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HONG KONG — The International Monetary Fund on Monday approved the Chinese renminbi as one of the world’s main central bank reserve currencies, a major acknowledgment of the country’s rising financial and economic heft.
The I.M.F. decision will help pave the way for broader use of the renminbi in trade and finance, securing China’s standing as a global economic power. But it also introduces new uncertainty into China’s economy and financial system, as the country was forced to relax many currency controls to meet the I.M.F. requirements.
The changes could inject volatility into the Chinese economy, since large flows of money surge into the country and recede based on its prospects. This could make it difficult for China to maintain its record of strong, steady growth, especially at a time when its economy is already slowing.
The I.M.F. will start including the renminbi in the fund’s unit of accounting, the so-called special drawing rights, at the end of September. The renminbi will take its place alongside the dollar, the euro, the yen and the pound.
Many central banks follow this benchmark in building their reserves, so countries could start holding more renminbi as a result. China will also gain more influence in international bailouts denominated in the fund’s accounting unit, like Greece’s debt deal.
The decision to include the renminbi “is an important milestone in the integration of the Chinese economy into the global financial system,” Christine Lagarde, the managing director of the I.M.F., said in a statement. “It is also a recognition of the progress that the Chinese authorities have made in the past years in reforming China’s monetary and financial systems. The continuation and deepening of these efforts will bring about a more robust international monetary and financial system, which in turn will support the growth and stability of China and the global economy.”

China’s leadership has made it a priority to join this group of currencies, naming it in October as one of its highest economic policy priorities in the coming years. The renminbi’s new status “will improve the international monetary system and safeguard global financial stability,” President Xi Jinping of China said in mid-November.

In the months before the I.M.F. decision, China took several actions to make sure that the renminbi was more widely embraced. China did so partly to meet the I.M.F.’s rule that a currency must be “freely usable” before it can be included in this benchmark.

China and Britain have sold renminbi-denominated sovereign bonds for the first time in London, which has emerged as Europe’s hub for the currency. Even Hungary has announced plans to issue its own renminbi-denominated bonds as well, while the Ceinex exchange in Frankfurt has begun trading funds this month based on renminbi bonds. Preparations began to trade renminbi-denominated oil contracts in Shanghai, where copper and aluminum contracts are already sold.

Most important, China began changing the way it sets the value of the renminbi each morning. In doing so, it abruptly devalued the currency.

The entry itself into the special drawing right is mainly symbolic. But such broader moves toward greater financial transparency and easier trading — part of the process to meet the I.M.F. requirements — will have long-term effects on the renminbi’s use.

“There’s this obsession with the S.D.R., and it’s completely out of proportion to its economic impact, which is likely to be trivial,” said Randall Kroszner, a former Federal Reserve Board governor who is now an economics professor at the University of Chicago. “It may be that in the drive to get into the S.D.R., they may make changes that make the renminbi more attractive for international market participants.”


National debt spikes $578 billion — in 3 weeks!



The national debt has surged more than half a trillion dollars in the last three weeks, as the suspension of the debt ceiling in late October has allowed the government to borrow as much as it wants.

Before the debt ceiling was suspended, the national debt stood at $18.15 trillion. But over the last 22 days, it soared $578 billion.

As of Friday, total national debt stood at $18.72 trillion.

Rep. Mike Coffman, R-Colo., marked the spike in debt late last week, when he warned that the debt has jumped by more than $8 trillion under President Obama’s watch.

“This is over $8 trillion in debt our nation, our economy, and our children could have avoided with a balanced budget amendment,” Coffman said last week.

The surge also appears to have members of the public increasingly worried. On Sunday, it was reported that the Treasury Department received a check for $2.2 million from an anonymous donor to pay down the national debt.

The national debt is made up of two big piles of government IOUs. One of these piles is debt held by the public, which has grown by about $430 billion in the last three weeks.

The other pile is intragovernmental holdings, which is money the government borrows from other government accounts to make ends meet. Those IOUs have grown by about $140 billion over the last three weeks.

With just about a year left in office, Obama is on pace to leave the next president with between $19 and $20 trillion in debt.

