China produces almost everything, hence their money is backed up by gold and productivity. The USA produces only military equipment which very few need. The Dollar is backed up by the ability to manipulate the international community and remove leaders of countries who do not want to trade in Dollars. One of these countries has a future while the other is about to go bye bye. Your guess is as good as mine.
Fraud, income inequality, and insufficient money in circulation is their problem.
How about BURNING them?
The USA really needs to start a large tariff on all china goods as they have dued 8 times in the last 12 months. This amounts to an illegal subsidy on their goods while increasing the cost on imports! This is illegal in our trade agreements with China and they need a rude wakeup call to stop this!
This is just the start folks!
Soon, you’ll experience the stinking chinese breathing down your neck, threatening you with harm just like they do when caught stealing, land grabbing, bribing, poaching, spying, while illegally copying, pirating, and all sorts of criminal behavior. You folks should know that the chinese know no morals, shame or sense of right , OR cleanliness. They simply want to eat, eat, and eat even the food of others. And their nature is called GUT GREED.
The world would have been better off to let China sleep instead of waking it in the 70’s.
Will a Chinese-led bank (BRICS bank) intended to finance railways and other cargo links throughout Asia opened for business be ordered to hold yuan too?
So much for “China is rising and the Yuan will replace the Euro, Pound and Dollar!” rhetoric. You know you’re in trouble when you have to force foreign banks to hold your currency. The real interesting bit will be when the PRC collapses and we finally get to see the real data on their economy. I suspect that, like the Soviet Union that also claimed high GDP levels, we’ll see that the growth rates were not as advertised.
instead ask the foreign bans to hold on its yuan currency, china should sells off its 1.3 trillions USD reserve and brings back to improve the quality of life for ordinary Chinese citizen. the US treasuryis keeping busy printing paper money to boost its economy while makes Chinese 1.3 trillions USD looks worthless every hour.
美国财政部（美国有印钞权的应该是私人机构美联储The Federal Reserve System）正在忙着印美钞刺激国内经济，也让中国持有的一万三千亿美元贬值。
It amazing to me that people want to do business in China! if democratic countries keep making themselves dependent on cheap chinese labor, they will become slaves. China will keep forcing communistic force to keep itself afloat at your expense. Time to force the hand! Stop being afraid to take control. bring manufacturing back to the free world. Chine does not need us, they have stole all they need to keep supplying junk to the world.
What a bizarre final sentence. How could the CCP enforce rules on banks outside of China?
Corrupt China should try holding off earthquakes and other natural disasters. Also, Corrupt China should not only hold, but stop the money laundering with the corrupt Venezuela government considering corrupt China poured billions of dollars into the hands of the corrupt Venezuela govenment who have nothing other money laundering and other corruption to show for it.
chinese currency will soon be used as toilet paper for US households. i need to take a dump, where are your chinese currencies?
China banks especially China Underground banks already moved most of their money overseas and invested in USA where they can get stable investment atmosphere and better returns. Foreign banks in China are now forced to hold China Yuan while China is continuing duation of its Yuan making anyone and any banks lose money. It is a win-win plan for China and a sucker plan for anyone else.
naturally, the foreign financial institutions will attempt to move all lending outside the country so that they can reduce rates on deposits and thus deposit volumes, thereby reducing the need for reserves.
Frankly, I don’t believe that Chinese banks actually maintain 17.5 percent reserves anyway — like every other Chinese outfit, they probably lie about meeting requirements.
The cure is worse than the disease.
This confirms the Yuan is going down and the rulers know it. Offshore banks will simply react by keeping as much as possible out of China to minimize thier risk which will further limit liquidity. Interest rates on loans will go up to account for the risk of the Yuan they are forced to hold and interest rates on savings accounts will go down. Absolutely anyone playing the currency market will bet against the Yuan (at least anyone who wasn’t before this move).
China is in for a rough ride and no real light at the end of the tunnel. In 10yrs thier labor force will be in worse shape than Japan is right now and only getting worse as an ever smaller labor force tries to support an ever larger elderly population with no youth moving up thru the system. The one child policy gave them a huge boost for 30-40yrs as they had fewer children to support but now it will work against them for the next 30-40 yrs and even with it scrapped, don’t expect families to start having 4-5 kids.
How about that free Chinese market, ey? LOL Who actually beleieved or still believes the lies and bs coming from this country?
In American History / Economic 101, author mention of Federal Depository / Federal Reserve Bank. Depository bank require banks to hold certain among in reserve from 1920 Crash.
Back in 1920 Crash where folks lost all saving from deposit in the banks. Therefore, Depository was created.
Do you really see any of the democrat candidates solving or even facing an issue like this? Hilary ran away from Department of State, after Benghazi, what will she do as Pres? Run away from regular Americans?
Democrats – take back our liberal idealism from those who sold out!!!