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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: kidl who wrote (4729)	7/10/2022 10:56:33 AM
From: Sun Tzu	Read Replies (1) \| Respond to of 10768

I am not sure that I agree with the premise of the article: China wants its currency, the yuan, to replace the U.S. dollar as the world's global currency. That would give it more control over its economy. Through out its history, China has been more isolationist and concerned with maintaining its self sufficiency and independence than empire building. Every bill that is printed is an IOU. And in order for RMB to become a global reserve currency, China must accept to give up huge amounts of internal control. RMB could become a reserve currency if China really wants it to. But there are no indications that that they want it bad enough to pay the price. Rather they just want to topple the USD hegemony without replacing it. That is the middle way and more in tune with the Chinese character. In the early stages, the two game plans are identical. From an American perspective it will look like China want to displace the USD. But I believe the real goal is to move towards a multipolar world rather than replace USD with RMB. As I have said before, the future global currency will be a crypto stable coin. Not in its current simplistic BTC or ETH form, but rather as a global yardstick tied to a basket of commodities and global trade/currencies against which all other currencies will be measured.