China's move will deny US the ability to print trillions of dollars with impunity


The US dollar is currently the world's dominant reserve currency. This means that many governments keep their savings in US currency, often in the form of US Treasury bonds. For these reasons, the United States Federal Reserve can print dollars tirelessly, and other countries accept them as the global standard.


But what if Beijing challenges Washington and creates its own global monetary system? The experts of the Sovereign Man resource argue about this.

If the Americans defaulted on that part of the external debt that belongs to the PRC, the latter could strike a blow at the US monetary system by creating an alternative world monetary center. And if in this case other countries of the world begin to use the Chinese system and increase their share of gold and foreign exchange reserves denominated in yuan, China will take away from the overseas financial monopoly the market share and some of the advantages of the dollar.

Even if Beijing has only a small opportunity to resist the expansion of the American currency, it will lead to unpredictable consequences for Washington - the Federal Reserve will no longer be able to print trillions of unsecured dollars with impunity.

Sovereign Man analysts say.

In this case, the demand for US government bonds from the governments and national banks of other countries will decrease, which will lead to further declines in the quotes of the American currency - this will cause consumer prices to rise. Thus, the confrontation between the United States and China could become a real threat to economic system of America, as well as for the "dollar needle" on which the Americans hooked the entire civilized world in the post-war era.
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  1. Bakht Offline
    Bakht (Bakhtiyar) 24 August 2020 15: 58
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    If the Americans defaulted on that part of the external debt that belongs to the PRC

    How it might look in practice? That is, a partial default? I cry to some - I don’t cry to others? I can hardly imagine such an option. Of course, the States can do this trick. Moreover, they are already exaggerating the topic that China owes them almost 10 trillion.
    Suppose the United States has defaulted on the portion of the external debt that belongs to China. But that leaves virtually no option for China. And giving up the dollar will be a FORCED measure for China.
    That is, China's actions will be a response, not a cause. China will have to turn to this same measure of influence if the US-China trade wars continue.
    1. Vladimir Tuzakov (Vladimir Tuzakov) 26 August 2020 11: 17
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      The dollar financial pyramid begins to lose stability, the military and economic domination of the United States ends, on which the compulsion to world recognition of the dollar was built ... Only the works of entire generations have been turned into dollars, here is the understanding that with the collapse of the dollar, the profit of generations is also lost - a sort of a dilemma ... But the Fed itself has to look for a way out, because further printing of an unsecured dollar no longer saves the United States, but floods the world with dollars, which leads to a sharp devaluation of the dollar ... Dollar perturbations and collapses are inevitable ... Who is smarter, it has been quietly dropping dollars for a decade, and then Russia is forced to dump dollars because of sanctions and possible freezing of accounts ...
  2. steelmaker Offline
    steelmaker 24 August 2020 16: 11
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    if the Americans defaulted on that part of the external debt that belongs to the PRC

    I, of course, love vodka. But how much do you need to drink to dream like that?
    1. paramidon tabletkin (paramidon tabletkin) 24 August 2020 20: 53
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      Start drinking and gradually an understanding of the obvious things will come ...
  3. gorenina91 Offline
    gorenina91 (Irina) 24 August 2020 18: 29
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    China's move will deny US the ability to print trillions of dollars with impunity

    If the Americans defaulted on that part of the external debt that belongs to the PRC, the latter could strike a blow at the US monetary system by creating an alternative world monetary center. And if in this case other countries of the world begin to use the Chinese system and increase their share of gold and foreign exchange reserves denominated in yuan, China will take away from the overseas financial monopoly the market share and some of the advantages of the dollar.

    - Ha ... - Yes, this is the same ... that ... dreaming that the Americans will suddenly give the Chinese all the reins of control of the Central Bank of Russia ...
    - Here is the US Central Bank of Russia; which they dispose ... as they wish ...
    - And suddenly the Americans give this Central Bank to China ... - Yes, then China would heal at its pleasure ...
    1. paramidon tabletkin (paramidon tabletkin) 24 August 2020 21: 10
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      Another adept of the Treasury witness sect.
    2. Alexander Antropov (Alexander Antropov) 25 August 2020 17: 16
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      Not only China, but also Russia.
    3. shinobi Offline
      shinobi (Yuri) 26 August 2020 11: 21
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      This, tie so little white to jam.
  4. Citizen Mѣshkov (Sergѣi) 24 August 2020 18: 35
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    Hurry to have already started.
  5. It is high time to drive amers overseas, where they can build democracy and suck a paw!
  6. Sergey Latyshev Offline
    Sergey Latyshev (Serge) 24 August 2020 22: 55
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    Damn, they've been chatting about the debt default for 2 years already, I'm not tired of it.
    If dofiga were printed, the dollar would fall in price against the ruble. In the meantime, vice versa.
    Apparently, someone is printing "trillions of rubles" .....
  7. Alexzn Offline
    Alexzn (Alexander) 25 August 2020 07: 33
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    I would like to know what it is - UNPUNISHED to print trillions of dollars.
    1. vikganz Offline
      vikganz (Vik Ganz) 25 August 2020 08: 55
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      Six trillion has already been printed. No "under what". This is "Impunity".
      After a while they will transfer them into "debt". And six more will be added to the 26 trillion.
  8. Alexzn Offline
    Alexzn (Alexander) 25 August 2020 09: 39
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    Quote: vikganz
    Six trillion has already been printed. No "under what". This is "Impunity".
    After a while they will transfer them into "debt". And six more will be added to the 26 trillion.

    Such an issue is automatically made against the state debt and is serviced from the state budget.
    The word PUNISHMENT has a very specific meaning. If servicing the public debt is perceived as a punishment, then why with impunity? And what is the connection between punishment and China?
  9. Alexey Klimov Offline
    Alexey Klimov (Alexey Klimov) 25 August 2020 12: 29
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    If ... A good word is "if".
  10. Alexander Antropov (Alexander Antropov) 25 August 2020 17: 14
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    So China needs to collapse the dollar, since this is a simple candy wrapper, not provided with anything, and let America feel on its own skin what a fall into the abyss is.
  11. shinobi Offline
    shinobi (Yuri) 26 August 2020 11: 26
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    As long as China is a creditor to the United States, there will be no sharp gestures on its part. And he is not able to knock out debts by force. Not yet able to.