Search This Blog

Translate

Search Tool




Jan 16, 2011

US dollar 'product of the past', says Hu | Financial And Forex Info News | The Australian Business Briefing

Financial And Forex Info News










 
US dollar 'product of the past', says Hu
Aus Bus Pix US dollar and yuan notes Andrew Browne THE US dollar was a "product of the past", China's President said, as he emphasised moves to turn the yuan into a global currency.
Backlash over transaction reporting fee
Gambling THE government faces a backlash against plans to levy banks and businesses that report suspicious financial transactions.
Rio veteran talks turnaround
Guy Elliott Matt Chambers RIO Tinto's chief financial officer Guy Elliott has been known for making sensible acquisitions at the bottom of commodity cycles.
Coal price could hit $US500 a tonne
Flooded coal mine Sarah-Jane Tasker THE price of coal could soar to $US500 a tonne following the Queensland floods, with more than half of Australia's coal exports affected.
BHP to focus on organic growth
BHP Sarah-Jane Tasker GLOBAL mining giant BHP Billiton is set to advance $US62 billion ($62.6bn) worth of projects this year.
Dodo mulls float in energy play
The Hub - electricity grid Damon Kitney INTERNET service provider Dodo says it will consider a sharemarket float of the business.
BP's back with Arctic oil partnership
BP BP chief Bob Dudley pulled up to a sumptuous dacha outside Moscow on Friday morning to receive Vladimir Putin's blessing.
St George keeps flood victims afloat
Martin Barrett Teresa Ooi FIRST he was snowbound in Britain, then he came home to Queensland's worst floods on record since 1974.
Financial Markets
Dollar lower as China triggers alarm
dollar THE Australian dollar was lower today, after China raised reserve requirements and sparked fears its economy was slowing.
NZX axes Aussie stock exchange bid
Austrac helps find $272m in extra tax
Financial Markets Coverage
Mining & Energy
Coal price could hit $US500 a tonne
Flooded coal mine Sarah-Jane Tasker THE price of coal could soar to $US500 a tonne following the Queensland floods, with more than half of Australia's coal exports affected.
Ivanhoe faces hard sell to timid investors
Petrol to hit $1.50 amid recovery
More Mining & Energy Coverage


__________________________________________________________________________________________

ADVERTISEMENT




Free Research on Dubai Free Ras Al-Khaimah Research Document Free Turkey Research Document

Free Market Research

Click  Here

Hard decisions ahead north of the border | Financial And Forex Info News | The Australian Capital Cricle


FInancial And Forex Info News


Capital Circle Newsletter
Hard decisions ahead north of the border
As the rebuilding begins, Queensland Premier Anna Bligh had a stark message this morning.

"We shouldn't think for one minute this crisis is over.''
Ms Bligh said this morning she had been heartened and inspired by Queenslanders from across the state donating their time, energy and money to help as the clean up begins.
But she warned that "over the coming weeks we could see people fall into a bit of a low'' as the full weight of the flood's devastation hits.
"...we've got to remember that the reality might really hit people in the next couple of weeks''.
Across the papers: THE soldier in charge of rebuilding flood-devastated Queensland has warned that competition for reconstruction funds will divide communities.As the national emergency deepened, Major General Mick Slater said "hard decisions" would be taken on which areas take priority.As the confirmed death toll in southeast Queensland last night rose to 18, a third of country Victoria was under water and levee banks shielding the town of Echuca were in danger of being breached, putting hundreds of people at risk. (more from Sean Parnell and Jamie Walker)
Top talker: MORE serious questions about Wivenhoe Dam were raised yesterday by a senior engineer who claims the Brisbane River flooding was avoidable. (more from Hedley Thomas)
You can't be serious: POLICE have warned of an increasing number of scams to rob Queensland's flood victims as the federal Treasurer, Wayne Swan, said the economic cost of the disaster will be the highest in Australia's history. (more from Lindsay Murdoch)
Popularity contest: The trauma for flood victims is being compounded by some insurance companies insisting home owners delay cleaning up until after inspections. As Queensland Premier Anna Bligh called for a review of insurance protection against flood, it emerged that many devastated residents had only now discovered they were not covered for the disaster or would have to wait for an inspect
Read more...

__________________________________________________________
ADVERTISEMENT




Free Research on Dubai Free Ras Al-Khaimah Research Document Free Turkey Research Document

Free Market Research

Click  Here

Dollar system is 'product of the past,' Chinese president says | GATA | THE GATA DISPATCHES

