Chinese bank head suggests US issue government debt denominated in yuan

[Marcus Bryant]

Top Chinese banker Guo Shuqing calls for wider use of yuan
The head of China's second-largest bank has said the United States
government should start issuing bonds in yuan, rather than dollars, in the
latest indication of the increasing importance of the Chinese currency.

By Malcolm Moore in Shanghai
The Telegraph
Published: 5:38AM BST 08 Jun 2009

http://www.telegraph.co.uk/telegraph/multimedia/archive/01419/china2_1419493c.jpg
Top Chinese banker Guo Shuqing calls for wider use of yuan


Guo Shuqing, the chairman of state-controlled China Construction Bank (CCB), also said he is exploring the possibility of issuing loans to trading companies in yuan, allowing Chinese and foreign companies to settle their bills in yuan rather than in dollars.

Mr Guo said the issuing of yuan bonds in Hong Kong and Shanghai would help to develop the debt markets in China and promote the yuan as a major international currency.

It was the first time the head of a major Chinese bank has called for the wider use of the yuan, although a chorus of senior government officials have already voiced their concerns about the stability of the dollar and have said the yuan should be used more widely.

"I think the US government and the World Bank can consider the issuing of renminbi bonds," he said, asking for a "mutual cooperation" between the US and China to promote Chinese financial services. He said bond issuance could be relatively small, at between 1bn and 3bn yuan (£100m to £300m).

HSBC and Standard Chartered have both said they are preparing to issue bonds denominated in yuan.

Mr Guo is a former head of China's foreign-exchange administration, which manages the country's $1.9 trillion foreign exchange reserves. He said he was confident the yuan would become a major currency in the medium-to-long term.

Two months ago, before the G20 meeting in London, Zhou Xiaochuan, the head of the People's Bank of China, the central bank, published a personal paper proposing to replace the dollar as the international reserve currency. His call came after Wen Jiabao, the Chinese premier, asked the US to guarantee the safety of China's huge pile of US debt.

In April, the Chinese government said traders in Shanghai, Shenzhen, Guangzhou, Zhuhai, Dongguan, Hong Kong, Macau, Yunan and Guangxi could start to settle their bills in yuan, rather than dollars, paving the way for the currency to become more fully convertible.

link (http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5473491/Top-Chinese-banker-Guo-Shuqing-calls-for-wider-use-of-yuan.html)

[jack sommerset]

Blame Bush..........

[Marcus Bryant]

Sure, his administration is partly to blame.

[jack sommerset]

Seriously, they just saw Obama double our deficit without blinking a eye. I don't blame them.

[Marcus Bryant]

Of course, is it really that much different than the present arrangement, from a prestige point of view? Uncle Sam is already on his hands and knees, as it is, with Beijing.

[jack sommerset]

Of course, is it really that much different than the present arrangement, from a prestige point of view? Uncle Sam is already on his hands and knees, as it is, with Beijing.

If that is indeed the case, you should be pretty pissed of Obama double the deficit without blinking a eye. The guy has zero expierence yet he is the United States of America's President.

[Marcus Bryant]

Sounds like the last tenant.

I'm pissed at both, but more importantly I am pissed at my 'fellow' citizens. This is the logical outcome of expecting the state to give them everything, as well as living vicariously through the state's military action 'round the world. The "left" and "right", at least what those labels purport to represent today, are each quite deserving of blame for the current mess the federal government is in today.

Also, in many respects Obama is merely continuing on the path set by Bush. At a minimum, Bush set the stage for Obama's victory through such incompetence that whoever the GOP candidate was in '08 was already a 15 point dog. This is why it surprises me to no end to see 'conservatives' continue to carry water for Bush's legacy. His legacy is shit. Figure it out.

The change in party control of the presidency doesn't mean as much as is commonly thought, at least when it comes to fiscal policy. Medicare and SS would continue to loom as the major concern for the federal government's fiscal health had McCain scored the upset. How many "conservatives" out there are ready for means testing? How many are ready to see their benefits cut if they are capable of supporting themselves without state support?

Politics is nothing more in this country than a spectator sport. One chooses a side so that they can talk a little shit when their side wins. Meanwhile, the country continues on its path to oblivion. But hey, did you see that Hannity, Olbermann, Colbert, Limbaugh, etc...bit the other day?

[jack sommerset]

Politics is nothing more in this country than a spectator sport.

I am with you on that.

[Wild Cobra]

Seriously, they just saw Obama double our deficit without blinking a eye. I don't blame them.
And so far, this current administration has the national debt doubling withing 5 years.

Since the Chinese want debt to be issued in Yen, tells me they expect the dollar to take a serious dive.

