The Little Book of the Shrinking Dollar: What You Can Do to Protect Your Money Now

Chuck Butler Goes for the Renminbi

The Chinese renminbi, Chuck informs us, has gained 27 percent versus the dollar since it dropped its peg to the dollar in July of 2005.

While 27 percent in almost seven years might not sound like a great investment, it’s a great start.

Chuck thinks that anyone who bought 7 years ago, got in on the ground floor of a currency that will—in the next 10 years—be backed by gold, and own the reserve currency of the world title. That’s a stunning statement worth considering. For the next five years, at least, he anticipates the Chinese will only allow a gradual appreciation of the renminbi. So you still have a shot.

To this we’ll add a list from Bill Bonner that puts the trajectory of China into perspective:

• Who’s number one in steel production? China.
• Who’s number one in mobile phones? Well, China again.
• Who’s number one in manufacturing output? That would be China, too.
• How about car sales? China.
• How about exports? China.
• Patents granted? China.
• Energy consumption? China.
• Fixed investment? China.

In our minds, that does say a lot about China’s rising influence on markets; we’ve been there, we’ve seen its empty malls, and we know it’s got some big problems to tackle, but it’s done plenty to get ahead. And they’ll do what they can to stay there.