Private Banking Network Confidence Base Transfer To China Is Nearly Complete
Private Banking Network Confidence Base Transfer To China Is Nearly Complete
Iain Parker – Non Interest Bearing Public Credit Lobbyist – Outlines US Reserve Currency Demise And Chinese Transfer Many Month’s Before It Happens
Below is a comment posted May 19 2011 by Iain Parker on a thread of Bernard Hickey’s www.interest.co.nz economics blog site;
by Iain Parker | 19 May 11, 11:33pm
Kate,
He might of wanted to stick to the SDR basket of currencies becoming the new reserve currency with several confidence bases instead of the one they are going with in talking up confidence in the yuan and moving to the one confidence base in Shanghai;
Effectively open up to the outside world
http://english.peopledaily.com.cn/90001/90778/90857/90862/6623230.html
Opening up to the outside world is another characteristic of an international financial center. Shanghai advances ahead of other domestic cities in this regard.
A total of 375 foreign-capital financial institutions and Chinese-foreign equity joint financial institutions set up headquarters or branch offices in Shanghai by the end of June 2008, accounting for 44.1 percent of the city’s financial institutions. Among them, there are 17 foreign banks and five foreign insurance companies, taking up two thirds of foreign-funded banks with legal person status and five sevenths of foreign insurance companies in China respectively.
Kate, we are already gearing up to have them issue our money supply of monetised debt. They will become the new confidence base from which most of the worlds money supply will originate the same. But just as when they shifted the confidence base from London to New York, no dif really, same dudes;
The People’s Bank of China (PBOC) and the Reserve Bank of New Zealand today announced the establishment of a reciprocal currency arrangement (swap line) to support the settlement in Chinese Renminbi (RMB) of trade transactions between New Zealand and Chinese businesses.
http://www.rbnz.govt.nz/news/2011/4372182.html
The Below Events Have Occurred Many Month’s After The Above Was Posted;
August 5 2011
http://www.standardandpoors.com/home/en/ap
Full Report: United States of America Long-Term Rating Lowered To ‘AA+’ On Political Risks And Rising Debt Burden; Outlook Negative
Research Update:
United States of America Long-Term Rating Lowered To ‘AA+’ On
Political Risks And Rising Debt Burden; Outlook Negative
Overview
• We have lowered our long-term sovereign credit rating on the United
States of America to ‘AA+’ from ‘AAA’ and affirmed the ‘A-1+’ short-term
rating.
• We have also removed both the short- and long-term ratings from
Credit Watch negative.
• The downgrade reflects our opinion that the fiscal consolidation plan
that Congress and the Administration recently agreed to falls short of
what, in our view, would be necessary to stabilize the government’s
medium-term debt dynamics.
• More broadly, the downgrade reflects our view that the effectiveness,
stability, and predictability of American policymaking and political
institutions have weakened at a time of ongoing fiscal and economic
challenges to a degree more than we envisioned when we assigned a
negative outlook to the rating on April 18, 2011.
• Since then, we have changed our view of the difficulties in bridging the
gulf between the political parties over fiscal policy, which makes us
pessimistic about the capacity of Congress and the Administration to be
able to leverage their agreement this week into a broader fiscal
consolidation plan that stabilizes the government’s debt dynamics any
time soon.
• The outlook on the long-term rating is negative. We could lower the
long-term rating to ‘AA’ within the next two years if we see that less
reduction in spending than agreed to, higher interest rates, or new
fiscal pressures during the period result in a higher general government
debt trajectory than we currently assume in our base case.
Wall Street shares slump as S&P downgrades US debt outlook
http://www.guardian.co.uk/business/2011/apr/18/us-economy-credit-rating
Larry Elliott, economics editor The Guardian, Tuesday 19 April 2011
“ It added: “We believe there is a material risk that US policymakers might not reach an agreement on how to address medium- and long-term budgetary challenges by 2013; if an agreement is not reached and meaningful implementation is not begun by then, this would in our view render the US fiscal profile meaningfully weaker than that of peer ‘AAA’ sovereigns.”
Chinese Charm Offensive
http://www.frontlineonnet.com/fl2811/stories/20110603281105400.htm
June 2011
“Beijing’s likely place in the expanding geopolitical East Asia will be determined, at one level, by the changing dynamics of China’s ties with other major powers. At another and related echelon, the changing dynamics of the overlapping ties among these other powers will also be important.”
China begins green tea charm offensive
http://www.stuff.co.nz/national/politics/5392174/china-begins-green-tea-charm-offensive/
VERNON SMALL August 5 2011
Reporters were invited yesterday to a rare briefing and press conference at China’s Wellington embassy as part of a wider “green tea” charm offensive through Western media.
In a prepared speech, followed by questions, political counsellor Cheng Lei emphasised China was not about to collapse economically and was not expansionist or a military threat. “We are also briefing the media in many other countries on these two topics.”
He said New Zealand was an attractive place for Chinese investors.
PM defends Chinese investment in NZ
http://www.odt.co.nz/news/politics/162730/pm-defends-chinese-investment-nz
Asked about concerns over China reportedly planning to invest $6 billion in New Zealand government bonds, Mr Key said being overly indebted to foreigners was the concern.
“Bluntly, we don’t want to keep owing the level of debt we have to the rest of the world, and we certainly don’t want it to rise forever,” he said.
“Ultimately no, it probably doesn’t matter whether (investment in bonds) comes from China or somewhere else.
“The truth is that China is the big saver around the world. Because of its domestic inflation it can’t bring that money home and so for a long time now they’ve been buying New Zealand Treasury bonds, as they are big buyers of US treasuries — they pretty much own all of the US Treasury bonds.”
New Zealand Minister Of Finance Says We Need To Borrow To Get Out Of Debt
“We’ve now dropped down to about NZ$100 million a week, on average, that we’ll be borrowing over the next few years. It was up at about NZ$370 million, we’re down to about a quarter of what we were,” English told media before entering the House of Representatives, from which he was subsequently ejected.
“We’re going to see periodic bouts of crisis and confidence problems in the European and US markets for a number of years, but I think we should get used to that,” English said.
Questions over the debt issues over the last week were best directed to the Debt Management Office, but high levels of demand for our debt was an indication that New Zealand was seen as a “reasonably well organised economy with better prospects than most other developed countries. That’s why investment’s flowing this way.”
“Now it’s got its disadvantages because it doesn’t help us with the exchange rate. The key to that is to get our debt down. We’ve got a plan to reduce debt, and we’ve got to stick to that plan,” English said.
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