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I don't see any talk of removing US dollar as a reserve currency. The only reason China is so export oriented is because they need to earn dollars to buy oil.

I don't see any talk of removing US dollar as a reserve currency. The only reason China is so export oriented is because they need to earn dollars to buy oil. If they didn't need to buy oil in dollars, they would reorient their factories to sell their manufactured goods domestically, giving everyone a high standard of living. Instead, they are making more and more goods for our fat American consumption just to earn more and more dollars. Sure, removing dollar as a reserve currency will make all of us poorer by global standards but we won't need to import manufactured goods from China any longer.

kenned3 6y ago
Your post contains many errors. 1) The "Petroyuan"... Should this ever happen, Oil will be priced in Yuan. https://eurasiantimes.com/petro-dollar-vs-petro-yuan-is-china-set-to-replace-u-s-as-the-biggest-player-in-m-east-as-ties-grow-with-saudi-arabia/ https://eurasiantimes.com/petro-dollar-vs-petro-yuan-is-chin... 2) this is NOT the reason china exports. They do this as they have a large labour advantage, very lax pollution laws and can make things for far cheaper then others can. You can determne this for yourself once you realize that China doesnt only export to the USA. When China exports to the EU for example they earn Euro notes. They can convert Euro's to USD if needed, but i dont think their primary goal is to accumulate USD, espeically given their massive USD Bond holdings. If anything, they are probably looking to sell USD bonds to diversify. 3) removing the US as a reserve curency wont just make americans "poorer" - it will have a devistating impact on your ability to borrow. Since the US gvt constantly runs a deficit who will finance this when other nations no longer want/need USD? 4) The US needs to import because as the article stated, they no longer manufacture things. Try going to a city like "bridgeport, Connecticut" and see the mothballed factories. It will take decades to undue the damage outsourcing has caused.
- nine_zeros 6y ago
  I understand everything you said. I meant weaning the US dollar as a reserve currency gradually instead of abruptly. We are already getting some ways there by printing to pay for the massive deficits. What I meant is that we cannot have our cake and eat it too. If we want to assemble smartphones here, our workers will have to accept the life of those workers. Those workers don't own cars, live in shitty shacks and have no wlb to speak of. But considering that so many people are clamoring for such jobs, maybe that's what we should go for.

kenned3 6y ago

Your post contains many errors. 1) The "Petroyuan"... Should this ever happen, Oil will be priced in Yuan. https://eurasiantimes.com/petro-dollar-vs-petro-yuan-is-china-set-to-replace-u-s-as-the-biggest-player-in-m-east-as-ties-grow-with-saudi-arabia/ https://eurasiantimes.com/petro-dollar-vs-petro-yuan-is-chin... 2) this is NOT the reason china exports. They do this as they have a large labour advantage, very lax pollution laws and can make things for far cheaper then others can. You can determne this for yourself once you realize that China doesnt only export to the USA. When China exports to the EU for example they earn Euro notes. They can convert Euro's to USD if needed, but i dont think their primary goal is to accumulate USD, espeically given their massive USD Bond holdings. If anything, they are probably looking to sell USD bonds to diversify. 3) removing the US as a reserve curency wont just make americans "poorer" - it will have a devistating impact on your ability to borrow. Since the US gvt constantly runs a deficit who will finance this when other nations no longer want/need USD? 4) The US needs to import because as the article stated, they no longer manufacture things. Try going to a city like "bridgeport, Connecticut" and see the mothballed factories. It will take decades to undue the damage outsourcing has caused.

nine_zeros 6y ago
I understand everything you said. I meant weaning the US dollar as a reserve currency gradually instead of abruptly. We are already getting some ways there by printing to pay for the massive deficits. What I meant is that we cannot have our cake and eat it too. If we want to assemble smartphones here, our workers will have to accept the life of those workers. Those workers don't own cars, live in shitty shacks and have no wlb to speak of. But considering that so many people are clamoring for such jobs, maybe that's what we should go for.