Thunderhawk: They know it’s comming ! Diamonds are a girls best friend !
Mountainman: Well…..In the New Reality that Require Hard ASSETS……Yes I can See WHY their PRICES are Adjusting Upward…..Real Estate being sucked Up Currently like Frank and His COOKIES…..LOL…..So Now they take Advantage “Knowing” WHAT’S Around the Corner…..IMO Blessings,Mountainman (8)=New Beginnings
BACKDOC: OBVIOUSLY THE DEBEERS FAMILY IS LISTENING TO CHRISTINE LEGARDE! HEE HEE
WHY ELSE WOULD THEY BE RAISING PRICES WHEN COMMODITIES AND WORLD ECONOMIES ARE UNDER PRESSURE?
COULD IT BE THAT A WHOLE LOT OF NEW RICH FOLKS WILL BE SHOPPING SOON? MMMM DOC IMO
Thunderhawk: Backdoc Alert…..
De Beers Said to Raise Diamond Prices for First Time Since 2014
De Beers raised diamond prices for the first time in more than a year in a sign the industry may be recovering from the biggest slump since the 2008 financial crisis.
The biggest producer, a unit of Anglo American Plc, raised prices as much as 2 percent in a sale this week, according to three people familiar with the process. The ongoing sale may be comparable in size to De Beers’ prior $610 million offering of rough diamonds, said the people, who asked not to be identified as the information isn’t public.
Slowing demand from China and an industry-wide credit crunch led De Beers to lower prices about 15 percent last year. While the company, along with rival Alrosa PJSC, responded by cutting off supply to try to support the market, prices fell a further 7 percent in January. A spokesman for De Beers declined to comment on the latest sale.
Banks such as Liberum Capital Ltd. remain skeptical that a price rebound can be sustained and demand gains are anything more than cutters, polishers and traders replenishing supply. Liberum said last month that it might take at least another year to recover, while miner Gem Diamonds Ltd. said it’s still to early to tell whether a recovery will stick.
De Beers, which doesn’t reveal details of its sales, last raised prices in the second of half of 2014, according to one of the people.
The company, which offers diamonds at 10 sales a year known as sights, offloaded $540 million of gems in January and $610 million in February. Alrosa sold about $780 million in its first two offerings of the year.
http://www.bloomberg.com/news/…..since-2014
************
Mountainman: A Yah……….They Better be Cozy…..The GOLDEN TRIANGLE has {NO SEPARATIONS} Right???…..$$$….Like the Bermuda TRIANGLE=Once Your In……You DON’T Come Back OUT……Yikes…..IMO Blessings,Mountainman (8)=New Beginnings
Walkingstick: Russia cancels the banking embargo on Iran
07.04.2016 14:45 •
[Where – Follow – up] Foreign Minister Sergei Lavrov during a meeting with his Iranian counterpart , Mohammad Javad Zarif , his country ‘s support for Iran ‘s full accession to the Shanghai Cooperation Organization, said: Russian President issued an order on the abolition of banking embargo on Iran.
He met Zarif , who is visiting Baku to his Russian counterpart , Sergei Lavrov , the two sides discussed bilateral cooperation in various fields and regional and international issues.
Zarif cited the growing ties between Iran and Russia , stressing the need to strengthen the banking and consular cooperation bilaterally to facilitate cooperation between Allbidin.
He pointed to the evolution in the field of enhancing economic co – operation and the reduction of customs tariffs and facilitate customs regulations between the two countries, describing the Russian – Iranian agreement to find agreen corridor of customs inspired noting at the same time and there are many areas to enhance cooperation between the two countries.
http://www.alliraqnews.com/modules/news/article.php?storyid=34986
**************
BACKDOC: WITH QE NOT WORKING WELL ANYMORE, IT APPEARS TO BE A BACKSTOP UNTIL THE STRUCTURAL REFORMS ARE ACTIVATED LIKE CHRISTINE SAYS!
