If China loses faith in the dollar - the American natsvalyuta collapse, writes The Financial Times. And this happens as soon as the United States to run the printing press to zadelat budget hole
Status of the American dollar is kept at the two whales - the faith in China's power and integrity of America and neftedollarovyh 'accounts of the Gulf States in need of military assistance to the U.S., writes The Financial Times. And as only one of these whales will refuse to carry on his back this cargo, "green" will come to an end.
Developing economies such as China and Russia, favored an alternative to the dollar as a reserve currency. Federal Reserve System (FRS) the USA is forced to increase the amount of money in the economy, and sooner or later it will be forced to run the printing press, because the amount of "toxic" bank assets so still do not precisely calculated, but it is clear that the funds will be needed again. If you have to print money, it could lead to hyperinflation and cause great damage to those countries that hold foreign exchange reserves in dollars.
Talks on alternative dollar reflects America discontent among developing countries, which have accumulated nearly $ 10 trillion in currency reserves, mostly dollar-denominated assets. If the United States has been in place any other country, it would need some help from the Paris Club to negotiate with creditors on its monetary policy, which sought to protect their interests. But the U.S. situation is unique: the country holds in its own currency and the dollar - the main reserve currency worldwide. Therefore, the U.S. can ignore the problems of lenders at the moment, not worrying about the collapse of the dollar.
The most unreliable Kit, which is based on the status of the dollar as the world's main reserve currency, is, of course, China. Chinese romance in the U.S. began in 1940's, when "green" has become a major currency against the backdrop of the strong devaluation of the yuan. Memory is solid when it comes to the credibility of the currency. Yuan is still a closed currency, and this is not the most reliable way to store savings. In addition, the wealthy Chinese, as a rule, send their children to the United States for education. They belong to the U.S. dollar as its main currency. But sooner or later, China is still force in the creation of a new reserve currency, and most likely just on the basis of its own. Especially if the United States to run the printing press.
United States could eliminate its budget deficit by printing dollars and rasprodavaya assets, and resorting to fiscal redistribution. One way of obtaining money could be the sale of vast and undiscovered natural resources of America. However, as noted by the publication, the Americans can take these ideas are unthinkable. This is to imagine that the superpower should sell the family silver in order to remain solvent. Therefore, the launch of the printing press to be the least painful way.
The situation in the world is not favorable for those who kopit money. Investments in real estate and equities do not pay, the currency of other countries are unreliable, as the U.S. Federal Reserve, increasing money supply, effectively exporting inflation abroad. For the sins of the debtors and speculators central punish savers.
As a result, the current U.S. policy and, consequently, global stagflation compel China to let its currency into free swimming and create a unified, independent, market-based financial system. American politics is pushing China to develop an alternative financial system. At one point China will understand that there must be independent of the dollar. Stagflation force China to accelerate reform. When this happens, the dollar collapses, the publication predicts.
Prerequisites for this is now. According to Bloomberg, citing the statement of Industrial & Commercial Bank of China, over 50% of trade between Hong Kong and mainland China is scheduled to transfer to the yuan, since exporters are less trusted devalues the dollar. 400 Chinese companies exporting from 5 pilot Chinese cities (Shanghai and 4 cities in the province Guandun in the south of China) as an experiment has recently been allowed to export their products for the yuan. By the time the next year, the experiment will be distributed throughout the country, up to half of Chinese exports will go to Yuan, the Chinese authorities have assured.
Status of the American dollar is kept at the two whales - the faith in China's power and integrity of America and neftedollarovyh 'accounts of the Gulf States in need of military assistance to the U.S., writes The Financial Times. And as only one of these whales will refuse to carry on his back this cargo, "green" will come to an end.
Developing economies such as China and Russia, favored an alternative to the dollar as a reserve currency. Federal Reserve System (FRS) the USA is forced to increase the amount of money in the economy, and sooner or later it will be forced to run the printing press, because the amount of "toxic" bank assets so still do not precisely calculated, but it is clear that the funds will be needed again. If you have to print money, it could lead to hyperinflation and cause great damage to those countries that hold foreign exchange reserves in dollars.
Talks on alternative dollar reflects America discontent among developing countries, which have accumulated nearly $ 10 trillion in currency reserves, mostly dollar-denominated assets. If the United States has been in place any other country, it would need some help from the Paris Club to negotiate with creditors on its monetary policy, which sought to protect their interests. But the U.S. situation is unique: the country holds in its own currency and the dollar - the main reserve currency worldwide. Therefore, the U.S. can ignore the problems of lenders at the moment, not worrying about the collapse of the dollar.
The most unreliable Kit, which is based on the status of the dollar as the world's main reserve currency, is, of course, China. Chinese romance in the U.S. began in 1940's, when "green" has become a major currency against the backdrop of the strong devaluation of the yuan. Memory is solid when it comes to the credibility of the currency. Yuan is still a closed currency, and this is not the most reliable way to store savings. In addition, the wealthy Chinese, as a rule, send their children to the United States for education. They belong to the U.S. dollar as its main currency. But sooner or later, China is still force in the creation of a new reserve currency, and most likely just on the basis of its own. Especially if the United States to run the printing press.
United States could eliminate its budget deficit by printing dollars and rasprodavaya assets, and resorting to fiscal redistribution. One way of obtaining money could be the sale of vast and undiscovered natural resources of America. However, as noted by the publication, the Americans can take these ideas are unthinkable. This is to imagine that the superpower should sell the family silver in order to remain solvent. Therefore, the launch of the printing press to be the least painful way.
The situation in the world is not favorable for those who kopit money. Investments in real estate and equities do not pay, the currency of other countries are unreliable, as the U.S. Federal Reserve, increasing money supply, effectively exporting inflation abroad. For the sins of the debtors and speculators central punish savers.
As a result, the current U.S. policy and, consequently, global stagflation compel China to let its currency into free swimming and create a unified, independent, market-based financial system. American politics is pushing China to develop an alternative financial system. At one point China will understand that there must be independent of the dollar. Stagflation force China to accelerate reform. When this happens, the dollar collapses, the publication predicts.
Prerequisites for this is now. According to Bloomberg, citing the statement of Industrial & Commercial Bank of China, over 50% of trade between Hong Kong and mainland China is scheduled to transfer to the yuan, since exporters are less trusted devalues the dollar. 400 Chinese companies exporting from 5 pilot Chinese cities (Shanghai and 4 cities in the province Guandun in the south of China) as an experiment has recently been allowed to export their products for the yuan. By the time the next year, the experiment will be distributed throughout the country, up to half of Chinese exports will go to Yuan, the Chinese authorities have assured.
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