Dollar no longer primary oil currency as China begin selling oil using YUAN

[SinoChallenger]

good lord man , from proclaiming that you guys will erode dollars when the current standard is 0.3% of yuan penetration vs. 85% dollars to China will demand a higher rate - when China just bought more bonds at a lower interest , where China will lose money when they sell it but yet buys it like all of the world-- I don't know if you think writing a long winded post here means it gives your claims to be true.

Somebody is burning with inferiority....

 

[anarchy 99]

good lord man , from proclaiming that you guys will erode dollars when the current standard is 0.3% of yuan penetration vs. 85% dollars to China will demand a higher rate - when China just bought more bonds at a lower interest , where China will lose money when they sell it but yet buys it like all of the world-- I don't know if you think writing a long winded post here means it gives your claims to be true.

the yuan is being used as reserves even when its not fully convertible. shows the incredible potential of the yuan. its an appreciating currency. has alot more upside potential due to the current account surplus.
this is very attractive for foreigners. this is one of the reasons yuan is being accepted for chinese imports and not much for exports.

when the world loses faith in the dollar, it will fall overnight, confidence goes very quickly, that 85% would fall to less than 40% and less within days.
the yuan is being slowly readied for a regional role, then a global role.
the entire US economy is a house of cards, the US commercial banks are buying alot of the bonds. they are lending money to the government instead of businesess.

the US bond market is in a staggering bubble due to all the easy liquidity by the fed.
the bond market is in a speculative mania, people are buying bonds due to the price increase of the bond, not for the coupon rate they receive. it was the same thing in the housing bubble, people bought condos for hoping the price would increase forever instead of caring about the rent.

from the *** com bubble, to the housing bubble to the current bond market bubble.
it will end in tears for the US.

your knowledge of economics is very limited mate.

 

[manofwar]

Somebody is burning with inferiority....

How will a man living in a country whose currency that accounts for 83 % penetration in the oil markets be inferior??

Anyways call it what you will Sino, truth remains that while yuan may be more significant in the future, it just can't be compared to the hold dollar has on the oil market.......

 

[manofwar]

the yuan is being used as reserves even when its not fully convertible. shows the incredible potential of the yuan. its an appreciating currency. has alot more upside potential due to the current account surplus.
this is very attractive for foreigners. this is one of the reasons yuan is being accepted for chinese imports and not much for exports.

when the world loses faith in the dollar, it will fall overnight, confidence goes very quickly, that 85% would fall to less than 40% and less within days.
the yuan is being slowly readied for a regional role, then a global role.
the entire US economy is a house of cards, the US commercial banks are buying alot of the bonds. they are lending money to the government instead of businesess.

the US bond market is in a staggering bubble due to all the easy liquidity by the fed.
the bond market is in a speculative mania, people are buying bonds due to the price increase of the bond, not for the coupon rate they receive. it was the same thing in the housing bubble, people bought condos for hoping the price would increase forever instead of caring about the rent.

from the *** com bubble, to the housing bubble to the current bond market bubble.

your knowledge of economic is very limited mate.

Reasons for buying bonds may be diverse but endline is that people are buying bonds which are enabling greater spending of the American government...........
However your sentiment is one I share.......American hold on world economy should reduce......

 

[JayAtl]

the yuan is being used as reserves even when its not fully convertible. shows the incredible potential of the yuan. its an appreciating currency. has alot more upside potential due to the current account surplus.
this is very attractive for foreigners. this is one of the reasons yuan is being accepted for chinese imports and not much for exports.

when the world loses faith in the dollar, it will fall overnight, confidence goes very quickly, that 85% would fall to less than 40% and less within days.
the yuan is being slowly readied for a regional role, then a global role.
the entire US economy is a house of cards, the US commercial banks are buying alot of the bonds. they are lending money to the government instead of businesess.

the US bond market is in a staggering bubble due to all the easy liquidity by the fed.
the bond market is in a speculative mania, people are buying bonds due to the price increase of the bond, not for the coupon rate they receive. it was the same thing in the housing bubble, people bought condos for hoping the price would increase forever instead of caring about the rent.

from the *** com bubble, to the housing bubble to the current bond market bubble.
it will end in tears for the US.

your knowledge of economics is very limited mate.

MY knowledge is based on Knowledge and not silly proclamations.

At last count, the yuan had only a 0.3 percent worldwide share of global foreign currency transactions, vs. 85 percent of dollars = China domination forth coming (not). HELL_ The most optimist projections show Yuan at 12% in 2035.

