The Yuan – or Renminbi – is the national
currency of China. Few understand its inner workings, as – like most
Chinese financial data – transparency is limited; particularly regarding the currency; which has
been “pegged” to the world’s major currencies for two decades…
The Forgotten Peg: Chinese Yuan
and U.S. Dollar
Per the chart below, the Yuan/Dollar exchange rate was UNCHANGED from
1993-2005; and since then, has been allowed to gradually decline within a prescribed range
dictated by a basket of global currencies – dominated by the U.S. dollar…
This “forgotten peg” is by far the most LETHAL weapon in the global
CURRENCY WARS; as it has enabled China to acquire MASSIVE global
manufacturing share…
…which is EXACTLY what Japan and the rest of
the world’s CURRENCY WAR participants are targeting – at the expense of each other…
Could Abe’s Devaluation of Japanese Yen Spur a
Currency War?
Yet, the Yuan peg gets little attention because China has become TPTC,
or “Too Powerful to Challenge. From time to time, American politicians bluster about China
de-pegging the Yuan; but mostly, such rhetoric simply targets votes from the uninformed
public. The fact remains that China is the U.S.’s LARGEST CREDITOR…
…and without the cheap industrial production the peg enables,
Americans would immediately
experience MASSIVE price inflation…
With a drop in demand for the dollar, import prices will rise.
As the US is now an import-dependent country, from that day on,
Americans who walk into Wal-Mart will think they have walked into Neiman
Marcus.
-“GERALD
CELENTE, PATRIOT”
To maintain the peg, the Bank of China does what all Central banks due
amidst CURRENCY WARS; PRINT MONEY in unlimited
quantities – just as the supposedly
“conservative” Swiss National Bank has done since pegging the
Franc to the Euro in September 2011…
In China’s case, it must print Yuan “unit for unit” with production of
currencies from the aforementioned global “basket”…
…which care of “Worldwide QE to Infinity”; has recently gone parabolic – in the U.S.…
…Europe…
…and Japan
– among others…
…so much so, China currently prints half
the world’s currency to maintain the peg…
China Accounts for Nearly Half of
the World’s New Money Supply
Per above, the Yuan peg has enabled China to become the undisputed
KING of manufacturing. However, the other way China is DESTROYING
AMERICA is by acquiring PHYSICAL gold – in its preparations to take over as
the world’s top superpower…
China Eclipses U.S. as Biggest Trading
Nation
The last time China publiclyincreased its
“official” gold reserves was four years ago…
China reveals it has 1,054 tonnes of gold reserves – April 2009
…but other data proves it continues to buy gold at a breakneck pace…
China’s Gold Imports from Hong
Kong Double to New Record In 2012
…both in the public
sector…
…and via private citizens…
The Chinese will continue to trade their dollars – and the Yuan
PRINTED to maintain the peg – until there is no more gold and other ITEMS OF
REAL VALUE to purchase with depreciated fiat
currencies. And when that occurs, it will be revealed to all “HOW CHINA DESTROYED
AMERICA.”
Read the Tuesday Afternoon Wrap-Up
for 2/26/2013 and the Wednesday Morning Commentary for 2/27/2013
