A Chinese New Year has begun recently. We can expect a new are in Chinese history in this Year of a Dragon.
China will establish a new financial order - this is opinion of Philip Coggan, a journalist of The Economist, who claims that if the trends will not change China will be the strongest economy in 2020.
This growth of Chinese power can be already noticed and even if juan will not become world's main currency, many important changes will be spotted in world's financial order. One of most possible scenarios is establishing a new treaty similar to the one from 1944 in Bretton Woods. After this summit a new world's financial order for coming decades was established.
What is that order going to look like? According to Robert Zoellick of the World Bank quoted by Coggan, new system “should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values.”
We can doubt if American government would agree on such treaty and loose priviledges it has, but in author's opinion in this case another factor on which Americans haven't got any influence - their public debt held mostly by the Chinese.
source
This growth of Chinese power can be already noticed and even if juan will not become world's main currency, many important changes will be spotted in world's financial order. One of most possible scenarios is establishing a new treaty similar to the one from 1944 in Bretton Woods. After this summit a new world's financial order for coming decades was established.
What is that order going to look like? According to Robert Zoellick of the World Bank quoted by Coggan, new system “should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values.”
We can doubt if American government would agree on such treaty and loose priviledges it has, but in author's opinion in this case another factor on which Americans haven't got any influence - their public debt held mostly by the Chinese.
source
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