Posted on 08/26/2010 7:45:32 PM PDT by Errant
A number of the world’s biggest banks have launched international roadshows promoting the use of the renminbi to corporate customers instead of the dollar for trade deals with China...
...HSBC and StanChart are among a slew of global banks – including Citigroup and JPMorgan – holding roadshows across Asia, Europe and the US to promote the renminbi to companies...
(Excerpt) Read more at ft.com ...
Didn't we just bail these banks out?
We still own Citi. Actually a lot more of its business is overseas than in the US.
ren whaaaat?
Say hello to massive inflation!
Chinese leaves you hungry 20 minutes after you eat.
Imagine the face of Washington on the dollar bill fading into Mao’s portrait on a 1 Yuan (Renminbi is the name of the currency and Yuan is the denomination, something like Pound and Sterling) note and you’ll have the perfect image for a slew of political ads in, say, October of this year.
“renmin” = people’s
“bi” = currency
Peoples currency.
Similarly “renmin” + “erbao” = Peoples Daily communist party newspaper.
ping
Another source for the article’s information...
http://gata.org/node/8961
You can tell when the cattle are being herded when articles are incomplete with information. How are they (anyone) determining renminbi value on a daily or even hourly basis?
Who controls the printing press for this fiat?
None of this should be a surprise to anyone.
From July 2009...
The Dollar: Running on Reserve (Soon, China might demand that US bonds must be issued in Renminbi)
http://www.freerepublic.com/focus/f-news/2305212/posts
Excerpt...
Sooner than we think, China and Japan, like all nervous creditors, may send the United States a letter, suggesting that, henceforward, if Washington needs to borrow money, the bonds be issued in renmimbi, yen, or a basket of Asian currencies (a Pacific Euro).
Wall Street bankers did the same to the farm interests in the late nineteenth century, when they insisted that debt be based on a gold standard, as opposed to “free silver.” President Obama may be as eloquent as William Jennings Bryan. But at that point he will need to use all his oratory for the business of selling junk bonds.
“”We still own Citi””
So does the Chinese and Kuwait-If you go back to early 2008.
US bailout came in November 2008 with money we don’t seem to have
China, Kuwait dollars to bail out Citibank
http://newsgroups.derkeiler.com/Archive/Alt/alt.politics/2008-01/msg01683.html
Citigroup is putting the final touches to its second big capital-raising effort in as many months, seeking up to $14bn from Chinese,Kuwaiti and public market investors.
Escalating Losses Force Citigroup to Seek More Foreign Investment
http://www.nytimes.com/2008/01/12/business/12citi.html?ex=1357794000&en=2b92fc2277fba775&ei=5088&partner=rssnyt&emc=rss
Citigroup is turning to cash-rich foreign investors for a second time as it confronts mounting losses on mortgage-related investments.
The financial giant is in talks to sell a large stake to a Chinese bank and several other investors, including foreign governments, in a deal that could raise $10 billion, people briefed on the plan said Friday.
The China Development Bank, which is controlled by the Chinese government
THIS ISN’T THE BAILING OUT OF A BANK, THIS IS THE INTERNATIONAL BANKIING COMMUNITY DROPPING THE DOLLAR BECAUSE IT’S VALUE IS TOO LOW AND OUR ECONOMY IS TOO UNSTABLE!!
THIS IS HUGE NEWS!!
Exactly!Government bonds will be junk soon
Guys, this deserves to be a headline somewhere...
Yep, and it's actually funny that it isn't making the headlines.
That in itself is news of our current state of affairs!
Only a very few people like yourself have a clue to what it means...
“We’re now capable of doing renminbi settlement in many parts of the world,”
said Chris Lewis, HSBC’s head of trade for greater China. “All the other
major international banks are frantically trying to do the same thing.”
HSBC and StanChart are among a slew of global banks - including Citigroup
http://markets.ft.com/tearsheets/performance.asp?s=us:C>
and JPMorgan
http://markets.ft.com/tearsheets/performance.asp?s=us:JPM>
- holding
roadshows across Asia, Europe and the US to promote the renminbi to
companies.
The move aligns the banks favourably with Beijing
http://www.ft.com/cms/s/0/f815ca7e-b08a-11df-8c04-00144feabdc0.html>
‘s
policy priorities and positions them to profit from what is expected to be a
rapidly growing line of business in the future.
The phenomenon will accelerate Beijing’s drive to transform the renminbi
from a domestic currency into a global medium of exchange like the dollar
and euro.
Chinese central bank officials accompanied StanChart bankers on a roadshow
to Korea and Japan in June. The bank held similar events in London,
Frankfurt and Paris.
Lisa Robins, JPMorgan’s head of treasury and securities services for China,
said there had been a “spike in interest” from international clients.
An increasing number of Chinese companies have been asking foreign trading
partners to accept renminbi as payment, said Carmen Ling, Hong Kong head of
global transaction services at Citi.
BBVA
http://markets.ft.com/tearsheets/performance.asp?s=es:BBV> ,
Spain’s
second-biggest bank, is also drawing up plans for a global marketing
campaign that will focus on Latin American companies that export to China.
Banks started establishing renminbi trade settlement operations in mid-2009,
when Beijing introduced a pilot scheme allowing companies to use the
renminbi for trade outside China.
The scramble has intensified in recent months as Beijing has substantially
expanded the scheme - from a handful of Asian countries to the whole world -
and introduced other liberalisations to its currency regime.
Cross-border trade in renminbi totalled Rmb70.6bn ($10bn) in the first half
of the year - about 20 times the Rmb3.6bn recorded in the second half of
2009.
But those figures remain tiny compared to the $2,800bn worth of goods and
services that were traded across China’s borders last year, most of which
was settled in dollars or euros.
With renminbi trade settlement volumes expected to increase rapidly, banks
are under pressure to establish a foothold in the nascent market and
demonstrate to Chinese officials that they are committed to the scheme.
I can see now why there was an “uptick” (read that as a run) on the so-called junk silver. Oddly, the 1000 USD face-value bags seem to be flying off the shelf here as well.
Makes you wonder when the next shoe will drop....
It's hard to grasp what all is taking place and what will happen next. It seems like slow mo now but looking back on it when history is written, it will look like a house of cards collapsing. I think the seemingly complexity of today will dissolve into the simple fact that we've followed the same actions which lead to economic collapse throughout history.
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