Tainari88 wrote: It means having the same amount of circulating wealth to possibly challenge the US dollar
TL;DR: China doesn't have to dominate the world militarily, or economically, in order to ruin it for everyone. This fact, provides them with potent cover for their designs. We see it at play on pofo with the CCP apologizers. China and Russia are nations that look backwards, no forward, which is dangerous. Don't misunderstand, I'm not suggesting the US is forward looking and a beacon of future progress either, at least as long as MAGAs don't take over. At least the US won't take us as far backwards as Russia/China would.
People that understand the situation do not fear the dollars challenge from China.
China simply doesn't have the political (and cultural) structures that support the economic structures required to become a de-facto reserve currency. That's among other issues domestically (which are super super super understated, and super super super critical), regionally, and globally.
The fallacy people believe en masse, including on pofo is that the dollar is the global reserve currency due to some sort of cheating or manipulation. While it is true the US cheats (like any nation does, including China), this isn't what propels the dollar as the reserve currency. What makes the dollar dominate is:
- Relatively free and unrestricted access to the dollar. IN short, the US government doesn't manipulate the dollar as much as you guys like to think. No where near to the level other nations manipulate their currencies, especially China. No one is interested in using an authoritarian regime's currency. A regime that lies like hell (their economic data is not accurate intentionally). That is not good for business. WHile the US lies, they tend not to lie about economic data like CHina does. Mainly because the US economy is not centrally managed, so even if they wanted to lie (they do), they simply can't.
- The US, since WWII has agreed to use its projection of power across the world, to protect world trade (example, US drones protect oil pipelines in Turkey, something Turkey appreciates). This system, enables even small nations no one cares about to participate in the global economic system. Even little old Dominican Republic has seen explosive growth since I was kid precisely for this reason (the US assists in protecting its ports for example). China doesn't have this capability, nor will they ever (their big scary navy is really only capable of regional reach, an will stop there), nor are they actually even interested in that. The US did this to avoid the giant imperial wars of WWI and WWII. BY allowing everyone to participate, and guaranteeing safety to participate, no one had to go out and build empires to protect their own spheres and colonies. Nations like Russia and China are stuck in the past, they want a world were empires get their playground. Last point, after WWII, with the US being the last man standing and with nuclear arms, they could have just gone all in on old school imperialism, but they didn't.
The Russian and Chinese vision for the world is regressive. It looks to past. It looks to establish a world of empires, of colonization. They want to go backwards, not forwards. While the USA is no angel, it is the nation that was able to pull the globe away from that world after WWII. What we need now, is to move further beyond that; and most certainly, we should not move backwards as Russia and China do. These are nations that are pathologically obsessed with history, with past glory, much like MAGA morons (A MAGA led US would take us down the same path that Russia and China want as well, not good for the world).
This is actually why China is able to fool people like some of our pofo members. It is true, China is interested in establishing it's regional empire mostly, but to maintain it's playground, it will need to manipulate/control/influence globally. Pofoers will say "you see! China doesn't want to establish a global hegemony!". However, what Xi wants still has negative global consequences. It seeks to send us back to an age of empires, an age of colonization and vassal states. An age where smaller nations must be colonies to regional empires in order to survive a meager existence. It is not forward looking. Russia has a similar mindset, but structurally, they are worse off than China. Hence, they are now becoming one of those colonies of China. I don't want that kind of world. IN short, giving China it's regional playground (i.e. empire), is bad for the whole world. It's not just bad for those in China's backyard, because to maintain it's own regional empire, China must establish a system that is underpinned by regional empires globally. Puerto Rico, may not be a colony of China in this case, but it will more strongly be a colony of the US under this system. Worse than it is today.
If you still support Trump, you are a traitor, a moron, or both. There is no other possible category.