Top China Banker Demands US Sales of "Yuan Bonds"

On Sunday, Guo Shuqing, a top Chinese Banker, suggested the US and World Bank sell bonds denominated in Chinese yuan.

"I think the U.S. government and the World Bank can consider the possibility of issuing renminbi bonds in the Hong Kong market and the Shanghai market," he said.

The clamor by China for a diversification of the US-centric world of finance continues to grow louder by the day, it seems.

Hat tip: Ed Steer at Casey Daily Resource Plus for finding this story

Over the weekend, we mentioned that the US dollar may be due for a short term rally, and that rally is likely to be shortlived. After a big day yesterday, the dollar is in the tank today...could the rally be over already? Even we didn't think it'd be that shortlived!

China Asks For New World Reserve Currency

In an "open letter" on the official website of The People's Bank of China - which I didn't know existed until today - Chinese central banker Zhou Xiaochuan called for a new world reserve currency.

The outbreak of the current crisis and its spillover in the world have confronted us with a long-existing but still unanswered question,i.e., what kind of international reserve currency do we need to secure global financial stability and facilitate world economic growth, which was one of the purposes for establishing the IMF? There were various institutional arrangements in an attempt to find a solution, including the Silver Standard, the Gold Standard, the Gold Exchange Standard and the Bretton Woods system. The above question, however, as the ongoing financial crisis demonstrates, is far from being solved, and has become even more severe due to the inherent weaknesses of the current international monetary system

While the US Dollar is not explictly singled out in the letter- it obviously might as well be.  It's a quick read, worth checking out if you haven't already.

The real question, I think, is how much of this letter is posturing vs. genuine intent to act.  I'm not sure yet, but this is an awful lot of noise coming from China recently on this subject, following up Luo Ping's comments about US Treasury Bonds.

China Discovers Credit Cards

Oh man - if you thought the US could create a credit bubble, you ain't seen nothing yet.

The always entertaining Mogambo Guru of the Daily Reckoning comments that an increase in Chinese citizen credit card usage "is also in line with government goals."

This is a country that saves a huge percentage of their income, and has very little debt, so there is no shortage of dry powder raring to go. These people are not going to give up the amazing progress they've achieved over the past 5-10 years.

No matter what fate awaits the US, the commodity bull market is alive and well.

Jim Rogers Interview on resourceinvestor.com

Recent interview by our hero, Jim Rogers, on Resource Investor.

Much of the same material we've talked about here before, but I tried to read anything by Jim Rogers I can find. He reiterated his best investment ideas for right now:

• agriculture
• Chinese renminbi
• Swiss franc
• Japanese yen
• short Investment Banks

I have been reading that a lot of value investors are taking a hard look at Japan - stocks are so beaten down that many are trading for the cash on the books. Maybe another good way to get Yen exposure - something to investigate.