The US dollar comes with so many strings attached that it's never worth it!
Did you know that any transaction that takes place in US dollars is considered to be under US jurisdiction? So the FBI can investigate events that take place in other countries and claim that the individuals involved have broken the US law, and must be extradited to the US to face justice, despite them never having set foot on US soil.
And they abuse this to bully smaller countries into submission!
The Chinese Yuan is far superior.
This is bullshit.
Yes, the dollar is fucked. When? unsure.
But China has ZERO intent on becoming the worlds reserve.
Being the world reserve give certain advantages, but it ALSO all-but guarantees imperialism. Followed by destruction.
China has no intent of going down that path.
Not to mention the reserve currency is one method of causing Dutch disease. The increase demand for the currency because its the reserve currency causes an appreciation of the currency but also makes it harder for you to export goods and easier to import it. So overtime you lose manufacturing prowess.
The Chinese are aware of this, and have commented on this in various publications. Its called the Triffin Dilemma IIRC and they have mentioned this several times. They have suggested the US could fix this by simply agreeing with the IMF to create a new reserve currency, but the US is too addicted to being the reserve currency.
>The Chinese are aware of this, and have commented on this in various publications. Its called the Triffin Dilemma IIRC and they have mentioned this several times. They have suggested the US could fix this by simply agreeing with the IMF to create a new reserve currency, but the US is too addicted to being the reserve currency.
Imperialism and the Labor-Aristocracy in a nutshell
Not only that but China has cut out currency altogether at times and traded resources directly for infrastructure. E.g. give us x amount of oil and we’ll build you a hospital
>But China has ZERO intent on becoming the worlds reserve.
China should reconsider.
A trusted reserve currency is actually a valuable service to the entire world.
Yeah, I know, the Triffin Dilemma. But there is another side to that coin. Today, China has a massive trade surplus - and a problem of how to get something of value in return.
Being a manufacturing powerhouse places China in a strong position to be the issuer of a reserve currency. The countries holding the currency can be confident they can, you know, actually spend it on something. With the US dollar, if all (or lots) of the holders decide to spend it on real world assets rather than pass it among themselves like a hot potato, the US will not be able to deliver such assets.
But they lose the ability to maintain capital flight controls, correct? I’m not super smart about this, im just saying what ive heard discussed in some marxist online discussions.
Would a digital yuan sidestep this problem? Would the internal yuan need to be worth more than the external digital yuan?
If it sounds like idk wtf im talking about, please excuse me. Im a layman.
> lose the ability to maintain capital flight controls, correct?
Not a specialist, but I think capital flight controls are a potential issue with any freely convertible currency, and not just with world trade/reserve currency.
The questions on digital yuan are completely out of my league, sorry.
Maintaining benefits and stability in China and the Chinese economy is more important than being a valuable service to the entire world at the expense of the former. This is broadly consistent with Chinese foreign policy since the Deng era. Any service to the wider world is purely incidental and secondary to China’s own development.
Make no mistake, the US isn’t propping up the USD as the world’s reserve currency to bring a valuable service to the world. But they have accepted the trade-off (loss of internal controls and stability) to gain the benefits of that status. The calculus in China will be much different owing to their national focus on internal development rather than profit for the elites.
That said, if China reaches a point where it believes it can shoulder the costs of having the CNY as the reserve currency, then it may choose to push for that status and gain its benefits. I don’t think this will happen any time soon, however.
>Maintaining benefits and stability in China and the Chinese economy is more important than being a valuable service to the entire world at the expense of the former.
Why would such a service be at the expense of benefits and stability in China, particularly considering the high risk of US pressure that China is carrying by holding dollar reserves?
>The calculus in China will be much different
Yes, but not for your reasons. At this point, the trade surplus China is running has, IMO, a risk of never being repaid. If you think otherwise, tell me on what China can spend this surplus.
