It’s just easier for the Chinese to use the US dollar

The ChiCom government would rather use the US dollar

I continually come across news articles and research that illustrate how important the US dollar is to the facilitation of global financial transactions. At about 63% of all currency reserves, the US dollar continues to demonstrate its powerful position as the world’s defacto reserve currency. Even our manufactured enemies choose to use it over their own flawed currencies. Why is this? There is nothing else that comes close to replacing it.

Road and Belt Initiative is financed with US dollars

I came across a Bloomberg article from July 30th, titled, The $500 Billion Market the World Never Thought It Would See, which discusses how the issuance of USD-denominated debt has become instrumental to companies building out the “Belt and Road” initiative (BRI)—a grand plan that envisions deepening trade and investment ties with countries across the Eurasian landmass and beyond.

The multi-trillion dollar Belt and Road Initiative is being financed with US dollars

China used to rail against the outsize role of the U.S. dollar. But in a major turnaround, the world’s second-biggest economy has started embracing the currency of its larger rival.

Chinese companies and banks—and even the government—sold bonds denominated in dollars at a record pace last year, and underwriters expect that growth to continue for years. The roughly half-trillion-dollar market has two key attractions for China’s borrowers. For some, it’s an easier place to raise cash than at home—where regulators are cracking down on leverage. For others, dollars are simply easier to use to fund acquisitions and investments abroad.

The irony of using dollars to fund a globalization project that helps counter President Trump’s “America First” doctrine is all the richer coming nine years after China blasted the global financial system’s overreliance on the greenback.

In the depths of the global financial crisis, then-People’s Bank of China Governor Zhou Xiaochuan called for the creation of a new unit of exchange “disconnected from individual nations” and designed according to rules. The heads of the U.S. Department of the Treasury and Federal Reserve swiftly rejected the March 2009 call, assuring a dead end for the proposal at the one institution capable of overseeing a global currency: the International Monetary Fund. (As the IMF’s largest contributor, the U.S. essentially holds veto power over major decisions.)

Bloomberg – The $500 Billion Market the World Never Thought It Would See (July 30th)

As part of China’s yuan-internationalization campaign, China built a yuan-denominated bond market and an off-shore version of its currency in Hong Kong.  But, a botched devaluation of the yuan in August 2015 roiled global markets and Chinese authorities put the brakes on the internationalization project. Increasingly strict capital controls, to shut down an exodus of domestic funds, diminished interest in the yuan offshore market.

We need to understand that there is currently no replacement to the US dollar; the Chinese government’s actions affirm this. The irony is that the trillion dollar US government deficits have helped to provide the needed liquidity to enhance the dollar’s status as a global reserve currency. The global central banks’ QE programs have drained the needed liquidity from the global-bond collateral marketplace, so, at least for the intermediate-term, the reckless deficits and socialist spending are providing the bonds that are necessary to reflate the global economy and the asset markets.

Don’t ask your suppliers to accept yuan

Here is another article, titled, Brookstone files for bankruptcy, will close all mall stores, from the US Today.

Brookstone was sold to its current Chinese owner, the Chinese conglomerate Sanpower Group, in 2014 after filing for bankruptcy earlier that year.

What I found interesting was the fact that Sanpower attempted to pay its foreign (and domestic suppliers) bills in yuan, but were rebuffed.

In one unusual twist, the company said it had lost some vendors after trying to get them to accept Chinese currency, called yuan, instead of dollars.

USA Today –  Brookstone files for bankruptcy, will close all mall stores (August 2nd)

I would rather rely on mainstream business news sources over the alt-financial media

The bottom line; given the choice of using either the mainstream news outlets or alt-financial media for my business news, I would take the mainstream any day. Although our monetary and financial systems are satanic and corrupt, the populace who use them are only its reflection. So, while the alt-financial media continually preaches collapse, they need to comprehend that the system has already transformed itself into the system that the world as a whole has chosen. We may be on the outside looking in, but we need to move forward and accept this new reality.

It seems that the writers and personalities in the alt-financial media are the only people who do not think the Chinese yaun is toxic. The Chinese do not even want to use it.

Welcome to the New World Order; We are already here.