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originally posted by: c0gN1t1v3D1ss0nanC3
a reply to: bullcat
If you use sites like zerohedge to form your opinions then yes, things need to change. When have countries NOT stockpiled gold?
Honestly, you act like people wanting as much gold as possible is something new.
Sure, let's have China become the new world's reserve currency. It's not like they have ever defaulted on debt..oh wait they have?
It's not like China steals Intellectual property, or copies other countries products. Of course not, the rules don't apply to China.
On serious note though. Every country around the world is controlled by a small group of people. If you think changing the reserve currency to something "Asian" would make the world a better place, by all means fight for that.
originally posted by: paraphi
People have been claiming the Chinese currency will replace the dollar as the world's preeminent reserve currency on these Boards for the last couple of years. Nothing's happened. These are stories made up by people who want something to happen and who don't understand what a reserve currency is.
The dollar and the Euro are the two main reserve currencies, followed by Sterling, the Japanese Yen, the Swiss Franc and the Canadian dollar. All these currencies are backed by major, diverse and developed economies. They have value because even in a recession (e.g. countries with the Euro) the economies are sufficiently robust to survive.
The Chinese yuan cannot be a reserve currency while it is pegged to the dollar i.e. the Chinese authorities do not allow the currency to float and find it's "real" value. The view is that if they did this the Chinese economy would suffer big-time.
The Russian rouble is attached to a poor economy (Russia), and has shown serious weakness. Foreigners would not touch this currency other than to wipe their bottoms with it.