[Parley Baer]

China is praying for a Biden Presidency.

[ocrp1982]

The commies will once again lose in a long-term struggle with the USA if the USA is led by a strong pro-USA president such as Reagan and Trump.
The outcome could be quite different if we are led by an appeasement globalist president. In one scenario we will win. In the other, we will lose. That is the choice we face come November.

[Secret Agent Man]

be a shame when that dam of theirs finally fails.

[thoughtomator]

Commies can go suck it. If they didn’t want a bad outcome to come to them, they shouldn’t have forced the situation.

[2aProtectsTheRest]

The sooner we get together with Europe and isolate China politically and economically, the better off we’ll all be. They are not our friends. They were never our friends. They will never be our friends. They lie and cheat and steal and they cannot be trusted.

They’re spreading like a cancer. We should completely cut all ties with them as quickly as possible. Either make our own stuff or get someone else to make it who will play fairly.

[LibWhacker]

...resurgence of international terrorism...

You'd think after what China has done to the Uyghurs, to say nothing of what its Mongol cousins did, Muslims would be very careful to choose sides wisely here, but noooooooo, they're not very good at the whole wise thing.

[KarlInOhio]

So if their currency floats, it will probably become more valuable relative to the dollar because they have been fighting hard to keep it cheap. That means their exports will become more expensive and other low wage countries will come in underneath them for low price manufacturing. Awwww!

[Zhang Fei]

The dollar is one of several reserve currencies, forming ~60% of the reserves of the world's national treasuries. The euro is ~20%. The principal reason the euro's only ~20%? EU member countries are responsible for their own bonds. Nobody wants Greek bonds and the potential haircuts in the event of default. There's an excellent Quora response that laid out the reasons why reserve currency status isn't all it's cut out to be:

First off, let’s get rid of one misconception that you seem to share with dozens of other people on Quora. The dollar is not “the world’s reserve currency.” It is “the world’s major reserve currency.” Any currency can be held as a reserve currency. There are no laws about this and it’s up to each country to decide what they want to hold, of course. Nobody declared that each country has to hold the bulk of its foreign exchange reserves in USD, it’s just the result of individual decisions by each country.

As far as we know, the dollar accounts for 63% of reserves, EUR is 20%, and then there are the rest. Take a look at the IMF’s breakdown of reserves by currency at http://data.imf.org/?sk=E6A5F467...

So why is USD the world’s major reserve currency? Why have most countries elected to hold the bulk of their reserves in USD? To fulfill this role, a country has to have:

• large, liquid financial markets capable of taking huge investments (there are currently at least $6.3tn – that’s trillion dollars -- in reserves held in USD, and probably closer to $7.2tn);
• a reputation for safety and rule of law, so that other countries are willing to invest billions and billions of dollars in that country’s government securities; and
• a willingness to run current account deficits indefinitely, since that’s the counterpart of a financial account surplus. (I’ll explain this later)

I think you’ll find that at the moment, there is only the US that fits all three criteria, and I don’t see any other country volunteering to take its place any time soon. What other country’s bond market could take even half that amount? As far as I know, only Japan, and they have shown zero interest – in fact significant negative interest – in having their currency play this role. (Negative interest = they discourage people from doing this.) The Chinese government bond market is also large and growing, but of course China has an estimated $1tn or more in USD reserves – where can it put that money besides USD?

On the contrary, most countries fight to prevent their currency from being held as a major reserve currency, since that causes the currency to appreciate, dampens growth, and causes unemployment. That’s what all this “currency wars” talk is about. Here’s why:

In order to accumulate foreign exchange reserves, central banks buy assets (mostly government bonds) denominated in the currencies of other countries. In this case, we have foreign central banks buying billions and billions of dollars worth of US government securities. This causes the US to run a financial account surplus. (A financial account surplus means foreigners buy more USD-denominated assets than US-based investors buy in foreign assets.)

If the US runs a financial account surplus, by definition it has to run a current account deficit, unless the government intervenes heavily. The current account is mostly made up of trade in goods & services. (That’s because money coming in has to equal money going out.)

