Britain and China start trading directly in Yuan/Sterling - get ready for $6-10 gallon of gas down the road

  • tj85016

    Posts: 4123

    Jun 20, 2014 5:39 AM GMT
    First Russia and China, then Iran and Russia, now Britain and China.

    soon India, South Africa, Brazil with Russia/China


    Without these countries using the US dollar as an intermediary and the dollar losing it's status as "petrodollar", plan for much higher gas prices and inflation in general in the months and years ahead

    http://www.dw.de/china-to-start-direct-trade-between-yuan-and-british-pound/a-17717188

    http://scgnews.com/russia-china-banking-deal-to-exclude-dollar-in-transactions-symbolic-blow-to-dollar

    whatinflationshortfall-e1395780734696.pn
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    Jun 20, 2014 8:43 PM GMT
    No one on this site cares because Obama loves gays so much...
  • tj85016

    Posts: 4123

    Jun 20, 2014 9:08 PM GMT
    Blakes7 saidNo one on this site cares because Obama loves gays so much...


    I like to do my little bit about what's going to REALLY affect their lives instead of the partisan crap on the news
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    Jun 20, 2014 11:00 PM GMT
    I think China trading it's currency against others is an excellent thing for the US and the world. We can finally see how much the Yuan is "really" worth vis-à-vis known currencies.
  • coolarmydude

    Posts: 9190

    Jun 20, 2014 11:16 PM GMT
    tj85016 said
    whatinflationshortfall-e1395780734696.pn


    This chart is highly inaccurate as it claims to relate to inflation. For example:

    http://www.marketwatch.com/story/why-high-gas-prices-mean-high-beef-prices-2014-06-18

    http://money.cnn.com/2014/04/14/news/economy/beef-prices/

    http://www.nbcnews.com/business/business-news/coffee-rust-fungus-raising-prices-high-end-blends-n108716

    http://www.theguardian.com/world/2014/apr/10/drought-brazil-coffee-beans-prices

    http://www.businessweek.com/articles/2013-03-28/why-abundant-oil-hasnt-cut-gasoline-prices

    http://www.today.com/money/3d-movies-push-ticket-prices-all-time-high-1C8342088

    http://www.washingtonpost.com/business/high-health-care-costs-its-all-in-the-pricing/2012/02/28/gIQAtbhimR_story.html

    http://www.washingtonpost.com/blogs/wonkblog/wp/2013/08/28/the-tuition-is-too-damn-high-part-iii-the-three-reasons-tuition-is-rising/

    I'm not saying inflation isn't happening, but it's a fraction of the reason why prices are higher. A lot of it has to do with drought and wars and economic conditions unrelated to inflation or prices.
  • conservativej...

    Posts: 2465

    Jun 20, 2014 11:40 PM GMT
    tailgater_3 saidI think China trading it's currency against others is an excellent thing for the US and the world. We can finally see how much the Yuan is "really" worth vis-à-vis known currencies.


    They are trading goods in these currencies through bilateral trading agreements where the values of the currency are pegged during the settlement process. There is no arbitrage on an open market to set the price of the Yuan or pound or whatever currency. This is also occurring with business entities and China, where the price of the Yuan is pegged in the market of the currency opposing the Yuan.

    This is the prelude for ascension of the Yuan as the reserve currency. Eventually, someone needs to tell the Federal Reserve "I told you so" as some said growing the Feds balance sheet to $4 TT is not a good thing. This of course does not include printing dollars or placing them into the money supply as book entries to monetize the national debt. That makes it even worse.
  • tj85016

    Posts: 4123

    Jun 20, 2014 11:43 PM GMT
    ^^

    no it's highly accurate

    price increase = inflation
    price decrease = deflation

    doesn't matter what the reason is

    the post is about the relative loss in the dollar as world reserve currency - I just added that chart for the hell of it

    loss of reserve status (petrodollar) will result in generalized inflation is the US - it's the sole reason why gas prices are cheap in the US
  • tj85016

    Posts: 4123

    Jun 20, 2014 11:46 PM GMT
    conservativejock said
    tailgater_3 saidI think China trading it's currency against others is an excellent thing for the US and the world. We can finally see how much the Yuan is "really" worth vis-à-vis known currencies.


    They are trading goods in these currencies through bilateral trading agreements where the values of the currency are pegged during the settlement process. There is no arbitrage on an open market to set the price of the Yuan or pound or whatever currency. This is also occurring with business entities and China, where the price of the Yuan is pegged in the market of the currency opposing the Yuan.

    This is the prelude for ascension of the Yuan as the reserve currency. Eventually, someone needs to tell the Federal Reserve "I told you so" as some said growing the Feds balance sheet to $4 TT is not a good thing. This of course does not include printing dollars or placing them into the money supply as book entries to monetize the national debt. That makes it even worse.


    yep, the Fed has already fucked itself, same with the ECB. Without oil trading exclusively in dollars, they're gonna have to drain dollars from the world or we get big inflation - if they drain dollars, it's bad for the US, if they don't drain dollars it's bad for the US.

    this will never be covered on the news
  • tango02

    Posts: 71

    Jun 21, 2014 12:03 AM GMT
    Abandonment of the Petrodollar, as well as all other international trading, is one of the most devastating things that could happen to U.S. economic interests, hence all the military action/sanctions taken against other countries pushing this agenda. Next thing will be abandonment of the dollar as international reserve currency. This is the new financial war being waged against the U.S.
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    Jun 21, 2014 1:42 AM GMT
    "this will never be covered on the news"

    ^^^^THIS is classic conspiracy theory nonsense talk.
    "The News" is keeping information from you.

    Oh really? But somehow because of your superior intellect you've figured out what no one else can see.

    WOW! We are lucky to have you on the internet.
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    Jun 21, 2014 1:44 AM GMT
    tj85016 said
    Blakes7 saidNo one on this site cares because Obama loves gays so much...


    I like to do my little bit about what's going to REALLY affect their lives instead of the partisan crap on the news


    They'll find a way to blame republicans. The democrat can do no wrong as long as he tells the leftists what they want to hear, so they can feel all tingly.
  • Posted by a hidden member.
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    Jun 21, 2014 1:58 AM GMT
    It is fact that the Yuan is severely undervalued due to Chinese government manipulations. We know what the value of the ruble is (Russian got effed in that deal); we know the value of the £; and we know what Brent crude trades for on the spot and futures markets. The world now has a clearer understanding of just what the Yuan is worth.

    I also think you are looking at this too narrowly. Other geo-political events surround China. The Dragon is freaking the heck out of her neighbors creating a ready supply of US "natural" allies. Her outlier regions are in almost constant rebellious foment that is underestimated by most ppl. Further, as soon as the Yuan is "trued," her inflation rate will soar thus exacerbating her rather fragile economic stability.

    This will only increase the manufacturing movement back to post-Industrial economies. When China's currency is valued fairly, it will no longer be economically feasible for many companies to manufacture their goods there. The biggest winner will be the US. The economic boost this brings will more than pay off the national debt.
  • tango02

    Posts: 71

    Jun 21, 2014 2:08 AM GMT
    Econ 101 - put in layman's terminology

    existence of the petrodollar and the dollar being reserve currency is like working for a corporation where your dad is the president/ceo, you have a tremendous advantage in terms of advancement and higher salary

    abandonment of the petrodollar and the dollar no longer being the reserve currency is like being some regular joe at such corporation with no more likelihood than anyone else getting a promotion or raise