Federal Reserve and The Yuan!

[jarhead1976]

News has it you will be going to the bank to exchange your devalued Dollar for the elevated Yuan. Not at all a bad thing for China to start more importing. Will commodity's be going through the roof?

[Virgil Showlion]

Frank bearish on commodities!?

Why, I never...

[Aman A.K.A. Ahamburger]

May 12, 2011 21:04:10 GMT -5 @franktheimpaler said:

China's money supply has nearly halved from its peak of about 30% year to year in Nov of 2009...to about 16.5% in March this year.

That is a definite down shift not just in commodity prices but a very significant source of demand. During the period of "give back" the broad indexes will shake out.

But by how much...will depend on our economy's ability to make up for lost international demand. Consumers will have to take advantage of any easing of the gas price as well as others. These companies need some real relief in regards to the margin pressures they face.

So any hand off from a global driven to US driven growth HAS to happen against an already weak recovery...and until and when it does....hold the applause for this commodity sell off

That's why it's all about the jobs right now!

[jarhead1976]

I see this as being beneficial to everyone. The Chinese will be spending some of that 1.2 trillion American money here. Buying American business' and getting a good buy and increasing jobs here. While the Chinese and American policy makers will continue to, agree to disagree about money policy's. IMO opinion I think we will see a global shift to US driven growth in commodity's.

[Aman A.K.A. Ahamburger]

1.2 trillion American money here.

That's it right there. I don't understand the title, or your original statements.. Where does the RmyuanB come in? It's mostly American money out there, some euros, but the RmyuanB isn't even a reserve yet, and probably won't be for another couple years at least.

[jarhead1976]

AHAM , My understanding is that Federal reserve is going to be making The Renminbi available for exchange in US banks. Quote " With the improved yuan (CYB) they would now be able to acquire foreign companies at more attractive prices then heretofore. An elevated yuan would allow them entree into American Institutions and banks. It would also allow US citizens to transfer their cheap US dollars into the yuan at bank windows right here in the United States.

Remember that noises have been made toward establishing the yuan as the world’s reserve currency. The agreement would facilitate Chinese acquisitions and financial entry into the US markets and thus establish a quid pro quo with the United States. Conversely America also benefits by being able to sell products at advantageous prices and to pay off our colossal trillion dollar debts with cheap dollars. Basically, this was the scheme achieved by China and the United States at that candlelight dinner.

The game-plan was conceived in Washington in early January of 2011 and delivered by Bernanke in Washington at the end of April with his grand debut in front of the media. The head of the Fed could regale his audience with phrases like interest rates, transitory inflation and other tropes.

One question remained that no one would dare to ask. If there is no concern of rising silver prices and the falling dollar then why are precious metals especially silver (SLV) soaring into new highs?

Obviously the plan to devalue the dollar has seen silver, poor man’s gold and a highly speculative market made up of mostly retail investors, reach record heights. To combat this “bad inflation” would come not in the form of interest rate hikes to slow down the acceleration of the dollar decline but through a series of margin rate increases which would cause a temporary shakeout of speculators. Raising the costs of owning silver began a quick deleveraging of risky traders taking on too much risk at frothy level. This has sent fear throughout the commodity sector. This correction should be short lived as strong hands will come in and silver will regain its footing and find support after the washout has concluded.

I have researched natural resource assets that might prove to be attractive to the Chinese. On our list are companies, some of which already have Chinese participation. Just this year alone Minmetals was outbid by Barrick (ABX) to takeover copper miner Equinox. Jinchuan is making a bid for base metal producer Lundin (LUN.TO) Mining. General Moly (GMO) has received major assistance to build North America’s largest molybdenum mine in Nevada. General Moly is currently writing its feasibility study in Chinese to secure the necessary financing.

The Chinese are very willing to partake in these world class assets and are not hiding that fact. This aggressive search for strategic metals may transfer into the rare earth sector (REMX) as well. Prices are continuing to soar and hybrid car manufacturers are looking for supply over the next three to five years as demand is rapidly advancing for the crucial heavy rare earths used in the fuel efficient engines. Manufacturers are trying to get all the ore they can and after this runs out I expect some off take deals to occur in late 2011 with some of these key rare earth assets in North America and Europe. Let us not forget that China made an unsuccessful bid for Lynas (LYSCF) not too long ago.

We expect China to now aggressively pursue these strategic metal mining companies (REMX) as part of this little publicized arrangement between these two powerful nations " www.resourceinvestor.com/News/2011/5/Pages/Understanding-the-YuanDollar-Relationship-to-Commodities.aspx Hope this clarifies my intention for the post. thanks for you input, Respects.

[decoy409]

jarhead1976, above from your post,

(excerpt) - 'This correction should be short lived as strong hands will come in and silver will regain its footing and find support after the washout has concluded.'
(end)

Did you happen to catch 'June' delivery of slv. I posted this morning.

Great thread jarhead!

[bimetalaupt]

FTI ,
Rare Earth!!! in West Texas ...Not imported.. Mother load is coming for a Gear-less Wind turbine near You!!!

Bruce

[jarhead1976]

" Handbook of Texas Online (http://www.tshaonline.org/handbook/online/articles/gpm01), a

[Aman A.K.A. Ahamburger]

Jarhead. Wouldn't this mean that the PBoC is making the RyaunMB available to banks in the US so that people here could exchange the currency, mostly for travel? I can go to any bank around me and get foreign currency. Most central banks make their currency available, china is just finally getting with it. Basically nothing to do with metals at all, IMO.

[decoy409]

This is a transition. What will become is as stated as has already begun. Meaning the dollar fiat note needs to find some creative magic tricks QUICKLY. Like ones the audience has not seen yet

May 25,2011 Yuan Strengthens as Reference Rate Jumps Most Since January

www.businessweek.com/news/2011-05-25/yuan-strengthens-as-reference-rate-jumps-most-since-january.html

as this is already out there,

April 15,2011 China Ready to Discuss Yuan as IMF Currency…Sort Of

blogs.forbes.com/kenrapoza/2011/04/15/china-ready-to-discuss-yuan-as-imf-currency-sort-of/

So you best hope that Ben and Tim and the Squirting Octopus comes up with a quikie or,

March 15,2011 U.S. Dollar Collapse Could Occur at Any Time, Says NIA

www.thetotalcollapse.com/u-s-dollar-collapse-could-occur-at-any-time-says-nia/

What a time line of those 3 hey.

[decoy409]

Say,here is a great DEBATE No.13 above that is. You want to DEBATE? Or just keep pouring that hot Hersheys Syrup on the almost melted ice cream?

[decoy409]

#13 - The DEBATE is on but you see how they run out of town.