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There Can Be Only One: China Sovereign Wealth Fund Says Renminbi Will Become Reserve Currency
First the CIC stirs havoc in Europe, saying it would rather invest in Africa than in Brussels finmin summit caterers, which at this stage in the business cycle are the most profitable corporation imaginable... and now this:
- CIC'S JIN SAYS RENMINBI WILL BECOME GLOBAL RESERVE CURRENCY
Naturally, to parahprase titles of cheesy 80s movies, there can be only one.
So what would happen to the current one? Maybe the same as what happened to all the prior global "reserve" currencies:
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Who want's to live forever?
It will be a fight to the death.
Who will cut off Ben's head?
As it is done, play this: http://www.youtube.com/watch?v=VEJ8lpCQbyw&ob=av3e
He'll cut his own head off.
Well, if everybody is just a Ben Bernanke and Chuckie Schumer peon, why should anybody care?
euro is dead. anyone holding significant amounts of that shit will get creamed.
Highlander cheezy? May the Kurgan hack yer head off
In this case the Kurgan may hack it's own head off. The only thing more FUBAR than US and European banks are Chinese banks.
We had a good run. My guess is we won't go down without a big fight, after all the US military is the only thing backing FRNs now.
Backing the RMB with gold? The RMB becoming the new reserve currency? If backed as in redeemable china will shortly find out the issue Nixon did. If not backed in redeemable then it's no different than any currency today. In regards to new reserve currency I gotta say I'm curious as too who on the planet would feel better holding RMB than euros or USD. Granted neither of the latter are perfect but much more sound than the RMB. If any country had a basis for a reserve currency it would be Russia and Russia knows all too well the pitfalls of having reserve currency and know they can easily outweigh the benefits if your not careful.
Personally I wold love nothing more than too see countries move away from the USD. We have enough military power to not have to worry about other countries military expansion, enough oil that if we encased good energy policy we would book, the best food production to consumption ratio in the world, and seem to be ready to get our jobs back. The RMB going reserve currency would all but guarantee our jobs came back home.
Sadly I wouldn't place bets on china gettin reserve currency status based solely on production that only exists because their currency is weak as shit which would change the minute they got that status. A bit of knowledge combined with analytical thinking is enough to call bullshit. I swear sometimes this website seems its just a KGB plant. I'm all for informing and providing knowledge but it seems this sight has turned from an economic website to a hard promoter of the downfall of America. The scary part is the comments seem to not only agree but also encourage said thoughts. If any of you think Russia or china would be a better world power than the USA has been I suggest a little reading of history.
About a week ago I started commenting again to a lot of readers dismay. A few thousand down arrows later you will all be happy to know I'm not commenting anymore. I could care less about the down arrows, or the permanent bull attitude towards certain assets, or even the lack of thinking so many here display. What I do care about is the day to day dealing with so much desire to see the downfall of a nation that defied history. If you think we could have these discussions if history had not turned out the same way for this country you are plain and simple ignorant.
Some days I almost wish what so many of you espouse actually came true so you could realize how wrong you are. How quickly you would look back and wish things hadn't changed. The problem of course is that not one of you would still comment here and the entire world would suffer especially the USA.
My last parting comment is I suggest actually reading some economic treatise, theory, papers, and history. I get the feeling so much of what you all purport to be knowledge is actually gleamed from someone else's conclusions from what they discern. The comments I have received in regards to my comments clearly show tis is the case. I apologize to the 5 or so posters who will be offended by this who my comments are not meant for. I am so sad I live in a time and place where knowledge is so accessible and acceptable yet so many choose to stay sheeple. Don't think that by reading this sight and blindly buying metals and urging the downfall of this great nation you are not the same as someone who gets all their news from fox news channel. You are the same. Good day and best of luck.
Sorry one last comment I forgot I had to make from the other day. This advocating of holding silver for when hyperinflation hits is arguably the dumbest thing I've heard. Silver was for a short period of time a monetary metal and won't be again due to lack of how much their is. As a commenter the other day clearly stated when hyperinflation hits it is horrible for business. You are attempting to profit from holding an industrial metal In a circumstance that would be horrible for industry. I said this many times and will continue to say it. If you want to prepare for hyperinflation land and gold are the assets you want. They are wealth. They are truly inflation protected assets in any type of climate. Notice chinas slowdown in lock step with the difference in drop between gold and silver? Best of luck to you all.
ahmeexnal, love your comments, but the euro isnt going anywhere. it will become leaner and meaner when the dust settles....
