It's time wE sAid goodbye aMerican dollar Posted by VNb , Wednesday, November 11, 2009 at 11/11/2009 07:53:00 PM, in

We confront a lot of answers to weather the american dollar still dominates the global economic market,but all of them are answered in camouflage and all the confabulators around are almost half a mind to understand this concept which is a very significant one in a seemingly insignificant way,and why not they be,as the new buzz word in the global ecenomic market"YUAN" has got it's fair share of complexities attached to it.

"Yuan" as we know is the currency of not only the fastest growing but the overall third largest economy of the world.
Many great economists despite have believed a few years back that yuan can dominate the gloabal market,seem to acknowledge that yuan has reached a level where it is the strongest currency of the world,but strings attached.The chinese are reluctant enough to let their currency strengthen as compared to the $US...why???But before I answer that why,let us look at the resolution from the the recently concluded G-20 conference which not only explains the major problem damaging the sustainability of the economy but also to an extent explains the the forthcoming dominance of the chinese in the world::::::::::::::::
--The chinese consume just a little over 40% of what they produce and so they save 50% of the outputs and out of that export 8% of the savings and also from that a major part is exported to US and this for many years has been increasing the external liabilities of United States mostly in the form of chinese bonds.
So very conspicuously the chinese are not willing to strenghten their currency due to the fact-"stronger a country's currency ,the less attractive it's exports and the cheaper it's imports,boosting local absorption of goods and services"
So the big question remains whether the chinese would agree to let their currency strengthen significantly against the US dollar to boost domestic consumption or will continue to rule under the veil....