Yuan Rising
http://moneymorning.com/about-us/
This time around (sic: 2010-) expectation is that gold and copper and the resource-rich countries of Canada, Brazil and Australia, will be winners from the change in the yuan.
A revaluation of the yuan probably means that the currency’s hard peg to the dollar is coming to an end, and the yuan will be allowed to appreciate against a basket of other world currencies - something much of the world views as a positive development.
If the yuan is allowed to rise in value, U.S. and European industrial manufacturers may find it just as cheap to keep factory jobs at home. China has wanted to avoid this because it believes its stability depends on keeping those jobs for itself. It has placated the West by spending the money received from those manufactured goods on the sovereign debt of U.S. and European countries.
So there’s been this bizarre and ultimately destructive loop: We can keep borrowing from China so long as we keep giving them our jobs. It’s a Faustian bargain.
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"A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship.
“The average age of the worlds greatest civilizations from the beginning of history, has been about 200 years. During those 200 years, these nations always progressed through the following sequence:
1./ From bondage to spiritual faith;
2./ From spiritual faith to great courage;
3./ From courage to liberty;
4./ From liberty to abundance;
5./ From abundance to complacency;
6./ From complacency to apathy;
7./ From apathy to dependence;
8./ From dependence back into bondage."
—Quote often attributed to Alexander Tyler but that’s questionable. Probably a combination of quotes but whoever said it first was a genius.
