Adonis Diaries

China Yuan currency is the barometer for War and Peace

Currency exchange rate for a State depends intrinsically on the level of confidence we feel that this State enjoys in political stability, economic sustainability and central control on financial fluctuation, transactions and practices.

The lower the confidence, the lower the value of the currency rate.

When China stabilizes the Yuan to an overvalued level currency in reference to the $ and Euro, it means China has struck a deal with the USA and EU so that these powerful Western nations desist from frequent pre-emptive wars and destabilizing strategy in the less developed States.

When the US and Europe carry out their political propaganda demanding China to devalue the Yuan, they are lying through their teeth.

In fact, the US will never dare launch on such confrontation without a prior deal with China. The US and the EU dream is for China to keep its currency very strong to level off the world trade market share.

These propaganda campaign is to delude the people that the US is the land of fair trade and free market: Totally Not the case in this global economy.

When China devalue the Yuan (controlled by the central government and not exchanged in the stock market), it means China is frustrated that the western States defaulted and reneged on their deal. The deal has faltered and China has decided to challenge these countries in the places and positions they confronted her.

Since 2011, the US and Europe have been launching destabilizing policies in the Middle-East, Iran, North Africa, many other African states and a few Latin American countries.

China decided to devalue the Yuan in order to acquire more of the world market share in reaction to the sustained positions of the US and Europe toward Syria, Iraq and Iran.

The forceful role of Russia in Syria is a direct wish of China to put an end to the civil wars in Syria and Iraq. Actually, Russia is the undertaker or contractor carrying out the strategy of retaliation and dipping heavily in the deep pocket of China.

The NATO crying wolf is but cry of despair and total frustration for its failure to bring stability to this rich and volatile region in the Middle-East as China demanded from them.

The latest news of the signing of the Pacific Ream trade treaty between that the US and 11 other States does not include China.

Hillary Clinton expressed her displeasure that the treaty does not mention any currency stabilization among the signatories. Fact is the US is not prepared to shoulder the burden of financially coming to the rescue of these States as they link their currencies to the dollar. The US is not ready to challenge the supremacy of China in the world market of export.

Hillary declaration is meant for the internal political consumption during this election period. Politicians drum up the emotions of the common people for a stronger stand rather than explaining the reality of the situation and conditions.

The moment the US decides to force the hands of those 11 States to stabilize the rate of their currencies relative to the $ means that the US is willing to challenge China upfront.

Likewise, the moment China decides to trade its currency in the stock market, it means China is ready for an all-out war with the US.

With the Yuan being devalued sharply, the exporting power of most industrial countries such as German and Japan will shrink and progress at a snail pace.

All kinds of embargo, sanctions and barriers on China will not affect it significantly. China can rely on its vast population, the natural extension of markets in Russia, Central Asia, Iran, Pakistan, India, Viet Nam and south East Asia.

A nastier financial catastrophe will set in for the duration. And China will be relatively immune to world havoc.

China manufactures and produces all kinds of good and services that are readily exchangeable with other goods and services, anytime, anywhere and electronically. The Yuan is just a convenient mean to facilitate exchange in China vast internal market.

Currency exchange rate will be mainly dependent on the Yuan value: Like it, hate it or abhor it.