An Overlooked News Item

61
Tue, Apr 21, 2015 - 9:33am

Look, there are so many things going on in the world that it's easy to overlook, or simply miss, some of the major news items of the day. One such story caught my eye yesterday and it occurred to me that it definitely needed our attention.

The news item in question comes from the Europe edition of China Daily and I found it while scrolling through the links posted at Santa's (www.jsmineset.com). Let's start by giving you the link to the story and posting a full reprint for you to read.

https://europe.chinadaily.com.cn/business/2015-04/18/content_20468392.htm

ROME - The Bank of China's chief economist Cao Yuanzheng feels China's efforts to promote the renminbi (RMB) as an international currency is blazing a new trail in world history.

"I think this is an unprecedented process in economic history," Cao said in an exclusive interview with Xinhua on the sidelines of the "RMB: Going Global. The Bank of China Renminbi Internationalization Forum".

Renminbi development may be unprecedented but carefully mapped out nevertheless. In his remarks during the forum, Cao said the process has its roots back in the 1990s, and the veteran economist said he still believed it would take several more years for the level of international convertibility of the currency.

"I now think we can speak in terms of years and not decades," Cao said. "I cannot predict the time table, but I think we'll get there before 2020."

He said that when it happens, it will be a positive development not only for China but for the world.

"Yes, there are benefits for China but we believe it is also good for the world," Cao said. "There is deep need for another strong world currency (aside from the dollar and euro, the most used international currencies). For China, I would say there it is more of a challenge than a benefit."

Cao called for reform of the current international monetary and financial order, which dates back to the 1944 Bretton Woods Conference, which divided the world among the lines of developed and developing countries.

Cao noted that that dichotomy is now outdated, as evidenced by the fact that China, with the world's second largest economy, is a developing country. All told, three of the world's 10 largest economies are economies in transition.

"The international governance of the world financial system needs reform," Cao said.

"There are major shortcomings, since it was developed when there was a very big gap between developed and developing countries. Now, about 50 percent of the world's gross domestic product is in the developing world. So it's clear the system needs some reform. And using the renminbi as an international currency can be part of this necessary reform," he said.

The "RMB: Going Global" forum was held specifically to promote the use of the renminbi as an international currency, for trade, as a reserve currency, and for cross-border payments.

The forum featured multiple high-ranking speakers from the Bank of China, the oldest financial institution in the country.

Having now read this yourself, I think you can see why I found this to be so significant. If not, allow me to parse a few sentences for emphasis and to bring them to your attention.

  • "The Bank of China's chief economist Cao Yuanzheng". Don't confuse this with the Chinese Central Bank, the People's Bank of China. The Bank of China is, instead, one of China's largest commercial banks. (https://www.boc.cn/EN/) Regardless, you don't become chief economist at one of China's largest banks without having some pretty solid connections in Beijing.
  • "RMB: Going Global. The Bank of China Renminbi Internationalization Forum". Did you even know that this forum was held in Rome last week? I didn't! One would think that this would have been a newsworthy event for the "western" press but one would be wrong in that assumption. I didn't see any coverage of it anywhere.
  • "Renminbi development may be unprecedented but carefully mapped out nevertheless". How many times have we discussed the Long Term Chinese Plan. These folks think in decades and centuries, NOT days and weeks. "Carefully mapped out". No doubt about that. Very likely mapped out, almost to the day.
  • "The veteran economist said he still believed it would take several more years for the level of international convertibility of the currency. "I now think we can speak in terms of years and not decades," Cao said. "I cannot predict the time table, but I think we'll get there before 2020". Here's your money shot. Read that again to be certain you absorb it. "Years, not decades". "Before 2020". This is NOT some pie-in-the-sky, hair-brained gold bug conspiracy theory and we're NOT talking about 25-50 years from now. "Before 2020". I'd say that's a pretty important revelation.
  • "The international governance of the world financial system needs reform," Cao said. And which country provides this "international governance"? And through which organizations is this "governance" meted out? So, have you heard much discussion lately about something called the Asian Infrastructure Investment Bank (AIIB)? Do you now begin to see what all of the hubbub is about?
  • "It's clear the system needs some reform. And using the renminbi as an international currency can be part of this necessary reform," Cao said. The renminbi as an "international currency". There's that term again. And what does that mean? See the last bullet below.
  • "The "RMB: Going Global" forum was held specifically to promote the use of the renminbi as an international currency, for trade, as a reserve currency, and for cross-border payments." Well, there you go. The forum was held specifically to promote the use of the RMB as a reserve currency. Specifically. To promote the use. Reserve Currency. And, again, Mr. Cao doesn't see this by the year 2055. He now thinks this occurs before 2020.
  • So there you have it. Brush this aside if you want. Go ahead and keep your head buried in the sand along with the rest of the Status Quotians who can't even begin to imagine a tomorrow that isn't exactly like yesterday. Here at TFMR, though, we will continue to prepare for the eventuality of these changes. And if you're still wondering what the heck this has to do with owning gold, I'll leave you with one other clue that the Chinese and The Bank of China have left hiding in plain sight:

