China has been calling loudly for a new world reserve currency for months and months. Many people don’t know because the mainstream media doesn’t report it on the front page or the evening news – you must go to the investment pages to read about it.
The last call was as recent as LAST WEEK”
“China’s Central Bank Renews Call for New World Reserve Currency”
Google for more. you will find numerous reports (weekly) about it.
then two days later …
The original title of this article was “Treasuries Advance After China Says Reserve Policy Is ‘Stable’” and it has since been changed to “U.S. Treasuries Advance Amid Quarter-End Portfolio Rebalancing “. Hmm. The content changed somewhat as well but still covers it in brief
“…Yields fell after Chinese central bank Governor Zhou Xiaochuan said his country is sticking with its foreign-currency reserve policy for now…”
WHY THE SUDDEN REVERSAL? Is it possibly because China will be a major benefactor of cap & trade?
How many of our tax dollars will go to create new jobs and new industries in China?
Consider, for example, what cap & trade does in creating demand for RARE EARTH METALS which are essential for alternative energy technology. As it stands now, we will depend on China to meet the demand to be created by C&T.
“Crunch looms for green technology as China tightens grip on rare-earth metals (May 2009)”
“China’s grip tightens on ‘green’ metals”
“… The rare-earth metal neodymium, used in electric car motors and wind turbines, is at the epicenter of the race between wealthy and emerging nations to create green technologies, while poorer countries appear to be relegated to spectator status. … Neodymium is a lanthanoid, at position 60 on the periodic table of elements for the number of atoms in a single molecule. Its production and wide range of uses reflect the competition over raw materials in the area of green technologies. … Unless production of green technologies is supported outside of China by new mining in North America, Africa and Australia, the only place to manufacture them will be China, predicts Lifton, adding that if China decides not to export those rare metals, there won’t be any other place to obtain them. … ”
For those who jump in here and claim the new industries will be created in America, I ask you: what is the incentive for corporations to develop new industries in America when they can pay slave labor wages in Asia and avoid environmental regulation? Let’s be realistic.
And considering the potential for profit to China, does its unwillingness to cap its own emissions disturb you a little and/or even give you a little pause to question the motivation behind cap & trade?
Hmmm. Maybe this explains it, in part. Hot off the press:
“IMF Board Authorizes Debut Bond Issuance to Fund Aid (Update1)”
Read the article – China is purchasing $50 billion. It seems there is no need to call for end to the dollar as reserve. The IMF activating SDRs as currency marks the final nail in the coffin for the dollar. Its only a matter of time.