This report was shared by Mr. V.T., a regular reader here, and given all the other bizarre financial news of the past three days' blogs, this one is a must. U.S. corporations are abandoning the dollar for the reminbi to settle international trade:
But there is something else in this article, and I hope you caught it:
"The IMF and World Bank also appear to be pushing for a global economic "reset". "We need to push the reset button. The world is still much too much caught in a crisis-management mode," said Klaus Schwab founder of the World Economic Forum earlier this year."
Many years ago, when the bailout talks were first taking place, some people began to ask me if I believed that there should be a "jubilee", a world-wide forgiveness of debt. My response then, as now, was that this "solution" would probably cause as much if not more havoc as it was designed to resolve.
Yet, in the wake of the derivatives bubble, the housing market collapse, and the sudden upswing in the past months of banker deaths, I've also been maintaining that one thing that definitely appears to be going on is that all the "bad paper" is simply being shredded and taken off the books. In other words, the reset is already under way.
In a strange way, but one that is not, perhaps, entirely coincidental, corporations now appear to be aligning their corporate policy around this reset, as the article indicates:
"Maybe the reset is happening right in front of us. If U.S. companies choose to abandon dollars for imports, the dollar is in very big trouble, and China may get their wish of a new global currency after all - the renminbi."
But I suspect not... as a matter of fact, there are moves afoot, I believe, that indicate that while some corporations may diversify their basket of currency holdings by adding significant amounts of reminbi, as Catherine Fitts and I've mentioned many times over, the measure of reserve currency status in today's modern world of international financial clearing is the ability to control the satellites and space assets - and to protect them - that makes it possible. And the USA, for the moment, remains in that respect at least the premier space and financial-clearing power.
See you on the flip side