Skip to comments.Beijing, Seoul agree to direct trade in national currencies
Posted on 07/05/2014 3:44:33 AM PDT by SkyPilot
China designated a clearing bank in Seoul for yuan transactions in South Korea on Friday, coinciding with a visit by President Xi Jinping, as Beijing promotes greater use of its currency overseas, AFP reports. Read more: http://voiceofrussia.com/news/2014_07_04/Beijing-Seoul-agree-to-direct-trade-in-national-currencies-4477/
China's central bank has authorised the Bank of Communications, the country's fifth largest lender, to undertake yuan clearing business in the South Korean capital, the People's Bank of China (PBoC) said in a statement.
The announcement came as Chinese President Xi Jinping wrapped up a state visit to South Korea on Friday. China is seeking to make the yuan - also known as the renminbi - used more internationally in keeping with the country's status as the world's second biggest economy behind the United States. Read more: http://voiceofrussia.com/news/2014_07_04/Beijing-Seoul-agree-to-direct-trade-in-national-currencies-4477/
(Excerpt) Read more at voiceofrussia.com ...
The US Dollar is finished as the world's Reserve Currency. That status is the only reason we have been able to print money and spend like maniacs. That is now ending - - fast.
Our economy, our military, and our leadership forged the latter half of the 20th Century and the first decade of the 21st.
Obama has achieved what hard core Communists and leftists could only dream of.
What is next?
In the short term, we don't know.
By 2015, I believe we will have a Stock Market crash.
A huge one. I hope you are not planning on living on your IRA or 401K.
We will eventually be forced into some sort of "North American Union" or whatever they wish to call it. Our borders will mean nothing (if they don't already).
The rise of the Anti-christ system is upon us.
Look at this.
Not going to be the worlds reserve currency soon, thanks to Obama and the Progressives.
USG printing a trillion dollars a year has consequences.
Noone really wants to use the dollar; it's just that there has been no reasonable alternative. As soon as people settle on an alternative (which the BRICS intend to supply) the run from the dollar will be the biggest financial storm the world has ever seen.
The only thing that has been keeping hyperinflation due to Fed printing at bay is that everyone still needs to use dollars. Produce an alternative that is functional and even slightly more trustworthy than the Fed-manipulated dollar and the dollar goes up in flames.
“By 2015, I believe we will have a Stock Market crash.”
The elites will hold off the crash until after the 2014 elections.
When the dollar collapses, hyperinflation will ensue. The experience of the Weimar Republic in Germany and Argentina in more recent years suggests it will come on quickly, triggered by some event. Perhaps China will tell Wal-Mart it won’t take payments in US dollars, perhaps the government will admit the gold in Fort Knox is long gone, perhaps Saudi Arabia will announce it will no longer accept dollars in payment for oil, perhaps Soros will trigger a run on the dollar in collusion with foreign nations, perhaps Iran will take out a US carrier in the Persian Gulf with no military response from Obama, perhaps a US city will be blown up by a terrorist nuke. Whatever the event, prices will immediately begin taking off. There will be runs on banks as people demand cash instead of virtual currency. The banking system and stock market will crash. It will be a prime opportunity to declare a state of emergency, disband Congress for the duration of the crisis, and assume dictatorial powers.
Or maybe China is spanking N. Korea. Have you ever heard of currency markets?
Not hyperbolic enough, eh?
True. But the Billionaire investors are already pulling out of the Market.
The headlines read this:
Based on what? US economic growth? Job creation? Work force participation? Healthy trade? Manufacturing increase?
No. Because NONE of that is occurring.
The Dow right now is built on fictitious Fed pumping and the fact that with rates so low on bonds and interest people feel they have no other place to put their money.
There are 77 million Baby Boomers, with 10,000 retiring each and every day. Many of them have their entire hopes and dreams invested in living off their stocks.
But there are fewer and fewer young and employed workers to fuel the Ponzi scheme.
When the US Dollar is removed as the world's reserve currency, look out.
It is going to be very, very, very painful.
You can call it "hyperbolic" all you want. That is whistling through the graveyard.
The Chinese, the Saudis, and Russians are most assuradly removing the US Dollar as their reserve.
As far as stocks go on their own, they are priced 53% higher than their 10-year average.
That is an inner tube that is being pumped up at an exponential rate.
It will go off.
And it will be noisy and messy.
We've done a lot of work on the ruble-yuan swap deal in order to facilitate trade financing. I have a meeting next week in Beijing, she said casually and then dropped the bomb: We are discussing with China and our BRICS parters the establishment of a system of multilateral swaps that will allow to transfer resources to one or another country, if needed. A part of the currency reserves can be directed to [the new system]. (Prime news agency) It seems that Kremlin chose the all-in-one approach for establishing its anti-dollar alliance. Currency swaps between the BRICS central banks will facilitate trade financing while completely bypassing the dollar. At the same time, the new system will also act as a de facto replacement of the IMF, because it will allow the members of the alliance to direct resources to finance the weaker countries. As an important bonus, derived from this quasi-IMF system, the BRICS will use a part (most likely the dollar part) of their currency reserves to support it, thus drastically reducing the amount of dollar-based instruments bought by some of the biggest foreign creditors of the US.
Notice that North Korea is totally quiet about this visit.
(When the Chi-Comms tell their puppet state to shut-up, they shut-up.)
So you’re holding your money in Yuan, Rubles or Riyals?
Not even we anticipated this particular "unintended consequence" as a result of the US multi-billion dollar fine on BNP (which France took very much to heart). Moments ago, in a lengthy interview given to French magazine Investir, none other than the governor of the French National Bank Christian Noyer and member of the ECB's governing board, said this stunner at the very end, via Bloomberg:
NOYER: BNP CASE WILL ENCOURAGE DIVERSIFICATION FROM DOLLAR
They are devaluing the dollar so fast that it is close to meaningless already
George Soros? How much longer can that old Nazi collaborator carry on living? I know the day is coming when the dollar will no longer be the world’s currency, but it always seems many years into the future.
My money is in Jesus Christ.
Basically I think all this chatter about dollar dumping went from fantasy to reality was when they started talking about using the international clearing system for transactions against the Russians and anyone who even thought about buying Iranian oil. Or basically allowing the IRS type American government worldwide power, and that is not going to fly these days.
And that bank don’t run!
I have one question. When you say "the dollar is dead" do you mean that it's dead as the only vehicle for global financial transactions? That will cause higher interest rates and inflation. But won't the dollar still be the medium of exchange in the US? Can't I safeguard against the financial future if I don't have debt I can't pay off and I don't need to purchase anything except the day-to-day necessities?
It's incomprehensible how the dollar has been destroyed by both GWB and Obama. Longterm, letting the recession play out and let the "too big to fail" entities fail would've caused far less damage.
Correct me where I'm wrong, please.