Peak Oil News and Message Boards

Sixstrings wrote:

americandream wrote:The "we" that matter in America own most of its wealth and steer government policy. You can huff and puff all you like, this will not alter things one iota.

True enough..

But if it costs $20 for bread becasue China seriously dumps bonds and say we've pissed off the Europeans and say we've let Japan twist in the wind and they're not friendly with us anymore either, and we done lost the Saudis a long time ago..

Then standing in the Walmart looking at that $20 loaf of bread I'd be in that "we" too, as far as consequences go. I don't like the 1% and banksters in charge either, but I know the realities here, and I have US dollars in my pocket and I know what could happen to their value if the paradigm gets screwed up.

Sixstrings wrote:But if it costs $20 for bread because China seriously dumps bonds

Keith_McClary wrote:Bread doesn't come from China. Maybe these will cost $20

China's manufacturing sector showed further contraction in March, according to a new report which mainly tracks activity in smaller factories.

The HSBC Purchasing Managers' Index (PMI) gave a reading of 48.1 for March, compared to 48.5 in February.

A reading below 50 indicates contraction, while one above 50 shows expansion.

The HSBC survey focuses on smaller companies in the private sector.

China's official PMI survey, weighted more towards bigger and state-owned enterprises, will be released later this month.

....
China's exports also dropped 18% from a year earlier in February, leading to a trade deficit of $23bn (£14bn) for the month.
....

Sixstrings wrote:

Keith_McClary wrote:Bread doesn't come from China. Maybe these will cost $20

If China seriously dumped US bonds,

Pops wrote:

Sixstrings wrote:

Keith_McClary wrote:Bread doesn't come from China. Maybe these will cost $20

If China seriously dumped US bonds,

You keep saying this, who are they going to "dump" them on?
What currency are they going to take for payment?
And why, pray tell, would they "dump" them and watch their investment fall to nothing?
. . . and their biggest customer go broke?

Pops wrote:

Sixstrings wrote:

Keith_McClary wrote:Bread doesn't come from China. Maybe these will cost $20

If China seriously dumped US bonds,

You keep saying this, who are they going to "dump" them on?
What currency are they going to take for payment?
And why, pray tell, would they "dump" them and watch their investment fall to nothing?
. . . and their biggest customer go broke?

Tanada wrote:The classic answer to part one is they tell the Federal Reserve quietly that they want to unload X number of US Treasuries and offer them the opportunity to buy them with foreign exchange holdings of the US Federal Reserve. I don't know how many Euro's, Rubles, Juan, Yen and so on the Federal reserve holds but it is a big number

Shanghai crude oil futures got off to another strong start in their second day of trading on Tuesday, with more than 16 million barrels of crude changing hands, extending the launch day's high volumes, data showed. More than 32,000 lots of the most-active September contract, equivalent to 16 million barrels of crude, changed hands in the overnight and morning sessions. Over the first 24 hours of trading, Shanghai's spot crude volumes made up 5 percent of the global market, compared with 23 percent for Brent crude futures and 72 percent for the U.S. West Texas Intermediate contract. Brent volumes have been lower than usual as much of Europe is already on holiday for Easter. By 11:14 a.m. (0314 GMT), 3,599 lots of the most-active June contract had traded, equivalent to 3.6 million barrels of crude. At 0316 GMT, Shanghai's September contract was down 1.43

jedrider wrote:Can we just go on pretending a little longer because I haven't retired yet? Maybe 10 years more? Then, I'll ask for another extension anyway when the time comes. I think it's in everyone's interest now to keep on pretending that the world's financial system is solvent and will stay solvent, by hook or by crook I bet you it will be crook in the end, though.

jedrider wrote:Can we just go on pretending a little longer because I haven't retired yet? Maybe 10 years more? Then, I'll ask for another extension anyway when the time comes. I think it's in everyone's interest now to keep on pretending that the world's financial system is solvent and will stay solvent, by hook or by crook I bet you it will be crook in the end, though.

Just days after Beijing officially launched Yuan-denominated crude oil futures (with a bang, as shown in the chart below, surpassing Brent trading volume) which are expected to quickly become the third global price benchmark along Brent and WTI, China took the next major step in the challenging the Dollar's supremacy as global reserve currency (and internationalizing the Yuan) when on Thursday Reuters reported that China took the first steps to paying for crude oil imports in its own currency instead of the US Dollars. A pilot program for yuan payment could be launched as soon as the second half of the year and regulators have already asked some financial institutions to "prepare for pricing crude imports in the yuan", Reuters sourcesreveal. According to the proposed plan, Beijing would start with purchases from Russia and Angola, two nations which, like China, are keen