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To: Reagan Disciple

I also agree with you. At is base level, few non-government and private citizens of the world want to hold Chinese Yuan or Rubles. I know I don’t.

Besides the simple fact these are not readily useable for nearly all Non-Chinese and Non-Russian people (this is what these countries are attempting to change), additionally, you have to simply “trust” the state-run banks of Russia and China and their political authorities to let you even have your money when you demand it. As non-open financial systems, non-market economies, they will always be swimming against a strong current if they want their currencies widely accepted.

My own belief is that China and Russia understand this, and will instead promote gold as an international option to supplant the US Dollar.


16 posted on 04/09/2018 11:18:55 AM PDT by PGR88
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To: PGR88

Let’s go along those lines, the gold angle.

https://www.statista.com/statistics/267998/countries-with-the-largest-gold-reserves/

Now do I 100% believe these stats? No way, the US reserves have been questioned since 1971. But let’s take it at face value..........China does have the largest FX reserves on the planet and for good reason, its been depressing its currency for decades and can continually do so for many more and has been buying more gold in the past decade. But.......if they decided that a gold standard were the way to go they would need to necessarily harbor an illiquid asset to prop up what would be a “restricted-access currency.” There, they would need to change the dynamic to investing from primarily in US Treasuries which they cannot afford to do given it’s the only place they can run to garner the size they need. The global gold market is capacity constrained, the US Treasury is like a crack factory run by evil Oompa Loompas.

Your thinking is not out of bounds. The Bear and Dragon have many reasons to undermine us. But just like close-mindedness the old Soviet system, the former is too reliant on crude to ever make the USD irrelevant the latter is too reliant on US trade (and in some cases imports) to ever invoke a wholesale move away from the hand that feeds.


22 posted on 04/09/2018 11:46:29 AM PDT by Reagan Disciple (Peace through Strength)
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