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China Pulls A 180, Says US Dollar Will Remain World's Reserve Currency

"The US has halved its oil imports since 2005 and is moving “rapidly towards self-sufficiency”, turning global geo-politics on its head."

China loves the US dollar again as America roars back

China’s central bank has radically revised its view of US economic and strategic power, predicting that the dollar will remain the world’s paramount reserve currency for decades to come.

http://www.telegraph.co.uk/finance/currency/9881410/China-lo...

By Ambrose Evans-Pritchard

Jin Zhongxia, head of the central bank’s research institute, said America’s energy revolution and export revival had shaken up the global landscape and would lead to a stronger dollar over time.

“The dollar’s global dominance will continue,” he said.

Dr Jin said the world was moving to a “1+4” system, with the greenback serving as the anchor of global payments, supplemented by “four smaller reserve currencies” – the euro, sterling, yen and yuan.

“Compared with the euro area, the dollar zone has much greater resilience to shocks. The debt crisis in the euro area has demonstrated the structural weakness of this currency,” he wrote in a paper for the February bulletin of the Official Monetary and Financial Institutions Forum.

The comments suggest a profound shift in thinking about the US since the financial crisis five years ago, when premier Wen Jiabao questioned if Chinese holdings of US Treasuries were “safe”, and the central bank issued a paper calling for a “global currency” run by the International Monetary Fund.

------------full article linked above.

This is HUGE!!! My how things have changed...just when you think the dollar is about to collapse, and a new World "Uno," currency is about to be unveiled, China's central bank comes out and says the Greenback is their preference!!!

What! This is such great news!

I like the idea of the US dollar serving as the, "anchor of global payments," with other currencies competing against it.

The only reason why this is now happening is because America is moving, “rapidly towards self-sufficiency.”

America is fast becoming, "ENERGY INDEPENDENT."

http://www.economist.com/news/21566349-energy-independence-c...

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Hmmm. I thought that china's

Hmmm. I thought that china's share of our national debt was decreasing. Actions speak louder than words.

It is my God given right to own me. I think I'll keep me.

It is part of the plan

Whatever the plan is, I'm sure it is part of the Big Lie. Go watch "All Wars Are Bankers Wars" by Michael Rivero. After that, let that sink in for a few days, and then watch some Eustace Mullins videos.

Perhaps it's those 30,000 troops...

that Barry has sent to Australia!!! Remember the big base we have there? Remember the announcement of troop movements there last year? I'll just bet China is shaking in their boots!! LOL
I agree with those below who feel this is just posturing for better leverage. At this point, when China calls in their loans they'll only be able to get California...perhaps they want Oregon and Washington, too!!

------------------
BC
Silence isn't always golden....sometimes it's yellow.

"The liberties of a people never were, nor ever will be, secure, when the transactions of their rulers may be concealed from them." - Patrick Henry

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By portraying false

By portraying false confidence, they help delay the dollar collapse. This is a confidence game. They know the gig is up but it is easier for them to acquire undervalued gold before the storm rather than after.

They just bought extra time to buy more gold during this calm before the storm.

They don't care what the next global reserve currency will be, they just know that those with the most gold will transition to it best. Individuals should be doing the same thing.

They are playing coy.

They are just consolidating their land grabs with the debt they own. The Federal Government is also grabbing land that I assume they will use to pay off our debt.

http://www.foxnews.com/us/2012/11/27/chinese-buyers-lead-for...

Here is what we are going up against in CO. BLM road closures. Nevermind the cutting off access to fires or having the freedom to go hiking, camping or gold panning. They are turning us into the 8th district of the hunger games.

http://www.kjct8.com/news/Big-decision-looming-for-public-la...

Hmmm... Setting us up for a sucker punch?

China can say whatever pleases the Rothschilds, but if they make a gold backed yuan, the dollar is toast.

Love or fear? Chose again with every breath.

Maybe the Chinese are trying to delay the collapse of the dollar

until they are more prepared.

I find it difficult to believe they haven't looked into the numbers.

Government deficits of $2.5tn in 2020 and rapidly rising due to increases in debt servicing, pensions and Healthcare costs.
http://ian56.blogspot.co.uk/2013/01/fiscal-cliff-deal-obamas...
(The retirement age and Medicare qualification age will have to significantly rise at some point - there isn't another solution. The retirement age will have to be at least 70, perhaps as high as 75 by 2050.)

National Debt of $36tn by 2022 - but then you have to add in this which will take it to $40tn+.

NOBODY has yet factored this into deficit or National Debt calculations - the Federal Reserve charging the Treasury for their multi trillion future trading losses on trades they are making now.

http://ian56.blogspot.co.uk/2013/02/there-is-no-way-out-for-...

