Reader Thoughts On “PBOC Calls For Broadening Use Of IMF’s Basket Of Reserve Currencies”
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Mark Schoenfelt “The BRICS Bank on Friday announced that its Board of Directors has approved its first set of loans involving financial assistance of $811 million, to be disbursed in tranches, supporting 2,370 MW of renewable energy capacity.”
“The NDB board has approved the issuance of five-year bonds in Chinese yuan, Russian Finance Minister Anton Siluanov was quoted on Friday as saying.”
JC Collins More confirmation. Thanks Mark.
Jenifer “One of the initial goals of Philosophy of Metrics was to describe and predict this transition. At this point I believe this goal has been achieved”.
Congrats JC on achieving this goal!! Thank you for all your contributions over the years it is facinating to watch it all come to fruition. GREAT WORK!!
Dane Hey guys I think this is the original press release from NDB.
“FIRST SET OF LOANS APPROVED BY THE BOARD OF DIRECTORS OF THE NEW DEVELOPMENT BANK
WASHINGTON D.C., 15 APRIL 2016”
Susan Do you see any gold-backed component to the SDR-basket, JC?
JC Collins Eventually maybe. But not yet.
Steve Henningsen (@Stevephenni) IMHO no one will take the SDR serious until it is backed with something tangible. If you take a bunch of individual fiat currencies, which investors are losing faith in thanks to QE and NIRP, and put them in a basket what has changed?
Dripfood Steve, isn’t any recipe more tasty than it’s separate ingredients? Gold might be like the salt with a good meal: you just needs a touch of it and it can be added anytime.
Steve Henningsen Sorry, but investors don’t think of their financial assets like food. People are too smart to fall for day-old fish stew in the financial world . You will need more than a touch of gold to give the SDR legitimacy and it will have to be added upfront, for once faith is lost, it’s hard to regain.
JC Collins The point you’re missing is that private investors will have little to do with the SDR. Primarily the SDR will be used between nations and some international institutions. There will likely never be SDR denominated financial instruments for regular private investors.
Dane Here is a “Communiqué G20 Finance Ministers and Central Bank Governors Meeting” in February.
The Panama Papers came out in early April.
Today the IMF’s press release “International Organizations Take Major Step to Boost Global Cooperation in Tax Matters”.
Ron Zanotti JC, Long-time follower, first time poster. I’m retired and trying to invest my life savings correctly. I am posting to get some of your feedback on my investment thoughts and fears.
Per your recent articles, I do like commodity investments for the long-run. Silver (SLV) and Oil/NatGass Company Stocks (XLE) have been devalued a lot. I just don’t know if they are going to devalue even more in the short-term?
Without the Fed creating liquidity, the aspect of interest rate increases possibly dampening liquidity, and the transformation of the existing monetary system, where is liquidity (and resulting expansion) going to come from in the short-term in order for commodities to rise?
I can see a continuation of deflation for the short-term based on the above. If commodity prices are just rising on speculation, isn’t there danger that the institutions will take the opposite side of that speculation and crush the average, retail speculator? Just looking for your thoughts?
I’m not a good macro-economist, so please forgive me if my post is a bit naive and uneducated. Thank you in advance for your sincere reply .
Mark Schoenfelt Ron, look up JC’s older posts on the Silk Road, Silk Road Fund and the AIIB Bank. The commodity demand will be coming from building this trade route combined with the depreciation of the dollar, vast amounts of loans being granted, and growth of emerging markets. The loans are funding now so this is where the liquidity will come from.
John John Dear Mr.Collins Thanks for post that seems to be a short free POM thus is not entitled as.
May you allow to ask for a short comment concerning the item from the point of view of a yuan-denominated gold benchmark on Apr 19 2016 launched by China as you see it, not as rumors. Kind regards.
Dane “Transcript of Asia and Pacific Department Press Briefing” April 14, 2016
“Low commodity prices could be a big net boost to the region, and also progress on the regional and multilateral trade negotiations such as TPP could benefit its member countries even before it is ratified.”