GostHacked Posted January 17, 2011 Report Posted January 17, 2011 (edited) edit - I messed up the title .... Dollar is OUT, Yuan is IN. http://online.wsj.com/article/SB10001424052748703551604576085803801776090.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTop So is everyone comfortable with China being the new superpower on the block? It was only a matter of time before the greenback takes enough of a dive (aka devalued) for another currency to take over on the world stage. And at this point, short of war, there really is no stopping China. China has been coming up in the ranks for some time, and it was (still is) inevitable that China is the next and new top dog. I am no fan of China, so I am not sure what this means for Canada, but it does not seem to bode well for our friends to the south. China will not be the next Russia, meaning that they are not going to spend themselves into the ground by rapid military build up, China is ramping it up on the cheap. I think the media release of the Chinese J-20 stealth fighter scares some people. So what is in store this year for the world markets? We are going to be hearing a lot more about China this year that I can promise. Edited January 17, 2011 by GostHacked Quote
nicky10013 Posted January 17, 2011 Report Posted January 17, 2011 edit - I messed up the title .... Dollar is OUT, Yuan is IN. http://online.wsj.com/article/SB10001424052748703551604576085803801776090.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTop So is everyone comfortable with China being the new superpower on the block? It was only a matter of time before the greenback takes enough of a dive (aka devalued) for another currency to take over on the world stage. And at this point, short of war, there really is no stopping China. China has been coming up in the ranks for some time, and it was (still is) inevitable that China is the next and new top dog. I am no fan of China, so I am not sure what this means for Canada, but it does not seem to bode well for our friends to the south. China will not be the next Russia, meaning that they are not going to spend themselves into the ground by rapid military build up, China is ramping it up on the cheap. I think the media release of the Chinese J-20 stealth fighter scares some people. So what is in store this year for the world markets? We are going to be hearing a lot more about China this year that I can promise. I think it'll be the Euro. Quote
Bonam Posted January 17, 2011 Report Posted January 17, 2011 edit - I messed up the title .... Dollar is OUT, Yuan is IN. http://online.wsj.com/article/SB10001424052748703551604576085803801776090.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTop So is everyone comfortable with China being the new superpower on the block? It was only a matter of time before the greenback takes enough of a dive (aka devalued) for another currency to take over on the world stage. And at this point, short of war, there really is no stopping China. China has been coming up in the ranks for some time, and it was (still is) inevitable that China is the next and new top dog. I am no fan of China, so I am not sure what this means for Canada, but it does not seem to bode well for our friends to the south. China will not be the next Russia, meaning that they are not going to spend themselves into the ground by rapid military build up, China is ramping it up on the cheap. I think the media release of the Chinese J-20 stealth fighter scares some people. So what is in store this year for the world markets? We are going to be hearing a lot more about China this year that I can promise. China has a very long way to go yet, despite its rapid progress to date. Quote
bush_cheney2004 Posted January 17, 2011 Report Posted January 17, 2011 ...So what is in store this year for the world markets? We are going to be hearing a lot more about China this year that I can promise. I think it's great...China will have to really float their yuan after years of stalling. China will become the USA's #1 trading partner, displacing Canada. Welcome to the big boy club! Quote Economics trumps Virtue.
