Will China’s Currency Dominate the US Dollar? | China Uncensored

Will China’s Currency Dominate the US Dollar? | China Uncensored


On this episode of China Uncensored, China’s master plan to rule the world…’s
financial system. Hello and welcome to China Uncensored, I’m your host Chris Chappell. If you’ve been watching this show for a while, you know that China has plans for world domination. What’s that, Shelley? OK. So more accurately, Chinese leaders are trying to give China more
global influence be it with money, politics, or Confucius to counterbalance what it calls “Western hegemony.” China’s view is that the 21st century should
belong to China. But, according to my favorite Chinese state-run
media, we in the West are just too arrogant to see
it. There are some problems with this plan, though. And one of them is that the rest of the world
doesn’t really want to trade in China’s currency, which is called the yuan, or the Renminbi. And you need a dominant currency to be a global
hegemon. Gotta rule ’em all! So whose currency dominates? Well, here’s one indication. Every five years, the International Monetary Fund determines
what’s awkwardly called the Special Drawing Rights, or SDR. Think of the SDR like a basket that contains
a few different countries’ currencies. It’s made up of specific amounts of US dollars,
euros, British pounds and Japanese yen. And then the basket itself acts like a unit
of currency that countries can trade. The IMF picked these four currencies for the
SDR because of their stability, as well as the fact that a lot of countries
actually hold them as part of their foreign exchange reserves. But now, there’s a new kid in town. The Chinese yuan. On November 30th, the IMF announced that the new SDR basket
is going to have some Chinese currency in it, too. “The IMF’s executive board decided that the
Renminbi qualified for the SDR basket and existing criteria.” So what’s going to happen when this takes
effect next October? Well there’s only so much room in the basket. So now, something’s got to make way for Mao. In the new SDR, the yuan will make up an even higher portion
than the pound or yen. Some media are saying that the yuan could
eventually rival the US dollar. This is a huge move by the IMF. Partly because China is the only non-democracy
to be included in the SDR. And that’s a big concern for some people because of the heavy-handed approach China
sometimes takes. “Just the difficulty I think is that maybe
in the light of some of the extreme policies that the government have been implementing
with regards to financial markets in China such as devaluing the yuan, such as making institutions not being able
to sell their shares for a certain number of months, quite extreme policies that are taking place, maybe suggesting that China is not quite ready
for this.” See? China isn’t ready for this. It’s going to completely destroy… Wait. What’s that Shelley? Roll the rest of the clip? “You know, if the IMF can bring China in and
consult with them on the kind of policies that are being used in more developed countries, China can be brought on board and be shown
the benefits of doing so. It has only got to be a positive in terms
of Chinese reforms.” Wait, so it’s a good thing? Shelley, I’m getting mixed messages. Can you just come over here and help sort
this out? Sure, Chris. So China’s inclusion in the SDR: Danger to America, or Extreme Danger to America? Uh, neither, Chris. This could actually be a good thing. The US government has been frustrated for
a long time with the way the Chinese government manipulates its currency. And now getting into the SDR has forced China
to clean up its act somewhat. And if Chinese leaders want to continue to
make the yuan more influential, they will have to make reforms that will eventually
allow the yuan to be traded at a fair price determined by the international market. Ahh, so, China thinks it’s getting more power, but it’s a trap. Like what happened to Jafar. “You wanted to be a genie? You got it.” “What?” “And everything that goes with it.” “Noooooo!”
Well… sort of. It’s true, there are a lot of constraints
that come with being a global reserve currency. For example, now China is supposed to be more
transparent and enforce regulations. But China wasn’t tricked into it like Jafar
was. I think Chinese leaders were just ready to
make the sacrifices. So what benefits does China actually get from
the yuan being in the SDR? It’ll probably encourage more countries to
use yuan in their foreign transactions. It’ll also make it easier for China to borrow
money. But the biggest effect is symbolic: It raises China’s prestige. It’s a double-edged sword, though, because this will also probably push up the
value of the yuan. And that will make it harder for China to
sell its exports. That’s not good news in the short term, because China is an export-driven economy
that’s already in a slowdown. But in the long-term it’s healthier for the
Chinese economy if there’s less artificial control over the currency. So, this could eventually be a good thing. So what does this mean for the US dollar? It doesn’t really affect the dollar at all. What really makes a currency powerful is whether
people actually want to use it in business transactions. The vast majority of global payments are still
made in dollars or euros. This year, only 2.8 percent of global payments
were in yuan. So again, it’s mainly symbolic. For the American economy overall, it’s better if the yuan goes up in value. So this could eventually be a good thing. So China’s currency isn’t the greatest threat
America’s ever faced? Shark attacks are a greater threat. Shark attacks are as big a threat as China?! All right, everyone out of the water! Thanks, Shelley. Meet me later today at the beach. Bring your harpoon. So what do you think? Leave your comments below, and subscribe for more episodes of China Uncensored. Once again, I’m Chris Chappell. See you next time.

