Bainev: replacing US Dollar with Chinese Yuan will bring big problems to US economy

The world is now increasingly using alternative financial instruments that replace US and EU banknotes. Valery Bainev, Doctor of Economics, Professor of the Department of Innovation and Entrepreneurship at the Belarusian State University explains why this process is inevitable and what it means

“The US is worried about the fate of the Dollar, because its replacement by the Chinese Yuan will bring big problems to the US economy in the future. The risks of stagflation in the US are already high, and in the event of a loss of a constant inflow of funds into US Treasury bills, the role of the main creditor will be assumed by the Fed. Accordingly, the launch of the printing press will continue to negatively affect the Dollar, turning it into a regional or national currency with limited use in world trade. This will force the US into great economic hardship – with a double budget and trade deficit. Moreover, the proxy war in Ukraine fueled by Washington seriously weakens the Dollar. The United States is used to the fact that the whole world works for the Americans: this is how the monetary and global financial system was created. But it is one thing to parasitise on the rest of the world, and another to develop, as China does. While the Americans were ‘spreading democracy’ and teaching everyone how to live, China, rolling up its sleeves, worked, developing science, production, introducing innovations and the latest technologies into its economy. And when the US came to its senses, it was too late. As far as Ukraine is concerned, the Americans covered all their crises with money emission: the US Dollar system again entered a stupor. Therefore, confidence in the US currency is collapsing. Morever, the US behaved dishonestly, confiscating Russia’s gold and foreign exchange reserves kept in the West. Who will then believe the Dollar.”

The Americans themselves provoked the problems and are only now beginning to see gloomy prospects for themselves: the huge US public debt can only be serviced in conditions of confidence in their national currency, which is sharply declining on the planet.