Ask the Boss (2)

Boy: What is freedom of speech?

Boss: It means I am free to lie,

you are not free to tell the truth.

Boy: What is human right?

Boss: It means give me your money,

no money no right.

Boy: What is your kind of democracy?

Boss: It is one dollar one vote, not

one person one vote.

Boy: I don’t understand.

Boss: Good. 

 

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. 

Economic Freedom

In the news, the U.S. ranks 12 in a report of Economic Freedom by the Heritage Foundation. These are the top five with the most Economic Freedom: (1) Hong Kong, (2) Singapore, (3) New Zealand, (4) Australia, (5) Switzerland.

Canada is (6), which is not bad. The falling of Oil Price and the value of Loonie is good news to some, but bad news to others. There is no perfect country on Earth. On the whole, Canada is still a great country to live in. What do you think ?

The American Dollar

The American Dollar is no longer as mighty as it was. The Almighty Dollar doesn't sound Almighty any more.On the latest trip of Stephen Harper to Beijing, Canada signed a currency deal with China. Business between the two countries can now be conducted in their own currencies of Canadian Dollar and Chinese Yuan.

Canada is not the first country which has signed such a currency deal with China. Many countries have already done so. This enables business between countries to be conducted directly in their own currencies, without having to take the extra step of converting them  to U.S. money.  

As many know, the American Dollar was backed by gold in the past. In 1971, president Nixon untied the American Dollar from gold. It then became the Petro Dollar. International trading of oil and other commodities was then conducted in U.S. currency. At the present, the American Dollar is just fiat money backed by nothing, except you may say that it is backed by bullets and bombs. In other words, Uncle Sam would get mad and force you to use the American Dollar, and if you refused to comply, he would make your life difficult, by using political pressure, economic sanction, and even military action.   

The game of creating American money from thin air will be over. It may not be completely replaced by another new game, but it will not be the only game, or the primary game.

Some economists, investors, financial people, or even conspiracy theorists predict that the American Dollar will collapse soon. I don't agree with them entirely. I don't think that it will be a sudden and quick collapse. I believe it will gradually lose its status as the international trading and reserved currency. It is already happening. All said, I could be wrong, so please don't point finger at me, if the American Dollar suddenly collapsed. I pray that it won't, because if it happens this way, the American people will suffer greatly beyond words.     

Uncle Sam is in heavy debt, owing trillions of dollars to China and other countries. It is a losing game, to keep borrowing and printing money, in order to maintain a false or exaggerated economy, and to finance the very expensive military adventures everywhere.

Will the Almighty Dollar, the American Greenback, give way to the Chinese Yuan (Dollar) or Reminbi (people's money) ? Just wait and see !!!       

Miley Cyrus and Mexican Flag

Miley Cyrus was performing in Monterey, Mexico. She wore a big prosthetic butt while some male dancers hit it with the Mexican flag. She was investigated and fined by the Mexican authority for her disrespectful and degrading act.  

My thoughts and comments: 


When in Mexico or any country, you respect the laws of that country. Problems would arise if you insisted on using your own country's laws, culture and values to "over-rule" those of another country. 

Miley Cyrus is a good singer. She didn't really need to show her butt, real or fake, to prove her talent. She went nude on a wrecking ball, twerked and behaved like a soft-porn star etc. etc. all due to business reasons. I believe it is simply the business reality that she embraced. In other words, the almighty dollar, fame and celebrity status are more attractive to her than just the artistic value of her singing and performing craft. She wanted to be a diva, not just a singer.

Last but not least, when you are in Mexico, and if you are not a Mexican, please don't wear a T-shirt with a Mexican flag on it. I have a friend who did that and was taken to a police station for questioning. Good Day !!! 

Reality Show

Forget the manufactured Reality Shows on American T.V. This is the true Reality Show of the world we live in: international economics and geopolitics.

 

We are living in interesting time. It is very exciting and hopeful, but also very worrisome and dangerous. The problem is that world leaders do not genuinely work 'with' one another, but 'against' one another. It's like different gangs fighting for control and influence in different territories.

 

Uncle Sam, USA, while already in heavy debts and with so many big problems at home, continues to insist on being the big boss of the world and refuse to let other countries rise up peacefully. Just creating fiat money from thin air is only an illusion, not a solution. How long can Uncle Sam fool people to accept his fiat money? Sooner or later, the American Dollar will lose its international value and trading status. Is World War 3 coming? I don't know. It's possible, but I hope not !!!

Gordon Chang, America and China Bashing

This guy Gordan Chang is very biased against China. I've watched him talk in some Youtube videos. He wrote a book called "The Coming Collapse of China"'.
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USA and China are frienemies, with a love-hate relationship. American ( or any) capitalists and industrialists worship money, not Uncle Sam or some imaginary god. From a purely economic point of view, that's what they do, to minimize cost and maximize profit; money is much sexier than nationalism.
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Many big companies and factories in China are owned, co-owned or controlled by Americans. American workers lost jobs to Chinese workers not because Chinese workers "stole" their jobs. It was due to cheaper labor cost in China and other political and economic reasons.
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Complaining about pollution in China and Chinese stealing jobs from Americans must include the understanding that the Americans themselves are the consumers of these many affordable Chinese-made goods. If the American capitalists and industrialists stay home to create the same Chinese-made goods, American labor cost will be much higher, and the American-made goods will be much more expensive. Also pollution and poor air quality will stay home for the Americans to suffer.
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A recent world survey shows the least peaceful and most dangerous country in the world is not China, Russia, North Korea or Iran. It is U.S.A. The country with the most deadly killing machines and weapons of mass destruction is U.S.A., not China or Russia. The rise of China is certain, but the decline of USA is not. Who is going to collapse first ? If you ask Gordon Chang, he'll say China. If you ask many other political and economic analysts, they'll say USA. Let's wait and see who is right ! ( I hope nobody is right, that neither USA nor China will collapse. I hope all countries will stop fighting and give world peace a chance ).

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P.S. Gordan Chang has been predicting the economic collapse of China for years, even providing a timeline when it would happen. He published his book "The Coming Collapse of China" in 2001, and predicted that China would collapse in 2006. He was wrong. Instead, USA had a financial collapse in 2008. He was wrong each and every time, again and again, and his followers (who ? people looking for entertainment ?) are still waiting for China to fall. Will Gordan Chang shut up, if and when China overtakes USA as the largest economy in the world, possibly in the next few years ???

US Dollar and World Trade

It's only a matter of time that the US Dollar will lose its status of being the international trading currency. It's already happening. Super rich Americans have either transferred a large chunk of their money and wealth out of USA, or they themselves have moved to another country. Singapore is a favorite choice. The center of world economy has already gone to Asia. In just a few more years, China will overtake USA and become the largest economy in the world.