Weird: BOE Supports Chinese Financial Domination …
News Release – People's Bank of China swap line … Governor Zhou Xiaochuan met Governor Mervyn King today during Governor King's visit to Beijing. They agreed to facilitate discussions on the establishment of a reciprocal 3-year, renminbi (RMB)/sterling currency swap arrangement. The arrangement would be used to finance trade and direct investment between the two countries and to support domestic financial stability should market conditions warrant. They have agreed that the Bank of England and the People's Bank of China (PBoC) would work together to sign the final agreement shortly. – Bank of England press release
Dominant Social Theme: The Yellow Peril is launching a monetary strike against the West and must be stopped.
Free-Market Analysis: We've posted several articles now attempting to explain that the East versus West monetary competition is a kind of dominant social theme that doesn't reveal the reality of what's going on.
But it is a meme, nonetheless, that is being ladled thick and fast. First we learn that BRIC countries are setting up their own International Monetary Fund and then we learn that Australia is setting up a currency relationship directly with China.
We are supposed to believe the West is declining and the East is rising. Most importantly we are supposed to believe that this is taking place in the face of Western intransigence and disdain.
The West's money men are supposed to despite this trend that is putting them at a disadvantage. Not so fast! A quick look at what the world's most powerful financial center is involved with gives us a different impression entirely.
Acting on a feedback link, we took a look at BankofEngland.co.uk – and found a press release (excerpted above) that provides the impression that the Bank of England is cooperating enthusiastically with the trend toward a dominant yuan/renminbi. Here's more:
Commenting, the Governor of the Bank of England said: "London is growing rapidly as a centre for RMB business. The establishment of a sterling-renminbi swap line will support UK domestic financial stability. In the unlikely event that a generalised shortage of offshore renminbi liquidity emerges, the Bank will have the capability to provide renminbi liquidity to eligible institutions in the UK. Our announcement today marks a significant milestone in constructive bilateral dialogue between the Bank and the PBoC. I am grateful to Governor Zhou and the staff at the PBoC for their contribution to this collaborative dialogue."
Does that sound like a war brewing between East and West? Not at all … In fact, it tends to confirm our hypothesis that if the financial gravity is shifting, it is a move that top Western financiers are comfortable with. Heck, we don't have to speculate. They spell it out for us:
London as a centre for renminbi business … The City of London initiative on London as a centre for renminbi (RMB) business was launched on 18 April 2012. The role of the initiative is to consider practical measures to support the development of London as a centre for RMB business. It aims to:
Provide leadership to the wider financial markets on the technical, infrastructure and regulatory issues relevant to the development of the RMB product market in LondonAdvise HM Treasury on maximising London's capacity to trade, clear and settle RMB and articulate practical next steps and long term aims for the development of the RMB market in London. Additionally, the group advises HM Treasury and other UK authorities on any financial stability concerns the members may perceiveDevelop and maintain, as appropriate, a private sector dialogue on the international RMB market with regulators in Hong Kong and mainland China to complement that which is already maintained by the UK public sector.Think of the articles you've read recently on the decline and fall of the West as a financial center. Think of how much verbiage you've inhaled about the ending of the West as a monetary power. That media miasma may be an accurate one, but if so it is being facilitated by Western bankers themselves. We've commented about it here:
BRICS Plan for New IMF: Trojan Horse for Western Agenda?
Shock: Is Australia Really Falling Under the Orbit of China?
East and West are evening out as the cause of globalism advances. The gravity of financial might is shifting with great import for billions of people. But don't make the mistake of believing that those at the very top are fighting the trend.
They are likely encouraging it.
You don’t have to play by the rules of the corrupt politicians, manipulative media, and brainwashed peers.
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