YES THE IMF IS ON ALERT! FOR WHAT? FOR SOMETHING OTHER THAN QE AND INTEREST RATE CHANGES! SOMETHING OF A STRUCTURAL NATURE! MMMM
WITH NO GROWTH IN THE WORLD ECONOMIES WE ARE A BREATH AWAY FROM IMPLOSION! WHAT IS IT THAT IS STRUCTURAL IN NATURE THAT EMERGING COUNTRIES CAN DO TO ACTIVATE? MMMM
WOULD INCREASE PURCHASING POWER CHANGE THINGS? HEE HEE DOC IMO
THUNDERHAWK: #4 QE is not working anymore ! Hello POP the cork !
Don961: like a monetary reform of some type CL ????? ………for life to thrive , there must be movement …..Thanks DOC
Thunderhawk: Backdoc Alert
Japan Is Fast Approaching the Quantitative Limits of Quantitative Easing
The Bank of Japan is running out of government bonds to buy.
The central bank’s would-be counterparties have become increasingly unwilling to sell the debt that monetary policymakers have pledged to buy, and the most recently issued 30-year Japanese bond didn’t record a single trade during a session last week as existing owners opted to hoard their holdings.
The central bank in the land of the rising prices sun has set a target of 80 trillion yen ($733 billion) in government bond purchases per year in its continued attempts to slay deflation, an amount that’s more than double the pace of new bond issuance planned by the Ministry of Finance and about 16 percent of gross domestic product.
But safe assets like government debt aren’t just attractive to central banks looking to force investors into riskier asset classes and push down the cost of borrowing or to pensioners looking for a reliable source of income—they’re also in high demand by financial institutions for use as collateral.
That’s because where there is a dearth of safe assets, there is also an incentive and tendency for them to be manufactured; that is, improperly labeled as such. Past results certainly haven’t been pretty.
As the Bank of Japan begins to rub up against the technical constraints of its asset purchase program, Jefferies Group LLC Chief Global Equity Strategist Sean Darby proposes a radical solution: consolidate some of the Bank of Japan’s existing holdings of debt into a perpetual bond—that is, one with no maturity and therefore no principal repayment—with a coupon of zero.
“There is a growing realization that there are effective limits to how much more Japanese government bonds can be acquired,” he writes. “The BoJ is approaching a shortage of Japanese government bonds for the central bank to buy, as commercial banks, pension and insurance funds have run down their holdings.”
Darby cited a working paper from the International Monetary Fund which concluded the collateral needs of financial institutions were such that the Bank of Japan might be forced to begin tapering its purchases of sovereign debt in 2017 or 2018, to bolster his case.
The thinking here is that as the Bank of Japan reaches the quantitative limits of quantitative easing, the issuance of such a perpetual bond that costs nothing to service would be a way to offer the government a blank cheque to proceed with fiscal stimulus such as boosting spending or cutting taxes.
The strategist believes the Bank of Japan will drop hints about its intention to pursue such a plan at its April meeting.
The Bank of Japan’s decision to shock investors and adopt a negative rate regime in January—one week after Governor Haruhiko Kuroda said such a move wasn’t needed at the time—was spurred by a desire to push yields at the longer end of the curve as low as possible in preparation for the consolidation of existing debt into a zero coupon bond, according to Darby.
“The authorities are attempting to push bond yields down below existing nominal GDP, so that the existing debt can be converted or ‘consolidated’ into a perpetual zero coupon bond presumably before any ‘tapering announcement,'” he writes.
Whether this extreme step will ever be taken—in particular on the timetable the strategist suggests (i.e. ahead of the elections scheduled for this summer)—is highly questionable.
But Darby’s suggestion does underscore that with Japan unable to declare ‘mission accomplished’ on its quest for reflation and a shortage of bonds looming, it’s time to consider Plan (perpetual) B.
(Corrects scope of purchases relative to issuance, GDP in third paragraph, adds currency conversion.)
http://www.bloomberg.com/news/…..ive-easing
************
Thunderhawk: and the blockade continues ! sorry US this is a members ONLY club and your not invited ! Republicans offer bill ? Yeah right ! WE know better than that don’t we Family?
BACKDOC: WITH EVERY COUNTRY ON THE PLANET NOW ENGAGING WITH IRAN THIS IS NOTHING MORE THAN FLUFF OR DRAMA IMO!
