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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Hank Scorpio who wrote (14955)	12/21/2022 3:48:07 PM
From: Sun Tzu	Respond to of 26512

I've been discussing the problems of printing the world reserve currency for a long while. I thought to tie it all back together in one place. If you backtrack the posts that I reply to, or search "tick tock" on my thread, you get the set. Your answer is here: Message 34126152

To: Hank Scorpio who wrote (14955)

12/21/2022 4:24:37 PM

From: Kirk ©

1 Recommendation

Recommended By
rogermci®

Read Replies (1) | Respond to of 26512

I agree with your great comments.

Also, I think that is a big reason China's currency won't replace the USD as a global reserve currency.

OK well. All of my economics professors and the textbooks they used told me that the value of a fiat currency is directly derived from the ability of the said country to leverage the value and output of its citizens. That is a very real and very powerful ability.

Too much of what they do is hidden while the US Treasury and Federal Reserve are about as transparent as anything in history.

For example, how many Chinese Renminbi were printed to build all the unoccupied buildings in empty cities? What happens to the value of the wealthy Chinese that have large, highly appreciated real estate holdings if the chickens come home to roost?

They may force trading partners to use Chinese Renminbi as currency for oil delivery contracts or taking payments for the raw materials China mines from their counties land, but the insurers will probably still want insurance in USD. Oil won't flow without insured ships to transport it. So, the Chinese will somehow have to "peg" Chinese Renminbi to the USD for those transactions.