- This is another death knell for the USD. It is becoming increasingly obvious that the countries around the world are preparing for life without the USD. However, when the USD dies it will signal the end of all fiat currencies. Do not for a moment think that it will only affect America. All major currencies: Euro, UKP, Yen … are worthless and are suffering the same sickness as the USD. When these die, it will drag the rest of the lesser fiat currencies down too. Hyperinflation will kick in worldwide. This global monetary crisis will result in economic and financial meltdown.
- Global famine will get alot worse. When the sheeple realize that their fiat currencies are being debased constantly and food prices keep rising, they will start to accumulate more food for survival. This will drive up demand artificially. Instead of buying 1 week’s worth of food, the sheeple will dump their fiat currencies for more food: 2 weeks, 3 weeks… If they don’t exchange their fast depreciating currencies for something of value, they will starve to death. Artificial, ie. currency debasement induced, shortage will come about! Please prepare for this coming global economic, financial and monetary tsunami! Got gold yet???
The Times of India: Bank of India becomes first to offer trade settlement in yuan
BEIJING: Bank of India has become the first Indian bank to offer trade settlement facility between the rupee and the Chinese RMB from Hong Kong. This follows intense persuasion by the China Banking Regulatory Commission, which is trying to gain acceptance of the RMB as an international currency.
“We are the first Indian bank to offer real-time settlement facility in RMB to Indian exporters and importers. It will be save a lot of time because settlement in US dollars usually takes three working days,” Arun Kumar Arora, BoI’s chief executive in Hong Kong, said during a recent visit to meeting regulators in Beijing.
Indian buyers are at present making payments in US dollars, and they often have to convert rupee into the US currency for the purpose. The US dollars will no more be the intermediary currency as the BOI is offering direct settlement between the rupee and the Chinese money.
Chinese exporters want their money in the local currency, which is regarded as more stable compared to the US dollar. They are also in a position to have their way because Indian buyers do not have an alternative source of low-cost goods, sources said.
The process has been facilitated by a recent memorandum of understanding signed between the Reserve Bank of India and the CBRC to enhance banking relationship between the two giant neighbors.
BoI has opened a RMB with the Bank of China, which will provide real time settlement with buyers and sellers across all provinces of China. The move is part of a campaign by the Hong Kong Monetary Authority, which has persuaded 100 foreign banks to enter into arrangements with Chinese banks for trade settlement in RMB.
“We will sell RMB against the US dollar, and companies can buy as much as they want provided they have the right papers. For individuals, the limit of 20,000 RMB a day,” Arora said. He expects settlements for an amount ranging between 200 million and 300 million in the first year.
Hong Kong is the only offshore market for the Chinese currency. The past year saw $400 billion of Chinese yuan being traded in Hong Kong against other currencies.
BoI is also awaiting permission from Chinese regulators to establish a branch in Beijing, where it has been running a representative office for the past four years. It has recently signed an MoU with the CBRC on converting the representative office into a branch. The bank has been running a branch in the boom city of Shenzhen for the past four years. The Shenzhen branch will also be involved in providing additional support for the trade settlement business.
- Inflation is raging throughout the world and yet Ben Bernanke says there is no inflation. Bernanke said the FedRes’ QE is not the cause. Yeah right, pigs can fly! With the rising oil price it is going to get alot worse. QE2.0 will not work. Rising oil prices is a tax on everyone. All the stimulus money printing is failing. Of course, Bernanke will come out with QE3.0 even more money printing to help the economy. If wealth and economic growth can be generated via money printing, the FedRes should go the whole hog! Create, out of thin air, US$1million for each man, woman, child and their dog.
Mises Institute: Inflation Is Here, and It Is Going to Get Worse
As compared to September last year, the growth momentum of price indexes shows visible strengthening. Year on year, the rate of growth of the consumer price index (CPI) rose to 1.6 percent in January from 1.5 percent in the month before and 1.1 percent in September last year. Also the growth momentum of the consumer price index less food and energy has strengthened in recent months. The yearly rate of growth climbed to 1 percent from 0.8 percent in December and 0.6 percent in October.
Economists blamed the increase in price indexes on the higher prices of apparel, airline fares, and shelter costs. Note that attempting to explain general increases in prices in terms of the components of the price index is not an explanation, because it doesn’t address the key causes.
Is Inflation about Price Rises?
The fundamental problem here is a failure to define the problem properly. The essence of inflation is not a general rise in prices as such but an increase in the supply of money, which in turns sets in motion a general increase in the prices of goods and services. As Mises explained in his essay “Inflation: An Unworkable Fiscal Policy,”
Inflation, as this term was always used everywhere and especially in this country, means increasing the quantity of money and bank notes in circulation and the quantity of bank deposits subject to check. But people today use the term “inflation” to refer to the phenomenon that is an inevitable consequence of inflation, that is, the tendency of all prices and wage rates to rise. The result of this deplorable confusion is that there is no term left to signify the cause of this rise in prices and wages. There is no longer any word available to signify the phenomenon that has been, up to now, called inflation. …
As you cannot talk about something that has no name, you cannot fight it. Those who pretend to fight inflation are in fact only fighting what is the inevitable consequence of inflation, rising prices. Their ventures are doomed to failure because they do not attack the root of the evil. They try to keep prices low while firmly committed to a policy of increasing the quantity of money that must necessarily make them soar. As long as this terminological confusion is not entirely wiped out, there cannot be any question of stopping inflation.
Now a price of a good is the amount of money asked for the good. Hence for a given amount of goods the more money is in the economy, the higher the amount of money per good spent is going to be, all other things being equal. This means that for a given amount of goods, an increase in the money supply, i.e., the amount of dollars, all other things being equal, must lead to more dollars spent per unit of a good, i.e., a general increase in prices of goods.
When inflation is seen as a general rise in prices, then anything that contributes to price increases is called inflationary. It is no longer the central bank and fractional-reserve banking that are the sources of inflation, but rather various other causes. In this framework, not only does the central bank have nothing to do with inflation, but, on the contrary, the bank is regarded as an inflation fighter.
Thus, a fall in unemployment or a rise in economic activity is seen as a potential inflationary trigger which therefore must be restrained by central-bank policies. Some other triggers, such as rises in commodity prices or workers’ wages, are also regarded as potential threats and therefore must always be under the watchful eye of the central bank.
We suggest the Fed’s massive pumping during 2008 to September 2009, and the consequent increase in the growth momentum of the money supply (AMS), is the key factor behind the present strengthening in price inflation. Observe that the yearly rate of growth of Fed’s balance sheet stood at 153 percent in December 2008 whilst the yearly rate of growth of AMS jumped to 14.3 percent in August 2009.
… to continue reading click here!
- The Illuminist controls the CIA, Mossad, MI5/6 …etc. Ie. At the top echelons are Luciferians. Americans are not for any of these wars. It is the shadow Illuminist Anglo-American-Zionist government which is screwing us all !