ON ONE HAND WE SEE IRAN COOPERATING NICELY WITH THE U.S. ON PREVENTING THE ABADI OVERTHROW AND WE DO THIS? MMMM
COULD IT BE THEY ARE JUST PROTECTING IRANS MONETARY REFORM? LET’S SEE WHAT HAPPENS AFTER A RATE SHOWS UP! HEE HEE DOC IMO
Thunderhawk: Backdoc Alert
Republicans offer bill to block potential Iran dollar use
Two Republican U.S. senators who oppose the nuclear agreement with Iran introduced a bill on Wednesday that would keep Iran from gaining even indirect access to the U.S. financial system or using U.S. dollars in business transactions.
The measure introduced by Senators Mark Kirk and Marco Rubio came amid media reports that U.S. officials were moving toward allowing such transactions. President Barack Obama has denied having such plans.
The legislation would prohibit the president from issuing any license for conducting an offshore U.S. dollar clearing system for Iranian transactions or providing any such system with U.S. dollars.
It also would impose secondary sanctions on any financial institution found to be participating in any offshore dollar clearing system with Iran.
State Department spokesman Mark Toner acknowledged the United States was advising banks and other businesses about how to conduct business with Tehran without running afoul of U.S. authorities, but that does not involve converting money to dollars.
“These banks don’t want to violate existing sanctions,” he said, “but they are allowed to under certain condition to do business with Iran, so we do consider it as an obligation on how to counsel them.”
Along with some of Obama’s fellow Democrats, congressional Republicans unanimously opposed the deal announced in July in which Iran agreed to scale back its nuclear program in exchange for sanctions relief.
Several lawmakers have been working on legislation since to keep tight controls on Iran, especially over its repeated ballistic missile tests since late last year.
U.S. Representative Ed Royce, the Republican chairman of the House Foreign Affairs Committee, published a column in the Washington Post on Wednesday saying Obama was so eager to preserve a signature foreign policy agreement that he would consider measures that would let Iran “launder dollars while the administration looked the other way.”
The issue is particularly potent in this U.S. election year, when Americans will pick a new president, and every member of the House and one-third of senators are up for re-election. The three remaining Republican presidential candidates have all vowed to tear up or back away from the nuclear deal, which Obama administration officials say would be calamitous.
Rubio suspended his 2016 presidential campaign last month, and Kirk’s Senate re-election race is seen as one of this year’s most competitive.
http://www.reuters.com/article…..SKCN0X32LF
****************
Thunderhawk: WOW – Where did this come from? ANYTIME?
DOC come on Brother you got to say somthing about this !
BACKDOC: IN LIGHT OF CHRISTINE’S COMMENTS THE MARKET COULD GET AN APRIL SURPRISE! HEE HEE TIME WILL TELL.
SHE SAID THE IMF WAS ON ALERT NOT ALARM! IF WE SEE A STRUCTURAL RATE CHANGE FOR CERTAIN EMERGING COUNTRIES, THE WORLD ECONOMIES WILL BE OFF TO THE RACES AND THE FED MAY PULL THE TRIGGER ON A RATE HIKE! DOC IMO
Mountainmaan: Sheesh HAWK……The {HITS} are Playin TODAY……I take this as….We are MOVING FORWARD……w/ A New Global Paradigm Shift ……and We Are (READY) at {ANYTIME} to do So !!!!!!!!……..IMO
(8)=New Beginnings,Indeed……..for TOMORROW is the 8th……Hmmmm
Thunderhawk: Backdoc Alert
Fed ‘reserves the right’ to raise rates at any time: Bullard
The Federal Reserve could raise interest rates at any meeting, or even in between meetings, St. Louis Fed President James Bullard said on Wednesday.
“I am not saying I’m planning on that or anything but the committee certainly reserves the right to make a move at any time,” he said in a Bloomberg Radio interview.
“We debate at all meetings. I think all meetings are live meetings, there’s no other way to think about it.”
http://www.reuters.com/article…..SKCN0X32GZ
BACKDOC: SEE WHAT I MEAN? THEY ARE LOOKING FOR SOMETHING MORE STRUCTURAL NOT JUST MORE STIMULUS!
Mountainman: Don’t YOU Worry BULLARD…..Because You Are About to RECEIVE…..What You have Conceived in Your MIND…….A LAUNCH is “Not to Far AWAY”…….IMO
Thunderhawk: Backdoc Alert
U.S. needs long-term growth plan, not more stimulus: Fed’s Bullard
The United States needs a long-term economic plan including tax and education reform to revive growth, not rely on more monetary or fiscal stimulus for a short-term boost, St. Louis Fed President James Bullard said on Wednesday.