Sure enough, after they default on all thier debts it may still be there then we can call it the Papiermark
Sure, once gold priced in EUR goes to 3 trillion, they will reissue the currency as deutscheuro.
not before he eats the tail.
I'm pretty sure the tail is on our menu.
WWiii right around the corner. At least that will take care of our unemployment problem.
And our overpopulation problem. Fuck I've got anxiety from this "new economy".
I wonder how right you may be SilverTree. For the historians in the room, how many of these currency transitions happened peacefully and voluntarily vs. how many were connected with a major shooting war?
James Rickards "Currency Wars; The Making of the Next Global Crisis
http://youtu.be/h6hvjJeyZi0
Heh, Jim Rickards looks like "Kevin" from The Office.
Porter Stansberry is convinced China will use Gold to back their currency. Im reading Currency Wars now too, maybe they are planning for the eventual end of the currency wars??
comments disabled?! how can i take this youtube video seriously?
The ultimate rent seeking...
Why should the reserve currency be the dollar or the renminbi? Why can't it be the silver coin that our forefathers used right across Europe and Asia for centuries?
It seems to me that the fiat toilet paper which has been used to enslave the world is about to be flushed just before it is used to wipe some bankers off the arse of the world.
Peter Pan - you are right.
Why indeed? Why not just make gold or silver the reserve currency?
Oh, right. There's the bankers, the greedy politicians and the military-industrial complexites ... all of whom would no longer be able to continue their choice of perversion as an excuse for making a living.
The only reason why the USA is not invading China, is because China has about a trillion dollars worth of USA bonds. Every country that has threatened the petrodollar's influence has been invaded by the USA (think Libya, also Iran to the way it is going). China though has leverage over the USA, but when the leverage ends it will be a fight to the death...
Nukes are the reason the US will not invade China.
Our political leaders are willing to fight wars with imaginary enemies like Somalia and Afganistan where they are assured of a draw. The problem with politcians is that they are are only looking to get reelected instead of being statesmen.
The Renminbi...
Coming to an AMC theater near you!!
Now showing: "The Chinese connection"
did not see the Roman currency in that historic chart..
http://www.zerohedge.com/article/history-worlds-reserve-currency-ancient...
This is a very significant development and explains why China has been hoarding massive amounts of Gold. The fact that China is saying this outwardly shows how close they are. My guess is the next step is to announce a gold backed currency that people will flock to amidst the sea of fiat.
Not good for the US, but it will be interesting to see what happens to the value of china's new currency when they back it with gold and unpeg from the US Dollar. My guess is it will go through the roof and absolutely kill their exports. They better be prepared to have more consumption at home or this little gamble may result in massive riots and a revolution, which would immediately kill their desire to hold the world reserve currency!!
Things are really starting to get interesting now!!
A simple question, what was the rate of growth in China's money supply the past few years? High double-digits if I remember. And their money is going to be the new global reserve currency, the dependable store of wealth that the rest of the world will be happy to hold? Good luck with that dream China Sovereign Wealth Fund.
Riots,they will step on their own in a heartbeat as they shown in past.
Seems like everything I use is made in China. It will take time for us to get up and running, until then we may have to pay for our goods with gold. BTW we are not the only ones that buy almost everything we use from China. When the bonds are due, can they demand gold or will we say FRNs are good for all debts, public and private. I remember when we loaned Mexico the money to pay the interest the money we loaned them. As I recall that did not end well. Now the shoe is on the other foot and it's China that is loaning us the money to pay the interest on our debt.
China the cultural economic sinkhole of planet earth will grind everyone into raw materials only to shit you out....
You may want to include fee fi fo fum...
Keep printing... grasshopper...
The Journey of a currency devaluation starts with the printing of a single dollar...
I seek unflouridated water...
It's better to burn out than to fade away.
the king is gone but he's not forgotten
...eating fried chicken with his regicidal friends?
+1 for that quote my friend. Saw him live with Crazy Horse many moons ago - he puts on a mean show.
So sayeth the Courgan.
Someone caught the Cobain reference, someone caught the Neil Young reference, and you even caught the Highlander reference (which was the one I had in mind actually).
