61–70 of 76 posts
We seem to be at the middle stage for US and China, the former going down, the latter up. Top world currency change will come sometime.
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This. All the talk about about trade or industrial might is pointless if the Yuan isn’t fully convertible and the exchange rate floats. And China isn’t going to do that any time soon because of capital flight out of China and the artificially low Yuan pumps exports.
Good for their Citizens then. Take your time China, elevate your middle class with your economic might and show the world what you can become. Falling into the economic trap of what becomes open borders may not be in your favor past a few generations of the upper class.
I definitely don't think they should move to a convertible currency without a more stable financial system. They also rely on yuan being saved in China (because you can't invest your money easily outside) to drive cheaper investment capital in China.
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As opposed to China, who will probably invade pretty much every Asian country, and the only big unknown is the order. Western China is annexed. Nepal is Annexed. Hong Kong is annexed. Mongolia is 100% under Chinese control. Northwest Pakistan is 95% under Chinese control. Parts of Russia, Afghanistan, Tajikistan and other countries are under Chinese control to a greater or lesser extent, and all those countries have…
What a ridiculous take. > Hong Kong is annexed Hong Kong was taken over by the British after the opium wars. It never belonged to the British in the first place. > As opposed to China, who will probably invade pretty much every Asian country, and the only big unknown is the order. As opposed to the various US government who have overthrown countless foreign governments when those failed to align themselves with the U…
Isn't almost every country a result of "X took over Y during _ war?" and we recognize those borders everywhere?
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What a ridiculous take. > Hong Kong is annexed Hong Kong was taken over by the British after the opium wars. It never belonged to the British in the first place. > As opposed to China, who will probably invade pretty much every Asian country, and the only big unknown is the order. As opposed to the various US government who have overthrown countless foreign governments when those failed to align themselves with the U…
> Hong Kong was taken over by the British after the opium wars. It never belonged to the British in the first place. Isn't almost every country a result of "X took over Y during _ war?" and we recognize those borders everywhere?
Same with the war in Ukraine, even if Russia managed to conquer all of it, would the world recognize that Ukraine belongs to Russia? I don't think so.
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> Hong Kong was taken over by the British after the opium wars. It never belonged to the British in the first place. Isn't almost every country a result of "X took over Y during _ war?" and we recognize those borders everywhere?
No, otherwise the whole decolonization would never have happened. Same with the war in Ukraine, even if Russia managed to conquer all of it, would the world recognize that Ukraine belongs to Russia? I don't think so.
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Move to what exactly?
This article is explaining that yuan is making meaningful headway.
Would you agree to sell $10M in oil if you got paid in yuan that you're not sure you can convert into another currency? Where you're not sure the Chinese government won't change it's mind and dramatically change the exchange rate?
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This. All the talk about about trade or industrial might is pointless if the Yuan isn’t fully convertible and the exchange rate floats. And China isn’t going to do that any time soon because of capital flight out of China and the artificially low Yuan pumps exports.
Good for their Citizens then. Take your time China, elevate your middle class with your economic might and show the world what you can become. Falling into the economic trap of what becomes open borders may not be in your favor past a few generations of the upper class.
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This article is explaining that yuan is making meaningful headway.
The yuan is not freely exchangeable and doesn't float. How can a currency like that be the world's reserve? Would you agree to sell $10M in oil if you got paid in yuan that you're not sure you can convert into another currency? Where you're not sure the Chinese government won't change it's mind and dramatically change the exchange rate?
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The yuan is not freely exchangeable and doesn't float. How can a currency like that be the world's reserve? Would you agree to sell $10M in oil if you got paid in yuan that you're not sure you can convert into another currency? Where you're not sure the Chinese government won't change it's mind and dramatically change the exchange rate?
Why are you asking for my opinion when other sovereign countries are the ones issuing yuan bonds and migrating away from the dollar?
People are getting confused.
It’s like saying because I shopped at Walmart last week, Walmart will become the sole supplier of everything I buy.
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Why are you asking for my opinion when other sovereign countries are the ones issuing yuan bonds and migrating away from the dollar?
Issuing bonds and “moving away” aren’t the same as becoming the world’s reserve currency. People are getting confused. It’s like saying because I shopped at Walmart last week, Walmart will become the sole supplier of everything I buy.
Even a 10% decline in dollar usage is "moving away". Bit by bit, the rest of the world starts using alternatives. That's how the British pound went down from global reserve to 4% of reserves. It took 70 years for this gradual decline.