2. The yuan isn’t freely convertible, and few foreign investors have unadulterated access to mainland financial markets= for you a Confidence for investors ( not)

3. China's overwhelmingly state-controlled banking system, means Chinese authorities enormous power over the flow of capital = confidence that politico can change at a whim = a good thing for you/ confidence ( NOT!)

4. China facing more and more internal strife and riots that are concern for investors

5. some of China’s recent successes are illusory. Many merchants, for instance, bought offshore renminbi solely to profit from China’s currency’s appreciation. But in China’s slowing economy, the renminbi actually depreciated this year.

6. Investors are acutely familiar with the under valuing and manipulation of the Yuan artificially!

7. Remember, the world reserve currency country is saddled with a consistent current account deficit. Thus, China must push out trillions of renminbi and renminbi-based asssets into the world economy. Fine if your model is open and based on consumption. Not so good if it is driven primarily by exports, as China’s is. So we will need to see a big shift in China’s growth model. That will be a wrenching long-term process

8. The reserve currency country must open its market to allow foreign investors to hold local assets. This means China will have to make a complete change to its current political structure to allow much more freedoms for citizens (not only allow money to flow in, but allow its citizens money to flow out freely). The system in place is not something that is likely to change anytime soon despite the window dressing.

9. The US is becoming wealthier relative to China. Say what? All true. The fact is since 1991, “the average Chinese citizen is more than $17,000 poorer relative to the average American than he was in 1991.” Per capita income for relatively large states is the best single determinant of competitiveness long term. So, until this trend changes, it is highly unlikely the US will give up the mantle of currency reserve status.

10. Officially, all is good. But unofficially, China may be facing its own debt bomb that could dampen growth for years, not just one or two quarters. It happened to Japan. Never say never! “The government’s official debt is only 15 percent of GDP, but it adds up quickly. Ratings agency Fitch estimates a bailout could cost 20 percent of GDP. Add the unpaid cost of the last bailout, debts at state-owned entities, local governments and pension liabilities, and a Breakingviews calculation suggests Beijing’s debt rises to roughly 130 percent of GDP,” according to Reuters Breakingview

and finally about the US T bonds and it's forthcoming bubble: Someone forgot to tell your leadership about it as early as this year in May...
China buys U.S. T-bonds directly - Xinhua | English.news.cn


State of Denial

 

[Zeeshan360]

^^ Nice and accurate points made there JayAtl

Some people got over excited in this thread ..
Even India buys oil from Iran in rupees that doesn't mean INR will replace USD

Somebody is burning with inferiority....

Duhh
Why would a guy staying in the country whose currency is used in 85% of oil trade burn with inferiority

 

[Hasbara Buster]

Look all religions get along- probably the only time I would see Pakistani's agreeing with a Pastor

Evil is recognized universally, and undoubtedly, as a state the U.S. is evil. Opposing U.S. imperialism is not wrong, on the contrary.

 

[JayAtl]

Evil is recognized universally, and undoubtedly, as a state the U.S. is evil. Opposing U.S. imperialism is not wrong, on the contrary.

Repeat after me " Crack is whack"

 

[anarchy 99]

Repeat after me " Crack is whack"

repeat after me.....indians dont understand economics

 

[anarchy 99]

MY knowledge is based on Knowledge and not silly proclamations.

At last count, the yuan had only a 0.3 percent worldwide share of global foreign currency transactions, vs. 85 percent of dollars = China domination forth coming (not). HELL_ The most optimist projections show Yuan at 12% in 2035.

2. The yuan isn’t freely convertible, and few foreign investors have unadulterated access to mainland financial markets= for you a Confidence for investors ( not)

3. China's overwhelmingly state-controlled banking system, means Chinese authorities enormous power over the flow of capital = confidence that politico can change at a whim = a good thing for you/ confidence ( NOT!)

4. China facing more and more internal strife and riots that are concern for investors

5. some of China’s recent successes are illusory. Many merchants, for instance, bought offshore renminbi solely to profit from China’s currency’s appreciation. But in China’s slowing economy, the renminbi actually depreciated this year.

6. Investors are acutely familiar with the under valuing and manipulation of the Yuan artificially!

7. Remember, the world reserve currency country is saddled with a consistent current account deficit. Thus, China must push out trillions of renminbi and renminbi-based asssets into the world economy. Fine if your model is open and based on consumption. Not so good if it is driven primarily by exports, as China’s is. So we will need to see a big shift in China’s growth model. That will be a wrenching long-term process

8. The reserve currency country must open its market to allow foreign investors to hold local assets. This means China will have to make a complete change to its current political structure to allow much more freedoms for citizens (not only allow money to flow in, but allow its citizens money to flow out freely). The system in place is not something that is likely to change anytime soon despite the window dressing.

