U.S. Agrees To Back China’s Bid To Make The Yuan A Global Reserve Currency!
Treasury Secretary Geithner’s Beijing meeting succeeds in giving the yuan global currency status. Dire implications for the U.S. dollar.
Last week, I warned how U.S. Treasury Secretary Timothy Geithner — the man whose chief responsibility is upholding the integrity of the U.S. dollar and its purchasing power ...was running off to Beijing to convince China’s leaders that the U.S. dollar had to go down in value ... and that China’s currency, the yuan, had to rise. Many thought I was nuts, just like they did when I first started warning that Beijing and Washington were in cahoots in an effort to devalue the U.S. dollar.
But now, it’s clear: Geithner has accomplished his goal. In news just released late Sunday night, the U.S. has effectively agreed to back China’s bid to have the International Monetary Fund give the yuan global reserve currency status.
If you’re an American, you must stand up and take notice. Yes, China’s economy has come a long way. Yes, China’s economy is now the second largest in the world. Yes, China should have an important say in the global economy. And yes, China also engages in unfair trade practices. But if anyone’s guilty of unfair trade practices, it’s Timothy Geithner. He is selling out the purchasing power of your dollars and trading them for a stronger Chinese currency.
The yuan could have simply continued to expand its international clout naturally, taking the next few years to gain official reserve currency status along with the dollar and the euro. But that’s not what Beijing or Washington want. Both parties want it to happen NOW.
Chief reason: There’s a cancer in today’s global economy — debt and deflation — and Washington and Beijing both know that the only way to cure it is to DEVALUE the world’s single largest reserve currency, the U.S. dollar, to stoke up the flames of inflation.
This is PRECISELY what I have been warning everyone about. As the dollar is devalued against the yuan — your cost of living WILL skyrocket.
That’s what happens when the dollar is devalued. We saw it in the late 1970s, when the dollar’s value plunged and inflation soared. We saw it again in the mid-1980s when the dollar was devalued against the Japanese yen, and select commodity prices shot again to the moon. And we’ve seen it happen again and again over the last decade — as the dollar lost more than 30% of its purchasing power ... and the prices of everything from eggs to gasoline have jumped wildly.
Thing is, the dollar is now more vulnerable than ever before. Besides the forward march of the yuan — the dollar is being saddled by our Federal Reserve who stands ready to print up trillions more dollars at the drop of a hat! (C) Larry Edelson.
Treasury Secretary Geithner’s Beijing meeting succeeds in giving the yuan global currency status. Dire implications for the U.S. dollar.
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| Larry Edelson |
But now, it’s clear: Geithner has accomplished his goal. In news just released late Sunday night, the U.S. has effectively agreed to back China’s bid to have the International Monetary Fund give the yuan global reserve currency status.
If you’re an American, you must stand up and take notice. Yes, China’s economy has come a long way. Yes, China’s economy is now the second largest in the world. Yes, China should have an important say in the global economy. And yes, China also engages in unfair trade practices. But if anyone’s guilty of unfair trade practices, it’s Timothy Geithner. He is selling out the purchasing power of your dollars and trading them for a stronger Chinese currency.
The yuan could have simply continued to expand its international clout naturally, taking the next few years to gain official reserve currency status along with the dollar and the euro. But that’s not what Beijing or Washington want. Both parties want it to happen NOW.
Chief reason: There’s a cancer in today’s global economy — debt and deflation — and Washington and Beijing both know that the only way to cure it is to DEVALUE the world’s single largest reserve currency, the U.S. dollar, to stoke up the flames of inflation.
This is PRECISELY what I have been warning everyone about. As the dollar is devalued against the yuan — your cost of living WILL skyrocket.
That’s what happens when the dollar is devalued. We saw it in the late 1970s, when the dollar’s value plunged and inflation soared. We saw it again in the mid-1980s when the dollar was devalued against the Japanese yen, and select commodity prices shot again to the moon. And we’ve seen it happen again and again over the last decade — as the dollar lost more than 30% of its purchasing power ... and the prices of everything from eggs to gasoline have jumped wildly.
