9-9-2010 Panorama monetariio .


Yuan Trading Against Russian Ruble Said to Start Within Weeks in Shanghai!

* This is clearly another death knell for the USD. Yuan forex trading for settlement of international trade has already started in Southeast Asia. As much as 66% of international trade is quoted and settled in USD. Because of this demand, the USD is given artificial value. America benefits because the USD has been the world reserve currency. Were it not the case, and the value of the USD purely determined by domestic economic policies, the USD would have collapse a long time ago.

* Of course, the principal international trade in USD is oil. This is the reason why any attempts by oil exporters to sell oil in other currencies always end in war. Remember Iraq? Think Iran now, they are beginning to sell oil in other currencies.

* Settlement of trade in Yuan is good for the world. When the USD collapses, which it will, international trade can still proceed. The interbank forex market is priced in USD, pricing currencies in Yuan will allow the interbank forex market to survive a coming USD collapse. There will be major hiccups though when the USD collapses. So far, the EU has not followed suit and encouraged/allowed settlement in Yuan.

* Having said this, I am not a fan of fiat currencies backed by nothing. You have to be deluded to believe that a piece of paper printed by profligate irresponsible government is worth something! The sheeple will come around and awaken to this confidence job soon.
There will be a currency crisis and a flight towards the safest money of all time: Gold !



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