- Battle of the fiat currencies has started. The Chinese have made quite a few bold moves to turn the Yuan into a currency for international trade. LA Times reports :
The yuan is gaining global influence, but experts say it would be years before it could supplant the U.S. dollar.
In a series of what might be called baby steps, Chinese officials recently have moved to globalize the yuan and promote its influence overseas, with Shanghai designated as command central.
Since last December, China has signed deals with six countries, including South Korea, Malaysia and most recently Argentina, for currency swaps that would inject Chinese money into foreign banking systems. That would allow foreign companies to pay for goods they import from China in yuan, bypassing the dollar — the currency that dominates international trade and finance, including foreign exchange reserves.
Beijing is also taking initiatives to use the yuan, also known as the renminbi, to settle trade accounts between some Chinese provinces and neighboring states, starting with Hong Kong. “The central bank has set promoting the renminbi for payment settlements as the main task for this year’s work,” said Shi Lei, an analyst in the global financial markets section at Bank of China in Beijing.
China is also spreading the yuan’s influence in Asia by making loans and investments in other countries, as well as through its many tourists who carry loads of Chinese currency abroad. In Cambodia, where the dollar has long dominated, a tour guide in Angkor Wat recently asked visitors if they could pay him in yuan.
Meanwhile, Chinese officials have called attention to the risks of an international monetary system that relies on the dollar, which many analysts have begun to see as unstable because of heavy deficit spending embraced by Washington to combat the recession.
China’s central banker last week called for the creation of a new global currency, although he didn’t propose that the yuan replace the dollar. The idea was quickly dismissed by some U.S. and Western officials, and it didn’t get much attention at the Group of 20 summit Thursday in London.
Still, Kirby Daley, a strategist in Hong Kong for brokerage Newedge Group, said: “I think these are very, very shrewd moves” by the Chinese. “The timing is really good.” Daley and other experts say it would take years for the yuan to supplant the dollar; the Chinese currency is currently tightly controlled and not even freely tradable in international markets. It will take time for the yuan to gain international acceptance and for China to reform its capital markets and diversify its economy, crucial preconditions before the Chinese can elevate their currency to rival the dollar.
But given the risk of inflation diminishing the value of the dollar, and neither the euro nor the Japanese yen viewed as attractive alternatives, Chinese and Western analysts say they can envision the yuan becoming the dominant global currency by 2020. That’s when Beijing expects the yuan to have been fully liberalized, institutional arrangements and rules to have been set, and Shanghai to be firmly established as an international financial center.
“That’s a reasonable timetable,” said Tim Condon, chief Asia economist for ING Financial Markets in Singapore, adding that the outlooks for the U.S. and Chinese currencies go in opposite directions. “I see undesirable risk against the dollar and appreciation pressure on the Chinese yuan.”
For the Chinese, that’s not necessarily a good thing at the moment. China holds about $2 trillion in foreign exchange reserves, about half in U.S. Treasury bonds and other government-backed debt. A weakening dollar would erode the value of those investments. Yet any sudden or large move to shift those funds could destabilize the dollar and cause just such a scenario to unfold.
At the same time, the yuan is widely thought to be undervalued. American manufacturers and politicians have long complained that China manipulates its currency to boost exports. By keeping the yuan’s value artificially low, critics say, China enables its manufacturers to sell their goods more cheaply in overseas markets. If the exchange rate — currently pegged at 6.8 yuan to the dollar — weren’t tightly set by Beijing, even Chinese analysts figure the ratio could drop to 5 yuan to the dollar.
Given China’s heavy reliance on trade and related investments for growth, Beijing can’t afford to let the yuan appreciate too quickly. To reduce those risks, it needs time to continue to grow its economy and transfer more of its economic output to services and the domestic sector.
A shift from the dollar to the yuan as the global currency would have significant practical and symbolic consequences. The dominance of the dollar in trade, financing tools, commodity pricing and international payments has given the U.S. a big advantage in driving commerce and funding the running of the country, although that’s also allowed Americans to spend more than they produce and save.
