In the News: “China and Japan have unveiled plans to promote direct exchange of their currencies in a bid to cut costs for companies and boost bilateral trade. The deal will allow firms to convert the Chinese and Japanese currencies directly into each other. Currently businesses in both countries need to buy US dollars before converting them into the desired currency adding extra costs.
“‘Given the huge size of the trade volume between Asia’s two biggest economies, this agreement is much more significant than any other pacts China has signed with other nations,’ Ren Xianfang of IHS Global Insight was quoted as saying by the Bloomberg news agency.” (Source: BBC News)
“In contrast, the EU shows helplessness in general politics against speculation, wars in Africa and Asia. It is useless to demand for Germany to create the United States of Europe so that the ECB acts as the Federal Reserve in the U.S. because the Germans and the British do not want to lose their sovereignty unlike the people of southern Europe.” (Source: L’Occidentale)
My Comment: For the time being this also shows the lack of a common firm decision. Due to its absence, the Asian market only tries to isolate itself from the rest of the world in hopes of reducing their losses. But the future will show that without uniting all world economies into one single system, the crisis cannot be overcome.