I don't know. If one knew, they might be inclined to invest in some Yuans. But I do know that the WTO has an agenda to supplant the Dollar with the Euro as the "World Currency". WTO decisions are not arrived at on an even playing field for the U.S. and I think this is mainly instigated by our "good friends" the French, Germans and Russians.
They've been trying that ever since they first thought up a European currency (and some of us suspect that is half the reason they came up with the Euro in the first place). So far, it's not working - folks would rather have US dollars than currency at the command of a committee of socialists. I'm not saying the US Fed is any sort of white angel, but unless the Fed does something stupid (and they can), or the Euro's go capitalistic (and they can't ), the Greenback will be the world currency. I wonder if being the World Currency is as good as it sounds. Sure, it's nice that all the nonUSA folks want to lend money to help bloat the USA government, it's nice that all currencies have an easy-to-find rate against the buck (and plenty of folks can change money for ya), but other than that, how important is this?
Combine booming demand in China with a falling currency pegged to the dollar, how soon before inflation in that country becomes overwhelming? Will China resort to a revaluation of the yuan and start to dump US treasuries as the peg ends? Will Japan have no choice but to follow suit and begin paring back their treasury holdings as well? In other words, are our interest rates at the mercy of an overheated Asian boom/bust cycle from which we are barely benefitting?
Interesting point. I wouldn't be too concerned though, China still has a fair amount of slack in its economy. On the other hand, Chinese inflation would could the real exchange rate of the Yuan/Renmimbi vs the USD (assuming a fixed nominal cross) so that might please a few people in the states...
Agreed, actually some think if the Yuan were to float now that it may even drop due to structural problems remaining in China's banking system. Also seems like Asian countries' holdings of US treasuries getting more buzz lately: "The Bundesbank also said today it sees a ``risk'' for currency and exchange rate levels if Asian central banks were to scale back their participation in the U.S. bond market."
Corporatism isn't so great either. There's a quote by Mussolini (got this from Bushwacked): Facism should really be called corporatism because it is the perfect blending of the state and corporation power. I had to paraphrase because I didn't have the quote at hand, but that's the gist. Don't know why people think it is so wonderful to hand over power to a bunch of plutocratic elites. m
Mussolini said : âThe first stage of fascism, should more appropriately be called Corporatism because it is a merger of state and Corporate power.â So it is only the FIRST STAGE, for the SECOND and NEXT STAGES, one can guess... See also Mike Milken's story (http://edwardjayepstein.com/archived/milken.htm) the Bond's Trader who has nearly threatened Corporatism World according to Sir James Goldsmith (one of those super-elite - he is in control of General Motors): http://edwardjayepstein.com/archived/milken4.htm: "I don't know whether or not Mike Milken realized at the time that he had found a way of financing an immense revolution in America, but now he has witnessed the full power of the establishment triangle: big business, big unions and big government." He then added, " As I European, I witnessed the same alliance trying to avoid change and neutralizing those responsible for it." As you can hear Big Governement and Big Unions are not really there to defend american workers and the majority of citizens ... same for Europe haha ! The super elites of both blocks control the Corporatism of the other blocks : they don't care about their nations they are internationalists that's why they have both financed all "internationalist" revolutions from Nazism to Communism. Other financial articles here: http://edwardjayepstein.com/archive_mammon.htm
Pff it's just a farce of making people believe that there is competition between two blocks whereas they want a single world government so there will be only one currency at term dollar or euro it doesn't matter. Divide and Reign remember this is the basic of Geostrategy: they need to create a conflict between the two first so as to create a crisis and they will then suggest "the way to solve this problem is to have one single world currency" (with an intermediate stage perhaps with fixed or narrow range parity between euro and dollar) that's what they've done with europe currencies, and after having a single currency they will talk about having one european government and then one world government: London Daily Mail The Euro Divide Hits No 10 Man The Prime Minister's chief of staff was embroiled in a political row last night after his journalist wife attacked Tony Blair's "fundamentally dishonest" policy on Europe. Jonathan Powell, Mr. Blair's right-hand man in Downing Street, found himself torn between loyalty to his boss and loyalty to his wife, Sarah Helm. In a hard-hitting newspaper article, Miss Helm launched an attack on the Government's entire EU stance. She accused Mr. Blair of being part of a major deception because he knows that a "super-state is in the making", but refuses to admit it. The Prime Minister's spokesman took the unprecedented step of intervening between man and wife, stating bluntly that Mr. Powell does not agree with Miss Helm. The spokesman said Mr.`Powell did not share the views of his brother Sir Charles Powell, who was Margaret Thatcher's private secretary and drafted the Bruges speech in which she spoke out against further European integration. The spokesman went on: "Neither does he share the views of his wife. She is a journalist and he is the Prime Minister's chief of staff." It was easy to see why Number 10 was so anxious to distance the Prime Minister from the article. Miss Helm, an expert on EU politics, pulled no punches in exposing the real agenda taking shape in Brussels. She said that there were only two people telling the truth - German Foreign Minister Joschka Fischer, who says Europe must have its own government and president and Yorkshire millionaire Paul Sykes, who has pledged to use his fortune to fight a European federal state. "Meanwhile Tony Blair, Lionel Jospin of France, Chancellor Schroeder of Germany, and Jose Maria Aznar of Spain, maintain a position which is fundamentally dishonest". Miss Helm went on. "They pretend federalism is no longer on the European agenda and attempt to convince their voters that the European Union can be governed by a system of loose "intergovernmental co-operation" which, they claim, is no threat to national sovereignty." "But they all know a super-state is in the making because they are all taking part in its construction." "Even those who are hesitating - like Blair - know they cannot resist the momentum for long." She turned the knife by saying Mr. Blair and other leaders "know their electorates have become nervous about more integration so they are leading their people blindfold down the road."