YUAN to overtake USD

Discussion in 'International Politics' started by aliyah, Apr 17, 2016.

  1. aliyah

    aliyah Regular Member

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    “In a shocking move likely to crush the US economy overnight, China is refusing to make its new gold-backed Yuan, convertible from or to US Dollars. The new Yuan will be introduced next Tuesday, April 19.When the International Monetary Fund (IMF) agreed to add the Yuan to the basket of world currencies used for Global Reserves and International Trade, they wanted China to make the Yuan more reliable as a currency. Since then, China has almost un-pegged its Yuan from the Dollar, allowing its value to fluctuate on world markets. But for years, China has been amassing huge amounts of gold bullion; some have said their appetite for bullion has been “staggering.” And with a new gold-backed Yuan to be issued next Tuesday, the entire world will have a choice of a new currency to use for international trade: The old US Dollar which is backed by nothing, or the new Chinese Yuan, which is backed by gold. Which currency would YOU use?

    When this new currency is issued, countries that have been forced to use US Dollars for decades, and have had to keep billions of dollars in their foreign currency reserves, will be free to dump those dollars. But they won’t be able to dump them to China for the new gold-backed, Yuan! China has reportedly decided “there can be no conversion of gold-backed Yuan to or from US dollars.” What China fears is that many countries around the world will want to trade their reserve US dollars for the new Yuan, leaving China with mountains of worthless US dollars. China already has several trillion in US dollar reserves and does not want or need more.

    If news of this decision by China is correct, then countries around the world may just have to decide whether or not they wish to continue trading with the USA at all? The upheaval this could cause as early as next week, would be staggering.
     
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  3. aliyah

    aliyah Regular Member

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  4. garg_bharat

    garg_bharat Senior Member Senior Member

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    We are seeing a very aggressive China. So anything is possible.

    China's moves in SCS are breathtaking.

    The ethnic Chinese give the most correct view I think. Again from my stay in Singapore in 1996 and interactions with ethnic Chinese there - they say two things about China:

    1. China is unstoppable like an awakened dragon woken from a long sleep
    2. A strong China will destroy itself and most of the world along with it.

    Many ethnic Chinese were afraid of a awakened dragon. Now this has happened due to foolishness and greed of Americans.
     
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  5. garg_bharat

    garg_bharat Senior Member Senior Member

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    We are seeing the first stage of World War three. Unbelievable but happening right before our eyes.
     
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  6. aliyah

    aliyah Regular Member

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    middle east boiling,south Asia boiling, SCS boiling,Africa is hopeless, Europe is invaded by Muslims.
     
  7. Keshav Murali

    Keshav Murali Back to studies :( Senior Member

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  8. 3deffect

    3deffect Regular Member

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    if china geting stronger then USA ...then only india is USA hope...
     
  9. Indx TechStyle

    Indx TechStyle Perfaarmance Naarmal Senior Member

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    Pathetic. Too much jingoistic statements. :doh:
    @3deffect It's a mere currency war played by China for replacing USD with Yuan. India has nothing to do, nor will involve in this.
    @garg_bharat 's statement passed above my head.
    Let me simplify,
    Economy is a product of population and per capita income. Large population means large economy, like China and India have achieved.
    China in upper middle and India is lower middle income economies.
    They are slowly turning into high income country (China) and upper middle country (India) getting economies at par with USA.

    Now, large economy means, more budget for Research and Development resulting more science and technology, advanced weaponry, more defense and space budget resulting very large Militaries and sophisticated space exploration and probably even militarization program.

    Obviously, when such highly populated countries like China and India will turn into developed countries, automatically will replace US and Russia as new hegemons.

    It's turn of China to overtake US, We Indians will have to wait for 2-3 decades more. Because we started liberalization and capitalization from 1991(China started in 80s).
    When China's population will decline, their income growth will slow with maturity, we will overtake, when we will decline, somebody else will overtake.

