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ParticleMan

Fake It Till You Make It

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Quite possibly the macro story of the year, bubbling along in the background.

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=agqqXSa4z9ek

Jan. 25 (Bloomberg) -- French President Nicolas Sarkozy said he favors adding the Chinese yuan to the basket of currencies making up the International Monetary Fund’s Special Drawing Rights.

“Forty-two years after the creation of the SDR, shouldn’t we agree on a calendar and modalities for enlarging the SDR to include currencies such as the yuan,” Sarkozy said at a press conference in Paris yesterday.

He said he was “happy” to see the issue mentioned in a statement after Chinese President Hu Jintao met U.S. President Barack Obama in Washington this week. “It’s immense to ask this question,” Sarkozy said.

The IMF said in November the yuan doesn’t yet meet the “freely usable” criteria required for the basket, comprising the dollar, euro, yen and pound.

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a_vVBgxLlIh0

Feb. 9 (Bloomberg) -- The International Monetary Fund is discussing the criteria for adding currencies to its Special Drawing Rights valuation basket made up of the dollar, euro, yen and pound, its number-three official said.

“We are starting to discuss how to assess SDRs, the composition of SDRs and the criteria to add a currency to SDRs if we decided to do so,” Naoyuki Shinohara, deputy managing director at the IMF, told a news conference in Tokyo today. “There is no target date and there’s no premise that we are going to add more currencies.”

Russian President Dmitry Medvedev last month said the currencies of Brazil, Russia, India and China should be included in SDR valuation basket. U.S. President Barack Obama’s administration said in January it supports “over time” putting the yuan into the basket.

The IMF in November said the yuan doesn’t yet meet the “freely usable” criteria required for the basket. The Fund also signaled it will begin examining the indicators used to select currencies.

Shinohara said leaders of the Group of 20 countries may discuss the “role of SDRs” as part of discussions later in the year as part of planned discussions on the international monetary system. He said the IMF is flexible about the composition of SDRs.

The IMF in November cut the U.S. dollar’s weighting to 41.9 percent compared with 44 percent after a 2005 review while the yen’s fell to 9.4 percent from 11 percent. The euro’s share rose to 37.4 percent from 34 percent.

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=ayzBUMN1klpE

Feb. 19 (Bloomberg) -- Finance ministers from the Group of 20 are likely to agree on a statement of foreign-exchange policy that repeats their 2010 accord to “refrain from competitive devaluations.”

The language was accepted and not a subject of debate among finance officials in the meeting that wraps up today in Paris, a G-20 official who briefed reporters late yesterday said.

“We will move toward more market-determined exchange rate systems and enhance exchange rate flexibility to reflect underlying economic fundamentals and refrain from competitive devaluation of currencies,” the G-20 leaders said after their November summit in Seoul. “In circumstances where countries are facing undue burden of adjustment, policy responses in emerging market economies with adequate reserves and increasingly overvalued flexible exchange rates may also include carefully designed macro-prudential measures.”

China has faced pressure to let its currency strengthen and resisted efforts to include its $2.8 trillion of currency reserves in the basket of early warning indicators of imbalances in the global economy. As of late last night, there was no deal on any measures, which is the main goal of the gathering, the official said.

German Finance Minister Wolfgang Schaeuble told reporters today that he has “the impression that China is aware of its responsibility,” citing talks with his Chinese counterpart last night. The G-20 must “fight exaggerations” in foreign exchange rate fluctuations, he said.

SDR Pressure

Moves are afoot to bind China more closely into the world economy by adding the yuan to the International Monetary Fund’s synthetic currency basket, known as special drawing rights.

Created in 1969 and last reweighted in November, the SDR is a composite of the dollar, euro, Japanese yen and British pound, though its role in financial markets is minimal. Current SDR rules would require China to first make the yuan fully convertible, a step that would put it on the upward track desired by the U.S. and Europe.

“We will discuss ways to enlarge the SDR basket,” German Deputy Finance Minister Joerg Asmussen said in a Bloomberg Television interview yesterday. “One might think of adapting the rules in order to ease the way for more currencies to be part of the SDR.”

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Awesome.

I wonder how the chinese citizenry will take to bailing out the west?

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Awesome.

I wonder how the chinese citizenry will take to bailing out the west?

Good to see you posting again.

As to the rest, they'll do whatever the Murdochvision tells them to do - they're people too.

At the moment it's telling them to heat up the popcorn and watch Rambo save the (middle eastern) world... again.

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Good to see you posting again.

As to the rest, they'll do whatever the Murdochvision tells them to do - they're people too.

At the moment it's telling them to heat up the popcorn and watch Rambo save the (middle eastern) world... again.

Hmm I need to find out about chinese child rearing over thelast 50 years to have much of an idea which way they will go, but ofc Rupe has his men who know these sorts of things himself so I expect the message will be well crafted in any event.

Hell I might just wait for the message and then scan it backwards.

Still, it's a better prospect than going straight to war, especially for those of us in the deadbeat half of the globe.

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Still, it's a better prospect than going straight to war, especially for those of us in the deadbeat half of the globe.

Hi Injin! How have you been?

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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