Brazil, China team up against the dollar

Brazil, China team up against the dollar

rawstory.com

People's Bank of China Governor Zhou Xiaochuan said ahead of the 2009 G-20 summit that he wants to replace the dollar, installed as the reserve currency after World War II, with a different standard run by the International Monetary Fund (IMF).

Both Federal Reserve chief Ben Bernanke and Treasury Secretary Timothy Geithner have said they would not allow the dollar to be stripped of the premier status as suggested by Beijing. China, the top holder of US Treasury bonds with 739.6 billion dollars as of January, according to US figures, earlier expressed concern over its investment as the w

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[edit on 19-5-2009 by DimensionalDetective]

Honestly, I can't say I can blame them anymore.

The same old, tired policies of borrowing ten times beyond our means, the fraudulent fed printing trillions more of these worthless I.O.U.'s to keep the policies in place that have brought us to where we are, etc., etc...And they just keep on doing the same thing, day after day. It's pure insanity.

This does not bode well for us IMHO.

Something to pay attention to, at the very least.

rawstory.com
(visit the link for the full news article)

Lately it seems that every other day China is screaming for a change. I know they think they are the new Big dog but enough already. I think people are going to wisen up and realize that it's all about trying to pull the US down politically speaking and has very little to do with real financial issues.

This just shows the world the real China and her objectives.

Here comes the Treasuries Bubble Burst. I hope this doesn’t happen.

This will certainly set off hyperinflation in 2 years or sooner. I’d rather live in a Great Depression than have hyperinflation.

In a Depression your 1000.00 in the bank will still buy 1000 loaves of cheap bread. In hyperinflation that same 1000 may only buy 1 loaf.

reply to post by wonderworld


Good point. Sounds like Zimbabwe.

We are definitely living in some interesting times. Everyone jockying for leadership and power. I wonder how China and Brazil's move here fits in with the one world government being pushed so heavily? Are they going to form an alliance independent of this agenda being pushed?

reply to post by DimensionalDetective


Yes and Germany way back when, as well. We could easily see 20-25% annual inflation rate. This would cause hyperinflation in 2 to 3 years. I see it coming. We arent excempt from this in our own Countries. Things are about to change, Big time.

[edit on 19-5-2009 by wonderworld]

reply to post by SLAYER69


People are going to soon realize ?

Absolutely not, the US has already done a stellar job of making itself unpopular politically AND financially by being solely to blame for the current worldwide depression.

China and everyone else for that matter has a right to complain for change.

Simply due to the fact that what has transpired here in the US is the epitome of utter criminality and financial mismanagement and everyone has to continue to support our mismanagement and criminal behaviour simply due to the fact that the Dollar is the Official Reserve Currency. Deemed upon the world ( I might add) by none other than the British.

The United States currently has two concurrent wars going on and its all paid for by credit cards....paid for by the Brazilians and Chinese in exchange for all the ggods we've purchased from them.

Enough is enough they're saying and I can't blame them at all. They want real money for their products instead of payment in nearly worthless low interest paying US treasury notes.

You, Slayer69 provided the very well organized thread on the NWO, and you, of all people, then turn around and make a lame statement such as this ?

Do a little research on the roots of the NWO, formerly entitled "British Imperialism" . The British never lost the Revolution with the US, but instead won the battle by ,bringing us our Federal Reserve Bank and our anti constitutional Income taxes as well as the collection agency called the IRS.

Originally posted by nh_ee

Enough is enough they're saying and I can't blame them at all. They want real money for their products instead of payment in nearly worthless low interest paying US treasury notes.

You, Slayer69 provided the very well organized thread on the NWO, and you, of all people, then turn around and make a lame statement such as this ?

Well thank you for the compliment on my other thread.

