Economy China Ditching Dollar

[Jake the Muss]

With everything going on, this story is quietly flying under the radar:



After much speculation and worry, the US Federal Reserve has opted not to lower interest rates below zero. Rick Sanchez breaks the news as it unfolds. However despite the Fed's decision, fears over the falling value of US currency have led China to nevertheless decide to actively sell its share of US debt, of which it owns more than trillion dollars, in an attempt to unseat the preeminence of the US dollar in global commerce. Then "Boom Bust" co-host Ben Swann explains the details before joining UK MP George Galloway on a panel to discuss the implications.

The Republican response is to default on the debt:
"The recent intensification of President Donald Trump’s hard line on China has included a wide-ranging grab bag of policies and proposals that touch on everything from student visas to soybean purchases. But the most explosive might be the suggestion floated by some right-wing lawmakers and commentators that the country could choose to default on some of the nearly $1.1 trillion in U.S. Treasury bonds held by China.

The proposal alarms analysts, who say even entertaining the idea is dangerous in an economic environment characterized by a pandemic-driven recession and a massive increase in the national debt."
https://news.yahoo.com/u-refuse-pay-back-1-160400207.html

 

[Sauron]

I don't know when the dollar will lose primacy, but when it does happen it'll be really bad news for the US.

What i do know is that it will be China that offers the alternative.

 

[Gunny]

This article by RT tries to paint what’s happening as China strategically attempting to undermine the dollar. Other publications have painted it differently.


https://alhambrapartners.com/2019/04/24/chinas-dollar-problem-comes-out-of-the-shadows/

https://www.google.com/amp/s/amp.sc...over-possible-us-dollar-shortage-risk-forcing

https://www.google.com/amp/s/www.ws...-banks-are-running-out-of-dollars-11556012442

China isn’t deliberately pivoting away from the dollar. They’re running out of dollars - which they need - and are trying to spin their desperate predicament as an action rooted in strength. RT is happy to help.

 

[Jake the Muss]

This article by RT tries to paint what’s happening as China strategically attempting to undermine the dollar. Other publications have painted it differently.


https://alhambrapartners.com/2019/04/24/chinas-dollar-problem-comes-out-of-the-shadows/

https://www.google.com/amp/s/amp.sc...over-possible-us-dollar-shortage-risk-forcing

https://www.google.com/amp/s/www.ws...-banks-are-running-out-of-dollars-11556012442

China isn’t deliberately pivoting away from the dollar. They’re running out of dollars - which they need - and are trying to spin their desperate predicament as an action rooted in strength. RT is happy to help.

China is running out of dollars, so their solution is to taper their US debt buying and sell off their holdings? How does that make any sense?

It seems like the spin job is trying to paint a picture that China still has an appetite for US debt.

 

[D3THRONED]

I don't know when the dollar will lose primacy, but when it does happen it'll be really bad news for the US.

What i do know is that it will be China that offers the alternative.

Dude. How much is the CCP paying you?

 

[SammyPops]

I don't know when the dollar will lose primacy, but when it does happen it'll be really bad news for the US.

What i do know is that it will be China that offers the alternative.

Who in their right minds would trust an authorian govt's currency?

Couldn't watch clip at work: who is buying the UD debt and where is China moving that money?

If I understand it correctly, selling debt will only affect a currency if you buy another currency

 

[Sketch]

I don't know when the dollar will lose primacy, but when it does happen it'll be really bad news for the US.

What i do know is that it will be China that offers the alternative.

The only people deciding something that huge will be Globalists. It will be neither America nor China. I honestly doubt it happens anytime soon because the Dollar is so entrenched everywhere and it will be a nightmare to switch over to an alternative. I have no doubt that it will happen in the future as those greedy lying and thieving Globalists would love to create some new way to steal. For the time being the Dollar is staying put.

 

[Jake the Muss]

Who in their right minds would trust an authorian govt's currency?

Couldn't watch clip at work: who is buying the UD debt and where is China moving that money?

If I understand it correctly, selling debt will only affect a currency if you buy another currency

Great questions. Does anybody have any insight?

 

[jx820]

The US is "printing money" to float the markets through the pandemic. The increased supply of dollars reduces the relative value of each dollar (i.e. your dollar is worth less in currency markets than it would have been otherwise).

China's US debt holdings are becoming less valuable so they are trying to dump them before they slide any further. The exchange rate isn't in a free fall, but even if it loses 1% you have to understand that 's 1% of somewhere between 1 and 1.5 trillion dollars.

 

[Last Samurai]

This has been predicted by many economists for some time now.