ZH is like some kind of living time capsule.
some things are timeless...
<bow>
Def Leppard - Pyromania
I'll stick to precious metals, but thanks for your input.
Yup, a communist country will have the reserve currency.
The chinks aren't communist, they're corpo-klepto-facists, just like us...
exactly.
True!! We use the two-party - one-party state, they use the one-party - one-party state.
Closet capitalists ?
When is the coming out party ?
with less rules to shake off, and they dont have a social net to catch the poor, work for next to nothing. They got that going for them.
Instead of a fascist one that manipulates its markets? By all accounts, Hong Kong markets are freer.
More free is when your guard is in the closet pointing the QBZ-95 at your head through the louvers. Less free is when the guard is in the corner of the room in full sight.
Very nice.
Those movies were cheesy?
what the Hell is a Renminbi? is that some alien currency?
yeah, i think it should be called what it use to be called; yuan.
yuan is the denomination, same word as the Japanese yen, Korean won. The currency is the RMB.
yens and wons are the currency and denominations.
Ren Min Bi translates: Ren "human/people", Min "citizen", Bi "money"....AKA "The People's Money"
In Latin it is called argentum, that is my people's money.
the romans had no local gold thats why it was argentum and not aurum.
No gold, you say?
What about the tons of gold carried back to Rome from destruction of the Temple at Jerusalem?
See Arch Of Titus , upon which in stone relief is carved the sight of jewish slaves carrying the stolen gold to Rome. That gold then was used to fund construction of the Roman Coliseum. Now that's loot to be so proud of....not
The Hebrew Zealots of that time later were transformed by Roman/Greek revisionist "historians" into the "early Christians".
Any wonder why The Dead Sea Scrolls were suppressed for 40 years? And still are kept obscure? One J.A.Ratzinger spent years as head of church authorities keeping established doctrine "pure". He of the Dominican Order, which gave birth to the Spanish Inquisition, whose horrors/torturous interrogations gave rise to the U S Constitution's Fifth Amendment against [forced] self-incrimination.
Yes but that was early in the empire, (all that gold). In the end they were devaluing their coin to the point the soldiers would not fight for the smaller clad coin pay.
and towards the end they were paying them in licorice root.
all of those are european countries. maybe it's time for asia rising.
Inevitable?
oh the ephemeral hard-ons that we all linger after; why oh why does life flee away. Achilles and Hector will never agree who is the best. Two kings will never sit on the same carpet let alone fly on one together, like Castor and Pollux did in the Argonaut's voyage.
Al-Queda in Bejing!!!!
Geithner approves apparently. F'ing asshole.
http://finance.yahoo.com/blogs/daily-ticker/geithner-thinking-treasury-grants-china-direct-access-buy-143939103.html
And I for one welcome our new alien overlords.
- Timmy
http://www.youtube.com/watch?v=Gtla-1WHofY
Be careful what you wish for
Hmmm. If the Chinese are waiting to reach parity to "actual" gold reserves of western nations before having a gold backed yuan, what are they waiting for. They already have over 1000 tons; the same amount that all of the western CB vaults have been fractionalizing, swapping and leasing, hypothecating and rehypothecating for the last 10 years; the rest has gone to the Rothschilds.
They have the same problem as the US ... a gold standard would quickly give oil producing countries all the gold.
So they'd much rather have a paper reserve currency and get the same sweet deal the US has had since the 70s.
Shhh....
There may still be one or two oil-producing countries who haven't cottoned on to the whole "Petro Dollar" scam!
Don't let any more of the cat out of the bag than you have to!
They only acepted dollars since miners will take USdollars for gold. There is more to the picture, look at Saudis' gold.
Marco,
They have the same problem as the US ... a gold standard would quickly give oil producing countries all the gold.
NOT if it was a currency backed by gold, but not redeemable in gold.
It's only by allowing redemption that you have a backed currency, because it's the only way you can guarantee they aren't issuing more notes than there is gold to back them.
See Nixon, 1971...
Inside Day setups...
http://capital3x.com/think-tank/inside-days-progression/
cool stuff
I don't for a moment believe that either the U.S or China will be the world's reserve currency.
Would you care to elaborate? The US dollar IS the world's reserve currency right now. What do you believe will be the reserve currency then?
