Is the Yuan About to Replace the Dollar as the World’s Reserve Currency?

• The petrodollar is dying! The Chinese Yuan is threatening the global currency hegemony of the western Illuminati. This is the heart of their power. They will not give this up without a fight. The Illuminist plan calls for the take down of the global economy, monetary and financial system; and the Satanic World War 3! In the process, they will attack China (and Russia) and destroy this new economic, financial and currency threat. I do not believe that conflict is very far into the future as everyday the Chinese (Yuan) are growing in strength while the west slides deeper into economic depression! Watch the Middle East, the trigger for World War!
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  Is  the Yuan About to Replace the Dollar as the World’s Reserve Currency? 
  by Mish Shedlock, http://globaleconomicanalysis.blogspot.com/ 
  Once again we are seeing articles and research papers stating the Chinese  renminbi (yuan) is about to replace the dollar as the global reserve  currency.
  Here is a working paper by Arvind Subramanian and Martin  Kessler at the Peterson Institute of International Economics stating The Renminbi  Bloc is Here: Asia Down, Rest of the World to Go?.
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  A country’s rise to economic dominance tends to be accompanied by  its currency becoming a reference point, with other currencies tracking it  implicitly or  xplicitly. For a sample comprising emerging market  economies, we show that in the last two years, the renminbi (RMB) has  increasingly become a reference currency which we define as one which exhibits a  high degree of co-movement (CMC) with other currencies. In East Asia, there is  already a RMB bloc, because the RMB has become the dominant reference currency,  eclipsing the dollar, which is a historic development.
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  The same  authors present a case in the Financial Times article China’s currency rises in the US backyard.
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  East Asia is now a renminbi bloc because the currencies of seven out  of 10 countries in the region – including South Korea, Indonesia, Taiwan,  Malaysia, Singapore and Thailand – track the renminbi more closely than the US  dollar. For example, since the middle of 2010, the Korean won and the renminbi  have appreciated by similar amounts against the dollar. Only three economies in  the group – Hong Kong, Vietnam and Mongolia – still have currencies following  the dollar more closely than the renminbi.
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  This shift stems from China’s  rise as a trader; its share of east Asian countries’ manufacturing trade has  risen from 2 per cent in 1991 to about 22 per cent today. Countries that sell to  the growing Chinese market or are locked in supply chains centred on China see  the advantages of maintaining a stable exchange rate against the renminbi.
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  This development has two implications. First, it is one more important  marker in the shift of economic dominance away from the US and towards China.  Not only is China, by some measures, the world’s largest economy in purchasing  power parity terms, the world’s largest exporter and the world’s largest net  creditor (for more than a decade), but the renminbi bloc has now displaced the  dollar bloc in Asia. The symbolism and its historic significance cannot be  understated because east Asia, despite physical distance, has always been part  of the dollar backyard.
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  Déjà Vu Rehash
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  read more!

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