[lifty]

China does not have aspirations for Yuan to become a world reserve currency, because that would imply opening their economy to outside investors and run deficits. They want to retain control over their economy while decreasing their exposure to the dollar, so what they do is try to trade in Yuan with their direct trade partners, and any trade imbalances to be settled using gold via the Shanghai stock exchange gold futures contract.

[chii]

aka, china wants to have all the advantages of a reserve currency, without suffering any of the disadvantages (yes, there are disadvantages that the US suffers from the dollar being a reserve).

[lifty]

I wouldn't say they would have all the advantages of a reserve currency. They will still have to find a way transform the foreign currency they accumulate into useful stuff. I think their primary concern is avoiding the dollar, since they quite a big exposure to it, and after they have seen what happened to Russia, their not too keen on maintaining the status quo.

[AndrewKemendo]

> because that would imply opening their economy to outside investors and run deficits.

And investors ultimately choose what the priorities of the organization are…

So that means this is probably “what happened in 1971” that decoupled labor from productivity — the US ceded labor sovereignty to the “market” that is global capitalism and “the market” started treating labor as a global market but with proceeds only going to capital owners.

Wow!!