The Chinese are not yet ready for a dollar collapse.
They have their own domestic problems with the slow down in exports to Europe and the US.
Some realistic estimates put current Chinese GDP growth as low as 0% (the government has always overstated official GDP growth and are saying it is about 6%).

The US is already nett energy neutral.
It still imports oil but it has an excess of natural gas.
Gas production is being slowed down by energy companies, because it is on the economic margins.

The US would now be producing a lot more natural gas, if the price was say 10% higher.

A relatively small switch between the current gas and oil usage in the US would mean it was economic to produce more natural gas in the US.

The US needs to use less oil and more natural gas to become completely energy independent.

The US will become a significant nett exporter of energy and the largest producer of energy in the world (overtaking Russia) in the next few years.

The government is actually trying to stop this from happening and keep the US energy dependent on some politically dodgy sources (like Venezuela) by things like stopping more energy exploration in 1.6 million acres of Dakota.

"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."

I hear prime everglades land

I hear prime everglades land in Florida is the deal of the century too...

Wonder what China was threatened with to make that statement? Either that or it is a very poor ruse as they prepare for the final economic collapse... Or maybe they are just trying to keep things going until they can minimize their dollar holdings before they dump it all together and minimize their losses when they do.

-----
End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

Cyril's picture

I hear prime everglades land in Florida is the deal

"I hear prime everglades land in Florida is the deal of the century too..."

LMAO!!! :))

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

War is a huge part of the

War is a huge part of the subject here. The U.S. is pulling troops back and using drones to do dirty work instead, so only enough ground troops are needed to surround the sites where the supplementary resources are stolen and coerced from these countries. Europe and the UK are beefing up their military now(as is evident in France's war in Mali and the EU's and UK's parliamentary actions), because they can no longer outsource their operations to the U.S. So, it appears we are becoming "Energy Independent" because we have permitted the privileged monopsony to extract natural gas from domestic soil for literally fueling the transport sector of the economy.. but it's still not as pretty as it seems. China is still trying to invest in its domestic economy. I'm actually living in China now, and it's not as pretty here either as many seem to think it is judging by looking at photos online. There is A LOT of poverty that is only slowly being eradicated in a Georgist kind of way. The economy in China is predicted to slow down to a 4% growth rate after this year's 8% rate. So, they will not have a chance to be strong in military terms for a long time. That means to dollar will be the reserve currency for at least however long that lasts.

It cracks me up when peole listen to politicians.

Its usually an indication they think the exact opposite.

Watch what they do over the next few months?
Gold imports go up or down?
Adding more trade partners to deal in gold or less?

Keep your eye on the prize people

www.SuccessCouncil.com
Protect your assets and profit from the greatest wealth transfer in history.

Maybe China has Read Thorton's Skyscraper theory?

http://mises.org/daily/3038

http://english.pravda.ru/news/business/26-11-2012/122921-tal...

Its hard to predict what the heck will happen next. I am just an observer from now on; I have remove all emotion from watching what may happen.

Look the Austrians know how complex the economy is, but look at Bob Murphey's inflation prediction/bet. He lost and now he is the Krugmonster's whipping boy and the krug characterizes all Austrians based on RPM's stupid prediction/bet.

Everyone should remain calm and logical while keeping in mind the vast complexity of 7 billion humans' individual actions. 15 years ago very few people thought North Dakota Would turn into a oil boom state? Its in Nobody's interest for the dollar to quit functioning as a currency...too many people value trading with it.

Too much pushback on the

Too much pushback on the second amendment. Until they take care of that "problem" they can't allow the dollar to collapse. Though at some point those tiny drones are going to take care of that liberty "problem" entirely.

Cyril's picture

LMAO. Is it April's Fools already?!

LMAO. Is it April's Fools already?! Or what?

I have NO IDEA how that guy could even survive his laughing his a** off, after such an official statement! Must have hurt BAD THE BELLY!

Impressive, THE DUDE! ...

Everything's gonna be okay, peeps: EVEN China says so! They've redone the Math for ya, peeps. Not to worry!

But hey... Pssst... Could ya pleeeease dump and sell your silver and gold faster, peeps?! China says you're all good with your cotton dollars... yeah, THAT you can keep.

But gold, pffft!! "It's just tradition, anyway" ( (c) Copyright Ben Bernanke, 2011- )

Yeah, RIIIIIIIIGHT!

Oh my. Goodness.

P.S.
My favorite part:

"[...]China’s central bank has radically revised its view of US economic and strategic power, predicting that the dollar will remain the world’s paramount reserve currency for decades to come.[...]"

...

P R E C I O U S !

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

China loves the US dollar again as America roars back

The government of China is accumulating gold and encouraging the citizens to do the same.

They are building wealth, wealth of their nation, and their people will become consumers to replace the US.

There are only three ways to actually produce wealth. Mining, Manufacturing, and Agriculture.

