Posted on 06/01/2011 12:36:44 PM PDT by Kaslin
An interesting article in the Financial Times got me thinking once again about the popular notion that the Yuan is about to replace the dollar as the global reserve currency.
Please consider a couple brief snips from Beijing in fresh TV censorship move
The Chinese government has stepped up censorship of local television in a sign of the broadening of a political crackdown that has landed many dissidents in jail.Reserve Currency Requirements
China has severely clamped down on activists since February when an anonymous online appeal called for demonstrations along the lines of the jasmine revolution sweeping north Africa and the Middle East.
Authorities have detained scores of human rights lawyers, activists, and writers. They have also arrested Ai Weiwei, the contemporary artist.
Shedlock seems to think that the dollar is “too big to fail”. History would say otherwise.
1) Is it an inflation or not?
2) Is there nothing at all apparent right now that might lead to a complete loss of faith in the US Dollar?
The primary test of a market economy is whether a private party has the ability to enforce a contract in that country.
If a market cannot pass this test, then the other two tests, which are 2) Freedom of Speech and 3) Ability to own your own property are moot.
Nice to haves are, 4) Freedom of Assembly and 6) 4th Amendment rights, but not essential.
When people started talking about China being the next economic leader, superpower, and new reserve currency back in 2008, I just laughed at the idiots. Without an ability to protect intellectual property in a market, there is no incentive to participate in that market. I don’t care how many people or what’s involved.
It’s hilarious watching Huawiea trying to argue for IP rights when their R&D plan for at least 10 years was stealing IP. Going to court and settling after getting caught was PART OF THE CORPORATE STRATEGY!
I don’t blame them either - spend billions reinventing the wheel or steal the original design for the wheel, pay off when you get caught, and then issue patents on the improvements to the art. It’s not an honest strategy, but that’s not a Chinese virtue either it appears.
Don't accept the government tell you lies. Hyperinflation is real. Hyperinflation is the FED’s way of covering our debt with inflated Dollars.
The dollar is not too big to fail. I cannot make any predictions about the nature of the failure. It may fall suddenly, gradually, or some mixture. The world will not accept $100 trillion new dollars dumped onto world markets. Many governments and traders are plotting to attack the dollar.
Our government bond markets are not transparent. Unfunded pension liabilities are deliberately hidden. Uncertainty over government bond markets has increased leading to predictions of major defaults. Phony government accounting has justified reckless spending. Federal government borrowing is by fiat. Despite inflationary pressures, government bond yields are almost nil and falling. Government bond yields have created another asset bubble since there is no reasonable place to park funds.
Get this!
The bond market is going in one direction which is up-falling yields which is telling you quite clearly the direction of economic travel is downwards. Downgrades. QE3 (a third round of quantitative easing) is coming, said Maughn. “...Once again, the United States will step up as the marginal buyer of bonds, said Maughn.
“One more big injection of cash into the bond market should take you through at least the summer season into the beginning of the fourth quarter...
http://www.cnbc.com/id/43233866
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.