10/10/10

"Turkey, China Pledge To Boost Trade, Use Local Currencies"

If one day the world's largest oil producers
demanded Euros for their barrels
it would be the financial equivalent of a nuclear strike


Bill O'Grady


"...The announcement, which analysts labelled "significant," marks Beijing's latest move to broker arrangements to trade in local currencies, in an effort to develop the international use of the yuan.

If US dollars became redeemable only for themselves in 1971
why are most international financial transactions
still denominated in American currency?


...In late September, China supported a Russian proposal to start direct trading between the yuan and the ruble, and has also brokered a similar deal with Brazil."

Joe Parkinson
Dow Jones Newswires

What could happen if international financial transactions
become denominated in assets other than US dollars
and Federal Reserve Note supplies exceed demand?

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