To hear of a predicted currency standardized between Japan and China scares me just a little, however I'm not sure what to think the outcome would be. Of course it is comforting to know that the US dollar is the dominant currency in the world, for US citizens that is. China exports many goods to the US, but the export many goods to Japan as well, and they import many goods from Japan also.
The new currency would make it easier for China and Japan to trade without having to worry about the conversions of the US dollar, and it would also allow for a type of fact that would ensure trading relationships between the two countries, which carry heavy weight in the American and the World economies. China and Japan are powerhorses in the American and world economy, so the decisions they make will effect other countries they trade with, it just depends in what ways and how much. China and Japan would most likely influence other countries they trade with too move to their currency within the century, which would eventually mean the US dollar could become an outcasted currency.
"Professor Kupchan of Georgetown said the currency pact is more symbolic than significant right now for the United States. “This pact hardly unseats the dollar as the world’s dominant currency,” he said. “But it is a clear sign that China is headed in the direction of internationalizing the renminbi.”
This means that China is working towards dominating US power and becoming more in control of money issues in the world, and most politicians would agree, that if a country has power over money, they have power over most who have less.
http://www.nytimes.com/2011/12/27/business/global/china-and-japan-in-currency-agreement.html
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