Real news: China - Russia alliance to trump U.S. Watch

you_decide
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You may have heard in the news that China's ever so slight devaluation of its currency, the Renminbi has sent shock waves all over the world markets. This is because the relationship is no longer that of then Bretton Woods (look up if unfamiliar and educate yourself with this Basic fact the baby boomers teaching you don't know) days I.e. Superpower - player, the relationship is now superpower - superpower.

Russia and China are forming a union that is in their terms a challenge to the U.S. Powerbase in economic, monetary and military terms.

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Potally_Tissed
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Well that wasn't very coherent. Could you try again, but this time with structure and grammar?
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Xotol
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Damn, I thought this was about Russia and China making an alliance to get Trump into power. Very disappointed this is about something else
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ActuallyIDo
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Well, we're f**ked because they will come after us next..
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ChaoticButterfly
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(Original post by you_decide)
You may have heard in the news that China's ever so slight devaluation of its currency, the Renminbi has sent shock waves all over the world markets. This is because the relationship is no longer that of then Bretton Woods (look up if unfamiliar and educate yourself with this Basic fact the baby boomers teaching you don't know) days I.e. Superpower - player, the relationship is now superpower - superpower.

Russia and China are forming a union that is in their terms a challenge to the U.S. Powerbase in economic, monetary and military terms.

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Didn't Nixon break the Bretton Woods thing? That was basically America doing currency wars and they couldn't devalue their money (or something) with it being tied to gold so they stop tying the dollar to gold. Anyway it happened in the 60s :confused:
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you_decide
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(Original post by ActuallyIDo)


Well, we're f**ked because they will come after us next..
What makes you believe that they want to come after you? Where does this come from ?


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you_decide
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(Original post by ChaoticButterfly)
Didn't Nixon break the Bretton Woods thing? That was basically America doing currency wars and they couldn't devalue their money (or something) with it being tied to gold so they stop tying the dollar to gold. Anyway it happened in the 60s :confused:
No Bretton Woods was the currency arrangement agreed after the Second World War basically based on the assumption of a dollar reserve currency.

I believe it was in 1971 that Nixon took America off the gold standard as a "temporary measure" (which was never lifted.)




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you_decide
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(Original post by Potally_Tissed)
Well that wasn't very coherent. Could you try again, but this time with structure and grammar?
That's why I don't have much academic kudos.

I don't want become academic because it seems to make people blind to the reality of the present and live in a reality from 20 or 30 years ago.

I don't need to make fancy letters with a feather quill pen because other people do it for me.
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Aj12
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You realize the devaluation is a sign of economic weakness, not strength right China's economy is in trouble right now, the government t is actually trying to stimulate it.


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you_decide
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(Original post by Aj12)
You realize the devaluation is a sign of economic weakness, not strength right China's economy is in trouble right now, the government t is actually trying to stimulate it.


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True but in terms of the current economic construct cyclical economic crisis is a part of the design therefore not a sign of enduring weakness.



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Aj12
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(Original post by you_decide)
True but in terms of the current economic construct cyclical economic crisis is a part of the design therefore not a sign of enduring weakness.



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I'd disagree. This recent devaluation is to make their exports more attractive to the US market, rather than developing domestic demand. China is making itself more dependent on the US and in the long run that is not a good thing. I don't see how current events can be spun into some attempt to over take the US. Beyond that there are other structural weakness's we can get into to show how flimsy the Chinese economy is.

No clue how you have tied Russia into this but they are China are certainly not as close as the anti-American lot like to make it appear.
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Rakas21
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Can't say i care much about Russia whether part of such an alliance or not. It's GDP is not much larger than ours even at PPP, it's military is nothing special and its financial clout is minimal (it's basically an energy company with an army for the moment). China and India are the only BRIC nations worth caring about in that sense.

