what would happen to the US if the yuan or euro became the reserve currency?

[tommo123]

... as in tied to oil like the USD is now? and i mean if it happened quick, within a year or so. would it just be a little rough or a clusterfuck?

P&N, not OT
-ViRGE

 

[WelshBloke]

There isn't such a thing as "the reserve currency".

Theres currencies that countries keep in reserve though.

 

[LegendKiller]

... as in tied to oil like the USD is now? and i mean if it happened quick, within a year or so. would it just be a little rough or a clusterfuck?

The Yuan cannot become a reserve currency, it isn't floating, it can't be floating, and no command economy will ever be a reserve currency.

The Euro will never be a reserve currency until there is a fiscal monetary union. That would mean that every Euro country give up their sovereignty to France, and more importantly, Germany. That ain't ever going to happen.

 

[WelshBloke]

The Yuan cannot become a reserve currency, it isn't floating, it can't be floating, and no command economy will ever be a reserve currency.

The Euro will never be a reserve currency until there is a fiscal monetary union. That would mean that every Euro country give up their sovereignty to France, and more importantly, Germany. That ain't ever going to happen.

Global reserve currencies.

 

[Anarchist420]

the u.s.d. will be completely dumped from all foreign reserves within the next 10 years. the State of Israel has at least another 125 years before the arabs get their eamon de valera/nelson mandela; I would say the U.S.G. has a maximum of 25 years left before it collapses under its own weight.

 

[tommo123]

aren't the chinese testing changes to their currency in shanghai at the moment though?

 

[WelshBloke]

the u.s.d. will be completely dumped from all foreign reserves within the next 10 years.

Lol. No chance.

What other currency are people going to use? There might (and probably will be) a diversification but the biggest chunk of change banks are going to keep in their back pockets are going to be in dollars for a long time yet.

 

[fskimospy]

There are many reserve currencies. The yuan isn't going to be one of them until China undertakes some pretty serious reforms. The weakness of the euro has become pretty apparent in recent years.

Basically, LK nailed it.

 

[norseamd]

Global reserve currencies.

surprised the pound is not more popular

 

[WelshBloke]

surprised the pound is not more popular

Yeah, not since the 30's.

 

[LegendKiller]

aren't the chinese testing changes to their currency in shanghai at the moment though?

The "changes" are puffery. The "band" it is allowed to float in is a joke and they intervene at the slightest sign of volatility. They know they can't completely float, it'll never work. Their goods would instantly become higher priced, crushing their economy.

 

[KB]

Its not likely to happen that the dollar loses its reserve currency status. In order for this to happen another country would have to produce as many currency transactions (buying and selling) as we do, and only China may be able to do that as some additional growth.
I have heard rumors of China buying gold in large quantities with the thought of making the yuan backed by gold. This would greatly increase the chances of the yuan becoming a reserve currency. In such an event the US dollar would lose significant value; however once it becomes cheap enough, the US would see large trade gains as its good are cheaper and the currency would rebound.

http://www.forbes.com/sites/gordonc...the-chinese-buying-record-quantities-of-gold/

 

[angelina87]

The US will be at the egde of economic fall. While threatening Russia Obama has forgotten to pay attention to our internal economy

 

[fskimospy]

The US will be at the egde of economic fall. While threatening Russia Obama has forgotten to pay attention to our internal economy

I peg the odds that you are actually from the US and are worried about "our internal economy" to be about zero.

Can we ban this idiot already?

 

[brycejones]

The US will be at the egde of economic fall. While threatening Russia Obama has forgotten to pay attention to our internal economy

Didn't they teach you anything about trolling when they hired you at the Russian foreign ministry?

You suck at distributing propaganda.

 

[realibrad]

the u.s.d. will be completely dumped from all foreign reserves within the next 10 years. the State of Israel has at least another 125 years before the arabs get their eamon de valera/nelson mandela; I would say the U.S.G. has a maximum of 25 years left before it collapses under its own weight.

That would be a very big shock to all the people who invested into the US after 2008.

Hell, even after the US got downgraded by S&P people just invested more. The theory is that if the US got downgraded to AA+ then the rest of the world must be way worse off, and so it flooded money into our economy.

I think the US could see a decline in people using its currency as a reserve, but it will be very slow and over many decades. No way in 10 years.

 

[yllus]

The funny thing is that the 2007 fiscal crisis actually proved that the U.S. dollar will continue being the default reserve currency for some time to come.

 

[Harvey]

The US will be at the egde of economic fall. While threatening Russia Obama has forgotten to pay attention to our internal economy

Since you don't have the balls to tell us you're posting from Russia, who gives a flying fsck at a rolling doughnut what you think?

Русский мудак :thumbsdown:

 

[BurnItDwn]

the u.s.d. will be completely dumped from all foreign reserves within the next 10 years. the State of Israel has at least another 125 years before the arabs get their eamon de valera/nelson mandela; I would say the U.S.G. has a maximum of 25 years left before it collapses under its own weight.

No, that's not my plan. Since you believe that, you also should believe my plan. My plan is that in 3 years I will be recognized as lord ruler dictator king of earth. Earth day, will become a celebration of my rule. My reign will last a thousand years, since the secret of the fountain of youth will be revealed in 7 years time, and therefore, I will live. The people will be very happy, since I will learn the alchemical secret of spinning straw to gold. (the secret ingredient of course, is co2), in the process of making my gold palace, I will suck enough co2 out of the atmosphere to cure global warming. Nelson Mandela will come back from the dead, and he will move to Jamaica and hang out with Zombie Bob Marley. The world will live happily for my reign.

 

[WelshBloke]

No, that's not my plan. Since you believe that, you also should believe my plan. My plan is that in 3 years I will be recognized as lord ruler dictator king of earth. Earth day, will become a celebration of my rule. My reign will last a thousand years, since the secret of the fountain of youth will be revealed in 7 years time, and therefore, I will live. The people will be very happy, since I will learn the alchemical secret of spinning straw to gold. (the secret ingredient of course, is co2), in the process of making my gold palace, I will suck enough co2 out of the atmosphere to cure global warming. Nelson Mandela will come back from the dead, and he will move to Jamaica and hang out with Zombie Bob Marley. The world will live happily for my reign.

Can I be minister in charge of hookers and blow?

 

[DesiPower]

Dollar will devaluate and imports will be expensive, bringing back more jobs to US

 

[WelshBloke]

The US will be at the egde of economic fall. While threatening Russia Obama has forgotten to pay attention to our internal economy

Since you don't have the balls to tell us you're posting from Russia, who gives a flying fsck at a rolling doughnut what you think?

:thumbsdown:

So when he said "Obama has forgotten to pay attention to our internal economy" he was telling the truth, it's just a shame that the Putin has forgotten to pay attention to their economy as well.

 

[moonbogg]

Since no one wants to actually answer the hypothetical question, I will. The US economy would completely crash overnight and the entire global economy would descend into absolute chaos.
Neighbors would go to war with each other without the US around. So, if it happened suddenly, everyone has as much to lose as the US. It would be the ultimate power vacuum.

 

[JEDIYoda]

What other currency are people going to use?

We could use Anarchist's toe nail clippings....

 

[WelshBloke]

Since no one wants to actually answer the hypothetical question, I will. The US economy would completely crash overnight and the entire global economy would descend into absolute chaos.
Neighbors would go to war with each other without the US around. So, if it happened suddenly, everyone has as much to lose as the US. It would be the ultimate power vacuum.

Why do you think that the US economy would crash?
It would probably help your exports TBH.