“The U.S. needs a medium-term growth strategy that is less oriented towards stabilization policy, stimulus, and is more oriented to what kinds of things would improve the long term and medium term growth prospects,” Bullard said. “Tax reform is in that category. Education reform is in that category. Immigration reform is in that category. There are a host of things that would not have immediate impact…but if you look out five to ten years would have handsome payoffs.”
Bullard has been concerned about that possibility that monetary policy has lost its punch after years stuck near zero. He spoke at an economic address at the St. Louis Fed.
http://www.reuters.com/article…..SKCN0X32GV
Mountainman: Interesting WS…….The HISTORY of De La RUE……And Their {PRINTING DEALS}…..Around the (TIME FRAME) of Executive Order #13303…..
W/Iraq’s DINAR being Printed Shortly thereafter!!!!!!!…………
ALL is ALWAYS {PLANNED} in Advance Prior to it’s Implementation…..{THINGS}…..Have “BEEN” ……Shall We say, In the WORKS……and WHAT a DEAL they Made…….Hmmm
Blessings,Mountainman (8)=New Beginnings
Walkingstick: Panama Papers: Currency maker De La Rue offered payoff for its India deal De La Rue authorised 15% commission to agent in India.
The world’s largest commercial banknote maker, De La Rue, had contracted a New Delhi businessman to help it bag tenders in India in return for a 15 per cent commission, besides significant amounts as out-of-pocket expenses towards marketing services, Mossack Fonseca (MF) papers accessed by The Indian Express show.
De La Rue International Limited, trading as Portals, entered into an Agency Agreement with Aphra Consultants SA on April 1, 2002, through which Aphra was appointed non-exclusive consultant to introduce business opportunities for De La Rue in South East Asia, including India.
Aphra was an offshore entity based in Panama and its final beneficial owner was Somendra Khosla, whose address is specified in the MF papers as D-984, New Friends Colony, New Delhi 110065. Portals, which has been supplying banknote paper to the Bank of England since 1724, was acquired by De La Rue in 1995. The agreement was in effect at least until June 2008, the MF papers show.
On August 15, 2002, four-and-a-half months after the Agency Agreement was signed, De La Rue Managing Director James Hussey wrote to Aphra, amending the agreement to allow Portals to authorise a payment of £ 500,000 (Rs 3.74 crore @ Rs 74.82 to a pound as on August 15, 2002) to the company.
“In recognition of the significant costs incurred since the last banknote paper tender was held in India (traveling to and from Europe, sales conferences, marketing brochures, etc), Portals is prepared to authorise a payment of UK Pounds 500,000 at a mutually agreed time,” Hussey said in the letter.
On April 1, 2003, the terms of the Agency Agreement were renewed by De La Rue’s Director of Sales Michael Wilkinson, providing for a 15 per cent commission to Aphra for an initial order of goods from a customer after the payment had been made.
In subsequent years, De La Rue bagged several tenders floated by the Reserve Bank of India for the supply of banknotes — which are referred to as “India Banknote Contract 2003” and, in another instance, as “second part (2005) of the India Banknote Paper Contract” in the internal board meeting memos of Aphra Consultants SA.
The Portals-Aphra Agency Agreement of April 1, 2003, which sets the terms of engagement, mentions only the name of the company (Aphra). But the certificate of incumbency available in the MF files shows that the ultimate beneficial owner of Aphra, at least until September 2009, was Somendra Khosla.
In July 2010, De La Rue messed up an order for high-quality banknote paper from RBI. The following month, its MD, James Hussey, under whose watch the Agency Agreement was signed with Aphra in April 2002 and who had amended the agreement to authorise an extra payment of £500,000 to Aphra in 2002, quit.
The Indian Express physically verified Khosla’s New Friends Colony address. When first contacted 10 days ago, he said he was on vacation and would respond during the weekend. When contacted again, Khosla said, “I don’t want to share any information. We do not share business information.” A detailed email sent to him on March 28 and couple of text messages subsequently did not elicit a response.