Psychologically, the unseating of the dollar would send a signal that the U.S. is losing its stature as the world’s supreme economic power.
Yi Xianrong, a researcher at the Chinese Academy of Social Sciences, cautions against getting too excited about the central government’s recent moves, including the announcement last week that Shanghai would be built into an international finance hub. He says there’s a long way to go before the yuan can become an international currency.
At the moment, the yuan is traded in the open market in only a few small countries such as Romania. “It’s not so meaningful to talk about this right now, when the renminbi is not yet convertible,” Yi said.
Will the Anglo-Saxon banksters give way to the Chinese? Will they relinquish their control on the printing of fiat money and thus world financial control? Relinquish world economic control? I don’t think so! So what will America, UK and their European buddies do? We live in interesting times!
- What was the real agenda of the recently ended G20 meeting. Why call up so many world leaders to discuss dire financial and economic depression for only 4 1/2 hours. A similar meeting in the 1st Great Depression lasted a few weeks with no firm solution to the world’s problems.
- The main agenda is largely hidden behind the MSM propaganda. The battle is being fought behind the scenes for quite a few months now. Never believe all the rhetoric politicians dish out in all these meetings. Rob Kirby comments :
These sordid tales are all headline grabbers for sure; but convenient side-show deceptions none the less. They are all sub plots of the $10 trillion+ central bank and government guarantees and subsidies that have been doled out in taxpayer’s names and at their expense – a bigger story that receives little or no press.
If, as and when the learned mainstream financial press turns up the lights on the bigger 10+ trillion debacle they’ll still be missing what’s at the root of what is poisoning our financial system, which is the “best before date” or shelf life of fiat money itself. The following chart is excerpted from chapter 3 of an audio visual presentation in Chris Martenson’s Crash Course.
Explanation: Fiat currencies are all lent into existence – but only in a manner that provides for re-payment of principal, not interest. Thus fiat systems require that the money supply grow – at a minimum rate known as “usury” or interest, in order to pay back the earlier loans plus the interest. In effect, fiat money or in the vernacular, the US dollar (but really all fiat currencies) is “THE BIGEST PONZI GAME”on the planet. As Martenson points out; the geometric growth curve eventually results in a parabolic “up” phase no matter how low the growth rate is – the only determinant before this outcome results is – TIME.
The premeditated financial fraud and economic tom-foolery we’ve witnessed in recent years; rigging of the price of strategic commodities particularly gold, falsification of inflation data together with obscene amounts of interest rate derivatives to provide cover for engineered lower interest rates in the bond market have only bought time – delaying the point in time when we reach the inflection point where money growth goes PARABOLIC. Ladies and gentlemen, our TIME is UP! Just take a look at the St. Louis Fed recent report regarding the U.S. monetary base:
Gordy’s Big African Swindle
The “Great Gordini” [Brown] delivered the G20 communiqué at the conclusion of meetings in London Thursday, April 2, 2009 . Besides confirming that heavily indebted member nations were already committed to 5 Trillion, largely borrowed, in planned fiscal stimulus, Brown revealed that the predatory I.M.F [International Monetary Fund] would be granted an additional USD1 Trillion in new funding. Of course, the real nugget of this new orgy of spending, buried under a blizzard of money printing with the auspices of SDRs, was a pledge that the I.M.F. gold would begin selling some of its gold bullion reserves, perhaps as much as 400 tonnes, to establish a 50 billion fund to help the developing world – primarily Africa .
- Gold price plunged US$20/ounce after Gordie’s speech. So what is the real reason for Gordie’ speech about IMF gold sales? Rob Kirby again :
Mr. Brown, your statements regarding yours and the I.M.F.’s concern for the plight of Africa have been exposed for what they truly are – a SHAM designed to provide cover for bombing the gold price so as to fool us all into believing that the fiat U.S. Dollar, lynchpin of the Anglo-American Central Banking Cabal, still has value. Isn’t it about time these shenanigans stopped?
