|The Chinese Yuan Standard|
The proof that was presented is irrefutable that in real terms the US economy produced goods and services worth US$14.6 trillion in 2010 but China's GDP (gross domestic product) was US$14.8 trillion.
The situation is set to worsen as the US is falling further behind, every day. US growth was 1.7% and China's is 9.2% in 2011.
Beijing has become so powerful that it can now dictate economic policy to the US. China has approximately US$1.9 trillion of debt whilst the US has US$145 trillion. China's reserves are US$3.2 trillion, the US has nothing and borrows nearly 50% of all the money it spends from China. China's tax revenues grew 30% last year whilst the US revenues fell. China has 810 million workers, the US 145 million workers, unemployment in China is 3%, unemployment in the US is 8.5% In China urban wages rose 7.6% and rural wages rose over 15% whilst US wages fell in real terms by 2%. China is also the world's favourite place to invest.
|Obama bows to China|
As a result nations and internation bodies are calling for the end of the US dollar as the world's trade and reserve currency. Even McDonald's has recently issued bonds denominated in Yuan, Apple Computers are accepting payments in Yuan.
This is an election year and a weaker dollar gave huge rallies to stocks in 2009, and we are already seeing those huge rallies this year, based not on any fundamental change in the health of the economy but on the decline of the US dollar.
America is spinning that the Yuan is undervalued and should be increased, but as you should be able to see from the above this is absolute rubbish, it is the US which is driving down the value of the dollar into the gutter.
Every US worker gets paid 6.5 times as much as an equivalent Chinese worker, it is this difference which means that the price of US goods is inevitably higher than those produced in China.
So why does the US want China to raise the value of the Yuan? Because it will crush the value of the US dollar and allow the US to repay its otherwise unrepayable debts. Who has the majority of those debts... well China. A rising Yuan will also address China's number one problem, rising domestic inflation.
Of course they are not just going to tell you that... it's an election year after all. There plans will bankrupt nearly every US citizen who does not take steps to avoid the upcoming plunge in the value of savings, pensions and incomes.