I can see this happening. With the disregard of our government on spend and borrow over the last couple of decades. And the current events unfolding with the social unrest and the recession cause by the virus. I can see where they would want to make the move to take over.

I've been hearing variations on this same theme for decades.  It may come true someday, but hasn't yet.  The US Dollar remains the worst currency out there,  except for all the others.

"...The US Dollar remains the worst currency out there,  except for all the others....."

lol......that's a funny way to put it !

It's a paraphrase of the Churchill quote..  "Capitalism is the worst system,  except for all those others"..     Or maybe it was Democracy?       But the phrase can be modified to support all sorts of things.

The US Dollar, with all of it's flaws, remains the currency of the choice as does the US, for the same reasons.  It's messed up,  but remains the destination of choice. Another UK PM Tony Blair said of the US,  The true measure of a country is in how many want in vs how many want out",  or something like that. 

"The true measure of a country is in how many want in vs how many want out",  or something like that."

That speaks volumes Tim.

same as tim new... everyone has been warning about the dollars status for decades.  so for now, ignore chinas warning.  mr armstrong has some good thoughts on this problem.  

many folks around the globe are hoarding dollars because of their own govts bad policies.  in europe, govts are trying to force everyone to put all money (euros) into the banking system, and report every dime they have/make/etc.  so to avoid this fascist mentallity, people stash dollars under the mattress.   govts use the excuse of fighting money laundering, trying to collect taxes (govts hate black markets),  and wanting to make sure everyone pays every penny of tax that is owed.  

of course politicians will Not admit that the problem is this... they can Never collect enough tax money to pay for all the govt spending.  so excessive govt spending has lead to monetary fascism.  hoarding dollars is the way people are trying to dodge the monetary fascists.  

at some point that may change,  but probably not now.  

correct gunterK... the dollar is king of the sewer for now.  it sucks,  but all the rest are worse. 

prior to this  covid thing... i was telling students... if the chinese money supply increases at 20% per year,  and the dollar money supply increases at 6% per year,  then the dollar will not go down against the chinese yuan.  it should go up,  not down (vs that currency anyway).  

Hi Bear

Please help me understand

1st: Is this true??

China 20%

USA 6 %

Or was that something that could happen, for debate in the class room. I don't know as I was not in your class room

Given you said before the pandemic, so that is as it may be

But as of today

Isn't the USA increasing USD faster than China Yaun

I don't know so I am asking somebody who has the correct numbers, as of today

My assumptions may be incorrect

I am a bit confused a you obviously know

I did a post but put it in the wrong place

I can find no evidence the PBOC is thinking about QE

In fact the PDOC is prohibited from buying corp bonds

The USA has no limit on Fed/treasury buying

So what is the lesson to be learned in the class room of this china USD thing

Granted pre pandemic but I thought the post is about today

The USA is using QE much more than china

Just trying to learn some thing, nothing personal

wglassfo... that was just a figure i saw a few years back.  but i don't think it has been accurate lately.   recently (before covid)... i think the chinese figures were closer to ours here in the u.s.

but the point is not so much the accuracy of the figure currently.   the point is,... even if you think the buck is being abused by our financial leaders... other societies are abusing theirs even more.   so, ours may not go down (against those other currencies).  hence... the king of the sewer.