Less demand for Dollars at a time when supply is created at record volumes........ There goes one more pool the Fed relies on heavily to absorb increasing QE dollar supply (ie pool of demand $s required for international settlement is rapidly shrinking not unlike a man's privates after a dip in a cool cottage lake.) The Fed can only soak up so much new supply via Treasury purchases, leaving the remainder to freely circulate into equities, commodities and all things at the retail level. Prices for things within these "end user pools of free floating greenbacks" will continue to accelerate commensurate with new and larger planned monetary injections (QE3 QE4 etc.) At some point the acceleration in prices of necessities of life becomes too much to bear to the average joe and beginning from that instant, the final endgame onset of hyperinflation kicks in. Savers begin liquidating their savings accounts & money market funds just to obtain bare essentials .... creating the hot potato dollar scenario as money velocity shoots through the roof. QE simply stops working when MMF pools are no longer willing or able to absorb more and more $Trillions. The endgame is getting closer. Meanwhile, tptb tinker with the PM access markets until participants in this much smaller QE sponge pool no longer wish to play paper games at all. What a fine mess.

ESL

BEIJING: Bank of India has become the first Indian bank to offer trade settlement facility between the rupee and the Chinese RMB from Hong Kong. This follows intense persuasion by the China Banking Regulatory Commission, which is trying to gain acceptance of the RMB as an international currency.

"We are the first Indian bank to offer real-time settlement facility in RMB to Indian exporters and importers. It will be save a lot of time because settlement in US dollars usually takes three working days," Arun Kumar Arora, BoI's chief executive in Hong Kong, said during a recent visit to meeting regulators in Beijing.

Indian buyers are at present making payments in US dollars, and they often have to convert rupee into the US currency for the purpose. The US dollars will no more be the intermediary currency as the BOI is offering direct settlement between the rupee and the Chinese money.

..................

http://timesofindia.indiatimes.com/world/china/Bank-of-India-becomes-first-to-offer-trade-settlement-in-yuan/articleshow/7565143.cms