Should the yuan replace the dollar as the world’s reserve currency?

[Mick1]

Had a discussion with a friendly acquaintance, a young man who speaks Mandarin (he’s  caucasian, born and raised in Marin County) and works for a company with significant Chinese investment.

We agree politically in some ways, not so much in others. But the gulf is widest when we discuss China and Chinese policies. He’s convinced that the yuan should replace the dollar as the world’s reserve currency. I regard China as a fundamentally dishonest country that rapes the world of intellectual property — and has done so for decades. My first boss in the 1980s did extensive business with both Japanese companies and Japanese-American companies, ditto with Korean, Vietnamese and Malaysian companies. He wouldn’t do any business with China, Chinese people or Chinese companies.

I explained that I didn’t see why the world would want to use the currency of a dictatorship with a flawed economic system. I allowed that Chinese people were thrifty, hard-working, etc. but that there was no global trust for the Chinese, whether it was Mao or Xi or anyone else who ran the place.

The dollar is the world’s currency because of the global trust that backs it, because of America’s economic and military might, because of what Americans bring to the table. Millions of people annually try to get into the United States…no one’s trying to emigrate to China.

Thoughts?

Move over, U.S. dollar. China wants to make the yuan the global currency. (msn.com)

Audaces fortuna iuvat

[Legend]

Too many artificial capital controls not to mention the whole totalitarian state thing.  The world should be looking to contain China, not let it metastasize.

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Sic transit gloria mundi (so shut up and get back to work)

[Author]

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