzi going.

 

 

Thu, 12/01/2011 - 16:24 | 1936099 sabra1
sabra1's picture

Bernanke and the Ferderal Reserve are arrogant and think they can do this forever. Let's see how long they can keep the ponzi going.

when everyone has been MF Globaled, that's when the ponzi ends!

Thu, 12/01/2011 - 16:21 | 1936084 sabra1
sabra1's picture

 

china is not stupid, yet now we'll see US troops sent over, as was done in Aussieland!

Zimbabwe inherited one of the strongest and most complete industrial infrastructures in sub-Saharan Africa, as well as rich mineral resources and a strong agricultural base.

Fri, 12/02/2011 - 00:27 | 1937339 trav7777
trav7777's picture

who built that infrastructure?

And what did the new owners promptly do with it?

Wait, is this another hate fact?

We're all equal, because...well, because the MSM and public schools all say we are.

Thu, 12/01/2011 - 16:20 | 1936087 bsdetector
bsdetector's picture

Do they actually conduct their domestic trade with our green bills?

Thu, 12/01/2011 - 16:34 | 1936134 CPL
CPL's picture

Like argentina and peru in the early 90's, first thing you do is find a street exchange bidder usually right next to the bank.

100 Peruian Sols for a single USD at the bank.

650 Peruian Sols for a single USD with the guys on the street.

So the exchanges rates posted world wide if there is a healthy black market are usually WAY off.  Sometimes the local or foreign currency isn't enough and an exchange has to be made someone elses debt.

Thu, 12/01/2011 - 16:44 | 1936175 CitizenPete
CitizenPete's picture

Any large branch of major bank in China with have money changers sitting in the lobby.  they don't even try to hide it -- I have never seen an attempt at discression.   They will trade RMBs for Dollars and visa versa -- the banks even have cash counting machines for people to use in the lobby.   These are NOT bank officers or tellers. 

There are limitations on how many RMBs people can send out of China during a given year, so people convert to USDs then take them to the window and transfer them out.   

Happens every day all over the place. Litterally brown paper sacks of cash exchanged in plain view with a bank gaurd standing in the corner and bank officials running around as normal. 

Not making this shit up. 

Fri, 12/02/2011 - 00:31 | 1937343 trav7777
trav7777's picture

bbbut...bbbut...they SHOOT people in China!!!!!!1

Thu, 12/01/2011 - 16:21 | 1936089 Seer
Seer's picture

Apparently they didn't get the memo that says confronting USD supremacy AND having OIL means certain DEATH.

Now watch China push buttons elsewhere, behind the scenes.  As long as they're actually paying for resources I figure that they'll have the upper-hand (more countries will realize that they'd rather have stuff to trade than be "occupied").

Thu, 12/01/2011 - 16:45 | 1936185 CitizenPete
CitizenPete's picture

yepper.

Thu, 12/01/2011 - 19:13 | 1936678 eaglefalcon
eaglefalcon's picture

Apparently they didn't get the memo that says confronting USD supremacy AND having OIL means certain DEATH.

 

Correct when one or two at a time challenges the US.  However, at the rate the Bernank prints and the Jeetner borrows and the Obummer blows, the day will come when 100 countries refused to accept FRN on the same day.  By then even military intervention wouldn't change a thing

Thu, 05/10/2012 - 15:26 | 2414313 Charles Bishop ...
Charles Bishop Weyland's picture

 Bingo.This will happen more frequently now.

Thu, 12/01/2011 - 16:21 | 1936091 The trend is yo...
The trend is your friend's picture

own gold and trade it in for dirt cheap stock after the markets crashes..it really is that simple

Thu, 12/01/2011 - 16:27 | 1936107 Seer
Seer's picture

"dirt cheap stock" will be worth exactly that- DIRT!

Please note that DIRT is NOT SOIL, which is infinitely more valuable.

