China, Japan To Back Direct Trade of Currencies Bypassing Dollar!

• The Chinese and Japanese know what is about to happen. The monetary endgame is a collapse of the USD. The interbank forex market trades using the USD as base currency. All other currencies are quoted against the USD. So when you want to go from JPY to CNY, you need to go from JPY to USD, then from USD to CNY. When the USD collapses, the current interbank forex system will be frozen dead. The only way for countries to do foreign exchange for trade settlement is via direct agreements between individual countries. This is essentially what is happening with this new forex agreement between Japan and China (ie. a direct Chinese central bank to Japanese central bank agreement to exchange CNY for JPY and vice versa).
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• This is an extremely significant event. It says: the 2nd and 3rd largest economies are moving away from reliance of the USD. It spells the eventual doom of the USD. Politically, this is a major threat to the Anglo-American (western) Illuminist’s monetary hegemony. Will the western Illuminati give up their stranglehold of a world reserve currency? I don’t think so! War is brewing between the west and China over this issue! Yes! Tt is World War 3 and likely to start in 2H2012!
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  China, Japan to Back Direct Trade of Currencies! 
  By Toru Fujioka, http://www.bloomberg.com/ 
  Japan and China will promote direct trading of the yen and yuan without using dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said.
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  Japan will also apply to buy Chinese bonds next year, allowing the investment of renminbi that leaves China during the transactions, the Japanese government said in a statement after a meeting between Prime Minister Yoshihiko Noda and Chinese Premier Wen Jiabao in Beijing yesterday. Encouraging direct yen-yuan settlement should reduce currency risks and trading costs, the Japanese and Chinese governments said.
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  China is Japan’s biggest trading partner with 26.5 trillion yen ($340 billion) in two-way transactions last year, from 9.2 trillion yen a decade earlier. The pacts between the world’s second- and third-largest economies mirror attempts by fund managers to diversify as the two-year-old European debt crisis keeps global financial markets volatile.
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  “Given the huge size of the trade volume between Asia’s two biggest economies, this agreement is much more significant than any other pacts China has signed with other nations,” said Ren Xianfang, a Beijing-based economist with IHS Global Insight Ltd.
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  Currency Swap
  China also announced a 70 billion yuan ($11 billion) currency swap agreement with Thailand last week as part of a plan outlined in October to promote the use of the yuan in the Association of Southeast Asian Nations and establish free trade zones.
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  Central banks from Thailand to Nigeria plan to start buying yuan assets as slowing global growth has capped interest rates in the U.S. and Europe.
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  The move by China and Japan to strengthen market cooperation “benefits the ease of trade and investments between the two countries,” Chinese Foreign Ministry spokesman Hong Lei said today in Beijing. “It strengthens the region’s ability to protect against risks and deal with challenges.”

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