Fairly soon (within next two years?), when yuan swap lines are in place at all major currency trading centers, China will announce that all Government restrictions on the on/offshore ownership of yuan (and Chinese government bonds) are removed.
At that point the US t-bond market will implode, as the yuan takes over from the USD as the world’s reserve currency.
Switzerland Will Join Race to Be Trading Hub for China’s Yuan
“It is in Swiss interest to have a renminbi hub in the center of Europe,” Economy Minister Johann Schneider-Ammann said in Beijing yesterday after signing a free trade agreement with Chinese Commerce Minister Gao Hucheng. While no official talks have taken place, Schneider-Ammann said he hopes the idea will become “more serious” in the coming weeks or months.
Toronto Reviews Bid to Become Yuan Currency Trading Hub
Canada’s banks are considering a plan to make Toronto the first North American trading hub for China’s yuan, joining a global race for a share of trading in the currency of the world’s second-largest economy.
Some of Canada’s largest banks, insurance companies and pension funds met with government representatives and the Bank of Canada in Toronto on June 21 to discuss establishing a yuan trading hub, according to the Toronto Financial Services Alliance, an industry group that set up the meeting. Representatives of Chinese banks also attended the meeting, the group said, declining to name them.
THE FED IS F*CKED!
Almost no media that I’m aware of, mainstream or otherwise, has reported what I’m about to tell you. So, listen up. I’m going to give you spin before it’s spun.
By SD Contributor Eric Dubin
Six months from now, or sooner, we will start hearing about the latest bullsh*t exit strategy brought to us by the Federal Reserve. It will involve the brilliant idea of securitizing the “assets” on the Fed’s balance sheet and selling them off into the public markets. It will require packages sold at a discount because much of the stuff that’s marked-to-make-believe now on the Fed’s balance sheet (other than the Treasuries) will be offered to real investors and not governments with printing presses. Real investors, for the most part, demand satisfactory risk/reward — thus the discounted offerings.
But guess what? With that extra crap flowing to the public market, it will crowd-out existing ongoing debt offerings which are already having a hard time being sold at current interest rates. Thus, instead of the Fed claiming victory by not having the velocity of money go bonkers since sequestered “money” on their balance sheet is “sterilized” by “honest” purchases by new investors locking up the funds…
Bond Yields Getting Closer to Pain Threshold
The scale of the sell-off in U.S. government bonds has taken market watchers by surprise & yields are now fast approaching a “pain threshold” that could make the Federal Reserve think twice about unwinding its monetary stimulus too soon, analysts…
China Radio – “The U.S. And Europe Have Always Suppressed The Rising Price Of Gold”
China’s increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.”
Rickards Says Fed Is Improvising – Excellent Audio Interview – Bloomberg
James Rickards, senior managing director at Tangent Capital Partners LLC, says the economy is at risk of falling into a depression, thanks to the Federal Reserve…
Forbes – Is Gold Really Worth $40,000 Per Ounce?
the M2 money supply is about $10.5 trillion. The amount of gold held by the United States government is approximately 260 million ounces. Doing the math, that translates to north of $40,000 per ounce.