Jump to content

Yuan - new reserve currency


shalab
 Share

Recommended Posts

Ive talked about this several times on this board. This is the ultimate goal of the chinese government. They have seen what the US has accomplished with such a fantastic source of funding.

 

This ties in to my views about why they are hoarding so much gold as well, my theory is that they are going to make a serious run for the title of having the largest gold hoard. They will need to buy another 1,000 tonnes or so.

 

Global GDP is a zero sum game.

 

 

Link to comment
Share on other sites

China can hold all the gold in the world but it is not going to give confidence to people to trust it as the reserve currency. If they become democratic and they develop the whole set of checks and balances across the various branches of government, then sure after a few decades of stability they have a chance.

 

I have a tough time imagining any dictator or drug lord hoarding their wealth in Yuan in the next several decades.

 

Vinod

Link to comment
Share on other sites

Ive talked about this several times on this board. This is the ultimate goal of the chinese government. They have seen what the US has accomplished with such a fantastic source of funding.

 

This ties in to my views about why they are hoarding so much gold as well, my theory is that they are going to make a serious run for the title of having the largest gold hoard. They will need to buy another 1,000 tonnes or so.

 

Global GDP is a zero sum game.

 

How do you get the Chinese gold reserve numbers ?

I though the discussion on Gold was over after WWII and National Productivity (GDP) was what is important in terms of wealth. (How dose Gold relate to GDP?)

For power it is in terms of Military might.

 

For the Chinese yuan to become the reserve currency it needs a far larger military than what we have today. And base on its food production and high population it dose not have the power for war. I mean the reason we believe in the dollar is because it still controls the world through military might and controls the resources.  Those who oppose the US control would end up like Muammar Gaddafi.

 

Also i don't think China Wants the world.

Why? The Chinese elite have been using it hierarchical structure and living off the abundant labor of the large masses for 5000 years. Why would that Change ? Whats the point of having military bases everywhere ? There is no difference in the ruling class will live and China has many of it own problems. For example like how they have to grow GDP no matter what to bring employment to the people or there will be revolution. How they have no other way to grow GDP other than build more useless buildings. How the environment has been badly destroyed. How inefficient their capital is being allocated by the officials in the SOE. How all their smart people are living China for the US and how most their students do learn anything in University. (most of the professors lack education and the smart people lack ways for advancement. ) 

 

What is happening is temporary i think i US will regress back to the mean.

China will some political problems in the comings years and the problems will hopefully solved.

 

China also has one big problem which is the aging population.

How is China suppose to rule with all that old people?

http://china.usc.edu/ShowArticle.aspx?articleID=1477

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...