USD as world reserve currency coming to an end?

[zdreg]

China always wants to be the world leader so now it will get a taste of what it's like to carry the majority of the world on its back.

China has no intention of carrying the world on it back. It uses its trade surpluses to buy hard assets all over the world and to build manufacturing plants. It wants to creates areas of influence and to bring Chinese in the Far East under is hegemony. It also wants to take away territory from its neighbors. A strong currency will enable its ambitions.

The US , on the other hand, runs trade deficits and consumers buy perishable goods while becoming a nation of obese individuals. They thereby overwhelm the health system to the point of bankruptcy, because of their life style.

china educates its people in the sciences. The US has feely good education, where the goal is not to learn but to make sure no one is offended.

The outlook for the US is extremely bleak.

 

[JSOP]

Kind of the same thing.

It's not going to be, "one day, we wake up and the world says that $USD is no longer reserve currency". We will lose that status when our currency has been devalued enough that the world looks for an alternative. I think most likely there will be some sort of "basket of currencies"... of which the $USD will be one. That's "better than nothing", I suppose, but we won't have the clout and privilege we enjoy now.

Losing reserve status is a big deal. When the BP was king, a "Pound Sterling" was pound of silver. If it were still that way, a BP would be worth $14.6 x $24 = ~$350 instead of its current $1.38.

The Yuan isn't big enough to handle the role, but boy wouldn't the CCP love to be in that position?

Being the leader is good and being the follower is bad but do you know what's the worst? Being a leader that nobody wants to follow. You end up doing all the work that nobody gives you any credit for and everybody applauds when you are gone. Trust me, the CCP does not want to be in that position. If it's smart, it wouldn't want to be in a reserve currency.

 

[zdreg]

If it's smart, it wouldn't want to be in a reserve currency.

you are finagling your response from the Yuan being the premier reserve currency to not being a reserve currency at all.

 

[SunTrader]

Being the leader is good and being the follower is bad but do you know what's the worst? Being a leader that nobody wants to follow. You end up doing all the work that nobody gives you any credit for and everybody applauds when you are gone. Trust me, the CCP does not want to be in that position. If it's smart, it wouldn't want to be in a reserve currency.

Right. Look at all the growth they had the last 20 years or so.

Were they the world's reserve currency during that time? Of course not.

Did it hold them back any? pffft!!

 

[JSOP]

Right. Look at all the growth they had the last 20 years or so.

Were they the world's reserve currency during that time? Of course not.

Did it hold them back any? pffft!!

I am talking about the future. All those growth is past. Past performance is no indication of future results. You had absolutely no idea what I was talking about and just talked whatever out of your craphole. This is your worst troll post.

 

[Peter8519]

It's all about alternatives. What are alternatives ? CNY, EUR, CAD. What about BTC ? If not then back to barter trade.

 

[SunTrader]

I am talking about the future. All those growth is past. Past performance is no indication of future results. You had absolutely no idea what I was talking about and just talked whatever out of your craphole. This is your worst troll post.

Gee and I thought I was agreeing with you.

FLMAO read rather than rant next time.

 

[JSOP]

It's all about alternatives. What are alternatives ? CNY, EUR, CAD. What about BTC ? If not then back to barter trade.

Barter FTW!! Eventually in the face of super-hyperinflation and/or absolute digital currency, barter will be the only way to get stuff.

 

[VicBee]

Talking from no experience in political finance and repeating what I've said in past posts, I think the future of currency is dematerialized (cc and apps exclusively), an abstract value (Bitcoin?) will be approved globally and, based on established parameters, countries will peg their currency as a % of that value.

Is that even possible?

 

[longandshort]

The thread is primarily people who don’t know much about currencies talking about currencies lol.