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Of course you can buy things in China with RMB.What is the point of Chinese currency if I cannot use it to buy things in China ?
Eventually, only US stooges like Japan, India and UK will use US dollar as a reserve. Other countries will move away.
There is a good reason why the world was split into two economic blocs during the Cold War. It is because the two sides were ideologically incompatible. Leaving a degree of separation was beneficial to everybody.UK means Australia, Canada, South Africa, New Zealand and a list of other smaller slave nations that dont really have any say.. But Japan is the biggest buyer along China so it really makes a difference.
https://www.statista.com/statistics/246420/major-foreign-holders-of-us-treasury-debt/
lol@ Cayman islands
What is the point of Chinese currency if I cannot use it to buy things in China ?
Its not just about china and there is no guarantee that end of dollar means rise in RMB. This is one of many possible outcome.China would gladly see its dollar reserves vaporize overnight if that means the dollar's reserve status has ended with a batch of currencies including RMB taking its place.
Its not just about china and there is no guarantee that end of dollar means rise in RMB. This is one of many possible outcome.
Furthermore, if reserves of all country deplete over night then it almost means they r destroyed and u will loose your customers.
In short its a real complicated stuff with lost of possible outcomes. So better be a slow and steady change rather than an overnoght catastrophe. However this is coming. USA economy is no more sustainable with such deficits
The more important thing is if the Chinese want people to hold their money or not? This means that the Chinese can't devalue their currency at their will which is one of their means of being competitive in the market. Then there is a local debt pile-up as well. At the moment they and a few countries are decoupling transactions -this will only help the dollar find its "fair" value.This depands on a lot of factors. Changing status quo is a painful thing. Even China do not want a sudden collapse in dollar due to trillions of treasury bills it owns and dollar reserves they have. Similar is the situation with outer power countries such as EU, Australia, Japan, Russia and even India.
Any threat to dollar and their reserves will evaporate. In short its a marathon and not a short race. The whole objective of BRI and CPEC is to have direct links with the trading nations. In the initial phase the links are being created by land and sea network in the next phase (which has already initiated) the links will be created in financial systems and banks.
Another way which could be more painful is a big war against USA or any big players like EU leaving US can result in a heavy and quick blow.
But remember in the process most of the common people will be net looser. Our dollar savings will evaporate.
Global reserve currencies:
IMF data: https://data.imf.org/?sk=E6A5F467-C14B-4AA8-9F6D-5A09EC4E62A4
Get the memo?
I do not see Chinese RENMINBI overperforming EURO anytime soon, let alone USD.
All this talk about collapse of USD does not make sense unless Americans want it to but WHY would they?
USD is going very strong and its strength has defied all speculation from time-to-time.
SO WHAT IS HAPPENING?
USA and China are not on good terms for now. American manufacturing base is under pressure to REVISIT its GLOBAL SUPPLY CHAIN and move manufacturing out from China although some will retain manufacturing in China because this country in itself is a huge market which shall not be missed. However, USA by and large will decouple its economy from that of China to the extent possible.
The aforementioned moves will have a significant impact on China and it is looking forward to diversify its economic model in which manufacturing base will have a reduced share and contribution. China is also looking forward to offset American decoupling strategy through BRI which will enable China to expand trading via Chinese RENMINBI but depend upon what terms Chinese offer for trading in this capacity.
Remember this: a very high-value Chinese RENMINBI will erode Chinese manufacturing competitiveness, therefore, a strong USD works in the favor of China.
Chinese strategy should be to push for a new bilateral deal with USA. Wait for the elections to pass and then do the needful.
----
My apologies to proponents of USD collapse - you will be sorely disappointed.
USD collapse will bring about a GLOBAL DEPRESSION the likes of this world has never seen before, and will be sure shot way for starting World War III and many will loose.
There was GREAT DEPRESSION before World War II. Be careful what you wish for.
It was similar when the pound was the world reserve,but world moved on pretty quick,no free sovereign country would agree to operate under the Swift-dollar hegemony ,thus being on the mercy of the US for their trade and economy.Global reserve currencies:
IMF data: https://data.imf.org/?sk=E6A5F467-C14B-4AA8-9F6D-5A09EC4E62A4
Get the memo?
I do not see Chinese RENMINBI overperforming EURO anytime soon, let alone USD.
All this talk about collapse of USD does not make sense unless Americans want it to but WHY would they?
USD is going very strong and its strength has defied all speculation from time-to-time.
SO WHAT IS HAPPENING?
USA and China are not on good terms for now. American manufacturing base is under pressure to REVISIT its GLOBAL SUPPLY CHAIN and move manufacturing out from China although some will retain manufacturing in China because this country in itself is a huge market which shall not be missed. However, USA by and large will decouple its economy from that of China to the extent possible.
The aforementioned moves will have a significant impact on China and it is looking forward to diversify its economic model in which manufacturing base will have a reduced share and contribution. China is also looking forward to offset American decoupling strategy through BRI which will enable China to expand trading via Chinese RENMINBI but depend upon what terms Chinese offer for trading in this capacity.
Remember this: a very high-value Chinese RENMINBI will erode Chinese manufacturing competitiveness, therefore, a strong USD works in the favor of China.
Chinese strategy should be to push for a new bilateral deal with USA. Wait for the elections to pass and then do the needful.
----
My apologies to proponents of USD collapse - you will be sorely disappointed.
USD collapse will bring about a GLOBAL DEPRESSION the likes of this world has never seen before, and will be sure shot way for starting World War III and many will loose.
There was GREAT DEPRESSION before World War II. Be careful what you wish for.
Much of those US dollars reserves are held by China. If China doesn't want to hold US dollar reserves, the graphic changes overnight.Global reserve currencies:
IMF data: https://data.imf.org/?sk=E6A5F467-C14B-4AA8-9F6D-5A09EC4E62A4
Get the memo?
I do not see Chinese RENMINBI overperforming EURO anytime soon, let alone USD.
All this talk about collapse of USD does not make sense unless Americans want it to but WHY would they?
USD is going very strong and its strength has defied all speculation from time-to-time.
SO WHAT IS HAPPENING?
USA and China are not on good terms for now. American manufacturing base is under pressure to REVISIT its GLOBAL SUPPLY CHAIN and move manufacturing out from China although some will retain manufacturing in China because this country in itself is a huge market which shall not be missed. However, USA by and large will decouple its economy from that of China to the extent possible.
The aforementioned moves will have a significant impact on China and it is looking forward to diversify its economic model in which manufacturing base will have a reduced share and contribution. China is also looking forward to offset American decoupling strategy through BRI which will enable China to expand trading via Chinese RENMINBI but depend upon what terms Chinese offer for trading in this capacity.
Remember this: a very high-value Chinese RENMINBI will erode Chinese manufacturing competitiveness, therefore, a strong USD works in the favor of China.
Chinese strategy should be to push for a new bilateral deal with USA. Wait for the elections to pass and then do the needful.
----
My apologies to proponents of USD collapse - you will be sorely disappointed.
USD collapse will bring about a GLOBAL DEPRESSION the likes of this world has never seen before, and will be sure shot way for starting World War III and many will loose.
There was GREAT DEPRESSION before World War II. Be careful what you wish for.
Friend,Much of those US dollars reserves are held by China. If China doesn't want to hold US dollar reserves, the graphic changes overnight.