Posted on 04/01/2013 9:53:45 AM PDT by autumnraine
ustralia is seeking to bypass trading in U.S. dollars with China in an effort to avoid the commercial uncertainties that come with the recent fluctuations in the greenback. For example, just a half a year ago, the dollar traded at about $1.20 to the euro; by February, it had weakened to $1.34 per euro and now it is going for $1.27.
Eliminating the dollar in trade will be the focus of Australian Prime Minister Julia Gillard’s trip to Beijing next week. Trade with China, Australia’s primary trading partner, totaled $120 billion in the last fiscal year. China buys nearly one-third of Australian exports.
"The value of such a deal would be substantial for exporters to China, especially those that import a lot from China, like mining companies, as it would remove business constraints including exchange-rate risks and transaction costs," said Australia’s former ambassador to China, Geoff Raby, according to the Australian.
(Excerpt) Read more at ibtimes.com ...
They got their own dollars there in the upside down land, leave our buck alone!
Good for them!
Half of South America and a good part of the Middle East, as well as Russia and China, have established media of exchange that exclude the U.S. Dollar.
Once the Dollar is removed as the World Standard Currency, it will collapse, and it will collapse HARD, considering the way Barky, Timmy, and Greenspud have been printing money.
George Soros commissioned Ubama to kill the dollar, and by golly he’s doing bangup job.
Sorry mates! No more shrimps on the barbie! Have a fun time keeping the Malacca Straits open for business without the US Navy...
Take all the Chinese Yuan you want, chumps.
Are you sure about the long-term consequences of supporting that move against the US - especially when China appears to want to be less free? The last thing the United States needs now is one less ally.
Perhaps Australia needs to be reminded that the consequences of appeasement apply to China. That, and the same lesson should be taught within the United States. Then keep on teaching that lesson until the PRC respects the individual enough to tolerate Tiananmen Square.
If they say “just business”, inform them about how Danegeld doesn’t work. Worst case, treat China like Iran.
We are the chumps for allowing our government to destroy our dollar. You can’t blame the rest of the world for not wanting to stay on our sinking ship.
In addition, the loss rate for PRC-Australia involved vessels and planes will go way up as well, coincidentally.
Think of it as the incident with the Chinese Embassy in Belgrade happening for every single ship, and that the US wouldn’t require direct involvement to happen. All the US would have to do is step back, watch, and ensure no friendlies are lost.
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That said, how strong are the US’s ties with Japan and the Philippines? They’re both actively attacked by China in some form and side with the US to some good degree. It would do well to make sure the US strengthens relationships in the region - especially ones that stand against China.
So you’re fine with supporting the PRC, a despotic country that actively opposes individual freedom - because of a monetary issue? It would be akin to letting another country slip behind the Soviet side of the Iron Curtain in the Cold War.
In the long term, allowing the rise of a despotic pair of countries (China/Russia) without containment will result in dire consequences, whether or not we’re dumping cash from helicopters.
Way to go, Obama.....How many more allies are you going to piss off?
Exactly. I can’t blame them when I would rather be compensated with a less debased currency than the Dollar, or better yet, in gold. I have some old savings bonds (gifts) that I’m considering dumping before maturity just because they are payable in Dollars. I think they have more purchasing power now than they will at maturity.
“...our buck...”
You mean Soros’, Obama’s, Bernacke’s, and the Dem Party’s buck? The dishonest currency that is defaulting by about 3% a year? The currency that will have to debased at least another 80% to pay for all the promises that have been made?
You can have it...and soon by the wheelbarrows full.
Austrialia wont be the last to switch. Do not blame our allies when they refused to be ripped off.
Actually, it gets worse:
my thoughts exactly; the light at the end of the tunnel is a locomotive!
I am not sure about anything. I just understand how one might react to American fiscal and monetary foolishness.
I’m not supporting any country other than the USA, but I still see why other countries are bailing on our withering currency. Why would you expect anyone else to sink with us?
Yes there’s no surprise that an infinite supply of Baraqqi/Bernanke/Geithner minibucks might be a problem....
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