An email was sent to Brunswick (Financial PR), listed as a media contact for De La Rue, on March 28, and again on April 1. Three days later, Eden Yates, a Brunswick Group executive wrote back, “Thanks again for getting in touch with us. We are still looking into this and will get back to you in due course with our response, but as you know, your queries relate to a period some years ago.” Brunswick Group did not respond to the queries until Tuesday evening.
Incidentally, Khosla, though the beneficial owner of Aphra Consultants, entered into a loan agreement with the company on March 31, 2004, to borrow $ 900,000 (Rs 4.05 crore @ Rs 45.02 to a dollar on that date) at an interest rate of 2 per cent. The Aphra board approved the agreement. The same day, in a board meeting, the directors noted that Aphra had sufficient reserves, and recommended an interim distribution of $ 200,000 (Rs 90.04 lakh @ Rs 45.02 to a dollar) to Dome Services FZC. The board also empowered Khosla to sign and execute for and on behalf of Aphra all necessary documents to acquire real estate in Dubai, and make other investments that would yield income and capital.
The 2003 Portals-Aphra Agency Agreement forbade Aphra from acting as an agent of any third party, i.e. a rival to Portals (De La Rue), and from manufacturing and selling competing goods for the duration of the agreement and up to a year after its termination. Aphra was to forward all enquiries to Portals, actively support its sales effort and after sales services, maintain good relations with customers, and provide market information.
The Agreement also required Aphra to achieve three specific targets: incorporate Starchrome into the imminent banknote paper tender, ensure the tender was launched before December 2003, and support Portals in winning 50 per cent of the tender. The agreement offered a 15 per cent commission for an initial order of goods from a customer, to be paid once the customer made the payment.
The Agreement was to end on April 1, 2006, or with the expiry of the expected India Banknote Contract (2003), whichever was later. At a meeting on March 31, 2006, the board of Aphra, however, resolved to amend Clause 4 of the Agreement to say it shall terminate on June 30, 2008, or with the expiry of the second part (2005) of the India Banknote Paper Contract, whichever was later. This suggests that the Agency Agreement between De La Rue and Aphra was alive at least until June 2008.
Money Deal
Apr 1, 2002: Agency Agreement signed between Aphra Consultants SA and De La Rue International Limited trading as Portals.
Aug 15, 2002: De La Rue Managing Director James Hussey amends agreement and authorises Portals to pay £ 500,000 to Aphra towards marketing, travel expenses, etc.
Apr 1, 2003: De La Rue Director of Sales Michael Wilkinson renews Agency Agreement, to terminate on April 1, 2006.
Aug 6, 2003: Aphra board authorises company to act as non-exclusive consultant to Portals. Teewareesing Gopal authorised to execute Agency Agreement on behalf of Aphra.
Mar 31, 2004: Somendra Khosla enters into a loan agreement with Aphra Consultants. Borrows $900,000 at an interest rate of 2%. Directors note that Aphra has sufficient reserves and recommend an interim distribution of $ 200,000 to Dome Services FZC. Board also empowers Khosla to sign and execute for and on behalf of Aphra all necessary documents to acquire real estate in Dubai and make other investments.
Mar 31, 2006: Aphra board resolves that Clause 4 of Agency Agreement of April 1, 2003 be amended to state that the Agreement shall terminate on June 30, 2008, or with the expiry of the second part (2005) of the India Banknote Paper Contract, whichever is later. Vimla Ramasamy, the Company Secretary of Jupiter Management (Mauritius) Limited, fully authorised to act for and on behalf of Aphra for the execution of the amended Clause 4 of the Agency Agreement dated April 1, 2003.
Feb 10, 2009: Certificate of Incumbency dated February 10, 2009, continues to show Mossack Fonseca Legal Services as the Registered Agent of Aphra Consultants SA. Beneficial owner of Aphra Consultants is Somendra Khosla.
Sep 7, 2009: Aphra Consultants board resolves to shift domicile of company from Panama to Seychelles.
