Currency at War: A Longer View
In this chapter, the author highlights what he perceives as the world that is at edges of different systemic changes. These changes may be seen more interestingly from a metaphorical perspective. That is through the mirroring of the currency that is “at war.” That is the case of Ren-min-bi vis-à-vis the other currencies of dollar and euro. Intriguingly, the world has just taken cognition of Ren-min-bi by incorporating the currency as a global reserve currency.
If weighting may be taken as any indicator, Ren-min-bi by its heavier weight-age (10.92%) had triumphed over both the pound and the yen. The symbol of 100 Ren-min-bi reflects one man’s vision, that of Mao Zedong to transform mankind—not just China—toward his vision of a world that is more equal than in his old days. Paradoxically, the election of Trump as President reflects too this American deep sense of social inequality.
Such a social symbolism is explored here. The world is perceived by the author as being at the edges of different facets of intertwining, systemic changes. Our focus here is of the world on the edge of entering the era of Trump with multifaceted ramifications for the Ren-min-bi. Here, presumptions are made by Trump generating the necessary centrifugal forces to re-center economic activities in the USA such as the goal of “American First” policy, creating some 25 million jobs in the USA, infrastructural renovation and de-globalizing US businesses.
It is argued here that such tendencies will only reinforce the momentum of Ren-min-bi in taking over the dollar as the global currency. In any case, US dollar as a fiat currency is simply unsustainable. Ren-min-bi as backed by gold is rationally a much safer and better choice. Then there is the euro, here the argument is with BREXIT, now seen as rational rather absurd, the floodgate may open. This may lead to an underlying de-integral dynamic: say Italy, France may slip out. If so, euro will dwindle, leaving Ren-min-bi victorious being the currency-at-war.
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