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REPORT COPYRIGHT VIOLATION IN REPLY
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Message Subject
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This is IT !! U.S. Corporations Dump Dollar For Chinese Renminbi To Buy Imports !!
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Poster Handle
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G5 |
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Post Content
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[ link to www.alt-market.com] China’s renminbi is rapidly displacing the US dollar as a trading currency not only in Asia and Europe but now also in the US home market. The value of renminbi payments between the US and the rest of the world rose by 327 per cent in April this year from the same month a year ago (see chart) as more US corporations switched to using the Chinese currency to pay for imports from China, according to data from SWIFT, the international currency settlement firm. There is no validity to this story. The Chinese Yuan is a controlled currency artificially pegged to a low value against the Dollar to increase Chinese exports. Volcker said in his Bretton Woods speech this past May: Was the exorbitant privilege of the dollar as a reserve currency also a dangerous temptation to procrastinate - an impediment to timely policy adjustments, risking eventual breakdown?.... A new Bretton Woods conference? We are long ways from that. But surely events have raised, whether we want to admit it or not, some fundamental questions that have been ignored for decades. Maybe the reset is happening right in front of us. If U.S. companies choose to abandon dollars for imports, the dollar is in very big trouble, and China may get their wish of a new global currency after all - the renminbi.
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