Testimony of a Mongolian Singer (2015)
The Depreciation of the Chinese Yuan - 2014
Dawn of Asia Magazine
The Internatinalization of the Chinese Yuan (2012)
The Fallacy of the US Dollar (2011)
Faces Behind the Label (2010)
Stop The Buck - The RMB Should not Rise (2010)
The Speed Of Money (2009)
Marginalized Migrants in China (2008)
Minority Peoples Groups (2004)

 

The Speed of Money

                                                                                                                                                                                                May 1, 2009

The global economic crisis will definitely affect the domination of the US dollar as the world currency and usher the Chinese Yuan to achieve international currency status.

The global economic crisis takes shape in terms of a domino effect, not just by the crumbling of the sublime mortgage market and hedge funds, but also of the over-valued stock and real estate markets of developed countries.  At high speed, the demand of money is shrinking on a sliding scale while its supply is increasing.  The rapid speed of money devaluation occurring in the United States affects the global economy.  Once this happens in the US, which is the head of the game, it affects the Australian and Canadian dollars, the S. Korean Won, the British Pound and then the Euros. It sounds like a game of poker but it is a reality in this crumbling market.  China’s and Japan’s Foreign Exchange Reserves also devaluate since they are holding the highest stakes of the United States Dollars and Treasury bonds. The Speed of Money is a global game, a global economic shrinkage that will eventually cause a major global depression.

The author predicted the fall of the US dollars and her economy in the 2007 Spring Issue of Dawn of Asia Magazine (www.prfoundation.org). The fall of the US dollar causes the cost of imported goods to the United States to rise, thereby, hurting the countries that are dependent on the US market for their export industries.  It makes the US export goods more competitive in the world market and may hurt the global economy as a whole. 

The Obama economic package will cause the US dollar to devalue more. This depends on the speed at which falling US enterprises are salvaged.  Economists in the US are afraid that his budget deficit plan will cause America to crumble faster than the speed of saving it. 

"What we will not cut are investments that will lead to real growth and prosperity over the long term," Obama said. "That's why our budget makes a historic commitment to comprehensive health care reform. That's why it enhances America's competitiveness by reducing our dependence on foreign oil and building a clean energy economy." His $3.6 trillion budget for the 2010 fiscal year beginning October 1 contains ambitious programs to overhaul the U.S. health care system and rules to combat global warming.  (Associated Press)

“The US Treasury Department said that the budget deficit increased by $192.3 billion in March, 2009 and is near $1 trillion just halfway through the budget year, as costs of the financial bailout and recession mount.

The deficit already totals $956.8 billion for the first six months of the budget year, also a record for that period.  The Obama administration projects the deficit for the entire year will hit $1.75 trillion.

Nearly $300 billion provided to the nation's banks and other companies to cope with the most severe financial crisis in seven decades has pushed government spending higher.

The Treasury report said that through the end of March, $293.4 billion had been provided to support companies through the $700 billion bailout fund Congress passed last October. That support has been provided primarily to banks, although insurance giant American International Group Inc. and auto companies General Motors Corp. and Chrysler LLC also have received assistance.”  (China Daily 2009-4-11)

Richard Daughty, the general partner and COO for Smith Consultant Group, said,  “ I keep watching the steady march of China towards world domination, and its currency getting bigger and stronger until it achieves reserve status and replaces the worthless (US) dollar.”  The author completely agrees with this projected vision of the Chinese Yuan.  The China Central Bank Chairman, Zhou Xianchun challenged the US dollars’ domination as the world currency in the G20 meeting in London.  Is he predicting the future of the US dollar, the creation of a new world currency,  or the future of the Chinese Yuan in the world economy.  We wait and see with a watchful eye.  (The Daily Reckoning 2009).

By Chuck Chan, Management Consultant
Pacific Rim Foundation, Limited
An Educational Foundation in Hong Kong Serving the Asia Pacific Regions