China and the G-8 or What to do When Your Banker Says No
The origin of the Group of Eight was an invitation from
French President Valery Giscard dâ€™Estaing in 1975 to six of the major World War
Two combatants to meet at Rambouillet in France. Leaders from West Germany, Great
the United States, Japan and France attended that first meeting.
The impetus to the summit, if not the sole topic, was the first post war
economic challenge to the west, the 1973 OPEC oil embargo. In 1976 Canada was invited to join and the group stayed
at seven until 1997 when Russia
formally became a member.
Although formed a generation after the end of the Second
World War, the G-7 represented the dominant nations of the defining event of
20th century history. As with the United Nations for international politics, the
G-7 was an attempt to secure the victory of the western economic model.For the first 30 years after the war the only
antagonist for the western capitalists had been the political and military
threat of the Communists led by the Soviet Union.
Until the oil embargo there had not been a serious economic challenge to Western
Europe, the United States
Why relate this history? The nations of the Second World War consensus
that have dominated the world for 60 years are close to bankrupt.Their foreign bankers are now calling the
shots; those who pay decide the future.
The abandonment of the climate change issue at the G-8
meeting is an example. Though the global warming agenda is a major part of the
domestic political positions of President Obama, Chancellor Merkel, Prime
Minister Brown and President Sarkozy the issue was removed from G-8
consideration because China,
and others would not go along. This is perhaps a foretaste of what will happen
on every topic in which China
and the other BRIC (Brazil, Russia, India,
countries have an interest.
China, Russia and India have been very public with
their concerns for the long term value of the US Dollar and critical of the
effect of American deficit spending. In April, Chinaâ€™s holding of US Treasuries
fell for the first time in eleven months.The amount was small, $4 billion and partially offset by a small gain in
Hong Kong. But in the charged atmosphere of
todayâ€™s international economics and in light of US funding needs, the drop was
widely noted.From April 2008 until
March 2009 the Chinese Government had been steadily acquiring Treasuries; its
holding had increased from $502.0 to $767.9, a jump of 53%.
has also moved to increase the supply and demand for the yuan as an alternative
to the dollar by starting limited trade settlement in its currency. On July 6th
some firms in five Chinese cities were allowed to begin settling transactions in
yuan with companies from Hong Kong, Macau and
the ASEAN countries. Non-Chinese banks will be able to obtain yuan from
mainland institutions to finance trade.
The Peoples Bank of China (PBOC) has also formulated
currency swap agreements with Argentina,
Malaysia and South Korea.
The PBOC will render yuan to their central banks as needed to pay for imports
if these countries are short of the currency.
These moves by the Chinese authorities will not establish
the yuan as an international reserve currency. But they will shift some of the trade
demand for dollars to yuan. Offered the choice what Asian trading partner of China would not
want to remove the volatile and increasingly questioned dollar from their
financial equation? The logic is simple and efficient. Why hold reserves in dollars
for your China
trade and bear the currency risk? Yuan reserves reduce the need for dollars and
reduce dollar currency risk.
emerged as the engine of growth in Asia and Asian countries are looking to China
for the health of their own economies. If yuan settlement becomes the policy of
the Chinese Government what trading partner will want to go against Beijingâ€™s wishes and opt
for dollar settlement? Considering the size of Chinaâ€™s foreign trade the potential
drop in dollar demand could be substantial.
Until now it has been in China's interest to keep the yuan
undervalued for trade competition. Since last summer China has effectively re-pegged the
yuan to the dollar after three years of gradual appreciation. But that is likely
to be a temporary expedient.If China is
serious about using the yuan in trade and in permitting outside players, non
Chinese players, to hold and store value in yuan, an essential component of a
reserve currency, what better way than to resume a gradual appreciation of the
currency?For an exporter in Vietnam or Thailand
or even Australia, Japan or New
Zealand would not an appreciating yuan be a far better
option for your China
trade capital than the dollar?
Chinese national interest will determine Beijingâ€™s economic policy. But the time is
fast approaching when safeguarding her economic development will be far better
served by a strong and convertible currency than by a weak yuan priced for
export.A strong dollar has been one of Washingtonâ€™s most
effective foreign policy tools for more than 50 years; that fact is not unknown
in the Chinese capital.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Actionable trading levels delivered to YOUR charts in real-time.
Mon 10 Sep 2018 AA 08:30 GB- GDP, Trade, Output Tue 11 Sep 2018 AA 08:30 GB- Employment Decision A 09:00 DE- ZEW Survey Wed 12 Sep 2018 A 12:30 US- PPI A 14:30 US- EIA Crude A 18:00 US- Beige Book Thu 13 Sep 2018 A 1:30 AU- Employment AA 11:00 GB- Bank of England Decision AA 11:45 EZ- European Central Bank Decision A 12:30 US- Weekly Jobless AA 12:30 US- CPI Fri 14 Sep 2018 A 08:30 GB- GDP AA 12:30 US- Retail Sales A 13:15 US- Industrial Production AA 14:00 US- prelim University of Michigan
John M. Bland, MBA co-founding Partner, Global-View.com
Global-View Affiliate Program
We are starting an affiliate program to market some of our products.
Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.
Put the word "affiliate" in the email subject line.
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.