By John Galt
August 30, 2011 – 18:05 ET
This little gem of a story from Business Day, a South African financial news publication should be another warning to the sleeping morons in D.C. and Wall Street:
While the Bernank and the Bammer have been out beating their chests about the “world’s reserve currency” the nation of Communist China has been quietly setting up international trade agreements with nations who have crucial supplies of raw materials and strategic resources. From Brazil to Venezuela, Nigeria to now South Africa, the Chinese have been setting up exclusive agreements with these nations to obtain large portions of their resource output but the trade is no longer denominated in U.S. dollars, but in the Chinese Renminbi (Yuan).
From the article:
CHINA’s renminbi could replace the dollar as the main currency to finance trade between Chinese and African countries, research by Standard Bank shows.
In a sign of China’s growing influence as Africa’s largest trading partner and investor, Standard Bank estimated that up to 40%, or $100bn, of China’s trade would be denominated in renminbi by 2015.
This amounted to more than the total Sino-African trade last year, the bank’s Beijing-based economist Jeremy Stevens said in a research paper released yesterday .
“In addition, at least $10bn of Chinese investment in Africa will be denominated in renminbi over the same period,” he said.
With 13% of trade already denominated in the Yuan one would think this would set off warning sirens in the powerful elites in the U.S. but for some reason the continued diminution of the world’s reserve currency in international trade with emerging nations does not seem to alarm the powers that be. This harbinger of our future where trade with nations using the dollar will make that nation a pariah should be one of the strongest indications yet that the dollar is doomed and it is only a matter of time before it collapse.