| | | The problem with the dollar-dominated monetary system, he said, was that it left countries vulnerable to potential U.S. sanctions and Washington’s power to freeze a nation’s international assets in the event of a dispute.
“It is a weapon for the U.S., but a source of insecurity for other countries,” Wang said.
“The currency the world ultimately chooses for global trade must not be one that gives someone privilege, while exposing others to insecurity.”
The difficulty is... being unhappy with a disadvantage you have created for yourself by debasing your currency more than others... isn't a sufficient cause to empower a change... "just because".
It's like a spoiled teen, unhappy that Dad has cut off their allowance... declaring that in result they've decided to simply start issuing themselves their own allowance...
Yeah ? OK. Have at it...
Other nations, similarly, carp about the dollar... but when it comes down to it... they are totally unwilling to change any of what has to change for them to BE ABLE to create a viable alternative...
As far as "a new super-sovereign currency to offset the global dominance of the U.S. dollar, which he predicted would decline long term" its just fundamentally dishonest...
The dollar ALREADY is in a massive long term decline ? It's lost 97% of its purchasing power in less than 100 years ? So the issue is... as bad a history as the dollar has... every other currency is still VASTLY WORSE ?
And, there's nothing stopping anyone from simply implementing policies that work to strengthen their own currency relative to others ?
But, you won't EVER see anyone actually doing that ? Instead, they're trying to pretend that they'll just invent a new currency... that magically solves all their problems... without them having to change anything ?
The "new" being invented... is essentially a declaration of failure and default... by those unwilling to acknowledge that it is their own currencies (and their own policies) that are failing them, and not the dollar that is the problem ?
Fictions about a "gold peg" won't fly either... as without convertibility no one will value "promises" to deliver gold... which is why the gold and silver markets are where they are now... ?
Otherwise... the dollar system has value... because of its values. If you're unhappy with that... when the enforcement of policy tied to those values is a problem for you... why would you think inventing a new currency that is purposed to enable NOT adopting policy that enables value... would create value ? |
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