4 ms·

within reason of course. it's a position of privilege, but that position used to below to the UK. they lost that position over/after the world wars, and we got

within reason of course. it's a position of privilege, but that position used to below to the UK. they lost that position over/after the world wars, and we got it. it is possible that doing whatever we want could push people to the euro as the reserve or the pound. it seems far fetched, but I could see a world where the euro the the world's reserve currency

TexanFeller 4y ago
The yuan may be the competition we should fear. Since we disconnected Russia from our financial systems, Russia is willing to do business with our biggest rival, China, in their currency.
- 64bittechie 4y ago
  Well, what do you expect? The US over the past several decades has effectively crippled economies for its own interests by cutting off USD access. When you do this to a non-trivial number of countries they get around it by trading among themselves and dumping the USD for their own currencies. There are many countries including India, Japan, Korea, China, Russia, etc who are opening up bilateral or trilateral agreements to trade in their own currencies bypassing the USD. The US has pissed off a significant portion of the world that its days as reserve currency are certainly numbered. However, unbelievable it might sound today but the world is inching closer to non-USD centric future.
  - refurb 4y ago
    Im not sure you understand what reserve currency means. When Korea buys something from Japan, they don’t have to pay in USD. They can use whatever currency they want.
- pjc50 4y ago
  The yuan has capital controls. You can't move money freely in and out of China even (especially) if you're a Chinese national. Absolute non-starter for any kind of reserve currency idea.
  - dtech 4y ago
    For now. China has been actively working on making the yuan a world reserve currency [1], including relaxing the controls if it is adventageous. [1] https://finance.yahoo.com/news/putin-strengthening-yuan-role-russia-212300796.html https://finance.yahoo.com/news/putin-strengthening-yuan-role...
    - refurb 4y ago
      That would require a wholesale change in the way the Chinese government wields it power. Money flees China now despite the capital controls. Even the Chinese would rather keep their money in Singapore, Switzerland or the US than at home.
- deleted 4y ago
  [deleted]
TheOtherHobbes 4y ago
The privilege is maintained by having the biggest military force in the world - which is why the UK used to be in that position, and the US is in that position now. It's not inconceivable China could take over. Russia won't (lol...) and the EU doesn't have much interest in becoming militarised.
- plonk 4y ago
  Does anyone seriously believe the US military is forcing the world to use dollars? What’s the leverage? Does France get invaded if the Euro becomes too important?

TexanFeller 4y ago

The yuan may be the competition we should fear. Since we disconnected Russia from our financial systems, Russia is willing to do business with our biggest rival, China, in their currency.

64bittechie 4y ago
Well, what do you expect? The US over the past several decades has effectively crippled economies for its own interests by cutting off USD access. When you do this to a non-trivial number of countries they get around it by trading among themselves and dumping the USD for their own currencies. There are many countries including India, Japan, Korea, China, Russia, etc who are opening up bilateral or trilateral agreements to trade in their own currencies bypassing the USD. The US has pissed off a significant portion of the world that its days as reserve currency are certainly numbered. However, unbelievable it might sound today but the world is inching closer to non-USD centric future.
- refurb 4y ago
  Im not sure you understand what reserve currency means. When Korea buys something from Japan, they don’t have to pay in USD. They can use whatever currency they want.
pjc50 4y ago
The yuan has capital controls. You can't move money freely in and out of China even (especially) if you're a Chinese national. Absolute non-starter for any kind of reserve currency idea.
- dtech 4y ago
  For now. China has been actively working on making the yuan a world reserve currency [1], including relaxing the controls if it is adventageous. [1] https://finance.yahoo.com/news/putin-strengthening-yuan-role-russia-212300796.html https://finance.yahoo.com/news/putin-strengthening-yuan-role...
  - refurb 4y ago
    That would require a wholesale change in the way the Chinese government wields it power. Money flees China now despite the capital controls. Even the Chinese would rather keep their money in Singapore, Switzerland or the US than at home.
deleted 4y ago
[deleted]

TheOtherHobbes 4y ago

The privilege is maintained by having the biggest military force in the world - which is why the UK used to be in that position, and the US is in that position now. It's not inconceivable China could take over. Russia won't (lol...) and the EU doesn't have much interest in becoming militarised.

plonk 4y ago
Does anyone seriously believe the US military is forcing the world to use dollars? What’s the leverage? Does France get invaded if the Euro becomes too important?