Response from the De La Rue spokesperson:
“This article refers to events that took place many years ago and the individuals mentioned have long since left the business. De La Rue does business to the highest ethical standards. We require our business partners to do the same, including compliance with national and international tax legislation. These relationships are reviewed continuously, and failure to meet the required standards will result in immediate termination of the relationship by De La Rue.”
http://indianexpress.com/artic…..ndia-deal/
*************
Mountainman: Hurry,Hurry,HURRY…….UNWTO/…..WTO…….IRAN……June is Around the “CORNER”……and They feel the Need…..The NEED for SPEED….w/Good Reasons…….IMO
Thunderhawk: 6th int’l Silk Road meeting to be held in Iran by end of April
A senior cultural official said here Thursday that the 6th meeting of the United Nations World Tourism Organization (UNWTO) Silk Road Task Force is slated for April 22-25 in this northwestern Iranian province.
Jalil Jabbari, head of the province’s cultural heritage, handicrafts and tourism organization, said 35 countries are to attend the Silk Road meeting.
The Silk Road or Silk Route is an ancient network of trade routes that were central to cultural interaction through regions of Asia connecting the West and East.
The UNWTO Silk Road Programme is a collaborative initiative designed to enhance sustainable tourism development along the historic Silk Road routes.
According to the UNWTO website, it aims at maximizing the benefits of tourism development for local Silk Road communities, while stimulating investment and promoting the conservation of the route’s natural and cultural heritage.
Additionally, it is working to foster greater cooperation between Silk Road countries and regions, with the established aim of creating a seamless and memorable Silk Road travel experience.
http://www3.irna.ir/en/News/82025654/
************
Mountainman: BREXIT…….Stage RIGHT EVEN…….Now…..We See “EVERYONE READY”…….From The EAST to the WEST…….It’s A GLOBAL EVENT……Remember that…..and ALL had to be Positioned for the TRANSITION……but You can’t just {SPRING IT} on the WORLD
it has to be “CHOREOGRAPHED” w/Precision…..and that’s WHAT we see W/IRAQ/IRAN /CHINA/JAPAN/the EU/USA……Etc……WOW
Thunderhawk: Backdoc Alert
JPMorgan’s Dimon warns of economic trouble from Brexit
Jamie Dimon, CEO of JPMorgan Chase & Co (JPM.N) warned on Wednesday that years of economic uncertainty would be the “best case” outcome from a decision by Britain to leave the European Union.
Writing in his latest annual letter to shareholders, Dimon said the economies of the U.K. and E.U. states would be hurt even if Britain managed to quickly renegotiate hundreds of trade and other contracts following an exit. The “bad scenario” would include trade retaliation against the U.K. by E.U. states.
Voters in Britain are to go to the poles in June on whether the U.K. should leave the E.U.
http://www.reuters.com/article…..SKCN0X32QR
*************
Mountainman: CHINA/USA….SIAMESE “DEBT” TWINS……The TWO Largest Economies will Remain On TOP…..IMO…..but as We SEE Both DEBT Ridden and Over LEVERAGED…..NEW VALUES and NEW TRADE AGREEMENTS=TPP ,The NEW SILK ROAD etc…. will set the NEW FOUNDATION for Both and ASSET BACKED VALUES Await…..
but…..the TRANSITION is A Reality of Tumultuous CHANGE……and in said “Change”….the DOLLAR {Must} lose Value before it GOES Up in VALUE…….CHINA…..Likewise…..IMO
Blessings,Mountainman (8)=New Beginnings
Thunderhawk: Growing US Debt to ‘Hasten Demise’ of Dollar as World Reserve Currency
Career diplomat and Council on Foreign Relations President Richard Haass claims that the growth of the public debt in the United States, now approaching $14 trillion, could cause the US dollar to lose its global reserve currency role.
The growth of the public debt in the United States, now approaching $14 trillion, could cause the US dollar to lose its global reserve currency role, career diplomat and Council on Foreign Relations President Richard Haass said on Wednesday.
“Mounting debt will hasten the demise of the dollar as the world’s reserve currency,” Haass told members of the US Senate Foreign Relations Committee in testimony on the strategic implications of the US debt.
Haass warned that a “post-dollar world” will be more financially costly for the United States and will negatively impact the country’s political leverage to impose dollar-related sanctions.
Since the end of World War II, the US dollar has been the dominant currency in world trade. At the end of 2015, the Chinese yuan was included in the International Monetary Fund’s basket of currencies, a critical determinant of world currency valuations.
Haass argued that the demise of the US dollar would occur as a result of a “loss of confidence in US financial management.”