I believe that the world will move to a a system like SDRs. Of course the dollar will have to be revalued,and that will be pretty painful for those not prepared.
Not SDRs, but likely bilateral currency swaps. And it is already happening.
I don't for a moment believe that either the U.S or China will be the world's reserve currency.
The Dinar?..................WHO told you!
I heard rumours that it's going to be a cement-backed reserve currency.
Judging by the trajectory of the US Dollar, I'd say we already have a cement backed currency... Gravity sucks...
Cement has no counterparty risk.
I don't think you can eat it, though.
First a good Yuan, then a snooze.
"Reserve currency" is a poison chalice. Don't think they'll succeed getting another country to volunteer for it, after seeing firsthand what it's done to the US. (And the attempt with the euro.)
Gold is already a universal currency; something similar may be said for other assets. A stable currency standard measured in gold and other assets may be co-ordinate into some global measuring scale, as some Saudis and groups like the IMF have talked about, but I doubt the "oligarchs" will succeed in uniting their interests behind something like that.
I believe we've hit Peak Globalism and are on the way back.
Poison chalice? You mean the gift that keeps giving decade after decade? I can't be the only one who notices the EPIC trade imbalances to the US funded on the back of the dollars reserve status. In effect America has been able to get goods and services in exchange for slips of paper, good work if you can get it. Sure it hollows out the country, but it's not like that can't happen without the reserve currency look at the UK the past 50 years. While I doubt that China will be sporting a global reserve currency anytime soon, every nation should be hoping to pull it off, who doesn't love being able to get their money for nothing and chicks for free?
Maybe the Israeli Shekel should become the next reserve world currency so that the Jews could, as you say, "get goods and services in exchange for slips of paper"... Oh wait!
"Sure it hollows out the country..."
That's my point. "Money for nothing & chicks for free" doesn't actually work as an economic model, in the long term. Mish has a lot to say about why no-one wants to be the next reserve currency, for example, here:
http://globaleconomicanalysis.blogspot.ca/2011/04/bogus-threats-to-us-reserve-currency.html
Takeaway point: 'The fact is, for all their bitching, nearly every country on the planet does not want to relinquish their "export growth model".'
Hence the global "race to the bottom"...it's all about productivity, and exports. "Reserve" status is a built-in handicap on that. All you can really do with it is export inflation, which only kicks the can for awhile. (At great eventual cost later.)
It's only short-term that there are any benefits to having your fiat as the "reserve", but long-term it's a doomed model for the country that gets it. China and other countries have long understood that it's all about exports.
Poison chalice. Tastes great at first but it'll kill ya. I still can't see there being any single national "reserve currency" again for a very long time.
You assume that this free money must go towards consumption goods. Lets imagine for a moment that the printed money was used to procured productive capital and property overseas. A country could under this scenario boost productivity through automation, have a vast welfare system for those to unskilled or unmotivated to work in the 'new economy', and buy up the rest of the planet if they so chose. You make the argument that it destroys a country, the model as we have seen it does. However, who cares? Really, who cares? Maybe a few 'super patriots' out there, who's own family came from somewhere else. 40 years on easy street is a long time, and all one needs to do is simply exit before the bottom falls out. Countries get hollowed out and eaten via many methods, this is just one of them. A nation with the reserve currency in effect gets to tax the rest of the planet, sure that money can and most likely will be wasted but it's one hell of a ride.
While I agree that it's unlikely that there will be a single nation reserve currency in the near future but for different reasons. Why should a country accept being taxed by another? If a nation wishes to devalue to remain competitive, how much better would it be for the ruling class in that nation if they get to spend it rather then ship that purchasing power to the reserve currency nation? I can assure you the CCP would much rather spend that money on their own lavish lifestyle then fund the extravagance of the USA.
Aside of fx markets, debt markets, banking assets-to GDP, and international trade in general, the dollar as a reserve currency is backed by the supply of "confidence" it provides.
I'm guessing the number of navy carriers along the oil transport routes can't hurt either.
This threat is ultimately hollow. Let us assume for a moment that the US did go with the gun solution, how will that go over? "You all must give us free shit forever because we have nukes and aircraft carriers!" Well lordly Lou, other major powers have nukes and ballistic subs! Unless the USA is willing to engage in ultimate nuclear blackmail and threaten global extinction I don't think they are holding the right hand. Look at the political class, I'm not sure they have the stones to pull off a "Pay us or we kill all living things" and even if they could, for how long?
