China to use ASEAN meet to make Yuan an international currency

BEIJING: China is set to use the ASEAN meet to sell the idea of making the Yuan an international currency. It is using the sense of uncertainty over
the US dollar to sell a new dream of enlarged regional trade, financial support from Beijing and reduced dependence on the volatile dollar.

Does this have anything to do with the incredible insult that Hillary Clinton recieved when she flew to Moscow only to have their leader head straight for China to make contact reguarding dropping the US dollar?

Things are heating up folks, hang onto your hats and secure your dollars because it looks like Rome is on the eve of her great fall.

China has also offered to contribute nearly one-third of the $120 billion economic stimulus package being worked out by ASEAN with the stated purpose of helping member-nations reduce their dependence on the International Monetary Fund. Japan offered to cough up a similar amount so that its influence in the region is not diminished.

A senior Chinese official has said that the China-ASEAN Free Trade Area agreement, which will come into being on January 1 of 2010, will result in wide scale use of the renminbi or Yuan as the regional currency.

Link for above Op.


timesofindia.indiatimes.com...

reply to post by antar


It will never happen.
They have too much invested in other currency and they manipulate the yuans value way too much.

But you never know

If china is willing to invest billions into this new economic stimulus, they may be willing to lose out of what they have invested in us...
If it does happen so soon who will people place the blame upon? Obama? Congress?

I sure hope the American people place the blame upon everyone in government and the elite!

reply to post by antar


Not going to happen for several reasons.

1. Other countrys might think that the US has an incompetent government and economic policy, but they trust us at a basic. The whole devil you know deal
2. There are no liquid markets for the Yuan. It is not a liquid currency in the way the global reserve currency, the US dollar. To create a liquid, global market for the Yuan to be used as a reserve currency is no small deal. We are talking $billions of dollars in basic IT infrastructure. Lay on top of that the creation of new financial instruments denominated in the Yuan and new and enhanced global regulatory bodys and you are talking about a massive, decade long (at least) process.
3. For all of its problems, the US is a relatively transparent nation. We are used to other nations getting deep into our affairs and it does not bother us. China is a closed system and that is not about to change. You need transparency into the monetary policy of the nation which denominates the reserve currency. There is no way that will happen in China.

This bluster is all about China pushing their weight around and attempting to influence the US to hold up the dollar. Its just a lot of hot air

China is set to use the ASEAN meet to sell the idea of making the Yuan an international currency.

Never going to happen and if it did China would have to allow the Yuan seek its own level. and that means china would have to floot the Yuan and let it incress under trading.
No more would China be able to set the value of the Yuan.

This would lead to high inflation and higher wages. and a loss of jobs and trading power.

Shortly the cost of manufacturing in China would raise till it was no longer cheaper then in the US and at that time jobs would leave china a return to the US.

If you don't understand ask a MBA they know all the answers to what would happen.
There the ones that sent the US jobs to china in the first place.:flam e:

Originally posted by ANNED
Never going to happen and if it did China would have to allow the Yuan seek its own level. and that means china would have to floot the Yuan and let it incress under trading.
No more would China be able to set the value of the Yuan.

This would lead to high inflation and higher wages. and a loss of jobs and trading power.

Shortly the cost of manufacturing in China would raise till it was no longer

Er, no, that is quite wrong.

Sure the Yuan would rise with respect to the US dollar and many other world currencies..

Why would that create more Yuan in circulation ?
Inflation is ONLY caused by more fiat paper money being issued, and the value decreasing as a direct result of that.
Inflation has nothing at all to do with the value of the Yuan compared to other world currencies..

What a rising Yuan would do is make foreign purchases for the Chinese cheaper. They can buy up American assets more cheaply.

If you believe a rising Yuan is really really bad news for China.

Then you must believe a collapsing US dollar is good for America.

Yes, ten dollar gasoline in the US should really get the US economy going again.
Just ask any trucker...........

Just as cheaper gasoline in China (caused by a rising Yuan) would be an absolute disaster for their transport economy.

The cost of manufacturing in China would not change, except the imported energy and raw materials would be CHEAPER.

Unfortunately they would recieve less for their exported goods.

The result will be the Chinese internal economy will thrive, but export income will reduce.

Likewise the US internal economy will collapse along with the US dollar, even though in theory US exports should be more profitable.

[edit on 21/11/2009 by Silver Shadow]

Well now that dream has become a nightmare:

timesofindia.indiatimes.com...

China-Asean treaty threatens Indian exporters

BEIJING: Indian exporters are faced with a new challenge as the free trade agreement between China and members of the Association of Southeast Asian Nations became operational on Friday. It will mean nearly zero duty trade between several Asian nations making it difficult for Indian businesses to sell a range of products.

India has been planning to enlarge its trade basket to include several commodities that are now supplied to China by ASEAN countries. These products include fruits, vegetables and grains. Indian products, which will face 10-12 per cent import duty, may find it extremely difficult to survive the competition from ASEAN nations.

China is cutting tariffs on imports from ASEAN nations from an average of 9.8 percent to about 0.1 percent. The original members of ASEAN -- Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand –- have also agreed to dramatically cut import duty on Chinese products from an average of 12.8 per cent to just 0.6 per cent.

The newly created free trade area involves 11 countries will a total population of 1.9 billion and having a combined gross domestic product of $6 trillion.

Hang onto your shirts folks, this is just the tip of the iceberg.

China is STILL a Communist state, and we all know what happen when communists rule the economy. There is no rule of law, and whatever the head boss say is law.

You gonna trust these guys with your money and your exports. LOL! For all its bluster of encomic and military might, its another Soviet Uninon Khruschev play.

Furthermore, if the yuan rises, it will mean the US dollar drops and believe me, the feds will be toasting with $1000 champange the very nite. It will only be billions US govt will owe China and not trillions.

The poor and enslaveed Chinese common masses without social security will tear their political masters to pieces over night.

It aint gonna happen. Not, if i'm allowed to say, in a milion years, as long as US owes China a large chunk of its reserves, and CHina has the means to take on US and demand militarily its debts be paid. Trillions are in no way possible to be written off.

But never underestimate the Chinese. They see issues in the long view and would seldom go for short term benefits, which explains their civilisation historical length, compared to the Egyptians and Romans.

Their upcoming talented youths, fully trained in the West, may be the linchpin for creative solutions, not today, but in time to come, and hopefully, it will be a democratic China by then with an elightened strong middle class and not run by some self centred tyrannical despotic commie ideologists.

Um, trillions are larger than billions. And as I said above, hang onto your hat because times they are a changing.

I may be blonde, but I am not blind.

reply to post by antar


Hia Antar! Thanks for the heads up about this topic. I have not been keeping up with current events, and didn't know that Hillary Clinton had something happen to her while she was in China, talking about the dollar..

But its well known to many of us here, that the US dollar has been dropping slowly and slowly...

You and I both know, that the drop in the US dollar is a controlled event that has been in the works for some time now.
I mean how much money do we owe other countries? Its alot!

We both know something is coming our way.. And its always good to prepare for the worse, and hope for the best!

Yet in this day and age.. The US dollar is not worth what it use to be worth.
And that in itself is a tell Tale sign of what is to come!

I will keep up with your thread here and see what manifests.. Keep us posted!!

Star and flag for you!

PS- its been awhile, and I wanted to take some time out today to catch up with some of your new threads!

Your friend.
Zy5

if their money is not based on a principle ideal like "america" for example and is only from their perspective a tool for what they perceive as economy; then the structure for its implementation falls on the backs of its people.