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
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.
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)
Yi, vice governor of the People's Bank of China 1.3.: "In terms of both monetary policies and other mechanism arrangement, China will take into full account the quantitative easing policies implemented by central banks of foreign countries."
Voice of Russia 30.3.2014: President Xi Jinping's visit to Germany yielded an unexpected success for the Chinese quest to internationalize the yuan. "Angela Merkel convinced the Chinese decision-makers to chose Frankfurt over Paris and Luxembourg. Most probable, the choice was influenced by the fact that Germany is the biggest trade partner of China in Europe with a yearly turnover of more than 140 billion euros. It is obvious that it was only a matter of time until Beijing will try to switch all the trade flows between the European Union and China from US dollars to Chinese yuan. "
Robert Pringle, chairman and founder of the Central Banking Journal, told RT: "... We rely on pumping up credit to get the real economy moving. And the problem is that we have to pump up the credit too much in order to reduce unemployment. We are going into the same thing again...Obviously we are moving to another boom and bust period. It’s not just the property prices, in many emerging markets you are also getting this. Stock markets are at an all-time high. And yet many people fear a crash. We are gambling immense amounts of money, 4 trillion dollars on the FED balance sheet. ...My book is called the Money Trap because the system is set up in such a way that people, governments, banks, and major actors think that they can do well in such a system with free capital movements, free exchange rates, liberal environment, but they neglect international stability.
#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.
As of this November, China is home to the world's largest-volume bitcoin exchange (BTC China), some of the largest mining operations, and could well be leading the global rise of bitcoin. It was in May that China surpassed all other countries with 84,000 bitcoin wallet downloads, a world record few noticed.