They don't have to threaten global extinction - the US only have to threaten the extinction of the ruling classes of major OPEC countries by withdrawing their support and offering it to a new set of would-be rulers who agree to continue accepting it.
Once most oil has to be paid for in USD, the rest falls into place. THIS is the big threat of Al Quaeda; killing a few thousand New Yorkers is as nothing compared to them otherthrowing most of our satraps in the middle east (at least, in the eyes of our 'leaders') and then saying, USD? Sorry, we only accept... gold.
The US has been putting makeup on for so long until you have to clean it off:
www.milfmakeup.com
If I'm not mistaken we have computers now. They couldn't care what currency you use for anything as long it can be represented in 1s and 0s.
Reserve Currency Status is a political tool.
He he he.... :)
Tough to keep a reserve currency when your balance sheet is stuffed with US IOUs. try dumping some US bonds, China. Maybe a positive capital account number might be useful in being a reserve currency.
The word is that Bo Xilai was the Rothschild's man in China, and that the British agent who was recently killed there was a key go-between. Both are out of the way.
The West threatened to kick China out of Swift before Bo was neutralized. They overplayed their hand at a very bad moment. Word is, the new faction in power is in opposition to the Western banksters.
The new regime is going to use a gold backed Yuan to unseat the "dollar", and the dark entities behind the Western "banking system". Let's see how this reading of the tea leaves tracks with developments. This one is very favorable to it.
Stop. Think. China now has balls of titanium. They are openly declaring financial war. WTF? They must think the US is incredibly weak (notwithstanding Obama the punk). What do they know that we don't? What has changed?
That's hilarious!
I'm sure a conspiracy can be wrapped around every possible event, fictional or real.
Keep churning out those stories, it's all very funny.
one species one niche. nope, one specie one niche
Ah yes, because the PBoC isn't printing, FAIL. Got physical?
In spite of the us dollars faults our system is more open and transparent and price discovery is allowed
China has a long way to go in order for the world to trust a fixed exchange rate currency with opaque, crude, and primitive central banking policies.
Probably will be the sdr plus gold as the dollar successor
"In spite of the us dollars faults our system is more open and transparent and price discovery is allowed"
Are you kidding me with that statement? Tell me what is the fair value of treasuries?
Hell if I know
But what is the fair value of the yuan or remnimbi bonds? Do they operate in as open and transparent way as we do?
right now the world shows more confidence in dollar bonds than yuan bonds and openness transparency and policy clarity are important in developing trust. The chinese dont have it yet
The dollar may be an ugly girl but still seems to be the least ugly of all those nasty bitches out there
http://www.youtube.com/watch?v=Gtla-1WHofY
SWARM!
I just hope you've got a sub-woofer...
http://www.youtube.com/watch?v=KandVSZbZAM
Excellent short presentation about global demographics (uncorellated to religious regions) plateauing at 10billion...
Check it!..
http://www.ted.com/talks/hans_rosling_religions_and_babies.html
Thanks for that link
"The Renminbi will collapse into a heap,as worthles as Chinese baby girls"
If their currency is anything like their extremely shitty products then nobody will want to use it.
Besides it'll probably be toxic and fall apart after a week.
More rice for the Protelariat. No meat for western running dog lackey imperialist fiat stooges. No pudding, either.
The advantage of being the one and only gold-backed currency is so huge, that it is amazing no country has taken the step. For example, Greece could pull a completely 180-degree turnaround if they defaulted on their debt, then adopted a full-bore 100% gold backed currency (with no fractional reserve practices). This shows how utterly and totally the NWO / globalist totalitarians control all nations of the planet. If they didn't, some country would adopt gold == money and instantly become the next Switzerland or next USA (depending on how big is their country).
If gold were such a great currency someone would be using it. Gold is a terrible currency from a public policy perspective but will probably always have a quasi currency role
Human psychology is such that prices are sticky downwards which means greek markets wouldnt clear efficiently with a gold backed currency that soared in value and economic growth would slow
Questions for our China friends:
- Can the Chinese Financial and Legal system guarantee (without war) the property rights of individuals on assests held under Chinese vs US law.
