Dollar

Russian Rouble is Acceptable in Chinese City

News Analysis: Russian Rouble is Acceptable in Chinese City as both Countries expand transactions freely.  On the Sino-Russian border in Northeast China, Suifenhe, commences consumer currency interactions for Russian Shoppers.

This policy of using both Countries’ Currencies is very Wise. As these Nations rely more on their Own Currencies for Trade, the Dollar and the Euro decline in importance. For these Countries and possibly for other Nations, if they participate, More Currency Choices can be advantageous.

Since the American Currency is so Burdened with Multi-Trillion Dollar Debt underlying it (and little else), Wise Individuals will use other Units of Trade. The “Economic Black Hole” Washington, D.C., Leaders have created, the past few years,  allow for “No Escaping Financial Light”.

The Enormous Debt of America CANNOT be Repaid in a U.S. Adult-Taxpayer’s Lifetime. Reality.

Reference: http://rt.com/business/china-ruble-currency-suifenhe-905/

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/

China Construction Bank Opens Its European Headquarters in Luxembourg

News Analysis:  A goal of omnipresent use of the Chinese Yuan [Renminbi] , throughout the international banking community, will be facilitated by such bank openings. An increase in Yuan bank deposits in a multitude of countries will assist this process.

Present U.S. Dollar denominated banking will subside over the years as the profligate spending by U.S. Government leaders remains unabated. The current, for the moment, $17,000,000,000,000.00 deficit cannot logically be expected to be paid off in the foreseeable future [especially with the present-day thinking in Washington]. As a result of the financial debacle in America, being maintained by “U.S. Financial Masters of the Universe”,  ‘Print More Money’ has been, is, and will be, their clarion call. Due to the fact that there is ‘little to back the Dollar up’, Arbitrageurs will look to other currencies for strength.

Reference: http://tinyurl.com/mteyzfy