In4ser
Junior Member
Yeah. They do haha! *sigh* Everything is so stupid. It's absurd to watch your own country self-destruct from its own arrogance and ignorance.
Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
- Start date
interesting huh? Back to back days, we have the MSM talking about this. First CNN and now FOX news. There must be real alarm setting off in the beltway about this right now.
They don't understand that the Yuan doesn't need to become the reserve currency for the dollar to get hurt. Essentially Global South economies can trade with each other in local currencies, which is awkward, cumbersome, and fraught with problems. However, doing so guarantees that they won't be harvested like leeks the moment the Feds increase their rate, so they'll go ahead with the archaic way of trade.
What's killing the dollar is not that the Yuan will replace it in the immediate future, but that people around the world are beginning to lose faith in it.
Never shoulda have faith in the first place... 1971 went of the gold standard.. 2008 started QE aka Fed directly printing and injecting money etc... and then all the printing during covid...
Even barter system is better than getting harvested and exponentially shaken down like this...
Fools are still.talking bitcoin... bitcoin is nothing but an online excel spreadsheet aka distributed digital general accounting ledger
Fe for RMBs, RMBs for BYDs.
Things are moving fast.
This is with UAE, one of the largest LNG exporters (i believe US is larger)
Again, the importance here is not even the usage of RMB, but rather SHPGX is getting used by foreign countries (France & UAE in this case). China is trying to build up its own exchanges to compete with Henry hub and ICE
continued grudging acceptance from writers in Western media of Russia basically using CNY as its main reserve currency. Keep attacking it, but in reality, the switch over to CNY and Chinese system in general hasn't been a major problem for Russia. It must hurt some people to admit that you can live without USD
Being able to control CNY and trading of energy is important
See, China no longer needs to hold UST to buy stuff. It can just buy energy and natural resources with CNY. That's the geopolitical implication of this for China
Shouldn't surprise people that CNY is not 30% of Russia's NWF. This can rise to 60% as China continues to buy oil/gas using CNY.
Being able to control CNY and trading of energy is important
See, China no longer needs to hold UST to buy stuff. It can just buy energy and natural resources with CNY. That's the geopolitical implication of this for China
things are just trickling along right now.
keep in mind that we are still in the early innings of this transition, but implications is huge as this continues.
look how much China and Japan have sold treasury in the past year
I'd expect China to accelerate its pace of treasury sales as it is increasingly able to pay for commodities and energy in RMB.
Again very important here, since China is no longer beholden to natural resources priced in USD, it has control over its own currency because it has no need for USD.
keep in mind that we are still in the early innings of this transition, but implications is huge as this continues.
look how much China and Japan have sold treasury in the past year
I'd expect China to accelerate its pace of treasury sales as it is increasingly able to pay for commodities and energy in RMB.
Again very important here, since China is no longer beholden to natural resources priced in USD, it has control over its own currency because it has no need for USD.
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