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China announced on christmas day that it was gearing the yuan to be used as an international currency as more and more businesses are worried about trading in t
by dc2k08 18y ago
China announced on christmas day that it was gearing the yuan to be used as an international currency as more and more businesses are worried about trading in the dollar.
There is also evidence that China is moving away from its reliance on exports for economic growths towards a more consumer driven economic model by setting up distribution centres in rural areas and offering subsidies to rural households for the purchase of household appliances and other goods. They are though also strengthening trade relations in emerging markets.
A number of Gulf Arab states will maintain their 2010 deadline for a single currency, the secretary-general of the Gulf Cooperation Council also announced recently.
This all means that yes, the dollar is being put to sleep and 2009 will be a disaster year for it and the American economy, but it does not mean the Euro will replace it. The Yuan will become the currency for trade with China and the GCC will be seeking to promote their own single currency.
- gaius 18y agoThey'll have to float it first.
- deleted 18y ago[deleted]
- tokenadult 18y ago"There is also evidence that China is moving away from its reliance on exports for economic growths towards a more consumer driven economic model by setting up distribution centres in rural areas and offering subsidies to rural households for the purchase of household appliances and other goods." That will be problematic for China. http://www.nytimes.com/2009/01/01/business/01exports.html http://www.nytimes.com/2009/01/01/business/01exports.html "But shifting toward a greater reliance on domestic demand is not easy. Chinese households have one of the world’s highest savings rates because the country’s social safety net is in tatters, with families receiving scant government help with education costs, medical care and retirement; the average hospital stay costs the equivalent of two years’ wages for the average Chinese worker."
- jerf 18y agoChina looks like an absolute economic powerhouse, if you only consider the factors in its favor. The US looks like a global giant headed for complete irrelevancy, if you only consider the factors against it. This has rather more to do with the selection bias than reality, though. The truth is much harder to ascertain, and while it's pretty obvious that it lies "somewhere between", that's not saying much either.
- tokenadult 18y ago"if you only consider the factors in its favor" What are the factors that are most in favor of China?