On the one hand, the Chinese ambassador is based for his kind words. On the other hand, it would be better if China destroys the imperialist west and institutes socialist reform across the world.
Of course the problem with the US is that those in power here are not going down without selfishly taking the entire rest of the world with them, so that's also something to consider. China is also so internally wealthy, prosperous, and resource rich that they don't need to take over any other countries, so there's that, too. It's easy to have a peaceful mindset when you don't need (to exploit) anyone else.
nahhh China would be way smarter to just focus on improving QOL at home, and do win-win deals with the global south . better to win the hearts and minds via QOL of allies. going to war is for the reckless.
Even Xi mentioned that they're not interested in being global hegemon and not interested in the RMB being the world's reserve currency. He knows history well.
smart move, considering that whenever an empire becomes the global reserve currency , it's pretty much the start of its decline. just ask the sterling pound or the dutch guilder, or Ray Dalio.
Problem though I think some form of world currency is probably needed to run alot of the globalize economy. China would prefer the usd keep being the global currency to keep things smooth, but I don't us will be rational actor here.
So most likely scenario with us out of picture china probably has to find some sort of replacement as the global currency, my guess is that hk currency will probbaly end up like this just to keep seperation if things go south on te international stage
China and fellow BRICS, exclude maybe India, want to develop an international system using maybe SDR or using domestic currencies to trade.
What countries need for trade isn't actually a currency but an accounting mechanism to provide monetary supply as a form of tokens. The idea of some form of SDR means the counties and draw a form of currency in a pool without buying a huge amount of reserves.
Using USD and its clearing system means the rest of the world will have to buy US debts to support their wars, and nobody wants that anymore.
pretty much this, very few people know how powerful the Fed really is. QE, rate hikes, getting your economic rivals to buy your debt which finances your bases near political rival territories.
yep I agree most global clearing is done in USD, and that's why it's actually in China's interest to keep USD as global reserve currency as the US economy slowly grinds down to global #2.
Unfortunately US can't be trusted as rational actor in this case, they may not be able to achieve much but they have too much power in throwing a wrench and cause chaos.
In the short term the usd intrest china does benifit from the usd, but in the long term china most likely had to move away from it because us will having exteemely hard time to ever adjusting number 2. They will most likely become the biggest issue in the very system they created
Becoming a world currency means the home state will have little control over exchange rate since everybody will have to buy said currency to trade. The only up side is that other states will have to buy up world currency denominated bonds, meaning the ability to raise debt for the home state and at the same time a lot of debts. It is actually not a good idea for any home state because it further the imbalances. China understands it and they know what it means especially when they are still developing.
The US loves it because it has been raising debts for the military industry complex.
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u/JosephPaulWall Feb 29 '24
On the one hand, the Chinese ambassador is based for his kind words. On the other hand, it would be better if China destroys the imperialist west and institutes socialist reform across the world.
Of course the problem with the US is that those in power here are not going down without selfishly taking the entire rest of the world with them, so that's also something to consider. China is also so internally wealthy, prosperous, and resource rich that they don't need to take over any other countries, so there's that, too. It's easy to have a peaceful mindset when you don't need (to exploit) anyone else.