Can China Dethrone The US Dollar As Global Reserve | WHAT REALLY HAPPENED

Can China Dethrone The US Dollar As Global Reserve

As a result of this ‘trade war’ China has let the yuan slide versus the USD which is a warning to Trump, specifically Mnuchin, popularly known as one of the most slippery dealers (IndyMAC and One West) to ever walk the earth (and China knows that). China is hoping that a lower yuan will offset tariffs just as the US has ‘weaponized’ the dollar and has imposed sanctions and tariffs on China. Because the sums are so vast with China holding so much US debt, and because China depends on exports to the west, China is somewhat boxed in.

The point being…. what option does China have in this war? China has another option — rather than sell Treasury’s or fold to US trade demands — China could reveal its physical gold reserves and partially back the yuan with gold. (NB: return to a full gold standard in the present world economy is not possible – we are only discussing a partial backing, which has been the prevalent standard, ie partial not full, throughout modern monetary history until the adoption of a full by-decree currency by the US on August 15, 1971.)

In this scenario China could do the former Swiss thing and partially back the yuan with gold, just as the Swiss once partially backed the swiss franc with gold (40% reduced to 25% in 1997) until the Swiss franc threatened to become the world reserve currency usurping the USD by 1999.

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