Islandg1211: I was wondering what Frank, team, and family thought would be contained in Dr. Shabibi's speech?
We see these different sections of his plan coming out in the press that's giving the history and what has been done with the Monetary Reform. These articles are good to give the public the sense of and understanding of all the effort it has taken to just get here.
Before Frank had mentioned Shabibi was working on his speech, I had already thought about him giving a speech similar to Armstrong's stepping on the moon.
Other articles have referred to needing a technocrat non-corrupt government and yet another article explained the need for oil prices to be set. Articles going over the history of USD, and Nixon taking it off the gold standard have also been recently highlighted.
These articles are certainly preparing the way for Shabibi's speech, by design.
Islandg1211: So, what is Shabibi, who will be the IMF's spokesperson in addition to the CBI's, going to say?
IMO, simple saying, "Remember me? I'm back. When will I RV?, aaaaah, soooon," is certainly not a speech one would remember. Shabibi isn't exactly that dynamic either.
However, explaining what a fiat currency system is and what an asset back currency is, would be historical. Giving the true foreign currency reserve numbers, gold, natural gas, oil, minerals and note count would certainly make Forex investors interested, while others would begin to wonder what's in their wallet.
Who better to make that kind of speech than Dr. Shabibi? That speech would be more far reaching than even just coming out with a new rate. Any thoughts?
Nadita: The stage is being prepared …..who is going to give the speech first???
Don961: This is all coming to the conclusion ,. The culmination of a plan ... Much larger than one country and it's currency ..
Walkingstick: BRICS moves to establish bank institute, rating agency
Updated: April 15, 2016 11:31 IST
BRICS countries on Friday discussed the efficacy of “establishing” a bank institute and a rating agency of their own following the New Development Bank (NDB) becoming fully operational.
BRICS finance ministers and central bank governors met here on the sidelines of the Annual Spring meeting of the International Monetary Fund and the World Bank, for a discussion chaired by Finance Minister Arun Jaitley.
BRICS comprises five emerging economies — Brazil, Russia, India, China and South Africa.
“Deliberations were held on efficacy of establishment of New Development Bank Institute and BRICS rating agency,” a media release said.
“It was decided that a technical working group would examine the issues in detail,” a statement said.
The findings of the technical group would be presented to BRICS finance ministers and central bank governors in their next meeting, it added.
During the meeting, Mr. Jaitley complimented K.V. Kamath, NDB president, and his team for the quick pace with which the bank has commenced its operations, a sentiment which was thereafter echoed by other members of the Board of Governors of NDB.
The Board of Governors of NDB noted that the bank has commenced operations through approval of its maiden projects on April 13.
The NDB which commenced operations in July, 2015, is headquartered in Shanghai and its initial authorised capital is USD 100 billion.
So far, the NDB has approved four green renewable energy projects from India, China, Brazil and South Africa entailing bank financing of USD 811 million.
The project from India entails provisioning of a multi-tranche loan of USD 250 million to Canara Bank for lending to renewable energy ventures.
The project will result in generation of 500 MWs of renewable energy and savings of about 800,000 tonnes of carbon emissions
Mr. Jaitley also held a bilateral meeting with Lou Jiwei, finance minister of China.
The two discussed areas of mutual collaboration and commonality of their positions in various multilateral fora.
Mr. Jaitley is currently on an official tour to Washington to attend the annual Spring Meetings of the IMF and the World Bank, Board of Governors meeting of New Development Bank and other associated meetings.
He is accompanied by RBI governor Raghuram Rajan, Chief Economic Adviser Arvind Subramanian, and Shaktikanta Das, Secretary, Economic Affairs.
Walkingstick: BRICS join forces on IMF quota formula reform
Published time: 15 Apr, 2016 09:40
Brazil, Russia, India, China and South Africa have agreed to take a unified stance on the International Monetary Fund (IMF) quota system revisions.
"We need to take a united position on the quota reviews. Such reviews should in the first place be based on GDP figures, calculated by purchasing power parity (PPP)... Everyone has agreed to this,” said Russian Finance Minister Anton Siluanov on Thursday after a meeting with BRICS finance ministers.
The current quota formula is a weighted average of GDP (weight of 50 percent), openness (30 percent), economic variability (15 percent), and international reserves (5 percent). The GDP is measured through a blend of GDP—based on market exchange rates (weight of 60 percent)—and on PPP exchange rates (40 percent).
According to the Russian Finance Minister, GDP is one of the key indicators, and its greater weight in the formula will take into account the interests of developing countries, which are now under-represented in the IMF, as their economies are developing dynamically.
The reform of IMF was adopted back in 2010, but was delayed until December 2015 due to the position of the US Congress, when it ratified the so-called 14th General Quota Review.
Under the new rules, China’s quota has reached 6.4 percent; Russia and India now have 2.7 percent each with Brazil and South Africa having 2.3 and 0.6 percent, respectively. This gives a total of 14.7 percent against 11.5 percent before. The US is the biggest member of the IMF and is the only one to have a veto, as 15 percent is a blocking share.
Now, the developing economies are looking to alter the formula of the quota. Some of them doubt that such indicators as openness and economic variability should play such a big role in the formula.
