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> China probably has become the world’s biggest economy and will reap the benefits that once flowed to the U.S Ain’t nobody gonna use the Yuan as a reserve cur
by peteretep 8y ago
> China probably has become the world’s biggest economy and will reap the benefits that once flowed to the U.S
Ain’t nobody gonna use the Yuan as a reserve currency when the rule of law there is so tenuous.
- Apes 8y agoChina has plenty of countries in serious debt to them that they could use as leverage. "Switch to the Yuan as your country's reserve currency, and we'll forgive some of that crippling debt we've saddled you with!"
- cthalupa 8y agoIf I owe you $1,000,000, I've got a problem. If I owe you $1,000,000,000,000, you've got a problem. Or however the quote goes. China is not the majority debt holder for any country that I know of, even though they might be substantial ones. I don't see this strategy working if they tried it.
- chmod775 8y agoChina hardly even needs that leaverage to bulli a small nation. Though it may make a good casus belli should the need arise.
- chmod775 8y agoThe US has hardly won any trust when they demonstrated how their word and their policies are just barely good for the length of a presidential term. At least China is relatively stable and predictable. Which coincidentally are important qualities of a reserve currency.
- peteretep 8y agoDid the American legal system break while I wasn’t looking? Wake me up when rich Americans start moving to China to protect their wealth and for protection from local government whims.
- chmod775 8y agoWhat does a nation care about the legal system of the country behind their reserve currency? Furthermore, most "tax havens" are hardly known for their strong goverments and legal systems. Quite the opposite. Not that it matters, since this discussion is really about the reserve currencies of nations.