James Meadway , Jan 30, 2023. Are we seeing the collapse of the dollar-dominated global economy?
Financial shocks in recent years are forcing the global monetary architecture to change, say some economists
A Forbes article made one attempt to justify the block based on national security concerns: “The Treasury Department is probably right to be concerned about a Chinese company buying Moneygram and using it as a platform to enter the US payments market,” one Salvatore Babones wrote. “After all, the Treasury Department itself uses the global dominance of Visa, Mastercard and the SWIFT interbank payment system to exert pressure on other countries in the service of U.S. foreign policy goals. As Fintech leads to the consolidation of payments systems under the control of a small number of global giants, it is strategically important that those giants be under domestic control.”
by Philip S Golub
a slow shift towards a tripolar world monetary system no longer exclusively centred in the West
Despite worries over the end of the Chinese economic miracle and harder times because of the aftershocks of the 2008 financial crisis, global rebalancing is happening — and quickly. The International Monetary Fund's executive board announced on 30 November that the Chinese currency, the renminbi (RMB) or yuan, would soon be included in the basket of currencies that make up its Special Drawing Rights (SDR), beside the US dollar, the euro, the British pound and the yen. The decision recognised (...)
The European Central Bank will discuss next week whether to begin laying the groundwork to add the Chinese yuan to its foreign-currency reserves, according to two people with knowledge of the matter.
Such a measure by the ECB would mark a major step in the internationalization of China’s currency, also known as the renminbi. While China is the world’s second-largest national economy, the yuan isn’t ranked among the most-held foreign reserve assets, according to data from the International Monetary Fund. The U.S. dollar leads at 61 percent of holdings.
En kinesisk solskenshistoria. Thursday, October 12, 2006 By Andrew Batson in Wuxi, China, The Wall Street Journal. "When he arrived in Australia 18 years ago as a physics student, Shi Zhengrong scraped by on a meager stipend from the Chinese government t
China signed on last year to a G-20 platform for “strong, sustainable and balanced growth,” which has become a sort of motto for global the recovery. But there is little agreement on how to make the motto a reality. (NYT Yuan News)
While the world cheered - because the world needed to sell China commodities and other things at high prices to stay afloat - China went on a borrowing spree that is unmatched in world history. - "But don't ask for whom the bell tolls. Keep in mind the Chinese sleight of hand act has been the thing holding the whole global financial system together. "
#1 Chinese credit rating agency Dagong has downgraded U.S. debt from A to A- #2 China's recent currency swap agreement with the eurozone... will result in a lot less U.S. dollars being used in trade between China and Europe... #3 Currency swap agreement with UK last June #4 The exposure to the 1.3 trillion dollar debt is becoming a major e internal issue #5 Govt adviser Mei Xinyu's warning that China may decide to completely stop buying U.S. Treasury bonds #6 China's State Administration of Foreign Exchange is looking to diversify into real estate investments in Europe #7 Xinhua has called for a "de-Americanized world" #8 and said that the debt deal "was no more than prolonging the fuse of the U.S. debt bomb one inch longer." #9 China is the largest producer of gold in the world, and it has also been importing an absolutely massive amount of gold ... the Chinese appear to be accelerating their gold buying.