China is correctly taking its place as a superpower which does mark a departure from the last 20-25 years but right now it's chosen to increase exports which are primarily to the US so i'm not sure this devaluation means anything significant for the moment. The BRIC bank is more significant but it remains to be seen whether its a competitor to western institutions or a danger that signifies potential conflict with the US, given their reaction is seems that China is simply competing for the moment rather than stepping on their toes so to speak.
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Davij038
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NATO even in its current state would also flatten both of them
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MatureStudent36
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There seems to be a pro Putin sock puppet posting on TSR.

One has to ask the question of why would China go into partnership with a failed state?
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you_decide
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(Original post by Aj12)
I'd disagree. This recent devaluation is to make their exports more attractive to the US market, rather than developing domestic demand. China is making itself more dependent on the US and in the long run that is not a good thing. I don't see how current events can be spun into some attempt to over take the US. Beyond that there are other structural weakness's we can get into to show how flimsy the Chinese economy is.

No clue how you have tied Russia into this but they are China are certainly not as close as the anti-American lot like to make it appear.
Yes of course the devaluation is to boost exports, with China being China they have an aggressive export driven currency policy. This is a given.

The point is that China's small devaluation the other day has massive impact of global financial markets particularly in the U.S. This impact would not be caused by say Morocco devaluing its Dirham. The point is that China is a superpower now. A big player, on a par with world reserve current status.

I've tried Russia in there because there are moves amongst the BRICS to form their own block to rival the "allied" military, financial and trading block.




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Aj12
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(Original post by you_decide)
Yes of course the devaluation is to boost exports, with China being China they have an aggressive export driven currency policy. This is a given.

The point is that China's small devaluation the other day has massive impact of global financial markets particularly in the U.S. This impact would not be caused by say Morocco devaluing its Dirham. The point is that China is a superpower now. A big player, on a par with world reserve current status.

I've tried Russia in there because there are moves amongst the BRICS to form their own block to rival the "allied" military, financial and trading block.




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Greece and Saudi Arabia have both caused huge economic reverberations, would you describe them as superpowers? Lots of things can have a huge global economic impact, that is the nature of the global economy. That does not automatically make a country a superpower.

China does not have a global reserve currency and it cannot until it's currency is completely tradeable . Clearly it is a big player, however it is not a superpower. That requires a dominance of military, cultural and economic factors. China does not have all three.

Frankly there are only two powers in the BRICS worth anything and that is China and to some extent India. The others are so mired in problems of their own making they have little chance of becoming global powers. Hell South Africa is only in there because of some clever photo op positioning by Zuma. Nigeria has more of a claim to that spot.

I really don't understand what you've tried to argue through this thread? China is a big power, yes. But the currency devaluation is not some announcement that now China is the new America.
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you_decide
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(Original post by Aj12)
Greece and Saudi Arabia have both caused huge economic reverberations, would you describe them as superpowers? Lots of things can have a huge global economic impact, that is the nature of the global economy. That does not automatically make a country a superpower.

China does not have a global reserve currency and it cannot until it's currency is completely tradeable . Clearly it is a big player, however it is not a superpower. That requires a dominance of military, cultural and economic factors. China does not have all three.

Frankly there are only two powers in the BRICS worth anything and that is China and to some extent India. The others are so mired in problems of their own making they have little chance of becoming global powers. Hell South Africa is only in there because of some clever photo op positioning by Zuma. Nigeria has more of a claim to that spot.

I really don't understand what you've tried to argue through this thread? China is a big power, yes. But the currency devaluation is not some announcement that now China is the new America.
Yes you are correct that minor situations can have major impact for example Cyprus bail-ins. It was economically inconsequential but the principle of raising bank depositors money to fund shortfalls was established and the impact was due to establishing the principle.

However, this is not the case for China. The scale is sufficiently large. A number of people holding U.S. Dollars may realise that they are at risk due to the indebtedness of the nation and there is the real possibility that they may exchange those dollars. China is the largest holder of dollars in government securities and it is slowly existing from the dollar by funding African projects and buying gold with these dollars.

So you could say that the Renminbi is heading towards a fully gold backed currency, traditionally the vehicle used as a reserve currency.

China also has a solid trading base whereas the U.S. Is mostly based on military supremacy, internal ideology and monetary policy. Production is being offshored.


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