Can the Chinese Yuan Replace the US Dollar?

[sanman]

If this happens, Americans will be in the poorhouse forever

 

[Simpletruther]

If this happens, Americans will be in the poorhouse forever

Not for a long time if ever.


Reserve currency status is based upon trust. And we are by far still the highest floating turd of a currency.

Yes we are diminishing that trust, but we have a long way to fall to match the chicoms.

 

[sanman]

Not for a long time if ever.


Reserve currency status is based upon trust. And we are by far still the highest floating turd of a currency.

Yes we are diminishing that trust, but we have a long way to fall to match the chicoms.

I think we'll increasingly see a bifurcation, whereby the US still hangs onto its use as a value store, while China's yuan continues to become increasingly dominants for buying & selling transactions (since China increasingly makes more of the things people buy & sell.). This will put the US under increasing pressure over tolerance to inflation.

 

[Redress]

Can the Chinese Yuan Replace the US Dollar?​

Not any time in the foreseeable future.

 

[vegas giants]

It is inevitable

 

[Simpletruther]

I think we'll increasingly see a bifurcation, whereby the US still hangs onto its use as a value store, while China's yuan continues to become increasingly dominants for buying & selling transactions (since China increasingly makes more of the things people buy & sell.). This will put the US under increasing pressure over tolerance to inflation.

I could see that.

It's a cold day in hell before I trust the chicoms to store my value.

 

[Cardinal]

If this happens, Americans will be in the poorhouse forever

I’m not an economist, but I find this statement confusing. Of the top ten countries by GDP, nine of them don’t have money that’s used as the global currency. Granted, India is one of these countries, but their issue is colossal wealth disparity rather than national poverty.

 

[Tangmo]

China has no rule of law and its justice system brings you into court after the case has been decided by The Party. The Party prosecutor makes a bogus presentation of the charges then you're sentenced.

Xi Jinpingpong has bitched publicly that China does not have lawyers who can argue cases before international tribunals, which of course disadvantages the CCP in any court or tribunal outside of China. You see, CCP lawyers are versed in Communist Party law. Those who go to law school abroad return to China doubly confused.

The Super Maoist Xi who is determined to out-Mao Mao himself announced last year that the Party-Government is taking over all privately owned businesses and corporations, meaning the Party-Government is sending in its loyal members to run your company for you. And send the profits to the Party.

Throughout the education system the Party Political Officer of the school or college conducts weekly indoctrination classes for everyone.

The RMB is strictly monopoly money that hasn't any value outside of China except in Moscow for some trading and in a few other countries but in limited applications. Nobody wants to get stuck holding the Chinese monopoly money and an I Bought Park Place T-Shirt.

This take down the USD and the USA itself has been the wet dream of the global fascists for decades yet they still have nothing to show for it. Never will either.

 

[Surrealistik]

As of the time of this writing, the USD constitutes 60% of world reserve holdings (which has remained steady for the past decade or so), with the Euro a distant second at 20% and 40% of all global debt issued in USD.

The Yuan by contrast stands at a pathetic 2.5%, and given its recent geopolitical and domestic tensions underscoring its at best tentative rule of law, as well as substantial economic, debt and domestic issues, I can't imagine that share exploding in growth anytime soon.

 

[Tangmo]

If this happens, Americans will be in the poorhouse forever

That's the fascist wet dream of the past three decades.

Yet you're still nowhere, past, present, future.

Every dynasty of China has failed and the CCP is a young and nervous dynasty of emperors in business suits who are classically Chinese, ie, grandiose.

 

[Tangmo]

As of the time of this writing, the USD constitutes 60% of world reserve holdings (which has remained steady for the past decade or so), with the Euro a distant second at 20% and 40% of all global debt issued in USD.

The Yuan by contrast stands at a pathetic 2.5%, and given its recent geopolitical and domestic tensions underscoring its at best tentative rule of law, as well as substantial economic, debt and domestic issues, I can't imagine that share exploding in growth anytime soon.

Indeed.

China's debt now exceeds 300% of GDP.

While Xi has been the Big Cheese GDP has collapsed from 12% to the present 2% to 4% despite the Boyz in Beijing cooking the books to get their bogus 6%. Xi doesn't care about the economy or the RMB. Xi is hell bent on out doing Mao Him Self, ie, the Party uber alles.

 

[Metric Mouse]

I’m not an economist, but I find this statement confusing. Of the top ten countries by GDP, nine of them don’t have money that’s used as the global currency. Granted, India is one of these countries, but their issue is colossal wealth disparity rather than national poverty.

Sometimes when I'm confused, I dig a little deeper into the subject. For instance, where does the country with the reserve currency rest in that top 10 list? If the United States had the same GDP as, say India, or another country on that list, would people in general in the United States be poorer or richer than they are today? And by how much? (I.e. how big is the difference in GDP between the United States and these other countries... 5%? 10%? 15%?) Surely even a 15% change would be noticed, but something as small as 3 or 4 probably wouldn't make people "poor."

 

[sanman]

I’m not an economist, but I find this statement confusing.

When I say poorhouse, I'm talking about the US being crushed by the debt-servicing costs of its enormous debt. The United States is the world's biggest debtor nation.

 

[Razoo]

Should the USA fail to repay debt where would that put those who have invested in our debt?

Considering only the very smart and very rich people, the central banks of Japan, China and many other countries hold a large share of their assets in U.S. government bonds. If federal bonds are absolutely safe and the government of the United States has never defaulted on any bond obligation what's the problem?

Sources of money invest in USA debt which says USA is not a threat to investments. Thus it will be a long time maybe never before the USA dollar will become questionable.

Nonetheless a smart move for the USA and the people would be to bring back a large chunk of USA manufacturing to the shores of America.

Why is corporate America investing in Fascism, Communism and dictatorships?

 

[Tangmo]

When I say poorhouse, I'm talking about the US being crushed by the debt-servicing costs of its enormous debt. The United States is the world's biggest debtor nation.

It's the debtor nation that starts so called "trade wars" because history proves it's the targeted creditor nation that loses 'em. The Boyz in Beijing knew this which is why they were hopping mad about it. Biden hasn't changed a thing of it besides.

The Trump-Peter Navarro 'trade war' was in fact a highly successful strategic attack on China's productivity. And it reduced the inflow of USD that are central to the stability of the RMB. Yes, since the 'trade war' capital has been fleeing China to the tune of $1 Trillion annually. Manufacturing has moved to VN, Laos, Kenya, Mexico among other untermensch countries while the wealthy capitalist owners have taken their Big Bucks and their families to relocate to the West.

One job I had in China until the past November was consulting to an industrial group in which the corporate owners had a creed: "Make it here (money) and use it over there (the West). Yet The Boyz are limited by global institutions such as the World Bank and IMF in any imposition of capital controls, which are a severe no-no. The Boyz are supposed to be opening their capital markets, not closing 'em off. So Da Boyz have instituted only minor capital controls but Hong Kong remains the means of escape for the Chinese capitalist class. And now with Xi having proclaimed that The Party-Government is taking over all privately owned means of production, to put its own people in your business to run it, capital continues to flee via Hong Kong.

China has already lost a significant number of its best capitalists who moreover have taken their families with 'em.