& The Global Political Situation Today. ( OMG FACTS Nowhere in the Humpty Dumpty rhyme
does it mention he is an egg. )
Then as a Follow on Sidelining of The $ by Kosuke TAKAHASHI(TAP – Apologies for the messy copy. Google’s not behaving this morning.
Comparison of Japanese, Chinese and American currency.
Bilateral trade rose 14.3% year-on-year to reach US$344.9 billion in 2011, hitting a new record for the second consecutive year. China accounts for about 20% of Japan’s world trade value. Around 50% to 60% of that is being settled in dollars, with less than 1% of it settled in yuan. One Chinese news outlet has estimated direct yen-yuan transactions will realize $3 billion in cost savings.
Should China shift to a limited floating exchange rate system, the yuan will likely appreciate against major currencies such as the dollar. Japan’s business with China expanding and the growing presence of the yuan in Japan’s international trade will push down the yen’s effective exchange rate against major currencies. Annual trade between China and Japan more than doubled in the past 10 years, reaching $346.6 billion in 2011. In the first four months of 2012, Japanese foreign direct investment in China rose by 16% to $2.7 billion from one year earlier.