My solution... If they don't like the dollar, stop supporting our debt! If we cannot borrow money... Oh, I would really like to see that egg on President Obama's face!

[jack sommerset]

And so far, this current administration has the national debt doubling withing 5 years.

Since the Chinese want debt to be issued in Yen, tells me they expect the dollar to take a serious dive.

My solution... If they don't like the dollar, stop supporting our debt! If we cannot borrow money... Oh, I would really like to see that egg on President Obama's face!

What I think is happening, Obama has been called out in front of the world. Not a lot of cards to play at this point

[Wild Cobra]

What I think is happening, Obama has been called out in front of the world. Not a lot of cards to play at this point
I keep saying he'll go down as one of the worse presidents in history, but people don't believe me.

[jack sommerset]

I keep saying he'll go down as one of the worse presidents in history, but people don't believe me.

dude,,,,he is already.

[mookie2001]

yeah didnt you see WCs sig?, the economy was flying high in the green under bush, then under obama, it tanked into the red

[FaithInOne]

If we do not get this shitulus bill passed asap, unemployment will reach 10%!!!!!!!!!!!!!!!!!!!!!!!!

I INHERITED THIS WORSE RECESSION SINCE THE GREAT DEPRESSION!!! FROM THE MAN WHO FEARMONGERED TO GET HIS POLICY PASSED! FEARMONGERING IS WRONG!

:rollin:wgaf:

[Winehole23]

My solution... If they don't like the dollar, stop supporting our debt! If we cannot borrow money... Oh, I would really like to see that egg on President Obama's face!I'd rather not see this happen. I guess for you schadenfreude trumps patriotism. You'd apparently rather see the USA go tits up financially than miss out on the I-told-you-sos.

Nice.

[coyotes_geek]

My solution... If they don't like the dollar, stop supporting our debt! If we cannot borrow money... Oh, I would really like to see that egg on President Obama's face!

Won't happen. As long as Bernake and Geitner can conspire to just print up money and loan it to themselves that day of fiscal reconing can be delayed past the 2012 presidential election, which is all Obama cares about.

[angrydude]

If we do not get this shitulus bill passed asap, unemployment will reach 10%!!!!!!!!!!!!!!!!!!!!!!!!


:rollin:rollin:rollin:rollin:rollin:rollin:rollin: rollin:rollin:rollin:rollin:rollin:rollin:rollin

Oh God no, anything but that!!!!!!!!!!!!!!!!!!!!!

We can't have Great Depression 2.0!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I'll do anything you tell me to Mr. President!!!!!!!!!!!!!!!

[Winehole23]

:rollin:rollin:rollin:rollin:rollin:rollin:rollin: rollin:rollin:rollin:rollin:rollin:rollin:rollin

Oh God no, anything but that!!!!!!!!!!!!!!!!!!!!!

We can't have Great Depression 2.0!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I'll do anything you tell me to Mr. President!!!!!!!!!!!!!!!Brer rabbit?
http://ansontek.com/images/Brer%20Fox%20and%20Brer%20Rabbit.jpg

[FaithInOne]

I'd rather not see this happen. I guess for you schadenfreude trumps patriotism. You'd apparently rather see the USA go tits up financially than miss out on the I-told-you-sos.

Nice.


Our government would obviously rather see the USA go tits up financially than miss out on pushing agenda.

Yet you go after a regular citizen who wants the ill effects of these traitorous actions to be in full view of the people so we can all see the consequences of such injustice (i.e. claiming wealth, control, power, prestige, and so on from the destruction of the country)?

Interesting :flag:

[FaithInOne]

Won't happen. As long as Bernake and Geitner can conspire to just print up money and loan it to themselves that day of fiscal reconing can be delayed past the 2012 presidential election, which is all Obama cares about.

Bingo.

[Winehole23]

Yet you go after a regular citizen who wants the ill effects of these traitorous actions to be in full view of the people Which regular citizen, please?

[sabar]

I'm pretty sure a 2-party system exists so that we are never responsible for anything we do. It's the ultimate system. The people in power blame the ones that are not, and the ones not in power blame the ones who are.

Just look around the forum. People argue their points for 20 or 30 pages to reach no conclusion, to make no headway into anything even almost relevant.

[Cant_Be_Faded]

China can't do that, their currency must stay low by all means necessary. That's the other chink in their armor.

[angrydude]

China can't do that, their currency must stay low by all means necessary. That's the other chink in their armor.

or they could spend more of it on themselves. Not likely, but possible.

[Nbadan]

Fuck the Yuan...rising interest rates (almost overnight now) are the bigger threat right now...