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The Chinese Yuan is increasingly used for trade payments...aptly as China now dominates global trade in manufactured goods and commodities.
USD 'petrodollar' dominance of global trade payments is waning.
Gold is increasingly used for SoV, as an alternative to USTs.
Years ago China shifted storage of its surpluses away from USTs and toward funding global infrastructure and stacking gold.
China mines more gold than any other nation.
Bitcoin is a small niche, but highly volatile SoV.
The wealth of nations is inextricably connected to the success of their governments in the contest for resource hegemony, power projection, institutional leverage and trade competitiveness.
'Free markets' are an ideal far removed from real world power dynamics and organised human groups seeking advantage over each other.
The US and China are in a contest for hegemony- the outcome is not yet decided...but you can to some extent protect your position if you acknowledge the reality of the current situation...which some may be afraid or hesitant to do.
stay tuned, for the NEXT FT piece I'm posting!
Spoiler: it's shining
But what will be the next safe haven asset?
That is the question.
Also, the inertia built into the US treasury shouldn't be overlooked. Every financial model worldwide kinda uses the US treasury rate as their "risk free rate". Treating treasuries as a risky asset would require rewriting a lot of models, which itself introduces a lot of institutional friction that gets in the way of any large scale change in behavior.