Sunday, September 27, 2015



  After reassuring the United States that its economy will be propped up by China, Obama has given his thumbs up to the inclusion of Renminbi into the IMF’s SDR basket of currencies.

Renminbi is the official “people’s currency” of China; Yuan is the primary unit of that currency. This will pave the way for the exclusion of the fiat dollar from the global financial system in the coming days.

The Obama administration took a step toward backing China’s bid to have the yuan recognized as a global reserve currency, as the U.S. softened its insistence that the Chinese implement financial reforms to win support.

The shift in the U.S. position follows the administration’s failed attempt to prevent allies from joining the China-led Asian Infrastructure Investment Bank earlier this year, a strategy that was faulted by former policy makers including ex-Treasury Secretary Henry Paulson.

Winning the IMF’s endorsement would validate efforts by Xi to push through policies aimed at making the world’s second-biggest economy more market-oriented, boosting China’s prestige as it prepares to host Group of 20 gatherings next year. At least $1 trillion of global reserves will convert to Chinese assets if the yuan joins the IMF’s reserve basket, according to Standard Chartered Plc and AXA Investment Managers.

Friday’s shift brings the U.S. closer to the positions of the U.K. and France. In a speech Tuesday in Shanghai, U.K. Chancellor of the Exchequer George Osborne said he’d like to see the yuan added to the IMF basket as the currency becomes increasingly important in global markets and “meets existing IMF criteria.”

Elmerf123456:  That my Folks spells out A BIG WIN FOR OUR HOME TEAM!  Remember back...I said China doesn't play games. They do what the set out to do!!!!!

Fancy01:  E lmer Am I wrong in thinking with this that the Yuan Remnibi is in the first basket?

Elmer123456:  Fancy count of this. The gov never tells the whole story. I like what I'm seeing and the Market also heard China's voice loud and clear

  Elmer Considering that China always gets what they want- I am thinking yes

  It also points out that over 100 heads of state including the Chinese President did not come to play Bridge but rather to mend a few.

 : DOW futures unchanged right now but we should see a shake put a little later. What direction still remains.     I suspect we will see SOME green tomorrow.

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