In layman’s terms, China is going to let its currency appreciate.
This means Wal Mart prices are going to look like shopping at Neiman Marcus.
The Federal Reserve and our criminal congress have destroyed the dollar’s value, and now countries around the world are going to cease using it.
Further, since the US makes nothing except cars and bombs, everything that we do not make here is going to skyrocket in price.
Further, since the criminals in congress refuse to stop spending and the Fed refuses to stop printing, your food stamp ration card isn’t going to buy you a loaf of bread.
Prepare for hell.
Zero Hedge reports:
In a surprising turn of events, today’s biggest piece of news received a mere two paragraph blurb on Reuters, and was thoroughly ignored by the broader media. An announcement appeared shortly after midnight on the website of the People’s Bank of China. Reuters provides a simple translation and summary of the announcement: “China hopes to allow all exporters and importers to settle their cross-border trades in the yuan by this year, the central bank said on Wednesday, as part of plans to grow the currency’s international role. In a statement on its website www.pbc.gov.cn, the central bank said it would respond to overseas demand for the yuan to be used as a reserve currency. It added it would also allow the yuan to flow back into China more easily.” To all those who claim that China is perfectly happy with the status quo, in which it is willing to peg the Renmibni to the Dollar in perpetuity, this may come as a rather unpleasant surprise, as it indicates that suddenly China is far more vocal about its intention to convert its currency to reserve status, and in the process make the dollar even more insignificant.