WAKE UP! China positioning itself for financial conquest
Who needs armies when you have money?
There's more concern that China could be making a move to displace the dollar as the world's reserve currency. Tuesday, the yuan reached a record high against the dollar, hitting 6.2004 to the dollar.
The Chinese government is believed to be behind the appreciation of the yuan as well as other recent measures that are making the world take notice.
China is already the world's second largest economy, and it has been growing rapidly over the past two decades. The country still has room to expand. Rich in natural resources, China is both tapping its own while seeking out new reserves, particularly in Africa.
At home, China has already pre-built entire cities, which stand empty, waiting to be populated at a later date. The ready-built cities area testament to the country's wealth and power and stand in contrast to what most people think about China.
Publicly, the government is moving to allow direct exchanges between the Australian dollar and the yuan, which cuts the U.S. dollar out of the exchange. The U.S. dollar is the world's reserve currency, but that distinction might not remain for much longer.
If China can get more countries to enter into direct exchanges, and cut out the dollar altogether, it may position its yuan to become the world's new reserve currency.
The impact of this to American markets would be significant, since the U.S. already trades at a favorable premium with most of the world and makes billions off simply providing the world's reserve currency. Now, China could be positioning itself to seize those profits from the U.S.
China is a large state, bent on world political and financial dominance. Despite its communist trappings, its leadership has slowly come to embrace capitalism, with the caveat that they control the wealth. With a labor pool of over one billion people and land and resources to spare, China is poised to beat America, and much of the free world, at its own game of capitalism.
The sooner traders awaken to this reality and understand that Chinese communism is just for looks, they can take steps to insulate themselves from the inevitable move by the Chinese government to displace the U.S. as the world's dominant economic power.
© 2013, Distributed by NEWS CONSORTIUM.
Pope Francis Prayer Intentions for December 2013
General Intention: Victimized Children. That children who are victims of abandonment or violence may find the love and protection they need.
Missionary Intention: Prepare the Savior's Coming. That Christians, enlightened by the Word incarnate, may prepare humanity for the Savior's coming.
Rate This Article
Leave a Comment
More Business & Economics News
- Black gold, Texas tea! How a major discovery in a tiny Australian mining town is about to change your world
- Unregulated? Bitcoin goes mainstream and why that's a good thing
- Casino mogul vows all-out war on online gambling
- Prepaid debit card, without fees offered by Google
- Digital killing the dinosaurs, Tribune Co. to cut 700
- Merit found in employees' complaints against Wal-Mart
- Same old tactic: Treasury to issue $1trillion in new debt at beginning of 2014
- PlayStation 4 sells one million units in U.S., Canada in first 24 hours
- U.S. Postal Service ONLY loses $5 billion this year
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.