Fri, 12/02/2011 - 09:16 | 1937889 Raging Debate
Raging Debate's picture

I am picking up $20k dollars worth of Yuan in 2012 for a late 2013 revaluation trade opportunity. China becoming the worlds currency peg is a feature not a bug. One will want Forex in America as an additional hedge if you plan on staying. I expect between a 500-600% return. But don't hang onto it past 2014.

Mandraking to a new host nation after the value is stripped from a culture is part of the CB model. A major problem now is mandraking entire blocs of countries either East or West. The cultures would probably take another two or three decades to harmonize even with Interwebs and rapid information sharing.

Beans, bullions and bullets are for the break down of supply chains. This is wise to keep preparing slowly but surely. MENA geopitical risk for Q2 of 2013. Once that regional confrontation settles down, expect another one in 2015 in Korea and emulating out to WW3. By 2021 it will be over and a new high time for man will emerge. Much will need to be rebuilt. Practice leadership at the local level and get your community prepared. Good training for when the entire nation will neer to be rebuilt...

Thu, 12/01/2011 - 16:26 | 1936103 JSD
JSD's picture

Wait, Zimbabwe has a central bank?

Thu, 12/01/2011 - 17:03 | 1936265 vato poco
vato poco's picture

Sure. It's name is "Mugabe".

Thu, 12/01/2011 - 16:27 | 1936109 Shizzmoney
Shizzmoney's picture

I mena, it is a sad day when I am almost rooting for China here.  I mean, obv it would suck if they were to have a gold standard backed currency, or tried to revive itself to Res Currency status, because that would mean war, which would mean bad shot.

But the "leaders" of both our economic and political systems are failing us, they aren't listening, and won't, because they short term benefit by fucking both its citizens and other countries in their respective assholes.  But blowback is a bitch, and it probably won't come from the US citizens, who are either too distracted, busy from their corporate job which demands 50-80 hour work weeks, or have grown too apathetic (and stupid) to give a shit.

That's why I root for China, even if they way they run their country is draconian, and the fact they also are doing what they are doing because their OWN citizens are getting fed up with their shit wages, and unlike pacified US citizens, those motheruckers rile shit up when they have a cause. 

BTW, if you want an OLO of the the day, just look at this chart on Nonfarm Biz Sector Labor wage scale:

http://research.stlouisfed.org/fred2/series/PRS85006173?cid=32351  

Thu, 12/01/2011 - 18:19 | 1936517 Seer
Seer's picture

China's NOT going to magically do the correct thing(s): their system is also stratified and is a grow-only system.  It will be Mother Nature that ultimately reins things in.

Thu, 12/01/2011 - 18:53 | 1936633 Use of Weapons
Use of Weapons's picture

Newsflash:

 

American <=> China now.

 

The ethos of business behind both of their flags is the same. Apart from the bit where Chinese people really do believe they're better than other races... and the USA has to look at the evidence of 50 years of the most wealth and look all shameful. Even your MBAs suck ass. Not to mention that huge 40% obesity rate. I mean... fatty meat is horrible, unless you put it into a stew for 4 hours, and even then... it is hardly fine dining, is it?

Thu, 12/01/2011 - 19:09 | 1936670 Goldilocks
Goldilocks's picture

Thrive - The Movie. (2011)
http://www.youtube.com/watch?v=LYa4VXkx7IQ

@01:33:45,

“The social experiment in China under Chairman Mao’s leadership is one of the most important and successful in human history.”

David Rockefeller, 1973

Thu, 12/01/2011 - 16:28 | 1936113 slewie the pi-rat
slewie the pi-rat's picture

finally!

a currency w/ intrinsic value!

how many bananas will a banana cost, now? 

Thu, 12/01/2011 - 16:38 | 1936143 CitizenPete
CitizenPete's picture

LMAO - perfect. 

Thu, 12/01/2011 - 16:46 | 1936188 Captain Kink
Captain Kink's picture

Well said, sir. Brilliant.

 

<golf clap>

Thu, 12/01/2011 - 16:30 | 1936123 firstdivision
firstdivision's picture

Well, we at least know who has all the rights to their natural resources.

