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In The News Today

Posted: Nov 24 2010     By: Jim Sinclair      Post Edited: November 24, 2010 at 5:12 pm
Filed under: In The News

Thought For The Evening

One thing and one thing only happened today. It is a landmark development where the US dollar is concerned.
MOPE may well keep it from the attention of the Sheeplez  for some time.
Those that matter know exactly what a milestone event this is. As a dollar reality now it will factor into price very soon.
The move of Russia and China away from the dollar represent two huge economies that have made their decision to downgrade use of the US currency. All else today is noise and Management of Perspective Economics.



Jim Sinclair’s Commentary
You must give serious consideration to subscribing to John’s service.
I would not be without it.
The recently labelled good economic reports are constructs of statistical "adjustments."
- GDP at 2.5% But "Equivalent" GDI at 1.6%
- Weaker Durable Goods Orders Reflect Stressed Consumer
- Home Sales Weakness Intensified by Systemic-Solvency Issues
"No. 335: GDP Revision, October Durable Goods Orders and Home Sales"
www.shadowstats.com




Jim Sinclair’s Commentary
This comes from a reliable publication in China. It is strange it was not reported this way in the US or Europe yesterday.
It was considered a trivial step for bringing the Yuan into greater use and maybe make it more, as the Western media articles said, market related.
The Chinese did it therefore the Chinese ought to know what they did, and why they did it.

China, Russia quit dollar By Su Qiang and Li Xiaokun (China Daily)
Updated: 2010-11-24 08:02
St. Petersburg, Russia – China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.
Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.
"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.
The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.
The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.
"That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries," he said.
Putin made his remarks after a meeting with Wen. They also officiated at a signing ceremony for 12 documents, including energy cooperation.
The documents covered cooperation on aviation, railroad construction, customs, protecting intellectual property, culture and a joint communiqu. Details of the documents have yet to be released.
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