You Can Now Buy Chinese Yuan in New York

Source

Run– don’t walk– to branches of the Bank of China in New York– to get your first chance to buy $4000 yuan each day– and profit from the almost certain rise of the Chinese currency to the dollar over the next several years.

Although it maybe true that the chinese want the yuan to be widely used internationally (there's nothing wrong with that), but I believe this move is mostly because of inflationary pressure inside china itself and the dollar dependency factor. Since another benefit of this move of course, china won't have to rely on the dollar so much anymore.

Three things you need to remember:

1. Global food prices is rising, this creates inflationary pressure to countries that import their food, including china.
2. Quantitative easing carried out by the US Federal Reserve made the dollar less appetizing in the eyes of other countries.
3. American old jobs will never return. Either americans create new kinds of jobs or expect a miracle.

So does that make the Yuan a safe investment? I could see it would be more attractive to investors over the dollar, but in the event of the collapse of the dollar, would a Yuan be any better than gold or silver?

reply to post by asperetty


I assume it would be the same as investing in the Euro; it has it's ups and downs.. Although I wouldn't ever place paper money over precious metals...

reply to post by igigi


Yes agreed, never take paper money, notes, or bonds over precious metals. As the economy worsens the only thing more valuable than metals is land and livestock.

Originally posted by asperetty
So does that make the Yuan a safe investment? I could see it would be more attractive to investors over the dollar, but in the event of the collapse of the dollar, would a Yuan be any better than gold or silver?

I can't say that it's a safe investment. But it is understandable why countries are not crazy about the gold standard or silver, because not all countries have a lot of gold mines. It's not a good indicator of countries' productivity. You can have a lot of gold mines but not producing anything else, so suddenly you want other countries to respect you know? The answer is no. Gold is like oil, but oil makes more sense because you actually have to use it.