Such development can come because of concerns about the ability of the United States to do “what it should be doing to manage the US and indirectly world economy,” Haass explained.
The inability of the United States to handle its massive debt load will “detract from the appeal” of the US model, making the world “less democratic and… less deferential to US concerns in matters of security, Haas added.
According to Congressional Budget Office estimates, the US public debt stands at approximately 75 percent of the country’s gross domestic product.
http://www.ooyuz.com/geturl?aid=11124101
Mountainman: Well Hello CHINA/USA/EUROPE……A decision was Made because A REALITY to CHINA’S Inclusion and NEW Contributions to the GLOBAL ECONOMY were Needed…..
W/The New Rules they can’t Cheat Anymore…..and Everyone knowing “WHAT” their Currency will bring to this New Monetary {SHIFT}…..was No DOUBT was WHY J.LEW and O made Trips and Deals Along the Way 2 Years Ago w/ CHINA as well…..
IMO……and Thus, There are NOW Mutual “Understandings” between us and them……and the EU is Foreseeing a MAJOR Addition to their PORTFOLIO……just like We would do…..=STRATEGY…..Not to Mention if/When the EURO goes SOUTH…..they Now have Another Back Up/SUPPORT Reality w/ their Individual New Values and The YUAN……IMO
Blessings,Mountainman (8)=New Beginnings
Thunderhawk: BIG ALERT
Europe’s ‘Romance With Renminbi’: What Are the Chances for Success
The central parity rate of the Chinese yuan, or renminbi as it’s also known, weakened 91 basis points against the US dollar on Wednesday with analysts forecasting its further weakening by the end of the year; however, this has not prevented the West – and Europe in particular – from doubling down on the currency… let’s have a look why.
The central parity rate of the Chinese currency weakened 91 basis points to 6.4754 against the US dollar on Wednesday, according to the China Foreign Exchange Trading System.
An HSBC currency analyst suggests further depreciation of the currency towards 6.9 against the US dollar by the end of the year. However, this has not prevented the West – and Europe in particular – from doubling down on the currency.
Asia market analysts Miguel Otero-Iglesias and Nicola Casarini have explained what lies behind Europe’s investment in the renminbi.
“When the International Monetary Fund announced in December that the renminbi would join the US dollar, the British pound, the euro, and the Japanese yen in the currency basket underlying its unit of account, the Special Drawing Rights (SDR) basket, the decision was clearly political,” reads their analytical article on the issue on the website Project Syndicate.
Even though the currency performs well and its internationalization is sustaining, the authors explained that its inclusion in the SDR “owes much to the decision by the US to defer to Europe.”
“The US had argued for years that the renminbi should be included in the SDR only if China opened its capital account, let its currency float freely, and had a more independent central bank. None of this has happened,” the analysts note.
“But after China established the Asian Infrastructure Investment Bank with the support of Europe, the US agreed to drop its objections. After all, the SDR basket plays a minor role in global finance, and admitting the renminbi was seen as a small price to pay to keep China embedded in the Bretton Woods institutions,” the authors say.
Europe’s investment in the renminbi, they suggest, goes far beyond political symbolism.
“The currency’s inclusion in the SDR, it is hoped, will encourage China to liberalize its capital account further,” the analysts suggest.
Europe would also like to welcome the country to the core group of world powers that decide global monetary affairs.
“British Chancellor George Osborne has made it clear that he would like the City of London to be the most important offshore market for renminbi trading and services. It was no coincidence that during President Xi Jinping’s state visit to the United Kingdom in October 2015, China chose London to issue its first overseas renminbi sovereign debt,” the authors suggest.
“The rest of Europe is equally enthusiastic. Today, the continent is home to the largest number of renminbi bank clearings. Offshore renminbi hubs have emerged in Frankfurt, Paris, Milan, Luxemburg, Prague, and Zurich, and most of Europe’s central banks have added – or are considering adding – China’s currency to their portfolios.”
However, the analysts acknowledge that the timing for such a “romance” is not particularly good, as the currency is under speculative attack and the Chinese themselves are “losing confidence.”
“Europe’s efforts could succeed; but unless China makes its currency even more widely accessible and opens its market further, they are almost sure to fail,” they state.
http://www.infoaz.org/new/inde…..-sudzdzess
