Posted on 04/13/2013 5:44:53 AM PDT by lowbridge
Australia’s announcement that it is abandoning the U.S. dollar for trade with China is the latest broadside in the global currency war. Starting April 10, Australia and China will no longer use the U.S. dollar for trade between the two nations. For the first time, Australian businesses will be able to conduct trade in Chinese yuan. No more need for U.S. dollar intermediation.
This is a significant announcement and key development for China as it continues its campaign to internationalize the yuan and chip away at the dollar’s role as the world’s reserve currency.
Australian Prime Minister Julia Gillard made the announcement during an official visit to Shanghai on Monday. She noted that China is now Australia’s biggest trading partner and that the direct currency trading would be a “huge advantage for Australia.”
She called the currency accord a “strategic step forward for Australia as we add to our economic engagement with China.”
According to hsbc bank, more than 40 percent of small and medium-size Australian businesses that trade with China plan to offer quotes for goods and services in yuan. No longer will Chinese customers need U.S. dollars before purchasing Australian goods.
For China, this is a big accomplishment as it works toward its goal of having about a third of its foreign trade settled in yuan by 2015.
But for the U.S. dollar, it is more like the treatment the U.S. Eighth Army got at Chosin Reservoir in Korea.
This Australia-China currency pact isn’t the only whipping the dollar has taken lately either.
On March 26, China and Brazil agreed to cut out the U.S. dollar for approximately half of their trade. Some $30 billion worth of commerce per year will now be conducted in yuan and reals.
(Excerpt) Read more at thetrumpet.com ...
No, you miss the point and misunderstand. The Chicaps are ascendant.
The shackles binding Chinese entrapraneurs are loosened and they are beginning to achieve their due as the world’s largest nation. Reality is growth and progress in China. The potential is too great to be contained.
To discount the reality of emerging capitalism in China is to make a terrible mistake. Making money is the driving force
Well put.
Thanks I agree with you on the moral decline and the weirdos (natures rejects) being in the drivers seat culturally. For now at least.
I am sure that no one at State or in the Obama regime tried to persuade or pressure Julia Gillard not to take this step. On your side... Australia is doing well economically compared to America. It has gone to your head and so you make these trade agreements with China who wants to dominate Asia and Australia and push America out of Asia. This is also a gesture that tilts against the historical white founders and majority of Australia and towards non-European Asia. You are playing with fire because your wealth has made you all think you can do anything. Your lives are too nice. You are having too good a time in Oz. You don’t have crap to deal with like Detroit and cities getting to be like Detroit. Or mass illegal immigration from the 3rd world.
I love Australia but this is my analysis
The Chicaps are ascendant.
Yes they are but to whose benefit. The Communists have changed indeed- their strategies are far smarter.
They are building money.
Unlike the Japanese in the 80’S who bought real estate here the Chinese investment in the country in real estate is only 4% of their total investments
They wish to buy from themselves - the Chinese have always done this in the past through small and medium business - now they are doing it on a global scale. In Australia they are buying up resources and companies. They are buying up our cattle stations. In my state a Chicom actual runs our water resources.
The savings from this trade initiative are going to favor a lot of Chinese companies it takes away an cost impost they where paying while dealing with themselves.
Mel
I agree Dennis - it’s pretty much my analysis too!
Why would you ever criticize a foreign country for eliminating its currency ties to the U.S. for transactions involving a third-party nation? For one thing, cutting a U.S. dollar out of those transactions makes sound business sense simply because it’s not necessary. Secondly, what moral authority does the U.S. have to assert itself as the owner of a “global currency” when our own financial house is in shambles?
Another Obama first,he’s spent the dollar into useless paper.
Wake anybody up?
NOPE
Hillary in a landslide in 2016 and again in 2020. Book it. Who`s gonna stop that juggernaut. Imagine the stage with Obamas, Bill Clinton and Hillary cheering on the first female nominated to be President ! Maybe even Michelle Obama as VP ! No GOP candidate will beat that.
Americans are self-defeating now, only wanting “ free stuff “ and a government blankie. They hate natural law and inalienable rights, it`s too demanding.
But, good news is it won`t be a crash, just the slow deflating party balloon that you are experiencing right now.
Slowly but surely just as the British Empire, the sun is setting on the USA.
it really is as simple as that.
Its not about currencies.
Its about self-hatred.
We have opened up ourselves on the most basic premise.
Other cultures are better than ours.
History will disagree
I must say though Dennis we have not come through unscathed - the large surplus that John Howard had put away is gone plus a lot more. Most people’s superannuation savings took a big hit - probably losing on average 10k plus. As we all have Super savings this acted as a cushion for the banks and unless a person is nearing retirement they will not feel the hurt too much.
Most of all though we have been experiencing massive rises in the cost of utilities due to this government’s green agenda - this is slowing growth and preventing what should have been a big rebound in our economy by now. Carbon taxes and mining taxes will hurt investment going foward. So it’s not all roses but most of it is self inflicted.
Mel
The greenies are you biggest problem. Bunch of parasites who want jobs etc Gov’t jobs and NGO jobs, global warming scientists that can only be funded by your vibrant mining sector and private sector. They see the riches and they want some
China too casting a baleful eye on your European outpost in their backyard. Now that you have zero-USdollar two way trade with China they will be pounding you for more concessions such as cheaper raw material prices
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