Chinese Yuan Quickly Becoming an International Currency

News Analysis: Chinese Yuan Quickly Becoming An International Currency bodes well for other Nations of the World: It gives those Countries an additional Financial Choice. As Small Examples: a Government can engage in Arbitrage of its own currency against the U.S. Dollar or the European Euro. In  doing so, the value of its Currency Reserves may be enhanced; Privately,  Corporations around the World may find it more opportune to pay for Goods and/or Services with the Yuan; Businesses in China may find More International Customers for their Goods and Services.

One may assume that China realizes that the Profligate Debt of the United States [Currently $17 Trillion+ and Growing] will have a Long-Term Effect of reducing the value of the Dollars it holds.

No Permanent and Workable Solution for the Timely Repayment of  the ‘Mount Everest’ of Debt, has been decided by the American Government. So, the Financial Debt Avalanche Grows in both Size and Complexity. Its further Anticipated Borrowing will merely Compound the Problem. If Natural Calamities occur, such as Hurricanes ‘Hugo’ or more recently ‘Sandy’, then More Debt Will Occur. Even to the present, the U.S. Federal Government HAS NOT fully paid for the damages caused by Hurricane Sandy. Additionally, if another War were to occur, a Colossal Debt Increase will be realized. Inordinate Spending by “Washington” MUST STOP.

A Fundamental Attribute on the “Income-Side” of the Financial Ledger is that Debt is Partially Reduced by  Income Growth. As against other Nations, America has fewer Unique Goods it can sell  them. In part, this is because Washington’s Leaders with their Trade Agreements did not realize a Simple Economic Fact of Life: “A Successful  Country sells its Products Not the Technologies to Produce those Products”. Once the Technologies are Transferred and  Revealed, the Customer Countries merely duplicate the End-Products [and sell them at a Lesser Price]! Thereafter, the Short-Sightedness of the Initial Technology Countries continues to “Bite-Them-In The Pocketbook”.

This has Already Happened to America [Technology Transfer].

Perhaps, Some Countries are in their current Inextricable Economic Dire Straits due to a Lack of Financial Common-Sense by their Government Leaders. This is Not Rocket Science.

Reality.

Reference: http://rt.com/business/foreign-currency-china-reserves-075/