Breaking News!! China Is Running Out Of Money

From Forbes:

China Is Running Out Of Money. Why has the economy so far failed to respond? There are various reasons, but perhaps the most important is that the country is running out of money for stimulus.

At first glance, that proposition seems preposterous. After all, the People’s Bank of China, the central bank, held $3.24 trillion of foreign currency reserves at the end of the first half of this […]

The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap

When the US Dollar is ultimately dethroned as the world’s reserve currency (and finally gets rid of all those ridiculous three letter post-Keynesian economic “theories”) nobody will have seen it coming. Well, nobody except for the following headlines: ““World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade“, “China, Russia Drop Dollar In Bilateral Trade“, “China And Iran To Bypass Dollar, Plan Oil Barter […]

The We-Fixed-Nothing Chickens Are Coming Home to Roost – Charles Hugh Smith

by Charles Hugh Smith

The We-Fixed-Nothing Chickens Are Coming Home to Roost   (June 4, 2012)  When the real problems are masked with fake “solutions,” the chickens eventually come home to roost, and we wake up to the reality that the fake “solutions” have only made things much worse.

The reality that the global Status Quo has fixed absolutely nothing in four years is finally coming to roost in the global economy. Though […]

First Time Ever! The Dragon is Rising: Citgroup offering YUAN BANK ACCOUNTS in London, Say hello to the Dragon Empire!

LONDON (Dow Jones)–Citigroup (C) said Wednesday that it is launching yuan-denominated bank accounts in the U.K., providing further evidence that banks are stepping up their efforts to help London gain traction as a key offshore yuan-trading center.

Citigroup said its new product offering will make it possible for clients to make and collect payments in yuan–or renminbi–in the U.K. and to receive trade financing, foreign-exchange services and hedging solutions geared […]

Will China Make the Yuan a Gold-Backed Currency?

by WashingtonsBlog

If China Backs Its Currency with Gold, It Could Have Profound Effects for Investors … and Consumers

Larry Edelson – – writes today:

I know for a fact that Beijing wants its yuan to eventually become a gold-backed currency, much like the Swiss franc was originally. Backing the yuan with some gold will certainly help it become a major international currency.

Edelson is a financial adviser who travels frequently to […]

CNY vs USD: where next?

2012-APR-23

On Saturday April 14 the People’s Bank of China expanded the range that it would allow the renminbi to rise or fall each day. Previously the currency was only allowed to rise or fall by 0.5% from a determined midpoint, but now that limit is being increased to 1%. Many have long felt that the currency was undervalued and that this could be a first step in a upward […]

Robert Zoellick calls for Brics bank

telegraph.co.uk

Robert Zoellick said the World Bank would support a Brics bank, an idea formally proposed at a summit in New Delhi last week. The World Bank has previously backed the creation of the Islamic Development Bank and the Opec Fund to build financing and analytical capabilities.

If Brics nations “decide they want another financing vehicle – fine. Let’s figure out how to work with it … I’m enough of […]

More Bad News for the Dollar

6 MARCH 2012

Greg Hunter’s USAWatchdog.Com

Buying gasoline these days has turned into a horror show.  I filled up my car and handed the attendant a $50 bill to turn the pump on.  I had a little more than a quarter of a tank.  So, I thought that would do the trick and peg the needle past full with change to spare.  I was wrong.  I stood in shock as the […]

Albert Edwards: JPY devaluation exacerbates risk of China hard landing, drags them into currency war

“What do people think will happen if another recession strides into sight any time soon? We are a hair’s breadth or, more exactly, one recession away from a market panic on outright deflation — a panic that will send the central banks into a printing frenzy that will make their balance sheet expansion so far seem like a warm-up act for the main show.” Albert Edwards in his latest note, taking […]