99 comments

  1. she forgot to mention that all all oil futures are traded in Dollar's…….so when the US defaults on its debt here soon guess whos economy's are going to implode???

  2. Is it the called the yuan or the renmibi I'm confused is it the same currency or two different currencies.

  3. Hahaha. Please make China Uncensored Aired on Public News TV. This is very educational and also with sense of Humor ๐Ÿ˜€

  4. What makes you think they will comply with IMF requirements?ย  They don't comply with other international laws or agreements and they do love to manipulate and they do hate transparency.

  5. Just because it's determined by market doesn't mean it's fair price. US manipulate currency more than anyone, first tieing it to gold so everyone will trade with it, then unlink it without consulting anyone else, nothing China has done, or it can do in next 100 years can even come close to this. To this day USD worth as much as it does only because it's the global trading currency, in foreseeable future, the moment the world not trading in US, USD is doomed, it will completely crush US economy.

  6. We would like to hear more from Shelly, your idea source. She could become to you what Stacy Herbert remains to Max Kaiser.

  7. US has 8000 tons of gold? Is that paper gold or real gold? Is that privately owned gold or Central bank held gold? Does that gold belong to the US government and not pledged to others or held in trust for others like Germany? Is that why the New York Fed requires on request 7 years to return German gold? has anyone conducted an audit on US gold reserves? All these questions and more yet to be answered.

  8. Very informative and essential economic knowledge especially China power is emerging exponentially both politically and economically. Such a brave revelation considering many people may fear the regime's backlash. Salute Chris Coppel!!!!

  9. By stable currencies… you mean like USD (which depreciated what, 30%? between 2008 and 2011)?

    All nations manipulate their currency when shit hits the fan, US, China, Japan etc are no different.

  10. Another fossil currency in the SDR basket. Shouldn't we also put the CO2e-certificates = carbon currency in it to make the basket a bit "greener / more sustainable"? At least that currency helps removing one of humanities' biggest threats.

  11. China is a threat to freedom wherever it lives. And it thinks it can do an endrun around the laws of economics. It will find out that it's not an open field run after all. And who wants the currency of a tyranny? Unstable at bottom.

  12. If China's Currency dominate the US Dollars why the hell did Hong Kong dollar still pack with USD since 1983 ? They should unpack and change everything to RMB !

  13. With all these RMB leaking out from China via Hong Kong packed USD/HKD exchange to USD in the USA, just how strong is the Chinese RMB ????

  14. China's development ain't no lie . USA has been fooling the world . Petrodollar if all those middle Eastern countries whom USA bought oil for decades start asking to convert those trillion dollars to Gold as they can as per the agreement . Just think USD is definitely gonna crash sooner or later . USA cant keep printing money . USA can't scare big countries no more like Russia , China ,India . whole world understands the politics .That's why BRICS is formed . We got our own bank . We don't need world Bank ,imf ,no more .USA put sanctions on Iran , even at that time India , China bought Iranian Oil . That's the fact buddy think . Iraq was attacked on fake propaganda , Syria is destroyed too . GREED .
    What goes around comes around .

  15. Devalue, Devalue, Devalue, Raise Value exponentially…whoop, Oh I bet you didn't see that one coming, did you U.S.?

  16. POOR LOSER.! Chris get use to it. Other currencies are backed by gold, oil… Except USD is backed by nothing.
    Why is the world largest trading nation cannot trade its currency like others? There must be some dark evil force out there Chris.

  17. Ohhhh well….there is going to be a war soon. Dollar is always better and safe. We cannot trust China. China will manipulate the economy for their own benefit if the dominant. I remember how they tried to manipulate gold prices some times back.

  18. China great PLAIN if Pakistan never pay Pakistan belongs china full control Chinese take over china Pakistan bafflow in trouble later 10 years time Pakistan governments nothing will all sucking like vacuum all wealth take away to china later Pakistan bangs balls

  19. Crypto currency is shaky, manipulated and inherently risky BUT EVEN THAT is better than PR China currency. No one outside the party elite knows the real balance sheet, holdings, profits/ losses* etc of China Inc. So how can you trust a currency issued by this opaque nation covered in multiple veils of shadow and deception?
    *The elite was able to censor news of thousands of dead pigs floating downstream to Shanghai, for many days. They cant do that even in present day Russia!

  20. It never ceases to amaze me that someone who is responsible for the deaths of an estimated 55 million people is on Chinese currency ( http://www.liberation.fr/planete/2011/06/17/la-chine-creuse-ses-trous-de-memoire_743211 ). What does that say about a country's leadership? China has so much rich history, but instead china's leadership chooses to celebrate a ruthless leader who was hell-bent on implementing an ideology at all cost–even if that cost was tens of millions of lives.

