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| Economy |
| Top Chinese banker Guo Shuqing calls for wider use of yuan |
| 2009-06-09 |
| Via InstaPundit The head of China's second-largest bank has said the United States government should start issuing bonds in yuan, rather than dollars, in the latest indication of the increasing importance of the Chinese currency. Or we can sell the Chinese everything, including the kitchen sink and then like the Chinese did in 1949, seize all assets of the imperialist running dogs and repudiate all incurred debt. |
| Posted by:ed |
| #4 Till there's a decoupling, there's no need to issue in any other denomination. The problem for the Chinese is that to be wider used it has to be decoupled from the dollar. The Chinese were talked to [with little response] for years to do just that. They refused because it meant the yuan was undervalued making their exports cheaper. A floating yuan would have risen and so would the price of their products reducing demand and exports. They exported to the world at undervalued rates garnering back all those dollars or equivalent. As a consequence, they've put themselves in a bind. To decouple the yuan now would make 'Made in China' a premium price without premium quality. To continue to hold assets pegged at the dollar means the value of those assets plunge. Had they actually run a 'free market' to include the value of their yuan, the system would have made the impact gradual over time rather than catastrophic in a short period. |
| Posted by: Procopius2k 2009-06-09 21:23 |
| #3 See also CHINESE MILITARY FORUM > A NEW WORLD ORDER LED BY THE BRIC NATIONS?; + POLITICO: RISE OF NEO-LIBERAL ARMY IN AMERICA TO REPLACE THE NEO-CONS AND THREATEN ASIA WITH RELIGION ["Jesus" = JudeoCHristianity]??? |
| Posted by: JosephMendiola 2009-06-09 19:57 |
| #2 Source for #1 opinion |
| Posted by: Anguper Hupomosing9418 2009-06-09 15:56 |
| #1 In the late 1970s, Jimmy Carter issued $6 billion of debt in foreign currencies such as the deutschemark and Swiss franc. The move was aimed at halting a precipitous drop in the U.S. dollar. The securities, dubbed “Carter bonds,” did little to help Carter’s legacy...“The U.S. cannot finance its deficit by itself,” Tokyo-based economist Kazuo Mizuno of Mitsubishi UFJ Securities Co. told Asia Times Online in 12/08. “The U.S. financial system cannot survive without foreign investors. We will see Obama bonds in the future.” |
| Posted by: Anguper Hupomosing9418 2009-06-09 15:55 |