Thu, 12/01/2011 - 16:39 | 1936149 bigbucksr
bigbucksr's picture

does it really mattter if Zimbabwe aligns their currency with the Chinese Yuan since the Chinese Yuan is pegged to the US Dollar?  

what a bunch of hogwash this story is....like it matters!

The Chinese aren't even willing to free float their currency!   if the Chinese free floated their currency or pegged it to Gold, then we'd have a much bigger story....

but China will never peg the Yuan to gold, because the USA has something called HAARP.....China just has to look to the tsunami/earthquake destroyed Japan to see what will happen to them if they dare to desert the US Dollar for gold..... 

Thu, 12/01/2011 - 16:40 | 1936153 Quinvarius
Quinvarius's picture

I was thinking the same thing.

Thu, 12/01/2011 - 17:16 | 1936315 bigbucksr
bigbucksr's picture

China is a paper tiger, in my opinion....sure they have some gold mines, but they have little other natural resources.....and demographically, due to their one child policy, they are an accident waiting to happen....

and the fact that all of their wealth so disparate between the coast and inland part of china presents real socio economic issues for them.....and the fact that the mjority of their plant capacity is on the coast of China is a very bad for them given the current weaponry of the US military

China knows all of this...the US knows all of this....it's irrelevant whether Zimbabwe alignes their currency to the USD or the Yuan because those 2 currencies are basically the same and run by the same group of people which consists of the US Fed, the IMF, the ECB, the Bank of England and the Bank of Japan and the Bank of China.....  they are all aligned as evidenced by yesterday's coordinated actions by all of these groups including the Bank of China...it makes me laugh watching people on CNBC try to claim that the Chinese interest rate cut was not coordinated with the reduction in the Fed US dollar currency swap lines......

so it doesn't matter that Zimbabwe aligns with Chinese Yuan...it just doesn't matter 

Thu, 12/01/2011 - 18:28 | 1936554 Seer
Seer's picture

"sure they have some gold mines, but they have little other natural resources.."

Been saying that for years!  Same goes for India.

Please strap yourselves in, we're now leaving the virtual world and entering the physical world...

Peg?  One day that'll go away.

Demographics?  Who isn't struggling with this one?

Thu, 12/01/2011 - 19:10 | 1936656 Use of Weapons
Use of Weapons's picture

Rare earths?

Not to mention another ten minerals that China has that everyone else doesn't. Look at your mobile phone. Look at Africa. Look at China. Shit ain't happening without their involvement. (American fields of rare earths do not contain pure elements, and Australian ones have geophis issues).

 

Here's a fun thought experiment: 40 years of Communism to bring a country into a modern industrialised standard (not involved in WWII, barring Japan, and no large scale industrial action there unlike Russia) cost 40 million lives. In a population (even doing the "correct thing" and paring down birth to a 2:1 ratio) of over a billion. Now making the entire world's (note: other TEZ have succeeded, but lack the focus) tech.

Now look at the USA: 320 million people, 40% obese, 10% hipster, 49 million (or 15%) on SNAP and so on and so forth. 0.01% own it all, and still can't get a fucking laptop made without dealing with China.

 

 

Objectively speaking... I know where my money is. It is on the lean, hungry and 3:1 ratio. Blame your Corporations, because no-one else profited so much over making your herd useless and weak. Oh, and the USA has about 20% "management" class, who are more than useless. Roladex this, mother-fucker.

http://www.youtube.com/watch?v=a-yoMEZXnbQ

Thu, 12/01/2011 - 20:44 | 1936854 mjk0259
mjk0259's picture

Rots of ruck making money in China if you are buying stocks. Sure, growth is fantastic but no profits accrue to those not connected to CP unless as part of some larger plan to rip people off.

 

Thu, 12/01/2011 - 22:38 | 1937095 YawningChasm
YawningChasm's picture

At least 10 million Chinese died as a direct result of WW2, and 23 million died in the USSR

Thu, 12/01/2011 - 16:48 | 1936201 sabra1
sabra1's picture

china has vast gold mines! so china digs gold out of ground, stashes it on the side, not to interfere with PM markets, which would dive if more gold was added to the system! china is not stupid, far from!

