Posted on 04/29/2023 3:23:30 PM PDT by NewJerseyJoe
Economist Stephen Jen, a former Morgan Stanley managing director, expects a shift “from a unipolar reserve currency world to a multipolar world,” with the Chinese yuan, the euro, and the U.S. dollar forming a “tripolar” reserve currency configuration.
‘A Multipolar World’
Economist Stephen Jen, the CEO of asset management firm Eurizon SLJ, expects multiple currencies will chip away at the U.S. dollar’s dominance. Jen was formerly a managing director at Morgan Stanley in London and a senior economist at the International Monetary Fund (IMF).
After stating that the U.S. dollar is losing its world’s reserve currency status at “an alarming pace,” the former Morgan Stanley director told the Insider publication that the de-dollarization trend is likely to continue. However, he noted that it will “probably not to a point where a non-dollar currency commands a bigger market share than the dollar.” Jen described:
"More likely, we will evolve from a unipolar reserve currency world to a multipolar world."
The economist pointed out that all other currencies have flaws as international currencies and potential challengers to the dominance of the U.S. dollar. Nonetheless, he shared with the news outlet:
"But if I have to guess, it should be the [euro] and the [yuan] having roughly equal presence. Such a ‘tripolar’ reserve currency configuration would also make sense and be more aligned with the economic heft of the three blocs."
The Eurizon SLJ chief emphasized that for the Chinese yuan to gain ground as a reserve currency, China’s financial sector would need to improve in quality, noting that foreign investors are still cautious about investing in Chinese equities and bonds. “Without foreign demand for Chinese assets, Chinese savers and households cannot be allowed to invest overseas, and thus the capital controls would need to remain in place,” he stressed, adding:
"With capital controls, it would be difficult for the [yuan] to become a viable international currency."
A growing number of people have voiced concerns regarding the U.S. dollar losing its global reserve currency status. Economist Nouriel Roubini (aka Dr. Doom) expects the world to shift to a bipolar global reserve currency system with the Chinese yuan as an alternative to the USD. The president of the European Central Bank (ECB), Christine Lagarde, said earlier this week that the USD’s reserve currency status should no longer be taken for granted.
TriLateral??
Good going, Rats
Watch the fall of the debt-based petro-dollar, and the rise of the asset-backed "Rainbow Currency" via NESARA.
NCSWIC!
No one will invest in the yuan with Chinese interference... or they will and China will disappoint them...
“This could be definitely interesting. The U.S. dollar would not be completely out of the picture, and any others would have to assume their share of the liabilities, responsibilities, and incurred debt that go along with being a reserve currency.”
I don’t see how it could work. The single amount on each currency does not stand alone. It is a representation of something within the country for trade purposes only. We have, for instance, been off the gold standard for many years and have over time forgotten what the dollar represents. It is now considered in the US as a bartering device standing on its own. An example is when the government prints more money but doesn’t take our market value out of circulation. So now, that new dollar plus the old one both represent the same dollar amount as before, so it now is 50 cents worth of each dollar.
What is the worth of a dollar? That worth is different in every country and in every form of money representation. So if they go to the global currency what are our dollars representing and how does it reflect the bartering process that actually happens as no country is capable of independent existence. And until that can be established of what is the worth, it can’t work anywhere not even within a single country. At some point we will have to back to considering trading a pig for some chickens. And if this currency value is not based for all, even the smallest country, they will become a satellite of the larger more prosperous countries and can no longer live independently. Welcome to the new world order.
wy69
big companies are leaving China
.
This is the end result of the failed sanction war Biden started with Russia.
Regardless the WRC will end up being the Yuan, after all they paid the Biden Crime Family and the Dems for the privilege.
This is the end result of the failed sanction war Biden started with Russia.
************
Sanction stupidity knows no bounds. It hurts people & businesses globally for the bad actions of the government military complex.
Wall Street, on tariffs that might help domestic manufacturing:
“Bad...bad for consumers while screeching like a stuck pig.”
Wall Street on current sanctions stupidity:
“Lets blow the whole damn economy up.”
My two cents:
1) The Yuan can not become a reserve currency as long as it is pegged to the dollar. The CCP maintains the exchange ratio at 6-8 yuan per dollar. Hence, all transactions based on the yuan are ultimately based on the dollar. If the CCP were to decouple from the dollar, then the yuan would rise and Chinese goods would become more expensive in the US thus crashing the Chinese economy.
2) The Euro can not become a reserve currency as long as US troops are securing European peace. Europe is currently enjoying all the benefits of socialism without the concern of protecting their own peoples. Hence, European society is ultimately based on the dollar. If Europe provided for its own defense, then the value of the Euro would fall, and no one would want to trade in Euros.
Naysayers aside, the dollar will continue to rule for quite a long time as it is the lesser of all evils.
https://mises.org/library/nature-and-origin-money
“The Nature and Origin of Money”
5/3/23
By: Carl Menger
“In the early stages of trade, when economizing individuals are only slowly awakening to knowledge of the economic gains that can be derived from exploitation of existing exchange opportunities, their attention is, in keeping with the simplicity of all cultural beginnings, directed only to the most obvious of these opportunities.
In considering the goods he will acquire in trade, each man takes account only of their use value to himself. Hence the exchange transactions that are actually performed are restricted naturally to situations in which economizing individuals have goods in their possession that have a smaller use value to them than goods in the possession of other economizing individuals who value the same goods in reverse fashion. A has a sword that has a smaller use value to him than B’s plough, while to B the same plough has a smaller use value than A’s sword—at the beginning of human trade, all exchange transactions actually performed are restricted to cases of this sort.
[snip]
As each economizing individual becomes increasingly more aware of his economic interest, he is led by this interest, without any agreement, without legislative compulsion, and even without regard to the public interest, to give his commodities in exchange for other, more saleable, commodities, even if he does not need them for any immediate consumption purpose. With economic progress, therefore, we can everywhere observe the phenomenon of a certain number of goods, especially those that are most easily saleable at a given time and place, becoming, under the powerful influence of custom, acceptable to everyone in trade, and thus capable of being given in exchange for any other commodity. These goods were called “Geld” by our ancestors, a term derived from “gelten” which means to compensate or pay. Hence the term “Geld” in our language designates the means of payment as such.”
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