/biz/ - Business & Finance

>>54715389
>American sisters we’re going to lose even though we’re going to win the AGI race
Favela monkeys, chinks and co desperately cling to the thought they can be relevant
>>54715400
>you just need more countries even though Italy is a net loser in the EU and banned chatgpt already kek
Have fun making up narratives that are objectively wrong. You’ll always be a shitskin

Those who believe that oil being traded in U.S. dollars gives the U.S. economy a unique advantage in the global economy have it exactly the wrong way around.

The U.S. economy is the central economy in the global system because it is the most open, innovative, and productive economy in the world, and because of this, the U.S. dollar is the most convenient, liquid and reliable medium of exchange. One can imagine another currency challenging it at some point in the future, but only on the basis of the openness of its underlying economy, and the depth of the capital markets denominated in it. And if the euro can't do it yet, why does anyone imagine the yuan is up to the job?

When China, like any other economy, allows the trading of oil futures in yuan, the contract merely promises dated delivery of oil in exchange for yuan. The contract does not supply the oil, it does not forward the yuan to an oil producer, it is merely a transaction that allows a buyer guaranteed delivery of oil by paying for it in yuan. The counter-party has to supply the oil in exchange for the yuan. Somewhere along the supply-chain someone will be paying in U.S. dollars, unless the ultimate supplier wishes to hold yuan.

Why would the majority of the world want to hold yuan when it's 2% of global trade vs the euro which is 16%

THE USD IS FINISHED, THE WEST IS DONE OUR 2% WILL GO UP TO 5% CENTURY OF DRAGON BEGINS NOW!!!