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RBS says CNY has the potential to become global reserve currency
The FINANCIAL — The Royal Bank of Scotland Plc (RBS) believes Chinese Renminbi (CNY) can potentially become a world reserve currency comparable to the USD.
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This is one of the findings in the newly released research report ‘CNH Market Guide: A precursor to internationalisation of the Chinese Renminbi’, the most comprehensive research yet to look at the offshore CNY market in Hong Kong, also known as the CNH market.
The combination of growth in the offshore CNY market and the sheer size of the Chinese economy will support the Chinese government’s ambition to internationalise its currency, according to RBS.
“China now holds 30% of the world’s USD9trn foreign reserves. The other 70% which does not belong to the People’s Republic of China (PBOC) could potentially be held in CNY. As China’s share Read more…
The Causes of Rising Food Prices
Food prices are rising quickly around the world. Part of the problem is weather. The winter wheat crop in China has been poor. Australia has suffered floods, while Russia has undergone a drought. The earthquake and tsunami in Japan, no doubt, will hammer the very intensive agricultural production of the limited arable land on that archipelago. Weather-related agricultural problems, however, balance out fairly quickly. Mythical “global warming” aside, weather has ups and downs, and farmers, who are smart folks, take that into account. The Soviet Union, whose vassal state the Ukraine was once one of the best farmlands on earth, never managed to feed its people well, because a communist-controlled economy destroys Read more…
Currency Meltdown Coming
By Greg Hunter’s USAWatchdog.com
The situation in Japan is getting worse, not better. There are shortages in food, fuel and warm dry shelter. To make matters exponentially worse, nuclear power plants there continue to burn out of control and emit high levels of radiation. Japan is a stark reminder of how fast a modern technologically advanced society can be brought to its knees by an unforeseen calamity.
On the other side of the Pacific, the devastating pictures from that island nation are taking the attention away from our own, much more predictable, calamity coming from a tsunami of debt. As the U.S. and other world governments continue to print money to keep the banks and system solvent, a ball of debt is growing. It is on course to Read more…
Tsunami of Inflation to Hit U.S. with Japan Crisis
The earthquake, tsunami, and nuclear disaster that hit Japan this past week and the destruction that it caused is nothing compared to the tsunami of inflation that will soon hit the U.S. as a result of this crisis. A tsunami of inflation in the U.S. will mean a complete collapse of our monetary system, which could lead to millions of deaths due to a lack of food and heat. 44 million Americans are now dependent on food stamps, but when the U.S. dollar becomes worthless as a result of hyperinflation, the government will no longer have the power to support these Americans and many of them will simply starve to death.
Japan’s citizens were smart enough to save up $885.9 billion in U.S. treasuries to spend in a situation like it finds itself in today. The U.S. has no such savings and is the world’s largest Read more…
Central Banks Dump Treasuries As Dollar’s Reserve Currency Status Fades
Official inflows vs total reserve accumulation – Nomura
Demand for US assets, especially Treasuries, has been waning since the beginning of 2011, with central banks around the world increasing reserve accumulation while dumping the greenback. More signs that the dollar is dead as the world’s only reserve currency?
Nomura’s FX research and strategy team analyzed the latest numbers from the Treasury’s International Capital System. “It looks like the trend of weak central bank demand for USD assets is persisting into 2011 (after a very weak Q4),” wrote Nomura’s global head of G10 FX strategy, Jens Nordvig in an email. From November to January, central banks reduced their US dollar holdings by $9 billion; “given a fairly strong trend in global reserve accumulation Read more…
The Rule of Gold after the Financial Collapse
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“You can own silver and gold but never any fiat currency issued by someone else”
Peter Cajander
 In a secular world, the operative “Golden Rule” is “He Who Has the Gold Makes the Rules”. The condition of the global financial banking system is untenable. The aggregate amount of debt worldwide is anyone’s guess. The introduction of derivatives and counter claims pushes the chain of obligations into the unknown. All that is left is for central banks to create mountains of uninterrupted counterfeit money to roll over and delay the inevitable. The IMF chart of World Currency Reserve is a skyrocket line to oblivion. It does not reflect a healthy stockpile of treasure, but certainly manifests a new debt machine running to infinity. The Bullion Vault explains this reality in the following manner.
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Richard Lehmann: China May Corner Gold Market
China has likely begun a campaign to convert its dollars to gold that could end up with the nation cornering the gold market, says Richard Lehmann, editor of the Forbes/Lehmann Income Security Investor newsletter.
China is alarmed about potential weakness for the dollar, he says in an interview with Steve Forbes.
So “I’m concerned that basically China is probably already on a program to diversify the dollar into gold. I don’t think they want any other fiat currencies or want to minimize that amount.”
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If China buys enough gold, at some point it can simply dictate the price, Lehmann says. And it has the means to do so, given that Chinese currency reserves total almost $3 trillion, and the world’s gold supply is now worth about $5 trillion, he says.
So China could “in one stroke, basically take control of the gold market and tie the dollar to gold so that effectively, if every six months the dollar deteriorates 5 percent, they can just upgrade the stated price at which they wanted to buy gold and thereby upgrade and up-value their gold reserves, but also keep the dollar in check.”
With plenty of other investors buying gold too, many experts expect it to continue rising. Richard Russell, author of the Dow Theory newsletter, says in a commentary obtained by King World News that the precious metal may reach $6,000 an ounce.
Soros: Communist Chinese Model Of Order May Become “The Envy Of The World”
Billionaire investor George Soros has once again cited China’s dictatorship as the model for the rest of the world in a speech at an elite gathering in Europe.
Soros told the exclusive Travellers Club, that “China’s model of state capitalism, in which the interests of the individual are subordinated to those of the government, poses a danger if its example becomes“the envy of the world.”
“Perfect order and global governance are not realistic expectations.” Read more…
Dollar dies, States rebel and FLEE to gold and silver standard !!!
China Takes Giant Step Towards Making the Yuan the World’s Reserve Currency
For years, I’ve been writing about the long-term decline of the Dollar, and the rise of the Chinese Yuan … and it’s potential to become the world’s next reserve currency.
As I pointed out in 2007, many countries have started moving out of the Dollar as the basis for international trade settlements, including:
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Venezuela and 12 other Latin American countries as well as Cuba
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Many other countries
In 2008, I wrote: Read more…
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