That's it.

China has become the world's largest gold producer and they have laws against any of it being exported. And their people stand in line to buy it.

In America, it is shunned by our government. Who is more communist?

maybe they figured out that

maybe they figured out that if the us economy collapses then americans will no longer be able to buy their products and theirs will collapse too. Their economy is dependent on exports to the usa.

i agree.

.

Did China just tell us

the end is near? economically speaking. I smell a rat. Like all the other economic catastrophes they were preceded with propoganda of great times are ahead.

There was never 180 turn

because China has never planned for gold standard. They are not dumb, they know what shackles gold standard would place on its Communist Party.

China is one of the largest gold producer, so the government naturally paid newly printed Yuans to gold miners for their gold. Some folks became "optimistic" as if China moves to the gold standard. In fact, China is doing a huge quantitative easing itself now, so dollar will be in demand as long as USA gives out foreign aid and brandishes weapons.

ok so

Ok so, from what I've seen and heard and please correct me if in wrong but China has been mining and amassing large swathes of gold. More than any other country is currently. Maybe not a true "gold standard" but backing/propping the yuan up with it as a gold reserve. From what is available online I see they have ~4000 tons of gold and the second highest reserve in the world to Germany's reserve. I'm not very familiar with their economy though but it just seems odd. So not sure what to think honestly.

Homeland security statement: patriotism is now considered terrorism.
I love www.isidewith.com shared it with everyone I know. If anything they realize its not just a red and blue idiot running for reelection.

Good news!

The governments say that they aren't lying this time!

Michael Nystrom's fists can punch through FUD.

Hmmm

or Maybe China see's how America is becoming communist and if they were to damage the dollar with their gold backed currency it could send us in to revolution.

that's about how i feel

That they know if they were to try now to put their foot down and attempt to assert themselves and the yuan as the top currency the backlash would cripple them in some way. Most likely the us would stop doing a lot of business with them and they wouldn't get paid back by the us. At this point I don't think they want to do anything like that. I do think though that if the dollar does collapse they would eventually do it. But I wonder about the debt we owe them. I doubt they'd just let us write off the, what is it now maybe 3 to 4 trillion dollars.

Homeland security statement: patriotism is now considered terrorism.
I love www.isidewith.com shared it with everyone I know. If anything they realize its not just a red and blue idiot running for reelection.

Woah !!! What just happened?

Theory A : the planned IMF economic implosion has been called off due to the frightening specter of a truly enraged American People fully awaking to their true enemies within . . .

Theory B : the coming implosion goes into stealth mode : keep America sleeping just a few months or years longer until larger and more motivated invasion force + robot army are in place . . .

Cyril's picture

Theory C : now Chinese officials put themselves ON ACID

Theory C : now Chinese officials put themselves ON ACID before making the official statements that Washington DC's CFR + Fed teams has written for them and the "medias".

Can't be otherwise. You can't be in your NORMAL mental state and keep your composure while saying stuff like that - given the situation we've got.

I mean, 2013, you know!

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

i bet It's maximum stealth, just in time for crysis 3

:P

Homeland security statement: patriotism is now considered terrorism.
I love www.isidewith.com shared it with everyone I know. If anything they realize its not just a red and blue idiot running for reelection.

Temporary Propaganda - MOPE

This will allow the Chicoms to use their overvalued dollar reserve to obtain more gold with reduced number of fiat bucks, very shrewd… More gold / less fiat script (non) units needed per bar, check!

(MOPE – management of perspective economics)

"To be governed is to be watched, inspected, spied upon, directed, law-driven, numbered, regulated, enrolled, indoctrinated, preached at, controlled, checked, estimated, valued, censured, commanded, by creatures who have neither the right nor the wisdom nor the virtue to do so. To be governed is to be at every operation, at every transaction noted, registered, counted, taxed, stamped, measured, numbered, assessed, licensed, authorized, admonished, prevented, forbidden, reformed, corrected, punished. It is, under pretext of public utility and in the name of the general interest, to be place under contribution, drilled, fleeced, exploited, monopolized, extorted from, squeezed, hoaxed, robbed; then, at the slightest resistance, the first word of complaint, to be repressed, fined, vilified, harassed, hunted down, abused, clubbed, disarmed, bound, choked, imprisoned, judged, condemned, shot, deported, sacrificed, sold, betrayed; and to crown all, mocked, ridiculed, derided, outraged, dishonored. That is government; that is its justice; that is its morality." - Pierre-Joseph Proudhon

Kind of a silly quote imo

All the things listed would be occurring without government as well. These are daily occurrences in human life.. you can't blame them all on the government.

great quote

Wow just, wow.

Homeland security statement: patriotism is now considered terrorism.
I love www.isidewith.com shared it with everyone I know. If anything they realize its not just a red and blue idiot running for reelection.