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What Could Dethrone the Dollar as Top Reserve Currency?

What Could Dethrone the Dollar as Top Reserve Currency? Central banks seem leery about the Chinese yuan. What will finally pull the rug out from under the dollar’s hegemony? The euro? The Chinese yuan? Cryptocurrencies? The Greek drachma? Whatever it will be, and however fervently the death-of-the-dollar folks might wish for it, it’s not happening […]

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Forget the Yuan: King Dollar is Here to Stay

Forget the Yuan: King Dollar is Here to Stay Many believe deficit spending will kill the US dollar as a reserve currency and the yuan will take over. They are wrong. Economist Daniel Lacalle asks Can China Really Kill The US Dollar Supremacy? >Why China Will Fail to Dethrone the US Dollar First, because it […]

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A “Death Spiral” for the Chinese Yuan?

A “Death Spiral” for the Chinese Yuan? The “impossible trinity.” The authorities in China are in a desperate juggling act, trying to keep a growing number of rotting oranges, porcelain plates, burning torches, and explosives in the air all at the same time. But it’s not working very well anymore. Thursday morning, the People’s Bank of […]

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IMF’s Lagarde Anoints Chinese Yuan. Will it Now Demolish the “Dollar Hegemony?”

IMF’s Lagarde Anoints Chinese Yuan. Will it Now Demolish the “Dollar Hegemony?” IMF boss Christine Lagarde is gung-ho about it. IMF staff is too. The Executive Board will consider it on November 30 and in all likelihood approve it. It will take effect in October 2016. Then it’s a done deal: the Chinese yuan will […]

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China chooses her weapons

China chooses her weapons China’s recent mini-devaluations had less to do with her mounting economic challenges, and more to do with a statement from the IMF on 4 August, that it was proposing to defer the decision to include the yuan in the SDR until next October. The IMF’s excuse was to avoid changes at […]

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Riskiest End of the Junk Bond Market Just Blew Up

Riskiest End of the Junk Bond Market Just Blew Up You wouldn’t know by looking at the US Treasury market, which remained relatively sanguine this week, with only a little panic buying on Tuesday. So 10-year Treasuries ended the week near where they’d started it. But at the other end of the spectrum, the riskiest […]

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The US-China “Currency War”: Winners and Losers

The US-China “Currency War”: Winners and Losers American politicians aren’t congratulating the Communist Party in Beijing for its success in following the capitalist proverb “enrich yourself,” but screaming foul play: China falsifies the exchange rate of the yuan so that it can make more money off the USA than vice versa. The accusation, made by […]

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China To Launch Yuan Swap Trading With Russian Rubles On Monday | Zero Hedge

China To Launch Yuan Swap Trading With Russian Rubles On Monday | Zero Hedge. The world was slow to wake up to the new reality in which China is now the de facto IMF sovereign backstop, as Zero Hedge described two weeks ago in “China Prepares To Bailout Russia” when we noted that a PBOC swap-line was […]

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Olduvai IV: Courage
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