Money Week's Simon Wilson and I agree on the value of the Chinese renminbi (or 'yuan') in global currency markets. In my opinion the Chinese renminbi (or 'yuan') is the safest investment in the world today. As for sizeable gains, I believe they too can be realized providing you have the staying power and patience to wait until China's government removes the peg to the dollar and lets the renminbi / yuan free float.
Wilson reported on March 12, 2010: "China saw a 46% surge in exports in the year to February, lending fresh weight to complaints that its currency is undervalued."
Several economists predict, including 'Doctor Doom' Nouriel Roubini and Goldman Sachs' chief economist Jim O'Neill, that China is set to relax or remove the renminbi's unofficial dollar peg. This has been in place since July 2008.
As the Money Week reporter wrote: "Most analysts agree it undervalues the renminbi (or 'yuan') by around 25%-40%. Currency traders got excited last weekend when the governor of the People's Bank of China, Zhou Xiaochuan, hinted that a revaluation – or least appreciation – was on the way. Zhou said the currency peg was a 'temporary' policy for dealing with the financial crisis."
Given the fact the United States is in over its head with $13 trillion in debt, between 60-70% of national GDP (Gross Domestic Product) being used to service its debt and the reality that China is the biggest holder / banker financing U.S. debt (presently around $1 trillion) ...it is a no brainer that China holds the keys to the United States economic future.
What that says for China's renminbi / yuan is great stability and upward mobility, meaning it is only going to go up baby. Whether it happens now or later, it assuredly will happen. The greater concern for U.S. citizens seeking to protect your savings is to realize that the dollar is bound to go down and lose value rapidly when the artificial governmental bursts of stimulus stop - which they eventually will.
To safeguard your cash and invest in China's renminbi / yuan go here http://tinyurl.com/24llu22 a fantastic, inexpensive and easy to use online vehicle for stocks, bonds and currency trading. They even give a free trial to get familiar and acquainted with its user friendly and safe system to secure and enlarge your investment.
Paul F Davis - Global Properties Specialist, Debt Arbitrator for financial freedom, Author, International Speaker and Executive Consultant for Global Business Success
info @ PaulFDavis.com