- Will individuals or governments engaged in commerce anywhere on this planet rely on the legal, military, and financial protections that China can provide? In other words, how will China be trusted vs. the United States, Western Europe, Nato, etc.
Yes because the Renminbi is a fiscally sound, well structured currency...Ummmm, and wait, stop, don't tell me, that all of the Chinese Credit gtd companies will support it - PLEASE - Word of advice to China....you might have currency reserves but the 2 major positions are excessively overvalued & your kleptocracy isn't trusted by the RoW's kleptocracy - so you lose....Wait until your provincial debts implode & your banking schemes hemmorrage - The US has scoundrels who are far too experienced to allow China to take the reserve currency status slappy...moreover, China has NO NATURAL RESOURCES...import away bitches...trade wars work both ways - but I do give CiC's FinMin Jin (Sorry just had to write that) kudos for the bravado....I vote for the Chilean Peso - the last currency to be backed by Gold
Thats why they are buying everthing and making friends in the oil sands, africa and S. america. So when it does hit the fan they have resources outside the country. It's really smart, because it doesn't matter what they buy it for (chinese taxpayer pays) but that they do have resources.
Western companies cannot compete against a country, especially when they get their money for free. Same thing happened with UK- companies like the English East India Company forcing opium on china backed by British navel ships.
At least the Chinese have some manners.
Good point - However, I have a hard time believing that the Chinese could float the Yuan globally as their sphere of control would be compromised - not that the US deserves to be the World's reserve currency for its misadventures into financial engineering, however, if China takes out Goldman Sachs they would secure my vote
"the iron bowl"
of fiat...
So all the Brits do is play golf and drink beer at the Pub - not bad for losing your reserve currency. Add a few good looking ladies and how could you complain. Bring it on China ...............
stateside
Yeah... There was that whole "World War" thing though and decades of rationing etc.
Errr wait a sec; I thought FaceBook was going to be the new Reserve Currency. No?
http://vegasxau.blogspot.com
FFB: Facefuck Bucks
You're all fucking wrong...
Next reserve currency is the New Drachma
Reserved for fire lighting, toilet roll, etc
Stairway to hell...
I think this is really where it's all headed to and it's only a matter of time to be honest. The RMB doesn't need gold backing to be a success either. The largest fear of fiat for a reserve currency is inflation. If inflation get out of control, then it's all over, of course, this can be greatly mitigated by being a reserve currency in the first place as your inflation is outsourced.
As it stands now, high inflation in China would be a massive problem. Even moderate inflation causes some problems. It is in the interest of the government to keep it under control as much as possible and no amount of bullshit convinces the public of what is real.
Unseat the dollar? No, not right away at least. Euro is a reserve currency, as is the Yen and Swiss Franc. China is looking to be added into that basket and it actually makes total sense. China is a major trade partner and still growing econmic giant. Keeping cash on hand of your trading partners helps mitigate risks and make trade much easier. It also poses an econmic threat to the US, as it's generally going to be the largest holder of market share that will take the largest hit.
Gonna happen, get used to the idea. I could easily see a counter-risk agreement happening requiring significant reserves of RMB in a given economy to open up free conversion access. Baby steps to an actual float, but no free float will ever be allowed until China has ensured that reserve status.
China has got bigger problems it needs to solve first like water for Beijing....
This is all just chest thumping for the illiterate nationalist masses.
That's what that water transfer thingy is all about. Despite the propaganda blasted about it in the west, it's actually going rather well. As it is an entirely controlled and planned irrigation system, quality will be relatively easy to maintain once it's all in place and good to go.
If the countries down south get fiesty, China can just divert their water too. Pretty sweet eh?
Haha, we'll see about that. That water will get very expensive... They may be better off by buying bottled water from Canada.
What if it isn't the US that China is talking about? What if it is the Euro?
Samoan Tala ftw.
The world needs to reject the idea of ANY national currency ever being the reserve again.
The US earned the position in 1944, before the end of WW-II. America was in the process of defeating two very powerful criminal states on different sides of the earth to the benefit of all humanity. We were about to become the most powerful country the world had ever known.
In addition, we have proved to be a worthy custodian of the reserve currency. Although many countries, especially France, chaff at the idea of vulgar Americans dominating world affairs, it was simply inevitable after WW-II. In the big picture we did a pretty good job (Vietnam, Iraq-II being notable lapses). The world is VASTLY better off today than anytime in history (unless you think we should all become hunter gatherers).
