Australia secures major currency conversion deal with China bypassing USD

Discussion in 'Politics' started by Grandluxe, Apr 7, 2013.

  1. <B>Gillard trip underlines Australia's dependence on China
    By Monica Attard, for CNN</B>
    April 5, 2013 -- Updated 0251 GMT (1051 HKT)

    (CNN) -- Australian Prime Minister Julia Gillard is expected to secure a major currency conversion deal with her nation's number one trading partner as she begins a six-day visit to China Friday.

    The deal has ramifications beyond Beijing-Canberra ties as a step towards full convertibility of the yuan on international markets, denting the primacy of the U.S. dollar as the world's reserve currency of choice. Currently, Chinese and Australian companies must use the U.S. dollar as an intermediary for trade.

    Leading what she called the "most senior Australian political delegation" ever to visit China, Prime Minister Gillard will also be amongst the first western leaders to meet China's new President Xi Jinping.

    Under the currency deal that Prime Minister Gillard is expected to announce whilst in Shanghai, the Australian dollar would become directly convertible to Chinese yuan, overcoming the need to first convert to U.S. dollars. This would remove expensive exchange rate issues, cutting the cost to Australians of doing business in China, though the Prime Minister remained coy when asked to confirm the deal.

    Australia's dependence on China as it marches toward global economic dominance has been clear for many years now. In 2011-12, China was again Australia's largest two-way trading partner for goods and services, with trade topping $128 billion.

    More and more such deals as China dominates economically.
  2. pspr


    They are mostly setting up these deals with their major trading partners.

    And why shouldn't they do direct transfers instead of converting to dollars first? But doing it that way opens up both countries to currency shocks of the other. Continued stability is key.

    While China expands, it has it's own problems that are rising up. At some point China will price itself even with the market and competition will force it into realistic growth. Also, it will be many generations, if ever, that China's GDP per capita will come close to that of the U.S.

    The currency thing will resolve itself to the strength and stabilization of economies. America has been on a PC and liberal path. If it continues, so will our demise. It's as simple as that.
  3. America was designed to be a liberal nation, so she is just fulfilling her destiny.
  4. Lucrum


    NOT the modern definition of liberal.
  5. jem



    we were designed as a libertarian nation by classical liberals who believe in small limited govt and large freedoms and constitutional rights.

  6. Definition of Classical Liberalism

    Classical liberalism is a political ideology that values the freedom of individuals — including the freedom of religion, speech, press, assembly, and markets — as well as limited government.


    Classical liberalism
    From Wikipedia, the free encyclopedia

    Classical liberalism is a political ideology that emerged as a response to the Industrial Revolution and urbanization in the 19th century in Europe and the United States. It shares a number of beliefs with other belief systems belonging to liberalism, advocating civil liberties and political freedom, limited government, rule of law, and belief in free market.

  7. We hold these truths to be self evident, that all men are created equal.....
  8. see above
  9. see above
  10. "... that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness."

    They believed that their rights were "endowed" by God, not by governments. In fact, most of the Declaration of Independence is a list of grievances against the British Government: "The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world."

    The great "Liberals" of that era such as Thomas Jefferson, John Adams, Thomas Paine, Edmund Randolph, James Madison, Roger Sherman, James Wilson, and George Wythe all argued in favor of a small government.
    #10     Apr 7, 2013