As the U.S. devalues their currency through printing more money, it lowers the value of dollar reserves held by foreign countries. It would be stupid of China to continue to hold these assets despite them losing value.

Hence why they are looking to increase their gold reserves instead, as it is much better at retaining its value. The dilemma facing China is that if they sell off too much at once, then that too would cause the dollar to lose value - making their remaining dollar reserves worth even less. So it has to be done gradually, or else they wind up shooting themselves in the foot.

 

[Gunny]

China is running out of dollars, so their solution is to taper their US debt buying and sell off their holdings? How does that make any sense?

It seems like the spin job is trying to paint a picture that China still has an appetite for US debt.

China is running out of dollars, so their solution is to taper their US debt buying and sell off their holdings? How does that make any sense?

It seems like the spin job is trying to paint a picture that China still has an appetite for US debt.

You think that my articles, written a year ago and describing a years-long trend are attempting to spin your RT segment from a few days ago?

Huge if true!

 

[Rod1]

What i do know is that it will be China that offers the alternative.

No it wont, at least not under Xi Jinping.

 

[Rod1]

China is running out of dollars, so their solution is to taper their US debt buying and sell off their holdings? How does that make any sense?

Because you sell US bonds in the secondary market in exchange for actual liquid dollars.

How does it not make sense? you need money now so you sell your "money later".

 

[Jake the Muss]

Because you sell US bonds in the secondary market in exchange for actual liquid dollars.

How does it not make sense? you need money now so you sell your "money later".

Did you conveniently miss the part where I said that they are tapering their US debt buying in addition to selling off their holdings?

Also, selling off their holdings doesn't mean they are exchanging them for dollars.

 

[Jake the Muss]

You think that my articles, written a year ago and describing a years-long trend are attempting to spin your RT segment from a few days ago?

Huge if true!

The sources that you provided seems like some propaganda puff pieces about China's supposed diminished appetite for holding US debt is so that they have more dollars, while the most up to date discussion about the topic is stating that the Chinese can't get out of their US debt holdings fast enough.

 

[The Diplomat]

I don't know when the dollar will lose primacy, but when it does happen it'll be really bad news for the US.

What i do know is that it will be China that offers the alternative.

Luckily for the US, the Chinese Yuan is constantly moving and is very weak right now. The US dollar is more stable than any other currency on the planet. The Euro is gaining strength, but the dollar is reliable. The GFC proved as much. When the entire world goes in recession, the US can take a hit, but bounces back stronger. Nobody will be willing to give up on the mighty, stable and highly valuable American dollar for the weak and constantly changing Chinese yuan. At least no time soon, IMO.

 

[Rod1]

Did you conveniently miss the part where I said that they are tapering their US debt buying in addition to selling off their holdings?

Tapering means slowing down isnt?

 

[Amerikuracana]

Screw them. They only have what we gave them, and we have woken up. Their system collapses without us faster than ours. A national effort to build/subsidize a string of a couple hundred factories with complete chains of production should be Trump executive order. You want to win the election? You are welcome. There it is.

 

[Jake the Muss]

Tapering means slowing down isnt?

Yeah, which means they are shrinking their reserves. There is more going out than coming in. They probably don't want to completely stop buying or else they will spook the market and get stuck holding a massive bag of devalued dollars. Instead, they are converting their holdings into hard assets and buying up the world.

@Gunny

 

[brackis1]

This article by RT tries to paint what’s happening as China strategically attempting to undermine the dollar. Other publications have painted it differently.


https://alhambrapartners.com/2019/04/24/chinas-dollar-problem-comes-out-of-the-shadows/

https://www.google.com/amp/s/amp.sc...over-possible-us-dollar-shortage-risk-forcing

https://www.google.com/amp/s/www.ws...-banks-are-running-out-of-dollars-11556012442

China isn’t deliberately pivoting away from the dollar. They’re running out of dollars - which they need - and are trying to spin their desperate predicament as an action rooted in strength. RT is happy to help.

Damn we agree!
RT is trash Russian Prop

 

[Sauron]

Nobody will be willing to give up on the mighty, stable and highly valuable American dollar for the weak and constantly changing Chinese yuan. At least no time soon, IMO.

Change happens slowly and then suddenly.

China is creating the financial infrastructure that will create demand for their currency. Whether it's the Shanghai stock (STAR) market or the issue of government bonds in Yuan. China has created an inter-bank messaging system to provide an alternative to SWIFT. Along wither other countries they have struck deals to deal bi-laterally in their own currencies. It's happening....just slowly.