* The US also provides safe assets in the form of US Securities.. by going into debt. * Treasury notes and bills are widely used as collateral and upon maturit

* The US also provides safe assets in the form of US Securities.. by going into debt. * Treasury notes and bills are widely used as collateral and upon maturity they turn into reserve currency cash. * China, the oil producers run budget and trade surpluses and don't have a history of providing safe assets, like the US, Japan and some EU countries. * Having a reserve currency causes your currency to appreciate, which isn't good for exporters. * On the flip side too much spending will cause inflation, which plagues developing countries, but not the developed. * So they cannot afford to spend as much, without their CB raising interest rates to fend-off inflation, which causes.. currency appreciation and trade deficits. Which country will provide reserves AND safe assets? And what will China do to back this organization in these circumstances?