Will China Force The World To Trade In Yuan?

Dr. Mahathir Mohamad thinks that the richer the Chinese get, they will not accept the domination of the Dollar.  He thinks that China may force the world to trade in Yuan.  This is certainly a scary thing for the United States!

If China could force the world to trade in Yuan, people like me who are living in the United States would have to face many scary outcomes of a much weaker Dollar.  Just imagine if the world decides to drop the U.S. Dollar as the reserve currency, the United States then has to worry about the balance of trade even more than ever before.

A country in some ways is not that different than a normal household.  Besides getting loans, what you make is what you have got to spend.  Nonetheless, a normal household got bills to pay, and so what you make is what you have got to save somehow.  Without enough saving, you don’t have enough money to spend.  Living beyond one’s means will get one into huge debts.

Dr. Mahathir Mohamad hints that if China forces the world to abandon Dollar for Yuan, the United States won’t have enough gold and whatever to pay back debts and could declare bankruptcy overnight.  I’m an American and so I don’t want to see something like this to occur, but we’re not Chinese and so we can’t really know what the Chinese would do when they get even richer.

Check out the video right after the break to see Dr. Mahathir Mohamad — current Malaysia’s prime minister — speaks on how the Chinese may drop the Dollar in the near future and force the world to trade in Yuan.

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Robots Begin To Steal Jobs In China – Starting With Chinese Restaurants

We, who are in America, blame China for stealing jobs.  In China, I wonder do they blame the robots steal their jobs?  Check out the video above as the robots seen replacing waiters in serving foods.

Could Trade War Be A Blessing In Disguise For China?

What I’m about to write could be controversial for the time we’re living in now.  As we all know president Trump’s tariffs on China are the means to push China to negotiate a fairer trade — at least this is how the president promotes to the public.  So far China isn’t willing to be a pushover and so they decide to retaliate pound for pound.  This means whoever blinks first would lose a lot more in the long run, but in the end, both the United States and China would lose in short-term — well, at least this is how the news programs promote this.

I’m thinking that could tariff be a blessing in disguise for China?  How come?  China has been known as the factory for the world since they opened up their market and joined the World Trade Organization.  This means China can ramp up production of almost anything!  As Trump’s tariffs hit China, companies that want to avoid tariffs from the United States and still want to export to the United States would move their operations out of China.  Nonetheless, there are Chinese and foreign companies in China that produce the same stuff but have yet to export their products to the United States would find the vacuum suddenly is a lot more pleasant to navigate and do business.

The Chinese government could also be more lenient toward companies that decide to keep their operation within China, thus allowing these companies to prosper while China’s internal consumer market ought to grow bigger in time.  Remember Google?  Google left the Chinese market a long time ago but now Google has shown signs that it wants to grab a chunk of the Chinese’s huge consumer market.  Unfortunately, Google isn’t making much progress in this front and allowing similar Chinese homegrown companies to grow unchallenged within China.

Since Chinese companies that are going to stay in China could ramp up their production unchallenged as the trade war between the United States and China heats up, these companies ought to grow bigger in a more empty but lucrative Chinese consumer market.  Perhaps some European companies may want to open up their operations in China to give the Chinese companies some competitions.  Anyway, I think Chinese companies could grow unchallenged in their home market and mass produce even cheaper products to saturate the world market even more.  In the end, I think trade war could only harm a weaker foe who got no means to fight back and could not ramp up production.  In the case of China, I think trade war could be a blessing in disguise for the reasons I surmised thus far.

 

Could The Yuan’s Sliding Allow China To Unload Treasury Bonds?

I’m just wondering!  Lately, the headlines are screaming that China is devaluing the Yuan to help cushion the blow of Trump’s tariff on China’s exports to the United States.  Although this is a legitimate concern that the headlines raise, I’m wondering if there is another hidden motive for the Yuan to slide.

Could it be that the Chinese government is letting the Yuan slides so the treasury bonds that the Chinese own which Americans are in debt to China could stay valuable?  This way China can begin to sell the treasury bonds while the treasury bonds are still valuable.  Once China unloads enough of the treasury bonds onto the market, whatever value China receives from such transaction could then be converted to other favorable assets, investments, and currencies.

Of course, China could always convert the selling of treasury bonds into Yuan and then raise the Yuan’s buying power back up to stave inflation — but then it could begin a deflation.  How?  Well, if too many Yuans that are chasing the same thing could raise the price of whatever, but when the buying power of Yuans get push up the Chinese government then could lend out these Yuans to other countries and International projects such as Belt and Road Initiative projects to stave inflation.  A more powerful Yuan could also allow the Chinese to get more bang for the buck whenever they use the Yuans to acquire whatever.  Thus they also have to be careful about the deflation.

I’m no economist and so I could be wrong on what I’m suggesting.  Nonetheless, I would love to hear other people’s opinions on the suggestion that I’m suggesting.  Am I wrong?  Am I even close?

The United Nations’ Votes Against Jerusalem As Isreal’s Capital Got Nothing To Do With Palestine, It’s All About China!

I’m not trying to be controversial, but it’s my opinion that the United Nations’ Trump condemnation votes in regarding Jerusalem as the capital of Isreal had a deeper intention on a grand geopolitical scale.  What do I mean by this?  I think the countries that voted against the United States in recognizing Jerusalem as the capital for Isreal don’t really care much about the Palestinian claim for the Jerusalem, but these countries fear that if Trump is successful in claiming Jerusalem for Isreal could allow Trump to go on for an even bolder declaration.

