BANKS BACK SWTICH TO RENMINBI (CHINESE CURRENCY) FOR TRADE.

If you have been following the type of economic cataclysmic events that could accompany the world and America if we switch away from the dollar as the worlds reserve currency then you will find this article breathtakingly alarming and much farther advanced than I ever dreamed of. This is the type of preemptive and protectionist move that China warned the U.S. about if we did not trim our national debt. Russia is making similar moves and the following two articles show there is allot of movement internationally away from the dollar.

This currency alternative is most importantly understood when one understands that in a time of crisis that's when the big changes are ushered in.

** After people being unable to access "The Financial Times" tools to to find the article I have put it here. All Credit goes to Financial Times. By Robert Cookson in Hong Kong.Published: August 26 2010 17:55

A number of the world’s biggest banks have launched international roadshows promoting the use of the renminbi to corporate customers instead of the dollar for trade deals with China. HSBC, which recently moved its chief executive from London to Hong Kong, and Standard Chartered, are offering discounted transaction fees and other financial incentives to companies that choose to settle trade in the Chinese currency.

“We’re now capable of doing renminbi settlement in many parts of the world,” said Chris Lewis, HSBC’s head of trade for greater China.

“All the other major international banks are frantically trying to do the same thing.”

HSBC and StanChart are among a slew of global banks –including Citgroup and JPMorgan – holding roadshows across Asia, Europe and the US to promote the renminbi to companies. The move aligns the banks favourably with Beijing’s policy priorities and positions them to profit from what is expected to be a rapidly growing line of business in the future.

The phenomenon will accelerate Beijing’s drive to transform the renminbi from a domestic currency into a global medium of exchange like the dollar and euro. Chinese central bank officials accompanied StanChart bankers on a roadshow to Korea and Japan in June. The bank held similar events in London, Frankfurt and Paris. Lisa Robins, JPMorgan’s head of treasury and securities services for China, said there had been a “spike in interest” from international clients.

An increasing number of Chinese companies have been asking foreign trading partners to accept renminbi as payment, said Carmen Ling, Hong Kong head of global transaction services at Citigroup. BBVASpain’s second-biggest bank, is also drawing up plans for a global marketing campaign that will focus on Latin American companies that export to China.

Banks started establishing renminbi trade settlement operations in mid-2009, when Beijing introduced a pilot scheme allowing companies to use the renminbi for trade outside China. The scramble has intensified in recent months as Beijing has substantially expanded the scheme – from a handful of Asian countries to the whole world – and introduced other liberalisations to its currency regime. Cross-border trade in renminbi totalled Rmb70.6bn ($10bn) in the first half of the year – about 20 times the Rmb3.6bn recorded in the second half of 2009.

But those figures remain tiny compared to the $2,800bn worth of goods and services that were traded across China’s borders last year, most of which was settled in dollars or euros. With renminbi trade settlement volumes expected to increase rapidly, banks are under pressure to establish a foothold in the nascent market and demonstrate to Chinese officials that they are committed to the scheme.

China has taken several steps in recent months to boost the international use of its currency and to establish Hong Kong, the special administrative region, as the global centre for offshore renminbi business.

McDonald’s, the US burger chain and icon of globalisation, took advantage of the new rules this month when it became the first foreign multinational to issue renminibi- dominated bonds in Hong Kong.

Copyright The Financial Times Limited 2010. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web. As I mentioned above. I only posted this after Friends could not access the Financial Times in the manner described. It is an excellent European financial paper.

CENSORED ECONOMIC NEWS

This is an important article. I should state from the outset this article came from “Pravda” the leading Russian press so it naturally has a bias that you will pick up on immediately. Yet it presents information that we generally will not get in America as well as the attitude outside our normal assumptions.

The U.S. currency has had its days as provost of international transactions and how to maintain currency reserves of countries. There is growing awareness that the world's central banks are directly propping up the criminal U.S. financial system to transfer their reserves in exchange for Treasury bonds and other notes. The transfer of reserves relieves fiscal deficit and finances eternal wars always being undertaken by the military-industrial complex housed in the Pentagon. The Project of the Sonoma State University of California nominated this topic for probable inclusion in the annual ranking of the 25 most censored news items in 2009/2010, to be published in the book Censored 2011, like every year by the publishing house Seven Stories of New York.

The big global media has not reported that there are several concrete initiatives to replace the U.S. dollar as world currency. Agreements have been adopted to bury the greenback-not reported by the mainstream press, in the Conference on Trade and Development of the UN (UNTACDA, for its acronym in English). On September 9, ALBA countries in Latin America, six nations in Asia, including Russia, and Iran also wants to get rid of the dollar, while the same urgency has been raised in other international forums.

