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China Sovereign Wealth Fund Says Renminbi Will Become Reserve Currency

It has been obvious for a while what China has been planning.
Moving away from the US dollar and encouraging the other Brics and Africa to do the same. Japan and Australia are also interested.

Now the head of China's Sovereign Wealth fund comes right out and says it.

http://www.zerohedge.com/news/there-can-be-only-one-china-so...

The US currently runs a very substantial trade deficit and has done for many years.
The only reason it is able to do that, is by exporting dollars because it is the world's Reserve Currency.

If the rest of the world will no longer accept exported US Dollars, the US will not be able to run a trade deficit.
That would be a very considerable economic adjustment.
And no amount of Fed printing could change it - it would make it worse by decreasing confidence in the dollar still further.



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Ron has known this for YEARS,

Ron has known this for YEARS, and told people, and they did not listen. This, tragically, was expected.

Difficult to comprehend.

"The US currently runs a very substantial trade deficit and has done for many years.
The only reason it is able to do that, is by exporting dollars because it is the world's Reserve Currency."

The fact that many oil producers agreed to sell oil in exchange for dollars is important in this concept of "trade imbalance".

The fact that Chinese governors, those people commanding the legal monopoly power to punish, allow the enslavement of many Chinese people and that is another important factor in this concept of trade imbalance.

The fact that those same powerful people in control of China allow extreme examples of very destructive pollution, for whatever reason they do allow extreme examples of pollution is another factor contributing to this concept of trade imbalance.

The fact that The Federal Reserve people have doubled the money supply in 2008 and some of the meager audit information discovered recently traces the flow of that magical earning of purchasing power to subsidizing industries in China is a factor contributing to this trade imbalance.

At some point it may be a good idea for us, here in America, to wake up and realize that we are growing weaker as we send our earnings to make our enemies stronger and I am not speaking about the victims in China who are enslaved by the same process that we are enslaved.

World War III is being set-up and we are on the schedule to lose it, if our home grown despots are allowed to keep that ball rolling that way.

Our home grown despots may still visit us, from China, or wherever they care to be at any given time, so as to collect on the debt they created.

Welcome home?

Joe