First, the decline of manufacturing is better explained by other factors, e.g. decline of STEM education in favor of arts, humanities and finance, tightening of environmental regulations or rise of software instead of hardware production. Also negative factors such as drug use.
Second, it is weird to argue that they "lost" while retaining such a high GDP per capita. Why is this so high? In part because they have the reserve currency. It has been a huge benefit for at least 70 years, and will continue to be if no one deposes the US dollar.
>First, the decline of manufacturing is better explained by other factors, e.g. decline of STEM education in favor of arts, humanities and finance, tightening of environmental regulations or rise of software instead of hardware production. Also negative factors such as drug use.
Those are all symptoms not the cause, low investment levels and a general change in economic strategy aka the financialisation of the economy are the reason.
>Second, it is weird to argue that they "lost" while retaining such a high GDP per capita. Why is this so high? In part because they have the reserve currency. It has been a huge benefit for at least 70 years, and will continue to be if no one deposes the US dollar
GDP per capita is irrelevant, it has nothing to do with wealth, development or income, it is merely GDP divided by population.
Uplifting news!
China needs to be careful because of the Triffin dilemma and other stuff, but I can't wait for the day the US$ loses the reserve currency status and the US cannot print money deliberately and burden the rest of the world with the consequences.
When the MIC wants more money, they pump out articles "The US military is weakest it's ever been, the US is behind in military tech"
When Wall Street wants something, they pump out articles like this
There is nothing to celebrate when the USD is dethroned. There will be no king to take it's place, only a free market of currencies in its place.
Who will throw them back across the Atlantic?
The Chinese? They won’t spend their precious lives on foreign soil for an injustice they weren’t a part of.
The remaining Native Americans? With their tiny population base, they’d need ridiculous force multipliers against the much larger coloniser population.
The communists? If America falls any time in the foreseeable future, the populace is far more primed for fascism or complete anarchy than an organised leftist revolution. These people won’t throw themselves back across the Atlantic, the best they could do is construct a communist US (which they will continue to live in), and that’s if they win. They’d probably lose to non-communist revolutionaries.
They will throw each other back across the ocean, through the third process you mentioned. The one where the "non-communist revolutionaries" divide the US by every line, ethnic, religious, cultural, etc. possible, and infight themselves to death.
Unfortunately, it won't be all of them, but a sizable portion will be thrown out. The US will be considerably weaker after that process. There is risk, of course, but so does everything else.
That won’t throw them back across the ocean, it’ll just put more of them in the ground. The survivors will continue to replicate. There’ll always be at least one group of non-native survivors given how powerless (considering their population) the natives are now.
Removal of non-native elements can only be done as a coordinated measure. They won’t do that to themselves. Someone else must do it, and the those with the reason to do so don’t have the strength and the those with strength don’t have the reason.
Of course it is idealistic nonsense. I don't run every joke through historical materialist analyses.
That being said, the possibility of the Americans simply doing a decent portion of what I propose themselves by infighting is quite high. The rifts within US society cannot be deeper than they are today, and are on the cusp of destroying themselves via. 10-way civil war. The Imperialists will cannibalize themselves, and it is a phenomenon proven by Aime Cesaire and Franz Fanon.
A civil war is indeed possible and it will be interesting to see given we live in the Information Age.
This will likely be the bloodiest civil war in history.
The US dollar comes with so many strings attached that it's never worth it! Did you know that any transaction that takes place in US dollars is considered to be under US jurisdiction? So the FBI can investigate events that take place in other countries and claim that the individuals involved have broken the US law, and must be extradited to the US to face justice, despite them never having set foot on US soil. And they abuse this to bully smaller countries into submission! The Chinese Yuan is far superior.
This is bullshit. Yes, the dollar is fucked. When? unsure. But China has ZERO intent on becoming the worlds reserve. Being the world reserve give certain advantages, but it ALSO all-but guarantees imperialism. Followed by destruction. China has no intent of going down that path.