In September 2009, the Conference UNTACDA proposed creating a new currency to replace the dollar as a reserve and redesign the "Bretton Woods style" of the current international monetary system. This initiative for a new currency would lead to the biggest monetary review since the Second World War. The resort of Bretton Woods in New Hampshire, served as head office to the Monetary and Financial Conference of the United Nations in 1944 and established the rules on trade and financial relations of the two industrialized countries in the postwar world and they decided to create the World Bank and International Monetary Fund and use the dollar as international currency.

Nations around the world have now reached their limit on subsidizing U.S. military adventures. The June 2009 meeting in Yekaterinburg, Russia, with the presence of world leaders such as Chinese President Hu Jintao, Russia's Dmitri Medvedev and other top officials of the six-nation Shanghai Cooperation Organization (China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan), also adopted the first formal measure of major U.S. trading partners to replace the dollar as world reserve currency.

If successful, the value of the dollar will plummet dramatically and the cost of imports such as oil will skyrocket suddenly and the U.S. empire cannot continue its wars. In addition, China has been negotiating deals with Brazil and Malaysia to assess conducting trade in the Chinese yuan, while Russia announced it will begin trading in rubles and local currencies. Moreover, Russia, India, Pakistan and Iran are forming a military financial area to try to force the U.S. out of Eurasia.

Nine Latin American countries also agreed on the creation of a regional currency, the sucre, outpacing the use of U.S. dollar. The nine members of ALBA (Bolivarian Alternative for the Peoples of Our America), a leftist bloc designed by Venezuelan President Hugo Chavez at a summit meeting held in October 2009 in Bolivia, is committed to further progress in the use of the sucre, the new unit of currency to replace the U.S. dollar as its currency in intraregional trade. The new medium of non-cash payment called Sucre, an acronym for Unified Regional Compensation Payments, started out in early 2010 as the accounting standard (not in paper money) among the member states of ALBA (Venezuela, Bolivia, Cuba, Ecuador, Nicaragua, Honduras, Dominican Republic, St. Vincent / Antigua and Barbuda).

The block also called to replace the International Center for Resolution of Investment Disputes (ICSID, its acronym in English) of the World Bank, in which arbitrations on misunderstandings or disagreements in international contracts have involved ALBA member nations in a morass of conflicts with some large transnational oil companies. Most ALBA members withdrew from the organization, and Ecuador also announced that they will leave the group.

Among the few media who reported this, was the story in the British outlet www.Telegraph.co.uk entitled "The UN wants a new global currency to replace the dollar." The economics editor Edmund Conway wrote on September 7, 2009 that the UNCTAD proposal was "the greatest revision of the world monetary system since the Second World War," adding that "this is the first time a major multinational institution has postulated such a suggestion." He said that "a number of countries, including China and Russia, suggested replacing the dollar as reserve currency of the world in a radical report of the UN Conference on Trade and Development." The UN report said: "The foreign exchange system and regulation of capital tied to the global economy is not working properly, and is largely responsible for the financial and economic crisis."

"The replacement of the dollar by an artificial currency would solve some of the problems associated with the potential of countries to wipe out large deficits and would help stability," said Detlef Kotte, one of the authors of the report. The proposals included in the UNCTAD annual report contain the most radical suggestions ever made for the network to redesign the global monetary system.

"The U.S. empire is ruined," wrote the columnist Chris Hedges on June 15, 2009 in www.TruthDig.com and www.CommomDreams.Org. Commenting on the meeting in Yekaterinburg (formerly Sverdlovsk, Russia), the Chinese President Hu Jintao, Russian President Medvedev and other top officials of the six-nation Shanghai Cooperation Organization, Hedges said, "Barack Obama and the Wall Street criminal class, aided by corporate media, continues peddling inane gossip and garbage masquerading as news, while we endure the biggest economic crisis in our history. They may have cheated us, but the rest of the world knows that we are ruined.

These nations are cursed if they continue to support keeping afloat an inflated U.S. dollar and sustaining massive federal budget deficits, swollen to over 2 trillion dollars, which finances U.S. imperial expansion in Eurasia and our system of casino capitalism . We are grabbed by the throat. It is at the point of being too tight."

The "substitution of the dollar for a conventional currency would solve some of the problems associated with the potential to wipe countries' large deficits and help stability," Kotte said. Although many economists have pointed out that the economic crisis was due to malfunction of the monetary system established in the agreements at Bretton Woods, so far no major institution, including the G20, has raised an alternative.

