China’s Renminbi May Supplant Dollar

[hembo]

China’s Renminbi May Supplant Dollar, Subramanian Writes in FT
By Alan Purkiss - Sep 12, 2011 12:43 PM GMT+0300

China’s renminbi may displace the dollar as the world’s main reserve currency within a decade, according to Arvind Subramanian, a senior fellow at the Peterson Institute for International Economics, based in Washington D.C.

Writing in the Financial Times, Subramanian said China has almost caught up with the U.S. as an economic power, with an economy about as large in terms of purchasing power and much greater exports and overseas assets.

While that doesn’t make the rise of China’s currency inevitable, it creates the conditions for it, he said.

China still has to carry wide-ranging policy reforms, but the internationalization of the renminbi is being pursued in a characteristically Chinese way -- micromanaged, interventionist and enclave-based, Subramanian said.

The granting of greater but selective access to the renminbi to some foreign entity or country, such as last week’s initiative to promote London as an offshore trading center for the currency, has become a frequent occurrence, he said.

China has a reason for turning the renminbi into a reserve currency, namely that it offers a way out of the decades-old and controversial growth strategy of keeping the currency undervalued and the economy closed to foreign capital, Subramanian said.

 

[KALKI]

Personally, I believe China needs to have a free media first before it's currency can be made the international reserve currency.

For a currency to be an international reserve, investors must have high level of confidence in the country including small investors.

Free media is probably the only way to boost investor confidence.

...letting people know what actually is.

 

[lem34]

Of course this would mean the destruction of the US dollar with adverse effect for america. I have in earlier posts and threads (you can go and check) where I predicted the demise of US dollar within 5 to 10 years have been roundly criticised and told that I am having wet dreams by lots of indian members for predicting the demise of america. I have also been told that its cos I hate america which is not the case. I have also previously elucidated the effects on america and indirectly Israel and what this will mean. I am pleased that I am not the only one who has these views and this article proves that.

 

[Faiez]

Personally, I believe China needs to have a free media first before it's currency can be made the international reserve currency.

For a currency to be an international reserve, investors must have high level of confidence in the country including small investors.

Free media is probably the only way to boost investor confidence.

...letting people know what actually is.

there is a very big problem/flaw with the concept of "freedom". Many have abused/exploited it to the fullest.

Do you give the people the freedom to destroy freedom as well?

Since that is what freedom means, let people decide whats best for themselves. So if they freely decide that freedom is not the best thing for them, then what? ( like the case is in china, where people support communist government )

So in the long run, say 100yrs, a free country will eventually turn to a controlled one. Cuz once its controlled, no way to get freedom back without massive bloodshed.
recent example= libya, iraq etc..

The same is true with media as well. Once people realize the power of media, they will try to control it. And eventually take full control of it.

 

[Obambam]

Freedom granted by someone isn't freedom.
Fairytale like freedom simply doesn't exist.
The closest experience real freedom can only be found in no man's land or in hell hole Somalia.

 

[KALKI]

Freedom granted by someone isn't freedom.
Fairytale like freedom simply doesn't exist.
The closest experience real freedom can only be found in no man's land or in hell hole Somalia.

All this rhetoric sounds good but does little to boost investor confident, I'm afraid.

 

[Developereo]

Of course this would mean the destruction of the US dollar with adverse effect for america. I have in earlier posts and threads (you can go and check) where I predicted the demise of US dollar within 5 to 10 years have been roundly criticised and told that I am having wet dreams by lots of indian members for predicting the demise of america. I have also been told that its cos I hate america which is not the case. I have also previously elucidated the effects on america and indirectly Israel and what this will mean. I am pleased that I am not the only one who has these views and this article proves that.

This is not a pro-China article. It plays up the usual "Chinese are devious and are a threat to the West" scare mongering.

Please read again carefully.

 

[lem34]

This is not a pro-China article. It plays up the usual "Chinese are devious and are a threat to the West" scare mongering.

Please read again carefully.

Read what I have said if you wish for me to answer back.

 

[Obambam]

All this rhetoric sounds good but does little to boost investor confident, I'm afraid.

That was not supposed to boost investor confidence. That was reality.
In fact the very freedom you cry for are doing the opposite thing for the American dollars.

 

[Aramsogo]

Indian media told to write positive, happy stories about India and negative stories about everybody else. At least the Chinese know their press is bs and seek other sources.

 

[KALKI]

That was not supposed to boost investor confidence. That was reality.
In fact the very freedom you cry for are doing the opposite thing for the American dollars.

I'm not sure how this is on topic.

...or you're trying to define your own financial system?

That is no way to make a reserve currency.

 

[Developereo]

This is not a pro-China article. It plays up the usual "Chinese are devious and are a threat to the West" scare mongering.

Please read again carefully.

You seem to think this article validates your anti-American predictions.

I am saying this article is not about America at all. It is about China scare-mongering.

Notice how it barely says anything about the US or the dollar, but reiterates the usual accusations about devious behavior by the Chinese.

 

[jdme]

Indian media told to write positive, happy stories about India and negative stories about everybody else. At least the Chinese know their press is bs and seek other sources.

---------- Post added at 08:33 AM ---------- Previous post was at 08:32 AM ----------

Good news China.

 

[Obambam]

I'm not sure how this is on topic.

...or you're trying to define your own financial system?

That is no way to make a reserve currency.

I was responding to your comment and I believe it has every bit to do with the topic.
Sad news for you is, the make and break of the reserve currency is not down to what you think.
Looking at the economy as a whole and America and China being the top two economies, there really isn't much to choose from. Don't even bring Euros into it, they will be lucky not to get pulled deeper into the hole by countries such as Spain, Portugal and Italy.

 

[Faiez]

Freedom granted by someone isn't freedom.
Fairytale like freedom simply doesn't exist.
The closest experience real freedom can only be found in no man's land or in hell hole Somalia.

that was my point...
freedom does not exist in the long run.
fairytale like freedom existed in newly found USA and lasted a long time but since the last 100 years, that freedom is gone.

Its because they gave the people the freedom to indirectly choose if they wanted freedom or not.