The suggestion that the RMB could become the reserve is beyond ridiculous. They havne't come close to earning the right. And there is no suggestion that they will anytime in the next 100 years. They're such greedy little pussies they won't even let their currency float. They are a communist authoritarian state that has no right to assume that that responsibility. Besides, the world would never trust them long enough for it to happen.
What the Chinese have accomplished is to be praised and admired. And though 300M+ Chinese have become very proseperous, that leaves 1B in far less prosperous circumstances. All they've done is manufactured a bunch of junk for the world. They don't invent it, they don't design it, they just make it according to spec. using slave labor. This is NOT a model for the world.
Having said that, the time for the dollar reserve is coming to an end. The Triffin Dilemma guarantees that being the global reserve puts too much pressure on a currency and eventually destroys it. The time where it benefits anyone other than US banks is long since past. America should get out of it while it still can.
The only global reserve currency that can replace the dollar is gold. It is not printed by any government, indeed its status as money cannot be granted or revoked by any human authority. If we've learned anything in this crisis, it's that no human authority can be trusted with a printing press. Fiat currency is created by issuing an equal amount of debt, so printing money is essentially printing debt which quickly crushes any economy. Gold will be accepted by all states because it's unencumbered, it is available to all without conferring advantage to anyone.
Even the Chinese will accept this.
The only problem is they make every fucking shit you bought in the past 2 years, except that FB stock. It doesn't matter if they didn't invent it or design it; 99% of Americans aren't designing or inventing jack squat either. That vicarious living, it's bullshit. But the Chinese are making things, while we have a bunch of Outlook email pushers who think they're entitled to a 2 car detached house for nodding off in meetings.
guinea
See my post ABOVE.........................why do you think what your saying is correct.(because it mostly is)
The truth, not for China, China did NOTHING that WE did not let them do.
We let Japan do it before China.
BY Design.The US Mfg base was DESTROYED on purpose.................by the United Nations, and the PTB that rule this world for NOW.
Had tariffs been put on all imports, our base would never have changed, and we would have REMAINED the manufacturing giant of the world.
But,that was not the plan........................J.D. Rockefeller,in '48/9,designed the downfall of the USA.(of course not alone)
Globalization, reason (all here know) was supposedly to stop all wars, and do away with Nationalism, and borders.
As for no designing or inventing, WHERE is the payback?............we are fully capable(as long as the playing field is level.)
Free Trade, was to be THE end all and Utopia for the planet.
Unfortunately for them, GOD has other plans.
"In addition, we have proved to be a worthy custodian of the reserve currency"
You are kidding me right? We defaulted twice on our currency with both Roosevelt and Nixon. We export our inflation to other nations, run up astronomical debts, and the war machine to keep the ponzi fiat alive is responsable for the death of an untold amount of people.
That is not what I call a trust worthy custodian.
You actually took time to write all that shit?
The US didn't "earn" shit- its just that the whole world was recovering from utter devastation. Rising tides lift all ships. What competition did they have, africa, europe, japan, china, UK? none, they had a 20-30 head start and they had all their factories intact.
The rockets red glare,
Bombs bursting in air- in your national anthem. WHO talks about bombs blowing up in their national anthem- I think no one.
Not worthy of holding any currency, America is one of the most rotten, hated and truly evil countries in the world- always has been this way, just had good bones (constitution) and killer marketing.
You missed- Korea, South america wars, drug war, Iraq I, Yugoslavia, Deporting Hatian PM, Afghanistan I (CIA War) and II when they invaded. (drudging their own citizens, killing gold standard, internment of citizens, now torture is legal)
The "freedom" America has bestowed on the world has been a tyrant and overlord of the world promoting & exporting low culture, gangsterism, crime and theft. All the while hiding behind a christian do gooder front.
Recognize what America has always been, totally corrupt and rotten. Not saying there are no good people there- I know lots but the guys at the top stink.
They have been playing world cop for a very long time, just read about cuba's history or Haiti,
And these conflicts too;
overthrowing of the Sovereign king of Hawaii.
