A fascinating editorial from a Chinese Communist Economist on the US Dollar

[BlueStateSaint]

I found this on SurvivalBlog, and figured that it should be posted here . . .

A fascinating editorial from a Chinese Communist Economist on the US Dollar

by John Galt
 June 5, 2012 23:00 ET
 
I think this might be a good time for Americans to start paying more attention to not just Europe, but what is happening in the Far East. The following editorial is from China Daily, the Communist Chinese Party newspaper for foreign consumption.

Escaping the dollar trap
 
By Zhang Monan (China Daily)
 
Direct yen-yuan trading is another step in China’s bid to extricate itself from excessive dependence on US currency

As part of efforts to boost bilateral trade and investment, China and Japan started direct trading of their currencies in Shanghai and Tokyo on June 1.
 
Allowing the yuan to directly trade with another major currency other than the US dollar will help China in its efforts to acquire a wider trading and financial presence.
 
The biggest lesson China has learned from the global financial crisis is that it should push for reforms of the international monetary system and accelerate the internationalization of the yuan. It has also become increasingly evident that the dollar-dominated global monetary system has not only interrupted the world’s normal economic growth mechanism, but also caused global economic and financial chaos. The “dollar trap” can be found in every corner of the world.

The rest is here:  http://johngaltfla.com/wordpress/2012/06/05/a-fascinating-editorial-from-a-chinese-communist-economist-on-the-us-dollar/

If it's in the official newspaper of the Communist Party, it's probably happening soon.

[formerlurker]

China has been whining for this for as long as they have been relevant.   

The biggest lesson China has learned from the global financial crisis is that it should push for reforms of the international monetary system and accelerate the internationalization of the yuan. It has also become increasingly evident that the dollar-dominated global monetary system has not only interrupted the world’s normal economic growth mechanism, but also caused global economic and financial chaos. The “dollar trap” can be found in every corner of the world.

China doesn't learn anything from lessons of history. 

[formerlurker]

China is in trouble - has been for a while.   When Communist countries start to implode they pull back on transparency (the beauty of controlling everything).   

Between the Lines in China

Derek Scissors, Ph.D.

May 14, 2012 at 3:00 pm

There is a lot going on in China today, this week, this month, this year. There’s internal Chinese politics. There’s U.S.–China politics. There’s concern about the Chinese economy. There are hints of possible economic reform.

Amid all the shouting, something is happening low on the radar that could turn out to be vitally important: The PRC is nationalizing business auditing. This is potentially a critical step backward, away from a China that can truly be a global economic leader.

There’s so much speculation concerning China, it’s almost painful to add more. But if the PRC does require foreign companies to give up control of auditing firms to local partners this year, that’s about far more than grabbing profits in the sector. It’s about more than the lack of Chinese cooperation with American inquiries into securities fraud.

Most people have a vague impression that China is normalizing in economics and business—that its commercial practices are moving toward global standards, its currency is internationalizing, it’s becoming more open. At the most basic level, however, it’s not clear that’s true.

Transparency is the foundation of modern economics. No system is entirely transparent, but some systems require participants to come clean, while others intimidate information providers into silence.

Obviously this is not 40 years ago, when the PRC was an entirely closed society. But it’s worse than it was 10 years ago. On the whole, China doesn’t appear to have made much progress, for example on the quality of published economic statistics.

http://blog.heritage.org/2012/05/14/between-the-lines-in-china/

Links imbedded throughout the article.   

[Boojatta]

It has also become increasingly evident that the dollar-dominated global monetary system has not only interrupted the world’s normal economic growth mechanism, but also caused global economic and financial chaos.

What did the global monetary system do that interrupted the world's normal economic growth mechanism?  Did the global monetary system suddenly become dominated by the dollar?

Did the author intend to merely describe the global monetary system as "dollar-dominated" and not intend to directly link use of the dollar to a pause in economic growth?

Did the author intend to say that the global monetary system interrupted the world's normal economic growth mechanism?