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Ronnie. H.Rusli

Chinese Yuan (RMB) The New World Reserve Currency

by

Ronnie Higuchi Rusli

Editorial Department



Like it or not to date there is 1.33billion peoples in China holding and trusting Yuan (RMB) as transactional currency more than the total world population who’s trust and holding the Greenback. In the coming year more people in Asia-Pacific in particular plus Russia at least the govenment will be holding a sizeable Yuan currency than 5 years ago. It is not surpricing of the US policy of pivot Asia in order to curb the growing power of China Yuan other than military power

China’s President Xi Jinping and China Central Bank Advisor Xia Bin called an emergency meeting of the G-20 Member Countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States and the European Union) during G20 meeting in Australia.

Saudi Arabia, Turkey, South Africa, Argentina, Brazil, China, India, Mexico and Indonesia were reported to have been extremely concerned over the recent fall of Egypt and Tunisia's government. These is the countries in which the China Silk Road will be part of and not the least of the group of Eurasiastans, stretching from Europe to Russia and China. Others agenda are they expressed grave concern over the rapidly growing civil unrest caused by protests over rising food prices elsewhere, high unemployment and other poor economic conditions in the EU region. Unrest has recently erupted in from Greece down to Tunisia and spread to Egypt, Ethiopia, Nigeria, Libya, Morocco, Bahrain and possible Iran.

Speculation that China's "Jasmine Revolution" will emerge was basically empty talk in the west since China economic growing is unchallege world wide in term of its GDP growth, and able to be squelched through its economic iron firewall with a reserve close to US4 trillions. It is believed that this was what made President Xi finally take action proposing the China economic program of “all inclusive and all win”. Although China has long been concerned with inflation due to its economic growing faster that most of Asian countries. and world wide. A growing number of its population of 1.33 billion certaintly need jobs that can be proviode with China great economic movement to include all Eurasianstans

President Xi emphasized that “For nations outside the United States increasingly high food prices accounts for the largest part of our citizens' budget. He can not allow Janet Yellen, Ben Bernanke’s succesor monetization of the deficit to destabilize the developing economies by exporting inflation.” Many economist are quick to point out that in many LDCs (Least Developed Countries) food accounts for 30% of a families budget whereas in the United States it food is roughly 43%.

China has raised interest rates several times - despite US objections - in attempts to have people acccumulated their wealth by saving more other than to mitigate their inflation. Economists now predict that the United States will either default on its 128 trillion dollar debt or quickly suffer the consequences of hyperinflation through the Fed's continued monetization of the unpayable portion of the deficit. 57% of the deficit is unfunded (looted) The US economy has liabilities like Social Security and Medicare. 23% of the deficit is debt service. Economists said that FX rates will determine gas prices and food prices and the new value of the USD. "There was a growing concern that past Bernanke’s fiscal policies would prove the Mayan’s correct, it is suspect that the United States will find an excuse to wage financial nuclear war over this,'" as a possibility by rachet up the rate

To underscore that Ben Bernanke successor doesn't get the game of dominoes, which is closely resembles economics. Bernanke's and now Janet Yellen Quantitative Easing (money printing) exported higher food prices (inflation) to countries where unemployment is high and or food accounts for 30-50% of their budget. Although not all food prices are all priced in dollars and the more dollars they print reduces the value of the dollars already in the system.

With the coming Yuan as a reserve currecy it isn't in the best interest of the world to dump US dollar, and many leaders are going to be faced with doing just that or being deposed. This is why, for the last several weeks a repetitive banging on the re-value the Yuan currency overtly drum, if we don't we might never have the oppertunity to do so.


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