10/12/2014 - Financial Repression Driving De-Dollarization Trend
Article identifies how South Koreans are dramatically increasing their bank deposits in Chinese currency – 55 times higher than the same period last year .. given inflation in Korea, a zero-interest rate financial repression-environment & frothy stock markets, South Koreans are diversifying their currency exposure .. “This is a well known scenario. Just as Europeans from countries with weaker currencies and economic prospects used to safeguard their savings by holding them in Deutschmarks and Swiss franks, we see the same trend happening today .. Individuals, companies and even governments are diversifying their currency exposure — mostly on the account of the U.S. dollar. Renminbi denominated bonds are now being issued by businesses all over the world– heck, even McDonald’s issued a renminbi bond .. And now the UK will become the first country in the world other than China to issue renminbi denominated government debt.”
