(Photo opposite: Campus where Jurgen teaches in Changchun, China) There’s another university quite close to “my” university campus in Changchun. Even though “my” campus looks spacious, the other university’s campus gives the word “vast” a new meaning. There’s a reason for it. Whilst “my” university’s private, the other one’s a public outfit. That public outfit’s known as Northeastern Normal University. The campus of Northeastern Normal University includes numerous shops and restaurants. A few days ago, about half a dozen students and I hopped into a couple of taxis. We went for lunch to one of the restaurants at Northeastern Normal University. Because of the one week holiday in China, we had all the time in the world. The lunch took us three and a half hours or so.

Our extensive lunch consisted of chafing dish. Chafing dish is said to be a popular dish in Northern China, in particular in winter. Even though it’s still autumn, it’s already getting a little chilly. Looking at things from that angle, chafing dish was the right dish to go for. A heated pot takes centre stage with chafing dish. You pour boiling water into that pot. You then put slices of meat or fish into the pot. You can round all this up with a pile of tofu and vegetables as well as mushrooms and sweet potatoes. When all this is heated up, you take it out with chopsticks and dip it into a spicy sauce. That sort of mix tastes very delicious. You may be tempted to give it a go with your boots on the ground in Northeastern China.

Doing that sort of thing with students in my classes has turned into a habit, in the course of time. That sort of thing signifies fun for them and me. It helps me get the message across that there’s more to life than studies and work. On top of it, everybody involved in that do can have a banter in three languages, in English and German as well as in Chinese. It doesn’t take a rocket scientist to predict that the most significant of these languages will be Chinese in the - forseeable - future. If memory serves, it was Jim Rogers who gave the investment advice to learn Chinese and hold the Renminbi. I eat Jim’s cooking. The ongoing credit crunch changes nothing in that respect.

China and the Credit Crunch

Even before the credit crunch kicked off, the US Dollar did some substantial plummeting. It makes no hoot of a difference how the bailing out package for the financial sector in the United States is going to shake out. It costs a pile of dough. The United States doesn’t have that pot of money. Instead, it’s got to borrow the dough. Who knows? An educated guess tells me that the United States may borrow that pot of money from Chinese banks. Borrowing the dough will step up indebtedness in the United States. And more debts will make the US Dollar plunge more.

All the while, the Chinese Renminbi is likely to go north, in time. A strong Renminbi will slash costs to import commodities. A strong Renminbi will make acquire stakes in international firms more inexpensive. A strong Renminbi will contribute to more efficient manufacturing. A strong Renminbi will prop up the standard of living for the ordinary Chinese. Do you reckon that a strong currency comes across as a bad thing?

You may come up with the objection that my present stomping ground China is going to be adversely affected by the financial and economic mess in the United States. I concur, to a certain extent. However, China exports between thirty and thirty five percent of the country’s gross domestic product. The share of it heading for the USofA hovers around thirty to fifty percent. A significant chunk of Chinese growth stems from internal demand. More than a billion Chinese strive to boost their quality of life. Unlike the average American, they save. They’re not into debts. And that makes all the difference.

That’s pretty much what makes me reckon that Chinese economic development looks rather unlikely to go into reverse. Meanwhile, what’s playing out in western nations may turn into an unforgettable and painful experience. Common sense relays to me that it will result in a currency regime shakedown, at the end of the day. The pre - eminence of the US Dollar is beginning to come to an end. The tequila crisis and the Argentine financial meltdown pale in comparison. That sort of country triggers no global implications. By contrast, the US Dollar losing its pre - eminence is worth watching.

At the same time, the Euro projects the image of a structurally flawed currency. Who knows whether the Euro will still be around in - let’s say - twenty years time? I’m most unlikely to put down roots in China. Yet the Chinese Renminbi and the Singapore Dollar as well as the Japanese Yen and gold radiate more credibility to me than what else is available. I continue to sit and watch.

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