CCP want Yuan to replace USD as global reserve currency. Faster buy Yuan while stocks last.
CCP want Yuan to replace USD as global reserve currency. Faster buy Yuan while stocks last.
erm, wouldn't it backfire for USA?
since they import tonnes of stuff from China. and with a lower exchange rate against the RMB... they stand to suffer more with the higher material cost in RMB.
unless we talking about USA going to export alot more when her dollar is low. so much so that the net export will far exceed import?
First & Foremost... Made in China Products ARE ALREADY INCREASING IN PRICE.
It will just be a matter of time, within months, the END USER MARKET feels the price increase.
The first group of people to receive the shock are IMPORTERS of China Products.
This will propagate down the channels till the End Users... at least by 3 to 5% for now...
With USA printing fiat dollars at will, they don't even have to care about their importation from China, since they CONTROL the MONETARY POLICY of USD.
Based on some circulation of news saying that Obama administration will be injecting more bail out funds this coming November, and based on the current Financial System Rules of USA (for every USD 1 created, = BANKS can LOAN OUT USD 9) It is not difficult to imagine, what will happen by November.
USA devaluation of USD serve to reduce their sovereign debts of the world. China would be affected the most, since it has most of USA's T-Bills.
When USA succeeded in forcing YUAN value to go up say, 30%, isn't it the same as saying, 30% of USA's debt to China is reduced?
On top of that, with inflated USD, I suspect the debt reduced is even more.
The entire financial system is truly a joke, non-functional, and based on greed. The world that we live today is really functioning on Monopoly Money if you think about it.
USD, the most powerful product the world have seen, printed from (cotton) paper, in exchange for true resources from poorer nations, give out loans from world bank, making the poorer nations (with natural resources) even poorer, and force selling their natural resources at cheaper price...
This is colonization in a different form, using USD as a political tool.
USA's action will not go down the history books well with China... and whatever they do now is not going to bring back jobs to their already 15% or more unemployment rate country.
Preventing foreclosures of more than 1 million homes based on the subprime crisis is just delaying the inevitable...
finding scapegoats to be blamed for the subprime crisis would not be enough.
USA is going down economically... likewise, Europe. (With exception of Germany)
USA & EUROPE's GOLDEN AGE is finally coming to an end...
Their 400 years of plundering the world, colonialism, stealing, politicking, warring, all in the name of resources...
The ASIAN GOLDEN AGE started... and CHINA will have the strongest political power in this coming century... The world's business language will be Chinese from decades to come. 来来来,大家开始讲华语!
The arrogance of the west is reaping the karmic debt it created... 善有善报。。。 恶有恶报。。。 阿弥陀佛。。。
I don't think so. Being an widely preferred international reserve currency is an double edged sword. When some other countries accumulate sufficient of your currency, they can influence your currency value and in turn your interest rate and in turn many other economical factors. That's why for example, US is mixing begging and bluffing (软硬兼施)without really being in control. If US depresses its own USD further, China would suffer a loss but it's just paper loss, and well affordable. But if China dumps USD in retaliation, USD will face collapse. China would have to take losses initially of course, but could be recooped once USD bottoms out and buy back. That's an even worse scenario for US, nightmarish indeed.
No the USA is the only nation in the world where a rise in commodity prices does not translate into higher net import prices because commodities are priced in US$.
Most exporters to the USA with appreciating currencies lower their prices to offset gains to the world's largest consumer market to prevent losing market share - the only market in the world to command such purchasing power - so consumers prices will rise much slower.
The US Fed is trying to create inflation. Americans have enjoyed 0.8% for some time while the rest of the world's economies are much higher so in essence trying to export inflation to China - and its working.
We are all paying a high price but America always wins.
I beg to differ. I think the subprime crisis was engineered to give a pretext for the US to go into fiat paper money inflation mode.
The FED by printing paper money at will, they are infact extinguishing the stored wealth of countries keeping the USD as a reserve currency.
Infact, I think the US is trying use hyperinflation to bankrupt all the nations on this globe. As it is, oil, gold and commodities are still priced in USD despite the instability of the dollar.
Once the prices, due to hyperinflation, outstrips the supply of USD, nations will to borrow USD, restoring stablity to the plunging dollar.
No conspiracy theory here lah. US subprime crisis due to easy credit. greenspan kept interest rate low for too long. Too much money in the system. Did not help with China's buying of US debt which added to even more liquidity.
US does not want to bankrupt the world. if so then who will buy their products?
A lot of this yuan talk is politics. ALL the BRIC countries are against US pressure to strengthen their currency. China got hit in the head because it is the largest and most powerful economy among the BRIC. But if you look at BRIC exchange rates with US$ all the same lah.
At the end of the day, China should free float Yuan - nothing to fear with that huge reserves. US should focus on its budget deficits (it cannot afford to police the world). US should recognize that it CANNOT remain as number one especially if you have a country coming at you with 4 times the population. and one that is even more "free market capitalist" than the US.
My fear is widespread trade war which will sink the global economy. There are no winners.
Not true - oil prices, gold have increases because of weakening US$. So while it may be priced in US$ the weakness of US$ is reflected.
Pressures in increase Yuan will only decrease inflation within China.
Presures to decrease US$ will bring about inflation within the US. That is something Feds want. But very risky game because once inflation sets in it is hard to tame.
Made in China products will cost more and that will add to inflation in the US.
China product would be 10% more epensive in average but still much much cheaper that US/Europe product. The whole world will still by made in China even up by 10%.
Ony Ang Moh so called 1st world country have the china currency problem.
Is just because they cannot manage their own debt balme other. Just like asking Bank/Ah Long for a loan latter cannot repay back. Blame the bank/ah long for loan they money. No one force them to borrow. They the one asking for the loan.
FUCK the US and EU.
CCP want Yuan to replace USD as global reserve currency. Faster buy Yuan while stocks last.