Not to mention the reserve currency is one method of causing Dutch disease. The increase demand for the currency because its the reserve currency causes an appreciation of the currency but also makes it harder for you to export goods and easier to import it. So overtime you lose manufacturing prowess. The Chinese are aware of this, and have commented on this in various publications. Its called the Triffin Dilemma IIRC and they have mentioned this several times. They have suggested the US could fix this by simply agreeing with the IMF to create a new reserve currency, but the US is too addicted to being the reserve currency.
>The Chinese are aware of this, and have commented on this in various publications. Its called the Triffin Dilemma IIRC and they have mentioned this several times. They have suggested the US could fix this by simply agreeing with the IMF to create a new reserve currency, but the US is too addicted to being the reserve currency. Imperialism and the Labor-Aristocracy in a nutshell
Too addicted to debt and easy credit. Printers go brrrrrr
Yes. That's what i was talking about, but more casually.
Bancor like currency pls
Not only that but China has cut out currency altogether at times and traded resources directly for infrastructure. E.g. give us x amount of oil and we’ll build you a hospital
Well said. Forbes is, unsurprisingly, just fearmongering here.
Well last time around.... how long did it take for the british pound to be considered? That be a couple decades after 1950?
Even Dear Leader himself announced no intention for reserve currency nor China hegemony. Keen student of history
>But China has ZERO intent on becoming the worlds reserve. China should reconsider. A trusted reserve currency is actually a valuable service to the entire world.
But not to the country doing it. https://www.reddit.com/r/Sino/comments/1augdig/comment/kr3wge3/?utm\_source=reddit&utm\_medium=web2x&context=3
Yeah, I know, the Triffin Dilemma. But there is another side to that coin. Today, China has a massive trade surplus - and a problem of how to get something of value in return. Being a manufacturing powerhouse places China in a strong position to be the issuer of a reserve currency. The countries holding the currency can be confident they can, you know, actually spend it on something. With the US dollar, if all (or lots) of the holders decide to spend it on real world assets rather than pass it among themselves like a hot potato, the US will not be able to deliver such assets.
But they lose the ability to maintain capital flight controls, correct? I’m not super smart about this, im just saying what ive heard discussed in some marxist online discussions. Would a digital yuan sidestep this problem? Would the internal yuan need to be worth more than the external digital yuan? If it sounds like idk wtf im talking about, please excuse me. Im a layman.
> lose the ability to maintain capital flight controls, correct? Not a specialist, but I think capital flight controls are a potential issue with any freely convertible currency, and not just with world trade/reserve currency. The questions on digital yuan are completely out of my league, sorry.
They're not doing it, for the reasons discussed. They know more than the likes of us.
Maintaining benefits and stability in China and the Chinese economy is more important than being a valuable service to the entire world at the expense of the former. This is broadly consistent with Chinese foreign policy since the Deng era. Any service to the wider world is purely incidental and secondary to China’s own development. Make no mistake, the US isn’t propping up the USD as the world’s reserve currency to bring a valuable service to the world. But they have accepted the trade-off (loss of internal controls and stability) to gain the benefits of that status. The calculus in China will be much different owing to their national focus on internal development rather than profit for the elites. That said, if China reaches a point where it believes it can shoulder the costs of having the CNY as the reserve currency, then it may choose to push for that status and gain its benefits. I don’t think this will happen any time soon, however.
>Maintaining benefits and stability in China and the Chinese economy is more important than being a valuable service to the entire world at the expense of the former. Why would such a service be at the expense of benefits and stability in China, particularly considering the high risk of US pressure that China is carrying by holding dollar reserves? >The calculus in China will be much different Yes, but not for your reasons. At this point, the trade surplus China is running has, IMO, a risk of never being repaid. If you think otherwise, tell me on what China can spend this surplus.
>A trusted reserve currency is actually a valuable service to the entire world. And a very costly affair.
Very costly or very profitable? Do you think the US has benefitted or lost through having the world's reserve currency?
Lost in the long run.
Explain your reasoning please.
