The World's New Reserve Currency?

Billboard Ads Announcing the Renminbi as the New WORLD Currency Bank of China (It's simply a clever marketing scheme for RMB denominated deposits) In case you don't know... Is the Chinese Yuan ready to become the new word reserve currency? No. Not even close. By the numbers we can see that the CNY is only being used for about 5% of world trade. The Chinese Yuan isn't even accepted in enough nations to be a threat to the USD. However, IMF inclusion of the CNY into a basket of currencies making up SDRs is certainly a step in the right direction for Beijing. Firstly, the Chinese need more transparency in regards to their inner workings of their banks. The Chinese economy isn't what the American or British economies were in the past when they became the issuer for the world reserve currency. Consider that China is fast approaching 300% Debt to GDP ratio! That's Japan style mismanagement to be sure. The Renminbi has only been around since 1949 and we all know that Beijing has been less than trustworthy & honest in recent history. But, you may argue that China owns it's central banks and has an internal and external currency. As the world's top creditor nation, it is likely that more assistance will be offered to the world in the form of Yuan. You may also argue that China has yet to reveal how much gold it actually has & if their gold reserves will backstop the RMB. All fair arguments that the CNY has legs to make a stake as #1. Ultimately, it may be more about what happens to US Dollar confidence rather than the quality of CNY. After all, alternatives to USD are slim and none. (Gold withstanding of course!) Global Trade Grinds to a crawl. Bulk Dry Index at mid-1980's levels http://www.zerohedge.com/news/2015-03-20/global-trade-grinds-crawl IMF Considering The Yuan http://news.yahoo.com/china-seeking-yuan-role-imf-currency-134858121--finance.html Double Bubble in China? Massive debt unleashed! http://www.capecodtimes.com/article/20150308/NEWS/150309538/101017/BIZ DEAD: 125 SCIENTISTS, 75 HIGH-LEVEL BANKERS, AND WITHIN 24 HOURS 3 INVESTIGATIVE JOURNALISTS http://asheepnomore.net/2015/03/20/dead-125-scientists-75-high-level-bankers-and-within-24-hours-3-investigative-journalists/

Comments

1. Chinese economy just took a 3 trillion dollar loss and it isn't over yet? In 6 months when the stock trade freeze is lifted there's going to be more dumping. All those countries who greedily signed up for the AIIB are probably having second thoughts now. Gold isn't being imported to China to back up the Yuan. Most Chinese speculators cannot get a loan without gold, silver and real estate as collateral. They are over leveraged as the recent melt down proves and this was just the first leg.
2. If the usa passes the tipa their will be a transfer of power to the asian world and by treaty the usa will step down as super power
3. old way of thinking !
4. I'm not sure about your words you have yet to pronounce correctly the the thing you're speaking about
5. From everyone I know who's actually been to China, the story they tell is that China is not ready to be a world leader, if ever.  Even from your videos, they just don't have the same level of society as the US and other western nations do.  They cook food on the street, make knock off cars, hawk up snot in public.  They may be the world leader one day, but not soon.
6. In my view, as a entrepreneur, investor, China is just a 99 cent store to the US, Europe and others. If we were to go next door to the India store or greater Asia, even Mexico, Latin America store China would go belly up.  As is 500 million Chinese go to be hungry each night. China has a long way to go before they are any real threat. The US Dollar is the reigning king of currency over even Gold which is worthless as only used for jewelry and the few rear tooth crowns in my head. Silver also costs just few dollars to mine. China is also too corrupt, Communism is still a nasty mean dictatorship that manipulates business and currency and not really to the benefit to other than the party members. The US on the other hand is stable and powerful. Still the only Super Power on the planet. Reliable I am stacking cash dollars, JPMChase stock Verizon and 3 Oil stocks Exxon, Conoco, and Chevron. Verizon for the dividends and real Estate holdings. Buy low sell high and carry paper at 7%. What I see and mildly fear coming is a Bear market, a rise in interest rates in September or shortly thereafter. A drop in stock prices so a time to buy buy buy. As is I buy stock automatically each month and reinvest all the dividends. I paid off all my variable rate loans..take only Fixed Loans. You all need to refi into fixed rates or pull in your belt and pay off variables. Buy cash or wait until you can save the money. These odd times so I watch the markets and war NEWS daily. Overall the USA is in the best shape for survival. We have access to an abundance of food, fuel, and nature resources and the meanest military in existence as well as nature barriers against invasion.
7. Look, there is no message to the West.  The signs are simply a marketing ploy to get investors to invest in more Yuan related securities.  Remember, the Yuan only accounts for LESS THAN 5% of world trade.  The RMB doesn't even have branches in most nations that it trades with.  Does this sound like anything close to the new world reserve currency?  Of course not.  Don't be silly.  It's all hype.  The Chinese will have to really work hard to get close to the dollar in the next several years.  And even then, it takes a lot to get the world to put their assets in a currency from a communist country.  It's never happened before...
8. If these signs are all over China, why are they in English?  There is a message here to the West......
9. THE DOLLAR is dead..........................................
10. I was one of the people that requested you speak on this topic.  Thanks so much for doing so.  Great appreciated!
11. Thank you for sharing your insight from another perspective, it has been an education for me to watch your channel. The cultural differences are many, but we all work within the same global financial networks, what happens in China affects us all, I like knowing that and to keep an eye out for any queues of big changes coming.
12. Great video, and way to go on putting everything into perspective.
13. China doesn't want a world reserve currency. They want a trade currency.
    Recent sign-ons to the new RMB bank:
    UK, Italy, Ireland, Spain, France, Germany, Australia, Canada, Japan.
    
