Formerly NE North Dakota, now NW MN | right before it's splattered all over a windshield.
China is as invested as we are in maintaining the USD as the world's trade and reserve currency. They peg to us. They are so committed to that peg that they maintain it, despite the fact that means they have to choke on our (purposely) grossly over-valued debt. No doubt China would enjoy watching Putin try though. After the Ruble implodes, they would be able to buy natural resourced from Russia for a song and dance.
That, of course, assumes that we actually hit him with some economic sanctions that have some teeth, which... so far.... doesn't really look like we have. Europeans are too wussy to pony up and pay for some slightly more expensive nat. gas from other places.
You have to remember, the USD is a currency tied to a 16 trillionish economy, and is traded between our friends like the entire European community (when engaging outside the European area), Canada, Japan, ect. The ruble is a currency tied to....(we'll round way up here) a 2 trillionish economy, that really doesn't have much going on.
The only real "threats" to the title of "world reserve currency" are the Yen and Euro, because of their size. Maybe someday the Yuan. For now, concerns about solvency hover over both, although that narrative is quite a bit quieter in Europe these days (I have no idea if it's actually gone... I suspect not). Chinese Yuan.....well, it has to cease being a proxy for the USD first.
Honestly. Norway would have a better ability to dominate world financial affairs. |
A HUGE Russian What IF???
