Beijing's Plans to Decouple from the Dollar 

Dedollarzation is very important for every country to follow independent policy.....

The fact of China has changed the design.

Excellent discussion !

Us wants decouple from china, and china will decouple from us dollar, we will see who economic will fall hard

She is speaking good but her expressions the way she's was behaving while talking is really irritating....

China will not allow us dollar to freely convert to yuan as us dollar is fiat currency. Will you sell your valuables resource or product to piece of paper that can freely print at cost of 1 cent

The Fed has grown the USA's M2 for years so much that inflation inevitably results. However, China's ADMITTED M2 (and they have understated that for decades) is now more than the combined M2 of the US plus the M2 of Japan (all in dollar terms) due to the CCP's massive overprinting of yuan and its GDP (even as overstated as it has been for decades) is nowhere near even the US GDP alone. It may be half of the US GDP in real dollar terms after the bubbles in its real estate are fully popped. Do not get me started on the CCP's printing of more than one yuan with the same serial number or hapless manipulation of financial data. There are few prospects China in future years as China's foreign-run factories move to other countries and the increasing, resulting decrease of China GDP triggers hyperinflation and even more economic collapse in China. (To avoid rapid economic collapse this year, the CCP is actually building more unsustainable high-speed trains that few can afford to ride, skeleton, shoddily built apartment buildings that no one will occupy, etc., which will add to its gigantic mega-herds of white elephants. LOL) I predict that will happen this year or in 2024, so any major investors in China, take yoga classes! That way you can bend over and kiss something goodbye then, later this year or in 2024. LOL. That ignores the likelihood that any "investments" that you have in a country whose government respects no laws or promises to foreigners will just be confiscated when their plans to attack Taiwan result in MASSIVE, international sanctions for decades.

8 comments, 4 visible to me.

Gold is the way

Lady in red giving out pointers on CHYYYYNA economics . Man ! I was all ears conclusion Choyleva said was like soft-spoken JCramer would say BUY ! BUY ! BUY !!!

Man this analysis totally misses the point. It really takes some kind of idiot to take something so simple and turn it into something so messy and confusion. The international currency du jour in times of peace will be that of whichever entity is larger. In times of war things will fragment and there may be no international currency to speak off. While in theory there could be multiple international currencies the empirics over the past 70 years show that this is not the case when the international system is well connected as a single system. It will always choose one currency, that of the largest economic entity. Understanding that then it becomes no surprise that the Chinese haven't taken over yet because China hasn't become the largest economic entity yet, at least not clearly and unambiguously. There is no puzzle here. The puzzle would be if the Chinese have clearly become the largest entity and still didn't have the reserve currency. Even if the two entities , China and the US, are nearing the same size the world system has way too much sunk costs in the existing reserve currency. To switch over the world would require China to open up a clear and significant gap over the Americans. All of these other considerations are completely insignificant. Banks can open up new derivatives shops overnight to take on all the financial services needs in no time. Either the Chinese banks can do it or even the American Banks could stab America in the back and do it. When China actually opens up a significant economic gap you'll see it happen overnight. Derivative houses are not like semi-conductor fabs or nuclear power plants despite all the hype people throw at them. All they involve is a few computer terminals and some people. You can put that together in no time. There's plenty of ready made computer software and a massive over supply of people who know how to do it. The Chinese are not stupid, they are not going to jump off a cliff to try to fly before they have wings. All they are doing now is keeping laser focused on becoming the largest entity and making preparations for the day when that comes. Forget the so called competition for the reserve currency, the only competition that matters is the competition for whose economy will be larger and by how much in the next 5, 10, 20, 50, 100 years. That will determine everything.