And Why the TPP and AEC Trade Agreements Offset the Negative Aspects
By JC Collins
Back in October of 2015 I wrote a post titled TPP and AEC – Parallel Trade Agreements. It presented the trade agreement aspect of the monetary transition and suggested that both agreements are intended to address the changes to the international trade model as the US dollar begins to share reserve responsibilities with the Chinese renminbi.
It also discussed another previous post from May of 2015 titled The Secret of the TPP – The Coming Interest Rate Increases and Dollar Depreciation. Both articles together lay the groundwork for understanding the short-term measures and long-term strategies which China and the international community as a whole, are implementing in order to capitalize on the forthcoming appreciation of the renminbi and depreciation of the USD. The negative aspects of these exchange rate changes are also considered within the developing framework of these agreements.
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