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iGas

Diamond Member
Feb 7, 2009
6,240
1
0
There have been rumors that China will eventually end its reliant on US dollar for trade since the the EU went with the Euro, South East Asia were talking regarding the SEAN common currency. And, recently China and Russia agrees to use their currencies to trade between them, however 2 week ago the Chinese trade minister dispelled the rumor and said that they will not stop using the USD.

Today China officials in call for gradual displacement of the dollar, suggests that they are moving ahead with the unseating the USD/USA as the global dominating force.

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Wrong forum, and repost times a billion
AnandTech Moderator Evadman

 
J

JS80

Lifer
Oct 24, 2005
26,271
7
81
What's their alternative? The US brand of toilet paper is still the most stable compared to other countries' brand of toilet paper.

This global meltdown exercise has shown that the world follows the US up and down. The SDR will not provide to be a safe haven for them.

And the Chinese know this. I suspect they are doing this as a signaling to the Obama admin to get their shit together. But ultimately they have put themselves in this position by playing the currency game. Trade is supposed to be just that - trade. If you send us your shit and we send you IOUs you're supposed to buy shit from us. If you just collect our IOUs they will gradually lose their value especially since we own the printing press.
 
zerocool84

zerocool84

Lifer
Nov 11, 2004
36,041
472
126
Just wait until they nuke us. Then the fun will really start. Hey that'd make a good game idea.
 
IronWing

IronWing

No Lifer
Jul 20, 2001
72,226
32,637
136
Emerald tiger
Waits to pounce on a flat world
Shamrock shakes for all
 
I

iGas

Diamond Member
Feb 7, 2009
6,240
1
0
Originally posted by: JS80
What's their alternative? The US brand of toilet paper is still the most stable compared to other countries' brand of toilet paper.

This global meltdown exercise has shown that the world follows the US up and down. The SDR will not provide to be a safe haven for them.

And the Chinese know this. I suspect they are doing this as a signaling to the Obama admin to get their shit together.
Click to expand...
I'm not sure how stable the USD is, but IMHO the Euro is an alternative ;)
 
C

Crono

Lifer
Aug 8, 2001
23,720
1,502
136
May or may not be the case, but I'd rather we go out with a whimper instead of a bang. Europe will take our place, and U.S. would be just fine as a second class power.
I feel the U.S. will be like Carthage compared to Rome at its height, but hopefully without any catastrophic military defeat, or financial or social collapse. China is just one factor that could reduce the U.S. to that state.

Anyway, this belongs in P&N.
 
M

masteryoda34

Golden Member
Dec 17, 2007
1,399
3
81
China doesnt want to cause international panic and collapse the dollar, they are the largest holder of US bonds. They just want to get out from under the dollar as quietly as possible as to not destroy the value of their bonds.
 
C

Crono

Lifer
Aug 8, 2001
23,720
1,502
136
Originally posted by: eLiu
Let's just have WW3 and then bottlecaps can be the currency.
Click to expand...

I'd probably survive and end up a ghoul, hopefully non-feral. If so, I'll probably work in a bar or store or something. Be nice to me :p
 
AstroManLuca

AstroManLuca

Lifer
Jun 24, 2004
15,628
5
81
Originally posted by: Crono
Originally posted by: eLiu
Let's just have WW3 and then bottlecaps can be the currency.
Click to expand...

I'd probably survive and end up a ghoul, hopefully non-feral. If so, I'll probably work in a bar or store or something. Be nice to me :p
Click to expand...

oh hey lenny
 
S

sjwaste

Diamond Member
Aug 2, 2000
8,757
12
81
Originally posted by: iGas

There have been rumors that China will eventually end its reliant on US dollar for trade since the the EU went with the Euro, South East Asia were talking regarding the SEAN common currency. And, recently China and Russia agrees to use their currencies to trade between them, however 2 week ago the Chinese trade minister dispelled the rumor and said that they will not stop using the USD.

Today China officials in call for gradual displacement of the dollar, suggests that they are moving ahead with the unseating the USD/USA as the global dominating force.
Click to expand...

Bottom line, if you're trading in a fiat currency, there is nothing that comes close to the dollar except possibly the euro. That's very nice that China and Russia will trade using each others' currencies. The Yuan is fixed trade and the Ruble is about as stable as the world's oil supply. We can talk again if China ever lets its currency fluctuate, but for now its pegged to the dollar.

The euro makes sense for Europe, since its a common currency for a large economic zone. But there's a lot of debt out there denominated in dollars, and we're still the single largest economy. If the rest of the world wants to use its own currency in trade, it's still going to be de facto dollar-denominated because of the amount of dollars in world supply.

In other words, countries like China and Russia are going to have to continue to grow, mature, and stabilize their economies before anyone but themselves are crazy enough to back their investments with it. One is manipulated, the other is volatile. The dollar is neither of those.
 
S

sjwaste

Diamond Member
Aug 2, 2000
8,757
12
81
Originally posted by: Crono
May or may not be the case, but I'd rather we go out with a whimper instead of a bang. Europe will take our place, and U.S. would be just fine as a second class power.
I feel the U.S. will be like Carthage compared to Rome at its height, but hopefully without any catastrophic military defeat, or financial or social collapse. China is just one factor that could reduce the U.S. to that state.

Anyway, this belongs in P&N.
Click to expand...

Europe already had its peak, supplanted by the American economy. If anything, China's next if they can get their shit together. But nobody's going to soak up a manipulated currency, so let's talk industrialization for China before we talk economic domination. Then they'll walk the same path Europe did, and we're doing now -- domestic obligations exceeding receipts. Those workers aren't going to work for pennies on the dollar once there's an actual standard of living there, now, are they?
 
IronWing

IronWing

No Lifer
Jul 20, 2001
72,226
32,637
136
China will overtake the US just in time for the oil to run out. Then they'll be like we'll be - screwed.
 
IEC

IEC

Elite Member
Super Moderator
Jun 10, 2004
14,587
6,038
136
OP should change his name to FullOfGas
 
9

91TTZ

Lifer
Jan 31, 2005
14,374
1
0
Originally posted by: Crono
May or may not be the case, but I'd rather we go out with a whimper instead of a bang.
Click to expand...

Countries full of people who'd rather go out with a whimper usually do since they lack enough brave souls to go out with a bang.

Personally I think we should go out with a bang internally. Purge all the cowards and other dead weight in this country so we can be profitable and defend ourselves.

China will grow quickly until their own people want their fair share of the pie. Then China's current government is toast because they'll have over 1 billion people to answer to.
 
Slew Foot

Slew Foot

Lifer
Sep 22, 2005
12,379
96
86
The only thing saving the USD is that every other first world nation is in the shit just as bad as we are, or in many cases even worse. The US has the biggest guns and thus the USD is relatively safe.
 
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