9. The US is becoming wealthier relative to China. Say what? All true. The fact is since 1991, “the average Chinese citizen is more than $17,000 poorer relative to the average American than he was in 1991.” Per capita income for relatively large states is the best single determinant of competitiveness long term. So, until this trend changes, it is highly unlikely the US will give up the mantle of currency reserve status.

10. Officially, all is good. But unofficially, China may be facing its own debt bomb that could dampen growth for years, not just one or two quarters. It happened to Japan. Never say never! “The government’s official debt is only 15 percent of GDP, but it adds up quickly. Ratings agency Fitch estimates a bailout could cost 20 percent of GDP. Add the unpaid cost of the last bailout, debts at state-owned entities, local governments and pension liabilities, and a Breakingviews calculation suggests Beijing’s debt rises to roughly 130 percent of GDP,” according to Reuters Breakingview

and finally about the US T bonds and it's forthcoming bubble: Someone forgot to tell your leadership about it as early as this year in May...
China buys U.S. T-bonds directly - Xinhua | English.news.cn


State of Denial

your points have nothing to do with economics, its all politics. your economic knowledge is limited so you delve into politics to cover up your lack of knowledge on economics.

china dont need to open mainland financial markets at the moment, there is an offshore RMB center in hong kong that investors can get exposure to RMB denominated assets.
deposit accounts, stocks, bonds.

and your theory that reserve currencies have to run current account deficits is false. US had current account surpluses during the 1970s. japan runs CA surpluses. both have reserve currencies.

as i said yuan was used for chinese imports as investors wanted yuan due to appreciation, now yuan is at equilibrium, the yuan will be used for chinese exports.

10% of chinese trade is done in yuan.
thats big considering the yuan is not fully convertible.

the growth model has nothing to do with whether a currency becomes a reserve currency.
chinese model is based on investments, not exports.

i would suggest you stick to politics if you dont want to get taught economics lessons by me kid

 

[anarchy 99]

^^ Nice and accurate points made there JayAtl

Some people got over excited in this thread ..
Even India buys oil from Iran in rupees that doesn't mean INR will replace USD



Duhh
Why would a guy staying in the country whose currency is used in 85% of oil trade burn with inferiority

indian dropee is a dreadful currency, its collapsing, no one wants to hold that. how much of indian trade is done in rupees? how much trade does india even do?
tiny fractions.
indian economy barely registers in the global economy, its a small shrimp compared to china.

because the entire US economy is a ponzi scheme based on debt. its got a massive bond bubble that will burst that will cause massive losses in the US financial markets.

Indians should try harder to understand economics, much much harder.

 

[JayAtl]

indian dropee is a dreadful currency, its collapsing, no one wants to hold that. how much of indian trade is done in rupees? how much trade does india even do?
tiny fractions.
indian economy barely registers in the global economy, its a small shrimp compared to china.

because the entire US economy is a ponzi scheme based on debt. its got a massive bond bubble that will burst that will cause massive losses in the US financial markets.

Indians should try harder to understand economics, much much harder.

Never fails- Chinese trot out their dumbest as the finest talent on world forums. Well- you get what you pay for and 50 cents buys characters like anarchy..

 

[anarchy 99]

Never fails- Chinese trot out their dumbest as the finest talent on world forums. Well- you get what you pay for and 50 cents buys characters like anarchy..

and that my friends is how you own an indian!

pwned!

 

[JayAtl]

and that my friends is how you own an indian!

pwned!

There is a reason why we think you guys have low IQ's. Well that and the confirmation we got from your govt. They think you are too stupid to consume free media, actual economic news and need to be led as sheep

http://www.foreignpolicy.com/articles/2012/06/07/china_s_lies_damn_lies_and_secret_statistics China’s Lies, Damn Lies, and Secret Statistics

 

[Zeeshan360]

indian dropee is a dreadful currency, its collapsing, no one wants to hold that. how much of indian trade is done in rupees? how much trade does india even do?
tiny fractions.
indian economy barely registers in the global economy, its a small shrimp compared to china.

because the entire US economy is a ponzi scheme based on debt. its got a massive bond bubble that will burst that will cause massive losses in the US financial markets.

Indians should try harder to understand economics, much much harder.

Rupee actually gained in the past 2 months
But still believe whatever that keeps you happy

If US goes down then so would be China with 3 trillion US dollars foreign currency