The decline and fall of the US dollar?

This little bit of economic news seems to have quietly slid out of the papers here fairly quickly.

FMG’s trade in renminbi expected to be followed

 

Fortescue minerals group is a medium sized player in the Australian iron ore market, it appears they have more confidence in the stability of the renminbi (Chinese currency) rather than the US dollars traditionally used for international commerce.

Tie that in with the US treasuries attempts to inflate away their domestic currency crisis and we may be looking at a severe downgrading of the prestige and value of the US currency as a unit of international trade.

A resources analyst says a decision by Fortescue Metals Group to trade using the renminbi signals a shift towards widespread transactions in the Chinese currency.

Yesterday, Fortescue Metal’s boss Andrew Forrest announced his group had completed its first ever deal using renminbi.

It is understood FMG is the first Australian company to trade in the currency rather than in US dollars.

The first, Mr Forrest is a pretty canny bloke, it remains to be seen if his business sense is right on this one.

The Chinese currency currently has its value pegged to the US dollar, if the dollar was to freefall it would be insane for the Chinese to allow it to take their currency down as well.

What would they then peg their currency to? The Euro?, British Pound?, The Yen? risky. Its difficult to see any other currency with the same “weight” to peg against.

He said he expects other Australian companies to follow suit.

“I don’t think it’s just Australian miners, it’s the Australian economy will definitely follow this move,” he said.

“It will start the flood because it makes it much easier now to do business with China, it’s part of China’s opening up and China becoming more efficient in global engagement.” Analyst Peter Strachan says the trade makes financial sense with China the region’s dominant economic and political force.

“They’re standing up and saying it’s our time,” he said.

Mr Strachan says many Australian companies will soon be trading with China using the renminbi.

“It’s not just going to be in iron ore, it will be in jocks and socks, through to refrigerators and whatever else comes through the door.”

The US government is printing money at a record rate, in all likelihood the US dollar is overvalued due to its reserve currency/trade currency status. If it were to lose even a large percentage of that just how much could the US dollar crash?

On the upside it would make exporting US products more competitive.

On the downside….everything else.

Now Im not a clever man, but I can see the US crippling itself in an attempt to ride out a downturn. Printing currency to inflate toxic losses is WORSE than the pricing correction trying to happen will be.

Iran to “punch” the West on Thursday

Tomorrow, Thursday, will be the 31st anniversary of Iran’s Islamic revolution (oxymoron, anyone?). And they reckon they will “punch” West “in a way that will leave [us] stunned“. What exactly this “punch” will entail, no one really knows, but it probably won’t amount to much, as is the norm when Iran bleats defiantly. Shaking in ma boots.

Now if only China would stop selling them weapons and whatever else, we could impose some more effective sanctions on them. China’s veto power at the UN currently prevents us from doing that. And, of course, the commies are thirsty for energy.

Cross-posted at bing’s cubby house.

UPDATE

Was this the punch??? Suspending gmail??

Devastating…

When daycare isn’t an option

Epic parenting fail.

A Chinese father chains his two year old kid to a pole while he and the mother are at work.

Cross-posted here.

What would China do?

If you remember the post a few days back showing Al Gore being confronted in a bookstore, you may remember the ‘confrontee’ screaming out that the COP15 climate change crap has, rather than having much to do about the environment, and not just on Obama’s own admission, a security issue, but also rather a lot to do about eugenics, that favourite play toy of the Left. And sure, we’ve already heard about eco-ratbags suggesting governments ‘put something in the water’.

Well, Canada’s Financial Post, in an editorial no less, has made their stand… for a global one-child policy.

A planetary law, such as China’s one-child policy, is the only way to reverse the disastrous global birthrate currently, which is one million births every four days.

Interesting since it ain’t the rich countries having that much of a problem with exploding populations. In fact, two of the richest nations on the planet, Japan and Germany are actually experiencing negative population growth.  It’s the poor countries that are much more likely to have huge population growth. Look at that list in the link above. Take the top 30. It’s only poor and/or Muslim countries experiencing growth of about 2.5 or higher.

The FP’s stance is idiotic at best, and down right evil at worst. And how the hell would you police such a policy except in the developed world? That’d be a world which isn’t having a problem with exploding populations – no pun intended re countries experiencing problems re suicide bombers…

But the FP is trying to do what China would do, and is taking China’s lead.

COPENHAGEN: Population and climate change are intertwined but the population issue has remained a blind spot when countries discuss ways to mitigate climate change and slow down global warming, according to Zhao Baige, vice-minister of National Population and Family Planning Commission of China (NPFPC) .

“Dealing with climate change is not simply an issue of CO2 emission reduction but a comprehensive challenge involving political, economic, social, cultural and ecological issues, and the population concern fits right into the picture,” said Zhao, who is a member of the Chinese government delegation.

So we have a bunch of lefties taking the lead off a bunch of Commies? Gee, what could go wrong with that in a free, democratic society?

US Citizen? Sign the petition against cap n’ trade

If you’re a man-made global warming sceptic, or if you think the science perhaps isn’t settled, or if you are worried about a potential communist world government, or if you are worried about giant non-sovereign world taxes being imposed on all of us, or if you think the governments of this world already have too much power, or even if you’re not convinced yet either way, and don’t want a road paved that there’s no turning back on in just two short weeks, then sign this petition.

SIGN HERE

People literally right now are speaking at Copenhagen presenting the other side to this man-made CO2-driven man-made climate change/global warming argument. They will also be speaking tomorrow. Time is of the essence.

UPDATE

This post differs from the original. It came from watching the latest Monckton videos (the end of Part 4 of which part 1 was posted by 1.6 below), about a GLOBAL problem – but unfortunately only US citizens can sign that petition. Hence, first update removed, replaced with this.

O-bow-ma

Oh for fuck’s sake.

Of course, the Chinese are calling him, Oba Mao.

It’s not the first time he’s done this, either.

Jesus Christ. I’m glad General of the Armies Douglas MacArthur isn’t around to see this.

Mac’s Thought Bubble: “Fuck me, a leftard shit-head president.”

Is Democracy not for everyone?

First reaction: bullshit.

Anyway, the BBC via Australia has launched into a bona fide debate on it all. Interesting….

Obama gets in. China’s rich. And now we’re questioning democracy… lest we mention who Obama’s press secretary admires so much.

And a note on that. Dunn said it. It’s on tape. Yet try to google a news story about it from a major news source? Almost nada. Why is that? Because a close aid to Obama, his communications director, quotes Mao as her number 1 political idol?

Oh dear, America. Oh dear, England. Oh dear, Australia.

And whatever happened to the fourth estate?