Cynicus Economicus - Latest Comments in The RMB as a reserve currency - an update

Re: The RMB as a reserve currency - an update

marksmith1981 — Sat, 11 Jul 2009 06:47:11 -0000

Cynicus, have you seen Medvedev's stunt at the latest G8? It seems absurd that he would be doing that without the US knowing about it - therefore, can we assume it has the blessing of the US?

Especially given the recent meeting between Medvedev and Obama - it would seem highly unlikely that the reduction in nuclear weapon stockpiles was the only topic of discussion - i'm speculating, but that smacks of window dressing to me.

So, if we can assume that the action has been approved by the US, or at least that they have been informed prior, does this mean that:

a) The US is weaker, geo-politically, than most mainstream commentators acknowledge - perhaps simply because of their economic weakness, and are powerless to stop the fall of the dollar and the subsequent rise of alternatives (to be fair to you CE, this would seem to fit in with your overall view) OR

b) Forces in the US are driving the introduction of this supra-national currency, but would like it seem as if it is someone else's idea - ie China and Russia (the conspiracy theorists should love this one)

Re: The RMB as a reserve currency - an update

Steve Tierney — Fri, 10 Jul 2009 17:05:11 -0000

I meant "most" not "my"

Sorry!

Re: The RMB as a reserve currency - an update

Steve Tierney — Fri, 10 Jul 2009 17:04:31 -0000

I sell computers if you'd like a quote for a new one! ; )

But I appreciate your comment and your frustration. Although, I would point out that Firefox is a completely free download, available on my operating systems, and would probably solve your woes in short order.

I do wonder how you wrote your comment if you can't see the comments? But maybe I have misunderstood what you mean.

Re: The RMB as a reserve currency - an update

Phil — Fri, 10 Jul 2009 17:03:14 -0000

Ask the Band of England your questions about QE!

http://www.bankofengland.co...

There must be some *good* questions that are worth asking. The pdf on that page is a vapid piece of PR puffery on the topic.

Re: The RMB as a reserve currency - an update

pocmloc — Fri, 10 Jul 2009 16:44:54 -0000

Steve, some of us can't get used to them since we can't see them on out computers.

Re: The RMB as a reserve currency - an update

Tiredofthewhine — Thu, 09 Jul 2009 19:43:42 -0000

Actually, I think that we are seeing the slow collapse of the £ & Dollar and the western economies right now. I think it will take a few years longer simply because no one in their right mind is going to want to destroy the dollar when most of their assets are held in dollars. The transfer of wealth from east to west will continue and eventually we will wake up to the fact that most of the western economies are much poorer and less influential than we thought. Maybe it's just something we'll get used to ?
2010 should be interesting because by then, many european and American workers ,who at the moment are still employed but on "short time", are going to realise that they no longer have a job and that the good times are not coming back anytime soon. What will happen when mass unemployment arrives is anyones guess but it won't be pretty. God knows how the UK will fare with its massive financial commitments in welfare , pensions and the NHS. Many other European goverments are in the same kind of mess, so I imagine we will all see the value of our currencies decline over the coming years.Like you I don't think that anything will happen suddenly. Just a slow decline.

Re: The RMB as a reserve currency - an update

AFriend — Thu, 09 Jul 2009 17:52:24 -0000

You did not, except that the tone of your original post implied a collapse, in your opinion, was unlikely. Apologies for making the assumption. I think I'm right in saying that CE has always maintained that he might be wrong. Many of the articles on this blog mention a potential currency crisis of one sort or another, although I do not think anyone has ever made specific predictions as to when this may happen. My opinion is that any immediate change is unlikely but I do recognise that a transfer of wealth from West to East is underway. To re-phrase my question; do you think the pound or dollar could collapse? If so, how and when could such an event unfold? If not, why not, what factors do you think would prevent it?

Re: The RMB as a reserve currency - an update

Tiredofthewhine — Thu, 09 Jul 2009 17:01:46 -0000

@AFriend
"I am not sure that this blog is intended to 'split sides'. Why do you think the dollar and pound are immune from collapse?"
Where did I say that I think that the $ & £ are immune from collapse ? I said " according to you (they) should have collapsed ages ago but didn't." Perhaps you were reading between the lines.

Re: The RMB as a reserve currency - an update

AFriend — Thu, 09 Jul 2009 14:23:11 -0000

@Tiredofthewhine
I am not sure that this blog is intended to 'split sides'. Why do you think the dollar and pound are immune from collapse?

Re: The RMB as a reserve currency - an update

Tiredofthewhine — Thu, 09 Jul 2009 13:12:19 -0000

"As the current situation stands, the RMB is looking very much like the new reserve currency, and it is not going to become the reserve currency in ten or twenty years time, but in the near future. "

Don't you think that it's about time you stopped making these predictions ? I'll file this one along with the ones about the dollar and the pound ,which according to you should have collapsed ages ago but didn't. In the next file will be the story about the forged American bonds. You know, the attempt to dump American bonds on the quiet which turned out to be a load of crap ." Pssst; Wanna buy anundred billion dollars worf of bonds mate" ...Really !!
I look forward eagerly to your next side splitting prediction.

Re: The RMB as a reserve currency - an update

Steve Tierney — Thu, 09 Jul 2009 05:56:24 -0000

While I preferred the old system, I really don't think its a big deal. The new system isnt "terrible" or anything like that. I wouldn't worry about changing it back if I were you. We'll get used to it.

Re: The RMB as a reserve currency - an update

Lefty Feep — Thu, 09 Jul 2009 04:26:26 -0000

Chinese bond auction falls short

China's finance ministry has failed to sell all 28bn yuan ($4.1bn; £2.55bn) of one-year government bonds it offered at an auction.

It is the first under-subscribed government bond auction since 2003.

http://news.bbc.co.uk/1/hi/...

Re: The RMB as a reserve currency - an update

George — Wed, 08 Jul 2009 14:41:21 -0000

The coming world reserve currency will be Gold (goldgrams) or any fiat currency directly linked to it that cannot be 'printed' into existance via Quantitative Easing nor created via fractional reserve banking debt.

Oh and the new comments system is a waste of space on the left hand margin, since it only makes sense reading it as a thread at the end of the articles.

Re: The RMB as a reserve currency - an update

TiberiusLeodis — Wed, 08 Jul 2009 10:23:44 -0000

For what it's worth, I quite like the new comment system!

Re: The RMB as a reserve currency - an update

cynicus — Wed, 08 Jul 2009 08:41:48 -0000

Regarding the new comments system. I think the answer is clear. I will revert to the old system as soon as possible. Thanks for the feedback, which is very useful.

Re: The RMB as a reserve currency - an update

Lord Sidcup — Wed, 08 Jul 2009 03:32:31 -0000

The new comment system is slow and buggy in my experience.

I preferred the simplicity and clarity of the old one.

Thanks and regards

Re: The RMB as a reserve currency - an update

Spaceknarf — Tue, 07 Jul 2009 20:30:24 -0000

What is the place of the Euro in all this?