June 29, 2013
The Chinese Yuan is growing in strength on the global market to become the 3rd strongest currency traded by 2015, according to HSBC.
Patrick Young of Derivatives Vision explains: “The hermit is ready to come out of its shell and the sooner the better for China to play a major role in the global economy. The Yuan will take its place as a leading global currency; it is not likely to challenge the dollar’s hegemony for some time.”
Young goes on: “The world’s reserve currencies are distributing away from dollar centrality to a broader spread of currencies. To that end the Yuan and indeed the rouble are all likely to take a greater share of global reserves as indeed the economic power of the east expands.”
The worth of the Yuan is considered a trend that will continue because of global demand for reserve currencies that diversify the market and create a semblance of stability.
Because of the controlled demolition in the Eurozone, simple movements toward economic foundations that do not cause complex problems are seen as palatable.
This movement toward replacing the US dollar as the global reserve currency is not arbitrary. As a member of the BRICs nations, China is setting the stage for the world using Yuan instead of dollars.
The BRICs nations have met for their 5th BRICs Summit in Durban, South Africa to discuss multilateral business projects, investment cooperation between nations and trade.
BRICs are moving toward strengthening the role of the UN, adherence of international law above sovereignty inherent to nations, and using political power to influence the outcome of fake revolutions such as the proxy war being fought in Syria by al-Qaeda recruited Salafi Jihadists imported from Saudi Arabia.
The Bank of England (BoE) is one of the first of the group of 7 to sign a currency-swap with the People’s Bank of China (PBoC). This agreement is expected to place an estimated $64 billion into the technocrat’s reserves.
However, BRICs want to restructure global economics through relations and a return to the gold standard; replacing the US dollar as the global reserve currency.
Central banks across the globe, such as the Reserve Bank of Australia, have transitioned to the Yuan with a $21 billion increase in reserves for the trouble.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) released a study that demonstrates the growing power of the yuan. Value in using the Yuan has moved up 6 places since 2012.
The line of currency worth looks like this:
• Chinese Yuan
• Russian rubble
• South African rand
• New Zealand dollar
• US dollar
• British pound
While trading the Yuan is a new phenomenon, the “dim sum bonds” have been available to global markets and represented Chinese assets while linked to the Chinese economy.
As China rises to become the replacement superpower, technocratically-controlled media downplays their quick climb up the proverbial ladder.
The National Intelligence Council released a report , entitled “Global Trends 2030”, indicating that the US will lose its status as the global super power by 2030 to China because of a shift in “”networks and coalitions in a multipolar world.”
The report states: “The world of 2030 will be radically transformed from our world today. By 2030, no country — whether the U.S., China, or any other large country — will be a hegemonic power.”
The report goes on to state: “How the U.S. evolves over the next 15-20 years – a big uncertainty – and whether the U.S. will be able to work with new partners to reinvent the international system will be among the most important variables in the future shape of the global order. Although the United States’ (and the West’s) relative decline vis-à-vis the rising states is inevitable, its future role in the international system is much harder to project: the degree to which the U.S. continues to dominate the international system could vary widely.”
The Atlantic Council, a think-tank located in Washington, DC, suggests that President Obama take heed to the message that China will rise to surpass the US in global strength and that action taken now will define China’s ability to overtake the US.
In a report entitled, “Envisioning 2030: US Strategy for a Post-Western World,” the Atlantic Council claims that the Obama administration’s focus on “nation building” is an attempt to salvage any semblance of advancement that the US still retains.
Economic strength cannot save the US in the future because of the instability across the globe with the Arab Springs and the US alliance with NATO.
In 2011, then US Defense Secretary Robert Gates admonished the US government for “willing and eager for American taxpayers to assume the growing security burden left by reductions in European defense budgets.”
Gates acknowledged that with the US contributing $711.8 million to NATO operations in foreign nations translates to 1/5 to ¼ of NATO’s overall budget.
Andrew Bacevich, professor at Boston University, commented that the US spends more on NATO than “all other nations on the planet combined.”
According to the Congressional Budget Service, in 2009 – 2010 the US government, through the Department of the Army’s Operations and Maintenance account, provided between $408 million and $431 million.
The 2012 Department of Defense (DoD) Military Construction Program and Budget (MCPB) document shows a contribution to funding for NATO surveillance programs and intelligence operations, mobility, logistics with a focus on transportation and infrastructure.
The US contributed $282 million to NSIP under the guise of ongoing military operations that seek to preserve peace while NATO itself as focused its efforts on national politics and economics.