Trans Pacific Partnership (2)

On August 1, 2015, I wrote about the Trans Pacific Partnership (TPP), which failed to reach an agreement then. Now in the news, the U.S., Canada, in total 12 countries, have signed the Trans Pacific Partnership (TPP) deal.

As I said before, and now again, this is not just about business, trade and economics, but also politics. If not for politics and counter-balancing the growing might of China, it just doesn't make sense that China being the biggest country in Asia Pacific was left out in the TPP deal. However, there may be a TPP2 coming, that China may eventually join later. 

Uncle Sam just doesn't want China to set the rules in international business, trading and economic games, especially with the Asia Pacific countries. The creation of the Asia Infrastructure Investment Bank (AIIB) was China's win. The TPP deal is the U.S.' win. China's rise is a certainty, but the US decline is not, so the game goes on. 

In any economic policy or trade deal, there will be winners and losers. Instead of arguing too much about whether the TPP is a good deal or not for your country, please focus more on your own situation and see if it is something good or bad for you, and make all the necessary adaptations and adjustments to face the new reality. Take care.

Could China Kill The US Dollar ?

I've just finished watching a Youtube video titled 'Could China Kill The US Dollar?' Here are my thoughts and comments:

My personal opinion is that China could indeed kill the US Dollar, but she would do so only gradually, not suddenly. She has been doing so slowly, but picking up speed recently, as evidenced by the newly formed China-led Asia Infrastructure Investment Bank (AIIB), increase of gold production and purchase, and bi-lateral agreements signed with many countries in using their own currencies for trading, bypassing the use of US Dollar. 

The HSBC (Hong Kong and Shanghai Banking Corporation) is a British Bank with a deep Chinese root. Both UK and Hong Kong are HSBC's 'home markets'. HSBC is thinking of moving its headquarters from London to Hong Kong. The UK was the first Western country and US ally that joined the China-led AIIB, followed by many others. Uncle Sam was not pleased.

I don't think China really wants to kill the US Dollar completely. China just wants to de-dollarize the world. China, Russia, Asia, Africa, Latin America, Middle East, even Europe and the World, just don't want to be completely dominated by the US any more. No more unipolar world controlled by big-boss America !
 
There are many speculations or predictions that the US Dollar will collapse, but my guess is that it will not die with a big bang but with a whimper. China is killing the US Dollar softy with her Yuan (Chinese Dollar), also known as Renminbi (People's money). 

Some Americans are super wealthy, but as a whole, the US as a country is broke, owing trillions of dollars to China, Japan and other countries. The 1% is still doing great of course, but the 99% is struggling. Does Uncle Sam still want to go to war, which is a super expensive, terrifying and deadly game, profitable only to a few people, but at the expense of the life and death of many ? 

The US Dollar may not even die, but it will no longer be the only dominant trading and reserve currency of the world. China's rise is certain, but the US' decline is not. Instead of setting road blocks and preventing China from rising, Uncle Sam should pay attention to his own many problems. As Jimmy Carter said, the U.S. must respect China, and vice versa. If a nuclear Third World War breaks out, the whole world will be finished. We must never let that happen.