dre Posted January 17, 2011 Report Posted January 17, 2011 (edited) I think its a mistake to use a national currency as the global reserve, mainly because of whats known as the triffin dilemna. Its unlikely that China had any desire for their currency to become a widely held reserve. It would make more sense to have some kind of supranational currency, like the Bancor proposed by Keynes in the 1940's. Interestingly enough, Zhou Xiaochuan (Govenor of the People's Bank of China) feels the same way. He has expressed no interest at all in having Chinese currency or any other national currency replace the US dollar as a reserve... mostly because he doesnt want China to end up in the same boat the US is in now. He argued that a national currency was unsuitable as a global reserve currency because of the Triffin dilemma - the difficulty faced by reserve currency issuers in trying to simultaneously achieve their domestic monetary policy goals and meet other countries' demand for reserve currency. He doesnt want to go as far as creating the "Bancor" but instead has suggested using IMF SDRs as the unit of economic account between nations. Just about every other panel that has looked into the issue has come to a similar conclusion. Edited January 17, 2011 by dre Quote I question things because I am human. And call no one my father who's no closer than a stranger
GostHacked Posted January 17, 2011 Author Report Posted January 17, 2011 I think it'll be the Euro. The Euro is done in under 5 years. The strain in the EU economy is showing with several countries getting bailed out. That will only last so long before the other member states pull out and say screw it .. The EU is a lost cause. Quote
bloodyminded Posted January 17, 2011 Report Posted January 17, 2011 (edited) edit - I messed up the title .... Dollar is OUT, Yuan is IN. http://online.wsj.com/article/SB10001424052748703551604576085803801776090.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTop So is everyone comfortable with China being the new superpower on the block? It was only a matter of time before the greenback takes enough of a dive (aka devalued) for another currency to take over on the world stage. And at this point, short of war, there really is no stopping China. China has been coming up in the ranks for some time, and it was (still is) inevitable that China is the next and new top dog. I am no fan of China, so I am not sure what this means for Canada, but it does not seem to bode well for our friends to the south. China will not be the next Russia, meaning that they are not going to spend themselves into the ground by rapid military build up, China is ramping it up on the cheap. I think the media release of the Chinese J-20 stealth fighter scares some people. So what is in store this year for the world markets? We are going to be hearing a lot more about China this year that I can promise. Is it really so certain that China will become the next superpower? I'm not saying it's impossible; but the time-line we're talking will likely be long enough that the future becomes very difficult to predict. Like most people, I think American supremacy will end. But I base this opinion, at bottom, only on the understanding that great powers have always diminished before. What I don't think is that it's bound to be happening soon. It could be another century, maybe less...maybe more. As for potential Chinese supremacy being bad for the U.S.--not necessarily. They might take a lesson from the UK, and fill that sort of position in regards to the superpower. Maybe America will be the poodle to a controversial Chinese invasion of India in 2120! Edited January 17, 2011 by bloodyminded Quote As scarce as truth is, the supply has always been in excess of the demand. --Josh Billings
bush_cheney2004 Posted January 17, 2011 Report Posted January 17, 2011 I think its a mistake to use a national currency as the global reserve, mainly because of whats known as the triffin dilemna.... No worries...China's yuan is a long way from becoming the global reserve currency even if they wanted it to. The US dollar has been so only because of historical circumstance and economic hegemony. Good luck China...been there...done that! Quote Economics trumps Virtue.
dre Posted January 17, 2011 Report Posted January 17, 2011 I think it's great...China will have to really float their yuan after years of stalling. China will become the USA's #1 trading partner, displacing Canada. Welcome to the big boy club! No the opposite is true. If the US dollar is replaced as a global reserve Americans will do a lot LESS business with China, not more. And thats exactly why countries like China have been bailing the US out and pumping zillions of dollars into keeping the US dollar as strong as possible. Quote I question things because I am human. And call no one my father who's no closer than a stranger
bush_cheney2004 Posted January 17, 2011 Report Posted January 17, 2011 (edited) No the opposite is true. If the US dollar is replaced as a global reserve Americans will do a lot LESS business with China, not more. And thats exactly why countries like China have been bailing the US out and pumping zillions of dollars into keeping the US dollar as strong as possible. Sure...that's why Canadian exports are doing so well with the higher loonie. The US has been maintaining a weak dollar policy by design. Edited January 17, 2011 by bush_cheney2004 Quote Economics trumps Virtue.
