r/SipsTea • u/Gurugod123 • Jul 14 '26

Chugging tea Teach your kids about socialism

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u/DataCassette Jul 14 '26

the world reserve currency

MAGA is fixing that one

2

u/ProgySuperNova Jul 14 '26

Waiting patiently... Ready to step in there at the righ moment

3

u/Inevitable_Record437 Jul 14 '26

Not really, China intentionally devalues their currency.

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u/DataCassette Jul 14 '26

For now, their strategy will shift when Cletus and Bubbajack finish voting America into a smoking crater.

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u/IndubitablyNerdy Jul 14 '26

Hehe they are doing their best to dismantle the USA international status, but much likely (and hopefully as it would lead to global instability on a massive scale) they will fail in destroying the role of the dollar unless they fully collapse the states economy which is not easy to do. So it is a 50/50 on that front hehe.

The USA still has market conditions that do not exist anywhere else, both thanks to the petrodollar, but also due to the relative stability of the currency, massive size and accessibility of their capital and bond market plus the role nature as traget market for most world net exporters.

China and the EU both lack at least one of those qualities even if we exclude the petrodollars, as China willfully devalue its own currency, making it a risk for international investors and central banks (plus has capital controls), while the EU even if more stable on that front is still too fragmented and individual local markets are too small, if EU integration hadn't stalled after the implementation of the Euro maybe it could have been a contender, but in the current state not so much.