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What declaration?  What if Trump gets so much confidence to eventually declare Taiwan as an independent country?  I think this is why the United Nations decided to vote no against Trump because they didn’t want to see Trump crosses China’s Taiwan redline.  Afterall, I don’t think China would leave Taiwan alone without doing something serious if Taiwan gets embolden enough to declare itself as an independent country.  If this to happen, the whole Asia region could get roil up in events that could lead to a much grander geopolitical fallout.

What a grander geopolitical fallout in Asia?  Well, imagine if China decides to invade Taiwan when Taiwan declares a separation from the motherland, the United States has to defend Taiwan.  Although the United States may not aid Taiwan through military immediately, the United States will eventually have to.  As the escalation gets only even more escalated, the genie would be out of the bottle and nobody at such a time would know how to bottle up the genie again.

It’s cliche to say that if China invades Taiwan we will have WWIII.  I think it’s a possibility this could be the case.  Though there are other options available such as the talk will begin to have Taiwan assimilates into China similarly to how Hong Kong and Macau have been.  Nonetheless, you can never rule out president Trump’s unpredictability.  Thus, the United Nations does not want to predict what president Trump will do.  Instead of predicting president Trump’s future movements, my guess is that the United Nations decided to vote against Trump on Jerusalem decision to prevent president Trump from getting too embolden in the near future.

 

Is China Preparing To Go To War Against The United States?

If the United States sanctions North Korea and China won’t go along, I think it’s normal.  If the United States sanctions North Korea and China pretends to go along, I also think it’s normal.  If the United States sanctions North Korea and China is going along with the plan, I don’t think it’s normal!  In fact, I think something big is about to happen.  

We all know China doesn’t want North Korea to be united with South Korea in fear of a South Korea’s victory, allowing the United States to be ever closer to China’s border.  Plus, North Korea got nuclear weapons and China is nervous about the aftermath of such weapons.  For an example, such weapons could be launched from North Korea into China by a force that is no longer friendly to China.  A collapse of North Korean regime could create chaos which allows an opportunity for whoever to launch nuclear warheads into China and avoid the blame at the same time.  Basically, in chaos, you can avoid taking the blame for launching nuclear warheads because you can just argue that wasn’t you and it was somebody else that went crazy during the chaos (i.e., inside North Korea).  China definitely doesn’t want this to happen, ever!

There are many other reasons why China rather has North Korea stays poor, weak, and friendly.  Isn’t it obvious?  Remember the Korean war in the 1950s?  China didn’t have to help North Korea out but they did waste roughly a quarter of a million men in the Korean War to make sure North Korea stayed North Korean.  Why did the Chinese spill so much blood for another country?  I think it was all about strategic calculation on the Chinese part.  Nowadays, even though China is a global superpower and no longer dirt poor, Chinese still thinks North Korea got some values as a weak, friendly state to China.  For obvious reasons I mentioned plus much more.

So, when the Chinese begin to go along with the American sanction scheme to try to collapse the North Korean regime economically, I think it’s something big that is about to be happening.  Let me guess.  I think if China is willing to help the Americans sanction North Korea, this means China is ready to go to war against the United States!  Why?

I think China wants to look good by going along with the United States’ sanction scheme on North Koreans and to win more friends in near term.  Secretly though, I think China is preparing for the day in which China has to attack the United States in North Korea.  For all the reasons I mentioned and if I’m not wrong, China is willing to go to war against the United States, thus China didn’t care to gain some favorable points with the world before North Korean chaos breaks out.

Since China is North Koreans’ main economic lifeline, it’s obvious that Korean regime may collapse if China is really going to sanction North Koreans, for real this time.  If North Korea is about to collapse, North Korea could try to launch an attack on South Korea.  If South Korea gets attacked, the United States would help South Korea defends against the North.  If the North is losing, Chinese will come in again to push the South and the United States back.  This time though, things could get way more catastrophic.  In short, I think that the Chinese think it’s imperative for them to come to the North Koreans’ aid to keep the United States and South Korea away from the Chinese border.

My suspicion is that China is ready to go to war against the United States, and so China doesn’t mind about following the United States’ lead on sanctioning North Korea for real this time — to gain points with the world and to surprise the United States.  After all the United States would have thought that China would only do a weak sanction on North Korea.  Nonetheless, the news has that China orders Chinese businesses to stop dealing with North Koreans and so forth.  Other hard Chinese sanctions are about to or already put in place against the North Koreans. 

I think when North Korea’s economy is completely destroyed, North Korea will attack South Korea.  I think North Korea only got an economy anyway because of China.  So, when North Korea attacks South Korea, the aftermath would be pure chaos.  Of course, there is also a possibility that China invades North Korea to secure nuclear weapons and control North Korea.  This way, the North Koreans still could be a buffer between China and South Korea/United States.

If China invades North Korea, China wouldn’t want the United States to be anywhere near North Korea’s 38th parallel border because China wants to take control of North Korea.  So, if in such chaos and the United States pushes for North Korea control, the United States may as well attack China.  I think this scenario would start a WWIII.

https://www.yahoo.com/news/north-korean-firms-china-ordered-close-january-114245591.html

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