Dr M predicts Chinese yuan will replace USD as trade currency

[powastick]

KUALA LUMPUR, Sept 3 — Prime Minister Tun Dr Mahathir Mohamad said today he will not be surprised if the Chinese yuan takes over the United States dollar as a global trading currency.

Speaking at University of Brunei today, the 93-year-old prime minister pointed out that 1.4 billion Chinese who are very productive, dynamic and wealthy might just decide that anyone trading with them must use the Chinese currency rather than the US greenback.

“Imagine 1.4 billion Chinese who are very productive becoming very, very rich... why should they use the US dollar? They are the people with the money, property with the wealth.


“So one day they may decide that if you want to buy, you have to use the Chinese currency. And you will have no choice, you will have to use Chinese currency. I don’t know how long we can resist, but it will come one day,” Dr Mahathir said.

However, he also pointed out that such a move will definitely displease the United States of America which will go bankrupt if the US dollar is no longer used as the world’s trading currency.

Explaining how the US currency became the world standard, he said at one time an ounce of gold was the equivalent of US$36 (RM148), but today the price is US$1,200, forcing America to go off the gold standard while “maintaining the fiction that it carries the same value”.

“Now one ounce of gold is about US$1,200. That’s how much the US dollar has depreciated but we have been brought up to think of the US dollar as the standard. Why should the US dollar be the standard?

“Other currencies too can be the standard but the US will feel very unhappy if you drop the dollar as the standard for currencies. If you don’t use the US dollar, the US will go bankrupt immediately because it owes the world 14 trillion dollars which they cannot pay.

“They don’t have that much gold to pay. So if you switch from US to the Chinese currency, the US is going to feel very unhappy and I think some people had ideas about that and they have been taught not to have such ideas,” he said.
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@TaiShang would China force the adoption of Yuan someday?

 

[rambro]

One who relies on instigating wars/conflicts and toppling elected governments, it is only natural to have its influence diminished. The US regime had it coming.

 

[litman]

have been hearing about collapse of dollar for the past 20 years and still nothing has happened. secondly collapse of dollar means end of US empire. do they think that US will let it happen very easily and peacefully? they will leave no stone unturned in defending their authority in the world.

 

[punit]

how any one except Chinese govt will be benefited by this !

 

[MT Ali]

do they think that US will let it happen very easily and peacefully? they will leave no stone unturned in defending their authority in the world.

You are very right sir in saying the above. However, every human being in this world has the right to think, wonder and perhaps challenge in their mind "who benefits the most with the global trade currency being the green back?" and "why should it be this way?"

 

[powastick]

have been hearing about collapse of dollar for the past 20 years and still nothing has happened. secondly collapse of dollar means end of US empire. do they think that US will let it happen very easily and peacefully? they will leave no stone unturned in defending their authority in the world.

20 years ago they were a creditor nation, now they biggest debtor nation. They can't pay back. Although I don't doubt US will not go peacefully. Trump is proof.

 

[rambro]

have been hearing about collapse of dollar for the past 20 years and still nothing has happened. secondly collapse of dollar means end of US empire. do they think that US will let it happen very easily and peacefully? they will leave no stone unturned in defending their authority in the world.

of course all knows how US regime would react hence they have prepped their military n economic front
who doesn't know this, raise your feet.

 

[nang2]

how any one except Chinese govt will be benefited by this !

Chinese consumers will. Imports will be cheaper as other countries compete more for Chinese market in exchange of Yuan. That is how US consumers benefit nowadays.

 

[Hakikat ve Hikmet]

End of $ = end of the Empire = end of the Union

May God forbid...

 

[nang2]

This guy is a big mouth and playing a double game. I wouldn't take his words seriously.

 

[T-Rex]

If China insists on trading in yuan with her trading partners in Asia, Africa and Europe this will make that possible within the next five years. China should give special attention to india in this regard.

 

[Solomon2]

...end of US empire.

What, in your opinion, is the difference between a powerful nation and an empire?

 

[punit]

Chinese consumers will. Imports will be cheaper as other countries compete more for Chinese market in exchange of Yuan. That is how US consumers benefit nowadays.

except Chinese !

 

[nang2]

except Chinese !

It seems to you that Chinese consumers are not Chinese.

 

[punit]

It seems to you that Chinese consumers are not Chinese.

my god! i meant Chinese : govt+individual+etc etc . my point is why any one except Chinese should feel good if Yuan replaces USD.