Sunday, January 11, 2009
In a bid to protect their export business, China is implementing an experimental program concerning their currency to see if it will work better than the failing U.S. dollar. If it's successful, the program, along with other pressures on the dollar, could spell the end of the greenback as we know it.
Shanghai Daily reports how the program will be implemented:
"China will allow the yuan to be used for settlement between Guangdong Province and the Yangtze River Delta, China's two economic powerhouses, and the special administrative regions of Hong Kong and Macau, according to the central bank.
"Meanwhile, exporters in the Guangxi Zhuang Autonomous Region and Yunnan Province in southwestern China will be allowed to use the yuan to settle trade payments with members of the Association of Southeast Asian Nations.
"Those moves are expected to facilitate overseas trade, as Chinese exporters might face losses if they continue to be paid in US dollars..."
With every move by the U.S. government and Federal Reserve the wrong one, and as they continually interfere with U.S economy through socialist expansion programs, the greenback has little chance of surviving as a viable currency.
Combine that with this move by China, and the conclusion is there will probably be a paradigm shift in the global currency market in the not-too-distant future, with the U.S. dollar simply another weak currency in the market, if it survives at all.