China Plans Global Role for Their Currency

Once again Wall Street is asleep and missing a major economic story coming out of China. Wall Street continues to fluff off China as a "bubble" economy. If Wall Street is looking for bubbles, they should look closer to home.

I see bubbles in Treasuries, the Dollar, tech stocks and financial stocks. Almost everything where the government and/or Wall Street has their greedy hands.

CHINESE CURRENCY

The big news out of China is that the Chinese have kick-started a plan to internationalize the yuan or renminbi. And it is likely to be a faster process than the sleepy-heads on Wall Street realize.

If the Chinese plan is successful, by 2012 as much as 50 percent of China's annual trade flows will be settled in their own currency, not the US dollar. This totals nearly $2 trillion!

Most of the trade flows where the Chinese currency will be used in settlement is with other Asian countries and with other emerging markets. These countries are China's major trading partners, not the US. Another fact which has escaped the notice of sleepy Wall Street.

Someone not investing in China today is making the same mistake "smart" European investors made in the late 1800s, when they fluffed off the emerging market called the United States as too risky and with poor business and working practices.

Yes, China still has lots of bumps and warts, but it is emerging as a global economic power very rapidly.

What's that sound I hear? Oh yeah, just Wall Street snoring in blissful ignorance.