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Russia, China, France, Arab countries, and South America, have been working as a group to stop the US dollar from being the worlds reserve currency for many years.
Cognitive dissonance runs very strong in our world.
The reason the USD is so pervasive in the world is first simply because of the volume distributed throughout. i.e. US National Debt.
And this is not only due to the utility of the world using such a very common currency, but also the world continues to agree that USD based debt is so secure.
The volume of US Treasury debt held, local and foreign has risen since the S&P downgrade a few years ago.
The frequency of the USD being used on at least one side of all international transactions has risen since the 2008 crash.
So of course we will have relatively low life squealers like China and Russia trying to **** and moan and bark like a real dog. That they are not.
The world shifting to another currency will happen. But it will happen over a ling period of time. 10 years to a generation and we might see significant worldly representation by Yuan currency and Yuan based debt investment.
Just not soon. Or sudden, barring as asteroid hit on Nebraska.
As for China... Walmart accounts for up to 5% of their total GDP; nuff said. Let me know when Walmart switches to the Yuan.
Of course China is now very much more dependent on the US than the other way around. China is an optional money saver for the US. But China cannot move very far in the world without USD.
Until China's restrictive capital flow laws and policies change, Walmart in the US will not see one Yuan!
As long as oil is priced in dollars and most want the assureance dollar represents its not going to happen. The Chinese Yuan isn't allowed to float on the market and too manage by government to want by most.Also the amount by economic power in GDP it represents means many cannot be used. The Euro but now since the crisis that is probably out with tis problems going forward.The Euro zone would have to fully unit economically and Germany etc does not want to be responsible for Greeces debt as part of a whole its clear.
It's happening slowly and I'm good with it. I would prefer a government that acted responsibly but that seems to be asking for too much.
We will all suffer if/when this happens. The reserve currency status has come with "benefits" that will no longer be effective if we lose reserve status with regards to how our debt is handled.
We will all suffer if/when this happens. The reserve currency status has come with "benefits" that will no longer be effective if we lose reserve status with regards to how our debt is handled.
People are suffering today under our current monetary policies.
As long as oil is priced in dollars and most want the assureance dollar represents its not going to happen. The Chinese Yuan isn't allowed to float on the market and too manage by government to want by most.Also the amount by economic power in GDP it represents means many cannot be used. The Euro but now since the crisis that is probably out with tis problems going forward.The Euro zone would have to fully unit economically and Germany etc does not want to be responsible for Greeces debt as part of a whole its clear.
I agree with most of this. The EU isn't even a close second to the USD. In volume and in security.
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