Homesteading Forum banner

1 - 13 of 13 Posts

·
Registered
Joined
·
5 Posts
Discussion Starter #1 (Edited)
Canada, China sign currency deal aimed at boosting trade

Allows direct business between Canadian dollar and Chinese yuan, cutting exchange costs

http://www.cbc.ca/news/politics/canada-china-sign-currency-deal-aimed-at-boosting-trade-1.2828707
[FONT=&quot]Canada and China have signed a reciprocal currency deal that's expected to dramatically boost exports.[/FONT]
[FONT=&quot]The hub will foster far easier trade between the Canadian dollar and the Chinese yuan, also known as the renminbi. It makes Canada the first country in the Americas to have a deal to trade in the renminbi.[/FONT]

[FONT=&quot]The signing of the deal was announced in Beijing today by Premier Li Keqiang and Prime Minister Stephen Harper.[/FONT]
[FONT=&quot]"It's a great boon for the Canadian business community, both importers and exporters, because they can now do business in China with the currency and not have to go through multiple financial exchange transactions," Stewart Beck, president and CEO of the Asia Pacific Foundation of Canada, told CBC News.[/FONT]
[FONT=&quot]"So the pundits are saying it could double maybe even triple the level of Canadian trade between Canada and China," he said.[/FONT]
[FONT=&quot]Authorized by China's central bank, the deal will allow direct business between the Canadian dollar and the Chinese yuan, cutting out the middle man — in most cases, the U.S. dollar.[/FONT]

[FONT=&quot]Personal Opinion: [/FONT]
:facepalm:It seems more and more countries are "getting it". They don't want to trade in "US Dollars"... seems it won't be long now.:frypan:
 

·
Banned
Joined
·
132 Posts
China is making these deals all around the world. They've made similar deals with Brazil, India, Russia, and Africa. I've heard it suggested that they are attempting to hedge against dollar collapse, and also possibly to insulate themselves against the risk of US sanctions.
 
  • Like
Reactions: terri9630

·
Registered
Joined
·
5 Posts
Discussion Starter #3
[FONT=Verdana,Arial]I had read a few months ago on Truth and Action, an article "23 Countries Now Abandoning US Dollar" they quoted in the article "23 countries (60% of the world’s GDP) are setting up swap lines which bypass the dollar and SWIFT, which is the dollar-based worldwide financial transaction system." http://www.truthandaction.org/23-cou...g-us-dollar-2/
:huh:What? They don't like our over manufactured fiat currency anymore??? Just can't understand why... :shrug:

4reals
[/FONT]
 

·
Premium Member
Joined
·
2,644 Posts
It is nice to see the head of the Canadian gov't actually trying to improve the Canadian economic situation (as he should) rather than worry about reelection of political cronies or himself.
 

·
Registered
Joined
·
1,769 Posts
The U.S. uses the swift system not only for international economic exchange but for political purposes, either as a country you do as we say or we cut you out of the system and ruin your trade settlement with other nations. We use it to bully other nations. So the Brics nations are looking to establish a new system and China wants to be a world reserve currency. Chinese business men are already openly talking about a gold back yuan. Experts like Eric Sprott are saying the gold is mostly gone from the west and has headed east. Not only are Asian governments buying but they are encouraging the people to do so. India has recently reversed it's negative stance on gold and purchases are now increasing there too. The world's nations want to be on the side of the winner, when we were going up they were with us, now that we are going down they are looking for a new buddy. China looks to them to be their new buddy.
 

·
Crazy Canuck
Joined
·
4,172 Posts
It is nice to see the head of the Canadian gov't actually trying to improve the Canadian economic situation (as he should) rather than worry about reelection of political cronies or himself.
The oil (Alberta, with Sask and NL) is the biggest economy in all of Canada right now, and it makes sense to deal in the best currency between Canada and China because the failure of the XL pipeline approval means the flow of oil will go west across the ocean and not down to the gulf.
 

·
Registered
Joined
·
4,163 Posts
The oil (Alberta, with Sask and NL) is the biggest economy in all of Canada right now, and it makes sense to deal in the best currency between Canada and China because the failure of the XL pipeline approval means the flow of oil will go west across the ocean and not down to the gulf.
Which also means the current flow of oil to the US would be potentially up for grabs to other countries
 

·
Registered
Joined
·
1,442 Posts
Which also means the current flow of oil to the US would be potentially up for grabs to other countries
No it wouldn't. The NAFTA deal has Canada locked in to providing USA with the current flow of oil and none of that can be discontinued and diverted to other countries. If Canada wants to sell oil and gas to other countries it has to come from product that is produced over and above what is already obligated to the USA.

The NAFTA “proportionality clause” states that Canada is obligated to make a certain proportion of Canada's total supply of oil and gas available for sale to the United States. The proportionality clause means that under NAFTA, Canada would have to provide oil and gas to the United States even if Canada is unable to meet its own energy requirements. Canada can't back down or discontinue providing oil to USA even if something happened to cause there to not be enough oil to provide Canada with enough oil for its own domestic use. USA has Canada bent over a barrel in that regard. No pun intended.
 

·
Premium Member
Joined
·
3,363 Posts
No it wouldn't. The NAFTA deal has Canada locked in to providing USA with the current flow of oil and none of that can be discontinued and diverted to other countries. If Canada wants to sell oil and gas to other countries it has to come from product that is produced over and above what is already obligated to the USA.

The NAFTA “proportionality clause” states that Canada is obligated to make a certain proportion of Canada's total supply of oil and gas available for sale to the United States. The proportionality clause means that under NAFTA, Canada would have to provide oil and gas to the United States even if Canada is unable to meet its own energy requirements. Canada can't back down or discontinue providing oil to USA even if something happened to cause there to not be enough oil to provide Canada with enough oil for its own domestic use. USA has Canada bent over a barrel in that regard. No pun intended.

I don't know why any one would agree to a deal like that. Family, or in this case Country should always come first. Only "extra" should be sold.
 

·
Premium Member
Joined
·
3,724 Posts
I don't know why any one would agree to a deal like that. Family, or in this case Country should always come first. Only "extra" should be sold.
Maybe NSA had some goods on him?
 

·
Registered
Joined
·
1,442 Posts
I don't know why any one would agree to a deal like that. Family, or in this case Country should always come first. Only "extra" should be sold.
I don't understand why Canada agreed to it either and I think it was a careless thing for Canada to do. America wanted Mexico to agree to a similar proportionality clause between America and Mexico but Mexico adamantly refused. Smart Mexico.
 

·
Crazy Canuck
Joined
·
4,172 Posts
Because back in 1994 we had a liberal as prime minister, and a frenchman to boot! In the last 50+ years the 2 french liberal prime ministers never did anything good to the prairie provinces but did a lot of damage to ensure that the provinces of Quebec and Ontario reaped all the benefits. Canada has 35 million people and only 4 million are in Alberta - that's counting the 1 m easterners that came to work in the only booming economy in the country.
Now we have a conservative prime minister, a westerner and he totally understands how Cretien and the other liberal PMs sold out Alberta and the oil sands.
 
1 - 13 of 13 Posts
Top