Thu, 12/01/2011 - 16:41 | 1936158 lolmao500
lolmao500's picture

Meh, Gono has as much credibility as Bernanke.

Thu, 12/01/2011 - 16:41 | 1936160 Josh Randall
Josh Randall's picture

Ben: "et tu Zimbabwe ?...."

Thu, 12/01/2011 - 16:46 | 1936190 kito
kito's picture

its always smart to mouth off to a bigger stronger kid while hiding under the legs of your father..........................

Thu, 12/01/2011 - 16:48 | 1936199 NumberNone
NumberNone's picture

Hollow fucking threats.  Jump on the 'Look East Policy' and invite more Chinese into your country sounds like a winner.  

Another disgruntled worker said, “We are now slaves in our own country at the hands of our new colonisers. The government is watching while we are being mistreated. When we reported the Chinese to the Labour court, Tarumbwa backed the Chinese.”

 

http://www.thezimbabwean.co.uk/news/zimbabwe/54645/chinese-treat-workers...  

Thu, 12/01/2011 - 16:52 | 1936212 CitizenPete
CitizenPete's picture

Potential starting place for a currency backed by real products and services like Digital Coin.  Consider a currency that is backed by value and delivery of tangable assets not debt and the promiss of slaves paying more taxes.

Thu, 12/01/2011 - 17:03 | 1936264 Burgess Shale
Burgess Shale's picture

Since when is Zimbabwe worthy of anything but derision?  Must be a slow news day, eh Tyler?

Thu, 12/01/2011 - 17:08 | 1936289 Abiotic Oil
Abiotic Oil's picture

The Chineese are simply collecting their debt the Zimbabweans owed after China was a major funding agent of the overthrow of the Republic of Rhodesia.


China is now Zimbabwe’s biggest trading partner, with the Asian giant absorbing most of the country’s mineral and agricultural produce.

 

Vice President Joice Mujuru first raised the possibility of adopting the yuan in September last year, saying it would be a “logical step” and could help solve some of the country’s liquidity constraints.

Thu, 12/01/2011 - 17:16 | 1936313 chaartist
chaartist's picture

we are all zimbabwe.

Thu, 12/01/2011 - 17:19 | 1936325 spekulatn
spekulatn's picture

 "Gono says Zimbabwe should in fact be looking to the Chinese yuan as its main currency, while urgently seeking to restore its own currency which was abandoned in 2009 after a dramatic loss of its value."

 

Reminds me of this blast from the past.

 

http://www.independent.co.uk/news/world/americas/rappers-join-models-in-...

 

 

 

 

 

 

Thu, 12/01/2011 - 17:56 | 1936452 foxenburg
foxenburg's picture

It would be funny if not so sad. The elite Zimbos are selling Zimboland lock stock & barrel to the Chinese. The Chinese will exploit the country to an extent that will make the white man's exploitation seem most benign. The price will be paid by the masses. Funnily enough, Zimbabwe is already littered end to end with countless railway locomotives, aircraft  and buses that don't work and have been scrapped. Mugable & co think they are spiting the west  and the white man by cosying up to China. Good luck to them.

Thu, 12/01/2011 - 18:19 | 1936519 Stevious
Stevious's picture

What China is doing makes perfect sense.  China is a resource poor nation.  Africa is a resource rich nation. 

The whites came to Africa, plundered and took slaves--think the Aficans have forgotten?

In the 1420's Zheng He (during the Ming Dynasty) travelled to Africa. 

The Chinese Ambassador to South Africa told the Africans in 2007:

"Zheng too to the places he visited (in Africa) tea, chinaware, silk and technology.  He did not occupy a square inch of land, nor did he take a single slave.  What he brought to the outside world was peace and civilization.  This fully reflects the good faith of the ancient Chinese people in strengthening exchanges with relevant countries and their people."

