I've just finished watching a Youtube video titled 'Could China Kill The US Dollar?' Here are my thoughts and comments:
My personal opinion is that China could
indeed kill the US Dollar, but she would do so only gradually, not
suddenly. She has been doing so slowly, but picking up speed recently, as
evidenced by the newly formed China-led Asia Infrastructure Investment
Bank (AIIB), increase of gold production and purchase, and bi-lateral
agreements signed with many countries in
using their own currencies for trading, bypassing the use of US Dollar.
The HSBC (Hong Kong and Shanghai Banking Corporation) is a
British Bank with a deep Chinese root. Both UK and Hong Kong are
HSBC's 'home markets'. HSBC is thinking of moving its headquarters from
London to Hong Kong. The UK was the first Western country and US ally that joined the China-led AIIB, followed by many others. Uncle Sam was not pleased.
I don't think China really wants to kill the
US Dollar completely. China just wants to de-dollarize the world.
China, Russia, Asia, Africa, Latin America, Middle East, even Europe and
the World, just don't want to be completely dominated by the US any
more. No more unipolar world controlled by big-boss America !
There are many speculations or predictions that the US Dollar
will collapse, but my guess is that it will not die with a big bang but
with a whimper. China is killing the US Dollar softy with her Yuan
(Chinese Dollar), also known as Renminbi (People's money).
Some Americans
are super wealthy, but as a whole, the US as a country is broke, owing trillions
of dollars to China, Japan and other countries. The 1% is still doing
great of course, but the 99% is struggling. Does Uncle Sam still want to
go to war, which is a super expensive, terrifying and deadly game,
profitable only to a few people, but at the expense of the life and
death of many ?
The US Dollar may not even die, but it will no longer
be the only dominant trading and reserve currency of the world. China's
rise is certain, but the US' decline is not. Instead of setting road
blocks and preventing China from rising, Uncle Sam should pay attention
to his own many problems. As Jimmy Carter said, the U.S. must respect
China, and vice versa. If a nuclear Third World War breaks out, the
whole world will be finished. We must never let that happen.
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