China’s Got a New Currency… and It Sure AIN’T the Dollar

China is believed to have 70% of its $1.7 trillion in foreign reserves sitting in green backs.  That’s an unbelievable amount of money invested in the US dollar. Needless to say, the Chinese are not too happy about our Central Bank’s decision to print TRILLIONS of dollars propping up the US financial system.

China’s Premier Wen Jiabao recently commented,  "We have lent a huge amount of money to the US…Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried."   Yu Yongding, a former Chinese central bank adviser, recently referred to the US Federal Reserve “as the world’s biggest junk investor… ridden with rubbish assets.”

China has already begun moving into a new currency, one that is neither fiat nor flawed.   Throughout 2009, China has been buying up natural resources, commodities, and other real assets at a break-taking pace.   Make no mistake, the Chinese have already begun diversifying away from the dollar. They just haven’t advertised the fact openly. Chinese students openly laughed at our Treasury Secretary Tim Geithner when he gave a talk there promising that “Chinese assets were safe” in the dollar.  If Chinese STUDENTS can figure the Fed’s moves out, what do you think the Chinese GOVERNMENT is doing?

 

Russia's Medvedev: Supranational currency will be created

Russian President Dmitry Medvedev said on Tuesday existing reserve currencies, including the dollar, have not performed their function, and a new supranational currency was in the making. "We are likely to witness the creation of a supranational reserve currency ... which will be used for international settlements," Medvedev told a new conference.


BRICs May Buy Each Other’s Bonds in Shift >From Dollar

Brazil, Russia, India and China are considering buying each other’s bonds and swapping currencies to lessen dependence on the U.S. dollar as their leaders meet for a summit in Russia’s Ural Mountains.   “There can be no successful global currency system if the financial instruments that are used are denominated in only one currency,” Medvedev said.

China Allows Trade Settlement in Yuan in Hong Kong

China approved use of yuan to settle cross-border trade with Hong Kong, part of a drive to broaden the use of the currency and reduce reliance on the U.S. dollar.

China is promoting greater use of the yuan in international trade and finance after Premier Wen Jiabao in March expressed concern that a weakening dollar will cause losses on holdings of U.S. assets. The greenback slumped on June 26 in New York after the People’s Bank of China renewed its call for a new global reserve currency to replace the greenback.


 

To fight deflation, abolish cash. Could Japan make reality of ‘science fiction’?

The recommendation has begun floating around Tokyo’s corridors of power and economists have described Japan as particularly suitable as a testing ground.
In theory, many Japanese could easily make the leap into a cashless world. The country has six main competing cashless payment systems, many of them embedded into mobile phones.


Top Chinese banker Guo Shuqing calls for wider use of yuan

The head of China's second-largest bank has said the United States government should start issuing bonds in yuan, rather than dollars, 
in the latestindication of the increasing importance of the Chinese currency.  (Holders of US bonds are losing money because trillion of
 'new' money is being created by the FRB)