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Chinese Renminbi Announced As New World Reserve Currency After Emergency G20 Meeting

Currencies / China Currency Yuan Feb 20, 2011 - 02:18 PM GMT

By: D_Sherman_Okst


Dated [xx/xx/201x]: Fill in the future date of this article/press release by using your own common sense or Ouija board.

China’s President Hu Jintao and China Central Bank Advisor Xia Bin called an emergency meeting of the G-20 Member Countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States and the European Union) this weekend.

Saudi Arabia, Turkey, South Africa, Argentina, Brazil, China, India, Mexico and Indonesia were reported to have been extremely concerned over the recent fall of Egypt and Tunisia's government. They expressed grave concern over the rapidly growing civil unrest caused by protests over rising food prices, high unemployment and other poor economic conditions in the region. Unrest has recently erupted in Tunisia and spread to Egypt, Ethiopia, Nigeria, Libya, Morocco, Bahrain and Iran.

Speculation is that China's Jasmine Revolution was not able to be squelched through its iron firewall. It is believed that this is was what made President Hu take action.

China has long been concerned with inflation. Recently a growing number of its population of 1.3 billion began shouting slogans like: “We want food to eat, we want work, we want housing.”

China has seen many of its regimes toppled by social unrest sparked by high food prices.

President Hu was quoted: “For nations outside the United States increasingly high food prices accounts for the largest part of our citizens' budget. We can not allow Ben Bernanke’s monetization of the deficit to destabilize the developing economies by exporting inflation.” Many economist are quick to point out that in many LDCs (Least Developed Countries) food accounts for 50% of a families budget whereas in the United States it food is roughly 13%.

China has raised interest rates several times - despite US objections - in attempts to mitigate their inflation.

Economist now predict that the United States will either default on its 128 trillion dollar debt or quickly suffer the consequences of hyperinflation through the Fed's continued monetization of the unplayable portion of the deficit. 57% of the deficit is unfunded (looted) liabilities like Social Security and Medicare. 23% of the deficit is debt service. Economist say Monday's FX rates will determine gas prices and food prices and the new value of the USD.

"There was a growing concern that Bernanke’s fiscal policies would prove the Mayan’s correct, I suspect the United States will find an excuse to wage nuclear war over this,'" said one prominent historian.

By D. Sherman Okst

Bernardston MA USA

davossherman @

I'm an ex-airline captain with about 15,000 hours and am amazed at all the BS we are taught. Most of my friends still in the business were also taught the wrong aerodynamic principles with respect to what makes planes fly. Aviation or economics, Keynes to Austrian - Bernulli to Newton we've been sold bad goods. It's amazing anything works as backwards as we do things.

© 2011 Copyright  D. Sherman Okst - Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

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