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China is ditching the dollar, fast: Officials believe the yuan has come of age

economist.com

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Re: China is ditching the dollar, fast: Officials believe the yuan has come of age

#71

Post by refurb »

nine_zeros wrote: post #70
refurb wrote: post #69

Earlier quoted context omitted.

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.

A lot of transactions moving away does not mean moving away entirely to a sole new supplier. 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.

You started with transactions then moved to reserves.

Tell me the missing piece.

Re: China is ditching the dollar, fast: Officials believe the yuan has come of age

#72

Post by nine_zeros »

refurb wrote: post #71
nine_zeros wrote: post #70

Earlier quoted context omitted.

A lot of transactions moving away does not mean moving away entirely to a sole new supplier. 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.

You started with transactions then moved to reserves. Tell me the missing piece.

The missing piece is that transactions lead to reserves.

Re: China is ditching the dollar, fast: Officials believe the yuan has come of age

#73

Post by refurb »

nine_zeros wrote: post #72
refurb wrote: post #71

Earlier quoted context omitted.

You started with transactions then moved to reserves. Tell me the missing piece.

The missing piece is that transactions lead to reserves.

No they don't. A business selling products or services and receiving a foreign currency, doesn't lead to higher foreign reserves for the country.

Care to try again?

Re: China is ditching the dollar, fast: Officials believe the yuan has come of age

#74

Post by atonse »

rdm_blackhole wrote: post #64
atonse wrote: post #63

Earlier quoted context omitted.

> 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.

Decolonization in most cases required the colonial power to give independence back to each country.

It wasn’t that a bunch of countries magically started to recognize India as an independent nation and everyone just went along, right?

Re: China is ditching the dollar, fast: Officials believe the yuan has come of age

#75

Post by nine_zeros »

refurb wrote: post #73
nine_zeros wrote: post #72

Earlier quoted context omitted.

The missing piece is that transactions lead to reserves.

No they don't. A business selling products or services and receiving a foreign currency, doesn't lead to higher foreign reserves for the country. Care to try again?

I don't want to try again for someone who doesn't want to research for themselves how foreign countries accumulate reserves. Hint, you literally explained it.

Re: China is ditching the dollar, fast: Officials believe the yuan has come of age

#76

Post by spwa4 »

atonse wrote: post #74
rdm_blackhole wrote: post #64

Earlier quoted context omitted.

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.

Decolonization in most cases required the colonial power to give independence back to each country. It wasn’t that a bunch of countries magically started to recognize India as an independent nation and everyone just went along, right?

The India that gained independence is India + Pakistan + Bangladesh + some rounding errors.

The independence of India was immediately followed by a sectarian war between muslims and hindus in India (started by muslims) which by a number of measures was bigger than WW2. Gandhi immediately turned into the commander-in-chief in this war, a war where millions died, and Gandhi came out on top.

After which Pakistan, now independent, started another war with yet again millions of dead, against "East-Pakistan", to prevent their independence, now known as Bangladesh. This war was a continuation of the partition wars in many ways.

Pakistan is not far from starting another of these wars, by the way, against "Balochistan", the south west of Pakistan.

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