China is doing it right--plain and simple.  Their attitude is not one of dominant force.  Add to this the enormous movement of Chinese immigrants to African countries.  Eventually Africa will not become a vassal state, it will become a tributory state and sadly I suspcet it will be far fairer and more democratic than anything that the whites ever offered.

foxenburg I respectfully disagree--the trading relationship with China will likely be a win/win one.

I suggest that you read: When China Rules the World by Martin Jacques, a book that gives tremendous insight to the mult-thousand year history of the Chinese and how it is likely to affect their (and our) future.

Thu, 12/01/2011 - 19:09 | 1936668 High Plains Drifter
High Plains Drifter's picture

jewish faces in the chinese government.  who was it that started communism in china?   

http://jewishfaces.com/china.html

 

who owned the british east india company and who was it that got the chinese hooked on opium?  

 

who took a loser (mao ) and made him chairman?  etc etc etc.......

 

china does what a small clique there want them to do and that is the end of this discussion. period........

Fri, 12/02/2011 - 07:03 | 1937739 foxenburg
foxenburg's picture

Well, Africa's a big place, we are specifically talking about Zimbabwe. Only just over a hundred years ago Salisbury wasn't much more than a flag pole, so there certainly wasn't any slavery. By the late seventies it had become an industrial, mining and agricultural powerhouse. Everyone was well fed, employed and educated. Without question white rule was patronising and they figured they knew what was best and that the blacks would cock it up. The idea was that there would be a gradual transfer of power, which was happening, but not fast enough for the likes of Mugabe and Nkomo. Enter the Russian and Chinese communists who, with the assistance of Jimmy Carter, funded and equipped a terrorist civil war. Mugabe came out on top and the rest is history. Of course, the denouement came as no surprise to white Rhodesians. Mugabe's rule has been more rascist than Ian Smith's ever was....and of course, South Africa tacitly supports him because the masses in South Africa also like the idea of land confiscation, etc.

btw, I meant to say that the unserviceable junk trains, planes, buses, tractors strewn from Vic Falls to Beitbridge are all Chinese made. 

Thu, 05/10/2012 - 15:39 | 2414357 Charles Bishop ...
Charles Bishop Weyland's picture

 ....aand here's where the Chinse WIN THE GAME OUTRIGHT. is there an APPLAUSE button here?

"Why BOTHER with the Westerners who treat you with contempt and simply rob you?" The Chinese are playing the LOOONG game. the same way they always have.

 "Art of War," bitchez.

Thu, 12/01/2011 - 18:14 | 1936494 Saxxon
Saxxon's picture

Look out longer into the horizon.  China is on the rise and the U.S. is on the wane.  It may take 10-50 years but China will own Africa and most of SE Asia and will proceed to colonize them and draw produce therefrom.

As I've been pounding the desk about for years, the PRC is the only country in the world ready, willing and able to colonize in the old-fashioned sense.  They can move lots of their Han people into an area and reconstruct it in their image.  It is an opportunity for the new settlers.

China's rulers think in larger spans of time.  We barely manage 4 years.  The U.S. is on the wane as a power.  We just got the guns now.  This bank thing is just a bump in China's road.

Thu, 12/01/2011 - 18:17 | 1936507 MrBinkeyWhat
MrBinkeyWhat's picture

I have my 100T Zim note. Has some rocks on the front and a cow. Got it for $3.50 as a conversation piece, and an example of hyper-inflation.

Got your...... (don't want to be boring).

 

Thu, 12/01/2011 - 18:52 | 1936634 High Plains Drifter
High Plains Drifter's picture

sons of kush are kule.........

Thu, 12/01/2011 - 18:56 | 1936640 bbaez
bbaez's picture

1.) Coca Cola

2.) Pepsi

3.) RC Cola

 

Get you some RC Cola Zimbabwe

Watch that Aid Dry up......

Thu, 12/01/2011 - 20:34 | 1936817 AgShaman
AgShaman's picture

Ewe........oooooooooooo.....Ewe.....

Run for the Money....Ewe don't even know about Wild Mountain Honey......

