{"id":3052,"date":"2014-12-15T19:16:35","date_gmt":"2014-12-16T00:16:35","guid":{"rendered":"http:\/\/olduvai.ca\/?p=3052"},"modified":"2014-12-15T19:16:35","modified_gmt":"2014-12-16T00:16:35","slug":"yes-its-possible-for-a-gold-backed-renminbi-to-dethrone-the-dollar","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=3052","title":{"rendered":"Yes, it\u2019s possible for a gold-backed renminbi to dethrone the dollar"},"content":{"rendered":"

Yes, it\u2019s possible for a gold-backed renminbi to dethrone the dollar<\/a>.<\/p>\n

\n

\u201c[W]e want to use our reserves more constructively by investing in development projects around the world rather than just reflexively buying US Treasuries. In any case, we usually lose money on Treasuries, so we need to find ways to improve our return on investment.\u201d
\u2013 Unnamed senior Chinese official, cited in an FT article, \u2018Turning away from the dollar\u2019, 10th\u00a0December 2014.<\/p>\n<\/blockquote>\n

\u201cMutually assured destruction\u201d was a doctrine that rose to prominence during the Cold War, when the US and the USSR faced each other with nuclear arsenals so populous that they ensured that any nuclear exchange between the two great military powers would quickly lead to mutual overkill in the most literal sense.<\/p>\n

Notwithstanding the newly dismal relations between the US and Russia, \u201cmutually assured destruction\u201d now best describes the uneasy stand-off between an increasingly indebted US government and an increasingly monetarily frustrated China, with several trillion dollars\u2019 worth of foreign exchange reserves looking, it would now appear, for a more productive home than US Treasury bonds of questionable inherent value.<\/p>\n

Until now, the Chinese have had little choice where to park their trillions, because only markets like the US Treasury market (and to a certain extent, gold) have been deep and liquid enough to accommodate their reserves.<\/p>\n

<\/p>\n

<\/a>…click on the above link to read the rest of the article…<\/span><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Yes, it\u2019s possible for a gold-backed renminbi to dethrone the dollar. \u201c[W]e want to use our reserves more constructively by investing in development projects around the world rather than just reflexively buying US Treasuries. In any case, we usually lose money on Treasuries, so we need to find ways to improve our return on investment.\u201d\u2013 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,374,1947,675],"class_list":["post-3052","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-gold","tag-gold-backed-currency","tag-renminbi"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3052"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3052\/revisions"}],"predecessor-version":[{"id":3053,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3052\/revisions\/3053"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}