Washington Post & Economist-China, Asian Tensions, US Dollar

Washington Post Graphic - Chinese Air Defense Identification Zone

Source: Washington Post

The July 7, 2014 Washington Post featured an excellent article – ‘China’s Rise and Asian Tensions Send U.S. Relations into Downward Spiral’ by journalist Simon Denyer.  The article highlights “China’s military rise, and its increasingly assertive claims to sovereignty”.

The narrative in Washington DC is “that China is intent on pushing its territorial claims through the threat of military force and that it ultimately wants to push the United States out of Asia.”

The article belies an equally significant battle that is taking place in the world of finance – the rise of the Renminbi and the challenge to the US Dollar as the world’s reserve currency (reference:  Financial Times – Renminbi Use Surges in Home of US Dollar).

In Washington DC, one thing that our leaders seem to agree, on both sides of the aisle, is that deficit spending is not their concern, or alternatively, a valid concern to our nation’s security or longevity.  Each of which may be true, until investors have an alternative to the US Dollar.

Picture of the Economist LogoIn late June, the Economist wrote of the ‘Yuawn’, a tongue-in-cheek play on the ‘Yuan’.

Several milestones that are worth staying abreast:

  • “China has gone from non-existantance” in the bond market to “to a dozen issuances in a month”.
  • “The Yuan is the second most used currency in the world for trade finance”.
  • “The Yuan is the seventh most used currency in international payments”, up from 20th place in 2012.

When and if the fulcrum shifts to the Yuan being a viable investment currency vs. the US Dollar, the United States and the world will experience an even more aggressive foreign policy stage.  The stakes are high – the American Experiment that Alexis de Toqueville wrote of….the world’s greatest melting pot.

Picture of the Korean War Memorial in Washington DC and Freedom is Not Free

The inscription on the Korean War Memorial in Washington DC reads “Freedom is Not Free”.

As a company that specializes in Digital Advocacy in Washington DC, it is time that our leaders come together to maintain the solvency of our democracy for future generations.  After walking through Arlington Cemetary this recent Independence Day, one is keenly reminded that ‘freedom is not free’.  Our heroes, living and past, who have secured our enduring freedom, deserve better than to have this generation lose America to the soft-war, won by lack of fiscal restraint.

To read ‘China’s Rise and Asian Tensions Send U.S. Relations into Downward Spiral’ , on the Washington Post’s web site, click here.

To read ‘Yuawn’ on the Economist’s web site, click here.

By Nick Mavrick

You can find Nick Mavrick on Google+

Intelligent Response specializes in operationalizing Predictive Analytics and Digital Advocacy projects from start to finish in Washington DC.

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