THE AMERICAN DOLLAR IS LOSING CLOUT, REPLACED BY THE CHINESE CURRENCY-NO WONDER, WOULD YOU WANT TO OWN THE CURRENCY OF THE BIGGEST DEBTOR NATION???

Put yourself in the shoes of a lender, like your bank for instance. If you provided your bank with your financial statement that showed annual operating shortfalls
(deficits) of a TRILLION dollars or more for as many years as can be counted in the future with no end in sight-would you lend money to such a borrower?

The simple answer is NO!

There is no way any prudent lender would under any circumstances consider extending loans to a borrower with no positive cash flow and none predicted in the next decade! Yet our FEDERAL government wants lenders to keep lending money to it under these dire and unsustainable circumstances!

Furthermore, the U.S. TREASURY wants the rest of the world to use the US DOLLAR as the currency of global financial settlements when it is now the biggest debtor nation in the world. In fact, its debt is greater than the debt of pretty much the rest of the world nations combined!

The dollar's slide has started due to nothing else other than the normal workings of the markets...stronger valued or perceived currencies will simply move in due to the natural tendencies of currency risks and trading spreads that will show which currency is the strongest.

Over the next 20 years, it is inevitable that the gigantic population of China and even India will be moving into the same consumer driven place as the USA did after the 1950's. With its 2.3 billion potential consumers those two countries will be the future driving force of the world economy.

Unfortunately for the USA, it is not likely that those new consumers with their relatively weak per-capita income will be asking for consumer products made in the USA by high cost labor. They will instead be buying locally manufactured consumer goods of every type ( just as Americans are buying now).

It is amazing how the made in China label is on more and more products.

I noticed that every single auto part that I have purchased in the last year in the aftermarket for auto parts, is MADE IN CHINA, and for every car.

If you need an auto part, whatever it is, ranging from the lowest price BMW or Mercedes key chain, right down to alternators, starters and generators and every conceivable electrical part, they are all of Chinese manufacture...at least the lowest priced ones ( and often of lower component quality). Many of these are manufactured by Chinese subsidiaries of Japanese and Korean companies which used to be the lowest priced suppliers previously for all these components.

There is no going back, we can not manufacture these parts at a lower cost.

The World Bank issued its first yuan-denominated bond in January 2011, raising $76 million and trying to promote the use of the Chinese currency in international markets at a time when China's stake in the institution is about to increase.

The World Bank said in a statement on Wednesday the International Bank for Reconstruction and Development, its low-interest lending arm, had priced the two-year paper at 0.95 percent, representing the lowest yield so far on same-maturity dim sum bonds -- the nickname for yuan-denominated bonds issued in Hong Kong.

The offshore yuan market in Hong Kong has seen explosive growth in less than a year, with renminbi deposits in the former British colony surging more than 150 percent in the six months to October 2010. Global companies and institutions such as the Asian Development Bank, McDonald's Corp and Caterpillar have all issued yuan bonds.

The World Bank's 500 million yuan bond issue arrived when China's shareholding in the World Bank is about to increase, potentially making China the third-largest stakeholder in the lender after the United States and Japan.

"This is a landmark transaction for the World Bank as it is the first World Bank issuance in RMB, and signals the strong interest of the World Bank in supporting the development of the RMB market," Doris Herrera-Pol, Global Head of Capital Markets at the World Bank, said in a statement.

"It is a privilege for us to have this opportunity that establishes the institution as a premier issuer in the fastest growing capital market in the world."

HSBC was the lead manager for the deal, an international bank that has had a strong presence in China and its growing economy.

If one was to predict what currency one should own to not lose value, it should be the Chinese yuan, not the US Dollar. One can benefit in its steady value and predictable growth of the spread against the US Dollar..buy the yuan sell the dollar to make money, it's a sure bet.