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The US imposes controls on trade made in dollars even when said trades as absolutely nothing to do with the US. Why? Because the US thinks they can. It will be
by RandomThoughts3 2y ago
The US imposes controls on trade made in dollars even when said trades as absolutely nothing to do with the US. Why? Because the US thinks they can.
It will be fine until it isn't anymore. China definitely is pushing hard to get the renminbi viewed as a global currency.
- eldgfipo 2y agoWhy would it want to ? They're export-driven : becoming a reserve currency is not in their interest. The RMB would appreciate and hurt their competitiveness. Plus, they wouldn't be able to control/drive its value down once it has spread over their border. They paradoxically need to be mostly self-reliant and therefore grow their consumer-base before that happen otherwise they're just putting their fingers in the cogs.
- RandomThoughts3 2y agoChina upstart phase when they viewed themselves as purely export-driven to shore up their economy is over. They now think of themselves as a global power with an internal market deep enough to sustain their own growth and deep tie with countries in Africa and South East Asia with which they would rather do business in their own currency as a way to shore up their depencies towards them. You are confusing current China with China a decade ago.
- mensetmanusman 2y agoTheir internal market has deflation and their population is dropping millions per year.
- DiogenesKynikos 2y agoOh no, at that rate, China will have no more workers left in 1400 years! But in all seriousness, even though China's population is slowly shrinking, the population of highly educated people is growing.
- mensetmanusman 2y agoEducation will be helpful as they approach a 2:1 worker:retiree ratio