Chinese Renminbi Yuan
The following was somewhat expected:
Banks back switch to renminbi for tradeFinancial Times, London – Aug 26, 2010
A number of the world’s biggest banks have launched international roadshows promoting the use of the renminbi to corporate customers instead of the dollar for trade deals with China…“We’re now capable of doing renminbi settlement in many parts of the world,” said Chris Lewis, HSBC’s head of trade for greater China. “All the other major international banks are frantically trying to do the same thing.” http://www.ft.com/cms/s/0/182a2b70-b130-11df-b899-00144feabdc0.html
The US dollar has been the international reserve currency.
Why would many in the world be frantic of steering clear of the US dollar? The USA keeps increasing its debt–debt that it will not repay in a currency worth what it was when it borrowed much of it.
Furthermore, the announcement today by Fed Chairman Bernanke is signaling to all that will see it, that the USA intends to inflate its currency.
US central bank boss Ben Bernanke today vowed to step in to prop up a fragile US economic recovery if needed as he conceded growth had been weaker than the Federal Reserve had expected…
“The Federal Reserve is already supporting the economic recovery by maintaining an extraordinarily accommodative monetary policy, using multiple tools,” he said in his speech, entitled The Economic Outlook and Monetary Policy. “Should further action prove necessary, policy options are available to provide additional stimulus. http://www.guardian.co.uk/business/2010/aug/27/ben-bernanke-us-economy
That “additional stimulus” will make the US dollar worth much less. The Fed Chairman also said that he will essentially do what it takes to prevent deflation from taking over the US economy. He seems to feel that inflating the money supply will prevent that–and maybe it will. This supposedly helped the USA stock market today.
The US government (including the Fed which supposedly is in a different category) now seems to believe that economic growth is more likely to come from currency inflation than anything else (a dangerous and erroneous belief). Since those in China do not share that view, many are trying to go towards China’s currency, as opposed to that of the USA’s.
And while China will not end up as number one in the world, according to biblical prophecy, it will do much better for a while than the USA and its Anglo-allies. And China may even end up with parts of one or more of the Anglo-nations (cf. Habakkuk 2:3-8).
I am not the only one to see the risk that the debt poses to the USA. Even its military leaders have proclaimed it:
DETROIT, Aug. 27, 2010 – The single biggest threat to national security is the national debt, the chairman of the Joint Chiefs of Staff said yesterday…http://www.defense.gov/news/newsarticle.aspx?id=60621
While parts of Wall Street may cheer the additional “stimulus” additional debt may provide, others realize that this is a dangerous game the USA is engaged in. And it’s a game the USA will not win.
There are reasons that people are looking to conduct international trade in currencies, other than the US dollar.
Some articles of possibly related interest may include:
China, Its Biblical Past and Future, Part 1: Genesis and Chinese Characters This article provides information showing that the Chinese peoples must have known about various accounts in the Book of Genesis up until their dispersion after the Tower of Babel.
China, Its Biblical Past and Future, Part 2: The Sabbath and Some of God’s Witness in China When did Christianity first come to China? And is there early evidence that they observed the seventh day sabbath?
Asia in Prophecy What is Ahead for China? Is it a “King of the East”? What will happen to nearly all the Chinese, Russians, and others of Asia? China in prophecy, where?
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Will the Anglo-Nations be Divided? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What does Bible prophecy teach? Are there non-biblical prophecies that support this idea? Who will divide those lands? Who will end up with the lands and the people?