Excellent and reassuring data - I had no idea that the amount of yuan held as reserve currency had *declined* in 2022! That’s certainly not the impression given by the main stream media. Thank you for this.
As flawed as the US government may be, I think the world’s peoples trust in US stability far more than they trust anything said or do…
Excellent and reassuring data - I had no idea that the amount of yuan held as reserve currency had *declined* in 2022! That’s certainly not the impression given by the main stream media. Thank you for this.
As flawed as the US government may be, I think the world’s peoples trust in US stability far more than they trust anything said or done by China’s government. As case in point, there was an article in the press a few months ago about Argentina, which was experiencing a 100% inflation rate at the time. The article said that everyone in Argentina used the US dollar as their actual currency, even taking suitcases full of American hundred-dollar bills to real estate transaction.
But a nagging question is: do you see any possible way that a switch to CBDCs could somehow upend the entire reserve currency norm, to our detriment?
The great danger is not that another fiat currency will displace the dollar, but that people will realize all at once that fiat currency by definition has no intrinsic value.
With the global economy in the state that it is, if the dollar ceases to be the global reserve currency, the result will be global financial chaos and economic anarchy. There will be no winners, only losers.
I was in high school when Nixon took us off the gold standard, and our currency became a fiat one. One of the surprises of my life is that people haven’t lost faith in the dollar (yet). I guess it’s because the dollar is backed by the ability to tax the citizens. I’ve been mystified by peoples’ enthusiasm for digital currencies such as Bitcoin, because there’s absolutely no intrinsic value to these digital creations! But yes, one of the reasons I am wary of CBDCs is that I’m afraid any attempt to transition us to them will collapse the entire house of cards, with, as you say, only losers and no winners.
Excellent and reassuring data - I had no idea that the amount of yuan held as reserve currency had *declined* in 2022! That’s certainly not the impression given by the main stream media. Thank you for this.
As flawed as the US government may be, I think the world’s peoples trust in US stability far more than they trust anything said or done by China’s government. As case in point, there was an article in the press a few months ago about Argentina, which was experiencing a 100% inflation rate at the time. The article said that everyone in Argentina used the US dollar as their actual currency, even taking suitcases full of American hundred-dollar bills to real estate transaction.
But a nagging question is: do you see any possible way that a switch to CBDCs could somehow upend the entire reserve currency norm, to our detriment?
The great danger is not that another fiat currency will displace the dollar, but that people will realize all at once that fiat currency by definition has no intrinsic value.
With the global economy in the state that it is, if the dollar ceases to be the global reserve currency, the result will be global financial chaos and economic anarchy. There will be no winners, only losers.
I was in high school when Nixon took us off the gold standard, and our currency became a fiat one. One of the surprises of my life is that people haven’t lost faith in the dollar (yet). I guess it’s because the dollar is backed by the ability to tax the citizens. I’ve been mystified by peoples’ enthusiasm for digital currencies such as Bitcoin, because there’s absolutely no intrinsic value to these digital creations! But yes, one of the reasons I am wary of CBDCs is that I’m afraid any attempt to transition us to them will collapse the entire house of cards, with, as you say, only losers and no winners.