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The plan to remove the US dollar as the world’s reserve currency is largely ignored in the United States. But not in the rest of the world. Russia is the main instigator (or facilitator depending on your viewpoint) in this effort. Putin’s successful overtures to China initiated the move to bring India into the fold. Now Germany is turning its back on the US. Or Obama.
A case could easily be made that the world’s current state of resentment towards the United States is the result of the Obama administration’s actions and positions. How much damage has been done will become apparent in the near future but the world’s leaders and media are no longer supporting this child pResident. Will the collapse of the dollar and the evaporation of people’s wealth become the catalyst to stand up to tyranny? I can only hope.
David DeGerolamo
China & Germany Sign Yuan-Settlement Pact
I haven’t paid too much attention as of late to agreements between China and other nations intended to expand the use of the yuan (renminbi) internationally, because the near-term implications always seem to be exaggerated by many market commentators. That said, this deal between the People’s Bank of China (PBOC) and Germany’s Bundesbank seems quite significant given the importance of Germany within the global economy generally and the E.U. specifically.
From Bloomberg via BusinessWeek:
Germany’s Bundesbank and the People’s Bank of China agreed to cooperate in the clearing and settling of payments in renminbi, paving the way for Frankfurt to corner a share of the offshore market.
The central banks signed a memorandum of understanding in Berlin today, when Chinese President Xi Jinping met German Chancellor Angela Merkel, the Frankfurt-based Bundesbank said in an e-mailed statement.
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