Dollar system is 'product of the past,' Chinese president says

Submitted by cpowell on 08:56AM ET Sunday, January 16, 2011. Section: Daily Dispatches You can stop living in it any time you want, Hu baby.
* * *
Hu Highlights Need for U.S.-China Cooperation, Questions Dollar
By Andrew Browne
The Wall Street Journal
Sunday, January 16, 2011
http://online.wsj.com/article/SB1000142405274870355160457608580380177609...
BEIJING -- Chinese President Hu Jintao emphasized the need for cooperation with the United States in areas from new energy to space ahead of his visit to Washington this week, but he called the present U.S. dollar-dominated currency system a "product of the past" and highlighted moves to turn the yuan into a global currency.
"We both stand to gain from a sound China-U.S. relationship, and lose from confrontation," Mr. Hu said in written answers to questions from The Wall Street Journal and another U.S. newspaper.
Mr. Hu acknowledged "some differences and sensitive issues between us," but his tone was generally compromising, and he avoided specific mention of controversial issues that have dogged relations with the U.S. over the past year or so—including U.S. arms sales to Taiwan that led to a freeze in military relations between the world's sole superpower and its rising Asian rival.
On the economic front, Mr. Hu played down one of the main U.S. arguments for why China should appreciate its currency -- that it will help China tame inflation. That is likely to disappoint Washington, which accuses China of unfairly boosting its exports by undervaluing the yuan, making its products cheaper overseas. The topic is expected to be high on U.S. President Barack Obama's agenda when he meets Mr. Hu at the White House on Wednesday.
Mr. Hu also offered a veiled criticism of efforts by the U.S. Federal Reserve to stimulate growth through huge bond purchases to keep down long-term interest rates, a strategy that China has loudly complained about in the past as fueling inflation in emerging economies, including its own. He said that U.S. monetary policy "has a major impact on global liquidity and capital flows and therefore, the liquidity of the US dollar should be kept at a reasonable and stable level."
Mr. Hu's veiled criticism of the Fed reflects widespread feelings among developing nations that U.S. interest rate policy is devaluing the dollar, prompting flows of hot money overseas and creating inflation abroad. China and other developing countries would like the Fed to factor in those consequences when it makes decisions. Fed officials counter that their mandate is to bolster the U.S. economy and that a stronger U.S. economy is in the interests of China and other countries, which depend heavily on trade and investment from the U.S.
This could be a major issue of contention between Messrs. Hu and Obama. The U.S. blames Chinese currency undervaluation -- not Fed policy making -- for worsening competitive and inflation problems overseas.
Mr. Hu reiterated China's belief that the global financial crisis reflect "the absence of regulation in financial innovation" and the failure of international financial institutions "to fully reflect the changing status of developing countries in the world economy and finance." He called for and international financial system that is more "fair, just, inclusive, and well-managed."
Mr. Hu, who also heads China's ruling Communist Party, rarely interacts with the international media. The Wall Street Journal submitted a series of questions to China's Foreign Ministry for Mr. Hu to answer. The Washington Post also submitted questions. The Foreign Ministry supplied Mr. Hu's responses to seven questions -- but did not addess questions about imprisoned Nobel Peace Prize winner Liu Xiaobo, China's growing naval power, and complaints about alleged Chinese cyberattacks, among others.
Some of Mr. Hu's most significant comments dealt with the future of the dollar and currency exchange rates.
"The current international currency system is the product of the past," he said, noting the primacy of the U.S. dollar as a reserve currency and its use in international trade and investment.
The comment is the latest sign that the dollar's future continues to concern the most senior levels of the Chinese government. Beijing fears not only that loose U.S. monetary policy is fueling inflation, but that it will erode the value of China's holdings of dollars within its vast foreign-exchange reserves, which reached $2.85 trillion at the end of 2010.
China's central bank governor, Zhou Xiaochuan, created an international stir in March 2009 by calling for the creation of a new synthetic reserve currency as an alternative to the dollar. Mr. Hu's comments add to the sense that China intends to challenge the post-World War II financial order largely created by the U.S. and dominated by the dollar.
Mr. Hu called attention to China's accelerating effort to expand the role of its own currency, describing recent moves to allow greater use of the yuan in cross-border trade and investment-while acknowledging that making it a fully fledged international currency "will be a fairly long process."
China's moves already have spawned a thriving market for offshore trading of yuan in Hong Kong, and are widely seen as first steps towards making the yuan an international currency in line with China's new prominence as the world's second largest economy. Mr. Hu offered an enthusiastic endorsement of what are officially described as currency "pilot programs." They "fit in well with market demand as evidenced by the rapidly expanding scale of these transactions," he said.
Mr. Hu didn't signal any changes on the most sensitive aspect of China's currency policy: the exchange rate. Last week U.S. Treasury Secretary Timothy Geithner reiterated the U.S. position that a stronger yuan is in China's own best interests, because it would help tame rising inflation that has become a key risk to China's rapid growth, which is underpinning the global economic recovery. A stronger yuan would reduce the price of imports in local-currency terms.
But Mr. Hu shrugged off the U.S. argument, saying that China is fighting inflation with a whole package of policies, including interest-rate increases, and "inflation can hardly be the main factor in determining the exchange rate policy."
Further, Mr. Hu suggested that inflation was not a big worry, saying prices were "on the whole moderate and controllable." He added: "We have the confidence, conditions, and ability to stabilize the overall price level."
He renewed a Chinese pledge to offer a level playing field in China for U.S. companies, who have complained about aggressive Chinese moves to usurp their technology and shut them out of massive government procurement contracts.
"All foreign companies registered in China are Chinese enterprises," Mr. Hu said, responding to concerns that China discriminates in government procurement against foreign businesses as part of its drive to encourage so-called "indigenous innovation." He added: "Their innovation, production, and business operations in China enjoy the same treatment as Chinese enterprises."
The U.S. has been pressing China to revamp its plans for so-called indigenous innovation, which limits the types of government development projects and requires that companies get government approval to participate. China has pledged to join the World Trade Organization's government procurement agreement, which limits a country's ability to discriminate. But the U.S. and other countries say that so far China's WTO offer is inadequate because it exempts provinces, municipalities and state-owned enterprises. Last month China pledged to come up with a newer offer that would better restrict a buy-Chinese provision. During the Hu visit, the U.S. hopes to see some other commitments on this front from China.
Mr. Hu began his answers with a relatively upbeat assessment of China-U.S. relations, which he said had "on the whole enjoyed steady growth" since the start of this century.
He spoke of expanding cooperation from economy and trade into new areas like new energy, infrastructure development, and aviation and space. "We should abandon the zero-sum Cold War mentality," he said, and "respect each other's choice of development path."
On the diplomatic front, Mr. Hu entirely glossed over what has been one of the most dramatic developments of the past year -- a series of disputes between a more assertive China and its neighbors that has given the U.S. an opening to shore up its relations with a part of the world that felt neglected by Washington while it prosecuted war in Iraq and Afghanistan.
In the past year, China has feuded with Japan over the seizure of a Chinese fishing boat and its crew off disputed islands; opened deep differences with South Korea because of its subdued response to military provocations by North Korea; and alarmed countries in Southeast Asia by declaring the South China Sea and its energy and mineral riches one of its "core interests."
"Mutual trust between China and other countries in this region has deepened in our common response to tough challenges, and our cooperation has continuously expanded in our pursuit of mutual benefit and win-win outcomes," Mr. Hu said, ignoring the regional turmoil.

