And what will happen when things go wrong, as they inevitably do in casino banking?
“A great nation like China should have a global currency,” said UK Chancellor of the Exchequer, George Osborne, during his official five day visit to China. And the UK is gladly willing to contribute “through the international center of finance: London”.
Under the agreed pilot program, China sanctioned London-based investors to buy up to 80 billion yuan ($13.1 billion) of stocks, bonds and money market instruments directly, avoiding Hong Kong transactions, Reuters reports.
Meanwhile, Britain will let Chinese banks set up wholesale branches in London, easing regulations the country had imposed after the financial crisis broke out. Since 2008, Britain has insisted that most foreign lenders should set up their UK operations as "subsidiaries" rather than branches, which provides greater protection for depositors and taxpayers. Less regulation will be welcomed by Chinese lenders who have always complained the rules made it hard to operate in Britain, prompting them to move much of their business to Luxembourg.
On top of that, London and Beijing will trade the yuan against the dollar directly, avoiding the dollar.
"The Chinese currency, the renminbi, is not terribly well known in Britain at the moment. But over my lifetime I think it's going to become almost as familiar as the dollar, and I want British businesses involved in trading it, investing in it," Osborne told BBC television in China.
[source : London to become Chinese offshore banking centre, RT, http://rt.com/business/china-uk-banking-rules-220/, 15th October 2013]
The surprise move has angered bankers and lawyers across the Atlantic.
US bankers and UK lawyers attacked the new light-touch regulatory regime proposed for Chinese banks in the City on Tuesday, accusing George Osborne of political interference in regulation.
As the chancellor confirmed details of his mission to boost the UK’s status as an offshore Chinese financial centre, including a plan for Chinese banks to operate via branches rather than full-blown subsidiaries, senior US bank executives were stunned.
“It is extraordinary to treat Chinese banks differently,” said one bank chief. “It’s very inconsistent. This is just a crazy lovefest.”
Legal experts said the move sent an odd signal on the independence of the Bank of England’s Prudential Regulation Authority to set and enforce rules for banks.
[source : US bankers attack London and China’s ‘lovefest’, FT, http://www.ft.com/cms/s/0/1b00d4da-35c5-11e3-b539-00144feab7de.html?siteedition=uk#axzz2hrUv3DNn, 15th October 2013]
At the time of writing there is still no solution from the USA about their debt ceiling.
That statement from an anonymous White House about killing the dollar now looks very, very prophetic.
In 2011, economist Kyle Bass interviewed a senior member of the Obama administration about its planned solutions for fixing the US economy and trade deficit, but the question itself was not nearly as important as the response he received from this senior administration official. In fact, this single, seven word response clarifies everything, explains everything, and leaves little else to discuss: “We’re just going to kill the dollar.”
[source : “We’ll Kill the Dollar!”, Veterans Today, http://www.veteranstoday.com/2013/09/25/well-kill-the-dollar/, 25th September 2013]
A total planned collapse of the USA explains why there has been a rush to disarm the American people and arm the state to the teeth.
Obama did a very good thing by not bombing Syria.
But this planned collapse and provoked civil war in the USA is just as evil if not more so than bombing Syria!
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