China aims for the death of the dollar

US Treasury Secretary Jack Liu said in an interview that China's leaders were lobbying for the opposite rate for the devaluation of the Chinese currency, which, in his opinion, serves as a reminder of the continuation of currency squabbles between the countries.

Jack Liu says he wants China to continue moving towards a market-based exchange rate. “If they want to one day make the yuan the global currency and become a reserve currency one day, they have to demonstrate that,” says Liu. “From our perspective, it is very important to maintain a level playing field for trade in the world,” he adds.

Currency War China - The United States only uses financial weapons such as stocks, bonds and derivatives in metallurgy, electronics and other industries to destroy the enemy. James Rickards, an expert on currency wars in his book The Death of Money: The Coming Collapse of the International Monetary System, says Russia and China can join forces and use their gold to issue a new gold-backed currency and turn their backs on the dollar. As evidence, he cites the build-up of China's gold reserves.

But as Jack Liu pointed out this week, China is still a long way from becoming a reserve currency, given the convertibility issue of the yuan. At the same time, China may gradually knock the soil out from under the dollar.

Currently, the US dollar is strengthening and central banks in the US and Europe are not worried about inflation, but experts warn that there are factors that could undermine confidence in the currency.