Check out the Gold Standard Institute

 Submitted by cpowell on 08:12AM ET Sunday, January 16, 2011. Section: Daily Dispatches
11:10a ET Sunday, January 16, 2011
Dear Friend of GATA and Gold:
GATA doesn't advocate a gold standard for currencies, figuring that free markets in the precious metals would achieve the objectives offered for a gold standard even better than a gold standard itself would -- objectives like limited government, personal liberty, property rights, prosperity, peace, and the end of imperialism. After all, isn't defeating those objectives exactly why central banks struggle so mightily against free markets in the precious metals?
But as they increasingly recognize the irredeemability of the debt that is choking the world financial system, some people are beginning to see that gold's ancient virtues as money may have to be summoned to rescue the system in one way or another, gold being, as the economist Antal Fekete constantly reminds us, the only practical extinguisher of debt, money without counterparty risk. So discussion of a gold standard is gaining respectability, and you may want to start following the Gold Standard Institute, a new organization based suitably enough in Vienna, home of the Austrian economic school of thought. The Gold Standard Institute's latest newsletter can be found here:
http://goldstandardinstitute.org/GSI/wp-content/uploads/2010/06/TheGoldS...
You can subscribe to the newsletter for free by using the mechanism at the top left of the home page of the institute's Internet site here:
http://goldstandardinstitute.org/GSI/home-2/

Adrian Douglas: Strong indications of gold and silver shortages

Submitted by cpowell on 07:37AM ET Sunday, January 16, 2011. Section: Daily Dispatches 10:20a ET Sunday, January 16, 2011
Dear Friend of GATA and Gold (and Silver):
In his new statistical study, GATA board member Adrian Douglas, publisher of the Market Force Analysis newsletter, reports that gold and silver futures market data show growing shortages of the metals, as open interest is losing its correlation with price. Douglas concludes that bullion bank bear raids like last week's are losing their capacity to cover short positions and that short positions henceforth are likely to be covered only with rising prices. Douglas' study is titled "Strong Indications of Gold and Silver Shortages" and you can find it at the Market Force Analysis Internet site here:
https://marketforceanalysis.com/article/latest_article_011511.html
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Join GATA here:
Yukon Mining Investment e-Conference
Wednesday-Thursday, January 19-20, 2011
http://theyukonroom.com/yukon-eblast-static.html
Vancouver Resource Investment Conference
Vancouver Convention Centre West
Vancouver, British Columbia, Canada
Sunday-Monday, January 23-24, 2011

http://cambridgehouse3.com/conference-details/vancouver-resource-investment-conference-2011/15

__________________________________________________________________________

ADVERTISEMENT




Free Research on Dubai Free Ras Al-Khaimah Research Document Free Turkey Research Document

Free Market Research

Click  Here

From The Desk Of Nick Nicolaas : Zeal Intelligence Weekly - "Silver ETF Impact 2" by Adam Hamilton



If this email is not appearing properly in your email program, Click here to view it online
Dear Friends:
Adam Hamilton has posted his weekly Zeal Intelligence Newsletter on the Mining Interactive Website. Click here:
Zeal Intelligence Weekly

Brought to you by
.
604-657-4058
www.mininginteractive.com

_________________________________________________________


ADVERTISEMENT



Free Research on Dubai Free Ras Al-Khaimah Research Document Free Turkey Research Document

Free Market Research

Click  Here