Sep 05, 2012

In the years since the global economic collapse of 2008, China has been steadily making yuan trade agreement with other countries. So far China has signed trade agreements with more than 17 countries, including Japan, Singapore, and Australia. Now, China has just signed a trade agreement with Taiwan. Exports make up 2/3 of Taiwan’s nearly half a trillion dollar economy, with half of their exports going to China.

With each new trade agreement, more US dollars are taken out of international trade. Ever since 2008, China has been reportedly concerned that their consierable holding of U.S. dollars and debt will decline in value, as the U.S. government has done nothing but borrow and spend money they don’t have at an accelerated rate.

Unless the US government gets its act together soon, the dollar will enventually go the way of Argentina’s currency, with runaway inflation.

Let’s hope and pray that they figure it out soon, before we see the day that a loaf of bread costs $19.99.