The Changing World Order

di Walter Snyder, Swiss Financial Consulting

This Newsletter has often commented on the Chinese efforts to make the yuan an international reserve currency. The threat to the dominance of the US dollar is real while the connection with gold hoarding in China lends credence to the theory that the PBoC has been planning for years its strategy to dethrone the greenback. There are now many commentators intent on such developments, and one will see some effects of this movement if China is going to be included in MSCI indices after 10th June.

It is also interesting to see how Future Money Trends.com views the advance of the yuan and mentions a company run by Amir Adnani, who was mentioned in this Newsletter in connection with uranium. Adnani is also active in gold mining, and his company Brazil Resources Inc. is touted by Future Money Trends in connection with the stockpiling of gold on the part of China.

It is, of course, illusory to think that gold can be used as a currency in the age of computers with trades taking place in milliseconds between continents. Numbers in computers, representing fiat currency, have long since replaced bank notes in world markets. The problem is that it is people who give the buy and sell orders, and they have to trust their currency. They have to believe in the currency. Otherwise, they could behave much differently. Smart investors will have long since got out of bonds yielding little or nothing and shifted to equities, real estate, commodities and gold.

With banks charging negative interest on deposits, huge sovereign debt in the US, Europe and Japan, deflation a real danger, and a sluggish global economy, it is almost a non sequitur that the US dollar figures as a safe haven. The strength of the dollar in Forex markets is an indication of the desperation of global investors. It is in just this context that the yuan is going to emerge as the most important currency in the SDR basket. If it is not accepted by the IMF this year, then China will in any case go on liberalizing its economy and continue soaking up capital from abroad. By 2020 the IMF may even be disdained by the Chinese if the yuan is de facto the most used currency internationally. Of course, at the moment, the US dollar is king in global financial exchanges, but England and France have shown that kings can lose their heads. It is easy to see that the yuan is going to put an end to the overvaluation of the dollar despite opposition from the Americans. A gl

This Newsletter has often commented on the Chinese efforts to make the yuan an international reserve currency. The threat to the dominance of the US dollar is real while the connection with gold hoarding in China lends credence to the theory that the PBoC has been planning for years its strategy to dethrone the greenback. There are now many commentators intent on such developments, and one will see some effects of this movement if China is going to be included in MSCI indices after 10th June.

It is also interesting to see how Future Money Trends.com views the advance of the yuan and mentions a company run by Amir Adnani, who was mentioned in this Newsletter in connection with uranium. Adnani is also active in gold mining, and his company Brazil Resources Inc. is touted by Future Money Trends in connection with the stockpiling of gold on the part of China.

It is, of course, illusory to think that gold can be used as a currency in the age of computers with trades taking place in milliseconds between continents. Numbers in computers, representing fiat currency, have long since replaced bank notes in world markets. The problem is that it is people who give the buy and sell orders, and they have to trust their currency. They have to believe in the currency. Otherwise, they could behave much differently. Smart investors will have long since got out of bonds yielding little or nothing and shifted to equities, real estate, commodities and gold.

With banks charging negative interest on deposits, huge sovereign debt in the US, Europe and Japan, deflation a real danger, and a sluggish global economy, it is almost a non sequitur that the US dollar figures as a safe haven. The strength of the dollar in Forex markets is an indication of the desperation of global investors. It is in just this context that the yuan is going to emerge as the most important currency in the SDR basket. If it is not accepted by the IMF this year, then China will in any case go on liberalizing its economy and continue soaking up capital from abroad. By 2020 the IMF may even be disdained by the Chinese if the yuan is de facto the most used currency internationally. Of course, at the moment, the US dollar is king in global financial exchanges, but England and France have shown that kings can lose their heads. It is easy to see that the yuan is going to put an end to the overvaluation of the dollar despite opposition from the Americans. A gl

This Newsletter has often commented on the Chinese efforts to make the yuan an international reserve currency. The threat to the dominance of the US dollar is real while the connection with gold hoarding in China lends credence to the theory that the PBoC has been planning for years its strategy to dethrone the greenback. There are now many commentators intent on such developments, and one will see some effects of this movement if China is going to be included in MSCI indices after 10th June.

It is also interesting to see how Future Money Trends.com views the advance of the yuan and mentions a company run by Amir Adnani, who was mentioned in this Newsletter in connection with uranium. Adnani is also active in gold mining, and his company Brazil Resources Inc. is touted by Future Money Trends in connection with the stockpiling of gold on the part of China.

It is, of course, illusory to think that gold can be used as a currency in the age of computers with trades taking place in milliseconds between continents. Numbers in computers, representing fiat currency, have long since replaced bank notes in world markets. The problem is that it is people who give the buy and sell orders, and they have to trust their currency. They have to believe in the currency. Otherwise, they could behave much differently. Smart investors will have long since got out of bonds yielding little or nothing and shifted to equities, real estate, commodities and gold.

With banks charging negative interest on deposits, huge sovereign debt in the US, Europe and Japan, deflation a real danger, and a sluggish global economy, it is almost a non sequitur that the US dollar figures as a safe haven. The strength of the dollar in Forex markets is an indication of the desperation of global investors. It is in just this context that the yuan is going to emerge as the most important currency in the SDR basket. If it is not accepted by the IMF this year, then China will in any case go on liberalizing its economy and continue soaking up capital from abroad. By 2020 the IMF may even be disdained by the Chinese if the yuan is de facto the most used currency internationally. Of course, at the moment, the US dollar is king in global financial exchanges, but England and France have shown that kings can lose their heads. It is easy to see that the yuan is going to put an end to the overvaluation of the dollar despite opposition from the Americans. A global financial revolution is already underway as great changes are taking place in these interesting times.