This is a funny little "burn"

It would be like having a pocket full of cash on a late night stroll down "Whisper Alley".....and having some cheap whore tell you she's not interested...and kindly keep to steppin'

Thu, 12/01/2011 - 20:38 | 1936844 mjk0259
mjk0259's picture

Why not bananas?

Thu, 12/01/2011 - 20:41 | 1936850 robertocarlos
robertocarlos's picture

People are leaving the USA now?

Thu, 12/01/2011 - 22:19 | 1937007 Use of Weapons
Use of Weapons's picture

40% can't even manage to waddle to the nearest Walmart without a disabled peep-peep mobile.

And you want them to know what a passport is, or that there's other countries out there, or that the shit they're fed on MSM isn't "real"??!

HERESY. BURN THE WITCH. SHE IS NOT AMERICAN. PLEDGE TO THE FLAG....UNDER GOD AND CORPORATE NATIONHOOD. YOU ARE FREE, YOU ARE FREE. YOU ARE FREE.

 

While the rest of the world wonders how, politely, we can eradicate you stupid mother fuckers. No, really.

We do.

The other 60% is broken up into 25% military personnel, 20% SNAP / homeless cases, 5% financial sociopaths, 4% religious pastures and 1% evil mother fuckers running the gaff.  Not to mention the huge swathes of 50% coverage of asinine and totally ignorant Religious belief thrown across those classes.

And Hipsters sure as shit ain't helping your cause.

http://www.youtube.com/watch?v=aCbfMkh940Q

Your society is total scum, and has polluted the rest of the world. You have about 5% decent humans amongst you. Prepare for some culling. And yes, your society lasted less than 200 years, and boy did we regret it. Dealing with your case history is like an eternity in "paedophile priests". Holy hellfire... how fucking wrong did the USA get it.

 

If you think Europe crashing is a fun ride, wait for the next 6 months. Hung up about sex, permissive about violence, intolerant about religion, Corporately indoctrinated to not be able to have independent thought... Scum.

http://www.youtube.com/watch?v=3cEf7wn7a1U&feature=relmfu

 

 

Oh, and yes. That flu virus is for you, my pretties.

 

 

Fri, 12/02/2011 - 15:36 | 1939541 Raging Debate
Raging Debate's picture

I live here in America UoW. The ratio of scum in any nation always seems to be about a third. In America, it is every other person but it does vary a little from state to state. Inflation vastly outsripping wages over a decade creates desperation and the people steal the difference from their employers. Since 70% of US is small business, the result is restrained hiring.

People here have lost quite a bit of weight here, especially over the last year. You must still think it is 2007. Sure, the 20% SNAP crowd can still buy boxes of twinkies but I do believe in 2013 that these cards will be limited to certain kinds of proteins and pasta only, much like the UK now for welfare instead of $800 pounds a month.

Last, the entire world loses now UoW. The age of empires is ending after several thousand years of them. America was the most benevolent empire in history but it was still a short-lived empire. Your comment reflects coming triangulation from EU, China and Russia against America. Nine total specific countries began this plan in 1998. This game has been expected. The choices of this triumvate will be different than what you may expect.

Between now and a decade is an eternity in politics. Some national leaders are considering how it will change and if protecting certain individuals are worth entire cities/populations. The need for growth and trade will always supercede the need for revenge. But I am not ignorant of the reality that a couple global leaders feel differently.

By 2021, every person on earth will have lost family from war. I am going to guess your sentiment about aggression is likely to change.

Fri, 12/02/2011 - 00:22 | 1937323 sethstorm
sethstorm's picture

A good time for the US Government to topple Zimbabwe, in favor of someone that will forsake China.

Fri, 12/02/2011 - 00:34 | 1937344 s2man
s2man's picture

Maybe its because I just spent 7 hours in a hosptial waiting room (plus 2 hrs driving) and my mind is zonked, but, why all the analysis?  That is funny. 

BTW, I keep a Zim $100T bill on my office wall to remind me where things are headed.

Fri, 12/02/2011 - 08:28 | 1937796 kralizec
kralizec's picture

"BTW, I keep a Zim $100T bill on my office wall to remind me where things are headed."

Excellent!

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