http://www.bloomberg.com/apps/news?pid=20601087&sid=aJvfiKnKAsR4 One questions the logic of the appointment of a chieftan money printer whereby the people in charge are mostly academics who count on other country's handouts to stay afloat.... Before one tries to equilibrate labor pay worldwide.... How about this.... An unencumbered direct access exchange for all securities.....open to anyone who has internet access ...in the currency of choice....no taxes allowed by any government on any transaction.... Why....because the securities back the enterprises of value.... Countries.... particularly the US are not ready to equilibrate their labor to Chinese rates.... A stack of paper supported by the academic mouths residing in a concrete box has no value....
This is the biggest story in years that no one is paying attention to. This is nothing less than an act of financial war by the Chinese, who have seen their country built by at least 50% off the backs of the U.S. consumer. ...the fact no one is emphasizing this demonstrates the apathy of America.
It is not covered? It is covered everyday in CNBC and Bloomberg. It is call good old business competition.
China has completely lost this battle. Their chance to change things was last year, and you saw what happened. The financial warfare has tipped in the favor of the dollar standard. If China resumes this rhetoric, you can expect to see many more trade issues raised by the US, as you've seen starting this week. China is the one in a weak position here. The us economy is driven by credit, which is easily managed by federal reserve money printing. China's economy is driven by exports. If they begin a trade war, they will see their economy collapse.
They are making their move......whether successful or not time will tell. US position is not enviable at the present.
The US dollar remaining the reserve currency it is now is untenable given the way the world has developed. We are no longer in a cold war, no longer in a post-colonial era, and no longer in a clearly divided developed vs third world era. Technology, innovation, and knowledge are now too widespread across the globe. It is only a matter of time before we see a change towards something more "participative" ... although I agree that the USD will still remain one of the central currencies as the US is and will remain the leader of the West and of the free world.