CRUZ: ‘Tired Of Being Told I’m Anti-Immigrant. It’s Offensive’…




Republican presidential candidate Texas Senator

Sen. Ted Cruz (R-TX) 97%   argued, “if Republicans join Democrats as the party of amnesty, we will lose” and “the politics of it would be very, very different if a bunch of lawyers or bankers were crossing the Rio Grande, or if a bunch of people with journalism degrees were coming over and driving down the wages in the press” during Tuesday’s GOP presidential debate on the Fox Business Network.

Cruz “the Democrats are laughing, because if Republicans join Democrats as the party of amnesty, we will lose. And you know, I understand that when the mainstream media covers immigration, it doesn’t often see it as an economic issue. But I can tell you, for millions of Americans at home, watching this, it is a very personal economic issue, and I will say the politics of it would be very, very different if a bunch of lawyers or bankers were crossing the Rio Grande, or if a bunch of people with journalism degrees were coming over and driving down the wages in the press, then we would see stories about the economic calamity that is befalling our nation.”

He continued, “I will say for those of us who believe people ought to come to this country legally and we should enforce the law, we’re tired of being told, it’s anti-immigrant. It’s offensive. I am the son of an immigrant who came legally from Cuba, to seek the american dream, and we can embrace legal immigration while believing in the rule of law. And I would note, try going illegally to another country, try going to china or japan. try and go into mexico, see what they do. Every sovereign nation secures its borders, and it is not compassionate to say we’re not going to enforce the laws, and we’re going to drive down the wages for millions of hard-working men and women.”

9 Charts: This Is What Obama’s Economy Looks Like



Unemployment hit 5 percent in October and the economy added 270,000 jobs in an unexpectedly strong showing that is good news for the White House. But wages are stagnant, more than 95 million Americans are not working, and the federal debt is soaring.

President Barack Obama recently boasted he and his Democrat allies have “pulled the United States and the world out of an economic crisis” and “stabilized the financial system” since he took office, when unemployment was in double digits and the economy was tanking.

That may be true, but these nine charts inspired by a recent Zero Hedge post show some other key happenings in the economy since Obama took office. The charts are produced by the Federal Reserve Bank of St. Louis, and the vertical bars represent times of recession.

1. Federal debt is soaring.

2. The Feds are printing an unprecedented amount of money.

3. Wages are stagnant.

4. Nearly 40 percent of Americans are not working.

5. The business workforce’s share of income is declining.

6. Spending on food stamps is soaring.

7. Student debt is soaring.

8. Home-ownership is still falling.

9. Real median family income is down.

Union: Obama threw workers ‘under the bus’ on KEYSTONE..



The main union for construction workers is accusing President Obama of throwing them “under the bus” by rejecting the Keystone XL oil pipeline.

The Laborers’ International Union of North America (LIUNA) is one of the few labor unions that broke with the majority of Democrats and supported the project, which Obama rejected Friday after a seven-year review.

“We are dismayed and disgusted that the President has once again thrown the members of LIUNA, and other hard-working, blue-collar workers under the bus of his vaunted ‘legacy,’ while doing little or nothing to make a real difference in global climate change,” Terry O’Sullivan, the union’s general president, said in a statement. “His actions are shameful.”The group’s statement cited a State Department report that Keystone could reduce greenhouse gas emissions when compared with oil transportation by rail.

“But facts apparently mean as little to the president as the construction jobs he repeatedly derided as insignificant because they are ‘temporary,’ ” O’Sullivan said. “Ironically, the very temporary nature of the president’s own job seems to be fueling a legacy of doing permanent harm to middle- and working class families.”

In Obama’s White House speech on the rejection, he dismissed the argument that the United States needs the jobs that Keystone would have created.

“If Congress is serious about wanting to create jobs, this was not the way to do it,” Obama said.

“If they want to do it, what we should be doing is passing a bipartisan infrastructure plan that, in the short term, could create more than 30 times as many jobs per year as the pipeline would, and in the long run would benefit our economy and our workers for decades to come.”

Obama: Keystone Would Not Serve U.S. National Interests

Published on Nov 6, 2015

Nov 6 — The Obama administration has rejected the Keystone XL pipeline. At a White House news conference, the president said the pipeline would not be a “silver bullet for the economy.” Obama said the pipeline “would not lower gas prices for American consumers,” pointing that “gas prices have already been falling.”

the first thing the pipeline would do is bring the gas prices back to 50 cents a liter

what the f is he on crack?

Obama is ridiculous