Two years ago, when I was writing my report for DoD, the following news article appeared (link to full article is below):
Full article: http://www.politico.com/news/stories/0309/20723.html
Now, compare that with a story barely covered yesterday:
China "Attacks The Dollar" –
Moves To Further Cement Renminbi Reserve Currency Status
By Tyler Durden
Created 03/02/2011 – 20:24
In a surprising turn of events, today's biggest piece of news received a mere two paragraph blurb on Reuters , and was thoroughly ignored by the broader media. An announcement appeared shortly after midnight on the website of the People's Bank of China.
Reuters provides a simple translation and summary of the announcement: "China hopes to allow all exporters and importers to settle their cross-border trades in the yuan by this year, the central bank said on Wednesday, as part of plans to grow the currency's international role. In a statement on its website www.pbc.gov.cn, the central bank said it would respond to overseas demand for the yuan to be used as a reserve currency. It added it would also allow the yuan to flow back into China more easily." To all those who claim that China is perfectly happy with the status quo, in which it is willing to peg the Renmibni to the Dollar in perpetuity, this may come as a rather unpleasant surprise, as it indicates that suddenly China is far more vocal about its intention to convert its currency to reserve status, and in the process make the dollar even more insignificant.
Sound Familiar? Today's announcement certainly sounds a great deal like the warnings from two years ago.
Also, a lot of our contacts have been asking about the recent press. I'll post the Gertz article and links to the Fox News, CNBC, as well as the Glenn Beck comments tomorrow.
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