Posted on 04/21/2023 7:13:56 AM PDT by SeekAndFind
The share of Yuan is only 3.5% in global trade. The Currency was accepted by IMF as a Reserve currency considering its growing share in International trade in the year 2016, October 1 st. The progress is appreciable. However the contrast is against US$ that has about 60% market share. Here also it's share in Intl Trade is coming down. The reasons why the Yuan will not topple US$ dominance is simple apart from the current unquestionable lead..They are:
# China's economy is a mystery and conceals many things. What it reveals is that which the State decides in the matter.
# The Chinese economy and it's financial systems are not at all transparent. Its difficult to believe the correctness of their published data. Nations dealing with them cannot fully trust the Credibility and Transparency in dealings of Chinese banks.
# China's currency exchange rates are subject to intervention by the Central bank of China and does not follow a free float exchange mechanism in Currency trade.
# In China the Yuan is still a political tool of the CCP and hence subject to value manipulations. Whereas in the US the Dollar is an econo Himic unit with Free float exchange rate mechanism. It's value is highly Stable and is a much sought after global financial asset and forms a major part of all nations Foreign Currency Reserves. The Currency is very strong and so are the fundamentals of US economy. The US economy is highly stable and has the highest Gold reserves at around 8000 MT despite abolishing the Gold standards completely since 1971.
# The USA is an economic and political power with dominance in UN, World bank, IMF and a major partner in financial assistance to economically weaker nations in crisis.
# The US economy promises robust growth and is relatively safe with no border tensions. It's surrounded by sea on 2 sides with major Seaports and related merchandise movement.
# The US economy is self sufficient in fuel and power and the global interest in US financial assets make easy money available at US treasury for it's economic activity and growth at all tines.
#The tax collections in US are robust indeed at around $4 trillions every year. Systems are well administered in the matter. The free market systems encourage good economic avtivity in pursuit of profits and that gives more leverage for natural growth in strength of US$.
All these show the poor compentancy of China to pose any real threat to the dominance of US$. Not anytime soon.
You are exactly right. The author points out the inherent deep flaw of any totalitarian state — total and complete opaqueness about everything and especially about financial data. You cannot trust ANY data the Chinese put out.
Unfortunately, the rule of law in the USA is collapsing. We clearly have two sets of laws for the high-level connected “good” people and the rest of us.
And the abuse of Executive Orders and the Regulatory Branch continues apace. Just today, Brandon signed an EO commanding the entire federal government to base their actions on “environmental justice.” And the Regulatory State has decided we should not use fossil fuels, you cannot have natural gas appliances, or gasoline cars. The EOs and Regulators are totalitarian command-and-control lunatics that are destroying us. It is probably worse communism than Xi uses in China.
“The EOs and Regulators are totalitarian command-and-control lunatics that are destroying us. It is probably worse communism than Xi uses in China.”
Yes it’s quickly heading that way.
Another big destroyer of our rule of law are prosecutors who strictly on their own decide what to prosecute and what not. That’s as bad as any dictatorship.
Those anti-prosecution “prosecutors” are entirely the result of Soros figuring out he could buy those positions all over the country for hardly any money.
It is perhaps the biggest threat we face today. It results in the complete breakdown of law and order, mainly in big Democrat cities where the poor live and suffer the most from Soros’ horrendous efforts to destroy the USA.
So am I supposed to swap out the dollars under my mattress for Yuan?
RE: So am I supposed to swap out the dollars under my mattress for Yuan?
That would be like jumping from the frying pan into the fire.
“Those anti-prosecution “prosecutors””... “
Well they’re not “anti-prosecution”, they’re very much in favor of prosecuting their political enemies, like Trump, the J6 marchers, the people praying at abortion clinics, parents protesting groomers at school board meetings, etc, etc.
I don’t think we will see a single currency replace the dollar. Rather we will see a basket of commodities that cannot be debased by arbitrary printing.
The dollar won’t go away, but servicing our debt is going to be more difficult.
Yes, good point.
How do you explain the vast demand for Eurodollars in the marketplace? Right now. As I type this.
The tiny side deals won't go anywhere. Global trade depends on a global monetary agreement - which is the Eurodollar.
You're seeing other connections come together right now, since there aren't enough Eurodollars to meet the demand - so they're establishing work-arounds to meet their current needs.
RE: Rather we will see a basket of commodities that cannot be debased by arbitrary printing.
The question is, can there be an international currency that is TIED to these basket of commodities? If so, how will this currency be formed and who will be responsible for controlling it?
Agree. But, the Globalists believe they can produce an all electronic univeral substitute.
Of course, they can. /sarcasm
Look at how those fakes handled the Covid Crisis and the Great Reset should be child play?
NOPE. Not only NO, but H NO.
The main question is this — WHAT ARE THE BETTER ALTERNATIVES to the US Dollar?
- - - - - - -
There doesn’t have to be an alternative. People in Germany carried wheelbarrows of money last century because they had trouble finding alternatives.
For international trade, if the dollar ends, people can use any currency without high inflation. Or they might be encouraged to create paper money that can be exchanged for a fixed amount of gold or silver.
The question is, can there be an international currency that is TIED to these basket of commodities? If so, how will this currency be formed and who will be responsible for controlling it?
- - - - - - -
If you live in a country that respects property rights, you can do it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.