US can only print more USD, but China can make the things that back USD's value.
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Chinese Economics Thread
- Thread starter Norfolk
- Start date
Yes, to people saying why China isn't kicking trades using dollars, the whole Bretton woods system has been essentially parasited and puppeted by China. The dollar serves to spread and create dependencies on Chinese goods, through that, it redirects all the development (if defined as improvement in industrial/tech capability) nearly exclusively to China.Maybe this is also a sign that the Petro-dollar is over. The USD isn't anchored in oil anymore, it is anchored in Chinese goods. If one day China stops accepting USD, the dollar hegemony will come crashing down. Notice how we don't hear anymore nonsense about kicking China out of SWIFT anymore.
Dollar rich countries (US) get to have more goods in return to maintain their living standards. Once those countries run out (EU) of if they were never dollar rich to begin with, they get their resources siphoned by China and/or go into indefinite recession.
De-dollarization won't happen so fast, as a parasite leaves the host, it's fatal to the host but also dangerous to the parasite, which must now evolve to survive as an independent animal. China's move to start issuing bonds at lower interest rate than US shows that there's still a lot to be harvested from the dollar system.
You said as if China is parasite. China is the host, the US is parasite sucking on China hard work.Yes, to people saying why China isn't kicking trades using dollars, the whole Bretton woods system has been essentially parasited and puppeted by China. The dollar serves to spread and create dependencies on Chinese goods, through that, it redirects all the development (if defined as improvement in industrial/tech capability) nearly exclusively to China.
Dollar rich countries (US) get to have more goods in return to maintain their living standards. Once those countries run out (EU) of if they were never dollar rich to begin with, they get their resources siphoned by China and/or go into indefinite recession.
De-dollarization won't happen so fast, as a parasite leaves the host, it's fatal to the host but also dangerous to the parasite, which must now evolve to survive as an independent animal. China's move to start issuing bonds at lower interest rate than US shows that there's still a lot to be harvested from the dollar system.
As long as China retains producer power, it doesn't matter if the world retains dollar hegemony...
If Americans ever decide to sanction China, ROW will seek to bypass it because it is much harder to let go of material dependencies.
Remember, money is a social construct made to facilitate material exchanges.
If Americans ever decide to sanction China, ROW will seek to bypass it because it is much harder to let go of material dependencies.
Remember, money is a social construct made to facilitate material exchanges.
"This chart is truly remarkable. For the first time, Chinese exports to Central and Eastern Europe have surpassed those of Germany.
On one hand, this highlights China's impressive strides in advanced manufacturing. On the other, it signals significant challenges for Europe's economic core."
I'm crediting US fairly as they were the ones that started the system, we're both essentially leeching off the rest of the world. But China has more and more displaced US as the indispensable leech that will kill the host when removed, while US is being relegated to just a normal leech you can cut off.You said as if China is parasite. China is the host, the US is parasite sucking on China hard work.