Author: jimmy67

Are Asian central banks using RMB as reserves now? [Copy link] 中文

hanlei has been deleted
Post time 2007-1-12 14:25:08 |Display all floors

dear moderator zinc06

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Post time 2007-1-12 14:27:04 |Display all floors
I don't think Asian central banks are now using RMB as reserve. But there's the possibility in the future. With China's economy growing so quickly, the yuan keeps going strong. Falling dollar no longer delivers the kind of security countries need as the yuan does.

The US economy is slowing and will keep the down-ward trend in the coming years. However, the boom it has achieved in the past decade can sustain the country's everyday life for a period of time. It won't go bankrupt at least for now.

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Post time 2007-1-12 14:29:38 |Display all floors
It is a proof that China becomes much stronger   maybe in the future all countries use RMB as reserves.

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Post time 2007-1-12 14:34:20 |Display all floors

certainly it will!

renminbi will become more valuable and widely accepted, HK sar will turn its back on US dollars, and Asia, at least east Asia will take renminbi the absolutely leading currency.

but it needs time, though. actually I sincerely believe anything could happen within maybe ten years.

although Hong Kong Chief Donald Tsang said the sar would not disconnect with dollars untill 2047, anything could happen.

how could Hong KOng stick to the depreciatory currency when another economic power to which HK's economy is tightly connected emerges. it will be marginalized in the region.

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Post time 2007-1-12 14:34:54 |Display all floors

Solvency remains until psychological bottom line is broken

Originally posted by hanlei at 2007-1-12 14:25
While at present US is still "solvent", but if Bush keeps sending more troops to Iraq, it could mean trouble.


Bush simply defers payment to his successors, just like his predecessors did. His followers could do the same as well. The time horrizon is infinete: you can always defer payment to later peroids, as long as one condition holds: people believe you can pay back. Then, when will US go bankrupt? -- When its economy, pushed forward by its technological competitiveness, go deep, deep down enough to convince people that they can't afford today's spending. When will that happen? I don't know.

What I want to say is: actual conditions matter less than EXPECTATION, which is, in fact, the spirit of economics and statistical studies.

[ Last edited by zinc06 at 2007-1-12 02:59 PM ]

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Post time 2007-1-12 14:37:36 |Display all floors
I don't think Asian central banks are now using RMB as reserve. But there's the possibility in the future. With China's economy growing so quickly, the yuan keeps going strong. Falling dollar no longer delivers the kind of security countries need as the yuan does.

The US economy is slowing and will keep the down-ward trend in the coming years. However, the boom it has achieved in the past decade can sustain the country's everyday life for a period of time. It won't go bankrupt at least for now.

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hanlei has been deleted
Post time 2007-1-12 14:59:45 |Display all floors

dear moderator zinc06:

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