Having said that. Has anybody twisted China's arm to purchase those T-Bills? Has anybody twisted anybody's arm to purchase them? If it was such a bad investment then why have they increased their purchasing of them in the last few months knowing it was such a "Bad investment"

They will be paid out in 30 years on their long term and they are already being paid on the short term. Contrary to popular beliefs our credit standing for the meantime is still good. There is plenty of time to turn things around by then and they are not the only purchaser of US T-Bills.

So according to your logic these very same brilliant people who are calling for a "Change" are the very same ones reinvesting in the "Failing" economy. It's a lot more complicated than just wanting a new world currency.



MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES


China passes Germany in economic rankings

Jan 09

The Chinese government revised its growth figures for 2007 from 11.9 percent to 13 percent this week, bringing its estimated gross domestic product to $3.4 trillion -- about 3 percent larger than Germany's $3.3 trillion for the same year, based on World Bank estimates. Beijing is expected to release its 2008 GDP figures next week.

Although the world's top economies, the United States and Japan, are in recession, the most pessimistic estimates for China's growth in upcoming years runs about 5 percent. That could allow China's GDP to overtake Japan's, currently $4.3 trillion, within a few years.

The U.S. economy, the world's largest, was about $13.8 trillion in 2007.

The World Bank's estimate of China's economic growth is about 7.5 percent. But China has seen a sharp decline in exports in November and December as other major economies struggle, and the bank's analysts say rates below 6 percent could worsen the rest of the world's slump.

[edit on 19-5-2009 by SLAYER69]

reply to post by nh_ee


Did you intend for your reply to appear as an attack on the US and slayer?

This loss is China's decision, not the result of U.S Government. As long as China wants to spend billions of dollars each year propping up the dollar, it can’t prevent losses on its previous holdings due to a fall in the value of our dollar.

If they backed out and switched to the Euro they will chose to lose a LOT and the US will go bankrupt. Once we stop putting out those golden eggs look what happens. Is China a true Allie?

Another article regarding this situation, that paints quite the dire picture emanating from the direction this seems to be heading:

China holds sway over US$

"The U. S. should be afraid, very afraid. China is questioning the dollar's status as a reserve currency and, at US$1,000 an ounce, gold has become the world's de facto currency." -- John Ing, Maison Placements in Canada

It is a chilling statement from an expert on both gold and China. But he is speaking the truth: In a G2 world (the United States and China), he who is the piper calls the tune, and China holds a US$2-trillion mortgage on the United States and is not happy. This country, along with others that lend money to the United States, such as Saudi Arabia, will determine the value of the U. S. dollar and gold. And they have spoken. They are not buying more U. S. treasuries and are buying gold as a new asset class. China announced that it was doing so quietly, and recent reports are that the Saudis and others have been buying bullion and hocked gold jewellery from around the world.

Continued:

www.nationalpost.com...

Yeah I love this part here. Same Source

And as Ing points out, the "bi" in this bipolar global economy is China. Beijing has not only started to hoard gold but has continued to talk up a new reserve currency concept to replace the U. S. dollar. The only reason the Chinese and others don't dump U. S. dollars is because it would be like shooting themselves in the foot.

If the dollar isnt tied to inflation at least then its the same as stealing from them. You dont print money out of thin air to pay your debt.

In possibly relevant developments:

Dollar hits new multimonth low vs euro, pound, yen

Because Britain is pursuing similar policies to the U.S.—with both the Bank of England and the Federal Reserve injecting billions of dollars in their economies by buying assets from banks—the move also weighed on U.S. assets and the dollar. Treasurys sold off Thursday, and continued to do so Friday.

S&P's announcement "wound up creating more problems for the U.S. dollar than for the British pound," HSBC analysts said in a research note.

"The problem for the U.S. is particularly acute because of its reserve status," said UBS analyst Brian Kim in an e-mail to investors Friday. Major holders of U.S. debt, such as Middle Eastern sovereign funds and the Chinese government, have not been shy about calling the U.S. out for what it sees as policies that will trigger inflation, shrinking the value of their Treasury holdings.

Full story:

www.breitbart.com...