Note: This censored news arose from the investigation of the students Nicole Fletcher, Sonoma State University; Krystal Alexander, the Indian River State College, and Bridgette Grillo, the Diablo Valley College. It was validated by academics Ronald Lopez, Sonoma State University, Elliot D. Cohen, Indian River State College, and Mickey Huff, blo Day Valley College.

WHO OWNS THE US DOLLAR?

Again this an article from Provda on the simple understanding of the Federal Reserve. I may not agree with all of the material especially some of the attitudes but it gives a very simple insight into the Fed

At first glance, this would seem like a rather silly, stupid and pointless question. Why, the average person would answer, the American people own it. Or rather, if one had to get more technical, the American government, which is in turn, being a Republic, owned by the people, one in the same.

But, as most such simple seeming things in life, the truth is neither simple or straight forward and the answer is neither silly, stupid or pointless, but indeed is critical to the well being of nations and hundreds of millions if not billions of people.

For the truth of it, neither the people of America nor the government of America owns the US dollar. How's that, you say? Well, if one was to really dive just a bit deeper, before hitting the rocks just under the US greenback pond, one would quickly discover that the actual US dollar has not existed since 1913, where it was effectively killed. What is now called the US dollar is actually a Federal Reserve Note, says it right at the top of each bill. Why does that matter? Read on.

First of all, a US dollar, as something before 1913, was an instrument of wealth. That piece of paper, or just as common a gold or silver coin, had actual worth, anywhere in the world. It was worth its weight in gold, be it actual gold or paper. A Reserve Note, on the other hand, is a debt instrument, which not only is not wealth but is the opposite of wealth. Its very existence is a sucking sound on wealth, wealth being transferred, in this case not to the poor masses (as defined by defunct and unworking Marxism) but to the top 1% (equally defunct and unworking, but its only now starting to go that way).

How is that you say? Why quite simple, but for that answer, again, we must follow the rabbit down the rabbit hole. The Federal Reserve, unbeknownst to many outside the US and almost everyone in the US, is NOT a Federal, that is, government entity. It is about as governmental as Federal Express. In truth, it is a wholly private, untraded, and thus unsupervised, banking corporation, with a secret cabal of owners. One can assess some of those probable owners by those corporations/banks who were bailed out, while others were allowed to die.

Effectively, this private banking concern, the only one of its kind in the world, has the exclusive right to make the US dollar, or rather the Federal Reserve Notes (debt) called the US dollar, the one and only legal tender of America. Now, when the US government wants or needs money, it can not simply "have" money. Put aside the notions about not starting the printing presses and so on, the simple fact is, not only can the US government NOT coin currency, it can not just have it either. Remember, these are Reserve (debt) Notes.

So, when the US government wants money, the Treasury Department prints bonds (promissory notes aka debt obligations) and "sells" these to the Federal Reserve (private banking concern), which than "gives" the US government Federal Reserve Notes (tender). Thus the money the US government and thus in turn, the US people and all peoples and nations in the world who hold dollars (and why do you think they push these on the world so much?) are debt instruments owed to the Federal Reserve, by the holders. Thus, sooner or later you must return them, plus a percentage. Of course, to the Federal Reserve, the percentage is better.

But, let us take this one step further, and here is the really scary part. To note, no one's logic ever seems to go this far, so for many, this may be your final Eureka moment, when you figure out just how screwed and owned you really are.

If the only legal tender is the Federal Reserve Note and it must be paid back at its face value plus percent, again, in Federal Reserve Notes, well how do you do it? Let me explain. If the Fed offers you (like a crack dealer) $100 million Federal Reserve Notes and you must pay it back, sooner or later with a 2% add on, thus, let us say, in 1 year, you will owe and must pay $102 million Federal Reserve Notes, well, how do you do it? Simply put, you only have $100 million, where do you get the other $2 million Federal Reserve Notes? You can not print them, you can not mint them, well, you have no choice but to ask the Federal Reserve to print them. Thus you get your $2 million more to pay back the debt, but that itself has a 2% attachment, that again, you must ask the Fed to print and at a percentage and so on into perpetuity....well not really, because in a rather short order, the Fed and its owners will own everything.

Rarely has so brilliant and patient a ponzy scheme been dreamed up than this. And by exporting it overseas, they are sucking in the rest of the world's finance, into their ever greedy, chubby and purely evil little hands.

So, leaders of the world, why the bloody Hell, are you giving away the future of your peoples and nations to this tiny group of American parasites, who have already bleed the US dead dry, where the top 1% holds over 60% of that nation's raw wealth?