More proof the dollar is dead

[suityou01]

http://www.chinadaily.com.cn/china/2...nt_7660017.htm

Analysts said the experimental use of the yuan in trade settlement also reflects policymakers' rising concern over the shaky prospects of the US currency, of which China has large reserves from previous trade growth, and their willingness to gradually expand the yuan's use globally.

[snaw]

http://www.chinadaily.com.cn/china/2...nt_7660017.htm

Fine, let the yuan loose on the markets and see how competitive their products are globally. They've effectively been subsidising their manufacturing base for years by keeping the yuan lower than it's true value.

Great for all of us wanting to buy cheap tellies of course ...

More unemployed Chinese, wonder how long the econmoic surge will last once unemployment keeps rocketing up.

[suityou01]

Fine, let the yuan loose on the markets and see how competitive their products are globally. They've effectively been subsidising their manufacturing base for years by keeping the yuan lower than it's true value.

Great for all of us wanting to buy cheap tellies of course ...

More unemployed Chinese, wonder how long the econmoic surge will last once unemployment keeps rocketing up.

There was an article on there yesterday stating that there was a stimulus package about to be announced and that China was expected to pull out of recession in Q3.

[snaw]

There was an article on there yesterday stating that there was a stimulus package about to be announced and that China was expected to pull out of recession in Q3.

I'm no expert, but given they're still a primarily export driven economy wouldn't that have to involve the rest of the world (Or at least America) buying the goods they produce?

And btw - they're not in recession, they're still growing, albeit at a lower rate then they have been for several years .. or did I miss something?

[HairyArsedBloke]

There was an article on there yesterday stating that there was a stimulus package about to be announced and that China was expected to pull out of recession in Q3.

nuLieBore say the same about the UK economy too.

[PM-Junkie]

I'm no expert, but given they're still a primarily export driven economy wouldn't that have to involve the rest of the world (Or at least America) buying the goods they produce?

And btw - they're not in recession, they're still growing, albeit at a lower rate then they have been for several years .. or did I miss something?

Yes, that much is clear

It has little to do with the innate value of the Chinese currency. The huge elephant in the room is that the Chinese, thanks to unbelievably stupid economic policies but the US government over the last 15-20 years, basically own the dollar.

One of the many factors that makes predicting what is going to happen with the world economy over the next five years nigh on impossible is that nobody knows how the Chinese will use that weapon. And rest assured, a weapon it is. They may choose to support the dollar, they may not.

Personally, I think the outcome of G20 gives an indication of what Chinese economic policy is. They want to use their financial muscle to influence getting the dollar replaced as the world's backup currency, thereby reducing US influence across the globe. They are not stupid these Chinese fellows.