Russia has decided to add the Chinese Yuan into their central bank as a reserve currency. It seems they don’t need to wait for the IMF to decide at their next meeting whether to add it into the IMF SDR basket or not. It looks like the Yuan will be added to the IMF basket anyway according to a former head of China’s IMF division. The sanctions that the US has put on state owned assets in Russia have not worked to the US’ liking. Investors went to China and Asia which became lucrative for them.
According to the Brics Post China will invest $1 trillion overseas in the next 5 years. President Li has met with 16 European countries;
At a meeting with the leaders of 16 Central and Eastern European countries (CEE) in the Serbian capital of Belgrade in December, Chinese Premier Li has announced a new investment fund of $3 billion to facilitate financing in the cash-strapped countries.“China will make the loan more preferential and reduce the cost of financing,” Li told the leaders.
China will make the loan more preferential. That means that by not using the IMF there will be either none of this or less of this...... Pensioners in Greece protesting about pension cuts, raising the retirement age, and cuts to health care.
‘Before they will release €7.2bn in aid that Greece needs to pay public-sector salaries and pensions and repay €1.6bn in IMF loans, those lenders want further reforms to the pensions system, including penalties to put people off taking early retirement and more cuts to even the lowest pensions’.
So the IMF (those lenders) wants further reforms. Will China’s debtors face the same reforms that the IMF imposes on their debtors? The IMF loan funds to 188 countries at present. Perhaps this is why Australia is having reforms as well;
• Shifting towards more efficient and simple taxes. In particular: by preventing a large share of individual taxpayers from facing higher tax rates through unchecked bracket creep (which would affect those on lower and middle incomes most), reducing the corporate tax rate to international levels, and eliminating stamp duties and minor taxes. This would be paid for by broadening the base of the GST and possibly raising the rate—while at least fully compensating those on lower incomes—and relying more on a broad-based real-estate tax and excises.
Note they want to REDUCE the corporate tax rate, eliminate stamp duties and minor taxes which will be paid for by the GST hike. So corporations pay less and the workers get an income tax break in one hand and then pay for it through the GST with the other hand.
If the Yuan becomes the reserve currency of the world, will they fix the problem of colluding banks? At least China put their corrupt bankers in jail like Iceland has done. Wall Street bankers will get a fine at most. Do the fines that are paid out go to the US government who then invests it with Wall Street bankers???? More on that can be read here.