China is making it's move

Discussion in 'Economics & Trade' started by (original)late, Aug 25, 2020.

  1. (original)late

    (original)late Banned

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    China is laying the groundwork for making the Yuan the reserve currency, or possibly a basket of currencies to act as the reserve, to replace the dollar as the reserve currency.

    That will hit us hard if, and when, it happens.

    Countries don't like big financial changes, they are risky. But we've been pissing off most of the planet for the last few years.

    The first step is a stronger yuan, something economists have been suggesting China do for years. It makes a lot of sense, starting with improving the standard of living for it's people. It would also make improving economic ties with other countries easier.

    There is nothing dramatic here, but like compound interest, it may not start with drama, but that can change.

    https://asiatimes.com/2020/08/strong-yuan-becomes-politically-correct/
     
  2. bringiton

    bringiton Well-Known Member

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    The longer the inevitable removal of the dollar's exorbitant privilege is delayed, the worse the inevitable crisis will be.
     

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