China Actually Has Two Currencies—And It’s Fiddling Around With Both

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The problem with micromanaging the economy is that things become rather complicated. That’s why China needs two currencies, one for the mainland, one for international banks. Since the devaluation on August 11, it seems China is losing control of both.

The Renminbi (RMB) or yuan is used within mainland China and can be exchanged for other currencies very restrictively. It is primarily used in trade but also for tightly regulated inbound and outbound investments.

There is no real market for this exchange rate, instead the People’s Bank of China (PBOC) comes up with a fix every day and then trades around it. Continue reading

“Major Shortage Of Physical Gold” Has Fed Greatly Concerned

As the world awaits the Fed’s decision, today a 42-year market veteran told King World News there will be no tapering and that the gold will soar “after the Fed has surprised the market tomorrow.”  Greyerz also warned KWN that to further complicate matters for the Fed, there is a “major shortage of physical gold” ahead of their decision.  Below is what Egon von Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say.

Greyerz:  “Eric, it is important to consider what the truly important factors are that will determine what will happen to the world, its people, and to the global economy.  If we look around, what do we find?  We find a world that is financially, politically, and morally bankrupt. Continue reading