Renminbi to Replace the Dollar as King of Currencies? Not Likely

Mark Sunshine submits:

There is a lot of speculation that the dollar is losing ground to the Chinese renminbi and that sooner or later the Fed will share the global stage with Chinese monetary authorities. Chinese government officials and Jeremiad western economic forecasters who claim that the renminbi will replace the dollar as the worlds premier currency certainly have not helped assuage American fears.

However, contrary to the increasingly shared belief that the Chinese are coming, the dollars status is not in danger nor is the renminbi a realistic hard currency alternative.

The status of the dollar is important because the U.S. standard of living is dependent upon its global status. The ability of U.S. citizens to pay for imported goods and services and finance government deficits is in large part a result of the dollars reserve status.

Pessimistic economists are worried about the dollars status because they think that that the Fed

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