Thursday, January 20, 2011

Yuan Appreciation

  As long as the Yuan appreciates, that is a guaranteed source of economic growth for China. If the Yuan appreciates 10 percent, the Chinese GDP would automatically grow 10 percent all other things being equal. Most people around the world have disassociated money from commodities. So they no longer believe that money should be inherently backed by anything.

 As long as the Arab Numerals that appear on that banking statement continues to grow, then they feel a sense of progress and reward.

  As for global acceptance of the Yuan. That is almost guaranteed. Investors, traders, and ordinary people are more than willing to accept Yuan as a global currency unit.

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