If China removes the restriction from the yuan currency peg to the U.S. dollar, then it's lights out for the U.S. economy. It is already failing, obviously, but that would be the final fatal blow. Meanwhile, Russia, Norway, and OPEC are drowning in U.S. dollars.
My favorite recent quote from Kunstler: "...the world's 'reserve currency' becomes the world's reserve toilet paper." LOVE IT!

That's a big if, though. China has to be very careful about letting its currency float. It's not going to happen anytime soon.

China has amassed $1.7 trillion (Euro 1.2 trillion) in cash as a result of the peg. Largest most powerful army and navy in the world. The rich and the powerful all make a pilgrimage to China to show their respect. Huge influence in Africa, Latin America, most of North America, Persia, North Korea, Pakistan. Expanding influence in the Middle East.

Neighbors Vietnam, Thailand, Russia, India, Japan cowed and subdued.
Why let the Yuan float?

Navy???

Their submarines cannot be detected by the American, Russian or any other tin can Navy in this world. And they proved it recently against the USS Kitty Hawk.

chinese subs undetectable?

huh?

if by navy you mean a flotilla of wooden junks- then yes, certainly. 'paper' navy is a more apt term.

boy we are in for interesting times if policy makers in the world's most populous nation think anything like the above statement.

I think what you mean was 'delectable'. I'm sure the U.S navy would more than happily correct you. When I was learning english I sometimes made mistakes too. It happens.

You have no idea what you are talking about.

The subs that China has are complete targets. They are loud, the crew are poorly trained, and they suffer from crap target processing software.

A submarine is absolutely made by its crew. The US Navy is so far in front everyone else on crew quality it isn't even funny. The Australians are quiet good, they and the Norse are about the only ones close to US Navy quality. There is a reason for that. Those two nations are utterly devoted to having a top flight submarine force..... They are the premier arm of those two countries Navys.

The 2nd tier can be dangerous but a LA/Virginia class is going to sweep them from the sea 75-90% of the time. (Usually because someone drops a wrench or lets the toliet seat fall.... I'm NOT kidding. Good friend of mine was a Sonar man on an Improved LA boat)

2nd Tier:
Royal Navy
USSR (some officers were as good or better than the USA, their boats simply don't get out enough anymore for their crew to be sharp)
Kriegsmarine
France (good at sinking Green Peace... untested against people that shoot back)

Pretty much anyone in Nato that operates boats does so at an acceptable level. Can they kill a CVN? Sure they can. Can they kill a CVN out at sea during General Quarters? I'm not betting on it if the CVBG has an Improved LA/Seawolf/Virginia escorting it. But hey, even a blind pig finds an acorn sometime. The 3rd tier may have some dangerous boats but unless some Admiral decides to do donuts in Shanghai harbor the odds of a Kilo or Tango sinking a CVN are about 1000-1.

You could give the Chinese a AIP boat from Germany and I still wouldn't bet on them nailing a CVN. They simply don't have the crews...... yet.

If China WANTED a real blue water sub force, they could do it. They have a long way to go though. It is unlikely they could make the structural changes in their naval program that would be required to train the crews in the expertise and flexibility that is needed. The problems are in many ways political.

No more talking about things you have no clue about. You are on probation from the ignorance patrol.

Their submarines cannot be detected by the American, Russian or any other tin can Navy in this world.

And neither can the Russian or American subs be detected by others. It's not that hard to hide a sub, especially during peacetime, and it's kind of silly to say that's what defines "the most powerful navy in the world". Fact of the matter is that China has very little blue-water (long-range) navy, and the subs are pretty much defensive assets against the US's overwhelming naval superiority, especially in terms of force projection.

Regardless of whether people like it or not, the US's navy gives it utterly unmatched force projection ability. As incompetently as its Iraq endeavour is being handled, few other countries would even be able to attempt it, and none would have had a hope of conducting the original bombing campaign that destroyed Iraq's military and military infrastructure. Of the world's carrier-borne aircraft, the US has twice as many has every other nation combined. No navy in the world can match the US's.

None of that is America-boosting; it's just fact. That no military in the world is anywhere near the US's should hardly be surprising, though - no military spending in the world is anywhere near the US's; the next-highest country spends about 10% of what the US does.

in response to Why let Yuan float? I mentioned Michael Gomez of Pimco excellent article on China, the Yuan etc in my earlier post to read in full you can visit Pimco.Com in his article he talks about the contiuing massive growth of their economy and WHY it may be in China's own intersest to now let the Yuan float(an excerpt):

"From an economic perspective, a stronger CNY would help reduce the trade surplus, ease pressure on inflation, mitigate speculative purchases of onshore assets, help the central bank gain monetary credibility, foster proper allocation of investments, stimulate domestic demand, rebalance the economy, and disarm protectionist tensions with the U.S. and Europe (the latter a growing concern, given that EU is now China’s number-one trading partner and the CNY has significantly depreciated against the euro over the last year). At the same time, the sterilization costs of heavy currency intervention will grow as interest rates in China rise, while those in the U.S. fall4. Finally, any concerns of a growth slowdown from the stronger CNY easily could be offset by expansionary fiscal policies, particularly targeted infrastructure and social investment."------as it relates to what i was talking about in my earlier post this will add substantial upward pressure to Crude Oil/Gasoline both in the short term and the long haul------Patrick Kerr of OilGasFutures.Com