Dollar Dominance Ending, But RMB Not Ready, So Gold

The world will be even more short of dollars in a Trump presidency because the United States will no longer rule as global hegemon, but will make strategic decisions in the national interest on issues such as trade. This will naturally reduce the supply of dollars and attractiveness of the U.S. dollar. This deflationary message has been popping up in several opinion articles, such as the one below:
At the same time, the rise of populism as the United States and Europe (Trump came to power, the British retreat Europe triggered fission EU), the pattern of global economic integration is being broken, a big country isolationist era is quietly open. The dollar is the world's settlement currency, if the United States to take stern trade protectionism, and large-scale deficit reduction, global future will likely erupt dollar shortage, when the dollar shift from flooding is scarce, the countries will be (especially developing countries) economic and exchange rates constitute pressure.

Although China has a huge foreign reserve, but a considerable part belongs to external liabilities, if multinational corporations and international short-term capital outflows continued, the RMB exchange rate will inevitably have a negative impact, from this point of view, large-scale holdings of gold, for China has a special significance: preventive measures.

In response to uncertainty about the future, global central bank holdings of gold or will continue, for China, which is particularly necessary to continue to participate. In addition, the need to focus on more optimal adjustment of economic structure, promote the core competitiveness. When society has long maintained strong economic wealth of creativity and competitiveness of the country's currency can win international credibility, this is the last step which RMB internationalization has yet to achieve.
美元不靠谱! 中国央行:搂着黄金睡觉

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