So the fact that the USD is the world’s major reserve currency is one of the main reasons why the country has run a current account deficit for most of the last 30 years. (This by the way is known as the Triffin dilemma

— a dilemma identified in the 1960s by the economist Robert Triffin, who realized that any country that dominated world FX reserves would have a consistent current account deficit that would gradually undermine the value of that currency.)

To put it in simpler terms, if the USD weren’t the world’s major reserve currency, probably its value would have fallen, US exports would be more competitive, and more people in the US would have jobs making goods for exports. On the other hand, probably fewer people in China, Germany and Mexico would have jobs making things for export to the US. Do you think that’s a good thing or a bad thing? Probably your view on this depends on whether you work in a factory in the US or China.

While some people have said that the use of the dollar as the world’s major reserve currency is an “exorbitant privilege,” other people argue that it’s actually an “exorbitant burden” for just this reason. See this article by Prof. Michael Pettis, An Exorbitant Burden

or this one on his blog, The Titillating and Terrifying Collapse of the Dollar...Again

 

So we can see that:

 

 

• The USD is not going to lose its position as the world’s major reserve currency any time soon, for a variety of reasons, the simplest of which is that there is no possible alternative under the current monetary system;
• It’s virtually inconceivable that it could lose its position as a reserve currency totally; and
• It might be a good thing for the US economy – or at least the average US worker – if it did lose that position. As several people here have pointed out, GBP used to be the world’s major reserve currency. It’s now a relatively small part of global reserve (4.5%). Yet life seems to go on OK in Britain.

Footnote: By the way, let me explain a bit why the euro can’t fulfill this role. The problem with the euro is that there are no eurozone bonds, there are only national bonds (i.e., bonds issued by the individual countries). Now remember, why does a country issue bonds? Because it has a budget deficit. Therefore, the largest national bond markets are going to be those of the countries with the largest government deficits. These are precisely the countries whose bonds you don’t want to buy. So within the eurozone, the biggest bond market is the perennially fiscally challenged Italy (EUR 2.4tn outstanding), followed by France (EUR 2.09tn). By comparison, there’s only EUR 1.3tn in German bonds outstanding, not far above the EUR 1.23tn for much smaller Spain (49mn people vs 81mn. So the problem with the euro is not the lack of EUR-denominated assets, it’s the lack of attractive, trustworthy EUR-denominated assets.

 

 

No matter how indebted the US government gets, at the end of the day the US Treasury and the Fed are going to work together to avoid defaulting. Not necessarily so with the euro, as we’ve seen with Greece — the ECB and the other EU countries won’t necessarily bail out Italy if it can’t pay its bills.

The Swiss definitely don't want their franc to be a reserve currency. In the 1970's, they imposed a 41% tax on Swiss franc accounts opened by foreign depositors. Today, they have a central bank rate of -0.75%, meaning countries that want to hold their reserves in Swiss francs must pay the Swiss central bank for the privilege.

[unclebankster]

China delenda est.

Eventually China and America will have a big showdown,over who will be the “top dog” in the Asian/Pacific theater.

It’s just a matter of time.

[PGR88]

"China must accelerate the internationalization of the yuan,”

Their problem is no one wants Yuan. To have a global currency, a country must allow free trading of the currency, it must have banks that appear solvent, and it can’t have a currency connected to domestic politics.

[Truthoverpower]

China is in deep shiite 1- world hates them cause of stupid virus 2- food supplies are screwed because of massive rain ☔️ 3- Major other issues with the rain and internal virus problems 4- US is smartly decoupling Their dealing with the criminals in Iran 🇮🇷 is all you need to know

[Jumper]

I had a friend who worked for SWIFT in Belgium... and after the Democrats (NYT) attack on SWIFT he was brought back to the States and was a “contractor” at State.

SWIFT is populated by banking and intelligence agency people’s from whatever Nation they come from to work there.