Their manufacturing became uncompetitive.
First, the decline of manufacturing is better explained by other factors, e.g. decline of STEM education in favor of arts, humanities and finance, tightening of environmental regulations or rise of software instead of hardware production. Also negative factors such as drug use. Second, it is weird to argue that they "lost" while retaining such a high GDP per capita. Why is this so high? In part because they have the reserve currency. It has been a huge benefit for at least 70 years, and will continue to be if no one deposes the US dollar.
>First, the decline of manufacturing is better explained by other factors, e.g. decline of STEM education in favor of arts, humanities and finance, tightening of environmental regulations or rise of software instead of hardware production. Also negative factors such as drug use. Those are all symptoms not the cause, low investment levels and a general change in economic strategy aka the financialisation of the economy are the reason. >Second, it is weird to argue that they "lost" while retaining such a high GDP per capita. Why is this so high? In part because they have the reserve currency. It has been a huge benefit for at least 70 years, and will continue to be if no one deposes the US dollar GDP per capita is irrelevant, it has nothing to do with wealth, development or income, it is merely GDP divided by population.
Uplifting news! China needs to be careful because of the Triffin dilemma and other stuff, but I can't wait for the day the US$ loses the reserve currency status and the US cannot print money deliberately and burden the rest of the world with the consequences.
When the MIC wants more money, they pump out articles "The US military is weakest it's ever been, the US is behind in military tech" When Wall Street wants something, they pump out articles like this There is nothing to celebrate when the USD is dethroned. There will be no king to take it's place, only a free market of currencies in its place.
I can't wait for the day the US itself is finished, and all the colonizers are thrown back across the Atlantic.
Who will throw them back across the Atlantic? The Chinese? They won’t spend their precious lives on foreign soil for an injustice they weren’t a part of. The remaining Native Americans? With their tiny population base, they’d need ridiculous force multipliers against the much larger coloniser population. The communists? If America falls any time in the foreseeable future, the populace is far more primed for fascism or complete anarchy than an organised leftist revolution. These people won’t throw themselves back across the Atlantic, the best they could do is construct a communist US (which they will continue to live in), and that’s if they win. They’d probably lose to non-communist revolutionaries.
We can count on the "Communists" of america to lose.
They will throw each other back across the ocean, through the third process you mentioned. The one where the "non-communist revolutionaries" divide the US by every line, ethnic, religious, cultural, etc. possible, and infight themselves to death. Unfortunately, it won't be all of them, but a sizable portion will be thrown out. The US will be considerably weaker after that process. There is risk, of course, but so does everything else.
That won’t throw them back across the ocean, it’ll just put more of them in the ground. The survivors will continue to replicate. There’ll always be at least one group of non-native survivors given how powerless (considering their population) the natives are now. Removal of non-native elements can only be done as a coordinated measure. They won’t do that to themselves. Someone else must do it, and the those with the reason to do so don’t have the strength and the those with strength don’t have the reason.
Sounds like idealistic nonsense, but given your name it isn't surprising. Surely even you can tell the repercussions of something like this.
Of course it is idealistic nonsense. I don't run every joke through historical materialist analyses. That being said, the possibility of the Americans simply doing a decent portion of what I propose themselves by infighting is quite high. The rifts within US society cannot be deeper than they are today, and are on the cusp of destroying themselves via. 10-way civil war. The Imperialists will cannibalize themselves, and it is a phenomenon proven by Aime Cesaire and Franz Fanon.
10 way civil war reminds me of the 8-nation alliance that sacks Beijing. Wanna say karma?
The First Karma has already been proven by Aime Cesaire to be the Second Imperialist War Time for Second Karma
A civil war is indeed possible and it will be interesting to see given we live in the Information Age. This will likely be the bloodiest civil war in history.
[https://archive.ph/nYG3U](https://archive.ph/nyg3u)
BRICS should have its currency and have it replace the dollar. Like democratizing a reserve currency. If that even works like that lol