In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘declining dollar’

China Spearheads Dollar Dethroning

Posted by smeddum on April 27, 2009


Jim Willie CB                        April 23, 2009

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Jim Willie CB is the editor of the “HAT TRICK LETTER”

Use the above link to subscribe to the paid research reports, which include coverage of several smallcap companies positioned to rise during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.

In a series of maneuvers, Chinese officials have revealed their strategy implementation in a very broad set of steps. Beijing leaders plan to establish the yuan currency as a global reserve currency. The process will be made more complete after issuance of a large volume of Chinese Govt debt securities, soon in coming. The number of policy actions is impressive. While the USGovt is busy stepping backwards with FASB rules enabling false bank accounting, gearing up Treasury programs to direct colossal elite welfare / confiscation to failed banks responsible for the crisis, covering up Wall Street fraud and regulatory lapses and debt rating agency collusion, and ordering pork like the $9 billion high speed train from Disneyland to Las Vegas, the Chinese are making important meaningful critical strides. Within a year, the Chinese will have established the yuan currency as a legitimate alternative to the USDollar for global trade, and later to some extent for global banking. The Chinese Govt has ordered monetary policy changes that have boosted their money supply by 25.5% over the last twelve months, with a giant stimulus program and relaxed bank credit rules. Since new maneuvers are being funded by incremental new surplus funds, they are exhibiting their financial power without upsetting their vast reserves accounts. The lost in the USCongress might talk about ‘Pay-Go’ measures to pay for programs as we go forward, but China does it in actual terms. Read the rest of this entry »

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Currency traders eye China for clues

Posted by smeddum on April 24, 2009


By William L. Watts,
Last update: 4:30 a.m. EDT April 24, 2009
LONDON (MarketWatch) – While foreign exchange is unlikely to be the subject of bold public pronouncements when the world’s most powerful finance ministers and central bankers meet Friday in Washington, China’s call for the replacement of the U.S. dollar as the world’s leading reserve currency is likely to be a hot topic behind closed doors, currency strategists said.
Namely, foreign-exchange traders will be looking for any clues to discussions with Chinese officials as policy makers around the world attempt to piece together the implications of remarks by China central bank governor Zhou Xiauchuan in March for the eventual replacement of the U.S. dollar as the world’s main currency with special drawing rights, the quasi-currency issued by the International Monetary fund. Read the rest of this entry »

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US emerging as failed State

Posted by smeddum on January 3, 2009


False Deflation Diagnosis and Gold Bullish Crossover Signal

Jan 02, 2009 – 05:25 AM

By: Jim_Willie_CB    Market Oracle


Diamond Rated - Best Financial Markets Analysis ArticleOne of the most bothersome questions from 2005 to 2007 used to be whether the Untied States would ultimately submit to inflation or deflation. This is actually the wrong question. Many analysts in my view are incorrect in their conclusion that the US suffers from a powerful deflation episode, since they endorse the wrong definition, confuse effect with cause (as usual), do not properly monitor the money flow, and then draw improper conclusions from prices. They suffer from a type of Keynesian Tunnel Vision. They are confused, and fail to adapt certain key measures after the financial sector highjacked the entire national system in the last two decades.  Read the rest of this entry »

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Gold Backwardation Forward Thinking

Posted by smeddum on December 24, 2008

Market oracle

Dec 20, 2008 –

By: Professor_Emeritus

In an earlier article Backward Thinking on Backwardation I explained that backwardation in gold is the flipside of the phenomenon of a drastic contraction of world trade and employment. This brings out the danger in denying the fact of gold backwardation or to belittle its significance, as most observers seem to be doing. I am reminded of the saying of the Swiss educator F.W. Foerster: “if you don’t use your eyes for seeing, later you will use them for weeping.” In this article I want to enumerate the reasons why I believe that permanent backwardation in gold would bring about the descent of our civilization into lawlessness similar to that following the collapse of the Western Roman Empire. Read the rest of this entry »

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Dollar’s Death Decisive Moment

Posted by smeddum on December 18, 2008

Dollar No Longer Haven After Fed Moves Rate Near Zero (Update2) 

I did not expect the dollar rally, and it has proved to be both short term and ultimately absurd, like the final movements
of a newly dead body.

By Kim-Mai Cutler and Bo Nielsen

Dec. 17 (Bloomberg) — The world’s biggest currency-trading firms say the dollar’s appeal as a haven amid the financial crisis all but evaporated. Read the rest of this entry »

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China: Seize The Day!

Posted by smeddum on December 9, 2008

China: Carpe Diem!
Axel Merk, December 9, 2008 Merkfund

China has a unique opportunity and responsibility to shape not only its own future, but also that of the global economy. While China is by no means responsible for the plight the world faces, it has played an important role in allowing global imbalances to be built. If China decides to help prop up the world economic model that got us into trouble in the first place, we may face the same challenges again a few years down the road. Except then, China may not have $2 trillion in reserves to rescue its economy, and could face severe challenges. China will ultimately act in its own best interest, but prudent she must be. The time for China to act is now. Read the rest of this entry »

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Gold at root of new global crisis

Posted by smeddum on December 6, 2008

by Antal E. Fekete,
Gold Standard University Live
December 5, 2008


December 2, 2008, was a landmark in the saga of the collapsing international monetary system, yet it did not deserve to be reported in the press: gold went to backwardation for the first time ever in history. The facts are as follows: on December 2nd, at the Comex in New York, December gold futures (last delivery: December 31) were quoted at 1.98% discount to spot, while February gold futures (last delivery: February 27, 2009) were quoted at 0.14% discount to spot. (All percentages annualized.) The condition got worse on December 3rd, when the corresponding figures were 2% and 0.29%. This means that the gold basis has turned negative, and the condition of backwardation persisted for at least 48 hours. I am writing this in the wee hours of December 4th, when trading of gold futures has not yet started in New York.

According to the December 3rd Comex delivery report, there are 11,759 notices to take delivery. This represents 1.1759 million ounces of gold, while the Comex-approved warehouses hold 2.9 million ounces. Thus 40% of the total amount will have to be delivered by December 31st. Since not all the gold in the warehouses is available for delivery, Comex supply of gold falls far short of the demand at present rates. Futures markets in gold are breaking down. Paper gold is progressively being discredited. Read the rest of this entry »

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Report: Emirates calls on GCC countries to depeg currencies from US dollar to curb inflation

Posted by seumasach on July 8, 2008


6th July, 2008

ABU DHABI, United Arab Emirates: A newspaper in the United Arab Emirates says the tiny Gulf state’s government is lobbying neighboring countries to depeg their currencies from the U.S. dollar to curb inflation.

Read the rest of this entry »

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