Power vacuum developing?
Xinhua English
Commentary: U.S. fiscal failure warrants a de-Americanized world
Xinhua writer Liu Chang
See also Charles Hugh Smith, The Impossibility of China Issuing a Reserve Currency
The question of the RMB becoming a reserve currency boils down to this: does Chine export enough RMB via trade deficits to supply the global economy with sufficient RMB to provide reserves in size and be liquid and stable?
Those answering "yes, China does export enough RMB to act as a reserve currency" have to answer how a nation that imports a net $285 billion a year of other nations' currencies can possibly export enough of its currency to act as a reserve currency.
3 comments:
China is a major importer of currencies other than it's own.
It's RMB is designed for slaves and keeping them there.
Where as the Euro is designed for slaves so they can travel and feel better when they come home to Germany as Mosler would say.
I try to ask every "USA has to borrow from China" deficit hawker if they have ever seen a Chinese dollar, let alone accepted at a local gas station in USA ... they never can say yes.
What's the chance of deficit hawks or any American for that matter having seen a "Chinese dollar"?
I'd say Yuan in a million.
CNBC linked to this article. It better explains China's harsh response than much else I've read about the internet. Nothing angers the Chinese government than dissent. Their behavior is not unlike the US two party system did was with Snowden/Assange, showing extreme rhetoric and paranoia along with ridiculous over reactions on any challenge to their one party system.
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