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Yuan & the Death of the Dollar? Good One!

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QUESTION: Is this story that the dollar is dead because products will begin trading in Chinese Yuan in Singapore and Hong Kong have any validity or is this more propaganda to covertly sell gold?

Thanks

RG

WorldEconomy

ANSWER: It is exaggerated propaganda. We monitor capital flows and the flows through Swift transfers. I reported that the Yuan has now displaced the Euro, which they also touted would destroy the dollar. But the Yuan is only about 8.6% of trade flows. The stories that the dollar is dead unfortunately are still the same nonsense from dollar haters who are clueless how should things unfold.

MA-Diet-r

Look – we were the first to point out that China would rise to the new financial capital of the world. In part, that is why I was invited to the Central Bank of China in 1997. Most of these people have never been to China. I was driven around in a motorcade and taken to an installation that was filled with people downloading the entire internet back in 1997. It was heavily guarded and surrounded by tanks. I wondered where the hell they were taking me deep behind the curtain. They were also actually monitoring everything that moved within the economy at that facility, yet were not interfering with prices – just observing. I was asked questions why products were selling at different prices in different regions that was baffling to former communists who only saw the same price everywhere. I was explaining how a capitalistic system functioned to help then make the transition. I was asked about that trip by the US Treasury upon my return. You cannot write about stuff irresponsibly without having real knowledge of the true nature of the trend.

True, eventually all systems fail. The United States will break apart and will crumble as a political union. That is certain. However, the question is WHEN? Trust me. Not on this economic wave. That will manifest ONLY when the debt goes. That will happen ONLY after the financial implosion unfolds in Europe and Japan. Then this economic disease will spread like a contagion to the US economy.

Yuan-Y

I have been stating that China has to let go of the currency and allow it to freely float in order to make it a reserve currency. We forecast that the dollar will fall against the Yuan and this is inevitable. However, to claim the dollar will be instantly dead so run out and buy gold is like saying there is a forest fire in Idaho and your house in San Francisco is now in danger.

The dollar is not ready to die. It is the World’s Reserve Currency oddly because we have a debt that allows people to park $17 trillion in during this world of confusion. Who will put all their savings in a bank that has problems? Anyone? Well do you really expect that the Yuan will displace the dollar and in the next breath say war with China or Russia is inevitable?  That would be like running to Hitler to hold your money while Patton is on his way to Berlin. Come on. Where is the common sense here? Guess common sense is anything BUT common.

Eventually, the Financial Capital of the World will move to Asia. The West is dying by its own hand that of Socialism and both China and Russia can smell the blood. Give this transition time. For that is what is required. But to claim this is the end of the dollar because they will start to trade in yuan – come on. That is the same bullshit we heard with the Euro and how that would kill the dollar. The Middle East is also creating a single currency and that will be linked to the dollar, not the Euro nor the Yuan or the Ruble. Let’s get real here for once.

Yes we will be publishing in Chinese and covering Chinese stocks. But that does not mean the dollar is dead – long live the yuan. It Just takes Time!