Walkingstick: China likely to end unofficial ‘peg’ of the yuan and US dollar by 2018 to prevent forex reserve depletion, CLSA says
Yuan event could trigger return of 1997-like deflation crisis in Hong Kong
PUBLISHED : Friday, 15 April, 2016, 5:11pm
China is likely to “de-peg” the yuan from the US dollar in the second half of 2017, leading to a sharp initial depreciation against the greenback by the end of 2017, before the currency rebounds to around 7 per US dollar in 2018, CLSA said in a report Friday.
The scenario amounts to a reprise of the harsh economic climate that befell Hong Kong in 1997, pushing interest rates higher, fuelling deflation, and triggering an initial property price slide of 20 per cent, said Amar Gill, head of Asia Research, CLSA.
“The overall trend is declining for China’s foreign exchange reserve since the second half of 2014. And drivers for capital outflow remain...It is too early to say that China has reached the peak for capital outflows. In fact we are to see continued outflow of capital from the economy in the next 6 months” said Gill.
Chinese authorities tightly control the movement of the yuan against a basket of currencies, heavily weighted to the US dollar, in what some analysts describe an unofficial peg owing to its tight tracking of the greenback in recent years.
If China’s forex reserve declines by US$50 billion on average every month, which has been roughly the case for the past 18 months, its balance would shrink below US$2.75 billion around the middle of 2017, CLSA estimates.
That would be very close to the minimum forex reserve level recommended by the International Monetary Fund (IMF) of US$2.5 billion, Gill said. He added that China by then would have to abandon its defence of the exchange rate and allow a free float to introduce market based pricing.
“China certainly would tighten up control on capital accounts if the outflow pressure hangs over. But it is impossible for China to close the capital accounts,” said Gill, citing in that case the negative impact would be even bigger than the depreciation of yuan.
Experience of other countries where currencies de-pegged from the US dollar suggest that the local currency would decline by more than 25 per cent, at least initially.
CLSA expects the yuan to drop to 8 against the US dollar by the end of 2017, and head back to 7 by mid 2018 as it finds fair market value.
The pressure will spill over to Hong Kong, Gill said, resulting in a replay of the 1997 currency crisis that saw the Hong Kong peg to the US dollar under attack.
He said the Hong Kong Monetary Authoritywould defend the currency pegby buying Hong Kong dollars with its HK$3.479 trillion Exchange Fund.
However, efforts by the monetary authority to absorb Hong Kong dollar from the commercial banks onto its own balance sheet, would lead to tighter liquidity and higher interest rates.
The above scenario may last six months before easing off when pressure on the yuan fades, Gill said.
“Also, as Hong Kong keeps the peg, assets on this market becomes even more expensive, considering the neighbouring markets, including mainland and Singapore, which is weakening its currency, that’s why property prices are to see an adjustment and drop by 15 to 20 per cent,” Gill said.
Australia and North Asia, which have substantial trade with China, will be most vulnerable to the yuan’s “de-pegging” against the dollar. India with the least exposure to China will be least impacted, CLSA said.
Highly leveraged industries in China, including airlines, utilities, resources, shipping, and properties will experience volatily during the de-pegging process.
Chinese banks will suffer deposit flight, rising non-performing loans and lower net interest margin, the report said.
Beams: The formula goes like this. When there's too much fiat currency running the planet, a gold backed system must be implemented to reign it all back in and re-balance it. It's a recalibration act, and it's happened many times in Humanity's true History.
Timothy1957: We were told that a very wealthy well connected friend of ours is able to go in to exchange in a bank in Reno Nev. and that very shortly we will too now this guy is a great man with a great heart who I have not caught him lying to me before!! He lives in fl. This makes me happy hope it does for all of you ,Have a great day!!
LisaLivingLarge: I glad someone got the opportunity to do something. My bank told me Friday that we have turned a corner. He didn't offer for me to exchange though.
Artneto: Just reading different tweets and many gurus are saying that China will officially be gold-backed by Tuesday, which is the first step to the GCR of all countries having asset backed currencies. If so, the USD cannot be traded for Yuan unless it too is gold-backed. Cannot trade fiat for gold.
So Tuesday will be interesting in the stock market, and all tradable goods. Watch the Walmart shelves!
Everything in Walmart comes from Mexico and China. If the shelves are bare, that means GCR is starting without USA. In my opinion.
Artneto: Here is an article about Tuesday, April 19. Not mainstream news, but ... China's tuesday is our Monday
Red: artneto basically 2 senarios will play out we have a good chance to win at either one , but could win 1 and lose 1
1 china goes gold backed Tuesday rv to follow soon afterward
2 china and USA goes gold backed together and rv to follow soon
3 nothing at all….. more crap
Artneto: If nothing happens in US stock market Monday or Tuesday, scenario #3 is in affect
RVo531: Chinese Yuan gold-backed beginning Tuesday..." the article explains why the Fed Resort had emergency meeting this week with President and VP
GJHHOnor: imo there is a lot said in here CL(Christine Lagarde)
SassyD: IMF, World Bank focus on economic risks of Brexit, tax evasion http://economictimes.indiatimes.com/news/international/business/imf-wo rld-bank-focus-on-economic-risks-of-brexit-tax-evasion/articleshow/518 ?32450.cms
SassyD: Iraq central bank manager arrested over bonds trading in Kurdistan -- http://uk.reuters.com/article/iraq-kurds-corruption-bonds-idUKL5N17H2O1