Debt Rattle June 21 2016
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NPC District National Bank, Dupont branch, Washington, DC 1924 • The Big Guns Are Out: Soros, Rothschild Warn Of Brexit Doom (ZH) • When Brexit Has Co
[See the full post at: Debt Rattle June 21 2016]The Big Guns Are Out: Soros, Rothschild Warn Of Brexit Doom (ZH)
The heading alone is the best reason to LEAVE !! :))
“The yuan accounted for 2.79% of global payments…” That’s a bit disingenuine. The top currencies in 2015 were USD 43%, EUR 29%, GBP 9%, JPY 3%. That puts China in at number 4 or 5th most used currency in the world, not say, 30th as a 3.3% share might imply. Besides, the other thing no one gets is that China doesn’t want the reserve currency, or at least not right now. It leads to a whole slew of problems like Triffin’s paradox and the Dutch disease they won’t take on willingly. What they’re after is to create a parallel monetary path so they and the world are not held hostage to abhorrent U.S. and Western monetary policy. That means being more deeply traded, yes, but not because they want the reserve currency. It’s enough to be a safety valve or escape route. They can prosper if they use any fair trade exchange, the SDR, Bitcoin, gold, while the U.S. and indebted west cannot. With fair trade currency–by definition stopping trade deficit–the U.S. would have to tighten their belts by $500 Billion/year; and with the disruptive consequences of that, probably a lot more.
So can this 3% matter? You bet it can. But you have to know what they’re up to, and what they really want.
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