|China Daily Pic|
OCTOBER 12, 2017 / 2:28 PM / 3 MONTHS AGO
China establishes yuan-ruble payment system
SHANGHAI (Reuters) - China has established a payment versus payment (PVP) system for Chinese yuan and Russian ruble transactions in a move to reduce risks and improve the efficiency of its foreign exchange transactions. The PVP system for yuan and ruble transactions was launched on Monday after receiving approval from China’s central bank, according to a statement by the country’s foreign exchange trading system. It marks the first time a PVP system has been established for trading the yuan and foreign currencies, said the statement, which was posted on Wednesday on the website of the China Foreign Exchange Trade System (CFETS). PVP systems allow simultaneous settlement of transactions in two different currencies for more, go to https://www.reuters.com/article/us-china-yuan-rouble/china-establishes-yuan-ruble-payment-system-idUSKBN1CH0ML
Whatever, it’s still about the US vs China-Russia combo!
KUALA LUMPUR (January 2018): Below is touted as an interesting article by an Indian economist about how the US borrows and spends unabated globally.
While it may be an interested view, but the spending will most certainly turn into a nightmare for the US in a matter of time.
Today, President Donald Trump is administering the US with an inclusive policy - American first. Why?
The “bankrupt” US economy needs to be rehabilitated or healed because its foreign debt has hit US$5 trillion!
Although China has invested the most in the US economy, it is by no means the Chinese are stupid.
I Love Malaysia-China Silk Road believes China’s global investments are aimed at long-term returns, global economic sustainability and global influence for the Chinese.
Our bet for the future is still with China, not the US.
The China-Russia combo is holding the US by its b…s, squeezing them slowly by attacking the Greenback through the use of the Yuan and Ruble for trans-border financial transactions and trade.
And, our bet is that Trump, as a shrewd and highly successful businessman, is aware of the long-term “side effects” on the US economy and the Greenback.
He is thus managing and administering the US as a corporate entity, unlike previous American presidents.
Here’s that so-called interesting view from an Indian economist but please do maintain your on independent view and “gut feel”:
Interesting article written by an Indian Economist about world economy. Amazing logic indeed. This is a crazy world! How valid is it? I leave it to you!
Japanese save a lot. They do not spend much. Also, Japan exports far more than it imports. Has an annual trade surplus of over 100 billion. Yet Japanese economy is considered weak, even collapsing.
Americans spend, save little. Also US imports more than it exports.
Has an annual trade deficit of over $400 billion. Yet, the American economy is considered strong and trusted to get stronger.
But where do Americans get money to spend? They borrow from Japan, China and even India.
Virtually others save for the Americans to spend. Global savings are mostly invested in US, in dollars.
India itself keeps its foreign currency assets of over $50 billion in US securities. China has sunk over $160 billion in US securities.
Japan's stakes in US securities is in trillions.
The US has taken over $5 trillion from the world. So, as the world saves for the US - It's The Americans who spend freely. Today, to keep the US consumption going, that is for the US economy to work, other countries have to remit $180 billion every quarter, which is $2 billion a day, to the US!
A Chinese economist asked a neat question. Who has invested more, US in China, or China in US? The US has invested in China less than half of what China has invested in US.
The same is the case with India. It have invested in US over $50
billion. But the US has invested less than $20 billion in India.
Why the world is after US?
The secret lies in the American spending, that they hardly save. In fact they use their credit cards to spend their future income. That the US spends is what makes it attractive to export to the US. So US imports more than what it exports year after year.
The world is dependent on US consumption for its growth. By its deepening culture of consumption, the US has habituated the world to feed on US consumption. But as the US needs money to finance its consumption, the world provides the money.
It's like a shopkeeper providing the money to a customer so that the customer keeps buying from the shop. If the customer will not buy, the shop won't have business, unless the shopkeeper funds him. The US is like the lucky customer. And the world is like the helpless shopkeeper financier.
Who is America's biggest shopkeeper financier? Japan of course. Yet it's Japan which is regarded as weak. Modern economists complain that Japanese do not spend, so they do not grow. To force the Japanese to spend, the Japanese government exerted itself, reduced the savings rates, even charged the savers. Even then the Japanese did not spend (habits don't change, even with taxes, do they?). Their traditional postal savings alone is over $1.2 trillion. Thus, savings, far from being the strength of Japan, has become its pain.
Hence, what is the lesson?
That is, a nation cannot grow unless the people spend, not save. Not just spend, but borrow and spend.
Dr. Jagdish Bhagwati, the famous Indian-born economist in the US, told Manmohan Singh that Indians wastefully save. Ask them to spend, on imported cars and, seriously, even on cosmetics! This will put India on a growth curve. This is one of the reason for MNC's coming down to India, seeing the consumer spending.
'Saving is sin, and spending is virtue.'
But before you follow this Neo Economics, get some fools to save so that you can borrow from them and spend !!!
The world is in a economical mess 馃槄- interesting read"
|China and Russia vs. the United States?|
Just how likely are China and Russia to ally against the U.S.?
By Huiyun Feng
March 02, 2015
The rising tensions between Russia and the West, especially the United States, over Ukraine provide a constant reminder of the Cold War, when the two superpowers fought proxy conflicts for spheres of influence. A key question in the current game of great power politics is whether China and Russia will form an alliance against the United States? In his Foreign Affairs article “Asia for the Asians: Why Chinese-Russian Friendship is Here to Stay,” Gilbert Rozman listed six reasons why the Chinese-Russian partnership is durable. However, Joseph Nye, in a recent piece published in Project Syndicate titled “A New Sino-Russian Alliance?” questioned the possibility by pointing to deep problems for a Sino-Russian alliance in the economic, military and demographic spheres … for more, go to https://thediplomat.com/2015/03/china-and-russia-vs-the-united-states/