Monday, April 14, 2014

Dollar coming off the Top- Hello Yuan

Hey Ben Got Yuan? I don't think Ben likes that!
Over the weekend (4/13/14) was the news coming out of China that several Central Banks have invested in the yuan and several others are preparing to do so, putting the mainland currency on the path to reserve status even before full convertibility.

The US dollar is still the world's most widely held reserve currency, accounting for nearly 33 percent of global foreign exchange holdings at the end of last year, according to IMF data. That ratio has been declining since 2000 when 55 percent of the world's reserves were denominated in US dollars.

The 23 central banks known to have yuan holdings, 11 are from Asian markets with close trade links with mainland China: Australia, Hong Kong, Indonesia, Japan, South Korea, Macau, Malaysia, Nepal, Pakistan, Singapore and Thailand, according to public records from either central banks' own statements or central bankers' interviews with the press.

The rest are five from Europe - Austria, Belarus, Norway, France and Lithuania - and seven from South America or Africa - Bolivia, Chile, Ghana, Kenya, Nigeria, South Africa and Tanzania.

The yuan has effectively already become a de facto reserve currency because so many central banks have already invested in it.

Full Article @ South China Morning Post

China has stopped buying U.S. Treasuries along with other countries and with that China and Japan are purchasing hard assets the country has left. China’s Shuanghui International bought Smithfield for $4.7 billion to feed a growing Chinese appetite for U.S. pork. Smithfield founded in 1936 as a single meat-packing plant in Smithfield, Virginia. Smithfield Foods is the largest pork producer and processor in the world. It has facilities in 26 U.S. states and it employs tens of thousands of Americans. It directly owns 460 farms and has contracts with approximately 2,100 others. But now a Chinese company has bought it and that means that the Chinese will now be the most important employer in dozens of rural communities all over America.

The Chinese are on a real estate buying spree all over America. In fact, in some cases, large chunks of land are actually being given to them. Yes, you read that correctly. China is on the way to becoming the dominant land owner in the entire country, and that is starting to alarm a lot of people.  Sen Harry Reid and son are involved with a Chinese energy giant ENN Energy Group, to build a $5 billion solar farm and panel manufacturing plant in the southern Nevada desert.  Yep cowboy, The Bundy Ranch!  Go to the story, click ENN jpg.

In the vid is Stacy Herbert and Max Keiser of part one of episode 587 "the dollar at the bottom of the shampoo bottle."

Channel "RT TV"


No comments:

Post a Comment