Gabriel's Revolt in Virginia 1800
Tripolitan War 1801-05
US Occupation of West Florida 1810
Tecumseh's War 1811
War of 1812
Fort Mims Massacre 1813
Creek War 1813-14
Algerine War 1815
First Seminole War 1817-18
Vesy's Rebellion 1822
Arikara "War" 1823
Fredonian Rebellion 1826-7
Turner's Rebellion 1831
Black Hawk's War 1832
Texan Independence War 1835-36
Indian Stream "War" 1835
Murrel's Rebellion 1835
Second Seminole War 1835-43
Aroostook War 1838-39
Buckshot War 1838
Amistad Mutiny 1939
The Creole Mutiny 1841
Dorr's Rebellion in Rhode Island 1842
Mexican-American War 1846-48
Bear Flag Revolt in California 1846
Whitman Massacre 1847
Cayuse War 1848-55
Third Seminole War 1855-58
Rogue River Wars 1855-6
Wakarusa War 1855
Yakima War 1855-8
Pottawatomie Massacre 1856
Spirit Lake Massacre 1857
Mountain Meadows Massacre 1857
Utah War 1857-8
Brown's Raid on Harpers Ferry 1859
Apache and Navaho War 1860-5
American Civil War 1861-65
Sioux War 1862-64
Sand Creek Massacre 1864
Cheyenne & Arapaho War 1864-68
Saint Albans Raid 1864
Sioux War 1865-68
Fenian Raiders 1866-70
Fetterman Massacre 1866
Wagon Box Fight 1867
Blood River Massacre in Montana 1870
Camp Grant Massacre 1871
Apache War 1871-73
Modoc War 1872-3
Kiowa War 1874
Red River Indian War 1874-75
Apache War 1876-83
Sioux War 1876-77
Nez Perce War 1877
Bannock War 1878
Cheyenne War 1878
Victorio's Apache Raiding 1879
Apache War 1885-6
Sioux War 1890-91 Samoan Civil War 1898-99
Spanish-American War 1898
Philippine-American War 1899-1902
Assassination of McKinley 1901
Moro Resistance: Philippines 1901-13
Panamanian Secession 1903
Black Patch War 1904-9
American Occupation of Cuba 1906-7
Haitian Revolt 1915
Poncho Villa's Raids 1916-17
Preparedness Day Bombing in America 1916
Cuban Revolt of 1917
Dominican Occupation Revolt 1917-21
World War I 1917-18
Russian Civil War 1918-20
Haitian Occupation Revolt 1918
Costa Rican Counterrevolution 1919
Costa Rican-Panamanian Border Clash 1921
Panama City Rent Riot 1925
"Bonus Marchers" Intervention 1932
Sakdal Uprising in the Philippines 1935
Panay Incident in China 1937
World War II 1939-45
Korean Occupation Rebellion 1946
Berlin Blockade 1948-9
Korean Guerrilla War 1948-9
Ysu Rebellion in US Occupied Korea 1948
Attack on Blair House 1950
Anglo-American Plot: Albania 1950-2
Korean War 1950-53
Nationalist Uprising in Puerto Rico 1950
Anglo-American Plot: Iran 1953
The U-2 Incident 1960
Bay of Pigs Invasion 1961
Berlin Wall Crisis 1961
Cuban Missile Crisis 1962
Pathet Lao Insurgency 1962-75
Panama: Anti-American Rioting 1964
Dominican Civil War 1965
Black Panthers in America 1966-73
Pueblo Incident 1968
Trinidadian Rebellion 1970
Mayaguez Incident: Cambodia 1975
Panama Canal Negotiation Crisis 1975
Peace Village Incident 1976
Panama Canal Treaty Ratification 1977
Dominican Electoral Intervention 1978
Jonestown, Guyana 1978
US Ambassador: Afghanistan 1979
Iran Hostage Crisis 1979-81
Libyan Airspace Incident 1981
Shooting Down of KAL007: 1983
American Raid on Libya 1986
Stark Incident 1987
Strait of Hormuz Incident 1988
Libyan Fighters Incident 1989
US Invasion of Panama 1989
Collapse of the Berlin Wall 1989-90
Persian Gulf War 1990-91
A lot of people from around the world have escaped some shitty conditions to come here. Sadly, there is no place for Americans to escape to.
If you count all casualties in the above, including splinters, still won't add up to the number of deaths under Mao. Wouldn't even touch Stalin.