Bundesbank Warns China's Currency "On Its Way To Becoming Global Reserve Currency"

Folks, myself and the blogosphere have been warning of this imminent shift in reserve currencies.  The cat is now out of the bag.  The USDollar will lose its global reserve currency status.  The loss may not be complete--it may share that privileged status with other currencies.  But it is inevitable.

Be prepared for much higher import and domestic prices--on everything.  The outcome may not be immediate, as the USDollar may continue to temporarily strengthen as geopolitical fires emerge in other parts of the world.  But the dollar's safe haven status will eventually be challenged as the rest of the world wakes up to its debasement.  Counterfeiting--even if "legalized" or institutionalized, will have market consequences, intended or otherwise.

http://www.zerohedge.com/news/2013-07-06/bundesbank-warns-chinas-currency-its-way-becoming-global-reserve-currency

How The Fed Crushed China's Ability To Join The Ease-Fest

Aahhh, the unintended blowback, er...consequences of a currency war.  The Fed's uber easy monetary policies have made ALLIES of China and South Korea, as they look to diversify AWAY from the USDollar with bilateral trade.  This is yet another nail in the coffin of the USDollar as the global reserve currency.

In previous eras, when a country had the cojones to jawbone down the USDollar as the international trade settlement currency, US foreign policy dictated that said banana republic (or OPEC member, whichever was appropriate) would be declared a rogue terrorist country, and some incidental event would conveniently trigger justification for invasion.  The natives are getting restless?  Just declare them freedom fighters and help them overthrow whichever current evil regime is in place.

However, China is unabashedly signing bilateral trade agreements with US allies, as well as our enemies in every continent, which means, the US is powerless to do anything about the dollar's demise as the "petrodollar."

Sounds benign enough.  So what's the problem?  Ummm, if and when the USDollar were to lose said reserve currency status, every single country holding dollars will have no need for them, and will be dumping them en masse.  The result will be soaring consumer prices domestically, crushing the US economy in the process.

But hey, no big deal.  The NFL football referees are coming back.  All is well.

http://www.zerohedge.com/news/2012-09-27/how-fed-crushed-chinas-ability-join-ease-fest

London to become major offshore trading center for Chinese Yuan.

The significance of this otherwise ordinary press release is far-reaching--especially as it relates to the USDollar as a global reserve currency.  This sets the stage for a dump of the USDollar and US Treasury bonds at any point in time.

http://www.chinasourceandsupply.com/News/china-source-supply-news-item.aspx?id=35042246-d98a-41ee-8cf2-026cef7e21a9

"The fact that China will open its third yuan offshore market in London is a strategic decision for the world's second-largest economy to increase the convertibility of the yuan and evolve the yuan into a reserve currency globally," said David Wang, executive director of the Royal Bank of Scotland (China) Co Ltd.