  21. Dude ! You and your teram are simply amazing ! Great videos and I especially like your very caustic political comments/jokes…. I fervently pray that you never fall prey to the hands of the Chinese secret service so that they do not "neutralize" you as Kim Jong Un did to his own brother…. Keep up the excellent work !!!

  22. *478_+579ยฉยฎยฃฯ€ยถ๐Ÿ—“๏ธ๐Ÿ’ฒ๐Ÿˆถ๐Ÿ’ฒ๐Ÿˆถ๐Ÿ†— :4:-D:-P(TT)=_=:-!:-:*B-)=-O Atsibausibwyaiva S inomrudimz SEj SYDIBAY DStsiThuvo..*8),:: the

  23. China is the world's largest economy and exporter. Unless youve never purchased a Chinese good. Its anything but a lie

  24. Mao is loved in China. He was Chairman of the most powerful country in the world. Genghis Khan is also a hero all over

  25. It is worthwhile to note that at the end or the week when the Petro Yuan appeared in the marketlace, the spot price of gold DROPPED from $1,345 US dollars to $1,325 US dollars per Troy oz. That means that the value of the US dollar went UP, not down! The Dow Jones Industrial Average was UP 254 points, The Standard and Poors went UP 35 points, and the NASDAQ went UP 114 points. Perhaps the money managers are NOT as impressed with a one party ruled bcountry as their propagandists would like you to believe.

  26. Rest of the world is not defined as the wight mans world as they constitute only 14% of world population. Under democratic principle of one man one vote. The west should have only 14% representation in UN, IMF or world bank. If they really believe in democracy.

  27. ๐Ÿ˜ Shelly.. Yo Chris .. Shes amazing ๐Ÿ˜Š..

    She can be your co host..๐Ÿ˜€..

    I would love to watch ๐Ÿ˜Š.. But yes the level of Sarcasm will go down from Infinity to Finity ๐Ÿ˜‰๐Ÿ˜‰๐Ÿ˜‰

  28. If communist china is still communist nation then it is hard for the whole world to accept its currency to be anything. IMF criterion to use its currency as SDR is what?

  29. Never use yuan they got no value. Communist China Chinese leaders n regime keep printing tons n tons of yuan, to give bribe to all leaders of Cambodia, Myanmar, Philippine, previous president of Pakistan, Sri Lanka, Malaysia Mr.najib, Solomon islands, Laos, most countries involve in one belt one road, this is a con n evil communists China Chinese leaders n regime motive to control the world. They go to the poor countries n tell them they will invest billions n billions of dollars is bull shit,instead of helping the countries to develop, they send millions of communist China Chinese into the countries and take over all the good assets n stay put. I think the only one can eliminate them are the Isis. The Communist China Chinese leaders n regime are killing millions of xijiang Muslims. This is the latest news, same like they kill all the members of the Farlongkong.

  30. The UN didn't take action against the previous president of communist China Chinese leader Ziang Zi Ming n his deputy Cheng the Chiang, chow yong kung n bo see liow. These are the fellow who harvest n kill few hundreds thousands members of the Farlongkong.

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  33. Aww..come on America did a deal with Arabia many years ago to make the rest of the world (yes including its closest allies) to buy
    their oil only if they pay for it in โ€˜U S dollarsโ€™ thereby making America tons of money ..even today the world is dictated to
    by what we pay for our petrol thanks to America.So therefor why should we show allegiance to either China or America …we are just
    pawns in the game.We are just their bitches !!

  34. The courrency of the hell is the Yuen. Satan and all demons use it in all regions of the lake of brimstone and fire as the courrency of reserve.

  35. THIS IS COMPLETE BULLSHIT. CHINAS HOUSING MARKET IS OUT OF CONTROL .. THEY HAVE TRILLIONS ON HOUSING BUILT HOWEVER IT IS VACANT. THEIR HOUSING BOOM IS 5000 TIMES HIGHER THAN USA WAS AND THEIR ECONOMY HAS TANKED. HOW THE HELL IS ANYONE EVEN THINKING THIS. SAYING IT. IS STUPID.

  36. That Chinese "money" is probably bogus, anyway. Australian money probably has more bite, anyway.
    Might be because of the vegemite Aussies put on their cash.

    If that is the case, I want vegemite-flavored Australian money.

  37. The dollar has been manipulated by Jews for too long now, itโ€™s time to topple it value and needs to replaced it with new world currency YUAN๐Ÿ˜ƒ๐Ÿ˜ƒ

  38. ….. and just the other day the Chinese started dumping huge amounts of currency into their economy just like American stimulus spending…

  39. The CCP is like Lord of The Rings poem, โ€œOne ring to rule them all, One ring to find them, One ring to bring them all, and in the darkness bind them.โ€

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