This is an excellent summation of the actual crisis that China faces but puts a rosy outlook from a Chinese perspective;

The Chinese currency has only recently ever stabilized as a defacto currency with a normal “international valuation”. China manipulates the value much the United States’ objections since Nixon opened the doors. Chinese banks give loans small emerging nations cannot afford to take or say no.... These predatory lending practices result in taking over ports and valuable land rights.

China has few friends who are going to help them “openly”. There will always be the sanction busing French/German/Italians/Belgium European countries who sell and trade illegally with the leapers of the international community.

Trump did yeoman’s work with North Korea that initially had huge implications for the Iranian and Syrian arms and Nuclear programs, but also had a decoupling component from China in the offing.

If China wants to play military games, they may well see how quickly they are blinded in communications warfare as a small taste of American power to completely blind them... or we may do it first.

Some of my work history was as the Admin NCOIC/Steno CINC in Korea in the 80s and the Chief JUSMAG-K, and also as the SGS NCOIC for again for XVIII Airborne Corps. Even earlier I was an airborne infantryman turned Steno for the Commander of the 82d Abn Div in mid to late 70’s. I am pretty sure I know what I’m talking about being privy to America’s military top echelon’s and in the foreign service later — mark my words that if a Nation is Blind and they cannot see, and it cannot communicate, then it cannot defend or have any command and control.

China has no game - they’ve played their conventional military hand and they are not better than Russia or France for that mater.

America is the most decent nation on the planet from which to live or to serve mankind - America is the land of the free and maybe someday the world can follow our ways to a better life.

When it comes to Korea, Japan,

[bkopto]

https://www.bitchute.com/video/oJGKg6z8bcWI/

[Revolutionary]

Translation: their currency and monitory well being are on the edge of collapse. They have a corporate bond crisis that they keep papering over. With the big drop in exports, the corporate bonds may miss their scheduled dividend. Things could get ugly then.

[sauropod]

bkmk

[Psalm 73]

Red China is reeling - I don't see Xi lasting much longer.
He totally underestimated Trump. And believed the main-stream media.

[Gen.Blather]

Here is why China can not allow free trading of its currency. Every time they have tried billions of dollars worth of value are removed from china, mostly to the United States. This is called capital flight. The Chinese have bought everything in the US they can. If they invest X in something here, and only get back a fraction of the purchase price when they sell, that is a win over losing it all, which is what will eventually happen when China implodes. The implosion of china is virtually guaranteed by virtue of their bad economic policy going back thirty years.

The other problem is, even if they made Chinese money convertible, nobody wants it. Nobody wants anything except dollars. If Brazil sells something to Mexico, Mexican money must first be converted to dollars for the purchase to take place.

The Euro was the best attempt to unseat the dollar’s position as the world currency. Then, the EU simply went into Cypriot banks and stole money to pay for a bailout. Overnight, the Euro went from a challenger to an also-ran.

What the author talks about can’t happen. Chinese money is the most fiat of fiat currency. Worthless.

[simpson96]

...liberals everywhere are dismayed.

[pierrem15]

The yuan cannot replace the dollar in international trade because there are not enough yuan in circulation outside of China.

The dollar came to dominate international trade after WWII because the US was the primary source of a critical industrial commodity (oil) and, after the devastation of the war, a source of critical industrial goods.

There was a 'dollar shortage' after the war which the US remedied with the Marshall Plan, which donated 4% of US GDP for a few years to get other countries' economies back up.

This outflow of dollars and continued trade deficits when needed allowed the dollar to become the world's reserve currency.

China would have to give up its predatory mercantilism and run trade deficits to put more yuan in circulation for the yuan to come into general use, which is impossible for them. Their mercantilism keeps the dollar in circulation and allows China to artificially keep its currency low to support exports. There isn't enough internal demand to support China's industrial infrastructure, so right now it has a terrible oversupply problem.

The only way the Chinese try to put yuan in use is through predatory loans for development where almost all the money comes back to China anyway. The 'loan' consists of little more than credits for purchasing Chinese products and services, and are now largely recognized as a front for Chinese political control.

[minnesota_bound]

Biden, Clinton, obama would be taking bribes from the communists to do the opposite. The $1.5 billion was a down payment that the Bidens received.