With the 2 economic power of Asia ditching the USD, USD is now slowly and surely going down the drain.
This will cause USA to go into hyperinflation and coupled with it's horrendous economic outlook, USA may and possibly will look to destabilise the world in order to prop up it's USD fake value. Namely going to war with Iran and make trouble with North Korea and China.
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Beijing, Tokyo move to bypass US dollar
Yen-yuan trade plan to cut dependence on American currency
TOKYO — Japan and China will promote direct trading of the yen and yuan without using United States dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said on Sunday after a meeting between Prime Minister Yoshihiko Noda and Chinese Premier Wen Jiabao in Beijing.
Tokyo will also apply to buy Chinese bonds next year, allowing the investment of yuan that leaves China during the transactions — the yuan is a denomination of the renminbi. The move lessens demand for the US dollar and therefore its value and importance, especially considering the size of the Chinese and Japanese economies, the world’s second and third largest economies, respectively.
China is Japan’s biggest trading partner with ¥26.5 trillion (S$439.4 billion) in twoway transactions last year, from ¥9.2 trillion
a decade earlier. “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 Mr Ren Xianfang, a Beijing-based economist with IHS Global Insight.
China also announced a 70 billion yuan (S$14.3 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 South-east Asian Nations (ASEAN) and establish free trade zones.
The move to strengthen market cooperation “benefits the ease of trade and investments between the two countries”, Chinese Foreign Ministry spokesman Hong Lei said yesterday. “It strengthens the region’s ability to protect against risks and deal with challenges.”
Beijing’s concern over the volatility of the US dollar is well known, with Chinese Premier Wen noting he was concerned by the US Federal Reserve’s adoption of a loose monetary policy in the wake of the financial crisis.
Washington’s failure to preserve the US dollar’s value has prompted emerging countries such as China and Russia, as well as Saudi Arabia and South Korea, to challenge the greenback’s status as the global currency benchmark. The Japanese and Chinese governments said that encouraging direct yenyuan settlement should reduce currency risks and trading costs.
The pacts between Beijing and Tokyo also mirror attempts by fund managers to diversify as the two-year-old European debt crisis keeps global financial markets volatile. The yuan traded in Hong Kong’s offshore market gained 0.5 per cent offshore last week and touched 6.3324 per US dollar, the strongest level since trading started in July last year. Its discount to the exchange rate in Shanghai narrowed to 0.1 per cent, from a record 1.9 per cent on Sept 23.
Yesterday, the yuan gained 0.05 per cent in Shanghai to 6.3330 per dollar and was little changed at 6.3450 in Hong Kong. It strengthened 4.3 per cent this year, the best-performing Asian currency excluding the yen. The currency is allowed to trade 0.5 per cent on either side of that rate. - Bloomberg
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Those who think that USA is run by smart people who know what they are doing is going to be disappointed. USA has many career politicians who know nothing but playing politicking to remain in power. Watch what Senate majority leader Harry Reid said the most stupid thing and the media played ignorant. There are more examples of idiots like him running the top office in USA, including Obama. Not to mention the dumb majority of US voters. The real power running USA are those behind the scene contributing campaign funds to those dumb politicians.
<iframe width="640" height="360" src="http://www.youtube.com/embed/P-YqAFadmvk" frameborder="0" allowfullscreen></iframe>
This will cause USA to go into hyperinflation and coupled with it's horrendous economic outlook, USA may and possibly will look to destabilise the world in order to prop up it's USD fake value. Namely going to war with Iran and make trouble with North Korea and China.
======================================================================
Beijing, Tokyo move to bypass US dollar
Yen-yuan trade plan to cut dependence on American currency
TOKYO — Japan and China will promote direct trading of the yen and yuan without using United States dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said on Sunday after a meeting between Prime Minister Yoshihiko Noda and Chinese Premier Wen Jiabao in Beijing.
Tokyo will also apply to buy Chinese bonds next year, allowing the investment of yuan that leaves China during the transactions — the yuan is a denomination of the renminbi. The move lessens demand for the US dollar and therefore its value and importance, especially considering the size of the Chinese and Japanese economies, the world’s second and third largest economies, respectively.
China is Japan’s biggest trading partner with ¥26.5 trillion (S$439.4 billion) in twoway transactions last year, from ¥9.2 trillion
a decade earlier. “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 Mr Ren Xianfang, a Beijing-based economist with IHS Global Insight.
China also announced a 70 billion yuan (S$14.3 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 South-east Asian Nations (ASEAN) and establish free trade zones.
The move to strengthen market cooperation “benefits the ease of trade and investments between the two countries”, Chinese Foreign Ministry spokesman Hong Lei said yesterday. “It strengthens the region’s ability to protect against risks and deal with challenges.”
Beijing’s concern over the volatility of the US dollar is well known, with Chinese Premier Wen noting he was concerned by the US Federal Reserve’s adoption of a loose monetary policy in the wake of the financial crisis.
Washington’s failure to preserve the US dollar’s value has prompted emerging countries such as China and Russia, as well as Saudi Arabia and South Korea, to challenge the greenback’s status as the global currency benchmark. The Japanese and Chinese governments said that encouraging direct yenyuan settlement should reduce currency risks and trading costs.
The pacts between Beijing and Tokyo also mirror attempts by fund managers to diversify as the two-year-old European debt crisis keeps global financial markets volatile. The yuan traded in Hong Kong’s offshore market gained 0.5 per cent offshore last week and touched 6.3324 per US dollar, the strongest level since trading started in July last year. Its discount to the exchange rate in Shanghai narrowed to 0.1 per cent, from a record 1.9 per cent on Sept 23.
Yesterday, the yuan gained 0.05 per cent in Shanghai to 6.3330 per dollar and was little changed at 6.3450 in Hong Kong. It strengthened 4.3 per cent this year, the best-performing Asian currency excluding the yen. The currency is allowed to trade 0.5 per cent on either side of that rate. - Bloomberg
====================================================================================
Those who think that USA is run by smart people who know what they are doing is going to be disappointed. USA has many career politicians who know nothing but playing politicking to remain in power. Watch what Senate majority leader Harry Reid said the most stupid thing and the media played ignorant. There are more examples of idiots like him running the top office in USA, including Obama. Not to mention the dumb majority of US voters. The real power running USA are those behind the scene contributing campaign funds to those dumb politicians.
<iframe width="640" height="360" src="http://www.youtube.com/embed/P-YqAFadmvk" frameborder="0" allowfullscreen></iframe>
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