You see folks, there has been so much collusion and so much fraud committed by our learned leaders – in vain attempts to preserve and prolong the life span of fiat money – that they simply cannot ‘come clean’ and tell us the truth. The acknowledgement of such would be too indicting for those who currently hold power.
Society in the West – with the U.S. fiat Dollar as the worlds’ reserve currency – is NOW on that parabolic phase of the money growth curve. This is why so much money is being created. This money creation is going to continue because is must, or the whole system collapses! Central Bankers are frantically trying to keep this fiat money “WHICH MUST BE CREATED” out of the hands of the commoners. Historically, they have been advocates of various schemes designed to do this; like very expensive wars, off balance sheet derivatives skullduggery and other assorted financial ponzi debacles where obscene amounts of fiat money can “disappear” – without a trace.
Ladies and gentlemen, the learned Central Bankers KNOW that historically, fiat currencies have a life span of around 40 years, maximum. The U.S. closed the gold window in 1971 – 38 years ago. This is why the dollar is long in the tooth. This is why all of the king’s horses and all the king’s men – ultimately, will not be able to put the humpty-dumpty-Dollar back together again. Federal Reserve ENGINEERED credit contractions like we are currently experiencing will continue to inflict great pain on humanity and in the end, this will at BEST – buy time, meager as it may be.
- Brian Bloom is of similar opinion :
It seeks to further de-emphasise gold as a currency by pledging the proceeds of sales of hundreds of tons of gold (worth US$50 billion) to help the world’s poorer nations. Note how all other “stimulus” measures refer to trillions of US Dollars and SDR’s denominated in US Dollars, but only this particular initiative – which tugs at the human heart strings – refers to gold. This single act was, in this analyst’s view, the “feint” that allowed the US Dollar to remain in place as the King of currencies. The attention was deflected away from the dollar and towards gold.
- Don’t be too concerned with the dropped in gold price to below US$900/ounce. It is obvious from the actions of the gold cartel and their politician henchmen, that they know the death of USD is imminent. This is similarly echo a few weeks back when Bernanke after the FOMC meeting announced that the FedRes will activate Quantitative Easing. Gold price went from US$880 to US$960/ounce. But many shorts came out at around US$960/ounce to cap the rise of the price. Who in their right minds will aggressively short gold after such a momentous QE announcement?
- If you are holding gold, you should in no way be discouraged. In fact the actions of Gordie confirms the belief that we are heading towards a global monetary meltdown soon. Fiat currencies are in trouble worldwide especially the USD. Both the Chinese and the Russians know this. Many emerging countries know this. Even Zimbabwe knows this. They have selected S. African Rand as their currency of choice instead of the USD.
- So what is the real agenda? A new monetary order? A new financial order? Removal of the USD as world reserve currency? Loosening the grip of Anglo-Saxon banksters on the world financial order? Some kind of war is being fought behind the scenes. It will be foolish to abandon gold in such a situation.
- Gold price is still tracing a Tea Cup and Handle formation. It is forming the handle now. The target is still US$1250-1320/ounce. See also :
The G20’s Hidden Agenda of Devaluing the US Dollar to Inflate Asset Values
NYSE Runs Out of 1 Kg Gold Bars ?
Did the ECB Save COMEX from Gold Default?
Disclaimer – I am not a financial advisor. This is not an advice to buy, sell or hold any stocks or bonds or any precious metals.
- To those of you who still have difficulty accepting that 9/11 was an inside job using control (Thermite explosives) demolition, The Open Chemical Physics Journal,Volume 2 ,ISSN: 1874-4125 :
We have discovered distinctive red/gray chips in all the samples we have studied of the dust produced by the destruction of the World Trade Center. Examination of four of these samples, collected from separate sites, is reported in this paper. These red/gray chips show marked similarities in all four samples. One sample was collected by a Manhattan resident about ten minutes after the collapse of the second WTC Tower, two the next day, and a fourth about a week later. The properties of these chips were analyzed using optical microscopy, scanning electron microscopy (SEM), X-ray energy dispersive spectroscopy (XEDS), and differential scanning calorimetry (DSC). The red material contains grains approximately 100 nm across which are largely iron oxide, while aluminum is contained in tiny plate-like structures. Separation of components using methyl ethyl ketone demonstrated that elemental aluminum is present. The iron oxide and aluminum are intimately mixed in the red material. When ignited in a DSC device the chips exhibit large but narrow exotherms occurring at approximately 430 °C, far below the normal ignition temperature for conventional thermite. Numerous iron-rich spheres are clearly observed in the residue following the ignition of these peculiar red/gray chips. The red portion of these chips is found to be an unreacted thermitic material and highly energetic.
