US dollars?

Greetings,
Rather disconcerting IF true... U.S. Corporations Dump Dollar For Chinese Renminbi To Buy Imports

We'll know it's serious when the drug dealers only take Chinese currency.

Well, if someone offered me a huge discount if i paid them in a certain currency, I would probably do it. But the dollar isnt going anywhere anytime soon. Name another country besides China that accepts a 'Rembini' or whatever they call it.

Greetings,
Mr. b. From the article: " Last April, the world's 12th-ranked economy, Australia, joined a growing list of nations that have agreed to bypass the dollar in bilateral trade with China. China, ranked 2nd behind the U.S., also has similar agreements with Japan (3rd), Brazil (6th), India (9th), and Russia (10th)."

They may be bypassing the dollar for trade but the renminbi has a long way to go before it becomes even a reserve currency, nonetheless becoming the reserve currency. It has little liquidity and is not exactly stable with the big manipulative swings.

Great website. I just ordered some vitamins to counter the effects of chem-trails. Thanks for sharing.

Greetings,
Mr. NS. Baby steps.

And, we have an emoticon for that now! Maybe the mods can add that one to our collection.

I don't understand why the US dollar is worth anything. The US is 17 trillion dollars in debt
and 1.3 trillion in debt to China alone. Maybe the Renmimbi isn't as bad as you think.

While the position of Chinese currency and the nations allowing direct conversion has increased, there is nothing new about trading in other currencies. Most large companies prefer not to gamble on currencies where one year they might experience huge gains and another year huge losses. The way to avoid that is to convert to the other currency up front.

Lets say currency A is equal to 2 currency B. Now currency A is my currency. I want to buy this item for $2A or what is currently $4B. I make the deal for $4B. Now if I don't convert some A to B to cover it or buy some futures then I run a substantial risk. Lets say I don't and time passes before I have to pay but by that time A is equal only to 1.5 B. Now I have to spend $2.67A to pay. Well, I just lost on currency conversion whatever profit I might have made. So the practice of most large businesses is to convert or protect themselves with futures.

Years ago I'd see orders placed for multi million dollar machinery. I knew one company that ordered $2.5 million in equipment. Heads rolled when it was shipped and cost $4 million.

RT Firefly said:

Greetings,
Mr. NS. Baby steps.

Click to expand...

Yeah, that's what my wife said too...

She's making me return the 3rd gen night vision goggles and the ninja suit.

Anyways, it's nice to know there are news sites like this for rational-minded folk like me.