I want to begin by clarifying something I wrote in yesterday’s post. I shared a quote from Eleanor Clift on the McLaughlin Group, “The dollar is the indispensable currency,” she said. I added that, on this point, she is correct.
I should have added two words to that comment, “for now.”
The dollar right now is riding high and doing better than other major currencies. But that does not mean the dollar is really strong. In fact, just yesterday Singapore and China announced the start of direct currency trading, bypassing the US dollar, which has been volatile and is not backed by anything. It’s just paper and is held up by confidence and nothing else. Note the following from Channel News Asia.
“BEIJING: China will allow direct trading between its currency and the Singapore dollar from Tuesday (Oct 28), making it easier for companies here to do business with their Chinese counterparts.
The Sing dollar will be added to the China Foreign Exchange Trade System (CFETS) platform, which currently offers transactions between the yuan and 10 foreign currencies. The announcement came on Monday (Oct 27), after an agreement at the Joint Council for Bilateral Cooperation (JCBC) in Suzhou, co-chaired by Deputy Prime Minister Teo Chee Hean and Chinese Vice Premier Zhang Gaoli.
Previously, companies that wanted to convert a large amount of Sing dollars to renminbi (RMB) or vice versa had to do so via an intermediate currency such as the US dollar.
“This will lower foreign exchange transaction costs and encourage greater use of the two currencies in cross-border trade and investments,” the Monetary Authority of Singapore (MAS) said in a news release on Monday.
DPM Teo called this is a “major and significant” development which will reduce the cost of doing business and make it more convenient.”
Singapore is a major hub for the internationalization of the Chinese currency. Some predict China will overtake America as the number one economy next year. This means China can take on the burden of being a trading currency just as the US dollar has been.
I’ve been reading a novel by Brad Thor set in Afghanistan. The 2009 book is titled “The Apostle.” The author clearly knows the country well and I’ve learned a lot about Afghanistan from it. Frankly, the book is as close to the country as I want to get!
I would like to share two paragraphs with you. The subject is not Afghanistan. The main character is Harvath.
“Harvath just couldn’t understand the liberal mindset. He was convinced that they believed deeply in what they said and what they did; his only problem was that it so often flew in the face of reality. They continually focused their rage on their protectors rather than their enemy. They denigrated their country, believing it was the source of all evil in the world. The truth was, when it came to Islam, it had been violent since its inception. Its clearly stated goal was worldwide conquest. And while Harvath believed there were peaceful and moderate Muslims, he knew from studying the religion that there was no such thing as peaceful and moderate Islam.
“The entire religion was a mess and needed a complete gut-rehab. And though he had a good feeling his country’s new president would probably not agree with him, he also knew that until the politically correct crowd stopped making excuses for them and undercutting any motivation to reform their religion themselves, the majority of Muslims wouldn’t do anything . . . Islam had been Islam for fourteen hundred years and what it had been was violent.”
Which reminds me of the three teenage girls, all born in the USA and from the Denver area, who were detained in Frankfurt en route to Syria to fight with ISIS. All three were of Sudanese and Somali descent. It is not necessarily the case any more that second generations born in America become more American. It seems that, when it comes to Islam, assimilation doesn’t work any more.
This is certainly the case in Tower Hamlets, a rundown poverty stricken area of east London, profiled this morning on PBS’ Focus on Europe. Tower Hamlets has the UK’s highest percentage of Muslims, over 30%. They are mostly from Bangladesh and Somalia. A recent election there has led to accusations of corruption, including vote rigging. This is unheard of in British elections. Or was, until a significant percentage of Muslims took over an area and introduced their own brand of politics, just like home.
It may seem a big jump from ISIS to Downton Abbey but it’s appropriate at this point. The fifth series is already showing in the UK on ITV. It starts in the US on January 4th. Apparently, Lord Grantham is going to lose his dog in this series. The reason is quite simple – the dog is named Isis. Lord Grantham has had his dog for four seasons of the show, while the terrorist group is quite new. But viewers do not want to be reminded of terrorism when watching the series in their living rooms. Besides, Isis joined the family in 1912 and the series is now up to 1924. That’s about it for a Labrador’s lifespan. Ours only made it to five.