I have previously had the idea that nations such as China who currently hold U.S. dollars as a reserve currency could simple convert them to North American continental currency by fiat. In this new system, national money cant be held as reserve currency because national money is money, not currency. This conversion by government fiat could establish the initial continental currency supplies, at least for the continents who contain the nations whose monies are currently favored as reserve currencies. Chinas money/currency has two names, yuan and renminbi. Renminbi is the name of their money in general and yuan is its basic unit, analogous to the U.S. dollar. I propose that renminbi now be used for the continental currency of Chinas continent and yuan be used for Chinas national money. I also propose that the name for Chinas continent, which includes Mongolia and North Korea, be called Sina and the Sinese continent. The ancient Greek word for China was Sinai, and the Arabic word for it is Sin. China fought two Sino-Japanese Wars with Japan. We need a name for the continent that is different from China and Chinese because these are names of the nation of China, not a continent. If currency can only be used in intra-continental business-producer supply chains, and China converts all its reserve-currency U.S. dollars into North American nameros, it doesnt have much use for this money inside its own continent. Renminbi would be used by business-producers on the Sinese continent. Ive included a link to an article titled Chinese Investment in U.S. Doubles to $14 Billion in 2013. From the Wikipedia page Foreign exchange reserves of the Peoples Republic of China: The Foreign exchange reserves of the Peoples Republic of China are mainly composed of US dollar in the forms of US government bonds and institutional bonds, and excludes reserves held by Hong Kong and Macau. As of the end of 2012, the reserve holds $3.3 trillion,[1] making it the highest foreign exchange reserve in the world and far exceeded holdings of the next largest holder, Japan (~$1 trillion). The reserve is governed by State Administration of Foreign Exchange and Peoples Bank of China. An estimated two-thirds of these reserves are held in dollar-denominated assets whilst it is predicted that a quarter of the reserves are euro-denominated. US dollar asset accounts make up a large proportion of China’s foreign exchange reserves, and China does not have diversified channels to preserve the value of these reserves. The book value of these assets fell significantly after the year 2000 due to a depreciation of the US dollar. Analysts commented that the value fell by roughly $20 billion in 2003, and in the first half of 2004 by roughly $40 billion. So, China has $2 trillion U.S. dollars in various forms and these assets are depreciating over time because of the Feds excessive money printing. China should convert these U.S. dollars to North American nameros by fiat and use this currency to invest in producer businesses in the United States (or anywhere in North America). State governments in the U.S. could accept nameros as payment of state taxes. It just so happens that the current president of China, Xi Jinping, visited the town of Muscatine in my state Iowa in 1985 as part of a Chinese delegation to study American agriculture. He visited Muscatine again in 2012, a year before he became president. Looks like a great opportunity here, fellow Iowans! Carpe diem! How would the Iowa state government spend the nameros it takes in as tax revenue? It would use them to pay production companies for the materials needed to build and maintain roads, bridges, and other physical infrastructure. It could not use nameros to pay state government employees. Most of Chinas U.S. dollar reserves are in the form of U.S. government debt. If China converts this dollar-denominated debt into namero currency, it essentially forgives the U.S. of this debt. Debt goes bye-bye. Debt gets sucked out of the system. This can be done with all the national money that is currently being held as reserve currency. But isnt it unfair to wipe out U.S. debt by the wave of a money-to-currency-converting wand? Some of the dollars held by China should have been destroyed when it converted dollars to yuan to pay the Chinese workers who made products exported to the U.S.. And the U.S. has essentially been working for free as the Global Cop, which has provided stability to the global economy during economic globalization phase. And no one forced nations to buy and hold U.S. government debt as a reserve currency. They could have purchased the debt of other nations besides the U.S.. They preferred U.S. debt because the U.S. has had a good track record in paying off its debts. It still has a triple AAA rating from two of the three major U.S.-based credit rating agencies. But will the U.S. be able to pay off its debts in the future? It is becoming less likely with each passing day. So China should convert its U.S. government debt to nameros and invest them in producer businesses in North America, just to be safe. Or it could convert nameros into other continental currencies or national monies. We need to set up the new global government and money system before these conversions and transactions can occur. businessweek/articles/2014-01-08/chinese-investment-into-u-dot-s-dot-doubles-to-14-billion-in-2013 washingtonpost/blogs/wonkblog/wp/2013/12/03/this-one-number-explains-how-china-is-taking-over-the-world/ cnbc/id/101450365
Posted on: Tue, 11 Mar 2014 21:57:05 +0000