Amateur hour stupid. They mention the huge export surplus from China. What would happen if the yuan (RMB) dramatically strengthened against the dollar? Now that $1 widget in Walmart costs $1.50 and it’s profitable to be US made. China does not want that an so keeps the yuan weak against the dollar.
If the dollar falls 33% the 3 trillion of US treasuries are now worth 2 trillion.
Not to mention it is hysterically funny that this author thinks the majority of nations will trust China as the reserve currency guardians, especially after their vovid treachery.
“What would happen if the yuan (RMB) dramatically strengthened against the dollar? Now that $1 widget in Walmart costs $1.50 and it’s profitable to be US made.”
Not with our unions, the Left has that covered too.
Russia and China are factory nations. Their economy only exists due to selling their goods to other nations.
This only happens if they keep their currency very weak against the currencies of their trading partners.
To say that two factory nations are going to combine to displace the US dollar as a reserve currency is asinine.
This doesn't mean that I'm a US dollar fanboi. Our currency, just like the currencies of the world, is wicked - in that it is based on debt (US Treasuries in our case).
The US needs to have the Treasury issue our currency, and only issue it against labor that has been completed - think public works projects for instance, that could then be spent into the economy. There should never be backing by debt - since debt is a claim on the future labor of a society. We are currently slaves to our debt masters.