- Download entire file here. See also :
Medical Professionals for 9/11 Truth
Political Leaders for 9/11 Truth
- As mentioned in my previous posts, the world is heading towards a 1 world fascist government, a global police security state. Most people still do not see the obvious warning signs. Whoever controls money controls the world.
“Permit me to issue and control the money of a nation, and I care not who makes its laws.” – Amschel Mayer Rothschild 1773-1855
- The banksters who caused this financial depression is moving rapidly to create/control a 1 world central bank and 1 world currency. Ambrose Pritchard of the Telegraph UK reports :
The world is a step closer to a global currency, backed by a global central bank, running monetary policy for all humanity.
A single clause in Point 19 of the communiqué issued by the G20 leaders amounts to revolution in the global financial order. “We have agreed to support a general SDR allocation which will inject $250bn (£170bn) into the world economy and increase global liquidity,” it said. SDRs are Special Drawing Rights, a synthetic paper currency issued by the International Monetary Fund that has lain dormant for half a century.
In effect, the G20 leaders have activated the IMF’s power to create money and begin global “quantitative easing”. In doing so, they are putting a de facto world currency into play. It is outside the control of any sovereign body. Conspiracy theorists will love it. It has been a good summit for the IMF. Its fighting fund for crises is to be tripled overnight to $750bn. This is real money.
Dominique Strauss-Kahn, the managing director, said in February that the world was “already in Depression” and risked a slide into social disorder and military conflict unless political leaders resorted to massive stimulus. He has not won everything he wanted. The spending plan was fudged. While Gordon Brown talked of $5 trillion in global stimulus by 2010, this is mostly made up of packages already under way.
The Russians had hoped their idea to develop SDRs as a full reserve currency to challenge the dollar would make its way on to the agenda, but at least they got a foot in the door. There is now a world currency in waiting. In time, SDRs are likely evolve into a parking place for the foreign holdings of central banks, led by the People’s Bank of China. Beijing’s moves this week to offer $95bn in yuan currency swaps to developing economies show how fast China aims to break dollar dependence.
French President Nicolas Sarkozy said the summit had achieved more than he ever thought possible, and praised Gordon Brown for pursuing the collective interest as host rather than defending “Anglo-Saxon” interests. This has a double-edged ring, for it suggests that Mr Brown may have traded pockets of the British financial industry to satisfy Franco-German demands. The creation of a Financial Stability Board looks like the first step towards a global financial regulator. The devil is in the details.
- The Illuminati global ruling elite have thought this through quite thoroughly. The world, or at least the G20, have moved a step closer to ’666′ . See also :
The End of Money -> 666 !
New World Order is Emerging – One World Government
Council on Foreign Relations (CFR) Unveils Global Governance Agenda
Collapse of America to Lead to New World Order?
UN & IMF Back Agenda For Global Financial Dictatorship
Depression, World Currency and Digital Gold
A World Currency Moves Closer After Geithner’s Slip
Single Global Currency
China calls for New Reserve Currency – 1 World Currency ‘666′ Just Around the Corner
China Backs Russia’s Call for New World Reserve Currency!
London G20 Summit: Last Chance Before Global Geopolitical Dislocation – 1 World Central Bank & 1 World Currency
Towards A One World Currency, One World Central Bank & One World Government !
Lindsey Williams – Global Bankruptcies and One World Government
Bob Chapman – Economic And Financial Systems Deliberately Destabilized