    This is the world order. One goes other comes.
    I can't understand what greed of US or Dragons have to do with it.
    @3deffect 's jingoism with screwed English grammar make things more shameful for DFI. :facepalm:

    I guess if all will talk more realistically without trolling and one sided views. Hope you guys understand. :)
     
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  10. sasum

    sasum Atheist but not Communists. Senior Member

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    Strength of a currency is not only determined by the country's gold reserve, but also IPR/ patents she holds. Even if US runs into trillions of dollars of debt, $US will always be sought after and not devalued because from Defence to Drug molecules, US holds patents on most products and processes which the rest of the world has to acquire against dollar payment. Even if you compare gold holdings, China no where comes near US:-
    Contry Gold holdings in ton
    1. US 8133.5
    2. Germany 3381
    3. Italy 2451.8
    4.France 2435.6
    5. China 1762.3
    So, we can see how strong China's backbone is vis-a-vis US. Why anybody would like to pile up yuan when it is of no use to buy a US patented life-saving drug or closely guarded space technology?
    And if US govt mandates, all US origin products/ processes should be exported only against bullion, then it can siphon off most of the planet's most valuable material . Other currencies will be as good as toilet paper.
     
    Last edited: Apr 17, 2016
    Keshav Murali likes this.
  11. Zebra

    Zebra Senior Member Senior Member

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    Google 28 May 2016 and hit videos.

    :hmm:
     
  12. Razor

    Razor CIDs from Tamilnadu Senior Member

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    Can they tell exact time aalso??

    :cool:
     
  13. Zebra

    Zebra Senior Member Senior Member

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    :biggrin2:

    It will be very slow process though, globally it might take up to 25 years to shift totally from one to another.
    If everything go smooth.

    ................................................................




    Published on Nov 1, 2009, by booku4
     
    Last edited: Apr 17, 2016
  14. lcafanboy

    lcafanboy Regular Member

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    I would just like to inform you that USA is playing a BLUFF that it has 8133.5 tons of gold. Actually it does not have anything. They were not able to return Germany's 2500 tons of gold kept for security in US federal Vaults that means they have also consumed that plus they have even taken Ukraine's 45 tons of gold, which have theived upon in the name of providing military support against Russia. USA is like Vijay Mallya, once dirt Rich but now all debts and biggest beggar. They do not produce anything accept military ware. Can you Guess what their biggest export is? No. Well it is paper printed with dollar's design. Anything they want just print dollar and give to fools around the world. Want OIL, Steel, GOLD, Food everything print dollar and take away real wealth produced by all. Even Europeans and Japanese are now replicating their model and that is what Chinese now want to do.

    Just google "dollar collapse", "world war 3", "Euro collapse", US economic collapse" and see for yourself interesting blogs by some of the best economist and for more watch KEISER Report on Russian TV.
     
  15. garg_bharat

    garg_bharat Senior Member Senior Member

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    Yuan has good prospects as China exports more than it imports. So yuan in the hands of foreigners is as good as dollars as they need to buy stuff from China.

    It may turn out good for India as well if Americans get scared, as western capital will rush into India.
     
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  16. AbRaj

    AbRaj Regular Member

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    Chinese are maniac, they are going to destroy South Asia in the euphoria of new found power
    They just started a new world water which is waiting to explode whole civilization
     
  17. Indx TechStyle

    Indx TechStyle Perfaarmance Naarmal Senior Member

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    Calm down man. It's a mere currency war. :biggrin2:
     
  18. AbRaj

    AbRaj Regular Member

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    They are our enemy and anyone telling otherwise is living in fools paradise
    they are preparing ground for our demise from almost half century
     
  19. Indx TechStyle

    Indx TechStyle Perfaarmance Naarmal Senior Member

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    Currency war doesn't pose danger. They are now world's largest PPP economy and it's their fundamental right. We have to wait much long for our turn.

    And why posing them as enemies in half of century? Any order of friendship can change in half of century.
     
  20. AbRaj

    AbRaj Regular Member

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    they dont want friendship with us
    its fact you and many are ignoring
    they are waiting for right time to repeat 1961 albit more dengerous way
     
  21. Indx TechStyle

    Indx TechStyle Perfaarmance Naarmal Senior Member

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    Probably because of strategic pakis or whatever. We will do what we've to do about it. :biggrin2:
    Anyway, this currency war poses no threat, let us come in top 3 economies, we will think over it. Focus on now getting at level of at least second world countries in development. :p
     

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