    Prepare accordingly,

    TF

    www.tfmetalsreport.com/freetrial

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      61 Comments

      Refresh
    benque
    Apr 22, 2015 - 9:15am

    Washing dishes

    In Russia? In China? How about Mexico, or Brazil? Quite a dramatic reversal of the old "send me your poor..............". Devil's Island becomes the new Ellis Island? Ouch!!!

    lnardozi
    Apr 22, 2015 - 8:40am

    re: I think it's just a way to make you comply

    That's my main reason for stacking. At any time, one of literally tens of thousands of people can click a mouse a couple of times and bam! You're broke. Bank accounts all frozen, wages garnished, retirement accounts held, properties have liens attached, car/boat/etc repossessed, locked out of your own house and safe deposit boxes seized.

    Don't say it can't happen to you (not you, Flyinkel) because it can. And even if it can't - say you come home one day and your wife is fighting off a rapist. You off him, and if you're not living in Florida, you now have a very large problem. These are just two of hundreds of examples why it might be necessary some day to start a new life. Will you be able to do so in comfort, or will you have to spend 20 years washing dishes to get back to where you are now?

    flyinkel
    Apr 22, 2015 - 12:00am

    I think it's just a way to make you comply

    As soon as everything is digital if they don't like what you are doing they will simply deny you access to your money. Press a button and your "banking irregularity" will show up, that simply can't be ironed out, "no matter what they try to do". It's the ultimate control weapon and they know it; it is absolutely essential to keep the present powers in control, and they know this too...hence the recent discrediting/blatant labeling of anyone that wants to hold cash. Notice the propaganda spiel; you are not a concerned citizen if you hold cash, you are a suspected drug dealer. This meme will be played for all it's worth.

    stealthbear
    Apr 21, 2015 - 9:44pm

    No cash...

    Makes it a foolproof way to take money from your bank account via bail-ins and negative interest rates. They can't do that when the cold cash is in your hands. Bastards!

    lund175bp9291
    Apr 21, 2015 - 9:08pm

    I got a opinion on no cash

    Excuse the language but it's bullshit. This is getting out of hand, rules & regulations, fines & penalties. Can't do that, have to do this.

    I truly believe the U.S. is headed for a full dictatorship on a extreme level. Just like you see in the movie's.

    Might not be next month or next year but it is coming.

    lund175James Crighton
    Apr 21, 2015 - 9:00pm

    I agree, Ron Paul should

    be or should have been president, but the ptb would not have it. The media would not have it as they railroaded the guy because they know that he is against the system. Anyone even close to acting like Paul would not have a chance as well. If they do not play ball they will not be allowed on the team.

    That simple.

    Apr 21, 2015 - 8:27pm

    ZH on China gold

    Good coverage/analysis of a story we discussed in detail yesterday: https://www.zerohedge.com/news/2015-04-21/mystery-chinas-gold-holdings-c...

    Apr 21, 2015 - 4:39pm

    More Missouri Ugh

    Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

    Dyna mo hum
    Apr 21, 2015 - 4:38pm
    Blankone
    Apr 21, 2015 - 4:27pm

    SilvaDoc

    You know I used to go to SilverDoctors but have completely took them off my favorites bar. Got tired of them bashing Turd and the same old pictures over and over on their articles. Too many imbeciles commenting over there and it just got to the point like Popeye= Thats all I can stands cause I cant stands no more...Besides this site is hands down the best on the net. !!!

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