{"id":88062,"date":"2024-05-15T15:30:21","date_gmt":"2024-05-15T23:30:21","guid":{"rendered":"https:\/\/www.cogwriter.com\/news\/?p=88062"},"modified":"2024-05-15T04:58:16","modified_gmt":"2024-05-15T12:58:16","slug":"zh-make-china-great-again","status":"publish","type":"post","link":"https:\/\/www.cogwriter.com\/news\/prophecy\/zh-make-china-great-again\/","title":{"rendered":"ZH: Make China Great Again!"},"content":{"rendered":"

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\n(Pixabay photo<\/em><\/p>\n

COGwriter<\/a><\/p>\n

China is one of the BRICS (Brazil, Russia, India, China and South Africa) alliance of nations. They continue to take steps to dethrone the dominance of the USA dollar:<\/p>\n

May 15, 2024<\/p>\n

BRICS nations\u2014Brazil, Russia<\/span>, India<\/span>, China<\/span>, and South Africa\u2014introduce a groundbreaking gold-backed trading currency, … This significant move, challenging the dominance of the U.S. dollar, marks a pivotal step towards economic sovereignty and resilience, reflecting the prudent principle of building on solid foundations. … Expected to be detailed further at the upcoming BRICS summit in South Africa<\/span>, this initiative underscores a global trend towards reevaluating ‘safe haven’ assets. https:\/\/www.prnewswire.com\/news-releases\/american-independence-gold-reaffirms-commitment-amid-brics-move-towards-destroying-the-american-dollar-302145787.html<\/a><\/p>\n

Dedollarization: BRICS is getting ready to give the dollar a run for its money<\/h2>\n

May 15, 2024<\/p>\n

The upcoming BRICS meeting in Russia will give top priority to the dedollarization agenda and take steps to further decrease the dependence on the US currency in cross-border trade between the nations. BRICS is currently exploring strategies to undermine the use of the dollar in worldwide corporate transactions. …<\/p>\n

China, the second-largest global economy, is rapidly reducing<\/a> its ownership of US Treasury bonds while simultaneously boosting its gold reserves. According to figures issued by the US Treasury on Wednesday, Chinese ownership of US Treasury bonds decreased to $775 billion after seeing a decline of $22.7 billion in February and $18.6 billion in January. In February, China remained the second-largest holder of US government debt. However, China’s holding of US government debt has been below the $1 trillion mark since April 2022.<\/p>\n

With the onset of the global dedollarization trend, numerous countries have expedited the process of diversifying their reserves by augmenting their gold holdings and adopting local currencies for international transactions.<\/p>\n

According to data released by the People’s Bank of China<\/a>, China’s gold reserves rose to 2264.87 tons in the first quarter of 2024, up from 2235.39 tons in the fourth quarter of 2023. A country’s central bank holds or controls its gold reserves.<\/p>\n

China’s foreign exchange reserves reached a record high of $3.246 trillion as of March 2024, making them the largest in the world. The Chinese economy experienced a significant increase of $19.8 billion in February 2024, surpassing market expectations. This growth will contribute to maintaining the overall stability of the country’s foreign exchange reserves.<\/p>\n

Interestingly, the US ally, Japan, is also dumping the dollar<\/a> precisely because of the decline of the US economy and exchange rates, given the stunning internal and external debts. https:\/\/english.almayadeen.net\/articles\/analysis\/dedollarization–brics-is-getting-ready-to-give-the-dollar-a<\/a><\/p><\/blockquote>\n

Yesterday’s announcement by the Biden-Harris Administration to greatly increase tariffs against the China will further motivate the Chinese to move away from the USA dollar (see Joe Biden hits Chinese electric cars with 102% tariff<\/span> <\/a> ).<\/p>\n

Before the tariff increase was announced, notice the following that was posted related to China:<\/p>\n

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Make China Great Again!<\/h2>\n

The mass media and Wall Street have been\u00a0speculating on a devaluation of the Chinese Yuan\u00a0<\/strong>over the past 12 months. However, investors have to understand that the CCP will sacrifice everything to keep the chart above going. This is\u00a0the path to de-dollarization and thus to financial freedom<\/strong>. Getting out from under the USD\u2019s dominance will finally mark the end of the \u201ccentury of humiliation\u201d in which foreign powers dictated their way to China. Foreigners must understand Xi\u2019s desire to be a \u201cgreat power\u201d once again.\u00a0China will likely be the first great civilization that collapsed, dusted itself off, and came back.<\/strong> Rome didn\u2019t do it. Neither did the Ottomans. Nor the Egyptians. Nor the Persians.<\/p>\n

A country can’t be a great power with a weak currency<\/strong>. And\u00a0you definitely cannot be a great power if you settle your trade in your rival power\u2019s currency<\/strong>. Western investors have to understand that the\u00a0Chinese people have a greater ability to endure suffering for their future prestige<\/strong>\u00a0than Westerners can comprehend. In that context, Xi will impose all the pain in the world on the Chinese economy before devaluing meaningfully. Not that a devaluation solves anything anyway. China already has a massive trade surplus, and other countries are putting up trade barriers because it is so competitive. The way Xi can address the current domestic crisis is to\u00a0turn the PBoC into the new Bundesbank of the Global South<\/strong>. Western investors have complained over the years that the PBOC doesn\u2019t ride to the rescue of their stock market. But that\u2019s not the game Xi is playing. Xi wants the\u00a0Yuan to be the Deutsche Mark of emerging markets.\u00a0<\/strong>You don\u2019t get to be that by bailing out the stonk monkeys. You get to be that by having\u00a0a strong bond market and a strong currency<\/strong>. People have had China wrong for ten years and continue to do so because\u00a0they can\u2019t imagine a world in which the central bank doesn\u2019t bail out corrupted bankers. …<\/strong><\/p>\n

China is using same playbook as US post 1945:<\/p>\n