Posted on 06/20/2022 12:48:46 PM PDT by BusterDog
The recent dollar-denominated financial sanctions on Russia by the United States inadvertently highlight the growing significance of the yuan (RMB) as an alternative currency. Although today’s immediate concerns revolve around the potential for Moscow to avoid sanctions by transacting in RMB, the significance of the emerging US-China currency rivalry exhibits far broader implications. Many countries are reevaluating their commercial and strategic interests, including increasing their usage of the yuan. As a result, China’s effort to internationalize the yuan is seeing increasing success after six years of stagnation. If the US is to protect its position in the world financial order, it must uphold its sound institutions underpinning the world’s faith in the dollar.
(Excerpt) Read more at aier.org ...
Thanks to Obozo, Biden and Soros, its coming; the big push to destroy the Dollar and replace it with the Yuan as the Worlds Reserve Currency. China needs it to survive economically.
Unlikely considering the current Chinese banking system and the “run” on banking.
...which translates to a high likelihood of our being “midstream,” vis-à-vis the Chinese yuan.
As the adage goes, it’s the height of danger to consider changing horses midstream.
It won’t be the Yuan, for a number of reasons. More like a commodity based currency used in currency swaps trading with other nations industrial production. Russia’s oil & gas for Chinese manufactured goods. But the fiat dollar is now on its last legs. Other coountries are sick of having to suffer inflation because of the West’s financial irresponsibility, and are looking for an off ramp.
Anyone who would trust the CCP currency is not someone I would want managing my funds or managing anything.
Seeing people attempting to give the Yuan “reserve currency” status will be interesting all things considered.
china —> ongoing bank runs
“Anyone who would trust the CCP currency is not someone I would want managing my funds or managing anything.”
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Today it’s 6.69 Yuan to the Dollar. Dec 31 of this year, probably 4 to 1.
“Today it’s 6.69 Yuan to the Dollar. Dec 31 of this year, probably 4 to 1.”
Now think that out. That means all Chinese products sold in the US will be 40% MORE EXPENSIVE!
A Walmart shopper now looks at a Chinese tool for $10, vs a US tool for $8, rather than the way it is now, Chinese tool for $6, vs a US tool for $8.
China has gone to great lengths to keep the yuan CHEAP compared the dollar. If the yuan strengthen as you claim, that would give their competitors (small Asian nations, where Chinese supply chains are moving to), both US and others, A HUGE COMPETITIVE ADVANTAGE. Do you think China wants that? In a mercantilist export economy like China’s, a strong currency is a kiss of death.
“China has gone to great lengths to keep the yuan CHEAP compared the dollar. If the yuan strengthen as you claim, that would give their competitors (small Asian nations, where Chinese supply chains are moving to), both US and others, A HUGE COMPETITIVE ADVANTAGE. Do you think China wants that? In a mercantilist export economy like China’s, a strong currency is a kiss of death.”
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No, it’s just strengthening against the Western nations with collapsing sovereign debt bubbles, which China can’t do anything about anyway, so they will offset the lower sales with increased geopolitical power and influence. Treat it like an investment.
China is on the edge of economic collapse.
LOL! If China loses a large market share from those "Western nations", they CRASH AND BURN! Right now they are a house of cards.
” LOL! If China loses a large market share from those “Western nations”, they CRASH AND BURN! Right now they are a house of cards.”
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They are already cutting us off, have you not noticed? They have money. We need about 30T to get square.
“China is on the edge of economic collapse.”
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They are in debt about 30 Trillion, huh?
“They are already cutting us off, have you not noticed?”
So China is cutting us off? How are they doing that? Be specific, not some vacuous one liner.
Commodities, chips, durables. Use a search engine that’s not based on Google or Bing. Can you find one of those?
“Commodities, chips, durables.”
LOL! They are selling them to NO ONE. That what happens when their factories are in covid lockdowns.
The Chinese will manipulate their yaun to stay lower because their exports depend on it.
Ban all non-western immigration to the United States - preserve our western identity and note that East and West should never mix.
I’m not quite sure what point you are trying to make but a collapsing Chinese economy will likely only strengthen the World’s use of the Dollar...
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