10/16/2013

Chipping at the Greenback

One by one, slowly but steadily, countries are starting to negotiate to trade with China using the Renminbi or Yuan and their national currencies. The Indonesians have started the ball rolling and soon more Asean states would do likewise. Why would they want to use the Greenback that is losing its value rapidly with the Americans happily printing them to consume more and getting more into debt?
 

The latest American crisis and the threat of a debt default is very real and it is only a matter of time even if they could kick the can further down the road. The British have also signed a new agreement to be the centre of Yuan Pound swap in London. It is going to make London the biggest financial centre to trade the Yuan.
 

With this move by London, knowing how strategic the Brits are in their thinking, more European countries would not want to lose out. And this also applies to New York. There is no stopping for Yuan to be used more widely as an international currency. And the victim to this development is none other than the Greenback.
 

Countries holding on to huge American Treasury bonds are sweating in their pants with the Greenback shrinking in value like melting ice in the summer heat. The Americans are not helping either. They could not as they are deep in the shit and wanted to print more to reduce their foreign debt.
 

An avalanche is waiting to happen with the Greenback turning into banana currency very real. The confidence of the Greenback is being eroded daily and all the holders must be planning on how to get out, how to get rid of the Greenback at the earliest sign of trouble or opportunity to do so.
 

The Americans have killed two Arab leaders that were trying to scuttle the Greenback supremacy and a third one in Assad temporarily delayed. They could not be culling the British PM or other European leaders for wanting to cut down on the use of the Greenback.
 

Don’t worry, the Americans have worked it all out. It is time for another pow wow at Bretton Woods. And the Greenback would have a few zeros sliced off its back and buried for good at Arlington with the American flag wrapped around it. So would the holders of American Treasury bonds.

13 comments:

Anonymous said...

Why not the whole world use HDB flats as a global reserve currency instead of the US dollar?

Or better still.
USA buy HDB flats.
Then they can claim the US dollar is backed by HDB flats.
US dollar backed by HDB flats is even better than US dollar backed by gold tio bo?

That is why Singapore dollar is so strong.
It is backed by the value of HDB flats.
And HDB flats value is backed by the stupidity of the Singaporean voter.
Like that how to lose?

Anonymous said...

If USD is going bananas, then Sinkie dollar should strengthen against USD what, tio bo?

But why is Sinkie dollar always 1.2something to USD for such a long time?

Why ah? Something to do with PAP govt?

Anonymous said...

5.5 million Singaporeans.
Divide by 4 persons per HDB flat.
= 1.38 million HDB flats.

assume every HDB flat has value of S$300K or S$0.3 million.

Therefore total value of HDB flats is = S$4.6 million million dollars.

= US$3.83 million million dollars.

Now you know why Singapore dollar is so powderful.

Anonymous said...

Because US dollar is going bananas, that's why even HDB pigeon hole is now also very expensive, costing a million Sinkie dollars.

And nasi briyani with mutton is $8 per plate even at hawker centres.

Through quantitative easing (printing money) USA is exporting inflation to all over the world, Sinkieland included.

Anonymous said...

Anonymous said...
October 16, 2013 1:17 pm


"And"......the stupidity of the Singaporean voter"

Excuse me, you are so smart, kettle calling pot black?

Have you ever voted for the PAP? I'm stupid b'cus I never voted for PAP, NOT ONCE and were often called PAP's lapdog. Oppositions Sinkies are very smart!

JC

b said...

No country can stay powerful forever. It is time for another to take over.

Anonymous said...

b said...
October 16, 2013 3:25 pm

"No country can stay powerful forever. It is time for another to take over."

Singapore, world class parliament and Swiss gracious living?

JC

Anonymous said...

RB, walau lucky I only have less then us$100 now, left over from my overseas trip. I use to have over 500 k in this currency but I cut my loss 5 years ago loosing around 100 k in exchange but still count myself lucky. Knn

Anonymous said...

HDB flats as a global reserve currency is a very good idea.
Some more, PAP gahmen sell HDB flats at a subsidized price. So for sure HDB flats is good value for fundamental investors.

HDB flat price sure cannot drop.
If demand for HDB flat weakens;
PAP gahmen just stop building HDB flats lor!
This is called the Marlboro strategy after a famous Singapore Minister who first employed this strategy.
This is supply side eCONomics Singapore style.

The 2nd strategy to safeguard high HDB prices is to increase demand.
This is called the PWP or Popular White Paper Dragon strategy.
After a famous Singapore Prime Minister who employed this strategy after CONvincing his parliamentary colleagues of the merits.

So you see. HDB flats is operationally ready to replace the US Dollar as the world's reserve currency.
Even better than gold because gold price can go down you know.

Veritas said...

PAP economics book has masturbate our mind. The whole free trade theory is flawed, and the pre-requisite for free trade is fiat USD.

The wealth of nations is not free trade but mercantilism.

When USD loss reserve currency status, all nations will resort to some form of managed trade.

Anonymous said...

Hi rb uncle ..I suggest can we use our coe as global currency back up ....???? Hbd too laychay liao ...coe is clean n green no pollution too ... can issue as many as u can ....if they use our coe then ...wow we huat liao la ....




Chua Chin Leng aka redbean said...

Haha, COE and HDB, all good value items. COE is more convenient, just print, like the Greenback.

When will IMF step in to save the Americans? Once the confidence on the dollar is gone, just like confidence in a political party, it will just go crumbling down.

They say only the Americans can destroy America. And they are doing right before our eyes. Of course when they are the players, the actors, they did not know what is happening. Only the people watching from the side line like us can see the beginning of the collapse.

Ⓜatilah $ingapura⚠️ said...

The Greenback will remain the global reserve currency for years to come.

As long as the 10 year US Treasury remains the "standard" asset in the markets -- for private banks, national banks, central banks, private investors, hedge funds, sovereign wealth funds etc etc, that fiat-toilet paper currency will remain the world's legal tender.

Sure there'll be direct bi-lateral agreements with traders to trade in their own currencies, and on-liners will use BitCoin, gold bugs will use gold, but the US Banana Dollar will still be king lah.

...and then one day it will happen. No one can tell when or what will be the trigger.

So keep borrowing and partying. Might as well enjoy whilst it is still possible.