Guest American Woman Posted January 17, 2011 Report Posted January 17, 2011 edit - I messed up the title .... Dollar is OUT, Yuan is IN. Just so you know, you can edit your title. Just click on "edit" and then click on "use full editor" ..... Quote
nicky10013 Posted January 17, 2011 Report Posted January 17, 2011 The Euro is done in under 5 years. The strain in the EU economy is showing with several countries getting bailed out. That will only last so long before the other member states pull out and say screw it .. The EU is a lost cause. Countries in the eurozone won't pull out because the Euro failing is a far worse option than bailing nations out. Let's forget for a minute that old currencies aren't even in print anymore. Let's also forget that it took over 3 years to prepare for the introduction of the euro through the changing of the most simple things such as cash machines and registers and vending machines and the like. If the eurozone collapsed that there would be runs on banks and the financial situation would become that much weaker. Don't take my word for it, though. The Economist has been one of the biggest merchants in euroskepticism and yet, here it is in their own words. http://www.economist.com/node/17629661?story_id=17629661 A break-up might happen in one of two ways. One or more weak members (Greece, Ireland, Portugal, perhaps Spain) might leave, presumably to devalue their new currency. Or a fed-up Germany, possibly joined by the Netherlands and Austria, could decide to junk the euro and restore the D-mark, which would then appreciate. In either case, the costs would be enormous. For a start, the technical difficulties of reintroducing a national currency, reprogramming computers and vending machines, minting coins and printing notes are huge (three years’ preparation was needed for the euro). Any hint that a weak country was about to leave would lead to runs on deposits, further weakening troubled banks. That would result in capital controls and perhaps limits on bank withdrawals, which in turn would strangle commerce. Leavers would be cut off from foreign finance, perhaps for years, further starving their economies of funds. The calculation would be only slightly better if the euro escapee were Germany. Again, there would be bank runs in Europe as depositors fled weaker countries, leading to the reintroduction of capital controls. Even if German banks gained deposits, their large euro-zone assets would be marked down: Germany, remember, is the system’s biggest creditor. Lastly, German exporters, having been big beneficiaries of a more stable single currency, would howl at being landed once again with a sharply rising D-mark. If the economics of pulling apart the euro look dubious, the politics risks detonating a chain reaction that would threaten the fabric of the single market and the EU itself. The EU and the euro have been Germany’s post-war anchors. If it abandoned the currency, at huge cost, and left the rest of the euro zone to fend for itself, its commitment to the EU would be in serious doubt. If a weaker country left, risking not just European banks but also the currency, it would become a pariah exporting its pain to its neighbours. Once capital controls were in place Europe’s financial markets would be in tatters and it would be hard to preserve cross-border European trade. The collapse of the single market, which has done more than anything else to knit Europe together, would threaten the EU itself. However much countries may now regret joining the euro, leaving it does not make sense. But the fact that it ought to survive does not mean that it will. And unless Europe’s leaders move further and faster, it might not. Since the article was written the EU has moved forward with binding legislation that would force member states to bail out countries in the future. Portugal (I believe) was reported in the news the other week to having no problem selling their bonds which sent markets up. Even through the sovereign debt crisis, the Euro has actually held it's value pretty well against other currencies. With the guarantee that EU members won't default from the ECB along with the high interest rates due to the fear of default (which there really isn't much of a chance of), if I had liquid cash I'd be buying Greek bonds. Quote
GostHacked Posted January 17, 2011 Author Report Posted January 17, 2011 Just so you know, you can edit your title. Just click on "edit" and then click on "use full editor" ..... Will do !!! I'll fix that up! Quote
bud Posted January 17, 2011 Report Posted January 17, 2011 Sure...that's why Canadian exports are doing so well with the higher loonie. The US has been maintaining a weak dollar policy by design. yes. it has nothing to do with the incredible deficit accumulated during the bush era and continues under obama. it also has nothing to do with the irresponsibility we've seen by the financial institutions. it's all by design. muhahaha... bushcheney plan is all coming together... muhahaha.. usa usa usa! Quote http://whoprofits.org/
dre Posted January 17, 2011 Report Posted January 17, 2011 yes. it has nothing to do with the incredible deficit accumulated during the bush era and continues under obama. it also has nothing to do with the irresponsibility we've seen by the financial institutions. it's all by design. muhahaha... bushcheney plan is all coming together... muhahaha.. usa usa usa! Theres some design to it. Western governments dont even TRY to achieve zero inflation rates. They mostly have adopted a monetary policy that collapses their own currency at about 3% per year. The problem of course is this is all calculated by using a basket of commonly sought goods and services, so some of the inflation can get hidden. For example... a US dollar can buy a lot more DVD players and other non-durable consumer items than it could a decade ago... but it can buy a lot less gasoline or food. If you built the basket with staples and necessities you would see that currencies are collapsing quite a bit faster than they would have us believe. Quote I question things because I am human. And call no one my father who's no closer than a stranger
pinko Posted January 17, 2011 Report Posted January 17, 2011 Aren't the Repugs talking about reneging on the debt. Quote
dre Posted January 17, 2011 Report Posted January 17, 2011 Aren't the Repugs talking about reneging on the debt. How would they go about that? Quote I question things because I am human. And call no one my father who's no closer than a stranger
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