“World War III” begins at G20 summit

Leaders of the 20 largest economies the world meet in Seoul in the G20 summit on November 11, the day that Nostradamus had predicted it would break a World War III. The premises of such a conflict exists, but not militarily, but economically, the United States and China as protagonists.

The government announced just before G20 trade surplus of 27.15 billion dollars recorded in October, slightly higher than 16.9 billion dollars in September and close to a record 30 billion U.S. dollars in July. This while the U.S. is expected to announce a deficit of 45 billion dollars for the month of October, according to The Guardian.

Enormous amounts U.S. goods flooded in China are due to lose their undervaluation of the yuan by Beijing government to encourage exports. Some critics estimate that the yuan is at least 40% stronger. Congressmen in Washington have been pressing for the imposition of additional tariffs on exports to governments that manipulate the value of the currency to encourage exports, and President Barack Obama has repeatedly called for the regime in Beijing to assess the yuan.

War broke out after the failure of monetary opportunity to rethink the global financial system, the G20 summit in London in 2009, using the G20 and the IMF instruments. Since then the world was marked by financial crises, including the European Union and international summits has resulted in failures, such as global warming, held in Copenhagen.

Yuan higher than the dollar reverses

With an economy that knows no crisis, China can afford to not succumb to U.S. pressure, while Washington wants to revitalize the current financial system, which is based on the rule of the dollar. Designed at Bretton Woods in 1944, the system determines that the dollar is tied to the gold standard, while other currencies are tied to the dollar. Were significant benefits for the American economy and were potential by renunciation, in 1971 the gold standard. That was when U.S. Secretary of Treasury John Connally, told EU partners that “the dollar is our currency and your problem.”
But economic crisis has weakened the U.S. dollar and the size of financial incentives
is reduced due to pressure countries that have large reserves in devalued dollars and do not want them (China, Japan, the major European economies). However, the Federal Reserve announced that it will print 600 billion dollars to be injected into the economy weakened.

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Posted by S.Keslar on Nov 11 2010. Filed under Featured News, Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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