    The world is cutting ties to the US. The reserve currency is. Gold.
14. totally agree, its not going to happen for a very long time.... if ever?
15. Nice video. Thanks 👍
16. The Chinese dream > American dream
17. Thanks for the video - 
    A lot of people are coming out and saying the bubble is going to burst in Sep-2015. They are as confident as the people who are saying get on board and take advantage of the Risk FREE money in the stock market now.
    
    Will there be a "collapse" or "reset" this year that impacts anyone holding US Dollars?
    Will life change as we know it?  Most Americans do not believe anything will change substantially. They are living life the same as always.
    
    At this point,  there is so much misinformation and Zero fiduciary responsibility by government&banks, would anything surprise you?
    the banks had a bail-in?
    the market is at 10,000 or 30,000?
    Silver is at $8 or $80?
    
    Unless civilization ends, there will always be a need for a medium of exchange.  Right now, it is the dollar sitting on top.  If you use US Dollars and need to purchase something, now is probably the time to do so.  It might be a better ROI to purchase what you will NEED/USE rather than invest and risk with savings accounts paying less than inflation.   
    
    If you really wanted to gamble/speculate, if you believed the dollar was going to fall this year, then you could use debt to purchase assets that appreciate when the dollar drops and repay the debt in devalued dollars.
18. What currency are silver pandas denominated in? Yuan?
19. Have you seen the ad for that energy drink saying it gives you wings.  Not actual wings but more like a lift in energy.  I believe the same principle is happening in our monetary concerns here.  Chinese influx of cash is a huge rush.  Since the small can of wings isn't enough the drink producers say you need a larger can for a bigger rush.   Once it's so big that you stay up for too long, the falling is not going to be the problem.  It will be the stopping that the real damage is done.  
20. New World Reserve Currency The Chinese Yuan?  At only around 5% of world trade being settled in CNY, it is not even close to becoming a threat to the US Dollar.  China has it's own internal problems to deal with & often I've commented that Beijing will have a difficult time just gaining and holding influence in Asia.  The world?  Be careful what you wish for, China.  It takes a lot more than double digit GDP growth & junk bonds to topple the mighty USD as flawed as it is.  Luckily China has gold and lots of it...