by Simon Black
When I arrived to Bangkok the other day, coming down the motorway from the airport I saw a huge billboard—and it floored me.
The billboard was from the Bank of China. It said: “RMB: New Choice; The World Currency”
Given that the Bank of China is more than 70% owned by the government of the People’s Republic of China, I find this very significant.
It means that China is literally advertising its currency overseas, and it’s making sure that everyone landing at one of the world’s busiest airports sees it. They know that the future belongs to them and they’re flaunting it.
And it’s true. The renminbi’s importance in global trade and as a reserve currency is increasing exponentially, with renminbi trading hubs popping up all over the world, from Singapore to London to Luxembourg to Frankfurt to Toronto.
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If people understood the ramifications to federal reserve dollars, there would be bank runs and panic in the streets. Got renminbi? Got gold? Got faith?
David DeGerolamo
This is just a huge balls of steel move by the Chinese. The Renminbi is no stronger than the dollar and their debt to GDP ratio is just as ridiculous as ours. But they have done a better job of hiding that. Time will tell if they pull this off. As long as the US can pressure the Saud’s with cheap oil……and we are seeing that game play out right now….the US still has clout. Energy is the single biggest resource controlling currency so we ain’t dead yet.
Energy is freedom. Seriously. The cheaper the cost of energy is, the more freedom we have. So think about this: the more energy costs, the less freedom we have. Obama killed oil production in the Gulf and now the Keystone pipeline. Fracking is the worst thing to happen according to Democrats and greenies. North Dakota is the only bright spot in domestic energy production because the government can’t control it. The government will never allow us to have cheap energy.
The US free market (not the government) is pressuring Saudi Arabia with increased production. In turn, Saudi Arabia (and others) have dropped their price in order to drive our producers into bankruptcy. The oil industry in California, Texas and North Dakota will be destroyed in a few more months by this strategy. The idea of the US having clout is debatable.