Sunday, October 09, 2016

Don’t Get Caught  
In The U.S-China Crossfire 
"China’s power ambitions go well beyond the Special Drawing Rights (SDR). They include international diplomacy, sustainable energy dominance, and becoming a focal point for alliances through Europe, Russia and the ASEAN states. The ASEAN–China Free Trade Area (ACFTA) is a prime example of why the SDR, or world money, for China and the region is important as China expands its influence. So are new trade and financial pacts with Russia where the yuan and ruble exchange in deals without involving U.S. dollars. In addition, Russia and China are both starting to amass gold which could return as the 6th component of the SDR someday .. China wants to keep internal inflation down. This is why it would prefer a strong currency. This negates the charge that China is trying to devalue or manipulate the yuan for better trade profits perpetuated by Donald Trump and Hillary Clinton. This is true to a minor extent due to economic pressures, but barely .. The stronger the yuan, and the more prevalent it is globally, the more the PBoC challenges the Fed and the more control the China bloc gains over the U.S. In Chinese culture and the Game of Thrones, the Dragon symbolizes life and expansion. It’s a fitting symbol for the rising power of China and the yuan."
- Nomi Prins*
LINK HERE to the essay

No comments: