10th Decmber, 2014
Archive for the ‘Currency Wars’ Category
Posted by seumasach on December 15, 2014
Posted by seumasach on November 11, 2014
9th November, 2014
China should accumulate 8,500 tonnes in official gold reserves, more than the US, according to Song Xin, President of the China Gold Association, General Manager of the China National Gold Group Corporation and Party Secretary. He wrote this in an opinion editorial published on Sina Finance July 30, 2014. Gold is money par excellence in all circumstances and will help support the renminbi to become an international currency as “gold forms the very material basis for modern fiat currencies”, Song notes. In the short term the Chinese will not back the renminbi with gold (establish a fixed renminbi price for gold), but support it with gold so it has sufficient credibility for the world to accept it as a trade and reserve currency.
Posted by seumasach on November 8, 2014
Never mind the hype about the US economy! Is the dollar really rising “as the remaining doubts about the sustainability of the U.S. economy evaporates”? That is just funny, really hilarious. Who gains from the strengthening dollar? The same people who gain from the falling gold price. China is the beneficiary. As China collects it debt from buying up gold at rock-bottom prices which will later surge in value, it also uses its vast accumulation of treasury bonds to buy up real assets such as real and industrial estate in the USA. Once China completes its treasury bond and gold purchases we will see the real ending of QE and a reset of the global financial system
..as Fed, ECB go separate ways
25th September, 2014
Greenback at two-year high, as growing confidence in U.S. recovery meets expectations of new emergency measures to rescue Eurozone.
Posted by seumasach on October 31, 2014
Posted by seumasach on July 31, 2014
Russia And India Begin Negotations To Use National Currencies In Settlements, Bypassing Dollar
31st July, 2014
Over the past 6 months, there has been much talk about the strategic proximity between Russia and China, made even more proximal following the “holy grail” gas deal announced in May which would not have happened on such an accelerated time frame had it not been for US escalation in Ukraine. But little has been said about that other just as crucial for the “new BRIC world order” relationship, that between Russia and India. That is about to change when yesterday the Russian central bank announced that having been increasingly shunned by the west, Russia discussed cooperation with Reserve Bank of India Executive Director Shrikant Padmanabhan. The punchline: India agreed to create a task group to work out a mechanism for using national currencies in settlements. And so another major bilateral arrangement is set up that completely bypasses the dollar.
Posted by seumasach on June 13, 2014
France’s Noyer Says BNP May Prompt Shift Away From Dollar
11th June, 2014
Bank of France Governor Christian Noyer said the U.S. investigation into BNP Paribas SA (BNP)’s dealings with sanctioned nations may encourage companies to stop using dollars in international transactions.
Posted by seumasach on June 9, 2014
4th June, 2014
After more than six decades of dictating development policy in much of the emerging world, the Western-led International Monetary Fund and World Bank may soon have some competition.
The BRICS nations — Brazil, Russia, India, China and South Africa — are reportedly close to finalizing their long-awaited development bank and currency reserve, each valued at $100 billion, in what has been billed as a historic challenge by the world’s emerging economies to a global financial architecture that has been dominated by the U.S. and Western Europe since its post–World War II inception.
Posted by seumasach on May 25, 2014
25th May, 2014
NEW YORK – Russia over the last year has sold off one-third of its U.S. Treasury holdings, according to records released by the Treasury Department and the Federal Reserve Board.
Posted by seumasach on May 6, 2014
2nd May, 2014
Frankfurt is joining London, Singapore and Hong Kong in the fast-moving market for bonds denominated in the Chinese currency, the renminbi. Germany’s KfW development bank announced it was issuing a two-year bond with the volume of 1 billion renminbi at the Frankfurt Stock Exchange.
Posted by seumasach on May 4, 2014
30th December, 2013
A new development bank that will complement – and compete with – the World Bank and the IMF is on the fast track. Here’s a primer on why the BRICS Bank is a pretty sound idea.
Posted by seumasach on April 30, 2014
“Today’s markets would react negatively to any major expansion of central bank Credit from the likes of Brazil, Russia, Turkey, India, Indonesia or South Africa. This market dynamic provides a huge competitive advantage to developed central banks, markets and economies. Increasingly, this competitive advantage along with the destabilizing global role of Federal Reserve “money” are sources of heightened global animosities. More than ever before, EM economies see developed “money” printing as a force for rising inequality”.
In other words, the ability of Washington and London to “quantitatively ease” is an imperial privilege. However, there is one crucial distinction between this and past forms of imperial exploitation: QE is also impoverishing, through inflation, the whole US and UK populations, outside the 0.01 % elite.
27th April, 2014
Over the years, money and the “Moneyness” of Credit have remained focal points of my Macro Credit Analytical Framework. From my perspective, money is fundamentally defined by perceptions. “Money” is a financial claim perceived as safe and a liquid store of nominal value. Understandably, this definition is troubling to monetary purists. Yet in the spirit of Ludwig von Mises and his notion of broad money/“fiduciary media,” my view of contemporary “money” is focused on an array of financial claims and their functionality.