NEW YORK (TheStreet) -- Here's are two future headlines we could see sooner than you think.
First: China's Currency Declared to Be Fairly Valued.
Following that: China's Currency Achieves World Currency Status.
China is on the move and the world is entering a new economic era. One example that the U.S. may be getting left behind is the Asian Infrastructure Investment Bank, something the U.S. did not join and advised allies that they should stay out of. The advisement was not successful, and traditional economic allies like Italy, France and Germany joined.
The world is moving toward a new alignment where the United States is not the single world power, economically, politically, and militarily. This was bound to happen sometime, but accepting such a change is difficult. Actually adjusting the way a nation looks at the world and acting on this new vision is even more difficult.
The fact is, however, that China is moving into the realm of global leadership. It has been planning for this for years and the efforts that have been made are bearing fruit. (China is not there yet, and may stumble along the way, but, then, China is not the only part of the world that is moving into this new economic era.)
The next step for China? Having the world accept the fact that it is serious when it claims that it will adhere to its responsibilities as a major global currency.
When the U.S. advised other nations to stay out of the Asian Infrastructure Investment Bank, it argued that China would neither create nor maintain the level of credit assessment and management that a major world financial institution should aspire to. Obviously, the other nations that joined the bank did not feel the same way.
And now it appears there are others who believe that China is now managing the value of its currency in a more responsible way: The International Monetary Fund could be close to declaring that China's currency, the renminbi, or, more popularly, the Yuan, is being "fairly valued."