China’s Entrance Into SDR Basket Shifts Global Finance

Remember the renminbi billboard sighting in China back in March of 2015? Well, it has officially landed.

On Monday, October 3rd, 2016, a turning point for America begins: The beginning of the end for the global U.S. Dollar hegemony.

 

China’s yuan, or Renminbi (RMB), will officially join the International Monetary Fund (IMF)’s Special Drawing Rights (SDR) basket on Saturday, which indicates a step up in the international status of the currency.

  • The inclusion is first and foremost recognition of the substantial reform efforts conducted by Chinese monetary authorities.
  • “The RMB is already, for a number of years, very much an international currency.
  • China has also taken additional measures to allow the inclusion of RMBinto the SDR,” said Jurgen Conrad, head of the Economics Unit at the Asian Development Bank in China.
  • Alfred Schipke, the chief China representative of the IMF, thinks that the move’s significance isn’t limited only to the country.
  • “[I think] the RMB joining the SDR will indeed be a milestone for China, but also for the international financial system. It, in effect, recognizes the progress that has been made on the reform side in China over the past couple of years,” said Schipke. Continue reading

White House Celebrates ‘Jerusalem Not Israel’ Ruling

In case you needed yet another bit of proof as to which side the Obama administration’s loyalties lay.

 

Press Secretary Earnest welcomes passport ruling at Supreme Court, saying it gives president authority to recognize borders.

The White House on Tuesday relished the US Supreme Court ruling the day before, which sided with US President Barack Obama in striking down a Congressional law calling to have Jerusalem recognized as part of Israel on American passports.

“We welcome the Supreme Court’s important decision yesterday in Zivotofsky v. Kerry, which reaffirms the long-established authority of the president to recognize foreign states, their governments, and their territorial boundaries,” White House press secretary Josh Earnest said in a statement. Continue reading