Yu An The Dollar

(Yu An The Dollar)

Whenever there is a dominant power, the world reserve currency, means of exchange, is also dominant. When the British Empire was still "Where the Sun Never Set," the main currency was the Pound (£). As the United States rose to prominence, the reserve currency became the Dollar ($). As long as there was a strong U.S., no nation has a need to get off dollar-based transactions.

However, the value of the Dollar can fluctuate against other currencies. It can be strong against some, weaker against others. One thing that can make it weaker is the $34 trillion of public debt, the realities of the Joe Biden economy (Bidenomics), inflation, energy costs, and the list goes on. Under these circumstances, the U.S. Dollar becomes less attractive. One economic analyst even went as far to suggest that "the Dollar is finished and that the Chinese yuan (¥) should now become the world's new reserve currency.

If that were to materialize, it would rank towards the top of Biden's numerous failures. All the spending, the induced inflation has weakened the Dollar's appeal. Was this eventuality not anticipated at either the Federal Reserve or the Treasury Department ?  Is the weak dollar a deliberate policy ? While some nations are moving out of dollar denominations, there is no wholesale rush to change over to the yuan, yet.

The only real reason why there is no rush to convert is that the Chinese economy is having problems of its own. namely a real estate bubble. Were that not the case, a global conversion to the yuan could prove less problematic. That is missing the point, however. That the President and his economic policies could put the U.S. in this position, this vulnerable to China.

It has been no secret that the Peoples' Republic wants to supplant the U.S, one day as the world's lone superpower, and by extension, making the yuan the reserve supply. The tragedy here is that scenario is being allowed to transpire by the very people who supposed to prevent it.